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þ
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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13-4075851
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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200 Park Avenue, New York, N.Y.
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10166-0188
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(Address of principal
executive offices)
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(Zip Code)
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Title of each class
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Name of each exchange on which registered
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Common Stock, par value $0.01
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New York Stock Exchange
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Floating Rate Non-Cumulative Preferred Stock, Series A, par value $0.01
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New York Stock Exchange
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6.50% Non-Cumulative Preferred Stock, Series B, par value $0.01
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New York Stock Exchange
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Common Equity Units
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New York Stock Exchange
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5.875% Senior Notes
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New York Stock Exchange
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5.375% Senior Notes
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Irish Stock Exchange
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5.25% Senior Notes
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Irish Stock Exchange
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Large accelerated filer
þ
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Accelerated filer
o
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Non-accelerated filer
¨
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Page
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Part I
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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Part II
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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Part III
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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Part IV
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Item 15.
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Page
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Refocus the U.S. businesses
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–
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Shift product mix away from capital intensive products
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–
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Invest in growth initiatives for the voluntary/worksite, accident & health, and direct channels
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–
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Drive margin improvement
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Build the Global Employee Benefits business
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–
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Accelerate our local employee benefits businesses in key markets outside the United States
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–
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Grow our global benefits businesses through multinational and expatriate solutions
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Grow emerging markets presence
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–
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Accelerate earnings in emerging markets in which we already have a strong presence
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–
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Seek opportunistic mergers and acquisitions to complement our organic growth
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Drive toward customer centricity and a global brand
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–
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Institutionalize customer centric actions and culture at MetLife
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–
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Grow consideration and preference for MetLife’s brand in key markets
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•
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Employer sponsored captive programs: through these programs, employers buy a group life insurance policy with the condition that a portion of the risk is reinsured back to a captive insurer sponsored by the client.
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•
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Risk-sharing agreements: through these programs, clients require that we reinsure a portion of the risk back to third parties, such as minority-owned reinsurers.
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•
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Multinational pooling: through these agreements, employers buy many group insurance policies which are aggregated in a single insurer via reinsurance.
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•
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licensing companies and agents to transact business;
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•
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calculating the value of assets to determine compliance with statutory requirements;
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•
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mandating certain insurance benefits;
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•
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regulating certain premium rates;
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•
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reviewing and approving policy forms;
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•
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regulating unfair trade and claims practices, including through the imposition of restrictions on marketing and sales practices, distribution arrangements and payment of inducements, and identifying and paying to the states benefits and other property that is not claimed by the owners;
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•
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regulating advertising;
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•
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protecting privacy;
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•
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establishing statutory capital and reserve requirements and solvency standards;
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•
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specifying the conditions under which a ceding company can take credit for reinsurance in its statutory financial statements (i.e., reduce its reserves by the amount of reserves ceded to a reinsurer);
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•
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fixing maximum interest rates on insurance policy loans and minimum rates for guaranteed crediting rates on life insurance policies and annuity contracts;
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•
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adopting and enforcing suitability standards with respect to the sale of annuities and other insurance products;
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•
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approving changes in control of insurance companies;
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•
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restricting the payment of dividends and other transactions between affiliates; and
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•
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regulating the types, amounts and valuation of investments.
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(1)
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A.M. Best financial strength ratings range from “A++ (superior)” to “S (Suspended).” A rating of “A+” is the second highest of sixteen rating categories.
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(2)
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Fitch insurer financial strength ratings range from “AAA (exceptionally strong)” to “C (ceased or interrupted payments imminent).” A “+” or “-” may be appended to ratings from “AA” to “CCC” to indicate relative position within a category. A rating of “AA-” is the fourth highest of nineteen rating categories.
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(3)
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Moody’s insurance financial strength ratings range from “Aaa (exceptional)” to “C (extremely poor).” A numeric modifier may be appended to ratings from “Aa” to “Caa” to indicate relative position within a category, with 1 being the highest and 3 being the lowest. A rating of “Aa3” is the fourth highest of twenty-one rating categories.
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(4)
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S&P long-term insurer financial strength ratings range from “AAA (extremely strong)” to “R (under regulatory supervision).” A “+” or “-” may be appended to ratings from “AA” to “CCC” to indicate relative position within a category. A rating of “AA-” is the fourth highest of twenty-two rating categories.
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Name
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Age
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Position with MetLife and Business Experience
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Steven A. Kandarian
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61
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•
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Chairman of the Board of MetLife, Inc. (January 2012-present) (Director of MetLife, Inc. since 2011)
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•
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President and Chief Executive Officer (May 2011-present) of MetLife, Inc.
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•
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Executive Vice President and Chief Investment Officer of MetLife, Inc. (April 2005-April 2011)
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Ricardo A. Anzaldua
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60
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•
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Executive Vice President and General Counsel of MetLife, Inc. (December 2012-present)
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•
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The Hartford Financial Services Group, Inc., an insurance and financial services company (February 2007-December 2012)
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• Associate general counsel and senior vice president, director of commercial and consumer markets law (October 2010-December 2012)
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• Associate general counsel and senior vice president, director of corporate law (February 2007-October 2010); corporate secretary (February 2008-October 2010)
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Steven J. Goulart
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55
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•
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Executive Vice President and Chief Investment Officer of MetLife, Inc. (May 2011-present)
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•
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Head of the Portfolio Management Unit as Senior Managing Director of MLIC (January 2011-April 2011)
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•
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Senior Vice President and Treasurer, MetLife, Inc. (July 2009-April 2011)
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•
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Head of the Mergers & Acquisitions Unit as Senior Vice President of MLIC (November 2006-July 2009)
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John C.R. Hele
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55
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•
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Executive Vice President and Chief Financial Officer of MetLife, Inc. (September 2012-present)
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•
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Executive vice president, chief financial officer and treasurer, Arch Capital Group Ltd., an insurance and reinsurance company (April 2009-August 2012)
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•
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Chief financial officer, ING Group, N.V., a financial services company (April 2007-March 2009)
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Frans Hijkoop
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53
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•
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Executive Vice President and Chief Human Resources Officer of MetLife, Inc. (August 2011-present)
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•
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Chief personnel officer and senior vice president of human resources, American Foods division of PepsiCo Inc., a food and beverage company (January 2008-August 2011)
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•
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Chief personnel officer and senior vice president of human resources, PepsiCo International, a unit of PepsiCo Inc. (February 2007-January 2008)
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Beth M. Hirschhorn
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49
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•
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Executive Vice President, Global Brand and Marketing of MetLife, Inc. (July 2013-present)
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•
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Executive Vice President, Global Brand, Marketing and Communications of MetLife, Inc. (November 2011-June 2013)
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•
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Head of Global Brand and Marketing Services, as Senior Vice President of MLIC (November 2006-October 2011)
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Michel Khalaf
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50
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•
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President, EMEA of MetLife, Inc. (November 2011-present)
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•
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Executive Vice President of MLIC (January 2011-November 2011)
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•
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Regional President, Middle East, Africa and South Asia, Alico (November 2008-November 2011) (Mr. Khalaf joined MetLife as a result of the ALICO Acquisition)
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Martin Lippert
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54
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•
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Executive Vice President and Head of Global Technology and Operations of MetLife, Inc. (November 2011-present)
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•
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Executive Vice President and Head of Global Technology of MetLife, Inc. (September 2011-November 2011)
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•
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Chief operations and technology officer, Citigroup, a financial services company (July 2008-March 2009)
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Maria R. Morris
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51
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•
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Executive Vice President and Head of Global Employee Benefits of MetLife, Inc. (November 2011-present)
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•
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Executive Vice President, Global Operations, Integration of MetLife, Inc. (September 2011-November 2011)
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•
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Executive Vice President, Technology and Operations of MetLife, Inc. (January 2008-September 2011)
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Christopher G. Townsend
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45
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•
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President, Asia of MetLife, Inc. (August 2012-present)
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•
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Chief executive officer of the Asia Pacific region, Chartis, a unit of AIG, an insurance and financial services company (January 2010-April 2012)
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•
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Chief executive officer, Chartis Australasia (February 2007-January 2010)
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William J. Wheeler
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52
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•
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President, Americas of MetLife, Inc. (November 2011-present)
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•
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Executive Vice President and Chief Financial Officer of MetLife, Inc. (December 2003-November 2011)
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•
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reducing new sales of insurance products, annuities and other investment products;
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•
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adversely affecting our relationships with our sales force and independent sales intermediaries;
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•
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materially increasing the number or amount of policy surrenders and withdrawals by contractholders and policyholders;
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•
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requiring us to post additional collateral under certain of our financing and derivative transactions;
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•
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requiring us to reduce prices for many of our products and services to remain competitive; and
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•
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adversely affecting our ability to obtain reinsurance at reasonable prices or at all.
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•
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Loss of key personnel or higher than expected employee attrition rates could adversely affect the performance of the acquired business and our ability to integrate it successfully.
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•
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Customers of the acquired business may reduce, delay or defer decisions concerning their use of its products and services as a result of the acquisition or uncertainty related to the consummation of the acquisition, including, for example, potential unfamiliarity with the MetLife brand in regions where we did not have a market presence prior to the acquisition.
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•
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If the acquired business relies upon independent distributors to distribute its products, these distributors may not continue to generate the same volume of business for us after the acquisition. Independent distributors may reexamine the scope of their relationship with the acquired business or us as a result of the acquisition and decide to curtail or eliminate distribution of our products.
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•
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Integrating acquired operations with our existing operations may require us to coordinate geographically separated organizations, address possible differences in corporate culture and management philosophies, merge financial processes and risk and compliance procedures, combine separate information technology platforms and integrate operations that were previously closely tied to the former parent of the acquired business or other service providers.
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•
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In cases where we or an acquired business operates in certain markets through joint ventures, the acquisition may affect the continued success and prospects of the joint venture. Our ability to exercise management control or influence over these joint venture operations and our investment in them will depend on the continued cooperation between the joint venture participants and on the terms of the joint venture agreements, which allocate control among the joint venture participants. We may face financial or other exposure in the event that any of these joint venture partners fail to meet their obligations under the joint venture, encounter financial difficulty or elect to alter, modify or terminate the relationship.
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•
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We may incur significant costs in connection with any acquisition and the related integration. The costs and liabilities actually incurred in connection with an acquisition and subsequent integration process may exceed those anticipated.
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•
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an election or removal of directors in which a stockholder has properly nominated one or more candidates in opposition to a nominee or nominees of MetLife, Inc.’s Board of Directors or a vote on a stockholder’s proposal to oppose a Board nominee for director, remove a director for cause or fill a vacancy caused by the removal of a director by stockholders, subject to certain conditions;
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•
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a merger or consolidation, a sale, lease or exchange of all or substantially all of the assets, or a recapitalization or dissolution, of MetLife, Inc., in each case requiring a vote of stockholders under applicable Delaware law;
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•
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any transaction that would result in an exchange or conversion of shares of common stock held by the Trust for cash, securities or other property; and
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•
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any proposal requiring MetLife, Inc.’s Board of Directors to amend or redeem the rights under MetLife, Inc.’s stockholder rights plan, other than a proposal with respect to which we have received advice of nationally-recognized legal counsel to the effect that the proposal is not a proper subject for stockholder action under Delaware law. MetLife, Inc. does not currently have a stockholder rights plan.
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•
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applicable state insurance laws and regulations may delay or impede a business combination involving us by prohibiting an entity from acquiring control (generally presumed to exist at direct or indirect ownership of 10% or more of voting stock) of an insurance company domiciled in the United States without the prior approval of the domestic insurance regulator. Many foreign jurisdictions in which we operate have similar regulatory approval requirements.
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•
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Dodd-Frank provisions that could restrict or impede consolidations, mergers and acquisitions by systemically significant firms, which could apply to us if we are designated as a non-bank SIFI. See “Business — U.S. Regulation — Potential Regulation as a Non-Bank SIFI — Enhanced Prudential Standards for Non-Bank SIFIs.”
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•
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Provisions of the Investment Company Act that require approval by the contract owners of our variable contracts in order to effectuate a change of control of any affiliated investment adviser to a mutual fund underlying our variable contracts.
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•
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FINRA approval requirements for a change of control of any FINRA registered broker-dealer that is a direct or indirect subsidiary of MetLife, Inc.
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•
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Provisions of the Delaware General Corporation Law may affect the ability of an “interested stockholder” (the owner of 15% or more of the outstanding voting stock of a corporation) to engage in certain business combinations for a period of three years following the time that the stockholder becomes an “interested stockholder.”
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2013
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||||||||||||||
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1st Quarter
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2nd Quarter
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3rd Quarter
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4th Quarter
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||||||||
Common Stock Price
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||||||||
High
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$
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40.20
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$
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46.10
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$
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51.47
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$
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54.02
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Low
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$
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34.64
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$
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35.53
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$
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45.85
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$
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46.38
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2012
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||||||||||||||
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1st Quarter
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2nd Quarter
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3rd Quarter
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4th Quarter
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||||||||
Common Stock Price
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|
|
|
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||||||||
High
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$
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39.46
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|
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$
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38.00
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|
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$
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36.25
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|
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$
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37.11
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Low
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$
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32.04
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$
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27.82
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$
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28.64
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$
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30.91
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Dividend
|
||||||
Declaration Date
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Record Date
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Payment Date
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Per Share
|
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Aggregate
|
||||
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(In millions)
|
||||
October 22, 2013 (1)
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November 8, 2013
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December 13, 2013
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$
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0.275
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$
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311
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June 25, 2013 (1)
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August 9, 2013
|
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September 13, 2013
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$
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0.275
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|
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$
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303
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April 23, 2013 (1)
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May 9, 2013
|
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June 13, 2013
|
|
$
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0.275
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|
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$
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302
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January 4, 2013 (1)
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February 6, 2013
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March 13, 2013
|
|
$
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0.185
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|
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$
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203
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|
|
|
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|
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$
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1,119
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||||
October 23, 2012 (2)
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November 9, 2012
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December 14, 2012
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$
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0.740
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|
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$
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811
|
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(1)
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Quarterly dividend.
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(2)
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Annual dividend.
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Period
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(a) Total Number of Shares Purchased (1)
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(b) Average Price Paid per Share
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(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
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(d) Maximum Number(or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2)
|
||||||
October 1 - October 31, 2013
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4,900
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$
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49.40
|
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—
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$
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1,260,735,127
|
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November 1 - November 30, 2013
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—
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$
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—
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—
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$
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1,260,735,127
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December 1 - December 31, 2013
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30
|
|
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$
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51.27
|
|
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—
|
|
|
$
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1,260,735,127
|
|
(1)
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During the periods October 1 through October 31,
2013
and December 1 through December 31,
2013
, separate account and other affiliates of MetLife, Inc. purchased 4,900 shares and 30 shares, respectively, of common stock on the open market in nondiscretionary transactions to rebalance index funds. Except as disclosed above, there were no shares of common stock which were repurchased by the Company.
|
(2)
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At December 31,
2013
, MetLife, Inc. had
$1.3 billion
remaining under its common stock repurchase program authorizations. In April 2008, MetLife, Inc.’s Board of Directors authorized an additional $1.0 billion common stock repurchase program, which will begin after the completion of the January 2008 $1.0 billion common stock repurchase program, of which $261 million remained outstanding at December 31, 2013. Under these authorizations, MetLife, Inc. may purchase its common stock from the MetLife Policyholder Trust, in the open market (including pursuant to the terms of a pre-set trading plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934) and in privately negotiated transactions. Any future common stock repurchases will be dependent upon several factors, including our capital position, liquidity, financial strength and credit ratings, general market conditions, the market price of MetLife, Inc.’s common stock compared to management’s assessment of the stock’s underlying value and applicable regulatory approvals, as well as other legal and accounting factors. See “Risk Factors — Capital-Related Risks — We Have Been, and May Continue to be, Prevented from Repurchasing Our Stock and Paying Dividends at the Level We Wish as a Result of Regulatory Restrictions and Restrictions Under the Terms of Certain of Our Securities” and Note
16
of the Notes to the Consolidated Financial Statements.
|
|
Years Ended December 31,
|
||||||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
||||||||||
|
(In millions, except per share data)
|
||||||||||||||||||
Statement of Operations Data (1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Premiums
|
$
|
37,674
|
|
|
$
|
37,975
|
|
|
$
|
36,361
|
|
|
$
|
27,071
|
|
|
$
|
26,157
|
|
Universal life and investment-type product policy fees
|
9,451
|
|
|
8,556
|
|
|
7,806
|
|
|
6,028
|
|
|
5,197
|
|
|||||
Net investment income
|
22,232
|
|
|
21,984
|
|
|
19,585
|
|
|
17,493
|
|
|
14,726
|
|
|||||
Other revenues
|
1,920
|
|
|
1,906
|
|
|
2,532
|
|
|
2,328
|
|
|
2,329
|
|
|||||
Net investment gains (losses)
|
161
|
|
|
(352
|
)
|
|
(867
|
)
|
|
(408
|
)
|
|
(2,901
|
)
|
|||||
Net derivative gains (losses)
|
(3,239
|
)
|
|
(1,919
|
)
|
|
4,824
|
|
|
(265
|
)
|
|
(4,866
|
)
|
|||||
Total revenues
|
68,199
|
|
|
68,150
|
|
|
70,241
|
|
|
52,247
|
|
|
40,642
|
|
|||||
Expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder benefits and claims
|
38,107
|
|
|
37,987
|
|
|
35,471
|
|
|
29,187
|
|
|
28,005
|
|
|||||
Interest credited to policyholder account balances
|
8,179
|
|
|
7,729
|
|
|
5,603
|
|
|
4,919
|
|
|
4,845
|
|
|||||
Policyholder dividends
|
1,259
|
|
|
1,369
|
|
|
1,446
|
|
|
1,485
|
|
|
1,649
|
|
|||||
Goodwill impairment
|
—
|
|
|
1,868
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other expenses
|
16,602
|
|
|
17,755
|
|
|
18,537
|
|
|
12,927
|
|
|
10,761
|
|
|||||
Total expenses
|
64,147
|
|
|
66,708
|
|
|
61,057
|
|
|
48,518
|
|
|
45,260
|
|
|||||
Income (loss) from continuing operations before provision for income tax
|
4,052
|
|
|
1,442
|
|
|
9,184
|
|
|
3,729
|
|
|
(4,618
|
)
|
|||||
Provision for income tax expense (benefit)
|
661
|
|
|
128
|
|
|
2,793
|
|
|
1,110
|
|
|
(2,107
|
)
|
|||||
Income (loss) from continuing operations, net of income tax
|
3,391
|
|
|
1,314
|
|
|
6,391
|
|
|
2,619
|
|
|
(2,511
|
)
|
|||||
Income (loss) from discontinued operations, net of income tax
|
2
|
|
|
48
|
|
|
24
|
|
|
44
|
|
|
64
|
|
|||||
Net income (loss)
|
3,393
|
|
|
1,362
|
|
|
6,415
|
|
|
2,663
|
|
|
(2,447
|
)
|
|||||
Less: Net income (loss) attributable to noncontrolling interests
|
25
|
|
|
38
|
|
|
(8
|
)
|
|
(4
|
)
|
|
(36
|
)
|
|||||
Net income (loss) attributable to MetLife, Inc.
|
3,368
|
|
|
1,324
|
|
|
6,423
|
|
|
2,667
|
|
|
(2,411
|
)
|
|||||
Less: Preferred stock dividends
|
122
|
|
|
122
|
|
|
122
|
|
|
122
|
|
|
122
|
|
|||||
Preferred stock redemption premium
|
—
|
|
|
—
|
|
|
146
|
|
|
—
|
|
|
—
|
|
|||||
Net income (loss) available to MetLife, Inc.’s common shareholders
|
$
|
3,246
|
|
|
$
|
1,202
|
|
|
$
|
6,155
|
|
|
$
|
2,545
|
|
|
$
|
(2,533
|
)
|
EPS Data (1), (2)
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations available to MetLife, Inc.’s common shareholders per common share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
2.94
|
|
|
$
|
1.08
|
|
|
$
|
5.79
|
|
|
$
|
2.83
|
|
|
$
|
(3.17
|
)
|
Diluted
|
$
|
2.91
|
|
|
$
|
1.08
|
|
|
$
|
5.74
|
|
|
$
|
2.81
|
|
|
$
|
(3.17
|
)
|
Income (loss) from discontinued operations per common share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
—
|
|
|
$
|
0.04
|
|
|
$
|
0.02
|
|
|
$
|
0.05
|
|
|
$
|
0.08
|
|
Diluted
|
$
|
—
|
|
|
$
|
0.04
|
|
|
$
|
0.02
|
|
|
$
|
0.05
|
|
|
$
|
0.08
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders per common share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
2.94
|
|
|
$
|
1.12
|
|
|
$
|
5.81
|
|
|
$
|
2.88
|
|
|
$
|
(3.09
|
)
|
Diluted
|
$
|
2.91
|
|
|
$
|
1.12
|
|
|
$
|
5.76
|
|
|
$
|
2.86
|
|
|
$
|
(3.09
|
)
|
Cash dividends declared per common share
|
$
|
1.01
|
|
|
$
|
0.74
|
|
|
$
|
0.74
|
|
|
$
|
0.74
|
|
|
$
|
0.74
|
|
|
December 31,
|
||||||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Balance Sheet Data (1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Separate account assets (3)
|
$
|
317,201
|
|
|
$
|
235,393
|
|
|
$
|
203,023
|
|
|
$
|
183,138
|
|
|
$
|
148,854
|
|
Total assets (3)
|
$
|
885,296
|
|
|
$
|
836,781
|
|
|
$
|
796,226
|
|
|
$
|
728,249
|
|
|
$
|
537,531
|
|
Policyholder liabilities and other policy-related balances (3), (4)
|
$
|
418,487
|
|
|
$
|
438,191
|
|
|
$
|
421,267
|
|
|
$
|
399,135
|
|
|
$
|
281,495
|
|
Short-term debt
|
$
|
175
|
|
|
$
|
100
|
|
|
$
|
686
|
|
|
$
|
306
|
|
|
$
|
912
|
|
Long-term debt (3)
|
$
|
18,653
|
|
|
$
|
19,062
|
|
|
$
|
23,692
|
|
|
$
|
27,586
|
|
|
$
|
13,220
|
|
Collateral financing arrangements
|
$
|
4,196
|
|
|
$
|
4,196
|
|
|
$
|
4,647
|
|
|
$
|
5,297
|
|
|
$
|
5,297
|
|
Junior subordinated debt securities
|
$
|
3,193
|
|
|
$
|
3,192
|
|
|
$
|
3,192
|
|
|
$
|
3,191
|
|
|
$
|
3,191
|
|
Separate account liabilities (3)
|
$
|
317,201
|
|
|
$
|
235,393
|
|
|
$
|
203,023
|
|
|
$
|
183,138
|
|
|
$
|
148,854
|
|
Accumulated other comprehensive income (loss)
|
$
|
5,104
|
|
|
$
|
11,397
|
|
|
$
|
6,083
|
|
|
$
|
1,145
|
|
|
$
|
(3,049
|
)
|
Total MetLife, Inc.’s stockholders’ equity
|
$
|
61,553
|
|
|
$
|
64,453
|
|
|
$
|
57,519
|
|
|
$
|
46,853
|
|
|
$
|
31,336
|
|
Noncontrolling interests
|
$
|
543
|
|
|
$
|
384
|
|
|
$
|
370
|
|
|
$
|
365
|
|
|
$
|
371
|
|
|
Years Ended December 31,
|
|||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|||||
Other Data (1), (5)
|
|
|
|
|
|
|
|
|
|
|||||
Return on MetLife, Inc.’s common equity
|
5.4
|
%
|
|
2.0
|
%
|
|
12.2
|
%
|
|
6.9
|
%
|
|
(9.9
|
)%
|
Return on MetLife, Inc.’s common equity, excluding accumulated other comprehensive income (loss)
|
6.2
|
%
|
|
2.4
|
%
|
|
13.2
|
%
|
|
7.0
|
%
|
|
(7.3
|
)%
|
(1)
|
On November 1, 2010, MetLife, Inc. acquired ALICO. Results of such acquisition are reflected in the selected financial data since the acquisition date. See Note
3
of the Notes to the Consolidated Financial Statements.
|
(2)
|
For the years ended December 31,
2012
and
2010
all shares related to the assumed issuance of shares in settlement of the applicable purchase contracts have been excluded from the calculation of diluted earnings per common share, as these assumed shares are anti-dilutive. For the year ended December 31, 2009, shares related to the assumed exercise or issuance of stock-based awards have been excluded from the calculation of diluted earnings per common share, as these assumed shares would be anti-dilutive.
|
(3)
|
Amounts relating to variable interest entities are as follows at:
|
|
December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
General account assets
|
$
|
7,525
|
|
|
$
|
6,692
|
|
|
$
|
7,273
|
|
Separate account assets
|
$
|
1,033
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Policyholder liabilities and other policy-related balances
|
$
|
695
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Long-term debt
|
$
|
1,868
|
|
|
$
|
2,527
|
|
|
$
|
3,068
|
|
Separate account liabilities
|
$
|
1,033
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(4)
|
Policyholder liabilities and other policy-related balances include future policy benefits, policyholder account balances, other policy-related balances, policyholder dividends payable and the policyholder dividend obligation.
|
(5)
|
Return on MetLife, Inc.’s common equity is defined as net income (loss) available to MetLife, Inc.’s common shareholders divided by MetLife, Inc.’s average common stockholders’ equity.
|
|
Page
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Income (loss) from continuing operations, net of income tax
|
$
|
3,391
|
|
|
$
|
1,314
|
|
|
$
|
6,391
|
|
Less: Net investment gains (losses)
|
161
|
|
|
(352
|
)
|
|
(867
|
)
|
|||
Less: Net derivative gains (losses)
|
(3,239
|
)
|
|
(1,919
|
)
|
|
4,824
|
|
|||
Less: Goodwill impairment
|
—
|
|
|
(1,868
|
)
|
|
—
|
|
|||
Less: Other adjustments to continuing operations (1)
|
(1,638
|
)
|
|
(2,550
|
)
|
|
(1,451
|
)
|
|||
Less: Provision for income tax (expense) benefit
|
1,698
|
|
|
2,195
|
|
|
(914
|
)
|
|||
Operating earnings
|
6,409
|
|
|
5,808
|
|
|
4,799
|
|
|||
Less: Preferred stock dividends
|
122
|
|
|
122
|
|
|
122
|
|
|||
Operating earnings available to common shareholders
|
$
|
6,287
|
|
|
$
|
5,686
|
|
|
$
|
4,677
|
|
(1)
|
See definitions of operating revenues and operating expenses under “— Non-GAAP and Other Financial Disclosures” for the components of such adjustments.
|
•
|
Growth in premiums, fees and other revenues driven by:
|
-
|
Accelerated growth in Group, Voluntary & Worksite Benefits;
|
-
|
Increased fee revenue reflecting the benefit of higher equity markets on our separate account balances; and
|
-
|
Increases in our businesses outside of the U.S., notably accident & health, from continuing organic growth throughout our various geographic regions and leveraging of our multichannel distribution network.
|
•
|
Expanding our presence in emerging markets, including potential merger and acquisition activity. We expect that by 2016, 20% or more of our operating earnings will come from emerging markets, with the acquisition of ProVida contributing to this increase.
|
•
|
Focus on disciplined underwriting. We see no significant changes to the underlying trends that drive underwriting results; however, unanticipated catastrophes, similar to Superstorm Sandy, could result in a high volume of claims.
|
•
|
Focus on expense management in the light of the low interest rate environment, and continued focus on expense control throughout the Company.
|
•
|
Continued disciplined approach to investing and asset/liability management (“ALM”), through our enterprise risk and ALM governance process.
|
(i)
|
liabilities for future policyholder benefits and the accounting for reinsurance;
|
(ii)
|
capitalization and amortization of DAC and the establishment and amortization of VOBA;
|
(iii)
|
estimated fair values of investments in the absence of quoted market values;
|
(iv)
|
investment impairments;
|
(v)
|
estimated fair values of freestanding derivatives and the recognition and estimated fair value of embedded derivatives requiring bifurcation;
|
(vi)
|
measurement of goodwill and related impairment;
|
(vii)
|
measurement of employee benefit plan liabilities;
|
(viii)
|
measurement of income taxes and the valuation of deferred tax assets; and
|
(ix)
|
liabilities for litigation and regulatory matters.
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Investment return
|
$
|
(66
|
)
|
|
$
|
(161
|
)
|
|
$
|
(43
|
)
|
Separate account balances
|
157
|
|
|
39
|
|
|
(125
|
)
|
|||
Net investment gain (loss)
|
195
|
|
|
(44
|
)
|
|
(530
|
)
|
|||
Guaranteed minimum income benefits
|
337
|
|
|
23
|
|
|
(13
|
)
|
|||
Expense
|
36
|
|
|
10
|
|
|
(6
|
)
|
|||
In-force/Persistency
|
72
|
|
|
368
|
|
|
(6
|
)
|
|||
Policyholder dividends and other
|
8
|
|
|
(4
|
)
|
|
32
|
|
|||
Total
|
$
|
739
|
|
|
$
|
231
|
|
|
$
|
(691
|
)
|
•
|
The increase in equity markets during the year increased separate account balances, which led to higher actual and expected future gross profits on variable universal life contracts and variable deferred annuity contracts resulting in a decrease of $157 million in DAC and VOBA amortization.
|
•
|
Changes in net investment gains (losses) resulted in the following changes in DAC and VOBA amortization:
|
–
|
Actual gross profits increased as a result of a decrease in liabilities associated with guarantee obligations on variable annuities, resulting in an increase of DAC and VOBA amortization of $1.1 billion, excluding the impact from our nonperformance risk and risk margins, which are described below. This increase in actual gross profits was more than offset by freestanding derivative losses associated with the hedging of such guarantee obligations, which resulted in a decrease in DAC and VOBA amortization of $1.2 billion.
|
–
|
The tightening of our nonperformance risk adjustment increased the valuation of guarantee liabilities, decreased actual gross profits and decreased DAC and VOBA amortization by $94 million. This was partially offset by lower risk margins, which decreased the guarantee liability valuations, increased actual gross profits and increased DAC and VOBA amortization by $60 million.
|
–
|
The remainder of the impact of net investment gains (losses), which decreased DAC and VOBA amortization by $72 million, was primarily attributable to 2013 investment activities.
|
•
|
The hedging and reinsurance losses associated with the insurance liabilities of the guaranteed minimum income benefits (“GMIBs”) decreased actual gross profits and decreased DAC and VOBA amortization by $349 million.
|
•
|
The increase in actual, as well as changes in projected, investment returns resulted in an increase in actual and a reduction in expected future gross profits on variable universal life contracts and variable deferred annuity contracts resulting in an increase of $161 million in DAC and VOBA amortization.
|
•
|
Better than expected persistency and changes in assumptions regarding persistency, especially in the U.S. deferred variable annuity contracts, resulted in an increase in actual and expected future gross profits resulting in a decrease of $368 million in DAC and VOBA amortization.
|
•
|
The decrease in equity markets during the year lowered separate account balances, which led to a reduction in actual and expected future gross profits on variable universal life contracts and variable deferred annuity contracts resulting in an increase of $125 million in DAC and VOBA amortization.
|
•
|
Changes in net investment gains (losses) resulted in the following changes in DAC and VOBA amortization:
|
–
|
Actual gross profits decreased as a result of an increase in liabilities associated with guarantee obligations on variable annuities, resulting in a decrease of DAC and VOBA amortization of $478 million, excluding the impact from our nonperformance risk and risk margins, which are described below. This decrease in actual gross profits was more than offset by freestanding derivative gains associated with the hedging of such guarantee obligations, which resulted in an increase in DAC and VOBA amortization of $759 million.
|
–
|
The widening of our nonperformance risk adjustment decreased the valuation of guarantee liabilities, increased actual gross profits and increased DAC and VOBA amortization by $234 million. This was partially offset by higher risk margins, which increased the guarantee liability valuations, decreased actual gross profits and decreased DAC and VOBA amortization by $64 million.
|
–
|
The remainder of the impact of net investment gains (losses), which increased DAC and VOBA amortization by $79 million, was primarily attributable to 2011 investment activities.
|
|
Changes in Balance Sheet Carrying Value At December 31, 2013
|
||||||
|
Policyholder Account Balances
|
|
DAC and VOBA
|
||||
|
(In millions)
|
||||||
100% increase in our credit spread
|
$
|
(1,280
|
)
|
|
$
|
(1,100
|
)
|
As reported
|
$
|
(1,040
|
)
|
|
$
|
(1,099
|
)
|
50% decrease in our credit spread
|
$
|
(909
|
)
|
|
$
|
(1,098
|
)
|
(i)
|
future taxable income exclusive of reversing temporary differences and carryforwards;
|
(ii)
|
future reversals of existing taxable temporary differences;
|
(iii)
|
taxable income in prior carryback years; and
|
(iv)
|
tax planning strategies.
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Revenues
|
|
|
|
|
|
||||||
Premiums
|
$
|
37,674
|
|
|
$
|
37,975
|
|
|
$
|
36,361
|
|
Universal life and investment-type product policy fees
|
9,451
|
|
|
8,556
|
|
|
7,806
|
|
|||
Net investment income
|
22,232
|
|
|
21,984
|
|
|
19,585
|
|
|||
Other revenues
|
1,920
|
|
|
1,906
|
|
|
2,532
|
|
|||
Net investment gains (losses)
|
161
|
|
|
(352
|
)
|
|
(867
|
)
|
|||
Net derivative gains (losses)
|
(3,239
|
)
|
|
(1,919
|
)
|
|
4,824
|
|
|||
Total revenues
|
68,199
|
|
|
68,150
|
|
|
70,241
|
|
|||
Expenses
|
|
|
|
|
|
||||||
Policyholder benefits and claims and policyholder dividends
|
39,366
|
|
|
39,356
|
|
|
36,917
|
|
|||
Interest credited to policyholder account balances
|
8,179
|
|
|
7,729
|
|
|
5,603
|
|
|||
Goodwill impairment
|
—
|
|
|
1,868
|
|
|
—
|
|
|||
Capitalization of DAC
|
(4,786
|
)
|
|
(5,289
|
)
|
|
(5,558
|
)
|
|||
Amortization of DAC and VOBA
|
3,550
|
|
|
4,199
|
|
|
4,898
|
|
|||
Amortization of negative VOBA
|
(579
|
)
|
|
(622
|
)
|
|
(697
|
)
|
|||
Interest expense on debt
|
1,282
|
|
|
1,356
|
|
|
1,629
|
|
|||
Other expenses
|
17,135
|
|
|
18,111
|
|
|
18,265
|
|
|||
Total expenses
|
64,147
|
|
|
66,708
|
|
|
61,057
|
|
|||
Income (loss) from continuing operations before provision for income tax
|
4,052
|
|
|
1,442
|
|
|
9,184
|
|
|||
Provision for income tax expense (benefit)
|
661
|
|
|
128
|
|
|
2,793
|
|
|||
Income (loss) from continuing operations, net of income tax
|
3,391
|
|
|
1,314
|
|
|
6,391
|
|
|||
Income (loss) from discontinued operations, net of income tax
|
2
|
|
|
48
|
|
|
24
|
|
|||
Net income (loss)
|
3,393
|
|
|
1,362
|
|
|
6,415
|
|
|||
Less: Net income (loss) attributable to noncontrolling interests
|
25
|
|
|
38
|
|
|
(8
|
)
|
|||
Net income (loss) attributable to MetLife, Inc.
|
3,368
|
|
|
1,324
|
|
|
6,423
|
|
|||
Less: Preferred stock dividends
|
122
|
|
|
122
|
|
|
122
|
|
|||
Preferred stock redemption premium
|
—
|
|
|
—
|
|
|
146
|
|
|||
Net income (loss) available to MetLife, Inc.’s common shareholders
|
$
|
3,246
|
|
|
$
|
1,202
|
|
|
$
|
6,155
|
|
|
Years Ended December 31,
|
|
||||||
|
2013
|
|
2012
|
|
||||
|
(In millions)
|
|||||||
Non-VA program derivatives
|
|
|
|
|
||||
Interest rate
|
$
|
(1,609
|
)
|
|
$
|
271
|
|
|
Foreign currency exchange rate
|
(1,225
|
)
|
|
(426
|
)
|
|
||
Credit
|
187
|
|
|
(105
|
)
|
|
||
Equity
|
(61
|
)
|
|
1
|
|
|
||
Non-VA embedded derivatives
|
123
|
|
|
(61
|
)
|
|
||
Total non-VA program derivatives
|
(2,585
|
)
|
|
(320
|
)
|
|
||
VA program derivatives
|
|
|
|
|
||||
Market risks in embedded derivatives
|
6,101
|
|
|
4,303
|
|
|
||
Nonperformance risk on embedded derivatives
|
(952
|
)
|
|
(1,659
|
)
|
|
||
Other risks in embedded derivatives
|
(169
|
)
|
|
(1,344
|
)
|
|
||
Total embedded derivatives
|
4,980
|
|
|
1,300
|
|
|
||
Freestanding derivatives hedging embedded derivatives
|
(5,634
|
)
|
|
(2,899
|
)
|
|
||
Total VA program derivatives
|
(654
|
)
|
|
(1,599
|
)
|
|
||
Net derivative gains (losses)
|
$
|
(3,239
|
)
|
|
$
|
(1,919
|
)
|
|
•
|
A decrease in the risk margin adjustment caused by lower policyholder behavior risks, which resulted in a favorable year over year change in the valuation of the embedded derivatives.
|
•
|
The mismatch of fund performance between actual and modeled funds and periodic updates to the mapping of policyholder funds into groups of representative indices, which resulted in a favorable year over year change in the valuation of the embedded derivatives.
|
•
|
A combination of other factors, such as in-force changes, resulted in an unfavorable year over year change in the valuation of the embedded derivatives.
|
•
|
Long-term interest rates increased more in 2013 than in 2012, contributing to an unfavorable change in our freestanding derivatives and a favorable change in our embedded derivatives.
|
•
|
Key equity index levels increased more in 2013 than in 2012 contributing to an unfavorable change in our freestanding derivatives and a favorable change in our embedded derivatives.
|
•
|
Key equity volatility measures decreased less in 2013 than in 2012, contributing to a favorable change in our freestanding derivatives and an unfavorable change in our embedded derivatives.
|
•
|
Changes in foreign currency exchange rates contributed to an unfavorable change in our freestanding derivatives and a favorable change in our embedded derivatives.
|
•
|
Changes to policyholder behavior and mortality assumptions resulted in reserve increases, offset by favorable DAC, for a net loss of $154 million ($103 million, net of income tax).
|
•
|
Changes in economic assumptions resulted in a decrease in reserves, offset by unfavorable DAC, for a net benefit of $53 million ($34 million, net of income tax).
|
|
Years Ended December 31,
|
|
||||||
|
2012
|
|
2011
|
|
||||
|
(In millions)
|
|||||||
Non-VA program derivatives
|
|
|
|
|
||||
Interest rate
|
$
|
271
|
|
|
$
|
2,536
|
|
|
Foreign currency exchange rate
|
(426
|
)
|
|
171
|
|
|
||
Credit
|
(105
|
)
|
|
173
|
|
|
||
Equity
|
1
|
|
|
6
|
|
|
||
Non-VA embedded derivatives
|
(61
|
)
|
|
17
|
|
|
||
Total non-VA program derivatives
|
(320
|
)
|
|
2,903
|
|
|
||
VA program derivatives
|
|
|
|
|
||||
Market risks in embedded derivatives
|
4,303
|
|
|
(2,332
|
)
|
|
||
Nonperformance risk on embedded derivatives
|
(1,659
|
)
|
|
1,822
|
|
|
||
Other risks in embedded derivatives
|
(1,344
|
)
|
|
(791
|
)
|
|
||
Total embedded derivatives
|
1,300
|
|
|
(1,301
|
)
|
|
||
Freestanding derivatives hedging embedded derivatives
|
(2,899
|
)
|
|
3,222
|
|
|
||
Total VA program derivatives
|
(1,599
|
)
|
|
1,921
|
|
|
||
Net derivative gains (losses)
|
$
|
(1,919
|
)
|
|
$
|
4,824
|
|
|
•
|
Refinements in the attribution analysis and valuation model, including periodic updates to actuarial assumptions and updates to better reflect product features, which resulted in an unfavorable year over year change in the valuation of the embedded derivatives.
|
•
|
A decrease in the risk margin adjustment caused by lower policyholder behavior risks, which resulted in a favorable year over year change in the valuation of the embedded derivatives.
|
•
|
A combination of other factors, such as in-force changes and the mismatch of fund performance between actual and modeled funds, which resulted in a favorable year over year change in the valuation of the embedded derivatives.
|
•
|
Long-term interest rates increased in 2012 but decreased in 2011 and contributed to an unfavorable change in our freestanding derivatives and favorable changes in our embedded derivatives.
|
•
|
Key equity index levels improved in 2012 but decreased in 2011, and equity volatility decreased in 2012 but generally increased in 2011. These changes contributed to an unfavorable change in our freestanding derivatives and a favorable change in our embedded derivatives.
|
•
|
Changes in foreign currency exchange rates contributed to an unfavorable change in our freestanding derivatives and favorable changes in our embedded derivatives.
|
•
|
Changes to policyholder-related assumptions resulted in reserve increases with corresponding favorable DAC changes of approximately $700 million ($455 million, net of income tax) for the year ended December 31, 2012. The most significant contributor to the increase in reserves was the change in the assumptions regarding policyholder surrenders. The policyholder surrenders for our variable deferred annuity block have been trending lower as there are fewer new annuity products available and as the value of the rider guarantees has increased over time relative to actual equity performance and low interest rates.
|
•
|
Decreases to our general account earned rate as well as the expected future performance in the separate accounts due to current and anticipated low interest rates for an extended period of time, resulted in an acceleration of amortization and an increase in insurance liabilities of $240 million ($156 million, net of income tax).
|
•
|
Updates to the future cash flows and corresponding dividend scales associated with the closed block as a result of current and anticipated low interest rates for an extended period of time, contributed to the acceleration of DAC amortization of $115 million ($75 million, net of income tax).
|
|
Retail
|
|
Group,
Voluntary&
Worksite
Benefits
|
|
Corporate
Benefit
Funding
|
|
Latin
America
|
|
Asia
|
|
EMEA
|
|
Corporate &
Other
|
|
Total
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
$
|
1,498
|
|
|
$
|
397
|
|
|
$
|
1,178
|
|
|
$
|
666
|
|
|
$
|
582
|
|
|
$
|
349
|
|
|
$
|
(1,279
|
)
|
|
$
|
3,391
|
|
Less: Net investment gains (losses)
|
70
|
|
|
(21
|
)
|
|
(8
|
)
|
|
20
|
|
|
343
|
|
|
(16
|
)
|
|
(227
|
)
|
|
161
|
|
||||||||
Less: Net derivative gains (losses)
|
(724
|
)
|
|
(676
|
)
|
|
(235
|
)
|
|
(24
|
)
|
|
(1,057
|
)
|
|
(6
|
)
|
|
(517
|
)
|
|
(3,239
|
)
|
||||||||
Less: Goodwill impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Less: Other adjustments to continuing operations (1)
|
(926
|
)
|
|
(172
|
)
|
|
46
|
|
|
167
|
|
|
(435
|
)
|
|
75
|
|
|
(393
|
)
|
|
(1,638
|
)
|
||||||||
Less: Provision for income tax (expense) benefit
|
554
|
|
|
304
|
|
|
68
|
|
|
(71
|
)
|
|
487
|
|
|
(33
|
)
|
|
389
|
|
|
1,698
|
|
||||||||
Operating earnings
|
$
|
2,524
|
|
|
$
|
962
|
|
|
$
|
1,307
|
|
|
$
|
574
|
|
|
$
|
1,244
|
|
|
$
|
329
|
|
|
(531
|
)
|
|
6,409
|
|
||
Less: Preferred stock dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
122
|
|
|
122
|
|
||||||||||||||
Operating earnings available to common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(653
|
)
|
|
$
|
6,287
|
|
|
Retail
|
|
Group,
Voluntary &
Worksite
Benefits
|
|
Corporate
Benefit
Funding
|
|
Latin
America
|
|
Asia
|
|
EMEA
|
|
Corporate &
Other
|
|
Total
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
$
|
(44
|
)
|
|
$
|
824
|
|
|
$
|
1,204
|
|
|
$
|
479
|
|
|
$
|
976
|
|
|
$
|
293
|
|
|
$
|
(2,418
|
)
|
|
$
|
1,314
|
|
Less: Net investment gains (losses)
|
212
|
|
|
(7
|
)
|
|
107
|
|
|
(2
|
)
|
|
(342
|
)
|
|
31
|
|
|
(351
|
)
|
|
(352
|
)
|
||||||||
Less: Net derivative gains (losses)
|
162
|
|
|
(63
|
)
|
|
(157
|
)
|
|
38
|
|
|
(170
|
)
|
|
61
|
|
|
(1,790
|
)
|
|
(1,919
|
)
|
||||||||
Less: Goodwill impairment
|
(1,692
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(176
|
)
|
|
(1,868
|
)
|
||||||||
Less: Other adjustments to continuing operations (1)
|
(1,260
|
)
|
|
(141
|
)
|
|
19
|
|
|
(193
|
)
|
|
(32
|
)
|
|
(22
|
)
|
|
(921
|
)
|
|
(2,550
|
)
|
||||||||
Less: Provision for income tax (expense) benefit
|
532
|
|
|
75
|
|
|
11
|
|
|
53
|
|
|
483
|
|
|
(48
|
)
|
|
1,089
|
|
|
2,195
|
|
||||||||
Operating earnings
|
$
|
2,002
|
|
|
$
|
960
|
|
|
$
|
1,224
|
|
|
$
|
583
|
|
|
$
|
1,037
|
|
|
$
|
271
|
|
|
(269
|
)
|
|
5,808
|
|
||
Less: Preferred stock dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
122
|
|
|
122
|
|
||||||||||||||
Operating earnings available to common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(391
|
)
|
|
$
|
5,686
|
|
|
Retail
|
|
Group,
Voluntary &
Worksite
Benefits
|
|
Corporate
Benefit
Funding
|
|
Latin
America
|
|
Asia
|
|
EMEA
|
|
Corporate
& Other
|
|
Total
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
$
|
2,486
|
|
|
$
|
1,568
|
|
|
$
|
1,454
|
|
|
$
|
214
|
|
|
$
|
835
|
|
|
$
|
(153
|
)
|
|
$
|
(13
|
)
|
|
$
|
6,391
|
|
Less: Net investment gains (losses)
|
158
|
|
|
(26
|
)
|
|
19
|
|
|
(6
|
)
|
|
(305
|
)
|
|
(525
|
)
|
|
(182
|
)
|
|
(867
|
)
|
||||||||
Less: Net derivative gains (losses)
|
2,321
|
|
|
1,203
|
|
|
426
|
|
|
(36
|
)
|
|
202
|
|
|
32
|
|
|
676
|
|
|
4,824
|
|
||||||||
Less: Goodwill impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Less: Other adjustments to continuing operations (1)
|
(709
|
)
|
|
(137
|
)
|
|
79
|
|
|
(340
|
)
|
|
14
|
|
|
(75
|
)
|
|
(283
|
)
|
|
(1,451
|
)
|
||||||||
Less: Provision for income tax (expense) benefit
|
(619
|
)
|
|
(363
|
)
|
|
(182
|
)
|
|
82
|
|
|
44
|
|
|
164
|
|
|
(40
|
)
|
|
(914
|
)
|
||||||||
Operating earnings
|
$
|
1,335
|
|
|
$
|
891
|
|
|
$
|
1,112
|
|
|
$
|
514
|
|
|
$
|
880
|
|
|
$
|
251
|
|
|
(184
|
)
|
|
4,799
|
|
||
Less: Preferred stock dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
122
|
|
|
122
|
|
||||||||||||||
Operating earnings available to common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(306
|
)
|
|
$
|
4,677
|
|
|
Retail
|
|
Group,
Voluntary&
Worksite
Benefits
|
|
Corporate
Benefit
Funding
|
|
Latin
America
|
|
Asia
|
|
EMEA
|
|
Corporate
& Other
|
|
Total
|
|||||||||||||||||
|
(In millions)
|
|||||||||||||||||||||||||||||||
Total revenues
|
$
|
19,574
|
|
|
$
|
17,343
|
|
|
$
|
8,946
|
|
|
$
|
5,165
|
|
|
$
|
13,204
|
|
|
$
|
3,937
|
|
|
$
|
30
|
|
—
|
|
$
|
68,199
|
|
Less: Net investment gains (losses)
|
70
|
|
|
(21
|
)
|
|
(8
|
)
|
|
20
|
|
|
343
|
|
|
(16
|
)
|
|
(227
|
)
|
—
|
|
161
|
|
||||||||
Less: Net derivative gains (losses)
|
(724
|
)
|
|
(676
|
)
|
|
(235
|
)
|
|
(24
|
)
|
|
(1,057
|
)
|
|
(6
|
)
|
|
(517
|
)
|
—
|
|
(3,239
|
)
|
||||||||
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
14
|
|
|
—
|
|
—
|
|
7
|
|
||||||||
Less: Other adjustments to revenues (1)
|
(119
|
)
|
|
(172
|
)
|
|
15
|
|
|
85
|
|
|
1,386
|
|
|
667
|
|
|
110
|
|
—
|
|
1,972
|
|
||||||||
Total operating revenues
|
$
|
20,356
|
|
|
$
|
18,212
|
|
|
$
|
9,174
|
|
|
$
|
5,084
|
|
|
$
|
12,530
|
|
|
$
|
3,278
|
|
|
$
|
664
|
|
|
$
|
69,298
|
|
|
Total expenses
|
$
|
17,316
|
|
|
$
|
16,762
|
|
|
$
|
7,132
|
|
|
$
|
4,285
|
|
|
$
|
12,552
|
|
|
$
|
3,477
|
|
|
$
|
2,623
|
|
|
$
|
64,147
|
|
|
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
(197
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
16
|
|
|
—
|
|
|
(196
|
)
|
|||||||||
Less: Goodwill impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Less: Other adjustments to expenses (1)
|
995
|
|
|
—
|
|
|
(31
|
)
|
|
(82
|
)
|
|
1,838
|
|
|
590
|
|
|
503
|
|
|
3,813
|
|
|||||||||
Total operating expenses
|
$
|
16,518
|
|
|
$
|
16,762
|
|
|
$
|
7,163
|
|
|
$
|
4,367
|
|
|
$
|
10,729
|
|
|
$
|
2,871
|
|
|
$
|
2,120
|
|
|
$
|
60,530
|
|
|
Retail
|
|
Group,
Voluntary
& Worksite
Benefits
|
|
Corporate
Benefit
Funding
|
|
Latin
America
|
|
Asia
|
|
EMEA
|
|
Corporate &
Other
|
|
Total
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Total revenues
|
$
|
19,939
|
|
|
$
|
17,436
|
|
|
$
|
9,436
|
|
|
$
|
4,845
|
|
|
$
|
12,793
|
|
|
$
|
4,279
|
|
|
$
|
(578
|
)
|
|
$
|
68,150
|
|
Less: Net investment gains (losses)
|
212
|
|
|
(7
|
)
|
|
107
|
|
|
(2
|
)
|
|
(342
|
)
|
|
31
|
|
|
(351
|
)
|
|
(352
|
)
|
||||||||
Less: Net derivative gains (losses)
|
162
|
|
|
(63
|
)
|
|
(157
|
)
|
|
38
|
|
|
(170
|
)
|
|
61
|
|
|
(1,790
|
)
|
|
(1,919
|
)
|
||||||||
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
||||||||
Less: Other adjustments to revenues (1)
|
(77
|
)
|
|
(140
|
)
|
|
62
|
|
|
232
|
|
|
549
|
|
|
813
|
|
|
616
|
|
|
2,055
|
|
||||||||
Total operating revenues
|
$
|
19,642
|
|
|
$
|
17,646
|
|
|
$
|
9,424
|
|
|
$
|
4,577
|
|
|
$
|
12,756
|
|
|
$
|
3,359
|
|
|
$
|
947
|
|
|
$
|
68,351
|
|
Total expenses
|
$
|
19,483
|
|
|
$
|
16,206
|
|
|
$
|
7,584
|
|
|
$
|
4,289
|
|
|
$
|
11,746
|
|
|
$
|
3,792
|
|
|
$
|
3,608
|
|
|
$
|
66,708
|
|
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
18
|
|
|
—
|
|
|
41
|
|
||||||||
Less: Goodwill impairment
|
1,692
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
176
|
|
|
1,868
|
|
||||||||
Less: Other adjustments to expenses (1)
|
1,164
|
|
|
1
|
|
|
43
|
|
|
425
|
|
|
577
|
|
|
832
|
|
|
1,537
|
|
|
4,579
|
|
||||||||
Total operating expenses
|
$
|
16,608
|
|
|
$
|
16,205
|
|
|
$
|
7,541
|
|
|
$
|
3,864
|
|
|
$
|
11,165
|
|
|
$
|
2,942
|
|
|
$
|
1,895
|
|
|
$
|
60,220
|
|
|
Retail
|
|
Group,
Voluntary
& Worksite
Benefits
|
|
Corporate
Benefit
Funding
|
|
Latin
America
|
|
Asia
|
|
EMEA
|
|
Corporate
& Other
|
|
Total
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Total revenues
|
$
|
21,491
|
|
|
$
|
17,777
|
|
|
$
|
9,413
|
|
|
$
|
4,448
|
|
|
$
|
10,959
|
|
|
$
|
2,956
|
|
|
$
|
3,197
|
|
|
$
|
70,241
|
|
Less: Net investment gains (losses)
|
158
|
|
|
(26
|
)
|
|
19
|
|
|
(6
|
)
|
|
(305
|
)
|
|
(525
|
)
|
|
(182
|
)
|
|
(867
|
)
|
||||||||
Less: Net derivative gains (losses)
|
2,321
|
|
|
1,203
|
|
|
426
|
|
|
(36
|
)
|
|
202
|
|
|
32
|
|
|
676
|
|
|
4,824
|
|
||||||||
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
||||||||
Less: Other adjustments to revenues (1)
|
(2
|
)
|
|
(137
|
)
|
|
133
|
|
|
179
|
|
|
(508
|
)
|
|
(28
|
)
|
|
1,546
|
|
|
1,183
|
|
||||||||
Total operating revenues
|
$
|
19,000
|
|
|
$
|
16,737
|
|
|
$
|
8,835
|
|
|
$
|
4,311
|
|
|
$
|
11,570
|
|
|
$
|
3,477
|
|
|
$
|
1,157
|
|
|
$
|
65,087
|
|
Total expenses
|
$
|
17,714
|
|
|
$
|
15,401
|
|
|
$
|
7,178
|
|
|
$
|
4,166
|
|
|
$
|
9,727
|
|
|
$
|
3,117
|
|
|
$
|
3,754
|
|
|
$
|
61,057
|
|
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
507
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
526
|
|
||||||||
Less: Goodwill impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Less: Other adjustments to expenses (1)
|
214
|
|
|
—
|
|
|
54
|
|
|
519
|
|
|
(541
|
)
|
|
47
|
|
|
1,829
|
|
|
2,122
|
|
||||||||
Total operating expenses
|
$
|
16,993
|
|
|
$
|
15,401
|
|
|
$
|
7,124
|
|
|
$
|
3,647
|
|
|
$
|
10,249
|
|
|
$
|
3,070
|
|
|
$
|
1,925
|
|
|
$
|
58,409
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
OPERATING REVENUES
|
|
|
|
|
|
||||||
Premiums
|
$
|
37,675
|
|
|
$
|
37,911
|
|
|
$
|
36,269
|
|
Universal life and investment-type product policy fees
|
9,085
|
|
|
8,212
|
|
|
7,528
|
|
|||
Net investment income
|
20,584
|
|
|
20,472
|
|
|
19,638
|
|
|||
Other revenues
|
1,954
|
|
|
1,756
|
|
|
1,652
|
|
|||
Total operating revenues
|
69,298
|
|
|
68,351
|
|
|
65,087
|
|
|||
OPERATING EXPENSES
|
|
|
|
|
|
||||||
Policyholder benefits and claims and policyholder dividends
|
37,968
|
|
|
37,770
|
|
|
36,241
|
|
|||
Interest credited to policyholder account balances
|
6,015
|
|
|
6,242
|
|
|
6,057
|
|
|||
Capitalization of DAC
|
(4,786
|
)
|
|
(5,284
|
)
|
|
(5,549
|
)
|
|||
Amortization of DAC and VOBA
|
4,083
|
|
|
4,177
|
|
|
4,355
|
|
|||
Amortization of negative VOBA
|
(524
|
)
|
|
(555
|
)
|
|
(619
|
)
|
|||
Interest expense on debt
|
1,159
|
|
|
1,190
|
|
|
1,304
|
|
|||
Other expenses
|
16,615
|
|
|
16,680
|
|
|
16,620
|
|
|||
Total operating expenses
|
60,530
|
|
|
60,220
|
|
|
58,409
|
|
|||
Provision for income tax expense (benefit)
|
2,359
|
|
|
2,323
|
|
|
1,879
|
|
|||
Operating earnings
|
6,409
|
|
|
5,808
|
|
|
4,799
|
|
|||
Less: Preferred stock dividends
|
122
|
|
|
122
|
|
|
122
|
|
|||
Operating earnings available to common shareholders
|
$
|
6,287
|
|
|
$
|
5,686
|
|
|
$
|
4,677
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
OPERATING REVENUES
|
|
|
|
|
|
||||||
Premiums
|
$
|
6,528
|
|
|
$
|
6,532
|
|
|
$
|
6,711
|
|
Universal life and investment-type product policy fees
|
4,912
|
|
|
4,561
|
|
|
4,096
|
|
|||
Net investment income
|
7,898
|
|
|
7,670
|
|
|
7,414
|
|
|||
Other revenues
|
1,018
|
|
|
879
|
|
|
779
|
|
|||
Total operating revenues
|
20,356
|
|
|
19,642
|
|
|
19,000
|
|
|||
OPERATING EXPENSES
|
|
|
|
|
|
||||||
Policyholder benefits and claims and policyholder dividends
|
9,028
|
|
|
9,010
|
|
|
9,220
|
|
|||
Interest credited to policyholder account balances
|
2,331
|
|
|
2,375
|
|
|
2,412
|
|
|||
Capitalization of DAC
|
(1,309
|
)
|
|
(1,753
|
)
|
|
(2,339
|
)
|
|||
Amortization of DAC and VOBA
|
1,384
|
|
|
1,607
|
|
|
1,845
|
|
|||
Interest expense on debt
|
—
|
|
|
—
|
|
|
1
|
|
|||
Other expenses
|
5,084
|
|
|
5,369
|
|
|
5,854
|
|
|||
Total operating expenses
|
16,518
|
|
|
16,608
|
|
|
16,993
|
|
|||
Provision for income tax expense (benefit)
|
1,314
|
|
|
1,032
|
|
|
672
|
|
|||
Operating earnings
|
$
|
2,524
|
|
|
$
|
2,002
|
|
|
$
|
1,335
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
OPERATING REVENUES
|
|
|
|
|
|
||||||
Premiums
|
$
|
15,250
|
|
|
$
|
14,794
|
|
|
$
|
13,949
|
|
Universal life and investment-type product policy fees
|
688
|
|
|
662
|
|
|
630
|
|
|||
Net investment income
|
1,856
|
|
|
1,768
|
|
|
1,768
|
|
|||
Other revenues
|
418
|
|
|
422
|
|
|
390
|
|
|||
Total operating revenues
|
18,212
|
|
|
17,646
|
|
|
16,737
|
|
|||
OPERATING EXPENSES
|
|
|
|
|
|
||||||
Policyholder benefits and claims and policyholder dividends
|
14,227
|
|
|
13,691
|
|
|
13,015
|
|
|||
Interest credited to policyholder account balances
|
155
|
|
|
167
|
|
|
178
|
|
|||
Capitalization of DAC
|
(141
|
)
|
|
(138
|
)
|
|
(176
|
)
|
|||
Amortization of DAC and VOBA
|
140
|
|
|
133
|
|
|
186
|
|
|||
Interest expense on debt
|
1
|
|
|
1
|
|
|
—
|
|
|||
Other expenses
|
2,380
|
|
|
2,351
|
|
|
2,198
|
|
|||
Total operating expenses
|
16,762
|
|
|
16,205
|
|
|
15,401
|
|
|||
Provision for income tax expense (benefit)
|
488
|
|
|
481
|
|
|
445
|
|
|||
Operating earnings
|
$
|
962
|
|
|
$
|
960
|
|
|
$
|
891
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
OPERATING REVENUES
|
|
|
|
|
|
||||||
Premiums
|
$
|
2,859
|
|
|
$
|
3,237
|
|
|
$
|
2,848
|
|
Universal life and investment-type product policy fees
|
247
|
|
|
225
|
|
|
232
|
|
|||
Net investment income
|
5,790
|
|
|
5,703
|
|
|
5,506
|
|
|||
Other revenues
|
278
|
|
|
259
|
|
|
249
|
|
|||
Total operating revenues
|
9,174
|
|
|
9,424
|
|
|
8,835
|
|
|||
OPERATING EXPENSES
|
|
|
|
|
|
||||||
Policyholder benefits and claims and policyholder dividends
|
5,402
|
|
|
5,704
|
|
|
5,287
|
|
|||
Interest credited to policyholder account balances
|
1,233
|
|
|
1,358
|
|
|
1,323
|
|
|||
Capitalization of DAC
|
(27
|
)
|
|
(29
|
)
|
|
(25
|
)
|
|||
Amortization of DAC and VOBA
|
23
|
|
|
22
|
|
|
17
|
|
|||
Interest expense on debt
|
9
|
|
|
8
|
|
|
9
|
|
|||
Other expenses
|
523
|
|
|
478
|
|
|
513
|
|
|||
Total operating expenses
|
7,163
|
|
|
7,541
|
|
|
7,124
|
|
|||
Provision for income tax expense (benefit)
|
704
|
|
|
659
|
|
|
599
|
|
|||
Operating earnings
|
$
|
1,307
|
|
|
$
|
1,224
|
|
|
$
|
1,112
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
OPERATING REVENUES
|
|
|
|
|
|
||||||
Premiums
|
$
|
2,824
|
|
|
$
|
2,578
|
|
|
$
|
2,514
|
|
Universal life and investment-type product policy fees
|
991
|
|
|
785
|
|
|
757
|
|
|||
Net investment income
|
1,246
|
|
|
1,198
|
|
|
1,025
|
|
|||
Other revenues
|
23
|
|
|
16
|
|
|
15
|
|
|||
Total operating revenues
|
5,084
|
|
|
4,577
|
|
|
4,311
|
|
|||
OPERATING EXPENSES
|
|
|
|
|
|
||||||
Policyholder benefits and claims and policyholder dividends
|
2,454
|
|
|
2,231
|
|
|
2,064
|
|
|||
Interest credited to policyholder account balances
|
417
|
|
|
393
|
|
|
371
|
|
|||
Capitalization of DAC
|
(424
|
)
|
|
(353
|
)
|
|
(295
|
)
|
|||
Amortization of DAC and VOBA
|
310
|
|
|
224
|
|
|
207
|
|
|||
Amortization of negative VOBA
|
(2
|
)
|
|
(5
|
)
|
|
(6
|
)
|
|||
Interest expense on debt
|
—
|
|
|
(1
|
)
|
|
1
|
|
|||
Other expenses
|
1,612
|
|
|
1,375
|
|
|
1,305
|
|
|||
Total operating expenses
|
4,367
|
|
|
3,864
|
|
|
3,647
|
|
|||
Provision for income tax expense (benefit)
|
143
|
|
|
130
|
|
|
150
|
|
|||
Operating earnings
|
$
|
574
|
|
|
$
|
583
|
|
|
$
|
514
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
OPERATING REVENUES
|
|
|
|
|
|
||||||
Premiums
|
$
|
7,801
|
|
|
$
|
8,344
|
|
|
$
|
7,716
|
|
Universal life and investment-type product policy fees
|
1,722
|
|
|
1,491
|
|
|
1,343
|
|
|||
Net investment income
|
2,915
|
|
|
2,895
|
|
|
2,475
|
|
|||
Other revenues
|
92
|
|
|
26
|
|
|
36
|
|
|||
Total operating revenues
|
12,530
|
|
|
12,756
|
|
|
11,570
|
|
|||
OPERATING EXPENSES
|
|
|
|
|
|
||||||
Policyholder benefits and claims and policyholder dividends
|
5,755
|
|
|
5,819
|
|
|
5,239
|
|
|||
Interest credited to policyholder account balances
|
1,690
|
|
|
1,784
|
|
|
1,607
|
|
|||
Capitalization of DAC
|
(2,143
|
)
|
|
(2,288
|
)
|
|
(2,045
|
)
|
|||
Amortization of DAC and VOBA
|
1,542
|
|
|
1,563
|
|
|
1,486
|
|
|||
Amortization of negative VOBA
|
(427
|
)
|
|
(456
|
)
|
|
(560
|
)
|
|||
Interest expense on debt
|
—
|
|
|
5
|
|
|
—
|
|
|||
Other expenses
|
4,312
|
|
|
4,738
|
|
|
4,522
|
|
|||
Total operating expenses
|
10,729
|
|
|
11,165
|
|
|
10,249
|
|
|||
Provision for income tax expense (benefit)
|
557
|
|
|
554
|
|
|
441
|
|
|||
Operating earnings
|
$
|
1,244
|
|
|
$
|
1,037
|
|
|
$
|
880
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
OPERATING REVENUES
|
|
|
|
|
|
||||||
Premiums
|
$
|
2,297
|
|
|
$
|
2,370
|
|
|
$
|
2,477
|
|
Universal life and investment-type product policy fees
|
386
|
|
|
333
|
|
|
315
|
|
|||
Net investment income
|
498
|
|
|
535
|
|
|
562
|
|
|||
Other revenues
|
97
|
|
|
121
|
|
|
123
|
|
|||
Total operating revenues
|
3,278
|
|
|
3,359
|
|
|
3,477
|
|
|||
OPERATING EXPENSES
|
|
|
|
|
|
||||||
Policyholder benefits and claims and policyholder dividends
|
1,039
|
|
|
1,196
|
|
|
1,290
|
|
|||
Interest credited to policyholder account balances
|
147
|
|
|
126
|
|
|
166
|
|
|||
Capitalization of DAC
|
(714
|
)
|
|
(723
|
)
|
|
(669
|
)
|
|||
Amortization of DAC and VOBA
|
683
|
|
|
626
|
|
|
613
|
|
|||
Amortization of negative VOBA
|
(95
|
)
|
|
(94
|
)
|
|
(53
|
)
|
|||
Interest expense on debt
|
1
|
|
|
1
|
|
|
—
|
|
|||
Other expenses
|
1,810
|
|
|
1,810
|
|
|
1,723
|
|
|||
Total operating expenses
|
2,871
|
|
|
2,942
|
|
|
3,070
|
|
|||
Provision for income tax expense (benefit)
|
78
|
|
|
146
|
|
|
156
|
|
|||
Operating earnings
|
$
|
329
|
|
|
$
|
271
|
|
|
$
|
251
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
OPERATING REVENUES
|
|
|
|
|
|
||||||
Premiums
|
$
|
116
|
|
|
$
|
56
|
|
|
$
|
54
|
|
Universal life and investment-type product policy fees
|
139
|
|
|
155
|
|
|
155
|
|
|||
Net investment income
|
381
|
|
|
703
|
|
|
888
|
|
|||
Other revenues
|
28
|
|
|
33
|
|
|
60
|
|
|||
Total operating revenues
|
664
|
|
|
947
|
|
|
1,157
|
|
|||
OPERATING EXPENSES
|
|
|
|
|
|
||||||
Policyholder benefits and claims and policyholder dividends
|
63
|
|
|
119
|
|
|
126
|
|
|||
Interest credited to policyholder account balances
|
42
|
|
|
39
|
|
|
—
|
|
|||
Capitalization of DAC
|
(28
|
)
|
|
—
|
|
|
—
|
|
|||
Amortization of DAC and VOBA
|
1
|
|
|
2
|
|
|
1
|
|
|||
Interest expense on debt
|
1,148
|
|
|
1,176
|
|
|
1,293
|
|
|||
Other expenses
|
894
|
|
|
559
|
|
|
505
|
|
|||
Total operating expenses
|
2,120
|
|
|
1,895
|
|
|
1,925
|
|
|||
Provision for income tax expense (benefit)
|
(925
|
)
|
|
(679
|
)
|
|
(584
|
)
|
|||
Operating earnings
|
(531
|
)
|
|
(269
|
)
|
|
(184
|
)
|
|||
Less: Preferred stock dividends
|
122
|
|
|
122
|
|
|
122
|
|
|||
Operating earnings available to common shareholders
|
$
|
(653
|
)
|
|
$
|
(391
|
)
|
|
$
|
(306
|
)
|
|
Years Ended December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(In millions)
|
||||||
|
|
|
|
||||
Other business activities
|
$
|
62
|
|
|
$
|
46
|
|
Other net investment income
|
248
|
|
|
460
|
|
||
Interest expense on debt
|
(747
|
)
|
|
(764
|
)
|
||
Preferred stock dividends
|
(122
|
)
|
|
(122
|
)
|
||
Acquisition costs
|
(18
|
)
|
|
(37
|
)
|
||
Corporate initiatives and projects
|
(134
|
)
|
|
(114
|
)
|
||
Incremental tax benefit
|
415
|
|
|
347
|
|
||
Other (including asbestos litigation)
|
(357
|
)
|
|
(207
|
)
|
||
Operating earnings available to common shareholders
|
$
|
(653
|
)
|
|
$
|
(391
|
)
|
•
|
credit risk, relating to the uncertainty associated with the continued ability of a given obligor to make timely payments of principal and interest;
|
•
|
interest rate risk, relating to the market price and cash flow variability associated with changes in market interest rates. Changes in market interest rates will impact the net unrealized gain or loss position of our fixed income investment portfolio and the rates of return we receive on both new funds invested and reinvestment of existing funds;
|
•
|
liquidity risk, relating to the diminished ability to sell certain investments, in times of strained market conditions;
|
•
|
market valuation risk, relating to the variability in the estimated fair value of investments associated with changes in market factors such as credit spreads. A widening of credit spreads will adversely impact the net unrealized gain (loss) position of the fixed income investment portfolio, will increase losses associated with credit-based non-qualifying derivatives where we assume credit exposure, and, if credit spreads widen significantly or for an extended period of time, will likely result in higher OTTI. Credit spread tightening will reduce net investment income associated with purchases of fixed maturity securities and will favorably impact the net unrealized gain (loss) position of the fixed income investment portfolio;
|
•
|
currency risk, relating to the variability in currency exchange rates for foreign denominated investments. This risk relates to potential decreases in estimated fair value and net investment income resulting from changes in currency exchange rates versus the U.S. dollar. In general, the weakening of foreign currencies versus the U.S. dollar will adversely affect the estimated fair value of our foreign denominated investments; and
|
•
|
real estate risk, relating to commercial, agricultural and residential real estate, and stemming from factors, which include, but are not limited to, market conditions, including the demand and supply of leasable commercial space, creditworthiness of tenants and partners, capital markets volatility and the inherent interest rate movement.
|
|
Summary of Select European Country Investment Exposure at December 31, 2013
|
||||||||||||||||||||||||||||||||||||
|
Fixed Maturity Securities (1)
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
|
Sovereign
|
|
Financial
Services
|
|
Non-
Financial
Services
|
|
Total
|
|
All Other
General
Account
Investment
Exposure (2)
|
|
Total
Exposure (3)
|
|
%
|
|
Purchased
Credit Default
Protection (4)
|
|
Net
Exposure
|
|
%
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
(In millions)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Europe’s perimeter region:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Portugal
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
55
|
|
|
$
|
55
|
|
|
$
|
19
|
|
|
$
|
74
|
|
|
3
|
%
|
|
$
|
—
|
|
|
$
|
74
|
|
|
3
|
%
|
Italy
|
4
|
|
|
92
|
|
|
566
|
|
|
662
|
|
|
97
|
|
|
759
|
|
|
31
|
|
|
1
|
|
|
760
|
|
|
31
|
|
||||||||
Ireland
|
—
|
|
|
—
|
|
|
122
|
|
|
122
|
|
|
655
|
|
|
777
|
|
|
32
|
|
|
—
|
|
|
777
|
|
|
32
|
|
||||||||
Greece
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
120
|
|
|
120
|
|
|
5
|
|
|
—
|
|
|
120
|
|
|
5
|
|
||||||||
Spain
|
—
|
|
|
101
|
|
|
476
|
|
|
577
|
|
|
48
|
|
|
625
|
|
|
25
|
|
|
—
|
|
|
625
|
|
|
25
|
|
||||||||
Total Europe’s perimeter region
|
4
|
|
|
193
|
|
|
1,219
|
|
|
1,416
|
|
|
939
|
|
|
2,355
|
|
|
96
|
|
|
1
|
|
|
2,356
|
|
|
96
|
|
||||||||
Cyprus
|
85
|
|
|
—
|
|
|
—
|
|
|
85
|
|
|
4
|
|
|
89
|
|
|
4
|
|
|
—
|
|
|
89
|
|
|
4
|
|
||||||||
Total
|
$
|
89
|
|
|
$
|
193
|
|
|
$
|
1,219
|
|
|
$
|
1,501
|
|
|
$
|
943
|
|
|
$
|
2,444
|
|
|
100
|
%
|
|
$
|
1
|
|
|
$
|
2,445
|
|
|
100
|
%
|
As percent of total cash and invested assets
|
0.0
|
%
|
|
0.0
|
%
|
|
0.3
|
%
|
|
0.3
|
%
|
|
0.2
|
%
|
|
0.5
|
%
|
|
|
|
0.0
|
%
|
|
0.5
|
%
|
|
|
||||||||||
Investment grade %
|
5
|
%
|
|
94
|
%
|
|
87
|
%
|
|
83
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Non-investment grade %
|
95
|
%
|
|
6
|
%
|
|
13
|
%
|
|
17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The par value and amortized cost of the fixed maturity securities were $1.4 billion and $1.5 billion, respectively, at December 31,
2013
.
|
(2)
|
Comprised of equity securities, mortgage loans, other limited partnership interests, cash, cash equivalents and short-term investments, and other invested assets at carrying value. See Note
1
of the Notes to the Consolidated Financial Statements for an explanation of the carrying value for these invested asset classes. Excludes FVO contractholder-directed unit-linked investments of $957 million — See “— FVO and Trading Securities.”
|
(3)
|
For Greece, the Company had $1 million of commitments to fund partnership investments at December 31,
2013
.
|
(4)
|
Purchased credit default protection is stated at the estimated fair value of the swap. For Italy, the purchased credit default protection relates to financial services corporate securities and these swaps had a notional amount of $80 million and an estimated fair value of ($1) million at December 31,
2013
. The counterparties to these swaps are financial institutions with S&P credit ratings of A as of December 31,
2013
.
|
|
For the Years Ended December 31,
|
|||||||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|||||||||||||||
|
Yield% (1)
|
|
Amount
|
|
Yield% (1)
|
|
Amount
|
|
Yield% (1)
|
|
Amount
|
|||||||||
|
|
|
(In millions)
|
|
|
|
(In millions)
|
|
|
|
(In millions)
|
|||||||||
Fixed maturity securities (2) (3)
|
4.84
|
|
%
|
$
|
15,098
|
|
|
4.85
|
|
%
|
$
|
15,243
|
|
|
4.94
|
|
%
|
$
|
15,016
|
|
Mortgage loans (3)
|
5.58
|
|
%
|
3,020
|
|
|
5.64
|
|
%
|
3,190
|
|
|
5.53
|
|
%
|
3,162
|
|
|||
Real estate and real estate joint ventures
|
3.44
|
|
%
|
347
|
|
|
4.59
|
|
%
|
401
|
|
|
3.76
|
|
%
|
307
|
|
|||
Policy loans
|
5.26
|
|
%
|
620
|
|
|
5.25
|
|
%
|
626
|
|
|
5.43
|
|
%
|
641
|
|
|||
Equity securities
|
4.44
|
|
%
|
127
|
|
|
4.60
|
|
%
|
133
|
|
|
4.44
|
|
%
|
141
|
|
|||
Other limited partnership interests
|
13.35
|
|
%
|
955
|
|
|
12.76
|
|
%
|
845
|
|
|
10.58
|
|
%
|
681
|
|
|||
Cash and short-term investments
|
0.98
|
|
%
|
168
|
|
|
0.69
|
|
%
|
143
|
|
|
1.04
|
|
%
|
155
|
|
|||
Other invested assets
|
|
|
819
|
|
|
|
|
595
|
|
|
|
|
439
|
|
||||||
Total before investment fees and expenses
|
5.03
|
|
%
|
21,154
|
|
|
4.96
|
|
%
|
21,176
|
|
|
5.00
|
|
%
|
20,542
|
|
|||
Investment fees and expenses
|
(0.13
|
)
|
|
(563
|
)
|
|
(0.13
|
)
|
|
(554
|
)
|
|
(0.13
|
)
|
|
(546
|
)
|
|||
Net investment income including Divested Businesses (4)
|
4.90
|
|
%
|
20,591
|
|
|
4.83
|
|
%
|
20,622
|
|
|
4.87
|
|
%
|
19,996
|
|
|||
Less: net investment income from Divested Businesses (4)
|
|
|
(7
|
)
|
|
|
|
(150
|
)
|
|
|
|
(358
|
)
|
||||||
Net investment income (5)
|
|
|
$
|
20,584
|
|
|
|
|
$
|
20,472
|
|
|
|
|
$
|
19,638
|
|
(1)
|
Yields are calculated as investment income as a percent of average quarterly asset carrying values. Investment income excludes recognized gains and losses and reflects GAAP adjustments presented in footnote (5) below. Asset carrying values exclude unrealized gains (losses), collateral received in connection with our securities lending program, freestanding derivative assets, collateral received from derivative counterparties, the effects of consolidating certain variable interest entities (“VIEs”) under GAAP that are treated as consolidated securitization entities (“CSEs”), contractholder-directed unit-linked investments and securitized reverse residential mortgage loans. A yield is not presented for other invested assets, as it is not considered a meaningful measure of performance for this asset class.
|
(2)
|
Investment income (loss) includes amounts for FVO and trading securities of $65 million, $88 million and $31 million for the years ended December 31,
2013
,
2012
and
2011
, respectively.
|
(3)
|
Investment income from fixed maturity securities and mortgage loans includes prepayment fees.
|
(4)
|
Yield calculations include the net investment income and ending carrying values of the Divested Businesses. The net investment income adjustment for the Divested Businesses for the year ended December 31,
2012
of $150 million excludes $177 million of securitized reverse residential mortgage loans that were included in the Divested Businesses adjustment of $327 million presented below. For further information on Divested Businesses, see Note
3
of the Notes to the Consolidated Financial Statements.
|
(5)
|
Net investment income presented in the yield table varies from the most directly comparable GAAP measure due to certain reclassifications and excludes the effects of consolidating certain VIEs under GAAP that are treated as CSEs and contractholder-directed unit-linked investments. Such reclassifications are presented in the table below.
