Metlife Intrinsic Value Calculator – MetLife Boosts Share Buyback with $19.2 Billion Reinsurance Deal with Global Atlantic.
June 27, 2023
☀️Trending News
METLIFE ($NYSE:MET): MetLife Inc is a leading provider of insurance, annuities, and employee benefit programs. On Thursday, the firm announced that it has entered into a $19.20 billion reinsurance deal with Global Atlantic Financial Group, a retirement and life insurance firm. The reinsurance deal enables MetLife to shift some of the risk associated with traditional life and annuity products off its balance sheet. This, in turn, will provide additional capital for the company to invest in new lines of business. Furthermore, MetLife will increase its stock buyback program by $2 billion as part of the agreement.
This will enable the company to buy back its own shares, thereby increasing shareholder value. This reinsurance deal is yet another example of MetLife’s commitment to strengthening its balance sheet while providing a better return on investment for its shareholders. It marks a major milestone for the company as it continues to navigate through an ever-changing economic landscape.
Share Price
Following the news, the METLIFE stock opened at $52.7 but closed at $51.8, a decrease of 1.8% from its prior closing price of $52.8. METLIFE has been focusing on increasing its shareholder return through share repurchases and dividend payments. This latest reinsurance deal marks another major step towards increasing shareholder value. MetLife_Boosts_Share_Buyback_with_19.2_Billion_Reinsurance_Deal_with_Global_Atlantic.”>Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Metlife. More…
| Total Revenues | Net Income | Net Margin |
| 69.74k | 1.76k | 2.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Metlife. More…
| Operations | Investing | Financing |
| 13.2k | -2.62k | -10.11k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Metlife. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 666.61k | 639.32k | 35.15 |
Key Ratios Snapshot
Some of the financial key ratios for Metlife are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.9% | – | 4.8% |
| FCF Margin | ROE | ROA |
| 18.9% | 7.8% | 0.3% |
Analysis – Metlife Intrinsic Value Calculator
At GoodWhale, we conducted an analysis of the fundamentals of METLIFE to determine its intrinsic value. We used our proprietary Valuation Line to determine that the intrinsic value of a METLIFE share is around $60.7. This presents an opportunity for investors to purchase METLIFE stock at a discounted rate. MetLife_Boosts_Share_Buyback_with_19.2_Billion_Reinsurance_Deal_with_Global_Atlantic.”>More…
Peers
In the insurance industry, MetLife Inc faces competition from Prudential Financial Inc, Great-West Lifeco Inc, Reinsurance Group of America Inc. All of these companies are in the business of providing life insurance and related products to individuals and businesses. MetLife has a diversified product mix that includes life, disability, long-term care, and annuities, among others. Prudential is focused on life insurance and annuities, while Great-West Lifeco and Reinsurance Group of America focus primarily on life insurance.
– Prudential Financial Inc ($NYSE:PRU)
Prudential Financial Inc. is an American multinational financial services company. It offers a variety of financial products and services, including life insurance, annuities, retirement-related services, mutual funds, asset management, and real estate services. As of 2022, it has a market cap of $35.87 billion.
Prudential was founded in 1875 and is headquartered in Newark, New Jersey. It has operations in the United States, Asia, Europe, and Latin America. The company serves individual and institutional customers through its various businesses. These businesses include life insurance, annuities, retirement-related services, mutual funds, asset management, and real estate services.
– Great-West Lifeco Inc ($TSX:GWO)
Great-West Lifeco Inc is a financial services holding company with operations in the United States, Canada, Europe and Asia. The Company’s segments include Great-West Life & Annuity Insurance Company (GWL&A), London Life Insurance Company (London Life), Canada Life Insurance Company (Canada Life), Irish Life Group Limited (Irish Life) and Putnam Investments LLC (Putnam).
– Reinsurance Group of America Inc ($NYSE:RGA)
Reinsurance Group of America, Incorporated is a holding company, which engages in the provision of life reinsurance, financial services, and asset management solutions. It operates through the following segments: Traditional Life Reinsurance, Asset Intensive Life Reinsurance, Group Reinsurance, and Financial Solutions. The company was founded in 1973 and is headquartered in Chesterfield, MO.
Summary
From an investing perspective, MetLife’s reinsurance deal could help alleviate some of the pressure on its balance sheet and generate additional capital for its investors. The company could also benefit from increased liquidity and capital to fund new investments and acquisitions. MetLife’s stock buyback program could also help drive up its share prices in the long-term, thus providing enhanced returns for its shareholders.
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