MetLife (NYSE: MET) is one of the largest insurance and financial services companies in the U.S; the company collected $26.5 billion in premiums for 2009.^[1] It has a very diverse range of products and services, including many different kinds of insurance, savings plans, and retirement plans.

MetLife's main source of revenue comes from insurance premiums. The company takes the money paid by those who buy insurance policies and invests it in a number of different ways. If the return on investment (the "spread") plus the premiums is greater than the payout to policy holders, the company profits. This business model while common in the insurance industry is especially vulnerable to natural disasters and swings in the equity markets. The former in form of hurricanes, earthquakes and forest fires, can result in hundreds of millions to billions of dollars in losses in a single year. The company paid out $333 million in homeowners insurance in 2006 related to Hurricane Katrina. A poorly preforming market on the other hand can result in a loss of investment income which is often a crucial component of profitability.

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