MetLife: Top Institutional Sellers
Eight of the top ten institutional investors in MetLife (MET) reduced their holdings in the stock in the first quarter.
How Analysts Rate Prudential Financial
Of the 19 analysts that are covering Prudential Financial (PRU), six analysts suggest a “strong buy,” and eight suggest a “hold” rating on the stock. The remaining five analysts recommend a “buy” on Prudential Financial.
How Prudential Financial’s Valuations Stack Up Compared to Peers
The price-to-book ratio of Prudential Financial (PRU) stood at 0.85x on an NTM (next-12-month) basis, which is lower than the peer average of 1.22x.
Analyzing Prudential’s Life Planner Division’s Performance
Prudential Financial’s (PRU) Life Planner operations saw adjusted operating income of $416 million in 1Q18, while in 1Q17 it was $408 million.
How Prudential’s US Workplace Solutions Division Fared in 1Q18
The Retirement segment’s adjusted operating income was $317 million in 1Q18, while in 1Q17 it was $397 million.
How Prudential’s US Individual Solutions Division Performed
Prudential’s Individual Annuities segment generated adjusted operating income of $519 million in 1Q18 compared to $468 million in 1Q17.
What Analysts Are Saying about Prudential Financial
Of the 18 analysts covering Prudential Financial (PRU) in April 2018, six have recommended “strong buy,” five have recommended “buy,” and seven have recommended “hold.”
Prudential’s Asset Management Business
Prudential Financial’s (PRU) asset management business is overseen by PGIM.
What Prudential Has in Mind for US Workplace Solutions
Prudential Financial’s (PRU) US Workplace Solutions division comprises two businesses.
What Prudential’s Planning for Its Investment Management Business
Prudential’s investment management division is deploying money to expand its offerings and reach.
Prudential’s International Insurance Aims to Expand Reach
In 4Q17, Prudential Financial’s (PRU) life planner operations’ adjusted operating income fell to $383 million from $395 million in 4Q16 due to foreign currency exchange, policies, and increased expenses.
Prudential’s Individual Annuities and Life Business
Prudential Financial’s (PRU) individual annuities segment’s adjusted operating income rose by $119 million to $541 million in 4Q17 from $422 million in 4Q16.
A Look at the PGIM Ultra-Short Bond ETF
PGIM, which distributes Prudential Financial’s (PRU) retail products, has introduced the PGIM Ultra-Short Bond ETF, an actively managed fund focusing on capital appreciation and income generation.
What to Expect from Berkshire Hathaway’s 1Q18 Earnings
In this series, we’ll look into Berkshire Hathaway’s 1Q18 expected divisional performance along with a variety of other factors.
US Financials Rallied, Indexes Extended Gains
US stock markets rallied last week after February’s jobs report was better than expected. Non-farm payrolls rose by 313,000 in February.
What Are Prudential Financial’s Valuations?
Prudential Financial’s (PRU) price-to-earnings ratio is 8.93x on an NTM (next-12-month). The average for its peer group is 11.0x.
Prudential Financial Gets ‘World’s Most Ethical Company’ Again
Ethisphere Institute has awarded Prudential Financial (PRU) the “World’s Most Ethical Company” award for 2018.
Prudential Financial’s Gibraltar Life: Adjusted Operating Income
The adjusted operating income for Prudential Financial’s (PRU) Gibraltar Life and other operations was $1.7 billion in 2017 compared to $1.6 billion in 2016.
What Helped Prudential’s Investment Management Division in 2017?
Prudential Financial’s (PRU) Investment Management division posted adjusted operating income of $979 million in 2017 compared to $787 million in 2016.
Analyzing Prudential Financial’s Group Insurance Segment
Prudential Financial’s Group Insurance segment saw a decline in earnings from $43 million in 4Q16 to $22 million in 4Q17.
Behind Prudential’s Individual Life Segment
Prudential Financial’s (PRU) Individual Life segment posted adjusted operating income of -$191 million in 2017 compared to $79 million in 2016.
AIG Posted a Huge Loss in 4Q17
AIG (AIG) reported a net loss of $6.66 billion in 4Q17—compared to a loss of $3 billion in 4Q16.
MetLife: S&P 500’s Top Loser on January 30
On January 30, MetLife declined 8.6% and closed the day at $49.73. MetLife is part of the S&P 500 Financials sector, which declined 1.2% on Tuesday.
