MetLife approves new $3 billion stock buyback plan

NEW YORK - MetLife, Inc. (NYSE: MET), a global provider of insurance and financial services, has announced a new $3 billion stock repurchase program. This new plan is in addition to the approximately $360 million remaining from the previous buyback authorization, which was publicized in May 2024. With a current market capitalization of $51.28 billion and trading at a P/E ratio of 12.44, InvestingPro analysis suggests the stock is currently undervalued relative to its Fair Value.

The announcement comes after a recent declaration earlier this month of a 4.1% dividend increase for MetLife’s common stock, bringing the current yield to 2.97%. InvestingPro data reveals that MetLife has maintained dividend payments for 26 consecutive years and has raised its dividend for 12 straight years. Michel Khalaf, President and CEO of MetLife, stated that these initiatives demonstrate the company’s strong financial position and consistent performance. According to Khalaf, such actions are part of MetLife’s ’New Frontier’ strategy, aimed at delivering an attractive total return to its shareholders.

Founded in 1868, MetLife has a significant presence in over 40 global markets, with leading market positions in the United States, Asia, Latin America, Europe, and the Middle East. The company offers a range of products and services, including insurance, annuities, employee benefits, and asset management. With annual revenue of $70.98 billion, MetLife maintains strong financial metrics, including a healthy current ratio of 1.54, indicating solid liquidity. For deeper insights into MetLife’s financial health and growth potential, investors can access comprehensive analysis through InvestingPro’s detailed research reports.

MetLife’s forward-looking statements, such as those regarding its commitment to shareholder returns, are subject to various risks and uncertainties. These include factors outlined in the company’s filings with the U.S. Securities and Exchange Commission. While MetLife has expressed confidence in its projections, it acknowledges that actual results may differ and has not committed to updating any forward-looking statements publicly.

This news is based on a press release statement and provides an overview of MetLife’s recent financial actions, reflecting the company’s strategic approach to capital management and shareholder value.

In other recent news, MetLife has announced a significant agreement to reinsure approximately $10 billion of its U.S. retail variable annuity and rider reserves with Talcott Resolution Life Insurance Company. This transaction is expected to reduce MetLife’s retail variable annuity tail risk by about 40% and is anticipated to close in the second half of 2025. Additionally, MetLife has raised its quarterly common stock dividend by 4.1%, resulting in a dividend of $0.5675 per share for the second quarter of 2025, highlighting its commitment to shareholder value amid economic uncertainty. In another development, MetLife has issued $1 billion in subordinated debentures due 2055, marking a change in its financial structure and aligning with its capital management strategy. The company also completed a private placement transaction, securing $1.25 billion through the issuance of Pre-Capitalized Trust Securities, which are set to be redeemed in 2055. Furthermore, board member David L. Herzog has announced his resignation effective May 1, 2025, a decision not related to any disagreements with the company. These developments reflect MetLife’s ongoing efforts to optimize its business portfolio, manage financial risks, and maintain stability within its leadership structures.

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