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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
|
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13-4075851
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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200 Park Avenue, New York, N.Y.
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10166-0188
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
|
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 June 30, 2018 and December 31, 2017 (Unaudited) and for the Three Months and Six Months Ended June 30, 2018 and 2017 (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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June 30, 2018
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December 31, 2017
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||||
Assets
|
|
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||||
Investments:
|
|
|
|
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||||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $292,257 and $286,069, respectively)
|
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$
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306,331
|
|
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$
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308,931
|
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Equity securities, at estimated fair value
|
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1,483
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|
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2,513
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||
Contractholder-directed equity securities and fair value option securities, at estimated fair value (includes $5 and $6, respectively, relating to variable interest entities)
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13,848
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16,745
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Mortgage loans (net of valuation allowances of $325 and $314, respectively; includes $405 and $520, respectively, under the fair value option)
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70,852
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68,731
|
|
||
Policy loans
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9,702
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|
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9,669
|
|
||
Real estate and real estate joint ventures (includes $630 and $25, respectively, of real estate held-for-sale)
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9,741
|
|
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9,637
|
|
||
Other limited partnership interests
|
|
5,985
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|
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5,708
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|
||
Short-term investments, principally at estimated fair value
|
|
3,853
|
|
|
4,870
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|
||
Other invested assets (includes $453 and $125, respectively, relating to variable interest entities)
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17,017
|
|
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17,263
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|
||
Total investments
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438,812
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|
444,067
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|
||
Cash and cash equivalents, principally at estimated fair value (includes $11 and $12, respectively, relating to variable interest entities)
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16,312
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|
|
12,701
|
|
||
Accrued investment income
|
|
3,512
|
|
|
3,524
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|
||
Premiums, reinsurance and other receivables (includes $2 and $3, respectively, relating to variable interest entities)
|
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19,608
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|
|
18,423
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|
||
Deferred policy acquisition costs and value of business acquired
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19,013
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|
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18,419
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|
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Goodwill
|
|
9,499
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9,590
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|
||
Other assets (includes $2 and $2, respectively, relating to variable interest entities)
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8,230
|
|
|
8,167
|
|
||
Separate account assets
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191,347
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|
|
205,001
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|
||
Total assets
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$
|
706,333
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|
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$
|
719,892
|
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Liabilities and Equity
|
|
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|
||||
Liabilities
|
|
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|
|
||||
Future policy benefits
|
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$
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184,461
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|
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$
|
177,974
|
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Policyholder account balances
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182,493
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|
|
182,518
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|
||
Other policy-related balances
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15,908
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|
|
15,515
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|
||
Policyholder dividends payable
|
|
695
|
|
|
682
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|
||
Policyholder dividend obligation
|
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792
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|
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2,121
|
|
||
Payables for collateral under securities loaned and other transactions
|
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27,030
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|
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25,723
|
|
||
Short-term debt
|
|
479
|
|
|
477
|
|
||
Long-term debt (includes $5 and $6, respectively, at estimated fair value, relating to variable interest entities)
|
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14,536
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|
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15,686
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|
||
Collateral financing arrangement
|
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1,085
|
|
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1,121
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|
||
Junior subordinated debt securities
|
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3,146
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3,144
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|
||
Current income tax payable
|
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222
|
|
|
311
|
|
||
Deferred income tax liability
|
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5,377
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6,767
|
|
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Other liabilities (includes $1 and $3, respectively, relating to variable interest entities)
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24,930
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23,982
|
|
||
Separate account liabilities
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191,347
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205,001
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Total liabilities
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652,501
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661,022
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|
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Contingencies, Commitments and Guarantees (Note 15)
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|
||||
Equity
|
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|
||||
MetLife, Inc.’s stockholders’ equity:
|
|
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|
|
||||
Preferred stock, par value $0.01 per share; $3,405 and $2,100 aggregate liquidation preference, respectively
|
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—
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|
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—
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|
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Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,170,816,195 and 1,168,710,101 shares issued, respectively; 1,000,153,999 and 1,043,588,396 shares outstanding, respectively
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12
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12
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Additional paid-in capital
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32,454
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31,111
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|
||
Retained earnings
|
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26,870
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|
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26,527
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|
||
Treasury stock, at cost; 170,662,196 and 125,121,705 shares, respectively
|
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(8,557
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)
|
|
(6,401
|
)
|
||
Accumulated other comprehensive income (loss)
|
|
2,854
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|
|
7,427
|
|
||
Total MetLife, Inc.’s stockholders’ equity
|
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53,633
|
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58,676
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|
||
Noncontrolling interests
|
|
199
|
|
|
194
|
|
||
Total equity
|
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53,832
|
|
|
58,870
|
|
||
Total liabilities and equity
|
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$
|
706,333
|
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$
|
719,892
|
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Three Months
Ended June 30, |
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Six Months
Ended June 30, |
||||||||||||
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2018
|
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2017
|
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2018
|
|
2017
|
||||||||
Revenues
|
|
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|
|
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|
||||||||
Premiums
|
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$
|
15,153
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|
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$
|
9,580
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|
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$
|
24,331
|
|
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$
|
18,545
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Universal life and investment-type product policy fees
|
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1,370
|
|
|
1,364
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|
|
2,762
|
|
|
2,724
|
|
||||
Net investment income
|
|
4,473
|
|
|
4,193
|
|
|
8,218
|
|
|
8,614
|
|
||||
Other revenues
|
|
475
|
|
|
292
|
|
|
949
|
|
|
634
|
|
||||
Net investment gains (losses)
|
|
(227
|
)
|
|
104
|
|
|
(560
|
)
|
|
192
|
|
||||
Net derivative gains (losses)
|
|
(59
|
)
|
|
(200
|
)
|
|
290
|
|
|
(412
|
)
|
||||
Total revenues
|
|
21,185
|
|
|
15,333
|
|
|
35,990
|
|
|
30,297
|
|
||||
Expenses
|
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims
|
|
14,866
|
|
|
9,427
|
|
|
23,584
|
|
|
18,290
|
|
||||
Interest credited to policyholder account balances
|
|
1,424
|
|
|
1,292
|
|
|
2,193
|
|
|
2,743
|
|
||||
Policyholder dividends
|
|
309
|
|
|
313
|
|
|
606
|
|
|
623
|
|
||||
Other expenses
|
|
3,485
|
|
|
3,283
|
|
|
6,850
|
|
|
6,551
|
|
||||
Total expenses
|
|
20,084
|
|
|
14,315
|
|
|
33,233
|
|
|
28,207
|
|
||||
Income (loss) from continuing operations before provision for income tax
|
|
1,101
|
|
|
1,018
|
|
|
2,757
|
|
|
2,090
|
|
||||
Provision for income tax expense (benefit)
|
|
207
|
|
|
162
|
|
|
606
|
|
|
282
|
|
||||
Income (loss) from continuing operations, net of income tax
|
|
894
|
|
|
856
|
|
|
2,151
|
|
|
1,808
|
|
||||
Income (loss) from discontinued operations, net of income tax
|
|
—
|
|
|
58
|
|
|
—
|
|
|
(18
|
)
|
||||
Net income (loss)
|
|
894
|
|
|
914
|
|
|
2,151
|
|
|
1,790
|
|
||||
Less: Net income (loss) attributable to noncontrolling interests
|
|
3
|
|
|
3
|
|
|
7
|
|
|
6
|
|
||||
Net income (loss) attributable to MetLife, Inc.
|
|
891
|
|
|
911
|
|
|
2,144
|
|
|
1,784
|
|
||||
Less: Preferred stock dividends
|
|
46
|
|
|
46
|
|
|
52
|
|
|
52
|
|
||||
Net income (loss) available to MetLife, Inc.’s common shareholders
|
|
$
|
845
|
|
|
$
|
865
|
|
|
$
|
2,092
|
|
|
$
|
1,732
|
|
Comprehensive income (loss)
|
|
$
|
(1,885
|
)
|
|
$
|
2,953
|
|
|
$
|
(3,333
|
)
|
|
$
|
4,860
|
|
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of income tax
|
|
4
|
|
|
2
|
|
|
8
|
|
|
6
|
|
||||
Comprehensive income (loss) attributable to MetLife, Inc.
|
|
$
|
(1,889
|
)
|
|
$
|
2,951
|
|
|
$
|
(3,341
|
)
|
|
$
|
4,854
|
|
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.83
|
|
|
$
|
0.76
|
|
|
$
|
2.04
|
|
|
$
|
1.62
|
|
Diluted
|
|
$
|
0.83
|
|
|
$
|
0.75
|
|
|
$
|
2.02
|
|
|
$
|
1.61
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders per common share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.83
|
|
|
$
|
0.81
|
|
|
$
|
2.04
|
|
|
$
|
1.60
|
|
Diluted
|
|
$
|
0.83
|
|
|
$
|
0.80
|
|
|
$
|
2.02
|
|
|
$
|
1.59
|
|
Cash dividends declared per common share
|
|
$
|
0.420
|
|
|
$
|
0.400
|
|
|
$
|
0.820
|
|
|
$
|
0.800
|
|
|
|
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, 2017
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
31,111
|
|
|
$
|
26,527
|
|
|
$
|
(6,401
|
)
|
|
$
|
7,427
|
|
|
$
|
58,676
|
|
|
$
|
194
|
|
|
$
|
58,870
|
|
Cumulative effects of changes in accounting principles, net of income tax (Note 1)
|
|
|
|
|
|
|
|
(905
|
)
|
|
|
|
912
|
|
|
7
|
|
|
|
|
7
|
|
||||||||||||||
Balance at January 1, 2018
|
|
—
|
|
|
12
|
|
|
31,111
|
|
|
25,622
|
|
|
(6,401
|
)
|
|
8,339
|
|
|
58,683
|
|
|
194
|
|
|
58,877
|
|
|||||||||
Preferred stock issuance
|
|
|
|
|
|
1,274
|
|
|
|
|
|
|
|
|
1,274
|
|
|
|
|
1,274
|
|
|||||||||||||||
Treasury stock acquired in connection with share repurchases
|
|
|
|
|
|
|
|
|
|
|
(2,156
|
)
|
|
|
|
(2,156
|
)
|
|
|
|
(2,156
|
)
|
||||||||||||||
Stock-based compensation
|
|
|
|
|
|
69
|
|
|
|
|
|
|
|
|
69
|
|
|
|
|
69
|
|
|||||||||||||||
Dividends on preferred stock
|
|
|
|
|
|
|
|
(52
|
)
|
|
|
|
|
|
(52
|
)
|
|
|
|
(52
|
)
|
|||||||||||||||
Dividends on common stock
|
|
|
|
|
|
|
|
(844
|
)
|
|
|
|
|
|
(844
|
)
|
|
|
|
(844
|
)
|
|||||||||||||||
Change in equity of noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
2,144
|
|
|
|
|
|
|
2,144
|
|
|
7
|
|
|
2,151
|
|
||||||||||||||
Other comprehensive income (loss), net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
(5,485
|
)
|
|
(5,485
|
)
|
|
1
|
|
|
(5,484
|
)
|
||||||||||||||
Balance at June 30, 2018
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
32,454
|
|
|
$
|
26,870
|
|
|
$
|
(8,557
|
)
|
|
$
|
2,854
|
|
|
$
|
53,633
|
|
|
$
|
199
|
|
|
$
|
53,832
|
|
|
|
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, as previously reported
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
30,944
|
|
|
$
|
34,480
|
|
|
$
|
(3,474
|
)
|
|
$
|
5,347
|
|
|
$
|
67,309
|
|
|
$
|
171
|
|
|
$
|
67,480
|
|
Prior period revisions (Note 1)
|
|
|
|
|
|
|
|
203
|
|
|
|
|
19
|
|
|
222
|
|
|
|
|
222
|
|
||||||||||||||
Balance at December 31, 2016
|
|
—
|
|
|
12
|
|
|
30,944
|
|
|
34,683
|
|
|
(3,474
|
)
|
|
5,366
|
|
|
67,531
|
|
|
171
|
|
|
67,702
|
|
|||||||||
Treasury stock acquired in connection with share repurchases
|
|
|
|
|
|
|
|
|
|
(1,810
|
)
|
|
|
|
(1,810
|
)
|
|
|
|
(1,810
|
)
|
|||||||||||||||
Stock-based compensation
|
|
|
|
|
|
77
|
|
|
|
|
|
|
|
|
77
|
|
|
|
|
77
|
|
|||||||||||||||
Dividends on preferred stock
|
|
|
|
|
|
|
|
(52
|
)
|
|
|
|
|
|
(52
|
)
|
|
|
|
(52
|
)
|
|||||||||||||||
Dividends on common stock
|
|
|
|
|
|
|
|
(868
|
)
|
|
|
|
|
|
(868
|
)
|
|
|
|
(868
|
)
|
|||||||||||||||
Change in equity of noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
37
|
|
|
37
|
|
|||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
1,784
|
|
|
|
|
|
|
1,784
|
|
|
6
|
|
|
1,790
|
|
||||||||||||||
Other comprehensive income (loss), net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
3,070
|
|
|
3,070
|
|
|
—
|
|
|
3,070
|
|
||||||||||||||
Balance at June 30, 2017
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
31,021
|
|
|
$
|
35,547
|
|
|
$
|
(5,284
|
)
|
|
$
|
8,436
|
|
|
$
|
69,732
|
|
|
$
|
214
|
|
|
$
|
69,946
|
|
|
Six Months
Ended June 30, |
||||||
|
2018
|
|
2017
|
||||
Net cash provided by (used in) operating activities
|
$
|
6,904
|
|
|
$
|
5,499
|
|
Cash flows from investing activities
|
|
|
|
||||
Sales, maturities and repayments of:
|
|
|
|
||||
Fixed maturity securities
|
54,497
|
|
|
47,120
|
|
||
Equity securities
|
280
|
|
|
452
|
|
||
Mortgage loans
|
4,341
|
|
|
4,354
|
|
||
Real estate and real estate joint ventures
|
422
|
|
|
490
|
|
||
Other limited partnership interests
|
337
|
|
|
689
|
|
||
Purchases of:
|
|
|
|
||||
Fixed maturity securities
|
(58,061
|
)
|
|
(49,995
|
)
|
||
Equity securities
|
(64
|
)
|
|
(616
|
)
|
||
Mortgage loans
|
(6,380
|
)
|
|
(7,126
|
)
|
||
Real estate and real estate joint ventures
|
(495
|
)
|
|
(602
|
)
|
||
Other limited partnership interests
|
(568
|
)
|
|
(682
|
)
|
||
Cash received in connection with freestanding derivatives
|
2,376
|
|
|
3,945
|
|
||
Cash paid in connection with freestanding derivatives
|
(2,638
|
)
|
|
(5,698
|
)
|
||
Net change in policy loans
|
(42
|
)
|
|
6
|
|
||
Net change in short-term investments
|
1,055
|
|
|
914
|
|
||
Net change in other invested assets
|
164
|
|
|
(206
|
)
|
||
Other, net
|
12
|
|
|
(194
|
)
|
||
Net cash provided by (used in) investing activities
|
(4,764
|
)
|
|
(7,149
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Policyholder account balances:
|
|
|
|
||||
Deposits
|
46,858
|
|
|
44,854
|
|
||
Withdrawals
|
(44,976
|
)
|
|
(42,387
|
)
|
||
Net change in payables for collateral under securities loaned and other transactions
|
1,633
|
|
|
1,205
|
|
||
Long-term debt issued
|
14
|
|
|
2,989
|
|
||
Long-term debt repaid
|
(200
|
)
|
|
(9
|
)
|
||
Collateral financing arrangements repaid
|
(36
|
)
|
|
(2,836
|
)
|
||
Financing element on certain derivative instruments and other derivative related transactions, net
|
12
|
|
|
(94
|
)
|
||
Treasury stock acquired in connection with share repurchases
|
(2,156
|
)
|
|
(1,810
|
)
|
||
Preferred stock issued, net of issuance costs
|
1,274
|
|
|
—
|
|
||
Dividends on preferred stock
|
(52
|
)
|
|
(52
|
)
|
||
Dividends on common stock
|
(844
|
)
|
|
(868
|
)
|
||
Other, net
|
85
|
|
|
(186
|
)
|
||
Net cash provided by (used in) financing activities
|
1,612
|
|
|
806
|
|
||
Effect of change in foreign currency exchange rates on cash and cash equivalents balances
|
(141
|
)
|
|
286
|
|
||
Change in cash and cash equivalents
|
3,611
|
|
|
(558
|
)
|
||
Cash and cash equivalents, beginning of period
|
12,701
|
|
|
17,877
|
|
||
Cash and cash equivalents, end of period
|
$
|
16,312
|
|
|
$
|
17,319
|
|
Cash and cash equivalents, of disposed subsidiary, beginning of period
|
$
|
—
|
|
|
$
|
5,226
|
|
Cash and cash equivalents, of disposed subsidiary, end of period
|
$
|
—
|
|
|
$
|
4,443
|
|
Cash and cash equivalents, from continuing operations, beginning of period
|
$
|
12,701
|
|
|
$
|
12,651
|
|
Cash and cash equivalents, from continuing operations, end of period
|
$
|
16,312
|
|
|
$
|
12,876
|
|
Supplemental disclosures of cash flow information
|
|
|
|
||||
Net cash paid (received) for:
|
|
|
|
||||
Interest
|
$
|
592
|
|
|
$
|
574
|
|
Income tax
|
$
|
577
|
|
|
$
|
505
|
|
Non-cash transactions:
|
|
|
|
||||
Fixed maturity securities received in connection with pension risk transfer transaction
|
$
|
3,016
|
|
|
$
|
—
|
|
Brighthouse common stock exchange transaction (Note 3):
|
|
|
|
||||
Reduction of long-term debt
|
$
|
944
|
|
|
$
|
—
|
|
Reduction of fair value option securities
|
$
|
1,030
|
|
|
$
|
—
|
|
|
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
||||
|
|
2017
|
||||||
|
|
(In millions)
|
||||||
Assumed variable annuity guarantee reserves
|
|
$
|
47
|
|
|
$
|
61
|
|
Group annuity reserves
|
|
(9
|
)
|
|
(18
|
)
|
||
Other revisions to continuing operations, net
|
|
3
|
|
|
66
|
|
||
Impact to income (loss) from continuing operations before provision for income tax
|
|
41
|
|
|
109
|
|
||
Provision for income tax expense (benefit)
|
|
14
|
|
|
38
|
|
||
Impact to income (loss) from continuing operations, net of income tax
|
|
27
|
|
|
71
|
|
||
Other revisions to discontinued operations, net of income tax
|
|
—
|
|
|
3
|
|
||
Impact to net income (loss) available to MetLife, Inc.’s common shareholders
|
|
$
|
27
|
|
|
$
|
74
|
|
|
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
||||||||||||||||||||||||||||
|
|
2017
|
||||||||||||||||||||||||||||||
Interim Condensed Consolidated Statements of Operations
and Comprehensive Income (Loss)
|
|
As
Previously Reported |
|
Discontinued Operations
|
|
Revisions
|
|
As
Revised |
|
As
Previously Reported |
|
Discontinued
Operations (1)
|
|
Revisions
|
|
As
Revised |
||||||||||||||||
|
|
(In millions, except per share data)
|
||||||||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net investment gains (losses)
|
|
$
|
104
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
104
|
|
|
$
|
112
|
|
|
$
|
55
|
|
|
$
|
25
|
|
|
$
|
192
|
|
Net derivatives gains (losses)
|
|
$
|
(437
|
)
|
|
$
|
190
|
|
|
$
|
47
|
|
|
$
|
(200
|
)
|
|
$
|
(1,363
|
)
|
|
$
|
890
|
|
|
$
|
61
|
|
|
$
|
(412
|
)
|
Total revenues
|
|
$
|
17,245
|
|
|
$
|
(1,959
|
)
|
|
$
|
47
|
|
|
$
|
15,333
|
|
|
$
|
33,514
|
|
|
$
|
(3,303
|
)
|
|
$
|
86
|
|
|
$
|
30,297
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Policyholder benefits and claims
|
|
$
|
10,302
|
|
|
$
|
(881
|
)
|
|
$
|
6
|
|
|
$
|
9,427
|
|
|
$
|
20,161
|
|
|
$
|
(1,883
|
)
|
|
$
|
12
|
|
|
$
|
18,290
|
|
Other expenses
|
|
$
|
4,059
|
|
|
$
|
(776
|
)
|
|
$
|
—
|
|
|
$
|
3,283
|
|
|
$
|
7,623
|
|
|
$
|
(1,037
|
)
|
|
$
|
(35
|
)
|
|
$
|
6,551
|
|
Total expenses
|
|
$
|
16,243
|
|
|
$
|
(1,934
|
)
|
|
$
|
6
|
|
|
$
|
14,315
|
|
|
$
|
31,695
|
|
|
$
|
(3,465
|
)
|
|
$
|
(23
|
)
|
|
$
|
28,207
|
|
Income (loss) from continuing operations before provision for income tax
|
|
$
|
1,002
|
|
|
$
|
(25
|
)
|
|
$
|
41
|
|
|
$
|
1,018
|
|
|
$
|
1,819
|
|
|
$
|
162
|
|
|
$
|
109
|
|
|
$
|
2,090
|
|
Provision for income tax expense (benefit)
|
|
$
|
115
|
|
|
$
|
33
|
|
|
$
|
14
|
|
|
$
|
162
|
|
|
$
|
103
|
|
|
$
|
141
|
|
|
$
|
38
|
|
|
$
|
282
|
|
Income (loss) from continuing operations, net of income tax
|
|
$
|
887
|
|
|
$
|
(58
|
)
|
|
$
|
27
|
|
|
$
|
856
|
|
|
$
|
1,716
|
|
|
$
|
21
|
|
|
$
|
71
|
|
|
$
|
1,808
|
|
Income (loss) from discontinued operations, net of income tax
|
|
$
|
—
|
|
|
$
|
58
|
|
|
$
|
—
|
|
|
$
|
58
|
|
|
$
|
—
|
|
|
$
|
(21
|
)
|
|
$
|
3
|
|
|
$
|
(18
|
)
|
Net income (loss)
|
|
$
|
887
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
914
|
|
|
$
|
1,716
|
|
|
$
|
—
|
|
|
$
|
74
|
|
|
$
|
1,790
|
|
Net income (loss) attributable to MetLife, Inc.
|
|
$
|
884
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
911
|
|
|
$
|
1,710
|
|
|
$
|
—
|
|
|
$
|
74
|
|
|
$
|
1,784
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders
|
|
$
|
838
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
865
|
|
|
$
|
1,658
|
|
|
$
|
—
|
|
|
$
|
74
|
|
|
$
|
1,732
|
|
Comprehensive income (loss)
|
|
$
|
2,926
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
2,953
|
|
|
$
|
4,805
|
|
|
$
|
—
|
|
|
$
|
55
|
|
|
$
|
4,860
|
|
Comprehensive income (loss) attributable to MetLife, Inc.
|
|
$
|
2,924
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
2,951
|
|
|
$
|
4,799
|
|
|
$
|
—
|
|
|
$
|
55
|
|
|
$
|
4,854
|
|
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
|
$
|
0.78
|
|
|
$
|
(0.05
|
)
|
|
$
|
0.03
|
|
|
$
|
0.76
|
|
|
$
|
1.53
|
|
|
$
|
0.02
|
|
|
$
|
0.07
|
|
|
$
|
1.62
|
|
Diluted
|
|
$
|
0.77
|
|
|
$
|
(0.05
|
)
|
|
$
|
0.03
|
|
|
$
|
0.75
|
|
|
$
|
1.52
|
|
|
$
|
0.02
|
|
|
$
|
0.07
|
|
|
$
|
1.61
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
|
$
|
0.78
|
|
|
$
|
—
|
|
|
$
|
0.03
|
|
|
$
|
0.81
|
|
|
$
|
1.53
|
|
|
$
|
—
|
|
|
$
|
0.07
|
|
|
$
|
1.60
|
|
Diluted
|
|
$
|
0.77
|
|
|
$
|
—
|
|
|
$
|
0.03
|
|
|
$
|
0.80
|
|
|
$
|
1.52
|
|
|
$
|
—
|
|
|
$
|
0.07
|
|
|
$
|
1.59
|
|
(1)
|
See
Note 3
for additional information on discontinued operations. Revisions include
$5 million
and
$2 million
of net investment gains (losses) and provision for income tax expense (benefit), respectively, related to discontinued operations.
|
Interim Condensed Consolidated Statements of Equity
|
|
As
Previously Reported |
|
Revisions
|
|
As
Revised
|
||||||
|
|
(In millions)
|
||||||||||
Retained Earnings
|
|
|
|
|
|
|
||||||
Balance at December 31, 2016
|
|
$
|
34,480
|
|
|
$
|
203
|
|
|
$
|
34,683
|
|
Net income (loss)
|
|
$
|
1,710
|
|
|
$
|
74
|
|
|
$
|
1,784
|
|
Balance at June 30, 2017
|
|
$
|
35,270
|
|
|
$
|
277
|
|
|
$
|
35,547
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
||||||
Balance at December 31, 2016
|
|
$
|
5,347
|
|
|
$
|
19
|
|
|
$
|
5,366
|
|
Other comprehensive income (loss), net of income tax
|
|
$
|
3,089
|
|
|
$
|
(19
|
)
|
|
$
|
3,070
|
|
Balance at June 30, 2017
|
|
$
|
8,436
|
|
|
$
|
—
|
|
|
$
|
8,436
|
|
Total MetLife, Inc.’s Stockholders’ Equity
|
|
|
|
|
|
|
||||||
Balance at December 31, 2016
|
|
$
|
67,309
|
|
|
$
|
222
|
|
|
$
|
67,531
|
|
Balance at June 30, 2017
|
|
$
|
69,455
|
|
|
$
|
277
|
|
|
$
|
69,732
|
|
Total Equity
|
|
|
|
|
|
|
||||||
Balance at December 31, 2016
|
|
$
|
67,480
|
|
|
$
|
222
|
|
|
$
|
67,702
|
|
Balance at June 30, 2017
|
|
$
|
69,669
|
|
|
$
|
277
|
|
|
$
|
69,946
|
|
•
|
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, 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 stable value and pension risk transfer products, institutional income annuities, tort settlements, capital market investment products, as well as postretirement benefits and company-, bank- or trust-owned life insurance.
|
•
|
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”);
|
•
|
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 adjusted earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iii) excludes certain amounts related to contractholder-directed unit-linked investments, (iv) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP and (v) includes distributions of profits from certain other limited partnership interests that were previously accounted for under the cost method, but are now accounted for at estimated fair value, where the change in estimated fair value is recognized in net investment gains (losses) for GAAP; and
|
•
|
Other revenues is adjusted for settlements of foreign currency earnings hedges and excludes fees received in association with services provided under transition service agreements (“TSA fees”).
|
•
|
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. Other expenses includes TSA fees.