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Net investment income — in the above yield table
|
$
|
20,584
|
|
|
$
|
20,472
|
|
|
$
|
19,638
|
|
Real estate discontinued operations
|
(9
|
)
|
|
(3
|
)
|
|
(10
|
)
|
|||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting
|
(643
|
)
|
|
(448
|
)
|
|
(249
|
)
|
|||
Equity method operating joint ventures
|
(2
|
)
|
|
—
|
|
|
(23
|
)
|
|||
Contractholder-directed unit-linked investments
|
2,172
|
|
|
1,473
|
|
|
(453
|
)
|
|||
Divested Businesses
|
7
|
|
|
327
|
|
|
358
|
|
|||
Incremental net investment income from CSEs
|
123
|
|
|
163
|
|
|
324
|
|
|||
Net investment income — GAAP consolidated statements of operations
|
$
|
22,232
|
|
|
$
|
21,984
|
|
|
$
|
19,585
|
|
|
December 31, 2013
|
||||||||||||
|
Fixed Maturity
Securities
|
|
Equity
Securities
|
||||||||||
|
(In millions)
|
|
|
|
(In millions)
|
|
|
||||||
Level 1:
|
|
|
|
|
|
|
|
||||||
Quoted prices in active markets for identical assets
|
$
|
25,061
|
|
|
7.2
|
%
|
|
$
|
1,186
|
|
|
34.9
|
%
|
Level 2:
|
|
|
|
|
|
|
|
||||||
Independent pricing source
|
264,703
|
|
|
75.6
|
|
|
715
|
|
|
21.0
|
|
||
Internal matrix pricing or discounted cash flow techniques
|
36,125
|
|
|
10.3
|
|
|
929
|
|
|
27.3
|
|
||
Significant other observable inputs
|
300,828
|
|
|
85.9
|
|
|
1,644
|
|
|
48.3
|
|
||
Level 3:
|
|
|
|
|
|
|
|
||||||
Independent pricing source
|
7,969
|
|
|
2.2
|
|
|
448
|
|
|
13.2
|
|
||
Internal matrix pricing or discounted cash flow techniques
|
13,220
|
|
|
3.8
|
|
|
106
|
|
|
3.1
|
|
||
Independent broker quotations
|
3,109
|
|
|
0.9
|
|
|
18
|
|
|
0.5
|
|
||
Significant unobservable inputs
|
24,298
|
|
|
6.9
|
|
|
572
|
|
|
16.8
|
|
||
Total estimated fair value
|
$
|
350,187
|
|
|
100.0
|
%
|
|
$
|
3,402
|
|
|
100.0
|
%
|
•
|
The majority of the Level 3 fixed maturity and equity securities AFS were concentrated in five sectors: U.S. and foreign corporate securities, asset-backed securities (“ABS”), residential mortgage-backed securities (“RMBS”), and foreign government securities.
|
•
|
Level 3 fixed maturity securities are priced principally through market standard valuation methodologies, independent pricing services and, to a much lesser extent, independent non-binding broker quotations using inputs that are not market observable or cannot be derived principally from or corroborated by observable market data. Level 3 fixed maturity securities consist of less liquid securities with very limited trading activity or where less price transparency exists around the inputs to the valuation methodologies. Level 3 fixed maturity securities include: alternative residential mortgage loan (“Alt-A”) and sub-prime RMBS; certain below investment grade private securities and less liquid investment grade corporate securities (included in U.S. and foreign corporate securities); less liquid ABS and foreign government securities.
|
•
|
During the year ended December 31,
2013
, Level 3 fixed maturity securities increased by $1.9 billion. The increase was driven by purchases in excess of sales, partially offset by net transfers out of Level 3 and a decrease in estimated fair value recognized in other comprehensive income (loss) (“OCI”). The purchases in excess of sales of fixed maturity securities were concentrated in U.S. and foreign corporate securities, ABS, RMBS, and foreign government securities. The net transfers out of Level 3 were concentrated in U.S. and foreign corporate securities, ABS, and commercial mortgage-backed securities (“CMBS”), and the decrease in estimated fair value recognized in OCI for fixed maturity securities was concentrated in U.S. and foreign corporate securities and foreign government securities.
|
|
|
|
|
December 31,
|
|
|||||||||||||||||||||||||||
|
|
|
|
2013
|
|
|
2012
|
|
||||||||||||||||||||||||
NAIC
Designation
|
|
Rating Agency Rating
|
|
Amortized
Cost
|
|
Unrealized
Gain (Loss)
|
|
Estimated
Fair
Value
|
|
% of
Total
|
|
|
Amortized
Cost
|
|
Unrealized
Gain (Loss)
|
|
Estimated
Fair
Value
|
|
% of
Total
|
|
||||||||||||
|
|
|
|
|
|
(In millions)
|
|
|
|
|
|
|
|
|
(In millions)
|
|
|
|
|
|
||||||||||||
1
|
|
Aaa/Aa/A
|
|
$
|
230,429
|
|
|
$
|
11,640
|
|
|
$
|
242,069
|
|
|
69.1
|
%
|
|
$
|
234,371
|
|
|
$
|
24,197
|
|
|
$
|
258,568
|
|
|
69.1
|
%
|
2
|
|
Baa
|
|
79,732
|
|
|
4,382
|
|
|
84,114
|
|
|
24.0
|
|
|
81,530
|
|
|
8,663
|
|
|
90,193
|
|
|
24.1
|
|
||||||
|
|
Subtotal investment grade
|
|
310,161
|
|
|
16,022
|
|
|
326,183
|
|
|
93.1
|
|
|
315,901
|
|
|
32,860
|
|
|
348,761
|
|
|
93.2
|
|
||||||
3
|
|
Ba
|
|
13,239
|
|
|
358
|
|
|
13,597
|
|
|
3.9
|
|
|
13,882
|
|
|
552
|
|
|
14,434
|
|
|
3.8
|
|
||||||
4
|
|
B
|
|
9,216
|
|
|
162
|
|
|
9,378
|
|
|
2.7
|
|
|
9,470
|
|
|
137
|
|
|
9,607
|
|
|
2.6
|
|
||||||
5
|
|
Caa and lower
|
|
932
|
|
|
23
|
|
|
955
|
|
|
0.3
|
|
|
1,543
|
|
|
(164
|
)
|
|
1,379
|
|
|
0.4
|
|
||||||
6
|
|
In or near default
|
|
51
|
|
|
23
|
|
|
74
|
|
|
—
|
|
|
74
|
|
|
11
|
|
|
85
|
|
|
—
|
|
||||||
|
|
Subtotal below investment grade
|
|
23,438
|
|
|
566
|
|
|
24,004
|
|
|
6.9
|
|
|
24,969
|
|
|
536
|
|
|
25,505
|
|
|
6.8
|
|
||||||
|
|
Total fixed maturity securities
|
|
$
|
333,599
|
|
|
$
|
16,588
|
|
|
$
|
350,187
|
|
|
100.0
|
%
|
|
$
|
340,870
|
|
|
$
|
33,396
|
|
|
$
|
374,266
|
|
|
100.0
|
%
|
|
Fixed Maturity Securities — by Sector & Credit Quality Rating
|
||||||||||||||||||||||||||
NAIC Designation:
|
1
|
|
2
|
|
3
|
|
4
|
|
5
|
|
6
|
|
Total
Estimated
Fair Value
|
||||||||||||||
Rating Agency Rating:
|
Aaa/Aa/A
|
|
Baa
|
|
Ba
|
|
B
|
|
Caa and
Lower
|
|
In or Near
Default
|
|
|||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
December 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. corporate
|
$
|
46,038
|
|
|
$
|
45,639
|
|
|
$
|
9,349
|
|
|
$
|
4,998
|
|
|
$
|
415
|
|
|
$
|
30
|
|
|
$
|
106,469
|
|
Foreign corporate
|
27,957
|
|
|
30,477
|
|
|
2,762
|
|
|
1,910
|
|
|
45
|
|
|
1
|
|
|
63,152
|
|
|||||||
Foreign government
|
47,767
|
|
|
4,481
|
|
|
648
|
|
|
1,363
|
|
|
178
|
|
|
—
|
|
|
54,437
|
|
|||||||
U.S. Treasury and agency
|
45,123
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45,123
|
|
|||||||
RMBS
|
31,385
|
|
|
1,657
|
|
|
753
|
|
|
974
|
|
|
248
|
|
|
38
|
|
|
35,055
|
|
|||||||
CMBS
|
16,393
|
|
|
47
|
|
|
45
|
|
|
14
|
|
|
51
|
|
|
—
|
|
|
16,550
|
|
|||||||
ABS
|
14,184
|
|
|
1,215
|
|
|
30
|
|
|
119
|
|
|
18
|
|
|
5
|
|
|
15,571
|
|
|||||||
State and political subdivision
|
13,222
|
|
|
598
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,830
|
|
|||||||
Total fixed maturity securities
|
$
|
242,069
|
|
|
$
|
84,114
|
|
|
$
|
13,597
|
|
|
$
|
9,378
|
|
|
$
|
955
|
|
|
$
|
74
|
|
|
$
|
350,187
|
|
Percentage of total
|
69.1
|
%
|
|
24.0
|
%
|
|
3.9
|
%
|
|
2.7
|
%
|
|
0.3
|
%
|
|
—
|
%
|
|
100.0
|
%
|
|||||||
December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. corporate
|
$
|
51,648
|
|
|
$
|
48,622
|
|
|
$
|
8,597
|
|
|
$
|
4,831
|
|
|
$
|
380
|
|
|
$
|
48
|
|
|
$
|
114,126
|
|
Foreign corporate
|
31,937
|
|
|
30,509
|
|
|
3,249
|
|
|
1,418
|
|
|
66
|
|
|
5
|
|
|
67,184
|
|
|||||||
Foreign government
|
46,314
|
|
|
8,501
|
|
|
933
|
|
|
1,504
|
|
|
84
|
|
|
—
|
|
|
57,336
|
|
|||||||
U.S. Treasury and agency
|
47,967
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,967
|
|
|||||||
RMBS
|
32,377
|
|
|
894
|
|
|
1,582
|
|
|
1,809
|
|
|
790
|
|
|
27
|
|
|
37,479
|
|
|||||||
CMBS
|
18,843
|
|
|
193
|
|
|
43
|
|
|
11
|
|
|
39
|
|
|
—
|
|
|
19,129
|
|
|||||||
ABS
|
15,247
|
|
|
673
|
|
|
18
|
|
|
34
|
|
|
20
|
|
|
5
|
|
|
15,997
|
|
|||||||
State and political subdivision
|
14,235
|
|
|
801
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,048
|
|
|||||||
Total fixed maturity securities
|
$
|
258,568
|
|
|
$
|
90,193
|
|
|
$
|
14,434
|
|
|
$
|
9,607
|
|
|
$
|
1,379
|
|
|
$
|
85
|
|
|
$
|
374,266
|
|
Percentage of total
|
69.1
|
%
|
|
24.1
|
%
|
|
3.8
|
%
|
|
2.6
|
%
|
|
0.4
|
%
|
|
—
|
%
|
|
100.0
|
%
|
|
December 31,
|
||||||||||||
|
2013
|
|
2012
|
||||||||||
|
Estimated
Fair
Value
|
|
% of
Total
|
|
Estimated
Fair
Value
|
|
% of
Total
|
||||||
|
(In millions)
|
|
|
|
(In millions)
|
|
|
||||||
Corporate fixed maturity securities — by sector:
|
|
|
|
|
|
|
|
||||||
Foreign corporate (1)
|
$
|
63,152
|
|
|
37.2
|
%
|
|
$
|
67,184
|
|
|
37.1
|
%
|
U.S. corporate fixed maturity securities — by industry:
|
|
|
|
|
|
|
|
||||||
Consumer
|
27,953
|
|
|
16.5
|
|
|
29,852
|
|
|
16.4
|
|
||
Industrial
|
27,462
|
|
|
16.2
|
|
|
29,324
|
|
|
16.2
|
|
||
Finance
|
20,135
|
|
|
11.9
|
|
|
21,857
|
|
|
12.1
|
|
||
Utility
|
19,066
|
|
|
11.2
|
|
|
20,216
|
|
|
11.1
|
|
||
Communications
|
8,074
|
|
|
4.8
|
|
|
9,084
|
|
|
5.0
|
|
||
Other
|
3,779
|
|
|
2.2
|
|
|
3,793
|
|
|
2.1
|
|
||
Total
|
$
|
169,621
|
|
|
100.0
|
%
|
|
$
|
181,310
|
|
|
100.0
|
%
|
(1)
|
Includes both U.S. dollar and foreign denominated securities.
|
|
December 31,
|
||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||
|
Estimated
Fair
Value
|
|
% of
Total
|
|
Net
Unrealized
Gains (Losses)
|
|
Estimated
Fair
Value
|
|
% of
Total
|
|
Net
Unrealized
Gains (Losses)
|
||||||||||
|
(In millions)
|
|
|
|
(In millions)
|
|
(In millions)
|
|
|
|
(In millions)
|
||||||||||
By security type:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Collateralized mortgage obligations
|
$
|
19,046
|
|
|
54.3
|
%
|
|
$
|
705
|
|
|
$
|
20,567
|
|
|
54.9
|
%
|
|
$
|
889
|
|
Pass-through securities
|
16,009
|
|
|
45.7
|
|
|
183
|
|
|
16,912
|
|
|
45.1
|
|
|
924
|
|
||||
Total RMBS
|
$
|
35,055
|
|
|
100.0
|
%
|
|
$
|
888
|
|
|
$
|
37,479
|
|
|
100.0
|
%
|
|
$
|
1,813
|
|
By risk profile:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
$
|
23,686
|
|
|
67.6
|
%
|
|
$
|
762
|
|
|
$
|
26,369
|
|
|
70.4
|
%
|
|
$
|
1,944
|
|
Prime
|
2,935
|
|
|
8.4
|
|
|
71
|
|
|
4,206
|
|
|
11.2
|
|
|
101
|
|
||||
Alt-A
|
4,986
|
|
|
14.2
|
|
|
(25
|
)
|
|
4,950
|
|
|
13.2
|
|
|
(154
|
)
|
||||
Sub-prime
|
3,448
|
|
|
9.8
|
|
|
80
|
|
|
1,954
|
|
|
5.2
|
|
|
(78
|
)
|
||||
Total RMBS
|
$
|
35,055
|
|
|
100.0
|
%
|
|
$
|
888
|
|
|
$
|
37,479
|
|
|
100.0
|
%
|
|
$
|
1,813
|
|
Ratings profile:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Rated Aaa/AAA
|
$
|
24,764
|
|
|
70.6
|
%
|
|
|
|
$
|
26,555
|
|
|
70.9
|
%
|
|
|
||||
Rated NAIC 1
|
$
|
31,385
|
|
|
89.5
|
%
|
|
|
|
$
|
32,377
|
|
|
86.4
|
%
|
|
|
|
December 31, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Aaa
|
|
Aa
|
|
A
|
|
Baa
|
|
Below
Investment
Grade
|
|
Total
|
||||||||||||||||||||||||||||||||||||
|
Amortized
Cost
|
|
Estimated
Fair
Value
|
|
Amortized
Cost
|
|
Estimated
Fair
Value
|
|
Amortized
Cost
|
|
Estimated
Fair
Value
|
|
Amortized
Cost
|
|
Estimated
Fair
Value
|
|
Amortized
Cost
|
|
Estimated
Fair
Value
|
|
Amortized
Cost
|
|
Estimated
Fair
Value
|
||||||||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||||||||||||||||||
2003
|
$
|
65
|
|
|
$
|
71
|
|
|
$
|
15
|
|
|
$
|
15
|
|
|
$
|
28
|
|
|
$
|
28
|
|
|
$
|
28
|
|
|
$
|
29
|
|
|
$
|
15
|
|
|
$
|
15
|
|
|
$
|
151
|
|
|
$
|
158
|
|
2004
|
2,418
|
|
|
2,451
|
|
|
212
|
|
|
221
|
|
|
90
|
|
|
96
|
|
|
64
|
|
|
66
|
|
|
7
|
|
|
6
|
|
|
2,791
|
|
|
2,840
|
|
||||||||||||
2005
|
3,294
|
|
|
3,442
|
|
|
363
|
|
|
387
|
|
|
372
|
|
|
393
|
|
|
102
|
|
|
110
|
|
|
29
|
|
|
36
|
|
|
4,160
|
|
|
4,368
|
|
||||||||||||
2006
|
2,355
|
|
|
2,466
|
|
|
246
|
|
|
260
|
|
|
145
|
|
|
156
|
|
|
16
|
|
|
21
|
|
|
36
|
|
|
37
|
|
|
2,798
|
|
|
2,940
|
|
||||||||||||
2007
|
782
|
|
|
814
|
|
|
65
|
|
|
70
|
|
|
208
|
|
|
220
|
|
|
184
|
|
|
187
|
|
|
75
|
|
|
69
|
|
|
1,314
|
|
|
1,360
|
|
||||||||||||
2008 - 2010
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55
|
|
|
52
|
|
|
1
|
|
|
1
|
|
|
8
|
|
|
9
|
|
|
64
|
|
|
62
|
|
||||||||||||
2011
|
587
|
|
|
613
|
|
|
25
|
|
|
24
|
|
|
87
|
|
|
87
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
4
|
|
|
704
|
|
|
728
|
|
||||||||||||
2012
|
439
|
|
|
477
|
|
|
271
|
|
|
264
|
|
|
937
|
|
|
892
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
51
|
|
|
1,664
|
|
|
1,684
|
|
||||||||||||
2013
|
719
|
|
|
715
|
|
|
396
|
|
|
384
|
|
|
1,354
|
|
|
1,311
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,469
|
|
|
2,410
|
|
||||||||||||
Total
|
$
|
10,659
|
|
|
$
|
11,049
|
|
|
$
|
1,593
|
|
|
$
|
1,625
|
|
|
$
|
3,276
|
|
|
$
|
3,235
|
|
|
$
|
395
|
|
|
$
|
414
|
|
|
$
|
192
|
|
|
$
|
227
|
|
|
$
|
16,115
|
|
|
$
|
16,550
|
|
Ratings
Distribution
|
|
|
66.8
|
%
|
|
|
|
9.8
|
%
|
|
|
|
19.5
|
%
|
|
|
|
2.5
|
%
|
|
|
|
1.4
|
%
|
|
|
|
100.0
|
%
|
|
December 31, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Aaa
|
|
Aa
|
|
A
|
|
Baa
|
|
Below
Investment
Grade
|
|
Total
|
||||||||||||||||||||||||||||||||||||
|
Amortized
Cost
|
|
Estimated
Fair
Value
|
|
Amortized
Cost
|
|
Estimated
Fair
Value
|
|
Amortized
Cost
|
|
Estimated
Fair
Value
|
|
Amortized
Cost
|
|
Estimated
Fair
Value
|
|
Amortized
Cost
|
|
Estimated
Fair
Value
|
|
Amortized
Cost
|
|
Estimated
Fair
Value
|
||||||||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||||||||||||||||||
2003
|
$
|
2,957
|
|
|
$
|
2,997
|
|
|
$
|
113
|
|
|
$
|
114
|
|
|
$
|
82
|
|
|
$
|
82
|
|
|
$
|
37
|
|
|
$
|
36
|
|
|
$
|
33
|
|
|
$
|
33
|
|
|
$
|
3,222
|
|
|
$
|
3,262
|
|
2004
|
3,466
|
|
|
3,606
|
|
|
380
|
|
|
401
|
|
|
97
|
|
|
99
|
|
|
52
|
|
|
51
|
|
|
21
|
|
|
9
|
|
|
4,016
|
|
|
4,166
|
|
||||||||||||
2005
|
3,348
|
|
|
3,636
|
|
|
303
|
|
|
329
|
|
|
275
|
|
|
296
|
|
|
144
|
|
|
142
|
|
|
—
|
|
|
—
|
|
|
4,070
|
|
|
4,403
|
|
||||||||||||
2006
|
2,283
|
|
|
2,484
|
|
|
263
|
|
|
284
|
|
|
44
|
|
|
44
|
|
|
47
|
|
|
50
|
|
|
38
|
|
|
36
|
|
|
2,675
|
|
|
2,898
|
|
||||||||||||
2007
|
1,070
|
|
|
1,143
|
|
|
112
|
|
|
117
|
|
|
87
|
|
|
95
|
|
|
194
|
|
|
187
|
|
|
20
|
|
|
21
|
|
|
1,483
|
|
|
1,563
|
|
||||||||||||
2008 - 2010
|
2
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|
60
|
|
|
26
|
|
|
24
|
|
|
84
|
|
|
87
|
|
||||||||||||
2011
|
598
|
|
|
650
|
|
|
12
|
|
|
11
|
|
|
108
|
|
|
112
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
6
|
|
|
725
|
|
|
779
|
|
||||||||||||
2012
|
524
|
|
|
559
|
|
|
403
|
|
|
417
|
|
|
939
|
|
|
956
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
39
|
|
|
1,902
|
|
|
1,971
|
|
||||||||||||
Total
|
$
|
14,248
|
|
|
$
|
15,078
|
|
|
$
|
1,586
|
|
|
$
|
1,673
|
|
|
$
|
1,632
|
|
|
$
|
1,684
|
|
|
$
|
530
|
|
|
$
|
526
|
|
|
$
|
181
|
|
|
$
|
168
|
|
|
$
|
18,177
|
|
|
$
|
19,129
|
|
Ratings Distribution
|
|
|
78.8
|
%
|
|
|
|
8.7
|
%
|
|
|
|
8.8
|
%
|
|
|
|
2.8
|
%
|
|
|
|
0.9
|
%
|
|
|
|
100.0
|
%
|
|
December 31,
|
||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||
|
Estimated
Fair
Value
|
|
% of
Total
|
|
Net
Unrealized
Gains (Losses)
|
|
Estimated
Fair
Value
|
|
% of
Total
|
|
Net
Unrealized
Gains (Losses)
|
||||||||||
|
(In millions)
|
|
|
|
(In millions)
|
|
(In millions)
|
|
|
|
(In millions)
|
||||||||||
By collateral type:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign residential loans
|
$
|
3,415
|
|
|
21.9
|
%
|
|
$
|
80
|
|
|
$
|
3,811
|
|
|
23.8
|
%
|
|
$
|
88
|
|
Collateralized debt obligations
|
2,960
|
|
|
19.0
|
|
|
(6
|
)
|
|
2,453
|
|
|
15.3
|
|
|
(68
|
)
|
||||
Automobile loans
|
2,635
|
|
|
16.9
|
|
|
12
|
|
|
2,454
|
|
|
15.4
|
|
|
28
|
|
||||
Student loans
|
2,332
|
|
|
15.0
|
|
|
17
|
|
|
2,480
|
|
|
15.5
|
|
|
14
|
|
||||
Credit card loans
|
2,187
|
|
|
14.1
|
|
|
20
|
|
|
2,640
|
|
|
16.5
|
|
|
106
|
|
||||
Equipment loans
|
427
|
|
|
2.7
|
|
|
6
|
|
|
597
|
|
|
3.7
|
|
|
22
|
|
||||
Other loans
|
1,615
|
|
|
10.4
|
|
|
(16
|
)
|
|
1,562
|
|
|
9.8
|
|
|
45
|
|
||||
Total
|
$
|
15,571
|
|
|
100.0
|
%
|
|
$
|
113
|
|
|
$
|
15,997
|
|
|
100.0
|
%
|
|
$
|
235
|
|
Ratings profile:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Rated Aaa/AAA
|
$
|
9,616
|
|
|
61.8
|
%
|
|
|
|
$
|
10,405
|
|
|
65.0
|
%
|
|
|
||||
Rated NAIC 1
|
$
|
14,184
|
|
|
91.1
|
%
|
|
|
|
$
|
15,247
|
|
|
95.3
|
%
|
|
|
|
December 31,
|
||||||||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||||||||
|
Recorded
Investment |
|
% of
Total |
|
Valuation
Allowance |
|
% of
Recorded Investment |
|
Recorded
Investment |
|
% of
Total |
|
Valuation
Allowance |
|
% of
Recorded Investment |
||||||||||||
|
(Dollars in millions)
|
|
(Dollars in millions)
|
||||||||||||||||||||||||
Commercial
|
$
|
40,926
|
|
|
73.0
|
%
|
|
$
|
258
|
|
|
0.6
|
%
|
|
$
|
40,472
|
|
|
74.6
|
%
|
|
$
|
293
|
|
|
0.7
|
%
|
Agricultural
|
12,391
|
|
|
22.1
|
|
|
44
|
|
|
0.4
|
%
|
|
12,843
|
|
|
23.6
|
|
|
52
|
|
|
0.4
|
%
|
||||
Residential
|
2,772
|
|
|
4.9
|
|
|
20
|
|
|
0.7
|
%
|
|
958
|
|
|
1.8
|
|
|
2
|
|
|
0.2
|
%
|
||||
Total
|
$
|
56,089
|
|
|
100.0
|
%
|
|
$
|
322
|
|
|
0.6
|
%
|
|
$
|
54,273
|
|
|
100.0
|
%
|
|
$
|
347
|
|
|
0.6
|
%
|
|
December 31,
|
||||||||||||
|
2013
|
|
2012
|
||||||||||
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
||||||
|
(In millions)
|
|
|
|
(In millions)
|
|
|
||||||
Region:
|
|
|
|
|
|
|
|
||||||
Pacific
|
$
|
8,961
|
|
|
21.9
|
%
|
|
$
|
7,932
|
|
|
19.6
|
%
|
Middle Atlantic
|
7,367
|
|
|
18.0
|
|
|
6,780
|
|
|
16.7
|
|
||
South Atlantic
|
6,977
|
|
|
17.1
|
|
|
7,969
|
|
|
19.7
|
|
||
International
|
6,709
|
|
|
16.4
|
|
|
5,567
|
|
|
13.8
|
|
||
West South Central
|
3,619
|
|
|
8.8
|
|
|
3,436
|
|
|
8.5
|
|
||
East North Central
|
2,717
|
|
|
6.6
|
|
|
3,026
|
|
|
7.5
|
|
||
New England
|
1,404
|
|
|
3.4
|
|
|
1,489
|
|
|
3.7
|
|
||
Mountain
|
834
|
|
|
2.0
|
|
|
906
|
|
|
2.2
|
|
||
East South Central
|
471
|
|
|
1.2
|
|
|
457
|
|
|
1.1
|
|
||
West North Central
|
148
|
|
|
0.4
|
|
|
288
|
|
|
0.7
|
|
||
Multi-Region and Other
|
1,719
|
|
|
4.2
|
|
|
2,622
|
|
|
6.5
|
|
||
Total recorded investment
|
40,926
|
|
|
100.0
|
%
|
|
40,472
|
|
|
100.0
|
%
|
||
Less: valuation allowances
|
258
|
|
|
|
|
293
|
|
|
|
||||
Carrying value, net of valuation allowances
|
$
|
40,668
|
|
|
|
|
$
|
40,179
|
|
|
|
||
Property Type: (1)
|
|
|
|
|
|
|
|
||||||
Office
|
$
|
20,629
|
|
|
50.4
|
%
|
|
$
|
19,524
|
|
|
48.2
|
%
|
Retail
|
9,245
|
|
|
22.6
|
|
|
9,601
|
|
|
23.7
|
|
||
Hotel
|
4,219
|
|
|
10.3
|
|
|
3,555
|
|
|
8.8
|
|
||
Apartment
|
3,724
|
|
|
9.1
|
|
|
3,999
|
|
|
9.9
|
|
||
Industrial
|
2,897
|
|
|
7.1
|
|
|
3,159
|
|
|
7.8
|
|
||
Other
|
212
|
|
|
0.5
|
|
|
634
|
|
|
1.6
|
|
||
Total recorded investment
|
40,926
|
|
|
100.0
|
%
|
|
40,472
|
|
|
100.0
|
%
|
||
Less: valuation allowances
|
258
|
|
|
|
|
293
|
|
|
|
||||
Carrying value, net of valuation allowances
|
$
|
40,668
|
|
|
|
|
$
|
40,179
|
|
|
|
(1)
|
Commercial mortgage loans by property type amounts for the prior period have been reclassified to conform to the current period method of classifying loans collateralized by mixed-used properties according to the predominant property type.
|
|
December 31,
|
||||||||||||
|
2013
|
|
2012
|
||||||||||
|
Carrying
Value
|
|
% of
Total
|
|
Carrying
Value
|
|
% of
Total
|
||||||
|
(In millions)
|
|
|
|
(In millions)
|
|
|
||||||
Traditional
|
$
|
9,312
|
|
|
86.9
|
%
|
|
$
|
8,488
|
|
|
85.6
|
%
|
Real estate joint ventures and funds
|
769
|
|
|
7.2
|
|
|
941
|
|
|
9.5
|
|
||
Subtotal
|
10,081
|
|
|
94.1
|
|
|
9,429
|
|
|
95.1
|
|
||
Foreclosed (commercial, agricultural and residential)
|
445
|
|
|
4.2
|
|
|
488
|
|
|
4.9
|
|
||
Real estate held-for-investment
|
10,526
|
|
|
98.3
|
|
|
9,917
|
|
|
100.0
|
|
||
Real estate held-for-sale
|
186
|
|
|
1.7
|
|
|
1
|
|
|
—
|
|
||
Total real estate and real estate joint ventures
|
$
|
10,712
|
|
|
100.0
|
%
|
|
$
|
9,918
|
|
|
100.0
|
%
|
|
December 31,
|
||||||||||||
|
2013
|
|
2012
|
||||||||||
|
Carrying
Value
|
|
% of
Total
|
|
Carrying
Value
|
|
% of
Total
|
||||||
|
(In millions)
|
|
|
|
(In millions)
|
|
|
||||||
Office
|
$
|
5,440
|
|
|
50.8
|
%
|
|
$
|
5,789
|
|
|
58.4
|
%
|
Apartment
|
2,176
|
|
|
20.3
|
|
|
1,717
|
|
|
17.3
|
|
||
Industrial
|
696
|
|
|
6.5
|
|
|
598
|
|
|
6.0
|
|
||
Retail
|
684
|
|
|
6.4
|
|
|
416
|
|
|
4.2
|
|
||
Hotel
|
429
|
|
|
4.0
|
|
|
372
|
|
|
3.7
|
|
||
Real estate investment funds
|
394
|
|
|
3.7
|
|
|
451
|
|
|
4.6
|
|
||
Land
|
333
|
|
|
3.1
|
|
|
265
|
|
|
2.7
|
|
||
Agriculture
|
35
|
|
|
0.3
|
|
|
8
|
|
|
0.1
|
|
||
Other
|
525
|
|
|
4.9
|
|
|
302
|
|
|
3.0
|
|
||
Total real estate and real estate joint ventures
|
$
|
10,712
|
|
|
100.0
|
%
|
|
$
|
9,918
|
|
|
100.0
|
%
|
|
December 31,
|
|||||||||||||
|
2013
|
|
2012
|
|||||||||||
|
Carrying
Value
|
|
% of
Total
|
|
Carrying
Value
|
|
% of
Total
|
|||||||
|
(In millions)
|
|
|
|
(In millions)
|
|
|
|||||||
Freestanding derivatives with positive estimated fair values
|
$
|
8,595
|
|
|
53.0
|
%
|
|
$
|
13,777
|
|
|
65.2
|
%
|
|
Tax credit and renewable energy partnerships
|
2,657
|
|
|
16.3
|
|
|
2,268
|
|
|
10.7
|
|
|||
Leveraged leases, net of non-recourse debt
|
1,946
|
|
|
12.0
|
|
|
1,998
|
|
|
9.4
|
|
|||
Funds withheld
|
649
|
|
|
4.0
|
|
|
641
|
|
|
3.0
|
|
|||
Joint venture investments
|
113
|
|
|
0.7
|
|
|
180
|
|
|
0.9
|
|
|||
Other
|
2,269
|
|
|
14.0
|
|
|
2,281
|
|
|
10.8
|
|
|||
Total
|
$
|
16,229
|
|
|
100.0
|
%
|
|
$
|
21,145
|
|
|
100.0
|
%
|
•
|
A comprehensive description of the nature of our derivatives, including the strategies for which derivatives are used in managing various risks.
|
•
|
Information about the notional amount, estimated fair value, and primary underlying risk exposure of our derivatives by type of hedge designation, excluding embedded derivatives held at
December 31, 2013
and
2012
.
|
•
|
The statement of operations effects of derivatives in cash flow, fair value, or non-qualifying hedge relationships for the
years ended December 31, 2013
and
2012
.
|
|
|
December 31, 2013
|
|
December 31, 2012
|
||||||||||||
Credit Default Swaps
|
|
Notional
Amount
|
|
Estimated
Fair Value
|
|
Notional
Amount
|
|
Estimated
Fair Value
|
||||||||
|
|
(In millions)
|
||||||||||||||
Purchased (1)
|
|
$
|
3,725
|
|
|
$
|
(44
|
)
|
|
$
|
3,674
|
|
|
$
|
(23
|
)
|
Written (2)
|
|
9,055
|
|
|
165
|
|
|
8,879
|
|
|
74
|
|
||||
Total
|
|
$
|
12,780
|
|
|
$
|
121
|
|
|
$
|
12,553
|
|
|
$
|
51
|
|
(1)
|
The notional amount and estimated fair value for purchased credit default swaps in the trading portfolio were $355 million and (
$10)
million, respectively, at
December 31, 2013
and $380 million and ($1) million, respectively, at
December 31, 2012
.
|
(2)
|
The notional amount and estimated fair value for written credit default swaps in the trading portfolio were $10 million and $0, respectively, at both
December 31, 2013
and
2012
.
|
|
|
Years Ended December 31,
|
||||||||||||||||||||||
|
|
2013
|
|
2012
|
||||||||||||||||||||
Credit Default Swaps
|
|
Gross
Gains
(1)
|
|
Gross
Losses
(1)
|
|
Net
Gains
(Losses)
|
|
Gross
Gains
(1)
|
|
Gross
Losses
(1)
|
|
Net
Gains
(Losses)
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Purchased (2), (4)
|
|
$
|
13
|
|
|
$
|
(48
|
)
|
|
$
|
(35
|
)
|
|
$
|
9
|
|
|
$
|
(321
|
)
|
|
$
|
(312
|
)
|
Written (3), (4)
|
|
157
|
|
|
(26
|
)
|
|
131
|
|
|
158
|
|
|
(8
|
)
|
|
150
|
|
||||||
Total
|
|
$
|
170
|
|
|
$
|
(74
|
)
|
|
$
|
96
|
|
|
$
|
167
|
|
|
$
|
(329
|
)
|
|
$
|
(162
|
)
|
(1)
|
Gains (losses) are reported in net derivative gains (losses), except for gains (losses) on the trading portfolio, which are reported in net investment income.
|
(2)
|
The gross gains and gross (losses) for purchased credit default swaps in the trading portfolio were $2 million and ($16) million, respectively, for the
year ended December 31, 2013
and $7 million and ($21) million, respectively, for the
year ended December 31, 2012
.
|
(3)
|
The gross gains and gross (losses) for written credit default swaps in the trading portfolio were $1 million and $0, respectively, for the
year ended December 31, 2013
. The gross gains and gross (losses) for written credit default swaps in the trading portfolio were not significant for the year ended December 31, 2012.
|
(4)
|
Gains (losses) do not include earned income (expense) on credit default swaps.
|
|
December 31, 2013
|
||||||
Guaranteed Minimum Crediting Rate
|
Account
Value (1)
|
|
Account Value at Guarantee (1)
|
||||
|
(In millions)
|
||||||
Life & Other:
|
|
|
|
||||
Greater than 0% but less than 2%
|
$
|
100
|
|
|
$
|
100
|
|
Equal to 2% but less than 4%
|
$
|
11,402
|
|
|
$
|
4,776
|
|
Equal to or greater than 4%
|
$
|
10,793
|
|
|
$
|
6,428
|
|
Annuities:
|
|
|
|
||||
Greater than 0% but less than 2%
|
$
|
3,372
|
|
|
$
|
2,249
|
|
Equal to 2% but less than 4%
|
$
|
33,448
|
|
|
$
|
26,523
|
|
Equal to or greater than 4%
|
$
|
2,689
|
|
|
$
|
2,640
|
|
(1)
|
These amounts are not adjusted for policy loans.
|
|
December 31, 2013
|
||||||
Guaranteed Minimum Crediting Rate
|
Account
Value (1)
|
|
Account
Value at Guarantee (1)
|
||||
|
(In millions)
|
||||||
Greater than 0% but less than 2%
|
$
|
5,043
|
|
|
$
|
5,043
|
|
Equal to 2% but less than 4%
|
$
|
2,271
|
|
|
$
|
2,253
|
|
Equal to or greater than 4%
|
$
|
627
|
|
|
$
|
600
|
|
(1)
|
These amounts are not adjusted for policy loans.
|
|
December 31, 2013
|
||||||
Guaranteed Minimum Crediting Rate
(1)
|
Account
Value (2)
|
|
Account
Value at
Guarantee (2)
|
||||
|
(In millions)
|
||||||
Annuities:
|
|
|
|
||||
Greater than 0% but less than 2%
|
$
|
27,213
|
|
|
$
|
1,217
|
|
Equal to 2% but less than 4%
|
$
|
1,061
|
|
|
$
|
412
|
|
Equal to or greater than 4%
|
$
|
2
|
|
|
$
|
2
|
|
Life & Other:
|
|
|
|
||||
Greater than 0% but less than 2%
|
$
|
5,977
|
|
|
$
|
4,885
|
|
Equal to 2% but less than 4%
|
$
|
16,519
|
|
|
$
|
8,741
|
|
Equal to or greater than 4%
|
$
|
258
|
|
|
$
|
—
|
|
(1)
|
Excludes negative VOBA liabilities of $2.2 billion at December 31,
2013
, primarily held in Japan. These liabilities were established in instances where the estimated fair value of contract obligations exceeded the book value of assumed insurance policy liabilities in the ALICO Acquisition. These negative liabilities were established primarily for decreased market interest rates subsequent to the issuance of the policy contracts.
|
(2)
|
These amounts are not adjusted for policy loans.
|
|
|||||||||||||||
|
Future Policy
Benefits (1)
|
|
Policyholder
Account Balances (1)
|
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
(In millions)
|
||||||||||||||
Americas:
|
|
|
|
|
|
|
|
||||||||
GMDB
|
$
|
495
|
|
|
$
|
343
|
|
|
$
|
—
|
|
|
$
|
—
|
|
GMIB
|
1,608
|
|
|
1,432
|
|
|
(1,904
|
)
|
|
200
|
|
||||
GMAB
|
—
|
|
|
—
|
|
|
2
|
|
|
23
|
|
||||
GMWB
|
62
|
|
|
30
|
|
|
(441
|
)
|
|
428
|
|
||||
Asia:
|
|
|
|
|
|
|
|
||||||||
GMDB
|
33
|
|
|
54
|
|
|
—
|
|
|
—
|
|
||||
GMAB
|
—
|
|
|
—
|
|
|
3
|
|
|
11
|
|
||||
GMWB
|
204
|
|
|
183
|
|
|
129
|
|
|
190
|
|
||||
EMEA:
|
|
|
|
|
|
|
|
||||||||
GMDB
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
|
||||
GMAB
|
—
|
|
|
—
|
|
|
11
|
|
|
28
|
|
||||
GMWB
|
19
|
|
|
20
|
|
|
(102
|
)
|
|
43
|
|
||||
Corporate & Other:
|
|
|
|
|
|
|
|
||||||||
GMDB
|
11
|
|
|
39
|
|
|
—
|
|
|
—
|
|
||||
GMAB
|
—
|
|
|
—
|
|
|
83
|
|
|
387
|
|
||||
GMWB
|
109
|
|
|
95
|
|
|
1,179
|
|
|
2,195
|
|
||||
Total
|
$
|
2,547
|
|
|
$
|
2,202
|
|
|
$
|
(1,040
|
)
|
|
$
|
3,505
|
|
(1)
|
GMDB in the table above includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death.
|
|
Total Contract Account Value (1)
|
||||||
|
Americas
|
|
Corporate
& Other
|
||||
|
(In millions)
|
||||||
Return of premium or five to seven year step-up
|
$
|
105,940
|
|
|
$
|
15,660
|
|
Annual step-up
|
32,346
|
|
|
—
|
|
||
Roll-up and step-up combination
|
39,638
|
|
|
—
|
|
||
Total
|
$
|
177,924
|
|
|
$
|
15,660
|
|
(1)
|
Total contract account value excludes $2.2 billion for contracts with no GMDBs and approximately $11.9 billion of total contract account value in the EMEA and Asia segments.
|
|
Total Contract Account Value (1)
|
||||||
|
Americas
|
|
Corporate
& Other
|
||||
|
(In millions)
|
||||||
GMIB
|
$
|
99,140
|
|
|
$
|
—
|
|
GMWB - non-life contingent
|
7,329
|
|
|
3,831
|
|
||
GMWB - life-contingent
|
20,040
|
|
|
9,894
|
|
||
GMAB
|
369
|
|
|
1,935
|
|
||
|
$
|
126,878
|
|
|
$
|
15,660
|
|
(1)
|
Total contract account value above excludes $53.3 billion for contracts with no living benefit guarantees and approximately $9.1 billion of total contract account value in the EMEA and Asia segments.
|
|
Total Contract
Account Value
|
||
|
(In millions)
|
||
7-year setback, 2.5% interest rate
|
$
|
37,569
|
|
7-year setback, 1.5% interest rate
|
6,177
|
|
|
10-year setback, 1.5% interest rate
|
20,382
|
|
|
10-year mortality projection, 10-year setback, 1.0% interest rate
|
30,500
|
|
|
10-year mortality projection, 10-year setback, 0.5% interest rate
|
4,512
|
|
|
|
$
|
99,140
|
|
|
In-the-Moneyness
|
|
Total Contract
Account Value
|
|
% of Total
|
|||
|
|
|
(In millions)
|
|
|
|||
In-the-money
|
30% +
|
|
$
|
722
|
|
|
0.8
|
%
|
|
20% to 30%
|
|
611
|
|
|
0.6
|
%
|
|
|
10% to 20%
|
|
1,326
|
|
|
1.3
|
%
|
|
|
0% to 10%
|
|
3,281
|
|
|
3.3
|
%
|
|
|
|
|
5,940
|
|
|
|
||
Out-of-the-money
|
-10% to 0%
|
|
7,098
|
|
|
7.2
|
%
|
|
|
-20% to 10%
|
|
11,819
|
|
|
11.9
|
%
|
|
|
-20% +
|
|
74,283
|
|
|
74.9
|
%
|
|
|
|
|
93,200
|
|
|
|
||
Total GMIBs
|
|
|
$
|
99,140
|
|
|
|
|
|
|
|
December 31,
|
||||||||||||||||||||||
|
|
|
|
2013
|
|
2012
|
||||||||||||||||||||
Primary Underlying Risk Exposure
|
|
|
|
Notional
|
|
Estimated Fair Value
|
|
Notional
|
|
Estimated Fair Value
|
||||||||||||||||
|
Instrument Type
|
|
Amount
|
|
Assets
|
|
Liabilities
|
|
Amount
|
|
Assets
|
|
Liabilities
|
|||||||||||||
|
|
|
|
(In millions)
|
||||||||||||||||||||||
Interest rate
|
|
Interest rate swaps
|
|
$
|
25,474
|
|
|
$
|
1,108
|
|
|
$
|
669
|
|
|
$
|
24,041
|
|
|
$
|
1,973
|
|
|
$
|
614
|
|
|
|
Interest rate futures
|
|
5,888
|
|
|
9
|
|
|
9
|
|
|
8,913
|
|
|
1
|
|
|
25
|
|
||||||
|
|
Interest rate options
|
|
17,690
|
|
|
131
|
|
|
236
|
|
|
11,440
|
|
|
303
|
|
|
58
|
|
||||||
Foreign currency exchange rate
|
|
Foreign currency forwards
|
|
2,324
|
|
|
1
|
|
|
171
|
|
|
2,281
|
|
|
1
|
|
|
177
|
|
||||||
|
|
Foreign currency futures
|
|
365
|
|
|
1
|
|
|
1
|
|
|
518
|
|
|
4
|
|
|
—
|
|
||||||
Equity market
|
|
Equity futures
|
|
5,144
|
|
|
1
|
|
|
43
|
|
|
6,993
|
|
|
14
|
|
|
132
|
|
||||||
|
|
Equity options
|
|
35,445
|
|
|
1,344
|
|
|
1,068
|
|
|
21,759
|
|
|
2,824
|
|
|
356
|
|
||||||
|
|
Variance swaps
|
|
21,636
|
|
|
174
|
|
|
577
|
|
|
19,830
|
|
|
122
|
|
|
310
|
|
||||||
|
|
Total rate of return swaps
|
|
3,802
|
|
|
—
|
|
|
179
|
|
|
3,092
|
|
|
5
|
|
|
103
|
|
||||||
|
|
Total
|
|
$
|
117,768
|
|
|
$
|
2,769
|
|
|
$
|
2,953
|
|
|
$
|
98,867
|
|
|
$
|
5,247
|
|
|
$
|
1,775
|
|
•
|
reducing new sales of insurance products, annuities and investment products;
|
•
|
adversely affecting our relationships with our sales force and independent sales intermediaries;
|
•
|
materially increasing the number or amount of policy surrenders and withdrawals by contractholders and policyholders;
|
•
|
requiring us to post additional collateral under certain of our financing and derivative transactions;
|
•
|
requiring us to reduce prices for our products and services to remain competitive; and
|
•
|
adversely affecting our ability to obtain reinsurance at reasonable prices or at all.
|
•
|
impact our ability to generate cash flows from the sale of funding agreements and other capital market products offered by our Corporate Benefit Funding segment;
|
•
|
impact the cost and availability of financing for MetLife, Inc. and its subsidiaries; and
|
•
|
result in additional collateral requirements or other required payments under certain agreements, which are eligible to be satisfied in cash or by posting investments held by the subsidiaries subject to the agreements. See “— Liquidity and Capital Uses — Pledged Collateral.”
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Sources:
|
|
|
|
|
|
||||||
Net cash provided by operating activities
|
$
|
16,131
|
|
|
$
|
17,160
|
|
|
$
|
10,273
|
|
Net cash provided by changes in policyholder account balances
|
—
|
|
|
4,290
|
|
|
4,321
|
|
|||
Net cash provided by changes in payables for collateral under securities loaned and other transactions
|
—
|
|
|
—
|
|
|
6,444
|
|
|||
Net cash provided by changes in bank deposits
|
8
|
|
|
—
|
|
|
96
|
|
|||
Net cash provided by short-term debt issuances
|
75
|
|
|
—
|
|
|
380
|
|
|||
Long-term debt issued
|
1,372
|
|
|
750
|
|
|
1,346
|
|
|||
Cash received in connection with collateral financing arrangements, net
|
—
|
|
|
—
|
|
|
37
|
|
|||
Net change in liability for securitized reverse residential mortgage loans
|
—
|
|
|
1,198
|
|
|
—
|
|
|||
Cash received in connection with redeemable noncontrolling interests
|
774
|
|
|
—
|
|
|
—
|
|
|||
Common stock issued, net of issuance costs
|
1,000
|
|
|
1,000
|
|
|
2,950
|
|
|||
Net cash provided by other, net
|
—
|
|
|
609
|
|
|
212
|
|
|||
Effect of change in foreign currency exchange rates on cash and cash equivalents balances
|
—
|
|
|
11
|
|
|
—
|
|
|||
Total sources
|
19,360
|
|
|
25,018
|
|
|
26,059
|
|
|||
Uses:
|
|
|
|
|
|
||||||
Net cash used in investing activities
|
15,165
|
|
|
11,929
|
|
|
22,218
|
|
|||
Net cash used for changes in policyholder account balances
|
5,681
|
|
|
—
|
|
|
—
|
|
|||
Net cash used for changes in payables for collateral under securities loaned and other transactions
|
3,276
|
|
|
29
|
|
|
—
|
|
|||
Net cash used for changes in bank deposits
|
—
|
|
|
4,169
|
|
|
—
|
|
|||
Net cash used for short-term debt repayments
|
—
|
|
|
586
|
|
|
—
|
|
|||
Long-term debt repaid
|
1,746
|
|
|
1,702
|
|
|
2,042
|
|
|||
Collateral financing arrangements repaid
|
—
|
|
|
349
|
|
|
502
|
|
|||
Cash paid in connection with collateral financing arrangements
|
—
|
|
|
44
|
|
|
—
|
|
|||
Redemption of convertible preferred stock
|
—
|
|
|
—
|
|
|
2,805
|
|
|||
Preferred stock redemption premium
|
—
|
|
|
—
|
|
|
146
|
|
|||
Dividends on preferred stock
|
122
|
|
|
122
|
|
|
122
|
|
|||
Dividends on common stock
|
1,119
|
|
|
811
|
|
|
787
|
|
|||
Net cash used in other, net
|
192
|
|
|
—
|
|
|
—
|
|
|||
Effect of change in foreign currency exchange rates on cash and cash equivalents balances
|
212
|
|
|
—
|
|
|
22
|
|
|||
Total uses
|
27,513
|
|
|
19,741
|
|
|
28,644
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
$
|
(8,153
|
)
|
|
$
|
5,277
|
|
|
$
|
(2,585
|
)
|
•
|
In November 2013, MetLife, Inc. issued $1.0 billion of senior notes for general corporate purposes, which include repayment of certain senior notes upon their maturity in 2014;
|
•
|
In August 2012, MetLife, Inc. issued $750 million of senior notes for general corporate purposes, which include repayment of certain senior notes upon their maturity in 2013;
|
•
|
During the year ended December 31,
2011
, MetLife Bank received advances related to long-term borrowings totaling $1.3 billion, and during the years ended December 31,
2012
and
2011
, MetLife Bank received advances related to short-term borrowings totaling $150 million and $10.1 billion, respectively, from the FHLB of New York (“FHLB of NY”).
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(In millions)
|
||||||
Short-term debt
|
$
|
175
|
|
|
$
|
100
|
|
Long-term debt (1)
|
$
|
17,198
|
|
|
$
|
16,535
|
|
Collateral financing arrangements (2)
|
$
|
4,196
|
|
|
$
|
4,196
|
|
Junior subordinated debt securities (2)
|
$
|
3,193
|
|
|
$
|
3,192
|
|
(1)
|
Excludes $1.5 billion and $2.5 billion at December 31,
2013
and
2012
, respectively, of long-term debt relating to CSEs — FVO (see Note
8
of the Notes to the Consolidated Financial Statements). For more information regarding long-term debt, see Note
12
of the Notes to the Consolidated Financial Statements.
|
(2)
|
For information regarding prior issuances of collateral financing arrangements and junior subordinated debt securities, see Notes
13
and
14
of the Notes to the Consolidated Financial Statements, respectively.
|
•
|
In November and August 2013, MetLife, Inc. repaid at maturity its $500 million and $250 million senior notes, respectively;
|
•
|
In June and December 2012, MetLife, Inc. repaid at maturity its $397 million and $400 million senior notes, respectively;
|
•
|
In December 2011, MetLife, Inc. repaid at maturity its $750 million senior note;
|
•
|
During the years ended December 31,
2012
and
2011
, MetLife Bank made to the FHLB of NY long-term debt repayments of $374 million and $750 million, and short-term debt repayments of $735 million and $9.7 billion, respectively; and
|
•
|
In June 2012 and December 2011, following regulatory approval, MetLife Reinsurance Company of Charleston, a wholly-owned subsidiary of MetLife, Inc., repurchased and canceled $451 million and $650 million, respectively, in aggregate principal amounts of surplus notes.
|
|
Total
|
|
One Year
or Less
|
|
More than
One Year to
Three Years
|
|
More than
Three Years
to Five Years
|
|
More than Five Years
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Insurance liabilities
|
$
|
347,807
|
|
|
$
|
17,779
|
|
|
$
|
13,341
|
|
|
$
|
15,285
|
|
|
$
|
301,402
|
|
Policyholder account balances
|
294,016
|
|
|
35,547
|
|
|
41,475
|
|
|
27,889
|
|
|
189,105
|
|
|||||
Payables for collateral under securities loaned and other transactions
|
30,411
|
|
|
30,411
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Debt
|
42,237
|
|
|
2,724
|
|
|
4,629
|
|
|
3,987
|
|
|
30,897
|
|
|||||
Investment commitments
|
8,651
|
|
|
8,458
|
|
|
193
|
|
|
—
|
|
|
—
|
|
|||||
Operating leases
|
1,765
|
|
|
264
|
|
|
402
|
|
|
300
|
|
|
799
|
|
|||||
Other
|
18,040
|
|
|
17,576
|
|
|
—
|
|
|
—
|
|
|
464
|
|
|||||
Total
|
$
|
742,927
|
|
|
$
|
112,759
|
|
|
$
|
60,040
|
|
|
$
|
47,461
|
|
|
$
|
522,667
|
|
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|||||||||||||||||||||||
Company
|
|
Permitted w/o Approval (1)
|
|
Paid (2)
|
|
|
Permitted w/o Approval (3)
|
|
Paid (2)
|
|
|
Permitted w/o Approval (3)
|
|
Paid (2)
|
|
|
Permitted w/o Approval (3)
|
||||||||||||||
|
|
(In millions)
|
|||||||||||||||||||||||||||||
Metropolitan Life Insurance Company
|
|
$
|
1,116
|
|
|
$
|
1,428
|
|
|
|
$
|
1,428
|
|
|
$
|
1,023
|
|
|
|
$
|
1,350
|
|
|
$
|
1,321
|
|
(4)
|
|
$
|
1,321
|
|
American Life Insurance Company
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
$
|
523
|
|
|
$
|
1,300
|
|
(5)
|
|
$
|
168
|
|
|
$
|
661
|
|
|
|
$
|
661
|
|
MetLife Insurance Company of Connecticut
|
|
$
|
1,061
|
|
|
$
|
1,000
|
|
|
|
$
|
1,330
|
|
|
$
|
706
|
|
(6)
|
|
$
|
504
|
|
|
$
|
517
|
|
|
|
$
|
517
|
|
Metropolitan Property and Casualty Insurance Company
|
|
$
|
218
|
|
|
$
|
100
|
|
|
|
$
|
74
|
|
|
$
|
100
|
|
|
|
$
|
—
|
|
|
$
|
30
|
|
|
|
$
|
—
|
|
Metropolitan Tower Life Insurance Company
|
|
$
|
73
|
|
|
$
|
109
|
|
(7)
|
|
$
|
77
|
|
|
$
|
82
|
|
|
|
$
|
82
|
|
|
$
|
80
|
|
|
|
$
|
80
|
|
MetLife Investors Insurance Company
|
|
$
|
99
|
|
|
$
|
129
|
|
|
|
$
|
129
|
|
|
$
|
18
|
|
|
|
$
|
18
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
Delaware American Life Insurance Company
|
|
$
|
16
|
|
|
$
|
—
|
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
|
$
|
12
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
(1)
|
Reflects dividend amounts that may be paid during
2014
without prior regulatory approval. However, because dividend tests may be based on dividends previously paid over rolling 12-month periods, if paid before a specified date during 2014, some or all of such dividends may require regulatory approval.
|
(2)
|
Reflects all amounts paid, including those requiring regulatory approval.
|
(3)
|
Reflects dividend amounts that could have been paid during the relevant year without prior regulatory approval.
|
(4)
|
Includes securities transferred to MetLife, Inc. of $170 million during the year ended December 31,
2011
.
|
(5)
|
During May 2012, American Life received regulatory approval to pay an extraordinary dividend for an amount up to the funds remitted in connection with the restructuring of American Life’s business in Japan. Subsequently, $1.5 billion was remitted to American Life. See Note 3 of the Notes to the Consolidated Financial Statements. Of this approved amount, $1.3 billion was paid to MetLife, Inc., as an extraordinary dividend.
|
(6)
|
During June 2012, MICC distributed shares of an affiliate to its stockholders as an in-kind extraordinary dividend of $202 million, as calculated on a statutory basis. Regulatory approval for this extraordinary dividend was obtained due to the timing of payment. During December 2012, MICC paid a dividend to its stockholders in the amount of $504 million, which represented its ordinary dividend capacity at December 31, 2012. Due to the June 2012 in-kind dividend, a portion of this was extraordinary and regulatory approval was obtained.
|
(7)
|
During October 2013, Metropolitan Tower Life Insurance Company (“MTL”) distributed shares of an affiliate to MetLife, Inc. as an in-kind dividend of $32 million. Also during October 2013, MTL paid a dividend to MetLife, Inc. in the amount of $77 million in cash, which represented its dividend capacity without regulatory approval at December 31, 2013. Regulatory approval for these dividends was obtained due to the amount and timing of the payments.
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(In millions)
|
||||||
Long-term debt — unaffiliated
|
$
|
15,938
|
|
|
$
|
15,669
|
|
Long-term debt — affiliated (1), (2), (3), (4)
|
$
|
3,600
|
|
|
$
|
3,250
|
|
Collateral financing arrangements
|
$
|
2,797
|
|
|
$
|
2,797
|
|
Junior subordinated debt securities
|
$
|
1,748
|
|
|
$
|
1,748
|
|
(1)
|
In December 2013, MetLife, Inc. issued a $350 million senior note to MetLife Reinsurance Company of Delaware (“MRD”) due December 2033. The senior note bears interest at a fixed rate of 5.10%, payable semi-annually. MRD issued a $350 million surplus note to MetLife, Inc. in exchange for the senior note.
|
(2)
|
In December 2012, $1.25 billion of senior notes issued by Exeter, a subsidiary, payable to affiliates and comprised of three notes, were reassigned to MetLife, Inc. MetLife, Inc. received $1.25 billion of preferred stock of Exeter in exchange for the assumption of this affiliated debt. A $250 million senior note matures on September 30, 2016 and bears interest at a fixed rate of 7.44%, payable semi-annually. A $500 million senior note matures on July 15, 2021 and bears interest at a fixed rate of 5.64%, payable semi-annually. A $500 million senior note matures on December 16, 2021 and bears interest at a fixed rate of 5.86%, payable semi-annually.
|
(3)
|
In December 2012, MetLife, Inc. issued a $750 million senior note to MRD due September 30, 2032. The senior note bears interest at a fixed rate of 4.21%, payable semi-annually. MRD issued a $750 million surplus note to MetLife, Inc. in exchange for the senior note.
|
(4)
|
In September 2012, $750 million of senior notes issued by Exeter payable to MLIC, were reassigned to MetLife, Inc. MetLife, Inc. received $750 million of preferred stock of Exeter in exchange for the assumption of this affiliated debt. On September 30, 2012, $250 million of the assumed senior notes matured and, subsequently, in October 2012, a $250 million senior note was issued by MetLife, Inc. to MLIC. The $250 million senior note matures on October 1, 2019 and bears interest at a fixed rate of 3.57%, payable semi-annually. The remaining $500 million senior note matures on June 30, 2014 and bears interest at a fixed rate of 6.44%, payable semi-annually.
|
Year of Maturity
|
|
Principal
|
|
Interest Rate
|
||
|
|
(In millions)
|
|
|
||
2014
|
|
$
|
1,000
|
|
|
2.38%
|
2014
|
|
$
|
350
|
|
|
5.50%
|
2014
|
|
$
|
500
|
|
|
6.44%
|
2015
|
|
$
|
1,000
|
|
|
5.00%
|
2016
|
|
$
|
1,250
|
|
|
6.75%
|
2016
|
|
$
|
250
|
|
|
7.44%
|
2017
|
|
$
|
500
|
|
|
1.76%
|
2018
|
|
$
|
500
|
|
|
2.46%
|
2018
|
|
$
|
1,035
|
|
|
6.82%
|
2019 - 2045
|
|
$
|
12,677
|
|
|
Ranging from 2.46% - 7.72
|
•
|
Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity GMIB fees (“GMIB Fees”);
|
•
|
Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment, (ii) includes income from discontinued real estate operations, (iii) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iv) excludes certain amounts related to contractholder-directed unit-linked investments, and (v) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and
|
•
|
Other revenues are adjusted for settlements of foreign currency earnings hedges.
|
•
|
Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative gains (losses), (ii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass through adjustments (iii) benefits and hedging costs related to GMIBs (“GMIB Costs”), and (iv) market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”);
|
•
|
Interest credited to policyholder account balances includes adjustments for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of PABs but do not qualify for hedge accounting treatment and excludes amounts related to net investment income earned on contractholder-directed unit-linked investments;
|
•
|
Amortization of DAC and VOBA excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB Fees and GMIB Costs, and (iii) Market Value Adjustments;
|
•
|
Amortization of negative VOBA excludes amounts related to Market Value Adjustments;
|
•
|
Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and
|
•
|
Other expenses excludes costs related to: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements, and (iii) acquisition and integration costs.
|
•
|
implementing a corporate risk framework, which outlines our enterprise approach for managing risk;
|
•
|
developing policies and procedures for managing, measuring, monitoring and controlling those risks identified in the corporate risk framework;
|
•
|
establishing appropriate corporate risk tolerance levels;
|
•
|
deploying capital on an economic basis;
|
•
|
recommending capital allocations on an economic capital basis; and
|
•
|
reporting to (i) the Finance and Risk Committee of MetLife, Inc.’s Board of Directors; (ii) the Investment Committee of MLIC’s Board of Directors, which assists MetLife, Inc.’s Board of Directors in overseeing certain investment activities of the enterprise; and (iii) the financial and non-financial senior management committees on various aspects of risk.
|
•
|
The Foreign Exchange Committee, in coordination with the Treasury Department, is responsible for managing our exposure to investments in foreign subsidiaries. Limits to exposures are established by the Treasury Department and monitored by GRM. The Investments Department manages exposure.
|
•
|
The Investments Department is responsible for managing the exposure to foreign currency denominated investments. Exposure limits to unhedged foreign currency investments are incorporated into the standing authorizations granted to management by the Board of Directors and are reported to the Board of Directors on a periodic basis.
|
•
|
Management of each of the Company’s segments, with oversight from the Foreign Exchange Committee, is responsible for establishing limits and managing any foreign currency exchange rate exposure caused by the sale or issuance of insurance products.
|
•
|
Risks Related to Living Guarantee Benefits — We use a wide range of derivative contracts to mitigate the risk associated with variable annuity living guarantee benefits. These derivatives include equity and interest rate futures, interest rate swaps, currency futures/forwards, equity indexed options and interest rate option contracts and equity variance swaps.
|
•
|
Minimum Interest Rate Guarantees — For certain liability contracts, we provide the contractholder a guaranteed minimum interest rate. These contracts include certain fixed annuities and other insurance liabilities. We purchase interest rate floors to reduce risk associated with these liability guarantees.
|
•
|
Reinvestment Risk in Long Duration Liability Contracts — Derivatives are used to hedge interest rate risk related to certain long duration liability contracts. Hedges include interest rate swaps and swaptions.
|
•
|
Foreign Currency Exchange Rate Risk — We use currency swaps, forwards and options to hedge foreign currency exchange rate risk. These hedges primarily swap foreign currency denominated bonds, investments in foreign subsidiaries or equity market exposures to U.S. dollars.
|
•
|
General ALM Hedging Strategies — In the ordinary course of managing our asset/liability risks, we use interest rate futures, interest rate swaps, interest rate caps, interest rate floors and inflation swaps. These hedges are designed to reduce interest rate risk or inflation risk related to the existing assets or liabilities or related to expected future cash flows.
|
•
|
the net present values of our interest rate sensitive exposures resulting from a 10% change (increase or decrease) in interest rates;
|
•
|
the U.S. dollar equivalent estimated fair values of our foreign currency exposures due to a 10% change (increase or decrease) in foreign currency exchange rates; and
|
•
|
the estimated fair value of our equity positions due to a 10% change (increase or decrease) in equity market prices.
|
•
|
the market risk information is limited by the assumptions and parameters established in creating the related sensitivity analysis, including the impact of prepayment rates on mortgage loans;
|
•
|
for the derivatives that qualify as hedges, the impact on reported earnings may be materially different from the change in market values;
|
•
|
the analysis excludes liabilities pursuant to insurance contracts and real estate holdings; and
|
•
|
the model assumes that the composition of assets and liabilities remains unchanged throughout the period.
|
|
December 31, 2013
|
||
|
(In millions)
|
||
Non-trading:
|
|
||
Interest rate risk
|
$
|
6,777
|
|
Foreign currency exchange rate risk
|
$
|
6,562
|
|
Equity market risk
|
$
|
95
|
|
Trading:
|
|
||
Interest rate risk
|
$
|
11
|
|
Foreign currency exchange rate risk
|
$
|
5
|
|
|
December 31, 2013
|
||||||||||
|
Notional
Amount
|
|
Estimated
Fair
Value (1)
|
|
Assuming a
10% Increase
in the Yield
Curve
|
||||||
|
(In millions)
|
||||||||||
Assets:
|
|
|
|
|
|
||||||
Fixed maturity securities
|
|
|
$
|
350,187
|
|
|
$
|
(6,684
|
)
|
||
Equity securities
|
|
|
$
|
3,402
|
|
|
—
|
|
|||
Fair value option and trading securities
|
|
|
$
|
1,289
|
|
|
(11
|
)
|
|||
Mortgage loans:
|
|
|
|
|
|
||||||
Held-for-investment
|
|
|
$
|
58,259
|
|
|
(380
|
)
|
|||
Held-for-sale
|
|
|
3
|
|
|
—
|
|
||||
Mortgage loans, net
|
|
|
$
|
58,262
|
|
|
(380
|
)
|
|||
Policy loans
|
|
|
$
|
13,206
|
|
|
(135
|
)
|
|||
Short-term investments
|
|
|
$
|
13,955
|
|
|
(2
|
)
|
|||
Other invested assets
|
|
|
$
|
1,103
|
|
|
—
|
|
|||
Cash and cash equivalents
|
|
|
$
|
7,585
|
|
|
—
|
|
|||
Accrued investment income
|
|
|
$
|
4,255
|
|
|
—
|
|
|||
Premiums, reinsurance and other receivables
|
|
|
$
|
3,110
|
|
|
(155
|
)
|
|||
Other assets
|
|
|
$
|
352
|
|
|
(5
|
)
|
|||
Net embedded derivatives within asset host contracts (2)
|
|
|
$
|
285
|
|
|
(22
|
)
|
|||
Total assets
|
|
|
|
|
$
|
(7,394
|
)
|
||||
Liabilities: (3)
|
|
|
|
|
|
||||||
Policyholder account balances
|
|
|
$
|
137,773
|
|
|
$
|
597
|
|
||
Payables for collateral under securities loaned and other transactions
|
|
|
$
|
30,411
|
|
|
—
|
|
|||
Short-term debt
|
|
|
$
|
175
|
|
|
—
|
|
|||
Long-term debt
|
|
|
$
|
18,564
|
|
|
363
|
|
|||
Collateral financing arrangements
|
|
|
$
|
3,984
|
|
|
—
|
|
|||
Junior subordinated debt securities
|
|
|
$
|
3,789
|
|
|
133
|
|
|||
Other liabilities:
|
|
|
|
|
|
||||||
Trading liabilities
|
|
|
$
|
262
|
|
|
5
|
|
|||
Other
|
|
|
$
|
2,240
|
|
|
124
|
|
|||
Net embedded derivatives within liability host contracts (2)
|
|
|
$
|
(969
|
)
|
|
528
|
|
|||
Total liabilities
|
|
|
|
|
$
|
1,750
|
|
||||
Derivative Instruments:
|
|
|
|
|
|
||||||
Interest rate swaps
|
$
|
116,894
|
|
|
$
|
2,709
|
|
|
$
|
(935
|
)
|
Interest rate floors
|
$
|
63,064
|
|
|
$
|
105
|
|
|
(16
|
)
|
|
Interest rate caps
|
$
|
39,460
|
|
|
$
|
177
|
|
|
52
|
|
|
Interest rate futures
|
$
|
6,011
|
|
|
$
|
—
|
|
|
5
|
|
|
Interest rate options
|
$
|
40,978
|
|
|
$
|
12
|
|
|
(127
|
)
|
|
Interest rate forwards
|
$
|
450
|
|
|
$
|
—
|
|
|
(30
|
)
|
|
Synthetic GICs
|
$
|
4,409
|
|
|
$
|
—
|
|
|
—
|
|
|
Foreign currency swaps
|
$
|
24,472
|
|
|
$
|
(693
|
)
|
|
(15
|
)
|
|
Foreign currency forwards
|
$
|
17,428
|
|
|
$
|
(332
|
)
|
|
(2
|
)
|
|
Currency futures
|
$
|
1,316
|
|
|
$
|
—
|
|
|
—
|
|
|
Currency options
|
$
|
9,627
|
|
|
$
|
323
|
|
|
(7
|
)
|
|
Credit default swaps
|
$
|
12,780
|
|
|
$
|
121
|
|
|
—
|
|
|
Equity futures
|
$
|
5,157
|
|
|
$
|
(42
|
)
|
|
—
|
|
|
Equity options
|
$
|
37,411
|
|
|
$
|
276
|
|
|
(72
|
)
|
|
Variance swaps
|
$
|
21,636
|
|
|
$
|
(403
|
)
|
|
3
|
|
|
Total rate of return swaps
|
$
|
3,802
|
|
|
$
|
(179
|
)
|
|
—
|
|
|
Total derivative instruments
|
|
|
|
|
$
|
(1,144
|
)
|
||||
Net Change
|
|
|
|
|
$
|
(6,788
|
)
|
(1)
|
Separate account assets and liabilities and contractholder-directed unit-linked investments and associated PABs, which are interest rate sensitive, are not included herein as any interest rate risk is borne by the contractholder. Mortgage loans, fair value option and trading securities and long-term debt exclude $1.6 billion, $23 million and $1.5 billion, respectively, related to CSEs. See Note
8
of the Notes to the Consolidated Financial Statements for information regarding CSEs.
|
(2)
|
Embedded derivatives are recognized in the consolidated balance sheet in the same caption as the host contract.
|
(3)
|
Excludes $203.2 billion of liabilities, at carrying value, pursuant to insurance contracts reported within future policy benefits and other policy-related balances. These liabilities would economically offset a significant portion of the net change in fair value of our financial instruments resulting from a 10% increase in the yield curve.
|
|
December 31, 2013
|
||||||||||
|
Notional
Amount
|
|
Estimated
Fair
Value (1)
|
|
Assuming a
10% Increase in the Foreign Exchange Rate |
||||||
|
(In millions)
|
||||||||||
Assets:
|
|
|
|
|
|
||||||
Fixed maturity securities
|
|
|
$
|
350,187
|
|
|
$
|
(8,590
|
)
|
||
Equity securities
|
|
|
$
|
3,402
|
|
|
(100
|
)
|
|||
Fair value option and trading securities
|
|
|
$
|
1,289
|
|
|
(5
|
)
|
|||
Mortgage loans:
|
|
|
|
|
|
||||||
Held-for-investment
|
|
|
$
|
58,259
|
|
|
(644
|
)
|
|||
Held-for-sale
|
|
|
3
|
|
|
—
|
|
||||
Mortgage loans, net
|
|
|
$
|
58,262
|
|
|
(644
|
)
|
|||
Policy loans
|
|
|
$
|
13,206
|
|
|
(168
|
)
|
|||
Short-term investments
|
|
|
$
|
13,955
|
|
|
(228
|
)
|
|||
Other invested assets
|
|
|
$
|
1,103
|
|
|
(102
|
)
|
|||
Cash and cash equivalents
|
|
|
$
|
7,585
|
|
|
(293
|
)
|
|||
Accrued investment income
|
|
|
$
|
4,255
|
|
|
(70
|
)
|
|||
Premiums, reinsurance and other receivables
|
|
|
$
|
3,110
|
|
|
(60
|
)
|
|||
Other assets
|
|
|
$
|
352
|
|
|
(7
|
)
|
|||
Net embedded derivatives within asset host contracts (2)
|
|
|
$
|
285
|
|
|
(12
|
)
|
|||
Total assets
|
|
|
|
|
$
|
(10,279
|
)
|
||||
Liabilities: (3)
|
|
|
|
|
|
||||||
Policyholder account balances
|
|
|
$
|
137,773
|
|
|
$
|
2,649
|
|
||
Payables for collateral under securities loaned and other transactions
|
|
|
$
|
30,411
|
|
|
121
|
|
|||
Long-term debt
|
|
|
$
|
18,564
|
|
|
137
|
|
|||
Other liabilities
|
|
|
$
|
2,502
|
|
|
13
|
|
|||
Net embedded derivatives within liability host contracts (2)
|
|
|
$
|
(969
|
)
|
|
130
|
|
|||
Total liabilities
|
|
|
|
|
$
|
3,050
|
|
||||
Derivative Instruments:
|
|
|
|
|
|
||||||
Interest rate swaps
|
$
|
116,894
|
|
|
$
|
2,709
|
|
|
$
|
(31
|
)
|
Interest rate floors
|
$
|
63,064
|
|
|
$
|
105
|
|
|
—
|
|
|
Interest rate caps
|
$
|
39,460
|
|
|
$
|
177
|
|
|
—
|
|
|
Interest rate futures
|
$
|
6,011
|
|
|
$
|
—
|
|
|
1
|
|
|
Interest rate options
|
$
|
40,978
|
|
|
$
|
12
|
|
|
(7
|
)
|
|
Interest rate forwards
|
$
|
450
|
|
|
$
|
—
|
|
|
—
|
|
|
Synthetic GICs
|
$
|
4,409
|
|
|
$
|
—
|
|
|
—
|
|
|
Foreign currency swaps
|
$
|
24,472
|
|
|
$
|
(693
|
)
|
|
668
|
|
|
Foreign currency forwards
|
$
|
17,428
|
|
|
$
|
(332
|
)
|
|
(209
|
)
|
|
Currency futures
|
$
|
1,316
|
|
|
$
|
—
|
|
|
(112
|
)
|
|
Currency options
|
$
|
9,627
|
|
|
$
|
323
|
|
|
361
|
|
|
Credit default swaps
|
$
|
12,780
|
|
|
$
|
121
|
|
|
—
|
|
|
Equity futures
|
$
|
5,157
|
|
|
$
|
(42
|
)
|
|
5
|
|
|
Equity options
|
$
|
37,411
|
|
|
$
|
276
|
|
|
(15
|
)
|
|
Variance swaps
|
$
|
21,636
|
|
|
$
|
(403
|
)
|
|
1
|
|
|
Total rate of return swaps
|
$
|
3,802
|
|
|
$
|
(179
|
)
|
|
—
|
|
|
Total derivative instruments
|
|
|
|
|
$
|
662
|
|
||||
Net Change
|
|
|
|
|
$
|
(6,567
|
)
|
(1)
|
Does not necessarily represent those financial instruments solely subject to foreign currency exchange rate risk. Separate account assets and liabilities and contractholder-directed unit-linked investments and associated PABs, which are foreign currency exchange rate sensitive, are not included herein as any foreign currency exchange rate risk is borne by the contractholder. Mortgage loans, fair value option and trading securities and long-term debt exclude $1.6 billion, $23 million and $1.5 billion, respectively, related to CSEs. See Note
8
of the Notes to Consolidated Financial Statements for information regarding CSEs.
|
(2)
|
Embedded derivatives are recognized in the consolidated balance sheet in the same caption as the host contract.
|
(3)
|
Excludes $203.2 billion of liabilities, at carrying value, pursuant to insurance contracts reported within future policy benefits and other policy-related balances. These liabilities would economically offset a significant portion of the net change in fair value of our financial instruments resulting from a 10% increase in foreign currency exchange rates.
|
|
December 31, 2013
|
||||||||||
|
Notional
Amount
|
|
Estimated
Fair Value (1) |
|
Assuming a
10% Increase
in Equity
Prices
|
||||||
|
(In millions)
|
||||||||||
Assets:
|
|
|
|
|
|
||||||
Equity securities
|
|
|
$
|
3,402
|
|
|
$
|
340
|
|
||
Net embedded derivatives within asset host contracts (2)
|
|
|
$
|
285
|
|
|
(17
|
)
|
|||
Total assets
|
|
|
|
|
323
|
|
|||||
Liabilities:
|
|
|
|
|
|
||||||
Policyholder account balances
|
|
|
$
|
137,773
|
|
|
—
|
|
|||
Net embedded derivatives within liability host contracts (2)
|
|
|
$
|
(969
|
)
|
|
665
|
|
|||
Total liabilities
|
|
|
|
|
$
|
665
|
|
||||
Derivative Instruments:
|
|
|
|
|
|
||||||
Interest rate swaps
|
$
|
116,894
|
|
|
$
|
2,709
|
|
|
$
|
—
|
|
Interest rate floors
|
$
|
63,064
|
|
|
$
|
105
|
|
|
—
|
|
|
Interest rate caps
|
$
|
39,460
|
|
|
$
|
177
|
|
|
—
|
|
|
Interest rate futures
|
$
|
6,011
|
|
|
$
|
—
|
|
|
—
|
|
|
Interest rate options
|
$
|
40,978
|
|
|
$
|
12
|
|
|
—
|
|
|
Interest rate forwards
|
$
|
450
|
|
|
$
|
—
|
|
|
—
|
|
|
Synthetic GICs
|
$
|
4,409
|
|
|
$
|
—
|
|
|
—
|
|
|
Foreign currency swaps
|
$
|
24,472
|
|
|
$
|
(693
|
)
|
|
—
|
|
|
Foreign currency forwards
|
$
|
17,428
|
|
|
$
|
(332
|
)
|
|
—
|
|
|
Currency futures
|
$
|
1,316
|
|
|
$
|
—
|
|
|
—
|
|
|
Currency options
|
$
|
9,627
|
|
|
$
|
323
|
|
|
—
|
|
|
Credit default swaps
|
$
|
12,780
|
|
|
$
|
121
|
|
|
—
|
|
|
Equity futures
|
$
|
5,157
|
|
|
$
|
(42
|
)
|
|
(456
|
)
|
|
Equity options
|
$
|
37,411
|
|
|
$
|
276
|
|
|
(238
|
)
|
|
Variance swaps
|
$
|
21,636
|
|
|
$
|
(403
|
)
|
|
10
|
|
|
Total rate of return swaps
|
$
|
3,802
|
|
|
$
|
(179
|
)
|
|
(399
|
)
|
|
Total derivative instruments
|
|
|
|
|
$
|
(1,083
|
)
|
||||
Net Change
|
|
|
|
|
$
|
(95
|
)
|
(1)
|
Does not necessarily represent those financial instruments solely subject to equity price risk. Additionally, separate account assets and liabilities and contractholder-directed unit-linked investments and associated PABs, which are equity market sensitive, are not included herein as any equity market risk is borne by the contractholder.
