Sterne Agee Comments On MetLife's New CEO

In a report published by Sterne Agee, Metlife MET announced that current Chief Investment Officer, Steven Kandarian, 59, will succeed C. Robert Henrikson as CEO effective May 1, 2011 (and will take on the Chairman title at YE'11). Sterne Agee said that it expected MET's Board to announce the succession plans soon (though it might have made more sense ahead of AIG's [$37.03, N/R] recent divestiture of its stake in MET's stock), but believe some investors will be surprised by the quick transition. That said, with Mr. Henrikson retaining the Chairman role through YE'11, it expects a smooth transition. “Risks to our investment thesis and the achievement of our price target include, but are not limited to, a company's failure to achieve Sterne, Agee & Leach, Inc. earnings estimates and/or book value estimates; unforeseen macroeconomic and/or industry events that adversely affect asset values, interest rates, or foreign currency rates; changes in investor sentiment regarding the specific company or industry; the company's ability to recruit and retain competent personnel; and adverse market conditions. For a complete discussion of the risk factors that could affect the market price of a company's shares, refer to the most recent Form 10-Q or 10-K that a company has filed with the Securities Exchange Commission.” Metlife closed yesterday at $44.59.