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Is MetLife a Value Investment? — Market Mad House
The Buffett concept of insurance as a value investment got me wondering about America’s old line life insurance provider MetLife (NYSE: MET).
On the surface, MetLife has many value characteristics including a low price and an unsexy business; life, health, auto, home, dental, disability, and pet insurance. In particular, MetLife shares are cheap they traded at $50.56 on 29 January 2020.
MetLife has a large business with a huge business. MetLife claims to be the number one life insurer in Mexico, Chile, and Latin America, for instance.* In addition, MetLife claims to be the #2 foreign life insurer in Japan and South Korea.
Is MetLife making Money?
Yes, MetLife is making money. MetLife reported a $6.234 billion quarterly gross profit on 30 September 2019.
That gross profit was up from $5.687 billion on 30 June 2019 and $4.548 billion on 30 September 2018. Additionally, MetLife reported a $2.791 billion quarterly operating income on 30 September 2019.
Beyond that MetLife reported a $2.152 billion quarterly operating income on 30 September 2019. That number was up from $880 million 30 September 2018.