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Three Months Ended June 30, 2018
|
|
U.S.
|
|
Asia
|
|
Latin
America |
|
EMEA
|
|
MetLife
Holdings |
|
Corporate
& Other |
|
Total
|
|
Adjustments
|
|
Total
Consolidated
|
||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Premiums
|
|
$
|
11,302
|
|
|
$
|
1,654
|
|
|
$
|
688
|
|
|
$
|
546
|
|
|
$
|
957
|
|
|
$
|
6
|
|
|
$
|
15,153
|
|
|
$
|
—
|
|
|
$
|
15,153
|
|
Universal life and investment-type product policy fees
|
|
262
|
|
|
399
|
|
|
275
|
|
|
107
|
|
|
301
|
|
|
—
|
|
|
1,344
|
|
|
26
|
|
|
1,370
|
|
|||||||||
Net investment income
|
|
1,719
|
|
|
839
|
|
|
327
|
|
|
73
|
|
|
1,329
|
|
|
40
|
|
|
4,327
|
|
|
146
|
|
|
4,473
|
|
|||||||||
Other revenues
|
|
203
|
|
|
13
|
|
|
9
|
|
|
20
|
|
|
68
|
|
|
79
|
|
|
392
|
|
|
83
|
|
|
475
|
|
|||||||||
Net investment gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(227
|
)
|
|
(227
|
)
|
|||||||||
Net derivative gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(59
|
)
|
|
(59
|
)
|
|||||||||
Total revenues
|
|
13,486
|
|
|
2,905
|
|
|
1,299
|
|
|
746
|
|
|
2,655
|
|
|
125
|
|
|
21,216
|
|
|
(31
|
)
|
|
21,185
|
|
|||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
|
11,233
|
|
|
1,237
|
|
|
660
|
|
|
286
|
|
|
1,706
|
|
|
3
|
|
|
15,125
|
|
|
50
|
|
|
15,175
|
|
|||||||||
Interest credited to policyholder account balances
|
|
439
|
|
|
362
|
|
|
95
|
|
|
26
|
|
|
235
|
|
|
—
|
|
|
1,157
|
|
|
267
|
|
|
1,424
|
|
|||||||||
Capitalization of DAC
|
|
(114
|
)
|
|
(495
|
)
|
|
(91
|
)
|
|
(121
|
)
|
|
(10
|
)
|
|
(3
|
)
|
|
(834
|
)
|
|
—
|
|
|
(834
|
)
|
|||||||||
Amortization of DAC and VOBA
|
|
114
|
|
|
313
|
|
|
71
|
|
|
108
|
|
|
101
|
|
|
1
|
|
|
708
|
|
|
(1
|
)
|
|
707
|
|
|||||||||
Amortization of negative VOBA
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
(16
|
)
|
|||||||||
Interest expense on debt
|
|
4
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
272
|
|
|
279
|
|
|
30
|
|
|
309
|
|
|||||||||
Other expenses
|
|
965
|
|
|
976
|
|
|
363
|
|
|
339
|
|
|
275
|
|
|
259
|
|
|
3,177
|
|
|
142
|
|
|
3,319
|
|
|||||||||
Total expenses
|
|
12,641
|
|
|
2,381
|
|
|
1,099
|
|
|
634
|
|
|
2,309
|
|
|
532
|
|
|
19,596
|
|
|
488
|
|
|
20,084
|
|
|||||||||
Provision for income tax expense (benefit)
|
|
174
|
|
|
161
|
|
|
55
|
|
|
26
|
|
|
66
|
|
|
(234
|
)
|
|
248
|
|
|
(41
|
)
|
|
207
|
|
|||||||||
Adjusted earnings
|
|
$
|
671
|
|
|
$
|
363
|
|
|
$
|
145
|
|
|
$
|
86
|
|
|
$
|
280
|
|
|
$
|
(173
|
)
|
|
1,372
|
|
|
|
|
|
|||||
Adjustments to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(31
|
)
|
|
|
|
|
|||||||||||||||||
Total expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(488
|
)
|
|
|
|
|
|||||||||||||||||
Provision for income tax (expense) benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
41
|
|
|
|
|
|
|||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
894
|
|
|
|
|
$
|
894
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Three Months Ended June 30, 2017
|
|
U.S.
|
|
Asia
|
|
Latin
America |
|
EMEA
|
|
MetLife
Holdings |
|
Corporate
& Other |
|
Total
|
|
Adjustments
|
|
Total
Consolidated
|
||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Premiums
|
|
$
|
5,877
|
|
|
$
|
1,659
|
|
|
$
|
645
|
|
|
$
|
505
|
|
|
$
|
1,022
|
|
|
$
|
8
|
|
|
$
|
9,716
|
|
|
$
|
(136
|
)
|
|
$
|
9,580
|
|
Universal life and investment-type product policy fees
|
|
251
|
|
|
375
|
|
|
275
|
|
|
92
|
|
|
345
|
|
|
—
|
|
|
1,338
|
|
|
26
|
|
|
1,364
|
|
|||||||||
Net investment income
|
|
1,575
|
|
|
729
|
|
|
289
|
|
|
78
|
|
|
1,401
|
|
|
41
|
|
|
4,113
|
|
|
80
|
|
|
4,193
|
|
|||||||||
Other revenues
|
|
199
|
|
|
11
|
|
|
8
|
|
|
28
|
|
|
37
|
|
|
61
|
|
|
344
|
|
|
(52
|
)
|
|
292
|
|
|||||||||
Net investment gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
104
|
|
|
104
|
|
|||||||||
Net derivative gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(200
|
)
|
|
(200
|
)
|
|||||||||
Total revenues
|
|
7,902
|
|
|
2,774
|
|
|
1,217
|
|
|
703
|
|
|
2,805
|
|
|
110
|
|
|
15,511
|
|
|
(178
|
)
|
|
15,333
|
|
|||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
|
5,887
|
|
|
1,247
|
|
|
596
|
|
|
270
|
|
|
1,717
|
|
|
1
|
|
|
9,718
|
|
|
22
|
|
|
9,740
|
|
|||||||||
Interest credited to policyholder account balances
|
|
359
|
|
|
333
|
|
|
94
|
|
|
25
|
|
|
255
|
|
|
—
|
|
|
1,066
|
|
|
226
|
|
|
1,292
|
|
|||||||||
Capitalization of DAC
|
|
(116
|
)
|
|
(428
|
)
|
|
(88
|
)
|
|
(100
|
)
|
|
(23
|
)
|
|
(3
|
)
|
|
(758
|
)
|
|
14
|
|
|
(744
|
)
|
|||||||||
Amortization of DAC and VOBA
|
|
114
|
|
|
290
|
|
|
68
|
|
|
95
|
|
|
139
|
|
|
1
|
|
|
707
|
|
|
(51
|
)
|
|
656
|
|
|||||||||
Amortization of negative VOBA
|
|
—
|
|
|
(30
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(35
|
)
|
|
(3
|
)
|
|
(38
|
)
|
|||||||||
Interest expense on debt
|
|
4
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
5
|
|
|
277
|
|
|
288
|
|
|
(4
|
)
|
|
284
|
|
|||||||||
Other expenses
|
|
914
|
|
|
895
|
|
|
357
|
|
|
332
|
|
|
370
|
|
|
202
|
|
|
3,070
|
|
|
55
|
|
|
3,125
|
|
|||||||||
Total expenses
|
|
7,162
|
|
|
2,307
|
|
|
1,029
|
|
|
617
|
|
|
2,463
|
|
|
478
|
|
|
14,056
|
|
|
259
|
|
|
14,315
|
|
|||||||||
Provision for income tax expense (benefit)
|
|
247
|
|
|
157
|
|
|
34
|
|
|
14
|
|
|
105
|
|
|
(269
|
)
|
|
288
|
|
|
(126
|
)
|
|
162
|
|
|||||||||
Adjusted earnings
|
|
$
|
493
|
|
|
$
|
310
|
|
|
$
|
154
|
|
|
$
|
72
|
|
|
$
|
237
|
|
|
$
|
(99
|
)
|
|
1,167
|
|
|
|
|
|
|||||
Adjustments to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(178
|
)
|
|
|
|
|
|||||||||||||||||
Total expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(259
|
)
|
|
|
|
|
|||||||||||||||||
Provision for income tax (expense) benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
126
|
|
|
|
|
|
|||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
856
|
|
|
|
|
$
|
856
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Six Months Ended June 30, 2018
|
|
U.S.
|
|
Asia
|
|
Latin
America |
|
EMEA
|
|
MetLife
Holdings
|
|
Corporate
& Other
|
|
Total
|
|
Adjustments
|
|
Total
Consolidated |
||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Premiums
|
|
$
|
16,519
|
|
|
$
|
3,402
|
|
|
$
|
1,387
|
|
|
$
|
1,097
|
|
|
$
|
1,907
|
|
|
$
|
19
|
|
|
$
|
24,331
|
|
|
$
|
—
|
|
|
$
|
24,331
|
|
Universal life and investment-type product policy fees
|
|
520
|
|
|
793
|
|
|
557
|
|
|
219
|
|
|
615
|
|
|
—
|
|
|
2,704
|
|
|
58
|
|
|
2,762
|
|
|||||||||
Net investment income
|
|
3,381
|
|
|
1,634
|
|
|
603
|
|
|
148
|
|
|
2,681
|
|
|
99
|
|
|
8,546
|
|
|
(328
|
)
|
|
8,218
|
|
|||||||||
Other revenues
|
|
407
|
|
|
28
|
|
|
17
|
|
|
36
|
|
|
135
|
|
|
160
|
|
|
783
|
|
|
166
|
|
|
949
|
|
|||||||||
Net investment gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(560
|
)
|
|
(560
|
)
|
|||||||||
Net derivative gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
290
|
|
|
290
|
|
|||||||||
Total revenues
|
|
20,827
|
|
|
5,857
|
|
|
2,564
|
|
|
1,500
|
|
|
5,338
|
|
|
278
|
|
|
36,364
|
|
|
(374
|
)
|
|
35,990
|
|
|||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
|
16,371
|
|
|
2,580
|
|
|
1,306
|
|
|
580
|
|
|
3,256
|
|
|
—
|
|
|
24,093
|
|
|
97
|
|
|
24,190
|
|
|||||||||
Interest credited to policyholder account balances
|
|
846
|
|
|
713
|
|
|
193
|
|
|
51
|
|
|
471
|
|
|
—
|
|
|
2,274
|
|
|
(81
|
)
|
|
2,193
|
|
|||||||||
Capitalization of DAC
|
|
(220
|
)
|
|
(960
|
)
|
|
(185
|
)
|
|
(239
|
)
|
|
(20
|
)
|
|
(5
|
)
|
|
(1,629
|
)
|
|
(1
|
)
|
|
(1,630
|
)
|
|||||||||
Amortization of DAC and VOBA
|
|
229
|
|
|
627
|
|
|
131
|
|
|
214
|
|
|
201
|
|
|
3
|
|
|
1,405
|
|
|
(5
|
)
|
|
1,400
|
|
|||||||||
Amortization of negative VOBA
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
(37
|
)
|
|
(1
|
)
|
|
(38
|
)
|
|||||||||
Interest expense on debt
|
|
6
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
4
|
|
|
552
|
|
|
565
|
|
|
30
|
|
|
595
|
|
|||||||||
Other expenses
|
|
1,926
|
|
|
1,928
|
|
|
701
|
|
|
690
|
|
|
551
|
|
|
491
|
|
|
6,287
|
|
|
236
|
|
|
6,523
|
|
|||||||||
Total expenses
|
|
19,158
|
|
|
4,861
|
|
|
2,149
|
|
|
1,286
|
|
|
4,463
|
|
|
1,041
|
|
|
32,958
|
|
|
275
|
|
|
33,233
|
|
|||||||||
Provision for income tax expense (benefit)
|
|
345
|
|
|
306
|
|
|
130
|
|
|
47
|
|
|
170
|
|
|
(393
|
)
|
|
605
|
|
|
1
|
|
|
606
|
|
|||||||||
Adjusted earnings
|
|
$
|
1,324
|
|
|
$
|
690
|
|
|
$
|
285
|
|
|
$
|
167
|
|
|
$
|
705
|
|
|
$
|
(370
|
)
|
|
2,801
|
|
|
|
|
|
|||||
Adjustments to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(374
|
)
|
|
|
|
|
|||||||||||||||||
Total expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(275
|
)
|
|
|
|
|
|||||||||||||||||
Provision for income tax (expense) benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
|
|||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,151
|
|
|
|
|
$
|
2,151
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Six Months Ended June 30, 2017
|
|
U.S.
|
|
Asia
|
|
Latin
America
|
|
EMEA
|
|
MetLife
Holdings
|
|
Corporate
& Other
|
|
Total
|
|
Adjustments
|
|
Total
Consolidated |
||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Premiums
|
|
$
|
11,062
|
|
|
$
|
3,367
|
|
|
$
|
1,292
|
|
|
$
|
1,007
|
|
|
$
|
2,081
|
|
|
$
|
46
|
|
|
$
|
18,855
|
|
|
$
|
(310
|
)
|
|
$
|
18,545
|
|
Universal life and investment-type product policy fees
|
|
516
|
|
|
741
|
|
|
535
|
|
|
187
|
|
|
707
|
|
|
—
|
|
|
2,686
|
|
|
38
|
|
|
2,724
|
|
|||||||||
Net investment income
|
|
3,187
|
|
|
1,431
|
|
|
592
|
|
|
152
|
|
|
2,842
|
|
|
81
|
|
|
8,285
|
|
|
329
|
|
|
8,614
|
|
|||||||||
Other revenues
|
|
403
|
|
|
21
|
|
|
17
|
|
|
45
|
|
|
133
|
|
|
120
|
|
|
739
|
|
|
(105
|
)
|
|
634
|
|
|||||||||
Net investment gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
192
|
|
|
192
|
|
|||||||||
Net derivative gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(412
|
)
|
|
(412
|
)
|
|||||||||
Total revenues
|
|
15,168
|
|
|
5,560
|
|
|
2,436
|
|
|
1,391
|
|
|
5,763
|
|
|
247
|
|
|
30,565
|
|
|
(268
|
)
|
|
30,297
|
|
|||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
|
11,131
|
|
|
2,562
|
|
|
1,229
|
|
|
539
|
|
|
3,450
|
|
|
26
|
|
|
18,937
|
|
|
(24
|
)
|
|
18,913
|
|
|||||||||
Interest credited to policyholder account balances
|
|
710
|
|
|
654
|
|
|
176
|
|
|
49
|
|
|
512
|
|
|
1
|
|
|
2,102
|
|
|
641
|
|
|
2,743
|
|
|||||||||
Capitalization of DAC
|
|
(216
|
)
|
|
(848
|
)
|
|
(170
|
)
|
|
(192
|
)
|
|
(57
|
)
|
|
(4
|
)
|
|
(1,487
|
)
|
|
30
|
|
|
(1,457
|
)
|
|||||||||
Amortization of DAC and VOBA
|
|
228
|
|
|
581
|
|
|
146
|
|
|
182
|
|
|
213
|
|
|
2
|
|
|
1,352
|
|
|
(33
|
)
|
|
1,319
|
|
|||||||||
Amortization of negative VOBA
|
|
—
|
|
|
(67
|
)
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
(75
|
)
|
|
(6
|
)
|
|
(81
|
)
|
|||||||||
Interest expense on debt
|
|
6
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
20
|
|
|
554
|
|
|
583
|
|
|
(16
|
)
|
|
567
|
|
|||||||||
Other expenses
|
|
1,823
|
|
|
1,770
|
|
|
683
|
|
|
648
|
|
|
710
|
|
|
377
|
|
|
6,011
|
|
|
192
|
|
|
6,203
|
|
|||||||||
Total expenses
|
|
13,682
|
|
|
4,652
|
|
|
2,067
|
|
|
1,218
|
|
|
4,848
|
|
|
956
|
|
|
27,423
|
|
|
784
|
|
|
28,207
|
|
|||||||||
Provision for income tax expense (benefit)
|
|
496
|
|
|
303
|
|
|
72
|
|
|
26
|
|
|
291
|
|
|
(540
|
)
|
|
648
|
|
|
(366
|
)
|
|
282
|
|
|||||||||
Adjusted earnings
|
|
$
|
990
|
|
|
$
|
605
|
|
|
$
|
297
|
|
|
$
|
147
|
|
|
$
|
624
|
|
|
$
|
(169
|
)
|
|
2,494
|
|
|
|
|
|
|||||
Adjustments to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(268
|
)
|
|
|
|
|
|||||||||||||||||
Total expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(784
|
)
|
|
|
|
|
|||||||||||||||||
Provision for income tax (expense) benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
366
|
|
|
|
|
|
|||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,808
|
|
|
|
|
$
|
1,808
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
|
(In millions)
|
||||||
U.S.
|
|
$
|
256,668
|
|
|
$
|
255,428
|
|
Asia
|
|
141,653
|
|
|
136,928
|
|
||
Latin America
|
|
73,214
|
|
|
79,670
|
|
||
EMEA
|
|
29,353
|
|
|
30,500
|
|
||
MetLife Holdings
|
|
174,470
|
|
|
183,160
|
|
||
Corporate & Other
|
|
30,975
|
|
|
34,206
|
|
||
Total
|
|
$
|
706,333
|
|
|
$
|
719,892
|
|
|
|
Included on Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
|
|
Excluded from Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
|
|
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 Months
Ended June 30, |
|
Six Months
Ended June 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(In millions)
|
||||||||||||||
Premiums
|
|
|
|
|
|
|
|
|
||||||||
Reinsurance assumed
|
|
$
|
105
|
|
|
$
|
115
|
|
|
$
|
201
|
|
|
$
|
212
|
|
Reinsurance ceded
|
|
(3
|
)
|
|
(4
|
)
|
|
(6
|
)
|
|
(7
|
)
|
||||
Net premiums
|
|
$
|
102
|
|
|
$
|
111
|
|
|
$
|
195
|
|
|
$
|
205
|
|
Universal life and investment-type product policy fees
|
|
|
|
|
|
|
|
|
||||||||
Reinsurance assumed
|
|
$
|
(3
|
)
|
|
$
|
(1
|
)
|
|
$
|
(2
|
)
|
|
$
|
(5
|
)
|
Reinsurance ceded
|
|
(20
|
)
|
|
(22
|
)
|
|
(44
|
)
|
|
(46
|
)
|
||||
Net universal life and investment-type product policy fees
|
|
$
|
(23
|
)
|
|
$
|
(23
|
)
|
|
$
|
(46
|
)
|
|
$
|
(51
|
)
|
Policyholder benefits and claims
|
|
|
|
|
|
|
|
|
||||||||
Reinsurance assumed
|
|
$
|
84
|
|
|
$
|
91
|
|
|
$
|
162
|
|
|
$
|
166
|
|
Reinsurance ceded
|
|
—
|
|
|
(6
|
)
|
|
(10
|
)
|
|
(12
|
)
|
||||
Net policyholder benefits and claims
|
|
$
|
84
|
|
|
$
|
85
|
|
|
$
|
152
|
|
|
$
|
154
|
|
Interest credited to policyholder account balances
|
|
|
|
|
|
|
|
|
||||||||
Reinsurance assumed
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
7
|
|
|
$
|
8
|
|
Reinsurance ceded
|
|
(17
|
)
|
|
(18
|
)
|
|
(35
|
)
|
|
(36
|
)
|
||||
Net interest credited to policyholder account balances
|
|
$
|
(14
|
)
|
|
$
|
(14
|
)
|
|
$
|
(28
|
)
|
|
$
|
(28
|
)
|
Other expenses
|
|
|
|
|
|
|
|
|
||||||||
Reinsurance assumed
|
|
$
|
31
|
|
|
$
|
36
|
|
|
$
|
65
|
|
|
$
|
6
|
|
Reinsurance ceded
|
|
(4
|
)
|
|
(4
|
)
|
|
(18
|
)
|
|
(25
|
)
|
||||
Net other expenses
|
|
$
|
27
|
|
|
$
|
32
|
|
|
$
|
47
|
|
|
$
|
(19
|
)
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
Assumed
|
|
Ceded
|
|
Assumed
|
|
Ceded
|
||||||||
|
(In millions)
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Premiums, reinsurance and other receivables
|
$
|
157
|
|
|
$
|
1,788
|
|
|
$
|
167
|
|
|
$
|
1,793
|
|
Deferred policy acquisition costs and value of business acquired
|
381
|
|
|
(40
|
)
|
|
384
|
|
|
(40
|
)
|
||||
Total assets
|
$
|
538
|
|
|
$
|
1,748
|
|
|
$
|
551
|
|
|
$
|
1,753
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Future policy benefits
|
$
|
1,842
|
|
|
$
|
—
|
|
|
$
|
1,734
|
|
|
$
|
—
|
|
Other policy-related balances
|
120
|
|
|
22
|
|
|
119
|
|
|
28
|
|
||||
Other liabilities
|
1,446
|
|
|
16
|
|
|
1,458
|
|
|
19
|
|
||||
Total liabilities
|
$
|
3,408
|
|
|
$
|
38
|
|
|
$
|
3,311
|
|
|
$
|
47
|
|
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
||||
|
2017
|
||||||
|
(In millions)
|
||||||
Revenues
|
|
|
|
||||
Premiums
|
$
|
355
|
|
|
$
|
705
|
|
Universal life and investment-type product policy fees
|
938
|
|
|
1,880
|
|
||
Net investment income
|
766
|
|
|
1,541
|
|
||
Other revenues
|
90
|
|
|
122
|
|
||
Total net investment gains (losses)
|
—
|
|
|
(50
|
)
|
||
Net derivative gains (losses)
|
(190
|
)
|
|
(890
|
)
|
||
Total revenues
|
1,959
|
|
|
3,308
|
|
||
Expenses
|
|
|
|
||||
Policyholder benefits and claims
|
881
|
|
|
1,883
|
|
||
Interest credited to policyholder account balances
|
270
|
|
|
531
|
|
||
Policyholder dividends
|
7
|
|
|
14
|
|
||
Other expenses
|
776
|
|
|
1,037
|
|
||
Total expenses
|
1,934
|
|
|
3,465
|
|
||
Income (loss) from discontinued operations before provision for income tax
|
25
|
|
|
(157
|
)
|
||
Provision for income tax expense (benefit)
|
(33
|
)
|
|
(139
|
)
|
||
Income (loss) from discontinued operations, net of income tax
|
$
|
58
|
|
|
$
|
(18
|
)
|
|
|
June 30, 2018
|
|
|
December 31, 2017
|
|
||||||||||||||||||
|
|
In the
Event of Death |
|
At
Annuitization |
|
In the
Event of Death |
|
At
Annuitization |
||||||||||||||||
|
|
(Dollars in millions)
|
|
|||||||||||||||||||||
Annuity Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Variable Annuity Guarantees:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total account value (1), (2), (3)
|
|
$
|
63,195
|
|
|
|
$
|
24,673
|
|
|
|
$
|
66,724
|
|
|
|
$
|
26,223
|
|
|
||||
Separate account value (1)
|
|
$
|
42,991
|
|
|
|
$
|
22,802
|
|
|
|
$
|
45,431
|
|
|
|
$
|
24,336
|
|
|
||||
Net amount at risk (2)
|
|
$
|
1,599
|
|
(4
|
)
|
|
$
|
510
|
|
(5
|
)
|
|
$
|
1,238
|
|
(4
|
)
|
|
$
|
525
|
|
(5
|
)
|
Average attained age of contractholders
|
|
66 years
|
|
|
|
66 years
|
|
|
|
65 years
|
|
|
|
65 years
|
|
|
||||||||
Other Annuity Guarantees:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total account value (1), (3)
|
|
N/A
|
|
|
|
$
|
1,330
|
|
|
|
N/A
|
|
|
|
$
|
1,424
|
|
|
||||||
Net amount at risk
|
|
N/A
|
|
|
|
$
|
517
|
|
(6
|
)
|
|
N/A
|
|
|
|
$
|
569
|
|
(6
|
)
|
||||
Average attained age of contractholders
|
|
N/A
|
|
|
|
50 years
|
|
|
|
N/A
|
|
|
|
50 years
|
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
|
Secondary
Guarantees |
|
Paid-Up
Guarantees |
|
Secondary
Guarantees |
|
Paid-Up
Guarantees |
||||||||
|
|
(Dollars in millions)
|
||||||||||||||
Universal and Variable Life Contracts:
|
|
|
|
|
|
|
|
|
||||||||
Total account value (1), (3)
|
|
$
|
9,089
|
|
|
$
|
3,136
|
|
|
$
|
9,036
|
|
|
$
|
3,207
|
|
Net amount at risk (7)
|
|
$
|
65,541
|
|
|
$
|
16,060
|
|
|
$
|
66,956
|
|
|
$
|
16,615
|
|
Average attained age of policyholders
|
|
57 years
|
|
|
64 years
|
|
|
56 years
|
|
|
63 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 interim condensed consolidated balance sheets, from assumed variable annuity guarantees 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.
|
|
|
Six Months
Ended June 30, |
||||||
|
|
2018
|
|
2017 (1)
|
||||
|
|
(In millions)
|
||||||
Balance, beginning of period
|
|
$
|
17,094
|
|
|
$
|
16,157
|
|
Less: Reinsurance recoverables
|
|
2,198
|
|
|
1,968
|
|
||
Net balance, beginning of period
|
|
14,896
|
|
|
14,189
|
|
||
Incurred related to:
|
|
|
|
|
||||
Current period
|
|
12,257
|
|
|
12,747
|
|
||
Prior periods (2)
|
|
200
|
|
|
24
|
|
||
Total incurred
|
|
12,457
|
|
|
12,771
|
|
||
Paid related to:
|
|
|
|
|
||||
Current period
|
|
(8,021
|
)
|
|
(8,709
|
)
|
||
Prior periods
|
|
(4,146
|
)
|
|
(3,753
|
)
|
||
Total paid
|
|
(12,167
|
)
|
|
(12,462
|
)
|
||
Net balance, end of period
|
|
15,186
|
|
|
14,498
|
|
||
Add: Reinsurance recoverables
|
|
2,289
|
|
|
2,227
|
|
||
Balance, end of period (included in future policy benefits and other policy-related balances)
|
|
$
|
17,475
|
|
|
$
|
16,725
|
|
(1)
|
As discussed in Note 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report, at December 31, 2016, the Net balance decreased and the Reinsurance recoverables increased from those amounts previously reported. Additionally, at June 30, 2017, the Net balance decreased by
$150 million
and the Reinsurance recoverables increased by
$147 million
from those amounts previously reported in MetLife, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017. These adjustments to the Net balance and the Reinsurance recoverables, at both periods, are primarily to correct for improper classification of reinsurance recoverables.
|
(2)
|
During both the six months ended
June 30, 2018
and
2017
, 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.
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
|
(In millions)
|
||||||
Closed Block Liabilities
|
|
|
|
|
||||
Future policy benefits
|
|
$
|
40,180
|
|
|
$
|
40,463
|
|
Other policy-related balances
|
|
204
|
|
|
222
|
|
||
Policyholder dividends payable
|
|
468
|
|
|
437
|
|
||
Policyholder dividend obligation
|
|
792
|
|
|
2,121
|
|
||
Other liabilities
|
|
371
|
|
|
212
|
|
||
Total closed block liabilities
|
|
42,015
|
|
|
43,455
|
|
||
Assets Designated to the Closed Block
|
|
|
|
|
||||
Investments:
|
|
|
|
|
||||
Fixed maturity securities available-for-sale, at estimated fair value
|
|
26,194
|
|
|
27,904
|
|
||
Equity securities, at estimated fair value
|
|
68
|
|
|
70
|
|
||
Mortgage loans
|
|
6,290
|
|
|
5,878
|
|
||
Policy loans
|
|
4,520
|
|
|
4,548
|
|
||
Real estate and real estate joint ventures
|
|
591
|
|
|
613
|
|
||
Other invested assets
|
|
694
|
|
|
731
|
|
||
Total investments
|
|
38,357
|
|
|
39,744
|
|
||
Accrued investment income
|
|
457
|
|
|
477
|
|
||
Premiums, reinsurance and other receivables; cash and cash equivalents
|
|
70
|
|
|
14
|
|
||
Current income tax recoverable
|
|
36
|
|
|
35
|
|
||
Deferred income tax assets
|
|
19
|
|
|
36
|
|
||
Total assets designated to the closed block
|
|
38,939
|
|
|
40,306
|
|
||
Excess of closed block liabilities over assets designated to the closed block
|
|
3,076
|
|
|
3,149
|
|
||
Amounts included in AOCI:
|
|
|
|
|
||||
Unrealized investment gains (losses), net of income tax
|
|
1,312
|
|
|
1,863
|
|
||
Unrealized gains (losses) on derivatives, net of income tax
|
|
16
|
|
|
(7
|
)
|
||
Allocated to policyholder dividend obligation, net of income tax
|
|
(626
|
)
|
|
(1,379
|
)
|
||
Total amounts included in AOCI
|
|
702
|
|
|
477
|
|
||
Maximum future earnings to be recognized from closed block assets and liabilities
|
|
$
|
3,778
|
|
|
$
|
3,626
|
|
|
|
Six Months
Ended June 30, 2018 |
|
Year
Ended December 31, 2017 |
||||
|
|
(In millions)
|
||||||
Balance, beginning of period
|
|
$
|
2,121
|
|
|
$
|
1,931
|
|
Change in unrealized investment and derivative gains (losses)
|
|
(1,329
|
)
|
|
190
|
|
||
Balance, end of period
|
|
$
|
792
|
|
|
$
|
2,121
|
|
|
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(In millions)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
Premiums
|
|
$
|
410
|
|
|
$
|
432
|
|
|
$
|
797
|
|
|
$
|
834
|
|
Net investment income
|
|
431
|
|
|
452
|
|
|
875
|
|
|
918
|
|
||||
Net investment gains (losses)
|
|
(24
|
)
|
|
(2
|
)
|
|
(53
|
)
|
|
(10
|
)
|
||||
Net derivative gains (losses)
|
|
13
|
|
|
(10
|
)
|
|
10
|
|
|
(18
|
)
|
||||
Total revenues
|
|
830
|
|
|
872
|
|
|
1,629
|
|
|
1,724
|
|
||||
Expenses
|
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims
|
|
596
|
|
|
614
|
|
|
1,167
|
|
|
1,182
|
|
||||
Policyholder dividends
|
|
238
|
|
|
247
|
|
|
482
|
|
|
497
|
|
||||
Other expenses
|
|
30
|
|
|
32
|
|
|
59
|
|
|
64
|
|
||||
Total expenses
|
|
864
|
|
|
893
|
|
|
1,708
|
|
|
1,743
|
|
||||
Revenues, net of expenses before provision for income tax expense (benefit)
|
|
(34
|
)
|
|
(21
|
)
|
|
(79
|
)
|
|
(19
|
)
|
||||
Provision for income tax expense (benefit)
|
|
(7
|
)
|
|
(8
|
)
|
|
(17
|
)
|
|
(8
|
)
|
||||
Revenues, net of expenses and provision for income tax expense (benefit)
|
|
$
|
(27
|
)
|
|
$
|
(13
|
)
|
|
$
|
(62
|
)
|
|
$
|
(11
|
)
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||||||||||||||||||
|
Amortized
Cost |
|
Gross Unrealized
|
|
Estimated
Fair Value |
|
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
|
$
|
81,382
|
|
|
$
|
4,233
|
|
|
$
|
1,589
|
|
|
$
|
—
|
|
|
$
|
84,026
|
|
|
$
|
76,005
|
|
|
$
|
7,007
|
|
|
$
|
351
|
|
|
$
|
—
|
|
|
$
|
82,661
|
|
Foreign government
|
56,106
|
|
|
6,082
|
|
|
506
|
|
|
—
|
|
|
61,682
|
|
|
55,351
|
|
|
6,495
|
|
|
312
|
|
|
—
|
|
|
61,534
|
|
||||||||||
Foreign corporate
|
52,930
|
|
|
2,780
|
|
|
1,433
|
|
|
—
|
|
|
54,277
|
|
|
52,409
|
|
|
3,836
|
|
|
676
|
|
|
—
|
|
|
55,569
|
|
||||||||||
U.S. government and agency
|
42,701
|
|
|
3,229
|
|
|
543
|
|
|
—
|
|
|
45,387
|
|
|
43,446
|
|
|
4,227
|
|
|
279
|
|
|
—
|
|
|
47,394
|
|
||||||||||
RMBS
|
27,390
|
|
|
976
|
|
|
556
|
|
|
(35
|
)
|
|
27,845
|
|
|
27,846
|
|
|
1,145
|
|
|
233
|
|
|
(42
|
)
|
|
28,800
|
|
||||||||||
State and political subdivision
|
10,683
|
|
|
1,395
|
|
|
52
|
|
|
—
|
|
|
12,026
|
|
|
10,752
|
|
|
1,717
|
|
|
13
|
|
|
1
|
|
|
12,455
|
|
||||||||||
ABS
|
12,818
|
|
|
85
|
|
|
36
|
|
|
1
|
|
|
12,866
|
|
|
12,213
|
|
|
116
|
|
|
39
|
|
|
(1
|
)
|
|
12,291
|
|
||||||||||
CMBS
|
8,247
|
|
|
92
|
|
|
117
|
|
|
—
|
|
|
8,222
|
|
|
8,047
|
|
|
222
|
|
|
42
|
|
|
—
|
|
|
8,227
|
|
||||||||||
Total fixed maturity securities
|
$
|
292,257
|
|
|
$
|
18,872
|
|
|
$
|
4,832
|
|
|
$
|
(34
|
)
|
|
$
|
306,331
|
|
|
$
|
286,069
|
|
|
$
|
24,765
|
|
|
$
|
1,945
|
|
|
$
|
(42
|
)
|
|
$
|
308,931
|
|
(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
|
|
$
|
13,437
|
|
|
$
|
59,285
|
|
|
$
|
61,369
|
|
|
$
|
109,711
|
|
|
$
|
48,455
|
|
|
$
|
292,257
|
|
Estimated fair value
|
|
$
|
13,456
|
|
|
$
|
60,971
|
|
|
$
|
63,077
|
|
|
$
|
119,894
|
|
|
$
|
48,933
|
|
|
$
|
306,331
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||||||||||
|
|
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
|
|
$
|
29,888
|
|
|
$
|
1,145
|
|
|
$
|
4,227
|
|
|
$
|
444
|
|
|
$
|
5,604
|
|
|
$
|
92
|
|
|
$
|
4,115
|
|
|
$
|
259
|
|
Foreign government
|
|
5,007
|
|
|
258
|
|
|
2,960
|
|
|
248
|
|
|
4,234
|
|
|
83
|
|
|
3,251
|
|
|
229
|
|
||||||||
Foreign corporate
|
|
14,309
|
|
|
865
|
|
|
4,676
|
|
|
568
|
|
|
4,422
|
|
|
99
|
|
|
6,802
|
|
|
577
|
|
||||||||
U.S. government and agency
|
|
18,165
|
|
|
217
|
|
|
3,300
|
|
|
326
|
|
|
18,273
|
|
|
93
|
|
|
3,560
|
|
|
186
|
|
||||||||
RMBS
|
|
11,604
|
|
|
307
|
|
|
3,537
|
|
|
214
|
|
|
6,359
|
|
|
50
|
|
|
4,159
|
|
|
141
|
|
||||||||
State and political subdivision
|
|
1,064
|
|
|
31
|
|
|
299
|
|
|
21
|
|
|
182
|
|
|
2
|
|
|
346
|
|
|
12
|
|
||||||||
ABS
|
|
4,588
|
|
|
17
|
|
|
445
|
|
|
20
|
|
|
1,695
|
|
|
7
|
|
|
729
|
|
|
31
|
|
||||||||
CMBS
|
|
4,276
|
|
|
74
|
|
|
421
|
|
|
43
|
|
|
1,174
|
|
|
9
|
|
|
413
|
|
|
33
|
|
||||||||
Total fixed maturity securities
|
|
$
|
88,901
|
|
|
$
|
2,914
|
|
|
$
|
19,865
|
|
|
$
|
1,884
|
|
|
$
|
41,943
|
|
|
$
|
435
|
|
|
$
|
23,375
|
|
|
$
|
1,468
|
|
Total number of securities in an unrealized loss position
|
|
6,572
|
|
|
|
|
1,881
|
|
|
|
|
2,598
|
|
|
|
|
1,955
|
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||
|
Estimated
Fair
Value
|
|
% of
Total
|
|
Estimated
Fair
Value
|
|
% of
Total
|
||||||
|
|||||||||||||
|
(Dollars in millions)
|
||||||||||||
Equity securities:
|
|
|
|
|
|
|
|
||||||
Common stock
|
$
|
1,062
|
|
|
71.6
|
%
|
|
$
|
2,035
|
|
|
81.0
|
%
|
Non-redeemable preferred stock
|
421
|
|
|
28.4
|
|
|
478
|
|
|
19.0
|
|
||
Total equity securities
|
$
|
1,483
|
|
|
100.0
|
%
|
|
$
|
2,513
|
|
|
100.0
|
%
|
•
|
contractholder-directed investments supporting unit-linked variable annuity type liabilities (“Unit-linked investments”) which do not qualify for presentation and reporting as separate account summary total assets and liabilities. These investments are primarily equity securities (including mutual funds) and, to a lesser extent, fixed maturity securities, short-term investments and cash and cash equivalents. The investment returns on these investments inure to contractholders and are offset by a corresponding change in policyholder account balances through interest credited to policyholder account balances;
|
•
|
fixed maturity and equity securities held-for-investment by the general account to support asset and liability management strategies for certain insurance products and investments in certain separate accounts; and
|
•
|
securities held by consolidated securitization entities.