|
(2)
|
Embedded derivatives are recognized in the consolidated balance sheet in the same caption as the host contract.
|
|
Page
|
Financial Statements at December 31, 2013 and 2012 and for the Years Ended December 31, 2013, 2012 and 2011:
|
|
Financial Statement Schedules at December 31, 2013 and 2012 and for the Years Ended December 31, 2013, 2012 and 2011:
|
|
|
|
2013
|
|
2012
|
||||
Assets
|
|
|
|
|
||||
Investments:
|
|
|
|
|
||||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $333,599 and $340,870, respectively; includes $4,005 and $3,378, respectively, relating to variable interest entities)
|
|
$
|
350,187
|
|
|
$
|
374,266
|
|
Equity securities available-for-sale, at estimated fair value (cost: $3,012 and $2,838, respectively)
|
|
3,402
|
|
|
2,891
|
|
||
Fair value option and trading securities, at estimated fair value (includes $662 and $659, respectively, of actively traded securities; and $92 and $112, respectively, relating to variable interest entities)
|
|
17,423
|
|
|
16,348
|
|
||
Mortgage loans:
|
|
|
|
|
||||
Held-for-investment, principally at amortized cost (net of valuation allowances of $322 and $347, respectively; includes $1,621 and $2,715, respectively, at estimated fair value, relating to variable interest entities; includes $338 and $0, respectively, under the fair value option)
|
|
57,703
|
|
|
56,592
|
|
||
Held-for-sale, principally at estimated fair value (includes $0 and $49, respectively, under the fair value option)
|
|
3
|
|
|
414
|
|
||
Mortgage loans, net
|
|
57,706
|
|
|
57,006
|
|
||
Policy loans (includes $2 and $0, respectively, relating to variable interest entities)
|
|
11,764
|
|
|
11,884
|
|
||
Real estate and real estate joint ventures (includes $1,141 and $10, respectively, relating to variable interest entities; includes $186 and $1, respectively, of real estate held-for-sale)
|
|
10,712
|
|
|
9,918
|
|
||
Other limited partnership interests (includes $53 and $274, respectively, relating to variable interest entities)
|
|
7,401
|
|
|
6,688
|
|
||
Short-term investments, principally at estimated fair value (includes $8 and $0, respectively, relating to variable interest entities)
|
|
13,955
|
|
|
16,906
|
|
||
Other invested assets, principally at estimated fair value (includes $78 and $81, respectively, relating to variable interest entities)
|
|
16,229
|
|
|
21,145
|
|
||
Total investments
|
|
488,779
|
|
|
517,052
|
|
||
Cash and cash equivalents, principally at estimated fair value (includes $70 and $99, respectively, relating to variable interest entities)
|
|
7,585
|
|
|
15,738
|
|
||
Accrued investment income (includes $26 and $13, respectively, relating to variable interest entities)
|
|
4,255
|
|
|
4,374
|
|
||
Premiums, reinsurance and other receivables (includes $22 and $5, respectively, relating to variable interest entities)
|
|
21,859
|
|
|
21,634
|
|
||
Deferred policy acquisition costs and value of business acquired (includes $255 and $0, respectively, relating to variable interest entities)
|
|
26,706
|
|
|
24,761
|
|
||
Goodwill
|
|
10,542
|
|
|
9,953
|
|
||
Other assets (includes $152 and $5, respectively, relating to variable interest entities)
|
|
8,369
|
|
|
7,876
|
|
||
Separate account assets (includes $1,033 and $0, respectively, relating to variable interest entities)
|
|
317,201
|
|
|
235,393
|
|
||
Total assets
|
|
$
|
885,296
|
|
|
$
|
836,781
|
|
Liabilities and Equity
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
||||
Future policy benefits (includes $516 and $0, respectively, relating to variable interest entities)
|
|
$
|
187,942
|
|
|
$
|
192,351
|
|
Policyholder account balances (includes $56 and $0, respectively, relating to variable interest entities)
|
|
212,885
|
|
|
225,821
|
|
||
Other policy-related balances (includes $123 and $0, respectively, relating to variable interest entities)
|
|
15,214
|
|
|
15,463
|
|
||
Policyholder dividends payable
|
|
675
|
|
|
728
|
|
||
Policyholder dividend obligation
|
|
1,771
|
|
|
3,828
|
|
||
Payables for collateral under securities loaned and other transactions
|
|
30,411
|
|
|
33,687
|
|
||
Bank deposits
|
|
—
|
|
|
6,416
|
|
||
Short-term debt
|
|
175
|
|
|
100
|
|
||
Long-term debt (includes $1,868 and $2,527, respectively, at estimated fair value, relating to variable interest entities)
|
|
18,653
|
|
|
19,062
|
|
||
Collateral financing arrangements
|
|
4,196
|
|
|
4,196
|
|
||
Junior subordinated debt securities
|
|
3,193
|
|
|
3,192
|
|
||
Current income tax payable
|
|
186
|
|
|
401
|
|
||
Deferred income tax liability
|
|
6,643
|
|
|
8,693
|
|
||
Other liabilities (includes $88 and $40, respectively, relating to variable interest entities)
|
|
23,168
|
|
|
22,492
|
|
||
Separate account liabilities (includes $1,033 and $0, respectively, relating to variable interest entities)
|
|
317,201
|
|
|
235,393
|
|
||
Total liabilities
|
|
822,313
|
|
|
771,823
|
|
||
Contingencies, Commitments and Guarantees (Note 21)
|
|
|
|
|
||||
Redeemable noncontrolling interests
|
|
887
|
|
|
121
|
|
||
Equity
|
|
|
|
|
||||
MetLife, Inc.’s stockholders’ equity:
|
|
|
|
|
||||
Preferred stock, par value $0.01 per share; 200,000,000 shares authorized: 84,000,000 shares issued and outstanding; $2,100 aggregate liquidation preference
|
|
1
|
|
|
1
|
|
||
Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,125,224,024 and 1,094,880,623 shares issued at December 31, 2013 and 2012, respectively; 1,122,030,137 and 1,091,686,736 shares outstanding at December 31, 2013 and 2012, respectively
|
|
11
|
|
|
11
|
|
||
Additional paid-in capital
|
|
29,277
|
|
|
28,011
|
|
||
Retained earnings
|
|
27,332
|
|
|
25,205
|
|
||
Treasury stock, at cost; 3,193,887 shares at December 31, 2013 and 2012
|
|
(172
|
)
|
|
(172
|
)
|
||
Accumulated other comprehensive income (loss)
|
|
5,104
|
|
|
11,397
|
|
||
Total MetLife, Inc.’s stockholders’ equity
|
|
61,553
|
|
|
64,453
|
|
||
Noncontrolling interests
|
|
543
|
|
|
384
|
|
||
Total equity
|
|
62,096
|
|
|
64,837
|
|
||
Total liabilities and equity
|
|
$
|
885,296
|
|
|
$
|
836,781
|
|
|
2013
|
|
2012
|
|
2011
|
||||||
Revenues
|
|
|
|
|
|
||||||
Premiums
|
$
|
37,674
|
|
|
$
|
37,975
|
|
|
$
|
36,361
|
|
Universal life and investment-type product policy fees
|
9,451
|
|
|
8,556
|
|
|
7,806
|
|
|||
Net investment income
|
22,232
|
|
|
21,984
|
|
|
19,585
|
|
|||
Other revenues
|
1,920
|
|
|
1,906
|
|
|
2,532
|
|
|||
Net investment gains (losses):
|
|
|
|
|
|
||||||
Other-than-temporary impairments on fixed maturity securities
|
(106
|
)
|
|
(346
|
)
|
|
(924
|
)
|
|||
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss)
|
(60
|
)
|
|
29
|
|
|
(31
|
)
|
|||
Other net investment gains (losses)
|
327
|
|
|
(35
|
)
|
|
88
|
|
|||
Total net investment gains (losses)
|
161
|
|
|
(352
|
)
|
|
(867
|
)
|
|||
Net derivative gains (losses)
|
(3,239
|
)
|
|
(1,919
|
)
|
|
4,824
|
|
|||
Total revenues
|
68,199
|
|
|
68,150
|
|
|
70,241
|
|
|||
Expenses
|
|
|
|
|
|
||||||
Policyholder benefits and claims
|
38,107
|
|
|
37,987
|
|
|
35,471
|
|
|||
Interest credited to policyholder account balances
|
8,179
|
|
|
7,729
|
|
|
5,603
|
|
|||
Policyholder dividends
|
1,259
|
|
|
1,369
|
|
|
1,446
|
|
|||
Goodwill impairment
|
—
|
|
|
1,868
|
|
|
—
|
|
|||
Other expenses
|
16,602
|
|
|
17,755
|
|
|
18,537
|
|
|||
Total expenses
|
64,147
|
|
|
66,708
|
|
|
61,057
|
|
|||
Income (loss) from continuing operations before provision for income tax
|
4,052
|
|
|
1,442
|
|
|
9,184
|
|
|||
Provision for income tax expense (benefit)
|
661
|
|
|
128
|
|
|
2,793
|
|
|||
Income (loss) from continuing operations, net of income tax
|
3,391
|
|
|
1,314
|
|
|
6,391
|
|
|||
Income (loss) from discontinued operations, net of income tax
|
2
|
|
|
48
|
|
|
24
|
|
|||
Net income (loss)
|
3,393
|
|
|
1,362
|
|
|
6,415
|
|
|||
Less: Net income (loss) attributable to noncontrolling interests
|
25
|
|
|
38
|
|
|
(8
|
)
|
|||
Net income (loss) attributable to MetLife, Inc.
|
3,368
|
|
|
1,324
|
|
|
6,423
|
|
|||
Less: Preferred stock dividends
|
122
|
|
|
122
|
|
|
122
|
|
|||
Preferred stock redemption premium
|
—
|
|
|
—
|
|
|
146
|
|
|||
Net income (loss) available to MetLife, Inc.’s common shareholders
|
$
|
3,246
|
|
|
$
|
1,202
|
|
|
$
|
6,155
|
|
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders per common share:
|
|
|
|
|
|
||||||
Basic
|
$
|
2.94
|
|
|
$
|
1.08
|
|
|
$
|
5.79
|
|
Diluted
|
$
|
2.91
|
|
|
$
|
1.08
|
|
|
$
|
5.74
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders per common share:
|
|
|
|
|
|
||||||
Basic
|
$
|
2.94
|
|
|
$
|
1.12
|
|
|
$
|
5.81
|
|
Diluted
|
$
|
2.91
|
|
|
$
|
1.12
|
|
|
$
|
5.76
|
|
Cash dividends declared per common share
|
$
|
1.01
|
|
|
$
|
0.74
|
|
|
$
|
0.74
|
|
|
2013
|
|
2012
|
|
2011
|
||||||
Net income (loss) attributable to MetLife, Inc.
|
$
|
3,368
|
|
|
$
|
1,324
|
|
|
$
|
6,423
|
|
Net income (loss) attributable to noncontrolling interests (1)
|
25
|
|
|
29
|
|
|
5
|
|
|||
Net income (loss) (1)
|
3,393
|
|
|
1,353
|
|
|
6,428
|
|
|||
Other comprehensive income (loss):
|
|
|
|
|
|
||||||
Unrealized investment gains (losses), net of related offsets
|
(8,086
|
)
|
|
9,394
|
|
|
6,867
|
|
|||
Unrealized gains (losses) on derivatives
|
(899
|
)
|
|
(239
|
)
|
|
1,573
|
|
|||
Foreign currency translation adjustments
|
(975
|
)
|
|
(139
|
)
|
|
9
|
|
|||
Defined benefit plans adjustment
|
1,292
|
|
|
(842
|
)
|
|
(760
|
)
|
|||
Other comprehensive income (loss), before income tax
|
(8,668
|
)
|
|
8,174
|
|
|
7,689
|
|
|||
Income tax (expense) benefit related to items of other comprehensive income (loss)
|
2,329
|
|
|
(2,851
|
)
|
|
(2,789
|
)
|
|||
Other comprehensive income (loss), net of income tax
|
(6,339
|
)
|
|
5,323
|
|
|
4,900
|
|
|||
Comprehensive income (loss)
|
(2,946
|
)
|
|
6,676
|
|
|
11,328
|
|
|||
Less: Comprehensive income (loss) attributable to noncontrolling interest, net of income tax
|
(21
|
)
|
|
38
|
|
|
(33
|
)
|
|||
Comprehensive income (loss) attributable to MetLife, Inc.
|
$
|
(2,925
|
)
|
|
$
|
6,638
|
|
|
$
|
11,361
|
|
(1)
|
Net income (loss) attributable to noncontrolling interests and net income (loss) exclude gains (losses) of redeemable noncontrolling interests of less than
$1 million
,
$9 million
and
($13) million
for the years ended December 31,
2013
,
2012
and
2011
, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
|
Preferred Stock
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Treasury Stock at Cost
|
|
Net Unrealized Investment Gains (Losses)
|
|
Other- Than- Temporary Impairments
|
|
Foreign Currency Translation Adjustments
|
|
Defined Benefit Plans Adjustment
|
|
Total MetLife, Inc.’s Stockholders’ Equity
|
|
Noncontrolling Interests (1)
|
|
Total Equity
|
||||||||||||||||||||||||
Balance at December 31, 2012
|
$
|
1
|
|
|
$
|
11
|
|
|
$
|
28,011
|
|
|
$
|
25,205
|
|
|
$
|
(172
|
)
|
|
$
|
14,642
|
|
|
$
|
(223
|
)
|
|
$
|
(533
|
)
|
|
$
|
(2,489
|
)
|
|
$
|
64,453
|
|
|
$
|
384
|
|
|
$
|
64,837
|
|
Common stock issuance
|
|
|
|
|
1,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,000
|
|
|
|
|
1,000
|
|
|||||||||||||||||||||
Stock-based compensation
|
|
|
|
|
305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
305
|
|
|
|
|
305
|
|
|||||||||||||||||||||
Dividends on preferred stock
|
|
|
|
|
|
|
(122
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(122
|
)
|
|
|
|
(122
|
)
|
|||||||||||||||||||||
Dividends on common stock
|
|
|
|
|
|
|
(1,119
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(1,119
|
)
|
|
|
|
(1,119
|
)
|
|||||||||||||||||||||
Change in equity of noncontrolling interests
|
|
|
|
|
(39
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(39
|
)
|
|
180
|
|
|
141
|
|
||||||||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
3,368
|
|
|
|
|
|
|
|
|
|
|
|
|
3,368
|
|
|
25
|
|
|
3,393
|
|
||||||||||||||||||||
Other comprehensive income (loss), net of income tax
|
|
|
|
|
|
|
|
|
|
|
(6,089
|
)
|
|
84
|
|
|
(1,126
|
)
|
|
838
|
|
|
(6,293
|
)
|
|
(46
|
)
|
|
(6,339
|
)
|
|||||||||||||||||
Balance at December 31, 2013
|
$
|
1
|
|
|
$
|
11
|
|
|
$
|
29,277
|
|
|
$
|
27,332
|
|
|
$
|
(172
|
)
|
|
$
|
8,553
|
|
|
$
|
(139
|
)
|
|
$
|
(1,659
|
)
|
|
$
|
(1,651
|
)
|
|
$
|
61,553
|
|
|
$
|
543
|
|
|
$
|
62,096
|
|
(1)
|
Net income (loss) attributable to noncontrolling interests excludes gains (losses) of redeemable noncontrolling interests of less than
$1 million
.
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
|
Preferred Stock
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Treasury Stock
at Cost
|
|
Net Unrealized Investment Gains (Losses)
|
|
Other-Than- Temporary Impairments
|
|
Foreign Currency Translation Adjustments
|
|
Defined Benefit Plans Adjustment
|
|
Total MetLife, Inc.’s Stockholders’ Equity
|
|
Noncontrolling Interests (1)
|
|
Total Equity
|
||||||||||||||||||||||||
Balance at December 31, 2011
|
$
|
1
|
|
|
$
|
11
|
|
|
$
|
26,782
|
|
|
$
|
24,814
|
|
|
$
|
(172
|
)
|
|
$
|
9,115
|
|
|
$
|
(441
|
)
|
|
$
|
(648
|
)
|
|
$
|
(1,943
|
)
|
|
$
|
57,519
|
|
|
$
|
370
|
|
|
$
|
57,889
|
|
Common stock issuance
|
|
|
|
|
1,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,000
|
|
|
|
|
1,000
|
|
|||||||||||||||||||||
Stock-based compensation
|
|
|
|
|
229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
229
|
|
|
|
|
229
|
|
|||||||||||||||||||||
Dividends on preferred stock
|
|
|
|
|
|
|
(122
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(122
|
)
|
|
|
|
(122
|
)
|
|||||||||||||||||||||
Dividends on common stock
|
|
|
|
|
|
|
(811
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(811
|
)
|
|
|
|
(811
|
)
|
|||||||||||||||||||||
Change in equity of noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(24
|
)
|
|
(24
|
)
|
|||||||||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
1,324
|
|
|
|
|
|
|
|
|
|
|
|
|
1,324
|
|
|
29
|
|
|
1,353
|
|
||||||||||||||||||||
Other comprehensive income (loss), net of income tax
|
|
|
|
|
|
|
|
|
|
|
5,527
|
|
|
218
|
|
|
115
|
|
|
(546
|
)
|
|
5,314
|
|
|
9
|
|
|
5,323
|
|
|||||||||||||||||
Balance at December 31, 2012
|
$
|
1
|
|
|
$
|
11
|
|
|
$
|
28,011
|
|
|
$
|
25,205
|
|
|
$
|
(172
|
)
|
|
$
|
14,642
|
|
|
$
|
(223
|
)
|
|
$
|
(533
|
)
|
|
$
|
(2,489
|
)
|
|
$
|
64,453
|
|
|
$
|
384
|
|
|
$
|
64,837
|
|
(1)
|
Net income (loss) attributable to noncontrolling interests excludes gains (losses) of redeemable noncontrolling interests of
$9 million
.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
|
Preferred
Stock
|
|
Convertible Preferred Stock
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Treasury Stock
at Cost
|
|
Net
Unrealized
Investment
Gains
(Losses)
|
|
Other-Than-
Temporary
Impairments
|
|
Foreign
Currency
Translation
Adjustments
|
|
Defined Benefit
Plans
Adjustment
|
|
Total
MetLife, Inc.’s
Stockholders’
Equity
|
|
Noncontrolling
Interests (1)
|
|
Total
Equity
|
||||||||||||||||||||||||||
Balance at December 31, 2010
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
26,423
|
|
|
$
|
19,446
|
|
|
$
|
(172
|
)
|
|
$
|
3,488
|
|
|
$
|
(366
|
)
|
|
$
|
(528
|
)
|
|
$
|
(1,449
|
)
|
|
$
|
46,853
|
|
|
$
|
365
|
|
|
$
|
47,218
|
|
Redemption of convertible preferred stock
|
|
|
|
|
|
|
(2,805
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,805
|
)
|
|
|
|
(2,805
|
)
|
|||||||||||||||||||||||
Preferred stock redemption premium
|
|
|
|
|
|
|
|
|
(146
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(146
|
)
|
|
|
|
(146
|
)
|
|||||||||||||||||||||||
Common stock issuance
|
|
|
|
|
1
|
|
|
2,949
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,950
|
|
|
|
|
2,950
|
|
||||||||||||||||||||||
Stock-based compensation
|
|
|
|
|
|
|
215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
215
|
|
|
|
|
215
|
|
|||||||||||||||||||||||
Dividends on preferred stock
|
|
|
|
|
|
|
|
|
(122
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(122
|
)
|
|
|
|
(122
|
)
|
|||||||||||||||||||||||
Dividends on common stock
|
|
|
|
|
|
|
|
|
(787
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(787
|
)
|
|
|
|
(787
|
)
|
|||||||||||||||||||||||
Change in equity of noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
38
|
|
|
38
|
|
|||||||||||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
|
6,423
|
|
|
|
|
|
|
|
|
|
|
|
|
6,423
|
|
|
5
|
|
|
6,428
|
|
||||||||||||||||||||||
Other comprehensive income (loss), net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
5,627
|
|
|
(75
|
)
|
|
(120
|
)
|
|
(494
|
)
|
|
4,938
|
|
|
(38
|
)
|
|
4,900
|
|
|||||||||||||||||||
Balance at December 31, 2011
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
26,782
|
|
|
$
|
24,814
|
|
|
$
|
(172
|
)
|
|
$
|
9,115
|
|
|
$
|
(441
|
)
|
|
$
|
(648
|
)
|
|
$
|
(1,943
|
)
|
|
$
|
57,519
|
|
|
$
|
370
|
|
|
$
|
57,889
|
|
(1)
|
Net income (loss) attributable to noncontrolling interests excludes gains (losses) of redeemable noncontrolling interests of
($13) million
.
|
|
2013
|
|
2012
|
|
2011
|
||||||
Cash flows from operating activities
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
3,393
|
|
|
$
|
1,362
|
|
|
$
|
6,415
|
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization expenses
|
714
|
|
|
596
|
|
|
679
|
|
|||
Amortization of premiums and accretion of discounts associated with investments, net
|
(167
|
)
|
|
(426
|
)
|
|
(477
|
)
|
|||
(Gains) losses on investments and derivatives and from sales of businesses, net
|
4,011
|
|
|
3,197
|
|
|
(3,181
|
)
|
|||
(Income) loss from equity method investments, net of dividends or distributions
|
99
|
|
|
108
|
|
|
315
|
|
|||
Interest credited to policyholder account balances
|
8,179
|
|
|
7,729
|
|
|
5,603
|
|
|||
Interest credited to bank deposits
|
2
|
|
|
78
|
|
|
95
|
|
|||
Universal life and investment-type product policy fees
|
(9,451
|
)
|
|
(8,556
|
)
|
|
(7,806
|
)
|
|||
Goodwill impairment
|
—
|
|
|
1,868
|
|
|
—
|
|
|||
Change in fair value option and trading securities
|
(1,433
|
)
|
|
1,900
|
|
|
648
|
|
|||
Change in residential mortgage loans held-for-sale, net
|
373
|
|
|
3,370
|
|
|
(4,530
|
)
|
|||
Change in mortgage servicing rights
|
—
|
|
|
153
|
|
|
(60
|
)
|
|||
Change in accrued investment income
|
293
|
|
|
219
|
|
|
525
|
|
|||
Change in premiums, reinsurance and other receivables
|
(582
|
)
|
|
(109
|
)
|
|
58
|
|
|||
Change in deferred policy acquisition costs and value of business acquired, net
|
(920
|
)
|
|
(1,139
|
)
|
|
(591
|
)
|
|||
Change in income tax
|
871
|
|
|
(883
|
)
|
|
1,742
|
|
|||
Change in other assets
|
1,767
|
|
|
2,951
|
|
|
2,360
|
|
|||
Change in insurance-related liabilities and policy-related balances
|
6,897
|
|
|
5,918
|
|
|
7,081
|
|
|||
Change in other liabilities
|
1,008
|
|
|
(1,699
|
)
|
|
1,136
|
|
|||
Other, net
|
1,077
|
|
|
523
|
|
|
261
|
|
|||
Net cash provided by (used in) operating activities
|
16,131
|
|
|
17,160
|
|
|
10,273
|
|
|||
Cash flows from investing activities
|
|
|
|
|
|
||||||
Sales, maturities and repayments of:
|
|
|
|
|
|
||||||
Fixed maturity securities
|
117,523
|
|
|
103,823
|
|
|
104,302
|
|
|||
Equity securities
|
725
|
|
|
1,140
|
|
|
2,006
|
|
|||
Mortgage loans
|
12,881
|
|
|
14,673
|
|
|
13,486
|
|
|||
Real estate and real estate joint ventures
|
356
|
|
|
1,018
|
|
|
1,296
|
|
|||
Other limited partnership interests
|
807
|
|
|
974
|
|
|
1,121
|
|
|||
Purchases of:
|
|
|
|
|
|
||||||
Fixed maturity securities
|
(117,826
|
)
|
|
(115,793
|
)
|
|
(116,939
|
)
|
|||
Equity securities
|
(943
|
)
|
|
(627
|
)
|
|
(1,481
|
)
|
|||
Mortgage loans
|
(14,677
|
)
|
|
(11,442
|
)
|
|
(14,694
|
)
|
|||
Real estate and real estate joint ventures
|
(1,880
|
)
|
|
(1,942
|
)
|
|
(1,534
|
)
|
|||
Other limited partnership interests
|
(1,356
|
)
|
|
(1,323
|
)
|
|
(1,147
|
)
|
|||
Cash received in connection with freestanding derivatives
|
1,567
|
|
|
1,933
|
|
|
2,815
|
|
|||
Cash paid in connection with freestanding derivatives
|
(6,710
|
)
|
|
(3,258
|
)
|
|
(3,478
|
)
|
|||
Net change in securitized reverse residential mortgage loans
|
—
|
|
|
(1,198
|
)
|
|
—
|
|
|||
Sales of businesses, net of cash and cash equivalents disposed of $14, $29 and $54, respectively
|
393
|
|
|
576
|
|
|
126
|
|
|||
Sale of bank deposits
|
(6,395
|
)
|
|
—
|
|
|
—
|
|
|||
Sale of interest in joint venture
|
—
|
|
|
—
|
|
|
265
|
|
|||
Disposal of subsidiary
|
—
|
|
|
—
|
|
|
4
|
|
|||
Purchases of businesses, net of cash and cash equivalents acquired of $20, $33 and $70, respectively
|
(1,840
|
)
|
|
(16
|
)
|
|
(163
|
)
|
|||
Net change in policy loans
|
(112
|
)
|
|
(111
|
)
|
|
(66
|
)
|
|||
Net change in short-term investments
|
2,955
|
|
|
593
|
|
|
(7,949
|
)
|
|||
Net change in other invested assets
|
(547
|
)
|
|
(791
|
)
|
|
(19
|
)
|
|||
Other, net
|
(86
|
)
|
|
(158
|
)
|
|
(169
|
)
|
|||
Net cash provided by (used in) investing activities
|
$
|
(15,165
|
)
|
|
$
|
(11,929
|
)
|
|
$
|
(22,218
|
)
|
|
2013
|
|
2012
|
|
2011
|
||||||
Cash flows from financing activities
|
|
|
|
|
|
||||||
Policyholder account balances:
|
|
|
|
|
|
||||||
Deposits
|
$
|
79,193
|
|
|
$
|
91,284
|
|
|
$
|
91,946
|
|
Withdrawals
|
(84,874
|
)
|
|
(86,994
|
)
|
|
(87,625
|
)
|
|||
Net change in payables for collateral under securities loaned and other transactions
|
(3,276
|
)
|
|
(29
|
)
|
|
6,444
|
|
|||
Net change in bank deposits
|
8
|
|
|
(4,169
|
)
|
|
96
|
|
|||
Net change in short-term debt
|
75
|
|
|
(586
|
)
|
|
380
|
|
|||
Long-term debt issued
|
1,372
|
|
|
750
|
|
|
1,346
|
|
|||
Long-term debt repaid
|
(1,746
|
)
|
|
(1,702
|
)
|
|
(2,042
|
)
|
|||
Collateral financing arrangements repaid
|
—
|
|
|
(349
|
)
|
|
(502
|
)
|
|||
Cash received (paid) in connection with collateral financing arrangements
|
—
|
|
|
(44
|
)
|
|
37
|
|
|||
Net change in liability for securitized reverse residential mortgage loans
|
—
|
|
|
1,198
|
|
|
—
|
|
|||
Cash received in connection with redeemable noncontrolling interests
|
774
|
|
|
—
|
|
|
—
|
|
|||
Common stock issued, net of issuance costs
|
1,000
|
|
|
1,000
|
|
|
2,950
|
|
|||
Redemption of convertible preferred stock
|
—
|
|
|
—
|
|
|
(2,805
|
)
|
|||
Preferred stock redemption premium
|
—
|
|
|
—
|
|
|
(146
|
)
|
|||
Dividends on preferred stock
|
(122
|
)
|
|
(122
|
)
|
|
(122
|
)
|
|||
Dividends on common stock
|
(1,119
|
)
|
|
(811
|
)
|
|
(787
|
)
|
|||
Other, net
|
(192
|
)
|
|
609
|
|
|
212
|
|
|||
Net cash provided by (used in) financing activities
|
(8,907
|
)
|
|
35
|
|
|
9,382
|
|
|||
Effect of change in foreign currency exchange rates on cash and cash equivalents balances
|
(212
|
)
|
|
11
|
|
|
(22
|
)
|
|||
Change in cash and cash equivalents
|
(8,153
|
)
|
|
5,277
|
|
|
(2,585
|
)
|
|||
Cash and cash equivalents, beginning of year
|
15,738
|
|
|
10,461
|
|
|
13,046
|
|
|||
Cash and cash equivalents, end of year
|
$
|
7,585
|
|
|
$
|
15,738
|
|
|
$
|
10,461
|
|
Cash and cash equivalents, subsidiaries held-for-sale, beginning of year
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
89
|
|
Cash and cash equivalents, subsidiaries held-for-sale, end of year
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Cash and cash equivalents, from continuing operations, beginning of year
|
$
|
15,738
|
|
|
$
|
10,461
|
|
|
$
|
12,957
|
|
Cash and cash equivalents, from continuing operations, end of year
|
$
|
7,585
|
|
|
$
|
15,738
|
|
|
$
|
10,461
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
||||||
Net cash paid (received) for:
|
|
|
|
|
|
||||||
Interest
|
$
|
1,270
|
|
|
$
|
1,335
|
|
|
$
|
1,565
|
|
Income tax
|
$
|
677
|
|
|
$
|
554
|
|
|
$
|
676
|
|
Non-cash transactions:
|
|
|
|
|
|
||||||
Business acquisitions:
|
|
|
|
|
|
||||||
Assets acquired
|
$
|
2,988
|
|
|
$
|
595
|
|
|
$
|
327
|
|
Liabilities assumed
|
(972
|
)
|
|
(579
|
)
|
|
(94
|
)
|
|||
Noncontrolling interests assumed
|
(176
|
)
|
|
—
|
|
|
—
|
|
|||
Cash paid, excluding transaction costs of $17, $0 and $0, respectively
|
$
|
1,840
|
|
|
$
|
16
|
|
|
$
|
233
|
|
Real estate and real estate joint ventures acquired in satisfaction of debt
|
$
|
59
|
|
|
$
|
553
|
|
|
$
|
292
|
|
Collateral financing arrangements repaid
|
$
|
—
|
|
|
$
|
102
|
|
|
$
|
148
|
|
Redemption of advances agreements in long-term debt
|
$
|
—
|
|
|
$
|
3,806
|
|
|
$
|
—
|
|
Issuance of funding agreements in policyholder account balances
|
$
|
—
|
|
|
$
|
3,806
|
|
|
$
|
—
|
|
•
|
such separate accounts are legally recognized;
|
•
|
assets supporting the contract liabilities are legally insulated from the Company’s general account liabilities;
|
•
|
investments are directed by the contractholder; and
|
•
|
all investment performance, net of contract fees and assessments, is passed through to the contractholder.
|
Accounting Policy
|
Note
|
Insurance
|
4
|
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles
|
5
|
Reinsurance
|
6
|
Investments
|
8
|
Derivatives
|
9
|
Fair Value
|
10
|
Goodwill
|
11
|
Employee Benefit Plans
|
18
|
Income Tax
|
19
|
Litigation Contingencies
|
21
|
•
|
incremental direct costs of contract acquisition, such as commissions;
|
•
|
the portion of an employee’s total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed;
|
•
|
other essential direct costs that would not have been incurred had a policy not been acquired or renewed; and
|
•
|
in limited circumstances, the costs of direct-response advertising, the primary purpose of which is to elicit sales to customers who could be shown to have responded specifically to the advertising and that results in probable future benefits.
|
Products:
|
In proportion to the following over estimated lives of the contracts:
|
||||
•
|
Nonparticipating and non-dividend-paying traditional contracts:
|
|
Historic actual and expected future gross premiums.
|
||
|
•
|
Term insurance
|
|
|
|
|
•
|
Nonparticipating whole life insurance
|
|
|
|
|
•
|
Traditional group life insurance
|
|
|
|
|
•
|
Non-medical health insurance
|
|
|
|
|
•
|
Accident and health insurance
|
|
|
|
•
|
Participating, dividend-paying traditional contracts
|
|
Actual and expected future gross margins.
|
||
•
|
Fixed and variable universal life contracts
|
|
Actual and expected future gross profits.
|
||
•
|
Fixed and variable deferred annuity contracts
|
|
|
||
•
|
Credit insurance contracts
|
|
Historic and future earned premium.
|
||
•
|
Property and casualty insurance contracts
|
|
|
||
•
|
Other short-duration contracts
|
|
|
•
|
fixed maturity and equity securities held-for-investment by the general account to support asset and liability management strategies for certain insurance products and investments in certain separate accounts (“FVO general account securities”);
|
•
|
contractholder-directed investments supporting unit-linked variable annuity type liabilities which do not qualify for presentation and reporting as separate account summary total assets and liabilities. These investments are primarily mutual funds and, to a lesser extent, fixed maturity and equity securities, short-term investments and cash and cash equivalents. The investment returns on these investments inure to contractholders and are offset by a corresponding change in PABs through interest credited to policyholder account balances (“FVO contractholder-directed unit-linked investments”); and
|
•
|
securities held by consolidated securitization entities (“CSEs”) (“FVO securities held by CSEs”).
|
•
|
Freestanding derivatives with positive estimated fair values are described in “— Derivatives” below.
|
•
|
Tax credit and renewable energy partnerships derive a significant source of investment return in the form of income tax credits or other tax incentives. Where tax credits are guaranteed by a creditworthy third party, the investment is accounted for under the effective yield method. Otherwise, the investment is accounted for under the equity method.
|
•
|
Leveraged leases are recorded net of non-recourse debt. Income on leveraged leases is recognized by applying the leveraged lease’s estimated rate of return to the net investment in the lease. The Company regularly reviews residual values for impairment.
|
•
|
Funds withheld represent a receivable for amounts contractually withheld by ceding companies in accordance with reinsurance agreements. The Company recognizes interest on funds withheld at rates defined by the terms of the agreement which may be contractually specified or directly related to the underlying investments.
|
•
|
Investments in joint ventures that engage in insurance underwriting activities are accounted for under the equity method.
|
Statement of Operations Presentation:
|
Derivative:
|
|
Policyholder benefits and claims
|
•
|
Economic hedges of variable annuity guarantees included in future policy benefits
|
Net investment income
|
•
|
Economic hedges of equity method investments in joint ventures
|
|
•
|
All derivatives held in relation to trading portfolios
|
|
•
|
Derivatives held within contractholder-directed unit-linked investments
|
Other revenues
|
•
|
Derivatives held in connection with the Company’s previous mortgage banking activities
|
•
|
Fair value hedge
(a hedge of the estimated fair value of a recognized asset or liability) - in net derivative gains (losses), consistent with the change in fair value of the hedged item attributable to the designated risk being hedged.
|
•
|
Cash flow hedge
(a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability) - effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses).
|
•
|
Net investment in a foreign operation hedge
- effectiveness in OCI, consistent with the translation adjustment for the hedged net investment in the foreign operation; ineffectiveness in net derivative gains (losses).
|
•
|
the combined instrument is not accounted for in its entirety at fair value with changes in fair value recorded in earnings;
|
•
|
the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and
|
•
|
a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument.
|
•
|
future taxable income exclusive of reversing temporary differences and carryforwards;
|
•
|
future reversals of existing taxable temporary differences;
|
•
|
taxable income in prior carryback years; and
|
•
|
tax planning strategies.
|
•
|
Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity GMIB fees (“GMIB Fees”);
|
•
|
Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment, (ii) includes income from discontinued real estate operations, (iii) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iv) excludes certain amounts related to contractholder-directed unit-linked investments, and (v) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and
|
•
|
Other revenues are adjusted for settlements of foreign currency earnings hedges.
|
•
|
Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative gains (losses), (ii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass through adjustments, (iii) benefits and hedging costs related to GMIBs (“GMIB Costs”), and (iv) market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”);
|
•
|
Interest credited to policyholder account balances includes adjustments for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of PABs but do not qualify for hedge accounting treatment and excludes amounts related to net investment income earned on contractholder-directed unit-linked investments;
|
•
|
Amortization of DAC and VOBA excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB Fees and GMIB Costs, and (iii) Market Value Adjustments;
|
•
|
Amortization of negative VOBA excludes amounts related to Market Value Adjustments;
|
•
|
Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and
|
•
|
Other expenses excludes costs related to: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements, and (iii) acquisition and integration costs.
|
|
|
Operating Earnings
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
|
Americas
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Year Ended December 31, 2013
|
|
Retail
|
|
Group,
Voluntary
& Worksite
Benefits
|
|
Corporate
Benefit
Funding
|
|
Latin
America
|
|
Total
|
|
Asia
|
|
EMEA
|
|
Corporate
& Other
|
|
Total
|
|
Adjustments
|
|
Total
Consolidated
|
||||||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Premiums
|
|
$
|
6,528
|
|
|
$
|
15,250
|
|
|
$
|
2,859
|
|
|
$
|
2,824
|
|
|
$
|
27,461
|
|
|
$
|
7,801
|
|
|
$
|
2,297
|
|
|
$
|
116
|
|
|
$
|
37,675
|
|
|
$
|
(1
|
)
|
|
$
|
37,674
|
|
Universal life and investment-type product policy fees
|
|
4,912
|
|
|
688
|
|
|
247
|
|
|
991
|
|
|
6,838
|
|
|
1,722
|
|
|
386
|
|
|
139
|
|
|
9,085
|
|
|
366
|
|
|
9,451
|
|
|||||||||||
Net investment income
|
|
7,898
|
|
|
1,856
|
|
|
5,790
|
|
|
1,246
|
|
|
16,790
|
|
|
2,915
|
|
|
498
|
|
|
381
|
|
|
20,584
|
|
|
1,648
|
|
|
22,232
|
|
|||||||||||
Other revenues
|
|
1,018
|
|
|
418
|
|
|
278
|
|
|
23
|
|
|
1,737
|
|
|
92
|
|
|
97
|
|
|
28
|
|
|
1,954
|
|
|
(34
|
)
|
|
1,920
|
|
|||||||||||
Net investment gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
161
|
|
|
161
|
|
|||||||||||
Net derivative gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,239
|
)
|
|
(3,239
|
)
|
|||||||||||
Total revenues
|
|
20,356
|
|
|
18,212
|
|
|
9,174
|
|
|
5,084
|
|
|
52,826
|
|
|
12,530
|
|
|
3,278
|
|
|
664
|
|
|
69,298
|
|
|
(1,099
|
)
|
|
68,199
|
|
|||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
|
9,028
|
|
|
14,227
|
|
|
5,402
|
|
|
2,454
|
|
|
31,111
|
|
|
5,755
|
|
|
1,039
|
|
|
63
|
|
|
37,968
|
|
|
1,398
|
|
|
39,366
|
|
|||||||||||
Interest credited to policyholder account balances
|
|
2,331
|
|
|
155
|
|
|
1,233
|
|
|
417
|
|
|
4,136
|
|
|
1,690
|
|
|
147
|
|
|
42
|
|
|
6,015
|
|
|
2,164
|
|
|
8,179
|
|
|||||||||||
Goodwill impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Capitalization of DAC
|
|
(1,309
|
)
|
|
(141
|
)
|
|
(27
|
)
|
|
(424
|
)
|
|
(1,901
|
)
|
|
(2,143
|
)
|
|
(714
|
)
|
|
(28
|
)
|
|
(4,786
|
)
|
|
—
|
|
|
(4,786
|
)
|
|||||||||||
Amortization of DAC and VOBA
|
|
1,384
|
|
|
140
|
|
|
23
|
|
|
310
|
|
|
1,857
|
|
|
1,542
|
|
|
683
|
|
|
1
|
|
|
4,083
|
|
|
(533
|
)
|
|
3,550
|
|
|||||||||||
Amortization of negative VOBA
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|
(427
|
)
|
|
(95
|
)
|
|
—
|
|
|
(524
|
)
|
|
(55
|
)
|
|
(579
|
)
|
|||||||||||
Interest expense on debt
|
|
—
|
|
|
1
|
|
|
9
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
1
|
|
|
1,148
|
|
|
1,159
|
|
|
123
|
|
|
1,282
|
|
|||||||||||
Other expenses
|
|
5,084
|
|
|
2,380
|
|
|
523
|
|
|
1,612
|
|
|
9,599
|
|
|
4,312
|
|
|
1,810
|
|
|
894
|
|
|
16,615
|
|
|
520
|
|
|
17,135
|
|
|||||||||||
Total expenses
|
|
16,518
|
|
|
16,762
|
|
|
7,163
|
|
|
4,367
|
|
|
44,810
|
|
|
10,729
|
|
|
2,871
|
|
|
2,120
|
|
|
60,530
|
|
|
3,617
|
|
|
64,147
|
|
|||||||||||
Provision for income tax expense (benefit)
|
|
1,314
|
|
|
488
|
|
|
704
|
|
|
143
|
|
|
2,649
|
|
|
557
|
|
|
78
|
|
|
(925
|
)
|
|
2,359
|
|
|
(1,698
|
)
|
|
661
|
|
|||||||||||
Operating earnings
|
|
$
|
2,524
|
|
|
$
|
962
|
|
|
$
|
1,307
|
|
|
$
|
574
|
|
|
$
|
5,367
|
|
|
$
|
1,244
|
|
|
$
|
329
|
|
|
$
|
(531
|
)
|
|
6,409
|
|
|
|
|
|
|||||
Adjustments to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Total revenues
|
|
(1,099
|
)
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Total expenses
|
|
(3,617
|
)
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit
|
|
1,698
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
|
$
|
3,391
|
|
|
|
|
$
|
3,391
|
|
At December 31, 2013
|
|
Retail
|
|
Group,
Voluntary
& Worksite
Benefits
|
|
Corporate
Benefit
Funding
|
|
Latin
America
|
|
Asia (1)
|
|
EMEA
|
|
Corporate
& Other
|
|
Total
|
||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||
Total assets
|
|
$
|
349,516
|
|
|
$
|
43,404
|
|
|
$
|
220,612
|
|
|
$
|
69,874
|
|
|
$
|
119,717
|
|
|
$
|
33,382
|
|
|
$
|
48,791
|
|
|
$
|
885,296
|
|
Separate account assets
|
|
$
|
172,382
|
|
|
$
|
644
|
|
|
$
|
77,023
|
|
|
$
|
49,660
|
|
|
$
|
8,996
|
|
|
$
|
8,496
|
|
|
$
|
—
|
|
|
$
|
317,201
|
|
Separate account liabilities
|
|
$
|
172,382
|
|
|
$
|
644
|
|
|
$
|
77,023
|
|
|
$
|
49,660
|
|
|
$
|
8,996
|
|
|
$
|
8,496
|
|
|
$
|
—
|
|
|
$
|
317,201
|
|
(1)
|
Total assets includes
$98.4 billion
of assets from the Japan operations which represents
11%
of total consolidated assets.
|
|
|
Operating Earnings
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
|
Americas
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Year Ended December 31, 2012
|
|
Retail
|
|
Group,
Voluntary
& Worksite
Benefits
|
|
Corporate
Benefit
Funding
|
|
Latin
America
|
|
Total
|
|
Asia
|
|
EMEA
|
|
Corporate
& Other
|
|
Total
|
|
Adjustments
|
|
Total
Consolidated
|
||||||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Premiums
|
|
$
|
6,532
|
|
|
$
|
14,794
|
|
|
$
|
3,237
|
|
|
$
|
2,578
|
|
|
$
|
27,141
|
|
|
$
|
8,344
|
|
|
$
|
2,370
|
|
|
$
|
56
|
|
|
$
|
37,911
|
|
|
$
|
64
|
|
|
$
|
37,975
|
|
Universal life and investment-type product policy fees
|
|
4,561
|
|
|
662
|
|
|
225
|
|
|
785
|
|
|
6,233
|
|
|
1,491
|
|
|
333
|
|
|
155
|
|
|
8,212
|
|
|
344
|
|
|
8,556
|
|
|||||||||||
Net investment income
|
|
7,670
|
|
|
1,768
|
|
|
5,703
|
|
|
1,198
|
|
|
16,339
|
|
|
2,895
|
|
|
535
|
|
|
703
|
|
|
20,472
|
|
|
1,512
|
|
|
21,984
|
|
|||||||||||
Other revenues
|
|
879
|
|
|
422
|
|
|
259
|
|
|
16
|
|
|
1,576
|
|
|
26
|
|
|
121
|
|
|
33
|
|
|
1,756
|
|
|
150
|
|
|
1,906
|
|
|||||||||||
Net investment gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(352
|
)
|
|
(352
|
)
|
|||||||||||
Net derivative gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,919
|
)
|
|
(1,919
|
)
|
|||||||||||
Total revenues
|
|
19,642
|
|
|
17,646
|
|
|
9,424
|
|
|
4,577
|
|
|
51,289
|
|
|
12,756
|
|
|
3,359
|
|
|
947
|
|
|
68,351
|
|
|
(201
|
)
|
|
68,150
|
|
|||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
|
9,010
|
|
|
13,691
|
|
|
5,704
|
|
|
2,231
|
|
|
30,636
|
|
|
5,819
|
|
|
1,196
|
|
|
119
|
|
|
37,770
|
|
|
1,586
|
|
|
39,356
|
|
|||||||||||
Interest credited to policyholder account balances
|
|
2,375
|
|
|
167
|
|
|
1,358
|
|
|
393
|
|
|
4,293
|
|
|
1,784
|
|
|
126
|
|
|
39
|
|
|
6,242
|
|
|
1,487
|
|
|
7,729
|
|
|||||||||||
Goodwill impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,868
|
|
|
1,868
|
|
|||||||||||
Capitalization of DAC
|
|
(1,753
|
)
|
|
(138
|
)
|
|
(29
|
)
|
|
(353
|
)
|
|
(2,273
|
)
|
|
(2,288
|
)
|
|
(723
|
)
|
|
—
|
|
|
(5,284
|
)
|
|
(5
|
)
|
|
(5,289
|
)
|
|||||||||||
Amortization of DAC and VOBA
|
|
1,607
|
|
|
133
|
|
|
22
|
|
|
224
|
|
|
1,986
|
|
|
1,563
|
|
|
626
|
|
|
2
|
|
|
4,177
|
|
|
22
|
|
|
4,199
|
|
|||||||||||
Amortization of negative VOBA
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
|
(456
|
)
|
|
(94
|
)
|
|
—
|
|
|
(555
|
)
|
|
(67
|
)
|
|
(622
|
)
|
|||||||||||
Interest expense on debt
|
|
—
|
|
|
1
|
|
|
8
|
|
|
(1
|
)
|
|
8
|
|
|
5
|
|
|
1
|
|
|
1,176
|
|
|
1,190
|
|
|
166
|
|
|
1,356
|
|
|||||||||||
Other expenses
|
|
5,369
|
|
|
2,351
|
|
|
478
|
|
|
1,375
|
|
|
9,573
|
|
|
4,738
|
|
|
1,810
|
|
|
559
|
|
|
16,680
|
|
|
1,431
|
|
|
18,111
|
|
|||||||||||
Total expenses
|
|
16,608
|
|
|
16,205
|
|
|
7,541
|
|
|
3,864
|
|
|
44,218
|
|
|
11,165
|
|
|
2,942
|
|
|
1,895
|
|
|
60,220
|
|
|
6,488
|
|
|
66,708
|
|
|||||||||||
Provision for income tax expense (benefit)
|
|
1,032
|
|
|
481
|
|
|
659
|
|
|
130
|
|
|
2,302
|
|
|
554
|
|
|
146
|
|
|
(679
|
)
|
|
2,323
|
|
|
(2,195
|
)
|
|
128
|
|
|||||||||||
Operating earnings
|
|
$
|
2,002
|
|
|
$
|
960
|
|
|
$
|
1,224
|
|
|
$
|
583
|
|
|
$
|
4,769
|
|
|
$
|
1,037
|
|
|
$
|
271
|
|
|
$
|
(269
|
)
|
|
5,808
|
|
|
|
|
|
|||||
Adjustments to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Total revenues
|
|
(201
|
)
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Total expenses
|
|
(6,488
|
)
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit
|
|
2,195
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
|
$
|
1,314
|
|
|
|
|
$
|
1,314
|
|
At December 31, 2012
|
|
Retail
|
|
Group,
Voluntary
& Worksite
Benefits
|
|
Corporate
Benefit
Funding
|
|
Latin
America
|
|
Asia (1)
|
|
EMEA
|
|
Corporate
& Other
|
|
Total
|
||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||
Total assets
|
|
$
|
332,387
|
|
|
$
|
44,138
|
|
|
$
|
217,352
|
|
|
$
|
23,272
|
|
|
$
|
131,138
|
|
|
$
|
23,474
|
|
|
$
|
65,020
|
|
|
$
|
836,781
|
|
Separate account assets
|
|
$
|
150,513
|
|
|
$
|
532
|
|
|
$
|
71,875
|
|
|
$
|
4,200
|
|
|
$
|
8,273
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
235,393
|
|
Separate account liabilities
|
|
$
|
150,513
|
|
|
$
|
532
|
|
|
$
|
71,875
|
|
|
$
|
4,200
|
|
|
$
|
8,273
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
235,393
|
|
(1)
|
Total assets includes
$111.0 billion
of assets from the Japan operations which represents
13%
of total consolidated assets.
|
|
|
Operating Earnings
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
|
Americas
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Year Ended December 31, 2011
|
|
Retail
|
|
Group,
Voluntary
& Worksite Benefits
|
|
Corporate
Benefit
Funding
|
|
Latin
America
|
|
Total
|
|
Asia
|
|
EMEA
|
|
Corporate
& Other
|
|
Total
|
|
Adjustments
|
|
Total
Consolidated
|
||||||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Premiums
|
|
$
|
6,711
|
|
|
$
|
13,949
|
|
|
$
|
2,848
|
|
|
$
|
2,514
|
|
|
$
|
26,022
|
|
|
$
|
7,716
|
|
|
$
|
2,477
|
|
|
$
|
54
|
|
|
$
|
36,269
|
|
|
$
|
92
|
|
|
$
|
36,361
|
|
Universal life and investment-type product policy fees
|
|
4,096
|
|
|
630
|
|
|
232
|
|
|
757
|
|
|
5,715
|
|
|
1,343
|
|
|
315
|
|
|
155
|
|
|
7,528
|
|
|
278
|
|
|
7,806
|
|
|||||||||||
Net investment income
|
|
7,414
|
|
|
1,768
|
|
|
5,506
|
|
|
1,025
|
|
|
15,713
|
|
|
2,475
|
|
|
562
|
|
|
888
|
|
|
19,638
|
|
|
(53
|
)
|
|
19,585
|
|
|||||||||||
Other revenues
|
|
779
|
|
|
390
|
|
|
249
|
|
|
15
|
|
|
1,433
|
|
|
36
|
|
|
123
|
|
|
60
|
|
|
1,652
|
|
|
880
|
|
|
2,532
|
|
|||||||||||
Net investment gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(867
|
)
|
|
(867
|
)
|
|||||||||||
Net derivative gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,824
|
|
|
4,824
|
|
|||||||||||
Total revenues
|
|
19,000
|
|
|
16,737
|
|
|
8,835
|
|
|
4,311
|
|
|
48,883
|
|
|
11,570
|
|
|
3,477
|
|
|
1,157
|
|
|
65,087
|
|
|
5,154
|
|
|
70,241
|
|
|||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
|
9,220
|
|
|
13,015
|
|
|
5,287
|
|
|
2,064
|
|
|
29,586
|
|
|
5,239
|
|
|
1,290
|
|
|
126
|
|
|
36,241
|
|
|
676
|
|
|
36,917
|
|
|||||||||||
Interest credited to policyholder account balances
|
|
2,412
|
|
|
178
|
|
|
1,323
|
|
|
371
|
|
|
4,284
|
|
|
1,607
|
|
|
166
|
|
|
—
|
|
|
6,057
|
|
|
(454
|
)
|
|
5,603
|
|
|||||||||||
Goodwill impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Capitalization of DAC
|
|
(2,339
|
)
|
|
(176
|
)
|
|
(25
|
)
|
|
(295
|
)
|
|
(2,835
|
)
|
|
(2,045
|
)
|
|
(669
|
)
|
|
—
|
|
|
(5,549
|
)
|
|
(9
|
)
|
|
(5,558
|
)
|
|||||||||||
Amortization of DAC and VOBA
|
|
1,845
|
|
|
186
|
|
|
17
|
|
|
207
|
|
|
2,255
|
|
|
1,486
|
|
|
613
|
|
|
1
|
|
|
4,355
|
|
|
543
|
|
|
4,898
|
|
|||||||||||
Amortization of negative VOBA
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
(6
|
)
|
|
(560
|
)
|
|
(53
|
)
|
|
—
|
|
|
(619
|
)
|
|
(78
|
)
|
|
(697
|
)
|
|||||||||||
Interest expense on debt
|
|
1
|
|
|
—
|
|
|
9
|
|
|
1
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
1,293
|
|
|
1,304
|
|
|
325
|
|
|
1,629
|
|
|||||||||||
Other expenses
|
|
5,854
|
|
|
2,198
|
|
|
513
|
|
|
1,305
|
|
|
9,870
|
|
|
4,522
|
|
|
1,723
|
|
|
505
|
|
|
16,620
|
|
|
1,645
|
|
|
18,265
|
|
|||||||||||
Total expenses
|
|
16,993
|
|
|
15,401
|
|
|
7,124
|
|
|
3,647
|
|
|
43,165
|
|
|
10,249
|
|
|
3,070
|
|
|
1,925
|
|
|
58,409
|
|
|
2,648
|
|
|
61,057
|
|
|||||||||||
Provision for income tax expense (benefit)
|
|
672
|
|
|
445
|
|
|
599
|
|
|
150
|
|
|
1,866
|
|
|
441
|
|
|
156
|
|
|
(584
|
)
|
|
1,879
|
|
|
914
|
|
|
2,793
|
|
|||||||||||
Operating earnings
|
|
$
|
1,335
|
|
|
$
|
891
|
|
|
$
|
1,112
|
|
|
$
|
514
|
|
|
$
|
3,852
|
|
|
$
|
880
|
|
|
$
|
251
|
|
|
$
|
(184
|
)
|
|
4,799
|
|
|
|
|
|
|||||
Adjustments to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Total revenues
|
|
5,154
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Total expenses
|
|
(2,648
|
)
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit
|
|
(914
|
)
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
|
$
|
6,391
|
|
|
|
|
$
|
6,391
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Life insurance (1)
|
$
|
32,176
|
|
|
$
|
31,723
|
|
|
$
|
30,486
|
|
Accident and health insurance
|
13,214
|
|
|
13,255
|
|
|
12,269
|
|
|||
Property and casualty insurance
|
3,270
|
|
|
3,117
|
|
|
3,043
|
|
|||
Non-insurance
|
385
|
|
|
342
|
|
|
901
|
|
|||
Total
|
$
|
49,045
|
|
|
$
|
48,437
|
|
|
$
|
46,699
|
|
(1)
|
Includes annuities and corporate benefit funding products.
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Total revenues
|
$
|
3
|
|
|
$
|
74
|
|
|
$
|
484
|
|
Total expenses
|
—
|
|
|
—
|
|
|
363
|
|
|||
Income (loss) before provision for income tax
|
3
|
|
|
74
|
|
|
121
|
|
|||
Provision for income tax expense (benefit)
|
1
|
|
|
26
|
|
|
33
|
|
|||
Income (loss) from operations of discontinued operations, net of income tax
|
2
|
|
|
48
|
|
|
88
|
|
|||
Gain (loss) on disposal of operations
, net of income tax
|
—
|
|
|
—
|
|
|
(64
|
)
|
|||
Income (loss) from discontinued operations, net of income tax
|
$
|
2
|
|
|
$
|
48
|
|
|
$
|
24
|
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(In millions)
|
||||||
Retail
|
$
|
134,915
|
|
|
$
|
138,082
|
|
Group, Voluntary & Worksite Benefits
|
29,521
|
|
|
29,996
|
|
||
Corporate Benefit Funding
|
112,591
|
|
|
117,065
|
|
||
Latin America
|
16,162
|
|
|
16,055
|
|
||
Asia
|
93,066
|
|
|
103,064
|
|
||
EMEA
|
21,657
|
|
|
20,200
|
|
||
Corporate & Other
|
8,129
|
|
|
9,173
|
|
||
Total
|
$
|
416,041
|
|
|
$
|
433,635
|
|
Product Type:
|
Measurement Assumptions:
|
Participating life
|
Aggregate of (i) net level premium reserves for death and endowment policy benefits (calculated based upon the non-forfeiture interest rate, ranging from 3% to 7% for domestic business and 1% to 13% for international business, and mortality rates guaranteed in calculating the cash surrender values described in such contracts); and (ii) the liability for terminal dividends for domestic business.
|
Nonparticipating life
|
Aggregate of the present value of expected future benefit payments and related expenses less the present value of expected future net premiums. Assumptions as to mortality and persistency are based upon the Company’s experience when the basis of the liability is established. Interest rate assumptions for the aggregate future policy benefit liabilities range from 2% to 10% for domestic business and 1% to 13% for international business.
|
I
ndividual and group
traditional fixed annuities
after annuitization
|
Present value of expected future payments. Interest rate assumptions used in establishing such liabilities range from 1% to 11% for domestic business and 1% to 12% for international business.
|
Non-medical health
insurance
|
The net level premium method and assumptions as to future morbidity, withdrawals and interest, which provide a margin for adverse deviation. Interest rate assumptions used in establishing such liabilities range from 4% to 7% (primarily related to domestic business).
|
Disabled lives
|
Present value of benefits method and experience assumptions as to claim terminations, expenses and interest. Interest rate assumptions used in establishing such liabilities range from 2% to 8% for domestic business and 1% to 9% for international business.
|
Property and casualty
insurance
|
The amount estimated for claims that have been reported but not settled and claims incurred but not reported are based upon the Company’s historical experience and other actuarial assumptions that consider the effects of current developments, anticipated trends and risk management programs, reduced for anticipated salvage and subrogation.
|
Guarantee:
|
|
Measurement Assumptions:
|
|||
GMDBs
|
|
A return of purchase payment upon death even if the account value is reduced to zero.
|
|
|
Present value of expected death benefits in excess of the projected account balance recognizing the excess ratably over the accumulation period based on the present value of total expected assessments.
|
|
|
An enhanced death benefit may be available for an additional fee.
|
|
|
Assumptions are consistent with those used for amortizing DAC, and are thus subject to the same variability and risk.
|
|
|
|
|
|
Investment performance and volatility assumptions are consistent with the historical experience of the appropriate underlying equity index, such as the S&P 500 Index.
|
|
|
|
|
|
Benefit assumptions are based on the average benefits payable over a range of scenarios.
|
GMIBs
|
|
After a specified period of time determined at the time of issuance of the variable annuity contract, a minimum accumulation of purchase payments, even if the account value is reduced to zero, that can be annuitized to receive a monthly income stream that is not less than a specified amount.
|
|
|
Present value of expected income benefits in excess of the projected account balance at any future date of annuitization and recognizing the excess ratably over the accumulation period based on present value of total expected assessments.
|
|
|
Certain contracts also provide for a guaranteed lump sum return of purchase premium in lieu of the annuitization benefit.
|
|
|
Assumptions are consistent with those used for estimating GMDB liabilities.
|
|
|
|
|
|
Calculation incorporates an assumption for the percentage of the potential annuitizations that may be elected by the contractholder.
|
GMWBs
|
|
A return of purchase payment via partial withdrawals, even if the account value is reduced to zero, provided that cumulative withdrawals in a contract year do not exceed a certain limit.
|
|
|
Expected value of the life contingent payments and expected assessments using assumptions consistent with those used for estimating the GMDB liabilities.
|
|
|
Certain contracts include guaranteed withdrawals that are life contingent.
|
|
|
|
|
Annuity Contracts
|
|
Universal and Variable
Life Contracts
|
|
|
||||||||||||||
|
GMDBs
|
|
GMIBs
|
|
Secondary
Guarantees
|
|
Paid-Up
Guarantees
|
|
Total
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Direct and Assumed
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at January 1, 2011
|
$
|
272
|
|
|
$
|
623
|
|
|
$
|
3,991
|
|
|
$
|
198
|
|
|
$
|
5,084
|
|
Incurred guaranteed benefits (1)
|
273
|
|
|
269
|
|
|
496
|
|
|
23
|
|
|
1,061
|
|
|||||
Paid guaranteed benefits
|
(113
|
)
|
|
(10
|
)
|
|
(24
|
)
|
|
—
|
|
|
(147
|
)
|
|||||
Balance at December 31, 2011
|
432
|
|
|
882
|
|
|
4,463
|
|
|
221
|
|
|
5,998
|
|
|||||
Incurred guaranteed benefits (1)
|
252
|
|
|
771
|
|
|
348
|
|
|
25
|
|
|
1,396
|
|
|||||
Paid guaranteed benefits
|
(117
|
)
|
|
(18
|
)
|
|
(26
|
)
|
|
—
|
|
|
(161
|
)
|
|||||
Balance at December 31, 2012
|
567
|
|
|
1,635
|
|
|
4,785
|
|
|
246
|
|
|
7,233
|
|
|||||
Incurred guaranteed benefits (1)
|
200
|
|
|
229
|
|
|
(64
|
)
|
|
20
|
|
|
385
|
|
|||||
Paid guaranteed benefits
|
(82
|
)
|
|
(13
|
)
|
|
(23
|
)
|
|
—
|
|
|
(118
|
)
|
|||||
Balance at December 31, 2013
|
$
|
685
|
|
|
$
|
1,851
|
|
|
$
|
4,698
|
|
|
$
|
266
|
|
|
$
|
7,500
|
|
Ceded
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at January 1, 2011
|
$
|
39
|
|
|
$
|
(1
|
)
|
|
$
|
594
|
|
|
$
|
139
|
|
|
$
|
771
|
|
Incurred guaranteed benefits
|
35
|
|
|
9
|
|
|
20
|
|
|
16
|
|
|
80
|
|
|||||
Paid guaranteed benefits
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
|||||
Balance at December 31, 2011
|
54
|
|
|
8
|
|
|
614
|
|
|
155
|
|
|
831
|
|
|||||
Incurred guaranteed benefits
|
22
|
|
|
1
|
|
|
139
|
|
|
18
|
|
|
180
|
|
|||||
Paid guaranteed benefits
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
|||||
Balance at December 31, 2012
|
56
|
|
|
9
|
|
|
753
|
|
|
173
|
|
|
991
|
|
|||||
Incurred guaranteed benefits
|
(5
|
)
|
|
—
|
|
|
175
|
|
|
14
|
|
|
184
|
|
|||||
Paid guaranteed benefits
|
(10
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|||||
Balance at December 31, 2013
|
$
|
41
|
|
|
$
|
7
|
|
|
$
|
928
|
|
|
$
|
187
|
|
|
$
|
1,163
|
|
Net
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at January 1, 2011
|
$
|
233
|
|
|
$
|
624
|
|
|
$
|
3,397
|
|
|
$
|
59
|
|
|
$
|
4,313
|
|
Incurred guaranteed benefits
|
238
|
|
|
260
|
|
|
476
|
|
|
7
|
|
|
981
|
|
|||||
Paid guaranteed benefits
|
(93
|
)
|
|
(10
|
)
|
|
(24
|
)
|
|
—
|
|
|
(127
|
)
|
|||||
Balance at December 31, 2011
|
378
|
|
|
874
|
|
|
3,849
|
|
|
66
|
|
|
5,167
|
|
|||||
Incurred guaranteed benefits
|
230
|
|
|
770
|
|
|
209
|
|
|
7
|
|
|
1,216
|
|
|||||
Paid guaranteed benefits
|
(97
|
)
|
|
(18
|
)
|
|
(26
|
)
|
|
—
|
|
|
(141
|
)
|
|||||
Balance at December 31, 2012
|
511
|
|
|
1,626
|
|
|
4,032
|
|
|
73
|
|
|
6,242
|
|
|||||
Incurred guaranteed benefits
|
205
|
|
|
229
|
|
|
(239
|
)
|
|
6
|
|
|
201
|
|
|||||
Paid guaranteed benefits
|
(72
|
)
|
|
(11
|
)
|
|
(23
|
)
|
|
—
|
|
|
(106
|
)
|
|||||
Balance at December 31, 2013
|
$
|
644
|
|
|
$
|
1,844
|
|
|
$
|
3,770
|
|
|
$
|
79
|
|
|
$
|
6,337
|
|
(1)
|
Secondary guarantees include the effects of foreign currency translation of
($597) million
,
($39) million
and
$231 million
at December 31, 2013, 2012 and 2011, respectively.
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(In millions)
|
||||||
Fund Groupings:
|
|
|
|
||||
Equity
|
$
|
79,036
|
|
|
$
|
66,469
|
|
Balanced
|
75,928
|
|
|
67,230
|
|
||
Bond
|
10,632
|
|
|
11,188
|
|
||
Money Market
|
1,157
|
|
|
1,291
|
|
||
Total
|
$
|
166,753
|
|
|
$
|
146,178
|
|
|
December 31,
|
||||||||||||||
|
2013
|
|
2012
|
||||||||||||
|
In the
Event of Death
|
|
At
Annuitization
|
|
In the
Event of Death
|
|
At
Annuitization
|
||||||||
|
(In millions)
|
||||||||||||||
Annuity Contracts (1)
|
|
|
|
|
|
|
|
||||||||
Variable Annuity Guarantees
|
|
|
|
|
|
|
|
||||||||
Total contract account value (2)
|
$
|
201,395
|
|
|
$
|
100,527
|
|
|
$
|
184,095
|
|
|
$
|
89,137
|
|
Separate account value
|
$
|
164,500
|
|
|
$
|
96,459
|
|
|
$
|
143,893
|
|
|
$
|
84,354
|
|
Net amount at risk
|
$
|
4,203
|
|
|
$
|
1,219
|
|
|
$
|
9,501
|
|
|
$
|
4,593
|
|
Average attained age of contractholders
|
63 years
|
|
|
63 years
|
|
|
62 years
|
|
|
62 years
|
|
||||
Two Tier Annuities
|
|
|
|
|
|
|
|
||||||||
General account value
|
N/A
|
|
|
$
|
880
|
|
|
N/A
|
|
|
$
|
848
|
|
||
Net amount at risk
|
N/A
|
|
|
$
|
234
|
|
|
N/A
|
|
|
$
|
232
|
|
||
Average attained age of contractholders
|
N/A
|
|
|
50 years
|
|
|
N/A
|
|
|
51 years
|
|
|
December 31,
|
||||||||||||||
|
2013
|
|
2012
|
||||||||||||
|
Secondary
Guarantees
|
|
Paid-Up
Guarantees
|
|
Secondary
Guarantees
|
|
Paid-Up
Guarantees
|
||||||||
|
(In millions)
|
||||||||||||||
Universal and Variable Life Contracts (1)
|
|
|
|
|
|
|
|
||||||||
Account value (general and separate account)
|
$
|
16,048
|
|
|
$
|
3,700
|
|
|
$
|
14,256
|
|
|
$
|
3,828
|
|
Net amount at risk
|
$
|
185,920
|
|
|
$
|
21,737
|
|
|
$
|
189,197
|
|
|
$
|
23,276
|
|
Average attained age of policyholders
|
55 years
|
|
|
60 years
|
|
|
54 years
|
|
|
60 years
|
|
(1)
|
The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive.
|
(2)
|
Includes amounts, which are not reported in the consolidated balance sheets, from assumed reinsurance of certain variable annuity products from the Company’s former operating joint venture in Japan.
|
|
Liability
|
|
Collateral
|
|
|||||||||||||
|
December 31,
|
|
|||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
|
2012
|
|
||||||||
|
(In millions)
|
|
|||||||||||||||
FHLB of NY (1)
|
$
|
12,770
|
|
|
$
|
13,512
|
|
|
$
|
14,287
|
|
(2)
|
|
$
|
14,611
|
|
(2)
|
Farmer Mac (3)
|
$
|
2,750
|
|
|
$
|
2,750
|
|
|
$
|
3,159
|
|
|
|
$
|
3,159
|
|
|
FHLB of Des Moines (1)
|
$
|
1,405
|
|
|
$
|
1,405
|
|
|
$
|
1,596
|
|
(2)
|
|
$
|
1,902
|
|
(2)
|
FHLB of Boston (1)
|
$
|
450
|
|
|
$
|
450
|
|
|
$
|
808
|
|
(2)
|
|
$
|
537
|
|
(2)
|
FHLB of Pittsburgh (1)
|
$
|
375
|
|
|
$
|
—
|
|
|
$
|
976
|
|
(2)
|
|
$
|
810
|
|
(2)
|
(1)
|
Represents funding agreements issued to the applicable FHLBank in exchange for cash and for which such FHLBank has been granted a lien on certain assets, some of which are in the custody of such FHLBank, including residential mortgage-backed securities (“RMBS”), to collateralize obligations under advances evidenced by funding agreements. The Company is permitted to withdraw any portion of the collateral in the custody of such FHLBank as long as there is no event of default and the remaining qualified collateral is sufficient to satisfy the collateral maintenance level. Upon any event of default by the Company, such FHLBank’s recovery on the collateral is limited to the amount of the Company’s liability to such FHLBank.
|
(2)
|
Advances are collateralized by mortgage-backed securities. The amount of collateral presented is at estimated fair value.
|
(3)
|
Represents funding agreements issued to certain SPEs that have issued debt securities for which payment of interest and principal is secured by such funding agreements, and such debt securities are also guaranteed as to payment of interest and principal by Farmer Mac. The obligations under these funding agreements are secured by a pledge of certain eligible agricultural real estate mortgage loans and may, under certain circumstances, be secured by other qualified collateral. The amount of collateral presented is at carrying value.
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Balance at January 1,
|
$
|
10,436
|
|
|
$
|
10,117
|
|
|
$
|
10,708
|
|
Less: Reinsurance recoverables
|
1,581
|
|
|
1,436
|
|
|
2,198
|
|
|||
Net balance at January 1,
|
8,855
|
|
|
8,681
|
|
|
8,510
|
|
|||
Incurred related to:
|
|
|
|
|
|
||||||
Current year
|
8,660
|
|
|
8,399
|
|
|
9,028
|
|
|||
Prior years (1)
|
(86
|
)
|
|
(69
|
)
|
|
(199
|
)
|
|||
Total incurred
|
8,574
|
|
|
8,330
|
|
|
8,829
|
|
|||
Paid related to:
|
|
|
|
|
|
||||||
Current year
|
(6,083
|
)
|
|
(5,689
|
)
|
|
(6,238
|
)
|
|||
Prior years
|
(2,377
|
)
|
|
(2,467
|
)
|
|
(2,420
|
)
|
|||
Total paid
|
(8,460
|
)
|
|
(8,156
|
)
|
|
(8,658
|
)
|
|||
Net balance at December 31,
|
8,969
|
|
|
8,855
|
|
|
8,681
|
|
|||
Add: Reinsurance recoverables
|
1,661
|
|
|
1,581
|
|
|
1,436
|
|
|||
Balance at December 31,
|
$
|
10,630
|
|
|
$
|
10,436
|
|
|
$
|
10,117
|
|
(1)
|
During
2013
,
2012
and
2011
, as a result of changes in estimates of insured events in the respective prior year, claims and claim adjustment expenses associated with prior years decreased due to a reduction in prior year automobile bodily injury and homeowners’ severity and improved loss ratio for non-medical health claim liabilities.
