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þ
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QUARTERLY 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
|
|
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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Large accelerated filer
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þ
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Accelerated filer
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¨
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Non-accelerated filer (Do not check if a smaller reporting company)
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¨
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Smaller reporting company
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¨
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Emerging growth company
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¨
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Page
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Item 1.
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Financial Statements (at September 30, 2017 (Unaudited) and December 31, 2016 and for the Three Months and Nine Months Ended September 30, 2017 and 2016 (Unaudited))
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 6.
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September 30, 2017
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December 31, 2016
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||||
Assets
|
|
|
|
|
||||
Investments:
|
|
|
|
|
||||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $286,684 and $271,701, respectively)
|
|
$
|
308,894
|
|
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$
|
289,563
|
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Equity securities available-for-sale, at estimated fair value (cost: $2,386 and $2,464, respectively)
|
|
2,776
|
|
|
2,894
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|
||
Fair value option securities, at estimated fair value (includes $7 and $8, respectively, relating to variable interest entities)
|
|
16,538
|
|
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13,923
|
|
||
Mortgage loans (net of valuation allowances of $316 and $304, respectively; includes $564 and $566, respectively, under the fair value option)
|
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68,057
|
|
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65,167
|
|
||
Policy loans
|
|
9,585
|
|
|
9,511
|
|
||
Real estate and real estate joint ventures (includes $61 and $59, respectively, of real estate held-for-sale)
|
|
9,486
|
|
|
8,891
|
|
||
Other limited partnership interests (includes $0 and $14, respectively, relating to variable interest entities)
|
|
5,501
|
|
|
5,136
|
|
||
Short-term investments, principally at estimated fair value
|
|
7,217
|
|
|
6,523
|
|
||
Other invested assets (includes $133 and $31, respectively, relating to variable interest entities)
|
|
17,652
|
|
|
19,303
|
|
||
Total investments
|
|
445,706
|
|
|
420,911
|
|
||
Cash and cash equivalents, principally at estimated fair value (includes $9 and $1, respectively, relating to variable interest entities)
|
|
13,023
|
|
|
12,651
|
|
||
Accrued investment income
|
|
3,692
|
|
|
3,308
|
|
||
Premiums, reinsurance and other receivables (includes $3 and $2, respectively, relating to variable interest entities)
|
|
18,588
|
|
|
15,445
|
|
||
Deferred policy acquisition costs and value of business acquired
|
|
18,399
|
|
|
17,590
|
|
||
Current income tax recoverable
|
|
3
|
|
|
20
|
|
||
Goodwill
|
|
9,556
|
|
|
9,220
|
|
||
Assets of disposed subsidiary
|
|
—
|
|
|
216,983
|
|
||
Other assets (includes $3 and $3, respectively, relating to variable interest entities)
|
|
8,149
|
|
|
7,058
|
|
||
Separate account assets
|
|
203,399
|
|
|
195,578
|
|
||
Total assets
|
|
$
|
720,515
|
|
|
$
|
898,764
|
|
Liabilities and Equity
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
||||
Future policy benefits
|
|
$
|
176,005
|
|
|
$
|
166,701
|
|
Policyholder account balances
|
|
182,513
|
|
|
173,168
|
|
||
Other policy-related balances
|
|
15,026
|
|
|
13,030
|
|
||
Policyholder dividends payable
|
|
730
|
|
|
696
|
|
||
Policyholder dividend obligation
|
|
2,201
|
|
|
1,931
|
|
||
Payables for collateral under securities loaned and other transactions
|
|
27,132
|
|
|
25,873
|
|
||
Short-term debt
|
|
214
|
|
|
242
|
|
||
Long-term debt (includes $6 and $12, respectively, at estimated fair value, relating to variable interest entities)
|
|
16,688
|
|
|
16,441
|
|
||
Collateral financing arrangement
|
|
1,220
|
|
|
1,274
|
|
||
Junior subordinated debt securities
|
|
3,144
|
|
|
3,169
|
|
||
Liabilities of disposed subsidiary
|
|
—
|
|
|
202,707
|
|
||
Deferred income tax liability
|
|
8,554
|
|
|
6,774
|
|
||
Other liabilities
|
|
26,745
|
|
|
23,700
|
|
||
Separate account liabilities
|
|
203,399
|
|
|
195,578
|
|
||
Total liabilities
|
|
663,571
|
|
|
831,284
|
|
||
Contingencies, Commitments and Guarantees (Note 14)
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|
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|
||||
Equity
|
|
|
|
|
||||
MetLife, Inc.’s stockholders’ equity:
|
|
|
|
|
||||
Preferred stock, par value $0.01 per share; $2,100 aggregate liquidation preference
|
|
—
|
|
|
—
|
|
||
Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,167,535,225 and 1,164,029,985 shares issued, respectively; 1,054,286,620 and 1,095,519,005 shares outstanding, respectively
|
|
12
|
|
|
12
|
|
||
Additional paid-in capital
|
|
31,066
|
|
|
30,944
|
|
||
Retained earnings
|
|
24,410
|
|
|
34,480
|
|
||
Treasury stock, at cost; 113,248,605 and 68,510,980 shares, respectively
|
|
(5,779
|
)
|
|
(3,474
|
)
|
||
Accumulated other comprehensive income (loss)
|
|
7,005
|
|
|
5,347
|
|
||
Total MetLife, Inc.’s stockholders’ equity
|
|
56,714
|
|
|
67,309
|
|
||
Noncontrolling interests
|
|
230
|
|
|
171
|
|
||
Total equity
|
|
56,944
|
|
|
67,480
|
|
||
Total liabilities and equity
|
|
$
|
720,515
|
|
|
$
|
898,764
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Premiums
|
$
|
10,876
|
|
|
$
|
9,839
|
|
|
$
|
29,421
|
|
|
$
|
27,956
|
|
Universal life and investment-type product policy fees
|
1,428
|
|
|
1,341
|
|
|
4,152
|
|
|
4,127
|
|
||||
Net investment income
|
4,295
|
|
|
4,609
|
|
|
12,909
|
|
|
12,527
|
|
||||
Other revenues
|
301
|
|
|
356
|
|
|
935
|
|
|
1,309
|
|
||||
Net investment gains (losses):
|
|
|
|
|
|
|
|
||||||||
Other-than-temporary impairments on fixed maturity securities
|
(6
|
)
|
|
(4
|
)
|
|
(8
|
)
|
|
(74
|
)
|
||||
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss)
|
1
|
|
|
(5
|
)
|
|
1
|
|
|
(9
|
)
|
||||
Other net investment gains (losses)
|
(601
|
)
|
|
240
|
|
|
(432
|
)
|
|
681
|
|
||||
Total net investment gains (losses)
|
(606
|
)
|
|
231
|
|
|
(439
|
)
|
|
598
|
|
||||
Net derivative gains (losses)
|
(190
|
)
|
|
(543
|
)
|
|
(663
|
)
|
|
1,438
|
|
||||
Total revenues
|
16,104
|
|
|
15,833
|
|
|
46,315
|
|
|
47,955
|
|
||||
Expenses
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims
|
10,645
|
|
|
9,612
|
|
|
28,923
|
|
|
27,394
|
|
||||
Interest credited to policyholder account balances
|
1,338
|
|
|
1,544
|
|
|
4,081
|
|
|
3,819
|
|
||||
Policyholder dividends
|
302
|
|
|
302
|
|
|
925
|
|
|
924
|
|
||||
Other expenses
|
3,318
|
|
|
3,216
|
|
|
9,904
|
|
|
10,296
|
|
||||
Total expenses
|
15,603
|
|
|
14,674
|
|
|
43,833
|
|
|
42,433
|
|
||||
Income (loss) from continuing operations before provision for income tax
|
501
|
|
|
1,159
|
|
|
2,482
|
|
|
5,522
|
|
||||
Provision for income tax expense (benefit)
|
(392
|
)
|
|
135
|
|
|
(148
|
)
|
|
1,253
|
|
||||
Income (loss) from continuing operations, net of income tax
|
893
|
|
|
1,024
|
|
|
2,630
|
|
|
4,269
|
|
||||
Income (loss) from discontinued operations, net of income tax
|
(968
|
)
|
|
(451
|
)
|
|
(989
|
)
|
|
(1,379
|
)
|
||||
Net income (loss)
|
(75
|
)
|
|
573
|
|
|
1,641
|
|
|
2,890
|
|
||||
Less: Net income (loss) attributable to noncontrolling interests
|
6
|
|
|
(4
|
)
|
|
12
|
|
|
2
|
|
||||
Net income (loss) attributable to MetLife, Inc.
|
(81
|
)
|
|
577
|
|
|
1,629
|
|
|
2,888
|
|
||||
Less: Preferred stock dividends
|
6
|
|
|
6
|
|
|
58
|
|
|
58
|
|
||||
Net income (loss) available to MetLife, Inc.’s common shareholders
|
$
|
(87
|
)
|
|
$
|
571
|
|
|
$
|
1,571
|
|
|
$
|
2,830
|
|
Comprehensive income (loss)
|
$
|
(182
|
)
|
|
$
|
(463
|
)
|
|
$
|
4,623
|
|
|
$
|
11,809
|
|
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of income tax
|
10
|
|
|
(3
|
)
|
|
16
|
|
|
97
|
|
||||
Comprehensive income (loss) attributable to MetLife, Inc.
|
$
|
(192
|
)
|
|
$
|
(460
|
)
|
|
$
|
4,607
|
|
|
$
|
11,712
|
|
Income (Loss) from Continuing Operations:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.83
|
|
|
$
|
0.93
|
|
|
$
|
2.38
|
|
|
$
|
3.82
|
|
Diluted
|
$
|
0.82
|
|
|
$
|
0.92
|
|
|
$
|
2.36
|
|
|
$
|
3.80
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.08
|
)
|
|
$
|
0.52
|
|
|
$
|
1.46
|
|
|
$
|
2.57
|
|
Diluted
|
$
|
(0.08
|
)
|
|
$
|
0.51
|
|
|
$
|
1.45
|
|
|
$
|
2.55
|
|
Cash dividends declared per common share
|
$
|
0.400
|
|
|
$
|
0.400
|
|
|
$
|
1.200
|
|
|
$
|
1.175
|
|
|
|
Preferred
Stock
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Treasury
Stock
at Cost
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
MetLife, Inc.’s
Stockholders’
Equity
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
||||||||||||||||||
Balance at December 31, 2016
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
30,944
|
|
|
$
|
34,480
|
|
|
$
|
(3,474
|
)
|
|
$
|
5,347
|
|
|
$
|
67,309
|
|
|
$
|
171
|
|
|
$
|
67,480
|
|
Treasury stock acquired in connection with share repurchases
|
|
|
|
|
|
|
|
|
|
|
(2,305
|
)
|
|
|
|
(2,305
|
)
|
|
|
|
(2,305
|
)
|
||||||||||||||
Stock-based compensation
|
|
|
|
|
|
122
|
|
|
|
|
|
|
|
|
122
|
|
|
|
|
122
|
|
|||||||||||||||
Dividends on preferred stock
|
|
|
|
|
|
|
|
(58
|
)
|
|
|
|
|
|
(58
|
)
|
|
|
|
(58
|
)
|
|||||||||||||||
Dividends on common stock
|
|
|
|
|
|
|
|
(1,295
|
)
|
|
|
|
|
|
(1,295
|
)
|
|
|
|
(1,295
|
)
|
|||||||||||||||
Distribution of Brighthouse (Note 3)
|
|
|
|
|
|
|
|
(10,346
|
)
|
|
|
|
(1,320
|
)
|
|
(11,666
|
)
|
|
|
|
(11,666
|
)
|
||||||||||||||
Change in equity of noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
43
|
|
|
43
|
|
|||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
1,629
|
|
|
|
|
|
|
1,629
|
|
|
12
|
|
|
1,641
|
|
||||||||||||||
Other comprehensive income (loss), net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
2,978
|
|
|
2,978
|
|
|
4
|
|
|
2,982
|
|
||||||||||||||
Balance at September 30, 2017
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
31,066
|
|
|
$
|
24,410
|
|
|
$
|
(5,779
|
)
|
|
$
|
7,005
|
|
|
$
|
56,714
|
|
|
$
|
230
|
|
|
$
|
56,944
|
|
|
|
Preferred
Stock
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Treasury
Stock
at Cost
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
MetLife, Inc.’s
Stockholders’
Equity
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
||||||||||||||||||
Balance at December 31, 2015
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
30,749
|
|
|
$
|
35,519
|
|
|
$
|
(3,102
|
)
|
|
$
|
4,771
|
|
|
$
|
67,949
|
|
|
$
|
470
|
|
|
$
|
68,419
|
|
Treasury stock acquired in connection with share repurchases
|
|
|
|
|
|
|
|
|
|
(70
|
)
|
|
|
|
(70
|
)
|
|
|
|
(70
|
)
|
|||||||||||||||
Stock-based compensation
|
|
|
|
|
|
48
|
|
|
|
|
|
|
|
|
48
|
|
|
|
|
48
|
|
|||||||||||||||
Dividends on preferred stock
|
|
|
|
|
|
|
|
(58
|
)
|
|
|
|
|
|
(58
|
)
|
|
|
|
(58
|
)
|
|||||||||||||||
Dividends on common stock
|
|
|
|
|
|
|
|
(1,295
|
)
|
|
|
|
|
|
(1,295
|
)
|
|
|
|
(1,295
|
)
|
|||||||||||||||
Change in equity of noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(387
|
)
|
|
(387
|
)
|
|||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
2,888
|
|
|
|
|
|
|
2,888
|
|
|
2
|
|
|
2,890
|
|
||||||||||||||
Other comprehensive income (loss), net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
8,824
|
|
|
8,824
|
|
|
95
|
|
|
8,919
|
|
||||||||||||||
Balance at September 30, 2016
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
30,797
|
|
|
$
|
37,054
|
|
|
$
|
(3,172
|
)
|
|
$
|
13,595
|
|
|
$
|
78,286
|
|
|
$
|
180
|
|
|
$
|
78,466
|
|
|
Nine Months
Ended September 30, |
||||||
|
2017
|
|
2016
|
||||
Net cash provided by (used in) operating activities
|
$
|
10,233
|
|
|
$
|
9,131
|
|
Cash flows from investing activities
|
|
|
|
||||
Sales, maturities and repayments of:
|
|
|
|
||||
Fixed maturity securities
|
66,544
|
|
|
101,614
|
|
||
Equity securities
|
904
|
|
|
1,019
|
|
||
Mortgage loans
|
6,721
|
|
|
10,518
|
|
||
Real estate and real estate joint ventures
|
689
|
|
|
323
|
|
||
Other limited partnership interests
|
882
|
|
|
1,025
|
|
||
Purchases of:
|
|
|
|
||||
Fixed maturity securities
|
(76,010
|
)
|
|
(108,418
|
)
|
||
Equity securities
|
(705
|
)
|
|
(802
|
)
|
||
Mortgage loans
|
(9,988
|
)
|
|
(14,686
|
)
|
||
Real estate and real estate joint ventures
|
(1,078
|
)
|
|
(958
|
)
|
||
Other limited partnership interests
|
(1,064
|
)
|
|
(806
|
)
|
||
Cash received in connection with freestanding derivatives
|
4,890
|
|
|
3,258
|
|
||
Cash paid in connection with freestanding derivatives
|
(7,404
|
)
|
|
(4,317
|
)
|
||
Cash disposed due to distribution of Brighthouse
|
(663
|
)
|
|
—
|
|
||
Sales of businesses, net of cash and cash equivalents disposed of $0 and $135, respectively
|
—
|
|
|
156
|
|
||
Purchases of businesses
|
(211
|
)
|
|
—
|
|
||
Purchases of investments in operating joint ventures
|
—
|
|
|
(39
|
)
|
||
Net change in policy loans
|
(16
|
)
|
|
201
|
|
||
Net change in short-term investments
|
(209
|
)
|
|
(2,232
|
)
|
||
Net change in other invested assets
|
(184
|
)
|
|
(58
|
)
|
||
Other, net
|
(256
|
)
|
|
(384
|
)
|
||
Net cash provided by (used in) investing activities
|
(17,158
|
)
|
|
(14,586
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Policyholder account balances:
|
|
|
|
||||
Deposits
|
67,565
|
|
|
65,225
|
|
||
Withdrawals
|
(62,233
|
)
|
|
(61,145
|
)
|
||
Net change in payables for collateral under securities loaned and other transactions
|
2,316
|
|
|
7,227
|
|
||
Long-term debt issued
|
3,657
|
|
|
—
|
|
||
Long-term debt repaid
|
(60
|
)
|
|
(1,273
|
)
|
||
Collateral financing arrangements repaid
|
(2,852
|
)
|
|
(55
|
)
|
||
Distribution of Brighthouse
|
(2,793
|
)
|
|
—
|
|
||
Financing element on certain derivative instruments and other derivative related transactions, net
|
(109
|
)
|
|
(336
|
)
|
||
Treasury stock acquired in connection with share repurchases
|
(2,305
|
)
|
|
(70
|
)
|
||
Dividends on preferred stock
|
(58
|
)
|
|
(58
|
)
|
||
Dividends on common stock
|
(1,295
|
)
|
|
(1,295
|
)
|
||
Other, net
|
(144
|
)
|
|
60
|
|
||
Net cash provided by (used in) financing activities
|
1,689
|
|
|
8,280
|
|
||
Effect of change in foreign currency exchange rates on cash and cash equivalents balances
|
382
|
|
|
306
|
|
||
Change in cash and cash equivalents
|
(4,854
|
)
|
|
3,131
|
|
||
Cash and cash equivalents, beginning of period
|
17,877
|
|
|
12,752
|
|
||
Cash and cash equivalents, end of period
|
$
|
13,023
|
|
|
$
|
15,883
|
|
Cash and cash equivalents, of disposed subsidiary, beginning of period
|
$
|
5,226
|
|
|
$
|
1,570
|
|
Cash and cash equivalents, of disposed subsidiary, end of period
|
$
|
—
|
|
|
$
|
2,825
|
|
Cash and cash equivalents, from continuing operations, beginning of period
|
$
|
12,651
|
|
|
$
|
11,182
|
|
Cash and cash equivalents, from continuing operations, end of period
|
$
|
13,023
|
|
|
$
|
13,058
|
|
|
Nine Months
Ended September 30, |
||||||
|
2017
|
|
2016
|
||||
Supplemental disclosures of cash flow information
|
|
|
|
||||
Net cash paid (received) for:
|
|
|
|
||||
Interest
|
$
|
806
|
|
|
$
|
875
|
|
Income tax
|
$
|
633
|
|
|
$
|
464
|
|
Non-cash transactions:
|
|
|
|
||||
Disposal of Brighthouse (See Note 3):
|
|
|
|
||||
Assets disposed
|
$
|
225,502
|
|
|
$
|
—
|
|
Liabilities disposed
|
(210,999
|
)
|
|
—
|
|
||
Net assets disposed
|
$
|
14,503
|
|
|
$
|
—
|
|
Cash disposed
|
(3,456
|
)
|
|
—
|
|
||
Net non-cash disposed
|
$
|
11,047
|
|
|
$
|
—
|
|
Fixed maturity securities received in connection with pension risk transfer transactions
|
$
|
—
|
|
|
$
|
985
|
|
Reduction of fixed maturity securities in connection with a reinsurance transaction
|
$
|
—
|
|
|
$
|
224
|
|
Deconsolidation of operating joint venture:
|
|
|
|
||||
Reduction of fixed maturity securities
|
$
|
—
|
|
|
$
|
917
|
|
Reduction of noncontrolling interests
|
$
|
—
|
|
|
$
|
373
|
|
•
|
The Group Benefits business offers insurance products and services which include life, dental, group short- and long-term disability, individual disability, accidental death and dismemberment, critical illness, vision and accident & health coverages, as well as prepaid legal plans. This business also sells administrative services-only arrangements to some employers.
|
•
|
The Retirement and Income Solutions business offers a broad range of annuity and investment products, including guaranteed interest contracts and other stable value products, institutional income annuities and separate account contracts for the investment management of defined benefit and defined contribution plan assets. This business also includes structured settlements and certain products to fund postretirement benefits and company-, bank- or trust-owned life insurance used to finance nonqualified benefit programs for executives.
|
•
|
The Property & Casualty business offers personal and commercial lines of property and casualty insurance, including private passenger automobile, homeowners’ and personal excess liability insurance. In addition, Property & Casualty offers small business owners property, liability and business interruption insurance.
|
•
|
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
guaranteed minimum income benefits (“GMIBs”) fees (“GMIB Fees”); and
|
•
|
Net investment income: (i) includes earned income on derivatives 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) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iii) excludes certain amounts related to contractholder-directed unit-linked investments and (iv) 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 earned income on derivatives and amortization of premium on derivatives that are hedges of policyholder account balances 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 deferred policy acquisition costs (“DAC”) and
value of business acquired (“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, integration and other costs.
|
|
|
Operating Results
|
|
|
|
|
||||||||||||||||||||||||||||||
Three Months Ended September 30, 2017
|
|
U.S.
|
|
Asia
|
|
Latin
America |
|
EMEA
|
|
MetLife
Holdings |
|
Corporate
& Other |
|
Total
|
|
Adjustments
|
|
Total
Consolidated
|
||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Premiums
|
|
$
|
6,987
|
|
|
$
|
1,696
|
|
|
$
|
701
|
|
|
$
|
527
|
|
|
$
|
989
|
|
|
$
|
13
|
|
|
$
|
10,913
|
|
|
$
|
(37
|
)
|
|
$
|
10,876
|
|
Universal life and investment-type product policy fees
|
|
247
|
|
|
458
|
|
|
229
|
|
|
109
|
|
|
349
|
|
|
—
|
|
|
1,392
|
|
|
36
|
|
|
1,428
|
|
|||||||||
Net investment income
|
|
1,602
|
|
|
762
|
|
|
299
|
|
|
77
|
|
|
1,390
|
|
|
26
|
|
|
4,156
|
|
|
139
|
|
|
4,295
|
|
|||||||||
Other revenues
|
|
197
|
|
|
11
|
|
|
7
|
|
|
(2
|
)
|
|
37
|
|
|
65
|
|
|
315
|
|
|
(14
|
)
|
|
301
|
|
|||||||||
Net investment gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(606
|
)
|
|
(606
|
)
|
|||||||||
Net derivative gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(190
|
)
|
|
(190
|
)
|
|||||||||
Total revenues
|
|
9,033
|
|
|
2,927
|
|
|
1,236
|
|
|
711
|
|
|
2,765
|
|
|
104
|
|
|
16,776
|
|
|
(672
|
)
|
|
16,104
|
|
|||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
|
6,904
|
|
|
1,223
|
|
|
640
|
|
|
282
|
|
|
1,661
|
|
|
7
|
|
|
10,717
|
|
|
230
|
|
|
10,947
|
|
|||||||||
Interest credited to policyholder account balances
|
|
376
|
|
|
349
|
|
|
99
|
|
|
26
|
|
|
255
|
|
|
—
|
|
|
1,105
|
|
|
233
|
|
|
1,338
|
|
|||||||||
Capitalization of DAC
|
|
(126
|
)
|
|
(420
|
)
|
|
(94
|
)
|
|
(109
|
)
|
|
(14
|
)
|
|
(2
|
)
|
|
(765
|
)
|
|
4
|
|
|
(761
|
)
|
|||||||||
Amortization of DAC and VOBA
|
|
118
|
|
|
424
|
|
|
—
|
|
|
78
|
|
|
(70
|
)
|
|
3
|
|
|
553
|
|
|
73
|
|
|
626
|
|
|||||||||
Amortization of negative VOBA
|
|
—
|
|
|
(24
|
)
|
|
(1
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(30
|
)
|
|
(2
|
)
|
|
(32
|
)
|
|||||||||
Interest expense on debt
|
|
2
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
279
|
|
|
284
|
|
|
—
|
|
|
284
|
|
|||||||||
Other expenses
|
|
933
|
|
|
905
|
|
|
377
|
|
|
347
|
|
|
322
|
|
|
237
|
|
|
3,121
|
|
|
80
|
|
|
3,201
|
|
|||||||||
Total expenses
|
|
8,207
|
|
|
2,457
|
|
|
1,022
|
|
|
619
|
|
|
2,156
|
|
|
524
|
|
|
14,985
|
|
|
618
|
|
|
15,603
|
|
|||||||||
Provision for income tax expense (benefit)
|
|
280
|
|
|
156
|
|
|
51
|
|
|
21
|
|
|
199
|
|
|
(90
|
)
|
|
617
|
|
|
(1,009
|
)
|
|
(392
|
)
|
|||||||||
Operating earnings
|
|
$
|
546
|
|
|
$
|
314
|
|
|
$
|
163
|
|
|
$
|
71
|
|
|
$
|
410
|
|
|
$
|
(330
|
)
|
|
1,174
|
|
|
|
|
|
|||||
Adjustments to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(672
|
)
|
|
|
|
|
|||||||||||||||||
Total expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(618
|
)
|
|
|
|
|
|||||||||||||||||
Provision for income tax (expense) benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,009
|
|
|
|
|
|
|||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
893
|
|
|
|
|
$
|
893
|
|
|
|
Operating Results
|
|
|
|
|
||||||||||||||||||||||||||||||
Three Months Ended September 30, 2016
|
|
U.S.
|
|
Asia
|
|
Latin
America |
|
EMEA
|
|
MetLife
Holdings |
|
Corporate
& Other |
|
Total
|
|
Adjustments
|
|
Total
Consolidated
|
||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Premiums
|
|
$
|
5,936
|
|
|
$
|
1,822
|
|
|
$
|
653
|
|
|
$
|
500
|
|
|
$
|
1,093
|
|
|
$
|
41
|
|
|
$
|
10,045
|
|
|
$
|
(206
|
)
|
|
$
|
9,839
|
|
Universal life and investment-type product policy fees
|
|
245
|
|
|
394
|
|
|
227
|
|
|
104
|
|
|
357
|
|
|
—
|
|
|
1,327
|
|
|
14
|
|
|
1,341
|
|
|||||||||
Net investment income
|
|
1,590
|
|
|
707
|
|
|
311
|
|
|
81
|
|
|
1,537
|
|
|
53
|
|
|
4,279
|
|
|
330
|
|
|
4,609
|
|
|||||||||
Other revenues
|
|
192
|
|
|
12
|
|
|
11
|
|
|
17
|
|
|
105
|
|
|
22
|
|
|
359
|
|
|
(3
|
)
|
|
356
|
|
|||||||||
Net investment gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
231
|
|
|
231
|
|
|||||||||
Net derivative gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(543
|
)
|
|
(543
|
)
|
|||||||||
Total revenues
|
|
7,963
|
|
|
2,935
|
|
|
1,202
|
|
|
702
|
|
|
3,092
|
|
|
116
|
|
|
16,010
|
|
|
(177
|
)
|
|
15,833
|
|
|||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
|
5,894
|
|
|
1,363
|
|
|
681
|
|
|
257
|
|
|
1,853
|
|
|
31
|
|
|
10,079
|
|
|
(165
|
)
|
|
9,914
|
|
|||||||||
Interest credited to policyholder account balances
|
|
322
|
|
|
331
|
|
|
85
|
|
|
28
|
|
|
261
|
|
|
(1
|
)
|
|
1,026
|
|
|
518
|
|
|
1,544
|
|
|||||||||
Capitalization of DAC
|
|
(124
|
)
|
|
(440
|
)
|
|
(83
|
)
|
|
(103
|
)
|
|
(44
|
)
|
|
1
|
|
|
(793
|
)
|
|
23
|
|
|
(770
|
)
|
|||||||||
Amortization of DAC and VOBA
|
|
117
|
|
|
331
|
|
|
(2
|
)
|
|
106
|
|
|
219
|
|
|
1
|
|
|
772
|
|
|
(112
|
)
|
|
660
|
|
|||||||||
Amortization of negative VOBA
|
|
—
|
|
|
(46
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
(5
|
)
|
|
(55
|
)
|
|||||||||
Interest expense on debt
|
|
2
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
15
|
|
|
275
|
|
|
293
|
|
|
(13
|
)
|
|
280
|
|
|||||||||
Other expenses
|
|
912
|
|
|
930
|
|
|
335
|
|
|
332
|
|
|
401
|
|
|
85
|
|
|
2,995
|
|
|
106
|
|
|
3,101
|
|
|||||||||
Total expenses
|
|
7,123
|
|
|
2,469
|
|
|
1,016
|
|
|
617
|
|
|
2,705
|
|
|
392
|
|
|
14,322
|
|
|
352
|
|
|
14,674
|
|
|||||||||
Provision for income tax expense (benefit)
|
|
288
|
|
|
142
|
|
|
53
|
|
|
11
|
|
|
121
|
|
|
(288
|
)
|
|
327
|
|
|
(192
|
)
|
|
135
|
|
|||||||||
Operating earnings
|
|
$
|
552
|
|
|
$
|
324
|
|
|
$
|
133
|
|
|
$
|
74
|
|
|
$
|
266
|
|
|
$
|
12
|
|
|
1,361
|
|
|
|
|
|
|||||
Adjustments to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(177
|
)
|
|
|
|
|
|||||||||||||||||
Total expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(352
|
)
|
|
|
|
|
|||||||||||||||||
Provision for income tax (expense) benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
192
|
|
|
|
|
|
|||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,024
|
|
|
|
|
$
|
1,024
|
|
|
|
Operating Results
|
|
|
|
|
||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2017
|
|
U.S.
|
|
Asia
|
|
Latin
America |
|
EMEA
|
|
MetLife
Holdings
|
|
Corporate
& Other
|
|
Total
|
|
Adjustments
|
|
Total
Consolidated |
||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Premiums
|
|
$
|
18,049
|
|
|
$
|
5,063
|
|
|
$
|
1,993
|
|
|
$
|
1,534
|
|
|
$
|
3,070
|
|
|
$
|
59
|
|
|
$
|
29,768
|
|
|
$
|
(347
|
)
|
|
$
|
29,421
|
|
Universal life and investment-type product policy fees
|
|
763
|
|
|
1,199
|
|
|
764
|
|
|
296
|
|
|
1,056
|
|
|
—
|
|
|
4,078
|
|
|
74
|
|
|
4,152
|
|
|||||||||
Net investment income
|
|
4,789
|
|
|
2,193
|
|
|
891
|
|
|
229
|
|
|
4,232
|
|
|
107
|
|
|
12,441
|
|
|
468
|
|
|
12,909
|
|
|||||||||
Other revenues
|
|
600
|
|
|
32
|
|
|
24
|
|
|
43
|
|
|
170
|
|
|
185
|
|
|
1,054
|
|
|
(119
|
)
|
|
935
|
|
|||||||||
Net investment gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(439
|
)
|
|
(439
|
)
|
|||||||||
Net derivative gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(663
|
)
|
|
(663
|
)
|
|||||||||
Total revenues
|
|
24,201
|
|
|
8,487
|
|
|
3,672
|
|
|
2,102
|
|
|
8,528
|
|
|
351
|
|
|
47,341
|
|
|
(1,026
|
)
|
|
46,315
|
|
|||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
|
18,017
|
|
|
3,785
|
|
|
1,869
|
|
|
821
|
|
|
5,117
|
|
|
33
|
|
|
29,642
|
|
|
206
|
|
|
29,848
|
|
|||||||||
Interest credited to policyholder account balances
|
|
1,086
|
|
|
1,003
|
|
|
275
|
|
|
75
|
|
|
767
|
|
|
1
|
|
|
3,207
|
|
|
874
|
|
|
4,081
|
|
|||||||||
Capitalization of DAC
|
|
(342
|
)
|
|
(1,268
|
)
|
|
(264
|
)
|
|
(301
|
)
|
|
(71
|
)
|
|
(6
|
)
|
|
(2,252
|
)
|
|
34
|
|
|
(2,218
|
)
|
|||||||||
Amortization of DAC and VOBA
|
|
346
|
|
|
1,005
|
|
|
146
|
|
|
260
|
|
|
143
|
|
|
5
|
|
|
1,905
|
|
|
40
|
|
|
1,945
|
|
|||||||||
Amortization of negative VOBA
|
|
—
|
|
|
(91
|
)
|
|
(1
|
)
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
(105
|
)
|
|
(8
|
)
|
|
(113
|
)
|
|||||||||
Interest expense on debt
|
|
8
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
22
|
|
|
833
|
|
|
867
|
|
|
(16
|
)
|
|
851
|
|
|||||||||
Other expenses
|
|
2,756
|
|
|
2,675
|
|
|
1,060
|
|
|
995
|
|
|
1,032
|
|
|
649
|
|
|
9,167
|
|
|
272
|
|
|
9,439
|
|
|||||||||
Total expenses
|
|
21,871
|
|
|
7,109
|
|
|
3,089
|
|
|
1,837
|
|
|
7,010
|
|
|
1,515
|
|
|
42,431
|
|
|
1,402
|
|
|
43,833
|
|
|||||||||
Provision for income tax expense (benefit)
|
|
782
|
|
|
459
|
|
|
123
|
|
|
47
|
|
|
488
|
|
|
(642
|
)
|
|
1,257
|
|
|
(1,405
|
)
|
|
(148
|
)
|
|||||||||
Operating earnings
|
|
$
|
1,548
|
|
|
$
|
919
|
|
|
$
|
460
|
|
|
$
|
218
|
|
|
$
|
1,030
|
|
|
$
|
(522
|
)
|
|
3,653
|
|
|
|
|
|
|||||
Adjustments to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,026
|
)
|
|
|
|
|
|||||||||||||||||
Total expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,402
|
)
|
|
|
|
|
|||||||||||||||||
Provision for income tax (expense) benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,405
|
|
|
|
|
|
|||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,630
|
|
|
|
|
$
|
2,630
|
|
|
|
Operating Results
|
|
|
|
|
||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2016
|
|
U.S.