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||
|
Carrying Value
|
|
% of
Total |
|
Carrying Value
|
|
% of
Total |
||||||
|
(Dollars in millions)
|
||||||||||||
Mortgage loans:
|
|
|
|
|
|
|
|
||||||
Commercial
|
$
|
46,075
|
|
|
65.0
|
%
|
|
$
|
44,375
|
|
|
64.6
|
%
|
Agricultural
|
13,293
|
|
|
18.8
|
|
|
13,014
|
|
|
18.9
|
|
||
Residential
|
11,404
|
|
|
16.1
|
|
|
11,136
|
|
|
16.2
|
|
||
Subtotal (1)
|
70,772
|
|
|
99.9
|
|
|
68,525
|
|
|
99.7
|
|
||
Valuation allowances
|
(325
|
)
|
|
(0.5
|
)
|
|
(314
|
)
|
|
(0.5
|
)
|
||
Subtotal mortgage loans, net
|
70,447
|
|
|
99.4
|
|
|
68,211
|
|
|
99.2
|
|
||
Residential — FVO
|
405
|
|
|
0.6
|
|
|
520
|
|
|
0.8
|
|
||
Total mortgage loans, net
|
$
|
70,852
|
|
|
100.0
|
%
|
|
$
|
68,731
|
|
|
100.0
|
%
|
(1)
|
Purchases of mortgage loans, primarily residential mortgage loans, were
$666 million
and
$973 million
for the
three months
and
six months ended
June 30, 2018
, respectively, and
$742 million
and
$1.5 billion
for the
three months
and
six months ended
June 30, 2017
, 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)
|
||||||||||||||||||||||||||||||
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
46,075
|
|
|
$
|
227
|
|
|
$
|
—
|
|
Agricultural
|
|
13
|
|
|
13
|
|
|
2
|
|
|
112
|
|
|
111
|
|
|
13,169
|
|
|
39
|
|
|
122
|
|
||||||||
Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
401
|
|
|
362
|
|
|
11,042
|
|
|
57
|
|
|
362
|
|
||||||||
Total
|
|
$
|
13
|
|
|
$
|
13
|
|
|
$
|
2
|
|
|
$
|
513
|
|
|
$
|
473
|
|
|
$
|
70,286
|
|
|
$
|
323
|
|
|
$
|
484
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
44,375
|
|
|
$
|
214
|
|
|
$
|
—
|
|
Agricultural
|
|
22
|
|
|
21
|
|
|
2
|
|
|
27
|
|
|
27
|
|
|
12,966
|
|
|
39
|
|
|
46
|
|
||||||||
Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
358
|
|
|
324
|
|
|
10,812
|
|
|
59
|
|
|
324
|
|
||||||||
Total
|
|
$
|
22
|
|
|
$
|
21
|
|
|
$
|
2
|
|
|
$
|
385
|
|
|
$
|
351
|
|
|
$
|
68,153
|
|
|
$
|
312
|
|
|
$
|
370
|
|
|
Six Months
Ended June 30, |
||||||||||||||||||||||||||||||
|
2018
|
|
2017
|
||||||||||||||||||||||||||||
|
Commercial
|
|
Agricultural
|
|
Residential
|
|
Total
|
|
Commercial
|
|
Agricultural
|
|
Residential
|
|
Total
|
||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
214
|
|
|
$
|
41
|
|
|
$
|
59
|
|
|
$
|
314
|
|
|
$
|
202
|
|
|
$
|
39
|
|
|
$
|
63
|
|
|
$
|
304
|
|
Provision (release)
|
13
|
|
|
—
|
|
|
2
|
|
|
15
|
|
|
6
|
|
|
—
|
|
|
9
|
|
|
15
|
|
||||||||
Charge-offs, net of recoveries
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
(7
|
)
|
||||||||
Balance, end of period
|
$
|
227
|
|
|
$
|
41
|
|
|
$
|
57
|
|
|
$
|
325
|
|
|
$
|
208
|
|
|
$
|
39
|
|
|
$
|
65
|
|
|
$
|
312
|
|
|
|
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)
|
||||||||||||||||||||||||
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loan-to-value ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Less than 65%
|
|
$
|
39,229
|
|
|
$
|
691
|
|
|
$
|
202
|
|
|
$
|
40,122
|
|
|
87.1
|
%
|
|
$
|
40,488
|
|
|
87.3
|
%
|
65% to 75%
|
|
3,931
|
|
|
264
|
|
|
433
|
|
|
4,628
|
|
|
10.0
|
|
|
4,628
|
|
|
10.0
|
|
|||||
76% to 80%
|
|
405
|
|
|
210
|
|
|
56
|
|
|
671
|
|
|
1.5
|
|
|
638
|
|
|
1.4
|
|
|||||
Greater than 80%
|
|
478
|
|
|
176
|
|
|
—
|
|
|
654
|
|
|
1.4
|
|
|
618
|
|
|
1.3
|
|
|||||
Total
|
|
$
|
44,043
|
|
|
$
|
1,341
|
|
|
$
|
691
|
|
|
$
|
46,075
|
|
|
100.0
|
%
|
|
$
|
46,372
|
|
|
100.0
|
%
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loan-to-value ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Less than 65%
|
|
$
|
37,073
|
|
|
$
|
1,483
|
|
|
$
|
201
|
|
|
$
|
38,757
|
|
|
87.4
|
%
|
|
$
|
39,528
|
|
|
87.7
|
%
|
65% to 75%
|
|
4,183
|
|
|
98
|
|
|
119
|
|
|
4,400
|
|
|
9.9
|
|
|
4,408
|
|
|
9.8
|
|
|||||
76% to 80%
|
|
235
|
|
|
210
|
|
|
57
|
|
|
502
|
|
|
1.1
|
|
|
476
|
|
|
1.0
|
|
|||||
Greater than 80%
|
|
401
|
|
|
168
|
|
|
147
|
|
|
716
|
|
|
1.6
|
|
|
672
|
|
|
1.5
|
|
|||||
Total
|
|
$
|
41,892
|
|
|
$
|
1,959
|
|
|
$
|
524
|
|
|
$
|
44,375
|
|
|
100.0
|
%
|
|
$
|
45,084
|
|
|
100.0
|
%
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||
|
|
Recorded
Investment |
|
% of
Total |
|
Recorded
Investment |
|
% of
Total |
||||||
|
|
(Dollars in millions)
|
||||||||||||
Loan-to-value ratios:
|
|
|
|
|
|
|
|
|
||||||
Less than 65%
|
|
$
|
12,576
|
|
|
94.6
|
%
|
|
$
|
12,347
|
|
|
94.9
|
%
|
65% to 75%
|
|
676
|
|
|
5.1
|
|
|
618
|
|
|
4.7
|
|
||
76% to 80%
|
|
32
|
|
|
0.2
|
|
|
40
|
|
|
0.3
|
|
||
Greater than 80%
|
|
9
|
|
|
0.1
|
|
|
9
|
|
|
0.1
|
|
||
Total
|
|
$
|
13,293
|
|
|
100.0
|
%
|
|
$
|
13,014
|
|
|
100.0
|
%
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||
|
|
Recorded
Investment |
|
% of
Total |
|
Recorded
Investment |
|
% of
Total |
||||||
|
|
(Dollars in millions)
|
||||||||||||
Performance indicators:
|
|
|
|
|
|
|
|
|
||||||
Performing
|
|
$
|
10,945
|
|
|
96.0
|
%
|
|
$
|
10,622
|
|
|
95.4
|
%
|
Nonperforming
|
|
459
|
|
|
4.0
|
|
|
514
|
|
|
4.6
|
|
||
Total
|
|
$
|
11,404
|
|
|
100.0
|
%
|
|
$
|
11,136
|
|
|
100.0
|
%
|
|
|
Past Due
|
|
Greater than 90 Days Past Due and Still
Accruing Interest
|
|
Nonaccrual
|
||||||||||||||||||
|
|
June 30, 2018
|
|
December 31, 2017
|
|
June 30, 2018
|
|
December 31, 2017
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Commercial
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
176
|
|
|
$
|
—
|
|
Agricultural
|
|
233
|
|
|
134
|
|
|
136
|
|
|
125
|
|
|
107
|
|
|
36
|
|
||||||
Residential
|
|
459
|
|
|
514
|
|
|
31
|
|
|
33
|
|
|
428
|
|
|
481
|
|
||||||
Total
|
|
$
|
693
|
|
|
$
|
648
|
|
|
$
|
167
|
|
|
$
|
158
|
|
|
$
|
711
|
|
|
$
|
517
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
|
(In millions)
|
||||||
Fixed maturity securities
|
|
$
|
13,918
|
|
|
$
|
22,645
|
|
Fixed maturity securities with noncredit OTTI losses included in AOCI
|
|
34
|
|
|
41
|
|
||
Total fixed maturity securities
|
|
13,952
|
|
|
22,686
|
|
||
Equity securities
|
|
—
|
|
|
421
|
|
||
Derivatives
|
|
1,547
|
|
|
1,453
|
|
||
Other
|
|
112
|
|
|
46
|
|
||
Subtotal
|
|
15,611
|
|
|
24,606
|
|
||
Amounts allocated from:
|
|
|
|
|
||||
Future policy benefits
|
|
(132
|
)
|
|
(77
|
)
|
||
DAC, VOBA and DSI
|
|
(1,156
|
)
|
|
(1,768
|
)
|
||
Policyholder dividend obligation
|
|
(792
|
)
|
|
(2,121
|
)
|
||
Subtotal
|
|
(2,080
|
)
|
|
(3,966
|
)
|
||
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI
|
|
(5
|
)
|
|
(12
|
)
|
||
Deferred income tax benefit (expense)
|
|
(3,814
|
)
|
|
(6,958
|
)
|
||
Net unrealized investment gains (losses)
|
|
9,712
|
|
|
13,670
|
|
||
Net unrealized investment gains (losses) attributable to noncontrolling interests
|
|
(9
|
)
|
|
(8
|
)
|
||
Net unrealized investment gains (losses) attributable to MetLife, Inc.
|
|
$
|
9,703
|
|
|
$
|
13,662
|
|
|
Six Months
Ended June 30, 2018 |
||
|
(In millions)
|
||
Balance, beginning of period
|
$
|
13,662
|
|
Cumulative effects of changes in accounting principles, net of income tax (Note 1)
|
1,258
|
|
|
Fixed maturity securities on which noncredit OTTI losses have been recognized
|
(7
|
)
|
|
Unrealized investment gains (losses) during the period
|
(8,563
|
)
|
|
Unrealized investment gains (losses) relating to:
|
|
||
Future policy benefits
|
(55
|
)
|
|
DAC, VOBA and DSI
|
612
|
|
|
Policyholder dividend obligation
|
1,329
|
|
|
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI
|
7
|
|
|
Deferred income tax benefit (expense)
|
1,461
|
|
|
Net unrealized investment gains (losses)
|
9,704
|
|
|
Net unrealized investment gains (losses) attributable to noncontrolling interests
|
(1
|
)
|
|
Balance, end of period
|
$
|
9,703
|
|
Change in net unrealized investment gains (losses)
|
$
|
(3,958
|
)
|
Change in net unrealized investment gains (losses) attributable to noncontrolling interests
|
(1
|
)
|
|
Change in net unrealized investment gains (losses) attributable to MetLife, Inc.
|
$
|
(3,959
|
)
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
(In millions)
|
||||||
Securities on loan: (1)
|
|
|
|
||||
Amortized cost
|
$
|
18,052
|
|
|
$
|
17,801
|
|
Estimated fair value
|
$
|
18,846
|
|
|
$
|
19,028
|
|
Cash collateral received from counterparties (2)
|
$
|
19,244
|
|
|
$
|
19,417
|
|
Security collateral received from counterparties (3)
|
$
|
47
|
|
|
$
|
19
|
|
Reinvestment portfolio — estimated fair value
|
$
|
19,374
|
|
|
$
|
19,508
|
|
(1)
|
Included within fixed maturity securities and cash equivalents.
|
(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 interim condensed consolidated financial statements.
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||||||||||
|
|
Remaining Tenor of Securities
Lending Agreements
|
|
|
|
Remaining Tenor of Securities
Lending Agreements
|
|
|
||||||||||||||||||||||||
|
|
Open (1)
|
|
1 Month
or Less
|
|
Over
1 to 6 Months
|
|
Total
|
|
Open (1)
|
|
1 Month
or Less
|
|
Over
1 to 6 Months
|
|
Total
|
||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||
Cash collateral liability by loaned security type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. government and agency
|
|
$
|
4,042
|
|
|
$
|
4,274
|
|
|
$
|
9,891
|
|
|
$
|
18,207
|
|
|
$
|
3,753
|
|
|
$
|
6,031
|
|
|
$
|
8,607
|
|
|
$
|
18,391
|
|
Foreign government
|
|
—
|
|
|
245
|
|
|
717
|
|
|
962
|
|
|
—
|
|
|
192
|
|
|
834
|
|
|
1,026
|
|
||||||||
Agency RMBS
|
|
—
|
|
|
75
|
|
|
—
|
|
|
75
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total
|
|
$
|
4,042
|
|
|
$
|
4,594
|
|
|
$
|
10,608
|
|
|
$
|
19,244
|
|
|
$
|
3,753
|
|
|
$
|
6,223
|
|
|
$
|
9,441
|
|
|
$
|
19,417
|
|
(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.
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
|
(In millions)
|
||||||
Securities on loan: (1)
|
|
|
|
|
||||
Amortized cost
|
|
$
|
2,519
|
|
|
$
|
994
|
|
Estimated fair value
|
|
$
|
2,622
|
|
|
$
|
1,141
|
|
Cash collateral received from counterparties (2)
|
|
$
|
2,560
|
|
|
$
|
1,102
|
|
Reinvestment portfolio — estimated fair value
|
|
$
|
2,568
|
|
|
$
|
1,102
|
|
(1)
|
Included within fixed maturity securities, cash equivalents and short-term investments.
|
(2)
|
Included within payables for collateral under securities loaned and other transactions and other liabilities.
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
|
Remaining Tenor of
Repurchase Agreements
|
|
|
|
Remaining Tenor of
Repurchase Agreements
|
|
|
||||||||||||||||
|
|
1 Month
or Less
|
|
Over
1 to 6 Months
|
|
Total
|
|
1 Month
or Less
|
|
Over
1 to 6 Months
|
|
Total
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Cash collateral liability by loaned security type:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government and agency
|
|
$
|
2,465
|
|
|
$
|
—
|
|
|
$
|
2,465
|
|
|
$
|
1,005
|
|
|
$
|
—
|
|
|
$
|
1,005
|
|
All other corporate and government
|
|
44
|
|
|
51
|
|
|
95
|
|
|
44
|
|
|
53
|
|
|
97
|
|
||||||
Total
|
|
$
|
2,509
|
|
|
$
|
51
|
|
|
$
|
2,560
|
|
|
$
|
1,049
|
|
|
$
|
53
|
|
|
$
|
1,102
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||||||||||
|
|
Remaining Tenor of
Advance Agreements
|
|
|
|
Remaining Tenor of
Advance Agreements
|
|
|
||||||||||||||||||||||||
|
|
1 Month
or Less
|
|
Over
1 to 6 Months
|
|
6 Months to 1 Year
|
|
Total
|
|
1 Month
or Less
|
|
Over
1 to 6 Months
|
|
6 Months to 1 Year
|
|
Total
|
||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||
Cash advance liability by loaned security type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
State and political subdivision
|
|
$
|
100
|
|
|
$
|
625
|
|
|
$
|
75
|
|
|
$
|
800
|
|
|
$
|
—
|
|
|
$
|
300
|
|
|
$
|
—
|
|
|
$
|
300
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
|
(In millions)
|
||||||
Invested assets on deposit (regulatory deposits)
|
|
$
|
1,804
|
|
|
$
|
1,879
|
|
Invested assets held in trust (collateral financing arrangement and reinsurance agreements)
|
|
3,100
|
|
|
2,490
|
|
||
Invested assets pledged as collateral
|
|
24,808
|
|
|
24,174
|
|
||
Total invested assets on deposit, held in trust and pledged as collateral
|
|
$
|
29,712
|
|
|
$
|
28,543
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
|
Total
Assets |
|
Total
Liabilities |
|
Total
Assets |
|
Total
Liabilities |
||||||||
|
|
(In millions)
|
||||||||||||||
Renewable energy partnership (1)
|
|
$
|
109
|
|
|
$
|
—
|
|
|
$
|
116
|
|
|
$
|
3
|
|
Investment fund (2)
|
|
333
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Other investments
|
|
31
|
|
|
5
|
|
|
32
|
|
|
6
|
|
||||
Total
|
|
$
|
473
|
|
|
$
|
6
|
|
|
$
|
148
|
|
|
$
|
9
|
|
(1)
|
Assets of the renewable energy partnership primarily consisted of other invested assets.
|
(2)
|
Assets of the investment fund primarily consisted of other invested assets.
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
|
Carrying
Amount |
|
Maximum
Exposure to Loss (1) |
|
Carrying
Amount |
|
Maximum
Exposure to Loss (1) |
||||||||
|
|
(In millions)
|
||||||||||||||
Fixed maturity securities AFS:
|
|
|
|
|
|
|
|
|
||||||||
Structured Securities (2)
|
|
$
|
46,531
|
|
|
$
|
46,531
|
|
|
$
|
47,614
|
|
|
$
|
47,614
|
|
U.S. and foreign corporate
|
|
1,281
|
|
|
1,281
|
|
|
1,560
|
|
|
1,560
|
|
||||
Other limited partnership interests
|
|
5,088
|
|
|
9,269
|
|
|
4,834
|
|
|
8,543
|
|
||||
Other invested assets
|
|
1,866
|
|
|
2,080
|
|
|
2,291
|
|
|
2,625
|
|
||||
Other investments
|
|
37
|
|
|
41
|
|
|
82
|
|
|
87
|
|
||||
Total
|
|
$
|
54,803
|
|
|
$
|
59,202
|
|
|
$
|
56,381
|
|
|
$
|
60,429
|
|
(1)
|
The maximum exposure to loss relating to fixed maturity 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 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
$107 million
and
$117 million
at
June 30, 2018
and
December 31, 2017
, 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.
|
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Investment income:
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities
|
$
|
3,014
|
|
|
$
|
2,839
|
|
|
$
|
5,910
|
|
|
$
|
5,664
|
|
Equity securities
|
15
|
|
|
31
|
|
|
31
|
|
|
62
|
|
||||
FVO Securities (1)
|
8
|
|
|
16
|
|
|
14
|
|
|
45
|
|
||||
Mortgage loans
|
815
|
|
|
758
|
|
|
1,607
|
|
|
1,494
|
|
||||
Policy loans
|
127
|
|
|
129
|
|
|
251
|
|
|
256
|
|
||||
Real estate and real estate joint ventures
|
195
|
|
|
169
|
|
|
363
|
|
|
322
|
|
||||
Other limited partnership interests
|
120
|
|
|
194
|
|
|
327
|
|
|
434
|
|
||||
Cash, cash equivalents and short-term investments
|
95
|
|
|
56
|
|
|
167
|
|
|
107
|
|
||||
Operating joint ventures
|
19
|
|
|
5
|
|
|
32
|
|
|
7
|
|
||||
Other
|
94
|
|
|
53
|
|
|
200
|
|
|
125
|
|
||||
Subtotal
|
4,502
|
|
|
4,250
|
|
|
8,902
|
|
|
8,516
|
|
||||
Less: Investment expenses
|
315
|
|
|
271
|
|
|
617
|
|
|
532
|
|
||||
Subtotal, net
|
4,187
|
|
|
3,979
|
|
|
8,285
|
|
|
7,984
|
|
||||
Unit-linked investments (1)
|
286
|
|
|
214
|
|
|
(67
|
)
|
|
630
|
|
||||
Net investment income
|
$
|
4,473
|
|
|
$
|
4,193
|
|
|
$
|
8,218
|
|
|
$
|
8,614
|
|
(1)
|
Changes in estimated fair value subsequent to purchase for investments still held as of the end of the respective periods included in net investment income were principally from Unit-linked investments, and were
$165 million
and
($174) million
for the
three months
and
six months ended
June 30, 2018
, respectively, and
$119 million
and
$449 million
for the
three months
and
six months ended
June 30, 2017
, respectively.
|
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Total gains (losses) on fixed maturity securities:
|
|
|
|
|
|
|
|
||||||||
Total OTTI losses recognized — by sector and industry:
|
|
|
|
|
|
|
|
||||||||
State and political subdivision
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
OTTI losses on fixed maturity securities recognized in earnings
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
||||
Fixed maturity securities — net gains (losses) on sales and disposals
|
(46
|
)
|
|
45
|
|
|
(141
|
)
|
|
43
|
|
||||
Total gains (losses) on fixed maturity securities
|
(46
|
)
|
|
42
|
|
|
(141
|
)
|
|
40
|
|
||||
Total gains (losses) on equity securities:
|
|
|
|
|
|
|
|
||||||||
OTTI losses recognized — by security type:
|
|
|
|
|
|
|
|
||||||||
Common stock
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(12
|
)
|
||||
Non-redeemable preferred stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Total OTTI losses on equity securities recognized in earnings
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(13
|
)
|
||||
Equity securities — net gains (losses) on sales and disposals
|
14
|
|
|
5
|
|
|
116
|
|
|
48
|
|
||||
Change in estimated fair value of equity securities (1)
|
20
|
|
|
—
|
|
|
(113
|
)
|
|
—
|
|
||||
Total gains (losses) on equity securities
|
34
|
|
|
—
|
|
|
3
|
|
|
35
|
|
||||
Mortgage loans
|
(15
|
)
|
|
(14
|
)
|
|
(36
|
)
|
|
(26
|
)
|
||||
Real estate and real estate joint ventures
|
89
|
|
|
270
|
|
|
114
|
|
|
267
|
|
||||
Other limited partnership interests
|
8
|
|
|
(11
|
)
|
|
8
|
|
|
(18
|
)
|
||||
Other
|
(58
|
)
|
|
(70
|
)
|
|
(188
|
)
|
|
(96
|
)
|
||||
Subtotal
|
12
|
|
|
217
|
|
|
(240
|
)
|
|
202
|
|
||||
Change in estimated fair value of other limited partnership interests and real estate joint ventures
|
(1
|
)
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
||||
Non-investment portfolio gains (losses) (2)
|
(238
|
)
|
|
(113
|
)
|
|
(314
|
)
|
|
(10
|
)
|
||||
Total net investment gains (losses)
|
$
|
(227
|
)
|
|
$
|
104
|
|
|
$
|
(560
|
)
|
|
$
|
192
|
|
(1)
|
Changes in estimated fair value subsequent to purchase for equity securities still held as of the end of the period included in net investment gains (losses) were
$31 million
and
($5) million
for the
three months
and
six months ended
June 30, 2018
, respectively. See
Note 1
.
|
(2)
|
Non-investment portfolio gains (losses) for the
three months
and
six months ended
June 30, 2018
includes a loss of
$159 million
and
$327 million
, respectively, which represents both the change in estimated fair value of FVO Brighthouse Common Stock held by the Company through date of disposal and the loss on disposal. See Note
3
.
