Boston, MA 08/01/2014 (wallstreetpr) – Metlife Inc (NYSE:MET) for the first time announced the stock buyback since 2008. CEO Steven Kandarian made the announcement last month. He also added that until, and unless the company gets the clarity on US capital oversight, it won’t go for additional repurchases. The management is cautious about the capital management. The decision on repurchases cannot be made in uncertain times. Metlife also wants to return the capital to shareholders. It will be done as per the defined regulatory environment.
Buyback
Metlife Inc (NYSE:MET) went to buy back $1 billion of shares last month. The repurchase was modest that will balance the dilution of units. The impact was seen on the stocks when Metlife acquired American Life Insurance Co. Metlife is the largest life US insurer of US. The US regulators are reviewing the insurer to check whether it is a threat to the financial system. If it happens, it will be oversight by the Fed Reserve. It will also have to face stricter capital standards. The final rules remain undisclosed.
Offset equity dilution
The main aim of the buybacks is to offset the equity dilution. Analysts’ are eager to know if the Metlife Inc (NYSE:MET) will increase the buybacks to offset impact of equity dilution. CEO said that it was a difficult answer. They cannot make up any final decision until they get more information on the matter.
Solving the problems
Metlife Inc (NYSE:MET) has also announced its second-quarter results this week. The profit missed the analysts’ estimates. The profit from the Americas group benefit unit came lower due to the increased comings coming from the dental insurance and disability claims. The problems are coming from Russia that is still facing more sanctions from the US. The growth has been disappointing in the Europe. But still Metlife is making all the necessary efforts to adjust the expense structure as per the new situation.