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
DAC
|
|
|
|
|
|
||||||
Balance at January 1,
|
$
|
17,150
|
|
|
$
|
15,240
|
|
|
$
|
13,377
|
|
Capitalizations
|
4,786
|
|
|
5,289
|
|
|
5,558
|
|
|||
Amortization related to:
|
|
|
|
|
|
||||||
Net investment gains (losses) and net derivative gains (losses)
|
192
|
|
|
(40
|
)
|
|
(478
|
)
|
|||
Other expenses
|
(2,812
|
)
|
|
(2,875
|
)
|
|
(2,614
|
)
|
|||
Total amortization
|
(2,620
|
)
|
|
(2,915
|
)
|
|
(3,092
|
)
|
|||
Unrealized investment gains (losses)
|
924
|
|
|
(516
|
)
|
|
(427
|
)
|
|||
Effect of foreign currency translation and other
|
(466
|
)
|
|
52
|
|
|
(176
|
)
|
|||
Balance at December 31,
|
19,774
|
|
|
17,150
|
|
|
15,240
|
|
|||
VOBA
|
|
|
|
|
|
||||||
Balance at January 1,
|
7,611
|
|
|
9,379
|
|
|
11,088
|
|
|||
Acquisitions (1)
|
947
|
|
|
55
|
|
|
11
|
|
|||
Amortization related to:
|
|
|
|
|
|
||||||
Net investment gains (losses) and net derivative gains (losses)
|
3
|
|
|
(1
|
)
|
|
(49
|
)
|
|||
Other expenses
|
(933
|
)
|
|
(1,283
|
)
|
|
(1,757
|
)
|
|||
Total amortization
|
(930
|
)
|
|
(1,284
|
)
|
|
(1,806
|
)
|
|||
Unrealized investment gains (losses)
|
358
|
|
|
(197
|
)
|
|
(361
|
)
|
|||
Effect of foreign currency translation and other
|
(1,054
|
)
|
|
(342
|
)
|
|
447
|
|
|||
Balance at December 31,
|
6,932
|
|
|
7,611
|
|
|
9,379
|
|
|||
Total DAC and VOBA
|
|
|
|
|
|
||||||
Balance at December 31,
|
$
|
26,706
|
|
|
$
|
24,761
|
|
|
$
|
24,619
|
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(In millions)
|
||||||
Retail
|
$
|
12,882
|
|
|
$
|
11,500
|
|
Group, Voluntary & Worksite Benefits
|
382
|
|
|
382
|
|
||
Corporate Benefit Funding
|
99
|
|
|
96
|
|
||
Latin America
|
2,201
|
|
|
1,231
|
|
||
Asia
|
9,077
|
|
|
9,554
|
|
||
EMEA
|
2,039
|
|
|
1,998
|
|
||
Corporate & Other
|
26
|
|
|
—
|
|
||
Total
|
$
|
26,706
|
|
|
$
|
24,761
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Deferred Sales Inducements
|
|
|
|
|
|
||||||
Balance at January 1,
|
$
|
930
|
|
|
$
|
926
|
|
|
$
|
918
|
|
Capitalization
|
58
|
|
|
81
|
|
|
140
|
|
|||
Amortization
|
(36
|
)
|
|
(77
|
)
|
|
(132
|
)
|
|||
Effect of foreign currency translation
|
(2
|
)
|
|
—
|
|
|
—
|
|
|||
Balance at December 31,
|
$
|
950
|
|
|
$
|
930
|
|
|
$
|
926
|
|
VODA and VOCRA
|
|
|
|
|
|
||||||
Balance at January 1,
|
$
|
1,108
|
|
|
$
|
1,264
|
|
|
$
|
1,094
|
|
Acquisitions
|
—
|
|
|
—
|
|
|
213
|
|
|||
Amortization (1)
|
(84
|
)
|
|
(150
|
)
|
|
(60
|
)
|
|||
Effect of foreign currency translation
|
(49
|
)
|
|
(6
|
)
|
|
17
|
|
|||
Balance at December 31,
|
$
|
975
|
|
|
$
|
1,108
|
|
|
$
|
1,264
|
|
Accumulated amortization
|
$
|
418
|
|
|
$
|
334
|
|
|
$
|
184
|
|
Negative VOBA
|
|
|
|
|
|
||||||
Balance at January 1,
|
$
|
2,916
|
|
|
$
|
3,657
|
|
|
$
|
4,287
|
|
Acquisitions
|
—
|
|
|
10
|
|
|
7
|
|
|||
Amortization
|
(579
|
)
|
|
(622
|
)
|
|
(697
|
)
|
|||
Effect of foreign currency translation
|
(175
|
)
|
|
(129
|
)
|
|
60
|
|
|||
Balance at December 31,
|
$
|
2,162
|
|
|
$
|
2,916
|
|
|
$
|
3,657
|
|
Accumulated amortization
|
$
|
1,962
|
|
|
$
|
1,383
|
|
|
$
|
761
|
|
(1)
|
In connection with the Company’s annual impairment testing of VOCRA, it was determined that the VOCRA included in the Group, Voluntary & Worksite Benefits segment, associated with a previously acquired dental business, was impaired as the undiscounted future cash flows associated with the asset were lower than its current carrying value. This shortfall in undiscounted future cash flows is primarily the result of actual persistency experience being less favorable than what was assumed when the asset was acquired. As a result of this impairment, the Company wrote the asset down to its estimated fair value, which was determined using the discounted cash flow valuation approach. The Company recorded a non-cash charge of
$77 million
(
$50 million
, net of income tax) for the impairment of the VOCRA balance to other expenses in the consolidated statement of operations for the year ended December 31, 2012.
|
|
VOBA
|
|
VODA and VOCRA
|
|
Negative VOBA
|
||||||
|
(In millions)
|
||||||||||
2014
|
$
|
846
|
|
|
$
|
80
|
|
|
$
|
(438
|
)
|
2015
|
$
|
700
|
|
|
$
|
79
|
|
|
$
|
(353
|
)
|
2016
|
$
|
596
|
|
|
$
|
75
|
|
|
$
|
(271
|
)
|
2017
|
$
|
516
|
|
|
$
|
71
|
|
|
$
|
(154
|
)
|
2018
|
$
|
448
|
|
|
$
|
66
|
|
|
$
|
(68
|
)
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Premiums
|
|
|
|
|
|
||||||
Direct premiums
|
$
|
38,476
|
|
|
$
|
38,719
|
|
|
$
|
37,185
|
|
Reinsurance assumed
|
1,472
|
|
|
1,488
|
|
|
1,484
|
|
|||
Reinsurance ceded
|
(2,274
|
)
|
|
(2,232
|
)
|
|
(2,308
|
)
|
|||
Net premiums
|
$
|
37,674
|
|
|
$
|
37,975
|
|
|
$
|
36,361
|
|
Universal life and investment-type product policy fees
|
|
|
|
|
|
||||||
Direct universal life and investment-type product policy fees
|
$
|
10,197
|
|
|
$
|
9,216
|
|
|
$
|
8,455
|
|
Reinsurance assumed
|
139
|
|
|
155
|
|
|
154
|
|
|||
Reinsurance ceded
|
(885
|
)
|
|
(815
|
)
|
|
(803
|
)
|
|||
Net universal life and investment-type product policy fees
|
$
|
9,451
|
|
|
$
|
8,556
|
|
|
$
|
7,806
|
|
Policyholder benefits and claims
|
|
|
|
|
|
||||||
Direct policyholder benefits and claims
|
$
|
40,211
|
|
|
$
|
39,262
|
|
|
$
|
37,588
|
|
Reinsurance assumed
|
1,047
|
|
|
1,167
|
|
|
1,101
|
|
|||
Reinsurance ceded
|
(3,151
|
)
|
|
(2,442
|
)
|
|
(3,218
|
)
|
|||
Net policyholder benefits and claims
|
$
|
38,107
|
|
|
$
|
37,987
|
|
|
$
|
35,471
|
|
Other expenses
|
|
|
|
|
|
||||||
Direct other expenses
|
$
|
16,712
|
|
|
$
|
17,848
|
|
|
$
|
18,672
|
|
Reinsurance assumed
|
147
|
|
|
228
|
|
|
168
|
|
|||
Reinsurance ceded
|
(257
|
)
|
|
(321
|
)
|
|
(303
|
)
|
|||
Net other expenses
|
$
|
16,602
|
|
|
$
|
17,755
|
|
|
$
|
18,537
|
|
|
December 31,
|
||||||||||||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||||||||||||
|
Direct
|
|
Assumed
|
|
Ceded
|
|
Total
Balance
Sheet
|
|
Direct
|
|
Assumed
|
|
Ceded
|
|
Total
Balance
Sheet
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Premiums, reinsurance and other receivables
|
$
|
6,248
|
|
|
$
|
593
|
|
|
$
|
15,018
|
|
|
$
|
21,859
|
|
|
$
|
6,286
|
|
|
$
|
548
|
|
|
$
|
14,800
|
|
|
$
|
21,634
|
|
Deferred policy acquisition costs and value of business acquired
|
26,954
|
|
|
104
|
|
|
(352
|
)
|
|
26,706
|
|
|
24,789
|
|
|
92
|
|
|
(120
|
)
|
|
24,761
|
|
||||||||
Total assets
|
$
|
33,202
|
|
|
$
|
697
|
|
|
$
|
14,666
|
|
|
$
|
48,565
|
|
|
$
|
31,075
|
|
|
$
|
640
|
|
|
$
|
14,680
|
|
|
$
|
46,395
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Future policy benefits
|
$
|
185,908
|
|
|
$
|
2,034
|
|
|
$
|
—
|
|
|
$
|
187,942
|
|
|
$
|
190,321
|
|
|
$
|
2,031
|
|
|
$
|
(1
|
)
|
|
$
|
192,351
|
|
Policyholder account balances
|
211,610
|
|
|
1,277
|
|
|
(2
|
)
|
|
212,885
|
|
|
223,229
|
|
|
2,594
|
|
|
(2
|
)
|
|
225,821
|
|
||||||||
Other policy-related balances
|
14,838
|
|
|
353
|
|
|
23
|
|
|
15,214
|
|
|
15,142
|
|
|
313
|
|
|
8
|
|
|
15,463
|
|
||||||||
Other liabilities
|
19,591
|
|
|
533
|
|
|
3,044
|
|
|
23,168
|
|
|
18,925
|
|
|
543
|
|
|
3,024
|
|
|
22,492
|
|
||||||||
Total liabilities
|
$
|
431,947
|
|
|
$
|
4,197
|
|
|
$
|
3,065
|
|
|
$
|
439,209
|
|
|
$
|
447,617
|
|
|
$
|
5,481
|
|
|
$
|
3,029
|
|
|
$
|
456,127
|
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(In millions)
|
||||||
Closed Block Liabilities
|
|
|
|
||||
Future policy benefits
|
$
|
42,076
|
|
|
$
|
42,586
|
|
Other policy-related balances
|
298
|
|
|
298
|
|
||
Policyholder dividends payable
|
456
|
|
|
466
|
|
||
Policyholder dividend obligation
|
1,771
|
|
|
3,828
|
|
||
Current income tax payable
|
18
|
|
|
—
|
|
||
Other liabilities
|
582
|
|
|
602
|
|
||
Total closed block liabilities
|
45,201
|
|
|
47,780
|
|
||
Assets Designated to the Closed Block
|
|
|
|
||||
Investments:
|
|
|
|
||||
Fixed maturity securities available-for-sale, at estimated fair value
|
28,374
|
|
|
30,546
|
|
||
Equity securities available-for-sale, at estimated fair value
|
86
|
|
|
41
|
|
||
Mortgage loans
|
6,155
|
|
|
6,192
|
|
||
Policy loans
|
4,669
|
|
|
4,670
|
|
||
Real estate and real estate joint ventures
|
492
|
|
|
459
|
|
||
Other invested assets
|
814
|
|
|
953
|
|
||
Total investments
|
40,590
|
|
|
42,861
|
|
||
Cash and cash equivalents
|
238
|
|
|
381
|
|
||
Accrued investment income
|
477
|
|
|
481
|
|
||
Premiums, reinsurance and other receivables
|
98
|
|
|
107
|
|
||
Current income tax recoverable
|
—
|
|
|
2
|
|
||
Deferred income tax assets
|
293
|
|
|
319
|
|
||
Total assets designated to the closed block
|
41,696
|
|
|
44,151
|
|
||
Excess of closed block liabilities over assets designated to the closed block
|
3,505
|
|
|
3,629
|
|
||
Amounts included in AOCI:
|
|
|
|
||||
Unrealized investment gains (losses), net of income tax
|
1,502
|
|
|
2,891
|
|
||
Unrealized gains (losses) on derivatives, net of income tax
|
(3
|
)
|
|
9
|
|
||
Allocated to policyholder dividend obligation, net of income tax
|
(1,151
|
)
|
|
(2,488
|
)
|
||
Total amounts included in AOCI
|
348
|
|
|
412
|
|
||
Maximum future earnings to be recognized from closed block assets and liabilities
|
$
|
3,853
|
|
|
$
|
4,041
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Balance at January 1,
|
$
|
3,828
|
|
|
$
|
2,919
|
|
|
$
|
876
|
|
Change in unrealized investment and derivative gains (losses)
|
(2,057
|
)
|
|
909
|
|
|
2,043
|
|
|||
Balance at December 31,
|
$
|
1,771
|
|
|
$
|
3,828
|
|
|
$
|
2,919
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
(In millions)
|
||||||||||
Revenues
|
|
|
|
|
|
|
||||||
Premiums
|
|
$
|
1,987
|
|
|
$
|
2,139
|
|
|
$
|
2,306
|
|
Net investment income
|
|
2,130
|
|
|
2,188
|
|
|
2,231
|
|
|||
Net investment gains (losses)
|
|
25
|
|
|
61
|
|
|
32
|
|
|||
Net derivative gains (losses)
|
|
(6
|
)
|
|
(12
|
)
|
|
8
|
|
|||
Total revenues
|
|
4,136
|
|
|
4,376
|
|
|
4,577
|
|
|||
Expenses
|
|
|
|
|
|
|
||||||
Policyholder benefits and claims
|
|
2,702
|
|
|
2,783
|
|
|
2,991
|
|
|||
Policyholder dividends
|
|
979
|
|
|
1,072
|
|
|
1,137
|
|
|||
Other expenses
|
|
165
|
|
|
179
|
|
|
193
|
|
|||
Total expenses
|
|
3,846
|
|
|
4,034
|
|
|
4,321
|
|
|||
Revenues, net of expenses before provision for income tax expense (benefit)
|
|
290
|
|
|
342
|
|
|
256
|
|
|||
Provision for income tax expense (benefit)
|
|
101
|
|
|
120
|
|
|
89
|
|
|||
Revenues, net of expenses and provision for income tax expense (benefit) from continuing operations
|
|
189
|
|
|
222
|
|
|
167
|
|
|||
Revenues, net of expenses and provision for income tax expense (benefit) from discontinued operations
|
|
—
|
|
|
10
|
|
|
1
|
|
|||
Revenues, net of expenses and provision for income tax expense (benefit)
|
|
$
|
189
|
|
|
$
|
232
|
|
|
$
|
168
|
|
|
December 31, 2013
|
|
December 31, 2012
|
||||||||||||||||||||||||||||||||||||
|
Cost or
Amortized
Cost
|
|
Gross Unrealized
|
|
Estimated
Fair
Value
|
|
Cost or
Amortized
Cost
|
|
Gross Unrealized
|
|
Estimated
Fair
Value
|
||||||||||||||||||||||||||||
|
|
Gains
|
|
Temporary
Losses
|
|
OTTI
Losses
|
|
Gains
|
|
Temporary
Losses
|
|
OTTI
Losses
|
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
(In millions)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Fixed maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
U.S. corporate
|
$
|
100,203
|
|
|
$
|
7,495
|
|
|
$
|
1,229
|
|
|
$
|
—
|
|
|
$
|
106,469
|
|
|
$
|
102,669
|
|
|
$
|
11,887
|
|
|
$
|
430
|
|
|
$
|
—
|
|
|
$
|
114,126
|
|
Foreign corporate (1)
|
59,778
|
|
|
3,939
|
|
|
565
|
|
|
—
|
|
|
63,152
|
|
|
61,806
|
|
|
5,654
|
|
|
277
|
|
|
(1
|
)
|
|
67,184
|
|
||||||||||
Foreign government
|
50,717
|
|
|
4,107
|
|
|
387
|
|
|
—
|
|
|
54,437
|
|
|
51,967
|
|
|
5,440
|
|
|
71
|
|
|
—
|
|
|
57,336
|
|
||||||||||
U.S. Treasury and agency
|
43,928
|
|
|
2,251
|
|
|
1,056
|
|
|
—
|
|
|
45,123
|
|
|
41,874
|
|
|
6,104
|
|
|
11
|
|
|
—
|
|
|
47,967
|
|
||||||||||
RMBS
|
34,167
|
|
|
1,584
|
|
|
490
|
|
|
206
|
|
|
35,055
|
|
|
35,666
|
|
|
2,477
|
|
|
315
|
|
|
349
|
|
|
37,479
|
|
||||||||||
CMBS
|
16,115
|
|
|
605
|
|
|
170
|
|
|
—
|
|
|
16,550
|
|
|
18,177
|
|
|
1,009
|
|
|
57
|
|
|
—
|
|
|
19,129
|
|
||||||||||
ABS
|
15,458
|
|
|
296
|
|
|
171
|
|
|
12
|
|
|
15,571
|
|
|
15,762
|
|
|
404
|
|
|
156
|
|
|
13
|
|
|
15,997
|
|
||||||||||
State and political subdivision
|
13,233
|
|
|
903
|
|
|
306
|
|
|
—
|
|
|
13,830
|
|
|
12,949
|
|
|
2,169
|
|
|
70
|
|
|
—
|
|
|
15,048
|
|
||||||||||
Total fixed maturity securities
|
$
|
333,599
|
|
|
$
|
21,180
|
|
|
$
|
4,374
|
|
|
$
|
218
|
|
|
$
|
350,187
|
|
|
$
|
340,870
|
|
|
$
|
35,144
|
|
|
$
|
1,387
|
|
|
$
|
361
|
|
|
$
|
374,266
|
|
Equity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Common stock
|
$
|
1,927
|
|
|
$
|
431
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
2,353
|
|
|
$
|
2,034
|
|
|
$
|
147
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
2,162
|
|
Non-redeemable preferred stock
|
1,085
|
|
|
76
|
|
|
112
|
|
|
—
|
|
|
1,049
|
|
|
804
|
|
|
65
|
|
|
140
|
|
|
—
|
|
|
729
|
|
||||||||||
Total equity securities
|
$
|
3,012
|
|
|
$
|
507
|
|
|
$
|
117
|
|
|
$
|
—
|
|
|
$
|
3,402
|
|
|
$
|
2,838
|
|
|
$
|
212
|
|
|
$
|
159
|
|
|
$
|
—
|
|
|
$
|
2,891
|
|
(1)
|
The noncredit loss component of OTTI losses for foreign corporate securities was in an unrealized gain position of
$1 million
at December 31,
2012
, due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).”
|
|
December 31,
|
||||||||||||||
|
2013
|
|
2012
|
||||||||||||
|
Amortized
Cost
|
|
Estimated
Fair
Value
|
|
Amortized
Cost
|
|
Estimated
Fair
Value
|
||||||||
|
(In millions)
|
||||||||||||||
Due in one year or less
|
$
|
15,828
|
|
|
$
|
16,030
|
|
|
$
|
24,177
|
|
|
$
|
24,394
|
|
Due after one year through five years
|
70,467
|
|
|
74,229
|
|
|
66,973
|
|
|
70,759
|
|
||||
Due after five years through ten years
|
78,159
|
|
|
83,223
|
|
|
82,376
|
|
|
91,975
|
|
||||
Due after ten years
|
103,405
|
|
|
109,529
|
|
|
97,739
|
|
|
114,533
|
|
||||
Subtotal
|
267,859
|
|
|
283,011
|
|
|
271,265
|
|
|
301,661
|
|
||||
Structured securities (RMBS, CMBS and ABS)
|
65,740
|
|
|
67,176
|
|
|
69,605
|
|
|
72,605
|
|
||||
Total fixed maturity securities
|
$
|
333,599
|
|
|
$
|
350,187
|
|
|
$
|
340,870
|
|
|
$
|
374,266
|
|
|
December 31, 2013
|
|
December 31, 2012
|
||||||||||||||||||||||||||||
|
Less than 12 Months
|
|
Equal to or Greater than 12 Months
|
|
Less than 12 Months
|
|
Equal to or Greater than 12 Months
|
||||||||||||||||||||||||
|
Estimated
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair
Value
|
|
Gross
Unrealized
Losses
|
||||||||||||||||
|
(In millions, except number of securities)
|
||||||||||||||||||||||||||||||
Fixed maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. corporate
|
$
|
13,889
|
|
|
$
|
808
|
|
|
$
|
3,807
|
|
|
$
|
421
|
|
|
$
|
3,799
|
|
|
$
|
88
|
|
|
$
|
3,695
|
|
|
$
|
342
|
|
Foreign corporate
|
9,019
|
|
|
402
|
|
|
2,320
|
|
|
163
|
|
|
2,783
|
|
|
96
|
|
|
2,873
|
|
|
180
|
|
||||||||
Foreign government
|
5,052
|
|
|
336
|
|
|
1,846
|
|
|
51
|
|
|
1,431
|
|
|
22
|
|
|
543
|
|
|
49
|
|
||||||||
U.S. Treasury and agency
|
15,225
|
|
|
1,037
|
|
|
357
|
|
|
19
|
|
|
1,951
|
|
|
11
|
|
|
—
|
|
|
—
|
|
||||||||
RMBS
|
10,754
|
|
|
363
|
|
|
2,302
|
|
|
333
|
|
|
735
|
|
|
31
|
|
|
4,098
|
|
|
633
|
|
||||||||
CMBS
|
3,696
|
|
|
142
|
|
|
631
|
|
|
28
|
|
|
842
|
|
|
11
|
|
|
577
|
|
|
46
|
|
||||||||
ABS
|
3,772
|
|
|
59
|
|
|
978
|
|
|
124
|
|
|
1,920
|
|
|
30
|
|
|
1,410
|
|
|
139
|
|
||||||||
State and political subdivision
|
3,109
|
|
|
225
|
|
|
351
|
|
|
81
|
|
|
260
|
|
|
4
|
|
|
251
|
|
|
66
|
|
||||||||
Total fixed maturity securities
|
$
|
64,516
|
|
|
$
|
3,372
|
|
|
$
|
12,592
|
|
|
$
|
1,220
|
|
|
$
|
13,721
|
|
|
$
|
293
|
|
|
$
|
13,447
|
|
|
$
|
1,455
|
|
Equity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common stock
|
$
|
81
|
|
|
$
|
4
|
|
|
$
|
16
|
|
|
$
|
1
|
|
|
$
|
201
|
|
|
$
|
18
|
|
|
$
|
14
|
|
|
$
|
1
|
|
Non-redeemable preferred stock
|
364
|
|
|
65
|
|
|
191
|
|
|
47
|
|
|
—
|
|
|
—
|
|
|
295
|
|
|
140
|
|
||||||||
Total equity securities
|
$
|
445
|
|
|
$
|
69
|
|
|
$
|
207
|
|
|
$
|
48
|
|
|
$
|
201
|
|
|
$
|
18
|
|
|
$
|
309
|
|
|
$
|
141
|
|
Total number of securities in an
unrealized loss position
|
4,480
|
|
|
|
|
1,571
|
|
|
|
|
1,941
|
|
|
|
|
1,335
|
|
|
|
•
|
The Company calculates the recovery value by performing a discounted cash flow analysis based on the present value of future cash flows. The discount rate is generally the effective interest rate of the security prior to impairment.
|
•
|
When determining collectability and the period over which value is expected to recover, the Company applies considerations utilized in its overall impairment evaluation process which incorporates information regarding the specific security, fundamentals of the industry and geographic area in which the security issuer operates, and overall macroeconomic conditions. Projected future cash flows are estimated using assumptions derived from management’s best estimates of likely scenario-based outcomes after giving consideration to a variety of variables that include, but are not limited to: payment terms of the security; the likelihood that the issuer can service the interest and principal payments; the quality and amount of any credit enhancements; the security’s position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; and changes to the rating of the security or the issuer by rating agencies.
|
•
|
Additional considerations are made when assessing the unique features that apply to certain structured securities including, but not limited to: the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying loans or assets backing a particular security, and the payment priority within the tranche structure of the security.
|
•
|
When determining the amount of the credit loss for U.S. and foreign corporate securities, foreign government securities and state and political subdivision securities, the estimated fair value is considered the recovery value when available information does not indicate that another value is more appropriate. When information is identified that indicates a recovery value other than estimated fair value, management considers in the determination of recovery value the same considerations utilized in its overall impairment evaluation process as described above, as well as any private and public sector programs to restructure such securities.
|
|
December 31,
|
||||||||||||
|
2013
|
|
2012
|
||||||||||
|
Carrying
Value
|
|
% of
Total
|
|
Carrying
Value
|
|
% of
Total
|
||||||
|
(In millions)
|
|
|
|
(In millions)
|
|
|
||||||
Mortgage loans held-for-investment:
|
|
|
|
|
|
|
|
||||||
Commercial
|
$
|
40,926
|
|
|
70.9
|
%
|
|
$
|
40,472
|
|
|
71.0
|
%
|
Agricultural
|
12,391
|
|
|
21.5
|
|
|
12,843
|
|
|
22.5
|
|
||
Residential
|
2,772
|
|
|
4.8
|
|
|
958
|
|
|
1.7
|
|
||
Subtotal (1)
|
56,089
|
|
|
97.2
|
|
|
54,273
|
|
|
95.2
|
|
||
Valuation allowances
|
(322
|
)
|
|
(0.6
|
)
|
|
(347
|
)
|
|
(0.6
|
)
|
||
Subtotal mortgage loans held-for-investment, net
|
55,767
|
|
|
96.6
|
|
|
53,926
|
|
|
94.6
|
|
||
Residential — FVO
|
338
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
||
Commercial mortgage loans held by CSEs — FVO
|
1,598
|
|
|
2.8
|
|
|
2,666
|
|
|
4.7
|
|
||
Total mortgage loans held-for-investment, net
|
57,703
|
|
|
100.0
|
|
|
56,592
|
|
|
99.3
|
|
||
Mortgage loans held-for-sale
|
3
|
|
|
—
|
|
|
414
|
|
|
0.7
|
|
||
Total mortgage loans, net
|
$
|
57,706
|
|
|
100.0
|
%
|
|
$
|
57,006
|
|
|
100.0
|
%
|
(1)
|
Purchases of mortgage loans were
$2.2 billion
and
$205 million
for the years ended December 31,
2013
and
2012
, respectively.
|
|
December 31,
|
||||||||||||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||||||||||||
|
Commercial
|
|
Agricultural
|
|
Residential
|
|
Total
|
|
Commercial
|
|
Agricultural
|
|
Residential
|
|
Total
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Evaluated individually for credit losses
|
$
|
506
|
|
|
$
|
100
|
|
|
$
|
16
|
|
|
$
|
622
|
|
|
$
|
539
|
|
|
$
|
181
|
|
|
$
|
13
|
|
|
$
|
733
|
|
Evaluated collectively for credit losses
|
40,420
|
|
|
12,291
|
|
|
2,756
|
|
|
55,467
|
|
|
39,933
|
|
|
12,662
|
|
|
945
|
|
|
53,540
|
|
||||||||
Total mortgage loans
|
40,926
|
|
|
12,391
|
|
|
2,772
|
|
|
56,089
|
|
|
40,472
|
|
|
12,843
|
|
|
958
|
|
|
54,273
|
|
||||||||
Valuation allowances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Specific credit losses
|
58
|
|
|
7
|
|
|
1
|
|
|
66
|
|
|
94
|
|
|
21
|
|
|
2
|
|
|
117
|
|
||||||||
Non-specifically identified credit losses
|
200
|
|
|
37
|
|
|
19
|
|
|
256
|
|
|
199
|
|
|
31
|
|
|
—
|
|
|
230
|
|
||||||||
Total valuation allowances
|
258
|
|
|
44
|
|
|
20
|
|
|
322
|
|
|
293
|
|
|
52
|
|
|
2
|
|
|
347
|
|
||||||||
Mortgage loans, net of valuation allowance
|
$
|
40,668
|
|
|
$
|
12,347
|
|
|
$
|
2,752
|
|
|
$
|
55,767
|
|
|
$
|
40,179
|
|
|
$
|
12,791
|
|
|
$
|
956
|
|
|
$
|
53,926
|
|
|
Commercial
|
|
Agricultural
|
|
Residential
|
|
Total
|
||||||||
|
(In millions)
|
||||||||||||||
Balance at January 1, 2011
|
$
|
562
|
|
|
$
|
88
|
|
|
$
|
14
|
|
|
$
|
664
|
|
Provision (release)
|
(152
|
)
|
|
(3
|
)
|
|
10
|
|
|
(145
|
)
|
||||
Charge-offs, net of recoveries
|
(12
|
)
|
|
(4
|
)
|
|
(3
|
)
|
|
(19
|
)
|
||||
Transfers to held-for-sale (1)
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
(19
|
)
|
||||
Balance at December 31, 2011
|
398
|
|
|
81
|
|
|
2
|
|
|
481
|
|
||||
Provision (release)
|
(92
|
)
|
|
—
|
|
|
6
|
|
|
(86
|
)
|
||||
Charge-offs, net of recoveries
|
(13
|
)
|
|
(24
|
)
|
|
—
|
|
|
(37
|
)
|
||||
Transfers to held-for-sale (1)
|
—
|
|
|
(5
|
)
|
|
(6
|
)
|
|
(11
|
)
|
||||
Balance at December 31, 2012
|
293
|
|
|
52
|
|
|
2
|
|
|
347
|
|
||||
Provision (release)
|
(35
|
)
|
|
4
|
|
|
18
|
|
|
(13
|
)
|
||||
Charge-offs, net of recoveries
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
(12
|
)
|
||||
Transfers to held-for-sale
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Balance at December 31, 2013
|
$
|
258
|
|
|
$
|
44
|
|
|
$
|
20
|
|
|
$
|
322
|
|
(1)
|
The valuation allowance on and the related carrying value of certain residential mortgage loans held-for-investment were transferred to mortgage loans held-for-sale in connection with the MetLife Bank Divestiture. See Note
3
.
|
|
Recorded Investment
|
|
Estimated
Fair
Value
|
|
% of
Total
|
||||||||||||||||||||
|
Debt Service Coverage Ratios
|
|
Total
|
|
% of
Total
|
|
|||||||||||||||||||
|
> 1.20x
|
|
1.00x - 1.20x
|
|
< 1.00x
|
|
|||||||||||||||||||
|
(In millions)
|
|
|
|
(In millions)
|
|
|
||||||||||||||||||
December 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loan-to-value ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Less than 65%
|
$
|
30,552
|
|
|
$
|
614
|
|
|
$
|
841
|
|
|
$
|
32,007
|
|
|
78.2
|
%
|
|
$
|
33,519
|
|
|
78.9
|
%
|
65% to 75%
|
6,360
|
|
|
438
|
|
|
149
|
|
|
6,947
|
|
|
17.0
|
|
|
7,039
|
|
|
16.6
|
|
|||||
76% to 80%
|
525
|
|
|
192
|
|
|
189
|
|
|
906
|
|
|
2.2
|
|
|
892
|
|
|
2.1
|
|
|||||
Greater than 80%
|
661
|
|
|
242
|
|
|
163
|
|
|
1,066
|
|
|
2.6
|
|
|
1,006
|
|
|
2.4
|
|
|||||
Total
|
$
|
38,098
|
|
|
$
|
1,486
|
|
|
$
|
1,342
|
|
|
$
|
40,926
|
|
|
100.0
|
%
|
|
$
|
42,456
|
|
|
100.0
|
%
|
December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loan-to-value ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Less than 65%
|
$
|
29,839
|
|
|
$
|
730
|
|
|
$
|
722
|
|
|
$
|
31,291
|
|
|
77.3
|
%
|
|
$
|
33,730
|
|
|
78.3
|
%
|
65% to 75%
|
5,057
|
|
|
672
|
|
|
153
|
|
|
5,882
|
|
|
14.6
|
|
|
6,129
|
|
|
14.2
|
|
|||||
76% to 80%
|
938
|
|
|
131
|
|
|
316
|
|
|
1,385
|
|
|
3.4
|
|
|
1,436
|
|
|
3.3
|
|
|||||
Greater than 80%
|
1,085
|
|
|
552
|
|
|
277
|
|
|
1,914
|
|
|
4.7
|
|
|
1,787
|
|
|
4.2
|
|
|||||
Total
|
$
|
36,919
|
|
|
$
|
2,085
|
|
|
$
|
1,468
|
|
|
$
|
40,472
|
|
|
100.0
|
%
|
|
$
|
43,082
|
|
|
100.0
|
%
|
|
December 31,
|
||||||||||||
|
2013
|
|
2012
|
||||||||||
|
Recorded
Investment
|
|
% of
Total
|
|
Recorded
Investment
|
|
% of
Total
|
||||||
|
(In millions)
|
|
|
|
(In millions)
|
|
|
||||||
Loan-to-value ratios:
|
|
|
|
|
|
|
|
||||||
Less than 65%
|
$
|
11,461
|
|
|
92.5
|
%
|
|
$
|
11,908
|
|
|
92.7
|
%
|
65% to 75%
|
729
|
|
|
5.9
|
|
|
590
|
|
|
4.6
|
|
||
76% to 80%
|
84
|
|
|
0.7
|
|
|
92
|
|
|
0.7
|
|
||
Greater than 80%
|
117
|
|
|
0.9
|
|
|
253
|
|
|
2.0
|
|
||
Total
|
$
|
12,391
|
|
|
100.0
|
%
|
|
$
|
12,843
|
|
|
100.0
|
%
|
|
December 31,
|
||||||||||||
|
2013
|
|
2012
|
||||||||||
|
Recorded
Investment
|
|
% of
Total
|
|
Recorded
Investment
|
|
% of
Total
|
||||||
|
(In millions)
|
|
|
|
(In millions)
|
|
|
||||||
Performance indicators:
|
|
|
|
|
|
|
|
||||||
Performing
|
$
|
2,693
|
|
|
97.1
|
%
|
|
$
|
929
|
|
|
97.0
|
%
|
Nonperforming
|
79
|
|
|
2.9
|
|
|
29
|
|
|
3.0
|
|
||
Total
|
$
|
2,772
|
|
|
100.0
|
%
|
|
$
|
958
|
|
|
100.0
|
%
|
|
Past Due
|
|
Greater than 90 Days Past Due
and Still Accruing Interest
|
|
Nonaccrual Status
|
||||||||||||||||||
|
December 31, 2013
|
|
December 31, 2012
|
|
December 31, 2013
|
|
December 31, 2012
|
|
December 31, 2013
|
|
December 31, 2012
|
||||||||||||
|
(In millions)
|
||||||||||||||||||||||
Commercial
|
$
|
12
|
|
|
$
|
2
|
|
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
191
|
|
|
$
|
84
|
|
Agricultural
|
44
|
|
|
116
|
|
|
—
|
|
|
53
|
|
|
47
|
|
|
67
|
|
||||||
Residential
|
79
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
65
|
|
|
18
|
|
||||||
Total
|
$
|
135
|
|
|
$
|
147
|
|
|
$
|
12
|
|
|
$
|
53
|
|
|
$
|
303
|
|
|
$
|
169
|
|
|
Loans with a Valuation Allowance
|
|
Loans without a Valuation Allowance
|
|
All Impaired Loans
|
||||||||||||||||||||||||||||||||||
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
|
|
Valuation
Allowances
|
|
Carrying
Value
|
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Carrying
Value
|
|
Average
Recorded
Investment
|
|
Interest
Income
|
||||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||||||||||
December 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial
|
$
|
214
|
|
|
$
|
210
|
|
|
$
|
58
|
|
|
$
|
152
|
|
|
$
|
299
|
|
|
$
|
296
|
|
|
$
|
513
|
|
|
$
|
448
|
|
|
$
|
526
|
|
|
$
|
15
|
|
Agricultural
|
68
|
|
|
66
|
|
|
7
|
|
|
59
|
|
|
35
|
|
|
34
|
|
|
103
|
|
|
93
|
|
|
153
|
|
|
9
|
|
||||||||||
Residential
|
12
|
|
|
12
|
|
|
1
|
|
|
11
|
|
|
5
|
|
|
4
|
|
|
17
|
|
|
15
|
|
|
14
|
|
|
—
|
|
||||||||||
Total
|
$
|
294
|
|
|
$
|
288
|
|
|
$
|
66
|
|
|
$
|
222
|
|
|
$
|
339
|
|
|
$
|
334
|
|
|
$
|
633
|
|
|
$
|
556
|
|
|
$
|
693
|
|
|
$
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial
|
$
|
445
|
|
|
$
|
436
|
|
|
$
|
94
|
|
|
$
|
342
|
|
|
$
|
103
|
|
|
$
|
103
|
|
|
$
|
548
|
|
|
$
|
445
|
|
|
$
|
464
|
|
|
$
|
14
|
|
Agricultural
|
110
|
|
|
107
|
|
|
21
|
|
|
86
|
|
|
79
|
|
|
74
|
|
|
189
|
|
|
160
|
|
|
204
|
|
|
8
|
|
||||||||||
Residential
|
13
|
|
|
13
|
|
|
2
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
11
|
|
|
13
|
|
|
—
|
|
||||||||||
Total
|
$
|
568
|
|
|
$
|
556
|
|
|
$
|
117
|
|
|
$
|
439
|
|
|
$
|
182
|
|
|
$
|
177
|
|
|
$
|
750
|
|
|
$
|
616
|
|
|
$
|
681
|
|
|
$
|
22
|
|
|
Years Ended December 31,
|
||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||
|
Number of
Mortgage Loans
|
|
Carrying Value after Specific
Valuation Allowance
|
|
Number of
Mortgage Loans
|
|
Carrying Value after Specific
Valuation Allowance
|
||||||||||||||
|
|
|
Pre-Modification
|
|
Post-Modification
|
|
|
|
Pre-Modification
|
|
Post-Modification
|
||||||||||
|
|
|
(In millions)
|
|
|
|
(In millions)
|
||||||||||||||
Commercial
|
1
|
|
|
$
|
49
|
|
|
$
|
49
|
|
|
1
|
|
|
$
|
222
|
|
|
$
|
199
|
|
Agricultural
|
3
|
|
|
28
|
|
|
28
|
|
|
5
|
|
|
17
|
|
|
16
|
|
||||
Residential
|
27
|
|
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
31
|
|
|
$
|
82
|
|
|
$
|
82
|
|
|
6
|
|
|
$
|
239
|
|
|
$
|
215
|
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(In millions)
|
||||||
Rental receivables, net
|
$
|
1,491
|
|
|
$
|
1,564
|
|
Estimated residual values
|
1,325
|
|
|
1,474
|
|
||
Subtotal
|
2,816
|
|
|
3,038
|
|
||
Unearned income
|
(870
|
)
|
|
(1,040
|
)
|
||
Investment in leveraged leases, net of non-recourse debt
|
$
|
1,946
|
|
|
$
|
1,998
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Income from investment in leveraged leases
|
$
|
82
|
|
|
$
|
57
|
|
|
$
|
125
|
|
Less: Income tax expense on leveraged leases
|
29
|
|
|
20
|
|
|
44
|
|
|||
Investment income after income tax from investment in leveraged leases
|
$
|
53
|
|
|
$
|
37
|
|
|
$
|
81
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Fixed maturity securities
|
$
|
16,672
|
|
|
$
|
33,641
|
|
|
$
|
21,096
|
|
Fixed maturity securities with noncredit OTTI losses in AOCI
|
(218
|
)
|
|
(361
|
)
|
|
(724
|
)
|
|||
Total fixed maturity securities
|
16,454
|
|
|
33,280
|
|
|
20,372
|
|
|||
Equity securities
|
390
|
|
|
97
|
|
|
(167
|
)
|
|||
Derivatives
|
375
|
|
|
1,274
|
|
|
1,514
|
|
|||
Other
|
(73
|
)
|
|
(30
|
)
|
|
72
|
|
|||
Subtotal
|
17,146
|
|
|
34,621
|
|
|
21,791
|
|
|||
Amounts allocated from:
|
|
|
|
|
|
||||||
Insurance liability loss recognition
|
(898
|
)
|
|
(6,049
|
)
|
|
(3,996
|
)
|
|||
DAC and VOBA related to noncredit OTTI losses recognized in AOCI
|
6
|
|
|
19
|
|
|
47
|
|
|||
DAC and VOBA
|
(1,190
|
)
|
|
(2,485
|
)
|
|
(1,800
|
)
|
|||
Policyholder dividend obligation
|
(1,771
|
)
|
|
(3,828
|
)
|
|
(2,919
|
)
|
|||
Subtotal
|
(3,853
|
)
|
|
(12,343
|
)
|
|
(8,668
|
)
|
|||
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI
|
73
|
|
|
119
|
|
|
236
|
|
|||
Deferred income tax benefit (expense)
|
(4,956
|
)
|
|
(7,973
|
)
|
|
(4,694
|
)
|
|||
Net unrealized investment gains (losses)
|
8,410
|
|
|
14,424
|
|
|
8,665
|
|
|||
Net unrealized investment gains (losses) attributable to noncontrolling interests
|
4
|
|
|
(5
|
)
|
|
9
|
|
|||
Net unrealized investment gains (losses) attributable to MetLife, Inc.
|
$
|
8,414
|
|
|
$
|
14,419
|
|
|
$
|
8,674
|
|
|
Years Ended December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(In millions)
|
||||||
Balance at January 1,
|
$
|
(361
|
)
|
|
$
|
(724
|
)
|
Noncredit OTTI losses and subsequent changes recognized (1)
|
60
|
|
|
(29
|
)
|
||
Securities sold with previous noncredit OTTI loss
|
149
|
|
|
177
|
|
||
Subsequent changes in estimated fair value
|
(66
|
)
|
|
215
|
|
||
Balance at December 31,
|
$
|
(218
|
)
|
|
$
|
(361
|
)
|
(1)
|
Noncredit OTTI losses and subsequent changes recognized, net of DAC, were
$52 million
and
($21) million
for the years ended December 31,
2013
and
2012
, respectively.
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Balance at January 1,
|
$
|
14,419
|
|
|
$
|
8,674
|
|
|
$
|
3,122
|
|
Fixed maturity securities on which noncredit OTTI losses have been recognized
|
143
|
|
|
363
|
|
|
(123
|
)
|
|||
Unrealized investment gains (losses) during the year
|
(17,618
|
)
|
|
12,467
|
|
|
14,823
|
|
|||
Unrealized investment gains (losses) of subsidiary at the date of disposal
|
—
|
|
|
—
|
|
|
(105
|
)
|
|||
Unrealized investment gains (losses) relating to:
|
|
|
|
|
|
||||||
Insurance liability gain (loss) recognition
|
5,151
|
|
|
(2,053
|
)
|
|
(3,406
|
)
|
|||
Insurance liability gain (loss) recognition of subsidiary at the date of disposal
|
—
|
|
|
—
|
|
|
82
|
|
|||
DAC and VOBA related to noncredit OTTI losses recognized in AOCI
|
(13
|
)
|
|
(28
|
)
|
|
9
|
|
|||
DAC and VOBA
|
1,295
|
|
|
(685
|
)
|
|
(808
|
)
|
|||
DAC and VOBA of subsidiary at date of disposal
|
—
|
|
|
—
|
|
|
11
|
|
|||
Policyholder dividend obligation
|
2,057
|
|
|
(909
|
)
|
|
(2,043
|
)
|
|||
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI
|
(46
|
)
|
|
(117
|
)
|
|
39
|
|
|||
Deferred income tax benefit (expense)
|
3,017
|
|
|
(3,279
|
)
|
|
(2,936
|
)
|
|||
Deferred income tax benefit (expense) of subsidiary at date of disposal
|
—
|
|
|
—
|
|
|
4
|
|
|||
Net unrealized investment gains (losses)
|
8,405
|
|
|
14,433
|
|
|
8,669
|
|
|||
Net unrealized investment gains (losses) attributable to noncontrolling interests
|
9
|
|
|
(14
|
)
|
|
5
|
|
|||
Balance at December 31,
|
$
|
8,414
|
|
|
$
|
14,419
|
|
|
$
|
8,674
|
|
Change in net unrealized investment gains (losses)
|
$
|
(6,014
|
)
|
|
$
|
5,759
|
|
|
$
|
5,547
|
|
Change in net unrealized investment gains (losses) attributable to noncontrolling interests
|
9
|
|
|
(14
|
)
|
|
5
|
|
|||
Change in net unrealized investment gains (losses) attributable to MetLife, Inc.
|
$
|
(6,005
|
)
|
|
$
|
5,745
|
|
|
$
|
5,552
|
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(In millions)
|
||||||
Securities on loan: (1)
|
|
|
|
||||
Amortized cost
|
$
|
27,094
|
|
|
$
|
23,380
|
|
Estimated fair value
|
$
|
27,595
|
|
|
$
|
27,077
|
|
Cash collateral on deposit from counterparties (2)
|
$
|
28,319
|
|
|
$
|
27,727
|
|
Security collateral on deposit from counterparties (3)
|
$
|
—
|
|
|
$
|
104
|
|
Reinvestment portfolio — estimated fair value
|
$
|
28,481
|
|
|
$
|
28,112
|
|
(1)
|
Included within fixed maturity securities, short-term investments, equity securities and cash and cash equivalents.
|
(2)
|
Included within payables for collateral under securities loaned and other transactions.
|
(3)
|
Security collateral on deposit from counterparties may not be sold or repledged, unless the counterparty is in default, and is not reflected in the consolidated financial statements.
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(In millions)
|
||||||
Invested assets on deposit (regulatory deposits)
|
$
|
2,153
|
|
|
$
|
2,362
|
|
Invested assets held in trust (collateral financing arrangements and reinsurance agreements)
|
11,004
|
|
|
12,434
|
|
||
Invested assets pledged as collateral (1)
|
23,770
|
|
|
23,251
|
|
||
Total invested assets on deposit, held in trust and pledged as collateral
|
$
|
36,927
|
|
|
$
|
38,047
|
|
(1)
|
The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Notes
4
and
12
), collateral financing arrangements (see Note
13
) and derivative transactions (see Note
9
).
|
|
December 31,
|
||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
Fixed Maturity Securities
|
|
Mortgage Loans
|
||||||||||||
|
(In millions)
|
||||||||||||||
Outstanding principal and interest balance (1)
|
$
|
5,319
|
|
|
$
|
4,905
|
|
|
$
|
291
|
|
|
$
|
440
|
|
Carrying value (2)
|
$
|
4,109
|
|
|
$
|
3,900
|
|
|
$
|
138
|
|
|
$
|
199
|
|
(1)
|
Represents the contractually required payments, which is the sum of contractual principal, whether or not currently due, and accrued interest.
|
(2)
|
Estimated fair value plus accrued interest for fixed maturity securities and amortized cost, plus accrued interest, less any valuation allowances, for mortgage loans.
|
|
Years Ended December 31,
|
||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
Fixed Maturity Securities
|
|
Mortgage Loans
|
||||||||||||
|
(In millions)
|
||||||||||||||
Contractually required payments (including interest)
|
$
|
1,872
|
|
|
$
|
2,083
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Cash flows expected to be collected (1)
|
$
|
1,446
|
|
|
$
|
1,524
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Fair value of investments acquired
|
$
|
978
|
|
|
$
|
991
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
Represents undiscounted principal and interest cash flow expectations, at the date of acquisition.
|
|
Years Ended December 31,
|
||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
Fixed Maturity Securities
|
|
Mortgage Loans
|
||||||||||||
|
(In millions)
|
||||||||||||||
Accretable yield, January 1,
|
$
|
2,665
|
|
|
$
|
2,311
|
|
|
$
|
184
|
|
|
$
|
254
|
|
Investments purchased
|
468
|
|
|
533
|
|
|
—
|
|
|
—
|
|
||||
Accretion recognized in earnings
|
(260
|
)
|
|
(203
|
)
|
|
(87
|
)
|
|
(71
|
)
|
||||
Disposals
|
(152
|
)
|
|
(102
|
)
|
|
—
|
|
|
—
|
|
||||
Reclassification (to) from nonaccretable difference
|
25
|
|
|
126
|
|
|
(23
|
)
|
|
1
|
|
||||
Accretable yield, December 31,
|
$
|
2,746
|
|
|
$
|
2,665
|
|
|
$
|
74
|
|
|
$
|
184
|
|
|
December 31,
|
||||||||||||||
|
2013
|
|
2012
|
||||||||||||
|
Total
Assets
|
|
Total
Liabilities
|
|
Total
Assets
|
|
Total
Liabilities
|
||||||||
|
(In millions)
|
||||||||||||||
MRSC (collateral financing arrangement (primarily securities)) (1)
|
$
|
3,440
|
|
|
$
|
—
|
|
|
$
|
3,439
|
|
|
$
|
—
|
|
Operating joint venture (2)
|
2,095
|
|
|
1,777
|
|
|
—
|
|
|
—
|
|
||||
CSEs (assets (primarily loans) and liabilities (primarily debt)) (3)
|
1,630
|
|
|
1,457
|
|
|
2,730
|
|
|
2,545
|
|
||||
Investments:
|
|
|
|
|
|
|
|
||||||||
Real estate joint ventures (4)
|
1,181
|
|
|
443
|
|
|
11
|
|
|
14
|
|
||||
Other invested assets
|
82
|
|
|
7
|
|
|
85
|
|
|
—
|
|
||||
FVO and trading securities
|
69
|
|
|
—
|
|
|
71
|
|
|
—
|
|
||||
Other limited partnership interests
|
61
|
|
|
—
|
|
|
356
|
|
|
8
|
|
||||
Total
|
$
|
8,558
|
|
|
$
|
3,684
|
|
|
$
|
6,692
|
|
|
$
|
2,567
|
|
(1)
|
See Note
13
for a description of the MetLife Reinsurance Company of South Carolina (“MRSC”) collateral financing arrangement.
|
(2)
|
Assets of the operating joint venture are primarily fixed maturity securities and separate account assets. Liabilities of the operating joint venture are primarily future policy benefits, other policyholder funds and separate account liabilities. The assets and liabilities of the operating joint venture were consolidated in earlier periods; however, as a result of the quarterly reassessment in the first quarter of 2013, it was determined to be a consolidated VIE.
|
(3)
|
The Company consolidates entities that are structured as CMBS and as collateralized debt obligations. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company’s exposure was limited to that of its remaining investment in these entities of
$154 million
and
$168 million
at estimated fair value at December 31,
2013
and
2012
, respectively. The long-term debt bears interest primarily at fixed rates ranging from
2.25%
to
5.57%
, payable primarily on a monthly basis. Interest expense related to these obligations, included in other expenses, was
$122 million
,
$163 million
and
$324 million
for the years ended December 31,
2013
,
2012
and
2011
respectively.
|
(4)
|
The Company consolidated an open ended core real estate fund formed in the fourth quarter of
2013
, which represented the majority of the balances at December 31, 2013. Assets of the real estate fund are a real estate investment trust which holds
primarily traditional core income-producing real estate which has associated liabilities that are primarily non-recourse debt secured by certain real estate assets of the fund. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company’s exposure was limited to that of its investment in the real estate fund of
$178 million
at carrying value at December 31,
2013
. The long-term debt bears interest primarily at fixed rates ranging from
1.39%
to
4.45%
, payable primarily on a monthly basis. Interest expense related to these obligations, included in other expenses, was less than
$1 million
for the year ended December 31,
2013
.
|
|
December 31,
|
||||||||||||||
|
2013
|
|
2012
|
||||||||||||
|
Carrying
Amount
|
|
Maximum
Exposure
to Loss (1)
|
|
Carrying
Amount
|
|
Maximum
Exposure
to Loss (1)
|
||||||||
|
(In millions)
|
||||||||||||||
Fixed maturity securities AFS:
|
|
|
|
|
|
|
|
||||||||
Structured securities (RMBS, CMBS and ABS) (2)
|
$
|
67,176
|
|
|
$
|
67,176
|
|
|
$
|
72,605
|
|
|
$
|
72,605
|
|
U.S. and foreign corporate
|
3,966
|
|
|
3,966
|
|
|
5,287
|
|
|
5,287
|
|
||||
Other limited partnership interests
|
5,041
|
|
|
6,994
|
|
|
4,436
|
|
|
5,908
|
|
||||
Other invested assets
|
1,509
|
|
|
1,897
|
|
|
1,117
|
|
|
1,431
|
|
||||
FVO and trading securities
|
619
|
|
|
619
|
|
|
563
|
|
|
563
|
|
||||
Mortgage loans
|
106
|
|
|
106
|
|
|
351
|
|
|
351
|
|
||||
Real estate joint ventures
|
70
|
|
|
71
|
|
|
150
|
|
|
157
|
|
||||
Equity securities AFS:
|
|
|
|
|
|
|
|
||||||||
Non-redeemable preferred stock
|
35
|
|
|
35
|
|
|
32
|
|
|
32
|
|
||||
Total
|
$
|
78,522
|
|
|
$
|
80,864
|
|
|
$
|
84,541
|
|
|
$
|
86,334
|
|
(1)
|
The maximum exposure to loss relating to fixed maturity securities AFS, FVO and trading securities and equity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests, mortgage loans and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments of the Company. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of
$257 million
and
$318 million
at December 31,
2013
and
2012
, respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee.
|
(2)
|
For these variable interests, the Company’s involvement is limited to that of a passive investor.
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Investment income:
|
|
|
|
|
|
||||||
Fixed maturity securities
|
$
|
15,071
|
|
|
$
|
15,218
|
|
|
$
|
15,037
|
|
Equity securities
|
127
|
|
|
133
|
|
|
141
|
|
|||
FVO and trading securities — Actively Traded Securities and FVO general account securities (1)
|
65
|
|
|
88
|
|
|
31
|
|
|||
Mortgage loans
|
3,020
|
|
|
3,191
|
|
|
3,164
|
|
|||
Policy loans
|
620
|
|
|
626
|
|
|
641
|
|
|||
Real estate and real estate joint ventures
|
909
|
|
|
834
|
|
|
688
|
|
|||
Other limited partnership interests
|
955
|
|
|
845
|
|
|
681
|
|
|||
Cash, cash equivalents and short-term investments
|
181
|
|
|
163
|
|
|
167
|
|
|||
International joint ventures
|
10
|
|
|
19
|
|
|
(12
|
)
|
|||
Other
|
165
|
|
|
131
|
|
|
178
|
|
|||
Subtotal
|
21,123
|
|
|
21,248
|
|
|
20,716
|
|
|||
Less: Investment expenses
|
1,198
|
|
|
1,090
|
|
|
1,019
|
|
|||
Subtotal, net
|
19,925
|
|
|
20,158
|
|
|
19,697
|
|
|||
FVO and trading securities — FVO contractholder-directed unit-linked investments (1)
|
2,172
|
|
|
1,473
|
|
|
(453
|
)
|
|||
Securitized reverse residential mortgage loans
|
—
|
|
|
177
|
|
|
—
|
|
|||
FVO CSEs - interest income:
|
|
|
|
|
|
||||||
Commercial mortgage loans
|
132
|
|
|
172
|
|
|
332
|
|
|||
Securities
|
3
|
|
|
4
|
|
|
9
|
|
|||
Subtotal
|
2,307
|
|
|
1,826
|
|
|
(112
|
)
|
|||
Net investment income
|
$
|
22,232
|
|
|
$
|
21,984
|
|
|
$
|
19,585
|
|
(1)
|
Changes in estimated fair value subsequent to purchase for securities still held as of the end of the respective years included in net investment income were as follows:
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Actively Traded Securities and FVO general account securities
|
$
|
18
|
|
|
$
|
51
|
|
|
$
|
(3
|
)
|
FVO contractholder-directed unit-linked investments
|
$
|
1,579
|
|
|
$
|
1,170
|
|
|
$
|
(647
|
)
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Total gains (losses) on fixed maturity securities:
|
|
|
|
|
|
||||||
Total OTTI losses recognized — by sector and industry:
|
|
|
|
|
|
||||||
U.S. and foreign corporate securities — by industry:
|
|
|
|
|
|
||||||
Utility
|
$
|
(48
|
)
|
|
$
|
(61
|
)
|
|
$
|
(10
|
)
|
Consumer
|
(11
|
)
|
|
(19
|
)
|
|
(50
|
)
|
|||
Finance
|
(10
|
)
|
|
(32
|
)
|
|
(56
|
)
|
|||
Transportation
|
(3
|
)
|
|
(17
|
)
|
|
—
|
|
|||
Communications
|
(2
|
)
|
|
(19
|
)
|
|
(41
|
)
|
|||
Technology
|
—
|
|
|
(6
|
)
|
|
(1
|
)
|
|||
Industrial
|
—
|
|
|
(5
|
)
|
|
(11
|
)
|
|||
Total U.S. and foreign corporate securities
|
(74
|
)
|
|
(159
|
)
|
|
(169
|
)
|
|||
RMBS
|
(80
|
)
|
|
(97
|
)
|
|
(214
|
)
|
|||
CMBS
|
(12
|
)
|
|
(51
|
)
|
|
(32
|
)
|
|||
ABS
|
—
|
|
|
(9
|
)
|
|
(54
|
)
|
|||
State and political subdivision
|
—
|
|
|
(1
|
)
|
|
—
|
|
|||
Foreign government
|
—
|
|
|
—
|
|
|
(486
|
)
|
|||
OTTI losses on fixed maturity securities recognized in earnings
|
(166
|
)
|
|
(317
|
)
|
|
(955
|
)
|
|||
Fixed maturity securities — net gains (losses) on sales and disposals
|
561
|
|
|
253
|
|
|
25
|
|
|||
Total gains (losses) on fixed maturity securities (1)
|
395
|
|
|
(64
|
)
|
|
(930
|
)
|
|||
Total gains (losses) on equity securities:
|
|
|
|
|
|
||||||
Total OTTI losses recognized — by sector:
|
|
|
|
|
|
||||||
Non-redeemable preferred stock
|
(20
|
)
|
|
—
|
|
|
(38
|
)
|
|||
Common stock
|
(6
|
)
|
|
(34
|
)
|
|
(22
|
)
|
|||
OTTI losses on equity securities recognized in earnings
|
(26
|
)
|
|
(34
|
)
|
|
(60
|
)
|
|||
Equity securities — net gains (losses) on sales and disposals
|
31
|
|
|
38
|
|
|
37
|
|
|||
Total gains (losses) on equity securities
|
5
|
|
|
4
|
|
|
(23
|
)
|
|||
FVO and trading securities — FVO general account securities
|
15
|
|
|
17
|
|
|
(2
|
)
|
|||
Mortgage loans (1)
|
22
|
|
|
57
|
|
|
175
|
|
|||
Real estate and real estate joint ventures
|
(19
|
)
|
|
(36
|
)
|
|
134
|
|
|||
Other limited partnership interests
|
(48
|
)
|
|
(36
|
)
|
|
4
|
|
|||
Other investment portfolio gains (losses)
|
22
|
|
|
(151
|
)
|
|
(7
|
)
|
|||
Subtotal — investment portfolio gains (losses) (1)
|
392
|
|
|
(209
|
)
|
|
(649
|
)
|
|||
FVO CSEs:
|
|
|
|
|
|
||||||
Commercial mortgage loans
|
(52
|
)
|
|
7
|
|
|
(84
|
)
|
|||
Securities
|
2
|
|
|
—
|
|
|
—
|
|
|||
Long-term debt — related to commercial mortgage loans
|
85
|
|
|
25
|
|
|
97
|
|
|||
Long-term debt — related to securities
|
(2
|
)
|
|
(7
|
)
|
|
(8
|
)
|
|||
Non-investment portfolio gains (losses) (2)
|
(264
|
)
|
|
(168
|
)
|
|
(223
|
)
|
|||
Subtotal FVO CSEs and non-investment portfolio gains (losses)
|
(231
|
)
|
|
(143
|
)
|
|
(218
|
)
|
|||
Total net investment gains (losses)
|
$
|
161
|
|
|
$
|
(352
|
)
|
|
$
|
(867
|
)
|
(1)
|
Investment portfolio gains (losses) for the years ended December 31,
2012
and 2011 includes a net gain (loss) of
$37 million
and
($153) million
, respectively, as a result of the MetLife Bank Divestiture, which is comprised of gains (losses) on investments sold of
$78 million
and
$1 million
, respectively, and impairments on mortgage loans of
($41) million
and
($154) million
, respectively. See Note
3
.
|
(2)
|
Non-investment portfolio gains (losses) for the years ended December 31,
2013
and
2012
includes a gain of
$30 million
and
$33 million
, respectively, related to certain dispositions as more fully described in Note 3. Non-investment portfolio gains (losses) for the year ended December 31,
2011
includes a loss of
$106 million
related to certain dispositions and a goodwill impairment loss of
$65 million
. See Notes
3
and
11
.
|
|
Years Ended December 31,
|
||||||||||||||||||||||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2013
|
|
2012
|
|
2011
|
|
2013
|
|
2012
|
|
2011
|
||||||||||||||||||
|
Fixed Maturity Securities
|
|
Equity Securities
|
|
Total
|
||||||||||||||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||||||
Proceeds
|
$
|
76,070
|
|
|
$
|
59,219
|
|
|
$
|
67,449
|
|
|
$
|
746
|
|
|
$
|
1,648
|
|
|
$
|
1,241
|
|
|
$
|
76,816
|
|
|
$
|
60,867
|
|
|
$
|
68,690
|
|
Gross investment gains
|
$
|
1,326
|
|
|
$
|
944
|
|
|
$
|
892
|
|
|
$
|
56
|
|
|
$
|
73
|
|
|
$
|
108
|
|
|
$
|
1,382
|
|
|
$
|
1,017
|
|
|
$
|
1,000
|
|
Gross investment losses
|
(765
|
)
|
|
(691
|
)
|
|
(867
|
)
|
|
(25
|
)
|
|
(35
|
)
|
|
(71
|
)
|
|
(790
|
)
|
|
(726
|
)
|
|
(938
|
)
|
|||||||||
Total OTTI losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Credit-related
|
(147
|
)
|
|
(223
|
)
|
|
(645
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(147
|
)
|
|
(223
|
)
|
|
(645
|
)
|
|||||||||
Other (1)
|
(19
|
)
|
|
(94
|
)
|
|
(310
|
)
|
|
(26
|
)
|
|
(34
|
)
|
|
(60
|
)
|
|
(45
|
)
|
|
(128
|
)
|
|
(370
|
)
|
|||||||||
Total OTTI losses
|
(166
|
)
|
|
(317
|
)
|
|
(955
|
)
|
|
(26
|
)
|
|
(34
|
)
|
|
(60
|
)
|
|
(192
|
)
|
|
(351
|
)
|
|
(1,015
|
)
|
|||||||||
Net investment gains (losses)
|
$
|
395
|
|
|
$
|
(64
|
)
|
|
$
|
(930
|
)
|
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
(23
|
)
|
|
$
|
400
|
|
|
$
|
(60
|
)
|
|
$
|
(953
|
)
|
(1)
|
Other OTTI losses recognized in earnings include impairments on (i) equity securities, (ii) perpetual hybrid securities classified within fixed maturity securities where the primary reason for the impairment was the severity and/or the duration of an unrealized loss position and (iii) fixed maturity securities where there is an intent to sell or it is more likely than not that the Company will be required to sell the security before recovery of the decline in estimated fair value.
|
|
Years Ended December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(In millions)
|
||||||
Balance at January 1,
|
$
|
392
|
|
|
$
|
471
|
|
Additions:
|
|
|
|
||||
Initial impairments — credit loss OTTI recognized on securities not previously impaired
|
6
|
|
|
46
|
|
||
Additional impairments — credit loss OTTI recognized on securities previously impaired
|
69
|
|
|
70
|
|
||
Reductions:
|
|
|
|
||||
Sales (maturities, pay downs or prepayments) during the period of securities previously impaired as credit loss OTTI
|
(87
|
)
|
|
(176
|
)
|
||
Securities impaired to net present value of expected future cash flows
|
—
|
|
|
(17
|
)
|
||
Increases in cash flows — accretion of previous credit loss OTTI
|
(2
|
)
|
|
(2
|
)
|
||
Balance at December 31,
|
$
|
378
|
|
|
$
|
392
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Derivatives and hedging gains (losses) (1)
|
$
|
(8,343
|
)
|
|
$
|
(3,158
|
)
|
|
$
|
6,108
|
|
Embedded derivatives
|
5,104
|
|
|
1,239
|
|
|
(1,284
|
)
|
|||
Total net derivative gains (losses)
|
$
|
(3,239
|
)
|
|
$
|
(1,919
|
)
|
|
$
|
4,824
|
|
(1)
|
Includes foreign currency transaction gains (losses) on hedged items in cash flow and non-qualifying hedging relationships, which are not presented elsewhere in this note.
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Qualifying hedges:
|
|
|
|
|
|
||||||
Net investment income
|
$
|
135
|
|
|
$
|
111
|
|
|
$
|
98
|
|
Interest credited to policyholder account balances
|
150
|
|
|
164
|
|
|
214
|
|
|||
Other expenses
|
(6
|
)
|
|
(5
|
)
|
|
(4
|
)
|
|||
Non-qualifying hedges:
|
|
|
|
|
|
||||||
Net investment income
|
(6
|
)
|
|
(6
|
)
|
|
(8
|
)
|
|||
Other revenues
|
—
|
|
|
47
|
|
|
75
|
|
|||
Net derivative gains (losses)
|
328
|
|
|
476
|
|
|
411
|
|
|||
Policyholder benefits and claims
|
(292
|
)
|
|
(120
|
)
|
|
17
|
|
|||
Total
|
$
|
309
|
|
|
$
|
667
|
|
|
$
|
803
|
|
|
Net
Derivative
Gains (Losses)
|
|
Net
Investment
Income (1)
|
|
Policyholder
Benefits and
Claims (2)
|
|
Other
Revenues (3)
|
||||||||
|
(In millions)
|
||||||||||||||
Year Ended December 31, 2013:
|
|
|
|
|
|
|
|
||||||||
Interest rate derivatives
|
$
|
(3,458
|
)
|
|
$
|
—
|
|
|
$
|
(27
|
)
|
|
$
|
—
|
|
Foreign currency exchange rate derivatives
|
(1,716
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Credit derivatives — purchased
|
(21
|
)
|
|
(14
|
)
|
|
—
|
|
|
|
|
||||
Credit derivatives — written
|
130
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Equity derivatives
|
(3,663
|
)
|
|
(25
|
)
|
|
(727
|
)
|
|
—
|
|
||||
Total
|
$
|
(8,728
|
)
|
|
$
|
(38
|
)
|
|
$
|
(754
|
)
|
|
$
|
—
|
|
Year Ended December 31, 2012:
|
|
|
|
|
|
|
|
||||||||
Interest rate derivatives
|
$
|
(296
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28
|
|
Foreign currency exchange rate derivatives
|
(660
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Credit derivatives — purchased
|
(298
|
)
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
||||
Credit derivatives — written
|
150
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Equity derivatives
|
(2,556
|
)
|
|
(9
|
)
|
|
(419
|
)
|
|
—
|
|
||||
Total
|
$
|
(3,660
|
)
|
|
$
|
(23
|
)
|
|
$
|
(419
|
)
|
|
$
|
28
|
|
Year Ended December 31, 2011:
|
|
|
|
|
|
|
|
||||||||
Interest rate derivatives
|
$
|
3,940
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
236
|
|
Foreign currency exchange rate derivatives
|
343
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
||||
Credit derivatives — purchased
|
250
|
|
|
6
|
|
|
—
|
|
|
—
|
|
||||
Credit derivatives — written
|
(75
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
||||
Equity derivatives
|
1,178
|
|
|
(35
|
)
|
|
(87
|
)
|
|
—
|
|
||||
Total
|
$
|
5,636
|
|
|
$
|
(40
|
)
|
|
$
|
(87
|
)
|
|
$
|
236
|
|
(1)
|
Changes in estimated fair value related to economic hedges of equity method investments in joint ventures; changes in estimated fair value related to derivatives held in relation to trading portfolios; and changes in estimated fair value related to derivatives held within contractholder-directed unit-linked investments.
|
(2)
|
Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits.
|
(3)
|
Changes in estimated fair value related to derivatives held in connection with the Company’s mortgage banking activities prior to the MetLife Bank Divestiture.
|
Derivatives in Fair Value
Hedging Relationships
|
|
Hedged Items in Fair Value
Hedging Relationships
|
|
Net Derivative
Gains (Losses)
Recognized
for Derivatives
|
|
Net Derivative
Gains (Losses)
Recognized for
Hedged Items
|
|
Ineffectiveness
Recognized in
Net Derivative
Gains (Losses)
|
||||||
|
|
|
|
(In millions)
|
||||||||||
Year Ended December 31, 2013:
|
|
|
|
|
|
|
||||||||
Interest rate swaps:
|
|
Fixed maturity securities
|
|
$
|
42
|
|
|
$
|
(43
|
)
|
|
$
|
(1
|
)
|
|
|
Policyholder liabilities (1)
|
|
(830
|
)
|
|
835
|
|
|
5
|
|
|||
Foreign currency swaps:
|
|
Foreign-denominated fixed maturity securities
|
|
13
|
|
|
(12
|
)
|
|
1
|
|
|||
|
|
Foreign-denominated PABs (2)
|
|
(97
|
)
|
|
110
|
|
|
13
|
|
|||
Foreign currency forwards:
|
|
Foreign-denominated fixed maturity securities
|
|
(109
|
)
|
|
102
|
|
|
(7
|
)
|
|||
Total
|
|
$
|
(981
|
)
|
|
$
|
992
|
|
|
$
|
11
|
|
||
Year Ended December 31, 2012:
|
|
|
|
|
|
|
||||||||
Interest rate swaps:
|
|
Fixed maturity securities
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
|
Policyholder liabilities (1)
|
|
(82
|
)
|
|
96
|
|
|
14
|
|
|||
Foreign currency swaps:
|
|
Foreign-denominated fixed maturity securities
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
|||
|
|
Foreign-denominated PABs (2)
|
|
3
|
|
|
(20
|
)
|
|
(17
|
)
|
|||
Foreign currency forwards:
|
|
Foreign-denominated fixed maturity securities
|
|
(51
|
)
|
|
50
|
|
|
(1
|
)
|
|||
Total
|
|
$
|
(135
|
)
|
|
$
|
127
|
|
|
$
|
(8
|
)
|
||
Year Ended December 31, 2011:
|
|
|
|
|
|
|
||||||||
Interest rate swaps:
|
|
Fixed maturity securities
|
|
$
|
(25
|
)
|
|
$
|
22
|
|
|
$
|
(3
|
)
|
|
|
Policyholder liabilities (1)
|
|
1,054
|
|
|
(1,030
|
)
|
|
24
|
|
|||
Foreign currency swaps:
|
|
Foreign-denominated fixed maturity securities
|
|
1
|
|
|
3
|
|
|
4
|
|
|||
|
|
Foreign-denominated PABs (2)
|
|
(24
|
)
|
|
(25
|
)
|
|
(49
|
)
|
|||
Foreign currency forwards:
|
|
Foreign-denominated fixed maturity securities
|
|
(25
|
)
|
|
25
|
|
|
—
|
|
|||
Total
|
|
$
|
981
|
|
|
$
|
(1,005
|
)
|
|
$
|
(24
|
)
|
(1)
|
Fixed rate liabilities reported in PABs or future policy benefits.
|
(2)
|
Fixed rate or floating rate liabilities.
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives in Cash Flow
Hedging Relationships
|
|
Amount of Gains
(Losses)Deferred in
AOCI on Derivatives
|
|
Amount and Location
of Gains (Losses)
Reclassified from
AOCI into Income (Loss)
|
|
Amount and Location
of Gains (Losses)Recognized in Income
(Loss) on Derivatives
|
||||||||||||||
|
|
(Effective Portion)
|
|
(Effective Portion)
|
|
(Ineffective Portion)
|
||||||||||||||
|
|
|
|
Net Derivative
Gains (Losses)
|
|
Net Investment
Income
|
|
Other
Expenses
|
|
Net Derivative
Gains (Losses)
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Year Ended December 31, 2013:
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
|
$
|
(635
|
)
|
|
$
|
20
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
Interest rate forwards
|
|
(59
|
)
|
|
10
|
|
|
3
|
|
|
(1
|
)
|
|
1
|
|
|||||
Foreign currency swaps
|
|
(165
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
1
|
|
|
3
|
|
|||||
Credit forwards
|
|
(4
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
(863
|
)
|
|
$
|
27
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Year Ended December 31, 2012:
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
|
$
|
(34
|
)
|
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
(3
|
)
|
|
$
|
2
|
|
Interest rate forwards
|
|
(17
|
)
|
|
1
|
|
|
2
|
|
|
(1
|
)
|
|
—
|
|
|||||
Foreign currency swaps
|
|
(164
|
)
|
|
23
|
|
|
(5
|
)
|
|
1
|
|
|
(6
|
)
|
|||||
Credit forwards
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
(215
|
)
|
|
$
|
25
|
|
|
$
|
2
|
|
|
$
|
(3
|
)
|
|
$
|
(4
|
)
|
Year Ended December 31, 2011:
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
|
$
|
1,023
|
|
|
$
|
(42
|
)
|
|
$
|
1
|
|
|
$
|
(10
|
)
|
|
$
|
1
|
|
Interest rate forwards
|
|
336
|
|
|
31
|
|
|
1
|
|
|
(1
|
)
|
|
2
|
|
|||||
Foreign currency swaps
|
|
175
|
|
|
—
|
|
|
(6
|
)
|
|
2
|
|
|
2
|
|
|||||
Credit forwards
|
|
18
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
1,552
|
|
|
$
|
(9
|
)
|
|
$
|
(3
|
)
|
|
$
|
(9
|
)
|
|
$
|
5
|
|
Derivatives and Non‑Derivative Hedging Instruments in Net Investment
Hedging Relationships (1), (2)
|
|
Amount of Gains (Losses) Deferred in
AOCI (Effective Portion)
|
||||||||||
|
Years Ended December 31,
|
|||||||||||
|
2013
|
|
2012
|
|
2011
|
|||||||
|
|
(In millions)
|
||||||||||
Foreign currency forwards
|
|
$
|
69
|
|
|
$
|
(50
|
)
|
|
$
|
62
|
|
Currency options
|
|
262
|
|
|
36
|
|
|
—
|
|
|||
Non‑derivative hedging instruments
|
|
—
|
|
|
—
|
|
|
6
|
|
|||
Total
|
|
$
|
331
|
|
|
$
|
(14
|
)
|
|
$
|
68
|
|
(1)
|
During the years ended December 31,
2013
and
2012
, there were
no
sales or substantial liquidations of net investments in foreign operations that would have required the reclassification of gains or losses from AOCI into earnings. During the year ended December 31,
2011
, the Company sold its interest in MSI MetLife, which was a hedged item in a net investment hedging relationship. As a result, the Company released losses of
$71 million
from AOCI upon the sale. This release did not impact net income for the year ended December 31,
2011
as such losses were considered in the overall impairment evaluation of the investment prior to sale. See Note
3
.
|
(2)
|
There was
no
ineffectiveness recognized for the Company’s hedges of net investments in foreign operations. All components of each derivative and non‑derivative hedging instrument’s gain or loss were included in the assessment of hedge effectiveness.
|
|
|
December 31,
|
||||||||||||||||||||
|
|
2013
|
|
2012
|
||||||||||||||||||
Rating Agency Designation of Referenced
Credit Obligations (1)
|
|
Estimated
Fair Value
of Credit
Default
Swaps
|
|
Maximum
Amount of Future
Payments under
Credit Default
Swaps (2)
|
|
Weighted
Average
Years to
Maturity (3)
|
|
Estimated
Fair Value
of Credit
Default
Swaps
|
|
Maximum
Amount of Future
Payments under
Credit Default
Swaps (2)
|
|
Weighted
Average
Years to
Maturity (3)
|
||||||||||
|
|
(In millions)
|
|
|
|
(In millions)
|
|
|
||||||||||||||
Aaa/Aa/A
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single name credit default swaps (corporate)
|
|
$
|
10
|
|
|
$
|
545
|
|
|
2.6
|
|
|
$
|
10
|
|
|
$
|
777
|
|
|
2.7
|
|
Credit default swaps referencing indices
|
|
26
|
|
|
2,739
|
|
|
1.5
|
|
|
42
|
|
|
2,713
|
|
|
2.1
|
|
||||
Subtotal
|
|
36
|
|
|
3,284
|
|
|
1.6
|
|
|
52
|
|
|
3,490
|
|
|
2.2
|
|
||||
Baa
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single name credit default swaps (corporate)
|
|
24
|
|
|
1,320
|
|
|
3.1
|
|
|
8
|
|
|
1,314
|
|
|
3.4
|
|
||||
Credit default swaps referencing indices
|
|
73
|
|
|
4,071
|
|
|
4.7
|
|
|
11
|
|
|
3,750
|
|
|
4.9
|
|
||||
Subtotal
|
|
97
|
|
|
5,391
|
|
|
4.3
|
|
|
19
|
|
|
5,064
|
|
|
4.5
|
|
||||
Ba
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single name credit default swaps (corporate)
|
|
—
|
|
|
5
|
|
|
3.8
|
|
|
—
|
|
|
25
|
|
|
2.7
|
|
||||
Credit default swaps referencing indices
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Subtotal
|
|
—
|
|
|
5
|
|
|
3.8
|
|
|
—
|
|
|
25
|
|
|
2.7
|
|
||||
B
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single name credit default swaps (corporate)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Credit default swaps referencing indices
|
|
32
|
|
|
375
|
|
|
4.9
|
|
|
3
|
|
|
300
|
|
|
4.9
|
|
||||
Subtotal
|
|
32
|
|
|
375
|
|
|
4.9
|
|
|
3
|
|
|
300
|
|
|
4.9
|
|
||||
Total
|
|
$
|
165
|
|
|
$
|
9,055
|
|
|
3.4
|
|
|
$
|
74
|
|
|
$
|
8,879
|
|
|
3.6
|
|
(1)
|
The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), S&P and Fitch Ratings. If no rating is available from a rating agency, then an internally developed rating is used.
|
(2)
|
Assumes the value of the referenced credit obligations is zero.
|
(3)
|
The weighted average years to maturity of the credit default swaps is calculated based on weighted average notional amounts.
|
|
|
December 31, 2013
|
|
December 31, 2012
|
||||||||||||
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement
|
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||
|
|
(In millions)
|
||||||||||||||
Gross estimated fair value of derivatives:
|
|
|
|
|
|
|
|
|
||||||||
OTC-bilateral (1)
|
|
$
|
8,537
|
|
|
$
|
6,367
|
|
|
$
|
14,048
|
|
|
$
|
5,480
|
|
OTC-cleared (1)
|
|
302
|
|
|
129
|
|
|
—
|
|
|
—
|
|
||||
Exchange-traded
|
|
11
|
|
|
53
|
|
|
19
|
|
|
170
|
|
||||
Total gross estimated fair value of derivatives (1)
|
|
8,850
|
|
|
6,549
|
|
|
14,067
|
|
|
5,650
|
|
||||
Amounts offset in the consolidated balance sheets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Estimated fair value of derivatives presented in the consolidated balance sheets (1)
|
|
8,850
|
|
|
6,549
|
|
|
14,067
|
|
|
5,650
|
|
||||
Gross amounts not offset in the consolidated balance sheets:
|
|
|
|
|
|
|
|
|
||||||||
Gross estimated fair value of derivatives: (2)
|
|
|
|
|
|
|
|
|
||||||||
OTC-bilateral
|
|
(4,631
|
)
|
|
(4,631
|
)
|
|
(4,562
|
)
|
|
(4,562
|
)
|
||||
OTC-cleared
|
|
(122
|
)
|
|
(122
|
)
|
|
—
|
|
|
—
|
|
||||
Exchange-traded
|
|
(5
|
)
|
|
(5
|
)
|
|
(19
|
)
|
|
(19
|
)
|
||||
Cash collateral: (3)
|
|
|
|
|
|
|
|
|
||||||||
OTC-bilateral
|
|
(1,679
|
)
|
|
(3
|
)
|
|
(5,960
|
)
|
|
(1
|
)
|
||||
OTC-cleared
|
|
(169
|
)
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
||||
Exchange-traded
|
|
—
|
|
|
(44
|
)
|
|
—
|
|
|
(151
|
)
|
||||
Securities collateral: (4)
|
|
|
|
|
|
|
|
|
||||||||
OTC-bilateral
|
|
(2,105
|
)
|
|
(1,464
|
)
|
|
(3,526
|
)
|
|
(875
|
)
|
||||
OTC-cleared
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Exchange-traded
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
||||
Net amount after application of master netting agreements and collateral
|
|
$
|
139
|
|
|
$
|
269
|
|
|
$
|
—
|
|
|
$
|
42
|
|
(1)
|
At December 31, 2013 and 2012, derivative assets include income or expense accruals reported in accrued investment income or in other liabilities of
$255
million and
$290 million
, respectively, and derivative liabilities include income or expense accruals reported in accrued investment income or in other liabilities of
$28
million and
$114 million
, respectively.
|
(2)
|
Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals.
|
(3)
|
Cash collateral received is included in cash and cash equivalents, short-term investments or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions in the consolidated balance sheets. The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables in the consolidated balance sheets. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At December 31, 2013 and 2012, the Company received excess cash collateral of
$104
million and
$0
, respectively, and provided excess cash collateral of
$236
million and
$290 million
, respectively, which is not included in the table above due to the foregoing limitation.
|
(4)
|
Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the consolidated balance sheets. Subject to certain constraints, the Company is permitted by contract to sell or repledge this collateral, but at December 31,
2013
none
of the collateral had been sold or repledged. Securities collateral pledged by the Company is reported in fixed maturity securities in the consolidated balance sheets. Subject to certain constraints, the counterparties are permitted by contract to sell or repledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At December 31, 2013 and 2012, the Company received excess securities collateral with an estimated fair value of
$238
million and
$161 million
, respectively, for its OTC-bilateral derivatives which are not included in the table above due to the foregoing limitation. At December 31, 2013 and 2012, the Company provided excess securities collateral with an estimated fair value of
$66
million and
$0
, respectively, for its OTC-bilateral derivatives,
$141
million and
$0
, respectively, for its OTC-cleared derivatives, and
$81
million and
$40 million
, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation.
|
|
|
|
Estimated Fair Value of
Collateral Provided:
|
|
Fair Value of Incremental
Collateral Provided Upon:
|
||||||||||||||
|
Estimated
Fair Value of Derivatives in
Net Liability
Position (1)
|
|
Fixed Maturity
Securities
|
|
Cash
|
|
One Notch
Downgrade in
the Company’s
Credit Rating
|
|
Downgrade in the Company’s
Credit Rating to a Level
that Triggers Full Overnight
Collateralization or Termination
of the Derivative Position
|
||||||||||
|
(In millions)
|
||||||||||||||||||
December 31, 2013:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives subject to credit-contingent provisions
|
$
|
1,674
|
|
|
$
|
1,530
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
34
|
|
Derivatives not subject to credit-contingent provisions
|
20
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
1,694
|
|
|
$
|
1,530
|
|
|
$
|
3
|
|
|
$
|
27
|
|
|
$
|
34
|
|
December 31, 2012:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives subject to credit-contingent provisions
|
$
|
771
|
|
|
$
|
775
|
|
|
$
|
—
|
|
|
$
|
35
|
|
|
$
|
73
|
|
Derivatives not subject to credit-contingent provisions
|
79
|
|
|
100
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
850
|
|
|
$
|
875
|
|
|
$
|
1
|
|
|
$
|
35
|
|
|
$
|
73
|
|
(1)
|
After taking into consideration the existence of netting agreements.
