Reviewing Metlife Inc (NYSE:MET): Analyst’s Pick in Tough Macro Environment

May 13, 2016

Managing Director Randy Binner of FBR Capital Markets says Metlife Inc (NYSE:MET) is a stock he recommends within the current volatile macro environment surrounding the insurance space.

As a space overall, we are trying to recommend names that are relatively more stable or with a catalyst because broadly speaking, the space is tough.

MetLife is a name we like because of two things. One, they have already announced this but have yet to execute on a spin of the U.S. retail business, which is focused on life and annuity products. So it is more spread-sensitive and more volatile than the remaining company of MET, which will be a more internationally focused protection and retirement company.

We think that remaining company would have a higher multiple. The market in general likes spins, and this a spin that MetLife can do a good job executing, and it should lead to a higher multiple for the majority of the business.

Also, MetLife recently prevailed on a court action here in D.C. against FSOC that put MET in a status where they are no longer deemed what is called a nonbank SIFI. Therefore, they have less of a regulatory overhang. The government is going to appeal that, but for now, MET has more regulatory flexibility.