MetLife is Executing Its New Frontier Strategy

MetLife’s strategic priorities, laid out in its “New Frontier” plan, include extending its leading position in its US group benefits business, increasing its business mix from the firm’s retirement and international business segments, and growing its asset management business to over $1 trillion in assets under management, or AUM. Said otherwise, the firm plans to shift its exposure away from more volatile US individual underwriting, which we view as prudent. Overall, we like the steps that the company has taken to simplify its business and reduce risk, including divesting its US retail arm, which had focused on variable annuities and universal life policies with secondary guarantees. We expect the firm’s earnings quality to continue to improve as its closed blocks gradually wind down.