Understanding Analysts’ Ratings on MetLife
Of the 17 analysts covering MET, six have given it “strong buy” recommendations, seven have given it “hold” recommendations, one has given it a “sell” recommendation, and three have given it “buy” recommendations.
Analyzing MetLife’s Corporate and Other Division
MetLife’s (MET) corporate and other division posted operating earnings of -$522 million in the first nine months of 2017.
Understanding the Performance of MetLife’s Holdings Division
MetLife’s (MET) holdings division saw a substantial rise in its operating earnings from $500 million in the first nine months of 2016 to $1.0 billion in the first nine months of 2017.
Analyzing the Performance of MetLife’s EMEA Division
MetLife’s (MET) EMEA (Europe, the Middle East, and Africa) division generated total operating revenue of $2.10 billion in the first nine months of 2017.
MetLife: Latin America Division’s Operating Earnings Rose
MetLife’s (MET) Latin America division saw a rise in its total operating revenue from $3.5 billion in the first nine months of 2016 to $3.7 billion in the first nine months of 2017.
MetLife’s Asia Division Saw a Rise in Operating Earnings
MetLife’s (MET) Asia division posted total operating revenue of $8.4 billion in the first nine months of 2017 compared to $8.3 billion in the first nine months of 2016.
What to Expect from These MetLife Businesses in 2018
MetLife’s EMEA (Europe, the Middle East, and Africa) division is expected to see a rise of 5%–6% in the current year because of its departure from the UK retirement market.
How Will MET’s Property and Casualty, Asia Businesses Fare?
MetLife’s (MET) property and casualty (or P&C) business is expected to show an upward trend in 2018.
MetLife Launches InsurTech Investment Programs
MetLife has made an attempt to streamline its customer experience by announcing two InsurTech investment programs: MetLife Digital Accelerator and MetLife Digital Ventures.
What Can We Expect from MetLife in 4Q17?
Wall Street analysts have given a consensus estimate of $15.4 billion for MetLife’s 4Q17 revenue, which reflects a fall on a YoY (year-over-year) basis.
Underwriting May Help Berkshire’s Insurance Division
Claims could subside The insurance sector (IYF) faced headwinds and losses in 3Q17 due to hurricanes across the US East Coast. Berkshire Hathaway (BRK.B), AIG (AIG), Prudential Financial (PRU), MetLife (MET), and other reinsurers faced headwinds and underwriting losses in 3Q17, which were partially offset by gains from debt and equity investments. In 4Q17, claims are […]
How MetLife’s Valuation Compares
Lower valuation multiple MetLife (MET) has a next-12-month price-to-earnings ratio of 11.3x, lower than peers’ average ratio of 15.1x. Peers (XLF) CNO Financial Group (CNO), Reinsurance Group of America (RGA), and Arch Capital Group (ACGL) have ratios of 15.5x, 14.8x, and 14.9x, respectively. The spin-off of BrightHouse Financial (BHF) has led to substantial separation expenses, which […]
Assessing MetLife’s Assets and Liabilities
Total assets Whereas MetLife’s (MET) total assets fell to $720.5 billion at the end of 3Q17 from $898.7 billion at the end of 4Q16, its total investments rose to $445.7 billion from $420.9 billion, mainly due to higher sales of fixed maturity securities. Between the end of 4Q16 and 3Q17, MetLife’s accrued investment income rose from $3.3 […]
Why MetLife May Have Strong Growth Potential
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. How shareholders could benefit MetLife is focused […]
MetLife’s Performance in Europe, the Middle East, and Africa
Marginal fall MetLife’s (MET) operating earnings in the EMEA (Europe, the Middle East, and Africa) region fell from $74 million in 3Q16 to $71 million in 3Q17. Its total EMEA operating revenue fell from $702 million to $711 million, primarily due to higher premiums. In the EMEA region, MetLife’s premiums rose to $527 million from $500 million between 3Q16 […]
Total Operating Revenue Rises for MetLife’s US Division
Premiums MetLife’s (MET) US division’s total operating revenue rose from $7.9 billion in 3Q16 to $9.0 billion in 3Q17, mainly due to premiums, which rose to $6.9 billion from $5.9 billion. All of the division’s components saw higher operating revenue in 3Q17. Between 3Q16 and 3Q17, the US division’s net investment income rose to $1.60 billion […]
Why MetLife’s Total Expenses Rose
Expenses rise MetLife’s (MET) expenses comprise policyholder dividends and benefits, interest credited to policyholders’ accounts, and other expenses. The company incurred total expenses of $15.6 billion in 3Q17, compared with $14.6 billion in 3Q16. The rise in total expenses was mainly due to higher policyholder benefit and claim expenses, which rose to $10.6 billion in 3Q17 from […]
Berkshire’s Insurance Segment Hurting Performance in Medium Term
Berkshire Hathaway (BRK.B) has missed estimates in six out of seven quarters mainly due to the weaker performance of the insurance sector.
