MetLife, Inc. (NYSE:MET) today announced that it will resume share
repurchases and intends to repurchase up to $1 billion in MetLife, Inc.
common stock. The company will utilize existing authorizations from the
board of directors to repurchase MetLife, Inc. common stock. The last
time MetLife repurchased shares was 2008.
Commenting on the announcement, Chairman, President and Chief Executive
Officer Steven A. Kandarian said:
“Our philosophy is that excess capital belongs to our shareholders. The
challenge is to strike the right balance between adherence to our
philosophy and recognition that MetLife’s required capital levels remain
unknown if we are designated a non-bank systemically important financial
institution, or SIFI, under the Dodd-Frank Act.
“We anticipated that the non-bank SIFI capital rules would be known by
now, but recent statements by the Federal Reserve suggest that we may
not see draft rules until 2015. Meanwhile, our capital continues to
grow, and later this year we will raise $1 billion as the last tranche
of equity units issued to fund the Alico purchase converts to common
shares.”
About MetLife
MetLife, Inc., through its subsidiaries and affiliates (“MetLife”), is a
leading global provider of insurance, annuities and employee benefit
programs. MetLife holds leading market positions in the United States,
Japan, Latin America, Asia, Europe and the Middle East. For more
information, visit www.metlife.com.
Forward-Looking Statements
This news release may contain or incorporate by reference information
that includes or is based upon forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements give expectations or forecasts of future
events. These statements can be identified by the fact that they do not
relate strictly to historical or current facts. They use words such as
“anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“believe” and other words and terms of similar meaning, or are tied to
future periods, in connection with a discussion of future operating or
financial performance. In particular, these include statements relating
to future actions, prospective services or products, future performance
or results of current and anticipated services or products, sales
efforts, expenses, the outcome of contingencies such as legal
proceedings, trends in operations and financial results.
Any or all forward-looking statements may turn out to be wrong. They can
be affected by inaccurate assumptions or by known or unknown risks and
uncertainties. Many such factors will be important in determining the
actual future results of MetLife, Inc., its subsidiaries and affiliates.
These statements are based on current expectations and the current
economic environment. They involve a number of risks and uncertainties
that are difficult to predict. These statements are not guarantees of
future performance. Actual results could differ materially from those
expressed or implied in the forward-looking statements. Risks,
uncertainties, and other factors that might cause such differences
include the risks, uncertainties and other factors identified in
MetLife, Inc.’s filings with the U.S. Securities and Exchange Commission
(the “SEC”). These factors include: (1) difficult conditions in the
global capital markets; (2) increased volatility and disruption of the
capital and credit markets, which may affect our ability to meet
liquidity needs and access capital, including through our credit
facilities, generate fee income and market-related revenue and finance
statutory reserve requirements and may require us to pledge collateral
or make payments related to declines in value of specified assets,
including assets supporting risks ceded to certain of our captive
reinsurers or hedging arrangements associated with those risks;
(3) exposure to financial and capital market risks, including as a
result of the disruption in Europe; (4) impact of comprehensive
financial services regulation reform on us, as a potential non-bank
systemically important financial institution, or otherwise; (5) numerous
rulemaking initiatives required or permitted by the Dodd-Frank Wall
Street Reform and Consumer Protection Act which may impact how we
conduct our business, including those compelling the liquidation of
certain financial institutions; (6) regulatory, legislative or tax
changes relating to our insurance, international, or other operations
that may affect the cost of, or demand for, our products or services, or
increase the cost or administrative burdens of providing benefits to
employees; (7) adverse results or other consequences from litigation,
arbitration or regulatory investigations; (8) potential liquidity and
other risks resulting from our participation in a securities lending
program and other transactions; (9) investment losses and defaults, and
changes to investment valuations; (10) changes in assumptions related to
investment valuations, deferred policy acquisition costs, deferred sales
inducements, value of business acquired or goodwill; (11) impairments of
goodwill and realized losses or market value impairments to illiquid
assets; (12) defaults on our mortgage loans; (13) the defaults or
deteriorating credit of other financial institutions that could
adversely affect us; (14) economic, political, legal, currency and other
risks relating to our international operations, including with respect
to fluctuations of exchange rates; (15) downgrades in our claims paying
ability, financial strength or credit ratings; (16) a deterioration in
the experience of the “closed block” established in connection with the
reorganization of Metropolitan Life Insurance Company; (17) availability
and effectiveness of reinsurance or indemnification arrangements, as
well as any default or failure of counterparties to perform;
(18) differences between actual claims experience and underwriting and
reserving assumptions; (19) ineffectiveness of risk management policies
and procedures; (20) catastrophe losses; (21) increasing cost and
limited market capacity for statutory life insurance reserve financings;
(22) heightened competition, including with respect to pricing, entry of
new competitors, consolidation of distributors, the development of new
products by new and existing competitors, and for personnel;
(23) exposure to losses related to variable annuity guarantee benefits,
including from significant and sustained downturns or extreme volatility
in equity markets, reduced interest rates, unanticipated policyholder
behavior, mortality or longevity, and the adjustment for nonperformance
risk; (24) our ability to address difficulties, unforeseen liabilities,
asset impairments, or rating agency actions arising from business
acquisitions, including our acquisition of American Life Insurance
Company and Delaware American Life Insurance Company, and integrating
and managing the growth of such acquired businesses, or arising from
dispositions of businesses or legal entity reorganizations; (25) the
dilutive impact on our stockholders resulting from the settlement of our
outstanding common equity units; (26) regulatory and other restrictions
affecting MetLife, Inc.’s ability to pay dividends and repurchase common
stock; (27) MetLife, Inc.’s primary reliance, as a holding company, on
dividends from its subsidiaries to meet debt payment obligations and the
applicable regulatory restrictions on the ability of the subsidiaries to
pay such dividends; (28) the possibility that MetLife, Inc.’s Board of
Directors may influence the outcome of stockholder votes through the
voting provisions of the MetLife Policyholder Trust; (29) changes in
accounting standards, practices and/or policies; (30) increased expenses
relating to pension and postretirement benefit plans, as well as health
care and other employee benefits; (31) inability to protect our
intellectual property rights or claims of infringement of the
intellectual property rights of others; (32) inability to attract and
retain sales representatives; (33) provisions of laws and our
incorporation documents may delay, deter or prevent takeovers and
corporate combinations involving MetLife; (34) the effects of business
disruption or economic contraction due to disasters such as terrorist
attacks, cyberattacks, other hostilities, or natural catastrophes,
including any related impact on the value of our investment portfolio,
our disaster recovery systems, cyber- or other information security
systems and management continuity planning; (35) the effectiveness of
our programs and practices in avoiding giving our associates incentives
to take excessive risks; and (36) other risks and uncertainties
described from time to time in MetLife, Inc.’s filings with the SEC.
MetLife, Inc. does not undertake any obligation to publicly correct or
update any forward-looking statement if MetLife, Inc. later becomes
aware that such statement is not likely to be achieved. Please consult
any further disclosures MetLife, Inc. makes on related subjects in
reports to the SEC.
Copyright Business Wire 2014