M&A Acquisition of Alico by Metlife
Strategic Management Nicolas Lo Bianco
Table of content
I. MetLife & Alico insight ll. MetLife Environment & Organization Financial results Environment : Swot analysis / Benchmarking / Competitors Competitive advantages Metlife Business Model
lll. The strategy : Acquisition of ALICO by METLIFE Motivations Results Risks Similar competitor´s strategies
• It is an american insurance company operating in over 60 countries and has over 90 million customers. • MetLife activities : Life insurance / Dental / Disability / Auto&home. • It is a Leader in life insurance in the USA and also holds leading market positions in Japan, Latin America, South Pacific region, Europe and the Middle East. Its current Net Income is US$ 2.786 billion.
• Alico was a successful American insurance company that had over 19 000 000 clients and operated in 50 countries worldwide. • Alico activities were focused on life insurance and retirement services operation. • It had a net income of $176.9 million and high quality investment portfolio. The Company was ranked on the top 5 and was rated at AA.
Total Asset Total Liabilities Total Stockholder Equity
Dec 30, 2011 799,625,000 739,723,000 59,797,000 Dec 30, 2011 70,262,000 10,026,000 6,981,000 Dec 30, 2011 10,290,000 (22,235,000) 9,382,000 (2,585,000)
Total Revenue Operating Income or Loss Net Income
Total Cash Flow From Operating Activities Total Cash Flows From Investing Activities Total Cash Flows From Financing Activities Change In Cash and Cash Equivalents
BALANCE SHEET Dec 30, 2010 730,906,000 682,164,000 48,625,000 INCOME STATEMENT Dec 30, 2010 52,265,000 3,912,000 2,790,000 CASH FLOW Dec 30, 2010 7,996,000 (18,314,000) 13,381,000 2,934,000
Dec 30, 2009 539,314,000 506,193,000 33,121,000 Dec 30, 2009 40,657,000 (4,361,000) (2,246,000) Dec 30, 2009 3,803,000 (13,935,000) (4,103,000) (14,127,000)
Location of Factor Favorable Internal Strengths Strong brand name and good financial position Major player in insurance sector Strong distribution network Varied range of services and products Loyalty of customers Over 65 000 employees Opportunities Growth opportunities in emerging markets Demographic shift in US throwing up opportunities in the retirement market Current acquisitions likely to drive future growth Diversifying portfolios for customers TYPE OF FACTOR Unfavorable Weaknesses Weak international presence US subprime mortgage exposure Over-dependence on US Lacking in global recognition as compared to competitors
Threats Gloom in natural catastrophes forecast Consolidation in the US financial service industry US economic slowdown and weak financial markets Other competitors in the industry
Direct competitor comparison MET Market Cap: Employees: Qtrly Rev Growth: Revenue: Gross Margin: EBITDA: Operating Margin: Net Income : EPS: P/E : PEG (5 yr expected): P/S : 0.53 0.44 0.68 0.47 0.79 36.26B 67,000 -0.16 67.80B 0.27 8.85B 0.12 2.58B 2.45 13.55 0.53 ALLIANZ 57.48B 143,005 0.17 125.78B 0.18 13.28B 0.09 5.75B 1.26 10.08 0.18 AIG 48.47B 57,000 0.39 70.61B 0.25 24.79B 0.21 26.83B 14.53 2.26 0.42 PRU 24.14B 50,104 -0.12 50.60B 0.25 2.70B 0.05 1.18B 2.58 20.15 0.64 Industry 16.06B 8.56K 0.06 20.07B 0.23 1.35B 0.07 N/A 0.84 24.17 1.07
Diversified High Quality Portfolio
One of the most geographically diverse insurance company in the world
• Exceptional product and distribution diversity.
• Best risk-management culture in the business • One of the strongest brands in the industry : Most Admired&Trusted company in 2011 (CNN)
• High quality Management Information system.
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