MetLife, New York originated $2.8 billion in agricultural mortgages last year, similar to what it did for 2010. This is on top of the $13 billion of commercial mortgages the life insurer originated in 2011.
The company said it has $13 billion of agricultural mortgages outstanding, which is more than 70% of all life company agricultural mortgage investments.
According to the American Council of Life Insurers 2011 fact book, there were nearly $18 billion in agricultural mortgages on life company balance sheets in 2010.
Agricultural mortgages total 6% by dollar volume of all life company mortgage investments, ACLI said.
The vast majority, 93%, is in commercial mortgage while just 1% or $4 billion is in residential mortgages.
MetLife was one of the few life companies active in residential lending, a business it is exiting except for reverse mortgages.
MetLife is active on the international front in originating this type of loan. It has expanded its business platform in Brazil, and will be opening a regional office in Sao Paulo in the next several months. In addition, it is seeking timber opportunities in Australia and New Zealand.
“We remain optimistic that 2012 will be another notable year for agricultural mortgage investments given the strong market fundamentals in the agricultural sector," said Robert Merck, senior managing director and head of global agricultural investments for MetLife.