|
|
Asia
|
|
Latin
America
|
|
EMEA
|
|
MetLife
Holdings
|
|
Corporate
& Other
|
|
Total
|
|
Adjustments
|
|
Total
Consolidated |
||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Premiums
|
|
$
|
16,127
|
|
|
$
|
5,161
|
|
|
$
|
1,885
|
|
|
$
|
1,519
|
|
|
$
|
3,312
|
|
|
$
|
50
|
|
|
$
|
28,054
|
|
|
$
|
(98
|
)
|
|
$
|
27,956
|
|
Universal life and investment-type product policy fees
|
|
743
|
|
|
1,114
|
|
|
764
|
|
|
294
|
|
|
1,073
|
|
|
2
|
|
|
3,990
|
|
|
137
|
|
|
4,127
|
|
|||||||||
Net investment income
|
|
4,615
|
|
|
2,003
|
|
|
809
|
|
|
244
|
|
|
4,489
|
|
|
141
|
|
|
12,301
|
|
|
226
|
|
|
12,527
|
|
|||||||||
Other revenues
|
|
589
|
|
|
45
|
|
|
26
|
|
|
56
|
|
|
512
|
|
|
70
|
|
|
1,298
|
|
|
11
|
|
|
1,309
|
|
|||||||||
Net investment gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
598
|
|
|
598
|
|
|||||||||
Net derivative gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,438
|
|
|
1,438
|
|
|||||||||
Total revenues
|
|
22,074
|
|
|
8,323
|
|
|
3,484
|
|
|
2,113
|
|
|
9,386
|
|
|
263
|
|
|
45,643
|
|
|
2,312
|
|
|
47,955
|
|
|||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
|
16,210
|
|
|
3,923
|
|
|
1,814
|
|
|
801
|
|
|
5,603
|
|
|
23
|
|
|
28,374
|
|
|
(56
|
)
|
|
28,318
|
|
|||||||||
Interest credited to policyholder account balances
|
|
967
|
|
|
974
|
|
|
249
|
|
|
87
|
|
|
780
|
|
|
5
|
|
|
3,062
|
|
|
757
|
|
|
3,819
|
|
|||||||||
Capitalization of DAC
|
|
(356
|
)
|
|
(1,251
|
)
|
|
(236
|
)
|
|
(310
|
)
|
|
(240
|
)
|
|
(7
|
)
|
|
(2,400
|
)
|
|
(22
|
)
|
|
(2,422
|
)
|
|||||||||
Amortization of DAC and VOBA
|
|
353
|
|
|
921
|
|
|
127
|
|
|
311
|
|
|
636
|
|
|
7
|
|
|
2,355
|
|
|
(303
|
)
|
|
2,052
|
|
|||||||||
Amortization of negative VOBA
|
|
—
|
|
|
(167
|
)
|
|
(1
|
)
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
(178
|
)
|
|
(43
|
)
|
|
(221
|
)
|
|||||||||
Interest expense on debt
|
|
7
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
43
|
|
|
862
|
|
|
913
|
|
|
(38
|
)
|
|
875
|
|
|||||||||
Other expenses
|
|
2,772
|
|
|
2,658
|
|
|
968
|
|
|
1,001
|
|
|
1,861
|
|
|
401
|
|
|
9,661
|
|
|
351
|
|
|
10,012
|
|
|||||||||
Total expenses
|
|
19,953
|
|
|
7,058
|
|
|
2,922
|
|
|
1,880
|
|
|
8,683
|
|
|
1,291
|
|
|
41,787
|
|
|
646
|
|
|
42,433
|
|
|||||||||
Provision for income tax expense (benefit)
|
|
720
|
|
|
377
|
|
|
141
|
|
|
32
|
|
|
203
|
|
|
(658
|
)
|
|
815
|
|
|
438
|
|
|
1,253
|
|
|||||||||
Operating earnings
|
|
$
|
1,401
|
|
|
$
|
888
|
|
|
$
|
421
|
|
|
$
|
201
|
|
|
$
|
500
|
|
|
$
|
(370
|
)
|
|
3,041
|
|
|
|
|
|
|||||
Adjustments to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,312
|
|
|
|
|
|
|||||||||||||||||
Total expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(646
|
)
|
|
|
|
|
|||||||||||||||||
Provision for income tax (expense) benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(438
|
)
|
|
|
|
|
|||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,269
|
|
|
|
|
$
|
4,269
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
|
|
(In millions)
|
||||||
U.S.
|
|
$
|
258,651
|
|
|
$
|
253,683
|
|
Asia
|
|
134,070
|
|
|
120,656
|
|
||
Latin America
|
|
77,617
|
|
|
67,233
|
|
||
EMEA
|
|
30,244
|
|
|
25,596
|
|
||
MetLife Holdings
|
|
185,054
|
|
|
184,276
|
|
||
Corporate & Other (1)
|
|
34,879
|
|
|
247,320
|
|
||
Total
|
|
$
|
720,515
|
|
|
$
|
898,764
|
|
(1)
|
Includes assets of disposed subsidiary of
$216,983 million
at December 31, 2016.
|
|
Included on Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
|
|
Excluded from Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
|
||||||||||||||||
|
Three and Nine Months
Ended
September 30,
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||||
|
2017 (1)
|
|
2017 (2)
|
|
2016
|
|
2017 (2)
|
|
2016
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Premiums
|
|
|
|
|
|
|
|
|
|
||||||||||
Reinsurance assumed
|
$
|
70
|
|
|
$
|
36
|
|
|
$
|
111
|
|
|
$
|
248
|
|
|
$
|
338
|
|
Reinsurance ceded
|
(2
|
)
|
|
1
|
|
|
(3
|
)
|
|
(7
|
)
|
|
(10
|
)
|
|||||
Net premiums
|
$
|
68
|
|
|
$
|
37
|
|
|
$
|
108
|
|
|
$
|
241
|
|
|
$
|
328
|
|
Universal life and investment-type product policy fees
|
|
|
|
|
|
|
|
|
|
||||||||||
Reinsurance assumed
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
$
|
(2
|
)
|
|
$
|
(6
|
)
|
|
$
|
(2
|
)
|
Reinsurance ceded
|
(22
|
)
|
|
(8
|
)
|
|
(30
|
)
|
|
(55
|
)
|
|
(76
|
)
|
|||||
Net universal life and investment-type product policy fees
|
$
|
(23
|
)
|
|
$
|
(9
|
)
|
|
$
|
(32
|
)
|
|
$
|
(61
|
)
|
|
$
|
(78
|
)
|
Policyholder benefits and claims
|
|
|
|
|
|
|
|
|
|
||||||||||
Reinsurance assumed
|
$
|
55
|
|
|
$
|
30
|
|
|
$
|
103
|
|
|
$
|
196
|
|
|
$
|
286
|
|
Reinsurance ceded
|
(6
|
)
|
|
(3
|
)
|
|
(14
|
)
|
|
(16
|
)
|
|
(9
|
)
|
|||||
Net policyholder benefits and claims
|
$
|
49
|
|
|
$
|
27
|
|
|
$
|
89
|
|
|
$
|
180
|
|
|
$
|
277
|
|
Interest credited to policyholder account balances
|
|
|
|
|
|
|
|
|
|
||||||||||
Reinsurance assumed
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
10
|
|
|
$
|
12
|
|
Reinsurance ceded
|
(12
|
)
|
|
(6
|
)
|
|
(18
|
)
|
|
(42
|
)
|
|
(56
|
)
|
|||||
Net interest credited to policyholder account balances
|
$
|
(9
|
)
|
|
$
|
(5
|
)
|
|
$
|
(14
|
)
|
|
$
|
(32
|
)
|
|
$
|
(44
|
)
|
Other expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Reinsurance assumed
|
$
|
6
|
|
|
$
|
4
|
|
|
$
|
18
|
|
|
$
|
10
|
|
|
$
|
63
|
|
Reinsurance ceded
|
(7
|
)
|
|
(3
|
)
|
|
(8
|
)
|
|
(28
|
)
|
|
(24
|
)
|
|||||
Net other expenses
|
$
|
(1
|
)
|
|
$
|
1
|
|
|
$
|
10
|
|
|
$
|
(18
|
)
|
|
$
|
39
|
|
(1)
|
Includes transactions after the Separation.
|
(2)
|
Includes transactions prior to the Separation.
|
|
September 30, 2017
|
||||||
|
Assumed
|
|
Ceded
|
||||
|
(In millions)
|
||||||
Assets
|
|
|
|
||||
Premiums, reinsurance and other receivables
|
$
|
162
|
|
|
$
|
1,786
|
|
Deferred policy acquisition costs and value of business acquired
|
393
|
|
|
(22
|
)
|
||
Total assets
|
$
|
555
|
|
|
$
|
1,764
|
|
Liabilities
|
|
|
|
||||
Future policy benefits
|
$
|
1,666
|
|
|
$
|
—
|
|
Other policy-related balances
|
121
|
|
|
29
|
|
||
Other liabilities
|
1,460
|
|
|
22
|
|
||
Total liabilities
|
$
|
3,247
|
|
|
$
|
51
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
||||||||||||
|
2017 (1)
|
|
2016
|
|
2017 (1)
|
|
2016
|
||||||||
|
(In millions)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Premiums
|
$
|
116
|
|
|
$
|
552
|
|
|
$
|
820
|
|
|
$
|
1,544
|
|
Universal life and investment-type product policy fees
|
320
|
|
|
955
|
|
|
2,201
|
|
|
2,799
|
|
||||
Net investment income
|
243
|
|
|
857
|
|
|
1,783
|
|
|
2,384
|
|
||||
Other revenues
|
27
|
|
|
8
|
|
|
150
|
|
|
31
|
|
||||
Total net investment gains (losses)
|
1
|
|
|
26
|
|
|
(53
|
)
|
|
(60
|
)
|
||||
Net derivative gains (losses)
|
(171
|
)
|
|
(509
|
)
|
|
(1,061
|
)
|
|
(3,254
|
)
|
||||
Total revenues
|
536
|
|
|
1,889
|
|
|
3,840
|
|
|
3,444
|
|
||||
Expenses
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims
|
335
|
|
|
1,244
|
|
|
2,217
|
|
|
3,414
|
|
||||
Interest credited to policyholder account balances
|
89
|
|
|
276
|
|
|
620
|
|
|
827
|
|
||||
Policyholder dividends
|
2
|
|
|
10
|
|
|
16
|
|
|
27
|
|
||||
Goodwill impairment
|
—
|
|
|
260
|
|
|
—
|
|
|
260
|
|
||||
Other expenses
|
108
|
|
|
710
|
|
|
853
|
|
|
1,068
|
|
||||
Total expenses
|
534
|
|
|
2,500
|
|
|
3,706
|
|
|
5,596
|
|
||||
Income (loss) from discontinued operations before provision for income tax and loss on disposal of discontinued operations
|
2
|
|
|
(611
|
)
|
|
134
|
|
|
(2,152
|
)
|
||||
Provision for income tax expense (benefit)
|
(10
|
)
|
|
(160
|
)
|
|
(48
|
)
|
|
(773
|
)
|
||||
Income (loss) from discontinued operations before loss on disposal of discontinued operations, net of income tax
|
12
|
|
|
(451
|
)
|
|
182
|
|
|
(1,379
|
)
|
||||
Transaction costs associated with the Separation, net of income tax
|
(25
|
)
|
|
—
|
|
|
(216
|
)
|
|
—
|
|
||||
Tax charges associated with the Separation
|
(955
|
)
|
|
—
|
|
|
(955
|
)
|
|
—
|
|
||||
Income (loss) on disposal of discontinued operations, net of income tax
|
(980
|
)
|
|
—
|
|
|
(1,171
|
)
|
|
—
|
|
||||
Income (loss) from discontinued operations, net of income tax
|
$
|
(968
|
)
|
|
$
|
(451
|
)
|
|
$
|
(989
|
)
|
|
$
|
(1,379
|
)
|
(1)
|
Includes transactions prior to the Separation.
|
|
|
December 31, 2016
|
||
|
|
(In millions)
|
||
Assets
|
|
|
||
Investments:
|
|
|
||
Fixed maturity securities available-for-sale
|
|
$
|
61,326
|
|
Equity securities available-for-sale
|
|
300
|
|
|
Mortgage loans
|
|
9,378
|
|
|
Policy loans
|
|
1,517
|
|
|
Real estate and real estate joint ventures
|
|
150
|
|
|
Other limited partnership interests
|
|
1,642
|
|
|
Short-term investments
|
|
1,288
|
|
|
Other invested assets
|
|
3,881
|
|
|
Total investments
|
|
79,482
|
|
|
Cash and cash equivalents
|
|
5,226
|
|
|
Accrued investment income
|
|
680
|
|
|
Premiums, reinsurance and other receivables
|
|
10,636
|
|
|
Deferred policy acquisition costs and value of business acquired
|
|
7,207
|
|
|
Other assets
|
|
709
|
|
|
Separate account assets
|
|
113,043
|
|
|
Total assets of disposed subsidiary
|
|
$
|
216,983
|
|
Liabilities
|
|
|
||
Future policy benefits
|
|
$
|
33,270
|
|
Policyholder account balances
|
|
37,066
|
|
|
Other policy-related balances
|
|
1,356
|
|
|
Policyholder dividends payable
|
|
12
|
|
|
Payables for collateral under securities loaned and other transactions
|
|
7,390
|
|
|
Long-term debt
|
|
60
|
|
|
Collateral financing arrangements
|
|
2,797
|
|
|
Deferred income tax liability
|
|
2,594
|
|
|
Other liabilities
|
|
5,119
|
|
|
Separate account liabilities
|
|
113,043
|
|
|
Total liabilities of disposed subsidiary
|
|
$
|
202,707
|
|
|
Nine Months
Ended September 30, |
||||||
|
2017
|
|
2016
|
||||
|
(In millions)
|
||||||
Net cash provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
1,329
|
|
|
$
|
2,590
|
|
Investing activities
|
$
|
(2,732
|
)
|
|
$
|
(5,074
|
)
|
Financing activities
|
$
|
(367
|
)
|
|
$
|
3,739
|
|
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
||||||||||||||||||
|
|
In the
Event of Death |
|
At
Annuitization |
|
In the
Event of Death |
|
At
Annuitization |
||||||||||||||||
|
|
(Dollars in millions)
|
|
|||||||||||||||||||||
Annuity Contracts (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Variable Annuity Guarantees:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total account value (2), (3)
|
|
$
|
66,814
|
|
|
|
$
|
26,098
|
|
|
|
$
|
66,176
|
|
|
|
$
|
25,335
|
|
|
||||
Separate account value
|
|
$
|
45,046
|
|
|
|
$
|
24,179
|
|
|
|
$
|
43,359
|
|
|
|
$
|
23,330
|
|
|
||||
Net amount at risk (2)
|
|
$
|
1,401
|
|
(4
|
)
|
|
$
|
568
|
|
(5
|
)
|
|
$
|
1,842
|
|
(4
|
)
|
|
$
|
521
|
|
(5
|
)
|
Average attained age of contractholders
|
|
65 years
|
|
|
|
65 years
|
|
|
|
64 years
|
|
|
|
65 years
|
|
|
||||||||
Other Annuity Guarantees:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total account value (3)
|
|
N/A
|
|
|
|
$
|
1,432
|
|
|
|
N/A
|
|
|
|
$
|
1,393
|
|
|
||||||
Net amount at risk
|
|
N/A
|
|
|
|
$
|
580
|
|
(6
|
)
|
|
N/A
|
|
|
|
$
|
490
|
|
(6
|
)
|
||||
Average attained age of contractholders
|
|
N/A
|
|
|
|
50 years
|
|
|
|
N/A
|
|
|
|
50 years
|
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
|
Secondary
Guarantees |
|
Paid-Up
Guarantees |
|
Secondary
Guarantees |
|
Paid-Up
Guarantees |
||||||||
|
|
(Dollars in millions)
|
||||||||||||||
Universal and Variable Life Contracts (1):
|
|
|
|
|
|
|
|
|
||||||||
Total account value (3)
|
|
$
|
8,796
|
|
|
$
|
3,238
|
|
|
$
|
8,363
|
|
|
$
|
3,337
|
|
Net amount at risk (7)
|
|
$
|
67,950
|
|
|
$
|
16,905
|
|
|
$
|
70,225
|
|
|
$
|
17,785
|
|
Average attained age of policyholders
|
|
56 years
|
|
|
63 years
|
|
|
55 years
|
|
|
62 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 on the consolidated balance sheets, from assumed reinsurance of certain variable annuity products from the Company’s former operating joint venture in Japan.
|
(3)
|
Includes the contractholder’s investments in the general account and separate account, if applicable.
|
(4)
|
Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death.
|
(5)
|
Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved.
|
(6)
|
Defined as either the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date or the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. These amounts represent the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date.
|
(7)
|
Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date.
|
|
|
Nine Months
Ended September 30, |
||||||
|
|
2017
|
|
2016
|
||||
|
|
(In millions)
|
||||||
Balance at December 31 of prior period
|
|
$
|
16,151
|
|
|
$
|
9,669
|
|
Less: Reinsurance recoverables
|
|
1,226
|
|
|
476
|
|
||
Net Balance at December 31 of prior period
|
|
14,925
|
|
|
9,193
|
|
||
Cumulative adjustment (1)
|
|
—
|
|
|
4,897
|
|
||
Net balance, beginning of period
|
|
14,925
|
|
|
14,090
|
|
||
Incurred related to:
|
|
|
|
|
||||
Current period
|
|
18,028
|
|
|
18,157
|
|
||
Prior periods (2)
|
|
156
|
|
|
147
|
|
||
Total incurred
|
|
18,184
|
|
|
18,304
|
|
||
Paid related to:
|
|
|
|
|
||||
Current period
|
|
(13,880
|
)
|
|
(12,818
|
)
|
||
Prior periods
|
|
(4,213
|
)
|
|
(4,620
|
)
|
||
Total paid
|
|
(18,093
|
)
|
|
(17,438
|
)
|
||
Net balance, end of period
|
|
15,016
|
|
|
14,956
|
|
||
Add: Reinsurance recoverables
|
|
2,205
|
|
|
2,052
|
|
||
Balance, end of period (included in future policy benefits and other policy-related balances)
|
|
$
|
17,221
|
|
|
$
|
17,008
|
|
(1)
|
Reflects the accumulated adjustment, net of reinsurance, upon implementation of the new short-duration contracts guidance which clarified the requirement to include claim information for long-duration contracts. The accumulated adjustment primarily reflects unpaid claim liabilities, net of reinsurance, for long-duration contracts as of the beginning of the period presented.
|
(2)
|
During both the nine months ended September 30, 2017 and 2016, as a result of changes in estimates of insured events in the respective prior periods, the claims and claim adjustment expenses associated with prior periods increased due to unfavorable claims experience.
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
|
|
(In millions)
|
||||||
Closed Block Liabilities
|
|
|
|
|
||||
Future policy benefits
|
|
$
|
40,489
|
|
|
$
|
40,834
|
|
Other policy-related balances
|
|
193
|
|
|
257
|
|
||
Policyholder dividends payable
|
|
483
|
|
|
443
|
|
||
Policyholder dividend obligation
|
|
2,201
|
|
|
1,931
|
|
||
Current income tax payable
|
|
—
|
|
|
4
|
|
||
Other liabilities
|
|
277
|
|
|
196
|
|
||
Total closed block liabilities
|
|
43,643
|
|
|
43,665
|
|
||
Assets Designated to the Closed Block
|
|
|
|
|
||||
Investments:
|
|
|
|
|
||||
Fixed maturity securities available-for-sale, at estimated fair value
|
|
27,541
|
|
|
27,220
|
|
||
Equity securities available-for-sale, at estimated fair value
|
|
71
|
|
|
100
|
|
||
Mortgage loans
|
|
5,904
|
|
|
5,935
|
|
||
Policy loans
|
|
4,542
|
|
|
4,553
|
|
||
Real estate and real estate joint ventures
|
|
628
|
|
|
655
|
|
||
Other invested assets
|
|
1,053
|
|
|
1,246
|
|
||
Total investments
|
|
39,739
|
|
|
39,709
|
|
||
Cash and cash equivalents
|
|
60
|
|
|
18
|
|
||
Accrued investment income
|
|
487
|
|
|
467
|
|
||
Premiums, reinsurance and other receivables
|
|
68
|
|
|
68
|
|
||
Current income tax recoverable
|
|
30
|
|
|
—
|
|
||
Deferred income tax assets
|
|
109
|
|
|
177
|
|
||
Total assets designated to the closed block
|
|
40,493
|
|
|
40,439
|
|
||
Excess of closed block liabilities over assets designated to the closed block
|
|
3,150
|
|
|
3,226
|
|
||
Amounts included in accumulated other comprehensive income (loss):
|
|
|
|
|
||||
Unrealized investment gains (losses), net of income tax
|
|
1,851
|
|
|
1,517
|
|
||
Unrealized gains (losses) on derivatives, net of income tax
|
|
23
|
|
|
95
|
|
||
Allocated to policyholder dividend obligation, net of income tax
|
|
(1,431
|
)
|
|
(1,255
|
)
|
||
Total amounts included in AOCI
|
|
443
|
|
|
357
|
|
||
Maximum future earnings to be recognized from closed block assets and liabilities
|
|
$
|
3,593
|
|
|
$
|
3,583
|
|
|
|
Nine Months
Ended September 30, 2017 |
|
Year
Ended December 31, 2016 |
||||
|
|
(In millions)
|
||||||
Balance, beginning of period
|
|
$
|
1,931
|
|
|
$
|
1,783
|
|
Change in unrealized investment and derivative gains (losses)
|
|
270
|
|
|
148
|
|
||
Balance, end of period
|
|
$
|
2,201
|
|
|
$
|
1,931
|
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
(In millions)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
Premiums
|
|
$
|
413
|
|
|
$
|
436
|
|
|
$
|
1,247
|
|
|
$
|
1,297
|
|
Net investment income
|
|
450
|
|
|
486
|
|
|
1,368
|
|
|
1,435
|
|
||||
Net investment gains (losses)
|
|
—
|
|
|
(3
|
)
|
|
(10
|
)
|
|
(19
|
)
|
||||
Net derivative gains (losses)
|
|
(6
|
)
|
|
4
|
|
|
(24
|
)
|
|
(3
|
)
|
||||
Total revenues
|
|
857
|
|
|
923
|
|
|
2,581
|
|
|
2,710
|
|
||||
Expenses
|
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims
|
|
591
|
|
|
619
|
|
|
1,773
|
|
|
1,861
|
|
||||
Policyholder dividends
|
|
235
|
|
|
232
|
|
|
732
|
|
|
723
|
|
||||
Other expenses
|
|
30
|
|
|
33
|
|
|
94
|
|
|
100
|
|
||||
Total expenses
|
|
856
|
|
|
884
|
|
|
2,599
|
|
|
2,684
|
|
||||
Revenues, net of expenses before provision for income tax expense (benefit)
|
|
1
|
|
|
39
|
|
|
(18
|
)
|
|
26
|
|
||||
Provision for income tax expense (benefit)
|
|
—
|
|
|
13
|
|
|
(8
|
)
|
|
8
|
|
||||
Revenues, net of expenses and provision for income tax expense (benefit)
|
|
$
|
1
|
|
|
$
|
26
|
|
|
$
|
(10
|
)
|
|
$
|
18
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||||||||||||||||||
|
Cost or
Amortized
Cost
|
|
Gross Unrealized
|
|
Estimated
Fair
Value
|
|
Cost or
Amortized
Cost
|
|
Gross Unrealized
|
|
Estimated
Fair
Value
|
||||||||||||||||||||||||||||
|
Gains
|
|
Temporary
Losses
|
|
OTTI
Losses (1) |
|
Gains
|
|
Temporary
Losses
|
|
OTTI
Losses (1) |
|
|||||||||||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
U.S. corporate
|
$
|
75,221
|
|
|
$
|
6,827
|
|
|
$
|
393
|
|
|
$
|
—
|
|
|
$
|
81,655
|
|
|
$
|
73,280
|
|
|
$
|
6,027
|
|
|
$
|
764
|
|
|
$
|
—
|
|
|
$
|
78,543
|
|
Foreign government
|
54,618
|
|
|
6,486
|
|
|
315
|
|
|
—
|
|
|
60,789
|
|
|
49,864
|
|
|
6,485
|
|
|
373
|
|
|
—
|
|
|
55,976
|
|
||||||||||
Foreign corporate
|
52,185
|
|
|
3,705
|
|
|
750
|
|
|
—
|
|
|
55,140
|
|
|
49,333
|
|
|
2,901
|
|
|
1,572
|
|
|
(1
|
)
|
|
50,663
|
|
||||||||||
U.S. government and agency
|
43,911
|
|
|
4,056
|
|
|
303
|
|
|
—
|
|
|
47,664
|
|
|
41,294
|
|
|
3,682
|
|
|
543
|
|
|
—
|
|
|
44,433
|
|
||||||||||
RMBS
|
30,368
|
|
|
1,222
|
|
|
232
|
|
|
(40
|
)
|
|
31,398
|
|
|
28,393
|
|
|
1,039
|
|
|
410
|
|
|
(10
|
)
|
|
29,032
|
|
||||||||||
State and political subdivision
|
10,754
|
|
|
1,615
|
|
|
24
|
|
|
—
|
|
|
12,345
|
|
|
10,977
|
|
|
1,340
|
|
|
85
|
|
|
1
|
|
|
12,231
|
|
||||||||||
ABS
|
11,702
|
|
|
114
|
|
|
42
|
|
|
3
|
|
|
11,771
|
|
|
11,266
|
|
|
90
|
|
|
128
|
|
|
3
|
|
|
11,225
|
|
||||||||||
CMBS
|
7,925
|
|
|
251
|
|
|
44
|
|
|
—
|
|
|
8,132
|
|
|
7,294
|
|
|
237
|
|
|
71
|
|
|
—
|
|
|
7,460
|
|
||||||||||
Total fixed maturity securities
|
$
|
286,684
|
|
|
$
|
24,276
|
|
|
$
|
2,103
|
|
|
$
|
(37
|
)
|
|
$
|
308,894
|
|
|
$
|
271,701
|
|
|
$
|
21,801
|
|
|
$
|
3,946
|
|
|
$
|
(7
|
)
|
|
$
|
289,563
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Common stock
|
$
|
1,883
|
|
|
$
|
379
|
|
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
2,242
|
|
|
$
|
1,827
|
|
|
$
|
464
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
2,278
|
|
Non-redeemable preferred stock
|
503
|
|
|
36
|
|
|
5
|
|
|
—
|
|
|
534
|
|
|
637
|
|
|
19
|
|
|
40
|
|
|
—
|
|
|
616
|
|
||||||||||
Total equity securities
|
$
|
2,386
|
|
|
$
|
415
|
|
|
$
|
25
|
|
|
$
|
—
|
|
|
$
|
2,776
|
|
|
$
|
2,464
|
|
|
$
|
483
|
|
|
$
|
53
|
|
|
$
|
—
|
|
|
$
|
2,894
|
|
(1)
|
Noncredit OTTI losses included in AOCI in an unrealized gain position are due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).”
|
|
|
Due in One
Year or Less |
|
Due After
One Year Through Five Years |
|
Due After
Five Years
Through Ten
Years
|
|
Due After
Ten Years
|
|
Structured
Securities
|
|
Total Fixed
Maturity
Securities
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Amortized cost
|
|
$
|
12,720
|
|
|
$
|
63,453
|
|
|
$
|
60,957
|
|
|
$
|
99,559
|
|
|
$
|
49,995
|
|
|
$
|
286,684
|
|
Estimated fair value
|
|
$
|
12,827
|
|
|
$
|
66,568
|
|
|
$
|
64,549
|
|
|
$
|
113,649
|
|
|
$
|
51,301
|
|
|
$
|
308,894
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||||||||||
|
|
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
|
||||||||||||||||
|
|
(Dollars in millions)
|
||||||||||||||||||||||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. corporate
|
|
$
|
6,647
|
|
|
$
|
161
|
|
|
$
|
3,015
|
|
|
$
|
232
|
|
|
$
|
11,471
|
|
|
$
|
466
|
|
|
$
|
2,938
|
|
|
$
|
298
|
|
Foreign government
|
|
6,856
|
|
|
202
|
|
|
1,669
|
|
|
113
|
|
|
5,955
|
|
|
260
|
|
|
918
|
|
|
113
|
|
||||||||
Foreign corporate
|
|
5,856
|
|
|
149
|
|
|
6,137
|
|
|
601
|
|
|
10,147
|
|
|
573
|
|
|
5,493
|
|
|
998
|
|
||||||||
U.S. government and agency
|
|
19,305
|
|
|
275
|
|
|
362
|
|
|
28
|
|
|
9,104
|
|
|
523
|
|
|
141
|
|
|
20
|
|
||||||||
RMBS
|
|
7,731
|
|
|
106
|
|
|
2,025
|
|
|
86
|
|
|
9,449
|
|
|
291
|
|
|
1,800
|
|
|
109
|
|
||||||||
State and political subdivision
|
|
560
|
|
|
13
|
|
|
165
|
|
|
11
|
|
|
1,747
|
|
|
80
|
|
|
56
|
|
|
6
|
|
||||||||
ABS
|
|
1,976
|
|
|
5
|
|
|
921
|
|
|
40
|
|
|
2,224
|
|
|
28
|
|
|
2,328
|
|
|
103
|
|
||||||||
CMBS
|
|
1,555
|
|
|
12
|
|
|
337
|
|
|
32
|
|
|
998
|
|
|
22
|
|
|
564
|
|
|
49
|
|
||||||||
Total fixed maturity securities
|
|
$
|
50,486
|
|
|
$
|
923
|
|
|
$
|
14,631
|
|
|
$
|
1,143
|
|
|
$
|
51,095
|
|
|
$
|
2,243
|
|
|
$
|
14,238
|
|
|
$
|
1,696
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common stock
|
|
$
|
133
|
|
|
$
|
20
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
105
|
|
|
$
|
13
|
|
|
$
|
11
|
|
|
$
|
—
|
|
Non-redeemable preferred stock
|
|
—
|
|
|
—
|
|
|
82
|
|
|
5
|
|
|
139
|
|
|
7
|
|
|
125
|
|
|
33
|
|
||||||||
Total equity securities
|
|
$
|
133
|
|
|
$
|
20
|
|
|
$
|
86
|
|
|
$
|
5
|
|
|
$
|
244
|
|
|
$
|
20
|
|
|
$
|
136
|
|
|
$
|
33
|
|
Total number of securities in an unrealized loss position
|
|
3,249
|
|
|
|
|
1,638
|
|
|
|
|
3,580
|
|
|
|
|
1,307
|
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||
|
Carrying Value
|
|
% of
Total |
|
Carrying Value
|
|
% of
Total |
||||||
|
(Dollars in millions)
|
||||||||||||
Mortgage loans:
|
|
|
|
|
|
|
|
||||||
Commercial
|
$
|
43,243
|
|
|
63.6
|
%
|
|
$
|
41,512
|
|
|
63.7
|
%
|
Agricultural
|
12,967
|
|
|
19.1
|
|
|
12,564
|
|
|
19.3
|
|
||
Residential
|
11,599
|
|
|
17.0
|
|
|
10,829
|
|
|
16.6
|
|
||
Subtotal (1)
|
67,809
|
|
|
99.7
|
|
|
64,905
|
|
|
99.6
|
|
||
Valuation allowances
|
(316
|
)
|
|
(0.5
|
)
|
|
(304
|
)
|
|
(0.5
|
)
|
||
Subtotal mortgage loans, net
|
67,493
|
|
|
99.2
|
|
|
64,601
|
|
|
99.1
|
|
||
Residential — FVO
|
564
|
|
|
0.8
|
|
|
566
|
|
|
0.9
|
|
||
Total mortgage loans, net
|
$
|
68,057
|
|
|
100.0
|
%
|
|
$
|
65,167
|
|
|
100.0
|
%
|
(1)
|
Purchases of mortgage loans, primarily residential, were
$411 million
and
$1.9 billion
for the
three months
and
nine months ended
September 30, 2017
, respectively, and
$733 million
and
$1.9 billion
for the
three months
and
nine months ended
September 30, 2016
, respectively.
|
|
|
Evaluated Individually for Credit Losses
|
|
Evaluated Collectively for
Credit Losses
|
|
Impaired
Loans
|
||||||||||||||||||||||||||
|
|
Impaired Loans with a
Valuation Allowance
|
|
Impaired Loans without a
Valuation Allowance
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
|
|
Valuation
Allowances |
|
Unpaid
Principal
Balance
|
|
Recorded
Investment |
|
Recorded
Investment |
|
Valuation
Allowances |
|
Carrying
Value |
||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
43,243
|
|
|
$
|
213
|
|
|
$
|
—
|
|
Agricultural
|
|
22
|
|
|
21
|
|
|
2
|
|
|
28
|
|
|
28
|
|
|
12,918
|
|
|
39
|
|
|
47
|
|
||||||||
Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
335
|
|
|
304
|
|
|
11,295
|
|
|
62
|
|
|
304
|
|
||||||||
Total
|
|
$
|
22
|
|
|
$
|
21
|
|
|
$
|
2
|
|
|
$
|
363
|
|
|
$
|
332
|
|
|
$
|
67,456
|
|
|
$
|
314
|
|
|
$
|
351
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
12
|
|
|
$
|
41,500
|
|
|
$
|
202
|
|
|
$
|
12
|
|
Agricultural
|
|
11
|
|
|
10
|
|
|
1
|
|
|
27
|
|
|
27
|
|
|
12,527
|
|
|
38
|
|
|
36
|
|
||||||||
Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
265
|
|
|
241
|
|
|
10,588
|
|
|
63
|
|
|
241
|
|
||||||||
Total
|
|
$
|
11
|
|
|
$
|
10
|
|
|
$
|
1
|
|
|
$
|
304
|
|
|
$
|
280
|
|
|
$
|
64,615
|
|
|
$
|
303
|
|
|
$
|
289
|
|
|
Nine Months
Ended September 30, |
||||||||||||||||||||||||||||||
|
2017
|
|
2016
|
||||||||||||||||||||||||||||
|
Commercial
|
|
Agricultural
|
|
Residential
|
|
Total
|
|
Commercial
|
|
Agricultural
|
|
Residential
|
|
Total
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
202
|
|
|
$
|
39
|
|
|
$
|
63
|
|
|
$
|
304
|
|
|
$
|
188
|
|
|
$
|
37
|
|
|
$
|
56
|
|
|
$
|
281
|
|
Provision (release) (1)
|
11
|
|
|
4
|
|
|
10
|
|
|
25
|
|
|
149
|
|
|
3
|
|
|
11
|
|
|
163
|
|
||||||||
Charge-offs, net of recoveries (1)
|
—
|
|
|
(2
|
)
|
|
(11
|
)
|
|
(13
|
)
|
|
(143
|
)
|
|
(2
|
)
|
|
(12
|
)
|
|
(157
|
)
|
||||||||
Balance, end of period
|
$
|
213
|
|
|
$
|
41
|
|
|
$
|
62
|
|
|
$
|
316
|
|
|
$
|
194
|
|
|
$
|
38
|
|
|
$
|
55
|
|
|
$
|
287
|
|
(1)
|
In connection with an acquisition in 2010, certain impaired commercial mortgage loans were acquired and, accordingly, were not originated by the Company. Such commercial mortgage loans have been accounted for as purchased credit impaired (“PCI”) commercial mortgage loans. Decreases in cash flows expected to be collected on PCI commercial mortgage loans can result in provisions for losses on mortgage loans. For the nine months ended September 30, 2016, in connection with the maturity of an acquired PCI commercial mortgage loan, an increase to the commercial mortgage loan valuation allowance of
$143 million
was recorded and charged-off upon maturity. The Company has recovered a substantial portion of the loss on the loan incurred through an indemnification agreement entered into in connection with the acquisition in 2010.
