MetLife (MET) Slumps Amid Efforts to Expand Emerging Market Presence (BBVA)
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MetLife (NYSE: MET) is looking to expand its Latin American presence, potentially making a large acquisition to do so.
According to reports, the insurance giant might place a bid to acquire AFP Provida SA from Banco Bilbao Vizcaya Argentaria SA (NYSE: BBVA). AFP Provida SA is one of Chile's largest private pension funds, currently boasting a market value of $2.4 billion.
BBVA disclosed discussions over the fund yesterday.
With low interest rates and slow growth in the U.S. weighing on results, MetLife is looking to diversify sources of fee income CEO Steven Kandarian has set a target of garnering about 20 percent of operating earnings from emerging markets by 2016 with a return on equity of 12 percent or more.
MetLife's last large acquisition was American Life Insurance Co, which it bought from AIG (NYSE: AIG) in 2010 for about $16 billion.
Shares of MetLife are down 1.2 percent late Wednesday, nearing session lows.
According to reports, the insurance giant might place a bid to acquire AFP Provida SA from Banco Bilbao Vizcaya Argentaria SA (NYSE: BBVA). AFP Provida SA is one of Chile's largest private pension funds, currently boasting a market value of $2.4 billion.
BBVA disclosed discussions over the fund yesterday.
With low interest rates and slow growth in the U.S. weighing on results, MetLife is looking to diversify sources of fee income CEO Steven Kandarian has set a target of garnering about 20 percent of operating earnings from emerging markets by 2016 with a return on equity of 12 percent or more.
MetLife's last large acquisition was American Life Insurance Co, which it bought from AIG (NYSE: AIG) in 2010 for about $16 billion.
Shares of MetLife are down 1.2 percent late Wednesday, nearing session lows.
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