MetLife unveils $3bn share repurchase to support new business growth
US insurer MetLife has unveiled a $3 billion share purchase plan to support its new business growth and M&As as well as boost its capital and liquidity buffers.
The company's board of directors have approved a new $3 billion authorisation to repurchase its common stock. MetLife has completed repurchases under its prior repurchase authorisation.
MetLife president and CEO Michel Khalaf said: “Our philosophy on capital management remains the same: Capital is precious and should be deployed to its best use.
“Despite a challenging 2020, we expect by year-end to have invested about $3 billion to support new business growth at attractive returns and payback periods, deployed nearly $1.7 billion to growth-oriented and accretive M&A, and returned at least $2.6 billion to shareholders through common stock dividends and repurchases while maintaining a liquidity buffer well in excess of the $3-4 billion target.
“This new authorization highlights our continuing confidence in our financial strength and flexibility.”
Metlife has recently signed a definitive agreement to sell its US property and casualty (P&C) business to a subsidiary of Zurich Insurance Group for $3.94 billion in cash.
