MetLife, Inc. MET benefits on the back of sound premiums, acquisitions and partnerships, cost-cutting efforts and a solid cash balance.
MetLife’s Zacks Rank & Price Performance
MetLife carries a Zacks Rank #3 (Hold) at present.
The stock has gained 23.2% in the past year compared with the industry’s 12.4% growth.
Image Source: Zacks Investment Research
MET’s Robust Growth Prospects
The Zacks Consensus Estimate for MetLife’s 2024 earnings is pegged at $8.24 per share, which indicates an improvement of 12.4% from the 2023 reported figure. The consensus mark for revenues is $72.2 billion, implying a rise of 0.7% from the 2023 reported figure.
The consensus mark for 2025 earnings is pegged at $9.70 per share, indicating an improvement of 17.7% from the 2024 estimate. The same for revenues is $75.6 billion, indicating a 4.7% increase from the 2024 estimate.
MetLife’s Northbound Estimate Revision
The Zacks Consensus Estimate for 2024 earnings has been revised upward 0.2% in the past seven days.
MET’s Solid Return on Equity
Return on equity in the trailing 12 months is currently 20%, which is higher than the industry’s average of 15.3%. This substantiates the company’s efficiency in utilizing shareholders’ funds.
MetLife’s Business Tailwinds
MetLife has seen a steady recovery in its premiums, which are a significant contributor to the revenues of any insurer. In the Group Benefits segment, premiums grew 4.3% year over year in the first nine months of 2024. Additionally, the EMEA and Latin America segments have delivered strong premium growth, further bolstering the company’s revenue base.
The company’s emphasis on streamlining operations, strategic acquisitions and collaborations is expected to support sustainable growth. MetLife has expanded its footprint in high-demand areas like vision care and pet insurance through acquisitions of Versant Health and PetFirst, respectively. Partnerships with firms like Aura and Nayya have further enhanced its benefits portfolio.
In December 2024, MetLife announced its partnership with Workday, which will integrate the former’s benefits offerings with the latter’s analytics-driven platform. MET has reduced volatility by divesting capital-intensive operations and prioritizing investments in high-growth areas.
Cost-saving initiatives have driven significant operational efficiency at MetLife. Between 2015 and 2020, the company improved its direct expense ratio by 230 basis points. This trend has persisted, with the direct expense ratio remaining below the guided 12.3% threshold in the first nine months of 2024.
MetLife’s robust liquidity position, evidenced by $21.8 billion in cash and cash equivalents as of Sept. 30, 2024, far exceeds its short-term debt of $404 million. This financial strength supports shareholder returns through share repurchases and dividend payouts. In April 2024, the company increased its dividend by 4.8%, further demonstrating its commitment to rewarding investors. Its dividend yield of 2.7% remains higher than the industry’s average of 2.5%.
Stocks to Consider
Some better-ranked stocks in the insurance space include United Fire Group, Inc. UFCS, Primerica, Inc. PRI and Kinsale Capital Group, Inc. KNSL. United Fire Group sports a Zacks Rank #1 (Strong Buy) at present, and Primerica and Kinsale Capital carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of United Fire Group outpaced estimates in three of the trailing four quarters and missed the mark once, the average surprise being 58.79%. The Zacks Consensus Estimate for UFCS’ 2024 earnings is pegged at $1.84 per share. A loss of $1.22 per share was incurred in the prior year. The consensus mark for revenues indicates 13.9% year-over-year growth. The consensus mark for United Fire Group’s 2024 earnings has moved 67.3% north in the past 60 days.
Primerica’s earnings outpaced estimates in two of the trailing four quarters and missed the mark twice, the average surprise being 4.89%. The Zacks Consensus Estimate for PRI’s 2024 earnings indicates 20.2% year-over-year growth while the same for revenues implies an improvement of 6.9%. The consensus mark for Primerica’s 2024 earnings has moved 6.7% north in the past 60 days.
The bottom line of Kinsale Capital outpaced estimates in each of the trailing four quarters, the average surprise being 9.41%. The Zacks Consensus Estimate for KNSL’s 2024 earnings indicates 24.9% year-over-year growth while the same for revenues implies an improvement of 30.6%. The consensus mark for Kinsale Capital’s 2024 earnings has moved 0.6% north in the past 30 days.
Shares of United Fire Group, Primerica and Kinsale Capital have gained 40.9%, 31.8% and 38.5%, respectively, in the past year.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>MetLife, Inc. (MET) : Free Stock Analysis Report
Primerica, Inc. (PRI) : Free Stock Analysis Report
United Fire Group, Inc (UFCS) : Free Stock Analysis Report
Kinsale Capital Group, Inc. (KNSL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
