Dallas, Texas 12/27/2013 (FINANCIALSTRENDS) – Metlife Inc (NYSE:MET), the S&P 500 index tracked life insurance provider gained close to 4 percent this week on the back of positive news emanating about its increased market coverage and new partnerships. One such news was the announcement made by the $60 billion market capped insurer has consummated a $249 million deal with Malaysia premier insurance agency “Malaysia’s AMMB Holdings Bhd. (AMM)”. With this stake purchase, the largest life insurance provider in U.S will be entering into a new market which has shown great promise in the past decade as a true emerging market with strong potential for growth. With the stake purchase, Metlife Inc (NYSE:MET) will own close to half of AmLife Insurance Berhad and an equal part of AmFamily Takaful Berhad and hence willhave a strong presence in Malaysian insurance sector. Readers should note that this deal is yet to receive regulatory approval from the Malaysian government.
These moves by Metlife Inc (NYSE:MET) is an implementation of a broader vision envisaged by its CEO Steve Kandarian who wants to see close to 20 percent of his company’s annual operating profits to be derived from emerging markets by 2016. This would be a 6 percent increase from its 2012 figures, where emerging markets contributed 14 percent profit. Readers should note that over the past year, close to $2 billion has been spent by the insurer to expand into insurance markets in Chile and Vietnam.
Commenting about the Malasyian deal Metlife Inc (NYSE:MET) Asia Region president Chris Townsend has been quoted as saying, “ This deal advances MetLife’s strategy to capitalize on growth opportunities in emerging markets, and further expands our footprint into fast growing and profitable South East Asia insurance markets.
Metlife Inc (NYSE:MET) in the past year has managed to post 67 percent increase in its market value in the trailing 12 months.