|
|
|
Recorded Investment
|
|
Estimated
Fair Value |
|
% of
Total
|
||||||||||||||||||||
|
|
Debt Service Coverage Ratios
|
|
|
|
% of
Total
|
|
|||||||||||||||||||
|
|
> 1.20x
|
|
1.00x - 1.20x
|
|
< 1.00x
|
|
Total
|
|
|||||||||||||||||
|
|
(Dollars in millions)
|
||||||||||||||||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loan-to-value ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Less than 65%
|
|
$
|
37,404
|
|
|
$
|
1,488
|
|
|
$
|
222
|
|
|
$
|
39,114
|
|
|
90.5
|
%
|
|
$
|
39,904
|
|
|
90.7
|
%
|
65% to 75%
|
|
3,367
|
|
|
168
|
|
|
173
|
|
|
3,708
|
|
|
8.6
|
|
|
3,705
|
|
|
8.4
|
|
|||||
76% to 80%
|
|
217
|
|
|
—
|
|
|
57
|
|
|
274
|
|
|
0.6
|
|
|
262
|
|
|
0.6
|
|
|||||
Greater than 80%
|
|
—
|
|
|
—
|
|
|
147
|
|
|
147
|
|
|
0.3
|
|
|
143
|
|
|
0.3
|
|
|||||
Total
|
|
$
|
40,988
|
|
|
$
|
1,656
|
|
|
$
|
599
|
|
|
$
|
43,243
|
|
|
100
|
%
|
|
$
|
44,014
|
|
|
100
|
%
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loan-to-value ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Less than 65%
|
|
$
|
36,067
|
|
|
$
|
1,077
|
|
|
$
|
707
|
|
|
$
|
37,851
|
|
|
91.2
|
%
|
|
$
|
38,237
|
|
|
91.5
|
%
|
65% to 75%
|
|
3,044
|
|
|
—
|
|
|
202
|
|
|
3,246
|
|
|
7.8
|
|
|
3,185
|
|
|
7.6
|
|
|||||
76% to 80%
|
|
195
|
|
|
—
|
|
|
—
|
|
|
195
|
|
|
0.5
|
|
|
182
|
|
|
0.4
|
|
|||||
Greater than 80%
|
|
118
|
|
|
27
|
|
|
75
|
|
|
220
|
|
|
0.5
|
|
|
213
|
|
|
0.5
|
|
|||||
Total
|
|
$
|
39,424
|
|
|
$
|
1,104
|
|
|
$
|
984
|
|
|
$
|
41,512
|
|
|
100.0
|
%
|
|
$
|
41,817
|
|
|
100.0
|
%
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||
|
|
Recorded
Investment
|
|
% of
Total
|
|
Recorded
Investment
|
|
% of
Total
|
||||||
|
|
(Dollars in millions)
|
||||||||||||
Loan-to-value ratios:
|
|
|
|
|
|
|
|
|
||||||
Less than 65%
|
|
$
|
12,403
|
|
|
95.6
|
%
|
|
$
|
12,023
|
|
|
95.7
|
%
|
65% to 75%
|
|
546
|
|
|
4.2
|
|
|
436
|
|
|
3.5
|
|
||
76% to 80%
|
|
9
|
|
|
0.1
|
|
|
17
|
|
|
0.1
|
|
||
Greater than 80%
|
|
9
|
|
|
0.1
|
|
|
88
|
|
|
0.7
|
|
||
Total
|
|
$
|
12,967
|
|
|
100.0
|
%
|
|
$
|
12,564
|
|
|
100.0
|
%
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||
|
|
Recorded
Investment
|
|
% of
Total
|
|
Recorded
Investment
|
|
% of
Total
|
||||||
|
|
(Dollars in millions)
|
||||||||||||
Performance indicators:
|
|
|
|
|
|
|
|
|
||||||
Performing
|
|
$
|
11,169
|
|
|
96.3
|
%
|
|
$
|
10,448
|
|
|
96.5
|
%
|
Nonperforming
|
|
430
|
|
|
3.7
|
|
|
381
|
|
|
3.5
|
|
||
Total
|
|
$
|
11,599
|
|
|
100.0
|
%
|
|
$
|
10,829
|
|
|
100.0
|
%
|
|
|
Past Due
|
|
Greater than 90 Days Past Due and Still
Accruing Interest
|
|
Nonaccrual
|
||||||||||||||||||
|
|
September 30, 2017
|
|
December 31, 2016
|
|
September 30, 2017
|
|
December 31, 2016
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Commercial
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
—
|
|
Agricultural
|
|
134
|
|
|
127
|
|
|
125
|
|
|
104
|
|
|
36
|
|
|
23
|
|
||||||
Residential
|
|
430
|
|
|
381
|
|
|
30
|
|
|
37
|
|
|
400
|
|
|
344
|
|
||||||
Total
|
|
$
|
565
|
|
|
$
|
511
|
|
|
$
|
155
|
|
|
$
|
144
|
|
|
$
|
437
|
|
|
$
|
367
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
|
|
(In millions)
|
||||||
Fixed maturity securities
|
|
$
|
21,979
|
|
|
$
|
20,300
|
|
Fixed maturity securities with noncredit OTTI losses included in AOCI
|
|
37
|
|
|
8
|
|
||
Total fixed maturity securities
|
|
22,016
|
|
|
20,308
|
|
||
Equity securities
|
|
444
|
|
|
485
|
|
||
Derivatives
|
|
1,690
|
|
|
2,923
|
|
||
Other
|
|
121
|
|
|
23
|
|
||
Subtotal
|
|
24,271
|
|
|
23,739
|
|
||
Amounts allocated from:
|
|
|
|
|
||||
Future policy benefits
|
|
(63
|
)
|
|
(1,114
|
)
|
||
DAC and VOBA related to noncredit OTTI losses recognized in AOCI
|
|
(1
|
)
|
|
(3
|
)
|
||
DAC, VOBA and DSI
|
|
(1,647
|
)
|
|
(1,430
|
)
|
||
Policyholder dividend obligation
|
|
(2,201
|
)
|
|
(1,931
|
)
|
||
Subtotal
|
|
(3,912
|
)
|
|
(4,478
|
)
|
||
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI
|
|
(11
|
)
|
|
(1
|
)
|
||
Deferred income tax benefit (expense)
|
|
(6,997
|
)
|
|
(6,623
|
)
|
||
Net unrealized investment gains (losses)
|
|
13,351
|
|
|
12,637
|
|
||
Net unrealized investment gains (losses) attributable to noncontrolling interests
|
|
(8
|
)
|
|
(6
|
)
|
||
Net unrealized investment gains (losses) attributable to MetLife, Inc.
|
|
$
|
13,343
|
|
|
$
|
12,631
|
|
|
Nine Months
Ended September 30, 2017 |
||
|
(In millions)
|
||
Balance, beginning of period
|
$
|
12,631
|
|
Fixed maturity securities on which noncredit OTTI losses have been recognized
|
29
|
|
|
Unrealized investment gains (losses) during the period
|
503
|
|
|
Unrealized investment gains (losses) relating to:
|
|
||
Future policy benefits
|
1,051
|
|
|
DAC and VOBA related to noncredit OTTI losses recognized in AOCI
|
2
|
|
|
DAC, VOBA and DSI
|
(217
|
)
|
|
Policyholder dividend obligation
|
(270
|
)
|
|
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI
|
(10
|
)
|
|
Deferred income tax benefit (expense)
|
(374
|
)
|
|
Net unrealized investment gains (losses)
|
13,345
|
|
|
Net unrealized investment gains (losses) attributable to noncontrolling interests
|
(2
|
)
|
|
Balance, end of period
|
$
|
13,343
|
|
Change in net unrealized investment gains (losses)
|
$
|
714
|
|
Change in net unrealized investment gains (losses) attributable to noncontrolling interests
|
(2
|
)
|
|
Change in net unrealized investment gains (losses) attributable to MetLife, Inc.
|
$
|
712
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
|
(In millions)
|
||||||
Securities on loan: (1)
|
|
|
|
||||
Amortized cost
|
$
|
18,219
|
|
|
$
|
18,798
|
|
Estimated fair value
|
$
|
19,542
|
|
|
$
|
19,753
|
|
Cash collateral received from counterparties (2)
|
$
|
19,996
|
|
|
$
|
20,114
|
|
Security collateral received from counterparties (3)
|
$
|
—
|
|
|
$
|
20
|
|
Reinvestment portfolio — estimated fair value
|
$
|
20,155
|
|
|
$
|
20,133
|
|
(1)
|
Included within fixed maturity securities.
|
(2)
|
Included within payables for collateral under securities loaned and other transactions.
|
(3)
|
Security collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the consolidated financial statements.
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||||||||||
|
|
Remaining Tenor of Securities
Lending Agreements
|
|
|
|
Remaining Tenor of Securities
Lending Agreements
|
|
|
||||||||||||||||||||||||
|
|
Open (1)
|
|
1 Month
or Less
|
|
1 to 6
Months
|
|
Total
|
|
Open (1)
|
|
1 Month
or Less
|
|
1 to 6
Months
|
|
Total
|
||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||
Cash collateral liability by loaned security type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. government and agency
|
|
$
|
4,362
|
|
|
$
|
7,952
|
|
|
$
|
6,694
|
|
|
$
|
19,008
|
|
|
$
|
4,480
|
|
|
$
|
6,496
|
|
|
$
|
8,383
|
|
|
$
|
19,359
|
|
Foreign government
|
|
—
|
|
|
507
|
|
|
481
|
|
|
988
|
|
|
—
|
|
|
569
|
|
|
143
|
|
|
712
|
|
||||||||
U.S. corporate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43
|
|
|
—
|
|
|
43
|
|
||||||||
Total
|
|
$
|
4,362
|
|
|
$
|
8,459
|
|
|
$
|
7,175
|
|
|
$
|
19,996
|
|
|
$
|
4,480
|
|
|
$
|
7,108
|
|
|
$
|
8,526
|
|
|
$
|
20,114
|
|
(1)
|
The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral.
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
|
|
(In millions)
|
||||||
Securities on loan: (1)
|
|
|
|
|
||||
Amortized cost
|
|
$
|
1,972
|
|
|
$
|
98
|
|
Estimated fair value
|
|
$
|
2,108
|
|
|
$
|
113
|
|
Cash collateral received from counterparties (2)
|
|
$
|
2,062
|
|
|
$
|
102
|
|
Reinvestment portfolio — estimated fair value
|
|
$
|
2,072
|
|
|
$
|
100
|
|
(1)
|
Included within fixed maturity securities.
|
(2)
|
Included within payables for collateral under securities loaned and other transactions and other liabilities.
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
|
Remaining Tenor of
Repurchase Agreements
|
|
|
|
Remaining Tenor of
Repurchase Agreements
|
|
|
||||||||||||||||
|
|
1 Month
or Less
|
|
1 to 6
Months
|
|
Total
|
|
1 Month
or Less
|
|
1 to 6
Months
|
|
Total
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Cash collateral liability by loaned security type:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government and agency
|
|
$
|
1,960
|
|
|
$
|
5
|
|
|
$
|
1,965
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
All other corporate and government
|
|
—
|
|
|
97
|
|
|
97
|
|
|
46
|
|
|
51
|
|
|
97
|
|
||||||
Total
|
|
$
|
1,960
|
|
|
$
|
102
|
|
|
$
|
2,062
|
|
|
$
|
51
|
|
|
$
|
51
|
|
|
$
|
102
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
|
|
(In millions)
|
||||||
Invested assets on deposit (regulatory deposits)
|
|
$
|
1,944
|
|
|
$
|
1,925
|
|
Invested assets held in trust (collateral financing arrangement and reinsurance agreements)
|
|
2,655
|
|
|
2,057
|
|
||
Invested assets pledged as collateral
|
|
23,817
|
|
|
23,882
|
|
||
Total invested assets on deposit, held in trust and pledged as collateral
|
|
$
|
28,416
|
|
|
$
|
27,864
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
|
Total
Assets |
|
Total
Liabilities |
|
Total
Assets |
|
Total
Liabilities |
||||||||
|
|
(In millions)
|
||||||||||||||
Renewable energy partnership (1)
|
|
$
|
114
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
CSEs (assets (primarily FVO securities) and liabilities (primarily debt)) (2)
|
|
7
|
|
|
6
|
|
|
9
|
|
|
12
|
|
||||
Other investments (3)
|
|
34
|
|
|
—
|
|
|
50
|
|
|
—
|
|
||||
Total
|
|
$
|
155
|
|
|
$
|
6
|
|
|
$
|
59
|
|
|
$
|
12
|
|
(1)
|
Assets of the renewable energy partnership, primarily consisting of other invested assets, were consolidated in earlier periods as the two investors are subsidiaries of MLIC and Brighthouse. As a result of the Separation and a reassessment in the third quarter of 2017, the renewable energy partnership was determined to be a consolidated VIE.
|
(2)
|
The Company consolidates entities that are structured 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.
|
(3)
|
Other investments is primarily comprised of other invested assets and other limited partnership interests.
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
|
Carrying
Amount |
|
Maximum
Exposure to Loss (1) |
|
Carrying
Amount |
|
Maximum
Exposure to Loss (1) |
||||||||
|
|
(In millions)
|
||||||||||||||
Fixed maturity securities AFS:
|
|
|
|
|
|
|
|
|
||||||||
Structured Securities (2)
|
|
$
|
49,663
|
|
|
$
|
49,663
|
|
|
$
|
46,773
|
|
|
$
|
46,773
|
|
U.S. and foreign corporate
|
|
1,605
|
|
|
1,605
|
|
|
1,940
|
|
|
1,940
|
|
||||
Other limited partnership interests
|
|
4,657
|
|
|
8,417
|
|
|
4,714
|
|
|
8,990
|
|
||||
Other invested assets
|
|
2,286
|
|
|
2,697
|
|
|
2,206
|
|
|
2,777
|
|
||||
Other (3)
|
|
114
|
|
|
128
|
|
|
199
|
|
|
215
|
|
||||
Total
|
|
$
|
58,325
|
|
|
$
|
62,510
|
|
|
$
|
55,832
|
|
|
$
|
60,695
|
|
(1)
|
The maximum exposure to loss relating to fixed maturity securities AFS 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 and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments. 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
$123 million
and
$150 million
at
September 30, 2017
and
December 31, 2016
, 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 in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity.
|
(3)
|
Other is primarily comprised of real estate joint ventures and common stock.
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(In millions)
|
||||||||||||||
Investment income:
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities
|
$
|
2,869
|
|
|
$
|
2,906
|
|
|
$
|
8,528
|
|
|
$
|
8,838
|
|
Equity securities
|
31
|
|
|
29
|
|
|
93
|
|
|
90
|
|
||||
FVO securities — FVO general account securities (1)
|
16
|
|
|
25
|
|
|
61
|
|
|
41
|
|
||||
Mortgage loans
|
809
|
|
|
710
|
|
|
2,303
|
|
|
2,165
|
|
||||
Policy loans
|
130
|
|
|
129
|
|
|
386
|
|
|
385
|
|
||||
Real estate and real estate joint ventures
|
156
|
|
|
199
|
|
|
478
|
|
|
490
|
|
||||
Other limited partnership interests
|
214
|
|
|
184
|
|
|
648
|
|
|
309
|
|
||||
Cash, cash equivalents and short-term investments
|
52
|
|
|
38
|
|
|
159
|
|
|
112
|
|
||||
Operating joint ventures
|
6
|
|
|
5
|
|
|
13
|
|
|
28
|
|
||||
Other
|
71
|
|
|
90
|
|
|
196
|
|
|
178
|
|
||||
Subtotal
|
4,354
|
|
|
4,315
|
|
|
12,865
|
|
|
12,636
|
|
||||
Less: Investment expenses
|
293
|
|
|
235
|
|
|
820
|
|
|
732
|
|
||||
Subtotal, net
|
4,061
|
|
|
4,080
|
|
|
12,045
|
|
|
11,904
|
|
||||
FVO securities — FVO contractholder-directed unit-linked investments (1)
|
234
|
|
|
529
|
|
|
864
|
|
|
623
|
|
||||
Net investment income
|
$
|
4,295
|
|
|
$
|
4,609
|
|
|
$
|
12,909
|
|
|
$
|
12,527
|
|
(1)
|
Changes in estimated fair value subsequent to purchase for securities still held as of the end of the respective periods included in net investment income were
$154 million
and
$540 million
for the
three months
and
nine months ended
September 30, 2017
, respectively, and
$407 million
and
$283 million
for the
three months
and
nine months ended
September 30, 2016
, respectively.
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(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:
|
|
|
|
|
|
|
|
||||||||
Consumer
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
Industrial
|
—
|
|
|
—
|
|
|
—
|
|
|
(63
|
)
|
||||
Communications
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||
Total U.S. and foreign corporate securities
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|
(66
|
)
|
||||
RMBS
|
(1
|
)
|
|
(9
|
)
|
|
(1
|
)
|
|
(15
|
)
|
||||
ABS
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||
State and political subdivision
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
OTTI losses on fixed maturity securities recognized in earnings
|
(5
|
)
|
|
(9
|
)
|
|
(7
|
)
|
|
(83
|
)
|
||||
Fixed maturity securities — net gains (losses) on sales and disposals (1)
|
284
|
|
|
129
|
|
|
325
|
|
|
455
|
|
||||
Total gains (losses) on fixed maturity securities
|
279
|
|
|
120
|
|
|
318
|
|
|
372
|
|
||||
Total gains (losses) on equity securities:
|
|
|
|
|
|
|
|
||||||||
Total OTTI losses recognized — by sector:
|
|
|
|
|
|
|
|
||||||||
Common stock
|
(4
|
)
|
|
(5
|
)
|
|
(16
|
)
|
|
(71
|
)
|
||||
Non-redeemable preferred stock
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
OTTI losses on equity securities recognized in earnings
|
(4
|
)
|
|
(5
|
)
|
|
(17
|
)
|
|
(71
|
)
|
||||
Equity securities — net gains (losses) on sales and disposals
|
6
|
|
|
9
|
|
|
55
|
|
|
24
|
|
||||
Total gains (losses) on equity securities
|
2
|
|
|
4
|
|
|
38
|
|
|
(47
|
)
|
||||
Mortgage loans (2)
|
29
|
|
|
(41
|
)
|
|
3
|
|
|
(197
|
)
|
||||
Real estate and real estate joint ventures
|
169
|
|
|
19
|
|
|
436
|
|
|
67
|
|
||||
Other limited partnership interests
|
(33
|
)
|
|
(9
|
)
|
|
(51
|
)
|
|
(43
|
)
|
||||
Other
|
29
|
|
|
(24
|
)
|
|
(92
|
)
|
|
(105
|
)
|
||||
Subtotal
|
475
|
|
|
69
|
|
|
652
|
|
|
47
|
|
||||
FVO CSEs:
|
|
|
|
|
|
|
|
||||||||
Securities
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
||||
Non-investment portfolio gains (losses) (3)(4)(5)
|
(1,081
|
)
|
|
161
|
|
|
(1,091
|
)
|
|
549
|
|
||||
Subtotal
|
(1,081
|
)
|
|
162
|
|
|
(1,091
|
)
|
|
551
|
|
||||
Total net investment gains (losses)
|
$
|
(606
|
)
|
|
$
|
231
|
|
|
$
|
(439
|
)
|
|
$
|
598
|
|
(1)
|
Fixed maturity securities net gains (losses) on sales and disposals for both the
three months
and
nine months ended
September 30, 2017
includes
$276 million
in previously deferred gains on prior period transfers of securities to Brighthouse, as such gains are no longer eliminated in consolidation after the Separation. See Note
3
.
|
(2)
|
Mortgage loans gains (losses) for both the
three months
and
nine months ended
September 30, 2017
includes
$47 million
of previously deferred gains on prior period transfers of mortgage loans to Brighthouse as such gains are no longer eliminated in consolidation after the Separation. See Note
3
.
|
(3)
|
Non-investment portfolio gains (losses) for both the
three months
and
nine months ended
September 30, 2017
includes a loss of
$1,016 million
which represents a mark-to-market loss attributable to the FVO Brighthouse Common Stock held by the Company at Separation. See Note 3.
|
(4)
|
Non-investment portfolio gains (losses) for both the
three months
and
nine months ended
September 30, 2017
includes a loss of
$45 million
which represents the change in estimated fair value of FVO Brighthouse Common Stock held by the Company from the date of Separation to
September 30, 2017
. See Note
3
.
|
(5)
|
Non-investment portfolio gains (losses) for both the
three months
and
nine months ended
September 30, 2016 includes a gain of
$103 million
in connection with the sale to Massachusetts Mutual Life Insurance Company (“MassMutual”).
See Note
3
of the Notes to the Consolidated Financial Statements included in the 2016 Annual Report.
|
|
Three Months
Ended September 30, |
||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
Fixed Maturity Securities
|
|
Equity Securities
|
||||||||||||
|
(In millions)
|
||||||||||||||
Proceeds
|
$
|
8,586
|
|
|
$
|
16,634
|
|
|
$
|
316
|
|
|
$
|
35
|
|
Gross investment gains
|
$
|
364
|
|
|
$
|
232
|
|
|
$
|
11
|
|
|
$
|
11
|
|
Gross investment losses
|
(80
|
)
|
|
(103
|
)
|
|
(5
|
)
|
|
(2
|
)
|
||||
OTTI losses
|
(5
|
)
|
|
(9
|
)
|
|
(4
|
)
|
|
(5
|
)
|
||||
Net investment gains (losses)
|
$
|
279
|
|
|
$
|
120
|
|
|
$
|
2
|
|
|
$
|
4
|
|
|
Nine Months
Ended September 30, |
||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
Fixed Maturity Securities
|
|
Equity Securities
|
||||||||||||
|
(In millions)
|
||||||||||||||
Proceeds
|
$
|
35,742
|
|
|
$
|
60,006
|
|
|
$
|
702
|
|
|
$
|
109
|
|
Gross investment gains
|
$
|
623
|
|
|
$
|
921
|
|
|
$
|
66
|
|
|
$
|
34
|
|
Gross investment losses
|
(298
|
)
|
|
(466
|
)
|
|
(11
|
)
|
|
(10
|
)
|
||||
OTTI losses
|
(7
|
)
|
|
(83
|
)
|
|
(17
|
)
|
|
(71
|
)
|
||||
Net investment gains (losses)
|
$
|
318
|
|
|
$
|
372
|
|
|
$
|
38
|
|
|
$
|
(47
|
)
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(In millions)
|
||||||||||||||
Balance, beginning of period
|
$
|
170
|
|
|
$
|
198
|
|
|
$
|
192
|
|
|
$
|
211
|
|
Addition:
|
|
|
|
|
|
|
|
||||||||
Additional impairments — credit loss OTTI on securities previously impaired
|
—
|
|
|
9
|
|
|
—
|
|
|
14
|
|
||||
Reduction:
|
|
|
|
|
|
|
|
||||||||
Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI
|
(5
|
)
|
|
(10
|
)
|
|
(27
|
)
|
|
(28
|
)
|
||||
Balance, end of period
|
$
|
165
|
|
|
$
|
197
|
|
|
$
|
165
|
|
|
$
|
197
|
|
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
|
•
|
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 estimated 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 estimated fair value with changes in estimated 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.
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(In millions)
|
||||||||||||||
Freestanding derivatives and hedging gains (losses) (1)
|
$
|
(424
|
)
|
|
$
|
(820
|
)
|
|
$
|
(1,084
|
)
|
|
$
|
2,918
|
|
Embedded derivatives gains (losses)
|
234
|
|
|
277
|
|
|
421
|
|
|
(1,480
|
)
|
||||
Total net derivative gains (losses)
|
$
|
(190
|
)
|
|
$
|
(543
|
)
|
|
$
|
(663
|
)
|
|
$
|
1,438
|
|
(1)
|
Includes foreign currency transaction gains (losses) on hedged items in cash flow and nonqualifying hedging relationships, which are not presented elsewhere in this note.
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(In millions)
|
||||||||||||||
Qualifying hedges:
|
|
|
|
|
|
|
|
||||||||
Net investment income
|
$
|
72
|
|
|
$
|
71
|
|
|
$
|
217
|
|
|
$
|
192
|
|
Interest credited to policyholder account balances
|
(19
|
)
|
|
—
|
|
|
(40
|
)
|
|
7
|
|
||||
Other expenses
|
(2
|
)
|
|
(3
|
)
|
|
(7
|
)
|
|
(9
|
)
|
||||
Nonqualifying hedges:
|
|
|
|
|
|
|
|
||||||||
Net investment income
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Net derivative gains (losses)
|
126
|
|
|
187
|
|
|
440
|
|
|
522
|
|
||||
Policyholder benefits and claims
|
2
|
|
|
2
|
|
|
6
|
|
|
6
|
|
||||
Total
|
$
|
179
|
|
|
$
|
257
|
|
|
$
|
616
|
|
|
$
|
717
|
|
|
|
Net
Derivative Gains (Losses) |
|
Net
Investment Income (1) |
|
Policyholder
Benefits and Claims (2) |
||||||
|
|
(In millions)
|
||||||||||
Three Months Ended September 30, 2017
|
|
|
|
|
|
|
||||||
Interest rate derivatives
|
|
$
|
(148
|
)
|
|
$
|
(2
|
)
|
|
$
|
(3
|
)
|
Foreign currency exchange rate derivatives
|
|
(346
|
)
|
|
—
|
|
|
2
|
|
|||
Credit derivatives — purchased
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|||
Credit derivatives — written
|
|
35
|
|
|
—
|
|
|
—
|
|
|||
Equity derivatives
|
|
(238
|
)
|
|
(3
|
)
|
|
(61
|
)
|
|||
Total
|
|
$
|
(699
|
)
|
|
$
|
(5
|
)
|
|
$
|
(62
|
)
|
|
|
|
|
|
|
|
||||||
Three Months Ended September 30, 2016
|
|
|
|
|
|
|
||||||
Interest rate derivatives
|
|
$
|
(710
|
)
|
|
$
|
—
|
|
|
$
|
22
|
|
Foreign currency exchange rate derivatives
|
|
154
|
|
|
—
|
|
|
(5
|
)
|
|||
Credit derivatives — purchased
|
|
(21
|
)
|
|
—
|
|
|
—
|
|
|||
Credit derivatives — written
|
|
51
|
|
|
—
|
|
|
—
|
|
|||
Equity derivatives
|
|
(418
|
)
|
|
(3
|
)
|
|
(72
|
)
|
|||
Total
|
|
$
|
(944
|
)
|
|
$
|
(3
|
)
|
|
$
|
(55
|
)
|
|
|
|
|
|
|
|
||||||
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
||||||
Interest rate derivatives
|
|
$
|
(466
|
)
|
|
$
|
(2
|
)
|
|
$
|
(16
|
)
|
Foreign currency exchange rate derivatives
|
|
(527
|
)
|
|
—
|
|
|
4
|
|
|||
Credit derivatives — purchased
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|||
Credit derivatives — written
|
|
111
|
|
|
—
|
|
|
—
|
|
|||
Equity derivatives
|
|
(824
|
)
|
|
(7
|
)
|
|
(176
|
)
|
|||
Total
|
|
$
|
(1,723
|
)
|
|
$
|
(9
|
)
|
|
$
|
(188
|
)
|
Nine Months Ended September 30, 2016
|
|
|
|
|
|
|
||||||
Interest rate derivatives
|
|
$
|
1,503
|
|
|
$
|
—
|
|
|
$
|
90
|
|
Foreign currency exchange rate derivatives
|
|
1,841
|
|
|
—
|
|
|
(17
|
)
|
|||
Credit derivatives — purchased
|
|
(48
|
)
|
|
—
|
|
|
—
|
|
|||
Credit derivatives — written
|
|
49
|
|
|
—
|
|
|
—
|
|
|||
Equity derivatives
|
|
(327
|
)
|
|
(13
|
)
|
|
(88
|
)
|
|||
Total
|
|
$
|
3,018
|
|
|
$
|
(13
|
)
|
|
$
|
(15
|
)
|
(1)
|
Changes in estimated fair value related to economic hedges of equity method investments in joint ventures, derivatives held in relation to trading portfolios and 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.
|
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)
|
||||||||||
Three Months Ended September 30, 2017
|
|
|
||||||||||||
Interest rate swaps:
|
|
Fixed maturity securities
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
|
Policyholder liabilities (1)
|
|
(14
|
)
|
|
13
|
|
|
(1
|
)
|
|||
Foreign currency swaps:
|
|
Foreign-denominated fixed maturity securities
|
|
(10
|
)
|
|
10
|
|
|
—
|
|
|||
|
|
Foreign-denominated policyholder account balances (2)
|
|
15
|
|
|
(16
|
)
|
|
(1
|
)
|
|||
Foreign currency forwards:
|
|
Foreign-denominated fixed maturity securities
|
|
(4
|
)
|
|
4
|
|
|
—
|
|
|||
Total
|
|
$
|
(12
|
)
|
|
$
|
11
|
|
|
$
|
(1
|
)
|
||
Three Months Ended September 30, 2016
|
|
|
||||||||||||
Interest rate swaps:
|
|
Fixed maturity securities
|
|
$
|
5
|
|
|
$
|
(4
|
)
|
|
$
|
1
|
|
|
|
Policyholder liabilities (1)
|
|
(47
|
)
|
|
42
|
|
|
(5
|
)
|
|||
Foreign currency swaps:
|
|
Foreign-denominated fixed maturity securities
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|||
|
|
Foreign-denominated policyholder account balances (2)
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
|||
Foreign currency forwards:
|
|
Foreign-denominated fixed maturity securities
|
|
19
|
|
|
(18
|
)
|
|
1
|
|
|||
Total
|
|
$
|
(23
|
)
|
|
$
|
20
|
|
|
$
|
(3
|
)
|
||
Nine Months Ended September 30, 2017
|
|
|
||||||||||||
Interest rate swaps:
|
|
Fixed maturity securities
|
|
$
|
2
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
|
Policyholder liabilities (1)
|
|
(16
|
)
|
|
84
|
|
|
68
|
|
|||
Foreign currency swaps:
|
|
Foreign-denominated fixed maturity securities
|
|
(15
|
)
|
|
16
|
|
|
1
|
|
|||
|
|
Foreign-denominated policyholder account balances (2)
|
|
61
|
|
|
(40
|
)
|
|
21
|
|
|||
Foreign currency forwards:
|
|
Foreign-denominated fixed maturity securities
|
|
20
|
|
|
(18
|
)
|
|
2
|
|
|||
Total
|
|
$
|
52
|
|
|
$
|
40
|
|
|
$
|
92
|
|
||
Nine Months Ended September 30, 2016
|
|
|
|
|
|
|
||||||||
Interest rate swaps:
|
|
Fixed maturity securities
|
|
$
|
(3
|
)
|
|
$
|
1
|
|
|
$
|
(2
|
)
|
|
|
Policyholder liabilities (1)
|
|
472
|
|
|
(482
|
)
|
|
(10
|
)
|
|||
Foreign currency swaps:
|
|
Foreign-denominated fixed maturity securities
|
|
7
|
|
|
(7
|
)
|
|
—
|
|
|||
|
|
Foreign-denominated policyholder account balances (2)
|
|
(27
|
)
|
|
24
|
|
|
(3
|
)
|
|||
Foreign currency forwards:
|
|
Foreign-denominated fixed maturity securities
|
|
295
|
|
|
(272
|
)
|
|
23
|
|
|||
Total
|
|
$
|
744
|
|
|
$
|
(736
|
)
|
|
$
|
8
|
|
(1)
|
Fixed rate liabilities reported in policyholder account balances 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)
|
||||||||||||||||||
Three Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate swaps
|
|
$
|
14
|
|
|
$
|
9
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
Interest rate forwards
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Foreign currency swaps
|
|
(140
|
)
|
|
294
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||||
Credit forwards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
(125
|
)
|
|
$
|
302
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
Three Months Ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate swaps
|
|
$
|
22
|
|
|
$
|
28
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest rate forwards
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Foreign currency swaps
|
|
(23
|
)
|
|
54
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||||
Credit forwards
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
(8
|
)
|
|
$
|
82
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate swaps
|
|
$
|
91
|
|
|
$
|
23
|
|
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
5
|
|
Interest rate forwards
|
|
138
|
|
|
(5
|
)
|
|
2
|
|
|
1
|
|
|
(1
|
)
|
|||||
Foreign currency swaps
|
|
(99
|
)
|
|
915
|
|
|
(1
|
)
|
|
1
|
|
|
(2
|
)
|
|||||
Credit forwards
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
130
|
|
|
$
|
934
|
|
|
$
|
13
|
|
|
$
|
2
|
|
|
$
|
2
|
|
Nine Months Ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate swaps
|
|
$
|
339
|
|
|
$
|
44
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest rate forwards
|
|
33
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|||||
Foreign currency swaps
|
|
1,025
|
|
|
90
|
|
|
(1
|
)
|
|
1
|
|
|
(1
|
)
|
|||||
Credit forwards
|
|
—
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
1,397
|
|
|
$
|
137
|
|
|
$
|
11
|
|
|
$
|
2
|
|
|
$
|
(1
|
)
|
Derivatives in Net Investment Hedging Relationships (1), (2)
|
|
Amount of Gains (Losses) Deferred in AOCI
(Effective Portion) |
||
|
|
(In millions)
|
||
Three Months Ended September 30, 2017
|
|
|
||
Foreign currency forwards
|
|
$
|
(35
|
)
|
Currency options
|
|
(1
|
)
|
|
Total
|
|
$
|
(36
|
)
|
Three Months Ended September 30, 2016
|
|
|
||
Foreign currency forwards
|
|
$
|
(23
|
)
|
Currency options
|
|
(37
|
)
|
|
Total
|
|
$
|
(60
|
)
|
Nine Months Ended September 30, 2017
|
|
|
||
Foreign currency forwards
|
|
$
|
(161
|
)
|
Currency options
|
|
(234
|
)
|
|
Total
|
|
$
|
(395
|
)
|
Nine Months Ended September 30, 2016
|
|
|
||
Foreign currency forwards
|
|
$
|
(358
|
)
|
Currency options
|
|
(351
|
)
|
|
Total
|
|
$
|
(709
|
)
|
(1)
|
During both the
three months
and
nine months ended
September 30, 2017
and
2016
, 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.
|
(2)
|
There was
no
ineffectiveness recognized for the Company’s hedges of net investments in foreign operations. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||
Rating Agency Designation of Referenced
Credit Obligations (1)
|
|
Estimated
Fair Value
of Credit
Default
Swaps
|
|
Maximum
Amount of Future Payments under Credit Default Swaps |
|
Weighted
Average Years to Maturity (2) |
|
Estimated
Fair Value
of Credit
Default
Swaps
|
|
Maximum
Amount of Future Payments under Credit Default Swaps |
|
Weighted
Average Years to Maturity (2) |
||||||||||
|
|
(Dollars in millions)
|
||||||||||||||||||||
Aaa/Aa/A
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single name credit default swaps (3)
|
|
$
|
8
|
|
|
$
|
445
|
|
|
2.5
|
|
|
$
|
6
|
|
|
$
|
449
|
|
|
3.1
|
|
Credit default swaps referencing indices
|
|
43
|
|
|
2,268
|
|
|
3.0
|
|
|
34
|
|
|
2,335
|
|
|
3.6
|
|
||||
Subtotal
|
|
51
|
|
|
2,713
|
|
|
2.9
|
|
|
40
|
|
|
2,784
|
|
|
3.5
|
|
||||
Baa
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single name credit default swaps (3)
|
|
8
|
|
|
685
|
|
|
1.9
|
|
|
5
|
|
|
751
|
|
|
2.5
|
|
||||
Credit default swaps referencing indices
|
|
168
|
|
|
8,073
|
|
|
5.3
|
|
|
88
|
|
|
6,711
|
|
|
5.0
|
|
||||
Subtotal
|
|
176
|
|
|
8,758
|
|
|
5.0
|
|
|
93
|
|
|
7,462
|
|
|
4.8
|
|
||||
Ba
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single name credit default swaps (3)
|
|
—
|
|
|
115
|
|
|
3.6
|
|
|
(2
|
)
|
|
135
|
|
|
4.1
|
|
||||
Credit default swaps referencing indices
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Subtotal
|
|
—
|
|
|
115
|
|
|
3.6
|
|
|
(2
|
)
|
|
135
|
|
|
4.1
|
|
||||
B
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single name credit default swaps (3)
|
|
2
|
|
|
30
|
|
|
2.6
|
|
|
1
|
|
|
70
|
|
|
1.8
|
|
||||
Credit default swaps referencing indices
|
|
26
|
|
|
330
|
|
|
5.2
|
|
|
20
|
|
|
281
|
|
|
5.0
|
|
||||
Subtotal
|
|
28
|
|
|
360
|
|
|
5.0
|
|
|
21
|
|
|
351
|
|
|
4.3
|
|
||||
Total
|
|
$
|
255
|
|
|
$
|
11,946
|
|
|
4.5
|
|
|
$
|
152
|
|
|
$
|
10,732
|
|
|
4.4
|
|
(1)
|
The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), Standard & Poor’s Global Ratings (“S&P”) and Fitch Ratings. If no rating is available from a rating agency, then an internally developed rating is used.
|
(2)
|
The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts.
|
(3)
|
Single name credit default swaps may be referenced to the credit of corporations, foreign governments, or state and political subdivisions.
