NEW YORK (CNNMoney.com) - After reporting a solid fourth quarter, thanks in part to MetLife's $11.8 billion acquisition of Citigroup's Travelers Life and Annuity business last year, the nation's largest life insurer could be ready to tackle another buy.

Speaking at the company's fourth quarter earnings call with analysts Friday, MetLife (up $1.19 to $50.39, Research)'s president and chief operating officer C. Robert Henrickson -- who is slated to take over the role of chief executive next month when the current CEO Bob Benmosche retires -- said while there are "substantial opportunities" to grow on a generic basis, consolidation within the life insurance industry is likely to increase and MetLife is open to buying.

"There are opportunities for us in the individual and institutional businesses to look at blocks of business that are becoming more and more a hobby for competitors," he said.

Given the competitive nature of the insurance industry, companies such as Citigroup and, most recently JPMorgan Chase & Co., found it difficult to compete with pureplay insurance companies. Industry observers expect more and more companies to exit the insurance business in years to come as the so-called financial supermarket model loses its luster.

Henrickson said these competitors "can't make the investments they need to make," creating a buying opportunity for the company down the road.

"Even in slow-growth markets, we will continue to grow faster than the market," he said.

If MetLife's successful Travelers integration is any gauge then it seems the company has a solid record when it comes to acquisitions.

In the fourth quarter, net income for the insurance giant rose to $677 million, or 88 cents a share, compared with $511 million, or 68 cents a share, a year earlier.

Operating earnings solidly beat analysts expectation by three cents a share according to earnings tracker Thomson First Call, coming in at $799 million, or $1.04 a share. The company said its Travelers acquisition bolstered earnings in the quarter by adding to the company's retirement and savings net investment income and its asset base.

"MetLife has a very good track record for buying businesses and pieces of businesses and incorporating them efficiently," said Donald Light, senior analyst at Celent LLC. "Travelers is another success story."

Light said the company is likely in the market for another acquisition but will probably wait until the second half of the year in order to fully digest the Travelers buy as well as the change in management when Henrickson takes the helm from Benmosche.

Light said the company's growth in 2005 was strong due in large part to the acquisition. While he expects growth to continue in MetLife's core businesses, "it's going to be a challenge to have revenue and profit as good as 2005 without another acquisition."

Analysts expect 2006 to be a solid year of M&A activity within the insurance industry. This week alone, Protective Life (Research) bought JPMorgan Chase's (Research) insurance business while Berkshire Hathaway, the insurance and investment company controlled by billionaire Warren Buffett, agreed to buy privately-held Applied Underwriters.

Rob Haines, insurance analyst at CreditSights said the life insurance industry in particularly is so fragmented that opportunity abounds. He added that there is a correlation between the size of a company and its expense management in the life insurance industry, which may push smaller companies to put themselves up for sale.

"M&A is going to play out as a big theme in 2006," he said.

MetLife, along with competitor Prudential which reported fourth quarter earnings Wednesday, are often touted as the most likely to buy within the industry.

While Henrickson did leave the door open for future buys, he said the company sees solid growth in both its individual and institutional life businesses as well as strength in its international expansion.

Company executives said the company is in discussions with its Japanese individual annuities joint venture partner Mitsui Sumitomo to expand operations in Japan and the company also hopes to grow its Korean and UK operations as well in 2006.

"We see terrific opportunities there," Henrickson said.

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