MetLife (MET) Arm Gets CBI License to Aid European Investors

MetLife, Inc.’s MET institutional asset management unit MetLife Investment Management (MIM) recently announced that its business in the European Economic Area (EEA), MetLife Investment Management Europe Limited (MIM Europe), received a license from the Central Bank of Ireland (CBI). This will likely equip the EEA business to better serve European institutional investors.

The authorization provided by the CBI will empower Dublin-based MIM Europe to manage and market two vehicles named Alternative Investment Fund (AIF) and Undertakings for the Collective Investment in Transferable Securities (UCITS). The license so received will also pave the way for MIM Europe to extend the comprehensive suite of MIM’s investment strategies across the EEA with the access of which European investors can earn solid, long-term and sustainable investment returns.

Moves similar to the latest one are expected to add strength to the asset management business of MetLife and sustain the leading market position that the multiline insurer has in Europe.

The latest achievement on the part of MIM seems time opportune considering strong demand for its core investment products throughout Europe. The recent license can only help MIM capitalize on the prevalent scenario wherein the MetLife unit will get an opportunity to utilize both its U.S. and Europe-based product and management prowess to cater to the needs of European institutional investors. Thus, the CBI validation will help MIM complement its endeavor of bolstering product offerings and strengthening its international footprint.

MetLife generally offers life, medical, dental, credit and other accident & health insurance, annuities, endowment, and retirement & savings products outside the United States. Management remains optimistic about MET’s ex-US businesses growing faster than its domestic businesses.  

Offering financial security to its plan participants remained the primary aim of MetLife and its subsidiaries. Sound expertise and a solid financial position eased MET’s method of achieving its target. The multiline insurer continues to offer financial security to its plan participants through various ways, ranging from extending its structured solutions for more than three decades, sound experience in managing longevity risks to sustaining a strong presence in the reinsurance space.

Shares of MetLife have gained 13.8% in a year against the industry’s decline of 6.6%. MET currently carries a Zacks Rank #3 (Hold).

Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks in the insurance space are Fidelity National Financial, Inc. FNF, Manulife Financial Corporation MFC and RLI Corp. RLI. While Fidelity National sports a Zacks Rank #1 (Strong Buy), Manulife Financial and RLI carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The bottom line of Fidelity National outpaced estimates in each of the last four quarters, the average being 31.73%. The Zacks Consensus Estimate for FNF’s 2022 earnings has moved 3.3% north in the past 30 days. FNF has a Value Score of A.

Manulife Financial’s earnings surpassed estimates in three of the last four quarters and missed the mark once, the average surprise being 3.39%.

The Zacks Consensus Estimate for MFC’s 2022 earnings suggests an improvement of 7.7% from the year-ago reported figure. The consensus mark for Manulife Financial’s 2022 earnings has moved 0.4% north in the past 30 days.

RLI has a trailing four-quarter earnings surprise of 40.23%, on average. The Zacks Consensus Estimate for the stock’s 2022 earnings has moved 1.3% north in the past 60 days. RLI has a Growth Score of B.

Shares of Fidelity National, Manulife Financial and RLI have lost 1%, 0.9% and 4.9%, respectively, in a year.

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