Thread regarding MetLife Inc. layoffs

Direct Expense Ratio will be pressured because of the sale of P&C

Michel A. Khalaf -- President and Chief Executive Officer

Yeah, I'm not sure. Hi, Suneet, Michel. I'm not sure we provided a guide, but let me just remind of what we said on the outlook, which is that this year's expense ratio will be pressured because of the sale of P&C, which has a lower direct expense ratio and that we would expect to get back to at or below the 12.3 by 2022.

From https://www.fool.com/earnings/call-transcripts/2021/05/06/metlife-inc-met-q1-2021-earnings-call-transcript/

Discuss.

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Post ID: @OP+1aKbXzQe

8 replies (most recent on top)

pure and simple.
headcount imo
just waiting for the Return of the vaccinated
how will they differentiate between the vaccinated and the unvaccinated.

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Post ID: @7gpy+1aKbXzQe

Agree that some of it might be "stranded" costs, like when Met spawned Brighthouse.

But that typically means you have people that were partially supporting the business that was sold. Once it is sold, part of that person's job should also disappear.

Some of that might be happening. But pretty clearly, clear for management speak anyway, he said that the Direct Expense Ratio of the P&C business was lower than that for the corporation as a whole. That surprises me.

No matter how you look at it, the message is that the belt tightening will continue.

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Post ID: @3jvw+1aKbXzQe

The expense issue that he’s referencing is the same issue that happened after we sold off bright house. Each of the businesses in the US Will likely end up with an increase in allocated expenses until the company is able to right size the expenses again. The company was JUST starting to stabilize In This area but that whole cycle will likely now restart/has already started.

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Post ID: @3rii+1aKbXzQe

@FFS WTF: ha. But that's just analyst conference call speak. It sounds like road apples to most of us!

I think what he is saying is that the P&C business actually had a LOWER Direct Expense Ratio and so after selling it, the corporate average Direct Expense Ratio will pop back UP.

That leads to several questions, depending on who you are:

  1. For employees - How are you going to lower the direct expense ratio? Low raises, non-replaced attrition, lay-offs, off-shoring?
  2. For investors - If you, Michel, can lower the Direct Expense Ratio further, why didn't you do it last time? Were you sand bagging it?
  3. For P&C employees and stock holders: If P&C had a better than corporate average Direct Expense Ratio for a business that you would think would be underwriting and claims intensive (and thus require a higher direct expense ratio than say life, where deaths are relatively rare, at least compared to car accidents), then why exactly did we sell the business?
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Post ID: @2rrk+1aKbXzQe

The CEO can’t even speak proper English, FFS! WTF!

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Post ID: @2jsw+1aKbXzQe

Huh? They sell P&C (got billions for it) and as a result of the sale the geniuses expect a low expense ratio? They knew full well the expense ratio would be low and they have a plan to address it, but that’s not for the p-e-ons to know. It must have cost the company boatloads of $ to unload the business, ergo. It is disgraceful how the senile leadership team (STL), Board Members and Shareholders treat employees. Disposable.

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Post ID: @2whv+1aKbXzQe

Setting the stage for another 1.5% raise, despite the record year we will all hear about by year's end. But, in any event, don't forget to offer up all of your free ideas for Winning the Future.

Polish up those resumes, folks!

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Post ID: @kit+1aKbXzQe

Just read this myself...no raises? More layoffs? How will ML make up for this? Only time will tell,

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Post ID: @qze+1aKbXzQe

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