Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (45632)	11/22/2011 4:56:20 PM
From: Mark Mandel	Respond to of 78702

Read today that MET and AFLAC had the largest European risk in the large insurance sector.

To: Spekulatius who wrote (45632)	11/22/2011 5:51:31 PM
From: Sergio H	Read Replies (1) \| Respond to of 78702

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?