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MetLife Inc MET

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

MetLife's Investment Income and Expense Management Drive Solid Earnings

Rajiv Bhatia, CFA Equity Analyst

Analyst Note

| Rajiv Bhatia, CFA |

MetLife reported a solid start to the year with adjusted EPS of $2.20 easily topping the FactSet consensus of $1.53. We attribute the bulk of the beat to higher-than-expected variable investment income from private equity funds. Pretax variable investment income was $1.39 billion, up from $778 million in the prior quarter and $351 million in the year-ago period. Excluding the divestiture of the property and casualty business, U.S. adjusted earnings increased 17% and Asia saw strong growth while Latin America and Europe, the Middle East, and Africa saw softness. We expect variable investment income to revert to more normalized levels, and we will maintain our no-moat rating and $48 fair value estimate.

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Company Profile

Business Description

MetLife--once a mutual company before the 2000 demutualization--is the largest life insurer in the U.S. by assets and provides a variety of insurance and financial services products. Outside the United States, MetLife operates in Japan and more than 40 countries in Latin America, Asia-Pacific, Europe, and the Middle East.

Contact
200 Park Avenue
New York, NY, 10166-0188
T +1 212 578-9500
Sector Financial Services
Industry Insurance - Life
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2020
Stock Type Classic Growth
Employees 46,500

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