MetLife, Inc., through its subsidiaries, provides life insurance, annuities, employee benefits, and asset management products in the United States, Japan, Latin America, Asia, Europe, and the Middle East. It operates in six segments: U.S.; Asia; Latin America; Europe, the Middle East, and Africa; MetLife Holdings; and Brighthouse Financial. The company offers life, dental, group short- and long-term disability, individual disability, accidental death and dismemberment, and critical illness insurance products; vision, and accident and health coverages, as well as prepaid legal plans; administrative services-only and private floating rate funding agreements; and account guaranteed, separate account guaranteed, and trust guaranteed interest contracts. It also provides pension risk transfers, institutional income annuities, torts and settlements, capital markets investment, and other products and services, including life insurance products and funding agreements for funding postretirement benefits, as well as company-, bank-, or trust-owned life insurance used to finance nonqualified benefit programs for executives. In addition, the company offers automobile, homeowners' and personal excess liability, and credit insurance, as well as small business owners property, liability, and business interruption insurance products. Further, it provides pension products; variable, universal, term, and whole life insurance products; and variable, fixed, and indexed-linked annuities. The company serves individuals and corporations, as well as other institutions and their employees through independent agents, property and casualty specialists, sales forces, sales teams and relationship managers, and other organizations, as well as through career agency, bancassurance, direct marketing, brokerage, worksite marketing, and other third-party distribution and e-commerce channels. MetLife, Inc. was founded in 1863 and is based in New York, New York.
Business Analysis of MetLife
The Insurance Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how MetLife compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by MetLife to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of MetLife with an interactive chart.
- Revenue Growth: MetLife reported a revenue growth of -9.3% year-on-year during 2016. Life Insurance Industry grew at -1.7% in the same period
- COGS share of Revenues: As a percentage of revenue, MetLife spent 76.2% of its total revenues on COGS. Life Insurance industry average (COGS share of revenue) in the same period was 71.2%
- R&D share of Revenues: MetLife R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: MetLife SG&A share of Revenues details are not available because either company does not share the data or we do not have it
- Inventory share of Revenues: MetLife Inventory share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Payable share of Revenues: As a percentage of revenue, MetLife invested 52.4% of its total revenues on Accounts Payable (A/P) Life Insurance industry average Accounts Payable investment in the same period was 22.3%
- Accounts Receivable share of Revenues: As a percentage of revenue, MetLife invested 41.1% of its total revenues on Accounts Receivable (A/R). Life Insurance industry average Accounts Receivable investment in the same period was 38.1%
- PP&E share of Revenues: MetLife PP&E share of Revenues details are not available because either company does not share the data or we do not have it
- Intangibles share of Revenues: As a percentage of revenue, MetLife invested 14.5% of its total revenues on Intangibles. Life Insurance industry average Intangibles investment in the same period was 7.6%
- Net Margins: MetLife Net Margins in the year 2016 were 1.3%. Life Insurance industry average Net Margins in the same period were 4.3%
Sector and Industry Association of MetLife
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
MetLife is associated with Financials Sector Group, Insurance Sector, and Life Insurance Industry.
Insurance sector is comprised of the following industries: Life Insurance; Property & Casualty Insurance; Surety & Title Insurance; Insurance Brokerage; Diversified Insurance. The definitions for each of the industries is as follows:
- Life Insurance industry includes companies engaged principally in life insurance.
- Property & Casualty Insurance industry includes companies engaged principally in accident, fire, automotive, marine, malpractice and other classes of non-life insurance.
- Surety & Title Insurance industry includes companies providing title & surety insurance.
- Insurance Brokerage industry includes insurance brokers and agencies.
- Diversified Insurance industry includes companies with life, health, property & casualty, and reinsurance interests, none of which predominates.
Industry Ranking of MetLife
With $63.5 billion revenues, MetLife ranked number 1 of all the companies in the US Life Insurance industry. There were a total of 14 public companies in the US Life Insurance industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Life Insurance industry by revenues during 2016 were:
- MetLife ($63.5 billion)
- Prudential Financial ($58.8 billion)
- Lincoln National ($13.3 billion)
- Reinsurance Group Of America ($11.5 billion)
- Voya Financial ($10.8 billion)
- Genworth Financial ($8.4 billion)
- Torchmark ($3.9 billion)
- American National Insurance ($3.2 billion)
- American Equity Investment Life ($2.2 billion)
- Primerica ($1.5 billion)
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.