|
|
|
|
December 31,
|
||||||
|
Balance Sheet Location
|
|
2013
|
|
2012
|
||||
|
|
|
(In millions)
|
||||||
Net embedded derivatives within asset host contracts:
|
|
|
|
|
|
||||
Ceded guaranteed minimum benefits
|
Premiums, reinsurance and other receivables
|
|
$
|
247
|
|
|
$
|
439
|
|
Funds withheld on assumed reinsurance
|
Other invested assets
|
|
38
|
|
|
66
|
|
||
Options embedded in debt or equity securities
|
Investments
|
|
(145
|
)
|
|
(88
|
)
|
||
Other
|
Other invested assets
|
|
—
|
|
|
1
|
|
||
Net embedded derivatives within asset host contracts
|
|
$
|
140
|
|
|
$
|
418
|
|
|
Net embedded derivatives within liability host contracts:
|
|
|
|
|
|||||
Direct guaranteed minimum benefits
|
PABs
|
|
$
|
(2,296
|
)
|
|
$
|
923
|
|
Assumed guaranteed minimum benefits
|
PABs
|
|
1,262
|
|
|
2,582
|
|
||
Funds withheld on ceded reinsurance
|
Other liabilities
|
|
60
|
|
|
162
|
|
||
Other
|
PABs
|
|
5
|
|
|
17
|
|
||
Net embedded derivatives within liability host contracts
|
|
$
|
(969
|
)
|
|
$
|
3,684
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Net derivative gains (losses) (1)
|
$
|
5,104
|
|
|
$
|
1,239
|
|
|
$
|
(1,284
|
)
|
Policyholder benefits and claims
|
$
|
(139
|
)
|
|
$
|
75
|
|
|
$
|
86
|
|
(1)
|
The valuation of guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses), in connection with this adjustment, were
($952) million
,
($1.7) billion
and
$1.8 billion
for the years ended December 31,
2013
,
2012
and
2011
, respectively.
|
Level 1
|
Unadjusted quoted prices in active markets for identical assets or liabilities. The Company defines active markets based on average trading volume for equity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities.
|
Level 2
|
Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. These inputs can include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other significant inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.
|
Level 3
|
Unobservable inputs that are supported by little or no market activity and are significant to the determination of estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability.
|
|
December 31, 2013
|
||||||||||||||
|
Fair Value Hierarchy
|
|
|
||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total Estimated
Fair Value
|
||||||||
|
(In millions)
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
||||||||
U.S. corporate
|
$
|
—
|
|
|
$
|
99,321
|
|
|
$
|
7,148
|
|
|
$
|
106,469
|
|
Foreign corporate
|
—
|
|
|
56,448
|
|
|
6,704
|
|
|
63,152
|
|
||||
Foreign government
|
—
|
|
|
52,202
|
|
|
2,235
|
|
|
54,437
|
|
||||
U.S. Treasury and agency
|
25,061
|
|
|
20,000
|
|
|
62
|
|
|
45,123
|
|
||||
RMBS
|
—
|
|
|
32,098
|
|
|
2,957
|
|
|
35,055
|
|
||||
CMBS
|
—
|
|
|
15,578
|
|
|
972
|
|
|
16,550
|
|
||||
ABS
|
—
|
|
|
11,361
|
|
|
4,210
|
|
|
15,571
|
|
||||
State and political subdivision
|
—
|
|
|
13,820
|
|
|
10
|
|
|
13,830
|
|
||||
Total fixed maturity securities
|
25,061
|
|
|
300,828
|
|
|
24,298
|
|
|
350,187
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Common stock
|
1,186
|
|
|
990
|
|
|
177
|
|
|
2,353
|
|
||||
Non-redeemable preferred stock
|
—
|
|
|
654
|
|
|
395
|
|
|
1,049
|
|
||||
Total equity securities
|
1,186
|
|
|
1,644
|
|
|
572
|
|
|
3,402
|
|
||||
FVO and trading securities:
|
|
|
|
|
|
|
|
||||||||
Actively Traded Securities
|
2
|
|
|
648
|
|
|
12
|
|
|
662
|
|
||||
FVO general account securities
|
518
|
|
|
80
|
|
|
29
|
|
|
627
|
|
||||
FVO contractholder-directed unit-linked investments
|
10,702
|
|
|
4,806
|
|
|
603
|
|
|
16,111
|
|
||||
FVO securities held by CSEs
|
—
|
|
|
23
|
|
|
—
|
|
|
23
|
|
||||
Total FVO and trading securities
|
11,222
|
|
|
5,557
|
|
|
644
|
|
|
17,423
|
|
||||
Short-term investments (1)
|
5,915
|
|
|
6,943
|
|
|
254
|
|
|
13,112
|
|
||||
Mortgage loans:
|
|
|
|
|
|
|
|
||||||||
Residential mortgage loans — FVO
|
—
|
|
|
—
|
|
|
338
|
|
|
338
|
|
||||
Commercial mortgage loans held by CSEs — FVO
|
—
|
|
|
1,598
|
|
|
—
|
|
|
1,598
|
|
||||
Mortgage loans held-for-sale (2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total mortgage loans
|
—
|
|
|
1,598
|
|
|
338
|
|
|
1,936
|
|
||||
Other invested assets:
|
|
|
|
|
|
|
|
||||||||
Other investments
|
188
|
|
|
71
|
|
|
—
|
|
|
259
|
|
||||
Derivative assets: (3)
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
10
|
|
|
5,557
|
|
|
27
|
|
|
5,594
|
|
||||
Foreign currency exchange rate
|
1
|
|
|
1,280
|
|
|
28
|
|
|
1,309
|
|
||||
Credit
|
—
|
|
|
144
|
|
|
29
|
|
|
173
|
|
||||
Equity market
|
1
|
|
|
1,233
|
|
|
285
|
|
|
1,519
|
|
||||
Total derivative assets
|
12
|
|
|
8,214
|
|
|
369
|
|
|
8,595
|
|
||||
Total other invested assets
|
200
|
|
|
8,285
|
|
|
369
|
|
|
8,854
|
|
||||
Net embedded derivatives within asset host contracts (4)
|
—
|
|
|
—
|
|
|
285
|
|
|
285
|
|
||||
Separate account assets (5)
|
89,960
|
|
|
225,776
|
|
|
1,465
|
|
|
317,201
|
|
||||
Total assets
|
$
|
133,544
|
|
|
$
|
550,631
|
|
|
$
|
28,225
|
|
|
$
|
712,400
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities: (3)
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
$
|
9
|
|
|
$
|
2,568
|
|
|
$
|
14
|
|
|
$
|
2,591
|
|
Foreign currency exchange rate
|
1
|
|
|
1,971
|
|
|
39
|
|
|
2,011
|
|
||||
Credit
|
—
|
|
|
52
|
|
|
—
|
|
|
52
|
|
||||
Equity market
|
43
|
|
|
1,222
|
|
|
602
|
|
|
1,867
|
|
||||
Total derivative liabilities
|
53
|
|
|
5,813
|
|
|
655
|
|
|
6,521
|
|
||||
Net embedded derivatives within liability host contracts (4)
|
—
|
|
|
4
|
|
|
(973
|
)
|
|
(969
|
)
|
||||
Long-term debt of CSEs — FVO
|
—
|
|
|
1,427
|
|
|
28
|
|
|
1,455
|
|
||||
Trading liabilities (6)
|
260
|
|
|
2
|
|
|
—
|
|
|
262
|
|
||||
Total liabilities
|
$
|
313
|
|
|
$
|
7,246
|
|
|
$
|
(290
|
)
|
|
$
|
7,269
|
|
|
December 31, 2012
|
||||||||||||||
|
Fair Value Hierarchy
|
|
|
||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total Estimated Fair Value
|
||||||||
|
(In millions)
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
||||||||
U.S. corporate
|
$
|
—
|
|
|
$
|
106,693
|
|
|
$
|
7,433
|
|
|
$
|
114,126
|
|
Foreign corporate
|
—
|
|
|
60,976
|
|
|
6,208
|
|
|
67,184
|
|
||||
Foreign government
|
—
|
|
|
55,522
|
|
|
1,814
|
|
|
57,336
|
|
||||
U.S. Treasury and agency
|
27,441
|
|
|
20,455
|
|
|
71
|
|
|
47,967
|
|
||||
RMBS
|
—
|
|
|
35,442
|
|
|
2,037
|
|
|
37,479
|
|
||||
CMBS
|
—
|
|
|
17,982
|
|
|
1,147
|
|
|
19,129
|
|
||||
ABS
|
—
|
|
|
12,341
|
|
|
3,656
|
|
|
15,997
|
|
||||
State and political subdivision
|
—
|
|
|
14,994
|
|
|
54
|
|
|
15,048
|
|
||||
Total fixed maturity securities
|
27,441
|
|
|
324,405
|
|
|
22,420
|
|
|
374,266
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Common stock
|
932
|
|
|
1,040
|
|
|
190
|
|
|
2,162
|
|
||||
Non-redeemable preferred stock
|
—
|
|
|
310
|
|
|
419
|
|
|
729
|
|
||||
Total equity securities
|
932
|
|
|
1,350
|
|
|
609
|
|
|
2,891
|
|
||||
FVO and trading securities:
|
|
|
|
|
|
|
|
||||||||
Actively Traded Securities
|
7
|
|
|
646
|
|
|
6
|
|
|
659
|
|
||||
FVO general account securities
|
—
|
|
|
151
|
|
|
32
|
|
|
183
|
|
||||
FVO contractholder-directed unit-linked investments
|
9,103
|
|
|
5,425
|
|
|
937
|
|
|
15,465
|
|
||||
FVO securities held by CSEs
|
—
|
|
|
41
|
|
|
—
|
|
|
41
|
|
||||
Total FVO and trading securities
|
9,110
|
|
|
6,263
|
|
|
975
|
|
|
16,348
|
|
||||
Short-term investments (1)
|
9,426
|
|
|
6,295
|
|
|
429
|
|
|
16,150
|
|
||||
Mortgage loans:
|
|
|
|
|
|
|
|
||||||||
Residential mortgage loans — FVO
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial mortgage loans held by CSEs — FVO
|
—
|
|
|
2,666
|
|
|
—
|
|
|
2,666
|
|
||||
Mortgage loans held-for-sale (2)
|
—
|
|
|
—
|
|
|
49
|
|
|
49
|
|
||||
Total mortgage loans
|
—
|
|
|
2,666
|
|
|
49
|
|
|
2,715
|
|
||||
Other invested assets:
|
|
|
|
|
|
|
|
||||||||
Other investments
|
303
|
|
|
123
|
|
|
—
|
|
|
426
|
|
||||
Derivative assets: (3)
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
1
|
|
|
9,648
|
|
|
206
|
|
|
9,855
|
|
||||
Foreign currency exchange rate
|
4
|
|
|
819
|
|
|
44
|
|
|
867
|
|
||||
Credit
|
—
|
|
|
47
|
|
|
43
|
|
|
90
|
|
||||
Equity market
|
14
|
|
|
2,478
|
|
|
473
|
|
|
2,965
|
|
||||
Total derivative assets
|
19
|
|
|
12,992
|
|
|
766
|
|
|
13,777
|
|
||||
Total other invested assets
|
322
|
|
|
13,115
|
|
|
766
|
|
|
14,203
|
|
||||
Net embedded derivatives within asset host contracts (4)
|
—
|
|
|
1
|
|
|
505
|
|
|
506
|
|
||||
Separate account assets (5)
|
31,620
|
|
|
202,568
|
|
|
1,205
|
|
|
235,393
|
|
||||
Total assets
|
$
|
78,851
|
|
|
$
|
556,663
|
|
|
$
|
26,958
|
|
|
$
|
662,472
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities: (3)
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
$
|
38
|
|
|
$
|
3,001
|
|
|
$
|
29
|
|
|
$
|
3,068
|
|
Foreign currency exchange rate
|
—
|
|
|
1,521
|
|
|
7
|
|
|
1,528
|
|
||||
Credit
|
—
|
|
|
39
|
|
|
—
|
|
|
39
|
|
||||
Equity market
|
132
|
|
|
424
|
|
|
345
|
|
|
901
|
|
||||
Total derivative liabilities
|
170
|
|
|
4,985
|
|
|
381
|
|
|
5,536
|
|
||||
Net embedded derivatives within liability host contracts (4)
|
—
|
|
|
17
|
|
|
3,667
|
|
|
3,684
|
|
||||
Long-term debt of CSEs — FVO
|
—
|
|
|
2,483
|
|
|
44
|
|
|
2,527
|
|
||||
Trading liabilities (6)
|
163
|
|
|
—
|
|
|
—
|
|
|
163
|
|
||||
Total liabilities
|
$
|
333
|
|
|
$
|
7,485
|
|
|
$
|
4,092
|
|
|
$
|
11,910
|
|
(1)
|
Short-term investments as presented in the tables above differ from the amounts presented in the consolidated balance sheets because certain short-term investments are not measured at estimated fair value on a recurring basis.
|
(2)
|
See “— Fair Value Option” for additional information on mortgage loans held-for-sale. The amounts in the preceding tables differ from the amounts presented in the consolidated balance sheets as these tables do not include mortgage loans that are stated at lower of amortized cost or estimated fair value.
|
(3)
|
Derivative assets are presented within other invested assets in the consolidated balance sheets and derivative liabilities are presented within other liabilities in the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation in the consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables.
|
(4)
|
Net embedded derivatives within asset host contracts are presented primarily within premiums, reinsurance and other receivables in the consolidated balance sheets. Net embedded derivatives within liability host contracts are presented primarily within PABs in the consolidated balance sheets. At December 31,
2013
and 2012, equity securities also included embedded derivatives of
($145) million
and
($88) million
, respectively.
|
(5)
|
Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets.
|
(6)
|
Trading liabilities are presented within other liabilities in the consolidated balance sheets.
|
|
|
|
|
|
|
|
December 31, 2013
|
|
December 31, 2012
|
|
Impact of
Increase in Input on Estimated Fair Value (2) |
||||||||
|
Valuation
Techniques |
|
Significant
Unobservable Inputs |
|
Range
|
|
Weighted
Average (1) |
|
Range
|
|
Weighted
Average (1) |
|
|||||||
Fixed maturity securities: (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
U.S. corporate and foreign corporate
|
•
|
Matrix pricing
|
|
•
|
Delta spread adjustments (4)
|
|
(10)
|
-
|
240
|
|
46
|
|
(50)
|
-
|
500
|
|
90
|
|
Decrease
|
|
|
|
|
•
|
Illiquidity premium (4)
|
|
30
|
-
|
30
|
|
30
|
|
30
|
-
|
30
|
|
30
|
|
Decrease
|
|
|
|
|
•
|
Credit spreads (4)
|
|
(1,489)
|
-
|
876
|
|
174
|
|
(1,416)
|
-
|
876
|
|
272
|
|
Decrease
|
|
|
|
|
•
|
Offered quotes (5)
|
|
4
|
-
|
145
|
|
100
|
|
—
|
-
|
348
|
|
115
|
|
Increase
|
|
•
|
Consensus pricing
|
|
•
|
Offered quotes (5)
|
|
33
|
-
|
145
|
|
95
|
|
—
|
-
|
555
|
|
92
|
|
Increase
|
Foreign government
|
•
|
Matrix pricing
|
|
•
|
Credit spreads (4)
|
|
4
|
-
|
72
|
|
32
|
|
(58)
|
-
|
150
|
|
72
|
|
Decrease
|
|
•
|
Market pricing
|
|
•
|
Quoted prices (5)
|
|
64
|
-
|
156
|
|
100
|
|
77
|
-
|
146
|
|
99
|
|
Increase
|
|
•
|
Consensus pricing
|
|
•
|
Offered quotes (5)
|
|
84
|
-
|
156
|
|
107
|
|
82
|
-
|
200
|
|
117
|
|
Increase
|
RMBS
|
•
|
Matrix pricing and
discounted cash flow |
|
•
|
Credit spreads (4)
|
|
(136)
|
-
|
3,609
|
|
288
|
|
9
|
-
|
2,980
|
|
521
|
|
Decrease (6)
|
|
•
|
Market pricing
|
|
•
|
Quoted prices (5)
|
|
10
|
-
|
109
|
|
98
|
|
13
|
-
|
109
|
|
100
|
|
Increase (6)
|
|
•
|
Consensus pricing
|
|
•
|
Offered quotes (5)
|
|
69
|
-
|
101
|
|
93
|
|
28
|
-
|
100
|
|
75
|
|
Increase (6)
|
CMBS
|
•
|
Matrix pricing and
discounted cash flow |
|
•
|
Credit spreads (4)
|
|
215
|
-
|
2,025
|
|
409
|
|
1
|
-
|
9,164
|
|
374
|
|
Decrease (6)
|
|
•
|
Market pricing
|
|
•
|
Quoted prices (5)
|
|
70
|
-
|
104
|
|
97
|
|
1
|
-
|
106
|
|
99
|
|
Increase (6)
|
|
•
|
Consensus pricing
|
|
•
|
Offered quotes (5)
|
|
90
|
-
|
101
|
|
95
|
|
|
|
|
|
|
|
Increase (6)
|
ABS
|
•
|
Matrix pricing and
discounted cash flow |
|
•
|
Credit spreads (4)
|
|
30
|
-
|
1,878
|
|
145
|
|
—
|
-
|
1,829
|
|
109
|
|
Decrease (6)
|
|
•
|
Market pricing
|
|
•
|
Quoted prices (5)
|
|
—
|
-
|
110
|
|
101
|
|
40
|
-
|
105
|
|
100
|
|
Increase (6)
|
|
•
|
Consensus pricing
|
|
•
|
Offered quotes (5)
|
|
56
|
-
|
106
|
|
98
|
|
—
|
-
|
111
|
|
97
|
|
Increase (6)
|
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
|
•
|
Present value techniques
|
|
•
|
Swap yield (7)
|
|
248
|
-
|
450
|
|
|
|
186
|
-
|
353
|
|
|
|
Increase (12)
|
Foreign currency exchange rate
|
•
|
Present value techniques
|
|
•
|
Swap yield (7)
|
|
97
|
-
|
767
|
|
|
|
228
|
-
|
795
|
|
|
|
Increase (12)
|
|
|
|
|
•
|
Correlation (8)
|
|
38%
|
-
|
47%
|
|
|
|
43%
|
-
|
57%
|
|
|
|
|
Credit
|
•
|
Present value techniques
|
|
•
|
Credit spreads (9)
|
|
98
|
-
|
101
|
|
|
|
100
|
-
|
100
|
|
|
|
Decrease (9)
|
|
•
|
Consensus pricing
|
|
•
|
Offered quotes (10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity market
|
•
|
Present value techniques
or option pricing models |
|
•
|
Volatility (11)
|
|
13%
|
-
|
28%
|
|
|
|
13%
|
-
|
32%
|
|
|
|
Increase (12)
|
|
|
|
|
•
|
Correlation (8)
|
|
60%
|
-
|
60%
|
|
|
|
65%
|
-
|
65%
|
|
|
|
|
Embedded derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Direct and assumed guaranteed minimum benefits
|
•
|
Option pricing
techniques |
|
•
|
Mortality rates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ages 0 - 40
|
|
0%
|
-
|
0.14%
|
|
|
|
0%
|
-
|
0.14%
|
|
|
|
Decrease (13)
|
|
|
|
|
|
Ages 41 - 60
|
|
0.04%
|
-
|
0.88%
|
|
|
|
0.05%
|
-
|
0.88%
|
|
|
|
Decrease (13)
|
|
|
|
|
|
Ages 61 - 115
|
|
0.26%
|
-
|
100%
|
|
|
|
0.26%
|
-
|
100%
|
|
|
|
Decrease (13)
|
|
|
|
|
•
|
Lapse rates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Durations 1 - 10
|
|
0.50%
|
-
|
100%
|
|
|
|
0.50%
|
-
|
100%
|
|
|
|
Decrease (14)
|
|
|
|
|
|
Durations 11 - 20
|
|
2%
|
-
|
100%
|
|
|
|
2%
|
-
|
100%
|
|
|
|
Decrease (14)
|
|
|
|
|
|
Durations 21 - 116
|
|
2%
|
-
|
100%
|
|
|
|
2%
|
-
|
100%
|
|
|
|
Decrease (14)
|
|
|
|
|
•
|
Utilization rates
|
|
20%
|
-
|
50%
|
|
|
|
20%
|
-
|
50%
|
|
|
|
Increase (15)
|
|
|
|
|
•
|
Withdrawal rates
|
|
0%
|
-
|
40%
|
|
|
|
0.07%
|
-
|
20%
|
|
|
|
(16)
|
|
|
|
|
•
|
Long-term equity volatilities
|
|
9.14%
|
-
|
40%
|
|
|
|
15.18%
|
-
|
40%
|
|
|
|
Increase (17)
|
|
|
|
|
•
|
Nonperformance risk spread
|
|
(1.08)%
|
-
|
0.83%
|
|
|
|
0.10%
|
-
|
1.72%
|
|
|
|
Decrease (18)
|
(1)
|
The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities.
|
(2)
|
The impact of a decrease in input would have the opposite impact on the estimated fair value. For embedded derivatives, changes are based on liability positions.
|
(3)
|
Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations.
|
(4)
|
Range and weighted average are presented in basis points.
|
(5)
|
Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par.
|
(6)
|
Changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates.
|
(7)
|
Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curve is utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.
|
(8)
|
Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations.
|
(9)
|
Represents the risk quoted in basis points of a credit default event on the underlying instrument. The range being provided is a single quoted spread in the valuation model. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps.
|
(10)
|
At both December 31, 2013 and 2012, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value.
|
(11)
|
Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.
|
(12)
|
Changes are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions.
|
(13)
|
Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.
|
(14)
|
Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.
|
(15)
|
The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.
|
(16)
|
The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value.
|
(17)
|
Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.
|
(18)
|
Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative.
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||||||||||
|
Fixed Maturity Securities:
|
||||||||||||||||||||||||||||||
|
U.S.
Corporate
|
|
Foreign
Corporate
|
|
Foreign
Government
|
|
U.S.
Treasury
and Agency
|
|
RMBS
|
|
CMBS
|
|
ABS
|
|
State and
Political
Subdivision
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Year Ended December 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at January 1,
|
$
|
7,433
|
|
|
$
|
6,208
|
|
|
$
|
1,814
|
|
|
$
|
71
|
|
|
$
|
2,037
|
|
|
$
|
1,147
|
|
|
$
|
3,656
|
|
|
$
|
54
|
|
Total realized/unrealized gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net income (loss): (1), (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net investment income
|
10
|
|
|
9
|
|
|
9
|
|
|
—
|
|
|
31
|
|
|
5
|
|
|
8
|
|
|
—
|
|
||||||||
Net investment gains (losses)
|
(31
|
)
|
|
(33
|
)
|
|
8
|
|
|
—
|
|
|
(3
|
)
|
|
(14
|
)
|
|
5
|
|
|
—
|
|
||||||||
Net derivative gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Other revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Policyholder benefits and claims
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Other expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
OCI
|
(94
|
)
|
|
(75
|
)
|
|
(84
|
)
|
|
(3
|
)
|
|
155
|
|
|
(45
|
)
|
|
(70
|
)
|
|
(1
|
)
|
||||||||
Purchases (3)
|
1,555
|
|
|
1,972
|
|
|
734
|
|
|
—
|
|
|
1,155
|
|
|
546
|
|
|
1,870
|
|
|
—
|
|
||||||||
Sales (3)
|
(1,178
|
)
|
|
(999
|
)
|
|
(128
|
)
|
|
(6
|
)
|
|
(399
|
)
|
|
(450
|
)
|
|
(814
|
)
|
|
(7
|
)
|
||||||||
Issuances (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Settlements (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Transfers into Level 3 (4)
|
1,092
|
|
|
310
|
|
|
81
|
|
|
—
|
|
|
56
|
|
|
114
|
|
|
33
|
|
|
—
|
|
||||||||
Transfers out of Level 3 (4)
|
(1,639
|
)
|
|
(688
|
)
|
|
(199
|
)
|
|
—
|
|
|
(75
|
)
|
|
(331
|
)
|
|
(478
|
)
|
|
(36
|
)
|
||||||||
Balance at December 31,
|
$
|
7,148
|
|
|
$
|
6,704
|
|
|
$
|
2,235
|
|
|
$
|
62
|
|
|
$
|
2,957
|
|
|
$
|
972
|
|
|
$
|
4,210
|
|
|
$
|
10
|
|
Changes in unrealized gains (losses) included in net income (loss): (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net investment income
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
36
|
|
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
—
|
|
Net investment gains (losses)
|
$
|
(39
|
)
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
(12
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Net derivative gains (losses)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Policyholder benefits and claims
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other expenses
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||||||||||
|
Equity Securities:
|
|
FVO and Trading Securities:
|
|
|
|
Mortgage Loans:
|
||||||||||||||||||||||||
|
Common
Stock
|
|
Non-
redeemable
Preferred
Stock
|
|
Actively
Traded
Securities
|
|
FVO
General
Account
Securities
|
|
FVO
Contractholder-
directed
Unit-linked
Investments
|
|
Short-term
Investments
|
|
Residential
Mortgage
Loans - FVO
|
|
Mortgage
Loans Held-
for-sale
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Year Ended December 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at January 1,
|
$
|
190
|
|
|
$
|
419
|
|
|
$
|
6
|
|
|
$
|
32
|
|
|
$
|
937
|
|
|
$
|
429
|
|
|
$
|
—
|
|
|
$
|
49
|
|
Total realized/unrealized gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net income (loss): (1), (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net investment income
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
(8
|
)
|
|
3
|
|
|
1
|
|
|
—
|
|
||||||||
Net investment gains (losses)
|
26
|
|
|
(32
|
)
|
|
—
|
|
|
6
|
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
||||||||
Net derivative gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Other revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Policyholder benefits and claims
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Other expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
OCI
|
—
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
—
|
|
||||||||
Purchases (3)
|
9
|
|
|
21
|
|
|
9
|
|
|
—
|
|
|
340
|
|
|
256
|
|
|
339
|
|
|
—
|
|
||||||||
Sales (3)
|
(45
|
)
|
|
(113
|
)
|
|
—
|
|
|
(30
|
)
|
|
(608
|
)
|
|
(427
|
)
|
|
(2
|
)
|
|
(45
|
)
|
||||||||
Issuances (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Settlements (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||||||
Transfers into Level 3 (4)
|
1
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
235
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Transfers out of Level 3 (4)
|
(4
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(293
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
||||||||
Balance at December 31,
|
$
|
177
|
|
|
$
|
395
|
|
|
$
|
12
|
|
|
$
|
29
|
|
|
$
|
603
|
|
|
$
|
254
|
|
|
$
|
338
|
|
|
$
|
—
|
|
Changes in unrealized gains (losses) included in net income (loss): (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net investment income
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
(1
|
)
|
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
—
|
|
Net investment gains (losses)
|
$
|
(3
|
)
|
|
$
|
(20
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net derivative gains (losses)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Policyholder benefits and claims
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other expenses
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||||||
|
Net Derivatives: (6)
|
|
|
|
|
|
|
||||||||||||||||||||
|
Interest
Rate
|
|
Foreign
Currency
Exchange
Rate
|
|
Credit
|
|
Equity
Market
|
|
Net
Embedded
Derivatives (7)
|
|
Separate
Account
Assets (8)
|
|
Long-term
Debt of
CSEs - FVO
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Year Ended December 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at January 1,
|
$
|
177
|
|
|
$
|
37
|
|
|
$
|
43
|
|
|
$
|
128
|
|
|
$
|
(3,162
|
)
|
|
$
|
1,205
|
|
|
$
|
(44
|
)
|
Total realized/unrealized gains(losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income (loss): (1), (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net investment income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Net investment gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|
(2
|
)
|
|||||||
Net derivative gains (losses)
|
(16
|
)
|
|
(49
|
)
|
|
(12
|
)
|
|
(479
|
)
|
|
5,041
|
|
|
—
|
|
|
—
|
|
|||||||
Other revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Policyholder benefits and claims
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
(139
|
)
|
|
—
|
|
|
—
|
|
|||||||
Other expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
OCI
|
(102
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
300
|
|
|
—
|
|
|
—
|
|
|||||||
Purchases (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
294
|
|
|
—
|
|
|||||||
Sales (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(319
|
)
|
|
—
|
|
|||||||
Issuances (3)
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
72
|
|
|
—
|
|
|||||||
Settlements (3)
|
(31
|
)
|
|
2
|
|
|
(1
|
)
|
|
1
|
|
|
(782
|
)
|
|
—
|
|
|
18
|
|
|||||||
Transfers into Level 3 (4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
240
|
|
|
—
|
|
|||||||
Transfers out of Level 3 (4)
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(62
|
)
|
|
—
|
|
|||||||
Balance at December 31,
|
$
|
13
|
|
|
$
|
(11
|
)
|
|
$
|
29
|
|
|
$
|
(317
|
)
|
|
$
|
1,258
|
|
|
$
|
1,465
|
|
|
$
|
(28
|
)
|
Changes in unrealized gains (losses) included in net income (loss): (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net investment income
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net investment gains (losses)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net derivative gains (losses)
|
$
|
(8
|
)
|
|
$
|
(46
|
)
|
|
$
|
(10
|
)
|
|
$
|
(463
|
)
|
|
$
|
5,022
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Policyholder benefits and claims
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
(135
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Other expenses
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||||||||||
|
Fixed Maturity Securities:
|
||||||||||||||||||||||||||||||
|
U.S.
Corporate
|
|
Foreign
Corporate
|
|
Foreign
Government
|
|
U.S
Treasury
and Agency
|
|
RMBS
|
|
CMBS
|
|
ABS
|
|
State and
Political
Subdivision
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Year Ended December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at January 1,
|
$
|
6,784
|
|
|
$
|
4,370
|
|
|
$
|
2,322
|
|
|
$
|
31
|
|
|
$
|
1,602
|
|
|
$
|
753
|
|
|
$
|
1,850
|
|
|
$
|
53
|
|
Total realized/unrealized gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net income (loss): (1), (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net investment income
|
14
|
|
|
20
|
|
|
14
|
|
|
—
|
|
|
27
|
|
|
8
|
|
|
18
|
|
|
—
|
|
||||||||
Net investment gains (losses)
|
4
|
|
|
(78
|
)
|
|
(3
|
)
|
|
—
|
|
|
(7
|
)
|
|
(42
|
)
|
|
2
|
|
|
—
|
|
||||||||
Net derivative gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Other revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Policyholder benefits and claims
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Other expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
OCI
|
328
|
|
|
294
|
|
|
45
|
|
|
—
|
|
|
275
|
|
|
(4
|
)
|
|
(2
|
)
|
|
3
|
|
||||||||
Purchases (3)
|
1,718
|
|
|
2,654
|
|
|
431
|
|
|
48
|
|
|
952
|
|
|
682
|
|
|
2,007
|
|
|
5
|
|
||||||||
Sales (3)
|
(1,207
|
)
|
|
(855
|
)
|
|
(673
|
)
|
|
(8
|
)
|
|
(704
|
)
|
|
(397
|
)
|
|
(177
|
)
|
|
(7
|
)
|
||||||||
Issuances (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Settlements (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Transfers into Level 3 (4)
|
661
|
|
|
186
|
|
|
28
|
|
|
—
|
|
|
161
|
|
|
177
|
|
|
6
|
|
|
—
|
|
||||||||
Transfers out of Level 3 (4)
|
(869
|
)
|
|
(383
|
)
|
|
(350
|
)
|
|
—
|
|
|
(269
|
)
|
|
(30
|
)
|
|
(48
|
)
|
|
—
|
|
||||||||
Balance at December 31,
|
$
|
7,433
|
|
|
$
|
6,208
|
|
|
$
|
1,814
|
|
|
$
|
71
|
|
|
$
|
2,037
|
|
|
$
|
1,147
|
|
|
$
|
3,656
|
|
|
$
|
54
|
|
Changes in unrealized gains (losses) included in net income (loss): (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net investment income
|
$
|
12
|
|
|
$
|
19
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
2
|
|
|
$
|
18
|
|
|
$
|
—
|
|
Net investment gains (losses)
|
$
|
(4
|
)
|
|
$
|
(30
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Net derivative gains (losses)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Policyholder benefits and claims
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other expenses
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||||||||||
|
Equity Securities:
|
|
FVO and Trading Securities:
|
|
|
|
Mortgage Loans:
|
||||||||||||||||||||||||
|
Common
Stock
|
|
Non-
redeemable
Preferred
Stock
|
|
Actively
Traded
Securities
|
|
FVO
General
Account
Securities
|
|
FVO
Contractholder-
directed
Unit-linked
Investments
|
|
Short-term
Investments
|
|
Residential
Mortgage
Loans - FVO
|
|
Mortgage Loans Held-
for-sale
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Year Ended December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at January 1,
|
$
|
281
|
|
|
$
|
438
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
1,386
|
|
|
$
|
590
|
|
|
$
|
—
|
|
|
$
|
1,414
|
|
Total realized/unrealized gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net income (loss): (1), (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net investment income
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
25
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||||||
Net investment gains (losses)
|
(1
|
)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net derivative gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Other revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(35
|
)
|
||||||||
Policyholder benefits and claims
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Other expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
OCI
|
13
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(26
|
)
|
|
—
|
|
|
—
|
|
||||||||
Purchases (3)
|
99
|
|
|
5
|
|
|
6
|
|
|
—
|
|
|
604
|
|
|
425
|
|
|
—
|
|
|
1
|
|
||||||||
Sales (3)
|
(140
|
)
|
|
(66
|
)
|
|
—
|
|
|
(9
|
)
|
|
(1,040
|
)
|
|
(559
|
)
|
|
—
|
|
|
(1,348
|
)
|
||||||||
Issuances (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
||||||||
Settlements (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(43
|
)
|
||||||||
Transfers into Level 3 (4)
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
56
|
|
||||||||
Transfers out of Level 3 (4)
|
(65
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(38
|
)
|
|
(8
|
)
|
|
—
|
|
|
(3
|
)
|
||||||||
Balance at December 31,
|
$
|
190
|
|
|
$
|
419
|
|
|
$
|
6
|
|
|
$
|
32
|
|
|
$
|
937
|
|
|
$
|
429
|
|
|
$
|
—
|
|
|
$
|
49
|
|
Changes in unrealized gains (losses) included in net income (loss): (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net investment income
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14
|
|
|
$
|
25
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net investment gains (losses)
|
$
|
(11
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net derivative gains (losses)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(29
|
)
|
Policyholder benefits and claims
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other expenses
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||||||||||||||
|
Net Derivatives: (6)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Interest
Rate
|
|
Foreign
Currency
Exchange
Rate
|
|
Credit
|
|
Equity
Market
|
|
Net
Embedded
Derivatives (7)
|
|
Separate
Account
Assets (8)
|
|
Long-term
Debt of
CSEs - FVO
|
|
MSRs (9)
|
|
Liability Related
to Securitized
Reverse Mortgage
Loans (9)
|
||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||||||
Year Ended December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at January 1,
|
$
|
300
|
|
|
$
|
44
|
|
|
$
|
1
|
|
|
$
|
889
|
|
|
$
|
(4,203
|
)
|
|
$
|
1,325
|
|
|
$
|
(116
|
)
|
|
$
|
666
|
|
|
$
|
(1,175
|
)
|
Total realized/unrealized gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net income (loss): (1), (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net investment income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Net investment gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
99
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|||||||||
Net derivative gains (losses)
|
15
|
|
|
10
|
|
|
48
|
|
|
(606
|
)
|
|
1,305
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Other revenues
|
(67
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(83
|
)
|
|
1
|
|
|||||||||
Policyholder benefits and claims
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
75
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Other expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
OCI
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
259
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Purchases (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
244
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Sales (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(443
|
)
|
|
—
|
|
|
(485
|
)
|
|
1,149
|
|
|||||||||
Issuances (3)
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(44
|
)
|
|
—
|
|
|
2
|
|
|
—
|
|
|
43
|
|
|
—
|
|
|||||||||
Settlements (3)
|
(71
|
)
|
|
(17
|
)
|
|
(3
|
)
|
|
(156
|
)
|
|
(598
|
)
|
|
(1
|
)
|
|
79
|
|
|
(141
|
)
|
|
23
|
|
|||||||||
Transfers into Level 3 (4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Transfers out of Level 3 (4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(45
|
)
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||||||
Balance at December 31,
|
$
|
177
|
|
|
$
|
37
|
|
|
$
|
43
|
|
|
$
|
128
|
|
|
$
|
(3,162
|
)
|
|
$
|
1,205
|
|
|
$
|
(44
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Changes in unrealized gains (losses) included in net income (loss): (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net investment income
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net investment gains (losses)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(7
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Net derivative gains (losses)
|
$
|
—
|
|
|
$
|
(12
|
)
|
|
$
|
47
|
|
|
$
|
(593
|
)
|
|
$
|
1,275
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Policyholder benefits and claims
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
29
|
|
|
$
|
78
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other expenses
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||||||||||||||
|
Fixed Maturity Securities:
|
||||||||||||||||||||||||||||||||||
|
U.S.
Corporate
|
|
Foreign
Corporate
|
|
Foreign
Government
|
|
U.S.
Treasury
and Agency
|
|
RMBS
|
|
CMBS
|
|
ABS
|
|
State and
Political
Subdivision
|
|
Other
|
||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||||||
Year Ended December 31, 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at January 1,
|
$
|
7,149
|
|
|
$
|
5,726
|
|
|
$
|
3,134
|
|
|
$
|
79
|
|
|
$
|
2,541
|
|
|
$
|
1,011
|
|
|
$
|
3,026
|
|
|
$
|
46
|
|
|
$
|
4
|
|
Total realized/unrealized gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net income (loss): (1), (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net investment income
|
11
|
|
|
27
|
|
|
18
|
|
|
—
|
|
|
10
|
|
|
25
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|||||||||
Net investment gains (losses)
|
17
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
(41
|
)
|
|
(16
|
)
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
|||||||||
Net derivative gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Other revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Policyholder benefits and claims
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Other expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
OCI
|
327
|
|
|
(66
|
)
|
|
—
|
|
|
3
|
|
|
(5
|
)
|
|
71
|
|
|
81
|
|
|
(8
|
)
|
|
—
|
|
|||||||||
Purchases (3)
|
912
|
|
|
1,740
|
|
|
529
|
|
|
6
|
|
|
393
|
|
|
283
|
|
|
1,033
|
|
|
11
|
|
|
—
|
|
|||||||||
Sales (3)
|
(887
|
)
|
|
(2,094
|
)
|
|
(179
|
)
|
|
(1
|
)
|
|
(213
|
)
|
|
(178
|
)
|
|
(659
|
)
|
|
(4
|
)
|
|
(4
|
)
|
|||||||||
Issuances (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Settlements (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Transfers into Level 3 (4)
|
169
|
|
|
211
|
|
|
123
|
|
|
—
|
|
|
20
|
|
|
52
|
|
|
14
|
|
|
10
|
|
|
—
|
|
|||||||||
Transfers out of Level 3 (4)
|
(914
|
)
|
|
(1,165
|
)
|
|
(1,303
|
)
|
|
(56
|
)
|
|
(1,103
|
)
|
|
(495
|
)
|
|
(1,651
|
)
|
|
(2
|
)
|
|
—
|
|
|||||||||
Balance at December 31,
|
$
|
6,784
|
|
|
$
|
4,370
|
|
|
$
|
2,322
|
|
|
$
|
31
|
|
|
$
|
1,602
|
|
|
$
|
753
|
|
|
$
|
1,850
|
|
|
$
|
53
|
|
|
$
|
—
|
|
Changes in unrealized gains (losses) included in net income (loss): (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net investment income
|
$
|
10
|
|
|
$
|
19
|
|
|
$
|
18
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
24
|
|
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net investment gains (losses)
|
$
|
(27
|
)
|
|
$
|
(31
|
)
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
(41
|
)
|
|
$
|
(14
|
)
|
|
$
|
(10
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Net derivative gains (losses)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Policyholder benefits and claims
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other expenses
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||||||||||
|
Equity Securities:
|
|
FVO and Trading Securities:
|
|
|
|
Mortgage Loans:
|
||||||||||||||||||||||||
|
Common
Stock
|
|
Non-
redeemable
Preferred
Stock
|
|
Actively
Traded
Securities
|
|
FVO
General
Account
Securities
|
|
FVO
Contractholder-
directed
Unit-linked
Investments
|
|
Short-term
Investments
|
|
Residential
Mortgage
Loans - FVO
|
|
Mortgage
Loans Held-
for-sale
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Year Ended December 31, 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at January 1,
|
$
|
268
|
|
|
$
|
905
|
|
|
$
|
10
|
|
|
$
|
77
|
|
|
$
|
735
|
|
|
$
|
858
|
|
|
$
|
—
|
|
|
$
|
24
|
|
Total realized/unrealized gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net income (loss): (1), (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net investment income
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
5
|
|
|
3
|
|
|
—
|
|
|
—
|
|
||||||||
Net investment gains (losses)
|
14
|
|
|
(71
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
||||||||
Net derivative gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Other revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||||||
Policyholder benefits and claims
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Other expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
OCI
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||||||
Purchases (3)
|
106
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
1,246
|
|
|
600
|
|
|
—
|
|
|
3
|
|
||||||||
Sales (3)
|
(46
|
)
|
|
(416
|
)
|
|
(8
|
)
|
|
(33
|
)
|
|
(478
|
)
|
|
(870
|
)
|
|
—
|
|
|
—
|
|
||||||||
Issuances (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,361
|
|
||||||||
Settlements (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(87
|
)
|
||||||||
Transfers into Level 3 (4)
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
121
|
|
|
—
|
|
|
—
|
|
|
109
|
|
||||||||
Transfers out of Level 3 (4)
|
(66
|
)
|
|
—
|
|
|
(2
|
)
|
|
(14
|
)
|
|
(243
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||||||
Balance at December 31,
|
$
|
281
|
|
|
$
|
438
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
1,386
|
|
|
$
|
590
|
|
|
$
|
—
|
|
|
$
|
1,414
|
|
Changes in unrealized gains (losses) included in net income (loss): (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net investment income
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(8
|
)
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net investment gains (losses)
|
$
|
(6
|
)
|
|
$
|
(19
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Net derivative gains (losses)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
Policyholder benefits and claims
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other expenses
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||||||||||||||
|
Net Derivatives: (6)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Interest
Rate
|
|
Foreign
Currency
Exchange
Rate
|
|
Credit
|
|
Equity
Market
|
|
Net
Embedded
Derivatives (7)
|
|
Separate
Account
Assets (8)
|
|
Long-term
Debt of
CSEs - FVO
|
|
MSRs (9)
|
|
Liability Related
to Securitized
Reverse Mortgage
Loans (9)
|
||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||||||
Year Ended December 31, 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at January 1,
|
$
|
(86
|
)
|
|
$
|
73
|
|
|
$
|
44
|
|
|
$
|
142
|
|
|
$
|
(2,438
|
)
|
|
$
|
1,983
|
|
|
$
|
(184
|
)
|
|
$
|
950
|
|
|
$
|
—
|
|
Total realized/unrealized gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net income (loss): (1), (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net investment income
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Net investment gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|||||||||
Net derivative gains (losses)
|
41
|
|
|
(28
|
)
|
|
(43
|
)
|
|
601
|
|
|
(1,277
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Other revenues
|
62
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(314
|
)
|
|
—
|
|
|||||||||
Policyholder benefits and claims
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
86
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Other expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
OCI
|
329
|
|
|
—
|
|
|
14
|
|
|
1
|
|
|
(119
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Purchases (3)
|
(1
|
)
|
|
—
|
|
|
1
|
|
|
228
|
|
|
—
|
|
|
284
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Sales (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(743
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Issuances (3)
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
173
|
|
|
(1,175
|
)
|
|||||||||
Settlements (3)
|
(44
|
)
|
|
(1
|
)
|
|
(12
|
)
|
|
(8
|
)
|
|
(455
|
)
|
|
—
|
|
|
76
|
|
|
(143
|
)
|
|
—
|
|
|||||||||
Transfers into Level 3 (4)
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Transfers out of Level 3 (4)
|
—
|
|
|
—
|
|
|
—
|
|
|
(75
|
)
|
|
—
|
|
|
(257
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Balance at December 31,
|
$
|
300
|
|
|
$
|
44
|
|
|
$
|
1
|
|
|
$
|
889
|
|
|
$
|
(4,203
|
)
|
|
$
|
1,325
|
|
|
$
|
(116
|
)
|
|
$
|
666
|
|
|
$
|
(1,175
|
)
|
Changes in unrealized gains (losses) included in net income (loss): (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net investment income
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net investment gains (losses)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(8
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Net derivative gains (losses)
|
$
|
24
|
|
|
$
|
(24
|
)
|
|
$
|
(42
|
)
|
|
$
|
601
|
|
|
$
|
(1,303
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other revenues
|
$
|
68
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(282
|
)
|
|
$
|
—
|
|
Policyholder benefits and claims
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
94
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other expenses
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities and certain mortgage loans are included in net investment gains (losses) while changes in the estimated fair value of certain mortgage loans and MSRs are included in other revenues. Lapses associated with net embedded derivatives are included in net derivative gains (losses).
|
(2)
|
Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.
|
(3)
|
Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements.
|
(4)
|
Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward.
|
(5)
|
Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods.
|
(6)
|
Freestanding derivative assets and liabilities are presented net for purposes of the rollforward.
|
(7)
|
Embedded derivative assets and liabilities are presented net for purposes of the rollforward.
|
(8)
|
Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income. For the purpose of this disclosure, these changes are presented within net investment gains (losses).
|
(9)
|
See Note 3 for a discussion of the MetLife Bank Divestiture. Other revenues related to MSRs represent the changes in estimated fair value due to changes in valuation model inputs or assumptions.
|
|
|
Residential Mortgage
Loans — FVO (1)
|
|
Certain Assets
and Liabilities
of CSEs (2)
|
||||||||||||
|
|
December 31,
|
|
December 31,
|
||||||||||||
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
|
(In millions)
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Unpaid principal balance
|
|
$
|
508
|
|
|
$
|
—
|
|
|
$
|
1,528
|
|
|
$
|
2,539
|
|
Difference between estimated fair value and unpaid principal balance
|
|
(170
|
)
|
|
—
|
|
|
70
|
|
|
127
|
|
||||
Carrying value at estimated fair value
|
|
$
|
338
|
|
|
$
|
—
|
|
|
$
|
1,598
|
|
|
$
|
2,666
|
|
Loans in non-accrual status
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Loans more than 90 days past due
|
|
$
|
81
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Loans in non-accrual status or more than 90 days past due, or both — difference between aggregate estimated fair value and unpaid principal balance
|
|
$
|
(82
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Contractual principal balance
|
|
|
|
|
|
$
|
1,445
|
|
|
$
|
2,430
|
|
||||
Difference between estimated fair value and contractual principal balance
|
|
|
|
|
|
10
|
|
|
97
|
|
||||||
Carrying value at estimated fair value
|
|
|
|
|
|
$
|
1,455
|
|
|
$
|
2,527
|
|
(1)
|
Interest income, changes in estimated fair value and gains or losses on sales are recognized in net investment income. Changes in estimated fair value for these loans were due to the following:
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Instrument-specific credit risk based on changes in credit spreads for non-agency loans and adjustments in individual loan quality
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Other changes in estimated fair value
|
1
|
|
|
—
|
|
|
—
|
|
|||
Total gains (losses) recognized in net investment income
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(2)
|
These assets and liabilities are comprised of commercial mortgage loans and long-term debt. Changes in estimated fair value on these assets and liabilities and gains or losses on sales of these assets are recognized in net investment gains (losses). Interest income on commercial mortgage loans held by CSEs — FVO is recognized in net investment income. Interest expense from long-term debt of CSEs — FVO is recognized in other expenses.
|
|
At December 31,
|
|
Years Ended December 31,
|
||||||||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2013
|
|
2012
|
|
2011
|
||||||||||||
|
Carrying Value After Measurement
|
|
Gains (Losses)
|
||||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||
Mortgage loans: (1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Held-for-investment
|
$
|
211
|
|
|
$
|
428
|
|
|
$
|
151
|
|
|
$
|
20
|
|
|
$
|
(11
|
)
|
|
$
|
(15
|
)
|
Held-for-sale
|
$
|
3
|
|
|
$
|
319
|
|
|
$
|
58
|
|
|
$
|
—
|
|
|
$
|
(31
|
)
|
|
$
|
(3
|
)
|
Other limited partnership interests (2)
|
$
|
77
|
|
|
$
|
54
|
|
|
$
|
13
|
|
|
$
|
(46
|
)
|
|
$
|
(33
|
)
|
|
$
|
(5
|
)
|
Real estate joint ventures (3)
|
$
|
3
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
(6
|
)
|
|
$
|
—
|
|
Goodwill (4)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,868
|
)
|
|
$
|
(65
|
)
|
Other assets (5)
|
$
|
—
|
|
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(77
|
)
|
|
$
|
—
|
|
(1)
|
Estimated fair values for impaired mortgage loans are based on independent broker quotations or valuation models using unobservable inputs or, if the loans are in foreclosure or are otherwise determined to be collateral dependent, are based on the estimated fair value of the underlying collateral or the present value of the expected future cash flows.
|
(2)
|
For these cost method investments, estimated fair value is determined from information provided in the financial statements of the underlying entities including NAV data. These investments include private equity and debt funds that typically invest primarily in various strategies including domestic and international leveraged buyout funds; power, energy, timber and infrastructure development funds; venture capital funds; and below investment grade debt and mezzanine debt funds. Distributions will be generated from investment gains, from operating income from the underlying investments of the funds and from liquidation of the underlying assets of the funds. It is estimated that the underlying assets of the funds will be liquidated over the next
two
to
10 years
. Unfunded commitments for these investments at both December 31,
2013
and
2012
were not significant.
|
(3)
|
For these cost method investments, estimated fair value is determined from information provided in the financial statements of the underlying entities including NAV data. These investments include several real estate funds that typically invest primarily in commercial real estate and mezzanine debt. Distributions will be generated from investment gains, from operating income from the underlying investments of the funds and from liquidation of the underlying assets of the funds. It is estimated that the underlying assets of the funds will be liquidated over the next
one
to
10 years
. Unfunded commitments for these investments at both December 31,
2013
and
2012
were not significant.
|
(4)
|
As discussed in Note 11, in 2012, the Company recorded an impairment of goodwill associated with the Retail Annuities reporting unit. In addition, in 2011, the Company recorded an impairment of goodwill associated with MetLife Bank. This impairment has been categorized as Level 3 due to the significant unobservable inputs used in the determination of the estimated fair value.
|
(5)
|
As discussed in Note 5, in 2012, the Company recorded an impairment of VOCRA, which is included in other assets.
|
|
December 31, 2013
|
||||||||||||||||||
|
|
|
Fair Value Hierarchy
|
|
|
||||||||||||||
|
Carrying
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated
Fair Value
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Held-for-investment
|
$
|
55,767
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
57,921
|
|
|
$
|
57,921
|
|
Held-for-sale
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|||||
Mortgage loans, net
|
$
|
55,770
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
57,924
|
|
|
$
|
57,924
|
|
Policy loans
|
$
|
11,764
|
|
|
$
|
—
|
|
|
$
|
1,694
|
|
|
$
|
11,512
|
|
|
$
|
13,206
|
|
Real estate joint ventures
|
$
|
102
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
169
|
|
|
$
|
169
|
|
Other limited partnership interests
|
$
|
950
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,109
|
|
|
$
|
1,109
|
|
Other invested assets
|
$
|
844
|
|
|
$
|
322
|
|
|
$
|
163
|
|
|
$
|
359
|
|
|
$
|
844
|
|
Premiums, reinsurance and other receivables
|
$
|
3,116
|
|
|
$
|
—
|
|
|
$
|
728
|
|
|
$
|
2,382
|
|
|
$
|
3,110
|
|
Other assets
|
$
|
324
|
|
|
$
|
—
|
|
|
$
|
210
|
|
|
$
|
142
|
|
|
$
|
352
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
PABs
|
$
|
139,735
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
144,631
|
|
|
$
|
144,631
|
|
Bank deposits
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Long-term debt
|
$
|
17,170
|
|
|
$
|
—
|
|
|
$
|
18,564
|
|
|
$
|
—
|
|
|
$
|
18,564
|
|
Collateral financing arrangements
|
$
|
4,196
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,984
|
|
|
$
|
3,984
|
|
Junior subordinated debt securities
|
$
|
3,193
|
|
|
$
|
—
|
|
|
$
|
3,789
|
|
|
$
|
—
|
|
|
$
|
3,789
|
|
Other liabilities
|
$
|
2,239
|
|
|
$
|
—
|
|
|
$
|
948
|
|
|
$
|
1,292
|
|
|
$
|
2,240
|
|
Separate account liabilities
|
$
|
117,562
|
|
|
$
|
—
|
|
|
$
|
117,562
|
|
|
$
|
—
|
|
|
$
|
117,562
|
|
|
December 31, 2012
|
||||||||||||||||||
|
|
|
Fair Value Hierarchy
|
|
|
||||||||||||||
|
Carrying
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated
Fair Value
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Held-for-investment
|
$
|
53,926
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
57,381
|
|
|
$
|
57,381
|
|
Held-for-sale
|
365
|
|
|
—
|
|
|
—
|
|
|
365
|
|
|
365
|
|
|||||
Mortgage loans, net
|
$
|
54,291
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
57,746
|
|
|
$
|
57,746
|
|
Policy loans
|
$
|
11,884
|
|
|
$
|
—
|
|
|
$
|
1,690
|
|
|
$
|
12,567
|
|
|
$
|
14,257
|
|
Real estate joint ventures
|
$
|
113
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
171
|
|
|
$
|
171
|
|
Other limited partnership interests
|
$
|
1,154
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,277
|
|
|
$
|
1,277
|
|
Other invested assets
|
$
|
815
|
|
|
$
|
305
|
|
|
$
|
144
|
|
|
$
|
366
|
|
|
$
|
815
|
|
Premiums, reinsurance and other receivables
|
$
|
3,287
|
|
|
$
|
—
|
|
|
$
|
745
|
|
|
$
|
2,960
|
|
|
$
|
3,705
|
|
Other assets
|
$
|
260
|
|
|
$
|
—
|
|
|
$
|
214
|
|
|
$
|
78
|
|
|
$
|
292
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
PABs
|
$
|
149,928
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
158,040
|
|
|
$
|
158,040
|
|
Bank deposits
|
$
|
6,416
|
|
|
$
|
—
|
|
|
$
|
2,018
|
|
|
$
|
4,398
|
|
|
$
|
6,416
|
|
Long-term debt
|
$
|
16,502
|
|
|
$
|
—
|
|
|
$
|
18,978
|
|
|
$
|
—
|
|
|
$
|
18,978
|
|
Collateral financing arrangements
|
$
|
4,196
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,839
|
|
|
$
|
3,839
|
|
Junior subordinated debt securities
|
$
|
3,192
|
|
|
$
|
—
|
|
|
$
|
3,984
|
|
|
$
|
—
|
|
|
$
|
3,984
|
|
Other liabilities
|
$
|
1,913
|
|
|
$
|
—
|
|
|
$
|
673
|
|
|
$
|
1,243
|
|
|
$
|
1,916
|
|
Separate account liabilities
|
$
|
58,726
|
|
|
$
|
—
|
|
|
$
|
58,726
|
|
|
$
|
—
|
|
|
$
|
58,726
|
|
|
Retail
|
|
Group,
Voluntary &
Worksite
Benefits
|
|
Corporate
Benefit
Funding
|
|
Latin
America
|
|
Asia (1)
|
|
EMEA
|
|
Corporate
& Other (2)
|
|
Unallocated
Goodwill
|
|
Total
|
||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||||||
Balance at January 1, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Goodwill
|
$
|
3,125
|
|
|
$
|
138
|
|
|
$
|
900
|
|
|
$
|
229
|
|
|
$
|
72
|
|
|
$
|
38
|
|
|
$
|
470
|
|
|
$
|
6,809
|
|
|
$
|
11,781
|
|
Accumulated impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total goodwill, net
|
3,125
|
|
|
138
|
|
|
900
|
|
|
229
|
|
|
72
|
|
|
38
|
|
|
470
|
|
|
6,809
|
|
|
11,781
|
|
|||||||||
Goodwill allocation (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
312
|
|
|
5,163
|
|
|
1,334
|
|
|
—
|
|
|
(6,809
|
)
|
|
—
|
|
|||||||||
Acquisitions (4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|||||||||
Impairments (5)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(65
|
)
|
|
—
|
|
|
(65
|
)
|
|||||||||
Effect of foreign currency translation and other
|
—
|
|
|
—
|
|
|
—
|
|
|
(40
|
)
|
|
259
|
|
|
(39
|
)
|
|
—
|
|
|
—
|
|
|
180
|
|
|||||||||
Balance at December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Goodwill
|
3,125
|
|
|
138
|
|
|
900
|
|
|
501
|
|
|
5,533
|
|
|
1,333
|
|
|
470
|
|
|
—
|
|
|
12,000
|
|
|||||||||
Accumulated impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(65
|
)
|
|
—
|
|
|
(65
|
)
|
|||||||||
Total goodwill, net
|
3,125
|
|
|
138
|
|
|
900
|
|
|
501
|
|
|
5,533
|
|
|
1,333
|
|
|
405
|
|
|
—
|
|
|
11,935
|
|
|||||||||
Acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||||||
Impairments (6)
|
(1,692
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(176
|
)
|
|
—
|
|
|
(1,868
|
)
|
|||||||||
Effect of foreign currency translation and other
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
(146
|
)
|
|
5
|
|
|
—
|
|
|
—
|
|
|
(115
|
)
|
|||||||||
Balance at December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Goodwill
|
3,125
|
|
|
138
|
|
|
900
|
|
|
527
|
|
|
5,387
|
|
|
1,339
|
|
|
470
|
|
|
—
|
|
|
11,886
|
|
|||||||||
Accumulated impairment
|
(1,692
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(241
|
)
|
|
—
|
|
|
(1,933
|
)
|
|||||||||
Total goodwill, net
|
1,433
|
|
|
138
|
|
|
900
|
|
|
527
|
|
|
5,387
|
|
|
1,339
|
|
|
229
|
|
|
—
|
|
|
9,953
|
|
|||||||||
Acquisitions (7)
|
—
|
|
|
—
|
|
|
—
|
|
|
1,140
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1,141
|
|
|||||||||
Dispositions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|||||||||
Reduction of goodwill (5)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(65
|
)
|
|
—
|
|
|
(65
|
)
|
|||||||||
Reduction of accumulated impairment (5)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65
|
|
|
—
|
|
|
65
|
|
|||||||||
Effect of foreign currency translation and other
|
—
|
|
|
—
|
|
|
—
|
|
|
(79
|
)
|
|
(489
|
)
|
|
24
|
|
|
—
|
|
|
—
|
|
|
(544
|
)
|
|||||||||
Balance at December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Goodwill
|
3,125
|
|
|
138
|
|
|
900
|
|
|
1,588
|
|
|
4,898
|
|
|
1,356
|
|
|
405
|
|
|
—
|
|
|
12,410
|
|
|||||||||
Accumulated impairment
|
(1,692
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(176
|
)
|
|
—
|
|
|
(1,868
|
)
|
|||||||||
Total goodwill, net
|
$
|
1,433
|
|
|
$
|
138
|
|
|
$
|
900
|
|
|
$
|
1,588
|
|
|
$
|
4,898
|
|
|
$
|
1,356
|
|
|
$
|
229
|
|
|
$
|
—
|
|
|
$
|
10,542
|
|
(1)
|
Includes goodwill of
$4.7 billion
,
$5.2 billion
and
$5.4 billion
from the Japan operations at December 31, 2013, 2012 and 2011, respectively.
|
(2)
|
For purposes of goodwill impairment testing, the
$229 million
of net goodwill in Corporate & Other at December 31, 2012, which resulted from goodwill acquired as part of the 2005 Travelers acquisition, was allocated to business units of the Retail; Group, Voluntary & Worksite Benefits; and Corporate Benefit Funding segments in the amounts of
$34 million
,
$9 million
and
$186 million
, respectively.
|
(3)
|
Goodwill associated with the ALICO Acquisition was allocated among the Company’s segments in the first quarter of 2011.
|
(4)
|
As of November 1, 2011, American Life’s current and deferred income taxes were affected by measurement period adjustments, which resulted in a
$39 million
increase to the goodwill recorded as part of the ALICO Acquisition related to Japan which is included in the Asia segment.
|
(5)
|
In 2011, the Company performed a goodwill impairment test on MetLife Bank, which was a separate reporting unit in Corporate & Other. A comparison of the fair value of the reporting unit, using a market multiple approach, to its carrying value indicated a potential for goodwill impairment. A further comparison of the implied fair value of the reporting unit’s goodwill with its carrying amount indicated that the entire amount of goodwill associated with MetLife Bank was impaired. Consequently, the Company recorded a
$65 million
goodwill impairment charge that is reflected as a net investment loss for the year ended December 31, 2011. In connection with the MetLife Bank Divestiture, goodwill and the related accumulated impairment were reduced by
$65 million
for the year ended December 31,
2013
. See Note 3.
|
(6)
|
In connection with its annual goodwill impairment testing in 2012, the market multiple and discounted cash flow valuation approaches indicated that the fair value of the Retail Annuities reporting unit was below its carrying value. As a result, an actuarial appraisal, which estimates the net worth of the reporting unit, the value of existing business and the value of new business, was also performed. This appraisal also resulted in a fair value of the Retail Annuities reporting unit that was less than the carrying value, indicating a potential for goodwill impairment. A further comparison of the implied fair value of its goodwill with the reporting unit’s carrying amount indicated that the entire amount of goodwill associated with the Retail Annuities reporting unit was impaired. Consequently, the Company recorded a non-cash charge of
$1.9 billion
(
$1.6 billion
, net of income tax) for the impairment of the entire goodwill balance in the consolidated statements of operations for the year ended December 31, 2012. Of this amount,
$1.4 billion
was impaired at MetLife, Inc. There was no impact on income taxes.
|
(7)
|
See Note 3 for a discussion of the acquisition of ProVida, which is included in the Latin America segment.
|
|
Interest Rates (1)
|
|
Maturity
|
|
December 31,
|
||||||||
|
Range
|
|
Weighted
Average |
2013
|
|
2012
|
|||||||
|
|
|
|
|
|
|
(In millions)
|
||||||
Senior notes
|
1.52% - 7.72%
|
|
4.96%
|
|
2014 - 2045
|
|
$
|
15,938
|
|
|
$
|
15,669
|
|
Surplus notes
|
7.63% - 7.88%
|
|
7.84%
|
|
2015 - 2025
|
|
701
|
|
|
700
|
|
||
Other notes
|
1.39% - 8.00%
|
|
4.04%
|
|
2014 - 2030
|
|
531
|
|
|
133
|
|
||
Capital lease obligations
|
|
|
|
|
|
|
28
|
|
|
33
|
|
||
Total long-term debt (2)
|
|
|
|
|
|
|
17,198
|
|
|
16,535
|
|
||
Total short-term debt
|
|
|
|
|
|
|
175
|
|
|
100
|
|
||
Total
|
|
|
|
|
|
|
$
|
17,373
|
|
|
$
|
16,635
|
|
(1)
|
Range of interest rates and weighted average interest rates are for the year ended December 31,
2013
.
|
(2)
|
Excludes
$1.5 billion
and
$2.5 billion
of long-term debt relating to CSEs — FVO at December 31,
2013
and
2012
, respectively. See Note
8
.
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(In millions)
|
||||||
Commercial paper
|
$
|
175
|
|
|
$
|
100
|
|
Average daily balance
|
$
|
103
|
|
|
$
|
119
|
|
Average days outstanding
|
55 days
|
|
|
40 days
|
|
Borrower(s)
|
|
Expiration
|
|
Capacity
|
|
Letters of
Credit
Issued
|
|
Drawdowns
|
|
Unused Commitments
|
||||||||
|
|
|
|
(In millions)
|
||||||||||||||
MetLife, Inc. and MetLife Funding, Inc.
|
|
September 2017 (1)
|
|
$
|
1,000
|
|
|
$
|
59
|
|
|
$
|
—
|
|
|
$
|
941
|
|
MetLife, Inc. and MetLife Funding, Inc.
|
|
August 2016 (2)
|
|
3,000
|
|
|
133
|
|
|
—
|
|
|
2,867
|
|
||||
Total
|
|
|
|
$
|
4,000
|
|
|
$
|
192
|
|
|
$
|
—
|
|
|
$
|
3,808
|
|
(1)
|
In September 2012, MetLife, Inc. and MetLife Funding, Inc. entered into a
$1.0 billion
five-year credit agreement which amended and restated the three-year agreement dated October 2010. All borrowings under the 2012 five-year credit agreement must be repaid by
September 2017
, except that letters of credit outstanding on that date may remain outstanding until no later than September 2018. MetLife, Inc. incurred costs of
$4 million
related to the amended and restated credit facility, which were capitalized and included in other assets. These costs are being amortized over the remaining term of the amended and restated credit facility.
|
(2)
|
In connection with the October 2013 re-domestication of Exeter to Delaware in anticipation of the Mergers and the related redistribution of assets held in trust at Exeter,
$1.9 billion
of outstanding letters of credit were no longer required and therefore canceled by the Company. Accordingly, remaining availability under the unsecured credit facilities increased by
$1.9 billion
in October 2013. See Note
8
for further information on the Mergers.
|
Account Party/Borrower(s)
|
|
Expiration
|
|
Capacity
|
|
Letters of
Credit
Issued
|
|
Drawdowns
|
|
Unused
Commitments
|
||||||||
|
|
|
|
(In millions)
|
||||||||||||||
MetLife, Inc.
|
|
August 2014
|
|
$
|
300
|
|
|
$
|
300
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Exeter Reassurance Company, Ltd., MetLife, Inc. & Missouri Reinsurance, Inc.
|
|
June 2016
|
|
500
|
|
|
490
|
|
|
—
|
|
|
10
|
|
||||
MetLife Reinsurance Company of Vermont & MetLife, Inc.
|
|
December 2020 (1)
|
|
350
|
|
|
350
|
|
|
—
|
|
|
—
|
|
||||
Exeter Reassurance Company, Ltd.
|
|
December 2027 (1)
|
|
650
|
|
|
600
|
|
|
—
|
|
|
50
|
|
||||
MetLife Reinsurance Company of South Carolina & MetLife, Inc.
|
|
June 2037 (2)
|
|
3,500
|
|
|
—
|
|
|
2,797
|
|
|
703
|
|
||||
MetLife Reinsurance Company of Vermont & MetLife, Inc.
|
|
December 2037 (1)
|
|
2,896
|
|
|
1,937
|
|
|
—
|
|
|
959
|
|
||||
MetLife Reinsurance Company of Vermont & MetLife, Inc.
|
|
September 2038 (1)
|
|
4,250
|
|
|
3,062
|
|
|
—
|
|
|
1,188
|
|
||||
Total
|
|
|
|
$
|
12,446
|
|
|
$
|
6,739
|
|
|
$
|
2,797
|
|
|
$
|
2,910
|
|
(1)
|
MetLife, Inc. is guarantor under this agreement.
|
(2)
|
The drawdown on this facility is associated with a collateral financing arrangement described more fully in Note
13
.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying Value at December 31,
|
|||||||||
Issuer
|
|
Issue Date
|
|
Face Value
|
|
Interest Rate (2)
|
|
Scheduled
Redemption
Date
|
|
Interest Rate
Subsequent to
Scheduled
Redemption
Date (3)
|
|
Final
Maturity
|
|
2013
|
|
2012
|
|||||||
|
|
|
(In millions)
|
|
|
|
|
|
|
|
|
(In millions)
|
|||||||||||
MetLife, Inc.
|
|
July 2009
|
|
$
|
500
|
|
|
10.750
|
%
|
|
August 2039
|
|
LIBOR + 7.548%
|
|
August 2069
|
|
$
|
500
|
|
|
$
|
500
|
|
MetLife Capital Trust X (1)
|
|
April 2008
|
|
$
|
750
|
|
|
9.250
|
%
|
|
April 2038
|
|
LIBOR + 5.540%
|
|
April 2068
|
|
750
|
|
|
750
|
|
||
MetLife Capital Trust IV (1)
|
|
December 2007
|
|
$
|
700
|
|
|
7.875
|
%
|
|
December 2037
|
|
LIBOR + 3.960%
|
|
December 2067
|
|
695
|
|
|
694
|
|
||
MetLife, Inc.
|
|
December 2006
|
|
$
|
1,250
|
|
|
6.400
|
%
|
|
December 2036
|
|
LIBOR + 2.205%
|
|
December 2066
|
|
1,248
|
|
|
1,248
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,193
|
|
|
$
|
3,192
|
|
(1)
|
MetLife Capital Trust X and MetLife Capital Trust IV are VIEs which are consolidated in the financial statements of the Company. The securities issued by these entities are exchangeable surplus trust securities, which will be exchanged for a like amount of MetLife, Inc.’s junior subordinated debt securities on the scheduled redemption date; mandatorily under certain circumstances, and at any time upon MetLife, Inc. exercising its option to redeem the securities. The exchangeable surplus trust securities are classified as junior subordinated debt securities for purposes of financial statement presentation.
|
(2)
|
Prior to the scheduled redemption date, interest is payable semiannually in arrears.
|
(3)
|
In the event the securities are not redeemed on or before the scheduled redemption date, interest will accrue after such date at an annual rate of three-month LIBOR plus the indicated margin, payable quarterly in arrears.
|
|
|
|
|
|
|
Dividend
|
||||||||||||||
Declaration Date
|
|
Record Date
|
|
Payment Date
|
|
Series A
Per Share
|
|
Series A
Aggregate
|
|
Series B
Per Share
|
|
Series B
Aggregate
|
||||||||
|
|
|
|
|
|
(In millions, except per share data)
|
||||||||||||||
November 15, 2013
|
|
November 30, 2013
|
|
December 16, 2013
|
|
$
|
0.253
|
|
|
$
|
7
|
|
|
$
|
0.406
|
|
|
$
|
24
|
|
August 15, 2013
|
|
August 31, 2013
|
|
September 16, 2013
|
|
$
|
0.256
|
|
|
6
|
|
|
$
|
0.406
|
|
|
24
|
|
||
May 15, 2013
|
|
May 31, 2013
|
|
June 17, 2013
|
|
$
|
0.256
|
|
|
7
|
|
|
$
|
0.406
|
|
|
24
|
|
||
March 5, 2013
|
|
February 28, 2013
|
|
March 15, 2013
|
|
$
|
0.250
|
|
|
6
|
|
|
$
|
0.406
|
|
|
24
|
|
||
|
|
|
|
|
|
|
|
$
|
26
|
|
|
|
|
$
|
96
|
|
||||
November 15, 2012
|
|
November 30, 2012
|
|
December 17, 2012
|
|
$
|
0.253
|
|
|
$
|
7
|
|
|
$
|
0.406
|
|
|
$
|
24
|
|
August 15, 2012
|
|
August 31, 2012
|
|
September 17, 2012
|
|
$
|
0.256
|
|
|
6
|
|
|
$
|
0.406
|
|
|
24
|
|
||
May 15, 2012
|
|
May 31, 2012
|
|
June 15, 2012
|
|
$
|
0.256
|
|
|
7
|
|
|
$
|
0.406
|
|
|
24
|
|
||
March 5, 2012
|
|
February 29, 2012
|
|
March 15, 2012
|
|
$
|
0.253
|
|
|
6
|
|
|
$
|
0.406
|
|
|
24
|
|
||
|
|
|
|
|
|
|
|
$
|
26
|
|
|
|
|
$
|
96
|
|
||||
November 15, 2011
|
|
November 30, 2011
|
|
December 15, 2011
|
|
$
|
0.253
|
|
|
$
|
7
|
|
|
$
|
0.406
|
|
|
$
|
24
|
|
August 15, 2011
|
|
August 31, 2011
|
|
September 15, 2011
|
|
$
|
0.256
|
|
|
6
|
|
|
$
|
0.406
|
|
|
24
|
|
||
May 16, 2011
|
|
May 31, 2011
|
|
June 15, 2011
|
|
$
|
0.256
|
|
|
7
|
|
|
$
|
0.406
|
|
|
24
|
|
||
March 7, 2011
|
|
February 28, 2011
|
|
March 15, 2011
|
|
$
|
0.250
|
|
|
6
|
|
|
$
|
0.406
|
|
|
24
|
|
||
|
|
|
|
|
|
|
|
$
|
26
|
|
|
|
|
$
|
96
|
|
|
|
|
|
|
|
Dividend
|
||||||
Declaration Date
|
|
Record Date
|
|
Payment Date
|
|
Per Share
|
|
Aggregate
|
||||
|
|
|
|
|
|
(In millions, except per share data)
|
||||||
October 22, 2013
|
|
November 8, 2013
|
|
December 13, 2013
|
|
$
|
0.275
|
|
|
$
|
311
|
|
June 25, 2013
|
|
August 9, 2013
|
|
September 13, 2013
|
|
$
|
0.275
|
|
|
303
|
|
|
April 23, 2013
|
|
May 9, 2013
|
|
June 13, 2013
|
|
$
|
0.275
|
|
|
302
|
|
|
January 4, 2013
|
|
February 6, 2013
|
|
March 13, 2013
|
|
$
|
0.185
|
|
|
203
|
|
|
|
|
|
|
|
|
|
|
$
|
1,119
|
|
||
|
|
|
|
|
|
|
|
|
||||
October 23, 2012
|
|
November 9, 2012
|
|
December 14, 2012
|
|
$
|
0.740
|
|
|
$
|
811
|
|
October 25, 2011
|
|
November 9, 2011
|
|
December 14, 2011
|
|
$
|
0.740
|
|
|
$
|
787
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Stock Options and Unit Options
|
$
|
39
|
|
|
$
|
61
|
|
|
$
|
58
|
|
Performance Shares and Units (1)
|
91
|
|
|
80
|
|
|
68
|
|
|||
Restricted Stock Units and Restricted Units
|
45
|
|
|
27
|
|
|
18
|
|
|||
Total compensation expense
|
$
|
175
|
|
|
$
|
168
|
|
|
$
|
144
|
|
Income tax benefit
|
$
|
61
|
|
|
$
|
59
|
|
|
$
|
50
|
|
(1)
|
Performance Shares expected to vest and the related compensation expenses may be further adjusted by the performance factor most likely to be achieved, as estimated by management, at the end of the performance period.
|
|
December 31, 2013
|
||||
|
Expense
|
|
Weighted Average
Period
|
||
|
(In millions)
|
|
(Years)
|
||
Stock Options
|
$
|
25
|
|
|
1.27
|
Performance Shares
|
$
|
61
|
|
|
1.71
|
Restricted Stock Units
|
$
|
42
|
|
|
1.88
|
|
Shares
Under
Option
|
|
Weighted
Average
Exercise
Price
|
|
Weighted
Average
Remaining
Contractual
Term
|
|
Aggregate
Intrinsic
Value (1)
|
|||||
|
|
|
|
|
|
(Years)
|
|
(In millions)
|
||||
Outstanding at January 1, 2013
|
35,153,071
|
|
|
$
|
40.89
|
|
|
5.50
|
|
$
|
51
|
|
Granted
|
1,310,019
|
|
|
$
|
35.96
|
|
|
|
|
|
||
Exercised
|
(6,357,522
|
)
|
|
$
|
31.80
|
|
|
|
|
|
||
Expired
|
(183,662
|
)
|
|
$
|
50.46
|
|
|
|
|
|
||
Forfeited
|
(170,530
|
)
|
|
$
|
39.86
|
|
|
|
|
|
||
Outstanding at December 31, 2013
|
29,751,376
|
|
|
$
|
42.56
|
|
|
5.19
|
|
$
|
379
|
|
Expected to vest at a future date as of December 31, 2013
|
29,536,674
|
|
|
$
|
42.60
|
|
|
5.16
|
|
$
|
376
|
|
Exercisable at December 31, 2013
|
22,786,277
|
|
|
$
|
43.56
|
|
|
4.32
|
|
$
|
277
|
|
(1)
|
The aggregate intrinsic value was computed using the closing Share price on December 31,
2013
of
$53.92
and December 31,
2012
of
$32.94
, as applicable.