American International Group’s Total Expenses Rise in 3Q17
Total expenses rise American International Group’s (AIG) total benefits, losses, and expenses rose a substantial 20% from $12.1 billion in 3Q16 to $14.6 billion in 3Q17. This rise was mainly due to policyholder benefits and losses rising. In 3Q17, AIG incurred policyholder benefits and losses of $10.3 billion, compared with $7.5 billion in 3Q16, a […]
Chubb’s Net Investment Income Rose in 1H17
Chubb Limited (CB) reported net investment income of ~$1.5 billion in 1H17 compared to ~$1.4 billion in 1H16, reflecting a 9.6% increase. CB generated an 11% return on equity on a trailing-12-month basis.
Understanding AIG’s Reshuffling and Technology Initiatives
Brian Duperreault, chief executive officer of American International Group (AIG), has taken a major step by reshuffling the company into three units.
AIG in 3Q17: What We Can Expect
American International Group (AIG) is expected to announce its earnings for 3Q17 on November 2, 2017. Wall Street analysts have provided a high estimate of $0.90 for AIG’s 3Q17 EPS.
Comparing MetLife’s Dividend Yield
Revenue and earnings MetLife (MET), the holding corporation for the Metropolitan Life Insurance Company, saw its revenue fall 9% in 2016 and 5% in 2015. The fall was driven by universal life and investment-type product policy fees, net investment income, and other revenue. Expenses rose 2% in 2016 after falling 3% in 2015. Income from continuing operations, […]
Where MetLife’s Expected Total Dividend for 2017 Stands next to Allstate’s
In 2017, MetLife (MET) is expected to declare a total dividend of $1.61 per share, representing an increase of 1.9% from the total dividend it declared in 2016.
What Else Could Make This an Expensive Year for Insurance Giants?
US insurance giants (IYF) are expected to witness costs in the range of $20 billion–$65 billion stemming from the effects Hurricane Irma.
Understanding the Total Asset Balances of Insurance Giants
As of December 31, 2016, Chubb (CB) had total assets totaling $159.7 billion, compared with its total assets of $162.9 billion as of June 30, 2017.
Insurance after Harvey and Irma
Hurricane Harvey devastated Houston in late August 2017, causing damages totaling $180 billion, but Irma could be even more expensive.
What’s Happening with AIG’s Commercial Insurance Division?
From January 2016–June 2016, AIG managed to report total operating revenues of $10.8 billion—a 15% YoY fall, primarily due to lower premiums in 1H17.
These Insurance Giants Have Seen Declines in Their Total Revenues
In 1H17, Prudential Financial (PRU) generated total revenues of $27.1 billion—a year-over-year decline of ~5.8%.
What Led to Chubb’s Premium Valuations?
Wall Street analysts have given a one-year price target of $157.53 on Chubb (CB), an increase of 11.4% from the current price level.
How Chubb’s Life Insurance Division Fared
Chubb’s (CB) life insurance division has posted net premiums written of $523 million in 2Q17 as compared to $527 million in 2Q16.
How Chubb’s Overseas General Insurance Division Performed
Chubb’s (CB) Overseas General Insurance division saw a decline in its net premiums written in 2Q17 from $2.01 billion as compared to $2.03 billion in 2Q16.
How CB’s North America Personal Property Insurance Segment Performed
Chubb Limited (CB) has witnessed a rise of 2.0% in its net premiums written in 2Q17 as compared to 2Q16.
Chubb Beat EPS Estimates but Missed Revenue Estimates
Chubb (CB) reported earnings per share (or EPS) of $2.50 in 2Q17, which beat Wall Street analyst estimates of $2.47.
Prudential’s Discounted Valuations in 2Q17
Wall Street analysts recommended a one-year price target of $116.07 per share on Prudential Financial (PRU), reflecting an increase of ~14.1% from the current price.