|
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Proceeds
|
$
|
20,183
|
|
|
$
|
12,486
|
|
|
$
|
39,253
|
|
|
$
|
26,947
|
|
Gross investment gains
|
$
|
149
|
|
|
$
|
117
|
|
|
$
|
255
|
|
|
$
|
259
|
|
Gross investment losses
|
(195
|
)
|
|
(72
|
)
|
|
(396
|
)
|
|
(216
|
)
|
||||
OTTI losses
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
||||
Net investment gains (losses)
|
$
|
(46
|
)
|
|
$
|
42
|
|
|
$
|
(141
|
)
|
|
$
|
40
|
|
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Balance, beginning of period
|
$
|
128
|
|
|
$
|
170
|
|
|
$
|
138
|
|
|
$
|
187
|
|
Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI
|
(17
|
)
|
|
(5
|
)
|
|
(26
|
)
|
|
(22
|
)
|
||||
Increase in cash flows — accretion of previous credit loss OTTI
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
Balance, end of period
|
$
|
111
|
|
|
$
|
165
|
|
|
$
|
111
|
|
|
$
|
165
|
|
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
|
|
•
|
Derivatives held within 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 June 30, |
|
Six Months
Ended June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Freestanding derivatives and hedging gains (losses) (1)
|
$
|
(210
|
)
|
|
$
|
(291
|
)
|
|
$
|
102
|
|
|
$
|
(660
|
)
|
Embedded derivatives gains (losses)
|
151
|
|
|
91
|
|
|
188
|
|
|
248
|
|
||||
Total net derivative gains (losses)
|
$
|
(59
|
)
|
|
$
|
(200
|
)
|
|
$
|
290
|
|
|
$
|
(412
|
)
|
(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 June 30, |
|
Six Months
Ended June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Qualifying hedges:
|
|
|
|
|
|
|
|
||||||||
Net investment income
|
$
|
93
|
|
|
$
|
70
|
|
|
$
|
174
|
|
|
$
|
145
|
|
Interest credited to policyholder account balances
|
(28
|
)
|
|
(14
|
)
|
|
(51
|
)
|
|
(20
|
)
|
||||
Other expenses
|
(4
|
)
|
|
(2
|
)
|
|
(6
|
)
|
|
(5
|
)
|
||||
Nonqualifying hedges:
|
|
|
|
|
|
|
|
||||||||
Net derivative gains (losses)
|
133
|
|
|
146
|
|
|
266
|
|
|
314
|
|
||||
Policyholder benefits and claims
|
3
|
|
|
2
|
|
|
5
|
|
|
4
|
|
||||
Total
|
$
|
197
|
|
|
$
|
202
|
|
|
$
|
388
|
|
|
$
|
438
|
|
|
|
Net
Derivative Gains (Losses) |
|
Net
Investment Income (1) |
|
Policyholder
Benefits and Claims (2) |
||||||
|
|
(In millions)
|
||||||||||
Three Months Ended June 30, 2018
|
|
|
|
|
|
|
||||||
Interest rate derivatives
|
|
$
|
(75
|
)
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
Foreign currency exchange rate derivatives
|
|
(1
|
)
|
|
—
|
|
|
(5
|
)
|
|||
Credit derivatives — purchased
|
|
14
|
|
|
—
|
|
|
—
|
|
|||
Credit derivatives — written
|
|
(35
|
)
|
|
—
|
|
|
—
|
|
|||
Equity derivatives
|
|
(174
|
)
|
|
—
|
|
|
(33
|
)
|
|||
Total
|
|
$
|
(271
|
)
|
|
$
|
—
|
|
|
$
|
(43
|
)
|
|
|
|
|
|
|
|
||||||
Three Months Ended June 30, 2017
|
|
|
|
|
|
|
||||||
Interest rate derivatives
|
|
$
|
72
|
|
|
$
|
(2
|
)
|
|
$
|
(15
|
)
|
Foreign currency exchange rate derivatives
|
|
(544
|
)
|
|
—
|
|
|
2
|
|
|||
Credit derivatives — purchased
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|||
Credit derivatives — written
|
|
44
|
|
|
—
|
|
|
—
|
|
|||
Equity derivatives
|
|
(232
|
)
|
|
(1
|
)
|
|
(43
|
)
|
|||
Total
|
|
$
|
(667
|
)
|
|
$
|
(3
|
)
|
|
$
|
(56
|
)
|
|
|
|
|
|
|
|
||||||
Six Months Ended June 30, 2018
|
|
|
|
|
|
|
||||||
Interest rate derivatives
|
|
$
|
(310
|
)
|
|
$
|
4
|
|
|
$
|
(12
|
)
|
Foreign currency exchange rate derivatives
|
|
386
|
|
|
—
|
|
|
(3
|
)
|
|||
Credit derivatives — purchased
|
|
11
|
|
|
—
|
|
|
—
|
|
|||
Credit derivatives — written
|
|
(79
|
)
|
|
—
|
|
|
—
|
|
|||
Equity derivatives
|
|
(76
|
)
|
|
1
|
|
|
(21
|
)
|
|||
Total
|
|
$
|
(68
|
)
|
|
$
|
5
|
|
|
$
|
(36
|
)
|
|
|
|
|
|
|
|
||||||
Six Months Ended June 30, 2017
|
|
|
|
|
|
|
||||||
Interest rate derivatives
|
|
$
|
(318
|
)
|
|
$
|
—
|
|
|
$
|
(13
|
)
|
Foreign currency exchange rate derivatives
|
|
(181
|
)
|
|
—
|
|
|
2
|
|
|||
Credit derivatives — purchased
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|||
Credit derivatives — written
|
|
76
|
|
|
—
|
|
|
—
|
|
|||
Equity derivatives
|
|
(586
|
)
|
|
(4
|
)
|
|
(115
|
)
|
|||
Total
|
|
$
|
(1,024
|
)
|
|
$
|
(4
|
)
|
|
$
|
(126
|
)
|
(1)
|
Changes in estimated fair value related to economic hedges of equity method investments in joint ventures and derivatives held within 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 June 30, 2018
|
|
|
||||||||||||
Interest rate swaps:
|
|
Fixed maturity securities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Policyholder liabilities (1)
|
|
(68
|
)
|
|
70
|
|
|
2
|
|
|||
Foreign currency swaps:
|
|
Foreign-denominated fixed maturity securities and mortgage loans
|
|
52
|
|
|
(53
|
)
|
|
(1
|
)
|
|||
|
|
Foreign-denominated policyholder account balances (2)
|
|
5
|
|
|
(5
|
)
|
|
—
|
|
|||
Foreign currency forwards:
|
|
Foreign-denominated fixed maturity securities
|
|
(114
|
)
|
|
109
|
|
|
(5
|
)
|
|||
Total
|
|
$
|
(125
|
)
|
|
$
|
121
|
|
|
$
|
(4
|
)
|
||
|
|
|
|
|
|
|
||||||||
Three Months Ended June 30, 2017
|
|
|
||||||||||||
Interest rate swaps:
|
|
Fixed maturity securities
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
|
Policyholder liabilities (1)
|
|
49
|
|
|
21
|
|
|
70
|
|
|||
Foreign currency swaps:
|
|
Foreign-denominated fixed maturity securities
|
|
(2
|
)
|
|
3
|
|
|
1
|
|
|||
|
|
Foreign-denominated policyholder account balances (2)
|
|
45
|
|
|
(26
|
)
|
|
19
|
|
|||
Foreign currency forwards:
|
|
Foreign-denominated fixed maturity securities
|
|
(21
|
)
|
|
19
|
|
|
(2
|
)
|
|||
Total
|
|
$
|
71
|
|
|
$
|
16
|
|
|
$
|
87
|
|
||
|
|
|
|
|
|
|
||||||||
Six Months Ended June 30, 2018
|
|
|
||||||||||||
Interest rate swaps:
|
|
Fixed maturity securities
|
|
$
|
3
|
|
|
$
|
(2
|
)
|
|
$
|
1
|
|
|
|
Policyholder liabilities (1)
|
|
(281
|
)
|
|
282
|
|
|
1
|
|
|||
Foreign currency swaps:
|
|
Foreign-denominated fixed maturity securities and mortgage loans
|
|
25
|
|
|
(26
|
)
|
|
(1
|
)
|
|||
|
|
Foreign-denominated policyholder account balances (2)
|
|
23
|
|
|
(23
|
)
|
|
—
|
|
|||
Foreign currency forwards:
|
|
Foreign-denominated fixed maturity securities
|
|
65
|
|
|
(59
|
)
|
|
6
|
|
|||
Total
|
|
$
|
(165
|
)
|
|
$
|
172
|
|
|
$
|
7
|
|
||
|
|
|
|
|
|
|
||||||||
Six Months Ended June 30, 2017
|
|
|
|
|
|
|
||||||||
Interest rate swaps:
|
|
Fixed maturity securities
|
|
$
|
1
|
|
|
$
|
(2
|
)
|
|
$
|
(1
|
)
|
|
|
Policyholder liabilities (1)
|
|
(2
|
)
|
|
71
|
|
|
69
|
|
|||
Foreign currency swaps:
|
|
Foreign-denominated fixed maturity securities
|
|
(5
|
)
|
|
6
|
|
|
1
|
|
|||
|
|
Foreign-denominated policyholder account balances (2)
|
|
46
|
|
|
(24
|
)
|
|
22
|
|
|||
Foreign currency forwards:
|
|
Foreign-denominated fixed maturity securities
|
|
24
|
|
|
(22
|
)
|
|
2
|
|
|||
Total
|
|
$
|
64
|
|
|
$
|
29
|
|
|
$
|
93
|
|
(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 June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate swaps
|
|
$
|
(48
|
)
|
|
$
|
1
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
4
|
|
Interest rate forwards
|
|
(9
|
)
|
|
(2
|
)
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|||||
Foreign currency swaps
|
|
198
|
|
|
(475
|
)
|
|
(1
|
)
|
|
—
|
|
|
6
|
|
|||||
Credit forwards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
141
|
|
|
$
|
(476
|
)
|
|
$
|
5
|
|
|
$
|
1
|
|
|
$
|
9
|
|
Three Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate swaps
|
|
$
|
72
|
|
|
$
|
6
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
6
|
|
Interest rate forwards
|
|
93
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
(1
|
)
|
|||||
Foreign currency swaps
|
|
(139
|
)
|
|
413
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||||
Credit forwards
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
26
|
|
|
$
|
420
|
|
|
$
|
4
|
|
|
$
|
1
|
|
|
$
|
4
|
|
Six Months Ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate swaps
|
|
$
|
(221
|
)
|
|
$
|
17
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
2
|
|
Interest rate forwards
|
|
(113
|
)
|
|
3
|
|
|
1
|
|
|
1
|
|
|
(1
|
)
|
|||||
Foreign currency swaps
|
|
123
|
|
|
(336
|
)
|
|
(1
|
)
|
|
1
|
|
|
7
|
|
|||||
Credit forwards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
(211
|
)
|
|
$
|
(316
|
)
|
|
$
|
9
|
|
|
$
|
2
|
|
|
$
|
8
|
|
Six Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate swaps
|
|
$
|
77
|
|
|
$
|
14
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
7
|
|
Interest rate forwards
|
|
137
|
|
|
(4
|
)
|
|
2
|
|
|
1
|
|
|
(1
|
)
|
|||||
Foreign currency swaps
|
|
41
|
|
|
621
|
|
|
(1
|
)
|
|
1
|
|
|
1
|
|
|||||
Credit forwards
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
255
|
|
|
$
|
632
|
|
|
$
|
8
|
|
|
$
|
2
|
|
|
$
|
7
|
|
Derivatives in Net Investment Hedging Relationships (1)
|
|
Amount of Gains (Losses) Deferred in AOCI
(Effective Portion) |
||
|
|
(In millions)
|
||
Three Months Ended June 30, 2018
|
|
|
||
Foreign currency forwards
|
|
$
|
43
|
|
Currency options
|
|
38
|
|
|
Total
|
|
$
|
81
|
|
Three Months Ended June 30, 2017
|
|
|
||
Foreign currency forwards
|
|
$
|
(31
|
)
|
Currency options
|
|
(2
|
)
|
|
Total
|
|
$
|
(33
|
)
|
Six Months Ended June 30, 2018
|
|
|
||
Foreign currency forwards
|
|
$
|
35
|
|
Currency options
|
|
(111
|
)
|
|
Total
|
|
$
|
(76
|
)
|
Six Months Ended June 30, 2017
|
|
|
||
Foreign currency forwards
|
|
$
|
(126
|
)
|
Currency options
|
|
(233
|
)
|
|
Total
|
|
$
|
(359
|
)
|
(1)
|
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.
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||
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)
|
|
$
|
6
|
|
|
$
|
383
|
|
|
2.1
|
|
|
$
|
7
|
|
|
$
|
375
|
|
|
2.6
|
|
Credit default swaps referencing indices
|
|
38
|
|
|
2,459
|
|
|
2.4
|
|
|
44
|
|
|
2,268
|
|
|
2.7
|
|
||||
Subtotal
|
|
44
|
|
|
2,842
|
|
|
2.4
|
|
|
51
|
|
|
2,643
|
|
|
2.7
|
|
||||
Baa
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single name credit default swaps (3)
|
|
4
|
|
|
507
|
|
|
1.9
|
|
|
7
|
|
|
605
|
|
|
1.8
|
|
||||
Credit default swaps referencing indices
|
|
102
|
|
|
7,747
|
|
|
5.0
|
|
|
183
|
|
|
7,662
|
|
|
5.0
|
|
||||
Subtotal
|
|
106
|
|
|
8,254
|
|
|
4.8
|
|
|
190
|
|
|
8,267
|
|
|
4.8
|
|
||||
Ba
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single name credit default swaps (3)
|
|
—
|
|
|
10
|
|
|
2.0
|
|
|
1
|
|
|
115
|
|
|
3.4
|
|
||||
Credit default swaps referencing indices
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Subtotal
|
|
—
|
|
|
10
|
|
|
2.0
|
|
|
1
|
|
|
115
|
|
|
3.4
|
|
||||
B
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single name credit default swaps (3)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
20
|
|
|
3.5
|
|
||||
Credit default swaps referencing indices
|
|
41
|
|
|
730
|
|
|
5.0
|
|
|
27
|
|
|
330
|
|
|
5.0
|
|
||||
Subtotal
|
|
41
|
|
|
730
|
|
|
5.0
|
|
|
29
|
|
|
350
|
|
|
4.9
|
|
||||
Total
|
|
$
|
191
|
|
|
$
|
11,836
|
|
|
4.2
|
|
|
$
|
271
|
|
|
$
|
11,375
|
|
|
4.3
|
|
(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.
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement
|
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||
|
|
(In millions)
|
||||||||||||||
Gross estimated fair value of derivatives:
|
|
|
|
|
|
|
|
|
||||||||
OTC-bilateral (1)
|
|
$
|
7,713
|
|
|
$
|
4,027
|
|
|
$
|
7,955
|
|
|
$
|
4,059
|
|
OTC-cleared (1) (6)
|
|
237
|
|
|
46
|
|
|
649
|
|
|
223
|
|
||||
Exchange-traded
|
|
4
|
|
|
15
|
|
|
22
|
|
|
8
|
|
||||
Total gross estimated fair value of derivatives (1)
|
|
7,954
|
|
|
4,088
|
|
|
8,626
|
|
|
4,290
|
|
||||
Amounts offset on the interim condensed consolidated balance sheets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Estimated fair value of derivatives presented on the interim condensed consolidated balance sheets (1) (6)
|
|
7,954
|
|
|
4,088
|
|
|
8,626
|
|
|
4,290
|
|
||||
Gross amounts not offset on the interim condensed consolidated balance sheets:
|
|
|
|
|
|
|
|
|
||||||||
Gross estimated fair value of derivatives: (2)
|
|
|
|
|
|
|
|
|
||||||||
OTC-bilateral
|
|
(2,606
|
)
|
|
(2,606
|
)
|
|
(2,528
|
)
|
|
(2,528
|
)
|
||||
OTC-cleared
|
|
(17
|
)
|
|
(17
|
)
|
|
(35
|
)
|
|
(35
|
)
|
||||
Exchange-traded
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||
Cash collateral: (3), (4)
|
|
|
|
|
|
|
|
|
||||||||
OTC-bilateral
|
|
(4,075
|
)
|
|
(90
|
)
|
|
(4,169
|
)
|
|
—
|
|
||||
OTC-cleared
|
|
(202
|
)
|
|
(10
|
)
|
|
(584
|
)
|
|
(179
|
)
|
||||
Exchange-traded
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(5
|
)
|
||||
Securities collateral: (5)
|
|
|
|
|
|
|
|
|
||||||||
OTC-bilateral
|
|
(908
|
)
|
|
(1,260
|
)
|
|
(1,004
|
)
|
|
(1,474
|
)
|
||||
OTC-cleared
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
(9
|
)
|
||||
Exchange-traded
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(2
|
)
|
||||
Net amount after application of master netting agreements and collateral
|
|
$
|
146
|
|
|
$
|
76
|
|
|
$
|
305
|
|
|
$
|
57
|
|
(1)
|
At
June 30, 2018
and
December 31, 2017
, derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of
$86 million
and
$75 million
, respectively, and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of
($47) million
and
($49) 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
June 30, 2018
and
December 31, 2017
, the Company received excess cash collateral of
$249 million
and
$253 million
, respectively, and provided excess cash collateral of
$253 million
and
$272 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
June 30, 2018
,
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
June 30, 2018
and
December 31, 2017
, the Company received excess securities collateral with an estimated fair value of
$77 million
and
$108 million
, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At
June 30, 2018
and
December 31, 2017
, the Company provided excess securities collateral with an estimated fair value of
$177 million
and
$305 million
, respectively, for its OTC-bilateral derivatives, and
$546 million
and
$522 million
, respectively, for its OTC-cleared derivatives, and
$82 million
and
$89 million
, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation.
|
(6)
|
Effective January 16, 2018, the LCH 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 LCH amendments.
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
|
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)
|
|
$
|
1,379
|
|
|
$
|
43
|
|
|
$
|
1,422
|
|
|
$
|
1,508
|
|
|
$
|
24
|
|
|
$
|
1,532
|
|
Estimated Fair Value of Collateral Provided:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed maturity securities
|
|
$
|
1,362
|
|
|
$
|
36
|
|
|
$
|
1,398
|
|
|
$
|
1,675
|
|
|
$
|
26
|
|
|
$
|
1,701
|
|
Cash
|
|
$
|
90
|
|
|
$
|
—
|
|
|
$
|
90
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Estimated Fair Value of Incremental Collateral Provided Upon:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One-notch downgrade in the Company’s credit or financial strength rating, as applicable
|
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
15
|
|
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
|
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
20
|
|
(1)
|
After taking into consideration the existence of netting agreements.
|
(1)
|
In connection with the adoption of new guidance related to the recognition and measurement of financial instruments (see Note 1), effective January 1, 2018, the Company is no longer required to bifurcate and account separately for derivatives embedded in equity securities. Beginning January 1, 2018, the entire change in fair value of equity securities is recognized as a component of net investment gains and losses.
|
|
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(In millions)
|
||||||||||||||
Net derivative gains (losses) (1)
|
|
$
|
151
|
|
|
$
|
91
|
|
|
$
|
188
|
|
|
$
|
248
|
|
(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
($25) million
and
($5) million
for the
three months
and
six months ended
June 30, 2018
, respectively, and
($89) million
and
($141) million
for the
three months
and
six months ended
June 30, 2017
, respectively.
|
|
|
June 30, 2018
|
||||||||||||||
|
|
Fair Value Hierarchy
|
|
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated Fair Value |
||||||||
|
|
(In millions)
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. corporate
|
|
$
|
—
|
|
|
$
|
79,872
|
|
|
$
|
4,154
|
|
|
$
|
84,026
|
|
Foreign government
|
|
—
|
|
|
61,526
|
|
|
156
|
|
|
61,682
|
|
||||
Foreign corporate
|
|
—
|
|
|
47,810
|
|
|
6,467
|
|
|
54,277
|
|
||||
U.S. government and agency
|
|
24,231
|
|
|
21,156
|
|
|
—
|
|
|
45,387
|
|
||||
RMBS
|
|
—
|
|
|
24,774
|
|
|
3,071
|
|
|
27,845
|
|
||||
State and political subdivision
|
|
—
|
|
|
12,018
|
|
|
8
|
|
|
12,026
|
|
||||
ABS
|
|
—
|
|
|
11,649
|
|
|
1,217
|
|
|
12,866
|
|
||||
CMBS
|
|
—
|
|
|
7,833
|
|
|
389
|
|
|
8,222
|
|
||||
Total fixed maturity securities
|
|
24,231
|
|
|
266,638
|
|
|
15,462
|
|
|
306,331
|
|
||||
Equity securities
|
|
936
|
|
|
139
|
|
|
408
|
|
|
1,483
|
|
||||
Unit-linked and FVO Securities (1)
|
|
11,526
|
|
|
2,053
|
|
|
269
|
|
|
13,848
|
|
||||
Other limited partnership interests
|
|
—
|
|
|
—
|
|
|
168
|
|
|
168
|
|
||||
Short-term investments (2)
|
|
936
|
|
|
1,680
|
|
|
559
|
|
|
3,175
|
|
||||
Residential mortgage loans — FVO
|
|
—
|
|
|
—
|
|
|
405
|
|
|
405
|
|
||||
Other investments
|
|
85
|
|
|
100
|
|
|
—
|
|
|
185
|
|
||||
Derivative assets: (3)
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
1
|
|
|
4,548
|
|
|
26
|
|
|
4,575
|
|
||||
Foreign currency exchange rate
|
|
—
|
|
|
2,296
|
|
|
77
|
|
|
2,373
|
|
||||
Credit
|
|
—
|
|
|
179
|
|
|
34
|
|
|
213
|
|
||||
Equity market
|
|
3
|
|
|
636
|
|
|
68
|
|
|
707
|
|
||||
Total derivative assets
|
|
4
|
|
|
7,659
|
|
|
205
|
|
|
7,868
|
|
||||
Embedded derivatives within asset host contracts (4)
|
|
—
|
|
|
—
|
|
|
153
|
|
|
153
|
|
||||
Separate account assets (5)
|
|
84,346
|
|
|
105,856
|
|
|
1,145
|
|
|
191,347
|
|
||||
Total assets
|
|
$
|
122,064
|
|
|
$
|
384,125
|
|
|
$
|
18,774
|
|
|
$
|
524,963
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities: (3)
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
$
|
5
|
|
|
$
|
295
|
|
|
$
|
221
|
|
|
$
|
521
|
|
Foreign currency exchange rate
|
|
6
|
|
|
2,624
|
|
|
51
|
|
|
2,681
|
|
||||
Credit
|
|
—
|
|
|
44
|
|
|
—
|
|
|
44
|
|
||||
Equity market
|
|
4
|
|
|
685
|
|
|
200
|
|
|
889
|
|
||||
Total derivative liabilities
|
|
15
|
|
|
3,648
|
|
|
472
|
|
|
4,135
|
|
||||
Embedded derivatives within liability host contracts (4)
|
|
—
|
|
|
—
|
|
|
393
|
|
|
393
|
|
||||
Separate account liabilities (5)
|
|
4
|
|
|
7
|
|
|
7
|
|
|
18
|
|
||||
Total liabilities
|
|
$
|
19
|
|
|
$
|
3,655
|
|
|
$
|
872
|
|
|
$
|
4,546
|
|
|
|
December 31, 2017
|
||||||||||||||
|
|
Fair Value Hierarchy
|
|
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated Fair Value |
||||||||
|
|
(In millions)
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. corporate
|
|
$
|
—
|
|
|
$
|
78,171
|
|
|
$
|
4,490
|
|
|
$
|
82,661
|
|
Foreign government
|
|
—
|
|
|
61,325
|
|
|
209
|
|
|
61,534
|
|
||||
Foreign corporate
|
|
—
|
|
|
48,840
|
|
|
6,729
|
|
|
55,569
|
|
||||
U.S. government and agency
|
|
26,052
|
|
|
21,342
|
|
|
—
|
|
|
47,394
|
|
||||
RMBS
|
|
—
|
|
|
25,339
|
|
|
3,461
|
|
|
28,800
|
|
||||
State and political subdivision
|
|
—
|
|
|
12,455
|
|
|
—
|
|
|
12,455
|
|
||||
ABS
|
|
—
|
|
|
11,204
|
|
|
1,087
|
|
|
12,291
|
|
||||
CMBS
|
|
—
|
|
|
7,934
|
|
|
293
|
|
|
8,227
|
|
||||
Total fixed maturity securities
|
|
26,052
|
|
|
266,610
|
|
|
16,269
|
|
|
308,931
|
|
||||
Equity securities
|
|
1,104
|
|
|
981
|
|
|
428
|
|
|
2,513
|
|
||||
Unit-linked and FVO Securities (1)
|
|
14,028
|
|
|
2,355
|
|
|
362
|
|
|
16,745
|
|
||||
Short-term investments (2)
|
|
3,001
|
|
|
1,252
|
|
|
33
|
|
|
4,286
|
|
||||
Residential mortgage loans — FVO
|
|
—
|
|
|
—
|
|
|
520
|
|
|
520
|
|
||||
Other investments
|
|
81
|
|
|
84
|
|
|
—
|
|
|
165
|
|
||||
Derivative assets: (3)
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
2
|
|
|
5,553
|
|
|
8
|
|
|
5,563
|
|
||||
Foreign currency exchange rate
|
|
2
|
|
|
1,954
|
|
|
113
|
|
|
2,069
|
|
||||
Credit
|
|
—
|
|
|
240
|
|
|
38
|
|
|
278
|
|
||||
Equity market
|
|
18
|
|
|
548
|
|
|
75
|
|
|
641
|
|
||||
Total derivative assets
|
|
22
|
|
|
8,295
|
|
|
234
|
|
|
8,551
|
|
||||
Embedded derivatives within asset host contracts (4)
|
|
—
|
|
|
—
|
|
|
144
|
|
|
144
|
|
||||
Separate account assets (5)
|
|
89,916
|
|
|
114,124
|
|
|
961
|
|
|
205,001
|
|
||||
Total assets
|
|
$
|
134,204
|
|
|
$
|
393,701
|
|
|
$
|
18,951
|
|
|
$
|
546,856
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities: (3)
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
$
|
4
|
|
|
$
|
638
|
|
|
$
|
130
|
|
|
$
|
772
|
|
Foreign currency exchange rate
|
|
—
|
|
|
2,553
|
|
|
37
|
|
|
2,590
|
|
||||
Credit
|
|
—
|
|
|
43
|
|
|
—
|
|
|
43
|
|
||||
Equity market
|
|
4
|
|
|
731
|
|
|
199
|
|
|
934
|
|
||||
Total derivative liabilities
|
|
8
|
|
|
3,965
|
|
|
366
|
|
|
4,339
|
|
||||
Embedded derivatives within liability host contracts (4)
|
|
—
|
|
|
—
|
|
|
418
|
|
|
418
|
|
||||
Separate account liabilities (5)
|
|
—
|
|
|
7
|
|
|
2
|
|
|
9
|
|
||||
Total liabilities
|
|
$
|
8
|
|
|
$
|
3,972
|
|
|
$
|
786
|
|
|
$
|
4,766
|
|
(1)
|
Unit-linked and FVO Securities were comprised of over
85%
Unit-linked investments at both
June 30, 2018
and
December 31, 2017
.
|
(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 interim condensed consolidated balance sheets and derivative liabilities are presented within other liabilities on the interim condensed consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the interim condensed 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 interim condensed consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the interim condensed consolidated balance sheets. At
June 30, 2018
and
December 31, 2017
, debt and equity securities also included embedded derivatives of
$0
and
($132) 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,” “— Other Limited Partnership Interests” 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)
|
|
•
|
repurchase rates
|
•
|
cross currency basis curves (2)
|
•
|
credit spreads
|
•
|
correlation between model inputs (1)
|
|
|
|
•
|
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).
