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Strategies & Market Trends : Value Investing
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To: Spekulatius who wrote (45632)11/22/2011 5:51:31 PM
From: Sergio H  Read Replies (1) of 78704
 
Hi Clown.
MET's management agressive strategy was slowed down by the Feds. From the conference call:

< As we announced, we recently submitted a capital distribution plan to the Federal Reserve for approval that included both an increase in MetLife's annual dividend, as well as the resumption of stock repurchases. The Federal Reserve has concluded that the company's planned capital actions should be tested under a revised adverse macroeconomic scenario, which is being developed for those firms that will participate in the 2012 Comprehensive Capital Analysis and Review. As a result, the Federal Reserve did not approve the company's planned dividend increase and other proposed capital actions at this time.>

MET hedged against low interest rates by purchasing $18 billion of notional interest rate floors in 2004 and 2005. I don't know if other insurers have done the same.

The p/b alone makes MET a compelling value. Their acqusition of Alico have made them an international precense and they are now undergoing restructuring to enhance their operational growth. The only negative I saw here is that they have a large exposure to Japan where their business has been disrupted due to tsunami issues but that has to be already factored in to the share price.

Is the levered free cash flow negative due to their acquisition?
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