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Dividend yield
|
2.13%
|
|
1.95%
|
|
1.65%
|
||||||
Risk-free rate of return
|
0.16%-3.89%
|
|
0.21%-4.17%
|
|
0.29%-5.51%
|
||||||
Expected volatility
|
32.98%
|
|
35.59%
|
|
32.64%
|
||||||
Exercise multiple
|
1.51
|
|
1.58
|
|
1.69
|
||||||
Post-vesting termination rate
|
3.16%
|
|
3.14%
|
|
3.36%
|
||||||
Contractual term (years)
|
10
|
|
10
|
|
10
|
||||||
Expected life (years)
|
7
|
|
7
|
|
7
|
||||||
Weighted average exercise price of stock options granted
|
$
|
35.96
|
|
|
$
|
37.91
|
|
|
$
|
45.16
|
|
Weighted average fair value of stock options granted
|
$
|
9.88
|
|
|
$
|
11.33
|
|
|
$
|
14.27
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Total intrinsic value of stock options exercised
|
$
|
79
|
|
|
$
|
29
|
|
|
$
|
41
|
|
Cash received from exercise of stock options
|
$
|
202
|
|
|
$
|
109
|
|
|
$
|
88
|
|
Income tax benefit realized from stock options exercised
|
$
|
28
|
|
|
$
|
10
|
|
|
$
|
14
|
|
|
Performance Shares
|
|
Restricted Stock Units
|
||||||||||
|
Shares
|
|
Weighted
Average
Grant Date
Fair Value
|
|
Units
|
|
Weighted
Average
Grant Date
Fair Value
|
||||||
Outstanding at January 1, 2013
|
4,822,028
|
|
|
$
|
36.93
|
|
|
2,080,148
|
|
|
$
|
36.55
|
|
Granted
|
1,749,212
|
|
|
$
|
50.86
|
|
|
2,182,213
|
|
|
$
|
32.34
|
|
Forfeited
|
(151,075
|
)
|
|
$
|
40.87
|
|
|
(395,365
|
)
|
|
$
|
33.97
|
|
Payable (1)
|
(1,346,025
|
)
|
|
$
|
32.24
|
|
|
(538,480
|
)
|
|
$
|
33.17
|
|
Outstanding at December 31, 2013
|
5,074,140
|
|
|
$
|
42.86
|
|
|
3,328,516
|
|
|
$
|
33.35
|
|
Expected to vest at a future date as of December 31, 2013
|
5,067,337
|
|
|
$
|
38.60
|
|
|
2,995,664
|
|
|
$
|
33.34
|
|
(1)
|
Includes both Shares paid and Shares deferred for later payment.
|
|
Unit
Options
|
|
Restricted
Units
|
|
Performance
Units
|
|||
Outstanding at January 1, 2013
|
1,370,317
|
|
|
740,436
|
|
|
305,164
|
|
Granted
|
48,301
|
|
|
445,740
|
|
|
297,834
|
|
Exercised
|
(127,386
|
)
|
|
—
|
|
|
—
|
|
Forfeited
|
(69,606
|
)
|
|
(127,329
|
)
|
|
(15,761
|
)
|
Paid
|
—
|
|
|
(79,325
|
)
|
|
(55,349
|
)
|
Outstanding at December 31, 2013
|
1,221,626
|
|
|
979,522
|
|
|
531,888
|
|
Expected to vest at a future date as of December 31, 2013
|
1,137,832
|
|
|
881,570
|
|
|
478,699
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||
Company
|
|
State of Domicile
|
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
|
|
(In millions)
|
||||||||||
Metropolitan Life Insurance Company
|
|
New York
|
|
$
|
369
|
|
|
$
|
1,320
|
|
|
$
|
1,970
|
|
American Life Insurance Company
|
|
Delaware
|
|
$
|
631
|
|
|
$
|
317
|
|
|
$
|
334
|
|
MetLife Insurance Company of Connecticut
|
|
Connecticut
|
|
$
|
790
|
|
|
$
|
848
|
|
|
$
|
46
|
|
Metropolitan Property and Casualty Insurance Company
|
|
Rhode Island
|
|
$
|
282
|
|
|
$
|
235
|
|
|
$
|
41
|
|
Metropolitan Tower Life Insurance Company
|
|
Delaware
|
|
$
|
52
|
|
|
$
|
61
|
|
|
$
|
63
|
|
|
|
December 31,
|
||||||
Company
|
|
2013
|
|
2012
|
||||
|
|
(In millions)
|
||||||
Metropolitan Life Insurance Company
|
|
$
|
12,428
|
|
|
$
|
14,295
|
|
American Life Insurance Company
|
|
$
|
2,711
|
|
|
$
|
3,044
|
|
MetLife Insurance Company of Connecticut
|
|
$
|
4,795
|
|
|
$
|
5,331
|
|
Metropolitan Property and Casualty Insurance Company
|
|
$
|
2,225
|
|
|
$
|
1,987
|
|
Metropolitan Tower Life Insurance Company
|
|
$
|
735
|
|
|
$
|
781
|
|
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||
Company
|
|
Permitted w/o
Approval (1)
|
|
Paid (2)
|
|
Permitted w/o
Approval (3)
|
|
Paid (2)
|
|
Permitted w/o
Approval (3)
|
|||||||||||
|
|
(In millions)
|
|||||||||||||||||||
Metropolitan Life Insurance Company
|
|
$
|
1,116
|
|
|
$
|
1,428
|
|
|
$
|
1,428
|
|
|
$
|
1,023
|
|
|
$
|
1,350
|
|
|
American Life Insurance Company
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
523
|
|
|
$
|
1,300
|
|
(4)
|
$
|
168
|
|
|
MetLife Insurance Company of Connecticut
|
|
$
|
1,061
|
|
|
$
|
1,000
|
|
|
$
|
1,330
|
|
|
$
|
706
|
|
(5)
|
$
|
504
|
|
|
Metropolitan Property and Casualty Insurance Company
|
|
$
|
218
|
|
|
$
|
100
|
|
|
$
|
74
|
|
|
$
|
100
|
|
|
$
|
—
|
|
|
Metropolitan Tower Life Insurance Company
|
|
$
|
73
|
|
|
$
|
109
|
|
(6
|
)
|
$
|
77
|
|
|
$
|
82
|
|
|
$
|
82
|
|
MetLife Investors Insurance Company
|
|
$
|
99
|
|
|
$
|
129
|
|
|
$
|
129
|
|
|
$
|
18
|
|
|
$
|
18
|
|
|
Delaware American Life Insurance Company
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
12
|
|
(1)
|
Reflects dividend amounts that may be paid during 2014 without prior regulatory approval. However, because dividend tests may be based on dividends previously paid over rolling 12-month periods, if paid before a specified date during 2014, some or all of such dividends may require regulatory approval.
|
(2)
|
Reflects all amounts paid, including those requiring regulatory approval.
|
(3)
|
Reflects dividend amounts that could have been paid during the relevant year without prior regulatory approval.
|
(4)
|
During May 2012, American Life received regulatory approval to pay an extraordinary dividend for an amount up to the funds remitted in connection with the restructuring of American Life’s business in Japan. Subsequently,
$1.5 billion
was remitted to American Life. See Note
3
. Of this approved amount,
$1.3 billion
was paid to MetLife, Inc. as an extraordinary dividend.
|
(5)
|
During June 2012, MICC distributed shares of an affiliate to its stockholders as an in-kind extraordinary dividend of
$202 million
as calculated on a statutory basis. Regulatory approval for this extraordinary dividend was obtained due to the timing of payment. During December 2012, MICC paid a dividend to its stockholders in the amount of
$504 million
, which represented its ordinary dividend capacity at
December 31, 2012
. Due to the June 2012 in-kind dividend, a portion of this was extraordinary and regulatory approval was obtained.
|
(6)
|
During October 2013, Metropolitan Tower Life Insurance Company (“MTL”) distributed shares of an affiliate to MetLife, Inc. as an in-kind dividend of
$32 million
. Also during October 2013, MTL paid a dividend to MetLife, Inc. in the amount of
$77 million
in cash, which represented its dividend capacity without regulatory approval at December 31, 2013. Regulatory approval for these dividends was obtained due to the amount and timing of the payments.
|
|
Unrealized
Investment Gains
(Losses), Net of
Related Offsets (1)
|
|
Unrealized
Gains (Losses)
on Derivatives
|
|
Foreign
Currency
Translation
Adjustments
|
|
Defined
Benefit
Plans
Adjustment
|
|
Total
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Balance at December 31, 2010
|
$
|
3,161
|
|
|
$
|
(39
|
)
|
|
$
|
(528
|
)
|
|
$
|
(1,449
|
)
|
|
$
|
1,145
|
|
OCI before reclassifications
|
7,637
|
|
|
1,595
|
|
|
42
|
|
|
(893
|
)
|
|
8,381
|
|
|||||
Income tax expense (benefit)
|
(2,604
|
)
|
|
(557
|
)
|
|
(162
|
)
|
|
312
|
|
|
(3,011
|
)
|
|||||
OCI before reclassifications, net of income tax
|
8,194
|
|
|
999
|
|
|
(648
|
)
|
|
(2,030
|
)
|
|
6,515
|
|
|||||
Amounts reclassified from AOCI
|
(766
|
)
|
|
(21
|
)
|
|
—
|
|
|
133
|
|
|
(654
|
)
|
|||||
Income tax expense (benefit)
|
261
|
|
|
7
|
|
|
—
|
|
|
(46
|
)
|
|
222
|
|
|||||
Amounts reclassified from AOCI, net of income tax
|
(505
|
)
|
|
(14
|
)
|
|
—
|
|
|
87
|
|
|
(432
|
)
|
|||||
Balance at December 31, 2011
|
7,689
|
|
|
985
|
|
|
(648
|
)
|
|
(1,943
|
)
|
|
6,083
|
|
|||||
OCI before reclassifications
|
9,321
|
|
|
(262
|
)
|
|
(134
|
)
|
|
(996
|
)
|
|
7,929
|
|
|||||
Income tax expense (benefit)
|
(3,457
|
)
|
|
92
|
|
|
249
|
|
|
350
|
|
|
(2,766
|
)
|
|||||
OCI before reclassifications, net of income tax
|
13,553
|
|
|
815
|
|
|
(533
|
)
|
|
(2,589
|
)
|
|
11,246
|
|
|||||
Amounts reclassified from AOCI
|
58
|
|
|
24
|
|
|
—
|
|
|
154
|
|
|
236
|
|
|||||
Income tax expense (benefit)
|
(23
|
)
|
|
(8
|
)
|
|
—
|
|
|
(54
|
)
|
|
(85
|
)
|
|||||
Amounts reclassified from AOCI, net of income tax
|
35
|
|
|
16
|
|
|
—
|
|
|
100
|
|
|
151
|
|
|||||
Balance at December 31, 2012
|
13,588
|
|
|
831
|
|
|
(533
|
)
|
|
(2,489
|
)
|
|
11,397
|
|
|||||
OCI before reclassifications
|
(8,487
|
)
|
|
(937
|
)
|
|
(937
|
)
|
|
1,078
|
|
|
(9,283
|
)
|
|||||
Income tax expense (benefit)
|
2,807
|
|
|
312
|
|
|
(189
|
)
|
|
(379
|
)
|
|
2,551
|
|
|||||
OCI before reclassifications, net of income tax
|
7,908
|
|
|
206
|
|
|
(1,659
|
)
|
|
(1,790
|
)
|
|
4,665
|
|
|||||
Amounts reclassified from AOCI
|
411
|
|
|
36
|
|
|
—
|
|
|
214
|
|
|
661
|
|
|||||
Income tax expense (benefit)
|
(136
|
)
|
|
(11
|
)
|
|
—
|
|
|
(75
|
)
|
|
(222
|
)
|
|||||
Amounts reclassified from AOCI, net of income tax
|
275
|
|
|
25
|
|
|
—
|
|
|
139
|
|
|
439
|
|
|||||
Balance at December 31, 2013
|
$
|
8,183
|
|
|
$
|
231
|
|
|
$
|
(1,659
|
)
|
|
$
|
(1,651
|
)
|
|
$
|
5,104
|
|
(1)
|
See Note 8 for information on offsets to investments related to insurance liabilities, DAC and VOBA and the policyholder dividend obligation.
|
AOCI Components
|
|
Amounts Reclassified from AOCI
|
|
Statement of Operations and
Comprehensive Income (Loss) Location
|
||||||||||
|
|
Years Ended December 31,
|
|
|
||||||||||
|
|
2013
|
|
2012
|
|
2011
|
|
|
||||||
|
|
(In millions)
|
|
|
||||||||||
Net unrealized investment gains (losses):
|
|
|
|
|
|
|
|
|
||||||
Net unrealized investment gains (losses)
|
|
$
|
404
|
|
|
$
|
(34
|
)
|
|
$
|
(952
|
)
|
|
Other net investment gains (losses)
|
Net unrealized investment gains (losses)
|
|
93
|
|
|
73
|
|
|
73
|
|
|
Net investment income
|
|||
Net unrealized investment gains (losses)
|
|
(26
|
)
|
|
(10
|
)
|
|
144
|
|
|
Net derivative gains (losses)
|
|||
OTTI
|
|
(60
|
)
|
|
29
|
|
|
(31
|
)
|
|
OTTI on fixed maturity securities
|
|||
Net unrealized investment gains (losses), before income tax
|
|
411
|
|
|
58
|
|
|
(766
|
)
|
|
|
|||
Income tax (expense) benefit
|
|
(136
|
)
|
|
(23
|
)
|
|
261
|
|
|
|
|||
Net unrealized investment gains (losses), net of income tax
|
|
$
|
275
|
|
|
$
|
35
|
|
|
$
|
(505
|
)
|
|
|
Unrealized gains (losses) on derivatives - cash flow hedges:
|
|
|
|
|
|
|
|
|
||||||
Interest rate swaps
|
|
$
|
20
|
|
|
$
|
1
|
|
|
$
|
(42
|
)
|
|
Net derivative gains (losses)
|
Interest rate swaps
|
|
8
|
|
|
4
|
|
|
1
|
|
|
Net investment income
|
|||
Interest rate swaps
|
|
—
|
|
|
(3
|
)
|
|
(10
|
)
|
|
Other expenses
|
|||
Interest rate forwards
|
|
10
|
|
|
1
|
|
|
31
|
|
|
Net derivative gains (losses)
|
|||
Interest rate forwards
|
|
3
|
|
|
2
|
|
|
1
|
|
|
Net investment income
|
|||
Interest rate forwards
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
Other expenses
|
|||
Foreign currency swaps
|
|
(3
|
)
|
|
23
|
|
|
—
|
|
|
Net derivative gains (losses)
|
|||
Foreign currency swaps
|
|
(3
|
)
|
|
(5
|
)
|
|
(6
|
)
|
|
Net investment income
|
|||
Foreign currency swaps
|
|
1
|
|
|
1
|
|
|
2
|
|
|
Other expenses
|
|||
Credit forwards
|
|
—
|
|
|
—
|
|
|
2
|
|
|
Net derivative gains (losses)
|
|||
Credit forwards
|
|
1
|
|
|
1
|
|
|
1
|
|
|
Net investment income
|
|||
Gains (losses) on cash flow hedges, before income tax
|
|
36
|
|
|
24
|
|
|
(21
|
)
|
|
|
|||
Income tax (expense) benefit
|
|
(11
|
)
|
|
(8
|
)
|
|
7
|
|
|
|
|||
Gains (losses) on cash flow hedges, net of income tax
|
|
$
|
25
|
|
|
$
|
16
|
|
|
$
|
(14
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Defined benefit plans adjustment: (1)
|
|
|
|
|
|
|
|
|
||||||
Amortization of net actuarial gains (losses)
|
|
$
|
283
|
|
|
$
|
252
|
|
|
$
|
237
|
|
|
|
Amortization of prior service (costs) credit
|
|
(69
|
)
|
|
(98
|
)
|
|
(104
|
)
|
|
|
|||
Amortization of defined benefit plan items, before
income tax
|
|
214
|
|
|
154
|
|
|
133
|
|
|
|
|||
Income tax (expense) benefit
|
|
(75
|
)
|
|
(54
|
)
|
|
(46
|
)
|
|
|
|||
Amortization of defined benefit plan items, net of income tax
|
|
$
|
139
|
|
|
$
|
100
|
|
|
$
|
87
|
|
|
|
Total reclassifications, net of income tax
|
|
$
|
439
|
|
|
$
|
151
|
|
|
$
|
(432
|
)
|
|
|
(1)
|
These AOCI components are included in the computation of net periodic benefit costs. See Note 18.
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Compensation
|
$
|
5,108
|
|
|
$
|
5,562
|
|
|
$
|
5,287
|
|
Pension, postretirement and postemployment benefit costs
|
488
|
|
|
428
|
|
|
463
|
|
|||
Commissions
|
5,428
|
|
|
5,909
|
|
|
6,378
|
|
|||
Volume-related costs
|
842
|
|
|
599
|
|
|
335
|
|
|||
Interest credited to bank deposits
|
2
|
|
|
78
|
|
|
95
|
|
|||
Capitalization of DAC
|
(4,786
|
)
|
|
(5,289
|
)
|
|
(5,558
|
)
|
|||
Amortization of DAC and VOBA
|
3,550
|
|
|
4,199
|
|
|
4,898
|
|
|||
Amortization of negative VOBA
|
(579
|
)
|
|
(622
|
)
|
|
(697
|
)
|
|||
Interest expense on debt and debt issuance costs
|
1,282
|
|
|
1,356
|
|
|
1,629
|
|
|||
Premium taxes, licenses and fees
|
658
|
|
|
677
|
|
|
633
|
|
|||
Professional services
|
1,454
|
|
|
1,664
|
|
|
1,597
|
|
|||
Rent and related expenses, net of sublease income
|
376
|
|
|
422
|
|
|
426
|
|
|||
Other (1)
|
2,779
|
|
|
2,772
|
|
|
3,051
|
|
|||
Total other expenses
|
$
|
16,602
|
|
|
$
|
17,755
|
|
|
$
|
18,537
|
|
(1)
|
See Note 19 for information on the Japan income tax refund included in other expenses for the year ended December 31, 2013.
|
|
Years Ended December 31,
|
||||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||||
|
Severance
|
|
Lease and
Asset
Impairment
|
|
Total
|
|
Severance
|
|
Lease and
Asset
Impairment
|
|
Total
|
||||||||||||
|
(In millions)
|
||||||||||||||||||||||
Balance at January 1,
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restructuring charges
|
99
|
|
|
16
|
|
|
115
|
|
|
141
|
|
|
18
|
|
|
159
|
|
||||||
Cash payments
|
(82
|
)
|
|
(10
|
)
|
|
(92
|
)
|
|
(118
|
)
|
|
(18
|
)
|
|
(136
|
)
|
||||||
Balance at December 31,
|
$
|
40
|
|
|
$
|
6
|
|
|
$
|
46
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
23
|
|
Total restructuring charges incurred since inception of initiative
|
$
|
240
|
|
|
$
|
34
|
|
|
$
|
274
|
|
|
$
|
141
|
|
|
$
|
18
|
|
|
$
|
159
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||||||||||||||||||
|
U.S. Plans (1)
|
|
Non-U.S. Plans
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||||||||||||||
|
December 31,
|
||||||||||||||||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Change in benefit obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Benefit obligations at January 1,
|
$
|
9,480
|
|
|
$
|
8,327
|
|
|
$
|
823
|
|
|
$
|
773
|
|
|
$
|
2,375
|
|
|
$
|
2,093
|
|
|
$
|
43
|
|
|
$
|
39
|
|
Service costs
|
236
|
|
|
224
|
|
|
67
|
|
|
75
|
|
|
20
|
|
|
21
|
|
|
2
|
|
|
1
|
|
||||||||
Interest costs
|
389
|
|
|
406
|
|
|
14
|
|
|
17
|
|
|
92
|
|
|
103
|
|
|
2
|
|
|
2
|
|
||||||||
Plan participants’ contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
29
|
|
|
—
|
|
|
—
|
|
||||||||
Net actuarial (gains) losses
|
(1,050
|
)
|
|
999
|
|
|
34
|
|
|
32
|
|
|
(551
|
)
|
|
261
|
|
|
(1
|
)
|
|
4
|
|
||||||||
Acquisition, divestitures and curtailments
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||||
Change in benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Benefits paid
|
(464
|
)
|
|
(476
|
)
|
|
(41
|
)
|
|
(41
|
)
|
|
(132
|
)
|
|
(132
|
)
|
|
(2
|
)
|
|
(2
|
)
|
||||||||
Effect of foreign currency translation and other
|
—
|
|
|
—
|
|
|
(134
|
)
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||||
Benefit obligations at December 31,
|
8,591
|
|
|
9,480
|
|
|
744
|
|
|
823
|
|
|
1,834
|
|
|
2,375
|
|
|
41
|
|
|
43
|
|
||||||||
Change in plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fair value of plan assets at January 1,
|
7,879
|
|
|
7,108
|
|
|
224
|
|
|
185
|
|
|
1,320
|
|
|
1,240
|
|
|
15
|
|
|
13
|
|
||||||||
Actual return on plan assets
|
(22
|
)
|
|
740
|
|
|
34
|
|
|
20
|
|
|
58
|
|
|
105
|
|
|
(1
|
)
|
|
2
|
|
||||||||
Acquisition, divestitures and settlements
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||||
Plan participants’ contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
29
|
|
|
—
|
|
|
—
|
|
||||||||
Employer contributions
|
383
|
|
|
507
|
|
|
83
|
|
|
74
|
|
|
76
|
|
|
78
|
|
|
5
|
|
|
4
|
|
||||||||
Benefits paid
|
(464
|
)
|
|
(476
|
)
|
|
(41
|
)
|
|
(41
|
)
|
|
(132
|
)
|
|
(132
|
)
|
|
(2
|
)
|
|
(2
|
)
|
||||||||
Effect of foreign currency translation
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||||
Fair value of plan assets at December 31,
|
7,776
|
|
|
7,879
|
|
|
248
|
|
|
224
|
|
|
1,352
|
|
|
1,320
|
|
|
14
|
|
|
15
|
|
||||||||
Over (under) funded status at December 31,
|
$
|
(815
|
)
|
|
$
|
(1,601
|
)
|
|
$
|
(496
|
)
|
|
$
|
(599
|
)
|
|
$
|
(482
|
)
|
|
$
|
(1,055
|
)
|
|
$
|
(27
|
)
|
|
$
|
(28
|
)
|
Amounts recognized in the consolidated balance sheets consist of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other assets
|
$
|
223
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other liabilities
|
(1,038
|
)
|
|
(1,601
|
)
|
|
(503
|
)
|
|
(605
|
)
|
|
(482
|
)
|
|
(1,055
|
)
|
|
(27
|
)
|
|
(28
|
)
|
||||||||
Net amount recognized
|
$
|
(815
|
)
|
|
$
|
(1,601
|
)
|
|
$
|
(496
|
)
|
|
$
|
(599
|
)
|
|
$
|
(482
|
)
|
|
$
|
(1,055
|
)
|
|
$
|
(27
|
)
|
|
$
|
(28
|
)
|
AOCI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net actuarial (gains) losses
|
$
|
2,274
|
|
|
$
|
3,047
|
|
|
$
|
28
|
|
|
$
|
27
|
|
|
$
|
211
|
|
|
$
|
799
|
|
|
$
|
2
|
|
|
$
|
3
|
|
Prior service costs (credit)
|
18
|
|
|
24
|
|
|
2
|
|
|
2
|
|
|
1
|
|
|
(74
|
)
|
|
1
|
|
|
1
|
|
||||||||
AOCI, before income tax
|
$
|
2,292
|
|
|
$
|
3,071
|
|
|
$
|
30
|
|
|
$
|
29
|
|
|
$
|
212
|
|
|
$
|
725
|
|
|
$
|
3
|
|
|
$
|
4
|
|
Accumulated benefit obligation
|
$
|
8,104
|
|
|
$
|
8,866
|
|
|
$
|
636
|
|
|
$
|
724
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
(1)
|
Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was
$1.0 billion
and
$1.1 billion
at December 31,
2013
and
2012
, respectively.
|
|
Pension Benefits
|
||||||||||||||
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||
|
December 31,
|
||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
(In millions)
|
||||||||||||||
Projected benefit obligations
|
$
|
1,037
|
|
|
$
|
1,323
|
|
|
$
|
644
|
|
|
$
|
690
|
|
Accumulated benefit obligations
|
$
|
927
|
|
|
$
|
1,166
|
|
|
$
|
579
|
|
|
$
|
651
|
|
Fair value of plan assets
|
$
|
—
|
|
|
$
|
157
|
|
|
$
|
167
|
|
|
$
|
144
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||||||||||||||||||
|
U.S. Plans
|
|
Non-U.S. Plans
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||||||||||||||
|
December 31,
|
||||||||||||||||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Projected benefit obligations
|
$
|
1,170
|
|
|
$
|
9,480
|
|
|
$
|
701
|
|
|
$
|
763
|
|
|
$
|
1,834
|
|
|
$
|
2,375
|
|
|
$
|
41
|
|
|
$
|
43
|
|
Fair value of plan assets
|
$
|
133
|
|
|
$
|
7,879
|
|
|
$
|
199
|
|
|
$
|
188
|
|
|
$
|
1,352
|
|
|
$
|
1,320
|
|
|
$
|
14
|
|
|
$
|
15
|
|
•
|
Service Costs — Service costs are the increase in the projected (expected) PBO resulting from benefits payable to employees of the Subsidiaries on service rendered during the current year.
|
•
|
Interest Costs — Interest costs are the time value adjustment on the projected (expected) PBO at the end of each year.
|
•
|
Settlement and Curtailment Costs — The aggregate amount of net gains (losses) recognized in net periodic benefit costs due to settlements and curtailments. Settlements result from actions that relieve/eliminate the plan’s responsibility for benefit obligations or risks associated with the obligations or assets used for the settlement. Curtailments result from an event that significantly reduces/eliminates plan participants’ expected years of future services or benefit accruals.
|
•
|
Expected Return on Plan Assets — Expected return on plan assets is the assumed return earned by the accumulated pension and other postretirement fund assets in a particular year.
|
•
|
Amortization of Net Actuarial Gains (Losses) — Actuarial gains and losses result from differences between the actual experience and the expected experience on pension and other postretirement plan assets or projected (expected) PBO during a particular period. These gains and losses are accumulated and, to the extent they exceed
10%
of the greater of the PBO or the fair value of plan assets, the excess is amortized into pension and other postretirement benefit costs over the expected service years of the employees.
|
•
|
Amortization of Prior Service Costs (Credit) — These costs relate to the recognition of increases or decreases in pension and other postretirement benefit obligation due to amendments in plans or initiation of new plans. These increases or decreases in obligation are recognized in AOCI at the time of the amendment. These costs are then amortized to pension and other postretirement benefit costs over the expected service years of the employees affected by the change.
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||||||||||||||||||||||||||||||||||
|
U.S. Plans
|
|
Non-U.S. Plans
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||||||||||||||||||||||||||||||
|
Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2013
|
|
2012
|
|
2011
|
|
2013
|
|
2012
|
|
2011
|
|
2013
|
|
2012
|
|
2011
|
||||||||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Service costs
|
$
|
236
|
|
|
$
|
224
|
|
|
$
|
187
|
|
|
$
|
67
|
|
|
$
|
75
|
|
|
$
|
64
|
|
|
$
|
20
|
|
|
$
|
21
|
|
|
$
|
16
|
|
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
1
|
|
Interest costs
|
389
|
|
|
406
|
|
|
404
|
|
|
14
|
|
|
17
|
|
|
16
|
|
|
92
|
|
|
103
|
|
|
106
|
|
|
2
|
|
|
2
|
|
|
2
|
|
||||||||||||
Settlement and curtailment costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
||||||||||||
Expected return on plan assets
|
(483
|
)
|
|
(484
|
)
|
|
(448
|
)
|
|
(6
|
)
|
|
(6
|
)
|
|
(6
|
)
|
|
(75
|
)
|
|
(77
|
)
|
|
(76
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||||
Amortization of net actuarial (gains) losses
|
228
|
|
|
195
|
|
|
194
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55
|
|
|
57
|
|
|
43
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||
Amortization of prior service costs (credit)
|
6
|
|
|
6
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(75
|
)
|
|
(104
|
)
|
|
(108
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||
Total net periodic benefit costs (credit)
|
376
|
|
|
347
|
|
|
341
|
|
|
73
|
|
|
86
|
|
|
74
|
|
|
17
|
|
|
—
|
|
|
(19
|
)
|
|
4
|
|
|
3
|
|
|
3
|
|
||||||||||||
Other changes in plan assets and benefit obligations recognized in OCI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Net actuarial (gains) losses
|
(545
|
)
|
|
744
|
|
|
575
|
|
|
1
|
|
|
18
|
|
|
34
|
|
|
(533
|
)
|
|
234
|
|
|
262
|
|
|
1
|
|
|
2
|
|
|
5
|
|
||||||||||||
Prior service costs (credit)
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||||||||||
Amortization of net actuarial gains (losses)
|
(228
|
)
|
|
(195
|
)
|
|
(194
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(55
|
)
|
|
(57
|
)
|
|
(43
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
||||||||||||
Amortization of prior service (costs) credit
|
(6
|
)
|
|
(6
|
)
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
75
|
|
|
104
|
|
|
108
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||
Total recognized in OCI
|
(779
|
)
|
|
543
|
|
|
394
|
|
|
1
|
|
|
17
|
|
|
34
|
|
|
(513
|
)
|
|
281
|
|
|
327
|
|
|
(1
|
)
|
|
1
|
|
|
5
|
|
||||||||||||
Total recognized in net periodic benefit costs and OCI
|
$
|
(403
|
)
|
|
$
|
890
|
|
|
$
|
735
|
|
|
$
|
74
|
|
|
$
|
103
|
|
|
$
|
108
|
|
|
$
|
(496
|
)
|
|
$
|
281
|
|
|
$
|
308
|
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
8
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||
|
U.S. Plans
|
|
Non-U.S. Plans (1)
|
|
U.S. Plans
|
|
Non-U.S. Plans (1)
|
||||||
December 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
||
Weighted average discount rate
|
5.15%
|
|
1.94%
|
|
5.15%
|
|
6.47%
|
||||||
Rate of compensation increase
|
3.50
|
%
|
-
|
7.50%
|
|
2.00
|
%
|
-
|
5.50%
|
|
N/A
|
|
N/A
|
December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
||
Weighted average discount rate
|
4.20%
|
|
1.98%
|
|
4.20%
|
|
4.94%
|
||||||
Rate of compensation increase
|
3.50
|
%
|
-
|
7.50%
|
|
2.01
|
%
|
-
|
5.50%
|
|
N/A
|
|
N/A
|
(1)
|
Reflects those assumptions that were most appropriate for the local economic environments of each of the Subsidiaries providing such benefits.
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||
|
U.S. Plans
|
|
Non-U.S. Plans (1)
|
|
U.S. Plans
|
|
Non-U.S. Plans (1)
|
||||||
Year Ended December 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
||
Weighted average discount rate
|
4.20%
|
|
1.98%
|
|
4.20%
|
|
5.01%
|
||||||
Weighted average expected rate of return on plan assets
|
6.25%
|
|
2.07%
|
|
5.76%
|
|
7.25%
|
||||||
Rate of compensation increase
|
3.50
|
%
|
-
|
7.50%
|
|
1.50
|
%
|
-
|
5.50%
|
|
N/A
|
|
N/A
|
Year Ended December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
||
Weighted average discount rate
|
4.95%
|
|
2.35%
|
|
4.95%
|
|
5.78%
|
||||||
Weighted average expected rate of return on plan assets
|
7.00%
|
|
3.35%
|
|
6.26%
|
|
6.54%
|
||||||
Rate of compensation increase
|
3.50
|
%
|
-
|
7.50%
|
|
2.00
|
%
|
-
|
4.00%
|
|
N/A
|
|
N/A
|
Year Ended December 31, 2011:
|
|
|
|
|
|
|
|
|
|
|
|
||
Weighted average discount rate
|
5.80%
|
|
2.40%
|
|
5.80%
|
|
6.34%
|
||||||
Weighted average expected rate of return on plan assets
|
7.25%
|
|
3.19%
|
|
7.25%
|
|
7.01%
|
||||||
Rate of compensation increase
|
3.50
|
%
|
-
|
7.50%
|
|
3.00
|
%
|
-
|
5.50%
|
|
N/A
|
|
N/A
|
(1)
|
Reflects those assumptions that were most appropriate for the local economic environments of each of the Subsidiaries providing such benefits.
|
|
December 31,
|
||
|
2013
|
|
2012
|
Pre-and Post-Medicare eligible claims
|
6.4% in 2014, gradually decreasing each year until 2094 reaching the ultimate rate of 4.4% for Pre-Medicare and 4.6% for Post-Medicare.
|
|
7.8% in 2013, gradually decreasing each year until 2094 reaching the ultimate rate of 4.4% for Pre-Medicare and 4.6% for Post-Medicare.
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||
|
One Percent
Increase
|
|
One Percent
Decrease
|
|
One Percent
Increase
|
|
One Percent
Decrease
|
||||||||
|
(In millions)
|
||||||||||||||
Effect on total of service and interest costs components
|
$
|
16
|
|
|
$
|
(13
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Effect of accumulated postretirement benefit obligations
|
$
|
235
|
|
|
$
|
(193
|
)
|
|
$
|
1
|
|
|
$
|
(1
|
)
|
Level 1
|
|
This category includes separate accounts that are invested in fixed maturity securities, equity securities, derivative assets and short-term investments which have unadjusted quoted market prices in active markets for identical assets and liabilities.
|
|
|
|
Level 2
|
|
This category includes certain separate accounts that are primarily invested in liquid and readily marketable securities. The estimated fair value of such separate account is based upon reported NAV provided by fund managers and this value represents the amount at which transfers into and out of the respective separate account are effected. These separate accounts provide reasonable levels of price transparency and can be corroborated through observable market data.
|
|
|
|
|
|
Certain separate accounts are invested in investment partnerships designated as hedge funds. The values for these separate accounts is determined monthly based on the NAV of the underlying hedge fund investment. Additionally, such hedge funds generally contain lock out or other waiting period provisions for redemption requests to be filled. While the reporting and redemption restrictions may limit the frequency of trading activity in separate accounts invested in hedge funds, the reported NAV, and thus the referenced value of the separate account, provides a reasonable level of price transparency that can be corroborated through observable market data.
|
|
|
|
|
|
Directly held investments are primarily invested in U.S. and foreign government and corporate securities.
|
|
|
|
Level 3
|
|
This category includes separate accounts that are invested in fixed maturity securities, equity securities, derivative assets and other investments that provide little or no price transparency due to the infrequency with which the underlying assets trade and generally require additional time to liquidate in an orderly manner. Accordingly, the values for separate accounts invested in these alternative asset classes are based on inputs that cannot be readily derived from or corroborated by observable market data.
|
|
Pension
|
|
Postretirement Medical
|
|
Postretirement Life
|
|||||||||||||||||||||
|
Target
|
|
Actual Allocation
|
|
Target
|
|
Actual Allocation
|
|
Target
|
|
Actual Allocation
|
|||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|||||||||||||||
Asset Class:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Fixed maturity securities (1)
|
75
|
%
|
|
64
|
%
|
|
69
|
%
|
|
70
|
%
|
|
52
|
%
|
|
63
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Equity securities (2)
|
12
|
%
|
|
23
|
%
|
|
21
|
%
|
|
30
|
%
|
|
47
|
%
|
|
37
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Alternative securities (3)
|
13
|
%
|
|
13
|
%
|
|
10
|
%
|
|
—
|
%
|
|
1
|
%
|
|
—
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Total assets
|
|
|
100
|
%
|
|
100
|
%
|
|
|
|
100
|
%
|
|
100
|
%
|
|
|
|
100
|
%
|
|
100
|
%
|
(1)
|
Fixed maturity securities include primarily ABS, collateralized mortgage obligations, corporate, federal agency, foreign bonds, mortgage-backed securities, municipals, preferred stocks and U.S. government bonds.
|
(2)
|
Equity securities primarily include common stock of U.S. companies.
|
(3)
|
Alternative securities primarily include derivative assets, money market securities, short-term investments and other investments. Postretirement life’s target and actual allocation of plan assets are all in short-term investments.
|
|
December 31, 2013
|
||||||||||||||||||||||||||||||
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||||||||||||||||||
|
Fair Value Hierarchy
|
|
|
|
Fair Value Hierarchy
|
|
|
||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated
Fair
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated
Fair
Value
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Corporate
|
$
|
—
|
|
|
$
|
2,073
|
|
|
$
|
59
|
|
|
$
|
2,132
|
|
|
$
|
—
|
|
|
$
|
170
|
|
|
$
|
1
|
|
|
$
|
171
|
|
U.S. government bonds
|
924
|
|
|
166
|
|
|
—
|
|
|
1,090
|
|
|
135
|
|
|
5
|
|
|
—
|
|
|
140
|
|
||||||||
Foreign bonds
|
—
|
|
|
718
|
|
|
11
|
|
|
729
|
|
|
—
|
|
|
63
|
|
|
—
|
|
|
63
|
|
||||||||
Federal agencies
|
—
|
|
|
292
|
|
|
—
|
|
|
292
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
33
|
|
||||||||
Municipals
|
—
|
|
|
219
|
|
|
—
|
|
|
219
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
||||||||
Other (1)
|
—
|
|
|
490
|
|
|
19
|
|
|
509
|
|
|
—
|
|
|
54
|
|
|
—
|
|
|
54
|
|
||||||||
Total fixed maturity securities
|
924
|
|
|
3,958
|
|
|
89
|
|
|
4,971
|
|
|
135
|
|
|
340
|
|
|
1
|
|
|
476
|
|
||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common stock - domestic
|
1,133
|
|
|
22
|
|
|
148
|
|
|
1,303
|
|
|
328
|
|
|
—
|
|
|
—
|
|
|
328
|
|
||||||||
Common stock - foreign
|
460
|
|
|
—
|
|
|
—
|
|
|
460
|
|
|
102
|
|
|
—
|
|
|
—
|
|
|
102
|
|
||||||||
Total equity securities
|
1,593
|
|
|
22
|
|
|
148
|
|
|
1,763
|
|
|
430
|
|
|
—
|
|
|
—
|
|
|
430
|
|
||||||||
Other investments
|
—
|
|
|
—
|
|
|
600
|
|
|
600
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Short-term investments
|
53
|
|
|
309
|
|
|
—
|
|
|
362
|
|
|
—
|
|
|
439
|
|
|
—
|
|
|
439
|
|
||||||||
Money market securities
|
1
|
|
|
12
|
|
|
—
|
|
|
13
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||||||
Derivative assets
|
17
|
|
|
15
|
|
|
35
|
|
|
67
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||||||
Total assets
|
$
|
2,588
|
|
|
$
|
4,316
|
|
|
$
|
872
|
|
|
$
|
7,776
|
|
|
$
|
569
|
|
|
$
|
782
|
|
|
$
|
1
|
|
|
$
|
1,352
|
|
|
December 31, 2012
|
||||||||||||||||||||||||||||||
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||||||||||||||||||
|
Fair Value Hierarchy
|
|
|
|
Fair Value Hierarchy
|
|
|
||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated
Fair
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated
Fair
Value
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Corporate
|
$
|
—
|
|
|
$
|
2,260
|
|
|
$
|
19
|
|
|
$
|
2,279
|
|
|
$
|
—
|
|
|
$
|
165
|
|
|
$
|
4
|
|
|
$
|
169
|
|
U.S. government bonds
|
1,153
|
|
|
160
|
|
|
—
|
|
|
1,313
|
|
|
175
|
|
|
3
|
|
|
—
|
|
|
178
|
|
||||||||
Foreign bonds
|
—
|
|
|
761
|
|
|
8
|
|
|
769
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|
51
|
|
||||||||
Federal agencies
|
1
|
|
|
335
|
|
|
—
|
|
|
336
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
26
|
|
||||||||
Municipals
|
—
|
|
|
258
|
|
|
—
|
|
|
258
|
|
|
—
|
|
|
70
|
|
|
1
|
|
|
71
|
|
||||||||
Other (1)
|
—
|
|
|
490
|
|
|
7
|
|
|
497
|
|
|
—
|
|
|
55
|
|
|
3
|
|
|
58
|
|
||||||||
Total fixed maturity securities
|
1,154
|
|
|
4,264
|
|
|
34
|
|
|
5,452
|
|
|
175
|
|
|
370
|
|
|
8
|
|
|
553
|
|
||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common stock - domestic
|
1,092
|
|
|
38
|
|
|
137
|
|
|
1,267
|
|
|
249
|
|
|
1
|
|
|
—
|
|
|
250
|
|
||||||||
Common stock - foreign
|
362
|
|
|
—
|
|
|
—
|
|
|
362
|
|
|
83
|
|
|
—
|
|
|
—
|
|
|
83
|
|
||||||||
Total equity securities
|
1,454
|
|
|
38
|
|
|
137
|
|
|
1,629
|
|
|
332
|
|
|
1
|
|
|
—
|
|
|
333
|
|
||||||||
Other investments
|
—
|
|
|
117
|
|
|
447
|
|
|
564
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Short-term investments
|
—
|
|
|
214
|
|
|
—
|
|
|
214
|
|
|
—
|
|
|
432
|
|
|
—
|
|
|
432
|
|
||||||||
Money market securities
|
2
|
|
|
10
|
|
|
—
|
|
|
12
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||||
Derivative assets
|
—
|
|
|
7
|
|
|
1
|
|
|
8
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||||
Total assets
|
$
|
2,610
|
|
|
$
|
4,650
|
|
|
$
|
619
|
|
|
$
|
7,879
|
|
|
$
|
508
|
|
|
$
|
804
|
|
|
$
|
8
|
|
|
$
|
1,320
|
|
(1)
|
Other primarily includes mortgage-backed securities, collateralized mortgage obligations and ABS.
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||
|
Pension Benefits
|
||||||||||||||||||||||
|
Fixed Maturity
Securities:
|
|
Equity
Securities:
|
|
|
|
|
||||||||||||||||
|
Corporate
|
|
Foreign
Bonds
|
|
Other (1)
|
|
Common
Stock -
Domestic
|
|
Other
Investments
|
|
Derivative
Assets
|
||||||||||||
|
(In millions)
|
||||||||||||||||||||||
Year Ended December 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at January 1,
|
$
|
19
|
|
|
$
|
8
|
|
|
$
|
7
|
|
|
$
|
137
|
|
|
$
|
447
|
|
|
$
|
1
|
|
Realized gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(3
|
)
|
||||||
Unrealized gains (losses)
|
(2
|
)
|
|
1
|
|
|
—
|
|
|
9
|
|
|
59
|
|
|
(18
|
)
|
||||||
Purchases, sales, issuances and settlements, net
|
19
|
|
|
(3
|
)
|
|
11
|
|
|
3
|
|
|
(62
|
)
|
|
55
|
|
||||||
Transfers into and/or out of Level 3
|
23
|
|
|
5
|
|
|
1
|
|
|
—
|
|
|
156
|
|
|
—
|
|
||||||
Balance at December 31,
|
$
|
59
|
|
|
$
|
11
|
|
|
$
|
19
|
|
|
$
|
148
|
|
|
$
|
600
|
|
|
$
|
35
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||
|
Other Postretirement Benefits
|
||||||||||
|
Fixed Maturity
Securities:
|
||||||||||
|
Corporate
|
|
Municipals
|
|
Other (1)
|
||||||
|
(In millions)
|
||||||||||
Year Ended December 31, 2013:
|
|
|
|
|
|
||||||
Balance at January 1,
|
$
|
4
|
|
|
$
|
1
|
|
|
$
|
3
|
|
Realized gains (losses)
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||
Unrealized gains (losses)
|
—
|
|
|
—
|
|
|
4
|
|
|||
Purchases, sales, issuances and settlements, net
|
(3
|
)
|
|
(1
|
)
|
|
(4
|
)
|
|||
Transfers into and/or out of Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|||
Balance at December 31,
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||
|
Pension Benefits
|
||||||||||||||||||||||
|
Fixed Maturity
Securities:
|
|
Equity
Securities:
|
|
|
|
|
||||||||||||||||
|
Corporate
|
|
Foreign
Bonds
|
|
Other (1)
|
|
Common
Stock -
Domestic
|
|
Other
Investments
|
|
Derivative
Assets
|
||||||||||||
|
(In millions)
|
||||||||||||||||||||||
Year Ended December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at January 1,
|
$
|
32
|
|
|
$
|
5
|
|
|
$
|
2
|
|
|
$
|
206
|
|
|
$
|
531
|
|
|
$
|
4
|
|
Realized gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
|
55
|
|
|
6
|
|
||||||
Unrealized gains (losses)
|
(1
|
)
|
|
8
|
|
|
—
|
|
|
10
|
|
|
(36
|
)
|
|
(7
|
)
|
||||||
Purchases, sales, issuances and settlements, net
|
(12
|
)
|
|
(5
|
)
|
|
5
|
|
|
(52
|
)
|
|
(103
|
)
|
|
(2
|
)
|
||||||
Transfers into and/or out of Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Balance at December 31,
|
$
|
19
|
|
|
$
|
8
|
|
|
$
|
7
|
|
|
$
|
137
|
|
|
$
|
447
|
|
|
$
|
1
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||
|
Other Postretirement Benefits
|
||||||||||||||
|
Fixed Maturity
Securities:
|
|
|
||||||||||||
|
Corporate
|
|
Municipals
|
|
Other (1)
|
|
Derivative
Assets
|
||||||||
|
(In millions)
|
||||||||||||||
Year Ended December 31, 2012:
|
|
|
|
|
|
|
|
||||||||
Balance at January 1,
|
$
|
4
|
|
|
$
|
1
|
|
|
$
|
5
|
|
|
$
|
1
|
|
Realized gains (losses)
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
2
|
|
||||
Unrealized gains (losses)
|
—
|
|
|
—
|
|
|
2
|
|
|
(2
|
)
|
||||
Purchases, sales, issuances and settlements, net
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
||||
Transfers into and/or out of Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Balance at December 31,
|
$
|
4
|
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||
|
Pension Benefits
|
||||||||||||||||||||||
|
Fixed Maturity
Securities:
|
|
Equity
Securities:
|
|
|
|
|
||||||||||||||||
|
Corporate
|
|
Foreign
Bonds
|
|
Other (1)
|
|
Common
Stock -
Domestic
|
|
Other
Investments
|
|
Derivative
Assets
|
||||||||||||
|
(In millions)
|
||||||||||||||||||||||
Year Ended December 31, 2011:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at January 1,
|
$
|
49
|
|
|
$
|
4
|
|
|
$
|
2
|
|
|
$
|
240
|
|
|
$
|
471
|
|
|
$
|
—
|
|
Realized gains (losses)
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(59
|
)
|
|
85
|
|
|
2
|
|
||||||
Unrealized gains (losses)
|
(4
|
)
|
|
(1
|
)
|
|
1
|
|
|
118
|
|
|
45
|
|
|
4
|
|
||||||
Purchases, sales, issuances and settlements, net
|
(13
|
)
|
|
2
|
|
|
(1
|
)
|
|
(93
|
)
|
|
(70
|
)
|
|
(2
|
)
|
||||||
Transfers into and/or out of Level 3
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Balance at December 31,
|
$
|
32
|
|
|
$
|
5
|
|
|
$
|
2
|
|
|
$
|
206
|
|
|
$
|
531
|
|
|
$
|
4
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||
|
Other Postretirement Benefits
|
||||||||||||||
|
Fixed Maturity
Securities:
|
|
|
||||||||||||
|
Corporate
|
|
Municipals
|
|
Other (1)
|
|
Derivative
Assets
|
||||||||
|
(In millions)
|
||||||||||||||
Year Ended December 31, 2011:
|
|
|
|
|
|
|
|
||||||||
Balance at January 1,
|
$
|
4
|
|
|
$
|
1
|
|
|
$
|
6
|
|
|
$
|
—
|
|
Realized gains (losses)
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
Unrealized gains (losses)
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Purchases, sales, issuances and settlements, net
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
Transfers into and/or out of Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Balance at December 31,
|
$
|
4
|
|
|
$
|
1
|
|
|
$
|
5
|
|
|
$
|
1
|
|
(1)
|
Other includes ABS and collateralized mortgage obligations.
|
|
Pension
|
|
Other Postretirement
|
||||||||||||||
|
|
|
Actual Allocation
|
|
|
|
Actual Allocation
|
||||||||||
|
Target
|
|
2013
|
|
2012
|
|
Target
|
|
2013
|
|
2012
|
||||||
Asset Class:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturity securities (1)
|
76
|
%
|
|
50
|
%
|
|
54
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Equity securities (2)
|
17
|
%
|
|
33
|
%
|
|
24
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Alternative securities (3)
|
7
|
%
|
|
17
|
%
|
|
22
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Total assets
|
|
|
100
|
%
|
|
100
|
%
|
|
|
|
100
|
%
|
|
100
|
%
|
(1)
|
Fixed maturity securities include corporate and foreign bonds.
|
(2)
|
Equity securities primarily include common stock of non-U.S. companies.
|
(3)
|
Alternative securities include derivative assets, real estate, short-term investments, and other investments.
|
|
December 31, 2013
|
||||||||||||||||||||||||||||||
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||||||||||||||||||
|
Fair Value Hierarchy
|
|
|
|
Fair Value Hierarchy
|
|
|
||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated
Fair
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated
Fair
Value
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Corporate
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign bonds
|
—
|
|
|
96
|
|
|
—
|
|
|
96
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
14
|
|
||||||||
Total fixed maturity securities
|
—
|
|
|
123
|
|
|
—
|
|
|
123
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
14
|
|
||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common stock - foreign
|
—
|
|
|
83
|
|
|
—
|
|
|
83
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Other investments
|
32
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Derivative assets
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Real estate
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Short-term investments
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total assets
|
$
|
32
|
|
|
$
|
212
|
|
|
$
|
4
|
|
|
$
|
248
|
|
|
$
|
—
|
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
14
|
|
|
December 31, 2012
|
||||||||||||||||||||||||||||||
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||||||||||||||||||
|
Fair Value Hierarchy
|
|
|
|
Fair Value Hierarchy
|
|
|
||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated
Fair
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated
Fair
Value
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign bonds
|
$
|
—
|
|
|
$
|
120
|
|
|
$
|
—
|
|
|
$
|
120
|
|
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
15
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common stock - foreign
|
—
|
|
|
54
|
|
|
—
|
|
|
54
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Other investments
|
24
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Derivative assets
|
—
|
|
|
—
|
|
|
13
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Real estate
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Short-term investments
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total assets
|
$
|
24
|
|
|
$
|
180
|
|
|
$
|
20
|
|
|
$
|
224
|
|
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
15
|
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||
|
|
Pension Benefits
|
||||||||||||||||||||||
|
|
Years Ended December 31,
|
||||||||||||||||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||||||||||||||
|
|
Derivative
Assets
|
|
Real
Estate
|
|
Derivative
Assets
|
|
Real
Estate
|
|
Derivative
Assets
|
|
Real
Estate
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Balance at January 1,
|
|
$
|
13
|
|
|
$
|
7
|
|
|
$
|
13
|
|
|
$
|
8
|
|
|
$
|
11
|
|
|
$
|
8
|
|
Realized gains (losses)
|
|
(2
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
||||||
Unrealized gains (losses)
|
|
3
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||||
Purchases, sales, issuances, and settlements, net
|
|
(12
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Balance at December 31,
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
13
|
|
|
$
|
7
|
|
|
$
|
13
|
|
|
$
|
8
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||
|
U.S. Plans
|
|
Non-U.S. Plans
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||
|
(In millions)
|
||||||||||||||
2014
|
$
|
461
|
|
|
$
|
35
|
|
|
$
|
84
|
|
|
$
|
4
|
|
2015
|
$
|
474
|
|
|
$
|
38
|
|
|
$
|
86
|
|
|
$
|
4
|
|
2016
|
$
|
487
|
|
|
$
|
42
|
|
|
$
|
86
|
|
|
$
|
4
|
|
2017
|
$
|
515
|
|
|
$
|
42
|
|
|
$
|
89
|
|
|
$
|
4
|
|
2018
|
$
|
524
|
|
|
$
|
45
|
|
|
$
|
93
|
|
|
$
|
4
|
|
2019-2023
|
$
|
2,928
|
|
|
$
|
263
|
|
|
$
|
522
|
|
|
$
|
16
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
85
|
|
|
$
|
(29
|
)
|
|
$
|
(200
|
)
|
State and local
|
2
|
|
|
6
|
|
|
(1
|
)
|
|||
Foreign
|
422
|
|
|
846
|
|
|
614
|
|
|||
Subtotal
|
509
|
|
|
823
|
|
|
413
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
Federal
|
(250
|
)
|
|
(244
|
)
|
|
2,241
|
|
|||
State and local
|
(11
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|||
Foreign
|
413
|
|
|
(450
|
)
|
|
142
|
|
|||
Subtotal
|
152
|
|
|
(695
|
)
|
|
2,380
|
|
|||
Provision for income tax expense (benefit)
|
$
|
661
|
|
|
$
|
128
|
|
|
$
|
2,793
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Income (loss) from continuing operations:
|
|
|
|
|
|
||||||
Domestic
|
$
|
1,186
|
|
|
$
|
(1,496
|
)
|
|
$
|
6,869
|
|
Foreign
|
2,866
|
|
|
2,938
|
|
|
2,315
|
|
|||
Total
|
$
|
4,052
|
|
|
$
|
1,442
|
|
|
$
|
9,184
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Tax provision at U.S. statutory rate
|
$
|
1,418
|
|
|
$
|
505
|
|
|
$
|
3,215
|
|
Tax effect of:
|
|
|
|
|
|
||||||
Dividend received deduction
|
(166
|
)
|
|
(162
|
)
|
|
(160
|
)
|
|||
Tax-exempt income
|
(96
|
)
|
|
(94
|
)
|
|
(86
|
)
|
|||
Prior year tax
|
75
|
|
|
23
|
|
|
(4
|
)
|
|||
Low income housing tax credits
|
(194
|
)
|
|
(150
|
)
|
|
(102
|
)
|
|||
Other tax credits
|
(54
|
)
|
|
(28
|
)
|
|
(36
|
)
|
|||
Foreign tax rate differential (1)
|
(340
|
)
|
|
(45
|
)
|
|
(41
|
)
|
|||
Change in valuation allowance
|
30
|
|
|
15
|
|
|
16
|
|
|||
Goodwill impairment
|
—
|
|
|
408
|
|
|
—
|
|
|||
Deferred tax effects of branch conversions
|
4
|
|
|
(324
|
)
|
|
—
|
|
|||
Other, net
|
(16
|
)
|
|
(20
|
)
|
|
(9
|
)
|
|||
Provision for income tax expense (benefit)
|
$
|
661
|
|
|
$
|
128
|
|
|
$
|
2,793
|
|
(1)
|
For the year ended December 31, 2013, foreign tax rate differential includes one-time tax benefits of
$119 million
related to the receipt of a Japan tax refund,
$69 million
related to the estimated reversal of Japan temporary differences, and
$65 million
related to the change in repatriation assumptions for foreign earnings of certain European operations.
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(In millions)
|
||||||
Deferred income tax assets:
|
|
|
|
||||
Policyholder liabilities and receivables
|
$
|
1,014
|
|
|
$
|
6,233
|
|
Investments, including derivatives
|
86
|
|
|
—
|
|
||
Net operating loss carryforwards
|
1,808
|
|
|
1,408
|
|
||
Employee benefits
|
737
|
|
|
1,234
|
|
||
Capital loss carryforwards
|
32
|
|
|
160
|
|
||
Tax credit carryforwards
|
1,653
|
|
|
545
|
|
||
Litigation-related and government mandated
|
232
|
|
|
197
|
|
||
Other
|
471
|
|
|
484
|
|
||
Total gross deferred income tax assets
|
6,033
|
|
|
10,261
|
|
||
Less: Valuation allowance
|
357
|
|
|
368
|
|
||
Total net deferred income tax assets
|
5,676
|
|
|
9,893
|
|
||
Deferred income tax liabilities:
|
|
|
|
||||
Investments, including derivatives
|
—
|
|
|
3,149
|
|
||
Intangibles
|
2,081
|
|
|
2,668
|
|
||
Net unrealized investment gains
|
4,883
|
|
|
7,854
|
|
||
DAC
|
5,133
|
|
|
4,775
|
|
||
Other
|
222
|
|
|
140
|
|
||
Total deferred income tax liabilities
|
12,319
|
|
|
18,586
|
|
||
Net deferred income tax asset (liability)
|
$
|
(6,643
|
)
|
|
$
|
(8,693
|
)
|
|
Net Operating Loss Carryforwards
|
|
Capital Loss Carryforwards
|
||||||||
|
Amount
|
|
Expiration
|
|
Amount
|
|
Expiration
|
||||
|
(In millions)
|
|
|
|
(In millions)
|
|
|
||||
Domestic
|
$
|
4,153
|
|
|
Beginning in 2018
|
|
$
|
52
|
|
|
Beginning in 2018
|
State
|
$
|
153
|
|
|
Beginning in 2014
|
|
$
|
—
|
|
|
N/A
|
Foreign
|
$
|
1,576
|
|
|
Beginning in 2014
|
|
$
|
40
|
|
|
Beginning in 2014
|
•
|
Additional U.S. deferred tax assets that more likely than not will not be realizable;
|
•
|
A reduction in both the gross deferred tax asset and the valuation allowance related to the completion of the Company’s transfer of its foreign branch assets to wholly-owned subsidiaries.
|
|
Amount
|
||
|
(In millions)
|
||
Balance at January 1, 2012
|
$
|
23
|
|
Income tax expense (benefit)
|
12
|
|
|
Deferred income tax expense (benefit) related to unrealized investment gains (losses)
|
(10
|
)
|
|
Offsetting reduction in gross deferred tax asset related to the branch transfer of assets to foreign subsidies
|
—
|
|
|
Balance at December 31, 2012
|
25
|
|
|
Income tax expense (benefit)
|
4
|
|
|
Deferred income tax expense (benefit) related to unrealized investment gains (losses)
|
2
|
|
|
Offsetting reduction in gross deferred tax asset related to the branch transfer of assets to foreign subsidies
|
(31
|
)
|
|
Balance at December 31, 2013
|
$
|
—
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Balance at January 1,
|
$
|
708
|
|
|
$
|
679
|
|
|
$
|
810
|
|
Additions for tax positions of prior years
|
117
|
|
|
105
|
|
|
30
|
|
|||
Reductions for tax positions of prior years
|
(37
|
)
|
|
(82
|
)
|
|
(161
|
)
|
|||
Additions for tax positions of current year
|
39
|
|
|
32
|
|
|
13
|
|
|||
Reductions for tax positions of current year
|
(1
|
)
|
|
(9
|
)
|
|
(8
|
)
|
|||
Settlements with tax authorities
|
(52
|
)
|
|
(15
|
)
|
|
(5
|
)
|
|||
Lapses of statutes of limitations
|
—
|
|
|
(2
|
)
|
|
—
|
|
|||
Balance at December 31,
|
$
|
774
|
|
|
$
|
708
|
|
|
$
|
679
|
|
Unrecognized tax benefits that, if recognized would impact the effective rate
|
$
|
661
|
|
|
$
|
566
|
|
|
$
|
527
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Interest recognized in the consolidated statements of operations
|
$
|
20
|
|
|
$
|
2
|
|
|
$
|
31
|
|
|
|
|
|
|
|
||||||
|
|
|
December 31,
|
||||||||
|
|
|
2013
|
|
2012
|
||||||
|
|
|
(In millions)
|
||||||||
Interest included in other liabilities in the consolidated balance sheets
|
|
|
$
|
257
|
|
|
$
|
237
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions, except share and per share data)
|
||||||||||
Weighted Average Shares:
|
|
|
|
|
|
||||||
Weighted average common stock outstanding for basic earnings per common share
|
1,105,579,693
|
|
|
1,070,755,561
|
|
|
1,059,580,442
|
|
|||
Incremental common shares from assumed:
|
|
|
|
|
|
||||||
Stock purchase contracts underlying common equity units (1)
|
1,164,018
|
|
|
—
|
|
|
1,641,444
|
|
|||
Exercise or issuance of stock-based awards
|
9,458,999
|
|
|
6,084,078
|
|
|
6,872,474
|
|
|||
Weighted average common stock outstanding for diluted earnings per common share
|
1,116,202,710
|
|
|
1,076,839,639
|
|
|
1,068,094,360
|
|
|||
Income (Loss) from Continuing Operations:
|
|
|
|
|
|
||||||
Income (loss) from continuing operations, net of income tax
|
$
|
3,391
|
|
|
$
|
1,314
|
|
|
$
|
6,391
|
|
Less: Income (loss) from continuing operations, net of income tax, attributable to noncontrolling interests
|
25
|
|
|
38
|
|
|
(8
|
)
|
|||
Less: Preferred stock dividends
|
122
|
|
|
122
|
|
|
122
|
|
|||
Preferred stock redemption premium
|
—
|
|
|
—
|
|
|
146
|
|
|||
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders
|
$
|
3,244
|
|
|
$
|
1,154
|
|
|
$
|
6,131
|
|
Basic
|
$
|
2.94
|
|
|
$
|
1.08
|
|
|
$
|
5.79
|
|
Diluted
|
$
|
2.91
|
|
|
$
|
1.08
|
|
|
$
|
5.74
|
|
Income (Loss) from Discontinued Operations:
|
|
|
|
|
|
||||||
Income (loss) from discontinued operations, net of income tax
|
$
|
2
|
|
|
$
|
48
|
|
|
$
|
24
|
|
Less: Income (loss) from discontinued operations, net of income tax, attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|||
Income (loss) from discontinued operations, net of income tax, available to MetLife, Inc.’s common shareholders
|
$
|
2
|
|
|
$
|
48
|
|
|
$
|
24
|
|
Basic
|
$
|
—
|
|
|
$
|
0.04
|
|
|
$
|
0.02
|
|
Diluted
|
$
|
—
|
|
|
$
|
0.04
|
|
|
$
|
0.02
|
|
Net Income (Loss):
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
3,393
|
|
|
$
|
1,362
|
|
|
$
|
6,415
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
25
|
|
|
38
|
|
|
(8
|
)
|
|||
Less: Preferred stock dividends
|
122
|
|
|
122
|
|
|
122
|
|
|||
Preferred stock redemption premium
|
—
|
|
|
—
|
|
|
146
|
|
|||
Net income (loss) available to MetLife, Inc.’s common shareholders
|
$
|
3,246
|
|
|
$
|
1,202
|
|
|
$
|
6,155
|
|
Basic
|
$
|
2.94
|
|
|
$
|
1.12
|
|
|
$
|
5.81
|
|
Diluted
|
$
|
2.91
|
|
|
$
|
1.12
|
|
|
$
|
5.76
|
|
(1)
|
See Note
15
for a description of the Company’s common equity units. For the year ended December 31,
2012
, all shares related to the assumed issuance of shares in settlement of the applicable purchase contracts have been excluded from the calculation of diluted earnings per common share as these assumed shares are anti-dilutive.
|
|
December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions, except number of claims)
|
||||||||||
Asbestos personal injury claims at year end
|
67,983
|
|
|
65,812
|
|
|
66,747
|
|
|||
Number of new claims during the year
|
5,898
|
|
|
5,303
|
|
|
4,972
|
|
|||
Settlement payments during the year (1)
|
$
|
37.0
|
|
|
$
|
36.4
|
|
|
$
|
34.2
|
|
(1)
|
Settlement payments represent payments made by MLIC during the year in connection with settlements made in that year and in prior years. Amounts do not include MLIC’s attorneys’ fees and expenses and do not reflect amounts received from insurance carriers.
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(In millions)
|
||||||
Other Assets:
|
|
|
|
||||
Premium tax offset for future undiscounted assessments
|
$
|
60
|
|
|
$
|
114
|
|
Premium tax offsets currently available for paid assessments
|
69
|
|
|
14
|
|
||
Receivable for reimbursement of paid assessments (1)
|
5
|
|
|
6
|
|
||
|
$
|
134
|
|
|
$
|
134
|
|
Other Liabilities:
|
|
|
|
||||
Insolvency assessments
|
$
|
93
|
|
|
$
|
205
|
|
(1)
|
The Company holds a receivable from the seller of a prior acquisition in accordance with the purchase agreement.
|
|
Amount
|
||
|
(In millions)
|
||
2014
|
$
|
320
|
|
2015
|
259
|
|
|
2016
|
212
|
|
|
2017
|
161
|
|
|
2018
|
141
|
|
|
Thereafter
|
794
|
|
|
Total
|
$
|
1,887
|
|
|
Three Months Ended
|
||||||||||||||
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
||||||||
|
(In millions, except per share data)
|
||||||||||||||
2013:
|
|
|
|
|
|
|
|
||||||||
Total revenues
|
$
|
17,683
|
|
|
$
|
15,721
|
|
|
$
|
16,337
|
|
|
$
|
18,458
|
|
Total expenses
|
$
|
16,436
|
|
|
$
|
15,160
|
|
|
$
|
15,361
|
|
|
$
|
17,190
|
|
Income (loss) from continuing operations, net of income tax
|
$
|
995
|
|
|
$
|
508
|
|
|
$
|
973
|
|
|
$
|
915
|
|
Income (loss) from discontinued operations, net of income tax
|
$
|
(3
|
)
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
1
|
|
Net income (loss)
|
$
|
992
|
|
|
$
|
510
|
|
|
$
|
975
|
|
|
$
|
916
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
$
|
6
|
|
|
$
|
8
|
|
|
$
|
3
|
|
|
$
|
8
|
|
Net income (loss) attributable to MetLife, Inc.
|
$
|
986
|
|
|
$
|
502
|
|
|
$
|
972
|
|
|
$
|
908
|
|
Less: Preferred stock dividends
|
$
|
30
|
|
|
$
|
31
|
|
|
$
|
30
|
|
|
$
|
31
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders
|
$
|
956
|
|
|
$
|
471
|
|
|
$
|
942
|
|
|
$
|
877
|
|
Basic earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders
|
$
|
0.87
|
|
|
$
|
0.43
|
|
|
$
|
0.85
|
|
|
$
|
0.78
|
|
Income (loss) from discontinued operations, net of income tax, attributable to MetLife, Inc.
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net income (loss) attributable to MetLife, Inc.
|
$
|
0.90
|
|
|
$
|
0.46
|
|
|
$
|
0.88
|
|
|
$
|
0.81
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders
|
$
|
0.87
|
|
|
$
|
0.43
|
|
|
$
|
0.85
|
|
|
$
|
0.78
|
|
Diluted earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders
|
$
|
0.87
|
|
|
$
|
0.43
|
|
|
$
|
0.84
|
|
|
$
|
0.77
|
|
Income (loss) from discontinued operations, net of income tax, attributable to MetLife, Inc.
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net income (loss) attributable to MetLife, Inc.
|
$
|
0.89
|
|
|
$
|
0.45
|
|
|
$
|
0.87
|
|
|
$
|
0.80
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders
|
$
|
0.87
|
|
|
$
|
0.43
|
|
|
$
|
0.84
|
|
|
$
|
0.77
|
|
2012:
|
|
|
|
|
|
|
|
||||||||
Total revenues
|
$
|
15,916
|
|
|
$
|
18,398
|
|
|
$
|
16,503
|
|
|
$
|
17,333
|
|
Total expenses
|
$
|
16,325
|
|
|
$
|
15,060
|
|
|
$
|
17,513
|
|
|
$
|
17,810
|
|
Income (loss) from continuing operations, net of income tax
|
$
|
(134
|
)
|
|
$
|
2,300
|
|
|
$
|
(957
|
)
|
|
$
|
105
|
|
Income (loss) from discontinued operations, net of income tax
|
$
|
14
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
31
|
|
Net income (loss)
|
$
|
(120
|
)
|
|
$
|
2,303
|
|
|
$
|
(957
|
)
|
|
$
|
136
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
$
|
24
|
|
|
$
|
8
|
|
|
$
|
(3
|
)
|
|
$
|
9
|
|
Net income (loss) attributable to MetLife, Inc.
|
$
|
(144
|
)
|
|
$
|
2,295
|
|
|
$
|
(954
|
)
|
|
$
|
127
|
|
Less: Preferred stock dividends
|
$
|
30
|
|
|
$
|
31
|
|
|
$
|
30
|
|
|
$
|
31
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders
|
$
|
(174
|
)
|
|
$
|
2,264
|
|
|
$
|
(984
|
)
|
|
$
|
96
|
|
Basic earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders
|
$
|
(0.17
|
)
|
|
$
|
2.13
|
|
|
$
|
(0.92
|
)
|
|
$
|
0.06
|
|
Income (loss) from discontinued operations, net of income tax, attributable to MetLife, Inc.
|
$
|
0.01
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.03
|
|
Net income (loss) attributable to MetLife, Inc.
|
$
|
(0.14
|
)
|
|
$
|
2.16
|
|
|
$
|
(0.90
|
)
|
|
$
|
0.12
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders
|
$
|
(0.16
|
)
|
|
$
|
2.13
|
|
|
$
|
(0.92
|
)
|
|
$
|
0.09
|
|
Diluted earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders
|
$
|
(0.17
|
)
|
|
$
|
2.12
|
|
|
$
|
(0.92
|
)
|
|
$
|
0.06
|
|
Income (loss) from discontinued operations, net of income tax, attributable to MetLife, Inc.
|
$
|
0.01
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.03
|
|
Net income (loss) attributable to MetLife, Inc.
|
$
|
(0.14
|
)
|
|
$
|
2.14
|
|
|
$
|
(0.90
|
)
|
|
$
|
0.12
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders
|
$
|
(0.16
|
)
|
|
$
|
2.12
|
|
|
$
|
(0.92
|
)
|
|
$
|
0.09
|
|
Types of Investments
|
Cost or Amortized Cost (1)
|
|
Estimated Fair Value
|
|
Amount at Which Shown on Balance Sheet
|
||||||
Fixed maturity securities:
|
|
|
|
|
|
||||||
Bonds:
|
|
|
|
|
|
||||||
Foreign government securities
|
$
|
50,717
|
|
|
$
|
54,437
|
|
|
$
|
54,437
|
|
U.S. Treasury and agency securities
|
43,928
|
|
|
45,123
|
|
|
45,123
|
|
|||
Public utilities
|
27,512
|
|
|
29,897
|
|
|
29,897
|
|
|||
State and political subdivision securities
|
13,233
|
|
|
13,830
|
|
|
13,830
|
|
|||
All other corporate bonds
|
130,469
|
|
|
137,682
|
|
|
137,682
|
|
|||
Total bonds
|
265,859
|
|
|
280,969
|
|
|
280,969
|
|
|||
Mortgage-backed and asset-backed securities
|
65,740
|
|
|
67,176
|
|
|
67,176
|
|
|||
Redeemable preferred stock
|
2,000
|
|
|
2,042
|
|
|
2,042
|
|
|||
Total fixed maturity securities
|
333,599
|
|
|
350,187
|
|
|
350,187
|
|
|||
Fair value option and trading securities
|
16,403
|
|
|
17,423
|
|
|
17,423
|
|
|||
Equity securities:
|
|
|
|
|
|
||||||
Common stock:
|
|
|
|
|
|
||||||
Industrial, miscellaneous and all other
|
1,760
|
|
|
2,143
|
|
|
2,143
|
|
|||
Banks, trust and insurance companies
|
167
|
|
|
210
|
|
|
210
|
|
|||
Non-redeemable preferred stock
|
1,085
|
|
|
1,049
|
|
|
1,049
|
|
|||
Total equity securities
|
3,012
|
|
|
3,402
|
|
|
3,402
|
|
|||
Mortgage loans:
|
|
|
|
|
|
||||||
Held-for-investment
|
57,703
|
|
|
|
|
57,703
|
|
||||
Held-for-sale
|
3
|
|
|
|
|
3
|
|
||||
Mortgage loans, net
|
57,706
|
|
|
|
|
57,706
|
|
||||
Policy loans
|
11,764
|
|
|
|
|
11,764
|
|
||||
Real estate and real estate joint ventures
|
10,267
|
|
|
|
|
10,267
|
|
||||
Real estate acquired in satisfaction of debt
|
445
|
|
|
|
|
445
|
|
||||
Other limited partnership interests
|
7,401
|
|
|
|
|
7,401
|
|
||||
Short-term investments
|
13,955
|
|
|
|
|
13,955
|
|
||||
Other invested assets
|
16,229
|
|
|
|
|
16,229
|
|
||||
Total investments
|
$
|
470,781
|
|
|
|
|
$
|
488,779
|
|
(1)
|
The Company’s fair value option and trading securities portfolio is mainly comprised of fixed maturity and equity securities, including mutual funds and, to a lesser extent, short-term investments and cash and cash equivalents. Cost or amortized cost for fixed maturity securities and mortgage loans held-for-investment represents original cost reduced by repayments, valuation allowances and impairments from other-than-temporary declines in estimated fair value that are charged to earnings and adjusted for amortization of premiums or accretion of discounts; for equity securities, cost represents original cost reduced by impairments from other-than-temporary declines in estimated fair value; for real estate, cost represents original cost reduced by impairments and adjusted for valuation allowances and depreciation; for real estate joint ventures and other limited partnership interests cost represents original cost reduced for impairments or original cost adjusted for equity in earnings and distributions.
|
|
2013
|
|
2012
|
||||
Condensed Balance Sheets
|
|
|
|
||||
Assets
|
|
|
|
||||
Investments:
|
|
|
|
||||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $4,497 and $4,867, respectively)
|
$
|
4,531
|
|
|
$
|
4,967
|
|
Equity securities available-for-sale, at estimated fair value (cost: $0 and $15, respectively)
|
—
|
|
|
13
|
|
||
Short-term investments, principally at estimated fair value
|
560
|
|
|
295
|
|
||
Other invested assets, at estimated fair value
|
557
|
|
|
155
|
|
||
Total investments
|
5,648
|
|
|
5,430
|
|
||
Cash and cash equivalents
|
648
|
|
|
188
|
|
||
Accrued investment income
|
40
|
|
|
37
|
|
||
Investment in subsidiaries
|
76,871
|
|
|
81,769
|
|
||
Loans to subsidiaries
|
2,333
|
|
|
750
|
|
||
Receivables from subsidiaries
|
—
|
|
|
7
|
|
||
Other assets
|
1,677
|
|
|
1,369
|
|
||
Total assets
|
$
|
87,217
|
|
|
$
|
89,550
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Payables for collateral under securities loaned and other transactions
|
$
|
85
|
|
|
$
|
—
|
|
Long-term debt — unaffiliated
|
15,938
|
|
|
15,669
|
|
||
Long-term debt — affiliated
|
3,600
|
|
|
3,250
|
|
||
Collateral financing arrangements
|
2,797
|
|
|
2,797
|
|
||
Junior subordinated debt securities
|
1,748
|
|
|
1,748
|
|
||
Payables to subsidiaries
|
13
|
|
|
—
|
|
||
Other liabilities
|
1,483
|
|
|
1,633
|
|
||
Total liabilities
|
25,664
|
|
|
25,097
|
|
||
Stockholders’ Equity
|
|
|
|
||||
Preferred stock, par value $0.01 per share; 200,000,000 shares authorized: 84,000,000 shares issued and outstanding; $2,100 aggregate liquidation preference
|
1
|
|
|
1
|
|
||
Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,125,224,024 and 1,094,880,623 shares issued at December 31, 2013 and 2012, respectively; 1,122,030,137 and 1,091,686,736 shares outstanding at December 31, 2013 and 2012, respectively
|
11
|
|
|
11
|
|
||
Additional paid-in capital
|
29,277
|
|
|
28,011
|
|
||
Retained earnings
|
27,332
|
|
|
25,205
|
|
||
Treasury stock, at cost; 3,193,887 shares at December 31, 2013 and 2012
|
(172
|
)
|
|
(172
|
)
|
||
Accumulated other comprehensive income (loss)
|
5,104
|
|
|
11,397
|
|
||
Total stockholders’ equity
|
61,553
|
|
|
64,453
|
|
||
Total liabilities and stockholders’ equity
|
$
|
87,217
|
|
|
$
|
89,550
|
|
|
2013
|
|
2012
|
|
2011
|
||||||
Condensed Statements of Operations
|
|
|
|
|
|
||||||
Revenues
|
|
|
|
|
|
||||||
Equity in earnings of subsidiaries
|
$
|
4,163
|
|
|
$
|
3,444
|
|
|
$
|
6,979
|
|
Net investment income
|
304
|
|
|
94
|
|
|
121
|
|
|||
Other revenues
|
155
|
|
|
159
|
|
|
155
|
|
|||
Net investment gains (losses)
|
(80
|
)
|
|
29
|
|
|
(146
|
)
|
|||
Net derivative gains (losses)
|
(99
|
)
|
|
(259
|
)
|
|
82
|
|
|||
Total revenues
|
4,443
|
|
|
3,467
|
|
|
7,191
|
|
|||
Expenses
|
|
|
|
|
|
||||||
Interest expense
|
1,122
|
|
|
985
|
|
|
1,007
|
|
|||
Goodwill impairment
|
—
|
|
|
1,384
|
|
|
—
|
|
|||
Other expenses
|
373
|
|
|
167
|
|
|
149
|
|
|||
Total expenses
|
1,495
|
|
|
2,536
|
|
|
1,156
|
|
|||
Income (loss) before provision for income tax
|
2,948
|
|
|
931
|
|
|
6,035
|
|
|||
Provision for income tax expense (benefit)
|
(420
|
)
|
|
(393
|
)
|
|
(388
|
)
|
|||
Net income (loss)
|
3,368
|
|
|
1,324
|
|
|
6,423
|
|
|||
Less: Preferred stock dividends
|
122
|
|
|
122
|
|
|
122
|
|
|||
Preferred stock redemption premium
|
—
|
|
|
—
|
|
|
146
|
|
|||
Net income (loss) available to common shareholders
|
$
|
3,246
|
|
|
$
|
1,202
|
|
|
$
|
6,155
|
|
Comprehensive income (loss)
|
$
|
(2,925
|
)
|
|
$
|
6,638
|
|
|
$
|
11,361
|
|
|
2013
|
|
2012
|
|
2011
|
||||||
Condensed Statements of Cash Flows
|
|
|
|
|
|
||||||
Cash flows from operating activities
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
3,368
|
|
|
$
|
1,324
|
|
|
$
|
6,423
|
|
Earnings of subsidiaries
|
(4,163
|
)
|
|
(3,444
|
)
|
|
(6,979
|
)
|
|||
Dividends from subsidiaries
|
2,734
|
|
|
3,177
|
|
|
2,578
|
|
|||
Goodwill impairment
|
—
|
|
|
1,384
|
|
|
—
|
|
|||
Other, net
|
(74
|
)
|
|
177
|
|
|
697
|
|
|||
Net cash provided by (used in) operating activities
|
1,865
|
|
|
2,618
|
|
|
2,719
|
|
|||
Cash flows from investing activities
|
|
|
|
|
|
||||||
Sales of fixed maturity securities
|
5,108
|
|
|
5,645
|
|
|
3,265
|
|
|||
Purchases of fixed maturity securities
|
(4,795
|
)
|
|
(6,200
|
)
|
|
(4,787
|
)
|
|||
Sales of equity securities
|
13
|
|
|
2
|
|
|
1
|
|
|||
Cash received in connection with freestanding derivatives
|
424
|
|
|
197
|
|
|
257
|
|
|||
Cash paid in connection with freestanding derivatives
|
(465
|
)
|
|
(203
|
)
|
|
(276
|
)
|
|||
Sales of businesses
|
17
|
|
|
—
|
|
|
180
|
|
|||
Expense paid on behalf of subsidiaries
|
(85
|
)
|
|
(80
|
)
|
|
(75
|
)
|
|||
Repayments of loans to subsidiaries
|
645
|
|
|
175
|
|
|
1,275
|
|
|||
Issuances of loans to subsidiaries
|
(1,942
|
)
|
|
(175
|
)
|
|
—
|
|
|||
Redemption of preferred stock of subsidiary
|
300
|
|
|
—
|
|
|
—
|
|
|||
Investment in preferred stock of subsidiary
|
—
|
|
|
—
|
|
|
(250
|
)
|
|||
Returns of capital from subsidiaries
|
267
|
|
|
9
|
|
|
591
|
|
|||
Capital contributions to subsidiaries
|
(748
|
)
|
|
(1,223
|
)
|
|
(1,439
|
)
|
|||
Net change in short-term investments
|
(265
|
)
|
|
372
|
|
|
(620
|
)
|
|||
Other, net
|
(49
|
)
|
|
(48
|
)
|
|
(10
|
)
|
|||
Net cash provided by (used in) investing activities
|
(1,575
|
)
|
|
(1,529
|
)
|
|
(1,888
|
)
|
|||
Cash flows from financing activities
|
|
|
|
|
|
||||||
Net change in payables for collateral under securities loaned and other transactions
|
85
|
|
|
(1,180
|
)
|
|
520
|
|
|||
Long-term debt issued
|
994
|
|
|
750
|
|
|
—
|
|
|||
Long-term debt repaid
|
(750
|
)
|
|
(797
|
)
|
|
(750
|
)
|
|||
Cash received (paid) in connection with collateral financing arrangements
|
—
|
|
|
(44
|
)
|
|
37
|
|
|||
Common stock issued, net of issuance costs
|
1,000
|
|
|
1,000
|
|
|
2,950
|
|
|||
Redemption of convertible preferred stock
|
—
|
|
|
—
|
|
|
(2,805
|
)
|
|||
Preferred stock redemption premium
|
—
|
|
|
—
|
|
|
(146
|
)
|
|||
Dividends on preferred stock
|
(122
|
)
|
|
(122
|
)
|
|
(122
|
)
|
|||
Dividends on common stock
|
(1,119
|
)
|
|
(811
|
)
|
|
(787
|
)
|
|||
Other, net
|
82
|
|
|
(6
|
)
|
|
(43
|
)
|
|||
Net cash provided by (used in) financing activities
|
170
|
|
|
(1,210
|
)
|
|
(1,146
|
)
|
|||
Change in cash and cash equivalents
|
460
|
|
|
(121
|
)
|
|
(315
|
)
|
|||
Cash and cash equivalents, beginning of year
|
188
|
|
|
309
|
|
|
624
|
|
|||
Cash and cash equivalents, end of year
|
$
|
648
|
|
|
$
|
188
|
|
|
$
|
309
|
|
|
2013
|
|
2012
|
|
2011
|
||||||
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
||||||
Net cash paid (received) for:
|
|
|
|
|
|
||||||
Interest
|
$
|
1,100
|
|
|
$
|
937
|
|
|
$
|
997
|
|
Income tax
|
$
|
69
|
|
|
$
|
24
|
|
|
$
|
(659
|
)
|
Non-cash transactions:
|
|
|
|
|
|
||||||
Dividends from subsidiaries
|
$
|
32
|
|
|
$
|
203
|
|
|
$
|
170
|
|
Returns of capital from subsidiaries
|
$
|
—
|
|
|
$
|
356
|
|
|
$
|
47
|
|
Capital contributions to subsidiaries
|
$
|
121
|
|
|
$
|
559
|
|
|
$
|
316
|
|
Assumption of long-term debt from subsidiary
|
$
|
—
|
|
|
$
|
2,000
|
|
|
$
|
—
|
|
Investment in preferred stock of subsidiary
|
$
|
—
|
|
|
$
|
2,000
|
|
|
$
|
—
|
|
Issuance of long-term debt to subsidiary
|
$
|
350
|
|
|
$
|
750
|
|
|
$
|
—
|
|
Issuance of loan to subsidiary
|
$
|
350
|
|
|
$
|
750
|
|
|
$
|
—
|
|
Allocation of interest expense to subsidiary
|
$
|
28
|
|
|
$
|
33
|
|
|
$
|
29
|
|
Allocation of interest income to subsidiary
|
$
|
68
|
|
|
$
|
76
|
|
|
$
|
68
|
|
|
Interest Rates (1)
|
|
|
|
December 31,
|
||||||||
|
Range
|
|
Weighted
Average |
|
Maturity
|
|
2013
|
|
2012
|
||||
|
|
|
|
|
|
|
(In millions)
|
||||||
Senior notes — unaffiliated
|
1.52% - 7.72%
|
|
4.96%
|
|
2014 - 2045
|
|
$
|
15,938
|
|
|
$
|
15,669
|
|
Senior notes — affiliated
|
3.57% - 7.44%
|
|
5.43%
|
|
2014 - 2033
|
|
3,100
|
|
|
2,750
|
|
||
Other affiliated debt
|
0.95% - 1.01%
|
|
0.98%
|
|
2015 - 2016
|
|
500
|
|
|
500
|
|
||
Total
|
|
|
|
|
|
|
$
|
19,538
|
|
|
$
|
18,919
|
|
(1)
|
Range of interest rates and weighted average interest rates are for the year ended December 31,
2013
.
