MetLife (MET) Rolls Out Annuity Offering to Aid Retirees

MetLife, Inc.
MET recently
teamed up with the renowned Massachusetts-based financial services
provider, Fidelity Investments, to devise a fixed immediate income
annuity and offer it through the latter's newly launched retirement
income solution, Guaranteed Income Direct. MET's shares gained 0.3%
on Feb 28.

The collaboration also involves
middleware provider Micruity, which leverages a single point of
service for hassle-free data sharing between insurers, asset
managers, recordkeepers and related stakeholders. This, in turn,
leads to the easing of administrative burden and an improved user
experience of retirement income products.

The new guaranteed income offering
of MetLife, named the MetLife Guaranteed Income Program, enables
defined contribution ("DC") plan participants to buy an immediate
income annuity from an insurer chosen by their plan sponsors or
employers, in this case, and subsequently, annuitize any proportion
of their savings. The funds, which will not be utilized for the
annuity purchase, stay within the plan.

The assurance of a guaranteed
stream of income may prove to be a blessing for retirees, who can
plan their everyday expenses, as well as prevent the fast depletion
of their savings. This, in turn, is expected to equip them to lead
a more financially secure future and infuse greater peace of
mind.

Annuitizing one's savings is a way
better option than receiving retirement savings in a lump sum as
the latter often has the risk of fast exhaustion of the money and
emergence of the need to finance a part of the retirement years.
According to a MetLife study, one in three retirees who took a lump
sum payment from their DC plan depleted the savings within an
average of five years.

Additionally, the passing of the
Setting Every Community Up for Retirement Enhancement Act in late
2019 eliminated the fiduciary obstacles encountered in providing
lifetime income solutions via the workplace. Hence, there remains
an increasing interest of plan participants to opt for these
products.

The latest move of expanding access
to immediate income annuities therefore can be termed as a time
opportune move on the part of MetLife. It may lead to increased
utilization of MetLife's retirement income offering, expand its
customer base and fetch higher adjusted premiums, fees and other
revenues to the Retirement and Income Solutions segment. Adjusted
premiums, fees and other revenues, excluding pension risk
transfers, of the unit surged 67.4% year over year in 2023. MetLife
boasts a longstanding history and exceptional capabilities in
offering retirement income solutions.

Shares of MetLife have gained 4.8%
year to date compared with the

industry's 4.7% growth. MET currently carries a Zacks Rank #3
(Hold).

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Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks in the
Multi line insurance space are
Horace Mann Educators Corporation
HMN,
Assurant, Inc.
AIZ and
The Hartford Financial Services Group, Inc.
HIG. While
Horace Mann sports a Zacks Rank #1 (Strong Buy), Assurant and
Hartford Financial currently carry a Zacks Rank #2 (Buy). You can
see

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The bottom line of Horace Mann
outpaced estimates in three of the last four quarters and matched
the mark once, the average surprise being 15.24%. The Zacks
Consensus Estimate for HMN's 2024 earnings is pegged at $3.15 per
share, which has more than doubled from the year-ago reported
figure. The consensus estimate for revenues indicates a 9.2% rise
from the prior-year reported figure. The consensus mark for HMN's
2024 earnings has moved 5% north in the past 30 days.

Assurant's bottom line outpaced
estimates in each of the trailing four quarters, the average
surprise being 42.15%. The Zacks Consensus Estimate for AIZ's 2024
earnings indicates 3.4% growth, while the consensus estimate for
revenues indicates a 4.1% rise from the respective prior-year
reported figures. The consensus mark for AIZ's 2024 earnings has
moved 6% north in the past 30 days.

The bottom line of Hartford
Financial outpaced the Zacks Consensus Estimate in three of the
trailing four quarters and matched the mark once, the average
surprise being 11.77%. The consensus estimate for HIG's 2024
earnings suggests a 12.1% improvement, while the consensus estimate
for revenues indicates a 9.4% rise from the respective prior-year
reported figures. The consensus mark for HIG's 2024 earnings has
moved 2.7% north in the past 30 days.

Shares of Horace Mann, Assurant and
Hartford Financial have gained 12.3%, 8.1% and 19%, respectively,
year to date.

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The Hartford Financial Services Group, Inc. (HIG): Free Stock
Analysis Report

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