A Look at Prudential Financial’s Dividends in 2017
In 2016, Prudential Financial (PRU) declared total dividends of $2.80 per share. In 2017, the company is expected to declare total dividends of $3.06 per share.
Insights into Prudential’s International Insurance Division
Prudential Financial’s (PRU) Life Planner division experienced an increase in its earnings in 2Q17 compared to 2Q16.
Understanding Prudential’s Group Insurance and Individual Life Earnings
In 2Q17, on the basis of annualized new business premiums, sales in Prudential’s Individual Life business stood at $153 million, reflecting a marginal decline of ~3.8% year-over-year.
Why Earnings Rose in Prudential’s Asset Management Business
In 2Q17, earnings from Prudential’s asset management business stood at $218 million compared to $207 million in 2Q16.
Analyzing Prudential’s Individual Annuities and Retirement Businesses
After excluding market-driven and discrete items, earnings from Prudential Financial’s individual annuities stood at $512 million in 2Q17 compared to $375 million in 2Q16.
Prudential Misses Earnings Estimates, Net Income Falls Year-over-Year
In 2Q17, Prudential Financial (PRU) reported 2Q17 net income of $491 million compared to $921 million in 2Q16. Its 2Q17 earnings per share of $2.09 missed the estimate of $2.70.
How Wall Street Analysts View AIG
American International Group (AIG) is covered by 18 analysts, out of which seven analysts gave “strong buy” ratings on the stock.
Why AIG Discounted Its Valuations in 2017
Wall Street analysts have given a one-year price target of $70.00 on American International Group (AIG), which reflects an ~14.1% increase from the current price.
Insights on AIG’s Share Repurchases
In 2Q16, AIG reported operating general operating expenses (or GOE) of $2.4 billion, which the company reduced by $191.0 million. It reported GOE of $2.2 billion in 2Q17.
Understanding AIG’s Dividend Distribution in 2017
AIG is expected to declare dividends of $1.33 per share in 2017, reflecting a rise of ~38.5% from the total dividends declared in 2016.
Analyzing AIG’s Life and Personal Insurance Business
AIG’s pretax operating income for personal insurance stood at $330 million in 2Q17. In 2Q16, it stood at $152 million.
AIG’s Individual and Group Retirement Businesses amid Strong Equity Markets
American International Group’s (AIG) Consumer Business division reported pretax operating income of ~$1.3 billion in 2Q17 compared to $948.0 million in 2Q16.
Why AIG’s Commercial Business Segment’s Operating Income Fell in 2Q17
In 2Q17, the pretax operating income of AIG’s Commercial Business division stood at $716 million compared to $941 million in 2Q16.
Why AIG’s Net Income Fell on a Year-over-Year Basis
AIG is expected to post earnings per share of $1.22 in 3Q17, an ~20.3% decline from its 2Q17 earnings. AIG is expected to report revenues of ~$11.8 billion in 3Q17.
AIG’s Analyst Ratings Suggest a 10% Upside in Fiscal 2017
In June 2017, 13 of the 19 analysts covering AIG rated AIG as a “buy” or a “strong buy.” Five analysts rated it as a “hold,” and one analyst gave it an “underperform” rating.
AIG’s Shareholder Payouts Rise on Higher Investment Income
In 1Q17, AIG repurchased ~56.0 million shares, or 5.5% of its total outstanding shares, for a purchase price of ~$3.6 billion. The company made additional repurchases of ~$1.1 billion through May 3, 2017.
Reinsurance, P&C Weigh on AIG’s Commercial Business
AIG’s Commercial division saw a loss ratio of 71.9 in 1Q17. AIG saw its book value expand ~2.5% in 1Q17 on a year-over-year basis.
AIG’s Restructuring Costs Consistent amid Strategic Transactions
In 4Q16, American International Group (AIG) spent $206.0 million on restructuring initiatives that target inefficiencies and expense reduction.
Gauging Berkshire’s Services and Retail Growth in 4Q
Berkshire Hathaway’s (BRK-B) services and retailing division is expected to garner marginal growth in 4Q16, sequentially as well as YoY.
Why AIG’s Stock Has Risen
American International Group’s (AIG) stock has risen more than 14% and 31% over the past three and six months, respectively.
AIG to Reward Shareholders at a Similar Pace in 2017
In 3Q16, AIG declared a quarterly dividend of $0.32 per share totaling $338 million, translating into an annualized dividend yield of 1.9%.