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In millions)
|
||||||||||
Long-term debt — unaffiliated
|
$
|
790
|
|
|
$
|
779
|
|
|
$
|
806
|
|
Long-term debt — affiliated
|
163
|
|
|
28
|
|
|
16
|
|
|||
Collateral financing arrangements
|
35
|
|
|
42
|
|
|
43
|
|
|||
Junior subordinated debt securities
|
134
|
|
|
134
|
|
|
134
|
|
|||
Stock purchase contracts
|
—
|
|
|
2
|
|
|
8
|
|
|||
Total
|
$
|
1,122
|
|
|
$
|
985
|
|
|
$
|
1,007
|
|
Segment
|
|
DAC
and
VOBA
|
|
Future Policy Benefits,
Other Policy-Related
Balances and
Policyholder Dividend
Obligation
|
|
Policyholder
Account
Balances
|
|
Policyholder
Dividends
Payable
|
|
Unearned
Premiums (1), (2)
|
|
Unearned
Revenue (1)
|
||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Retail
|
|
$
|
12,882
|
|
|
$
|
73,953
|
|
|
$
|
62,733
|
|
|
$
|
601
|
|
|
$
|
918
|
|
|
$
|
860
|
|
Group, Voluntary & Worksite Benefits
|
|
382
|
|
|
20,946
|
|
|
8,575
|
|
|
—
|
|
|
886
|
|
|
—
|
|
||||||
Corporate Benefit Funding
|
|
99
|
|
|
50,548
|
|
|
62,043
|
|
|
—
|
|
|
—
|
|
|
32
|
|
||||||
Latin America
|
|
2,201
|
|
|
8,985
|
|
|
7,177
|
|
|
—
|
|
|
499
|
|
|
678
|
|
||||||
Asia
|
|
9,077
|
|
|
35,863
|
|
|
57,203
|
|
|
65
|
|
|
1,895
|
|
|
1,035
|
|
||||||
EMEA
|
|
2,039
|
|
|
7,704
|
|
|
13,953
|
|
|
9
|
|
|
196
|
|
|
260
|
|
||||||
Corporate & Other
|
|
26
|
|
|
6,928
|
|
|
1,201
|
|
|
—
|
|
|
9
|
|
|
—
|
|
||||||
Total
|
|
$
|
26,706
|
|
|
$
|
204,927
|
|
|
$
|
212,885
|
|
|
$
|
675
|
|
|
$
|
4,403
|
|
|
$
|
2,865
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Retail
|
|
$
|
11,500
|
|
|
$
|
74,887
|
|
|
$
|
67,023
|
|
|
$
|
610
|
|
|
$
|
873
|
|
|
$
|
911
|
|
Group, Voluntary & Worksite Benefits
|
|
382
|
|
|
21,078
|
|
|
8,918
|
|
|
—
|
|
|
852
|
|
|
—
|
|
||||||
Corporate Benefit Funding
|
|
96
|
|
|
53,542
|
|
|
63,523
|
|
|
—
|
|
|
—
|
|
|
39
|
|
||||||
Latin America
|
|
1,231
|
|
|
8,856
|
|
|
7,199
|
|
|
—
|
|
|
428
|
|
|
627
|
|
||||||
Asia
|
|
9,554
|
|
|
39,061
|
|
|
64,003
|
|
|
65
|
|
|
1,554
|
|
|
831
|
|
||||||
EMEA
|
|
1,998
|
|
|
7,521
|
|
|
12,679
|
|
|
53
|
|
|
215
|
|
|
270
|
|
||||||
Corporate & Other
|
|
—
|
|
|
6,697
|
|
|
2,476
|
|
|
—
|
|
|
9
|
|
|
—
|
|
||||||
Total
|
|
$
|
24,761
|
|
|
$
|
211,642
|
|
|
$
|
225,821
|
|
|
$
|
728
|
|
|
$
|
3,931
|
|
|
$
|
2,678
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Retail
|
|
$
|
11,681
|
|
|
$
|
72,238
|
|
|
$
|
69,553
|
|
|
$
|
659
|
|
|
$
|
791
|
|
|
$
|
995
|
|
Group, Voluntary & Worksite Benefits
|
|
377
|
|
|
19,626
|
|
|
9,273
|
|
|
—
|
|
|
822
|
|
|
—
|
|
||||||
Corporate Benefit Funding
|
|
89
|
|
|
49,858
|
|
|
56,367
|
|
|
—
|
|
|
—
|
|
|
49
|
|
||||||
Latin America
|
|
1,050
|
|
|
7,731
|
|
|
6,159
|
|
|
4
|
|
|
284
|
|
|
514
|
|
||||||
Asia
|
|
9,554
|
|
|
38,528
|
|
|
59,739
|
|
|
53
|
|
|
1,267
|
|
|
655
|
|
||||||
EMEA
|
|
1,866
|
|
|
8,113
|
|
|
14,235
|
|
|
58
|
|
|
200
|
|
|
103
|
|
||||||
Corporate & Other
|
|
2
|
|
|
6,699
|
|
|
2,374
|
|
|
—
|
|
|
10
|
|
|
—
|
|
||||||
Total
|
|
$
|
24,619
|
|
|
$
|
202,793
|
|
|
$
|
217,700
|
|
|
$
|
774
|
|
|
$
|
3,374
|
|
|
$
|
2,316
|
|
(1)
|
Amounts are included within the future policy benefits, other policy-related balances and policyholder dividend obligation column.
|
(2)
|
Includes premiums received in advance.
|
Segment
|
|
Premium
Revenue
and
Policy
Charges
|
|
Net
Investment
Income
|
|
Policyholder
Benefits and
Claims and
Interest Credited
to Policyholder
Account Balances
|
|
Amortization of
DAC and
VOBA
Charged to
Other
Expenses
|
|
Other
Operating
Expenses (1)
|
||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail
|
|
$
|
11,783
|
|
|
$
|
7,427
|
|
|
$
|
11,460
|
|
|
$
|
850
|
|
|
$
|
5,006
|
|
Group, Voluntary & Worksite Benefits
|
|
15,938
|
|
|
1,684
|
|
|
14,381
|
|
|
140
|
|
|
2,241
|
|
|||||
Corporate Benefit Funding
|
|
3,106
|
|
|
5,805
|
|
|
6,604
|
|
|
23
|
|
|
505
|
|
|||||
Latin America
|
|
3,820
|
|
|
1,326
|
|
|
2,793
|
|
|
310
|
|
|
1,182
|
|
|||||
Asia
|
|
9,525
|
|
|
4,335
|
|
|
9,200
|
|
|
1,527
|
|
|
1,825
|
|
|||||
EMEA
|
|
2,698
|
|
|
1,164
|
|
|
1,743
|
|
|
699
|
|
|
1,035
|
|
|||||
Corporate & Other
|
|
255
|
|
|
491
|
|
|
105
|
|
|
1
|
|
|
2,517
|
|
|||||
Total
|
|
$
|
47,125
|
|
|
$
|
22,232
|
|
|
$
|
46,286
|
|
|
$
|
3,550
|
|
|
$
|
14,311
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail
|
|
$
|
11,411
|
|
|
$
|
7,275
|
|
|
$
|
11,247
|
|
|
$
|
1,603
|
|
|
$
|
4,941
|
|
Group, Voluntary & Worksite Benefits
|
|
15,456
|
|
|
1,628
|
|
|
13,858
|
|
|
133
|
|
|
2,215
|
|
|||||
Corporate Benefit Funding
|
|
3,462
|
|
|
5,765
|
|
|
7,105
|
|
|
22
|
|
|
457
|
|
|||||
Latin America
|
|
3,438
|
|
|
1,354
|
|
|
3,014
|
|
|
228
|
|
|
1,047
|
|
|||||
Asia
|
|
9,835
|
|
|
3,421
|
|
|
8,246
|
|
|
1,567
|
|
|
1,933
|
|
|||||
EMEA
|
|
2,718
|
|
|
1,348
|
|
|
2,088
|
|
|
644
|
|
|
1,060
|
|
|||||
Corporate & Other
|
|
211
|
|
|
1,193
|
|
|
158
|
|
|
2
|
|
|
3,272
|
|
|||||
Total
|
|
$
|
46,531
|
|
|
$
|
21,984
|
|
|
$
|
45,716
|
|
|
$
|
4,199
|
|
|
$
|
14,925
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail
|
|
$
|
11,077
|
|
|
$
|
7,156
|
|
|
$
|
10,447
|
|
|
$
|
2,365
|
|
|
$
|
4,902
|
|
Group, Voluntary & Worksite Benefits
|
|
14,579
|
|
|
1,631
|
|
|
13,193
|
|
|
186
|
|
|
2,022
|
|
|||||
Corporate Benefit Funding
|
|
3,080
|
|
|
5,639
|
|
|
6,664
|
|
|
17
|
|
|
497
|
|
|||||
Latin America
|
|
3,371
|
|
|
1,105
|
|
|
2,899
|
|
|
211
|
|
|
1,056
|
|
|||||
Asia
|
|
9,059
|
|
|
1,954
|
|
|
6,360
|
|
|
1,505
|
|
|
1,862
|
|
|||||
EMEA
|
|
2,792
|
|
|
535
|
|
|
1,385
|
|
|
613
|
|
|
1,119
|
|
|||||
Corporate & Other
|
|
209
|
|
|
1,565
|
|
|
126
|
|
|
1
|
|
|
3,627
|
|
|||||
Total
|
|
$
|
44,167
|
|
|
$
|
19,585
|
|
|
$
|
41,074
|
|
|
$
|
4,898
|
|
|
$
|
15,085
|
|
(1)
|
Includes other expenses and policyholder dividends, excluding amortization of deferred policy acquisition costs (“DAC”) and value of business acquired (“VOBA”) charged to other expenses.
|
|
|
Gross Amount
|
|
Ceded
|
|
Assumed
|
|
Net Amount
|
|
% Amount Assumed to Net
|
|||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in-force
|
|
$
|
4,517,797
|
|
|
$
|
763,754
|
|
|
$
|
607,591
|
|
|
$
|
4,361,634
|
|
|
13.9
|
%
|
Insurance premium
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance
|
|
$
|
22,206
|
|
|
$
|
1,862
|
|
|
$
|
1,269
|
|
|
$
|
21,613
|
|
|
5.9
|
%
|
Accident and health insurance
|
|
12,957
|
|
|
333
|
|
|
196
|
|
|
12,820
|
|
|
1.5
|
%
|
||||
Property and casualty insurance
|
|
3,313
|
|
|
79
|
|
|
7
|
|
|
3,241
|
|
|
0.2
|
%
|
||||
Total insurance premium
|
|
$
|
38,476
|
|
|
$
|
2,274
|
|
|
$
|
1,472
|
|
|
$
|
37,674
|
|
|
3.9
|
%
|
2012
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in-force
|
|
$
|
4,432,178
|
|
|
$
|
761,993
|
|
|
$
|
594,062
|
|
|
$
|
4,264,247
|
|
|
13.9
|
%
|
Insurance premium
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance
|
|
$
|
22,006
|
|
|
$
|
1,550
|
|
|
$
|
1,268
|
|
|
$
|
21,724
|
|
|
5.8
|
%
|
Accident and health insurance
|
|
13,567
|
|
|
605
|
|
|
211
|
|
|
13,173
|
|
|
1.6
|
%
|
||||
Property and casualty insurance
|
|
3,146
|
|
|
77
|
|
|
9
|
|
|
3,078
|
|
|
0.3
|
%
|
||||
Total insurance premium
|
|
$
|
38,719
|
|
|
$
|
2,232
|
|
|
$
|
1,488
|
|
|
$
|
37,975
|
|
|
3.9
|
%
|
2011
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in-force
|
|
$
|
4,263,421
|
|
|
$
|
754,781
|
|
|
$
|
604,555
|
|
|
$
|
4,113,195
|
|
|
14.7
|
%
|
Insurance premium
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance
|
|
$
|
21,930
|
|
|
$
|
1,670
|
|
|
$
|
1,198
|
|
|
$
|
21,458
|
|
|
5.6
|
%
|
Accident and health insurance
|
|
12,186
|
|
|
568
|
|
|
275
|
|
|
11,893
|
|
|
2.3
|
%
|
||||
Property and casualty insurance
|
|
3,069
|
|
|
70
|
|
|
11
|
|
|
3,010
|
|
|
0.4
|
%
|
||||
Total insurance premium
|
|
$
|
37,185
|
|
|
$
|
2,308
|
|
|
$
|
1,484
|
|
|
$
|
36,361
|
|
|
4.1
|
%
|
METLIFE, INC.
|
||
|
|
|
By
|
|
/s/ Steven A. Kandarian
|
|
|
Name: Steven A. Kandarian
|
|
|
Title: Chairman of the Board, President
and Chief Executive Officer |
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
|
|
|
|
|
/s/ Cheryl W. Grisé
|
|
Director
|
|
February 26, 2014
|
Cheryl W. Grisé
|
|
|
|
|
|
|
|
|
|
/s/ Carlos M. Gutierrez
|
|
Director
|
|
February 26, 2014
|
Carlos M. Gutierrez
|
|
|
|
|
|
|
|
|
|
/s/ R. Glenn Hubbard
|
|
Director
|
|
February 26, 2014
|
R. Glenn Hubbard
|
|
|
|
|
|
|
|
|
|
/s/ John M. Keane
|
|
Director
|
|
February 26, 2014
|
John M. Keane
|
|
|
|
|
|
|
|
|
|
/s/ Alfred F. Kelly Jr.
|
|
Director
|
|
February 26, 2014
|
Alfred F. Kelly Jr.
|
|
|
|
|
|
|
|
|
|
/s/ William E. Kennard
|
|
Director
|
|
February 26, 2014
|
William E. Kennard
|
|
|
|
|
|
|
|
|
|
/s/ James M. Kilts
|
|
Director
|
|
February 26, 2014
|
James M. Kilts
|
|
|
|
|
|
|
|
|
|
/s/ Catherine R. Kinney
|
|
Director
|
|
February 26, 2014
|
Catherine R. Kinney
|
|
|
|
|
|
|
|
|
|
/s/ Denise M. Morrison
|
|
Director
|
|
February 26, 2014
|
Denise M. Morrison
|
|
|
|
|
|
|
|
|
|
/s/ Hugh B. Price
|
|
Director
|
|
February 26, 2014
|
Hugh B. Price
|
|
|
|
|
|
|
|
|
|
/s/ Kenton J. Sicchitano
|
|
Director
|
|
February 26, 2014
|
Kenton J. Sicchitano
|
|
|
|
|
|
|
|
|
|
/s/ Lulu C. Wang
|
|
Director
|
|
February 26, 2014
|
Lulu C. Wang
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Steven A. Kandarian
|
|
Chairman of the Board, President and
|
|
February 26, 2014
|
Steven A. Kandarian
|
|
Chief Executive Officer
(Principal Executive Officer) |
|
|
|
|
|
|
|
/s/ John C. R. Hele
|
|
Executive Vice President and
|
|
February 26, 2014
|
John C. R. Hele
|
|
Chief Financial Officer
(Principal Financial Officer)
|
|
|
|
|
|
|
|
/s/ Peter M. Carlson
|
|
Executive Vice President and
|
|
February 26, 2014
|
Peter M. Carlson
|
|
Chief Accounting Officer
(Principal Accounting Officer)
|
|
|
Exhibit No.
|
|
Description
|
|
|
|
2.1
|
|
Plan of Reorganization. (Incorporated by reference to Exhibit 2.1 to MetLife, Inc.'s Registration Statement on Form S-1 (No. 333-91517) (the "S-1 Registration Statement")).
|
|
|
|
2.2
|
|
Amendment to Plan of Reorganization, dated as of March 9, 2000. (Incorporated by reference to Exhibit 2.2 to the S-1 Registration Statement).
|
|
|
|
2.3
|
|
Stock Purchase Agreement, dated as of March 7, 2010, among MetLife, Inc., AM Holdings LLC (formerly known as ALICO Holdings LLC) and American International Group, Inc. ("AIG") (the "Stock Purchase Agreement"). (Incorporated by reference to Exhibit 2.1 to MetLife, Inc.'s Current Report on Form 8-K dated March 11, 2010).
|
|
|
|
2.4
|
|
Amendment, dated October 28, 2010, among MetLife, Inc., AM Holdings LLC (formerly known as ALICO Holdings LLC) and AIG to the Stock Purchase Agreement. (Incorporated by reference to Exhibit 2.1 to MetLife, Inc.'s Current Report on Form 8-K dated November 2, 2010 (the "November 2, 2010 Form 8-K")).
|
|
|
|
2.5
|
|
Amendment, dated October 29, 2010, among MetLife, Inc., AM Holdings LLC (formerly known as ALICO Holdings LLC) and AIG to the Stock Purchase Agreement. (Incorporated by reference to Exhibit 2.2 to the November 2, 2010 Form 8-K).
|
|
|
|
3.1
|
|
Amended and Restated Certificate of Incorporation of MetLife, Inc. (Incorporated by reference to Exhibit 3.1 to MetLife, Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2011 (the "2011 Annual Report")).
|
|
|
|
3.2
|
|
Certificate of Designation, Preferences and Rights of Series A Junior Participating Preferred Stock of MetLife, Inc., filed with the Secretary of State of Delaware on April 7, 2000. (Incorporated by reference to Exhibit 3.2 to the 2011 Annual Report).
|
|
|
|
3.3
|
|
Certificate of Designations of Floating Rate Non-Cumulative Preferred Stock, Series A, of MetLife, Inc., filed with the Secretary of State of Delaware on June 10, 2005. (Incorporated by reference to Exhibit 3.3 to the 2011 Annual Report).
|
|
|
|
3.4
|
|
Certificate of Designations of 6.50% Non-Cumulative Preferred Stock, Series B, of MetLife, Inc., filed with the Secretary of State of Delaware on June 14, 2005. (Incorporated by reference to Exhibit 3.4 to the 2011 Annual Report).
|
|
|
|
3.5
|
|
Certificate of Amendment of Amended and Restated Certificate of Incorporation of MetLife, Inc., dated April 29, 2011. (Incorporated by reference to Exhibit 3.6 to the 2011 Annual Report).
|
|
|
|
3.6
|
|
Certificate of Retirement of Series B Contingent Convertible Junior Participating Non-Cumulative Perpetual Preferred Stock of MetLife, Inc., filed with the Secretary of State of Delaware on November 5, 2013. (Incorporated by reference to Exhibit 3.6 to MetLife, Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013).
|
|
|
|
3.7
|
|
Amended and Restated By-Laws of MetLife, Inc., effective February 27, 2013. (Incorporated by reference to Exhibit 3.1 to MetLife, Inc.'s Current Report on Form 8-K dated March 4, 2013).
|
4.1
|
|
Form of Certificate for Common Stock, par value $0.01 per share. (Incorporated by reference to Exhibit 4.1 to the S-1 Registration Statement).
|
|
|
|
4.2
|
|
Certificate of Designations of Floating Rate Non-Cumulative Preferred Stock, Series A, of MetLife, Inc., filed with the Secretary of State of Delaware on June 10, 2005. (See Exhibit 3.3 above).
|
|
|
|
4.3
|
|
Form of Stock Certificate, Floating Rate Non-Cumulative Preferred Stock, Series A, of MetLife, Inc. (Incorporated by reference to Exhibit 99.6 to MetLife, Inc.'s Registration Statement on Form 8-A filed on June 10, 2005).
|
|
|
|
4.4
|
|
Certificate of Designations of 6.50% Non-Cumulative Preferred Stock, Series B, of MetLife, Inc., filed with the Secretary of State of Delaware on June 14, 2005. (See Exhibit 3.4 above).
|
|
|
|
4.5
|
|
Form of Stock Certificate, 6.50% Non-Cumulative Preferred Stock, Series B, of MetLife, Inc. (Incorporated by reference to Exhibit 99.6 to MetLife, Inc.'s Registration Statement on Form 8-A filed on June 15, 2005).
|
|
|
|
4.6
|
|
Stock Purchase Contract Agreement, dated as of November 1, 2010, among MetLife, Inc. and Deutsche Bank Trust Company Americas, as Stock Purchase Contract Agent. (Incorporated by reference to Exhibit 4.2 to the November 2, 2010 Form 8-K).
|
Exhibit No.
|
|
Description
|
|
|
|
4.7
|
|
Supplemental Agreement No. 1, dated as of June 26, 2013, between MetLife, Inc. and Deutsche Bank Trust Company Americas, as stock purchase contract agent, to the Stock Purchase Contract Agreement, dated as of November 1, 2010, between MetLife, Inc. and Deutsche Bank Trust Company Americas, as stock purchase contract agent. (Incorporated by reference to Exhibit 4.1 to MetLife, Inc.'s Current Report on Form 8-K dated June 26, 2013).
|
|
|
|
4.8
|
|
Pledge Agreement, dated as of November 1, 2010, among MetLife, Inc. and Deutsche Bank Trust Company Americas, as Collateral Agent, Custodial Agent, Securities Intermediary and Stock Purchase Contract Agent. (Incorporated by reference to Exhibit 4.4 to the November 2, 2010 Form 8-K).
|
|
|
|
|
|
Certain instruments defining the rights of holders of long-term debt of MetLife, Inc. and its consolidated subsidiaries are omitted pursuant to Item 601(b)(4)(iii) of Regulation S-K. MetLife, Inc. hereby agrees to furnish to the Securities and Exchange Commission, upon request, copies of such instruments.
|
|
|
|
10.1
|
|
MetLife Executive Severance Plan (as amended and restated, effective June 14, 2010). (Incorporated by reference to Exhibit 10.1 to MetLife, Inc.'s Current Report on Form 8-K dated December 21, 2009 (the "December 21, 2009 Form 8-K")).*
|
|
|
|
10.2
|
|
Separation Agreement, Waiver and General Release, dated August 17, 2009, between Lisa M. Weber and MetLife Group, Inc. (Incorporated by reference to Exhibit 10.1 to MetLife, Inc.'s Current Report on Form 8-K dated September 3, 2009).*
|
|
|
|
10.3
|
|
Agreement, effective as of May 9, 2011, by and between Kathleen A. Henkel and MetLife, Inc. (Incorporated by reference to Exhibit 10.1 to MetLife, Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2011).*
|
|
|
|
10.4
|
|
Offer Letter and Appendix, dated July 14, 2011, between MetLife, Inc. and Martin J. Lippert. (Incorporated by reference to Exhibit 10.2 to MetLife, Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 (the "Third Quarter 2011 10-Q")).*
|
|
|
|
10.5
|
|
Offer Letter, dated July 27, 2011, between MetLife, Inc. and Frans Hijkoop. (Incorporated by reference to Exhibit 10.3 to the Third Quarter 2011 10-Q).*
|
|
|
|
10.6
|
|
Agreement between MetLife, Inc. and William J. Toppeta, which became final on December 20, 2011. (Incorporated by reference to Exhibit 10.1 to MetLife, Inc.'s Current Report on Form 8-K dated December 23, 2011).*
|
|
|
|
10.7
|
|
Agreement between MetLife, Inc. and William J. Mullaney, which became final on December 24, 2011. (Incorporated by reference to Exhibit 10.1 to MetLife, Inc.'s Current Report on Form 8-K dated December 29, 2011).*
|
|
|
|
10.8
|
|
Letter, dated March 24, 2011, from MetLife, Inc. to Michel Khalaf. (Incorporated by reference to Exhibit 10.10 to the 2011 Annual Report).*
|
|
|
|
10.9
|
|
Offer Letter, dated March 25, 2009, between American Life Insurance Company and Michel Khalaf. (Incorporated by reference to Exhibit 10.11 to the 2011 Annual Report).*
|
|
|
|
10.10
|
|
Adjustment of certain compensation items for Michel Khalaf, effective July 1, 2012. (Incorporated by reference to Exhibit 10.2 to MetLife, Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012).*
|
|
|
|
10.11
|
|
Employment Agreement between Christopher G. Townsend and MetLife Asia Pacific Limited, dated May 11, 2012. (Incorporated by reference to Exhibit 10.1 to MetLife, Inc.'s Current Report on Form 8-K dated May 16, 2012 (the "May 16, 2012 Form 8-K")).*
|
|
|
|
10.12
|
|
Offer letter, dated July 23, 2012, between MetLife, Inc. and John C.R. Hele. (Incorporated by reference to Exhibit 10.1 to MetLife, Inc.'s Current Report on Form 8-K dated July 27, 2012).*
|
|
|
|
10.13
|
|
Letter from MetLife, Inc. to Nicholas D. Latrenta, dated December 11, 2012. (Incorporated by reference to Exhibit 10.1 to MetLife, Inc.'s Current Report on Form 8-K dated December 14, 2012).*
|
|
|
|
10.14
|
|
Offer letter, dated December 10, 2012, between MetLife, Inc. and Ricardo Anzaldua. (Incorporated by reference to Exhibit 10.14 to the 2012 Annual Report).*
|
|
|
|
10.15
|
|
Letter from MetLife, Inc. to Michel Khalaf, dated February 22, 2013. (Incorporated by reference to Exhibit 10.15 to the 2012 Annual Report).*
|
|
|
|
10.16
|
|
MetLife, Inc. 2000 Stock Incentive Plan, as amended and restated March 28, 2000. (Incorporated by reference to Exhibit 10.7 to the S-1 Registration Statement).*
|
|
|
|
10.17
|
|
MetLife, Inc. 2000 Stock Incentive Plan, as amended, effective February 8, 2002. (Incorporated by reference to Exhibit 10.17 to the 2012 Annual Report).*
|
|
|
|
10.18
|
|
Management Stock Option Agreement under the MetLife, Inc. 2000 Stock Incentive Plan.*
|
|
|
|
10.19
|
|
MetLife, Inc. 2000 Directors Stock Plan, as amended and restated March 28, 2000. (Incorporated by reference to Exhibit 10.8 to the S-1 Registration Statement).*
|
|
|
|
10.20
|
|
MetLife, Inc. 2000 Directors Stock Plan, as amended, effective February 8, 2002. (Incorporated by reference to Exhibit 10.20 to the 2012 Annual Report).*
|
|
|
|
10.21
|
|
Form of Director Stock Option Agreement under the MetLife, Inc. 2000 Directors Stock Plan. *
|
|
|
|
10.22
|
|
MetLife, Inc. 2005 Stock and Incentive Compensation Plan, effective April 15, 2005 (the "2005 SIC Plan"). (Incorporated by reference to Exhibit 10.12 to MetLife, Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2009 (the "2009 Annual Report")).*
|
|
|
|
10.23
|
|
MetLife, Inc. 2005 Non-Management Director Stock Compensation Plan, effective April 15, 2005. (Incorporated by reference to Exhibit 10.13 to the 2009 Annual Report).*
|
|
|
|
10.24
|
|
Form of Management Stock Option Agreement under the 2005 SIC Plan (effective as of April 25, 2007). (Incorporated by reference to Exhibit 10.24 to the 2012 Annual Report). *
|
|
|
|
10.25
|
|
Amendment to Stock Option Agreements under the 2005 SIC Plan (effective as of April 25, 2007). (Incorporated by reference to Exhibit 10.25 to the 2012 Annual Report).*
|
Exhibit No.
|
|
Description
|
|
|
|
10.26
|
|
Form of Management Stock Option Agreement under the 2005 SIC Plan (effective December 15, 2009). (Incorporated by reference to Exhibit 10.3 to the December 21, 2009 Form 8-K).*
|
|
|
|
10.27
|
|
Form of Management Stock Option Agreement under the 2005 SIC Plan. (Incorporated by reference to Exhibit 10.14 to the 2009 Annual Report).*
|
|
|
|
10.28
|
|
Form of Stock Option Agreement under the 2005 SIC Plan (effective February 11, 2013). (Incorporated by reference to Exhibit 10.9 to MetLife, Inc.'s Current Report on Form 8-K dated February 15, 2013 (the "February 15, 2013 Form 8-K")).*
|
|
|
|
10.29
|
|
Form of Stock Option Agreement (Three-Year "Cliff" Exercisability) under the 2005 SIC Plan (effective February 11, 2013). (Incorporated by reference to Exhibit 10.10 to the February 15, 2013 Form 8-K).*
|
|
|
|
10.30
|
|
Form of Management Restricted Stock Unit Agreement under the 2005 SIC Plan (effective December 11, 2007). (Incorporated by reference to Exhibit 10.30 to the 2012 Annual Report).*
|
|
|
|
10.31
|
|
Form of Management Restricted Stock Unit Agreement under the 2005 SIC Plan (effective December 15, 2009). (Incorporated by reference to Exhibit 10.4 to the December 21, 2009 Form 8-K).*
|
|
|
|
10.32
|
|
Form of Restricted Stock Unit Agreement (effective February 11, 2013). (Incorporated by reference to Exhibit 10.4 to the February 15, 2013 Form 8-K).*
|
|
|
|
10.33
|
|
Form of Restricted Stock Unit Agreement (Three-Year "Cliff" Period of Restriction; No Code 162(m) Goals) (effective February 11, 2013). (Incorporated by reference to Exhibit 10.5 to the February 15, 2013 Form 8-K).*
|
|
|
|
10.34
|
|
Form of Management Performance Share Agreement under the 2005 SIC Plan (effective December 31, 2005). (Incorporated by reference to Exhibit 10.31 to MetLife, Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2010 (the "2010 Annual Report")).*
|
|
|
|
10.35
|
|
Clarification of Management Performance Share Agreement under the 2005 SIC Plan. (Incorporated by reference to Exhibit 10.29 to the 2010 Annual Report).*
|
|
|
|
10.36
|
|
Amendment to Management Performance Share Agreement under the 2005 SIC Plan (effective December 31, 2005). (Incorporated by reference to Exhibit 10.30 to the 2010 Annual Report).*
|
|
|
|
10.37
|
|
Form of Management Performance Share Agreement under the 2005 SIC Plan (effective February 27, 2007). (Incorporated by reference to Exhibit 10.35 to the 2011 Annual Report).*
|
|
|
|
10.38
|
|
Form of Management Performance Share Agreement under the 2005 SIC Plan (effective as of April 25, 2007). (Incorporated by reference to Exhibit 10.38 to the 2012 Annual Report).*
|
|
|
|
10.39
|
|
Amendment to Management Performance Share Agreements under the 2005 SIC Plan (effective as of April 25, 2007). (Incorporated by reference to Exhibit 10.39 to the 2012 Annual Report).*
|
|
|
|
10.40
|
|
Form of Management Performance Share Agreement under the 2005 SIC Plan (effective December 11, 2007). (Incorporated by reference to Exhibit 10.40 to the 2012 Annual Report).*
|
|
|
|
10.41
|
|
Amendment to Management Performance Share Agreements under the 2005 SIC Plan (effective as of December 31, 2007). (Incorporated by reference to Exhibit 10.41 to the 2012 Annual Report).*
|
|
|
|
10.42
|
|
Form of Management Performance Share Agreement under the 2005 SIC Plan (effective January 27, 2009).*
|
|
|
|
10.43
|
|
Form of Management Performance Share Agreement under the 2005 SIC Plan (effective February 24, 2009). (Incorporated by reference to Exhibit 10.1 to MetLife, Inc.'s Current Report on Form 8-K dated March 13, 2009).*
|
|
|
|
10.44
|
|
Form of Management Performance Share Agreement under the 2005 SIC Plan (effective December 15, 2009). (Incorporated by reference to Exhibit 10.2 to the December 21, 2009 Form 8-K).*
|
|
|
|
10.45
|
|
Form of Management Performance Share Agreement under the 2005 SIC Plan (effective February 21, 2010). (Incorporated by reference to Exhibit 10.1 to MetLife, Inc.'s Current Report on Form 8-K dated February 22, 2010).*
|
|
|
|
10.46
|
|
Form of Management Performance Share Agreement under the 2005 SIC Plan (effective December 14, 2010). (Incorporated by reference to Exhibit 10.1 to MetLife, Inc.'s Current Report on Form 8-K dated December 17, 2010).*
|
|
|
|
10.47
|
|
Form of Performance Share Agreement (effective February 11, 2013). (Incorporated by reference to Exhibit 10.1 to the February 15, 2013 Form 8-K).*
|
|
|
|
10.48
|
|
Amended and Restated 2010-2011 Long Term Incentive Plan for Employees of ALICO, including 2010-2011 Alico LTI Performance Measures and Goals (effective November 1, 2010). (Incorporated by reference to Exhibit 10.45 to the 2011 Annual Report).*
|
|
|
|
10.49
|
|
MetLife International Performance Unit Incentive Plan, dated July 21, 2011 (as amended and restated effective February 23, 2011). (Incorporated by reference to Exhibit 10.46 to the 2011 Annual Report).*
|
|
|
|
10.50
|
|
Form of Performance Unit Agreement under the MetLife International Performance Unit Incentive Plan (effective February 23, 2011). (Incorporated by reference to Exhibit 10.47 to the 2011 Annual Report).*
|
Exhibit No.
|
|
Description
|
|
|
|
10.51
|
|
MetLife International Performance Unit Incentive Plan (as amended and restated effective February 11, 2013). (Incorporated by reference to Exhibit 10.2 to the February 15, 2013 Form 8-K).*
|
|
|
|
10.52
|
|
Form of Performance Unit Agreement (effective February 11, 2013). (Incorporated by reference to Exhibit 10.3 to the February 15, 2013 Form 8-K).*
|
|
|
|
10.53
|
|
MetLife International Unit Option Incentive Plan, dated July 21, 2011 (as amended and restated effective February 23, 2011). (Incorporated by reference to Exhibit 10.48 to the 2011 Annual Report).*
|
|
|
|
10.54
|
|
Form of Unit Option Agreement under the MetLife International Unit Option Incentive Plan (effective February 23, 2011). (Incorporated by reference to Exhibit 10.49 to the 2011 Annual Report).*
|
|
|
|
10.55
|
|
MetLife International Unit Option Incentive Plan (as amended and restated December 3, 2012). (Incorporated by reference to Exhibit 10.11 to the February 15, 2013 Form 8-K).*
|
|
|
|
10.56
|
|
Form of Unit Option Agreement (effective February 11, 2013). (Incorporated by reference to Exhibit 10.12 to the February 15, 2013 Form 8-K).*
|
|
|
|
10.57
|
|
Form of Unit Option Agreement (Three-Year "Cliff" Exercisability) (effective February 11, 2013). (Incorporated by reference to Exhibit 10.13 to the February 15, 2013 Form 8-K).*
|
|
|
|
10.58
|
|
MetLife International Restricted Unit Incentive Plan (as amended and restated effective February 11, 2013). (Incorporated by reference to Exhibit 10.6 to the February 15, 2013 Form 8-K).*
|
|
|
|
10.59
|
|
Form of Restricted Unit Agreement (effective February 11, 2013). (Incorporated by reference to Exhibit 10.7 to the February 15, 2013 Form 8-K).*
|
|
|
|
10.60
|
|
Form of Restricted Unit Agreement (Three-Year "Cliff" Period of Restriction; No Code 162(m) Goals) (effective February 11, 2013). (Incorporated by reference to Exhibit 10.8 to the February 15, 2013 Form 8-K).*
|
|
|
|
10.61
|
|
MetLife Policyholder Trust Agreement. (Incorporated by reference to Exhibit 10.12 to the S-1 Registration Statement).
|
|
|
|
10.62
|
|
Amendment to MetLife Policyholder Trust Agreement. (Incorporated by reference to Exhibit 10.62 to the 2012 Annual Report).
|
|
|
|
10.63
|
|
Five-Year Credit Agreement, dated as of August 12, 2011, among MetLife, Inc. and MetLife Funding, Inc., as borrowers, and the other parties signatory thereto, amending and restating the 364-Day Credit Agreement, dated as of October 15, 2010, among MetLife, Inc. and MetLife Funding, Inc., as borrowers, and the other parties signatory thereto. (Incorporated by reference to Exhibit 10.1 to MetLife, Inc.'s Current Report on Form 8-K dated August 15, 2011).
|
|
|
|
10.64
|
|
First Amendment, dated as of September 13, 2012, among MetLife, Inc. and MetLife Funding, Inc., as borrowers, and the other parties signatory thereto, to the Five-Year Credit Agreement, dated as of September 13, 2012, among MetLife, Inc. and MetLife Funding, Inc., as borrowers, and the other parties signatory thereto (the "Five-Year Credit Agreement"). (Incorporated by reference to Exhibit 10.2 to MetLife, Inc.'s Current Report on Form 8-K dated September 19, 2012 (the "September 19, 2012 Form 8-K")).
|
|
|
|
10.65
|
|
Five-Year Credit Agreement, amending and restating the Three-Year Credit Agreement, dated as of October 15, 2010, among MetLife, Inc. and MetLife Funding, Inc., as borrowers, and the other parties signatory thereto. (Incorporated by reference to Exhibit 10.1 to the September 19, 2012 Form 8-K).
|
|
|
|
10.66
|
|
MetLife Annual Variable Incentive Plan ("AVIP"). (Incorporated by reference to Exhibit 10.41 to the 2009 Annual Report).*
|
|
|
|
10.67
|
|
Amendment Number One to the AVIP. (Incorporated by reference to Exhibit 10.48 to the 2010 Annual Report).*
|
|
|
|
10.68
|
|
Resolutions of the MetLife, Inc. Board of Directors (adopted December 14, 2010) regarding the selection of performance measures for 2011 awards under the AVIP. (Incorporated by reference to Exhibit 10.52 to the 2010 Annual Report).*
|
|
|
|
10.69
|
|
Resolutions of the MetLife, Inc. Board of Directors (adopted December 13, 2011) regarding the selection of performance measures for 2012 awards under the AVIP. (Incorporated by reference to Exhibit 10.58 to the 2011 Annual Report).*
|
|
|
|
10.70
|
|
Resolutions of the MetLife, Inc. Board of Directors (adopted February 11, 2013) regarding the selection of performance measures for 2013 awards under the AVIP. (Incorporated by reference to Exhibit 10.70 to the 2012 Annual Report).*
|
|
|
|
10.71
|
|
Resolutions of the MetLife, Inc. Board of Directors (adopted December 10, 2013) regarding the selection of performance measures for 2014 awards under the AVIP.*
|
|
|
|
10.72
|
|
Resolutions of the MetLife, Inc., Board of Directors (adopted September 13, 2011) regarding non-management director compensation. (Incorporated by reference to Exhibit 10.4 to the Third Quarter 2011 10-Q).*
|
|
|
|
10.73
|
|
Metropolitan Life Auxiliary Savings and Investment Plan (as amended and restated, effective January 1, 2008). (Incorporated by reference to Exhibit 10.72 to the 2012 Annual Report).*
|
|
|
|
10.74
|
|
Amendment 1 to the Metropolitan Life Auxiliary Savings and Investment Plan (as amended and restated, effective January 1, 2008). (Incorporated by reference to Exhibit 10.46 to the 2009 Annual Report).*
|
|
|
|
10.75
|
|
Amendment Number 2 to the Metropolitan Life Auxiliary Savings and Investment Plan (Amended and Restated Effective January 1, 2008). (Incorporated by reference to Exhibit 10.55 to the 2010 Annual Report).*
|
|
|
|
Exhibit No.
|
|
Description
|
|
|
|
10.76
|
|
Amendment Number 3 to the Metropolitan Life Auxiliary Savings and Investment Plan (Amended and Restated Effective January 1, 2008). (Incorporated by reference to Exhibit 10.75 to the 2012 Annual Report).*
|
|
|
|
10.77
|
|
Amendment Number 4 to the Metropolitan Life Auxiliary Savings and Investment Plan (Amended and Restated Effective January 1, 2008).*
|
|
|
|
10.78
|
|
MetLife Deferred Compensation Plan for Officers, as amended and restated, effective November 1, 2003. *
|
|
|
|
10.79
|
|
Amendment Number One to the MetLife Deferred Compensation Plan for Officers (as amended and restated as of November 1, 2003), dated May 4, 2005. (Incorporated by reference to Exhibit 10.57 to the 2010 Annual Report).*
|
|
|
|
10.80
|
|
Amendment Number Two to the MetLife Deferred Compensation Plan for Officers (as amended and restated as of November 1, 2003, effective December 14, 2005). (Incorporated by reference to Exhibit 10.58 to the 2010 Annual Report).*
|
|
|
|
10.81
|
|
Amendment Number Three to the MetLife Deferred Compensation Plan for Officers (as amended and restated as of November 1, 2003, effective February 26, 2007). (Incorporated by reference to Exhibit 10.66 to the 2011 Annual Report).*
|
|
|
|
10.82
|
|
MetLife Leadership Deferred Compensation Plan, dated November 2, 2006 (as amended and restated, effective with respect to salary and cash incentive compensation, January 1, 2005, and with respect to stock compensation, April 15, 2005). (Incorporated by reference to Exhibit 10.67 to the 2011 Annual Report).*
|
|
|
|
10.83
|
|
Amendment Number One to the MetLife Leadership Deferred Compensation Plan, dated December 13, 2007 (effective as of December 31, 2007). (Incorporated by reference to Exhibit 10.81 to the 2012 Annual Report).*
|
|
|
|
10.84
|
|
Amendment Number Two to the MetLife Leadership Deferred Compensation Plan, dated December 11, 2008 (effective December 31, 2008). *
|
|
|
|
10.85
|
|
Amendment Number Three to the MetLife Leadership Deferred Compensation Plan, dated December 11, 2009 (effective January 1, 2010). (Incorporated by reference to Exhibit 10.54 to the 2009 Annual Report).*
|
|
|
|
10.86
|
|
Amendment Number Four to the MetLife Leadership Deferred Compensation Plan, dated December 11, 2009 (effective December 31, 2009). (Incorporated by reference to Exhibit 10.55 to the 2009 Annual Report).*
|
|
|
|
10.87
|
|
Amendment Number Five to the MetLife Leadership Deferred Compensation Plan, dated December 11, 2009 (effective January 1, 2011). (Incorporated by reference to Exhibit 10.65 to the 2010 Annual Report).*
|
|
|
|
10.88
|
|
MetLife Deferred Compensation Plan for Outside Directors (effective December 9, 2003). *
|
|
|
|
10.89
|
|
Amendment Number One to the MetLife Deferred Compensation Plan for Outside Directors (as amended and restated as of December 9, 2003, effective February 26, 2007). (Incorporated by reference to Exhibit 10.74 to the 2011 Annual Report).*
|
|
|
|
10.90
|
|
MetLife Non-Management Director Deferred Compensation Plan, dated November 2, 2006 (as amended and restated, effective January 1, 2005). (Incorporated by reference to Exhibit 10.75 to the 2011 Annual Report).*
|
|
|
|
10.91
|
|
Amendment Number One to the MetLife Non-Management Director Deferred Compensation Plan (as amended and restated as of December 9, 2006, effective February 26, 2007). (Incorporated by reference to Exhibit 10.76 to the 2011 Annual Report).*
|
|
|
|
10.92
|
|
MetLife Non-Management Director Deferred Compensation Plan, dated December 5, 2007 (as amended and restated, effective January 1, 2005). (Incorporated by reference to Exhibit 10.90 to the 2012 Annual Report).*
|
|
|
|
10.93
|
|
The MetLife Non-Management Director Deferred Compensation Plan, dated December 9, 2008 (as amended and restated, effective January 1, 2005).*
|
|
|
|
10.94
|
|
MetLife, Inc. Director Indemnity Plan (dated and effective July 22, 2008).*
|
|
|
|
10.95
|
|
MetLife Auxiliary Pension Plan, dated August 7, 2006 (as amended and restated, effective June 30, 2006). (Incorporated by reference to Exhibit 10.80 to the 2011 Annual Report).*
|
|
|
|
10.96
|
|
MetLife Auxiliary Pension Plan, dated December 21, 2006 (amending and restating Part I thereof, effective January 1, 2007). (Incorporated by reference to Exhibit 10.81 to the 2011 Annual Report).*
|
|
|
|
10.97
|
|
MetLife Auxiliary Pension Plan, dated December 21, 2007 (amending and restating Part I thereof, effective January 1, 2008). (Incorporated by reference to Exhibit 10.95 to the 2012 Annual Report).*
|
|
|
|
10.98
|
|
Amendment #1 to the MetLife Auxiliary Pension Plan (as amended and restated, effective January 1, 2008), dated October 24, 2008 (effective October 1, 2008).*
|
|
|
|
10.99
|
|
Amendment Number Two to the MetLife Auxiliary Pension Plan (as amended and restated, effective January 1, 2008), dated December 12, 2008 (effective December 31, 2008).*
|
|
|
|
10.100
|
|
Amendment Number Three to the MetLife Auxiliary Pension Plan (as amended and restated, effective January 1, 2008) dated March 25, 2009 (effective January 1, 2009). (Incorporated by reference to Exhibit 10.1 to MetLife, Inc.'s Current Report on Form 8-K dated March 31, 2009).*
|
|
|
|
Exhibit No.
|
|
Description
|
|
|
|
10.101
|
|
Amendment Number Four to the MetLife Auxiliary Pension Plan (as amended and restated, effective January 1, 2008), dated December 16, 2009 (effective January 1, 2010). (Incorporated by reference to Exhibit 10.5 to the December 21, 2009 Form 8-K).*
|
|
|
|
10.102
|
|
Amendment Number Five to the MetLife Auxiliary Pension Plan (as amended and restated, effective January 1, 2008) dated December 21, 2010 (effective January 1, 2010). (Incorporated by reference to Exhibit 10.80 to the 2010 Annual Report).*
|
|
|
|
10.103
|
|
Amendment Number Six to the MetLife Auxiliary Pension Plan (as amended and restated, effective January 1, 2008) dated December 20, 2012 (effective January 1, 2012). (Incorporated by reference to Exhibit 10.101 to the 2012 Annual Report).*
|
|
|
|
10.104
|
|
Alico Overseas Pension Plan, dated January 2009. (Incorporated by reference to Exhibit 10.88 to the 2011 Annual Report).*
|
|
|
|
10.105
|
|
Amendment Number One to the Alico Overseas Pension Plan (effective November 1, 2010), dated December 20, 2010. (Incorporated by reference to Exhibit 10.89 to the 2011 Annual Report).*
|
|
|
|
10.106
|
|
Amendment Number Two to the Alico Overseas Pension Plan (effective as of November 1, 2010), dated December 13, 2011. (Incorporated by reference to Exhibit 10.90 to the 2011 Annual Report).*
|
|
|
|
10.107
|
|
Amendment Number Three to the Alico Overseas Pension Plan, dated May 1, 2012 (effective January 1, 2012). (Incorporated by reference to Exhibit 10.1 to MetLife, Inc.'s Current Report on Form 8-K dated May 4, 2012).*
|
|
|
|
10.108
|
|
Member's Explanatory Handbook for the Metropolitan Life Insurance Company of Hong Kong Limited Healthcare Plan (2011). (Incorporated by reference to Exhibit 10.2 to the May 16, 2012 Form 8-K).*
|
|
|
|
10.109
|
|
MetLife Plan for Transition Assistance for Officers, dated December 28, 2009 (as amended and restated, effective January 1, 2010 (the "MPTA")). (Incorporated by reference to Exhibit 10.84 to the 2009 Annual Report).*
|
|
|
|
10.110
|
|
Amendment Number One to the MPTA, dated December 15, 2010. (Incorporated by reference to Exhibit 10.96 to the 2010 Annual Report).*
|
|
|
|
10.111
|
|
Amendment Number Two to the MPTA, dated December 7, 2011. (Incorporated by reference to Exhibit 10.93 to the 2011 Annual Report).*
|
|
|
|
10.112
|
|
Amendment Number Three to the MPTA, dated December 22, 2011. (Incorporated by reference to Exhibit 10.94 to the 2011 Annual Report).*
|
|
|
|
10.113
|
|
Amendment Number Four to the MPTA, dated April 4, 2012. (Incorporated by reference to Exhibit 10.4 to MetLife, Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012).*
|
|
|
|
10.114
|
|
Amendment Number Five to the MPTA, dated December 26, 2012. (Incorporated by reference to Exhibit 10.112 to the 2012 Annual Report).*
|
|
|
|
10.115
|
|
Amendment Number Six to the MPTA (as amended and restated, effective January 1, 2010), dated June 27, 2013. (Incorporated by reference to Exhibit 10.1 to MetLife, Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013).*
|
|
|
|
12.1
|
|
Statement re: Computation of Ratios of Earnings to Fixed Charges.
|
|
|
|
21.1
|
|
Subsidiaries of the Registrant.
|
|
|
|
23.1
|
|
Consent of Deloitte & Touche LLP.
|
|
|
|
31.1
|
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
31.2
|
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
32.1
|
|
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
32.2
|
|
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
101.INS
|
|
XBRL Instance Document.
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
*
|
Indicates management contracts or compensatory plans or arrangements.
|
(a)
|
one-third of your Options will become exercisable on each of the first, second and third anniversaries of February 19, 2002;
|
(b)
|
you may exercise your Options until the close of business on February 18, 2012; and
|
(c)
|
you need not exercise all of your Options at one time.
|
(1)
|
be based on stock which is traded on an established securities market, or that the Committee reasonably believes will be traded on an established securities market within 60 days after the Change of Control;
|
(2)
|
provide you with rights substantially equivalent to or better than the rights applicable to your Options (including, but not limited to, an identical or better exercise schedule, and identical or better timing and methods of payment);
|
(3)
|
have substantially equivalent economic value to your Options (determined at the time of the Change of Control); and
|
(4)
|
provide that, in the event that your employment is involuntarily or constructively terminated after a Change of Control, any conditions imposed on your rights under an Alternative Award, including any restrictions on transfer or exercisability of any Alternative Award, will be waived or will lapse.
|
(a)
|
paying cash (or its equivalent) to the Company to cover the tax obligation;
|
(b)
|
having Common Stock otherwise issuable upon the exercise of your Options withheld by the Company and the cash value of those shares applied to cover the tax obligation; or
|
(c)
|
delivering previously acquired shares of Common Stock to the Company having a Fair Market Value as of the date of exercise equal to all or part of the tax obligation associated with the transaction, and cash equal to the balance of the tax obligation.
|
METLIFE, INC.
|
|
|
|
By:
|
|
|
Name
|
|
|
|
Title
|
|
|
|
Signature
|
|
|
|
|
EMPLOYEE
|
|
|
|
Name
|
|
|
|
Signature
|
1.
|
NORMAL TERM OF YOUR OPTIONS. Except as provided in Sections 3 and 6:
|
(a)
|
your Options are exercisable on April 23, 2002;
|
(b)
|
you may exercise your Options until April 23, 2012; and
|
(c)
|
you need not exercise all of your Options at one time.
|
2.
|
METHOD OF EXERCISE AND PAYMENT. You may exercise any of your Options that have become exercisable by notifying the Secretary of the Company of your election to do so and the number of Shares you have elected to purchase, and paying for those Shares at the time you exercise your Options. You may pay the Exercise Price in one or more of the following ways: (a) in cash or its equivalent, (b) by exchanging Shares of Common Stock you already own (as long as those Shares are not subject to any pledge or other security interest), or (c) through an arrangement with the broker designated by the Company in which the broker will use the proceeds of the sale of a sufficient number of Shares of Common Stock to pay the Exercise Price. The combined value of all cash (or its equivalent) paid and the Fair Market Value of any Common Stock tendered to the Company for exchange must have a value as of the date they are tendered at least equal to the Exercise Price. If you retain some or all of the Shares after you exercise your Options, you will receive evidence of ownership of those Shares.
|
3.
|
TERMINATION OF SERVICE. If you cease to serve as a Director of the company, you (or in the case of your death, your beneficiary or estate as determined by Section 5) may exercise any of your Options at any time until April 23, 2012.
|
4.
|
NONTRANSFERABILITY OF AWARDS. You may not transfer, pledge, assign, negotiate, or hypothecate any of your Options in any way, other than by will or by the laws of descent and distribution. All rights with respect to your Options are Exercisable during your lifetime only by you.
|
5.
|
BENEFICIARY DESIGNATION. You may name any beneficiary or beneficiaries (who may be named contingently or successively) who may then exercise any right under this Agreement in the case of your death. Each stock option beneficiary designation will revoke all prior stock option designations. Beneficiary designations must be in a prescribed form and must be filed with the Company during your lifetime. If you have not designated a beneficiary, your rights under this Agreement will pass to and may be exercised by your estate.
|
6.
|
ADJUSTMENT OF THE NUMBER OF OPTION SHARES. In the event of any Share dividend, Share split, recapitalization, merger, consolidation, combination, spinoff, distribution of assets to stockholders (other than ordinary cash dividends), exchange of Shares, or other similar corporate change, the number of Shares of Common Stock subject to your options and the Exercise Price will be appropriately adjusted by the Governance and Finance Committee (the "Committee") as required by the Plan. The Committee's determination in this regard will be conclusive.
|
7.
|
REQUIREMENTS OF LAW. The issuance of Shares of Common Stock pursuant to your Options is subject to all applicable laws, rules and regulations, and to any approvals by any governmental agencies or national securities exchanges as may be required. No Shares of Common Stock will be issued upon exercise of any of your options if that issuance or exercise would result in a violation of applicable law, including the federal securities laws and any applicable state or foreign securities laws. Your Options are not intended to be incentive stock options under the Internal Revenue Code of 1986,as amended.
|
8.
|
GOVERNING LAW; CHOICE OF FORUM. This Agreement will be construed in accordance with the laws of the State of Delaware, regardless of the law that might be applied under principles of conflict of laws. Any action to enforce this Agreement or any action otherwise regarding this Agreement must be brought in a court in the State of New York, to which jurisdiction the Company and you consent.
|
9.
|
INTERPRETATION; CONSTRUCTION. Any determination or interpretation by the Committee pursuant to this Agreement will be final and conclusive. In the event of a conflict between any terms of this Agreement and the terms of the Plan, the terms of the Plan control.
|
10.
|
ENTIRE AGREEMENT. This Agreement and the Plan represent the entire agreement between you and the Company regarding your Options. No promises, terms, or agreements of any kind regarding your Options that are not set forth in this Agreement or the Plan, or to which there is no reference in this Agreement or the Plan, are part of this Agreement.
|
11.
|
AMENDMENTS. The Committee has the exclusive right to amend this Agreement as long as the amendment is consistent with the Plan. The Company will give written notice to you (or, in the event of your death, to your beneficiary or estate) of any amendment as promptly as practicable after its adoption.
|
METLIFE, INC.
|
|
|
|
By:
|
|
|
Robert H. Benmosche
|
|
Chairman and Chief Executive Officer
|
|
|
DIRECTOR
|
|
|
|
[NAME]
|
Table 1
|
|
|
Table 2
|
||||
Company Change in
|
|
|
|
|
|
||
Annual Net
|
|
First Percentage
|
|
|
|
||
Operating Income
|
|
(Averaged For Each
|
|
|
Index Proportionate
|
|
|
Available to Common
|
|
Year of Performance
|
|
|
Total Shareholder
|
|
|
Shareholders
|
|
Period) For
|
|
|
Return subtracted
|
|
Second Percentage
|
Percentile Relative
|
|
Purposes of
|
|
|
from Company
|
|
For Purposes of
|
to Other Companies
|
|
Determining
|
|
|
Proportionate Total
|
|
Determining
|
in the Index
|
|
Performance Factor
*
|
|
|
Shareholder Return
|
|
Performance Factor*
|
0-24
|
|
—
|
|
|
-26.0% or less
|
|
—
|
25
|
|
25
|
|
|
-25.0%
|
|
25
|
26
|
|
26
|
|
|
-24.0%
|
|
26
|
27
|
|
27
|
|
|
-23.0%
|
|
27
|
28
|
|
28
|
|
|
-22.0%
|
|
28
|
29
|
|
29
|
|
|
-21.0%
|
|
29
|
30
|
|
30
|
|
|
-20.0%
|
|
30
|
31
|
|
31
|
|
|
-19.0%
|
|
31
|
32
|
|
32
|
|
|
-18.0%
|
|
32
|
33
|
|
33
|
|
|
-17.0%
|
|
33
|
34
|
|
34
|
|
|
-16.0%
|
|
34
|
35
|
|
35
|
|
|
-15.0%
|
|
35
|
36
|
|
36
|
|
|
-14.0%
|
|
36
|
37
|
|
37
|
|
|
-13.0%
|
|
37
|
38
|
|
38
|
|
|
-12.0%
|
|
38
|
39
|
|
39
|
|
|
-11.0%
|
|
39
|
40
|
|
40
|
|
|
-10.0%
|
|
40
|
41
|
|
41
|
|
|
-9.0%
|
|
41
|
42
|
|
42
|
|
|
-8.0%
|
|
42
|
43
|
|
43
|
|
|
-7.0%
|
|
43
|
44
|
|
44
|
|
|
-6.0%
|
|
44
|
45
|
|
45
|
|
|
-5.0%
|
|
45
|
46
|
|
46
|
|
|
-4.0%
|
|
46
|
47
|
|
47
|
|
|
-3.0%
|
|
47
|
48
|
|
48
|
|
|
-2.0%
|
|
48
|
49
|
|
49
|
|
|
-1.0%
|
|
49
|
50
|
|
50
|
|
|
—
|
|
50
|
51
|
|
52
|
|
|
1.2%
|
|
52
|
52
|
|
54
|
|
|
2.4%
|
|
54
|
53
|
|
56
|
|
|
3.6%
|
|
56
|
54
|
|
58
|
|
|
4.8%
|
|
58
|
55
|
|
60
|
|
|
6.0%
|
|
60
|
56
|
|
62
|
|
|
7.2%
|
|
62
|
57
|
|
64
|
|
|
8.4%
|
|
64
|
58
|
|
66
|
|
|
9.6%
|
|
66
|
59
|
|
68
|
|
|
10.8%
|
|
68
|
60
|
|
70
|
|
|
12.0%
|
|
70
|
61
|
|
72
|
|
|
13.2%
|
|
72
|
62
|
|
74
|
|
|
14.4%
|
|
74
|
63
|
|
76
|
|
|
15.6%
|
|
76
|
64
|
|
78
|
|
|
16.8%
|
|
78
|
65
|
|
80
|
|
|
18.0%
|
|
80
|
66
|
|
82
|
|
|
19.2%
|
|
82
|
67
|
|
84
|
|
|
20.4%
|
|
84
|
68
|
|
86
|
|
|
21.6%
|
|
86
|
69
|
|
88
|
|
|
22.8%
|
|
88
|
70
|
|
90
|
|
|
24.0%
|
|
90
|
71
|
|
92
|
|
|
25.2%
|
|
92
|
72
|
|
94
|
|
|
26.4%
|
|
94
|
73
|
|
96
|
|
|
27.6%
|
|
96
|
74
|
|
98
|
|
|
28.8%
|
|
98
|
75-99
|
|
100
|
|
|
30.0% or greater
|
|
100
|
*
|
First percentage is determined for each calendar year of the Performance Period and averaged, and added to second percentage. The total is multiplied by the number of Performance Shares granted to determine the number of Final Performance Shares. See Section 1 of this Agreement.
|
|
After discussion, and ON MOTION it was RESOLVED:
(1) That the Annual Variable Incentive Plan (“AVIP”) awards for 2014 performance shall constitute Cash-Based Awards under the MetLife, Inc. 2005 Stock and Incentive Compensation Plan or any successor to the MetLife, Inc. 2005 Stock and Incentive Compensation Plan (collectively, the “Stock and Incentive Plan”);
(2) That the measures to be used to determine performance results of MetLife, Inc. (the “Company”) for establishing the amount to be available for payment of awards under AVIP for 2014 performance (the “2014 Available Amount”) are approved in all respects substantially in the form described in the materials presented to the Committee and filed with the records of the meeting, subject to Committee discretion to increase or decrease and otherwise determine the 2014 Available Amount;
(3) That the 2014 Section 162(m) Goals shall be the following:
(a) Positive Company income from continuing operations before provision for income tax, excluding net investment gains (losses) (determined in accordance with Section 3(a) of Article 7.04 of SEC Regulation S-X), which includes total net investment gains (losses) and net derivatives gains (losses), measured for 2014.
(b) Positive Company Total Shareholder Return for the Performance Period. “Total Shareholder Return” means the change (plus or minus) from the Initial Closing Price to the Final Closing Price, plus dividends (if any) actually paid on shares of MetLife, Inc. common stock on a reinvested basis during the Performance Period. “Initial Closing Price” means the average Closing Price for the twenty (20) trading days prior to the first day of the Performance Period. “Final Closing Price” means, in the case of the Company the average Closing Price for the twenty (20) trading days prior to and including the final day of the Performance Period. “Closing Price” means the closing price of a Share as reported in the principal consolidated transaction reporting system for the New York Stock Exchange (or on such other recognized quotation system on which the trading prices of the Shares are quoted at the relevant time), or in the event that there are no Share transactions reported on such tape or other system on the applicable date, the closing price on the immediately preceding date on which Share transactions were reported. “Shares” means shares of MetLife, Inc. common stock. The “Performance Period” refers to 2014.
(4) That the Chief Executive Officer of the Company (“CEO”) and each other member of the Company’s Executive Group shall be eligible for an AVIP award for 2014 of $10 million (or the maximum aggregate amount that may be awarded or credited with respect to cash-based awards to a participant in a single year under the Stock and Incentive Compensation Plan, if lower) if any one or more of the 2014 Section 162(m) Goals is met; provided, however, that the Committee shall retain the ability, in its discretion, to reduce the amount of the award payable (including reducing the amount payable to zero) based on such factors or considerations that the Committee shall deem appropriate, including but not limited to the amounts that would have been payable to the CEO or other member of the Company’s Executive Group, respectively, under the methodology applicable to other employees under AVIP;
(5) That if the Company does not meet any of the 2014 Section 162(m) Goals, neither the CEO nor any of the other members of the Company’s Executive Group shall be eligible for any AVIP award for 2014; and
(6) That the officers of the Company (the “Officers”) be and hereby are authorized, in the name and on behalf of the Company, to (a) take or cause to be taken any and all such further actions and to prepare, execute and deliver or cause to be prepared, executed and delivered, and where necessary or appropriate, file or cause to be filed with the appropriate governmental authorities, all such other instruments and documents, including but not limited to all certificates, contracts, bonds, agreements, documents, instruments, receipts or other papers, (b) incur and pay or cause to be paid all fees and expenses and (c) engage such persons, in each case as such Officer shall in that Officer’s judgment determine to be necessary or appropriate to carry out fully the intent and purposes of the foregoing resolutions and each of the transactions contemplated thereby.
|
1.
|
Purpose. The purpose of the Plan is to provide an opportunity for Participants to delay receipt of certain compensation until a later date, at which time payment of the compensation will be made after adjustment for the simulated investment experience of such compensation from date of deferral.
|
2.
|
Plan Administration.
|
2.1.
|
The Plan Administrator shall administer the Plan.
|
2.2.
|
The Plan Administrator may establish, amend, and rescind rules and regulations relating to the Plan, provide for conditions necessary or advisable to protect the interest of the MetLife Companies, construe all communications related to the Plan, and make all other determinations it deems necessary or advisable for the administration and interpretation of the Plan.
|
2.3.
|
Determinations, interpretations, and other actions made by the Plan Administrator shall be final, binding, and conclusive for all purposes and upon all individuals.
|
2.4.
|
The Plan Administrator may prescribe forms as the sole and exclusive means for Participants to take actions authorized or allowed under the Plan. The Plan Administrator may issue communications to Eligible Associates and Participants as it deems necessary or appropriate in connection with the Plan (including but not limited to communications explaining the risks and potential benefits of the Investment Tracking Funds). Subject to the provisions of Section 20, the Plan Administrator may, in its sole discretion, adjust the value of Deferred Compensation Accounts on a basis other than as prescribed in Deferral Elections or Reallocation Elections, including but not limited to the use of Investment Tracking Funds other than those selected by the Participant.
|
2.5.
|
Except to the extent prohibited by law, communication by the Plan Administrator (and by an Eligible Associate or Participant to the extent authorized by the Plan Administrator) of any document or writing, including any document or writing that must be executed by a party, may be in an electronic form of communication.
|
2.6.
|
The Plan Administrator may appoint such agents, who may be officers or employees of a MetLife Company, as it deems necessary or appropriate to assist it in administering the Plan and may grant authority to such agents to execute documents and take action on its behalf. The Plan Administrator may consult such legal counsel, consultants, or other professional as it deems desirable and may rely on any opinion received from any such professional or from its agent. All expenses incurred in the administration of the Plan shall be paid by one or more of the MetLife Companies.
|
3.
|
Eligibility to Participate. Each Officer and 090 Employee shall be eligible to participate in this Plan; provided, however, that unless the Plan Administrator determines otherwise, no Officer or 090 Employee who receives a payment pursuant to Section 13 of this Plan (or similar provision in any other non-qualified deferred compensation plan in which the individual participated by virtue of employment with any MetLife Company) shall be eligible to participate in this Plan with regard to Compensation payable in any calendar year prior to the calendar year next beginning after the third anniversary of such payment pursuant to Section 13 is made.
|
4.
|
Deferral Elections.
|
4.1.
|
Each calendar year at such time as is determined by the Plan Administrator, each Eligible Associate may complete a Deferral Election applicable to the Eligible Associate's Compensation payable in the following calendar year and submit such Deferral Election to the Plan Administrator. The Plan Administrator shall prescribe the form(s) of Deferral Election.
|
4.2.
|
Each Deferral Election shall indicate (a) the percentage, in increments of 5%, or maximum dollar amount of base salary (which, for greater clarity, shall not include any payments under any such plans contingent on a separation agreement, release, or similar agreement) that would otherwise be paid the receipt of which the Eligible Associate wishes to defer into a Deferred Cash Compensation Account, which shall be no greater than 75% of base salary; (b) the percentage, in increments of 5%, or (except for payments under the Long Term Performance Compensation Plan, International Long Term Performance Compensation Plan, or payments to an 090 Employee) maximum dollar amount of Cash Incentive Compensation, by plan under which such Compensation may be payable, that would otherwise be paid the receipt of which the Eligible Associate wishes to defer into a Deferred Cash Compensation Account (provided, however, that if the Participant expresses a maximum dollar amount of Cash Incentive Compensation for deferral and the amount of Cash Incentive Compensation actually payable to the Participant is less than the maximum dollar amount specified, the Deferral Election shall be deemed to apply to the full amount of the Cash Incentive Compensation); (c) the percentage, in increments of 5%, of Stock Compensation that would otherwise be paid the receipt of which the Eligible Associate wishes to defer into a Deferred Stock Compensation Account; (d) the percentage, in increments of 5%, of cash payments under the Long Term Performance Compensation Plan which the Eligible Associate wishes to defer into a Deferred Stock Compensation Account, (e) the Investment Tracking Fund(s) which the Eligible Participant selects to adjust the value of the Deferred Cash Compensation Account and the value of the Matching Contribution Account, in increments of 5%; (f) the date on which the Eligible Participant wishes the payment of the Deferred Stock Compensation Account to begin; (g) the date on which the Eligible Participant wishes the payment of the Deferred Cash Compensation Account and Matching Contribution Account to begin; (h) whether the Deferred Compensation Accounts are to be paid in a single lump sum or annual installments; and (i) if the Deferred Compensation Accounts are to be paid in annual installments, the number (not to exceed fifteen (15)) of such installments. If, upon Employment Discontinuance (or upon the conclusion of the Participant's receipt of severance payments), the Participant is Retirement Eligible or will be deemed to be Retirement Eligible upon attaining age 55, the Participant's elections regarding Cash Incentive Compensation and/or Deferred Stock Compensation shall be applied to any such compensation otherwise payable after the Participant's Employment Discontinuance.
|
4.3.
|
Each Deferral Election that specifies any deferral of base salary in terms of a maximum dollar amount rather than in percentage terms must specify deferral of at least two hundred dollars ($200) of base salary per pay period. Each Deferral Election that specifies any deferral of Cash Incentive Compensation in terms of a maximum dollar amount rather than in percentage terms must specify deferral of at least five thousand dollars ($5,000) of Cash Incentive Compensation per year.
|
4.4.
|
Each Deferral Election shall indicate the date(s) on which the Eligible Associate wishes the payment of a Deferred Compensation Account to begin by indicating either: (a) a single date certain that is no earlier than January 1 of the calendar year following the calendar year in which the third anniversary of the latest date any Compensation subject to the Deferral Election would have otherwise been paid; (b) the date of the Eligible Associate's termination of employment with Retirement Eligibility.
|
4.5.
|
The Plan Administrator may, in its discretion, either reject or reform any Deferral Election not consistent with (a) this Section 4; (b) employer compliance with legal requirements (including those regarding sufficient tax withholding and those regarding payroll taxation for FICA or otherwise); or (c) requirements for employee contributions or premium payments from compensation under the terms of any plan.
|
4.6.
|
Notwithstanding any other provisions of this Plan, no Compensation payable to a Participant less than one-hundred eighty (180) days after the first day of the second calendar month following a hardship payment to the Participant under SIP or other qualified deferred compensation plan in which the individual participates by virtue of employment with any MetLife Company shall be deferred under this Plan.
|
5.
|
Investment Tracking.
|
5.1.
|
Except as provided in Section 2.4 of this Plan, the value of a Participant's Deferred Stock Compensation Account, and only the value of such Deferred Stock Compensation Account, shall be adjusted using the MetLife Deferred Shares Fund as provided in Section 6.1 of this Plan, on the same basis as if the value of such Stock Compensation had been invested in MetLife Stock for such period(s) of time determined by the Deferral Election until it is payable.
|
5.2.
|
The number of shares representing cash payments under the Long Term Performance Compensation Plan deferred into a Deferred Stock Compensation Account pursuant to the terms of Section 4.2(d) of this Plan shall be initially determined by dividing the amount of the cash payment deferred by the Fair Market Value of the MetLife Stock on the date such payment was granted to the Participant under the terms of the Long Term Performance Compensation Plan, and shall thereafter be subject to Investment Tracking on the same terms as the balance of the Deferred Stock Compensation Account under Section 5.1 of this Plan.
|
5.3.
|
Except as provided in Sections 2.4 and 5.1 of this Plan, the value of each Participant's Deferred Cash Compensation Account and Matching Contribution Account shall be adjusted to reflect the simulated investment performance using the Investment Tracking Funds selected by the Participant for purposes of such valuation in the Deferral Election, and those selected by the Participant in subsequent Reallocation Elections, on the same basis as if the value of such Deferred Compensation Accounts had been invested in such Investment Tracking Funds for such period(s) of time determined by the Deferral Election and any Reallocation Election until it is payable.
|
6.
|
Investment Tracking Funds. The methods of Investment Tracking described in this Section 6 shall be available for Deferral Elections and Reallocation Elections. If this Section 6 is amended, the Plan Administrator may require the Participant to make an appropriate change in the Participant's Investment Tracking or may unilaterally impose a method of Investment Tracking with regard to such parts of a Participant's Deferred Compensation Accounts affected by that amendment.
|
6.1.
|
MetLife Deferred Shares Fund. Subject to Section 14.5 of this Plan, value tracked in the MetLife Deferred Shares Fund shall be accounted in number of tracking shares equal to the number of shares of MetLife Stock deferred and adjusted to simulate the effect of each and any of the following on the Stock Compensation had it been paid in MetLife Stock: (a) dividend; (b) stock dividend; (c) stock split; (d) MetLife, Inc. recapitalization (including, but not limited, to the payment of an extraordinary dividend), (e) merger, consolidation, combination, or spin-off affecting MetLife, Inc. capitalization; (f) distribution of MetLife, Inc. assets to holders of MetLife Stock (other than ordinary cash dividends); (g) exchange of shares, or (h) other similar corporate change. Unless otherwise determined by the Plan Administrator, only the value of a Participant's Deferred Stock Compensation Account may be tracked in the MetLife Deferred Shares Fund.
|
6.2.
|
Actively managed funds: Investment Tracking according to the changes in value of shares or units, as applicable, and simulated reinvested dividends and other distributions to share/accountholders in:
|
6.2.1.
|
MetLife SIP Fixed Income Fund
|
6.2.2.
|
Lord Abbett Bond Debenture Fund
|
6.2.3.
|
Oakmark Fund (R)
|
6.2.4.
|
MetLife SIP Small Company Stock Fund
|
6.2.5.
|
Oakmark International Fund
|
6.3.
|
Market index funds: Investment Tracking according to the changes in value of the:
|
6.3.1.
|
S&P 500 (R) Index
|
6.3.2.
|
Russell 2000 (R) Index
|
6.3.3.
|
Nasdaq Composite (R) Index
|
6.3.4.
|
MSCI-EAFE (R) Index
|
6.3.5.
|
Lehman Brothers (R) Aggregate Bond Index
|
6.3.6.
|
Merrill Lynch US High Yield Master II Index
|
6.3.7.
|
MSCI EMF Index (sm)
|
7.
|
Reallocation Elections.
|
7.1.
|
The Participant may change the Investment Tracking Funds used to adjust either (a) the value of new contributions to his/her Deferred Cash Compensation Account and credits to his/her Matching Contribution Account, from the date(s) Compensation is deferred rather than paid and any Matching Contributions are credited, as the case may be; and/or (b) the value of the Participant's existing Deferred Cash Compensation Account and Matching Contribution Account.
|
7.2.
|
Unless otherwise determined by the Plan Administrator, a Reallocation Election shall be effective on the date it is received by the Plan Administrator, or on the following business day if it is received by the Plan Adminstrator at a time when the Plan Administrator determines it is not practicable or convenient to the operation of the Plan to apply such Reallocation Election on the date it is received. The number of Reallocation Elections by a Participant regarding each of items (a) and (b) of Section 7.1, respectively, shall not exceed six (6) in any calendar year.
|
8.
|
Matching Contribution. If a Participant makes contributions to SIP throughout a calendar year, the Participant's Matching Contribution Account shall be credited with the amount of matching contributions (if any) with which the Participant's SIP account would have been credited under the terms and provisions of such plan, in each case with relation to deferred Compensation in that calendar year and the Compensation not been deferred. Notwithstanding the foregoing, no Matching Contributions shall be credited in favor of a Participant during the suspension of such Participant's deferrals pursuant to Section 4.6 of this Plan.
|
9.
|
Beneficiary Designation. The Plan Administrator shall prescribe the form by which each Eligible Associate and Participant may designate a beneficiary or beneficiaries (who may be named contingently or successively, and among whom payments received under this Plan may be split as indicated by the individual) for purposes of receiving payment of Deferred Compensation Accounts under this Plan after the death of such individual. Each designation will be effective only upon its receipt by the Plan Administrator during the life of the individual making the designation and shall revoke all prior beneficiary designations by that individual related to this Plan.
|
10.
|
Payment of Deferred Compensation Accounts.
|
10.1.
|
Amount. Except as provided in Section 2.4 of this Plan, the amount of payment(s) of each Deferred Compensation Account shall reflect the value of those Deferred Compensation Accounts through the date each payment of Deferred Compensation Accounts is payable, as adjusted for Investment Tracking. If payment of Deferred Compensation Accounts is to be made in installments, then the amount of each installment payment will be determined by dividing the value of each of the Deferred Compensation Accounts at the time each payment is due by the remaining number of installments in which the Deferred Compensation Accounts is to be paid.
|
10.2.
|
Form. Except as provided in Section 14.5 of this Plan, payment of a Participant's Deferred Stock Compensation Account shall be made in the form of shares of MetLife Stock. The form of payment of all other Deferred Compensation Accounts shall be cash.
|
10.3.
|
Timing and Number of Payments.
|
10.3.1.
|
If a Participant dies on any date prior to completion of all payments from a Participant's Deferred Compensation Accounts, the unpaid portions of the Participant's Deferred Compensation Accounts shall become immediately payable in a lump sum.
|
10.3.2.
|
If the date on which payment of a Participant's Deferred Compensation Accounts is to begin, as specified in the Participant's Deferral Election, occurs prior to the Participant's Employment Discontinuance, then the Participant's Deferred Compensation Accounts shall be payable beginning on the date determined by the Participant's Deferral Election and in the number of payments determined by the Participant's Deferral Election; provided, however, that if the Participant's Employment Discontinuance occurs prior to the completion of all such payments, then all remaining Deferred Compensation Account shall be paid in a lump sum.
|
10.3.3.
|
If the date on which payment of a Participant's Deferred Compensation Accounts is to begin, as specified in the Participant's Deferral Election, has not occurred prior to the Participant's Employment Discontinuance, and Participant is Retirement Eligible upon Employment Discontinuance (or upon the conclusion of the Participant's receipt of severance payments), then the Participant's Deferred Compensation Accounts shall be payable beginning on the date determined by the Participant's Deferral Election and in the number of payments determined by the Participant's Deferral Election.
|
10.3.4.
|
If the date on which payment of a Participant's Deferred Compensation Accounts is to begin, as specified in the Participant's Deferral Election, has not yet occurred prior to the Participant's Employment Discontinuance, and the Participant (a) is not Retirement Eligible upon Employment Discontinuance; (b) is, at Employment Discontinuance, eligible to participate in a severance plan offered by a MetLife Company; and (c) either will be deemed to be Retirement Eligible upon attaining age 55 or whose benefit under the Retirement Plan is otherwise determined with reference to the reduction factors for commencing benefit payments prior to normal retirement age applicable to Retirement Plan participants with twenty (20) or more years of service, then the Participant's Deferred Compensation Accounts shall be payable and in the number of payments determined by the Participant's Deferral Election beginning on the date determined by the Participant's Deferral Election; provided, however, that if the Participant's Deferral Election specified payment upon Retirement Eligibility then the Participant's Deferred Compensation Accounts shall be payable upon the Participant's Employment Discontinuance.
|
10.3.5.
|
If the date on which payment of a Participant's Deferred Compensation Accounts is to begin, as specified in the Participant's Deferral Election, has not occurred prior to the Participant's Employment Discontinuance, and neither Sections 10.3.3 nor 10.3.4 applies to the Participant, then the Participant's Deferred Compensation Accounts shall be payable in a lump sum upon the Participant's Employment Discontinuance, notwithstanding the Participant's Deferral Election.
|
10.3.6.
|
If, consistent with the terms of Section 10 other than this Section 10.3.6, the Participant's Deferral Election applies to Cash Incentive Compensation or Stock Compensation payable after the Participant's Employment Discontinuance, then the Participant's Deferred Compensation Accounts shall be payable beginning on the date determined by the Participant's Deferral Election and in the number of payments determined by the Participant's Deferral Election.
|
10.3.7.
|
Notwithstanding any of the other terms of this Section 10.3, distribution of amounts from a Participant's Matching Contribution Account shall not be made beginning on any date earlier than the date on which payments of Matching Contributions could have been payable under the terms of SIP. To the extent that the Participant's Matching Contribution Account is not payable on the earliest date(s) that the Participant's other Deferred Compensation Accounts become payable, in each case by virtue of this Section 10.3.7, the Matching Contribution Account shall be paid in a lump sum.
|
10.3.8.
|
Notwithstanding any of the other terms of this Section 10.3, except Section 10.3.7, to the extent a Participant's Deferred Compensation Accounts are payable pursuant to Section 12 or Section 13 of this Plan, payment shall be made in a single lump sum.
|
10.3.9.
|
Notwithstanding any of the other terms of this Section 10.3, if a Participant's Deferred Compensation Accounts are otherwise payable upon Employment Discontinuance, but as of that date the Participant has been offered severance pay, then the Participant's Deferred Compensation Accounts shall be payable upon the later of (x) the Participant's date of Employment Discontinuance and (y) the date the final severance payment is made to the Participant by a MetLife Company or an Affiliate. Notwithstanding the foregoing, if this Section 10.3.9 applies, the Plan Administrator may, in its sole discretion, determine that the Deferred Compensation Accounts are payable on any date after the Participant's date of Employment Discontinuance.
|
10.3.10.
|
Payment(s) of a Participant's Deferred Compensation Accounts shall be made as soon as practicable after they are payable, as determined by the Plan Administrator.
|
10.4.
|
To Whom Paid. Except as otherwise provided in this Section 10.4 of this Plan, all payments of a Participant's Deferred Compensation Accounts will be made to the Participant. If a Participant dies on any date prior to the date of the completion of all such payments, all unpaid value in the Participant's Deferred Compensation Accounts shall be paid to the beneficiary designated for that purpose by the Participant. If the Participant's designated beneficiary has not survived the Participant, or the Participant has designated no beneficiary for purposes of this Plan, such payment will be made to the Participant's surviving spouse, if any, or if the Participant has no surviving spouse to the Participant's estate.
|
10.5.
|
Withholding. Withholding of taxes and other items required by law shall be made from each payment of a Participant's Deferred Compensation Account or from other payments due to the Participant from MetLife, Inc., any MetLife Company, or any Affiliate.
|
11.
|
Loans and Assignments. The Plan shall make no loan, including any loan on account of any Deferred Compensation Account, to any Participant or any other person nor permit any Deferred Compensation Account to serve as the basis or security for any loan to any Participant or any other person. No Participant or any other person may sell, assign, transfer, pledge, commute, or encumber any Deferred Compensation Account or any other rights under this Plan.