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement (1)
|
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||
|
|
(In millions)
|
||||||||||||||
Gross estimated fair value of derivatives:
|
|
|
|
|
|
|
|
|
||||||||
OTC-bilateral (1)
|
|
$
|
8,227
|
|
|
$
|
4,346
|
|
|
$
|
9,976
|
|
|
$
|
5,721
|
|
OTC-cleared (1), (6)
|
|
621
|
|
|
248
|
|
|
2,275
|
|
|
1,142
|
|
||||
Exchange-traded
|
|
17
|
|
|
31
|
|
|
33
|
|
|
15
|
|
||||
Total gross estimated fair value of derivatives (1)
|
|
8,865
|
|
|
4,625
|
|
|
12,284
|
|
|
6,878
|
|
||||
Amounts offset on the consolidated balance sheets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Estimated fair value of derivatives presented on the consolidated balance sheets (1), (6)
|
|
8,865
|
|
|
4,625
|
|
|
12,284
|
|
|
6,878
|
|
||||
Gross amounts not offset on the consolidated balance sheets:
|
|
|
|
|
|
|
|
|
||||||||
Gross estimated fair value of derivatives: (2)
|
|
|
|
|
|
|
|
|
||||||||
OTC-bilateral
|
|
(2,654
|
)
|
|
(2,654
|
)
|
|
(3,787
|
)
|
|
(3,787
|
)
|
||||
OTC-cleared
|
|
(60
|
)
|
|
(60
|
)
|
|
(903
|
)
|
|
(903
|
)
|
||||
Exchange-traded
|
|
(10
|
)
|
|
(10
|
)
|
|
(5
|
)
|
|
(5
|
)
|
||||
Cash collateral: (3), (4)
|
|
|
|
|
|
|
|
|
||||||||
OTC-bilateral
|
|
(4,351
|
)
|
|
—
|
|
|
(4,244
|
)
|
|
(84
|
)
|
||||
OTC-cleared
|
|
(541
|
)
|
|
(183
|
)
|
|
(1,335
|
)
|
|
(234
|
)
|
||||
Exchange-traded
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
(9
|
)
|
||||
Securities collateral: (5)
|
|
|
|
|
|
|
|
|
||||||||
OTC-bilateral
|
|
(1,129
|
)
|
|
(1,583
|
)
|
|
(1,640
|
)
|
|
(1,818
|
)
|
||||
OTC-cleared
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
||||
Exchange-traded
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
||||
Net amount after application of master netting agreements and collateral
|
|
$
|
120
|
|
|
$
|
109
|
|
|
$
|
370
|
|
|
$
|
38
|
|
(1)
|
At
September 30, 2017
and
December 31, 2016
, derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of
$73 million
and
$145 million
, respectively, and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of
($43) million
and
($43) 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 by the Company for OTC-bilateral and OTC-cleared derivatives 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 on the balance sheet.
|
(4)
|
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 on the balance sheet. 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
September 30, 2017
and
December 31, 2016
, the Company received excess cash collateral of
$284 million
and
$164 million
, respectively, and provided excess cash collateral of
$281 million
and
$461 million
, respectively, which is not included in the table above due to the foregoing limitation.
|
(5)
|
Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at
September 30, 2017
,
none
of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge 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
September 30, 2017
and
December 31, 2016
, the Company received excess securities collateral with an estimated fair value of
$148 million
and
$82 million
, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At
September 30, 2017
and
December 31, 2016
, the Company provided excess securities collateral with an estimated fair value of
$364 million
and
$189 million
, respectively, for its OTC-bilateral derivatives, and
$440 million
and
$544 million
, respectively, for its OTC-cleared derivatives, and
$101 million
and
$116 million
, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation.
|
(6)
|
Effective January 3, 2017, the CME amended its rulebook, resulting in the characterization of variation margin transfers as settlement payments, as opposed to adjustments to collateral. See
Note 1
for further information on the CME amendments.
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
|
Derivatives
Subject to Credit- Contingent Provisions |
|
Derivatives
Not Subject to Credit- Contingent Provisions |
|
Total
|
|
Derivatives
Subject to
Credit-
Contingent
Provisions
|
|
Derivatives
Not Subject to Credit- Contingent Provisions |
|
Total
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Estimated Fair Value of Derivatives in a Net Liability Position (1)
|
|
$
|
1,665
|
|
|
$
|
27
|
|
|
$
|
1,692
|
|
|
$
|
1,909
|
|
|
$
|
25
|
|
|
$
|
1,934
|
|
Estimated Fair Value of Collateral Provided:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed maturity securities
|
|
$
|
1,829
|
|
|
$
|
24
|
|
|
$
|
1,853
|
|
|
$
|
1,965
|
|
|
$
|
31
|
|
|
$
|
1,996
|
|
Cash
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
91
|
|
|
$
|
—
|
|
|
$
|
91
|
|
Estimated Fair Value of Incremental Collateral Provided Upon:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One-notch downgrade in the Company’s credit or financial strength rating, as applicable
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
6
|
|
Downgrade in the Company’s credit or financial strength rating, as applicable, to a level that triggers full overnight collateralization or termination of the derivative position
|
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
9
|
|
(1)
|
After taking into consideration the existence of netting agreements.
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
(In millions)
|
||||||||||||||
Net derivative gains (losses) (1)
|
|
$
|
234
|
|
|
$
|
277
|
|
|
$
|
421
|
|
|
$
|
(1,480
|
)
|
(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
($52) million
and
($161) million
for the
three months
and
nine months ended
September 30, 2017
, respectively, and
($154) million
and
$738 million
for the
three months
and
nine months ended
September 30, 2016
, respectively.
|
|
|
September 30, 2017
|
||||||||||||||
|
|
Fair Value Hierarchy
|
|
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated Fair Value |
||||||||
|
|
(In millions)
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. corporate
|
|
$
|
—
|
|
|
$
|
75,807
|
|
|
$
|
5,848
|
|
|
$
|
81,655
|
|
Foreign government
|
|
—
|
|
|
60,591
|
|
|
198
|
|
|
60,789
|
|
||||
Foreign corporate
|
|
—
|
|
|
48,870
|
|
|
6,270
|
|
|
55,140
|
|
||||
U.S. government and agency
|
|
26,275
|
|
|
21,389
|
|
|
—
|
|
|
47,664
|
|
||||
RMBS
|
|
513
|
|
|
27,233
|
|
|
3,652
|
|
|
31,398
|
|
||||
State and political subdivision
|
|
—
|
|
|
12,284
|
|
|
61
|
|
|
12,345
|
|
||||
ABS
|
|
—
|
|
|
11,199
|
|
|
572
|
|
|
11,771
|
|
||||
CMBS
|
|
—
|
|
|
7,823
|
|
|
309
|
|
|
8,132
|
|
||||
Total fixed maturity securities
|
|
26,788
|
|
|
265,196
|
|
|
16,910
|
|
|
308,894
|
|
||||
Equity securities
|
|
1,332
|
|
|
1,020
|
|
|
424
|
|
|
2,776
|
|
||||
FVO securities (1)
|
|
13,906
|
|
|
2,328
|
|
|
304
|
|
|
16,538
|
|
||||
Short-term investments (2)
|
|
3,925
|
|
|
2,310
|
|
|
403
|
|
|
6,638
|
|
||||
Residential mortgage loans — FVO
|
|
—
|
|
|
—
|
|
|
564
|
|
|
564
|
|
||||
Other investments
|
|
80
|
|
|
114
|
|
|
—
|
|
|
194
|
|
||||
Derivative assets: (3)
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
13
|
|
|
5,698
|
|
|
3
|
|
|
5,714
|
|
||||
Foreign currency exchange rate
|
|
—
|
|
|
2,218
|
|
|
104
|
|
|
2,322
|
|
||||
Credit
|
|
—
|
|
|
229
|
|
|
38
|
|
|
267
|
|
||||
Equity market
|
|
4
|
|
|
358
|
|
|
127
|
|
|
489
|
|
||||
Total derivative assets
|
|
17
|
|
|
8,503
|
|
|
272
|
|
|
8,792
|
|
||||
Embedded derivatives within asset host contracts (4)
|
|
—
|
|
|
—
|
|
|
145
|
|
|
145
|
|
||||
Separate account assets (5)
|
|
87,151
|
|
|
115,207
|
|
|
1,041
|
|
|
203,399
|
|
||||
Total assets
|
|
$
|
133,199
|
|
|
$
|
394,678
|
|
|
$
|
20,063
|
|
|
$
|
547,940
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities: (3)
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
$
|
—
|
|
|
$
|
655
|
|
|
$
|
212
|
|
|
$
|
867
|
|
Foreign currency exchange rate
|
|
3
|
|
|
2,686
|
|
|
38
|
|
|
2,727
|
|
||||
Credit
|
|
—
|
|
|
47
|
|
|
—
|
|
|
47
|
|
||||
Equity market
|
|
28
|
|
|
714
|
|
|
285
|
|
|
1,027
|
|
||||
Total derivative liabilities
|
|
31
|
|
|
4,102
|
|
|
535
|
|
|
4,668
|
|
||||
Embedded derivatives within liability host contracts (4)
|
|
—
|
|
|
—
|
|
|
1,399
|
|
|
1,399
|
|
||||
Separate account liabilities (5)
|
|
1
|
|
|
6
|
|
|
2
|
|
|
9
|
|
||||
Total liabilities
|
|
$
|
32
|
|
|
$
|
4,108
|
|
|
$
|
1,936
|
|
|
$
|
6,076
|
|
|
|
December 31, 2016
|
||||||||||||||
|
|
Fair Value Hierarchy
|
|
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated Fair Value |
||||||||
|
|
(In millions)
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. corporate
|
|
$
|
—
|
|
|
$
|
72,811
|
|
|
$
|
5,732
|
|
|
$
|
78,543
|
|
Foreign government
|
|
—
|
|
|
55,687
|
|
|
289
|
|
|
55,976
|
|
||||
Foreign corporate
|
|
—
|
|
|
44,858
|
|
|
5,805
|
|
|
50,663
|
|
||||
U.S. government and agency
|
|
24,943
|
|
|
19,490
|
|
|
—
|
|
|
44,433
|
|
||||
RMBS
|
|
—
|
|
|
25,194
|
|
|
3,838
|
|
|
29,032
|
|
||||
State and political subdivision
|
|
—
|
|
|
12,221
|
|
|
10
|
|
|
12,231
|
|
||||
ABS
|
|
—
|
|
|
10,196
|
|
|
1,029
|
|
|
11,225
|
|
||||
CMBS
|
|
—
|
|
|
7,112
|
|
|
348
|
|
|
7,460
|
|
||||
Total fixed maturity securities
|
|
24,943
|
|
|
247,569
|
|
|
17,051
|
|
|
289,563
|
|
||||
Equity securities
|
|
1,334
|
|
|
1,092
|
|
|
468
|
|
|
2,894
|
|
||||
FVO securities (1)
|
|
11,123
|
|
|
2,513
|
|
|
287
|
|
|
13,923
|
|
||||
Short-term investments (2)
|
|
4,091
|
|
|
1,868
|
|
|
46
|
|
|
6,005
|
|
||||
Residential mortgage loans — FVO
|
|
—
|
|
|
—
|
|
|
566
|
|
|
566
|
|
||||
Other investments
|
|
86
|
|
|
71
|
|
|
—
|
|
|
157
|
|
||||
Derivative assets: (3)
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
3
|
|
|
7,556
|
|
|
2
|
|
|
7,561
|
|
||||
Foreign currency exchange rate
|
|
—
|
|
|
3,783
|
|
|
80
|
|
|
3,863
|
|
||||
Credit
|
|
—
|
|
|
145
|
|
|
30
|
|
|
175
|
|
||||
Equity market
|
|
30
|
|
|
390
|
|
|
120
|
|
|
540
|
|
||||
Total derivative assets
|
|
33
|
|
|
11,874
|
|
|
232
|
|
|
12,139
|
|
||||
Embedded derivatives within asset host contracts (4)
|
|
—
|
|
|
—
|
|
|
143
|
|
|
143
|
|
||||
Separate account assets (5)
|
|
82,818
|
|
|
111,612
|
|
|
1,148
|
|
|
195,578
|
|
||||
Total assets
|
|
$
|
124,428
|
|
|
$
|
376,599
|
|
|
$
|
19,941
|
|
|
$
|
520,968
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities: (3)
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
$
|
12
|
|
|
$
|
1,713
|
|
|
$
|
500
|
|
|
$
|
2,225
|
|
Foreign currency exchange rate
|
|
—
|
|
|
3,784
|
|
|
54
|
|
|
3,838
|
|
||||
Credit
|
|
—
|
|
|
49
|
|
|
—
|
|
|
49
|
|
||||
Equity market
|
|
3
|
|
|
566
|
|
|
240
|
|
|
809
|
|
||||
Total derivative liabilities
|
|
15
|
|
|
6,112
|
|
|
794
|
|
|
6,921
|
|
||||
Embedded derivatives within liability host contracts (4)
|
|
—
|
|
|
—
|
|
|
1,554
|
|
|
1,554
|
|
||||
Separate account liabilities (5)
|
|
—
|
|
|
16
|
|
|
7
|
|
|
23
|
|
||||
Total liabilities
|
|
$
|
15
|
|
|
$
|
6,128
|
|
|
$
|
2,355
|
|
|
$
|
8,498
|
|
(1)
|
FVO securities were comprised of over 85% FVO contractholder-directed unit-linked investments at both
September 30, 2017
and December 31, 2016.
|
(2)
|
Short-term investments as presented in the tables above differ from the amounts presented on the consolidated balance sheets because certain short-term investments are not measured at estimated fair value on a recurring basis.
|
(3)
|
Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on 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)
|
Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables and other invested assets on the consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances, future policy benefits and other liabilities on the consolidated balance sheets. At
September 30, 2017
and
December 31, 2016
, debt and equity securities also included embedded derivatives of
($140) 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. Separate account liabilities presented in the tables above represent derivative liabilities.
|
Instrument
|
Level 2
Observable Inputs
|
Level 3
Unobservable Inputs
|
|||
Fixed Maturity Securities
|
|||||
U.S. corporate and Foreign corporate securities
|
|||||
|
Valuation Approaches: Principally the market and income approaches.
|
Valuation Approaches: Principally the market approach.
|
|||
|
Key Inputs:
|
Key Inputs:
|
|||
|
•
|
quoted prices in markets that are not active
|
•
|
illiquidity premium
|
|
|
•
|
benchmark yields; spreads off benchmark yields; new issuances; issuer rating
|
•
|
delta spread adjustments to reflect specific credit-related issues
|
|
|
•
|
trades of identical or comparable securities; duration
|
•
|
credit spreads
|
|
|
•
|
Privately-placed securities are valued using the additional key inputs:
|
•
|
quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2
|
|
|
|
•
|
market yield curve; call provisions
|
|
|
|
|
•
|
observable prices and spreads for similar public or private securities that incorporate the credit quality and industry sector of the issuer
|
•
|
independent non-binding broker quotations
|
|
|
•
|
delta spread adjustments to reflect specific credit-related issues
|
|
|
Foreign government, U.S. government and agency and State and political subdivision securities
|
|||||
|
Valuation Approaches: Principally the market approach.
|
Valuation Approaches: Principally the market approach.
|
|||
|
Key Inputs:
|
Key Inputs:
|
|||
|
•
|
quoted prices in markets that are not active
|
•
|
independent non-binding broker quotations
|
|
|
•
|
benchmark U.S. Treasury yield or other yields
|
•
|
quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2
|
|
|
•
|
the spread off the U.S. Treasury yield curve for the identical security
|
|
||
|
•
|
issuer ratings and issuer spreads; broker-dealer quotes
|
•
|
credit spreads
|
|
|
•
|
comparable securities that are actively traded
|
|
|
|
Structured Securities
|
|||||
|
Valuation Approaches: Principally the market and income approaches.
|
Valuation Approaches: Principally the market and income approaches.
|
|||
|
Key Inputs:
|
Key Inputs:
|
|||
|
•
|
quoted prices in markets that are not active
|
•
|
credit spreads
|
|
|
•
|
spreads for actively traded securities; spreads off benchmark yields
|
•
|
quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2
|
|
|
•
|
expected prepayment speeds and volumes
|
|
||
|
•
|
current and forecasted loss severity; ratings; geographic region
|
•
|
independent non-binding broker quotations
|
|
|
•
|
weighted average coupon and weighted average maturity
|
|
|
|
|
•
|
average delinquency rates; debt-service coverage ratios
|
|
|
|
|
•
|
issuance-specific information, including, but not limited to:
|
|
|
|
|
|
•
|
collateral type; structure of the security; vintage of the loans
|
|
|
|
|
•
|
payment terms of the underlying assets
|
|
|
|
|
•
|
payment priority within the tranche; deal performance
|
|
|
(1)
|
Estimated fair value equals carrying value, based on the value of the underlying assets, including: mutual fund interests, fixed maturity securities, equity securities, derivatives, hedge funds, other limited partnership interests, short-term investments and cash and cash equivalents. Fixed maturity securities, equity securities, derivatives, short-term investments and cash and cash equivalents are similar in nature to the instruments described under “— Securities, Short-term Investments and Other Investments” and “— Derivatives — Freestanding Derivatives.”
|
Instrument
|
|
Interest Rate
|
|
Foreign Currency
Exchange Rate
|
|
Credit
|
|
Equity Market
|
Inputs common to Level 2 and Level 3 by instrument type
|
•
|
swap yield curves
|
•
|
swap yield curves
|
•
|
swap yield curves
|
•
|
swap yield curves
|
•
|
basis curves
|
•
|
basis curves
|
•
|
credit curves
|
•
|
spot equity index levels
|
|
•
|
interest rate volatility (1)
|
•
|
currency spot rates
|
•
|
recovery rates
|
•
|
dividend yield curves
|
|
|
|
|
•
|
cross currency basis curves
|
|
|
•
|
equity volatility (1)
|
|
|
|
•
|
currency volatility (1)
|
|
|
|
|
Level 3
|
•
|
swap yield curves (2)
|
•
|
swap yield curves (2)
|
•
|
swap yield curves (2)
|
•
|
dividend yield curves (2)
|
|
•
|
basis curves (2)
|
•
|
basis curves (2)
|
•
|
credit curves (2)
|
•
|
equity volatility (1), (2)
|
|
•
|
interest rate volatility (1), (2)
|
•
|
cross currency basis curves (2)
|
•
|
credit spreads
|
•
|
correlation between model inputs (1)
|
|
•
|
repurchase rates
|
•
|
currency correlation
|
•
|
repurchase rates
|
|
|
|
|
|
•
|
currency volatility (1)
|
•
|
independent non-binding broker quotations
|
|
|
(1)
|
Option-based only.
|
(2)
|
Extrapolation beyond the observable limits of the curve(s).
|
|
|
|
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
|
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
|
|
•
|
Offered quotes (4)
|
|
21
|
-
|
140
|
|
107
|
|
18
|
-
|
138
|
|
106
|
|
Increase
|
|
•
|
Market pricing
|
|
•
|
Quoted prices (4)
|
|
25
|
-
|
498
|
|
120
|
|
6
|
-
|
700
|
|
116
|
|
Increase
|
|
•
|
Consensus pricing
|
|
•
|
Offered quotes (4)
|
|
40
|
-
|
112
|
|
103
|
|
37
|
-
|
120
|
|
102
|
|
Increase
|
RMBS
|
•
|
Market pricing
|
|
•
|
Quoted prices (4)
|
|
5
|
-
|
173
|
|
94
|
|
19
|
-
|
137
|
|
91
|
|
Increase (5)
|
ABS
|
•
|
Market pricing
|
|
•
|
Quoted prices (4)
|
|
5
|
-
|
118
|
|
100
|
|
5
|
-
|
106
|
|
99
|
|
Increase (5)
|
|
•
|
Consensus pricing
|
|
•
|
Offered quotes (4)
|
|
99
|
-
|
102
|
|
100
|
|
96
|
-
|
102
|
|
100
|
|
Increase (5)
|
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
|
•
|
Present value techniques
|
|
•
|
Swap yield (6)
|
|
200
|
-
|
300
|
|
|
|
200
|
-
|
300
|
|
|
|
Increase (7)
|
|
|
|
|
•
|
Repurchase rates (8)
|
|
—
|
-
|
8
|
|
|
|
(44)
|
|
18
|
|
|
|
Decrease (7)
|
Foreign currency exchange rate
|
•
|
Present value techniques
|
|
•
|
Swap yield (6)
|
|
(24)
|
-
|
328
|
|
|
|
50
|
-
|
328
|
|
|
|
Increase (7)
|
Credit
|
•
|
Present value techniques
|
|
•
|
Credit spreads (9)
|
|
97
|
-
|
100
|
|
|
|
97
|
-
|
98
|
|
|
|
Decrease (7)
|
|
•
|
Consensus pricing
|
|
•
|
Offered quotes (10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity market
|
•
|
Present value techniques or option pricing models
|
|
•
|
Volatility (11)
|
|
8%
|
-
|
30%
|
|
|
|
12%
|
-
|
32%
|
|
|
|
Increase (7)
|
|
|
|
|
•
|
Correlation (12)
|
|
10%
|
-
|
30%
|
|
|
|
40%
|
-
|
40%
|
|
|
|
|
Embedded derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Direct, assumed and ceded guaranteed minimum benefits
|
•
|
Option pricing techniques
|
|
•
|
Mortality rates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ages 0 - 40
|
|
0%
|
-
|
0.21%
|
|
|
|
0%
|
-
|
0.21%
|
|
|
|
Decrease (13)
|
|
|
|
|
|
Ages 41 - 60
|
|
0.03%
|
-
|
0.75%
|
|
|
|
0.01%
|
-
|
0.78%
|
|
|
|
Decrease (13)
|
|
|
|
|
|
Ages 61 - 115
|
|
0.16%
|
-
|
100%
|
|
|
|
0.04%
|
-
|
100%
|
|
|
|
Decrease (13)
|
|
|
|
|
•
|
Lapse rates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Durations 1 - 10
|
|
0.25%
|
-
|
100%
|
|
|
|
0.25%
|
-
|
100%
|
|
|
|
Decrease (14)
|
|
|
|
|
|
Durations 11 - 20
|
|
2%
|
-
|
100%
|
|
|
|
2%
|
-
|
100%
|
|
|
|
Decrease (14)
|
|
|
|
|
|
Durations 21 - 116
|
|
1.25%
|
-
|
100%
|
|
|
|
1.25%
|
-
|
100%
|
|
|
|
Decrease (14)
|
|
|
|
|
•
|
Utilization rates
|
|
0%
|
-
|
25%
|
|
|
|
0%
|
-
|
25%
|
|
|
|
Increase (15)
|
|
|
|
|
•
|
Withdrawal rates
|
|
0%
|
-
|
20%
|
|
|
|
0%
|
-
|
20%
|
|
|
|
(16)
|
|
|
|
|
•
|
Long-term equity volatilities
|
|
8.76%
|
-
|
33%
|
|
|
|
9.95%
|
-
|
33%
|
|
|
|
Increase (17)
|
|
|
|
|
•
|
Nonperformance risk spread
|
|
0.03%
|
-
|
1.38%
|
|
|
|
0.04%
|
-
|
1.70%
|
|
|
|
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 estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset 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 accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par.
|
(5)
|
Changes in the assumptions used for the probability of default are 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.
|
(6)
|
Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curves are 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.
|
(7)
|
Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions.
|
(8)
|
Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points.
|
(9)
|
Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps.
|
(10)
|
At both
September 30, 2017
and
December 31, 2016
, 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)
|
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.
|
(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 contractholders 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
|
|
|
|
|
||||||||||||||||||||||
|
|
Corporate (1)
|
|
Foreign
Government |
|
U.S.
Government
and Agency
|
|
Structured
Securities
|
|
State and
Political Subdivision |
|
Equity
Securities
|
|
FVO
Securities (2)
|
||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||
Three Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance, beginning of period
|
|
$
|
11,632
|
|
|
$
|
208
|
|
|
$
|
—
|
|
|
$
|
4,939
|
|
|
$
|
—
|
|
|
$
|
468
|
|
|
$
|
312
|
|
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)
|
|
(3
|
)
|
|
1
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
(1
|
)
|
|
7
|
|
|||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
164
|
|
|
(2
|
)
|
|
—
|
|
|
31
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|||||||
Purchases (5)
|
|
713
|
|
|
—
|
|
|
—
|
|
|
468
|
|
|
—
|
|
|
13
|
|
|
73
|
|
|||||||
Sales (5)
|
|
(285
|
)
|
|
—
|
|
|
—
|
|
|
(478
|
)
|
|
(1
|
)
|
|
(52
|
)
|
|
(70
|
)
|
|||||||
Issuances (5)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Settlements (5)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Transfers into Level 3 (6)
|
|
123
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
62
|
|
|
—
|
|
|
3
|
|
|||||||
Transfers out of Level 3 (6)
|
|
(226
|
)
|
|
(9
|
)
|
|
—
|
|
|
(440
|
)
|
|
—
|
|
|
—
|
|
|
(21
|
)
|
|||||||
Balance, end of period
|
|
$
|
12,118
|
|
|
$
|
198
|
|
|
$
|
—
|
|
|
$
|
4,533
|
|
|
$
|
61
|
|
|
$
|
424
|
|
|
$
|
304
|
|
Three Months Ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance, beginning of period
|
|
$
|
10,938
|
|
|
$
|
367
|
|
|
$
|
297
|
|
|
$
|
4,862
|
|
|
$
|
45
|
|
|
$
|
509
|
|
|
$
|
231
|
|
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)
|
|
8
|
|
|
2
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
96
|
|
|
2
|
|
|
(1
|
)
|
|
25
|
|
|
3
|
|
|
(12
|
)
|
|
—
|
|
|||||||
Purchases (5)
|
|
588
|
|
|
21
|
|
|
100
|
|
|
918
|
|
|
—
|
|
|
4
|
|
|
18
|
|
|||||||
Sales (5)
|
|
(414
|
)
|
|
(7
|
)
|
|
—
|
|
|
(367
|
)
|
|
—
|
|
|
(11
|
)
|
|
(6
|
)
|
|||||||
Issuances (5)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Settlements (5)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Transfers into Level 3 (6)
|
|
373
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
7
|
|
|
1
|
|
|
—
|
|
|||||||
Transfers out of Level 3 (6)
|
|
(202
|
)
|
|
(62
|
)
|
|
(101
|
)
|
|
(236
|
)
|
|
(17
|
)
|
|
(6
|
)
|
|
(4
|
)
|
|||||||
Balance, end of period
|
|
$
|
11,387
|
|
|
$
|
323
|
|
|
$
|
295
|
|
|
$
|
5,272
|
|
|
$
|
38
|
|
|
$
|
489
|
|
|
$
|
243
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2017: (7)
|
|
$
|
(2
|
)
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
7
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2016: (7)
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
26
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||
|
|
Short-term
Investments
|
|
Residential
Mortgage
Loans — FVO |
|
Net
Derivatives (8)
|
|
Net Embedded
Derivatives (9)
|
|
Separate
Accounts (10) |
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Three Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period
|
|
$
|
822
|
|
|
$
|
615
|
|
|
$
|
(288
|
)
|
|
$
|
(1,388
|
)
|
|
$
|
959
|
|
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)
|
|
—
|
|
|
32
|
|
|
33
|
|
|
222
|
|
|
7
|
|
|||||
Total realized/unrealized gains (losses) included in AOCI
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|||||
Purchases (5)
|
|
1
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
136
|
|
|||||
Sales (5)
|
|
(247
|
)
|
|
(72
|
)
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
|||||
Issuances (5)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Settlements (5)
|
|
—
|
|
|
(21
|
)
|
|
(12
|
)
|
|
(92
|
)
|
|
(1
|
)
|
|||||
Transfers into Level 3 (6)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|||||
Transfers out of Level 3 (6)
|
|
(175
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(101
|
)
|
|||||
Balance, end of period
|
|
$
|
403
|
|
|
$
|
564
|
|
|
$
|
(263
|
)
|
|
$
|
(1,254
|
)
|
|
$
|
1,039
|
|
Three Months Ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period
|
|
$
|
64
|
|
|
$
|
449
|
|
|
$
|
51
|
|
|
$
|
(2,751
|
)
|
|
$
|
1,485
|
|
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)
|
|
1
|
|
|
10
|
|
|
(3
|
)
|
|
262
|
|
|
(26
|
)
|
|||||
Total realized/unrealized gains (losses) included in AOCI
|
|
(1
|
)
|
|
—
|
|
|
(8
|
)
|
|
(27
|
)
|
|
—
|
|
|||||
Purchases (5)
|
|
222
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
Sales (5)
|
|
(55
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
|||||
Issuances (5)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
30
|
|
|||||
Settlements (5)
|
|
—
|
|
|
(15
|
)
|
|
(21
|
)
|
|
(84
|
)
|
|
(45
|
)
|
|||||
Transfers into Level 3 (6)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|||||
Transfers out of Level 3 (6)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(178
|
)
|
|||||
Balance, end of period
|
|
$
|
231
|
|
|
$
|
481
|
|
|
$
|
18
|
|
|
$
|
(2,600
|
)
|
|
$
|
1,254
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2017: (7)
|
|
$
|
—
|
|
|
$
|
32
|
|
|
$
|
27
|
|
|
$
|
204
|
|
|
$
|
—
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2016: (7)
|
|
$
|
1
|
|
|
$
|
10
|
|
|
$
|
7
|
|
|
$
|
227
|
|
|
$
|
—
|
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||||||
|
|
Fixed Maturity Securities
|
|
|
|
|
||||||||||||||||||||||
|
|
Corporate (1)
|
|
Foreign
Government |
|
U.S.