Why AIG Rose 14% in a Quarter despite Missing Estimates
In this series, we’ll study AIG’s expected performance, investment profitability, operating divisions, expansion, balance sheet, dividends, and valuations.
What to Expect from Berkshire Hathaway’s Earnings
Berkshire Hathaway (BRK-B) is expected to post EPS (earnings per share) of $2,829 per share in 4Q16 and $2,880 in 1Q17.
Prudential Rewarded Shareholders with $930 Million in 3Q16
In 3Q16, the company returned $930.0 million to shareholders in the form of dividends and buybacks.
Prudential International Fell on Gibraltar and Dollar
Prudential Financial’s (PRU) International Insurance segment reported adjusted operating income of $780.0 million in 3Q16, compared to $812.0 million in 3Q15.
Prudential’s US Individual Fell on Higher Claims, Reserves
Prudential Financial’s (PRU) operating income for its US Individual Life and Group Insurance fell to $173.0 million in 3Q16, compared to $227.0 million in 3Q15.
Prudential Rose on International Insurance and Asset Management
On November 2, 2016, Prudential Financial (PRU) reported its 3Q16 earnings. Its adjusted operating income per share was $2.66, which was higher than estimates of $2.49.
What Drove Berkshire’s Services and Retailing Business?
In 3Q16, Berkshire’s (BRK-B) revenues from its Services and Retailing division fell to $6.3 billion in 3Q16 as compared to $6.1 billion in 3Q15.
Berkshire’s Insurance Falls on Reinsurance and GEICO in 3Q
Berkshire Hathaway (BRK-B) saw underwriting revenues rise on a year-over-year basis in 3Q16 to $12.4 billion.
Buffett’s Berkshire Misses Estimates amid Volatile Environment
Berkshire Hathaway reported its third quarter earnings on November 5, 2016. The company missed analysts’ operating earnings per share estimates of $3,022 with reported EPS of $2,951.
AIG’s Expense Reduction, Divestitures, and Strategic Actions in 3Q16
AIG expects annual savings of $400 million–$500 million through its restructuring initiatives, consisting mainly of employee severance and improvement of technology platforms.
AIG Returned $2.6 Billion to Shareholders in 3Q16
AIG declared its quarterly dividend of $0.32 per share in 3Q16 totaling ~$338 million, translating into an annualized dividend yield of 2.2%.
AIG’s Consumer Insurance Benefits from Hedge Funds, Underwriting
American International Group’s (AIG) Consumer Insurance division recorded a rise in pretax operating earnings in 3Q16. The division’s pretax operating income rose to ~$1.4 billion compared with ~$657 million in 3Q15.
Bernstein Weighs In on the Fed Being Blamed for Bull Market
Rate cut and stocks Monetary accommodation is generally good for stocks. A cut in interest rates makes borrowing cheaper for households and businesses, pushing them to spend and invest. A rate cut is good for stocks because it allows companies to borrow money at lower interest rates and invest in new plants, machinery, or operation expansion, […]
Berkshire’s Services May Make a Dent in Wells Fargo in 3Q16
Berkshire might see a depletion in the valuation of its financial portfolio, mainly due to the fall in Wells Fargo stock.
AIG’s Restructuring Initiatives to Take Further Shape in 3Q
American International Group (AIG) has announced that it will spend $500 million on restructuring initiatives.
AIG Sees Importance of Targeting How Its Capital Is Structured
In 2016, American International Group (AIG) has continued to focus on strengthening its balance sheet.
Berkshire Hathaway’s Insurance Rises on GEICO, Primary Group in 2Q
Berkshire Hathaway’s statutory surplus for its insurance businesses was $124 billion on December 31, 2015.
Prudential Returns $700 Million in Payouts to Shareholders
Prudential Financial has been very consistent with dividend payouts to shareholders, which makes it a very strong prospect for long-term value investors.
AIG Valuations Expected to Improve on Performance in 2Q16
AIG’s stock is below its pre-Brexit level, but it has recovered substantially as buying continues in the US-based entities.
AIG Returned $3.2 Billion to Shareholders in 2Q16
AIG declared its quarterly dividend of $0.32 per share, translating into an annualized dividend yield of 2.4%.
AIG’s Shareholders to Benefit from 2Q Returns
American International Group (AIG) has stated that it will return $25 billion to its shareholders in 2016 and 2017. This is equivalent to 40% of its market capitalization.