MET inks reinsurance deal—boosts buyback authorization_to $4B…
Once again, MET had weak results in private equity. I warned about the unsustainable nature of this source of income some time ago in #msg-167739042.
MET reports 1Q23 results—$3B buyback authorization—(incremental_to_existing_ $200M_unused_authorization):
CFO’s 5-minute video:
MET increases annualized dividend to $2.08 (from $2.00):
At the current share price ($59.21), the new annualized payout represents a yield of 3.5%.
MET 5-min video by CFO on 4Q22 results:
MET 4Q22 results_hit_by_lower private-equity income:
I commented on the lack of sustainability of private-equity income such income in a post one year ago (#msg-167739042).
MET CFO's 5-minute video on 3Q22 results:
Note: MET is +20% YTD; it is a beneficiary of higher interest rates.
MET reports 3Q22 results:
• Net income of $331 million, or $0.41 per share, compared to net income of $1.5 billion, or $1.77 per share, in the third quarter of 2021.
• Adjusted earnings of $966 million, or $1.21 per share, compared to adjusted earnings of $2.1 billion, or $2.39 per share, in the third quarter of 2021.
• Book value of $27.00 per share, down 65 percent from $77.24 per share at September 30, 2021.
• Book value, excluding accumulated other comprehensive income (AOCI) other than foreign currency translation adjustments (FCTA), of $54.37 per share, down 5 percent from $57.29 per share at September 30, 2021.
• Return on equity (ROE) of 4.9 percent.
• Adjusted ROE, excluding AOCI other than FCTA, of 8.9 percent.
• Holding company cash and liquid assets of $5.2 billion at September 30, 2022, which is above the target cash buffer of $3.0 - $4.0 billion.
MET 2Q22 results…
Investment income from private equity was way down from the (unsustainable) level in 2Q21; this was offset to some degree by lower life-insurance claims due to COVID.
MET analysis—1Q22 non-GAAP EPS was -15% YoY due to weaker (but still objectively strong) results in private-equity investments. In #msg-167739042, I asked rhetorically how long MET could continue to post superlative results from private equity. Now, we’re seeing a regression to the mean (or perhaps worse).
MET’s insurance business benefits from higher interest rates insofar as MET is effectively short fixed income (i.e. it has net liabilities for eventual insurance claims). However, in recent quarters, the gains on MET’s private-equity investments have outweighed the interest-rate effect mentioned above.
All told, I’m not especially bullish on MET; however, I manage a portfolio that has a MET position with a cost basis of zero, stemming from MET’s de-mutualization in 2001.
MET—New $3B buyback authorization accompanies 1Q22 results…
CFO’s 5-minute video on 1Q22 results:
Note: The new $3B buyback authorization is in addition to $475M remaining on the previous buyback authorization—i.e. the total authorization is for ~$3.5B.
MET increases annualized dividend to $2.00 (from $1.92):
At the current share price ($66.72), the new annualized payout represents a yield of 3.0%.
MET CFO’s 5-min video on 4Q21 results:
Take all those superlatives with a grain of salt.
MET 4Q21—Poor underwriting again bailed out by private-equity investment gains:
How long can MET continue to log outsized results in private equity? [Rhetorical]
MET 3Q21 results…
CFO’s 5-minute video:
MET 2Q21 results—new $3B buybcak authorization:
5-min video on 2Q21 results:
MET increases annualized dividend to $1.92 (from $1.84):
At the current share price ($63.36), the new annualized payout represents a yield of 3.0%.
https://finance.yahoo.com/news/metlife-cfo-john-mccallion-provides-211500418.html (5-min CEO video)
The stock is +3% in AH trading.
MET sells P&C business to Zurich Insurance for $3.94B—inline with prior reports—proceeds to be used for share buybacks (under new $3B authorization):
MET near deal to divest property/casualty business for $4B:
P&C is a relatively small portion of MET’s business portfolio.
MET 3Q20 results:
The stock is flat in AH trading.
MET acquires vision-care insurer—Versant Health—for $1.68B in cash…
Versant has 35M members to be folded into MET’s Group benefits segment.
MET—(-6%/AH)—reports 2Q20 results—the main negative in the quarter was not COVID-19 claims, but rather losses on private equity and derivative securities:
Smart move by the company. I had a very small short position to play after seeing someone called on shorting MET. I closed after seeing MET increased their dividend. Some learning experiences for me. Thank you for your postings.
MET is a good company.
MET 1Q20 results:
Astonishingly, MET says that COVID-19 will have only a “modest” impact on 2020 financial results—see slide #10 at: https://s23.q4cdn.com/579645270/files/doc_financials/2020/Q1/MET_1Q-20-Supplemental-Slides-FINAL.pdf .
MET boosts dividend—forward yield=5.2%:
Thanks a lot for your insights!
MET has been unusually volatile lately because investors are finding it hard to get a handle on the effect of the pandemic on MET’s various business segments. The volatility will likely continue until MET announces 1Q19 results and updated 2020 guidance on 5/6/20 (after the market close).
For related info, please see:
MET is coming down pretty hard today. What is the cause? I have been reading the 10k but it is such a big company.
Despite the discombobulated corporate-bond market, MET managed to issue $1B of 10-year bonds paying interest @4.55% in a deal that closed today:
This is encouraging and might signal a bottom for the stock, which has dropped an astonishing 55% since 2/12/20.
Please see #msg-154310158 for related info.
DD why did the MET chart drop the way it has and do you know anything about the deal they have with SOLI https://investorshub.advfn.com/boards/replies.aspx?msg=154373738