|
|
|
|
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
|
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)
|
|
87
|
-
|
137
|
|
106
|
|
83
|
-
|
142
|
|
110
|
|
Increase
|
|
•
|
Market pricing
|
|
•
|
Quoted prices (4)
|
|
37
|
-
|
770
|
|
126
|
|
10
|
-
|
443
|
|
121
|
|
Increase
|
|
•
|
Consensus pricing
|
|
•
|
Offered quotes (4)
|
|
96
|
-
|
104
|
|
101
|
|
97
|
-
|
104
|
|
101
|
|
Increase
|
RMBS
|
•
|
Market pricing
|
|
•
|
Quoted prices (4)
|
|
—
|
-
|
109
|
|
95
|
|
—
|
-
|
126
|
|
94
|
|
Increase (5)
|
ABS
|
•
|
Market pricing
|
|
•
|
Quoted prices (4)
|
|
3
|
-
|
117
|
|
100
|
|
5
|
-
|
117
|
|
100
|
|
Increase (5)
|
|
•
|
Consensus pricing
|
|
•
|
Offered quotes (4)
|
|
100
|
-
|
103
|
|
101
|
|
100
|
-
|
103
|
|
100
|
|
Increase (5)
|
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
|
•
|
Present value techniques
|
|
•
|
Swap yield (6)
|
|
287
|
-
|
311
|
|
|
|
200
|
-
|
300
|
|
|
|
Increase (7)
|
|
|
|
|
•
|
Repurchase rates (8)
|
|
1
|
-
|
52
|
|
|
|
(5)
|
-
|
5
|
|
|
|
Decrease (7)
|
Foreign currency exchange rate
|
•
|
Present value techniques
|
|
•
|
Swap yield (6)
|
|
(27)
|
-
|
309
|
|
|
|
(14)
|
-
|
309
|
|
|
|
Increase (7)
|
Credit
|
•
|
Present value techniques
|
|
•
|
Credit spreads (9)
|
|
97
|
-
|
100
|
|
|
|
—
|
-
|
—
|
|
|
|
Decrease (7)
|
|
•
|
Consensus pricing
|
|
•
|
Offered quotes (10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity market
|
•
|
Present value techniques or option pricing models
|
|
•
|
Volatility (11)
|
|
17%
|
-
|
30%
|
|
|
|
11%
|
-
|
31%
|
|
|
|
Increase (7)
|
|
|
|
|
•
|
Correlation (12)
|
|
10%
|
-
|
30%
|
|
|
|
10%
|
-
|
30%
|
|
|
|
|
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%
|
|
|
|
0.03%
|
-
|
0.75%
|
|
|
|
Decrease (13)
|
|
|
|
|
|
Ages 61 - 115
|
|
0%
|
-
|
100%
|
|
|
|
0.15%
|
-
|
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
|
|
8.47%
|
-
|
33%
|
|
|
|
8.25%
|
-
|
33%
|
|
|
|
Increase (17)
|
|
|
|
|
•
|
Nonperformance risk spread
|
|
0.03%
|
-
|
1.46%
|
|
|
|
0.02%
|
-
|
1.32%
|
|
|
|
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
June 30, 2018
and
December 31, 2017
, 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 |
|
Structured
Securities
|
|
State and
Political Subdivision |
|
Equity
Securities
|
|
Unit-linked and FVO
Securities
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Three Months Ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
$
|
10,810
|
|
|
$
|
179
|
|
|
$
|
4,582
|
|
|
$
|
—
|
|
|
$
|
422
|
|
|
$
|
286
|
|
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)
|
|
1
|
|
|
1
|
|
|
21
|
|
|
—
|
|
|
(5
|
)
|
|
(11
|
)
|
||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
(369
|
)
|
|
(9
|
)
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Purchases (4)
|
|
806
|
|
|
—
|
|
|
998
|
|
|
8
|
|
|
7
|
|
|
84
|
|
||||||
Sales (4)
|
|
(512
|
)
|
|
(14
|
)
|
|
(275
|
)
|
|
—
|
|
|
(16
|
)
|
|
(81
|
)
|
||||||
Issuances (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Transfers into Level 3 (5)
|
|
1
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Transfers out of Level 3 (5)
|
|
(116
|
)
|
|
(1
|
)
|
|
(639
|
)
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
||||||
Balance, end of period
|
|
$
|
10,621
|
|
|
$
|
156
|
|
|
$
|
4,677
|
|
|
$
|
8
|
|
|
$
|
408
|
|
|
$
|
269
|
|
Three Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
$
|
10,968
|
|
|
$
|
289
|
|
|
$
|
5,705
|
|
|
$
|
—
|
|
|
$
|
480
|
|
|
$
|
335
|
|
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)
|
|
9
|
|
|
1
|
|
|
35
|
|
|
—
|
|
|
(4
|
)
|
|
9
|
|
||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
216
|
|
|
(1
|
)
|
|
33
|
|
|
—
|
|
|
13
|
|
|
—
|
|
||||||
Purchases (4)
|
|
1,523
|
|
|
5
|
|
|
543
|
|
|
—
|
|
|
5
|
|
|
150
|
|
||||||
Sales (4)
|
|
(1,086
|
)
|
|
(5
|
)
|
|
(589
|
)
|
|
—
|
|
|
(26
|
)
|
|
(109
|
)
|
||||||
Issuances (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Transfers into Level 3 (5)
|
|
227
|
|
|
—
|
|
|
65
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||||
Transfers out of Level 3 (5)
|
|
(225
|
)
|
|
(81
|
)
|
|
(853
|
)
|
|
—
|
|
|
—
|
|
|
(76
|
)
|
||||||
Balance, end of period
|
|
$
|
11,632
|
|
|
$
|
208
|
|
|
$
|
4,939
|
|
|
$
|
—
|
|
|
$
|
468
|
|
|
$
|
312
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2018 (6)
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(10
|
)
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2017 (6)
|
|
$
|
7
|
|
|
$
|
1
|
|
|
$
|
33
|
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
9
|
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||
|
|
Other Limited Partnership Interests
|
|
Short-term
Investments
|
|
Residential
Mortgage
Loans — FVO |
|
Net
Derivatives (7)
|
|
Net Embedded
Derivatives (8)
|
|
Separate
Accounts (9) |
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Three Months Ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
$
|
194
|
|
|
$
|
615
|
|
|
$
|
438
|
|
|
$
|
(182
|
)
|
|
$
|
(328
|
)
|
|
$
|
1,224
|
|
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(106
|
)
|
|
152
|
|
|
(1
|
)
|
||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
2
|
|
|
(3
|
)
|
|
—
|
|
|
(19
|
)
|
|
13
|
|
|
—
|
|
||||||
Purchases (4)
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
270
|
|
||||||
Sales (4)
|
|
(28
|
)
|
|
(33
|
)
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
(323
|
)
|
||||||
Issuances (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||||
Settlements (4)
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
36
|
|
|
(77
|
)
|
|
2
|
|
||||||
Transfers into Level 3 (5)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
71
|
|
||||||
Transfers out of Level 3 (5)
|
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(103
|
)
|
||||||
Balance, end of period
|
|
$
|
168
|
|
|
$
|
559
|
|
|
$
|
405
|
|
|
$
|
(267
|
)
|
|
$
|
(240
|
)
|
|
$
|
1,138
|
|
Three Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
$
|
—
|
|
|
$
|
779
|
|
|
$
|
639
|
|
|
$
|
(397
|
)
|
|
$
|
(695
|
)
|
|
$
|
1,184
|
|
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)
|
|
—
|
|
|
1
|
|
|
6
|
|
|
4
|
|
|
114
|
|
|
2
|
|
||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
96
|
|
|
13
|
|
|
—
|
|
||||||
Purchases (4)
|
|
—
|
|
|
99
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
131
|
|
||||||
Sales (4)
|
|
—
|
|
|
(1
|
)
|
|
(47
|
)
|
|
—
|
|
|
—
|
|
|
(81
|
)
|
||||||
Issuances (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements (4)
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
9
|
|
|
(78
|
)
|
|
(16
|
)
|
||||||
Transfers into Level 3 (5)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
||||||
Transfers out of Level 3 (5)
|
|
—
|
|
|
(55
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(277
|
)
|
||||||
Balance, end of period
|
|
$
|
—
|
|
|
$
|
822
|
|
|
$
|
615
|
|
|
$
|
(288
|
)
|
|
$
|
(646
|
)
|
|
$
|
959
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2018 (6)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
(86
|
)
|
|
$
|
153
|
|
|
$
|
—
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2017 (6)
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
6
|
|
|
$
|
(12
|
)
|
|
$
|
112
|
|
|
$
|
—
|
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||
|
|
Fixed Maturity Securities
|
|
|
|
|
||||||||||||||||||
|
|
Corporate (1)
|
|
Foreign
Government |
|
Structured
Securities
|
|
State and
Political Subdivision |
|
Equity
Securities
|
|
Unit-linked and FVO
Securities
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Six Months Ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
$
|
11,219
|
|
|
$
|
209
|
|
|
$
|
4,841
|
|
|
$
|
—
|
|
|
$
|
428
|
|
|
$
|
362
|
|
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)
|
|
9
|
|
|
2
|
|
|
43
|
|
|
—
|
|
|
(10
|
)
|
|
(6
|
)
|
||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
(433
|
)
|
|
(12
|
)
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Purchases (4)
|
|
1,321
|
|
|
1
|
|
|
1,022
|
|
|
8
|
|
|
5
|
|
|
104
|
|
||||||
Sales (4)
|
|
(1,221
|
)
|
|
(16
|
)
|
|
(539
|
)
|
|
—
|
|
|
(15
|
)
|
|
(141
|
)
|
||||||
Issuances (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Transfers into Level 3 (5)
|
|
140
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Transfers out of Level 3 (5)
|
|
(414
|
)
|
|
(28
|
)
|
|
(753
|
)
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
||||||
Balance, end of period
|
|
$
|
10,621
|
|
|
$
|
156
|
|
|
$
|
4,677
|
|
|
$
|
8
|
|
|
$
|
408
|
|
|
$
|
269
|
|
Six Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
$
|
11,537
|
|
|
$
|
289
|
|
|
$
|
5,215
|
|
|
$
|
10
|
|
|
$
|
468
|
|
|
$
|
287
|
|
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)
|
|
4
|
|
|
3
|
|
|
66
|
|
|
—
|
|
|
(14
|
)
|
|
16
|
|
||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
458
|
|
|
5
|
|
|
80
|
|
|
—
|
|
|
35
|
|
|
—
|
|
||||||
Purchases (4)
|
|
2,320
|
|
|
12
|
|
|
735
|
|
|
—
|
|
|
6
|
|
|
207
|
|
||||||
Sales (4)
|
|
(1,357
|
)
|
|
(87
|
)
|
|
(918
|
)
|
|
—
|
|
|
(27
|
)
|
|
(109
|
)
|
||||||
Issuances (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Transfers into Level 3 (5)
|
|
135
|
|
|
4
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|
8
|
|
||||||
Transfers out of Level 3 (5)
|
|
(1,465
|
)
|
|
(18
|
)
|
|
(317
|
)
|
|
(10
|
)
|
|
—
|
|
|
(97
|
)
|
||||||
Balance, end of period
|
|
$
|
11,632
|
|
|
$
|
208
|
|
|
$
|
4,939
|
|
|
$
|
—
|
|
|
$
|
468
|
|
|
$
|
312
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2018 (6)
|
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
39
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(7
|
)
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2017 (6)
|
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
57
|
|
|
$
|
—
|
|
|
$
|
(10
|
)
|
|
$
|
14
|
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||
|
|
Other Limited Partnership Interests
|
|
Short-term
Investments
|
|
Residential
Mortgage
Loans — FVO |
|
Net
Derivatives (7)
|
|
Net Embedded
Derivatives (8)
|
|
Separate
Accounts (9) |
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Six Months Ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
$
|
—
|
|
|
$
|
33
|
|
|
$
|
520
|
|
|
$
|
(132
|
)
|
|
$
|
(274
|
)
|
|
$
|
959
|
|
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)
|
|
(5
|
)
|
|
—
|
|
|
3
|
|
|
(94
|
)
|
|
188
|
|
|
1
|
|
||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
4
|
|
|
(3
|
)
|
|
—
|
|
|
(123
|
)
|
|
(3
|
)
|
|
—
|
|
||||||
Purchases (4)
|
|
—
|
|
|
560
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
307
|
|
||||||
Sales (4)
|
|
(47
|
)
|
|
(11
|
)
|
|
(81
|
)
|
|
—
|
|
|
—
|
|
|
(147
|
)
|
||||||
Issuances (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||||
Settlements (4)
|
|
—
|
|
|
—
|
|
|
(37
|
)
|
|
78
|
|
|
(151
|
)
|
|
1
|
|
||||||
Transfers into Level 3 (5)
|
|
216
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
99
|
|
||||||
Transfers out of Level 3 (5)
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(79
|
)
|
||||||
Balance, end of period
|
|
$
|
168
|
|
|
$
|
559
|
|
|
$
|
405
|
|
|
$
|
(267
|
)
|
|
$
|
(240
|
)
|
|
$
|
1,138
|
|
Six Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
$
|
—
|
|
|
$
|
46
|
|
|
$
|
566
|
|
|
$
|
(562
|
)
|
|
$
|
(729
|
)
|
|
$
|
1,141
|
|
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)
|
|
—
|
|
|
1
|
|
|
3
|
|
|
30
|
|
|
283
|
|
|
(17
|
)
|
||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
135
|
|
|
(46
|
)
|
|
—
|
|
||||||
Purchases (4)
|
|
—
|
|
|
822
|
|
|
174
|
|
|
—
|
|
|
—
|
|
|
171
|
|
||||||
Sales (4)
|
|
—
|
|
|
(17
|
)
|
|
(79
|
)
|
|
—
|
|
|
—
|
|
|
(54
|
)
|
||||||
Issuances (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
1
|
|
||||||
Settlements (4)
|
|
—
|
|
|
—
|
|
|
(49
|
)
|
|
116
|
|
|
(154
|
)
|
|
(50
|
)
|
||||||
Transfers into Level 3 (5)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
||||||
Transfers out of Level 3 (5)
|
|
—
|
|
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(245
|
)
|
||||||
Balance, end of period
|
|
$
|
—
|
|
|
$
|
822
|
|
|
$
|
615
|
|
|
$
|
(288
|
)
|
|
$
|
(646
|
)
|
|
$
|
959
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2018 (6)
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
(8
|
)
|
|
$
|
(18
|
)
|
|
$
|
184
|
|
|
$
|
—
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2017 (6)
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
9
|
|
|
$
|
279
|
|
|
$
|
—
|
|
(1)
|
Comprised of U.S. and foreign corporate securities.
|
(2)
|
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 derivative gains (losses).
|
(3)
|
Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.
|
(4)
|
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.
|
(5)
|
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.
|
(6)
|
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).
|
(7)
|
Freestanding derivative assets and liabilities are presented net for purposes of the rollforward.
|
(8)
|
Embedded derivative assets and liabilities are presented net for purposes of the rollforward.
|
(9)
|
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.
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
|
(In millions)
|
||||||
Unpaid principal balance
|
|
$
|
496
|
|
|
$
|
650
|
|
Difference between estimated fair value and unpaid principal balance
|
|
(91
|
)
|
|
(130
|
)
|
||
Carrying value at estimated fair value
|
|
$
|
405
|
|
|
$
|
520
|
|
Loans in nonaccrual status
|
|
$
|
129
|
|
|
$
|
198
|
|
Loans more than 90 days past due
|
|
$
|
64
|
|
|
$
|
94
|
|
Loans in nonaccrual status or more than 90 days past due, or both — difference between aggregate estimated fair value and unpaid principal balance
|
|
$
|
(66
|
)
|
|
$
|
(102
|
)
|
|
|
June 30, 2018
|
||||||||||||||||||
|
|
|
|
Fair Value Hierarchy
|
|
|
||||||||||||||
|
|
Carrying
Value |
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated Fair Value |
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage loans
|
|
$
|
70,447
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
71,330
|
|
|
$
|
71,330
|
|
Policy loans
|
|
$
|
9,702
|
|
|
$
|
—
|
|
|
$
|
341
|
|
|
$
|
10,977
|
|
|
$
|
11,318
|
|
Other invested assets
|
|
$
|
1,204
|
|
|
$
|
—
|
|
|
$
|
793
|
|
|
$
|
411
|
|
|
$
|
1,204
|
|
Premiums, reinsurance and other receivables
|
|
$
|
4,121
|
|
|
$
|
—
|
|
|
$
|
1,230
|
|
|
$
|
3,030
|
|
|
$
|
4,260
|
|
Other assets
|
|
$
|
327
|
|
|
$
|
—
|
|
|
$
|
142
|
|
|
$
|
185
|
|
|
$
|
327
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder account balances
|
|
$
|
114,519
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
115,292
|
|
|
$
|
115,292
|
|
Long-term debt
|
|
$
|
14,526
|
|
|
$
|
—
|
|
|
$
|
15,392
|
|
|
$
|
—
|
|
|
$
|
15,392
|
|
Collateral financing arrangement
|
|
$
|
1,085
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
882
|
|
|
$
|
882
|
|
Junior subordinated debt securities
|
|
$
|
3,146
|
|
|
$
|
—
|
|
|
$
|
3,995
|
|
|
$
|
—
|
|
|
$
|
3,995
|
|
Other liabilities
|
|
$
|
3,870
|
|
|
$
|
—
|
|
|
$
|
2,205
|
|
|
$
|
2,223
|
|
|
$
|
4,428
|
|
Separate account liabilities
|
|
$
|
112,708
|
|
|
$
|
—
|
|
|
$
|
112,708
|
|
|
$
|
—
|
|
|
$
|
112,708
|
|
|
|
December 31, 2017
|
||||||||||||||||||
|
|
|
|
Fair Value Hierarchy
|
|
|
||||||||||||||
|
|
Carrying
Value |
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated Fair Value |
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage loans
|
|
$
|
68,211
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
69,797
|
|
|
$
|
69,797
|
|
Policy loans
|
|
$
|
9,669
|
|
|
$
|
—
|
|
|
$
|
336
|
|
|
$
|
11,176
|
|
|
$
|
11,512
|
|
Other limited partnership interests
|
|
$
|
219
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
216
|
|
|
$
|
216
|
|
Other invested assets
|
|
$
|
443
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
443
|
|
|
$
|
443
|
|
Premiums, reinsurance and other receivables
|
|
$
|
4,155
|
|
|
$
|
—
|
|
|
$
|
1,283
|
|
|
$
|
3,056
|
|
|
$
|
4,339
|
|
Other assets
|
|
$
|
285
|
|
|
$
|
—
|
|
|
$
|
189
|
|
|
$
|
139
|
|
|
$
|
328
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder account balances
|
|
$
|
114,355
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
116,534
|
|
|
$
|
116,534
|
|
Long-term debt
|
|
$
|
15,675
|
|
|
$
|
—
|
|
|
$
|
17,773
|
|
|
$
|
—
|
|
|
$
|
17,773
|
|
Collateral financing arrangement
|
|
$
|
1,121
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
894
|
|
|
$
|
894
|
|
Junior subordinated debt securities
|
|
$
|
3,144
|
|
|
$
|
—
|
|
|
$
|
4,319
|
|
|
$
|
—
|
|
|
$
|
4,319
|
|
Other liabilities
|
|
$
|
3,208
|
|
|
$
|
—
|
|
|
$
|
1,496
|
|
|
$
|
2,345
|
|
|
$
|
3,841
|
|
Separate account liabilities
|
|
$
|
124,011
|
|
|
$
|
—
|
|
|
$
|
124,011
|
|
|
$
|
—
|
|
|
$
|
124,011
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||
Series
|
|
Shares
Authorized |
|
Shares
Issued |
|
Shares
Outstanding |
|
Shares
Authorized
|
|
Shares
Issued
|
|
Shares
Outstanding
|
||||||
Floating Rate Non-Cumulative Preferred Stock, Series A
|
|
27,600,000
|
|
|
24,000,000
|
|
|
24,000,000
|
|
|
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
|
|
|
1,500,000
|
|
|
1,500,000
|
|
|
1,500,000
|
|
5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D
|
|
500,000
|
|
|
500,000
|
|
|
500,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
5.625% Non-Cumulative Preferred Stock, Series E
|
|
32,200
|
|
|
32,200
|
|
|
32,200
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Series A Junior Participating Preferred Stock
|
|
10,000,000
|
|
|
—
|
|
|
—
|
|
|
10,000,000
|
|
|
—
|
|
|
—
|
|
Not designated
|
|
160,367,800
|
|
|
—
|
|
|
—
|
|
|
160,900,000
|
|
|
—
|
|
|
—
|
|
Total
|
|
200,000,000
|
|
|
26,032,200
|
|
|
26,032,200
|
|
|
200,000,000
|
|
|
25,500,000
|
|
|
25,500,000
|
|
Company
|
|
Paid (1)
|
|
Permitted Without
Approval (2) |
||||||
|
|
(In millions)
|
||||||||
Metropolitan Life Insurance Company
|
|
$
|
1,705
|
|
(3
|
)
|
|
$
|
3,075
|
|
American Life Insurance Company
|
|
$
|
1,500
|
|
(4
|
)
|
|
$
|
—
|
|
Metropolitan Property and Casualty Insurance Company
|
|
$
|
—
|
|
|
|
|
$
|
125
|
|
Metropolitan Tower Life Insurance Company (5)
|
|
$
|
—
|
|
|
|
|
$
|
73
|
|
General American Life Insurance Company (5)
|
|
$
|
—
|
|
|
|
|
N/A
|
|
(1)
|
Reflects all amounts paid, including those requiring regulatory approval.
|
(2)
|
Reflects dividend amounts that may be paid during 2018 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 2018, some or all of such dividends may require regulatory approval.
|
(3)
|
Represents an ordinary dividend of
$1.0 billion
and an extraordinary dividend of
$705 million
that was paid with regulatory approval. The extraordinary dividend was paid in cash with proceeds from the sale to an affiliate of certain property, equipment, leasehold improvements and computer software that were non-admitted by Metropolitan Life Insurance Company for statutory accounting purposes. The affiliate received a capital contribution in cash from MetLife, Inc. to fund the purchase.
|
(4)
|
Represents an extraordinary dividend.
|
(5)
|
In April 2018, Metropolitan Tower Life Insurance Company (“MTL”) merged with General American Life Insurance Company (“GALIC”). The surviving entity of the merger was MTL, which re-domesticated from Delaware to Nebraska immediately prior to the merger. Effective as of the date of re-domestication, MTL is subject to the dividend restrictions under Nebraska law.
|
|
|
Three Months
Ended June 30, 2018 |
||||||||||||||||||
|
|
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
|
|
$
|
10,864
|
|
|
$
|
683
|
|
|
$
|
(3,707
|
)
|
|
$
|
(2,206
|
)
|
|
$
|
5,634
|
|
OCI before reclassifications
|
|
(3,096
|
)
|
|
141
|
|
|
(969
|
)
|
|
3
|
|
|
(3,921
|
)
|
|||||
Deferred income tax benefit (expense)
|
|
706
|
|
|
41
|
|
|
6
|
|
|
(1
|
)
|
|
752
|
|
|||||
AOCI before reclassifications, net of income tax
|
|
8,474
|
|
|
865
|
|
|
(4,670
|
)
|
|
(2,204
|
)
|
|
2,465
|
|
|||||
Amounts reclassified from AOCI
|
|
83
|
|
|
470
|
|
|
—
|
|
|
31
|
|
|
584
|
|
|||||
Deferred income tax benefit (expense)
|
|
(19
|
)
|
|
(170
|
)
|
|
—
|
|
|
(6
|
)
|
|
(195
|
)
|
|||||
Amounts reclassified from AOCI, net of income tax
|
|
64
|
|
|
300
|
|
|
—
|
|
|
25
|
|
|
389
|
|
|||||
Balance, end of period
|
|
$
|
8,538
|
|
|
$
|
1,165
|
|
|
$
|
(4,670
|
)
|
|
$
|
(2,179
|
)
|
|
$
|
2,854
|
|
|
||||||||||||||||||||
|
|
Three Months
Ended June 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
|
|
$
|
11,336
|
|
|
$
|
1,853
|
|
|
$
|
(4,842
|
)
|
|
$
|
(1,951
|
)
|
|
$
|
6,396
|
|
OCI before reclassifications
|
|
3,290
|
|
|
(7
|
)
|
|
169
|
|
|
1
|
|
|
3,453
|
|
|||||
Deferred income tax benefit (expense)
|
|
(1,132
|
)
|
|
3
|
|
|
(6
|
)
|
|
3
|
|
|
(1,132
|
)
|
|||||
AOCI before reclassifications, net of income tax
|
|
13,494
|
|
|
1,849
|
|
|
(4,679
|
)
|
|
(1,947
|
)
|
|
8,717
|
|
|||||
Amounts reclassified from AOCI
|
|
(47
|
)
|
|
(429
|
)
|
|
—
|
|
|
41
|
|
|
(435
|
)
|
|||||
Deferred income tax benefit (expense)
|
|
22
|
|
|
149
|
|
|
—
|
|
|
(17
|
)
|
|
154
|
|
|||||
Amounts reclassified from AOCI, net of income tax
|
|
(25
|
)
|
|
(280
|
)
|
|
—
|
|
|
24
|
|
|
(281
|
)
|
|||||
Balance, end of period
|
|
$
|
13,469
|
|
|
$
|
1,569
|
|
|
$
|
(4,679
|
)
|
|
$
|
(1,923
|
)
|
|
$
|
8,436
|
|
|
|
Six Months
Ended June 30, 2018 |
||||||||||||||||||
|
|
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
|
|
$
|
12,757
|
|
|
$
|
905
|
|
|
$
|
(4,390
|
)
|
|
$
|
(1,845
|
)
|
|
$
|
7,427
|
|
OCI before reclassifications
|
|
(6,907
|
)
|
|
(211
|
)
|
|
(417
|
)
|
|
(1
|
)
|
|
(7,536
|
)
|
|||||
Deferred income tax benefit (expense)
|
|
1,541
|
|
|
99
|
|
|
9
|
|
|
—
|
|
|
1,649
|
|
|||||
AOCI before reclassifications, net of income tax
|
|
7,391
|
|
|
793
|
|
|
(4,798
|
)
|
|
(1,846
|
)
|
|
1,540
|
|
|||||
Amounts reclassified from AOCI
|
|
128
|
|
|
305
|
|
|
—
|
|
|
62
|
|
|
495
|
|
|||||
Deferred income tax benefit (expense)
|
|
(29
|
)
|
|
(143
|
)
|
|
—
|
|
|
(13
|
)
|
|
(185
|
)
|
|||||
Amounts reclassified from AOCI, net of income tax
|
|
99
|
|
|
162
|
|
|
—
|
|
|
49
|
|
|
310
|
|
|||||
Cumulative effects of changes in accounting principles
|
|
(425
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(425
|
)
|
|||||
Deferred income tax benefit (expense), cumulative effects of changes in accounting principles
|
|
1,473
|
|
|
210
|
|
|
36
|
|
|
(382
|
)
|
|
1,337
|
|
|||||
Cumulative effects of changes in accounting principles, net of income tax (2)
|
|
1,048
|
|
|
210
|
|
|
36
|
|
|
(382
|
)
|
|
912
|
|
|||||
Sale of subsidiary (3)
|
|
—
|
|
|
—
|
|
|
92
|
|
|
—
|
|
|
92
|
|
|||||
Balance, end of period
|
|
$
|
8,538
|
|
|
$
|
1,165
|
|
|
$
|
(4,670
|
)
|
|
$
|
(2,179
|
)
|
|
$
|
2,854
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Six Months
Ended June 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
|
|
$
|
10,785
|
|
|
$
|
1,865
|
|
|
$
|
(5,312
|
)
|
|
$
|
(1,972
|
)
|
|
$
|
5,366
|
|
OCI before reclassifications
|
|
3,993
|
|
|
203
|
|
|
517
|
|
|
(19
|
)
|
|
4,694
|
|
|||||
Deferred income tax benefit (expense)
|
|
(1,405
|
)
|
|
(70
|
)
|
|
116
|
|
|
5
|
|
|
(1,354
|
)
|
|||||
AOCI before reclassifications, net of income tax
|
|
13,373
|
|
|
1,998
|
|
|
(4,679
|
)
|
|
(1,986
|
)
|
|
8,706
|
|
|||||
Amounts reclassified from AOCI
|
|
149
|
|
|
(658
|
)
|
|
—
|
|
|
85
|
|
|
(424
|
)
|
|||||
Deferred income tax benefit (expense)
|
|
(53
|
)
|
|
229
|
|
|
—
|
|
|
(22
|
)
|
|
154
|
|
|||||
Amounts reclassified from AOCI, net of income tax
|
|
96
|
|
|
(429
|
)
|
|
—
|
|
|
63
|
|
|
(270
|
)
|
|||||
Balance, end of period
|
|
$
|
13,469
|
|
|
$
|
1,569
|
|
|
$
|
(4,679
|
)
|
|
$
|
(1,923
|
)
|
|
$
|
8,436
|
|
(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 1
for further information on adoption of new accounting pronouncements.
|
(3)
|
See
Note 3
for further information on the 2018 disposition.
|
AOCI Components
|
|
Amounts Reclassified from AOCI
|
|
Consolidated Statements of
Operations and
Comprehensive Income (Loss)
Locations
|
||||||||||||||
|
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
|
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
||||||||
|
|
(In millions)
|
|
|
||||||||||||||
Net unrealized investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net unrealized investment gains (losses)
|
|
$
|
(36
|
)
|
|
$
|
44
|
|
|
$
|
(137
|
)
|
|
$
|
84
|
|
|
Net investment gains (losses)
|
Net unrealized investment gains (losses)
|
|
(3
|
)
|
|
(5
|
)
|
|
—
|
|
|
1
|
|
|
Net investment income
|
||||
Net unrealized investment gains (losses)
|
|
(44
|
)
|
|
6
|
|
|
9
|
|
|
(145
|
)
|
|
Net derivative gains (losses)
|
||||
Net unrealized investment gains (losses)
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(89
|
)
|
|
Discontinued operations
|
||||
Net unrealized investment gains (losses), before income tax
|
|
(83
|
)
|
|
47
|
|
|
(128
|
)
|
|
(149
|
)
|
|
|
||||
Income tax (expense) benefit
|
|
19
|
|
|
(22
|
)
|
|
29
|
|
|
53
|
|
|
|
||||
Net unrealized investment gains (losses), net of income tax
|
|
(64
|
)
|
|
25
|
|
|
(99
|
)
|
|
(96
|
)
|
|
|
||||
Unrealized gains (losses) on derivatives - cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
1
|
|
|
6
|
|
|
17
|
|
|
14
|
|
|
Net derivative gains (losses)
|
||||
Interest rate swaps
|
|
6
|
|
|
3
|
|
|
9
|
|
|
7
|
|
|
Net investment income
|
||||
Interest rate swaps
|
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
Discontinued operations
|
||||
Interest rate forwards
|
|
(2
|
)
|
|
—
|
|
|
3
|
|
|
(4
|
)
|
|
Net derivative gains (losses)
|
||||
Interest rate forwards
|
|
—
|
|
|
2
|
|
|
1
|
|
|
2
|
|
|
Net investment income
|
||||
Interest rate forwards
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
Other expenses
|
||||
Interest rate forwards
|
|
—
|
|
|
2
|
|
|
—
|
|
|
3
|
|
|
Discontinued operations
|
||||
Foreign currency swaps
|
|
(475
|
)
|
|
413
|
|
|
(336
|
)
|
|
621
|
|
|
Net derivative gains (losses)
|
||||
Foreign currency swaps
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
Net investment income
|
||||
Foreign currency swaps
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
Other expenses
|
||||
Foreign currency swaps
|
|
—
|
|
|
1
|
|
|
—
|
|
|
11
|
|
|
Discontinued operations
|
||||
Credit forwards
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
Net derivative gains (losses)
|
||||
Gains (losses) on cash flow hedges, before income tax
|
|
(470
|
)
|
|
429
|
|
|
(305
|
)
|
|
658
|
|
|
|
||||
Income tax (expense) benefit
|
|
170
|
|
|
(149
|
)
|
|
143
|
|
|
(229
|
)
|
|
|
||||
Gains (losses) on cash flow hedges, net of income tax
|
|
(300
|
)
|
|
280
|
|
|
(162
|
)
|
|
429
|
|
|
|
||||
Defined benefit plans adjustment: (1)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Amortization of net actuarial gains (losses)
|
|
(35
|
)
|
|
(48
|
)
|
|
(71
|
)
|
|
(97
|
)
|
|
|
||||
Amortization of prior service (costs) credit
|
|
4
|
|
|
7
|
|
|
9
|
|
|
12
|
|
|
|
||||
Amortization of defined benefit plan items, before income tax
|
|
(31
|
)
|
|
(41
|
)
|
|
(62
|
)
|
|
(85
|
)
|
|
|
||||
Income tax (expense) benefit
|
|
6
|
|
|
17
|
|
|
13
|
|
|
22
|
|
|
|
||||
Amortization of defined benefit plan items, net of income tax
|
|
(25
|
)
|
|
(24
|
)
|
|
(49
|
)
|
|
(63
|
)
|
|
|
||||
Total reclassifications, net of income tax
|
|
$
|
(389
|
)
|
|
$
|
281
|
|
|
$
|
(310
|
)
|
|
$
|
270
|
|
|
|
(1)
|
These AOCI components are included in the computation of net periodic benefit costs. See Note
12
.
