Workflow
Will MetLife Benefit In 2025?
METMetLife(MET) Forbes·2025-01-03 11:00

Company Performance - MetLife's stock gained 28% over the last year, outperforming the S&P 500 index, which returned 23% [1] - Prudential Financial, a peer company, saw a 19% stock increase over the same period [1] - Q3 adjusted operating revenues declined 3.4% year-over-year to 17.6billion[1]Premiums,fees,andotherrevenuesdecreasedbyapproximately517.6 billion [1] - Premiums, fees, and other revenues decreased by approximately 5%, while investment-related income rose 8% [1] - Adjusted earnings were 1.93 per share, impacted by a 7.3% year-over-year increase in expenses due to higher interest credited to policyholder account balances [1] - The group benefits business underperformed, particularly in non-medical health underwriting and actuarial assumption review [1] Market Trends and Outlook - The U.S. Federal Reserve's slower path toward monetary easing could benefit MetLife, as life insurers are more sensitive to interest rates due to their long-term bond-heavy investment strategies [2] - Potential regulatory and tax changes under the Trump administration may improve profitability for insurers like MetLife [2] - MetLife has been growing its dividend yield and maintains a strong share buyback program, which could drive long-term gains [2] - At 82pershare,MetLifesstockistrading582 per share, MetLife's stock is trading 5% below Trefis' estimated valuation of 86 per share [2] Comparative Analysis - The Trefis High Quality Portfolio, consisting of 30 stocks, has provided better returns with less risk compared to the S&P 500 index over the last four years [2]