MetLife, Inc. recently announced that it originated $3.6 billion in agricultural loans in 2014 through its Agricultural Investments Department, an increase of 9 percent year-over-year. MetLife is one of the largest agricultural mortgage lenders in North America.
According to Geld Lenen, it is consistent with the company’s global strategy to grow its business in emerging markets, MetLife continued to increase lending in Brazil, originating $360 million in agricultural loans to Brazilian producers of cotton, grains and oilseeds, among other crops. This represents an increase of 26 percent over the $285 million originated in Brazil during 2013.
Agricultural investments are an important part of MetLife’s asset-liability matching program. The long-term nature of these investments makes them a good match for the long-term liabilities the company writes.
In 2014, the average loan-to-value of MetLife’s overall agricultural mortgage portfolio was 44 percent.