MetLife Inc.

MetLife Inc.

Abstract

Insurance industry is directly related to the performance of the financial sector. Any movement in the macro-economic variables has a direct effect on the industry. Insurance industries, particularly in the US, have been struggling ever since the financial crisis hit global markets. The recession slowed down economic activities in most parts of the world and affected insurance companies adversely. In this report, we have discussed one of the largest insurance companies of the US, MetLife Insurance. MetLife Insurance has been struggling in recent years and posted 80% drop in profits in 2012 (CNN, 2013). We have included relevant data needed to evaluate the company's performance, such as stock charts, latest news, key financial ratios etc. The aim of this report was also to highlight factors which make MetLife Insurance distinct from other companies in the market. In the end, we have also discussed the level of competition currently present in the insurance market and the role competitors play in affecting MetLife Insurance's future strategy. Keeping all other relevant factors in mind, we have also forecasted the growth and future prospects of MetLife Insurance in the next few years.

Introduction

This report is an attempt to assess and evaluate MetLife Insurance from various perspectives. This will help us in making our understanding of the insurance industry better. Being one of the largest insurance companies in the US, prospects of MetLife Insurance also helps in predicting future prospects of the global insurance market. To begin our report, we will first include a latest news regarding MetLife Insurance which had a significant impact on MetLife. We will also include latest stock charts to show how well is MetLife Insurance performing recently. Ratio analysis will be performed to analyze and evaluate the financial performance of the company. Lastly, future outlook of the company will be discussed keeping the level of existing competition in mind.

News

“MetLife Provides $161.5 Million in Financing for Marathon Oil Office Tower”

There has been a recent press statement from MetLife revealing they have decided to invest more than $ 150m dollars in a real estate fund. The news tells us that MetLife is trying to increase its portfolio and reduce risk exposure. Increasing portfolio will also act as a hedge against a dwindling economy which is still reeling from the affects of financial crisis.

MetLife Inc. generated around $10 billion from its commercial mortgage loans last year. This makes MetLife Inc. one of the largest portfolio lenders in the insurance industry. The real estate portfolio of MetLife Inc. includes investments in retail, industrial and commercial properties. Mortgages from the real estate fund will help MetLife Inc. with investment opportunities that will match the long-term liabilities the company writes through its insurance products. This news is a positive step from MetLife as it will also help them to realize profits if the real estate prices go up in the future.

Stock Chart

(Image of MetLife Inc. stock price chart, retrieved from http://www.bloomberg.com/quote/MET:US/chart)

We have included the stock chart above for MetLife ...