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MetLife's (MET) Structured Solution to Offer Financial Security
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MetLife, Inc. (MET - Free Report) recently introduced a Structured Installment Sale solution, which can be utilized for the sale of properties qualified for the Installment Method under Internal Revenue Code Section 453. The solution can be availed across 49 states, Puerto Rico and Washington, D.C. via MET’s subsidiary, Metropolitan Tower Life Insurance Company.
If parties decide to pursue an installment sale for a property, they might prefer a structured installment sale owing to the numerous benefits. The concept of a structured installment sale basically entails distributing the entire sale proceeds into periodic payments instead of paying a one-time lump sum amount to the seller. As taxes will be paid as and when installment payments are received, sellers will be able to defer their tax liability and take advantage of lower capital gain taxes. If taxes are required to be paid entirely in the year of the asset disposition, it can put pressure on the financial position of the seller.
By launching the latest structured solution, MetLife intends to guarantee the financial security of the sellers by providing them with a definite income stream and shielding the income from market volatilities. The latest announcement reflects MET’s efforts to expand its presence in the structured installment sale market and bolster its fixed-income securities suite, through which the multiline insurer distributes structured products.
MetLife, backed by its sound expertise and solid financial position, has been offering financial relief through structured solutions for more than 35 years. A structured installment sale generally adds an insurer, which boasts of solid financial strength ratings from leading credit rating agencies, thereby underlining its sound capability of undertaking future obligations of the buyer. The unit of MET, through which the Structured Installment Sales solution can be availed, is apt for serving the purpose of assuming obligations since it enjoys a strong credit rating of A+ assigned by A.M. Best (as mentioned in the company’s recent 10-K filing).
MetLife has frequently resorted to product launches to bolster its capabilities and strengthen its global presence. In February 2022, MET launched an innovative 360Health solution in Bangladesh with an aim to empower the country’s customers to effectively tackle critical illnesses. Last year witnessed the insurer introducing a pet insurance product for extending enhanced care for pets and addressing the financial stress of pet parents. MetLife has been pursuing buyouts and partnerships for unveiling cutting-edge products and services globally.
Shares of MetLife gained 7.4% in a year against the industry’s decline of 15.8%. MET currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the insurance space include Horace Mann Educators Corporation (HMN - Free Report) , Old Republic International Corporation (ORI - Free Report) and CNO Financial Group, Inc. (CNO - Free Report) . While Horace Mann sports a Zacks Rank #1 (Strong Buy), Old Republic and CNO Financial carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Horace Mann’s earnings surpassed estimates in each of the last four quarters, the average surprise being 22.80%. The Zacks Consensus Estimate for HMN’s 2022 earnings suggests an improvement of 1.1% from the year-ago reported figure, while the same for revenues suggests growth of 1%. The consensus mark for Horace Mann's 2022 earnings has moved north by 8.4% in the past 60 days.
The bottom line of Old Republic outpaced earnings estimates in three of the last four quarters and missed once, the average surprise being 38.74%. The Zacks Consensus Estimate for ORI’s 2022 earnings has moved north by 3.7% in the past 60 days. Old Republic has a VGM Score of B.
CNO Financial’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 25.48%. The Zacks Consensus Estimate for CNO’s 2022 earnings has moved north by 2.6% in the past 30 days. CNO Financial has a VGM Score of B.
Old Republic stock has gained 17.9% in a year. Meanwhile, shares of Horace Mann and CNO Financial have lost 5.2% and 10.3%, respectively, in the same time frame.
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MetLife's (MET) Structured Solution to Offer Financial Security
MetLife, Inc. (MET - Free Report) recently introduced a Structured Installment Sale solution, which can be utilized for the sale of properties qualified for the Installment Method under Internal Revenue Code Section 453. The solution can be availed across 49 states, Puerto Rico and Washington, D.C. via MET’s subsidiary, Metropolitan Tower Life Insurance Company.
If parties decide to pursue an installment sale for a property, they might prefer a structured installment sale owing to the numerous benefits. The concept of a structured installment sale basically entails distributing the entire sale proceeds into periodic payments instead of paying a one-time lump sum amount to the seller. As taxes will be paid as and when installment payments are received, sellers will be able to defer their tax liability and take advantage of lower capital gain taxes. If taxes are required to be paid entirely in the year of the asset disposition, it can put pressure on the financial position of the seller.
By launching the latest structured solution, MetLife intends to guarantee the financial security of the sellers by providing them with a definite income stream and shielding the income from market volatilities. The latest announcement reflects MET’s efforts to expand its presence in the structured installment sale market and bolster its fixed-income securities suite, through which the multiline insurer distributes structured products.
MetLife, backed by its sound expertise and solid financial position, has been offering financial relief through structured solutions for more than 35 years. A structured installment sale generally adds an insurer, which boasts of solid financial strength ratings from leading credit rating agencies, thereby underlining its sound capability of undertaking future obligations of the buyer. The unit of MET, through which the Structured Installment Sales solution can be availed, is apt for serving the purpose of assuming obligations since it enjoys a strong credit rating of A+ assigned by A.M. Best (as mentioned in the company’s recent 10-K filing).
MetLife has frequently resorted to product launches to bolster its capabilities and strengthen its global presence. In February 2022, MET launched an innovative 360Health solution in Bangladesh with an aim to empower the country’s customers to effectively tackle critical illnesses. Last year witnessed the insurer introducing a pet insurance product for extending enhanced care for pets and addressing the financial stress of pet parents. MetLife has been pursuing buyouts and partnerships for unveiling cutting-edge products and services globally.
Shares of MetLife gained 7.4% in a year against the industry’s decline of 15.8%. MET currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the insurance space include Horace Mann Educators Corporation (HMN - Free Report) , Old Republic International Corporation (ORI - Free Report) and CNO Financial Group, Inc. (CNO - Free Report) . While Horace Mann sports a Zacks Rank #1 (Strong Buy), Old Republic and CNO Financial carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Horace Mann’s earnings surpassed estimates in each of the last four quarters, the average surprise being 22.80%. The Zacks Consensus Estimate for HMN’s 2022 earnings suggests an improvement of 1.1% from the year-ago reported figure, while the same for revenues suggests growth of 1%. The consensus mark for Horace Mann's 2022 earnings has moved north by 8.4% in the past 60 days.
The bottom line of Old Republic outpaced earnings estimates in three of the last four quarters and missed once, the average surprise being 38.74%. The Zacks Consensus Estimate for ORI’s 2022 earnings has moved north by 3.7% in the past 60 days. Old Republic has a VGM Score of B.
CNO Financial’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 25.48%. The Zacks Consensus Estimate for CNO’s 2022 earnings has moved north by 2.6% in the past 30 days. CNO Financial has a VGM Score of B.
Old Republic stock has gained 17.9% in a year. Meanwhile, shares of Horace Mann and CNO Financial have lost 5.2% and 10.3%, respectively, in the same time frame.