MetLife, Inc. MET recently announced that MetLife Investment Management (“MIM”) has entered into a definitive agreement to acquire PineBridge Investments, a global asset manager with approximately $100 billion in assets under management. This deal includes $800 million in cash at closing, $200 million contingent upon meeting 2025 financial metrics, and $200 million tied to a multi-year earnout. PineBridge’s private equity funds group and its joint venture in China are excluded from this acquisition. This deal is expected to close in 2025, subject to regulatory approvals.

This move bodes well for MET as this acquisition aligns with its New Frontier strategy of accelerating asset management growth. The integration will enhance MIM’s competitiveness by leveraging PineBridge’s global footprint and investment expertise. Over half of the client assets acquired are owned by investors outside the United States, and one-third are owned by investors in Asia. This transaction is anticipated to be neutral to earnings per share in the first year and accretive thereafter, supported by potential expense synergies and a capital-light structure.

Upon completion, MIM’s total assets under management (AUM) are expected to surpass $700 billion, significantly enhancing its scale and broadening its global offerings. MIM’s AUM was $609.3 billion as of Sept. 30, 2024. The move will also expand MIM’s capabilities across public and private credit offerings, including collateralized loan obligations, multi-asset strategies, global equities, direct lending, and European real estate. These additions complement MIM’s existing strengths and are expected to drive steady fee income and deliver attractive financial returns.

Asset management companies face intense competition due to evolving client needs and increased regulations, pushing them to strengthen their positions through expansion. Moves like this are expected to enhance its product offerings and a attract large customer base.

MET’s Price Performance

MetLife’s shares have gained 14.4% in the past six months, outperforming 3.1% growth of the industry.

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MET’s Zacks Rank

MetLife currently has a Zacks Rank #4 (Sell).

Stocks to Consider

Some better-ranked stocks in the Finance space are BrightSphere Investment Group Inc. BSIG, Enact Holdings, Inc. ACT and CNO Financial Group, Inc. CNO. Each of these companies presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BrightSphere Investment’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 20.07%. The Zacks Consensus Estimate for BSIG’s 2024 earnings indicates a rise of 39.3%, while the consensus mark for revenues implies growth of 14.6% from the corresponding year-ago figures. The consensus mark for BSIG’s 2024 earnings has moved 3.3% north in the past 60 days.

The bottom line of Enact Holdings outpaced estimates in each of the last four quarters, the average surprise being 13%. The Zacks Consensus Estimate for ACT’s 2024 earnings indicates an improvement of 7.7% from the 2023 figure. The consensus mark for revenues implies growth of 6.5% from the 2023 figure. The consensus mark for ACT’s earnings has moved 6.4% north in the past 60 days. 

The bottom line of CNO Financial beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 24.5%. The Zacks Consensus Estimate for CNO’s 2024 earnings implies an improvement of 20.7%, while the consensus mark for revenues indicates a decline of 10.5% from the corresponding year-ago figures. The consensus mark for CNO’s 2024 earnings has moved 8.7% north in the past 30 days.

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