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12.
|
Hardship Accommodations.
|
12.1.
|
Upon the written request of an Eligible Associate or Participant, the Plan Administrator may, in its sole discretion and in light of any facts or considerations it deems appropriate, find that the Eligible Associate or Participant has suffered an Unforeseeable Emergency. In light of such a finding, the Plan Administrator may, to the extent the Plan Administrator determines necessary for the Eligible Associate or Participant to address the Unforeseeable Emergency, (a) suspend the deferral of receipt of Compensation by the Eligible Associate or Participant pursuant to a Deferral Election; and/or (b) to the extent the Plan Administrator finds, in its sole discretion, that such a suspension of deferral is insufficient to address the Participant's Unforeseeable Emergency, accelerate the payment of all or a portion of the Participant's Deferred Compensation Accounts. The Plan Administrator shall provide the Eligible Associate or Participant with written notice of its determinations in response to the Eligible Associate's or Participant's request.
|
12.2.
|
The total amount of deferrals suspended or payment advanced shall not exceed the amount required to satisfy the financial consequences of the Unforseeable Emergency and amounts equal to the withholding required by Section 10.5, and shall not exceed the total value of the Deferred Compensation Accounts under the Plan. No accommodation pursuant to this Section 12 shall be implemented in manner or at a time when prohibited or punishable by any applicable MetLife Company policy or law, including but not limited to law regarding trading of securities on inside information and the exemptions therefrom.
|
12.3.
|
If the Eligible Associate or Participant participates in any other deferred compensation plan by virtue of employment with any MetLife Company, the Plan Administrator may coordinate the operation of this Section 12 with the operation or similar provisions of any such other plan, including but not limited to reducing the value of deferrals in ascending order of the value of deferrals in each plan beginning with the plan in which the individual's deferrals have the lowest value.
|
12.4.
|
In the event that an acceleration of payment from the Participant's Deferred Compensation Accounts is made, (a) the value of the Participant's Deferred Cash Compensation Account shall be reduced, and (b) if the reduction in the value of the Participant's Deferred Cash Compensation Account is less than the payment made, the Plan Administrator may in its sole discretion reduce the value of the Participant's Matching Contribution Account and/or Deferred Stock Compensation Account, in amounts determined by the Plan Administrator in its discretion, equal to a total reduction equal to the difference between the payments made and the value by which the Participant's Deferred Cash Compensation Account was reduced.
|
12.5.
|
To the extent that the value of the Participant's Deferred Cash Compensation Account or Matching Contribution Account is reduced, the value tracked according to each Investment Tracking Fund shall be reduced proportionate to the total value of the Deferred Cash Compensation Account or Matching Contribution Account, respectively, being tracked in that Investment Tracking Fund.
|
13.
|
Accelerated Payment. A Participant shall, upon written request, be paid ninety per cent (90%) of the value of the Participant's Deferred Compensation Accounts but shall forfeit ten per cent (10%) of the value of the Participant's Deferred Compensation Accounts. Each participant receiving such a payment under this Section 13 shall be ineligible
|
14.
|
Change of Control.
|
14.1.
|
The Plan Administrator shall transmit to each Eligible Associate communications and documents necessary for each Participant to complete a Change of Control Election applicable to the Participant's Deferred Compensation Accounts.
|
14.2.
|
Each Change of Control Election shall indicate whether the Participant wishes payment of Deferred Compensation Accounts to be made under the circumstances described in Section 14.4 of this Plan.
|
14.3.
|
Upon the occurrence of a Change of Control, Section 2.3 of this Plan shall no longer be applicable to any rights, including accrued Deferred Compensation Accounts, existing in favor of any Participant as of the date before the Change of Control.
|
14.4.
|
Upon the occurrence of both (a) a Change of Control and (b) a Participant's Employment Discontinuance on or after the Change of Control but before the second anniversary of the Change of Control, payment of all Deferred Compensation Accounts shall be made in a lump sum to the Participant if the Participant's Change of Control Election specifies that payment shall be made in such circumstances.
|
14.5.
|
Upon a Change of Control, the value of a Participant's Deferred Stock Compensation Account shall immediately be determined using the Change of Control Value price of MetLife Stock on the date of the Change of Control. Thereafter, the value of the Participant's Deferred Stock Compensation Account shall be adjusted, and the form of payment of the Deferred Stock Compensation Account shall be in a form, each as determined prior to the Change of Control by the Plan Administrator on a basis the Plan Administrator determines is reasonable in light of the Change of Control. If the Plan Administrator makes no determination pursuant to the foregoing prior to the Change of Control, after a Change of Control the value of the Participant's Deferred Stock Compensation Account shall be adjusted, and the form of payment of the Deferred Stock Compensation Account shall be in a form, each on a basis as is selected by the Participant from among the same alternatives available at the time to the Participant with regard to the Deferred Cash Compensation Account.
|
15.
|
Nature of Liability. All Deferred Compensation Accounts accrued under this Plan on or after January 1, 2003 are unsecured obligations of MetLife, Inc. and any successor thereto, and are neither obligations, debts, nor liabilities of any other entity or party. This Plan and the liabilities created hereunder are unfunded. Investment Tracking, any other means for adjusting the value of Deferred Compensation Accounts, and any communication or documentation regarding this Plan or any Participant's Deferred Compensation Accounts are for recordkeeping purposes only and do not create any right, property, security, or interest in any assets of MetLife, Inc. or any other party. All Deferred Compensation Accounts accrued under this Plan on or after January 1, 2003 are subject to the claims of general creditors of MetLife, Inc; all Deferred Compensation Accounts accrued under this Plan prior to January 1, 2003 are subject to the claims of general creditors of the company liable for such Deferred Compensation Accounts. Notwithstanding the foregoing, if any MetLife Company employing a Participant ceases to be an Affiliate, the Plan Administrator may determine on or before the date of the transaction in which the MetLife Company ceased to be an Affiliate (or afterward, with the consent of an officer of MetLife, Inc.), that the liabilities associated with some or all of the employees of that MetLife Company who are Participants shall transfer from MetLife, Inc. to that MetLife Company as of the date that MetLife Company ceases or ceased to be an Affiliate.
|
16.
|
No Guarantee of Employment; No Limitation on Employer Action. Nothing in this Plan shall interfere with or limit in any way the right of any employer to establish the terms and conditions of employment of any individual, including but not limited to compensation and benefits, or to terminate the employment of any individual, nor confer on any individual the right to continue in the employ of any employer. Nothing in this Plan shall limit the right of any employer to establish any other compensation or benefit plan. No Deferred Compensation Account shall be treated as compensation for purposes of a Participant's right under any other plan, policy, or program, except as stated or provided in such plan, policy, or program. Nothing in this Plan shall be construed to limit, impair, or otherwise affect the right of any entity to make adjustments, reorganizations, or changes to its capital or business structure, or to merge, consolidate, dissolve, liquidate, sell, or transfer all or any part of its business or assets.
|
17.
|
Term of Plan. This Plan shall be effective in this restated form on November 1, 2003, as approved by the Plan Administrator in accordance with the terms of the Plan as amended and restated effective October 22, 2002, and shall continue in effect unless and until it is terminated pursuant to its terms.
|
18.
|
Governing Law. The Plan shall be construed in accordance with and governed by New York law, without regard to principles of conflict of laws.
|
19.
|
Entire Plan; Third Party Beneficiaries. This Plan document is the entire expression of the Plan, and no other oral or written communication, other than documents authorized under this Plan and fulfilling its express terms, shall determine the terms of the Plan or the terms of any agreement between an Eligible Associate or Participant and a MetLife Company with regard to the Plan or Deferred Compensation Accounts. There are no third party beneficiaries to this Plan, other than Participants' respective beneficiaries designated under the terms of this Plan.
|
20.
|
Amendment and Termination. Except to the extent otherwise required by law, the Plan Administrator may amend, modify, suspend, or terminate this Plan at any time. Any such amendment or termination will not reduce the amount in Deferred Compensation Accounts accrued under this Plan prior to the execution of such amendment or termination. For further clarification, except as stated in the sentence above (or as provided in Section 14), amendments may otherwise be made to any and all provisions of the Plan, including but not limited to amendments affecting the time of distribution of Deferred Compensation Accounts, affecting forms of distribution of Deferred Compensation Accounts, or affecting any of the Investment Tracking Funds or any other means for adjusting the value of Deferred Compensation Accounts.
|
21.
|
Definitions. Capitalized terms in this Plan, and their forms, shall have the following meanings:
|
21.1.
|
"Affiliate" shall mean any corporation, partnership, limited liability company, trust or other entity which directly, or indirectly through one or more intermediaries, controls, or is controlled by, MetLife, Inc.
|
21.2.
|
"Cash Incentive Compensation" shall mean compensation payable in the form of cash under the Annual Variable Incentive Compensation Plan, the Corporate Investments Incentive Plan, the Real Estate Investments Incentive Plan, the Agricultural Investments Incentive Plan, the Individual Regional Executive Plan, the Institutional Regional Executive Plan, the International Long Term Performance Compensation Plan, the Long Term Performance Compensation Plan (and, in the case of each incentive compensation plan, any successor plan(s)), or payments of the nature of incentive compensation to an 090 Employee, but (for greater clarity) shall not include any payments in lieu of compensation payable under any such plans contingent on a separation agreement, release, or similar agreement.
|
21.3.
|
"Change of Control" shall mean the occurrence of any of:
|
21.3.1.
|
any Person acquires "beneficial ownership" (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended ("Exchange Act")), directly or indirectly, of securities of MetLife, Inc. representing 25% or more of the combined Voting Power of MetLife, Inc.'s securities;
|
21.3.2.
|
within any 24-month period, the persons who were directors of MetLife, Inc. at the beginning of such period (the "Incumbent Directors") shall cease to constitute at least a majority of the Board of Directors of MetLife, Inc. (the "Board") or the board of directors of any successor to MetLife, Inc.; provided, however, that any director elected or nominated for election to the Board by a majority of the Incumbent Directors then still in office shall be deemed to be an Incumbent Director for purposes of this subsection 21.3.2;
|
21.3.3.
|
the stockholders of MetLife, Inc. approve a merger, consolidation, share exchange, division, sale or other disposition of all or substantially all of the assets of MetLife, Inc. which is consummated (a "Corporate Event"), and immediately following the consummation of which the stockholders of MetLife, Inc. immediately prior to such Corporate Event do not hold, directly or indirectly, a majority of the Voting Power of (1) in the case of a merger or consolidation, the surviving or resulting corporation, (2) in the case of a share exchange, the acquiring corporation, or (3) in the case of a division or a sale or other disposition of assets, each surviving, resulting or acquiring corporation which, immediately following the relevant Corporate Event, holds more than 25% of the consolidated assets of the MetLife, Inc. immediately prior to such Corporate Event; or
|
21.3.4.
|
any other event occurs which the Board declares to be a Change of Control.
|
21.4.
|
"Change of Control Election" shall mean a written document executed by the Eligible Associate specifying the Eligible Associate's instructions regarding the matters addressed by Section 14.4 of this Plan.
|
21.5.
|
"Change of Control Value" shall mean the highest price per share of MetLife Stock offered in conjunction with any transaction resulting in a Change of Control (as determined in good faith by the Plan Administrator if any part of the offered price is payable other than in cash) or, in the case of a Change of Control occurring solely by reason of a change in the composition of the Board of Directors of MetLife, Inc., the highest Closing Value of the MetLife Stock on any of the 30 trading days immediately preceding the date on which a Change of Control occurs. For this purpose, the "Closing Value" shall mean, on any date, the closing prices of MetLife Stock as reported in the principal consolidated transaction reporting system for the New York Stock Exchange (or on such other recognized quotation system on which the trading prices of MetLife Stock are quoted at the relevant time) on such date, and in the event that there are no MetLife Stock transactions reported on such tape (or such other system) on such date, Closing Value shall mean the closing price on the immediately preceding date on which MetLife Stock transactions were so reported.
|
21.6.
|
"Compensation" shall mean base salary, Cash Incentive Compensation, and Stock Compensation payable by MetLife, Inc. or an Affiliate.
|
21.7.
|
"Deferral Election" shall mean a written document executed by the Eligible Associate specifying the Eligible Associate's instructions regarding the matters addressed by Section 4 of this Plan.
|
21.8.
|
"Deferred Cash Compensation Account" shall mean a record-keeping account established for the benefit of a Participant in which is credited Compensation otherwise payable in cash to a Participant, but accounted for to the credit of the Participant under the terms of this Plan rather than paid to the Participant as and when originally earned.
|
21.9.
|
"Deferred Compensation Account" shall mean a Deferred Cash Compensation Account, Deferred Stock Compensation Account, or Matching Contribution Account (and, when used in the plural, all such Deferred Compensation Accounts to the credit of a Participant under the terms of this Plan). The value of each Deferred Compensation Account shall be adjusted as provided in this Plan.
|
21.10.
|
"Deferred Stock Compensation Account" shall mean a record-keeping account established for the benefit of a Participant in which is credited Compensation either (a) otherwise payable in MetLife Stock to a Participant, or (b) otherwise payable in cash as an award under the Long Term Performance Compensation Plan, but which the Participant has elected to defer in a Deferred Stock Compensation Account under Section 4.2(d) of this Plan, but accounted for to the credit of the Participant under the terms of this Plan rather than paid to the Participant as and when originally earned.
|
21.11.
|
"Eligible Associate" shall mean an Officer or 090 Employee at such times that Officer or 090 Employee is eligible to participate in this Plan as provided in Section 3 of this Plan.
|
21.12.
|
"Employment Discontinuance" shall mean the termination of employment with a MetLife Company or an Affiliate, other than in connection with the transfer of employment to another MetLife Company or any Affiliate.
|
21.13.
|
"Fair Market Value" shall mean, on any date, the closing price of MetLife Stock as reported in the principal consolidated transaction reporting system for the New York Stock Exchange (or on such other recognized quotation system on which the trading prices of MetLife Stock are quoted at the relevant time) on such date. In the event that there are no MetLife Stock transactions reported on such tape (or such other system) on such date, Fair Market Value shall mean the closing price on the immediately preceding date on which MetLife Stock transactions were so reported.
|
21.14.
|
"Investment Tracking" shall mean the adjustment of value to reflect simulated investment performance.
|
21.15.
|
"Investment Tracking Funds" shall mean those funds and vehicles described in Section 6 of this Plan.
|
21.16.
|
"Matching Contributions" shall mean the matching contributions described in Section 8 of this Plan.
|
21.17.
|
"Matching Contribution Account" shall mean a record-keeping account established for the benefit of a Participant in which is credited Matching Contributions.
|
21.18.
|
"MetLife Companies" shall mean MetLife Group, Inc.; Metropolitan Property and Casualty Insurance Company; MetLife Securities, Inc.; MetLife Bank, National Association; and Edison Supply and Distribution, Inc.
|
21.19.
|
"MetLife Stock" shall mean shares of common stock of MetLife, Inc.
|
21.20.
|
"Officer" shall mean each individual who is employed by a MetLife Company paid from the United States in United States currency and is either (a) an officer of any one or more MetLife Companies; (b) an employee of any MetLife Company in the same or an equivalent compensation grade level as officers of that MetLife Company; or (c) an employee of any MetLife Company who is eligible under the terms of the Long Term Performance Compensation Plan or the International Long Term Performance Compensation Plan, notwithstanding the individuals' Employment Discontinuance, for future payment under either such plan.
|
21.21.
|
"Participant" shall mean each Eligible Associate who has had compensation deferred by operation of a deferral election under this Plan.
|
21.22.
|
"Person" shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act, as supplemented by Section 13(d)(3) of the Exchange Act, and shall include any group (within the meaning of Rule 13d-5(b) under the Exchange Act); provided, however, that "Person" shall not include (i) MetLife, Inc. or any Affiliate of MetLife, Inc., (ii) the MetLife Policyholder Trust (and any person(s) who would otherwise be described herein solely by reason of having the power to control the voting of the shares held by that trust), or (iii) any employee benefit plan (including an employee stock ownership plan) sponsored by MetLife, Inc. or any Affiliate of MetLife, Inc.
|
21.23.
|
"Plan" shall mean this MetLife Deferred Compensation Plan for Officers.
|
21.24.
|
"Plan Administrator" shall mean the Plan Administrator of the Retirement Plan, including any person to whom such office has been delegated consistent with the Retirement Plan.
|
21.25.
|
"Reallocation Election" shall mean a written document executed by the Participant specifying the Participant's instructions regarding the matters addressed by Section 7 of this Plan.
|
21.26.
|
"Retirement Eligible" shall mean: (a) if the Participant participates in the Retirement Plan, the Participant has met the age and service criteria necessary to begin receiving pension payments under the "traditional formula" in the Retirement Plan immediately upon terminating service (regardless of whether the Participant is actually eligible to receive "traditional formula" pension payments), and (b) if the Participant participates in any other retirement plan offered by a MetLife Company or any Affiliate, the Participant has met the age and service criteria necessary to begin receiving pension payments immediately upon terminating service.
|
21.27.
|
"Retirement Plan" shall mean the Metropolitan Life Retirement Plan for United States Employees.
|
21.28.
|
"SIP" shall mean each and all of the Savings and Investment Plan for Employees of Metropolitan Life and Participating Affiliates, the Metropolitan Life Auxiliary Savings and Investment Plan, and the Metropolitan Life Supplemental Auxiliary Savings and Investment Plan (and/or any successor plan(s)).
|
21.29.
|
"Stock Compensation" shall mean compensation payable in the form of shares of MetLife Stock, including awards in that form under the Long Term Performance Compensation Plan.
|
21.30.
|
"Unforeseeable Emergency" shall mean severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant or a dependent of the Participant, loss of the Participant's property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant, in any case that is not or can not be relieved by the Participant through reimbursement or compensation by insurance or otherwise, liquidation of the Participant's assets (to the extent such liquidation would not itself cause severe financial hardship), and in any case solely to the extent consistent with the grounds for action by the Plan Administrator under Section 12 of the Plan under law in light of the tax status of the Plan.
|
21.31.
|
"Voting Power" shall mean such number of Voting Securities as shall enable the holders thereof to cast all the votes which could be cast in an annual election of directors of a company.
|
21.32.
|
"Voting Securities" shall mean all securities entitling the holders thereof to vote in an annual election of directors of a company.
|
21.33.
|
"090 Employee" shall mean each individual who is employed by a MetLife Company paid from the United States in United States currency, who is either (a) classified by the individual's employer in compensation grade 090 and earned two-hundred thousand dollars ($200,000) in annual total cash compensation benefitable under the terms of SIP for the twelve (12) months immediately preceding October 1 of the year prior to the year subject to the Deferral Election; (b) an employee of any MetLife Company who was formerly a participant in the GenAmerica Executive Deferred Savings Plan, deferred compensation under that plan, and has submitted a Deferral Election under this Plan for each year the individual was otherwise eligible to do so under this Plan; or (c) deemed to be an 090 Employee by the Plan Administrator in its discretion.
|
PLAN ADMINISTRATOR
|
||
|
|
|
/s/ James N. Heston
|
||
James N. Heston
|
||
|
|
|
Date:
|
November 4, 2003
|
|
|
|
|
Witness:
|
/s/ Anna Miraglia
|
1.
|
A new Section 4.3 is hereby added to the Plan to read as follows:
|
2.
|
Section 7.2 is hereby amended to read as follows:
|
3.
|
Section 22.15 is hereby amended to read as follows:
|
4.
|
Section 22.20 is hereby amended to read as follows:
|
5.
|
A new Section 22.27 is hereby added to the Plan to read as follows:
|
6.
|
Section 22.30 which contained the definition of "090 Employee" is deleted in its entirety. All instances where "090 Employee" appears in each Section of the Plan are hereby changed to "Qualifying Employee".
|
PLAN ADMINISTRATOR
|
||
|
|
|
/s/ Margery Brittain
|
||
Margery Brittain
|
||
|
|
|
ATTEST:
|
||
|
|
|
/s/ Bonita Haskins
|
PURPOSE
|
|
|
To provide eligible directors with the opportunity to defer their compensation payable in cash, thereby deferring payment of federal and most state income taxes on that amount.
|
|
|
|
|
ELIGIBILITY
|
|
|
Directors of MetLife, Inc. who are not employees of MetLife, Inc. or any of its affiliates.
|
|
|
|
|
ELECTION OPTIONS
|
|
•
Deferral amount
|
|
|
|
|
|
|
|
|
•
Investment tracking funds
|
|
|
|
|
|
|
|
•
Distribution date
|
|
|
|
|
|
|
|
•
Number of distribution payments
|
|
|
|
|
ENROLLMENT PERIOD
|
|
December 9, 2003 - December 31, 2003.
|
|
|
|
|
|
CHANGES TO DISTRIBUTION DATE AND/OR NUMBER OF PAYMENTS
|
|
You may change either or both the date of payment (to a later date) and number of payments, but may do so only once for each year's deferrals and must do so no later than 12 months prior to the date of payment you originally selected.
|
|
|
|
|
|
INVESTMENT CREDITS
|
|
Your deferred compensation account will be credited with gains and losses reflecting the performance of the investment tracking funds you select.
|
|
|
|
|
|
CHANGES IN AMOUNTS DEFERRED
|
|
None allowed, except for hardship.
|
|
|
|
|
|
INVESTMENT TRACKING FUND CHANGES
|
|
Limited to a total of six times per year for either future deferrals or existing account balances.
|
|
|
|
|
|
DISTRIBUTION
|
|
|
|
|
|
|
|
—
NUMBER
|
|
|
Lump-sum payment or up to 15 annual installments.
|
|
|
|
|
—
TIMING
|
|
|
Beginning upon earlier of 60 days after termination of service as a director or on a designated future date.
|
|
|
|
|
— ACCELERATED
|
|
Immediate lump-sum payment, 10% penalty.
|
|
|
|
|
|
—
HARDSHIP
|
|
|
Immediate lump-sum payment (availability strictly limited).
|
|
|
|
|
TAXES
|
|
|
Deferred compensation is taxable as ordinary income at the time of distribution.
|
|
|
|
|
|
|
|
Rollover to an IRA, qualified plan or non-qualified plan is not permitted.
|
|
|
|
|
BENEFICIARY
|
|
|
Upon your death, any existing account balance will be paid to your designated beneficiary in a lump sum.
|
|
|
|
|
PLAN FUNDING
|
|
|
The Plan is a non-qualified, unfunded plan. Your account is maintained for record-keeping purposes only.
|
•
|
The percentage of your cash fees you want deferred;
|
•
|
The investment tracking funds that will be used to adjust the value of your deferred compensation account;
|
•
|
A future distribution date; and
|
•
|
The number of distribution payments.
|
•
|
such changes are made at the same time at least 12 months before the original date selected for payment; and
|
•
|
if you select a new date for payment, that date must be later than the original date selected for payment.
|
*
|
"Change of Control" shall mean the occurrence of any of:
|
a.
|
any Person acquires "beneficial ownership" (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended ("Exchange Act")), directly or indirectly, of securities of MetLife, Inc. representing 25% or more of the combined Voting Power of MetLife, Inc.'s securities;
|
b.
|
within any 24-month period, the persons who were directors of MetLife, Inc. at the beginning of such period (the "Incumbent Directors") shall cease to constitute at least a majority of the Board of Directors of MetLife, Inc. (the "Board") or the board of directors of any successor to MetLife, Inc.; provided, however, that any director elected or nominated for election to the Board of Directors of MetLife, Inc. by a majority of the Incumbent Directors then still in office shall be deemed to be an Incumbent Director for purposes of this subsection 21.3.2;
|
c.
|
the stockholders of MetLife, Inc. approve a merger, consolidation, share exchange, division, sale or other disposition of all or substantially all of the assets of MetLife, Inc. which is consummated (a "Corporate Event"), and immediately following the consummation of which the stockholders of MetLife, Inc. immediately prior to such Corporate Event do not hold, directly or indirectly, a majority of the Voting Power of (1) in the case of a merger or consolidation, the surviving or resulting corporation, (2) in the case of a share exchange, the acquiring corporation, or (3) in the case of a division or a sale or other disposition of assets, each surviving, resulting or acquiring corporation which, immediately following the relevant Corporate Event, holds more than 25% of the consolidated assets of the MetLife, Inc. immediately prior to such Corporate Event; or
|
d.
|
any other event occurs which the Board of Directors of MetLife, Inc. declares to be a Change of Control.
|
ACTIVELY MANAGED FUNDS
|
|
YEAR-TO-DATE
|
|
2002
|
|
2001
|
|
2000
|
|
1999
|
MetLife SIP Fixed Income Fund(1)
|
|
3.72%
|
|
5.80%
|
|
7.00%
|
|
6.70%
|
|
6.45%
|
Lord Abbett Bond Debenture Fund(2)
|
|
13.38%
|
|
-9.63%
|
|
-1.32%
|
|
-0.95%
|
|
17.82%
|
Oakmark Fund(R)(3)
|
|
12.53%
|
|
-14.72%
|
|
18.29%
|
|
11.78%
|
|
-10.47%
|
MetLife SIP Small Company Stock Fund(1)
|
|
28.15%
|
|
-19.98%
|
|
-9.82%
|
|
-11.36%
|
|
46.89%
|
Oakmark International Fund(3)
|
|
19.25%
|
|
-9.32%
|
|
-5.13%
|
|
12.50%
|
|
39.47%
|
MARKET INDEXES
|
|
|
|
|
|
|
|
|
|
|
S&P 500(R)Index(4)
|
|
13.20%
|
|
-23.37%
|
|
-11.89%
|
|
-9.11%
|
|
20.88%
|
Russell 2000(R)Index(5)
|
|
27.30%
|
|
-21.58%
|
|
2.49%
|
|
-3.02%
|
|
21.26%
|
Nasdaq Composite(R)Index(5)
|
|
33.80%
|
|
-31.53%
|
|
-21.05%
|
|
-39.29%
|
|
85.59%
|
MSCI EAFE(R)Index(6)
|
|
15.82%
|
|
-17.52%
|
|
-22.33%
|
|
-15.52%
|
|
25.27%
|
Lehman Brothers(R)Aggregate Bond Index(7)
|
|
4.15%
|
|
11.38%
|
|
8.44%
|
|
11.63%
|
|
-0.82%
|
Merrill Lynch US High Yield Master II Index(6)
|
|
20.40%
|
|
-1.89%
|
|
4.34%
|
|
-5.00%
|
|
2.51%
|
MSCI EMF Index(SM)(6)
|
|
29.29%
|
|
-7.97%
|
|
-4.78%
|
|
-31.89%
|
|
63.70%
|
METLIFE COMMON STOCK FUND(8)
|
|
3.74%
|
|
-14.55%
|
|
-9.40%
|
|
145.56%
|
|
—
|
PLAN ADMINISTRATOR
|
|||
|
|
|
|
/s/ James N. Heston
|
|||
James N. Heston
|
|||
|
|
|
|
Date:
|
12/12/03
|
|
|
|
|
|
|
Witness:
|
/s/ Teresa Porochnia
|
Important Notices
This Program Description provides an overview of the MetLife Non-Management Director Deferred Compensation Plan (the “Plan”). It is also the official plan document that legally governs the Plan. This Plan document will govern in every respect and instance, and replaces and supersedes prior Plan documents.
This Program Description may be updated from time to time to implement changes in the Plan. Fund performance data will be updated periodically. These updates will constitute part of the Prospectus distributed with respect to the Plan. The Plan Administrator may amend, alter or terminate the Plan in accordance with its terms at any time and for any reason. The Plan was effective on January 1, 2005, and the Plan will continue in effect until it is amended, suspended, or terminated according to its terms. This Plan was designed to replace the MetLife Deferred Compensation Plan for Outside Directors and Article VII of the MetLife, Inc. 2000 Directors Stock Plan, respectively, beginning with 2005 compensation deferrals; earlier deferrals will remain governed by the earlier plans. MetLife, Inc. will have the obligation to pay amounts deferred under the Plan. MetLife, Inc.’s obligations are registered under the Securities Act of 1933, as amended. Since this is an unfunded plan, your rights or claims against assets or property are no greater than those of a general unsecured creditor of MetLife, Inc. Your deferrals may gain or lose value over time; see “Investment Tracking For Your Deferred Cash Accounts” and “MetLife Deferred Stock Accounts” below. Shares of MetLife, Inc. common stock paid under the Plan may be shares of treasury common stock, authorized but unissued common stock, or shares obtained on the open market. |
This document constitutes part of a prospectus covering securities
that have been registered under the Securities Act of 1933, as amended. The date of this document is December 2008. |
Purpose
|
|
|
To provide eligible directors with the opportunity to defer their cash and MetLife Stock compensation, thereby deferring payment of federal and most state income taxes on such compensation.
|
|
|
|
|
Eligibility
|
|
|
Directors of MetLife, Inc. who are not employees of MetLife, Inc. or any of its affiliates.
|
|
|
|
|
Election Options
|
|
|
•
Deferral amount
|
|
|
|
|
|
|
|
•
Investment tracking funds (for cash deferrals)
|
|
|
|
|
|
|
|
•
Distribution date
|
|
|
|
|
|
|
|
•
Number of distribution payments
|
|
|
|
|
Annual Enrollment
Period for Incumbent
Directors
|
|
|
Eligible Directors will be notified of the annual enrollment in the calendar year before deferrals begin.
|
|
|
|
|
Enrollment Period
for New Directors
|
|
|
Newly-appointed directors may make a deferral election for fees payable in the calendar year in which they are elected, but must generally do so by the
earlier of
:
|
|
|
|
|
|
|
|
•
the day before the first Directors meeting after appointment or,
|
|
|
|
|
|
|
|
•
the 30th day after appointment.
|
|
|
|
|
Investment Tracking
|
|
|
The value of your deferred cash compensation accounts will fluctuate daily based on the performance of the investment tracking funds and indices you select.
|
|
|
|
|
Investment Tracking
Fund Changes
|
|
|
Limited to a total of six times per year for future deferrals and existing account balances.
|
|
|
|
|
Changes in Amounts
Deferred
|
|
|
None allowed, except for hardship.
|
|
|
|
|
Form of Distribution
|
|
|
Your deferred cash compensation will be paid in cash at the end of the deferral period. Your deferred awards of MetLife Stock will be paid in the form of such stock, with imputed reinvested dividends, at the end of the deferral period.
|
|
|
|
|
Distribution:
|
|
|
|
|
|
|
|
—
Number
|
|
|
Lump-sum payment or up to 15 annual installments.
|
|
|
|
|
—
Timing
|
|
|
Beginning upon earlier of 60 days after termination of service as a director or on a designated future date.
|
|
|
|
|
—
Hardship
|
|
|
Immediate lump-sum payment (availability strictly limited).
|
|
|
|
|
Changes to Distribution Date and/or Number of Payments
|
|
You may change the distribution date to a date at least five years later than the date you originally selected, and/or change the number of payments. Your change will only be effective if you submit your request no later than one year before the earlier of the end of your service as a director or the distribution date you originally selected.
|
|
|
|
|
|
Taxes
|
|
|
Deferred compensation is taxable as ordinary income at the time of distribution.
|
|
|
|
|
|
|
|
Rollover to an IRA, qualified plan or nonqualified plan is not permitted.
|
|
|
|
|
Beneficiary
|
|
|
Upon your death, any existing account balances will be paid to your designated beneficiary or beneficiaries in a lump sum.
|
|
|
|
|
Plan Funding
|
|
|
The Plan is a nonqualified, unfunded plan. Your accounts are maintained for recordkeeping purposes only.
|
•
|
the day before the first Directors meeting following your appointment or,
|
•
|
the thirtieth (30
th
) day after your appointment.
|
•
|
The investment tracking funds that will be used to adjust the value of that Deferred Cash Account; and
|
•
|
A future distribution date and number of payments for that Deferred Cash Account (paid in cash).
|
•
|
The future distribution date and number of payments for your MetLife Deferred Stock Account.
|
*
|
“Closing Price” means the closing price of a share of MetLife Stock as reported in the principal consolidated transaction reporting system for the New York Stock Exchange (or on such other recognized quotation system on which the trading prices of shares of MetLife Stock are quoted at the relevant time) on such date. In the event that there are no transactions of MetLife Stock reported on such tape (or such other system) on such date, Closing Price shall mean the closing price on the immediately preceding date on which MetLife Stock transactions were so reported.
|
PLAN ADMINISTRATOR
|
||
|
|
|
/s/ Margery Brittain
|
||
Margery Brittain
|
||
|
|
|
Date:
|
December 9, 2008
|
|
|
|
|
Witness:
|
/s/ Bonita Haskins
|
1.
|
Purpose of Plan
|
2.
|
Covered Persons
|
3.
|
Indemnification and Expense Advancement
|
a.
|
The Indemnity By-Laws are incorporated into this Plan in their entirety. Each Covered Person’s right to indemnification and advancement under the Indemnity By-Laws shall be deemed a contract right upon commencement of the Covered Person’s service as a director.
|
b.
|
Notwithstanding anything to the contrary in Section 6.03 of the Indemnity By-Laws, advancement of expenses (including attorneys’ fees) incurred by a Covered Person after his or her service to the Company has ceased shall be paid under Section 6.03 on the same basis as would have been paid to such Covered Person had his or her service as a director of the Company continued. Each Covered Person’s right to such advancement of expenses shall be deemed a contract right upon commencement of the Covered Person’s service as a director.
|
c.
|
Any actual or purported amendment, modification or repeal of the rights to indemnification and advancement set forth in this Section 3 shall be prospective only and shall not in any way limit, restrict, eliminate or otherwise adversely affect any such rights with respect to any actual or alleged state of facts, occurrence, action or omission existing at or prior to such amendment, modification, or repeal of such rights, or any action, suit or proceeding, whether previously or thereafter brought or threatened, based in whole or in part upon any such actual or alleged state of facts, occurrence, action or omission.
|
4.
|
Amendment
|
5.
|
Miscellaneous
|
a.
|
This Plan is intended to confer on Covered Persons indemnification and advancement rights as described herein to the full extent permitted by applicable laws. In the event any provision herein conflicts with any applicable law, such provision shall be deemed modified only to the extent necessary to resolve the conflict.
|
b.
|
This Plan will be binding on the Company and its successors. A Covered Person may not assign any rights under the Plan, other than by will or the laws of descent and distribution. A Covered Person’s rights shall inure to the benefit of and be enforceable by and for the benefit of such Person’s heirs, executors and administrators.
|
c.
|
This Plan shall be governed by the laws of the State of Delaware, without reference to principles of conflict of laws.
|
d.
|
This document, including any documents incorporated by reference, constitutes the entire Plan. In the event that one or more of the provisions of this Plan shall become unenforceable, the enforceability of the remaining provisions of this Plan shall not be affected.
|
METLIFE, INC.
|
||
By:
|
/s/ C. Robert Henrikson
|
|
|
C. Robert Henrikson
|
|
|
Chairman, President and Chief Executive Officer
|
/s/ Gwenn L. Carr
|
Gwenn L. Carr
|
Senior Vice President and Secretary
|
METROPOLITAN LIFE INSURANCE COMPANY
|
|
|
|
By:
|
/s/ Margery Brittain
|
|
Margery Brittain, Plan Administrator
|
ATTEST:
|
|
/s/ Bonita Haskins
|
1.
|
Part I, Article 2, Section 2.2 (c) of the Plan is hereby amended effective January 1, 2008, to read as follows:
|
2.
|
Part I Article 4, Section 4.3 of the Plan is hereby amended by adding a new subsection (c) to read as follows:
|
3.
|
Part I, Article 4, Section 4.7, the first paragraph of the Section, preceding subsection (a) is hereby amended as follows:
|
4.
|
Part I, Article 4A, Section 4A.3, the second paragraph is hereby amended to read as follows:
|
METROPOLITAN LIFE INSURANCE COMPANY
|
|
|
|
By:
|
/s/ Margery Brittain
|
|
Margery Brittain, Plan Administrator
|
ATTEST:
|
|
/s/ Bonita Haskins
|
|
Years Ended December 31,
|
||||||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
||||||||||
Income (loss) from continuing operations before provision for income tax
|
$
|
4,052
|
|
|
$
|
1,442
|
|
|
$
|
9,184
|
|
|
$
|
3,729
|
|
|
$
|
(4,618
|
)
|
Less: Undistributed income (loss) from equity investees
|
587
|
|
|
377
|
|
|
180
|
|
|
424
|
|
|
(1,473
|
)
|
|||||
Adjusted earnings before fixed charges (1)
|
$
|
3,465
|
|
|
$
|
1,065
|
|
|
$
|
9,004
|
|
|
$
|
3,305
|
|
|
$
|
(3,145
|
)
|
Add: Fixed charges
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and debt issue costs (2)
|
1,352
|
|
|
1,389
|
|
|
1,666
|
|
|
1,565
|
|
|
1,083
|
|
|||||
Estimated interest component of rent expense
|
32
|
|
|
28
|
|
|
34
|
|
|
50
|
|
|
74
|
|
|||||
Interest credited to bank deposits
|
2
|
|
|
78
|
|
|
95
|
|
|
137
|
|
|
163
|
|
|||||
Interest credited to policyholder account balances
|
8,179
|
|
|
7,729
|
|
|
5,603
|
|
|
4,919
|
|
|
4,845
|
|
|||||
Total fixed charges
|
$
|
9,565
|
|
|
$
|
9,224
|
|
|
$
|
7,398
|
|
|
$
|
6,671
|
|
|
$
|
6,165
|
|
Preferred stock dividends (3)
|
146
|
|
|
134
|
|
|
385
|
|
|
173
|
|
|
225
|
|
|||||
Total fixed charges plus preferred stock dividends
|
$
|
9,711
|
|
|
$
|
9,358
|
|
|
$
|
7,783
|
|
|
$
|
6,844
|
|
|
$
|
6,390
|
|
Total earnings and fixed charges
|
$
|
13,030
|
|
|
$
|
10,289
|
|
|
$
|
16,402
|
|
|
$
|
9,976
|
|
|
$
|
3,020
|
|
Ratio of earnings to fixed charges (1)
|
1.36
|
|
|
1.12
|
|
|
2.22
|
|
|
1.50
|
|
|
—
|
|
|||||
Total earnings including fixed charges and preferred stock dividends
|
$
|
13,176
|
|
|
$
|
10,423
|
|
|
$
|
16,787
|
|
|
$
|
10,149
|
|
|
$
|
3,245
|
|
Ratio of earnings to fixed charges and preferred stock dividends (1)
|
1.36
|
|
|
1.11
|
|
|
2.16
|
|
|
1.48
|
|
|
—
|
|
(1)
|
Earnings were insufficient to cover fixed charges at a 1:1 ratio by $3,145 million for the year ended December 31, 2009, primarily due to increased derivatives losses on freestanding derivatives, partially offset by gains on embedded derivatives.
|
(2)
|
Interest costs include
$122 million, $163
million and $324 million related to variable interest entities for the years ended December 2013, 2012 and 2011, respectively. Excluding these costs would result in a ratio of earnings to fixed charges and ratio of earnings to fixed charges including preferred stock dividends of 1.37 and 1.36, 1.12 and 1.12, and 2.49 and 2.40, for the years ended December 2013, 2012 and 2011, respectively.
|
(3)
|
For the year ended December 31, 2011, preferred stock dividends includes the redemption premium of $211 million associated with the convertible preferred stock repurchased and canceled in March 2011.
|
1.
|
23RD STREET INVESTMENTS, INC. (DE)
|
2.
|
85 BROAD STREET LLC (DE)
|
3.
|
85 BROAD STREET MEZZANINE LLC (DE)
|
4.
|
334 MADISON EURO INVESTMENTS, INC. (DE)
|
5.
|
465 N. PARK DRIVE, LLC (DE)
|
6.
|
500 GRANT STREET ASSOCIATES LIMITED PARTNERSHIP (CT)
|
7.
|
500 GRANT STREET GP LLC (DE)
|
8.
|
1201 TAB MANAGER, LLC (DE)
|
9.
|
1320 GP LLC (DE)
|
10.
|
1320 OWNER LP (DE)
|
11.
|
1320 VENTURE LLC (DE)
|
12.
|
1900 MCKINNEY PROPERTIES, LP (DE)
|
13.
|
10420 MCKINLEY PARTNERS, LP(DE)
|
14.
|
AFP GENESIS ADMINISTRADORA DE FONDOS Y FIDECOMISOS S.A. (ECUADOR)
|
15.
|
AFP PROVIDA S.A. (CHILE)
|
16.
|
AGENVITA S.R.L.(ITALY)
|
17.
|
ALICO BULGARIA ZHIVOTOZASTRAHOVAT ELNO DRUZHESTVO EAD (BULGARIA)
|
18.
|
ALICO EUROPEAN HOLDINGS LIMITED (IRELAND)
|
19.
|
ALICO FUNDS CENTRAL EUROPE SPRAV. SPOL., A.S.(SLOVAKIA)
|
20.
|
ALICO HELLAS SINGLE MEMBER LIMITED LIABILITY COMPANY (GREECE)
|
21.
|
ALICO MANAGEMENT SERVICES LIMITED (UK)
|
22.
|
ALICO OPERATIONS, INC. (DE)
|
23.
|
ALICO SERVICES CENTRAL EUROPE S.R.O.(SLOVAKIA)
|
24.
|
ALICO SOCIETATE de ADMINISTRARE a UNUI FOND de PENSII ADMINISTRAT PRIVAT S.A. (ROMANIA)
|
25.
|
ALICO TRUSTEES UK LIMITED (UK)
|
26.
|
ALPHA PROPERTIES, INC. (US)
|
27.
|
ALTERNATIVE FUEL I, LLC (DE)
|
28.
|
AMERICAN LIFE INSURANCE COMPANY (DE)
|
29.
|
AMERICAN LIFE INSURANCE COMPANY (CY) LIMITED (CYPRUS)
|
30.
|
AMPLICO LIFE-FIRST AMERICAN POLISH LIFE INSURANCE & REINSURANCE COMPANY, S.A.(POLAND)
|
31.
|
AMPLICO POWSZECHNE TOWARTZYSTWO EMERYTALNE S.A.(POLAND)
|
32.
|
AMPLICO SERVICES SP Z.O.O.(POLAND)
|
33.
|
AMPLICO TOWARTZYSTWO FUNDUSZY INWESTYCYJNYCH S.A. (POLAND)
|
34.
|
APF SOCIETATE DE ADMINISTRARE A FONDURILOR DE PENSII PRIVATE (ROMANIA)
|
35.
|
ARDREY KELL TOWNHOMES, LLC (DE)
|
36.
|
ASHTON JUDICIARY SQUARE, LLC (DE)
|
37.
|
ASHTON SOUTHEND GP, LLC (DE)
|
38.
|
BEST MARKET S.A. (ARGENTINA)
|
39.
|
BETA PROPERTIES, INC. (DE)
|
40.
|
BOLPYR S.A. (URUGUAY)
|
41.
|
BORDERLAND INVESTMENT LIMITED (DE)
|
42.
|
BOULEVARD RESIDENTIAL, LLC (DE)
|
43.
|
CC HOLDCO MANAGER, LLC (DE)
|
44.
|
CHESTNUT FLATS WIND, LLC (DE)
|
45.
|
CITYPOINT HOLDINGS II LIMITED (UK)
|
46.
|
COMMUNICATION ONE KABUSHIKI KAISHA (JAPAN)
|
47.
|
COMPANIA INVERSORA METLIFE S.A. (ARGENTINA)
|
48.
|
CONVENT STATION EURO INVESTMENTS FOUR COMPANY (UK)
|
49.
|
CORPORATE REAL ESTATE HOLDINGS, LLC (DE)
|
50.
|
CORRIGAN TLP LLC (DE)
|
51.
|
COVA LIFE MANAGEMENT COMPANY (DE)
|
52.
|
CRB CO., INC. (MA)
|
53.
|
DELAWARE AMERICAN LIFE INSURANCE COMPANY (DE)
|
54.
|
DELTA PROPERTIES JAPAN, INC. (DE)
|
55.
|
ECONOMY FIRE & CASUALTY COMPANY (IL)
|
56.
|
ECONOMY PREFERRED INSURANCE COMPANY (IL)
|
57.
|
ECONOMY PREMIER ASSURANCE COMPANY (IL)
|
58.
|
EL CONQUISTADOR MAH II LLC (DE)
|
59.
|
ENTERPRISE GENERAL INSURANCE AGENCY, INC. (DE)
|
60.
|
ENTRECAP REAL ESTATE II LLC (DE)
|
61.
|
EPSILON PROPERTIES JAPAN, INC. (DE)
|
62.
|
EURO CL INVESTMENTS, LLC (DE)
|
63.
|
EURO TI INVESTMENTS LLC (DE)
|
64.
|
EURO TL INVESTMENTS LLC (DE)
|
65.
|
EXCELENCIA OPERATIVA Y TECNOLOGICA, S.A de C.V. (MEXICO)
|
66.
|
EXETER REASSURANCE COMPANY, LTD. (CAYMAN ISLANDS)
|
67.
|
FEDERAL FLOOD CERTIFICATION LLC (TX)
|
68.
|
FINANCIAL LEARNING KABUSHIKI KAISHA (JAPAN)
|
69.
|
FIRST HUNGARIAN- AMERICAN INSURANCE AGENCY LIMITED (HUNGARY)
|
70.
|
FIRST METLIFE INVESTORS INSURANCE COMPANY (NY)
|
71.
|
FUNDACION METLIFE MEXICO, A.C. (MEXICO)
|
72.
|
GALIC HOLDINGS LLC (DE)
|
73.
|
GENERAL AMERICAN LIFE INSURANCE COMPANY (MO)
|
74.
|
GLOBAL PROPERTIES, INC. (DE)
|
75.
|
GREATER SANDHILL I, LLC (DE)
|
76.
|
GREENWICH STREET CAPITAL OFFSHORE FUND, LTD (VIRGIN ISLANDS)
|
77.
|
GREENWICH STREET INVESTMENTS, L.L.C. (DE)
|
78.
|
GREENWICH STREET INVESTMENTS, L.P. (DE)
|
79.
|
HASKELL EAST VILLAGE, LLC (DE)
|
80.
|
HEADLAND PROPERTIES ASSOCIATES (CA)
|
81.
|
HEADLAND-PACIFIC PALISADES, LLC (CA)
|
82.
|
HOUSING FUND MANAGER, LLC (DE)
|
83.
|
HPZ ASSETS LLC (DE)
|
84.
|
HYATT LEGAL PLANS OF FLORIDA, INC. (FL)
|
85.
|
HYATT LEGAL PLANS, INC. (DE)
|
86.
|
INTERNATIONAL INVESTMENT HOLDING COMPANY LIMITED (RUSSIA)
|
87.
|
INTERNATIONAL TECHNICAL AND ADVISORY SERVICES LIMITED (DE)
|
88.
|
INVERSIONES METLIFE HOLDCO DOS LIMITADA (CHILE)
|
89.
|
INVERSIONES METLIFE HOLDCO TRES LIMITADA (CHILE)
|
90.
|
INVERSIONES PREVISIONALES S.A. (CHILE)
|
91.
|
IRIS PROPERTIES, INC. (DE)
|
92.
|
KAPPA PROPERTIES JAPAN, INC. (DE)
|
93.
|
LEGAGROUP S.A. (CHILE)
|
94.
|
LEGAL CHILE S.A. (CHILE)
|
95.
|
LONG ISLAND SOLAR FARM LLC (DE)
|
96.
|
MANSELL OFFICE LLC (DE)
|
97.
|
MANSELL RETAIL LLC (DE)
|
98.
|
MARKETPLACE RESIDENCES, LLC (DE)
|
99.
|
MET II OFFICE LLC (FL)
|
100.
|
MET II OFFICE MEZZANINE, LLC (FL)
|
101.
|
MET1 SIEFORE, S.A. de C.V. (MEXICO)
|
102.
|
MET2 SIEFORE, S.A. de C.V. (MEXICO)
|
103.
|
MET3 SIEFORE BASICA, S.A. de C.V. (MEXICO)
|
104.
|
MET4 SIEFORE, S.A. de C.V. (MEXICO)
|
105.
|
MET5 SIEFORE, S.A. de C.V. (MEXICO)
|
106.
|
META SIEFORE ADICIONAL, S.A. de C.V. (MEXICO)
|
107.
|
METLIFE 425 MKT MEMBER, LLC (DE)
|
108.
|
METLIFE 1201 TAB MEMBER, LLC (DE)
|
109.
|
METLIFE ADMINISTRADORA DE FUNDOS MULTIPATROCINADOS LTDA. (BRAZIL)
|
110.
|
METLIFE ADVISERS, LLC (MA)
|
111.
|
METLIFE AFORE, S.A. DE C.V. (MEXICO)
|
112.
|
METLIFE AKCIONARSKO DRUSTVO za ZIVOTNO OSIGURANJE (SERBIA)
|
113.
|
METLIFE ALICO LIFE INSURANCE S.A. (GREECE)
|
114.
|
METLIFE ALICO LIFE INSURANCE K.K. (JAPAN)
|
115.
|
METLIFE AMSLICO POIST’OVNA, A.S.(SLOVAKIA)
|
116.
|
METLIFE ASIA PACIFIC LIMITED (HONG KONG)
|
117.
|
METLIFE ASSET MANAGEMENT CORP. (JAPAN)
|
118.
|
METLIFE ASSOCIATES LLC (DE)
|
119.
|
METLIFE ASSURANCE LIMITED (UK)
|
120.
|
METLIFE AUTO & HOME INSURANCE AGENCY, INC. (RI)
|
121.
|
METLIFE BIZTOSITO ZRT. (HUNGARY)
|
122.
|
METLIFE CABO HILTON MEMBER, LLC (DE)
|
123.
|
METLIFE CAMINO RAMON MEMBER, LLC (DE)
|
124.
|
METLIFE CANADIAN PROPERTY VENTURES LLC (NY)
|
125.
|
METLIFE CAPITAL CREDIT L.P. (DE)
|
126.
|
METLIFE CAPITAL TRUST IV (DE)
|
127.
|
METLIFE CAPITAL TRUST X (DE)
|
128.
|
METLIFE CAPITAL, LIMITED PARTNERSHIP (DE)
|
129.
|
METLIFE CB W/A, LLC (DE)
|
130.
|
METLIFE CC MEMBER, LLC (DE)
|
131.
|
MELIFE CHILE ACQUISITION CO. S.A. (CHILE)
|
132.
|
METLIFE CHILE ADMINISTRADORA DE MUTUOS HIPOTECARIOS S.A. (CHILE)
|
133.
|
METLIFE CHILE INVERSIONES LIMITADA (CHILE)
|
134.
|
METLIFE CHILE SEGUROS DE VIDA S.A. (CHILE)
|
135.
|
METLIFE CHILE SEGUROS GENERALES S.A. (CHILE)
|
136.
|
METLIFE CONSUMER SERVICES, INC. (DE)
|
137.
|
METLIFE CORE PROPERTY FUND GP, LLC (DE)
|
138.
|
METLIFE CREDIT CORP.(DE)
|
139.
|
METLIFE DIRECT CO.,LTD.(JAPAN)
|
140.
|
METLIFE EMEKLILIK DE HAYAT A.S. (TURKEY)
|
141.
|
METLIFE EU HOLDING COMPANY LIMITED (IRELAND)
|
142.
|
METLIFE EUROPE INSURANCE LIMITED (IRELAND)
|
143.
|
METLIFE EUROPE LIMITED (IRELAND)
|
144.
|
METLIFE EUROPE SERVICES LIMITED (IRELAND)
|
145.
|
METLIFE EUROPEAN HOLDINGS, LLC. (DE)
|
146.
|
METLIFE EXCHANGE TRUST I (DE)
|
147.
|
METLIFE FUNDING, INC. (DE)
|
148.
|
METLIFE GENERAL INSURANCE LIMITED (AUSTRALIA)
|
149.
|
METLIFE GLOBAL HOLDING COMPANY I GmbH (SWISS I) (SWITZERLAND)
|
150.
|
METLIFE GLOBAL HOLDING COMPANY II GmbH (SWISS II) (SWITZERLAND)
|
151.
|
METLIFE GLOBAL HOLDINGS CORPORATION S.A. De C.V.(MEXICO)
|
152.
|
METLIFE GLOBAL OPERATIONS SUPPORT CENTER PRIVATE LIMITED(INDIA)
|
153.
|
METLIFE GLOBAL, INC. (DE)
|
154.
|
METLIFE GLOBAL BENEFITS, LTD. (CAYMAN ISLANDS)
|
155.
|
METLIFE GREENSTONE SOUTHEAST VENTURES, LLC (DE)
|
156.
|
METLIFE GROUP, INC. (NY)
|
157.
|
METLIFE HEALTH PLANS, INC. (DE)
|
158.
|
METLIFE HOLDINGS, INC. (DE)
|
159.
|
METLIFE HOLDINGS (CYPRUS) LIMITED (CYPRUS)
|
160.
|
METLIFE HOME LOANS LLC (DE)
|
161.
|
METLIFE INSURANCE AND INVESTMENT TRUST (AUSTRALIA)
|
162.
|
METLIFE INSURANCE COMPANY OF CONNECTICUT (CT)
|
163.
|
METLIFE INSURANCE LIMITED (AUSTRALIA)
|
164.
|
METLIFE INSURANCE LIMITED (UNITED KINGDOM)
|
165.
|
METLIFE INSURANCE S.A./NV (BELGIUM)
|
166.
|
METLIFE INTERNATIONAL HOLDINGS, INC. (DE)
|
167.
|
METLIFE INTERNATIONAL LIMITED, LLC (DE)
|
168.
|
METLIFE INTERNATIONAL PE FUND I GP, LLC (DE)
|
169.
|
METLIFE INTERNATIONAL PE FUND I, LP (Cayman Islands)
|
170.
|
METLIFE INVESTMENTS ASIA LIMITED (HONG KONG)
|
171.
|
METLIFE INVESTMENT FUNDS SERVICES LLC (NJ)
|
172.
|
METLIFE INVESTMENTS LIMITED (UNITED KINGDOM)
|
173.
|
METLIFE INVESTMENT MANAGEMENT, LLC (DE)
|
174.
|
METLIFE INVESTMENTS PTY LIMITED (AUSTRALIA)
|
175.
|
METLIFE INVESTORS DISTRIBUTION COMPANY (MO)
|
176.
|
METLIFE INVESTORS GROUP, INC. (DE)
|
177.
|
METLIFE INVESTORS INSURANCE COMPANY (MO)
|
178.
|
METLIFE INVESTORS USA INSURANCE COMPANY (DE)
|
179.
|
METLIFE IRELAND HOLDINGS ONE LIMITED (IRELAND)
|
180.
|
METLIFE IRELAND TREASURY LIMITED (IRELAND)
|
181.
|
METLIFE LATIN AMERICA ASESORIAS E INVERSIONES LIMITADA (CHILE)
|
182.
|
METLIFE LHH MEMBER, LLC (DE)
|
183.
|
METLIFE LIMITED (HONG KONG)
|
184.
|
METLIFE LIMITED (UNITED KINGDOM)
|
185.
|
METLIFE LOAN ASSET MANAGEMENT LLC (DE)
|
186.
|
METLIFE MALL VENTURES LIMITED PARTNERSHIP (DE)
|
187.
|
METLIFE MAS, S.A. DE C.V. (MEXICO)
|
188.
|
METLIFE MEXICO CARES, S.A. DE C.V. (MEXICO)
|
189.
|
METLIFE MEXICO S.A. (MEXICO)
|
190.
|
METLIFE MEXICO SERVICIOS, S.A. DE C.V. (MEXICO)
|
191.
|
METLIFE OFC MEMBER, LLC (DE)
|
192.
|
METLIFE PENSIONES MEXICO S.A. (MEXICO)
|
193.
|
METLIFE PENSION TRUSTEES LIMITED (UK)
|
194.
|
METLIFE PLANOS ODONTOLOGICOS LTDA. (BRAZIL)
|
195.
|
METLIFE POJISTOVNA A.S. (CZECH REPUBLIC)
|
196.
|
METLIFE PRIVATE EQUITY HOLDINGS, LLC (DE)
|
197.
|
METLIFE PROPERTIES VENTURES, LLC (DE)
|
198.
|
METLIFE PROPERTY VENTURES CANADA ULC (CANADA)
|
199.
|
METLIFE RC SF MEMBER, LLC (DE)
|
200.
|
METLIFE REAL ESTATE CAYMAN COMPANY (CAYMAN ISLANDS)
|
201.
|
METLIFE REINSURANCE COMPANY OF CHARLESTON (SC)
|
202.
|
METLIFE REINSURANCE COMPANY OF DELAWARE (DE)
|
203.
|
METLIFE REINSURANCE COMPANY OF SOUTH CAROLINA (SC)
|
204.
|
METLIFE REINSURANCE COMPANY OF VERMONT (VT)
|
205.
|
METLIFE RENEWABLES HOLDING, LLC (DE)
|
206.
|
METLIFE RETIREMENT SERVICES LLC (NJ)
|
207.
|
METLIFE SAENGMYOUNG INSURANCE COMPANY LTD. (SOUTH KOREA)- (also known as MetLife Insurance Company of Korea Limited)
|
208.
|
METLIFE SECURITIES, INC. (DE)
|
209.
|
METLIFE SEGUROS DE RETIRO S.A. (ARGENTINA)
|
210.
|
METLIFE SEGUROS S.A. (URUGUAY)
|
211.
|
METLIFE SEGUROS S.A. (ARGENTINA)
|
212.
|
METLIFE SERVICES AND SOLUTIONS, LLC (DE)
|
213.
|
METLIFE SERVICES EAST PRIVATE LIMITED (INDIA)
|
214.
|
METLIFE SERVICES EEIG (IRELAND)
|
215.
|
METLIFE SERVICES LIMITED (UNITED KINGDOM)
|
216.
|
METLIFE SERVICES, SOCIEDAD LIMITADA (SPAIN)
|
217.
|
METLIFE SERVICIOS S.A. (ARGENTINA)
|
218.
|
METLIFE SOLUTIONS PTE. LTD. (SINGAPORE)
|
219.
|
METLIFE SOLUTIONS S.A.S. (FRANCE)
|
220.
|
METLIFE STANDBY I, LLC (DE)
|
221.
|
METLIFE THR INVESTOR, LLC (DE)
|
222.
|
METLIFE TOWER RESOURCES GROUP, INC. (DE)
|
223.
|
METLIFE WORLDWIDE HOLDINGS, INC. (DE)
|
224.
|
METPARK FUNDING, INC. (DE)
|
225.
|
METROPOLITAN CASUALTY INSURANCE COMPANY (RI)
|
226.
|
METROPOLITAN CONNECTICUT PROPERTIES VENTURES, LLC (DE)
|
227.
|
METROPOLITAN DIRECT PROPERTY AND CASUALTY INSURANCE COMPANY (RI)
|
228.
|
METROPOLITAN GENERAL INSURANCE COMPANY (RI)
|
229.
|
METROPOLITAN GLOBAL MANAGEMENT, LLC. (DE/ IRELAND)
|
230.
|
METROPOLITAN GROUP PROPERTY AND CASUALTY INSURANCE COMPANY (RI)
|
231.
|
METROPOLITAN LIFE ASIGURARI S.A. (ROMANIA)
|
232.
|
METROPOLITAN LIFE INSURANCE COMPANY (NY)
|
233.
|
METROPOLITAN LIFE INSURANCE COMPANY OF HONG KONG LIMITED (HONG KONG)
|
234.
|
METROPOLITAN LIFE SEGUROS E PREVIDÊNCIA PRIVADA S.A. (BRAZIL)
|
235.
|
METROPOLITAN LLOYDS, INC. (TX)
|
236.
|
METROPOLITAN PROPERTY AND CASUALTY INSURANCE COMPANY (RI)
|
237.
|
METROPOLITAN REINSURANCE COMPANY (U.K.) LIMITED (UNITED KINGDOM)
|
238.
|
METROPOLITAN TOWER LIFE INSURANCE COMPANY (DE)
|
239.
|
METROPOLITAN TOWER REALTY COMPANY, INC. (DE)
|
240.
|
METROPOLITAN TRAINING & CONSULTING S.R.L. (ROMANIA)
|
241.
|
MEX DF PROPERTIES, LLC (DE)
|
242.
|
MIDTOWN HEIGHTS, LLC (DE)
|
243.
|
MISSOURI REINSURANCE, INC. (CAYMAN ISLANDS)
|
244.
|
ML-AI METLIFE MEMBER 1, LLC (DE)
|
245.
|
MLA COMERCIAL, S.A. DE C.V. (MEXICO)
|
246.
|
MLA SERVICIOS, S.A. DE C.V. (MEXICO)
|
247.
|
ML BRIDGESIDE APARTMENTS LLC (DE)
|
248.
|
ML CAPACITACION COMERCIAL S.A. DE C.V. (MEXICO)
|
249.
|
ML DOLPHIN GP, LLC (DE)
|
250.
|
ML DOLPHIN MEZZ, LLC (DE)
|
251.
|
ML SOUTHMORE, LLC (DE)
|
252.
|
MLGP LAKESIDE, LLC (DE)
|
253.
|
MLIC ASSET HOLDINGS II LLC (DE)
|
254.
|
MLIC ASSET HOLDINGS LLC (DE)
|
255.
|
MLIC CB HOLDINGS LLC (DE)
|
256.
|
ML SWAN GP, LLC (DE)
|
257.
|
ML SWAN MEZZ, LLC (DE)
|
258.
|
ML TERRACES, LLC (DE)
|
259.
|
MSV IRVINE PROPERTY, LLC (DE)
|
260.
|
MTC FUND I, LLC (DE)
|
261.
|
MTC FUND II, LLC (DE)
|
262.
|
MTC FUND III, LLC (DE)
|
263.
|
MTL LEASING, LLC (DE)
|
264.
|
NAGASAKI OPERATION YUGEN KAISHA (JAPAN)
|
265.
|
NATILOPORTEM HOLDINGS, INC. (DE)
|
266.
|
NEW ENGLAND LIFE INSURANCE COMPANY (MA)
|
267.
|
NEW ENGLAND SECURITIES CORPORATION (MA)
|
268.
|
NEWBURY INSURANCE COMPANY, LIMITED (BERMUDA)
|
269.
|
OCONEE GOLF COMPANY, LLC (DE)
|
270.
|
OCONEE HOTEL COMPANY, LLC (DE)
|
271.
|
OCONEE LAND COMPANY, LLC (DE)
|
272.
|
OCONEE LAND DEVELOPMENT COMPANY, LLC (DE)
|
273.
|
OCONEE MARINA COMPANY, LLC (DE)
|
274.
|
OMI MLIC INVESTMENTS LIMITED (CAYMAN ISLANDS)
|
275.
|
ONE FINANCIAL PLACE CORPORATION (DE)
|
276.
|
PARA-MET PLAZA ASSOCIATES (FL)
|
277.
|
PARK TWENTY THREE INVESTMENTS COMPANY (UNITED KINGDOM)
|
278.
|
PJSC ALICO UKRAINE (UKRAINE)
|
279.
|
PLAZA DRIVE PROPERTIES LLC (DE)
|
280.
|
PLAZA LLC (CT)
|
281.
|
PREFCO DIX-HUIT LLC (CT)
|
282.
|
PREFCO FOURTEEN LIMITED PARTNERSHIP (CT)
|
283.
|
PREFCO IX REALTY LLC (CT)
|
284.
|
PREFCO TEN LIMITED PARTNERSHIP (CT)
|
285.
|
PREFCO TWENTY LIMITED PARTNERSHIP (CT)
|
286.
|
PREFCO VINGT LLC (CT)
|
287.
|
PREFCO X HOLDINGS LLC (CT)
|
288.
|
PREFCO XIV HOLDINGS LLC (CT)
|
289.
|
PROVIDA INTERNACIONAL S.A. (CHILE)
|
290.
|
RIVERWAY RESIDENTIAL, LP (DE)
|
291.
|
SAFEGUARD HEALTH PLANS, INC. (CA)
|
292.
|
SAFEGUARD HEALTH PLANS, INC. (FL)
|
293.
|
SAFEGUARD HEALTH PLANS, INC. (NV)
|
294.
|
SAFEGUARD HEALTH PLANS, INC. (TX)
|
295.
|
SAFEGUARD HEATLH ENTERPRISES, INC. (DE)
|
296.
|
SAFEHEALTH LIFE INSURANCE COMPANY (CA)
|
297.
|
SANDPIPER COVE ASSOCIATES, LLC (DE)
|
298.
|
ST. JAMES FLEET INVESTMENTS TWO LIMITED (CAYMAN ISLANDS)
|
299.
|
TEN PARK SPC (CAYMAN ISLANDS)
|
300.
|
THE BUILDING AT 575 FIFTH AVENUE MEZZANINE LLC (DE)
|
301.
|
THE BUILDING AT 575 FIFTH LLC (DE)
|
302.
|
THE DIRECT CALL CENTRE PTY LIMITED (AUSTRALIA)
|
303.
|
THE PROSPECT COMPANY (DE)
|
304.
|
THE WORTHINGTON SERIES TRUST (DE)
|
305.
|
TIC EUROPEAN REAL ESTATE LP, LLC (DE)
|
306.
|
TLA HOLDINGS II LLC (DE)
|
307.
|
TLA HOLDINGS III LLC (DE)
|
308.
|
TLA HOLDINGS LLC (DE)
|
309.
|
TRAL & CO. (CT)
|
310.
|
TRANSMOUNTAIN LAND & LIVESTOCK COMPANY (MT)
|
311.
|
TRAVELERS INTERNATIONAL INVESTMENTS LTD. (CAYMAN ISLANDS)
|
312.
|
TREMONT PARTNERS, LP (DE)
|
313.
|
WFP 1000 HOLDING COMPANY GP, LLC (DE)
|
314.
|
WHITE OAK ROYALTY COMPANY (OK)
|
315.
|
ZAO ALICO INSURANCE COMPANY (RUSSIA)
|
316.
|
ZAO MASTER D (RUSSIA)
|
317.
|
ZEUS ADMINISTRATION SERVICES LIMITED (UK)
|
318.
|
1201 TAB OWNER, LLC (DE) 50%
|
319.
|
ALICO MUTUAL FUND MANAGEMENT COMPANY (GREECE) 90%
|
320.
|
ALICO PROPERTIES, INC. (DE) 51%
|
321.
|
AMERICAN LIFE INSURANCE COMPANY LTD. (PAKISTAN) 81.96%
|
322.
|
DEWEY SQUARE TOWER ASSOCIATES, LLC (MA) 52.5%
|
323.
|
HMS MASTER LIMITED PARTNERSHIP (DE) 60%
|
324.
|
HMS SOUTHPARK RESIDENTIAL LLC (DE) 60%
|
325.
|
MCP 7 RIVERWAY, LLC (DE) 20%
|
326.
|
MCP 100 CONGRESS, LLC (DE) 20%
|
327.
|
MCP 550 WEST WASHINGTON, LLC (DE) 20%
|
328.
|
MCP 1900 MCKINNEY, LLC (DE) 20%
|
329.
|
MCP 4600 SOUTH SYRACUSE, LLC (DE) 20%
|
330.
|
MCP ASHTON SOUTH END, LLC (DE) 20%
|
331.
|
MCP ENV CHICAGO, LLC (DE) 20%
|
332.
|
MCP LODGE AT LAKECREST, LLC (DE) 20%
|
333.
|
MCP MAIN STREET VILLAGE, LLC (DE) 20%
|
334.
|
MCP PARAGON POINT, LLC (DE) 20%
|
335.
|
MCP THE PALMS AT DORAL, LLC (DE) 20%
|
336.
|
MCP WATERFORD ATRIUM, LLC (DE) 20%
|
337.
|
MCP SOCAL INDUSTRIAL – ANAHEIM, LLC (DE) 20%
|
338.
|
MCP SOCAL INDUSTRIAL – BERNADO, LLC (DE) 20%
|
339.
|
MCP SOCAL INDUSTRIAL – CANYON, LLC (DE) 20%
|
340.
|
MCP SOCAL INDUSTRIAL – CONCOURSE, LLC (DE) 20%
|
341.
|
MCP SOCAL INDUSTRIAL – FULLERTON, LLC (DE) 20%
|
342.
|
MCP SOCAL INDUSTRIAL – KELLWOOD, LLC (DE) 20%
|
343.
|
MCP SOCAL INDUSTRIAL – LAX, LLC (DE) 20%
|
344.
|
MCP SOCAL INDUSTRIAL – LOKER, LLC (DE) 20%
|
345.
|
MCP SOCAL INDUSTRIAL – ONTARIO, LLC (DE) 20%
|
346.
|
MCP SOCAL INDUSTRIAL – REDONDO, LLC (DE) 20%
|
347.
|
MCP SOCAL INDUSTRIAL – SPRINGDALE, LLC (DE) 20%
|
348.
|
METLIFE COLOMBIA SEGUROS de VIDA S.A. (COLOMBIA) 94.989811%
|
349.
|
METLIFE CORE PROPERTY FUND, LP (DE)
|
350.
|
METLIFE CORE PROPERTY HOLDINGS, LLC (DE)
|
351.
|
METLIFE CORE PROPERTY REIT, LLC (DE)
|
352.
|
METROPOLITAN LLOYDS INSURANCE COMPANY OF TEXAS (TX)
|
353.
|
ML-AI 125 WACKER, LLC (DE) 51%
|
354.
|
ML-AI VENTURE 1, LLC (DE) 51%
|
355.
|
OFC BOSTON, LLC (DE) 52.5%
|
356.
|
OFC REIT, LLC (DE) 52.5%
|
357.
|
PHARAONIC AMERICAN LIFE INSURANCE COMPANY (EGYPT) 84.125%
|
358.
|
PILGRIM ALTERNATIVE INVESTMENTS OPPORTUNITY FUND III ASSOCIATES, LLC (DE) 67%
|
359.
|
PNB METLIFE INDIA INSURANCE COMPANY LIMITED (INDIA) (26%)
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Steven A. Kandarian
|
|
Steven A. Kandarian
|
|
Chairman, President and
Chief Executive Officer |
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
/s/ John C. R. Hele
|
|
John C. R. Hele
|
|
Executive Vice President and
|
|
Chief Financial Officer
|
|
/s/ Steven A. Kandarian
|
|
Steven A. Kandarian
|
|
Chairman, President and
Chief Executive Officer
|
|
/s/ John C. R. Hele
|
|
John C. R. Hele
|
|
Executive Vice President and
Chief Financial Officer |