Government
and Agency
|
|
Structured
Securities
|
|
State and
Political Subdivision |
|
Equity
Securities
|
|
FVO
Securities (2)
|
||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance, beginning of period
|
|
$
|
11,537
|
|
|
$
|
289
|
|
|
$
|
—
|
|
|
$
|
5,215
|
|
|
$
|
10
|
|
|
$
|
468
|
|
|
$
|
287
|
|
Total realized/unrealized gains (losses) included in net income (loss) (3), (4)
|
|
6
|
|
|
3
|
|
|
—
|
|
|
80
|
|
|
—
|
|
|
(14
|
)
|
|
20
|
|
|||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
612
|
|
|
4
|
|
|
—
|
|
|
118
|
|
|
2
|
|
|
30
|
|
|
—
|
|
|||||||
Purchases (5)
|
|
2,802
|
|
|
7
|
|
|
—
|
|
|
867
|
|
|
—
|
|
|
18
|
|
|
209
|
|
|||||||
Sales (5)
|
|
(1,487
|
)
|
|
(97
|
)
|
|
—
|
|
|
(1,329
|
)
|
|
—
|
|
|
(74
|
)
|
|
(115
|
)
|
|||||||
Issuances (5)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Settlements (5)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Transfers into Level 3 (6)
|
|
83
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
59
|
|
|
—
|
|
|
3
|
|
|||||||
Transfers out of Level 3 (6)
|
|
(1,435
|
)
|
|
(8
|
)
|
|
—
|
|
|
(428
|
)
|
|
(10
|
)
|
|
(4
|
)
|
|
(100
|
)
|
|||||||
Balance, end of period
|
|
$
|
12,118
|
|
|
$
|
198
|
|
|
$
|
—
|
|
|
$
|
4,533
|
|
|
$
|
61
|
|
|
$
|
424
|
|
|
$
|
304
|
|
Nine Months Ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance, beginning of period
|
|
$
|
10,311
|
|
|
$
|
829
|
|
|
$
|
—
|
|
|
$
|
5,121
|
|
|
$
|
34
|
|
|
$
|
334
|
|
|
$
|
270
|
|
Total realized/unrealized gains (losses) included in net income (loss) (3), (4)
|
|
(4
|
)
|
|
10
|
|
|
—
|
|
|
74
|
|
|
1
|
|
|
(22
|
)
|
|
9
|
|
|||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
846
|
|
|
(2
|
)
|
|
14
|
|
|
33
|
|
|
1
|
|
|
41
|
|
|
—
|
|
|||||||
Purchases (5)
|
|
1,650
|
|
|
58
|
|
|
111
|
|
|
2,004
|
|
|
—
|
|
|
20
|
|
|
43
|
|
|||||||
Sales (5)
|
|
(811
|
)
|
|
(36
|
)
|
|
—
|
|
|
(1,182
|
)
|
|
—
|
|
|
(16
|
)
|
|
(29
|
)
|
|||||||
Issuances (5)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Settlements (5)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Transfers into Level 3 (6)
|
|
473
|
|
|
41
|
|
|
181
|
|
|
26
|
|
|
7
|
|
|
327
|
|
|
18
|
|
|||||||
Transfers out of Level 3 (6)
|
|
(1,078
|
)
|
|
(577
|
)
|
|
(11
|
)
|
|
(804
|
)
|
|
(5
|
)
|
|
(195
|
)
|
|
(68
|
)
|
|||||||
Balance, end of period
|
|
$
|
11,387
|
|
|
$
|
323
|
|
|
$
|
295
|
|
|
$
|
5,272
|
|
|
$
|
38
|
|
|
$
|
489
|
|
|
$
|
243
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2017 (7)
|
|
$
|
6
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
68
|
|
|
$
|
—
|
|
|
$
|
(12
|
)
|
|
$
|
16
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2016 (7)
|
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
75
|
|
|
$
|
1
|
|
|
$
|
(26
|
)
|
|
$
|
9
|
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||
|
|
Short-term
Investments
|
|
Residential
Mortgage
Loans — FVO |
|
Net
Derivatives (8)
|
|
Net Embedded
Derivatives (9)
|
|
Separate
Accounts (10) |
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period
|
|
$
|
46
|
|
|
$
|
566
|
|
|
$
|
(562
|
)
|
|
$
|
(1,411
|
)
|
|
$
|
1,141
|
|
Total realized/unrealized gains (losses) included in net income (loss) (3), (4)
|
|
—
|
|
|
38
|
|
|
47
|
|
|
444
|
|
|
(22
|
)
|
|||||
Total realized/unrealized gains (losses) included in AOCI
|
|
—
|
|
|
—
|
|
|
144
|
|
|
(42
|
)
|
|
—
|
|
|||||
Purchases (5)
|
|
401
|
|
|
184
|
|
|
—
|
|
|
—
|
|
|
271
|
|
|||||
Sales (5)
|
|
(2
|
)
|
|
(155
|
)
|
|
—
|
|
|
—
|
|
|
(78
|
)
|
|||||
Issuances (5)
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
1
|
|
|||||
Settlements (5)
|
|
—
|
|
|
(69
|
)
|
|
115
|
|
|
(245
|
)
|
|
(62
|
)
|
|||||
Transfers into Level 3 (6)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|||||
Transfers out of Level 3 (6)
|
|
(44
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(233
|
)
|
|||||
Balance, end of period
|
|
$
|
403
|
|
|
$
|
564
|
|
|
$
|
(263
|
)
|
|
$
|
(1,254
|
)
|
|
$
|
1,039
|
|
Nine Months Ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period
|
|
$
|
244
|
|
|
$
|
314
|
|
|
$
|
(179
|
)
|
|
$
|
(675
|
)
|
|
$
|
1,558
|
|
Total realized/unrealized gains (losses) included in net income (loss) (3), (4)
|
|
1
|
|
|
22
|
|
|
185
|
|
|
(1,450
|
)
|
|
7
|
|
|||||
Total realized/unrealized gains (losses) included in AOCI
|
|
4
|
|
|
—
|
|
|
28
|
|
|
(239
|
)
|
|
—
|
|
|||||
Purchases (5)
|
|
231
|
|
|
187
|
|
|
6
|
|
|
—
|
|
|
107
|
|
|||||
Sales (5)
|
|
(247
|
)
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
(102
|
)
|
|||||
Issuances (5)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
28
|
|
|||||
Settlements (5)
|
|
—
|
|
|
(30
|
)
|
|
(19
|
)
|
|
(236
|
)
|
|
(57
|
)
|
|||||
Transfers into Level 3 (6)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|||||
Transfers out of Level 3 (6)
|
|
(3
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(296
|
)
|
|||||
Balance, end of period
|
|
$
|
231
|
|
|
$
|
481
|
|
|
$
|
18
|
|
|
$
|
(2,600
|
)
|
|
$
|
1,254
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2017 (7)
|
|
$
|
—
|
|
|
$
|
38
|
|
|
$
|
27
|
|
|
$
|
422
|
|
|
$
|
—
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2016 (7)
|
|
$
|
1
|
|
|
$
|
22
|
|
|
$
|
157
|
|
|
$
|
(1,469
|
)
|
|
$
|
—
|
|
(1)
|
Comprised of U.S. and foreign corporate securities.
|
(2)
|
Comprised of FVO contractholder-directed unit-linked investments, FVO general account securities and FVO general account securities held by CSEs.
|
(3)
|
Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses), while changes in estimated fair value of residential mortgage loans — FVO are included in net investment income. Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivatives gains (losses).
|
(4)
|
Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.
|
(5)
|
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.
|
(6)
|
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.
|
(7)
|
Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).
|
(8)
|
Freestanding derivative assets and liabilities are presented net for purposes of the rollforward.
|
(9)
|
Embedded derivative assets and liabilities are presented net for purposes of the rollforward.
|
(10)
|
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 (loss). For the purpose of this disclosure, these changes are presented within net investment gains (losses). Separate account assets and liabilities are presented net for the purposes of the rollforward.
|
|
|
Residential Mortgage
Loans — FVO |
||||||
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
|
|
(In millions)
|
||||||
Assets
|
|
|
|
|
||||
Unpaid principal balance
|
|
$
|
711
|
|
|
$
|
794
|
|
Difference between estimated fair value and unpaid principal balance
|
|
(147
|
)
|
|
(228
|
)
|
||
Carrying value at estimated fair value
|
|
$
|
564
|
|
|
$
|
566
|
|
Loans in nonaccrual status
|
|
$
|
213
|
|
|
$
|
214
|
|
Loans more than 90 days past due
|
|
$
|
106
|
|
|
$
|
137
|
|
Loans in nonaccrual status or more than 90 days past due, or both — difference between aggregate estimated fair value and unpaid principal balance
|
|
$
|
(121
|
)
|
|
$
|
(150
|
)
|
|
|
At September 30,
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
|
|
Carrying Value After Measurement
|
|
Gains (Losses)
|
||||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Mortgage loans (1)
|
|
$
|
19
|
|
|
$
|
9
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
Other limited partnership interests (2)
|
|
$
|
85
|
|
|
$
|
75
|
|
|
$
|
(30
|
)
|
|
$
|
(9
|
)
|
|
$
|
(54
|
)
|
|
$
|
(43
|
)
|
Other assets (3)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
|
$
|
(30
|
)
|
(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 on 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. The Company estimates that the underlying assets of the funds will be liquidated over the next
two
to
10 years
. Unfunded commitments for these investments at both
September 30, 2017
and
2016
were not significant.
|
(3)
|
During the nine months ended September 30, 2016, the Company recognized an impairment of computer software in connection with the sale to MassMutual. See Note
3
of the Notes to the Consolidated Financial Statements included in the 2016 Annual Report.
|
|
|
September 30, 2017
|
||||||||||||||||||
|
|
|
|
Fair Value Hierarchy
|
|
|
||||||||||||||
|
|
Carrying
Value |
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated Fair Value |
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage loans
|
|
$
|
67,493
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
69,218
|
|
|
$
|
69,218
|
|
Policy loans
|
|
$
|
9,585
|
|
|
$
|
—
|
|
|
$
|
335
|
|
|
$
|
11,092
|
|
|
$
|
11,427
|
|
Real estate joint ventures
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
11
|
|
Other limited partnership interests
|
|
$
|
239
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
243
|
|
|
$
|
243
|
|
Other invested assets
|
|
$
|
553
|
|
|
$
|
159
|
|
|
$
|
—
|
|
|
$
|
394
|
|
|
$
|
553
|
|
Premiums, reinsurance and other receivables
|
|
$
|
4,140
|
|
|
$
|
—
|
|
|
$
|
1,244
|
|
|
$
|
3,089
|
|
|
$
|
4,333
|
|
Other assets
|
|
$
|
272
|
|
|
$
|
—
|
|
|
$
|
191
|
|
|
$
|
113
|
|
|
$
|
304
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder account balances
|
|
$
|
114,100
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
116,637
|
|
|
$
|
116,637
|
|
Long-term debt
|
|
$
|
16,676
|
|
|
$
|
—
|
|
|
$
|
18,596
|
|
|
$
|
—
|
|
|
$
|
18,596
|
|
Collateral financing arrangement
|
|
$
|
1,220
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
945
|
|
|
$
|
945
|
|
Junior subordinated debt securities
|
|
$
|
3,144
|
|
|
$
|
—
|
|
|
$
|
4,337
|
|
|
$
|
—
|
|
|
$
|
4,337
|
|
Other liabilities
|
|
$
|
5,122
|
|
|
$
|
—
|
|
|
$
|
3,466
|
|
|
$
|
2,293
|
|
|
$
|
5,759
|
|
Separate account liabilities
|
|
$
|
123,586
|
|
|
$
|
—
|
|
|
$
|
123,586
|
|
|
$
|
—
|
|
|
$
|
123,586
|
|
|
|
December 31, 2016
|
||||||||||||||||||
|
|
|
|
Fair Value Hierarchy
|
|
|
||||||||||||||
|
|
Carrying
Value |
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated Fair Value |
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage loans
|
|
$
|
64,601
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
65,742
|
|
|
$
|
65,742
|
|
Policy loans
|
|
$
|
9,511
|
|
|
$
|
—
|
|
|
$
|
335
|
|
|
$
|
10,921
|
|
|
$
|
11,256
|
|
Real estate joint ventures
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
26
|
|
|
$
|
26
|
|
Other limited partnership interests
|
|
$
|
340
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
371
|
|
|
$
|
371
|
|
Other invested assets
|
|
$
|
497
|
|
|
$
|
145
|
|
|
$
|
—
|
|
|
$
|
352
|
|
|
$
|
497
|
|
Premiums, reinsurance and other receivables
|
|
$
|
4,088
|
|
|
$
|
—
|
|
|
$
|
1,152
|
|
|
$
|
3,127
|
|
|
$
|
4,279
|
|
Other assets
|
|
$
|
237
|
|
|
$
|
—
|
|
|
$
|
198
|
|
|
$
|
71
|
|
|
$
|
269
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder account balances
|
|
$
|
108,255
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
110,359
|
|
|
$
|
110,359
|
|
Long-term debt
|
|
$
|
16,422
|
|
|
$
|
—
|
|
|
$
|
17,972
|
|
|
$
|
—
|
|
|
$
|
17,972
|
|
Collateral financing arrangement
|
|
$
|
1,274
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
978
|
|
|
$
|
978
|
|
Junior subordinated debt securities
|
|
$
|
3,169
|
|
|
$
|
—
|
|
|
$
|
3,982
|
|
|
$
|
—
|
|
|
$
|
3,982
|
|
Other liabilities
|
|
$
|
1,767
|
|
|
$
|
—
|
|
|
$
|
1,493
|
|
|
$
|
275
|
|
|
$
|
1,768
|
|
Separate account liabilities
|
|
$
|
118,385
|
|
|
$
|
—
|
|
|
$
|
118,385
|
|
|
$
|
—
|
|
|
$
|
118,385
|
|
Series
|
|
Shares
Authorized
|
|
Shares
Issued
|
|
Shares
Outstanding
|
|||
Floating Rate Non-Cumulative Preferred Stock, Series A
|
|
27,600,000
|
|
|
24,000,000
|
|
|
24,000,000
|
|
5.25% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C
|
|
1,500,000
|
|
|
1,500,000
|
|
|
1,500,000
|
|
Series A Junior Participating Preferred Stock
|
|
10,000,000
|
|
|
—
|
|
|
—
|
|
Not designated
|
|
160,900,000
|
|
|
—
|
|
|
—
|
|
Total
|
|
200,000,000
|
|
|
25,500,000
|
|
|
25,500,000
|
|
|
|
Three Months
Ended September 30, 2017 |
||||||||||||||||||
|
|
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, beginning of period
|
|
$
|
13,469
|
|
|
$
|
1,569
|
|
|
$
|
(4,679
|
)
|
|
$
|
(1,923
|
)
|
|
$
|
8,436
|
|
OCI before reclassifications
|
|
803
|
|
|
(166
|
)
|
|
193
|
|
|
2
|
|
|
832
|
|
|||||
Deferred income tax benefit (expense)
|
|
(270
|
)
|
|
56
|
|
|
(6
|
)
|
|
2
|
|
|
(218
|
)
|
|||||
AOCI before reclassifications, net of income tax
|
|
14,002
|
|
|
1,459
|
|
|
(4,492
|
)
|
|
(1,919
|
)
|
|
9,050
|
|
|||||
Amounts reclassified from AOCI
|
|
(360
|
)
|
|
(307
|
)
|
|
—
|
|
|
40
|
|
|
(627
|
)
|
|||||
Deferred income tax benefit (expense)
|
|
126
|
|
|
107
|
|
|
—
|
|
|
(17
|
)
|
|
216
|
|
|||||
Amounts reclassified from AOCI, net of income tax
|
|
(234
|
)
|
|
(200
|
)
|
|
—
|
|
|
23
|
|
|
(411
|
)
|
|||||
Disposal of subsidiary (2)
|
|
(2,286
|
)
|
|
(305
|
)
|
|
51
|
|
|
28
|
|
|
(2,512
|
)
|
|||||
Deferred income tax benefit (expense)
|
|
800
|
|
|
107
|
|
|
(19
|
)
|
|
(10
|
)
|
|
878
|
|
|||||
Disposal of subsidiary, net of income tax
|
|
(1,486
|
)
|
|
(198
|
)
|
|
32
|
|
|
18
|
|
|
(1,634
|
)
|
|||||
Balance, end of period
|
|
$
|
12,282
|
|
|
$
|
1,061
|
|
|
$
|
(4,460
|
)
|
|
$
|
(1,878
|
)
|
|
$
|
7,005
|
|
|
||||||||||||||||||||
|
|
Three Months
Ended September 30, 2016 |
||||||||||||||||||
|
|
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, beginning of period
|
|
$
|
18,204
|
|
|
$
|
2,431
|
|
|
$
|
(4,020
|
)
|
|
$
|
(1,983
|
)
|
|
$
|
14,632
|
|
OCI before reclassifications
|
|
(1,066
|
)
|
|
(24
|
)
|
|
49
|
|
|
(259
|
)
|
|
(1,300
|
)
|
|||||
Deferred income tax benefit (expense)
|
|
281
|
|
|
8
|
|
|
30
|
|
|
85
|
|
|
404
|
|
|||||
AOCI before reclassifications, net of income tax
|
|
17,419
|
|
|
2,415
|
|
|
(3,941
|
)
|
|
(2,157
|
)
|
|
13,736
|
|
|||||
Amounts reclassified from AOCI
|
|
(173
|
)
|
|
(94
|
)
|
|
—
|
|
|
46
|
|
|
(221
|
)
|
|||||
Deferred income tax benefit (expense)
|
|
60
|
|
|
30
|
|
|
—
|
|
|
(10
|
)
|
|
80
|
|
|||||
Amounts reclassified from AOCI, net of income tax
|
|
(113
|
)
|
|
(64
|
)
|
|
—
|
|
|
36
|
|
|
(141
|
)
|
|||||
Disposal of subsidiary (2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Deferred income tax benefit (expense)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Disposal of subsidiary, net of income tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Balance, end of period
|
|
$
|
17,306
|
|
|
$
|
2,351
|
|
|
$
|
(3,941
|
)
|
|
$
|
(2,121
|
)
|
|
$
|
13,595
|
|
|
|
Nine Months
Ended September 30, 2017 |
||||||||||||||||||
|
|
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, beginning of period
|
|
$
|
10,766
|
|
|
$
|
1,865
|
|
|
$
|
(5,312
|
)
|
|
$
|
(1,972
|
)
|
|
$
|
5,347
|
|
OCI before reclassifications
|
|
4,826
|
|
|
37
|
|
|
710
|
|
|
(17
|
)
|
|
5,556
|
|
|||||
Deferred income tax benefit (expense)
|
|
(1,686
|
)
|
|
(14
|
)
|
|
110
|
|
|
7
|
|
|
(1,583
|
)
|
|||||
AOCI before reclassifications, net of income tax
|
|
13,906
|
|
|
1,888
|
|
|
(4,492
|
)
|
|
(1,982
|
)
|
|
9,320
|
|
|||||
Amounts reclassified from AOCI
|
|
(211
|
)
|
|
(965
|
)
|
|
—
|
|
|
125
|
|
|
(1,051
|
)
|
|||||
Deferred income tax benefit (expense)
|
|
73
|
|
|
336
|
|
|
—
|
|
|
(39
|
)
|
|
370
|
|
|||||
Amounts reclassified from AOCI, net of income tax
|
|
(138
|
)
|
|
(629
|
)
|
|
—
|
|
|
86
|
|
|
(681
|
)
|
|||||
Disposal of subsidiary (2)
|
|
(2,286
|
)
|
|
(305
|
)
|
|
51
|
|
|
28
|
|
|
(2,512
|
)
|
|||||
Deferred income tax benefit (expense)
|
|
800
|
|
|
107
|
|
|
(19
|
)
|
|
(10
|
)
|
|
878
|
|
|||||
Disposal of subsidiary, net of income tax
|
|
(1,486
|
)
|
|
(198
|
)
|
|
32
|
|
|
18
|
|
|
(1,634
|
)
|
|||||
Balance, end of period
|
|
$
|
12,282
|
|
|
$
|
1,061
|
|
|
$
|
(4,460
|
)
|
|
$
|
(1,878
|
)
|
|
$
|
7,005
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Nine Months
Ended September 30, 2016 |
||||||||||||||||||
|
|
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, beginning of period
|
|
$
|
10,315
|
|
|
$
|
1,458
|
|
|
$
|
(4,950
|
)
|
|
$
|
(2,052
|
)
|
|
$
|
4,771
|
|
OCI before reclassifications
|
|
10,872
|
|
|
1,472
|
|
|
809
|
|
|
(248
|
)
|
|
12,905
|
|
|||||
Deferred income tax benefit (expense)
|
|
(3,656
|
)
|
|
(460
|
)
|
|
200
|
|
|
81
|
|
|
(3,835
|
)
|
|||||
AOCI before reclassifications, net of income tax
|
|
17,531
|
|
|
2,470
|
|
|
(3,941
|
)
|
|
(2,219
|
)
|
|
13,841
|
|
|||||
Amounts reclassified from AOCI
|
|
(339
|
)
|
|
(174
|
)
|
|
—
|
|
|
145
|
|
|
(368
|
)
|
|||||
Deferred income tax benefit (expense)
|
|
114
|
|
|
55
|
|
|
—
|
|
|
(47
|
)
|
|
122
|
|
|||||
Amounts reclassified from AOCI, net of income tax
|
|
(225
|
)
|
|
(119
|
)
|
|
—
|
|
|
98
|
|
|
(246
|
)
|
|||||
Disposal of subsidiary (2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Deferred income tax benefit (expense)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Disposal of subsidiary, net of income tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Balance, end of period
|
|
$
|
17,306
|
|
|
$
|
2,351
|
|
|
$
|
(3,941
|
)
|
|
$
|
(2,121
|
)
|
|
$
|
13,595
|
|
(1)
|
See Note
6
for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation.
|
(2)
|
See Note 3.
|
AOCI Components
|
|
Amounts Reclassified from AOCI
|
|
Consolidated Statements of
Operations and
Comprehensive Income (Loss)
Locations
|
||||||||||||||
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
|
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
||||||||
|
|
(In millions)
|
|
|
||||||||||||||
Net unrealized investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net unrealized investment gains (losses)
|
|
$
|
303
|
|
|
$
|
113
|
|
|
$
|
386
|
|
|
$
|
317
|
|
|
Net investment gains (losses)
|
Net unrealized investment gains (losses)
|
|
(1
|
)
|
|
4
|
|
|
—
|
|
|
23
|
|
|
Net investment income
|
||||
Net unrealized investment gains (losses)
|
|
55
|
|
|
(1
|
)
|
|
(89
|
)
|
|
21
|
|
|
Net derivative gains (losses)
|
||||
Net unrealized investment gains (losses)
|
|
3
|
|
|
57
|
|
|
(86
|
)
|
|
(22
|
)
|
|
Discontinued operations
|
||||
Net unrealized investment gains (losses), before income tax
|
|
360
|
|
|
173
|
|
|
211
|
|
|
339
|
|
|
|
||||
Income tax (expense) benefit
|
|
(126
|
)
|
|
(60
|
)
|
|
(73
|
)
|
|
(114
|
)
|
|
|
||||
Net unrealized investment gains (losses), net of income tax
|
|
234
|
|
|
113
|
|
|
138
|
|
|
225
|
|
|
|
||||
Unrealized gains (losses) on derivatives - cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
9
|
|
|
28
|
|
|
23
|
|
|
44
|
|
|
Net derivative gains (losses)
|
||||
Interest rate swaps
|
|
5
|
|
|
3
|
|
|
12
|
|
|
9
|
|
|
Net investment income
|
||||
Interest rate swaps
|
|
—
|
|
|
1
|
|
|
2
|
|
|
14
|
|
|
Discontinued operations
|
||||
Interest rate forwards
|
|
(1
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
Net derivative gains (losses)
|
||||
Interest rate forwards
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
Net investment income
|
||||
Interest rate forwards
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
Other expenses
|
||||
Interest rate forwards
|
|
—
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
Discontinued operations
|
||||
Foreign currency swaps
|
|
294
|
|
|
54
|
|
|
915
|
|
|
90
|
|
|
Net derivative gains (losses)
|
||||
Foreign currency swaps
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
Net investment income
|
||||
Foreign currency swaps
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
Other expenses
|
||||
Foreign currency swaps
|
|
—
|
|
|
5
|
|
|
11
|
|
|
6
|
|
|
Discontinued operations
|
||||
Credit forwards
|
|
—
|
|
|
—
|
|
|
1
|
|
|
3
|
|
|
Net derivative gains (losses)
|
||||
Credit forwards
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
Net investment income
|
||||
Gains (losses) on cash flow hedges, before income tax
|
|
307
|
|
|
94
|
|
|
965
|
|
|
174
|
|
|
|
||||
Income tax (expense) benefit
|
|
(107
|
)
|
|
(30
|
)
|
|
(336
|
)
|
|
(55
|
)
|
|
|
||||
Gains (losses) on cash flow hedges, net of income tax
|
|
200
|
|
|
64
|
|
|
629
|
|
|
119
|
|
|
|
||||
Defined benefit plans adjustment: (1)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Amortization of net actuarial gains (losses)
|
|
(46
|
)
|
|
(47
|
)
|
|
(143
|
)
|
|
(150
|
)
|
|
|
||||
Amortization of prior service (costs) credit
|
|
6
|
|
|
1
|
|
|
18
|
|
|
5
|
|
|
|
||||
Amortization of defined benefit plan items, before income tax
|
|
(40
|
)
|
|
(46
|
)
|
|
(125
|
)
|
|
(145
|
)
|
|
|
||||
Income tax (expense) benefit
|
|
17
|
|
|
10
|
|
|
39
|
|
|
47
|
|
|
|
||||
Amortization of defined benefit plan items, net of income tax
|
|
(23
|
)
|
|
(36
|
)
|
|
(86
|
)
|
|
(98
|
)
|
|
|
||||
Total reclassifications, net of income tax
|
|
$
|
411
|
|
|
$
|
141
|
|
|
$
|
681
|
|
|
$
|
246
|
|
|
|
(1)
|
These AOCI components are included in the computation of net periodic benefit costs. See Note
12
.
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(In millions)
|
||||||||||||||
Compensation
|
$
|
1,107
|
|
|
$
|
1,100
|
|
|
$
|
3,302
|
|
|
$
|
3,602
|
|
Pension, postretirement and postemployment benefit costs
|
86
|
|
|
78
|
|
|
242
|
|
|
308
|
|
||||
Commissions
|
888
|
|
|
859
|
|
|
2,544
|
|
|
2,700
|
|
||||
Volume-related costs
|
113
|
|
|
91
|
|
|
285
|
|
|
384
|
|
||||
Capitalization of DAC
|
(761
|
)
|
|
(770
|
)
|
|
(2,218
|
)
|
|
(2,422
|
)
|
||||
Amortization of DAC and VOBA
|
626
|
|
|
660
|
|
|
1,945
|
|
|
2,052
|
|
||||
Amortization of negative VOBA
|
(32
|
)
|
|
(55
|
)
|
|
(113
|
)
|
|
(221
|
)
|
||||
Interest expense on debt
|
284
|
|
|
280
|
|
|
851
|
|
|
875
|
|
||||
Premium taxes, licenses and fees
|
145
|
|
|
174
|
|
|
467
|
|
|
544
|
|
||||
Professional services
|
389
|
|
|
372
|
|
|
1,119
|
|
|
1,099
|
|
||||
Rent and related expenses, net of sublease income
|
121
|
|
|
91
|
|
|
265
|
|
|
285
|
|
||||
Other
|
352
|
|
|
336
|
|
|
1,215
|
|
|
1,090
|
|
||||
Total other expenses
|
$
|
3,318
|
|
|
$
|
3,216
|
|
|
$
|
9,904
|
|
|
$
|
10,296
|
|
|
Three Months
Ended September 30, 2017 |
|
Nine Months
Ended September 30, 2017 |
||||
|
Severance
|
||||||
|
(In millions)
|
||||||
Balance, beginning of period
|
$
|
17
|
|
|
$
|
35
|
|
Restructuring charges
|
3
|
|
|
25
|
|
||
Cash payments
|
(3
|
)
|
|
(43
|
)
|
||
Balance, end of period
|
$
|
17
|
|
|
$
|
17
|
|
Total restructuring charges incurred since inception of initiative
|
$
|
60
|
|
|
$
|
60
|
|
|
|
Three Months
Ended September 30, |
||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||
|
|
Pension
Benefits
|
|
Other
Postretirement
Benefits
|
|
Pension
Benefits
|
|
Other
Postretirement
Benefits
|
||||||||
|
|
(In millions)
|
||||||||||||||
Service costs
|
|
$
|
62
|
|
|
$
|
1
|
|
|
$
|
67
|
|
|
$
|
4
|
|
Interest costs
|
|
106
|
|
|
19
|
|
|
101
|
|
|
20
|
|
||||
Divestitures and curtailment costs (1)
|
|
3
|
|
|
2
|
|
|
(1
|
)
|
|
(1
|
)
|
||||
Expected return on plan assets
|
|
(129
|
)
|
|
(18
|
)
|
|
(138
|
)
|
|
(19
|
)
|
||||
Amortization of net actuarial (gains) losses
|
|
46
|
|
|
—
|
|
|
45
|
|
|
2
|
|
||||
Amortization of prior service costs (credit)
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(1
|
)
|
||||
Net periodic benefit costs (credit)
|
|
$
|
88
|
|
|
$
|
(2
|
)
|
|
$
|
74
|
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Nine Months
Ended September 30, |
||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||
|
|
Pension
Benefits
|
|
Other
Postretirement
Benefits
|
|
Pension
Benefits
|
|
Other
Postretirement
Benefits
|
||||||||
|
|
(In millions)
|
||||||||||||||
Service costs
|
|
$
|
184
|
|
|
$
|
4
|
|
|
$
|
212
|
|
|
$
|
8
|
|
Interest costs
|
|
318
|
|
|
57
|
|
|
316
|
|
|
62
|
|
||||
Divestitures and curtailment costs (1)
|
|
3
|
|
|
2
|
|
|
(1
|
)
|
|
15
|
|
||||
Expected return on plan assets
|
|
(387
|
)
|
|
(54
|
)
|
|
(388
|
)
|
|
(56
|
)
|
||||
Amortization of net actuarial (gains) losses
|
|
143
|
|
|
—
|
|
|
143
|
|
|
7
|
|
||||
Amortization of prior service costs (credit)
|
|
(1
|
)
|
|
(17
|
)
|
|
—
|
|
|
(5
|
)
|
||||
Net periodic benefit costs (credit)
|
|
$
|
260
|
|
|
$
|
(8
|
)
|
|
$
|
282
|
|
|
$
|
31
|
|
(1)
|
For the nine months ended September 30, 2016, the Company recognized curtailment charges on certain postretirement benefit plans in connection with the sale to MassMutual. See Note 3 of the Notes to the Consolidated Financial Statements included in the 2016 Annual Report.
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
(In millions, except per share data)
|
||||||||||||||
Weighted Average Shares:
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common stock outstanding for basic earnings per common share
|
|
1,062.3
|
|
|
1,100.5
|
|
|
1,075.5
|
|
|
1,100.6
|
|
||||
Incremental common shares from assumed exercise or issuance of stock-based awards
|
|
9.2
|
|
|
8.8
|
|
|
8.5
|
|
|
8.4
|
|
||||
Weighted average common stock outstanding for diluted earnings per common share
|
|
1,071.5
|
|
|
1,109.3
|
|
|
1,084.0
|
|
|
1,109.0
|
|
||||
Income (Loss) from Continuing Operations:
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations, net of income tax
|
|
$
|
893
|
|
|
$
|
1,024
|
|
|
$
|
2,630
|
|
|
$
|
4,269
|
|
Less: Income (loss) from continuing operations, net of income tax, attributable to noncontrolling interests
|
|
6
|
|
|
(4
|
)
|
|
12
|
|
|
2
|
|
||||
Less: Preferred stock dividends
|
|
6
|
|
|
6
|
|
|
58
|
|
|
58
|
|
||||
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders
|
|
$
|
881
|
|
|
$
|
1,022
|
|
|
$
|
2,560
|
|
|
$
|
4,209
|
|
Basic
|
|
$
|
0.83
|
|
|
$
|
0.93
|
|
|
$
|
2.38
|
|
|
$
|
3.82
|
|
Diluted
|
|
$
|
0.82
|
|
|
$
|
0.92
|
|
|
$
|
2.36
|
|
|
$
|
3.80
|
|
Income (Loss) from Discontinued Operations:
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from discontinued operations, net of income tax
|
|
$
|
(968
|
)
|
|
$
|
(451
|
)
|
|
$
|
(989
|
)
|
|
$
|
(1,379
|
)
|
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
|
|
$
|
(968
|
)
|
|
$
|
(451
|
)
|
|
$
|
(989
|
)
|
|
$
|
(1,379
|
)
|
Basic
|
|
$
|
(0.91
|
)
|
|
$
|
(0.41
|
)
|
|
$
|
(0.92
|
)
|
|
$
|
(1.25
|
)
|
Diluted
|
|
$
|
(0.90
|
)
|
|
$
|
(0.41
|
)
|
|
$
|
(0.91
|
)
|
|
$
|
(1.25
|
)
|
Net Income (Loss):
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
|
$
|
(75
|
)
|
|
$
|
573
|
|
|
$
|
1,641
|
|
|
$
|
2,890
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
6
|
|
|
(4
|
)
|
|
12
|
|
|
2
|
|
||||
Less: Preferred stock dividends
|
|
6
|
|
|
6
|
|
|
58
|
|
|
58
|
|
||||
Net income (loss) available to MetLife, Inc.’s common shareholders
|
|
$
|
(87
|
)
|
|
$
|
571
|
|
|
$
|
1,571
|
|
|
$
|
2,830
|
|
Basic
|
|
$
|
(0.08
|
)
|
|
$
|
0.52
|
|
|
$
|
1.46
|
|
|
$
|
2.57
|
|
Diluted
|
|
$
|
(0.08
|
)
|
|
$
|
0.51
|
|
|
$
|
1.45
|
|
|
$
|
2.55
|
|
|
Page
|
(1)
|
Excludes Corporate & Other operating loss available to common shareholders of
$580 million
.
|
(2)
|
Consistent with GAAP guidance for segment reporting, operating earnings is our GAAP measure of segment performance. See “— Non-GAAP and Other Financial Disclosures.”
|
(i)
|
liabilities for future policy 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.
