Home > Boards > Free Zone > All Fundamentals > Natural Resources/The Global Demographic Tailwind

Re: MET’s surprising (45%) sell-off There must

Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (3) | Next 10 | Previous | Next
DewDiligence Member Profile
Member Level 
Followed By 748
Posts 115,197
Boards Moderated 14
Alias Born 09/05/02
160x600 placeholder
Top Company News of the Day
TV networks also are expected to pay nearly twice as much for new rights to Sunday and Monday games.
Nasdaq Falls 2.7% as Bond Yields Rise
Xero to Pay Up to EUR183.5 Million for Workforce Platform Planday
Sands to Sell Las Vegas Properties for $6.25 Billion to Apollo Global, REIT -- 2nd Update
Fed's Evans Not Worried By Rise In Long-Term Bond Yields
Climate Change Emerges as a Compliance Focus for SEC --- Update
More Rate Scares Ahead for Stocks -- Heard on the Street
Amazon in Talks to Carry Many NFL Games Exclusively on Prime Video--Update
Snowflake's 4Q Revenue More Than Doubles From Year Earlier, Loss Widens
U.S. Businesses Optimistic About Economy Due to Vaccines and Hiring, Fed Beige Book Says -- Update
Cinema Chain Alamo Drafthouse Plans Bankruptcy Sale to Fortress-Led Investors
Corn Futures Slide as Strong Planting Weather Mulled
FedEx Delivery Delays Stretch for Weeks After Storms Hit Memphis Hub -- 2nd Update
Climate Change Emerges as a Compliance Focus for SEC
The Decade of Quantum Computing Is Upon Us, IBM Executive Says
Vir Shares Down 29% After Update on NIH-Sponsored Trial
Jeep-Owner Stellantis Is Open to Dropping Cherokee Name, CEO Says -- Update
U.S. Businesses Optimistic About Economy Due to Vaccines and Hiring, Fed Beige Book Says
Jeep-Owner Stellantis Is Open to Dropping Cherokee Name, CEO Says
Growth Shares Lead Stock Market Lower
FedEx Delivery Delays Stretch for Weeks After Storms Hit Memphis Hub -- Update
Vivendi: The Good Results for 2020 Confirm the Resilience of the Group's Main Businesses
DewDiligence Member Level  Thursday, 03/12/20 05:45:10 PM
Re: semi_infinite post# 21288
Post # of 23686 
Re: MET’s surprising (45%) sell-off
Quote:
There must be fear of exposure to payouts on policies.

There’s an investor misconception based on the company’s name (MetLife) that MET is primarily a life-insurance company. MET was primarily a life-insurance company for many years, but it is now a diversified financial-services company. In 2017, MET spun off its US life-insurance business to BHF (https://www.metlife.com/about-us/newsroom/2017/august/metlifecompletesspin-off-of-brighthouse-financial/ ), leaving Japan as the only major country where MET continues to sell life insurance. All told, life insurance is now a small part of the overall corporate pie.

So, investors who think MET will be on the hook for outsized COVID-19 death payments are mistaken.
Quote:
What would be the worse case hit for them?

Prolonged very low (or negative) interest rates. MET’s asset portfolio that provides the actuarial support for future claims is heavily weighted in bonds. As the bonds in MET’s portfolio mature, declining interest rates have forced MET to reinvestment at lower and lower coupon rates, thereby reducing earnings.

Still, even the historic collapse in interest rates we’ve recently seen doesn’t fully justify the 45% sell-off MET has experienced in the past 30 days.

“The efficient-market hypothesis may be
the foremost piece of B.S. ever promulgated
in any area of human knowledge!”
Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (3) | Next 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist
Consent Preferences