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Why MetLife May Have Strong Growth Potential

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Dec. 15 2017, Updated 9:00 a.m. ET

Long-term growth potential

MetLife (MET) may have strong long-term growth potential. While the company posted strong numbers in 3Q17, its results were impacted by separation expenses of $1.1 billion related to the BrightHouse Financial (BHF) spin-off. MetLife’s 3Q17 results were boosted by its international businesses, especially the Latin America division.

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How shareholders could benefit

MetLife is focused on rewarding shareholders. The company’s board of directors has agreed to a $2 billion buyback program, which could attract shareholders’ attention and benefit the company. Additionally, in 2018, MetLife plans to sell off its remaining stake in BHF by exchanging its own shares.

Whereas MetLife’s last-12-month free cash flow is $14.2 billion, peers (XLF) Arch Capital Group (ACGL), Reinsurance Group of America (RGA), and CNO Financial Group (CNO) have free cash flow of $1.4 billion, $1.5 billion, and $0.6 billion, respectively.

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