METMetLife, Inc.

MetLife insures lives and sells group benefits to employers — a business of very long liabilities.

Life insurance works differently from property: the obligation arises today while the payment falls due decades later. Throughout that time the collected premiums are invested, and income on the bond portfolio is a substantial part of profit. Interest rates therefore matter more to such an insurer than to most industries.

The main channel is group benefits through employers: life, disability and dental cover for staff. Such contracts are renegotiated annually and depend on employment, while providing scale and predictability.

Risks: a prolonged fall in rates where portfolio income fails to cover obligations; changes in mortality; and currency swings from large operations in Japan and Latin America. The company pays a dividend and buys back stock.