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
(In millions)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
Premiums
|
|
$
|
10,876
|
|
|
$
|
9,839
|
|
|
$
|
29,421
|
|
|
$
|
27,956
|
|
Universal life and investment-type product policy fees
|
|
1,428
|
|
|
1,341
|
|
|
4,152
|
|
|
4,127
|
|
||||
Net investment income
|
|
4,295
|
|
|
4,609
|
|
|
12,909
|
|
|
12,527
|
|
||||
Other revenues
|
|
301
|
|
|
356
|
|
|
935
|
|
|
1,309
|
|
||||
Net investment gains (losses)
|
|
(606
|
)
|
|
231
|
|
|
(439
|
)
|
|
598
|
|
||||
Net derivative gains (losses)
|
|
(190
|
)
|
|
(543
|
)
|
|
(663
|
)
|
|
1,438
|
|
||||
Total revenues
|
|
16,104
|
|
|
15,833
|
|
|
46,315
|
|
|
47,955
|
|
||||
Expenses
|
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims and policyholder dividends
|
|
10,947
|
|
|
9,914
|
|
|
29,848
|
|
|
28,318
|
|
||||
Interest credited to policyholder account balances
|
|
1,338
|
|
|
1,544
|
|
|
4,081
|
|
|
3,819
|
|
||||
Capitalization of DAC
|
|
(761
|
)
|
|
(770
|
)
|
|
(2,218
|
)
|
|
(2,422
|
)
|
||||
Amortization of DAC and VOBA
|
|
626
|
|
|
660
|
|
|
1,945
|
|
|
2,052
|
|
||||
Amortization of negative VOBA
|
|
(32
|
)
|
|
(55
|
)
|
|
(113
|
)
|
|
(221
|
)
|
||||
Interest expense on debt
|
|
284
|
|
|
280
|
|
|
851
|
|
|
875
|
|
||||
Other expenses
|
|
3,201
|
|
|
3,101
|
|
|
9,439
|
|
|
10,012
|
|
||||
Total expenses
|
|
15,603
|
|
|
14,674
|
|
|
43,833
|
|
|
42,433
|
|
||||
Income (loss) before provision for income tax
|
|
501
|
|
|
1,159
|
|
|
2,482
|
|
|
5,522
|
|
||||
Provision for income tax expense (benefit)
|
|
(392
|
)
|
|
135
|
|
|
(148
|
)
|
|
1,253
|
|
||||
Income (loss) from continuing operations, net of income tax
|
|
893
|
|
|
1,024
|
|
|
2,630
|
|
|
4,269
|
|
||||
Income (loss) from discontinued operations, net of income tax
|
|
(968
|
)
|
|
(451
|
)
|
|
(989
|
)
|
|
(1,379
|
)
|
||||
Net income (loss)
|
|
(75
|
)
|
|
573
|
|
|
1,641
|
|
|
2,890
|
|
||||
Less: Net income (loss) attributable to noncontrolling interests
|
|
6
|
|
|
(4
|
)
|
|
12
|
|
|
2
|
|
||||
Net income (loss) attributable to MetLife, Inc.
|
|
(81
|
)
|
|
577
|
|
|
1,629
|
|
|
2,888
|
|
||||
Less: Preferred stock dividends
|
|
6
|
|
|
6
|
|
|
58
|
|
|
58
|
|
||||
Net income (loss) available to MetLife, Inc.’s common shareholders
|
|
$
|
(87
|
)
|
|
$
|
571
|
|
|
$
|
1,571
|
|
|
$
|
2,830
|
|
|
Three Months Ended September 30,
|
||||||
|
2017
|
|
2016
|
||||
|
(In millions)
|
||||||
Non-VA program derivatives
|
|
|
|
||||
Interest rate
|
$
|
(38
|
)
|
|
$
|
(254
|
)
|
Foreign currency exchange rate
|
(125
|
)
|
|
59
|
|
||
Credit
|
52
|
|
|
47
|
|
||
Equity
|
10
|
|
|
2
|
|
||
Non-VA embedded derivatives
|
(3
|
)
|
|
5
|
|
||
Total non-VA program derivatives
|
(104
|
)
|
|
(141
|
)
|
||
VA program derivatives
|
|
|
|
||||
Market risks in embedded derivatives
|
360
|
|
|
538
|
|
||
Nonperformance risk adjustment on embedded derivatives
|
(52
|
)
|
|
(154
|
)
|
||
Other risks in embedded derivatives
|
(71
|
)
|
|
(112
|
)
|
||
Total embedded derivatives
|
237
|
|
|
272
|
|
||
Freestanding derivatives hedging embedded derivatives
|
(323
|
)
|
|
(674
|
)
|
||
Total VA program derivatives
|
(86
|
)
|
|
(402
|
)
|
||
Net derivative gains (losses)
|
$
|
(190
|
)
|
|
$
|
(543
|
)
|
•
|
Long-term interest rates increased less in the current period than in the prior period, contributing to a favorable change in our freestanding derivatives and an unfavorable change in our embedded derivatives. For example, the 10-year U.S. swap rate increased 1 basis point in the current period and increased 9 basis points in the prior period.
|
•
|
Key weighted average equity index levels increased less in the current period than in the prior period,
contributing to an unfavorable change in our embedded derivatives and a favorable change in our freestanding derivatives.
|
•
|
Changes in foreign currency exchange rates contributed to a favorable change in our embedded derivatives, related to
the assumed reinsurance of certain variable annuity products from our former operating joint venture in Japan,
and an unfavorable change in our freestanding derivatives. For example, the Japanese yen was unchanged against the U.S. dollar in the current period and strengthened by 1% in the prior period.
|
•
|
Updates to actuarial policyholder behavior assumptions within the valuation model.
|
•
|
An increase in the risk margin adjustment measuring policyholder behavior risks, along with market and interest rate changes, and
|
•
|
A combination of other factors, which include fees being deducted from accounts and changes in the benefit base, premiums, lapses, withdrawals and deaths.
|
•
|
Changes in operational assumptions, most notably related to updates to maintenance expense and closed block projections, resulted in a net gain of $149 million ($97 million net of income tax).
|
•
|
Changes in policyholder behavior assumptions resulted in reserve increases, partially offset by favorable DAC, resulting in a net charge of $47 million ($29 million, net of income tax).
|
•
|
Economic assumption updates resulted in reserve increases and DAC releases, resulting in a charge of $19 million ($13 million net of income tax).
|
•
|
Changes to biometric assumptions resulted in an increase in reserves, partially offset by favorable DAC, resulting in a charge of $11 million ($7 million, net of income ta
x).
|
|
Nine Months Ended September 30,
|
||||||
|
2017
|
|
2016
|
||||
|
(In millions)
|
||||||
Non-VA program derivatives
|
|
|
|
||||
Interest rate
|
$
|
(20
|
)
|
|
$
|
1,058
|
|
Foreign currency exchange rate
|
(273
|
)
|
|
820
|
|
||
Credit
|
149
|
|
|
58
|
|
||
Equity
|
2
|
|
|
8
|
|
||
Non-VA embedded derivatives
|
(100
|
)
|
|
(139
|
)
|
||
Total non-VA program derivatives
|
(242
|
)
|
|
1,805
|
|
||
VA program derivatives
|
|
|
|
||||
Market risks in embedded derivatives
|
947
|
|
|
(1,249
|
)
|
||
Nonperformance risk adjustment on embedded derivatives
|
(161
|
)
|
|
738
|
|
||
Other risks in embedded derivatives
|
(265
|
)
|
|
(830
|
)
|
||
Total embedded derivatives
|
521
|
|
|
(1,341
|
)
|
||
Freestanding derivatives hedging embedded derivatives
|
(942
|
)
|
|
974
|
|
||
Total VA program derivatives
|
(421
|
)
|
|
(367
|
)
|
||
Net derivative gains (losses)
|
$
|
(663
|
)
|
|
$
|
1,438
|
|
•
|
Updates to actuarial policyholder behavior assumptions within the valuation model.
|
•
|
An increase in the risk margin adjustment measuring policyholder behavior risks, along with market and interest rate changes, and
|
•
|
The partially offsetting impact of a combination of other factors, which include fees being deducted from accounts and changes in the benefit base, premiums, lapses, withdrawals and deaths.
|
•
|
Long-term interest rates decreased less in the current period than in the prior period, contributing to an unfavorable change in our freestanding derivatives and a favorable change in our embedded derivatives. For example, the 30-year U.S. swap rate decreased 6 basis points in the current period and decreased 84 basis points in the prior period.
|
•
|
Key weighted average equity index levels increased more in the current period than in the prior period, contributing 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 a favorable change in our embedded derivatives related to the assumed reinsurance of certain variable annuity products from our former operating joint venture in Japan. For example, the Japanese yen strengthened against the U.S. dollar by 3% in the current period and strengthened by 16% in the prior period.
|
•
|
Changes in operational assumptions, most notably related to updates to maintenance expense and closed block projections, resulted in a net gain of $149 million ($97 million net of income tax).
|
•
|
Changes in policyholder behavior assumptions resulted in reserve increases, partially offset by favorable DAC, resulting in a net charge of $47 million ($29 million, net of income tax).
|
•
|
Economic assumption updates resulted in reserve increases and DAC releases, resulting in a charge of $19 million ($13 million net of income tax).
|
•
|
Changes to biometric assumptions resulted in an increase in reserves, partially offset by favorable DAC, resulting in a charge of $11 million ($7 million, net of income ta
x).
|
|
U.S.
|
|
Asia
|
|
Latin America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Net income (loss)
|
$
|
572
|
|
|
$
|
243
|
|
|
$
|
224
|
|
|
$
|
62
|
|
|
$
|
230
|
|
|
$
|
(1,406
|
)
|
|
$
|
(75
|
)
|
Less: Income (loss) from discontinued operations, net of income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(968
|
)
|
|
(968
|
)
|
|||||||
Income (loss) from continuing operations, net of income tax
|
$
|
572
|
|
|
$
|
243
|
|
|
$
|
224
|
|
|
$
|
62
|
|
|
$
|
230
|
|
|
$
|
(438
|
)
|
|
$
|
893
|
|
Less: Net investment gains (losses)
|
96
|
|
|
(37
|
)
|
|
20
|
|
|
(12
|
)
|
|
23
|
|
|
(696
|
)
|
|
(606
|
)
|
|||||||
Less: Net derivative gains (losses)
|
(14
|
)
|
|
(58
|
)
|
|
46
|
|
|
3
|
|
|
(165
|
)
|
|
(2
|
)
|
|
(190
|
)
|
|||||||
Less: Other adjustments to net income (1)
|
(43
|
)
|
|
(12
|
)
|
|
25
|
|
|
—
|
|
|
(136
|
)
|
|
(328
|
)
|
|
(494
|
)
|
|||||||
Less: Provision for income tax (expense) benefit
|
(13
|
)
|
|
36
|
|
|
(30
|
)
|
|
—
|
|
|
98
|
|
|
918
|
|
|
1,009
|
|
|||||||
Operating earnings
|
$
|
546
|
|
|
$
|
314
|
|
|
$
|
163
|
|
|
$
|
71
|
|
|
$
|
410
|
|
|
(330
|
)
|
|
1,174
|
|
||
Less: Preferred stock dividends
|
|
|
|
|
|
|
|
|
|
|
6
|
|
|
6
|
|
||||||||||||
Operating earnings available to common shareholders
|
|
|
|
|
|
|
|
|
|
|
$
|
(336
|
)
|
|
$
|
1,168
|
|
|
U.S.
|
|
Asia
|
|
Latin America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Net income (loss)
|
$
|
520
|
|
|
$
|
361
|
|
|
$
|
148
|
|
|
$
|
115
|
|
|
$
|
(60
|
)
|
|
$
|
(511
|
)
|
|
$
|
573
|
|
Less: Income (loss) from discontinued operations, net of income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(451
|
)
|
|
(451
|
)
|
|||||||
Income (loss) from continuing operations, net of income tax
|
$
|
520
|
|
|
$
|
361
|
|
|
$
|
148
|
|
|
$
|
115
|
|
|
$
|
(60
|
)
|
|
$
|
(60
|
)
|
|
$
|
1,024
|
|
Less: Net investment gains (losses)
|
44
|
|
|
66
|
|
|
12
|
|
|
24
|
|
|
5
|
|
|
80
|
|
|
231
|
|
|||||||
Less: Net derivative gains (losses)
|
(20
|
)
|
|
(68
|
)
|
|
(9
|
)
|
|
25
|
|
|
(469
|
)
|
|
(2
|
)
|
|
(543
|
)
|
|||||||
Less: Other adjustments to net income (1)
|
(73
|
)
|
|
10
|
|
|
17
|
|
|
26
|
|
|
(36
|
)
|
|
(161
|
)
|
|
(217
|
)
|
|||||||
Less: Provision for income tax (expense) benefit
|
17
|
|
|
29
|
|
|
(5
|
)
|
|
(34
|
)
|
|
174
|
|
|
11
|
|
|
192
|
|
|||||||
Operating earnings
|
$
|
552
|
|
|
$
|
324
|
|
|
$
|
133
|
|
|
$
|
74
|
|
|
$
|
266
|
|
|
12
|
|
|
1,361
|
|
||
Less: Preferred stock dividends
|
|
|
|
|
|
|
|
|
|
|
6
|
|
|
6
|
|
||||||||||||
Operating earnings available to common shareholders
|
|
|
|
|
|
|
|
|
|
|
$
|
6
|
|
|
$
|
1,355
|
|
(1)
|
See definitions of operating revenues and operating expenses under “— Non-GAAP and Other Financial Disclosures” for the components of such adjustments.
|
|
U.S.
|
|
Asia
|
|
Latin America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Net income (loss)
|
$
|
1,467
|
|
|
$
|
927
|
|
|
$
|
552
|
|
|
$
|
210
|
|
|
$
|
597
|
|
|
$
|
(2,112
|
)
|
|
$
|
1,641
|
|
Less: Income (loss) from discontinued operations, net of income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(989
|
)
|
|
(989
|
)
|
|||||||
Income (loss) from continuing operations, net of income tax
|
$
|
1,467
|
|
|
$
|
927
|
|
|
$
|
552
|
|
|
$
|
210
|
|
|
$
|
597
|
|
|
$
|
(1,123
|
)
|
|
$
|
2,630
|
|
Less: Net investment gains (losses)
|
70
|
|
|
61
|
|
|
34
|
|
|
(8
|
)
|
|
30
|
|
|
(626
|
)
|
|
(439
|
)
|
|||||||
Less: Net derivative gains (losses)
|
(34
|
)
|
|
(9
|
)
|
|
173
|
|
|
21
|
|
|
(449
|
)
|
|
(365
|
)
|
|
(663
|
)
|
|||||||
Less: Other adjustments to net income (1)
|
(161
|
)
|
|
(28
|
)
|
|
(65
|
)
|
|
(7
|
)
|
|
(248
|
)
|
|
(817
|
)
|
|
(1,326
|
)
|
|||||||
Less: Provision for income tax (expense) benefit
|
44
|
|
|
(16
|
)
|
|
(50
|
)
|
|
(14
|
)
|
|
234
|
|
|
1,207
|
|
|
1,405
|
|
|||||||
Operating earnings
|
$
|
1,548
|
|
|
$
|
919
|
|
|
$
|
460
|
|
|
$
|
218
|
|
|
$
|
1,030
|
|
|
(522
|
)
|
|
3,653
|
|
||
Less: Preferred stock dividends
|
|
|
|
|
|
|
|
|
|
|
58
|
|
|
58
|
|
||||||||||||
Operating earnings available to common shareholders
|
|
|
|
|
|
|
|
|
|
|
$
|
(580
|
)
|
|
$
|
3,595
|
|
|
U.S.
|
|
Asia
|
|
Latin America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Net income (loss)
|
$
|
1,615
|
|
|
$
|
1,995
|
|
|
$
|
377
|
|
|
$
|
285
|
|
|
$
|
587
|
|
|
$
|
(1,969
|
)
|
|
$
|
2,890
|
|
Less: Income (loss) from discontinued operations, net of income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,379
|
)
|
|
(1,379
|
)
|
|||||||
Income (loss) from continuing operations, net of income tax
|
$
|
1,615
|
|
|
$
|
1,995
|
|
|
$
|
377
|
|
|
$
|
285
|
|
|
$
|
587
|
|
|
$
|
(590
|
)
|
|
$
|
4,269
|
|
Less: Net investment gains (losses)
|
13
|
|
|
429
|
|
|
8
|
|
|
48
|
|
|
142
|
|
|
(42
|
)
|
|
598
|
|
|||||||
Less: Net derivative gains (losses)
|
512
|
|
|
949
|
|
|
47
|
|
|
27
|
|
|
(32
|
)
|
|
(65
|
)
|
|
1,438
|
|
|||||||
Less: Other adjustments to net income (1)
|
(204
|
)
|
|
47
|
|
|
(88
|
)
|
|
92
|
|
|
24
|
|
|
(241
|
)
|
|
(370
|
)
|
|||||||
Less: Provision for income tax (expense) benefit
|
(107
|
)
|
|
(318
|
)
|
|
(11
|
)
|
|
(83
|
)
|
|
(47
|
)
|
|
128
|
|
|
(438
|
)
|
|||||||
Operating earnings
|
$
|
1,401
|
|
|
$
|
888
|
|
|
$
|
421
|
|
|
$
|
201
|
|
|
$
|
500
|
|
|
(370
|
)
|
|
3,041
|
|
||
Less: Preferred stock dividends
|
|
|
|
|
|
|
|
|
|
|
58
|
|
|
58
|
|
||||||||||||
Operating earnings available to common shareholders
|
|
|
|
|
|
|
|
|
|
|
$
|
(428
|
)
|
|
$
|
2,983
|
|
(1)
|
See definitions of operating revenues and operating expenses under “— Non-GAAP and Other Financial Disclosures” for the components of such adjustments.
|
|
U.S.
|
|
Asia
|
|
Latin America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Total revenues
|
$
|
9,072
|
|
|
$
|
2,920
|
|
|
$
|
1,331
|
|
|
$
|
819
|
|
|
$
|
2,609
|
|
|
$
|
(647
|
)
|
|
$
|
16,104
|
|
Less: Net investment gains (losses)
|
96
|
|
|
(37
|
)
|
|
20
|
|
|
(12
|
)
|
|
23
|
|
|
(696
|
)
|
|
(606
|
)
|
|||||||
Less: Net derivative gains (losses)
|
(14
|
)
|
|
(58
|
)
|
|
46
|
|
|
3
|
|
|
(165
|
)
|
|
(2
|
)
|
|
(190
|
)
|
|||||||
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||||
Less: Other adjustments to revenues (1)
|
(43
|
)
|
|
85
|
|
|
29
|
|
|
116
|
|
|
(14
|
)
|
|
(53
|
)
|
|
120
|
|
|||||||
Total operating revenues
|
$
|
9,033
|
|
|
$
|
2,927
|
|
|
$
|
1,236
|
|
|
$
|
711
|
|
|
$
|
2,765
|
|
|
$
|
104
|
|
|
$
|
16,776
|
|
Total expenses
|
$
|
8,207
|
|
|
$
|
2,557
|
|
|
$
|
1,026
|
|
|
$
|
736
|
|
|
$
|
2,278
|
|
|
$
|
799
|
|
|
$
|
15,603
|
|
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
(6
|
)
|
|
2
|
|
|
(2
|
)
|
|||||||
Less: Other adjustments to expenses (1)
|
—
|
|
|
99
|
|
|
4
|
|
|
116
|
|
|
128
|
|
|
273
|
|
|
620
|
|
|||||||
Total operating expenses
|
$
|
8,207
|
|
|
$
|
2,457
|
|
|
$
|
1,022
|
|
|
$
|
619
|
|
|
$
|
2,156
|
|
|
$
|
524
|
|
|
$
|
14,985
|
|
|
U.S.
|
|
Asia
|
|
Latin America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Total revenues
|
$
|
7,914
|
|
|
$
|
3,000
|
|
|
$
|
1,222
|
|
|
$
|
1,192
|
|
|
$
|
2,583
|
|
|
$
|
(78
|
)
|
|
$
|
15,833
|
|
Less: Net investment gains (losses)
|
44
|
|
|
66
|
|
|
12
|
|
|
24
|
|
|
5
|
|
|
80
|
|
|
231
|
|
|||||||
Less: Net derivative gains (losses)
|
(20
|
)
|
|
(68
|
)
|
|
(9
|
)
|
|
25
|
|
|
(469
|
)
|
|
(2
|
)
|
|
(543
|
)
|
|||||||
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|||||||
Less: Other adjustments to revenues (1)
|
(73
|
)
|
|
71
|
|
|
17
|
|
|
442
|
|
|
(45
|
)
|
|
(272
|
)
|
|
140
|
|
|||||||
Total operating revenues
|
$
|
7,963
|
|
|
$
|
2,935
|
|
|
$
|
1,202
|
|
|
$
|
702
|
|
|
$
|
3,092
|
|
|
$
|
116
|
|
|
$
|
16,010
|
|
Total expenses
|
$
|
7,123
|
|
|
$
|
2,526
|
|
|
$
|
1,016
|
|
|
$
|
1,032
|
|
|
$
|
2,696
|
|
|
$
|
281
|
|
|
$
|
14,674
|
|
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
(71
|
)
|
|
(1
|
)
|
|
(82
|
)
|
|||||||
Less: Other adjustments to expenses (1)
|
—
|
|
|
67
|
|
|
—
|
|
|
415
|
|
|
62
|
|
|
(110
|
)
|
|
434
|
|
|||||||
Total operating expenses
|
$
|
7,123
|
|
|
$
|
2,469
|
|
|
$
|
1,016
|
|
|
$
|
617
|
|
|
$
|
2,705
|
|
|
$
|
392
|
|
|
$
|
14,322
|
|
(1)
|
See definitions of operating revenues and operating expenses under “— Non-GAAP and Other Financial Disclosures” for the components of such adjustments.
|
|
U.S.
|
|
Asia
|
|
Latin America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Total revenues
|
$
|
24,077
|
|
|
$
|
8,767
|
|
|
$
|
3,939
|
|
|
$
|
2,689
|
|
|
$
|
8,039
|
|
|
$
|
(1,196
|
)
|
|
$
|
46,315
|
|
Less: Net investment gains (losses)
|
70
|
|
|
61
|
|
|
34
|
|
|
(8
|
)
|
|
30
|
|
|
(626
|
)
|
|
(439
|
)
|
|||||||
Less: Net derivative gains (losses)
|
(34
|
)
|
|
(9
|
)
|
|
173
|
|
|
21
|
|
|
(449
|
)
|
|
(365
|
)
|
|
(663
|
)
|
|||||||
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|||||||
Less: Other adjustments to revenues (1)
|
(160
|
)
|
|
214
|
|
|
60
|
|
|
574
|
|
|
(70
|
)
|
|
(556
|
)
|
|
62
|
|
|||||||
Total operating revenues
|
$
|
24,201
|
|
|
$
|
8,487
|
|
|
$
|
3,672
|
|
|
$
|
2,102
|
|
|
$
|
8,528
|
|
|
$
|
351
|
|
|
$
|
47,341
|
|
Total expenses
|
$
|
21,872
|
|
|
$
|
7,365
|
|
|
$
|
3,214
|
|
|
$
|
2,418
|
|
|
$
|
7,188
|
|
|
$
|
1,776
|
|
|
$
|
43,833
|
|
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
(46
|
)
|
|
2
|
|
|
(32
|
)
|
|||||||
Less: Other adjustments to expenses (1)
|
1
|
|
|
244
|
|
|
125
|
|
|
581
|
|
|
224
|
|
|
259
|
|
|
1,434
|
|
|||||||
Total operating expenses
|
$
|
21,871
|
|
|
$
|
7,109
|
|
|
$
|
3,089
|
|
|
$
|
1,837
|
|
|
$
|
7,010
|
|
|
$
|
1,515
|
|
|
$
|
42,431
|
|
|
U.S.
|
|
Asia
|
|
Latin America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Total revenues
|
$
|
22,407
|
|
|
$
|
10,123
|
|
|
$
|
3,576
|
|
|
$
|
3,024
|
|
|
$
|
9,357
|
|
|
$
|
(532
|
)
|
|
$
|
47,955
|
|
Less: Net investment gains (losses)
|
13
|
|
|
429
|
|
|
8
|
|
|
48
|
|
|
142
|
|
|
(42
|
)
|
|
598
|
|
|||||||
Less: Net derivative gains (losses)
|
512
|
|
|
949
|
|
|
47
|
|
|
27
|
|
|
(32
|
)
|
|
(65
|
)
|
|
1,438
|
|
|||||||
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|||||||
Less: Other adjustments to revenues (1)
|
(192
|
)
|
|
394
|
|
|
37
|
|
|
836
|
|
|
(139
|
)
|
|
(688
|
)
|
|
248
|
|
|||||||
Total operating revenues
|
$
|
22,074
|
|
|
$
|
8,323
|
|
|
$
|
3,484
|
|
|
$
|
2,113
|
|
|
$
|
9,386
|
|
|
$
|
263
|
|
|
$
|
45,643
|
|
Total expenses
|
$
|
19,965
|
|
|
$
|
7,433
|
|
|
$
|
3,047
|
|
|
$
|
2,624
|
|
|
$
|
8,520
|
|
|
$
|
844
|
|
|
$
|
42,433
|
|
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
42
|
|
|
—
|
|
|
1
|
|
|
(257
|
)
|
|
(1
|
)
|
|
(215
|
)
|
|||||||
Less: Other adjustments to expenses (1)
|
12
|
|
|
333
|
|
|
125
|
|
|
743
|
|
|
94
|
|
|
(446
|
)
|
|
861
|
|
|||||||
Total operating expenses
|
$
|
19,953
|
|
|
$
|
7,058
|
|
|
$
|
2,922
|
|
|
$
|
1,880
|
|
|
$
|
8,683
|
|
|
$
|
1,291
|
|
|
$
|
41,787
|
|
(1)
|
See definitions of operating revenues and operating expenses under “— Non-GAAP and Other Financial Disclosures” for the components of such adjustments.
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(In millions)
|
||||||||||||||
Operating revenues
|
|
|
|
|
|
|
|
||||||||
Premiums
|
$
|
6,987
|
|
|
$
|
5,936
|
|
|
$
|
18,049
|
|
|
$
|
16,127
|
|
Universal life and investment-type product policy fees
|
247
|
|
|
245
|
|
|
763
|
|
|
743
|
|
||||
Net investment income
|
1,602
|
|
|
1,590
|
|
|
4,789
|
|
|
4,615
|
|
||||
Other revenues
|
197
|
|
|
192
|
|
|
600
|
|
|
589
|
|
||||
Total operating revenues
|
9,033
|
|
|
7,963
|
|
|
24,201
|
|
|
22,074
|
|
||||
Operating expenses
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims and policyholder dividends
|
6,904
|
|
|
5,894
|
|
|
18,017
|
|
|
16,210
|
|
||||
Interest credited to policyholder account balances
|
376
|
|
|
322
|
|
|
1,086
|
|
|
967
|
|
||||
Capitalization of DAC
|
(126
|
)
|
|
(124
|
)
|
|
(342
|
)
|
|
(356
|
)
|
||||
Amortization of DAC and VOBA
|
118
|
|
|
117
|
|
|
346
|
|
|
353
|
|
||||
Interest expense on debt
|
2
|
|
|
2
|
|
|
8
|
|
|
7
|
|
||||
Other operating expenses
|
933
|
|
|
912
|
|
|
2,756
|
|
|
2,772
|
|
||||
Total operating expenses
|
8,207
|
|
|
7,123
|
|
|
21,871
|
|
|
19,953
|
|
||||
Provision for income tax expense (benefit)
|
280
|
|
|
288
|
|
|
782
|
|
|
720
|
|
||||
Operating earnings
|
$
|
546
|
|
|
$
|
552
|
|
|
$
|
1,548
|
|
|
$
|
1,401
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(In millions)
|
||||||||||||||
Operating revenues
|
|
|
|
|
|
|
|
||||||||
Premiums
|
$
|
1,696
|
|
|
$
|
1,822
|
|
|
$
|
5,063
|
|
|
$
|
5,161
|
|
Universal life and investment-type product policy fees
|
458
|
|
|
394
|
|
|
1,199
|
|
|
1,114
|
|
||||
Net investment income
|
762
|
|
|
707
|
|
|
2,193
|
|
|
2,003
|
|
||||
Other revenues
|
11
|
|
|
12
|
|
|
32
|
|
|
45
|
|
||||
Total operating revenues
|
2,927
|
|
|
2,935
|
|
|
8,487
|
|
|
8,323
|
|
||||
Operating expenses
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims and policyholder dividends
|
1,223
|
|
|
1,363
|
|
|
3,785
|
|
|
3,923
|
|
||||
Interest credited to policyholder account balances
|
349
|
|
|
331
|
|
|
1,003
|
|
|
974
|
|
||||
Capitalization of DAC
|
(420
|
)
|
|
(440
|
)
|
|
(1,268
|
)
|
|
(1,251
|
)
|
||||
Amortization of DAC and VOBA
|
424
|
|
|
331
|
|
|
1,005
|
|
|
921
|
|
||||
Amortization of negative VOBA
|
(24
|
)
|
|
(46
|
)
|
|
(91
|
)
|
|
(167
|
)
|
||||
Other operating expenses
|
905
|
|
|
930
|
|
|
2,675
|
|
|
2,658
|
|
||||
Total operating expenses
|
2,457
|
|
|
2,469
|
|
|
7,109
|
|
|
7,058
|
|
||||
Provision for income tax expense (benefit)
|
156
|
|
|
142
|
|
|
459
|
|
|
377
|
|
||||
Operating earnings
|
$
|
314
|
|
|
$
|
324
|
|
|
$
|
919
|
|
|
$
|
888
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(In millions)
|
||||||||||||||
Operating revenues
|
|
|
|
|
|
|
|
||||||||
Premiums
|
$
|
701
|
|
|
$
|
653
|
|
|
$
|
1,993
|
|
|
$
|
1,885
|
|
Universal life and investment-type product policy fees
|
229
|
|
|
227
|
|
|
764
|
|
|
764
|
|
||||
Net investment income
|
299
|
|
|
311
|
|
|
891
|
|
|
809
|
|
||||
Other revenues
|
7
|
|
|
11
|
|
|
24
|
|
|
26
|
|
||||
Total operating revenues
|
1,236
|
|
|
1,202
|
|
|
3,672
|
|
|
3,484
|
|
||||
Operating expenses
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims and policyholder dividends
|
640
|
|
|
681
|
|
|
1,869
|
|
|
1,814
|
|
||||
Interest credited to policyholder account balances
|
99
|
|
|
85
|
|
|
275
|
|
|
249
|
|
||||
Capitalization of DAC
|
(94
|
)
|
|
(83
|
)
|
|
(264
|
)
|
|
(236
|
)
|
||||
Amortization of DAC and VOBA
|
—
|
|
|
(2
|
)
|
|
146
|
|
|
127
|
|
||||
Amortization of negative VOBA
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
||||
Interest expense on debt
|
1
|
|
|
1
|
|
|
4
|
|
|
1
|
|
||||
Other operating expenses
|
377
|
|
|
335
|
|
|
1,060
|
|
|
968
|
|
||||
Total operating expenses
|
1,022
|
|
|
1,016
|
|
|
3,089
|
|
|
2,922
|
|
||||
Provision for income tax expense (benefit)
|
51
|
|
|
53
|
|
|
123
|
|
|
141
|
|
||||
Operating earnings
|
$
|
163
|
|
|
$
|
133
|
|
|
$
|
460
|
|
|
$
|
421
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(In millions)
|
||||||||||||||
Operating revenues
|
|
|
|
|
|
|
|
||||||||
Premiums
|
$
|
527
|
|
|
$
|
500
|
|
|
$
|
1,534
|
|
|
$
|
1,519
|
|
Universal life and investment-type product policy fees
|
109
|
|
|
104
|
|
|
296
|
|
|
294
|
|
||||
Net investment income
|
77
|
|
|
81
|
|
|
229
|
|
|
244
|
|
||||
Other revenues
|
(2
|
)
|
|
17
|
|
|
43
|
|
|
56
|
|
||||
Total operating revenues
|
711
|
|
|
702
|
|
|
2,102
|
|
|
2,113
|
|
||||
Operating expenses
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims and policyholder dividends
|
282
|
|
|
257
|
|
|
821
|
|
|
801
|
|
||||
Interest credited to policyholder account balances
|
26
|
|
|
28
|
|
|
75
|
|
|
87
|
|
||||
Capitalization of DAC
|
(109
|
)
|
|
(103
|
)
|
|
(301
|
)
|
|
(310
|
)
|
||||
Amortization of DAC and VOBA
|
78
|
|
|
106
|
|
|
260
|
|
|
311
|
|
||||
Amortization of negative VOBA
|
(5
|
)
|
|
(3
|
)
|
|
(13
|
)
|
|
(10
|
)
|
||||
Other operating expenses
|
347
|
|
|
332
|
|
|
995
|
|
|
1,001
|
|
||||
Total operating expenses
|
619
|
|
|
617
|
|
|
1,837
|
|
|
1,880
|
|
||||
Provision for income tax expense (benefit)
|
21
|
|
|
11
|
|
|
47
|
|
|
32
|
|
||||
Operating earnings
|
$
|
71
|
|
|
$
|
74
|
|
|
$
|
218
|
|
|
$
|
201
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(In millions)
|
||||||||||||||
Operating revenues
|
|
|
|
|
|
|
|
||||||||
Premiums
|
$
|
989
|
|
|
$
|
1,093
|
|
|
$
|
3,070
|
|
|
$
|
3,312
|
|
Universal life and investment-type product policy fees
|
349
|
|
|
357
|
|
|
1,056
|
|
|
1,073
|
|
||||
Net investment income
|
1,390
|
|
|
1,537
|
|
|
4,232
|
|
|
4,489
|
|
||||
Other revenues
|
37
|
|
|
105
|
|
|
170
|
|
|
512
|
|
||||
Total operating revenues
|
2,765
|
|
|
3,092
|
|
|
8,528
|
|
|
9,386
|
|
||||
Operating expenses
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims and policyholder dividends
|
1,661
|
|
|
1,853
|
|
|
5,117
|
|
|
5,603
|
|
||||
Interest credited to policyholder account balances
|
255
|
|
|
261
|
|
|
767
|
|
|
780
|
|
||||
Capitalization of DAC
|
(14
|
)
|
|
(44
|
)
|
|
(71
|
)
|
|
(240
|
)
|
||||
Amortization of DAC and VOBA
|
(70
|
)
|
|
219
|
|
|
143
|
|
|
636
|
|
||||
Interest expense on debt
|
2
|
|
|
15
|
|
|
22
|
|
|
43
|
|
||||
Other operating expenses
|
322
|
|
|
401
|
|
|
1,032
|
|
|
1,861
|
|
||||
Total operating expenses
|
2,156
|
|
|
2,705
|
|
|
7,010
|
|
|
8,683
|
|
||||
Provision for income tax expense (benefit)
|
199
|
|
|
121
|
|
|
488
|
|
|
203
|
|
||||
Operating earnings
|
$
|
410
|
|
|
$
|
266
|
|
|
$
|
1,030
|
|
|
$
|
500
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(In millions)
|
||||||||||||||
Operating revenues
|
|
|
|
|
|
|
|
||||||||
Premiums
|
$
|
13
|
|
|
$
|
41
|
|
|
$
|
59
|
|
|
$
|
50
|
|
Universal life and investment-type product policy fees
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||
Net investment income
|
26
|
|
|
53
|
|
|
107
|
|
|
141
|
|
||||
Other revenues
|
65
|
|
|
22
|
|
|
185
|
|
|
70
|
|
||||
Total operating revenues
|
104
|
|
|
116
|
|
|
351
|
|
|
263
|
|
||||
Operating expenses
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims and policyholder dividends
|
7
|
|
|
31
|
|
|
33
|
|
|
23
|
|
||||
Interest credited to policyholder account balances
|
—
|
|
|
(1
|
)
|
|
1
|
|
|
5
|
|
||||
Capitalization of DAC
|
(2
|
)
|
|
1
|
|
|
(6
|
)
|
|
(7
|
)
|
||||
Amortization of DAC and VOBA
|
3
|
|
|
1
|
|
|
5
|
|
|
7
|
|
||||
Interest expense on debt
|
279
|
|
|
275
|
|
|
833
|
|
|
862
|
|
||||
Other operating expenses
|
237
|
|
|
85
|
|
|
649
|
|
|
401
|
|
||||
Total operating expenses
|
524
|
|
|
392
|
|
|
1,515
|
|
|
1,291
|
|
||||
Provision for income tax expense (benefit)
|
(90
|
)
|
|
(288
|
)
|
|
(642
|
)
|
|
(658
|
)
|
||||
Operating earnings
|
(330
|
)
|
|
12
|
|
|
(522
|
)
|
|
(370
|
)
|
||||
Less: Preferred stock dividends
|
6
|
|
|
6
|
|
|
58
|
|
|
58
|
|
||||
Operating earnings available to common shareholders
|
$
|
(336
|
)
|
|
$
|
6
|
|
|
$
|
(580
|
)
|
|
$
|
(428
|
)
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(In millions)
|
||||||||||||||
Other business activities
|
$
|
3
|
|
|
$
|
6
|
|
|
$
|
12
|
|
|
$
|
(6
|
)
|
Other net investment income
|
32
|
|
|
66
|
|
|
126
|
|
|
172
|
|
||||
Interest expense on debt
|
(195
|
)
|
|
(197
|
)
|
|
(586
|
)
|
|
(617
|
)
|
||||
Preferred stock dividends
|
(6
|
)
|
|
(6
|
)
|
|
(58
|
)
|
|
(58
|
)
|
||||
Corporate initiatives and projects
|
(29
|
)
|
|
(23
|
)
|
|
(128
|
)
|
|
(83
|
)
|
||||
Incremental tax benefit (expense)
|
(58
|
)
|
|
190
|
|
|
235
|
|
|
297
|
|
||||
Other
|
(83
|
)
|
|
(30
|
)
|
|
(181
|
)
|
|
(133
|
)
|
||||
Operating earnings available to common shareholders
|
$
|
(336
|
)
|
|
$
|
6
|
|
|
$
|
(580
|
)
|
|
$
|
(428
|
)
|
•
|
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 and equity market levels. 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 other-than-temporary impairment (“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 borrowers and their tenants and joint venture partners, capital markets volatility and inherent interest rate movements.
