NEW YORK CITY (dpa-AFX) - Insurer MetLife, Inc. (MET) on Wednesday said it plans to focus more on protection products instead of more capital-intensive products and pay more attention to the emerging markets.
By 2016, the insurer expects to increase its return on equity to between 12 percent and 14 percent, up from 10.3 percent for 2011. The increase will be driven by higher operating earnings.
Aimed at generating more predictable operating earnings and cash flows, the insurance provider will shift its product mix toward protection products and away from more capital-intensive products.
MetLife expects to increase business in emerging markets to become 20 percent or more of operating earnings.
The company also plans to leverage its scale, thus achieving $600 million in net pre-tax expense savings. The company will improve its risk profile and free cash flow.
MetLife will refocus its U.S. business and plans to grow its voluntary benefits/worksite and direct businesses.
The company will strengthen its U.S. employee benefits business while growing the local benefits businesses outside the U.S.
The insurer will try to tap the emerging markets where improved standards of living are moving more People into middle class.
MetLife said that by developing a deep understanding of customers' needs and expectations, it expects to achieve higher organic growth rates, improve retention and lower costs.
Steven Kandarian, CEO, said, 'By operating as a global company and leveraging our scale to create efficiencies, we are building a strong foundation for creating long-term, sustained value for both customers and shareholders.
'We are positioning MetLife for continued growth and putting the company on a strong path for achieving our vision of being recognized as the leading global life insurance and employee benefits provider and a world-class company by any measure,' Kandarian added.
Kandarian and members of the senior management will outline the company's plans to increase shareholder value at an investor conference today.
MET closed at $31.07 on Tuesday, up 0.52 percent from the previous close, on a volume of 9.65 million shares.
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© 2012 AFX News
