Analysis: MetLife faces "execution risks" in buying Alico

Although MetLife's strategy in buying American International Group's American Life Insurance was sound, according to The Economist, Moody's Investors Service responded by downgrading MetLife's outlook to "negative" based on "execution risks" and increased debt service. "Thanks to AIG's woes, MetLife has been able to pick up a solid, diverse franchise that would have taken many years to replicate organically," The Economist notes. "But in insurance, as in banking, most mergers end up flopping, says A.M. Best's Andrew Edelsberg."

Read more...