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||
|
Yield % (1)
|
|
Amount
|
|
Yield % (1)
|
|
Amount
|
|
Yield % (1)
|
|
Amount
|
|
Yield % (1)
|
|
Amount
|
||||||||||||
|
(Dollars in millions)
|
||||||||||||||||||||||||||
Fixed maturity securities (2), (3)
|
4.25
|
|
%
|
$
|
2,843
|
|
|
4.38
|
|
%
|
$
|
2,907
|
|
|
4.29
|
|
%
|
$
|
8,488
|
|
|
4.39
|
|
%
|
$
|
8,810
|
|
Mortgage loans (3)
|
4.78
|
|
%
|
809
|
|
|
4.59
|
|
%
|
709
|
|
|
4.59
|
|
%
|
2,303
|
|
|
4.70
|
|
%
|
2,164
|
|
||||
Real estate and real estate joint ventures
|
2.80
|
|
%
|
66
|
|
|
5.42
|
|
%
|
120
|
|
|
3.14
|
|
%
|
218
|
|
|
3.83
|
|
%
|
245
|
|
||||
Policy loans
|
5.40
|
|
%
|
130
|
|
|
5.36
|
|
%
|
129
|
|
|
5.37
|
|
%
|
386
|
|
|
5.30
|
|
%
|
385
|
|
||||
Equity securities
|
4.92
|
|
%
|
31
|
|
|
4.73
|
|
%
|
29
|
|
|
4.80
|
|
%
|
93
|
|
|
4.76
|
|
%
|
90
|
|
||||
Other limited partnership interests
|
15.94
|
|
%
|
214
|
|
|
14.12
|
|
%
|
184
|
|
|
16.46
|
|
%
|
648
|
|
|
7.95
|
|
%
|
309
|
|
||||
Cash and short-term investments
|
1.13
|
|
%
|
25
|
|
|
1.16
|
|
%
|
28
|
|
|
1.39
|
|
%
|
92
|
|
|
1.15
|
|
%
|
82
|
|
||||
Other invested assets
|
|
|
|
173
|
|
|
|
|
|
246
|
|
|
|
|
557
|
|
|
|
|
|
629
|
|
|||||
Investment income
|
4.54
|
|
%
|
4,291
|
|
|
4.72
|
|
%
|
4,352
|
|
|
4.58
|
|
%
|
12,785
|
|
|
4.58
|
|
%
|
12,714
|
|
||||
Investment fees and expenses
|
(0.14
|
)
|
%
|
(133
|
)
|
|
(0.13
|
)
|
%
|
(122
|
)
|
|
(0.14
|
)
|
%
|
(390
|
)
|
|
(0.14
|
)
|
%
|
(387
|
)
|
||||
Net investment income including divested businesses and lag elimination (4)
|
4.40
|
|
%
|
4,158
|
|
|
4.59
|
|
%
|
4,230
|
|
|
4.44
|
|
%
|
12,395
|
|
|
4.44
|
|
%
|
12,327
|
|
||||
Less: net investment income from divested businesses and lag elimination (4)
|
|
|
2
|
|
|
|
|
(49
|
)
|
|
|
|
(46
|
)
|
|
|
|
26
|
|
||||||||
Net investment income, as reported on an operating basis (4)
|
|
|
$
|
4,156
|
|
|
|
|
$
|
4,279
|
|
|
|
|
$
|
12,441
|
|
|
|
|
$
|
12,301
|
|
(1)
|
Yields are calculated as investment income as a percent of average quarterly asset carrying values. Investment income excludes recognized gains and losses. Asset carrying values exclude unrealized gains (losses), collateral received in connection with our securities lending program, annuities funding structured settlement claims, 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, contractholder-directed unit-linked investments and FVO Brighthouse Common Stock. 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 from fixed maturity securities includes amounts from FVO securities of $
16 million
and
$61 million
for the
three months
and
nine months ended
September 30, 2017
, respectively, and
$25 million
and
$41 million
for the
three months
and
nine months ended
September 30, 2016
, respectively.
|
(3)
|
Investment income from fixed maturity securities and mortgage loans includes prepayment fees.
|
(4)
|
See Note
2
of the Notes to the Interim Condensed Consolidated Financial Statements for further information, as well as for a reconciliation of net investment income, as reported on an operating basis, to the most directly comparable GAAP financial measure.
See “— Non-GAAP and Other Financial Disclosures” for discussion of divested businesses and lag elimination.
|
|
September 30, 2017
|
|
December 31, 2016
|
|
||||||||
|
Estimated Fair Value
|
|
% of Total
|
|
Estimated Fair Value
|
|
% of Total
|
|
||||
|
(Dollars in millions)
|
|
||||||||||
Fixed maturity securities
|
|
|
|
|
|
|
|
|
||||
Publicly-traded
|
$
|
263,083
|
|
|
85.2
|
%
|
$
|
247,229
|
|
|
85.4
|
%
|
Privately-placed
|
45,811
|
|
|
14.8
|
|
42,334
|
|
|
14.6
|
|
||
Total fixed maturity securities
|
$
|
308,894
|
|
|
100.0
|
%
|
$
|
289,563
|
|
|
100.0
|
%
|
Percentage of cash and invested assets
|
67.3
|
%
|
|
|
|
66.8
|
%
|
|
|
|
||
Equity securities
|
|
|
|
|
|
|
|
|
||||
Publicly-traded
|
$
|
1,768
|
|
|
63.7
|
%
|
$
|
1,854
|
|
|
64.1
|
%
|
Privately-held
|
1,008
|
|
|
36.3
|
|
1,040
|
|
|
35.9
|
|
||
Total equity securities
|
$
|
2,776
|
|
|
100.0
|
%
|
$
|
2,894
|
|
|
100.0
|
%
|
Percentage of cash and invested assets
|
0.6
|
%
|
|
|
|
0.7
|
%
|
|
|
|
||
Perpetual securities included within fixed maturity and equity securities AFS
|
$
|
468
|
|
|
|
|
$
|
527
|
|
|
|
|
Redeemable preferred stock with a stated maturity included within fixed maturity securities AFS
|
$
|
556
|
|
|
|
|
$
|
758
|
|
|
|
|
|
September 30, 2017
|
||||||||||||
|
Fixed Maturity
Securities
|
|
|
Equity
Securities
|
|||||||||
|
(Dollars in millions)
|
|
|||||||||||
Level 1
|
|
|
|
|
|
|
|
|
|
||||
Quoted prices in active markets for identical assets
|
$
|
26,788
|
|
|
8.7
|
%
|
|
$
|
1,332
|
|
|
48.0
|
%
|
Level 2
|
|
|
|
|
|
|
|
|
|
||||
Independent pricing sources
|
262,327
|
|
|
84.9
|
|
|
923
|
|
|
33.2
|
|
||
Internal matrix pricing or discounted cash flow techniques
|
2,869
|
|
|
0.9
|
|
|
97
|
|
|
3.5
|
|
||
Significant other observable inputs
|
265,196
|
|
|
85.8
|
|
|
1,020
|
|
|
36.7
|
|
||
Level 3
|
|
|
|
|
|
|
|
|
|
||||
Independent pricing sources
|
12,564
|
|
|
4.1
|
|
|
302
|
|
|
10.9
|
|
||
Internal matrix pricing or discounted cash flow techniques
|
3,964
|
|
|
1.3
|
|
|
120
|
|
|
4.3
|
|
||
Independent broker quotations
|
382
|
|
|
0.1
|
|
|
2
|
|
|
0.1
|
|
||
Significant unobservable inputs
|
16,910
|
|
|
5.5
|
|
|
424
|
|
|
15.3
|
|
||
Total estimated fair value
|
$
|
308,894
|
|
|
100.0
|
%
|
|
$
|
2,776
|
|
|
100.0
|
%
|
•
|
The majority of the Level 3 fixed maturity and equity securities AFS were concentrated in three sectors: foreign and United States corporate securities and RMBS.
|
•
|
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: sub-prime RMBS; certain below investment grade private securities and less liquid investment grade corporate securities (included in United States and foreign corporate securities) and less liquid ABS; and foreign government securities.
|
•
|
During the
three months ended
September 30, 2017
, Level 3 fixed maturity securities increased by
$131 million
, or
1%
. The increase was driven by purchases in excess of sales and an increase in estimated fair value recognized in other
comprehensive income (loss) (“OCI”), partially offset by transfers out of Level 3 in excess of transfers into Level 3.
|
•
|
During the
nine months ended
September 30, 2017
, Level 3 fixed maturity securities decreased by
$141 million
, or
1%
. The decrease was driven by transfers out of Level 3 in excess of transfers into Level 3, partially offset by purchases in excess of sales and an increase in estimated fair value recognized in OCI.
|
|
Fixed Maturity Securities — by Sector & Credit Quality Rating
|
||||||||||||||||||||||||||
NAIC Designation:
|
1
|
|
2
|
|
3
|
|
4
|
|
5
|
|
6
|
|
Total
Estimated
Fair Value
|
||||||||||||||
NRSRO Rating:
|
Aaa/Aa/A
|
|
Baa
|
|
Ba
|
|
B
|
|
Caa and Lower
|
|
In or Near
Default
|
|
|||||||||||||||
|
(Dollars in millions)
|
||||||||||||||||||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. corporate
|
$
|
36,240
|
|
|
$
|
35,257
|
|
|
$
|
6,149
|
|
|
$
|
3,248
|
|
|
$
|
761
|
|
|
$
|
—
|
|
|
$
|
81,655
|
|
Foreign government
|
52,203
|
|
|
5,204
|
|
|
2,405
|
|
|
928
|
|
|
49
|
|
|
—
|
|
|
60,789
|
|
|||||||
Foreign corporate
|
21,924
|
|
|
29,905
|
|
|
2,526
|
|
|
724
|
|
|
61
|
|
|
—
|
|
|
55,140
|
|
|||||||
U.S. government and agency
|
47,352
|
|
|
312
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,664
|
|
|||||||
RMBS
|
30,797
|
|
|
285
|
|
|
214
|
|
|
59
|
|
|
43
|
|
|
—
|
|
|
31,398
|
|
|||||||
State and political subdivision
|
11,789
|
|
|
488
|
|
|
65
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
12,345
|
|
|||||||
ABS
|
10,889
|
|
|
720
|
|
|
157
|
|
|
1
|
|
|
3
|
|
|
1
|
|
|
11,771
|
|
|||||||
CMBS
|
7,964
|
|
|
122
|
|
|
46
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,132
|
|
|||||||
Total fixed maturity securities
|
$
|
219,158
|
|
|
$
|
72,293
|
|
|
$
|
11,562
|
|
|
$
|
4,960
|
|
|
$
|
917
|
|
|
$
|
4
|
|
|
$
|
308,894
|
|
Percentage of total
|
70.9
|
%
|
|
23.4
|
%
|
|
3.7
|
%
|
|
1.7
|
%
|
|
0.3
|
%
|
|
—
|
%
|
|
100.0
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. corporate
|
$
|
34,753
|
|
|
$
|
32,823
|
|
|
$
|
6,949
|
|
|
$
|
3,289
|
|
|
$
|
729
|
|
|
$
|
—
|
|
|
$
|
78,543
|
|
Foreign government
|
48,371
|
|
|
4,578
|
|
|
2,144
|
|
|
830
|
|
|
53
|
|
|
—
|
|
|
55,976
|
|
|||||||
Foreign corporate
|
21,033
|
|
|
26,292
|
|
|
2,638
|
|
|
638
|
|
|
62
|
|
|
—
|
|
|
50,663
|
|
|||||||
U.S. government and agency
|
44,118
|
|
|
315
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44,433
|
|
|||||||
RMBS
|
28,252
|
|
|
504
|
|
|
244
|
|
|
30
|
|
|
2
|
|
|
—
|
|
|
29,032
|
|
|||||||
State and political subdivision
|
11,670
|
|
|
470
|
|
|
87
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
12,231
|
|
|||||||
ABS
|
10,433
|
|
|
693
|
|
|
94
|
|
|
1
|
|
|
3
|
|
|
1
|
|
|
11,225
|
|
|||||||
CMBS
|
7,315
|
|
|
145
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,460
|
|
|||||||
Total fixed maturity securities
|
$
|
205,945
|
|
|
$
|
65,820
|
|
|
$
|
12,156
|
|
|
$
|
4,788
|
|
|
$
|
853
|
|
|
$
|
1
|
|
|
$
|
289,563
|
|
Percentage of total
|
71.1
|
%
|
|
22.7
|
%
|
|
4.2
|
%
|
|
1.7
|
%
|
|
0.3
|
%
|
|
—
|
%
|
|
100.0
|
%
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||
|
Estimated
Fair
Value
|
|
% of
Total
|
|
Estimated
Fair
Value
|
|
% of
Total
|
||||||
|
(Dollars in millions)
|
||||||||||||
Industrial
|
$
|
41,598
|
|
|
30.4
|
%
|
|
$
|
39,320
|
|
|
30.4
|
%
|
Consumer
|
31,200
|
|
|
22.8
|
|
|
29,783
|
|
|
23.1
|
|
||
Finance
|
29,699
|
|
|
21.7
|
|
|
27,787
|
|
|
21.5
|
|
||
Utility
|
21,444
|
|
|
15.7
|
|
|
19,931
|
|
|
15.4
|
|
||
Communications
|
11,026
|
|
|
8.1
|
|
|
10,635
|
|
|
8.2
|
|
||
Other
|
1,828
|
|
|
1.3
|
|
|
1,750
|
|
|
1.4
|
|
||
Total
|
$
|
136,795
|
|
|
100.0
|
%
|
|
$
|
129,206
|
|
|
100.0
|
%
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||
|
Estimated
Fair
Value
|
|
% of
Total
|
|
Net
Unrealized
Gains (Losses)
|
|
Estimated
Fair
Value
|
|
% of
Total
|
|
Net
Unrealized
Gains (Losses)
|
||||||||||
|
(Dollars in millions)
|
||||||||||||||||||||
By security type:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Collateralized mortgage obligations
|
$
|
16,289
|
|
|
51.9
|
%
|
|
$
|
906
|
|
|
$
|
16,842
|
|
|
58.0
|
%
|
|
$
|
575
|
|
Pass-through securities
|
15,109
|
|
|
48.1
|
|
|
124
|
|
|
12,190
|
|
|
42.0
|
|
|
64
|
|
||||
Total RMBS
|
$
|
31,398
|
|
|
100.0
|
%
|
|
$
|
1,030
|
|
|
$
|
29,032
|
|
|
100.0
|
%
|
|
$
|
639
|
|
By risk profile:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
$
|
22,177
|
|
|
70.6
|
%
|
|
$
|
371
|
|
|
$
|
18,808
|
|
|
64.8
|
%
|
|
$
|
268
|
|
Prime
|
1,316
|
|
|
4.2
|
|
|
80
|
|
|
1,398
|
|
|
4.8
|
|
|
65
|
|
||||
Alt-A
|
4,339
|
|
|
13.8
|
|
|
350
|
|
|
4,964
|
|
|
17.1
|
|
|
160
|
|
||||
Sub-prime
|
3,566
|
|
|
11.4
|
|
|
229
|
|
|
3,862
|
|
|
13.3
|
|
|
146
|
|
||||
Total RMBS
|
$
|
31,398
|
|
|
100.0
|
%
|
|
$
|
1,030
|
|
|
$
|
29,032
|
|
|
100.0
|
%
|
|
$
|
639
|
|
Ratings profile:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Rated Aaa/AAA
|
$
|
22,614
|
|
|
72.0
|
%
|
|
|
|
$
|
19,207
|
|
|
66.2
|
%
|
|
|
||||
Designated NAIC 1
|
$
|
30,797
|
|
|
98.1
|
%
|
|
|
|
$
|
28,252
|
|
|
97.3
|
%
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||
|
Estimated
Fair
Value
|
|
% of
Total
|
|
Net
Unrealized
Gains (Losses)
|
|
Estimated
Fair
Value
|
|
% of
Total
|
|
Net
Unrealized
Gains (Losses)
|
||||||||||
|
(Dollars in millions)
|
||||||||||||||||||||
By collateral type:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Collateralized obligations
|
$
|
5,381
|
|
|
45.7
|
%
|
|
$
|
29
|
|
|
$
|
5,711
|
|
|
50.9
|
%
|
|
$
|
(42
|
)
|
Automobile loans
|
1,157
|
|
|
9.8
|
|
|
1
|
|
|
1,121
|
|
|
10.0
|
|
|
1
|
|
||||
Foreign residential loans
|
1,027
|
|
|
8.7
|
|
|
19
|
|
|
1,171
|
|
|
10.4
|
|
|
8
|
|
||||
Student loans
|
1,309
|
|
|
11.1
|
|
|
(1
|
)
|
|
984
|
|
|
8.8
|
|
|
(25
|
)
|
||||
Credit card loans
|
1,442
|
|
|
12.3
|
|
|
3
|
|
|
871
|
|
|
7.8
|
|
|
10
|
|
||||
Consumer Loans
|
614
|
|
|
5.2
|
|
|
11
|
|
|
509
|
|
|
4.5
|
|
|
—
|
|
||||
Other loans
|
841
|
|
|
7.2
|
|
|
7
|
|
|
858
|
|
|
7.6
|
|
|
7
|
|
||||
Total
|
$
|
11,771
|
|
|
100.0
|
%
|
|
$
|
69
|
|
|
$
|
11,225
|
|
|
100.0
|
%
|
|
$
|
(41
|
)
|
Ratings profile:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Rated Aaa/AAA
|
$
|
6,564
|
|
|
55.8
|
%
|
|
|
|
$
|
5,704
|
|
|
50.8
|
%
|
|
|
||||
Designated NAIC 1
|
$
|
10,889
|
|
|
92.5
|
%
|
|
|
|
$
|
10,433
|
|
|
92.9
|
%
|
|
|
|
September 30, 2017
|
||||||||||||||||||||||||||||||||||||||||||||||
|
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
|
||||||||||||||||||||||||
|
(Dollars in millions)
|
||||||||||||||||||||||||||||||||||||||||||||||
2003 - 2010
|
$
|
114
|
|
|
$
|
124
|
|
|
$
|
8
|
|
|
$
|
9
|
|
|
$
|
34
|
|
|
$
|
34
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
157
|
|
|
$
|
168
|
|
2011
|
175
|
|
|
191
|
|
|
34
|
|
|
36
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
209
|
|
|
227
|
|
||||||||||||
2012
|
301
|
|
|
316
|
|
|
277
|
|
|
286
|
|
|
230
|
|
|
238
|
|
|
6
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
814
|
|
|
847
|
|
||||||||||||
2013
|
807
|
|
|
860
|
|
|
718
|
|
|
754
|
|
|
285
|
|
|
295
|
|
|
61
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
1,871
|
|
|
1,954
|
|
||||||||||||
2014
|
589
|
|
|
605
|
|
|
540
|
|
|
553
|
|
|
141
|
|
|
144
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,270
|
|
|
1,302
|
|
||||||||||||
2015
|
1,271
|
|
|
1,289
|
|
|
225
|
|
|
228
|
|
|
143
|
|
|
145
|
|
|
9
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
1,648
|
|
|
1,671
|
|
||||||||||||
2016
|
468
|
|
|
471
|
|
|
69
|
|
|
68
|
|
|
34
|
|
|
34
|
|
|
70
|
|
|
71
|
|
|
—
|
|
|
—
|
|
|
641
|
|
|
644
|
|
||||||||||||
2017
|
619
|
|
|
618
|
|
|
468
|
|
|
471
|
|
|
187
|
|
|
188
|
|
|
41
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
1,315
|
|
|
1,319
|
|
||||||||||||
Total
|
$
|
4,344
|
|
|
$
|
4,474
|
|
|
$
|
2,339
|
|
|
$
|
2,405
|
|
|
$
|
1,054
|
|
|
$
|
1,078
|
|
|
$
|
187
|
|
|
$
|
174
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
7,925
|
|
|
$
|
8,132
|
|
Ratings Distribution
|
|
|
55.0
|
%
|
|
|
|
29.6
|
%
|
|
|
|
13.3
|
%
|
|
|
|
2.1
|
%
|
|
|
|
—
|
%
|
|
|
|
100.0
|
%
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
December 31, 2016
|
||||||||||||||||||||||||||||||||||||||||||||||
|
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 |
||||||||||||||||||||||||
|
(Dollars in millions)
|
||||||||||||||||||||||||||||||||||||||||||||||
2003 - 2010
|
$
|
246
|
|
|
$
|
258
|
|
|
$
|
46
|
|
|
$
|
46
|
|
|
$
|
102
|
|
|
$
|
104
|
|
|
$
|
24
|
|
|
$
|
24
|
|
|
$
|
26
|
|
|
$
|
28
|
|
|
$
|
444
|
|
|
$
|
460
|
|
2011
|
185
|
|
|
207
|
|
|
41
|
|
|
43
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
226
|
|
|
250
|
|
||||||||||||
2012
|
292
|
|
|
308
|
|
|
262
|
|
|
271
|
|
|
228
|
|
|
236
|
|
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
788
|
|
|
821
|
|
||||||||||||
2013
|
844
|
|
|
899
|
|
|
699
|
|
|
743
|
|
|
339
|
|
|
327
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,882
|
|
|
1,969
|
|
||||||||||||
2014
|
655
|
|
|
667
|
|
|
617
|
|
|
626
|
|
|
212
|
|
|
204
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,484
|
|
|
1,497
|
|
||||||||||||
2015
|
1,322
|
|
|
1,326
|
|
|
222
|
|
|
214
|
|
|
165
|
|
|
164
|
|
|
8
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
1,717
|
|
|
1,713
|
|
||||||||||||
2016
|
516
|
|
|
514
|
|
|
77
|
|
|
75
|
|
|
30
|
|
|
31
|
|
|
130
|
|
|
130
|
|
|
—
|
|
|
—
|
|
|
753
|
|
|
750
|
|
||||||||||||
Total
|
$
|
4,060
|
|
|
$
|
4,179
|
|
|
$
|
1,964
|
|
|
$
|
2,018
|
|
|
$
|
1,076
|
|
|
$
|
1,066
|
|
|
$
|
168
|
|
|
$
|
169
|
|
|
$
|
26
|
|
|
$
|
28
|
|
|
$
|
7,294
|
|
|
$
|
7,460
|
|
Ratings Distribution
|
|
|
56.0
|
%
|
|
|
|
27.1
|
%
|
|
|
|
14.3
|
%
|
|
|
|
2.2
|
%
|
|
|
|
0.4
|
%
|
|
|
|
100.0
|
%
|
|
September 30, 2017
|
|
December 31, 2016
|
|||||||||||||||||||||||||
|
|
Recorded
Investment
|
|
% of
Total
|
|
Valuation
Allowance
|
|
% of
Recorded Investment
|
|
Recorded
Investment
|
|
% of
Total
|
|
Valuation
Allowance
|
|
% of
Recorded Investment
|
||||||||||||
|
|
(Dollars in millions)
|
||||||||||||||||||||||||||
Commercial
|
|
$
|
43,243
|
|
|
63.8
|
%
|
|
$
|
213
|
|
|
0.5
|
%
|
|
$
|
41,512
|
|
|
64.0
|
%
|
|
$
|
202
|
|
|
0.5
|
%
|
Agricultural
|
|
12,967
|
|
|
19.1
|
|
|
41
|
|
|
0.3
|
%
|
|
12,564
|
|
|
19.4
|
|
|
39
|
|
|
0.3
|
%
|
||||
Residential
|
|
11,599
|
|
|
17.1
|
|
|
62
|
|
|
0.5
|
%
|
|
10,829
|
|
|
16.6
|
|
|
63
|
|
|
0.6
|
%
|
||||
Total
|
|
$
|
67,809
|
|
|
100.0
|
%
|
|
$
|
316
|
|
|
0.5
|
%
|
|
$
|
64,905
|
|
|
100.0
|
%
|
|
$
|
304
|
|
|
0.5
|
%
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Region
|
|
|
|
|
|
|
|
||||||||
Pacific
|
$
|
9,935
|
|
|
23.0
|
%
|
|
$
|
9,506
|
|
|
22.9
|
%
|
||
International
|
8,361
|
|
|
19.3
|
|
|
7,772
|
|
|
18.7
|
|
||||
Middle Atlantic
|
7,616
|
|
|
17.6
|
|
|
7,263
|
|
|
17.5
|
|
||||
South Atlantic
|
4,624
|
|
|
10.7
|
|
|
5,192
|
|
|
12.5
|
|
||||
West South Central
|
3,679
|
|
|
8.5
|
|
|
3,585
|
|
|
8.6
|
|
||||
East North Central
|
2,413
|
|
|
5.6
|
|
|
2,037
|
|
|
4.9
|
|
||||
Mountain
|
1,200
|
|
|
2.8
|
|
|
1,202
|
|
|
2.9
|
|
||||
New England
|
1,162
|
|
|
2.7
|
|
|
1,199
|
|
|
2.9
|
|
||||
West North Central
|
478
|
|
|
1.1
|
|
|
497
|
|
|
1.2
|
|
||||
East South Central
|
835
|
|
|
1.9
|
|
|
410
|
|
|
1.0
|
|
||||
Multi-Region and Other
|
2,940
|
|
|
6.8
|
|
|
2,849
|
|
|
6.9
|
|
||||
Total recorded investment
|
43,243
|
|
|
100.0
|
%
|
|
41,512
|
|
|
100.0
|
%
|
||||
Less: valuation allowances
|
213
|
|
|
|
|
202
|
|
|
|
||||||
Carrying value, net of valuation allowances
|
$
|
43,030
|
|
|
|
|
$
|
41,310
|
|
|
|
||||
Property Type
|
|
|
|
|
|
|
|
||||||||
Office
|
$
|
22,339
|
|
|
51.7
|
%
|
|
$
|
20,868
|
|
|
50.3
|
%
|
||
Retail
|
8,694
|
|
|
20.1
|
|
|
8,708
|
|
|
21.0
|
|
||||
Apartment
|
5,730
|
|
|
13.2
|
|
|
5,240
|
|
|
12.6
|
|
||||
Hotel
|
3,493
|
|
|
8.1
|
|
|
3,747
|
|
|
9.0
|
|
||||
Industrial
|
2,744
|
|
|
6.3
|
|
|
2,659
|
|
|
6.4
|
|
||||
Other
|
243
|
|
|
0.6
|
|
|
290
|
|
|
0.7
|
|
||||
Total recorded investment
|
43,243
|
|
|
100.0
|
%
|
|
41,512
|
|
|
100.0
|
%
|
||||
Less: valuation allowances
|
213
|
|
|
|
|
202
|
|
|
|
||||||
Carrying value, net of valuation allowances
|
$
|
43,030
|
|
|
|
|
$
|
41,310
|
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||
|
Carrying
Value
|
|
% of
Total
|
|
Carrying
Value
|
|
% of
Total |
||||||
|
(Dollars in millions)
|
||||||||||||
Freestanding derivatives with positive estimated fair values
|
$
|
8,792
|
|
|
49.8
|
%
|
|
$
|
12,139
|
|
|
62.8
|
%
|
Tax credit and renewable energy partnerships
|
3,217
|
|
|
18.2
|
|
|
3,118
|
|
|
16.1
|
|
||
Leveraged leases, net of non-recourse debt
|
1,320
|
|
|
7.5
|
|
|
1,521
|
|
|
7.9
|
|
||
Direct financing leases
|
1,228
|
|
|
7.0
|
|
|
1,115
|
|
|
5.8
|
|
||
Operating joint ventures
|
601
|
|
|
3.4
|
|
|
576
|
|
|
3.0
|
|
||
Funds withheld
|
382
|
|
|
2.2
|
|
|
110
|
|
|
0.6
|
|
||
Annuities funding structured settlement claims (1)
|
1,286
|
|
|
7.3
|
|
|
—
|
|
|
—
|
|
||
Other
|
826
|
|
|
4.6
|
|
|
724
|
|
|
3.8
|
|
||
Total
|
$
|
17,652
|
|
|
100.0
|
%
|
|
$
|
19,303
|
|
|
100.0
|
%
|
Percentage of cash and invested assets
|
3.8
|
%
|
|
|
|
4.5
|
%
|
|
|
(1)
|
See Note 3 of the Notes to the Interim Condensed Consolidated Financial Statements.
|
•
|
A comprehensive description of the nature of our derivatives, including the strategies for which derivatives are used in managing various risks.
|
•
|
Information about the gross notional amount, estimated fair value, and primary underlying risk exposure of our derivatives by type of hedge designation, excluding embedded derivatives held at
September 30, 2017
and
December 31, 2016
.
|
•
|
The statement of operations effects of derivatives in net investments in foreign operations, cash flow, fair value, or nonqualifying hedge relationships for the
three months
and
nine months ended
September 30, 2017
and
2016
.
|
|
|
Three Months
Ended September 30, 2017 |
Nine Months
Ended September 30, 2017 |
Gain (loss) recognized in net income (loss)
|
|
$33
|
$47
|
Percentage of gain (loss) attributable to observable inputs
|
|
91%
|
92%
|
Primary drivers of observable gain (loss)
|
|
Weakening of the US dollar versus foreign currencies on receive inflation-linked foreign currency derivatives; partially offset by decreases in certain equity volatility levels and increases in certain equity index levels on equity derivatives.
|
Decreases in interest rates on interest rate derivatives; weakening of the US dollar and Euro versus foreign currencies on receive inflation-linked foreign currency derivatives; partially offset by decreases in certain equity volatility levels and increases in certain equity index levels on equity derivatives.
|
Percentage of gain (loss) attributable to unobservable inputs
|
|
9%
|
8%
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||
Credit Default Swaps
|
|
Gross
Notional
Amount
|
|
Estimated
Fair Value
|
|
Gross
Notional
Amount
|
|
Estimated
Fair Value
|
||||||||
|
|
(In millions)
|
||||||||||||||
Purchased
|
|
$
|
2,329
|
|
|
$
|
(35
|
)
|
|
$
|
2,001
|
|
|
$
|
(26
|
)
|
Written
|
|
11,946
|
|
|
255
|
|
|
10,732
|
|
|
152
|
|
||||
Total
|
|
$
|
14,275
|
|
|
$
|
220
|
|
|
$
|
12,733
|
|
|
$
|
126
|
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||||||||||||||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||||||||||||||||||||||
Credit Default Swaps
|
|
Gross
Gains
|
|
Gross
Losses
|
|
Net
Gains
(Losses)
|
|
Gross
Gains
(1)
|
|
Gross
Losses
(1)
|
|
Net
Gains
(Losses)
|
|
Gross
Gains
|
|
Gross
Losses
|
|
Net
Gains
(Losses)
|
|
Gross
Gains
(1)
|
|
Gross
Losses
(1)
|
|
Net
Gains
(Losses)
|
||||||||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||||||||||||||
Purchased (2), (4)
|
|
$
|
2
|
|
|
$
|
(4
|
)
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
(21
|
)
|
|
$
|
(21
|
)
|
|
$
|
5
|
|
|
$
|
(22
|
)
|
|
$
|
(17
|
)
|
|
$
|
6
|
|
|
$
|
(54
|
)
|
|
$
|
(48
|
)
|
Written (3), (4)
|
|
39
|
|
|
(4
|
)
|
|
35
|
|
|
51
|
|
|
—
|
|
|
51
|
|
|
118
|
|
|
(7
|
)
|
|
111
|
|
|
70
|
|
|
(21
|
)
|
|
49
|
|
||||||||||||
Total
|
|
$
|
41
|
|
|
$
|
(8
|
)
|
|
$
|
33
|
|
|
$
|
51
|
|
|
$
|
(21
|
)
|
|
$
|
30
|
|
|
$
|
123
|
|
|
$
|
(29
|
)
|
|
$
|
94
|
|
|
$
|
76
|
|
|
$
|
(75
|
)
|
|
$
|
1
|
|
(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)
|
At
September 30, 2017
, the Company no longer maintained a trading portfolio for derivatives. The gross gains and gross (losses) for purchased credit default swaps in the trading portfolio were $0 and $0, respectively, for the
three months ended
September 30, 2016
, and $4 million and ($4) million, respectively, for the
nine months ended
September 30, 2016
.
|
(3)
|
At
September 30, 2017
, the Company no longer maintained a trading portfolio for derivatives. The gross gains and gross (losses) for written credit default swaps in the trading portfolio were $0 and $0, respectively, for the
three months ended
September 30, 2016
and $3 million and ($3) million, respectively, for the
nine months ended
September 30, 2016
.
|
(4)
|
Gains (losses) do not include earned income (expense) on credit default swaps.
|
|
September 30, 2017
|
||||||
Guaranteed Minimum Crediting Rate
|
Account
Value (1)
|
|
Account
Value at
Guarantee (1)
|
||||
|
(In millions)
|
||||||
Greater than 0% but less than 2%
|
$
|
4,861
|
|
|
$
|
4,742
|
|
Equal to or greater than 2% but less than 4%
|
$
|
1,843
|
|
|
$
|
1,843
|
|
Equal to or greater than 4%
|
$
|
736
|
|
|
$
|
709
|
|
|
September 30, 2017
|
||||||
Guaranteed Minimum Crediting Rate
|
Account
Value (1)
|
|
Account
Value at
Guarantee (1)
|
||||
|
(In millions)
|
||||||
Annuities
|
|
|
|
||||
Greater than 0% but less than 2%
|
$
|
21,965
|
|
|
$
|
2,899
|
|
Equal to or greater than 2% but less than 4%
|
$
|
1,168
|
|
|
$
|
409
|
|
Equal to or greater than 4%
|
$
|
1
|
|
|
$
|
1
|
|
Life & Other
|
|
|
|
||||
Greater than 0% but less than 2%
|
$
|
8,740
|
|
|
$
|
8,440
|
|
Equal to or greater than 2% but less than 4%
|
$
|
21,521
|
|
|
$
|
8,906
|
|
Equal to or greater than 4%
|
$
|
275
|
|
|
$
|
275
|
|
(1)
|
These amounts are not adjusted for policy loans.