|
|
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(In millions)
|
||||||||||||||
Employee related costs
|
|
$
|
894
|
|
|
$
|
879
|
|
|
$
|
1,831
|
|
|
$
|
1,816
|
|
Third party staffing costs
|
|
402
|
|
|
398
|
|
|
782
|
|
|
760
|
|
||||
General and administrative expenses
|
|
351
|
|
|
318
|
|
|
594
|
|
|
539
|
|
||||
Pension, postretirement and postemployment benefit costs
|
|
47
|
|
|
76
|
|
|
96
|
|
|
155
|
|
||||
Premium taxes, other taxes, and licenses & fees
|
|
187
|
|
|
148
|
|
|
366
|
|
|
323
|
|
||||
Commissions and other variable expenses
|
|
1,438
|
|
|
1,306
|
|
|
2,854
|
|
|
2,610
|
|
||||
Capitalization of DAC
|
|
(834
|
)
|
|
(744
|
)
|
|
(1,630
|
)
|
|
(1,457
|
)
|
||||
Amortization of DAC and VOBA
|
|
707
|
|
|
656
|
|
|
1,400
|
|
|
1,319
|
|
||||
Amortization of negative VOBA
|
|
(16
|
)
|
|
(38
|
)
|
|
(38
|
)
|
|
(81
|
)
|
||||
Interest expense on debt
|
|
309
|
|
|
284
|
|
|
595
|
|
|
567
|
|
||||
Total other expenses
|
|
$
|
3,485
|
|
|
$
|
3,283
|
|
|
$
|
6,850
|
|
|
$
|
6,551
|
|
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Severance
|
||||||||||||||
|
(In millions)
|
||||||||||||||
Balance, beginning of period
|
$
|
19
|
|
|
$
|
38
|
|
|
$
|
22
|
|
|
$
|
35
|
|
Restructuring charges
|
9
|
|
|
11
|
|
|
18
|
|
|
22
|
|
||||
Cash payments
|
(8
|
)
|
|
(32
|
)
|
|
(20
|
)
|
|
(40
|
)
|
||||
Balance, end of period
|
$
|
20
|
|
|
$
|
17
|
|
|
$
|
20
|
|
|
$
|
17
|
|
Total restructuring charges incurred since inception of initiative
|
$
|
91
|
|
|
$
|
57
|
|
|
$
|
91
|
|
|
$
|
57
|
|
|
|
Three Months
Ended June 30, |
||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||
|
|
Pension
Benefits
|
|
Other Postretirement Benefits
|
|
Pension
Benefits
|
|
Other Postretirement Benefits
|
||||||||
|
|
(In millions)
|
||||||||||||||
Service costs
|
|
$
|
58
|
|
|
$
|
2
|
|
|
$
|
61
|
|
|
$
|
2
|
|
Interest costs
|
|
96
|
|
|
15
|
|
|
106
|
|
|
19
|
|
||||
Expected return on plan assets
|
|
(134
|
)
|
|
(18
|
)
|
|
(128
|
)
|
|
(18
|
)
|
||||
Amortization of net actuarial (gains) losses
|
|
44
|
|
|
(9
|
)
|
|
48
|
|
|
—
|
|
||||
Amortization of prior service costs (credit)
|
|
—
|
|
|
(4
|
)
|
|
(1
|
)
|
|
(6
|
)
|
||||
Net periodic benefit costs (credit)
|
|
$
|
64
|
|
|
$
|
(14
|
)
|
|
$
|
86
|
|
|
$
|
(3
|
)
|
|
|
Six Months
Ended June 30, |
||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||
|
|
Pension
Benefits
|
|
Other
Postretirement
Benefits
|
|
Pension
Benefits
|
|
Other
Postretirement
Benefits
|
||||||||
|
|
(In millions)
|
||||||||||||||
Service costs
|
|
$
|
118
|
|
|
$
|
3
|
|
|
$
|
122
|
|
|
$
|
3
|
|
Interest costs
|
|
192
|
|
|
26
|
|
|
212
|
|
|
38
|
|
||||
Expected return on plan assets
|
|
(267
|
)
|
|
(36
|
)
|
|
(258
|
)
|
|
(36
|
)
|
||||
Amortization of net actuarial (gains) losses
|
|
88
|
|
|
(17
|
)
|
|
97
|
|
|
—
|
|
||||
Amortization of prior service costs (credit)
|
|
—
|
|
|
(9
|
)
|
|
(1
|
)
|
|
(11
|
)
|
||||
Net periodic benefit costs (credit)
|
|
$
|
131
|
|
|
$
|
(33
|
)
|
|
$
|
172
|
|
|
$
|
(6
|
)
|
|
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(In millions, except per share data)
|
||||||||||||||
Weighted Average Shares:
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common stock outstanding for basic earnings per common share
|
|
1,015.6
|
|
|
1,074.0
|
|
|
1,025.7
|
|
|
1,082.1
|
|
||||
Incremental common shares from assumed exercise or issuance of stock-based awards
|
|
8.2
|
|
|
8.1
|
|
|
8.3
|
|
|
8.3
|
|
||||
Weighted average common stock outstanding for diluted earnings per common share
|
|
1,023.8
|
|
|
1,082.1
|
|
|
1,034.0
|
|
|
1,090.4
|
|
||||
Income (Loss) from Continuing Operations:
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations, net of income tax
|
|
$
|
894
|
|
|
$
|
856
|
|
|
$
|
2,151
|
|
|
$
|
1,808
|
|
Less: Income (loss) from continuing operations, net of income tax, attributable to noncontrolling interests
|
|
3
|
|
|
3
|
|
|
7
|
|
|
6
|
|
||||
Less: Preferred stock dividends
|
|
46
|
|
|
46
|
|
|
52
|
|
|
52
|
|
||||
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders
|
|
$
|
845
|
|
|
$
|
807
|
|
|
$
|
2,092
|
|
|
$
|
1,750
|
|
Basic
|
|
$
|
0.83
|
|
|
$
|
0.76
|
|
|
$
|
2.04
|
|
|
$
|
1.62
|
|
Diluted
|
|
$
|
0.83
|
|
|
$
|
0.75
|
|
|
$
|
2.02
|
|
|
$
|
1.61
|
|
Income (Loss) from Discontinued Operations:
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from discontinued operations, net of income tax
|
|
$
|
—
|
|
|
$
|
58
|
|
|
$
|
—
|
|
|
$
|
(18
|
)
|
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
|
|
$
|
—
|
|
|
$
|
58
|
|
|
$
|
—
|
|
|
$
|
(18
|
)
|
Basic
|
|
$
|
—
|
|
|
$
|
0.05
|
|
|
$
|
—
|
|
|
$
|
(0.02
|
)
|
Diluted
|
|
$
|
—
|
|
|
$
|
0.05
|
|
|
$
|
—
|
|
|
$
|
(0.02
|
)
|
Net Income (Loss):
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
|
$
|
894
|
|
|
$
|
914
|
|
|
$
|
2,151
|
|
|
$
|
1,790
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
3
|
|
|
3
|
|
|
7
|
|
|
6
|
|
||||
Less: Preferred stock dividends
|
|
46
|
|
|
46
|
|
|
52
|
|
|
52
|
|
||||
Net income (loss) available to MetLife, Inc.’s common shareholders
|
|
$
|
845
|
|
|
$
|
865
|
|
|
$
|
2,092
|
|
|
$
|
1,732
|
|
Basic
|
|
$
|
0.83
|
|
|
$
|
0.81
|
|
|
$
|
2.04
|
|
|
$
|
1.60
|
|
Diluted
|
|
$
|
0.83
|
|
|
$
|
0.80
|
|
|
$
|
2.02
|
|
|
$
|
1.59
|
|
|
Page
|
(1)
|
Excludes Corporate & Other adjusted loss available to common shareholders of
$219 million
.
|
(2)
|
Consistent with GAAP guidance for segment reporting, adjusted 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 June 30, |
|
Six Months
Ended June 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(In millions)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
Premiums
|
|
$
|
15,153
|
|
|
$
|
9,580
|
|
|
$
|
24,331
|
|
|
$
|
18,545
|
|
Universal life and investment-type product policy fees
|
|
1,370
|
|
|
1,364
|
|
|
2,762
|
|
|
2,724
|
|
||||
Net investment income
|
|
4,473
|
|
|
4,193
|
|
|
8,218
|
|
|
8,614
|
|
||||
Other revenues
|
|
475
|
|
|
292
|
|
|
949
|
|
|
634
|
|
||||
Net investment gains (losses)
|
|
(227
|
)
|
|
104
|
|
|
(560
|
)
|
|
192
|
|
||||
Net derivative gains (losses)
|
|
(59
|
)
|
|
(200
|
)
|
|
290
|
|
|
(412
|
)
|
||||
Total revenues
|
|
21,185
|
|
|
15,333
|
|
|
35,990
|
|
|
30,297
|
|
||||
Expenses
|
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims and policyholder dividends
|
|
15,175
|
|
|
9,740
|
|
|
24,190
|
|
|
18,913
|
|
||||
Interest credited to policyholder account balances
|
|
1,424
|
|
|
1,292
|
|
|
2,193
|
|
|
2,743
|
|
||||
Capitalization of DAC
|
|
(834
|
)
|
|
(744
|
)
|
|
(1,630
|
)
|
|
(1,457
|
)
|
||||
Amortization of DAC and VOBA
|
|
707
|
|
|
656
|
|
|
1,400
|
|
|
1,319
|
|
||||
Amortization of negative VOBA
|
|
(16
|
)
|
|
(38
|
)
|
|
(38
|
)
|
|
(81
|
)
|
||||
Interest expense on debt
|
|
309
|
|
|
284
|
|
|
595
|
|
|
567
|
|
||||
Other expenses
|
|
3,319
|
|
|
3,125
|
|
|
6,523
|
|
|
6,203
|
|
||||
Total expenses
|
|
20,084
|
|
|
14,315
|
|
|
33,233
|
|
|
28,207
|
|
||||
Income (loss) from continuing operations before provision for income tax
|
|
1,101
|
|
|
1,018
|
|
|
2,757
|
|
|
2,090
|
|
||||
Provision for income tax expense (benefit)
|
|
207
|
|
|
162
|
|
|
606
|
|
|
282
|
|
||||
Income (loss) from continuing operations, net of income tax
|
|
894
|
|
|
856
|
|
|
2,151
|
|
|
1,808
|
|
||||
Income (loss) from discontinued operations, net of income tax
|
|
—
|
|
|
58
|
|
|
—
|
|
|
(18
|
)
|
||||
Net income (loss)
|
|
894
|
|
|
914
|
|
|
2,151
|
|
|
1,790
|
|
||||
Less: Net income (loss) attributable to noncontrolling interests
|
|
3
|
|
|
3
|
|
|
7
|
|
|
6
|
|
||||
Net income (loss) attributable to MetLife, Inc.
|
|
891
|
|
|
911
|
|
|
2,144
|
|
|
1,784
|
|
||||
Less: Preferred stock dividends
|
|
46
|
|
|
46
|
|
|
52
|
|
|
52
|
|
||||
Net income (loss) available to MetLife, Inc.’s common shareholders
|
|
$
|
845
|
|
|
$
|
865
|
|
|
$
|
2,092
|
|
|
$
|
1,732
|
|
|
Three Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
|
(In millions)
|
||||||
Non-VA program derivatives
|
|
|
|
||||
Interest rate
|
$
|
(2
|
)
|
|
$
|
186
|
|
Foreign currency exchange rate
|
2
|
|
|
(273
|
)
|
||
Credit
|
(4
|
)
|
|
56
|
|
||
Equity
|
(18
|
)
|
|
(10
|
)
|
||
Non-VA embedded derivatives
|
(2
|
)
|
|
(57
|
)
|
||
Total non-VA program derivatives
|
(24
|
)
|
|
(98
|
)
|
||
VA program derivatives
|
|
|
|
||||
Market risks in embedded derivatives
|
256
|
|
|
271
|
|
||
Nonperformance risk adjustment on embedded derivatives
|
(25
|
)
|
|
(89
|
)
|
||
Other risks in embedded derivatives
|
(78
|
)
|
|
(34
|
)
|
||
Total embedded derivatives
|
153
|
|
|
148
|
|
||
Freestanding derivatives hedging embedded derivatives
|
(188
|
)
|
|
(250
|
)
|
||
Total VA program derivatives
|
(35
|
)
|
|
(102
|
)
|
||
Net derivative gains (losses)
|
$
|
(59
|
)
|
|
$
|
(200
|
)
|
•
|
Key equity index levels 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 Topix Index increased 1% in the current period and increased 7% in the prior period.
|
•
|
Long-term U.S. interest rates increased in the current period and decreased in the prior period, contributing to an unfavorable change in freestanding derivatives and a favorable change in our embedded derivatives. For example, the 30-year U.S. swap rate increased 11 basis points in the current period and decreased 11 basis points in the prior period.
|
•
|
Changes in foreign currency exchange rates contributed to a favorable change in our freestanding derivatives and an unfavorable change in our embedded derivatives related to the assumed variable annuity guarantees from our former operating joint venture in Japan. For example, the Japanese yen strengthened against the euro by 1% in the current period and weakened by 8% in the prior period.
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
|
(In millions)
|
||||||
Non-VA program derivatives
|
|
|
|
||||
Interest rate
|
$
|
(99
|
)
|
|
$
|
18
|
|
Foreign currency exchange rate
|
289
|
|
|
(148
|
)
|
||
Credit
|
(33
|
)
|
|
100
|
|
||
Equity
|
(1
|
)
|
|
(11
|
)
|
||
Non-VA embedded derivatives
|
24
|
|
|
(97
|
)
|
||
Total non-VA program derivatives
|
180
|
|
|
(138
|
)
|
||
VA program derivatives
|
|
|
|
||||
Market risks in embedded derivatives
|
252
|
|
|
558
|
|
||
Nonperformance risk adjustment on embedded derivatives
|
(5
|
)
|
|
(141
|
)
|
||
Other risks in embedded derivatives
|
(83
|
)
|
|
(72
|
)
|
||
Total embedded derivatives
|
164
|
|
|
345
|
|
||
Freestanding derivatives hedging embedded derivatives
|
(54
|
)
|
|
(619
|
)
|
||
Total VA program derivatives
|
110
|
|
|
(274
|
)
|
||
Net derivative gains (losses)
|
$
|
290
|
|
|
$
|
(412
|
)
|
•
|
Key equity index levels increased less in the current period versus the prior period, contributing to a favorable change in our freestanding derivatives and an unfavorable change in our embedded derivatives. For example, the S&P 500 Index increased 2% in the current period and increased 8% in the prior period.
|
•
|
Mid- and long-term U.S. interest rates increased in the current period and decreased in the prior period, contributing to a favorable change in our embedded derivatives and an unfavorable change in our freestanding derivatives. For example, the 10-year U.S. swap rate increased 54 basis points in the current period and decreased 6 basis points in the prior period.
|
•
|
Changes in foreign currency exchange rates contributed to a favorable change in our freestanding derivatives and an unfavorable change in our embedded derivatives related to the assumed variable annuity guarantees from our former operating joint venture in Japan. For example, the Japanese yen strengthened against the euro by 4% in the current period and weakened by 4% in the prior period.
|
|
U.S.
|
|
Asia
|
|
Latin America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Net income (loss)
|
$
|
783
|
|
|
$
|
235
|
|
|
$
|
54
|
|
|
$
|
72
|
|
|
$
|
205
|
|
|
$
|
(455
|
)
|
|
$
|
894
|
|
Less: Income (loss) from discontinued operations, net of income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Income (loss) from continuing operations, net of income tax
|
$
|
783
|
|
|
$
|
235
|
|
|
$
|
54
|
|
|
$
|
72
|
|
|
$
|
205
|
|
|
$
|
(455
|
)
|
|
$
|
894
|
|
Less: Net investment gains (losses)
|
67
|
|
|
5
|
|
|
1
|
|
|
4
|
|
|
(66
|
)
|
|
(238
|
)
|
|
(227
|
)
|
|||||||
Less: Net derivative gains (losses)
|
151
|
|
|
(177
|
)
|
|
(116
|
)
|
|
(2
|
)
|
|
17
|
|
|
68
|
|
|
(59
|
)
|
|||||||
Less: Other adjustments to continuing operations (1)
|
(75
|
)
|
|
(5
|
)
|
|
(12
|
)
|
|
(12
|
)
|
|
(45
|
)
|
|
(84
|
)
|
|
(233
|
)
|
|||||||
Less: Provision for income tax (expense) benefit
|
(31
|
)
|
|
49
|
|
|
36
|
|
|
(4
|
)
|
|
19
|
|
|
(28
|
)
|
|
41
|
|
|||||||
Adjusted earnings
|
$
|
671
|
|
|
$
|
363
|
|
|
$
|
145
|
|
|
$
|
86
|
|
|
$
|
280
|
|
|
(173
|
)
|
|
1,372
|
|
||
Less: Preferred stock dividends
|
|
|
|
|
|
|
|
|
|
|
46
|
|
|
46
|
|
||||||||||||
Adjusted earnings available to common shareholders
|
|
|
|
|
|
|
|
|
|
|
$
|
(219
|
)
|
|
$
|
1,326
|
|
|
U.S.
|
|
Asia
|
|
Latin America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Net income (loss)
|
$
|
542
|
|
|
$
|
204
|
|
|
$
|
97
|
|
|
$
|
67
|
|
|
$
|
78
|
|
|
$
|
(74
|
)
|
|
$
|
914
|
|
Less: Income (loss) from discontinued operations, net of income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|
58
|
|
|||||||
Income (loss) from continuing operations, net of income tax
|
$
|
542
|
|
|
$
|
204
|
|
|
$
|
97
|
|
|
$
|
67
|
|
|
$
|
78
|
|
|
$
|
(132
|
)
|
|
$
|
856
|
|
Less: Net investment gains (losses)
|
—
|
|
|
(19
|
)
|
|
2
|
|
|
2
|
|
|
3
|
|
|
116
|
|
|
104
|
|
|||||||
Less: Net derivative gains (losses)
|
128
|
|
|
(128
|
)
|
|
(9
|
)
|
|
5
|
|
|
(219
|
)
|
|
23
|
|
|
(200
|
)
|
|||||||
Less: Other adjustments to continuing operations (1)
|
(52
|
)
|
|
(12
|
)
|
|
(61
|
)
|
|
(12
|
)
|
|
(29
|
)
|
|
(175
|
)
|
|
(341
|
)
|
|||||||
Less: Provision for income tax (expense) benefit
|
(27
|
)
|
|
53
|
|
|
11
|
|
|
—
|
|
|
86
|
|
|
3
|
|
|
126
|
|
|||||||
Adjusted earnings
|
$
|
493
|
|
|
$
|
310
|
|
|
$
|
154
|
|
|
$
|
72
|
|
|
$
|
237
|
|
|
(99
|
)
|
|
1,167
|
|
||
Less: Preferred stock dividends
|
|
|
|
|
|
|
|
|
|
|
46
|
|
|
46
|
|
||||||||||||
Adjusted earnings available to common shareholders
|
|
|
|
|
|
|
|
|
|
|
$
|
(145
|
)
|
|
$
|
1,121
|
|
(1)
|
See definitions and components of adjusted revenues and adjusted expenses under “— Non-GAAP and Other Financial Disclosures.” Further, see
Note 2
of the Notes to the Interim Condensed Consolidated Financial Statements for additional details on these adjustments by financial statement line item.
|
|
U.S.
|
|
Asia
|
|
Latin America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Net income (loss)
|
$
|
1,272
|
|
|
$
|
799
|
|
|
$
|
240
|
|
|
$
|
159
|
|
|
$
|
549
|
|
|
$
|
(868
|
)
|
|
$
|
2,151
|
|
Less: Income (loss) from discontinued operations, net of income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Income (loss) from continuing operations, net of income tax
|
$
|
1,272
|
|
|
$
|
799
|
|
|
$
|
240
|
|
|
$
|
159
|
|
|
$
|
549
|
|
|
$
|
(868
|
)
|
|
$
|
2,151
|
|
Less: Net investment gains (losses)
|
(43
|
)
|
|
83
|
|
|
4
|
|
|
(2
|
)
|
|
(172
|
)
|
|
(430
|
)
|
|
(560
|
)
|
|||||||
Less: Net derivative gains (losses)
|
97
|
|
|
82
|
|
|
33
|
|
|
(1
|
)
|
|
51
|
|
|
28
|
|
|
290
|
|
|||||||
Less: Other adjustments to continuing operations (1)
|
(120
|
)
|
|
(13
|
)
|
|
(76
|
)
|
|
(8
|
)
|
|
(76
|
)
|
|
(86
|
)
|
|
(379
|
)
|
|||||||
Less: Provision for income tax (expense) benefit
|
14
|
|
|
(43
|
)
|
|
(6
|
)
|
|
3
|
|
|
41
|
|
|
(10
|
)
|
|
(1
|
)
|
|||||||
Adjusted earnings
|
$
|
1,324
|
|
|
$
|
690
|
|
|
$
|
285
|
|
|
$
|
167
|
|
|
$
|
705
|
|
|
(370
|
)
|
|
2,801
|
|
||
Less: Preferred stock dividends
|
|
|
|
|
|
|
|
|
|
|
52
|
|
|
52
|
|
||||||||||||
Adjusted earnings available to common shareholders
|
|
|
|
|
|
|
|
|
|
|
$
|
(422
|
)
|
|
$
|
2,749
|
|
|
U.S.
|
|
Asia
|
|
Latin America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Net income (loss)
|
$
|
887
|
|
|
$
|
684
|
|
|
$
|
328
|
|
|
$
|
148
|
|
|
$
|
423
|
|
|
$
|
(680
|
)
|
|
$
|
1,790
|
|
Less: Income (loss) from discontinued operations, net of income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
|
(18
|
)
|
|||||||
Income (loss) from continuing operations, net of income tax
|
$
|
887
|
|
|
$
|
684
|
|
|
$
|
328
|
|
|
$
|
148
|
|
|
$
|
423
|
|
|
$
|
(662
|
)
|
|
$
|
1,808
|
|
Less: Net investment gains (losses)
|
(18
|
)
|
|
98
|
|
|
14
|
|
|
4
|
|
|
24
|
|
|
70
|
|
|
192
|
|
|||||||
Less: Net derivative gains (losses)
|
(20
|
)
|
|
49
|
|
|
127
|
|
|
18
|
|
|
(223
|
)
|
|
(363
|
)
|
|
(412
|
)
|
|||||||
Less: Other adjustments to continuing operations (1)
|
(118
|
)
|
|
(16
|
)
|
|
(90
|
)
|
|
(7
|
)
|
|
(112
|
)
|
|
(489
|
)
|
|
(832
|
)
|
|||||||
Less: Provision for income tax (expense) benefit
|
53
|
|
|
(52
|
)
|
|
(20
|
)
|
|
(14
|
)
|
|
110
|
|
|
289
|
|
|
366
|
|
|||||||
Adjusted earnings
|
$
|
990
|
|
|
$
|
605
|
|
|
$
|
297
|
|
|
$
|
147
|
|
|
$
|
624
|
|
|
(169
|
)
|
|
2,494
|
|
||
Less: Preferred stock dividends
|
|
|
|
|
|
|
|
|
|
|
52
|
|
|
52
|
|
||||||||||||
Adjusted earnings available to common shareholders
|
|
|
|
|
|
|
|
|
|
|
$
|
(221
|
)
|
|
$
|
2,442
|
|
(1)
|
See definitions and components of adjusted revenues and adjusted expenses under “— Non-GAAP and Other Financial Disclosures.” Further, see
Note 2
of the
Notes to the Interim Condensed Consolidated Financial Statements for additional details on these adjustments by financial statement line item
.
|
|
U.S.
|
|
Asia
|
|
Latin America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Total revenues
|
$
|
13,630
|
|
|
$
|
2,742
|
|
|
$
|
1,168
|
|
|
$
|
1,023
|
|
|
$
|
2,589
|
|
|
$
|
33
|
|
|
$
|
21,185
|
|
Less: Net investment gains (losses)
|
67
|
|
|
5
|
|
|
1
|
|
|
4
|
|
|
(66
|
)
|
|
(238
|
)
|
|
(227
|
)
|
|||||||
Less: Net derivative gains (losses)
|
151
|
|
|
(177
|
)
|
|
(116
|
)
|
|
(2
|
)
|
|
17
|
|
|
68
|
|
|
(59
|
)
|
|||||||
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(5
|
)
|
|||||||
Less: Other adjustments to revenues (1)
|
(74
|
)
|
|
12
|
|
|
(16
|
)
|
|
276
|
|
|
(16
|
)
|
|
78
|
|
|
260
|
|
|||||||
Total adjusted revenues
|
$
|
13,486
|
|
|
$
|
2,905
|
|
|
$
|
1,299
|
|
|
$
|
746
|
|
|
$
|
2,655
|
|
|
$
|
125
|
|
|
$
|
21,216
|
|
Total expenses
|
$
|
12,642
|
|
|
$
|
2,395
|
|
|
$
|
1,095
|
|
|
$
|
921
|
|
|
$
|
2,337
|
|
|
$
|
694
|
|
|
$
|
20,084
|
|
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(8
|
)
|
|
—
|
|
|
(10
|
)
|
|||||||
Less: Other adjustments to expenses (1)
|
1
|
|
|
15
|
|
|
(4
|
)
|
|
288
|
|
|
36
|
|
|
162
|
|
|
498
|
|
|||||||
Total adjusted expenses
|
$
|
12,641
|
|
|
$
|
2,381
|
|
|
$
|
1,099
|
|
|
$
|
634
|
|
|
$
|
2,309
|
|
|
$
|
532
|
|
|
$
|
19,596
|
|
|
U.S.
|
|
Asia
|
|
Latin America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Total revenues
|
$
|
7,979
|
|
|
$
|
2,744
|
|
|
$
|
1,210
|
|
|
$
|
811
|
|
|
$
|
2,566
|
|
|
$
|
23
|
|
|
$
|
15,333
|
|
Less: Net investment gains (losses)
|
—
|
|
|
(19
|
)
|
|
2
|
|
|
2
|
|
|
3
|
|
|
116
|
|
|
104
|
|
|||||||
Less: Net derivative gains (losses)
|
128
|
|
|
(128
|
)
|
|
(9
|
)
|
|
5
|
|
|
(219
|
)
|
|
23
|
|
|
(200
|
)
|
|||||||
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
10
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
9
|
|
|||||||
Less: Other adjustments to revenues (1)
|
(51
|
)
|
|
107
|
|
|
—
|
|
|
102
|
|
|
(23
|
)
|
|
(226
|
)
|
|
(91
|
)
|
|||||||
Total adjusted revenues
|
$
|
7,902
|
|
|
$
|
2,774
|
|
|
$
|
1,217
|
|
|
$
|
703
|
|
|
$
|
2,805
|
|
|
$
|
110
|
|
|
$
|
15,511
|
|
Total expenses
|
$
|
7,163
|
|
|
$
|
2,436
|
|
|
$
|
1,090
|
|
|
$
|
730
|
|
|
$
|
2,469
|
|
|
$
|
427
|
|
|
$
|
14,315
|
|
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
10
|
|
|
—
|
|
|
(1
|
)
|
|
(38
|
)
|
|
1
|
|
|
(28
|
)
|
|||||||
Less: Other adjustments to expenses (1)
|
1
|
|
|
119
|
|
|
61
|
|
|
114
|
|
|
44
|
|
|
(52
|
)
|
|
287
|
|
|||||||
Total adjusted expenses
|
$
|
7,162
|
|
|
$
|
2,307
|
|
|
$
|
1,029
|
|
|
$
|
617
|
|
|
$
|
2,463
|
|
|
$
|
478
|
|
|
$
|
14,056
|
|
(1)
|
See definitions and components of adjusted revenues and adjusted expenses under “— Non-GAAP and Other Financial Disclosures.” Further, see
Note 2
of the Notes to the Interim Condensed Consolidated Financial Statements for additional details on these adjustments by financial statement line item.
|
|
U.S.
|
|
Asia
|
|
Latin America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Total revenues
|
$
|
20,753
|
|
|
$
|
5,945
|
|
|
$
|
2,585
|
|
|
$
|
1,485
|
|
|
$
|
5,184
|
|
|
$
|
38
|
|
|
$
|
35,990
|
|
Less: Net investment gains (losses)
|
(43
|
)
|
|
83
|
|
|
4
|
|
|
(2
|
)
|
|
(172
|
)
|
|
(430
|
)
|
|
(560
|
)
|
|||||||
Less: Net derivative gains (losses)
|
97
|
|
|
82
|
|
|
33
|
|
|
(1
|
)
|
|
51
|
|
|
28
|
|
|
290
|
|
|||||||
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
|
—
|
|
|
(10
|
)
|
|||||||
Less: Other adjustments to revenues (1)
|
(128
|
)
|
|
(70
|
)
|
|
(16
|
)
|
|
(10
|
)
|
|
(32
|
)
|
|
162
|
|
|
(94
|
)
|
|||||||
Total adjusted revenues
|
$
|
20,827
|
|
|
$
|
5,857
|
|
|
$
|
2,564
|
|
|
$
|
1,500
|
|
|
$
|
5,338
|
|
|
$
|
278
|
|
|
$
|
36,364
|
|
Total expenses
|
$
|
19,150
|
|
|
$
|
4,797
|
|
|
$
|
2,209
|
|
|
$
|
1,282
|
|
|
$
|
4,506
|
|
|
$
|
1,289
|
|
|
$
|
33,233
|
|
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(2
|
)
|
|
(14
|
)
|
|
—
|
|
|
(24
|
)
|
|||||||
Less: Other adjustments to expenses (1)
|
(8
|
)
|
|
(56
|
)
|
|
60
|
|
|
(2
|
)
|
|
57
|
|
|
248
|
|
|
299
|
|
|||||||
Total adjusted expenses
|
$
|
19,158
|
|
|
$
|
4,861
|
|
|
$
|
2,149
|
|
|
$
|
1,286
|
|
|
$
|
4,463
|
|
|
$
|
1,041
|
|
|
$
|
32,958
|
|
|
U.S.
