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MetLife approves new $3 billion stock buyback plan

EditorNatashya Angelica
Published 05/02/2024, 05:48 AM
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NEW YORK - MetLife, Inc. (NYSE: NYSE:MET), a global provider of insurance and financial services, announced a new $3 billion share repurchase program today. This move, which is in addition to the roughly $600 million leftover from the previous buyback plan, underscores the company's strategy to enhance shareholder value while maintaining a balance with its growth investments.

The insurance giant's latest share buyback authorization follows closely on the heels of a dividend increase announced earlier in April. MetLife's President and CEO Michel Khalaf emphasized the company's disciplined approach to capital allocation, which aims to direct resources towards the most valuable opportunities to foster long-term shareholder value.

MetLife, established in 1868, operates across over 40 global markets, holding dominant positions in the Americas, Asia, Europe, and the Middle East. The firm is known for its comprehensive range of services, including life insurance, annuities, employee benefits, and asset management.

The announcement also included a cautionary note that the forward-looking statements are subject to risks and uncertainties. These statements, characterized by terms like "commitment," "growth," and "long-term," hinge on assumptions that may change due to various risk factors outlined in the company's filings with the U.S. Securities and Exchange Commission.

The information for this article is based on a press release statement from MetLife, Inc.

InvestingPro Insights

Following MetLife's announcement of a new $3 billion share repurchase program, InvestingPro metrics and tips shed additional light on the company's financial health and market performance. MetLife's management has demonstrated confidence in the company's value by aggressively buying back shares, an InvestingPro Tip that aligns with the recent repurchase initiative.

This move is supported by a history of consistent shareholder returns, with the company raising its dividend for 11 consecutive years, a testament to its disciplined capital allocation strategy mentioned by CEO Michel Khalaf.

InvestingPro Data reveals a market capitalization of $51.25 billion, reflecting MetLife's stature as a prominent player in the insurance industry. The company trades at a price-to-earnings (P/E) ratio of 39.82, which is adjusted to 37.14 based on the last twelve months as of Q4 2023. While this indicates a high earnings multiple, it's important to note that MetLife also maintains a solid dividend yield of 3.07% as of the latest data, which can be attractive to income-focused investors.

Moreover, MetLife's commitment to returning value to shareholders is further illustrated by its gross profit margin of 22.22% over the last twelve months as of Q4 2023. The company's ability to maintain profitability is also highlighted by analysts who predict MetLife will remain profitable this year, another InvestingPro Tip that may provide reassurance to investors considering the stock.

For those seeking more in-depth analysis and additional InvestingPro Tips on MetLife, including insights into earnings revisions and gross profit margins, visit InvestingPro. There are 12 additional tips available, offering a comprehensive view of the company's prospects. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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