|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||100.30 - 104.47|
|52 Week Range||74.74 - 105.36|
|PE Ratio (TTM)||14.06|
|Forward Dividend & Yield||1.48 (1.42%)|
|1y Target Est||N/A|
Insurance behemoth Allstate said today it has inked a title sponsorship agreement with Chicago-based RAM Racing, an endurance race production company headed by founder and CEO Steve Ginsburg. The new three-year partnership marks the first major longterm foray into endurance racing for Allstate (ALL), which has for a number of years been highly visible in college football. Terms of the RAM deal were not disclosed. The 10-year-old RAM Racing is best known as the creator and annual stager of the Hot Chocolate 15k and 5K races in 17 domestic markets. RAM Racing will extend its scope to include three Hot Chocolate foreign races in 2018 in Mexico City, and yet-to-be-determined markets in China and Australia.
The New York-based property casualty insurance company beat on both revenue and earnings. Now, as the company puts 2017 behind it, investors need to determine whether TRV stock becomes a worthwhile investment or remains a slow-growth prospect that investors should ignore. The beat on both earnings and revenue provides some relief to owners of TRV stock.
The division witnessed a rise in its total operating revenue from $263 million in the first nine months of 2016 to $351 million in the first nine months of 2017. The sources of the division’s operating earnings available to common shareholders consist of other business activities, incremental tax benefits or expenses, other net investment income, corporate initiatives and projects, interest expenses on debt, preferred stock dividends, and other sources. The contribution from other business activities rose from -$6 million in the first nine months of 2016 to $12 million in the first nine months of 2017.
The MetLife holdings business reported premiums of $3.1 billion in the first nine months of 2017 compared to $3.3 billion in the first nine months of 2016. The rise in the holdings division’s operating earnings was offset by expenses related to MetLife’s separation from Brighthouse Financial (BHF). Its peers (XLF) Reinsurance Group of America (RGA), CNO Financial Group (CNO), and Allstate Corporation (ALL) have forward annual dividend yields of 1.3%, 1.4%, and 1.5%, respectively.
The division’s total operating revenue comprises net investment income, premiums, policy fees, and other revenues. The EMEA division garnered premiums of $1.53 billion in the first nine months of 2017 compared to $1.51 billion in the first nine months of 2016. Positive momentum in most European markets positively impacted the EMEA division’s operating earnings in the first nine months of 2017 compared to the first nine months of 2016.
Unfavorable fluctuations in foreign exchange rates negatively affected the division’s operating earnings in the first nine months of 2017 compared to the first nine months of 2016 as the Mexican and Argentine pesos weakened against the US dollar. The Latin America division’s other revenues fell from $26 million in the first nine months of 2016 to $24 million in the first nine months of 2017. The division’s premiums revenue saw a marginal rise from $1.9 billion in the first nine months of 2016 to $2.0 billion in the first nine months of 2017. MetLife has a market cap of $54.6 billion.
The Asia division saw a fall in its other revenue from $45 million in the first nine months of 2016 to $32 million in the first nine months of 2017. For the last 12 months, MetLife has an enterprise value-to-revenue ratio of 1.06x. Its peers (XLF) Allstate Corporation (ALL), Reinsurance Group of America (RGA), and CNO Financial Group (CNO) have enterprise value-to-revenue ratios of 1.15x, 1.02x, and 1.68x, respectively.
MetLife’s (MET) US division posted total operating revenue of $24.2 billion in the first nine months of 2017 compared to $22.0 billion in the first nine months of 2016. Its operating revenue consists of premiums, net investment income, policy fees, and other revenues. A rise in the average premium per policy related to MetLife’s auto business compensated for a fall in its exposure, resulting in favorable momentum in its US division’s operating earnings in the first nine months of 2017 compared to the first nine months of 2016.
In its guidance call for 2018, MetLife (MET) stated that the operating earnings and PFO (premiums, fees, and other revenues) of its Latin America business are expected to witness a rise of 8%–9% annually (on a constant-currency basis) within a period of one to three years. MetLife’s EMEA (Europe, the Middle East, and Africa) division is expected to see a rise of 5%–6% in the current year because of its departure from the UK retirement market. The baseline operating earnings of MetLife’s EMEA division are expected to experience a rise of 8%–9% in the current year.
MetLife’s (MET) property and casualty (or P&C) business is expected to show an upward trend in 2018. Over the last 12 months, the property and casualty business’s combined ratio stood at 100%. In the current year, MET’s management has stated that the sales in its Asia business are expected to rise at a rate of 5%–6%.
MetLife (MET) has made an attempt to streamline its customer experience by announcing two InsurTech investment programs. The names of these programs are MetLife Digital Accelerator and MetLife Digital Ventures. According to the company’s management, globalization, increasing momentum in technology, and shifting consumer preferences toward the digital world are gaining momentum, in turn affecting performances across all industries.
MetLife’s (MET) total revenue stood at $46.3 billion in the first nine months of 2017 compared to $47.9 billion in the first nine months of 2016. In 2016, MetLife saw a gain related to its US retail advisor force divestiture. MetLife incurred total expenses of $43.8 billion in the first nine months of 2017 compared to $42.4 billion in the first nine months of 2016.
Zacks.com highlights: Reinsurance Group of America, SVB Financial Group, D.R. Horton and Allstate
The US Senate has approved cutting tax rate from 35% to 21%, which could present windfall gains to corporates and long-term adjustments in operating flow generation. Whereas the tax break will likely be profitable for equity investors such as Berkshire Hathaway (BRK.B), companies engaged in US exports have weakened due to growing expectations of a fiscal deficit and the domestic manufacturing sector. Berkshire is expected to benefit from lower taxes on its holdings.
This could indicate that investors who seek to profit from falling equity prices are not currently targeting ALL. Over the last month, growth of ETFs holding ALL is favorable, with net inflows of $18.06 billion.
We have zeroed in on three bullish stocks to leverage investors' portfolio with a suggestion to avert AXIS Capital (AXS) at present.
Allstate CEO Thomas Wilson discusses how the company is looking to insure people who rideshare and are passengers in driverless vehicles, at the Consumer Electronics Show.