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MetLife (MET) Unit Hits Milestone in Agricultural Mortgage Loans

·3 min read

MetLife, Inc.’s MET institutional asset management business MetLife Investment Management (MIM) originated $6 billion in agricultural mortgage loans last year. This was a milestone for MIM as it beat the previous origination record by 20%.

This added to MIM’s year-end agricultural mortgage loan assets under management or AUM, leading to a total of $22.9 billion. This undoubtedly helped MIM establish itself as the largest, non-government sponsored source of agricultural mortgage capital for the sector. MIM provides public and private pension plans, insurance companies, endowments, funds and other institutional clients with bespoke investment and financing solutions.

Agricultural producers gained from robust financial performances and a low interest-rate environment in 2021.

MET left no stone unturned in lending support and feasible financial solutions to farmers and rural communities so that latter can continue providing sustainable products.

Riding on an experience of 150 years, MIM had $669 billion of total assets under management.

Last month, MIM announced long-term, first mortgage loans secured by approximately 832,000 acres of timberland and timber across the Southeastern United States. This deal was made to finance borrowers that provide lumber and agricultural products.

Shares of MetLife have gained 17.6% in a year against the industry’s decline of 4.5%. MET currently carries a Zacks Rank #3 (Hold). Its focus on streamlining its business, its strong international operations and a healthy balance sheet will drive long-term growth.

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Stocks to Consider

Some better-ranked stocks in the insurance space are Horace Mann Educators Corporation HMN, Old Republic International Corporation ORI and Berkshire Hathaway (BRK.B). While Horace Mann sports a Zacks Rank #1 (Strong Buy), Old Republic and Berkshire Hathaway 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 being 22.80%. The Zacks Consensus Estimate for HMN’s 2022 earnings suggests an improvement of 1.1%, while the same for revenues implies growth of 1% from the respective year-ago reported figures. The consensus mark for Horace Mann's 2022 earnings has moved 8.4% north in the past 60 days.

The bottom line of Old Republic outpaced estimates in three of the last four quarters and missed the mark once, the average surprise being 38.74%. The Zacks Consensus Estimate for ORI’s 2022 earnings has moved 3.7% north in the past 60 days. Old Republic has a Value Score of B.

Berkshire Hathaway’s earnings surpassed estimates in three of the trailing four quarters (missing the mark in one), the average surprise being 11.86%. The Zacks Consensus Estimate for BRK.B’s 2022 earnings suggests an improvement of 6.1% from the year-ago reported figure.

While Old Republic and Berkshire Hathaway’s stocks have gained 20.8% and 39%, respectively, in a year, shares of Horace Mann have lost 3.5%.

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MetLife, Inc. (MET) : Free Stock Analysis Report

Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report

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Horace Mann Educators Corporation (HMN) : Free Stock Analysis Report

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