|
|
Asia
|
|
Latin America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Total revenues
|
$
|
15,013
|
|
|
$
|
5,847
|
|
|
$
|
2,608
|
|
|
$
|
1,870
|
|
|
$
|
5,508
|
|
|
$
|
(549
|
)
|
|
$
|
30,297
|
|
Less: Net investment gains (losses)
|
(18
|
)
|
|
98
|
|
|
14
|
|
|
4
|
|
|
24
|
|
|
70
|
|
|
192
|
|
|||||||
Less: Net derivative gains (losses)
|
(20
|
)
|
|
49
|
|
|
127
|
|
|
18
|
|
|
(223
|
)
|
|
(363
|
)
|
|
(412
|
)
|
|||||||
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
11
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
10
|
|
|||||||
Less: Other adjustments to revenues (1)
|
(117
|
)
|
|
129
|
|
|
31
|
|
|
458
|
|
|
(56
|
)
|
|
(503
|
)
|
|
(58
|
)
|
|||||||
Total adjusted revenues
|
$
|
15,168
|
|
|
$
|
5,560
|
|
|
$
|
2,436
|
|
|
$
|
1,391
|
|
|
$
|
5,763
|
|
|
$
|
247
|
|
|
$
|
30,565
|
|
Total expenses
|
$
|
13,683
|
|
|
$
|
4,808
|
|
|
$
|
2,188
|
|
|
$
|
1,682
|
|
|
$
|
4,904
|
|
|
$
|
942
|
|
|
$
|
28,207
|
|
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
11
|
|
|
—
|
|
|
(1
|
)
|
|
(40
|
)
|
|
—
|
|
|
(30
|
)
|
|||||||
Less: Other adjustments to expenses (1)
|
1
|
|
|
145
|
|
|
121
|
|
|
465
|
|
|
96
|
|
|
(14
|
)
|
|
814
|
|
|||||||
Total adjusted expenses
|
$
|
13,682
|
|
|
$
|
4,652
|
|
|
$
|
2,067
|
|
|
$
|
1,218
|
|
|
$
|
4,848
|
|
|
$
|
956
|
|
|
$
|
27,423
|
|
(1)
|
See definitions and components of adjusted revenues and adjusted expenses under “— Non-GAAP and Other Financial Disclosures.” Further, see
Note 2
of the Notes to the Interim Condensed Consolidated Financial Statements
for additional details on these adjustments by financial statement line item
.
|
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Adjusted revenues
|
|
|
|
|
|
|
|
||||||||
Premiums
|
$
|
11,302
|
|
|
$
|
5,877
|
|
|
$
|
16,519
|
|
|
$
|
11,062
|
|
Universal life and investment-type product policy fees
|
262
|
|
|
251
|
|
|
520
|
|
|
516
|
|
||||
Net investment income
|
1,719
|
|
|
1,575
|
|
|
3,381
|
|
|
3,187
|
|
||||
Other revenues
|
203
|
|
|
199
|
|
|
407
|
|
|
403
|
|
||||
Total adjusted revenues
|
13,486
|
|
|
7,902
|
|
|
20,827
|
|
|
15,168
|
|
||||
Adjusted expenses
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims and policyholder dividends
|
11,233
|
|
|
5,887
|
|
|
16,371
|
|
|
11,131
|
|
||||
Interest credited to policyholder account balances
|
439
|
|
|
359
|
|
|
846
|
|
|
710
|
|
||||
Capitalization of DAC
|
(114
|
)
|
|
(116
|
)
|
|
(220
|
)
|
|
(216
|
)
|
||||
Amortization of DAC and VOBA
|
114
|
|
|
114
|
|
|
229
|
|
|
228
|
|
||||
Interest expense on debt
|
4
|
|
|
4
|
|
|
6
|
|
|
6
|
|
||||
Other expenses
|
965
|
|
|
914
|
|
|
1,926
|
|
|
1,823
|
|
||||
Total adjusted expenses
|
12,641
|
|
|
7,162
|
|
|
19,158
|
|
|
13,682
|
|
||||
Provision for income tax expense (benefit)
|
174
|
|
|
247
|
|
|
345
|
|
|
496
|
|
||||
Adjusted earnings
|
$
|
671
|
|
|
$
|
493
|
|
|
$
|
1,324
|
|
|
$
|
990
|
|
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Adjusted revenues
|
|
|
|
|
|
|
|
||||||||
Premiums
|
$
|
1,654
|
|
|
$
|
1,659
|
|
|
$
|
3,402
|
|
|
$
|
3,367
|
|
Universal life and investment-type product policy fees
|
399
|
|
|
375
|
|
|
793
|
|
|
741
|
|
||||
Net investment income
|
839
|
|
|
729
|
|
|
1,634
|
|
|
1,431
|
|
||||
Other revenues
|
13
|
|
|
11
|
|
|
28
|
|
|
21
|
|
||||
Total adjusted revenues
|
2,905
|
|
|
2,774
|
|
|
5,857
|
|
|
5,560
|
|
||||
Adjusted expenses
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims and policyholder dividends
|
1,237
|
|
|
1,247
|
|
|
2,580
|
|
|
2,562
|
|
||||
Interest credited to policyholder account balances
|
362
|
|
|
333
|
|
|
713
|
|
|
654
|
|
||||
Capitalization of DAC
|
(495
|
)
|
|
(428
|
)
|
|
(960
|
)
|
|
(848
|
)
|
||||
Amortization of DAC and VOBA
|
313
|
|
|
290
|
|
|
627
|
|
|
581
|
|
||||
Amortization of negative VOBA
|
(12
|
)
|
|
(30
|
)
|
|
(27
|
)
|
|
(67
|
)
|
||||
Other expenses
|
976
|
|
|
895
|
|
|
1,928
|
|
|
1,770
|
|
||||
Total adjusted expenses
|
2,381
|
|
|
2,307
|
|
|
4,861
|
|
|
4,652
|
|
||||
Provision for income tax expense (benefit)
|
161
|
|
|
157
|
|
|
306
|
|
|
303
|
|
||||
Adjusted earnings
|
$
|
363
|
|
|
$
|
310
|
|
|
$
|
690
|
|
|
$
|
605
|
|
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Adjusted revenues
|
|
|
|
|
|
|
|
||||||||
Premiums
|
$
|
688
|
|
|
$
|
645
|
|
|
$
|
1,387
|
|
|
$
|
1,292
|
|
Universal life and investment-type product policy fees
|
275
|
|
|
275
|
|
|
557
|
|
|
535
|
|
||||
Net investment income
|
327
|
|
|
289
|
|
|
603
|
|
|
592
|
|
||||
Other revenues
|
9
|
|
|
8
|
|
|
17
|
|
|
17
|
|
||||
Total adjusted revenues
|
1,299
|
|
|
1,217
|
|
|
2,564
|
|
|
2,436
|
|
||||
Adjusted expenses
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims and policyholder dividends
|
660
|
|
|
596
|
|
|
1,306
|
|
|
1,229
|
|
||||
Interest credited to policyholder account balances
|
95
|
|
|
94
|
|
|
193
|
|
|
176
|
|
||||
Capitalization of DAC
|
(91
|
)
|
|
(88
|
)
|
|
(185
|
)
|
|
(170
|
)
|
||||
Amortization of DAC and VOBA
|
71
|
|
|
68
|
|
|
131
|
|
|
146
|
|
||||
Interest expense on debt
|
1
|
|
|
2
|
|
|
3
|
|
|
3
|
|
||||
Other expenses
|
363
|
|
|
357
|
|
|
701
|
|
|
683
|
|
||||
Total adjusted expenses
|
1,099
|
|
|
1,029
|
|
|
2,149
|
|
|
2,067
|
|
||||
Provision for income tax expense (benefit)
|
55
|
|
|
34
|
|
|
130
|
|
|
72
|
|
||||
Adjusted earnings
|
$
|
145
|
|
|
$
|
154
|
|
|
$
|
285
|
|
|
$
|
297
|
|
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Adjusted revenues
|
|
|
|
|
|
|
|
||||||||
Premiums
|
$
|
546
|
|
|
$
|
505
|
|
|
$
|
1,097
|
|
|
$
|
1,007
|
|
Universal life and investment-type product policy fees
|
107
|
|
|
92
|
|
|
219
|
|
|
187
|
|
||||
Net investment income
|
73
|
|
|
78
|
|
|
148
|
|
|
152
|
|
||||
Other revenues
|
20
|
|
|
28
|
|
|
36
|
|
|
45
|
|
||||
Total adjusted revenues
|
746
|
|
|
703
|
|
|
1,500
|
|
|
1,391
|
|
||||
Adjusted expenses
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims and policyholder dividends
|
286
|
|
|
270
|
|
|
580
|
|
|
539
|
|
||||
Interest credited to policyholder account balances
|
26
|
|
|
25
|
|
|
51
|
|
|
49
|
|
||||
Capitalization of DAC
|
(121
|
)
|
|
(100
|
)
|
|
(239
|
)
|
|
(192
|
)
|
||||
Amortization of DAC and VOBA
|
108
|
|
|
95
|
|
|
214
|
|
|
182
|
|
||||
Amortization of negative VOBA
|
(4
|
)
|
|
(5
|
)
|
|
(10
|
)
|
|
(8
|
)
|
||||
Other expenses
|
339
|
|
|
332
|
|
|
690
|
|
|
648
|
|
||||
Total adjusted expenses
|
634
|
|
|
617
|
|
|
1,286
|
|
|
1,218
|
|
||||
Provision for income tax expense (benefit)
|
26
|
|
|
14
|
|
|
47
|
|
|
26
|
|
||||
Adjusted earnings
|
$
|
86
|
|
|
$
|
72
|
|
|
$
|
167
|
|
|
$
|
147
|
|
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Adjusted revenues
|
|
|
|
|
|
|
|
||||||||
Premiums
|
$
|
957
|
|
|
$
|
1,022
|
|
|
$
|
1,907
|
|
|
$
|
2,081
|
|
Universal life and investment-type product policy fees
|
301
|
|
|
345
|
|
|
615
|
|
|
707
|
|
||||
Net investment income
|
1,329
|
|
|
1,401
|
|
|
2,681
|
|
|
2,842
|
|
||||
Other revenues
|
68
|
|
|
37
|
|
|
135
|
|
|
133
|
|
||||
Total adjusted revenues
|
2,655
|
|
|
2,805
|
|
|
5,338
|
|
|
5,763
|
|
||||
Adjusted expenses
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims and policyholder dividends
|
1,706
|
|
|
1,717
|
|
|
3,256
|
|
|
3,450
|
|
||||
Interest credited to policyholder account balances
|
235
|
|
|
255
|
|
|
471
|
|
|
512
|
|
||||
Capitalization of DAC
|
(10
|
)
|
|
(23
|
)
|
|
(20
|
)
|
|
(57
|
)
|
||||
Amortization of DAC and VOBA
|
101
|
|
|
139
|
|
|
201
|
|
|
213
|
|
||||
Interest expense on debt
|
2
|
|
|
5
|
|
|
4
|
|
|
20
|
|
||||
Other expenses
|
275
|
|
|
370
|
|
|
551
|
|
|
710
|
|
||||
Total adjusted expenses
|
2,309
|
|
|
2,463
|
|
|
4,463
|
|
|
4,848
|
|
||||
Provision for income tax expense (benefit)
|
66
|
|
|
105
|
|
|
170
|
|
|
291
|
|
||||
Adjusted earnings
|
$
|
280
|
|
|
$
|
237
|
|
|
$
|
705
|
|
|
$
|
624
|
|
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Adjusted revenues
|
|
|
|
|
|
|
|
||||||||
Premiums
|
$
|
6
|
|
|
$
|
8
|
|
|
$
|
19
|
|
|
$
|
46
|
|
Net investment income
|
40
|
|
|
41
|
|
|
99
|
|
|
81
|
|
||||
Other revenues
|
79
|
|
|
61
|
|
|
160
|
|
|
120
|
|
||||
Total adjusted revenues
|
125
|
|
|
110
|
|
|
278
|
|
|
247
|
|
||||
Adjusted expenses
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims and policyholder dividends
|
3
|
|
|
1
|
|
|
—
|
|
|
26
|
|
||||
Interest credited to policyholder account balances
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Capitalization of DAC
|
(3
|
)
|
|
(3
|
)
|
|
(5
|
)
|
|
(4
|
)
|
||||
Amortization of DAC and VOBA
|
1
|
|
|
1
|
|
|
3
|
|
|
2
|
|
||||
Interest expense on debt
|
272
|
|
|
277
|
|
|
552
|
|
|
554
|
|
||||
Other expenses
|
259
|
|
|
202
|
|
|
491
|
|
|
377
|
|
||||
Total adjusted expenses
|
532
|
|
|
478
|
|
|
1,041
|
|
|
956
|
|
||||
Provision for income tax expense (benefit)
|
(234
|
)
|
|
(269
|
)
|
|
(393
|
)
|
|
(540
|
)
|
||||
Adjusted earnings
|
(173
|
)
|
|
(99
|
)
|
|
(370
|
)
|
|
(169
|
)
|
||||
Less: Preferred stock dividends
|
46
|
|
|
46
|
|
|
52
|
|
|
52
|
|
||||
Adjusted earnings available to common shareholders
|
$
|
(219
|
)
|
|
$
|
(145
|
)
|
|
$
|
(422
|
)
|
|
$
|
(221
|
)
|
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Other business activities
|
$
|
12
|
|
|
$
|
6
|
|
|
$
|
18
|
|
|
$
|
14
|
|
Other net investment income
|
50
|
|
|
75
|
|
|
107
|
|
|
144
|
|
||||
Interest expense on debt
|
(282
|
)
|
|
(303
|
)
|
|
(575
|
)
|
|
(601
|
)
|
||||
Corporate initiatives and projects
|
(97
|
)
|
|
(103
|
)
|
|
(136
|
)
|
|
(152
|
)
|
||||
Other
|
(90
|
)
|
|
(47
|
)
|
|
(177
|
)
|
|
(118
|
)
|
||||
Provision for income tax (expense) benefit and other tax-related items
|
234
|
|
|
273
|
|
|
393
|
|
|
544
|
|
||||
Preferred stock dividends
|
(46
|
)
|
|
(46
|
)
|
|
(52
|
)
|
|
(52
|
)
|
||||
Adjusted earnings available to common shareholders
|
$
|
(219
|
)
|
|
$
|
(145
|
)
|
|
$
|
(422
|
)
|
|
$
|
(221
|
)
|
•
|
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 June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||||||
|
Yield % (1)
|
|
Amount
|
|
Yield % (1)
|
|
Amount
|
|
Yield % (1)
|
|
Amount
|
|
Yield % (1)
|
|
Amount
|
||||||||||||
|
(Dollars in millions)
|
||||||||||||||||||||||||||
Fixed maturity securities (2), (3)
|
4.30
|
|
%
|
$
|
2,945
|
|
|
4.28
|
|
%
|
$
|
2,820
|
|
|
4.24
|
|
%
|
$
|
5,784
|
|
|
4.31
|
|
%
|
$
|
5,645
|
|
Mortgage loans (3)
|
4.59
|
|
%
|
815
|
|
|
4.53
|
|
%
|
758
|
|
|
4.56
|
|
%
|
1,607
|
|
|
4.50
|
|
%
|
1,494
|
|
||||
Real estate and real estate joint ventures
|
4.46
|
|
%
|
109
|
|
|
3.42
|
|
%
|
79
|
|
|
3.93
|
|
%
|
192
|
|
|
3.31
|
|
%
|
152
|
|
||||
Policy loans
|
5.21
|
|
%
|
127
|
|
|
5.38
|
|
%
|
129
|
|
|
5.16
|
|
%
|
251
|
|
|
5.36
|
|
%
|
256
|
|
||||
Equity securities
|
4.94
|
|
%
|
15
|
|
|
4.58
|
|
%
|
31
|
|
|
4.28
|
|
%
|
31
|
|
|
4.74
|
|
%
|
62
|
|
||||
Other limited partnership interests
|
9.48
|
|
%
|
141
|
|
|
14.91
|
|
%
|
194
|
|
|
12.26
|
|
%
|
360
|
|
|
16.74
|
|
%
|
434
|
|
||||
Cash and short-term investments
|
2.30
|
|
%
|
61
|
|
|
1.61
|
|
%
|
34
|
|
|
2.09
|
|
%
|
107
|
|
|
1.52
|
|
%
|
67
|
|
||||
Other invested assets
|
|
|
231
|
|
|
|
|
170
|
|
|
|
|
|
459
|
|
|
|
|
|
384
|
|
||||||
Investment income
|
4.54
|
|
%
|
4,444
|
|
|
4.54
|
|
%
|
4,215
|
|
|
4.52
|
|
%
|
8,791
|
|
|
4.60
|
%
|
%
|
8,494
|
|
||||
Investment fees and expenses
|
(0.12
|
)
|
|
(117
|
)
|
|
(0.13
|
)
|
%
|
(123
|
)
|
|
(0.13
|
)
|
%
|
(245
|
)
|
|
(0.14
|
)
|
%
|
(257
|
)
|
||||
Net investment income including divested businesses (4)
|
4.42
|
|
%
|
4,327
|
|
|
4.41
|
|
|
4,092
|
|
|
4.39
|
|
%
|
8,546
|
|
|
4.46
|
|
%
|
8,237
|
|
||||
Less: net investment income from divested businesses (4)
|
|
|
—
|
|
|
|
|
(21
|
)
|
|
|
|
—
|
|
|
|
|
(48
|
)
|
||||||||
Net investment income, as reported on an adjusted basis (4)
|
|
|
$
|
4,327
|
|
|
|
|
$
|
4,113
|
|
|
|
|
$
|
8,546
|
|
|
|
|
$
|
8,285
|
|
(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 (“CSEs”), Unit-linked investments and FVO Brighthouse Common Stock. A yield is not presented for other invested assets, as it is not considered a meanin
gful measure of performance for this asset class.
|
(2)
|
Investment income from fixed maturity securities includes amounts from FVO Securities of $
8 million
and
$14 million
for the
three months
and
six months ended
June 30, 2018
, respectively, and
$16 million
and
$45 million
for the
three months
and
six months ended
June 30, 2017
, 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 the presentation of net investment income, as reported on an adjusted basis, compared to the most directly comparable GAAP financial measure.
See “— Non-GAAP and Other Financial Disclosures” for discussion of divested businesses.
|
|
June 30, 2018
|
|
December 31, 2017
|
|
||||||||
|
Estimated Fair Value
|
|
% of Total
|
|
Estimated Fair Value
|
|
% of Total
|
|
||||
|
(Dollars in millions)
|
|
||||||||||
Fixed maturity securities AFS
|
|
|
|
|
|
|
|
|
||||
Publicly-traded
|
$
|
259,153
|
|
|
84.6
|
%
|
$
|
262,078
|
|
|
84.8
|
%
|
Privately-placed
|
47,178
|
|
|
15.4
|
|
46,853
|
|
|
15.2
|
|
||
Total fixed maturity securities AFS
|
$
|
306,331
|
|
|
100.0
|
%
|
$
|
308,931
|
|
|
100.0
|
%
|
Percentage of cash and invested assets
|
67.3
|
%
|
|
|
|
67.6
|
%
|
|
|
|
||
Equity securities
|
|
|
|
|
|
|
|
|
||||
Publicly-traded
|
$
|
1,328
|
|
|
89.5
|
%
|
$
|
1,490
|
|
|
59.3
|
%
|
Privately-held
|
155
|
|
|
10.5
|
|
1,023
|
|
|
40.7
|
|
||
Total equity securities
|
$
|
1,483
|
|
|
100.0
|
%
|
$
|
2,513
|
|
|
100.0
|
%
|
Percentage of cash and invested assets
|
0.3
|
%
|
|
|
|
0.6
|
%
|
|
|
|
||
Perpetual securities included within fixed maturity securities AFS and equity securities
|
$
|
384
|
|
|
|
|
$
|
440
|
|
|
|
|
Redeemable preferred stock with a stated maturity included within fixed maturity securities AFS
|
$
|
562
|
|
|
|
|
$
|
884
|
|
|
|
|
|
June 30, 2018
|
||||||||||||
|
Fixed Maturity
Securities
|
|
|
Equity
Securities
|
|||||||||
|
(Dollars in millions)
|
|
|||||||||||
Level 1
|
|
|
|
|
|
|
|
|
|
||||
Quoted prices in active markets for identical assets
|
$
|
24,231
|
|
|
7.9
|
%
|
|
$
|
936
|
|
|
63.1
|
%
|
Level 2
|
|
|
|
|
|
|
|
|
|
||||
Independent pricing sources
|
263,854
|
|
|
86.1
|
|
|
104
|
|
|
7.0
|
|
||
Internal matrix pricing or discounted cash flow techniques
|
2,784
|
|
|
0.9
|
|
|
35
|
|
|
2.4
|
|
||
Significant other observable inputs
|
266,638
|
|
|
87.0
|
|
|
139
|
|
|
9.4
|
|
||
Level 3
|
|
|
|
|
|
|
|
|
|
||||
Independent pricing sources
|
11,306
|
|
|
3.7
|
|
|
286
|
|
|
19.3
|
|
||
Internal matrix pricing or discounted cash flow techniques
|
3,859
|
|
|
1.3
|
|
|
110
|
|
|
7.4
|
|
||
Independent broker quotations
|
297
|
|
|
0.1
|
|
|
12
|
|
|
0.8
|
|
||
Significant unobservable inputs
|
15,462
|
|
|
5.1
|
|
|
408
|
|
|
27.5
|
|
||
Total estimated fair value
|
$
|
306,331
|
|
|
100.0
|
%
|
|
$
|
1,483
|
|
|
100.0
|
%
|
•
|
The majority of the Level 3 fixed maturity securities AFS and equity securities were concentrated in three sectors: foreign and U.S. 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; less liquid investment grade corporate securities (included in U.S. and foreign corporate securities) and less liquid ABS and foreign government securities.
|
•
|
During the
three months ended
June 30, 2018
, Level 3 fixed maturity securities decreased by
$109 million
, or
1%
. The decrease was driven by transfers out of Level 3 in excess of transfers into Level 3 and a decrease in estimated fair value recognized in other comprehensive income (loss), partially offset by purchases in excess of sales.
|
•
|
During the
six months ended
June 30, 2018
, Level 3 fixed maturity securities decreased by
$807 million
, or
5%
. 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.
