MetLife (MET) is looking to build on its experience as a nonbank lender and may look at potential acquisitions of complementary businesses as part of broader efforts to increase its future profits and other financial metrics, one of its top executives said Thursday.
The insurer and assets management company outlined many of its goals over the next five years at its annual investor day, including double-digit growth in its adjusted earnings, up from a 6% per year goal in its prior five-year plan, and a rise in return on equity of 15% to 17%. MetLife has been a major player in private credit for more than a century and the sector will play a critical role for MetLife achieving those goals, Chief Financial Officer John McCallion said on Thursday.
"This is a really key differentiating platform for us that's in a great position to take advantage of the global shift and rise in nonbank lending," McCallion said. "We're a large, long-term, experienced lender here that drives excess spreads with low loss experience."
McCallion did not identify specific targets, but said MetLife has freed up capital internally and is in the process of deciding how to redeploy those funds where it likely will consider strategic acquisitions.
"We believe that's a core competitive advantage for us," he said.
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