Analysts at UBS Investment Research took a look at MetLife (NYSE:MET) during Investor Day and concluded that the company has a “great outlook, but over time.”
Although MetLife’s global outlook looks strong, its ROE targets may take longer to come to fruition than investors would like. MetLife is currently targeting a 12-14% op ROE by 2016, up from 10.3% in 2011, despite headwinds.
In order to achieve 2016’s ROE targets, MetLife hopes to employ a mix shift toward protection products with stable returns, $1billion of efficiency gains and growth in high return emerging markets.
MetLife’s management targets an emerging markets earnings mix of 20%+ by 2016. MetLife also hopes to capitalize on its group benefits expertise and aims to grow its non-US group benefits earnings by $250 million by 2016, from $280 million in 2014.