|
|
September 30, 2017
|
||||||
Guaranteed Minimum Crediting Rate
|
Account
Value (1)
|
|
Account
Value at
Guarantee (1)
|
||||
|
(In millions)
|
||||||
Greater than 0% but less than 2%
|
$
|
1,793
|
|
|
$
|
1,705
|
|
Equal to or greater than 2% but less than 4%
|
$
|
19,936
|
|
|
$
|
17,200
|
|
Equal to or greater than 4%
|
$
|
9,204
|
|
|
$
|
6,184
|
|
(1)
|
These amounts are not adjusted for policy loans.
|
|
Future Policy
Benefits
|
|
Policyholder
Account Balances
|
||||||||||||
|
September 30, 2017
|
|
December 31, 2016
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||
|
(In millions)
|
||||||||||||||
Asia
|
|
|
|
|
|
|
|
||||||||
GMDB
|
$
|
36
|
|
|
$
|
29
|
|
|
$
|
—
|
|
|
$
|
—
|
|
GMAB
|
—
|
|
|
—
|
|
|
22
|
|
|
36
|
|
||||
GMWB
|
85
|
|
|
98
|
|
|
184
|
|
|
189
|
|
||||
EMEA
|
|
|
|
|
|
|
|
||||||||
GMDB
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
GMAB
|
—
|
|
|
—
|
|
|
14
|
|
|
17
|
|
||||
GMWB
|
36
|
|
|
30
|
|
|
(91
|
)
|
|
(50
|
)
|
||||
MetLife Holdings
|
|
|
|
|
|
|
|
||||||||
GMDB
|
302
|
|
|
257
|
|
|
—
|
|
|
—
|
|
||||
GMIB
|
574
|
|
|
471
|
|
|
(75
|
)
|
|
454
|
|
||||
GMAB
|
—
|
|
|
—
|
|
|
2
|
|
|
15
|
|
||||
GMWB
|
182
|
|
|
161
|
|
|
1,283
|
|
|
1,296
|
|
||||
Total
|
$
|
1,215
|
|
|
$
|
1,047
|
|
|
$
|
1,339
|
|
|
$
|
1,957
|
|
|
Total Account Value (1)
|
||||||
|
Asia & EMEA
|
|
MetLife Holdings
|
||||
|
(In millions)
|
||||||
Return of premium or five to seven year step-up
|
$
|
8,114
|
|
|
$
|
54,813
|
|
Annual step-up
|
—
|
|
|
3,726
|
|
||
Roll-up and step-up combination
|
—
|
|
|
6,575
|
|
||
Total
|
$
|
8,114
|
|
|
$
|
65,114
|
|
(1)
|
Total account value excludes $345 million for contracts with no GMDBs. Further, many of our annuity contracts offer more than one type of guarantee such that GMDB amounts listed above are not mutually exclusive to the amounts in the living benefit guarantees table below.
|
|
Total Account Value (1)
|
||||||
|
Asia & EMEA
|
|
MetLife Holdings
|
||||
|
(In millions)
|
||||||
GMIB
|
$
|
—
|
|
|
$
|
25,123
|
|
GMWB - non-life contingent (2)
|
2,396
|
|
|
3,438
|
|
||
GMWB - life-contingent
|
3,859
|
|
|
11,229
|
|
||
GMAB
|
1,247
|
|
|
625
|
|
||
|
$
|
7,502
|
|
|
$
|
40,415
|
|
(1)
|
Total account value excludes $25.0 billion for contracts with no living benefit guarantees. Further, many of our annuity contracts offer more than one type of guarantee such that living benefit guarantee amounts listed above are not mutually exclusive of the amounts in the GMDBs table above.
|
(2)
|
The Asia and EMEA segments include the non-life contingent portion of the GMWB total account value of $975 million with a guarantee at annuitization.
|
|
Total Account Value
|
||
|
(In millions)
|
||
7-year setback, 2.5% interest rate
|
$
|
6,517
|
|
7-year setback, 1.5% interest rate
|
1,063
|
|
|
10-year setback, 1.5% interest rate
|
5,668
|
|
|
10-year mortality projection, 10-year setback, 1.0% interest rate
|
10,097
|
|
|
10-year mortality projection, 10-year setback, 0.5% interest rate
|
1,778
|
|
|
|
$
|
25,123
|
|
|
In-the-
Moneyness
|
|
Total
Account Value
|
|
% of Total
|
|
||
|
(Dollars in millions)
|
|||||||
In-the-money
|
30% +
|
|
$
|
346
|
|
|
1
|
%
|
|
20% to 30%
|
|
313
|
|
|
1
|
%
|
|
|
10% to 20%
|
|
603
|
|
|
2
|
%
|
|
|
0% to 10%
|
|
1,160
|
|
|
5
|
%
|
|
|
|
|
2,422
|
|
|
|
||
Out-of-the-money
|
-10% to 0%
|
|
2,851
|
|
|
11
|
%
|
|
|
-20% to -10%
|
|
2,859
|
|
|
11
|
%
|
|
|
-20% +
|
|
16,991
|
|
|
68
|
%
|
|
|
|
|
22,701
|
|
|
|
||
Total GMIBs
|
|
|
$
|
25,123
|
|
|
|
|
|
Instrument Type
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
Primary Underlying
Risk Exposure
|
|
Gross Notional
Amount
|
|
Estimated Fair Value
|
|
Gross Notional
Amount
|
|
Estimated Fair Value
|
||||||||||||||||||
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||||||||||||||
|
|
|
|
(In millions)
|
||||||||||||||||||||||
Interest rate
|
|
Interest rate swaps
|
|
$
|
16,532
|
|
|
$
|
428
|
|
|
$
|
30
|
|
|
$
|
19,715
|
|
|
$
|
1,590
|
|
|
$
|
924
|
|
|
|
Interest rate futures
|
|
2,810
|
|
|
13
|
|
|
—
|
|
|
2,671
|
|
|
2
|
|
|
11
|
|
||||||
|
|
Interest rate options
|
|
10,173
|
|
|
492
|
|
|
35
|
|
|
3,423
|
|
|
449
|
|
|
1
|
|
||||||
Foreign currency exchange rate
|
|
Foreign currency forwards
|
|
2,726
|
|
|
6
|
|
|
138
|
|
|
3,086
|
|
|
10
|
|
|
222
|
|
||||||
|
|
Currency futures
|
|
—
|
|
|
—
|
|
|
—
|
|
|
85
|
|
|
—
|
|
|
—
|
|
||||||
Equity market
|
|
Equity futures
|
|
4,129
|
|
|
2
|
|
|
29
|
|
|
4,283
|
|
|
29
|
|
|
3
|
|
||||||
|
|
Equity index options
|
|
9,945
|
|
|
339
|
|
|
679
|
|
|
13,975
|
|
|
403
|
|
|
524
|
|
||||||
|
|
Equity variance swaps
|
|
8,337
|
|
|
103
|
|
|
285
|
|
|
8,263
|
|
|
83
|
|
|
239
|
|
||||||
|
|
Equity total return swaps
|
|
1,103
|
|
|
—
|
|
|
35
|
|
|
1,046
|
|
|
1
|
|
|
43
|
|
||||||
|
|
Total
|
|
$
|
55,755
|
|
|
$
|
1,383
|
|
|
$
|
1,231
|
|
|
$
|
56,547
|
|
|
$
|
2,567
|
|
|
$
|
1,967
|
|
|
Nine Months
Ended September 30, |
||||||
|
2017
|
|
2016
|
||||
|
(In millions)
|
||||||
Sources:
|
|
|
|
||||
Operating activities, net
|
$
|
10,233
|
|
|
$
|
9,131
|
|
Changes in policyholder account balances, net
|
5,332
|
|
|
4,080
|
|
||
Changes in payables for collateral under securities loaned and other transactions, net
|
2,316
|
|
|
7,227
|
|
||
Long-term debt issued
|
3,657
|
|
|
—
|
|
||
Other, net
|
—
|
|
|
60
|
|
||
Effect of change in foreign currency exchange rates on cash and cash equivalents
|
382
|
|
|
306
|
|
||
Total sources
|
21,920
|
|
|
20,804
|
|
||
Uses:
|
|
|
|
||||
Investing activities, net
|
17,158
|
|
|
14,586
|
|
||
Long-term debt repaid
|
60
|
|
|
1,273
|
|
||
Collateral financing arrangement repaid
|
2,852
|
|
|
55
|
|
||
Distribution of Brighthouse
|
2,793
|
|
|
—
|
|
||
Financing element on certain derivative instruments and other derivative related transactions, net
|
109
|
|
|
336
|
|
||
Treasury stock acquired in connection with share repurchases
|
2,305
|
|
|
70
|
|
||
Dividends on preferred stock
|
58
|
|
|
58
|
|
||
Dividends on common stock
|
1,295
|
|
|
1,295
|
|
||
Other, net
|
144
|
|
|
—
|
|
||
Total uses
|
26,774
|
|
|
17,673
|
|
||
Net increase (decrease) in cash and cash equivalents
|
$
|
(4,854
|
)
|
|
$
|
3,131
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
|
(In millions)
|
||||||
Short-term debt
|
$
|
214
|
|
|
$
|
242
|
|
Long-term debt (1)
|
$
|
16,682
|
|
|
$
|
16,429
|
|
Collateral financing arrangement
|
$
|
1,220
|
|
|
$
|
1,274
|
|
Junior subordinated debt securities
|
$
|
3,144
|
|
|
$
|
3,169
|
|
(1)
|
Includes $535 million and $366 million of non-recourse debt at
September 30, 2017
and
December 31, 2016
, respectively, for which creditors have no access, subject to customary exceptions, to the general assets of the Company other than recourse to certain investment subsidiaries.
|
Declaration Date
|
|
Record Date
|
|
Payment Date
|
|
Preferred Stock Dividend
|
||||||||||||||
Series A
Per
Share
|
|
Series A
Aggregate
|
|
Series C
Per Share |
|
Series C
Aggregate |
||||||||||||||
|
|
|
|
|
|
(In millions, except per share data)
|
||||||||||||||
August 15, 2017
|
|
August 31, 2017
|
|
September 15, 2017
|
|
$
|
0.256
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
May 15, 2017
|
|
May 31, 2017
|
|
June 15, 2017
|
|
$
|
0.256
|
|
|
$
|
7
|
|
|
$
|
26.250
|
|
|
$
|
39
|
|
March 6, 2017
|
|
February 28, 2017
|
|
March 15, 2017
|
|
$
|
0.250
|
|
|
6
|
|
|
$
|
—
|
|
|
—
|
|
||
|
|
|
|
|
|
|
|
$
|
19
|
|
|
|
|
$
|
39
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
August 15, 2016
|
|
August 31, 2016
|
|
September 15, 2016
|
|
$
|
0.256
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
May 16, 2016
|
|
May 31, 2016
|
|
June 15, 2016
|
|
$
|
0.256
|
|
|
$
|
7
|
|
|
$
|
26.250
|
|
|
$
|
39
|
|
March 7, 2016
|
|
February 29, 2016
|
|
March 15, 2016
|
|
$
|
0.253
|
|
|
6
|
|
|
$
|
—
|
|
|
—
|
|
||
|
|
|
|
|
|
|
|
$
|
19
|
|
|
|
|
$
|
39
|
|
Declaration Date
|
|
Record Date
|
|
Payment Date
|
|
Common Stock Dividend
|
||||||
Per Share
|
|
Aggregate
|
||||||||||
|
|
|
|
|
|
(In millions, except per share data)
|
||||||
July 7, 2017
|
|
August 7, 2017
|
|
September 13, 2017
|
|
$
|
0.400
|
|
|
$
|
427
|
|
April 25, 2017
|
|
May 8, 2017
|
|
June 13, 2017
|
|
$
|
0.400
|
|
|
$
|
431
|
|
January 6, 2017
|
|
February 6, 2017
|
|
March 13, 2017
|
|
$
|
0.400
|
|
|
437
|
|
|
|
|
|
|
|
|
|
|
$
|
1,295
|
|
||
|
|
|
|
|
|
|
|
|
||||
July 7, 2016
|
|
August 8, 2016
|
|
September 13, 2016
|
|
$
|
0.400
|
|
|
$
|
441
|
|
April 26, 2016
|
|
May 9, 2016
|
|
June 13, 2016
|
|
$
|
0.400
|
|
|
$
|
441
|
|
January 6, 2016
|
|
February 5, 2016
|
|
March 14, 2016
|
|
$
|
0.375
|
|
|
413
|
|
|
|
|
|
|
|
|
|
|
$
|
1,295
|
|
Company
|
|
Paid
|
|
Permitted w/o
Approval (1)
|
|
||||
|
|
(In millions)
|
|
||||||
Metropolitan Life Insurance Company
|
|
$
|
2,000
|
|
|
$
|
2,723
|
|
|
Brighthouse Life Insurance Company (2)
|
|
$
|
—
|
|
|
$
|
473
|
|
|
New England Life Insurance Company (2)
|
|
$
|
—
|
|
|
$
|
106
|
|
|
Metropolitan Property and Casualty Insurance Company
|
|
$
|
—
|
|
|
$
|
98
|
|
|
General American Life Insurance Company
|
|
$
|
—
|
|
|
$
|
91
|
|
|
Metropolitan Tower Life Insurance Company
|
|
$
|
—
|
|
|
$
|
66
|
|
|
American Life Insurance Company
|
|
$
|
—
|
|
|
$
|
—
|
|
|
(1)
|
Reflects dividend amounts that may be paid during
2017
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
2017
, some or all of such dividends may require regulatory approval.
|
(2)
|
Effective April 28, 2017 in connection with the Separation, MetLife, Inc. contributed all of the issued and outstanding shares of common stock of each of Brighthouse Insurance and New England Life Insurance Company (“NELICO”) to Brighthouse Holdings, LLC. As a result of the Separation, Brighthouse Insurance and NELICO ceased to be subsidiaries of MetLife, Inc. Accordingly, any dividends paid by Brighthouse Insurance and NELICO following the Separation will be paid to Brighthouse Financial, Inc. or its subsidiaries. MetLife will not receive the proceeds of any such dividends after the Separation. See
Note 3
of the Notes to the Interim Condensed Consolidated Financial Statements.
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
|
(In millions)
|
||||||
Long-term debt — unaffiliated
|
$
|
15,589
|
|
|
$
|
15,505
|
|
Long-term debt — affiliated (1)
|
$
|
2,000
|
|
|
$
|
3,100
|
|
Collateral financing arrangement (2)
|
$
|
—
|
|
|
$
|
2,797
|
|
Junior subordinated debt securities (3)
|
$
|
2,453
|
|
|
$
|
1,734
|
|
(1)
|
On April 28, 2017, in connection with the Separation, MetLife, Inc. repaid $750 million and $350 million of senior notes to MetLife Reinsurance Company of Delaware (“MRD”) due September 2032 and December 2033, respectively. The $750 million senior note bore interest at a fixed rate of 4.21% and the $350 million senior note bore interest at a fixed rate of 5.10%. Simultaneously, MRD repaid $750 million and $350 million of surplus notes to MetLife, Inc. See “— Liquidity and Capital Uses — Affiliated Capital and Debt Transactions.”
|
(2)
|
See
Note 3
of the Notes to the Interim Condensed Consolidated Financial Statements for discussion of a $2.8 billion repayment on the MRSC collateral financing agreement liability in April 2017 in connection with the Separation, utilizing assets held in trust, which had been repositioned into short-term investments and cash equivalents.
|
(3)
|
See “— Liquidity and Capital Uses — Affiliated Capital and Debt Transactions” for discussion of a $750 million junior subordinated debt securities exchange.
|
Non-GAAP financial measures:
|
Comparable GAAP financial measures:
|
||
(i)
|
operating revenues
|
(i)
|
revenues
|
(ii)
|
operating expenses
|
(ii)
|
expenses
|
(iii)
|
operating earnings
|
(iii)
|
income (loss) from continuing operations, net of income tax
|
(iv)
|
operating earnings available to common
shareholders
|
(iv)
|
net income (loss) available to MetLife, Inc.’s common shareholders
|
•
|
operating earnings; and
|
•
|
operating earnings available to common shareholders.
|
•
|
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 earned income on derivatives 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) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iii) excludes certain amounts related to contractholder-directed unit-linked investments and (iv) 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 earned income on derivatives and amortization of premium on derivatives that are hedges of policyholder account balances 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, integration and other costs.
|
•
|
MetLife, Inc.’s common stockholders’ equity, excluding accumulated other comprehensive income (loss) (“AOCI”) other than foreign currency translation adjustments (“FCTA”), is defined as MetLife, Inc.’s common stockholders’ equity, excluding the net unrealized investment gains (losses) and defined benefit plans adjustment components of AOCI, net of income tax.
|
•
|
Operating ROE is defined as operating earnings available to common shareholders, divided by average GAAP common stockholders’ equity.
|
•
|
Operating ROE, excluding AOCI other than FCTA, is defined as operating earnings available to common shareholders divided by average GAAP common stockholders’ equity, excluding AOCI other than FCTA.
|
•
|
Allocated equity is the portion of MetLife, Inc.’s common stockholders’ equity that management allocates to each of its segments and sub-segments based on local capital requirements and economic capital. See “— Economic Capital.” Allocated equity excludes the impact of AOCI other than FCTA.
|
•
|
The impact of changes in our foreign currency exchange rates is calculated using the average foreign currency exchange rates for the current period and is applied to each of the comparable periods (“Constant Currency Basis”).
|
•
|
We sometimes refer to sales activity for various products. These sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity. Further, sales statistics for our Latin America, Asia and EMEA segments are on a Constant Currency Basis.
|
•
|
Asymmetrical and non-economic accounting refers to: (i) the portion of net derivative gains (losses) on embedded derivatives attributable to the inclusion of our credit spreads in the liability valuations, (ii) hedging activity that generates net derivative gains (losses) and creates fluctuations in net income because hedge accounting cannot be achieved and the item being hedged does not a have an offsetting gain or loss recognized in earnings, (iii) 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, and (iv) impact of changes in foreign currency exchange rates on the re-measurement of foreign denominated unhedged funding agreements and financing transactions to the U.S. dollar and the re-measurement of certain liabilities from non-functional currencies to functional currencies. We believe that excluding the impact of asymmetrical and non-economic accounting from total GAAP results enhances investor understanding of our performance by disclosing how these accounting practices affect reported GAAP results.
|
•
|
The Company uses a measure of free cash flow to facilitate an understanding of its ability to generate cash for reinvestment into its businesses or use in non-mandatory capital actions. The Company defines free cash flow as the sum of cash available at MetLife’s holding companies from dividends from operating subsidiaries, expenses and other net flows of the holding companies (including capital contributions to subsidiaries), and net contributions from debt to be at or below target leverage ratios. This measure of free cash flow is prior to capital actions, such as common stock dividends and repurchases, debt reduction and mergers and acquisitions. Free cash flow should not be viewed as a substitute for net cash provided by (used in) operating activities calculated in accordance with GAAP. The free cash flow ratio is typically expressed as a percentage of annual operating earnings available to common shareholders.
|
•
|
the risk-based capital ratio of MetLife’s largest U.S. insurance subsidiaries in the aggregate (as defined in the applicable instrument) were to be less than 175% of the company action level based on the subsidiaries’ prior year annual financial statements filed (generally around March 1) with state insurance commissioners; or
|
•
|
at the end of a quarter (“Final Quarter End Test Date”), consolidated GAAP net income for the four-quarter period ending two quarters before such quarter-end (the “Preliminary Quarter End Test Date”) is zero or a negative amount and the consolidated GAAP stockholders’ equity, minus AOCI (the “adjusted stockholders’ equity amount”), as of the Final Quarter End Test Date and the Preliminary Quarter End Test Date, declined by 10% or more from (A) its level 10 quarters before the Final Quarter End Test Date (the “Benchmark Quarter End Test Date”), for Benchmark Quarter End Test Dates after August 4, 2017 (the date of the Separation), or (B) $49,282,000,000, the consolidated GAAP stockholders’ equity, minus AOCI as of June 30, 2017 as reported on a pro forma basis reflecting the Separation in MetLife’s Form 8-K filed with the Securities and Exchange Commission on August 9, 2017, for Benchmark Quarter End Test Dates prior to August 4, 2017.
|
Period
|
|
Total Number
of Shares Purchased (1) |
|
Average Price Paid per Share
|
|
Total Number
of Shares Purchased as Part of Publicly Announced Plans or Programs (2) |
|
Maximum Number
(or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (3) |
||||||
July 1 — July 31, 2017
|
|
892,524
|
|
|
$
|
55.24
|
|
|
892,524
|
|
|
$
|
838,739,268
|
|
August 1 — August 31, 2017
|
|
2,850,391
|
|
|
$
|
47.22
|
|
|
2,850,391
|
|
|
$
|
704,141,933
|
|
September 1 — September 30, 2017
|
|
6,642,509
|
|
|
$
|
48.34
|
|
|
6,639,743
|
|
|
$
|
383,192,714
|
|
(1)
|
Except for the foregoing, there were no shares of MetLife, Inc. common stock repurchased by MetLife, Inc. During the periods July 1 through July 31, 2017, August 1 through August 31, 2017 and September 1 through September 30, 2017, separate account index funds purchased
0
shares,
0
shares and
2,766
shares, respectively, of MetLife, Inc. common stock on the open market in nondiscretionary transactions.
|
(2)
|
MetLife, Inc. repurchased 10,382,658 shares of common stock for $505 million during the three months ended September 30, 2017. Also during the three months ended September 30, 2017, there was a $10 million reduction in treasury stock as a result of the Separation. These transactions are reflected on the Interim Condensed Consolidated Statement of Equity for the nine months ended September 30, 2017. See Note 3 of the Notes to the Interim Condensed Consolidated Financial Statements for information on the Separation.
|
(3)
|
At
September 30, 2017
, MetLife, Inc. had
$383 million
of common stock repurchases remaining under the authorization approved by its Board. On November 1, 2017, MetLife, Inc. announced that its Board approved an additional $2.0 billion authorization for MetLife, Inc. to repurchase its common stock. For more information on common stock repurchases, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — The Company — Liquidity and Capital Uses — Common Stock Repurchases,” “Risk Factors — Capital-Related Risks — Legal and Regulatory Restrictions and Uncertainty and Restrictions Under the Terms of Certain of Our Securities May Prevent Us from Repurchasing Our Stock and Paying Dividends at the Level We Wish” included in the
2016
Annual Report, as updated in “Risk Factors — Capital-Related Risks” herein and Note 16 of the Notes to the Consolidated Financial Statements included in the
2016
Annual Report.
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit No.
|
|
Description
|
|
Form
|
|
File Number
|
|
Exhibit
|
|
Filing Date
|
|
Filed or Furnished Herewith
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.1
|
|
|
10-K
|
|
001-15787
|
|
3.1
|
|
March 1, 2017
|
|
|
|
3.2
|
|
|
10-K
|
|
001-15787
|
|
3.2
|
|
March 1, 2017
|
|
|
|
3.3
|
|
|
10-K
|
|
001-15787
|
|
3.3
|
|
March 1, 2017
|
|
|
|
3.4
|
|
|
10-K
|
|
001-15787
|
|
3.4
|
|
March 1, 2017
|
|
|
|
3.5
|
|
|
10-K
|
|
001-15787
|
|
3.6
|
|
March 1, 2017
|
|
|
|
3.6
|
|
|
8-K
|
|
001-15787
|
|
3.1
|
|
April 30, 2015
|
|
|
|
3.7
|
|
|
8-K
|
|
001-15787
|
|
3.1
|
|
May 28, 2015
|
|
|
|
3.8
|
|
|
10-Q
|
|
001-15787
|
|
3.7
|
|
November 5, 2015
|
|
|
|
3.9
|
|
|
8-K
|
|
001-15787
|
|
3.1
|
|
October 24, 2017
|
|
|
|
4.1
|
|
Certificate of Amendment of Amended and Restated Certificate of Incorporation of MetLife, Inc., dated October 23, 2017 (See Exhibit 3.9 above).
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit No.
|
|
Description
|
|
Form
|
|
File Number
|
|
Exhibit
|
|
Filing Date
|
|
Filed or Furnished Herewith
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.2
|
|
|
|
|
|
|
|
|
|
|
X
|
|
10.3
|
|
|
|
|
|
|
|
|
|
|
X
|
|
10.4
|
|
|
|
|
|
|
|
|
|
|
X
|
|
10.5
|
|
|
|
|
|
|
|
|
|
|
X
|
|
10.6
|
|
|
|
|
|
|
|
|
|
|
X
|
|
10.7
|
|
|
10-Q
|
|
001-15787
|
|
10.1
|
|
August 5, 2016
|
|
|
|
10.8
|
|
|
10-K
|
|
001-15787
|
|
10.15
|
|
February 25, 2016
|
|
|
|
31.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
31.2
|
|
|
|
|
|
|
|
|
|
|
X
|
|
32.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
32.2
|
|
|
|
|
|
|
|
|
|
|
X
|
|
101.INS
|
|
XBRL Instance Document.
|
|
|
|
|
|
|
|
|
|
X
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
|
|
|
|
|
|
X
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
|
|
|
|
|
|
X
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
|
|
|
|
|
|
X
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
|
|
|
|
|
|
|
X
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
|
|
|
|
|
|
X
|
METLIFE, INC.
|
||
|
|
|
By:
|
|
/s/ William O’Donnell
|
|
|
Name: William O’Donnell
Title: Executive Vice President
and Chief Accounting Officer
(Authorized Signatory and Principal
Accounting Officer)
|
|
200 Park Ave
|
New York, NY 10166
|
|
|
|
Steven A. Kandarian
|
|
|
|
Chairman of the Board,
|
|
President and Chief Executive Officer
|
•
|
A one-time cash sign-on payment of up to $700,000 paid to you in February, 2018 to address the forfeit of compensation from your current employer that would otherwise vest in February, 2018.
|
•
|
A one-time cash sign-on payment of up to $500,000 paid to you in February, 2019 to address the forfeit of compensation from your current employer that would otherwise vest in Febrary, 2019.
|
Sincerely,
|
|
I accept this job offer.
|
|
|
Susan M. Podlogar
|
/s/ Steven A. Kandarian
|
|
Name (printed)
|
Steven A. Kandarian
|
|
|
Chairman, President & Chief
|
|
|
Executive Officer
|
|
5/24/2017
|
|
|
Date
|
|
|
|
|
|
/s/ Susan M Podlogar
|
|
|
(Signature)
|
|
Exhibit 10.2
|
•
|
Should you leave your current employer and forfeit your 2017 cash incentive payment, MetLife will make a one-time cash sign-on payment of $1,408,350 to cover the portion you forfeited, paid to you in two parts: $500,000 within 30 days of hire, and the balance by December 31, 2017.
|
•
|
Should you leave your current employer and forfeit your Deferred Compensation and/or Restricted Stock Units that would otherwise vest in February 2018, MetLife will make a one-time cash sign-on payment of $663,000, paid within 30 days after your first anniversary with MetLife.
|
Sincerely,
|
|
I accept this job offer.
|
|
|
|
/s/ Steven A. Kandarian
|
|
Ramy Tadros
|
Steven A. Kandarian
|
|
Name (printed)
|
Chairman, President & Chief
|
|
|
Executive Officer
|
|
June 14
th
, 2017
|
|
|
Date
|
|
|
|
|
|
/s/ Ramy Tadros
|
|
|
(Signature)
|
MetLife International Assignment Office
|
June 13, 2017 – Page 1 of 6
|
MetLife International Assignment Office
|
June 13, 2017 – Page 2 of 6
|
MetLife International Assignment Office
|
June 13, 2017 – Page 3 of 6
|
MetLife International Assignment Office
|
June 13, 2017 – Page 4 of 6
|
MetLife International Assignment Office
|
June 13, 2017 – Page 5 of 6
|
Yours Sincerely,
|
|
|
Agreed and Accepted by:
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Steven A. Kandarian
|
6/13/2017
|
|
/s/ Michel Khalaf
|
6/15/2017
|
|
|
|
|
|
Steven A. Kandarian
|
Date
|
|
Michel Khalaf
|
Date
|
Chairman, President & Chief Executive Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
cc: International Assignment Office (IAO)
|
|
|
||
Denise Starrett, International Assignment Partner (IAP)
|
|
|
MetLife International Assignment Office
|
June 13, 2017 – Page 6 of 6
|
Article
|
Page
|
|
||
1.
|
Definitions
|
2
|
|
|
2.
|
Participation
|
4
|
|
|
3.
|
Credited Service
|
4
|
|
|
4.
|
Benefits
|
5
|
|
|
5.
|
Unfunded Plan
|
8
|
|
|
6.
|
Non-transferability of Participant’s Interest
|
8
|
|
|
7.
|
Effect of Taxes
|
8
|
|
|
8.
|
Participating Companies
|
9
|
|
|
9.
|
Administration of the Plan
|
9
|
|
|
10.
|
Certain Rights and Limitations
|
10
|
|
|
11.
|
Other Provisions
|
10
|
|
|
12.
|
Construction
|
11
|
|
1.01
|
“Applicable Underlying Plan” shall mean either (1) the Alico Overseas Pension Plan, but only if the Participant accrues any benefits under the Alico Overseas Pension Plan after the Effective Date of this Plan, or (2) the MetLife Retirement Plan for Globally Mobile Employees.
|
1.02
|
“Annual Variable Pay” means any annual cash bonus paid to a participant by his employer pursuant to MetLife’s Annual Variable Incentive Plan (“AVIP”). Any other incentive pay, including grants under equity plans and amounts paid in cash under an equity or synthetic equity plan and any cash bonuses paid outside of AVIP, shall not be considered part of a Participant’s Annual Variable Pay.
|
1.03
|
“Base Salary” shall mean the annual basic compensation paid by the Company or a Participating Company to a Participant during a Plan Year. Base Salary shall not include, by way of example and not by way of limitation, any commissions, premium pay, shift differential, foreign service allowance, bonuses, overtime or special pay, or the Company's or Participating Company's cost for any public or private employee benefit plan including this Plan.
|
1.04
|
“Board of Directors” shall mean the Board of Directors of MetLife International Holdings, Inc.
|
1.05
|
“Cash Balance Account” shall mean the notional account established under Section 4.01 of the Plan to track the benefits accrued by a Participant.
|
1.06
|
“Company" shall mean MetLife International Holdings, Inc. (“MIHI”) or any successor by merger, purchase or otherwise, with respect to its Employees who are Participants.
|
1.07
|
“Compensation” shall mean Base Salary and Annual Variable Pay paid to an Employee during the Plan Year for service rendered to the Company or a Participating Company.
|
1.08
|
"Credited Service" is used to determine a Participant's benefit and shall mean service credited under the Plan as provided in Article 3.
|
1.09
|
“Domestic Partner” means an individual with whom an Employee has
entered into a certified civil union (or similar relationship) under the applicable law of any country; or with whom the Employee has a mutually dependent relationship where each party accepts financial responsibility for the other, similar to a marriage, regardless of whether the parties are of the same or opposite gender.
|
1.10
|
"Effective Date" shall mean July 31, 2014.
|
1.11
|
"Employee" shall mean a salaried person who is employed by the Company or a Participating Company on a full time basis, and who receives Base Salary.
Every person who works for at least 20 hours a week and for at least
6
months a year shall be considered a full-time Employee. The Plan Administrator or its designee shall, in its discretion, select and approve Participants in the Plan from among the Employees.
|
1.12
|
"Participant" shall mean any eligible Employee who becomes a Participant in the Plan in accordance with Article 2. Where so indicated in the context, "Participant" also refers to a person who is no longer accruing Credited Service but who is eligible for a benefit under this Plan at the date he ceased to accrue Credited Service, including a person who is no longer employed by any affiliate of the MetLife, Inc. enterprise, but has not yet received a complete distribution of his benefits under the Plan.
|
1.13
|
"Participating Company" shall mean a company which is participating in the Plan pursuant to Article 8 with respect to its Employees who are Participants.
|
1.14
|
"Plan" shall mean the MetLife Deferred Compensation Plan for Globally Mobile Employees.
|
1.15
|
"Plan Administrator" shall mean the party responsible for the administration of the Plan as provided in Article
9.
|
1.16
|
“Plan Year” shall mean the calendar year.
|
1.17
|
“
Provident Fund” shall mean a state sponsored retirement that is maintained on an account balance basis, out of which a lump sum is provided to each employee on retirement.
|
1.18
|
"Vesting" shall mean the point in time when a Participant has earned a nonforfeitable benefit under the Plan. A Participant vests in his benefits under this Plan at the same time that he would have vested in his benefits under the Applicable Underlying Plan if the Applicable Underlying Plan counted service with respect to which the Participant is subject to United States Federal Income Tax as vesting service.
|
4.09
|
Distributions to Alternate Payees
|
MetLife, Inc.
_____________________________
Compensation Committee
Board of Directors
|
|
(1)
|
That the Board approves Michel Khalaf’s eligibility to participate in the MetLife Deferred Compensation Plan for Globally Mobile Employees (the “Plan”) upon his appointment as President, U.S. and EMEA of MetLife, Inc. (the “Company”), subject to the terms and conditions of the Plan, as reflected in the materials presented to the Board and filed with the records of the meeting, and;
|
(2)
|
That the officers of the Company (the “Officers”) 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, any and all instruments and documents, including 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.
|
Metropolitan Life Insurance Company
_____________________________
Compensation Committee
Board of Directors
|
|
(1)
|
That the Board approves Michel Khalaf’s eligibility to participate in the MetLife Deferred Compensation Plan for Globally Mobile Employees (the “Plan”) upon his appointment as President, U.S. and EMEA of Metropolitan Life Insurance Company (the “Company”), subject to the terms and conditions of the Plan, as reflected in the materials presented to the Board and filed with the records of the meeting, and;
|
(2)
|
That the officers of the Company (the “Officers”) 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, any and all instruments and documents, including 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.
|
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 of the Board, 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 of the Board, President and
Chief Executive Officer
|
/s/ John C. R. Hele
|
John C. R. Hele
Executive Vice President and
Chief Financial Officer
|