Accounting and Financial Analysis of MetLife Insurance

Financial Analysis

Introduction3

Discussion4

1.Overview of Company4

2.1. Business Strategy Analysis5

SWOT Analysis6

3.2. Accounting Analysis7

4.3. Financial Analysis8

3.1. MetLife's Income Statement9

3.2. MetLife's Balance Sheet9

3.3. MetLife's Cash Flow Statement9

3.4. MetLife's Ratio calculation9

5.4. Prospective Analysis12

6.5- A critical reflection on the company portrayed by journalists and other financial reports13

Conclusion & Recommendation13

References15

Appendix17

3.1. MetLife's Income Statement17

3.2. MetLife's Balance Sheet17

3.3. MetLife's Cash Flow Statement18

Accounting and Financial Analysis of MetLife Insurance

Introduction

Financial analysis helps the investors and creditors to know about various important variables of the company. It gives insight about how the company is performing and its creditworthiness. Investors and creditors are more inclined towards their returns & repayments respectively. They have to gauge the performance, repayment capacity and the ability of the company to pay rewards to investors before they take any material interest in the company. Financial analysis assists stakeholders to understand the company using ratio analysis & common-size statements i.e. horizontal & vertical analysis.

It helps company in taking long-term and even in short-term decisions. Because of such surmounting importance, it has become integral part of the planning & budgeting of the company. Therefore, financial analysis has significantly influenced the internal management of the organizations too. Financial analysis aids analysts and interested parties relatively easy about the financial health of the company rather swallowing big numbers aimlessly.

This assignment is dedicated at explaining the financial and accounting analysis of MetLife insurance. We have classified this assignment into five parts; first part explains the business strategy of the underlying company, second and third part of the assignment explains its accounting and financial position respectively. Forth part elucidates prospective analysis of the company is presented. , however, in the last part, a set of recommendations are listed for the betterment of the company.

Discussion

Overview of Company

The sector that is selected to conduct accounting and financial analysis as per requirement of the given assignment is Insurance industry, and the company that we have selected is MetLife insurance. Insurance sector in US has the maximum growth rate of 40% to 60% (Ernst & young, 2013). This growth potential has attracted me to pen down my accumulated knowledge of this course on insurance sector. MetLife, a name considers as a global leader in providing insurance and insurance related product across the globe was establishes in 1868. The Company deals in all kind of benefits related to employee in 60 countries with a customer base of 90 million (MetLife Insurance, 2013) MetLife has also played a very important role in helping and healing of the country, and this can be traced back into 1909 when 50 million broachers' and pamphlets of Frankel's works on Prevention of Tuberculosis was distributed for public education by the agents of MetLife Insurance.

In addition to this, 88 companies of Fortune 100 are among its corporate clients (CNN, 2012). MetLife is holding a leading position in United Stated of America, Japan, Asia, Europe, Africa and Middle East. MetLife deals directly with its customers and it also involve brokers, agents and third party contracts to facilitate the wide ...