|
|
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)
|
||||||||||||||||||||||||||
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. corporate
|
$
|
37,065
|
|
|
$
|
36,572
|
|
|
$
|
6,178
|
|
|
$
|
3,536
|
|
|
$
|
675
|
|
|
$
|
—
|
|
|
$
|
84,026
|
|
Foreign government
|
53,567
|
|
|
5,178
|
|
|
2,093
|
|
|
839
|
|
|
4
|
|
|
1
|
|
|
61,682
|
|
|||||||
Foreign corporate
|
21,251
|
|
|
29,654
|
|
|
2,430
|
|
|
855
|
|
|
87
|
|
|
—
|
|
|
54,277
|
|
|||||||
U.S. government and agency
|
44,945
|
|
|
442
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45,387
|
|
|||||||
RMBS
|
27,183
|
|
|
371
|
|
|
218
|
|
|
37
|
|
|
13
|
|
|
23
|
|
|
27,845
|
|
|||||||
State and political subdivision
|
11,493
|
|
|
465
|
|
|
68
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,026
|
|
|||||||
ABS
|
12,015
|
|
|
648
|
|
|
199
|
|
|
1
|
|
|
3
|
|
|
—
|
|
|
12,866
|
|
|||||||
CMBS
|
8,063
|
|
|
112
|
|
|
3
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
8,222
|
|
|||||||
Total fixed maturity securities
|
$
|
215,582
|
|
|
$
|
73,442
|
|
|
$
|
11,189
|
|
|
$
|
5,268
|
|
|
$
|
826
|
|
|
$
|
24
|
|
|
$
|
306,331
|
|
Percentage of total
|
70.4
|
%
|
|
24.0
|
%
|
|
3.6
|
%
|
|
1.7
|
%
|
|
0.3
|
%
|
|
—
|
%
|
|
100.0
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. corporate
|
$
|
37,305
|
|
|
$
|
35,096
|
|
|
$
|
6,153
|
|
|
$
|
3,387
|
|
|
$
|
717
|
|
|
$
|
3
|
|
|
$
|
82,661
|
|
Foreign government
|
53,027
|
|
|
5,135
|
|
|
2,376
|
|
|
947
|
|
|
49
|
|
|
—
|
|
|
61,534
|
|
|||||||
Foreign corporate
|
21,925
|
|
|
30,214
|
|
|
2,616
|
|
|
759
|
|
|
55
|
|
|
—
|
|
|
55,569
|
|
|||||||
U.S. government and agency
|
47,067
|
|
|
327
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,394
|
|
|||||||
RMBS
|
28,209
|
|
|
297
|
|
|
224
|
|
|
61
|
|
|
9
|
|
|
—
|
|
|
28,800
|
|
|||||||
State and political subdivision
|
11,921
|
|
|
454
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
12,455
|
|
|||||||
ABS
|
11,311
|
|
|
760
|
|
|
215
|
|
|
1
|
|
|
3
|
|
|
1
|
|
|
12,291
|
|
|||||||
CMBS
|
8,065
|
|
|
113
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,227
|
|
|||||||
Total fixed maturity securities
|
$
|
218,830
|
|
|
$
|
72,396
|
|
|
$
|
11,711
|
|
|
$
|
5,155
|
|
|
$
|
833
|
|
|
$
|
6
|
|
|
$
|
308,931
|
|
Percentage of total
|
70.8
|
%
|
|
23.4
|
%
|
|
3.8
|
%
|
|
1.7
|
%
|
|
0.3
|
%
|
|
—
|
%
|
|
100.0
|
%
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||
|
Estimated
Fair
Value
|
|
% of
Total
|
|
Estimated
Fair
Value
|
|
% of
Total
|
||||||
|
(Dollars in millions)
|
||||||||||||
Industrial
|
$
|
42,117
|
|
|
30.5
|
%
|
|
$
|
42,273
|
|
|
30.6
|
%
|
Consumer
|
31,462
|
|
|
22.7
|
|
|
31,419
|
|
|
22.7
|
|
||
Finance
|
30,597
|
|
|
22.1
|
|
|
29,884
|
|
|
21.6
|
|
||
Utility
|
21,847
|
|
|
15.8
|
|
|
21,773
|
|
|
15.8
|
|
||
Communications
|
10,528
|
|
|
7.6
|
|
|
11,072
|
|
|
8.0
|
|
||
Other
|
1,752
|
|
|
1.3
|
|
|
1,809
|
|
|
1.3
|
|
||
Total
|
$
|
138,303
|
|
|
100.0
|
%
|
|
$
|
138,230
|
|
|
100.0
|
%
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||
|
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
|
$
|
15,184
|
|
|
54.5
|
%
|
|
$
|
714
|
|
|
$
|
15,388
|
|
|
53.4
|
%
|
|
$
|
913
|
|
Pass-through securities
|
12,661
|
|
|
45.5
|
|
|
(259
|
)
|
|
13,412
|
|
|
46.6
|
|
|
41
|
|
||||
Total RMBS
|
$
|
27,845
|
|
|
100.0
|
%
|
|
$
|
455
|
|
|
$
|
28,800
|
|
|
100.0
|
%
|
|
$
|
954
|
|
By risk profile:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
$
|
19,434
|
|
|
69.8
|
%
|
|
$
|
(227
|
)
|
|
$
|
20,010
|
|
|
69.5
|
%
|
|
$
|
274
|
|
Prime
|
1,217
|
|
|
4.4
|
|
|
63
|
|
|
1,209
|
|
|
4.2
|
|
|
73
|
|
||||
Alt-A
|
3,892
|
|
|
14.0
|
|
|
371
|
|
|
4,182
|
|
|
14.5
|
|
|
372
|
|
||||
Sub-prime
|
3,302
|
|
|
11.8
|
|
|
248
|
|
|
3,399
|
|
|
11.8
|
|
|
235
|
|
||||
Total RMBS
|
$
|
27,845
|
|
|
100.0
|
%
|
|
$
|
455
|
|
|
$
|
28,800
|
|
|
100.0
|
%
|
|
$
|
954
|
|
Ratings profile:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Rated Aaa/AAA
|
$
|
20,119
|
|
|
72.3
|
%
|
|
|
|
$
|
20,465
|
|
|
71.1
|
%
|
|
|
||||
Designated NAIC 1
|
$
|
27,183
|
|
|
97.6
|
%
|
|
|
|
$
|
28,209
|
|
|
97.9
|
%
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||
|
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
|
$
|
6,938
|
|
|
53.9
|
%
|
|
$
|
15
|
|
|
$
|
5,703
|
|
|
46.4
|
%
|
|
$
|
45
|
|
Credit card loans
|
828
|
|
|
6.4
|
|
|
—
|
|
|
1,686
|
|
|
13.7
|
|
|
1
|
|
||||
Student loans
|
1,353
|
|
|
10.5
|
|
|
16
|
|
|
1,266
|
|
|
10.3
|
|
|
(1
|
)
|
||||
Automobile loans
|
1,209
|
|
|
9.4
|
|
|
(3
|
)
|
|
1,193
|
|
|
9.7
|
|
|
—
|
|
||||
Foreign residential loans
|
921
|
|
|
7.2
|
|
|
17
|
|
|
965
|
|
|
7.9
|
|
|
20
|
|
||||
Consumer loans
|
534
|
|
|
4.2
|
|
|
1
|
|
|
605
|
|
|
4.9
|
|
|
6
|
|
||||
Other loans
|
1,083
|
|
|
8.4
|
|
|
2
|
|
|
873
|
|
|
7.1
|
|
|
7
|
|
||||
Total
|
$
|
12,866
|
|
|
100.0
|
%
|
|
$
|
48
|
|
|
$
|
12,291
|
|
|
100.0
|
%
|
|
$
|
78
|
|
Ratings profile:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Rated Aaa/AAA
|
$
|
7,574
|
|
|
58.9
|
%
|
|
|
|
$
|
7,108
|
|
|
57.8
|
%
|
|
|
||||
Designated NAIC 1
|
$
|
12,015
|
|
|
93.4
|
%
|
|
|
|
$
|
11,311
|
|
|
92.0
|
%
|
|
|
|
June 30, 2018
|
||||||||||||||||||||||||||||||||||||||||||||||
|
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
|
$
|
109
|
|
|
$
|
114
|
|
|
$
|
16
|
|
|
$
|
17
|
|
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
129
|
|
|
$
|
135
|
|
2011
|
168
|
|
|
179
|
|
|
35
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
203
|
|
|
213
|
|
||||||||||||
2012
|
250
|
|
|
255
|
|
|
240
|
|
|
237
|
|
|
232
|
|
|
233
|
|
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
728
|
|
|
731
|
|
||||||||||||
2013
|
732
|
|
|
755
|
|
|
651
|
|
|
663
|
|
|
288
|
|
|
285
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|
44
|
|
|
1,731
|
|
|
1,747
|
|
||||||||||||
2014
|
427
|
|
|
425
|
|
|
504
|
|
|
501
|
|
|
130
|
|
|
129
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,061
|
|
|
1,055
|
|
||||||||||||
2015
|
582
|
|
|
569
|
|
|
89
|
|
|
88
|
|
|
34
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
705
|
|
|
691
|
|
||||||||||||
2016
|
303
|
|
|
293
|
|
|
72
|
|
|
68
|
|
|
39
|
|
|
40
|
|
|
66
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
480
|
|
|
468
|
|
||||||||||||
2017
|
938
|
|
|
925
|
|
|
664
|
|
|
654
|
|
|
245
|
|
|
240
|
|
|
39
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
1,886
|
|
|
1,858
|
|
||||||||||||
2018
|
810
|
|
|
811
|
|
|
364
|
|
|
363
|
|
|
150
|
|
|
150
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,324
|
|
|
1,324
|
|
||||||||||||
Total
|
$
|
4,319
|
|
|
$
|
4,326
|
|
|
$
|
2,635
|
|
|
$
|
2,625
|
|
|
$
|
1,122
|
|
|
$
|
1,115
|
|
|
$
|
111
|
|
|
$
|
112
|
|
|
$
|
60
|
|
|
$
|
44
|
|
|
$
|
8,247
|
|
|
$
|
8,222
|
|
Ratings Distribution
|
|
|
52.6
|
%
|
|
|
|
31.9
|
%
|
|
|
|
13.6
|
%
|
|
|
|
1.4
|
%
|
|
|
|
0.5
|
%
|
|
|
|
100.0
|
%
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
December 31, 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
|
$
|
116
|
|
|
$
|
124
|
|
|
$
|
4
|
|
|
$
|
5
|
|
|
$
|
22
|
|
|
$
|
23
|
|
|
$
|
15
|
|
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
157
|
|
|
$
|
167
|
|
2011
|
170
|
|
|
184
|
|
|
34
|
|
|
35
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
204
|
|
|
219
|
|
||||||||||||
2012
|
289
|
|
|
302
|
|
|
257
|
|
|
263
|
|
|
230
|
|
|
237
|
|
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
783
|
|
|
809
|
|
||||||||||||
2013
|
787
|
|
|
835
|
|
|
717
|
|
|
748
|
|
|
285
|
|
|
292
|
|
|
60
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
1,849
|
|
|
1,920
|
|
||||||||||||
2014
|
537
|
|
|
552
|
|
|
513
|
|
|
522
|
|
|
129
|
|
|
130
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,179
|
|
|
1,204
|
|
||||||||||||
2015
|
1,122
|
|
|
1,140
|
|
|
191
|
|
|
196
|
|
|
117
|
|
|
120
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,430
|
|
|
1,456
|
|
||||||||||||
2016
|
401
|
|
|
404
|
|
|
69
|
|
|
68
|
|
|
40
|
|
|
40
|
|
|
65
|
|
|
66
|
|
|
|
|
|
|
575
|
|
|
578
|
|
||||||||||||||
2017
|
898
|
|
|
899
|
|
|
685
|
|
|
687
|
|
|
246
|
|
|
246
|
|
|
41
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
1,870
|
|
|
1,874
|
|
||||||||||||
Total
|
$
|
4,320
|
|
|
$
|
4,440
|
|
|
$
|
2,470
|
|
|
$
|
2,524
|
|
|
$
|
1,069
|
|
|
$
|
1,088
|
|
|
$
|
188
|
|
|
$
|
175
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,047
|
|
|
$
|
8,227
|
|
Ratings Distribution
|
|
|
54.0
|
%
|
|
|
|
30.7
|
%
|
|
|
|
13.2
|
%
|
|
|
|
2.1
|
%
|
|
|
|
—
|
%
|
|
|
|
100.0
|
%
|
|
June 30, 2018
|
|
December 31, 2017
|
|||||||||||||||||||||||||
|
|
Recorded
Investment
|
|
% of
Total
|
|
Valuation
Allowance
|
|
% of
Recorded Investment
|
|
Recorded
Investment
|
|
% of
Total
|
|
Valuation
Allowance
|
|
% of
Recorded Investment
|
||||||||||||
|
|
(Dollars in millions)
|
||||||||||||||||||||||||||
Commercial
|
|
$
|
46,075
|
|
|
65.1
|
%
|
|
$
|
227
|
|
|
0.5
|
%
|
|
$
|
44,375
|
|
|
64.8
|
%
|
|
$
|
214
|
|
|
0.5
|
%
|
Agricultural
|
|
13,293
|
|
|
18.8
|
|
|
41
|
|
|
0.3
|
%
|
|
13,014
|
|
|
19.0
|
|
|
41
|
|
|
0.3
|
%
|
||||
Residential
|
|
11,404
|
|
|
16.1
|
|
|
57
|
|
|
0.5
|
%
|
|
11,136
|
|
|
16.2
|
|
|
59
|
|
|
0.5
|
%
|
||||
Total
|
|
$
|
70,772
|
|
|
100.0
|
%
|
|
$
|
325
|
|
|
0.5
|
%
|
|
$
|
68,525
|
|
|
100.0
|
%
|
|
$
|
314
|
|
|
0.5
|
%
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Region
|
|
|
|
|
|
|
|
||||||||
Pacific
|
$
|
10,695
|
|
|
23.2
|
%
|
|
$
|
9,875
|
|
|
22.3
|
%
|
||
International
|
8,869
|
|
|
19.2
|
|
|
9,101
|
|
|
20.5
|
|
||||
Middle Atlantic
|
7,455
|
|
|
16.2
|
|
|
7,231
|
|
|
16.3
|
|
||||
South Atlantic
|
5,534
|
|
|
12.0
|
|
|
5,311
|
|
|
12.0
|
|
||||
West South Central
|
3,775
|
|
|
8.2
|
|
|
3,819
|
|
|
8.6
|
|
||||
East North Central
|
2,573
|
|
|
5.6
|
|
|
2,683
|
|
|
6.0
|
|
||||
Mountain
|
1,364
|
|
|
3.0
|
|
|
1,188
|
|
|
2.7
|
|
||||
New England
|
1,127
|
|
|
2.4
|
|
|
901
|
|
|
2.0
|
|
||||
East South Central
|
968
|
|
|
2.1
|
|
|
840
|
|
|
1.9
|
|
||||
West North Central
|
598
|
|
|
1.3
|
|
|
477
|
|
|
1.1
|
|
||||
Multi-Region and Other
|
3,117
|
|
|
6.8
|
|
|
2,949
|
|
|
6.6
|
|
||||
Total recorded investment
|
46,075
|
|
|
100.0
|
%
|
|
44,375
|
|
|
100.0
|
%
|
||||
Less: valuation allowances
|
227
|
|
|
|
|
214
|
|
|
|
||||||
Carrying value, net of valuation allowances
|
$
|
45,848
|
|
|
|
|
$
|
44,161
|
|
|
|
||||
Property Type
|
|
|
|
|
|
|
|
||||||||
Office
|
$
|
23,295
|
|
|
50.5
|
%
|
|
$
|
22,602
|
|
|
50.9
|
%
|
||
Retail
|
8,462
|
|
|
18.4
|
|
|
8,032
|
|
|
18.1
|
|
||||
Apartment
|
6,397
|
|
|
13.9
|
|
|
6,113
|
|
|
13.8
|
|
||||
Hotel
|
3,317
|
|
|
7.2
|
|
|
3,620
|
|
|
8.2
|
|
||||
Industrial
|
3,736
|
|
|
8.1
|
|
|
3,125
|
|
|
7.0
|
|
||||
Other
|
868
|
|
|
1.9
|
|
|
883
|
|
|
2.0
|
|
||||
Total recorded investment
|
46,075
|
|
|
100.0
|
%
|
|
44,375
|
|
|
100.0
|
%
|
||||
Less: valuation allowances
|
227
|
|
|
|
|
214
|
|
|
|
||||||
Carrying value, net of valuation allowances
|
$
|
45,848
|
|
|
|
|
$
|
44,161
|
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||
|
Carrying
Value
|
|
% of
Total
|
|
Carrying
Value
|
|
% of
Total |
||||||
|
(Dollars in millions)
|
||||||||||||
Freestanding derivatives with positive estimated fair values
|
$
|
7,868
|
|
|
46.3
|
%
|
|
$
|
8,551
|
|
|
49.5
|
%
|
Tax credit and renewable energy partnerships
|
2,582
|
|
|
15.2
|
|
|
3,167
|
|
|
18.3
|
|
||
Direct financing leases
|
1,346
|
|
|
7.9
|
|
|
1,323
|
|
|
7.7
|
|
||
Annuities funding structured settlement claims (1)
|
1,282
|
|
|
7.5
|
|
|
1,284
|
|
|
7.4
|
|
||
Leveraged leases, net of non-recourse debt
|
1,127
|
|
|
6.6
|
|
|
1,278
|
|
|
7.4
|
|
||
Federal Home Loan Bank common stock (2)
|
793
|
|
|
4.7
|
|
|
—
|
|
|
—
|
|
||
Operating joint ventures
|
610
|
|
|
3.6
|
|
|
539
|
|
|
3.1
|
|
||
Funds withheld
|
295
|
|
|
1.7
|
|
|
298
|
|
|
1.7
|
|
||
Other
|
1,114
|
|
|
6.5
|
|
|
823
|
|
|
4.8
|
|
||
Total
|
$
|
17,017
|
|
|
100.0
|
%
|
|
$
|
17,263
|
|
|
100.0
|
%
|
Percentage of cash and invested assets
|
3.7
|
%
|
|
|
|
3.8
|
%
|
|
|
(1)
|
See
Note 3
of the Notes to the Interim Condensed Consolidated Financial Statements.
|
(2)
|
See
Note 6
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
June 30, 2018
and
December 31, 2017
.
|
•
|
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
six months ended
June 30, 2018
and
2017
.
|
|
|
Three Months
Ended June 30, 2018 |
|
Six Months
Ended June 30, 2018 |
Gain (loss) recognized in net income (loss)
|
|
($106)
|
|
($94)
|
Percentage of gain (loss) attributable to observable inputs
|
|
20%
|
|
57%
|
Primary drivers of observable gain (loss)
|
|
Increases in certain equity index levels on equity derivatives and to a lesser extent increases in interest rates on interest rate total return swaps.
|
|
Increases in interest rates on interest rate total return swaps and to a lesser extent increases in certain equity index levels on equity derivatives.
|
Percentage of gain (loss) attributable to unobservable inputs
|
|
80%
|
|
43%
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
Credit Default Swaps
|
|
Gross
Notional
Amount
|
|
Estimated
Fair Value
|
|
Gross
Notional
Amount
|
|
Estimated
Fair Value
|
||||||||
|
|
(In millions)
|
||||||||||||||
Purchased
|
|
$
|
1,948
|
|
|
$
|
(22
|
)
|
|
$
|
2,020
|
|
|
$
|
(36
|
)
|
Written
|
|
11,836
|
|
|
191
|
|
|
11,375
|
|
|
271
|
|
||||
Total
|
|
$
|
13,784
|
|
|
$
|
169
|
|
|
$
|
13,395
|
|
|
$
|
235
|
|
(1)
|
Gains (losses) do not include earned income (expense) on credit default swaps.
|
|
June 30, 2018
|
||||||
Guaranteed Minimum Crediting Rate
|
Account
Value
|
|
Account
Value at
Guarantee
|
||||
|
(In millions)
|
||||||
Greater than 0% but less than 2%
|
$
|
4,799
|
|
|
$
|
4,678
|
|
Equal to or greater than 2% but less than 4%
|
$
|
1,798
|
|
|
$
|
1,798
|
|
Equal to or greater than 4%
|
$
|
741
|
|
|
$
|
713
|
|
|
June 30, 2018
|
||||||
Guaranteed Minimum Crediting Rate
|
Account
Value
|
|
Account
Value at
Guarantee
|
||||
|
(In millions)
|
||||||
Greater than 0% but less than 2%
|
$
|
138
|
|
|
$
|
—
|
|
Equal to or greater than 2% but less than 4%
|
$
|
1,108
|
|
|
$
|
121
|
|
Equal to or greater than 4%
|
$
|
4,606
|
|
|
$
|
4,596
|
|
|
June 30, 2018
|
||||||
Guaranteed Minimum Crediting Rate
|
Account
Value
|
|
Account
Value at
Guarantee
|
||||
|
(In millions)
|
||||||
Annuities
|
|
|
|
||||
Greater than 0% but less than 2%
|
$
|
23,981
|
|
|
$
|
2,108
|
|
Equal to or greater than 2% but less than 4%
|
$
|
1,207
|
|
|
$
|
397
|
|
Equal to or greater than 4%
|
$
|
2
|
|
|
$
|
2
|
|
Life & Other
|
|
|
|
||||
Greater than 0% but less than 2%
|
$
|
9,612
|
|
|
$
|
9,322
|
|
Equal to or greater than 2% but less than 4%
|
$
|
23,156
|
|
|
$
|
9,088
|
|
Equal to or greater than 4%
|
$
|
279
|
|
|
$
|
279
|
|
|
June 30, 2018
|
||||||
Guaranteed Minimum Crediting Rate
|
Account
Value
|
|
Account
Value at
Guarantee
|
||||
|
(In millions)
|
||||||
Greater than 0% but less than 2%
|
$
|
1,608
|
|
|
$
|
1,512
|
|
Equal to or greater than 2% but less than 4%
|
$
|
19,149
|
|
|
$
|
16,688
|
|
Equal to or greater than 4%
|
$
|
8,245
|
|
|
$
|
5,557
|
|
|
Future Policy
Benefits
|
|
Policyholder
Account Balances
|
||||||||||||
|
June 30, 2018
|
|
December 31, 2017
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||
|
(In millions)
|
||||||||||||||
Asia
|
|
|
|
|
|
|
|
||||||||
GMDB
|
$
|
44
|
|
|
$
|
38
|
|
|
$
|
—
|
|
|
$
|
—
|
|
GMAB
|
—
|
|
|
—
|
|
|
21
|
|
|
19
|
|
||||
GMWB
|
90
|
|
|
92
|
|
|
205
|
|
|
182
|
|
||||
EMEA
|
|
|
|
|
|
|
|
||||||||
GMDB
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
GMAB
|
—
|
|
|
—
|
|
|
13
|
|
|
15
|
|
||||
GMWB
|
33
|
|
|
42
|
|
|
(88
|
)
|
|
(90
|
)
|
||||
MetLife Holdings
|
|
|
|
|
|
|
|
||||||||
GMDB
|
322
|
|
|
304
|
|
|
—
|
|
|
—
|
|
||||
GMIB
|
606
|
|
|
581
|
|
|
(173
|
)
|
|
(125
|
)
|
||||
GMAB
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
GMWB
|
107
|
|
|
183
|
|
|
342
|
|
|
322
|
|
||||
Total
|
$
|
1,202
|
|
|
$
|
1,241
|
|
|
$
|
321
|
|
|
$
|
323
|
|
|
Total Account Value (1)
|
||||||
|
Asia & EMEA
|
|
MetLife Holdings
|
||||
|
(In millions)
|
||||||
Return of premium or five to seven year step-up
|
$
|
7,196
|
|
|
$
|
51,862
|
|
Annual step-up
|
—
|
|
|
3,501
|
|
||
Roll-up and step-up combination
|
—
|
|
|
6,197
|
|
||
Total
|
$
|
7,196
|
|
|
$
|
61,560
|
|
(1)
|
Total account value excludes $241 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
|
$
|
—
|
|
|
$
|
23,674
|
|
GMWB - non-life contingent (2)
|
2,196
|
|
|
2,990
|
|
||
GMWB - life-contingent
|
3,469
|
|
|
10,458
|
|
||
GMAB
|
1,110
|
|
|
466
|
|
||
Total
|
$
|
6,775
|
|
|
$
|
37,588
|
|
(1)
|
Total account value excludes $24.2 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 $999 million with a guarantee at annuitization.
|
|
Total Account Value
|
||
|
(In millions)
|
||
7-year setback, 2.5% interest rate
|
$
|
6,309
|
|
7-year setback, 1.5% interest rate
|
1,010
|
|
|
10-year setback, 1.5% interest rate
|
5,123
|
|
|
10-year mortality projection, 10-year setback, 1.0% interest rate
|
9,552
|
|
|
10-year mortality projection, 10-year setback, 0.5% interest rate
|
1,680
|
|
|
|
$
|
23,674
|
|
|
In-the-
Moneyness
|
|
Total
Account Value
|
|
% of Total
|
|
||
|
(In millions)
|
|||||||
In-the-money
|
30% +
|
|
$
|
287
|
|
|
1
|
%
|
|
20% to 30%
|
|
200
|
|
|
1
|
%
|
|
|
10% to 20%
|
|
402
|
|
|
2
|
%
|
|
|
0% to 10%
|
|
790
|
|
|
3
|
%
|
|
|
|
|
1,679
|
|
|
|
||
Out-of-the-money
|
-10% to 0%
|
|
1,731
|
|
|
7
|
%
|
|
|
-20% to -10%
|
|
3,189
|
|
|
14
|
%
|
|
|
-20% +
|
|
17,075
|
|
|
72
|
%
|
|
|
|
|
21,995
|
|
|
|
||
Total GMIBs
|
|
|
$
|
23,674
|
|
|
|
|
|
Instrument Type
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
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
|
|
$
|
8,344
|
|
|
$
|
61
|
|
|
$
|
15
|
|
|
$
|
16,080
|
|
|
$
|
433
|
|
|
$
|
22
|
|
|
|
Interest rate futures
|
|
1,949
|
|
|
—
|
|
|
5
|
|
|
3,060
|
|
|
1
|
|
|
4
|
|
||||||
|
|
Interest rate options
|
|
1,862
|
|
|
313
|
|
|
—
|
|
|
10,173
|
|
|
486
|
|
|
11
|
|
||||||
Foreign currency exchange rate
|
|
Foreign currency forwards
|
|
1,715
|
|
|
12
|
|
|
37
|
|
|
2,288
|
|
|
5
|
|
|
36
|
|
||||||
Equity market
|
|
Equity futures
|
|
3,036
|
|
|
3
|
|
|
3
|
|
|
3,781
|
|
|
17
|
|
|
4
|
|
||||||
|
|
Equity index options
|
|
9,627
|
|
|
392
|
|
|
666
|
|
|
9,546
|
|
|
383
|
|
|
690
|
|
||||||
|
|
Equity variance swaps
|
|
4,661
|
|
|
53
|
|
|
200
|
|
|
4,661
|
|
|
54
|
|
|
199
|
|
||||||
|
|
Equity total return swaps
|
|
1,014
|
|
|
13
|
|
|
18
|
|
|
1,117
|
|
|
—
|
|
|
41
|
|
||||||
|
|
Total
|
|
$
|
32,208
|
|
|
$
|
847
|
|
|
$
|
944
|
|
|
$
|
50,706
|
|
|
$
|
1,379
|
|
|
$
|
1,007
|
|
|
Six Months
Ended June 30, |
||||||
|
2018
|
|
2017
|
||||
|
(In millions)
|
||||||
Sources:
|
|
|
|
||||
Operating activities, net
|
$
|
6,904
|
|
|
$
|
5,499
|
|
Changes in policyholder account balances, net
|
1,882
|
|
|
2,467
|
|
||
Changes in payables for collateral under securities loaned and other transactions, net
|
1,633
|
|
|
1,205
|
|
||
Long-term debt issued
|
14
|
|
|
2,989
|
|
||
Financing element on certain derivative instruments and other derivative related transactions, net
|
12
|
|
|
—
|
|
||
Preferred stock issued, net of issuance costs
|
1,274
|
|
|
—
|
|
||
Other, net
|
85
|
|
|
—
|
|
||
Effect of change in foreign currency exchange rates on cash and cash equivalents
|
—
|
|
|
286
|
|
||
Total sources
|
11,804
|
|
|
12,446
|
|
||
Uses:
|
|
|
|
||||
Investing activities, net
|
4,764
|
|
|
7,149
|
|
||
Long-term debt repaid
|
200
|
|
|
9
|
|
||
Collateral financing arrangement repaid
|
36
|
|
|
2,836
|
|
||
Financing element on certain derivative instruments and other derivative related transactions, net
|
—
|
|
|
94
|
|
||
Treasury stock acquired in connection with share repurchases
|
2,156
|
|
|
1,810
|
|
||
Dividends on preferred stock
|
52
|
|
|
52
|
|
||
Dividends on common stock
|
844
|
|
|
868
|
|
||
Other, net
|
—
|
|
|
186
|
|
||
Effect of change in foreign currency exchange rates on cash and cash equivalents
|
141
|
|
|
—
|
|
||
Total uses
|
8,193
|
|
|
13,004
|
|
||
Net increase (decrease) in cash and cash equivalents
|
$
|
3,611
|
|
|
$
|
(558
|
)
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
(In millions)
|
||||||
Short-term debt (1)
|
$
|
479
|
|
|
$
|
477
|
|
Long-term debt (2)
|
$
|
14,531
|
|
|
$
|
15,680
|
|
Collateral financing arrangement
|
$
|
1,085
|
|
|
$
|
1,121
|
|
Junior subordinated debt securities
|
$
|
3,146
|
|
|
$
|
3,144
|
|
(1)
|
Includes $379 million and $377 million of debt that is non-recourse to MetLife, Inc. and MLIC, subject to customary exceptions, at
June 30, 2018
and
December 31, 2017
, respectively. Certain subsidiaries have pledged assets to secure this debt.
|
(2)
|
Includes $497 million and $523 million of debt that is non-recourse to MetLife, Inc. and MLIC, subject to customary exceptions, at
June 30, 2018
and
December 31, 2017
, respectively. Certain investment subsidiaries have pledged assets to secure this debt.
|
Declaration Date
|
|
Record Date
|
|
Payment Date
|
|
Preferred Stock Dividend
|
||||||||||||||
Series A
Per
Share
|
|
Series A
Aggregate
|
|
Series C
Per Share |
|
Series C
Aggregate |
|
Series D
Per Share |
|
Series D
Aggregate |
|
Series E
Per Share |
|
Series E
Aggregate |
||||||
|
|
|
|
|
|
(In millions, except per share data)
|
|
|
|
|
||||||||||
May 15, 2018
|
|
May 31, 2018
|
|
June 15, 2018
|
|
$0.256
|
|
$7
|
|
$26.250
|
|
$39
|
|
$—
|
|
$—
|
|
$—
|
|
$—
|
March 5, 2018
|
|
February 28, 2018
|
|
March 15, 2018
|
|
$0.250
|
|
6
|
|
$—
|
|
—
|
|
$—
|
|
—
|
|
$—
|
|
—
|
|
|
|
|
|
|
|
|
$13
|
|
|
|
$39
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$—
|
|
—
|
|
$—
|
|
—
|
|
$—
|
|
—
|
|
|
|
|
|
|
|
|
$13
|
|
|
|
$39
|
|
|
|
$—
|
|
|
|
$—
|
Declaration Date
|
|
Record Date
|
|
Payment Date
|
|
Common Stock Dividend
|
||||||
Per Share
|
|
Aggregate
|
||||||||||
|
|
|
|
|
|
(In millions, except per share data)
|
||||||
April 24, 2018
|
|
May 7, 2018
|
|
June 13, 2018
|
|
$
|
0.420
|
|
|
$
|
428
|
|
January 5, 2018
|
|
February 5, 2018
|
|
March 13, 2018
|
|
$
|
0.400
|
|
|
416
|
|
|
|
|
|
|
|
|
|
|
$
|
844
|
|
||
|
|
|
|
|
|
|
|
|
||||
April 25, 2017
|
|
May 8, 2017
|
|
June 13, 2017
|
|
$
|
0.400
|
|
|
$
|
431
|
|
January 6, 2017
|
|
February 6, 2017
|
|
March 13, 2017
|
|
$
|
0.400
|
|
|
437
|
|
|
|
|
|
|
|
|
|
|
$
|
868
|
|
Company
|
|
Paid (1)
|
|
|
Permitted Without
Approval (2)
|
||||
|
|
(In millions)
|
|||||||
Metropolitan Life Insurance Company
|
|
$
|
1,705
|
|
(3)
|
|
$
|
3,075
|
|
American Life Insurance Company
|
|
$
|
1,500
|
|
(4)
|
|
$
|
—
|
|
Metropolitan Property and Casualty Insurance Company
|
|
$
|
—
|
|
|
|
$
|
125
|
|
Metropolitan Tower Life Insurance Company (5)
|
|
$
|
—
|
|
|
|
$
|
73
|
|
General American Life Insurance Company (5)
|
|
$
|
—
|
|
|
|
N/A
|
|
(1)
|
Reflects all amounts paid, including those requiring regulatory approval.
|
(2)
|
Reflects dividend amounts that may be paid during
2018
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
2018
, some or all of such dividends may require regulatory approval.
|
(3)
|
Represents an ordinary dividend of $1.0 billion and an extraordinary dividend of
$705 million
that was paid with regulatory approval. The extraordinary dividend was paid in cash with proceeds from the sale to an affiliate of certain property, equipment, leasehold improvements and computer software that were non-admitted by Metropolitan Life Insurance Company for statutory accounting purposes. The affiliate received a capital contribution in cash from MetLife, Inc. to fund the purchase.
|
(4)
|
Represents an extraordinary dividend.
|
(5)
|
In April 2018, Metropolitan Tower Life Insurance Company (“MTL”) merged with General American Life Insurance Company. The surviving entity of the merger was MTL, which re-domesticated from Delaware to Nebraska immediately prior to the merger. Effective as of the date of re-domestication, MTL is subject to the dividend restrictions under Nebraska law.
See
Note 10
of the Notes to the Interim Condensed Consolidated Financial Statements for additional information.
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
(In millions)
|
||||||
Long-term debt — unaffiliated
|
$
|
13,474
|
|
|
$
|
14,599
|
|
Long-term debt — affiliated
|
$
|
1,938
|
|
|
$
|
2,000
|
|
Junior subordinated debt securities
|
$
|
2,455
|
|
|
$
|
2,454
|
|
Non-GAAP financial measures:
|
Comparable GAAP financial measures:
|
||
(i)
|
adjusted revenues
|
(i)
|
revenues
|
(ii)
|
adjusted expenses
|
(ii)
|
expenses
|
(iii)
|
adjusted earnings
|
(iii)
|
income (loss) from continuing operations, net of income tax
|
(iv)
|
adjusted earnings available to common
shareholders
|
(iv)
|
net income (loss) available to MetLife, Inc.’s common shareholders
|
•
|
adjusted earnings; and
|
•
|
adjusted 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 adjusted earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iii) excludes certain amounts related to contractholder-directed unit-linked investments, (iv) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP and (v) includes distributions of profits from certain other limited partnership interests that were previously accounted for under the cost method, but are now accounted for at estimated fair value, where the change in estimated fair value is recognized in net investment gains (losses) for GAAP; and
|
•
|
Other revenues is adjusted for settlements of foreign currency earnings hedges and excludes fees received in association with services provided under transition service agreements (“TSA fees”).
|
•
|
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. Other expenses includes TSA fees.
|
•
|
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 accumulated other comprehensive income other than foreign currency translation adjustments.
|
•
|
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 adjusted earnings available to common shareholders.
|
•
|
The Company completed its examination and analysis of the facts and circumstances giving rise to the material weakness under the supervision of MetLife, Inc.’s CRO. The Company is addressing the examination findings through ongoing remediation. The Company believes the remediation plan remains appropriate;
|
•
|
The Company continued its enhanced search practices to identify, contact, and act upon responses from “unresponsive and missing” plan annuitants; and
|
•
|
The Company enhanced the internal controls associated with the internal communication and escalation governance process it implemented for the 2017 Form 10-K filing, as well as the Form 10-Q filing for the first quarter of 2018.
|
•
|
The Company completed the examination and analysis of the facts and circumstances giving rise to the material weakness under the supervision of the Chief Auditor. The Company is addressing the examination findings through ongoing remediation. The Company believes the remediation plan remains appropriate.
|
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 |
|
Maximum Number
(or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2) |
||||||
April 1 — April 30, 2018
|
|
7,630,398
|
|
|
$
|
45.87
|
|
|
7,630,398
|
|
|
$
|
370,341,406
|
|
May 1 — May 31, 2018
|
|
1,843,087
|
|
|
$
|
47.00
|
|
|
1,843,087
|
|
|
$
|
1,783,713,107
|
|
June 1 — June 30, 2018
|
|
14,661,679
|
|
|
$
|
46.23
|
|
|
14,661,679
|
|
|
$
|
1,105,866,681
|
|
Total
|
|
24,135,164
|
|
|
|
|
24,135,164
|
|
|
|
|
(1)
|
Except for the foregoing, there were no shares of MetLife, Inc. common stock repurchased by MetLife, Inc.
|
(2)
|
On November 1, 2017, MetLife, Inc. announced that its Board of Directors authorized $2.0 billion of common stock repurchases, and on May 22, 2018, MetLife, Inc. announced that its Board of Directors authorized additional common stock repurchases of $1.5 billion. In June 2018, MetLife, Inc. completed all repurchases under the November 2017 authorization. At
June 30, 2018
, MetLife, Inc. had
$1.1 billion
of common stock repurchases remaining under the May 2018 authorization. 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,” and
Note 16
of the Notes to the Interim Condensed Consolidated Financial Statements. See also “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” and Note 15 of the Notes to the Consolidated Financial Statements included in the
2017
Annual Report.
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit No.
|
|
Description
|
|
Form
|
|
File Number
|
|
Exhibit
|
|
Filing Date
|
|
Filed or Furnished Herewith
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.1
|
|
|
8-K
|
|
001-15787
|
|
10.1
|
|
May 7, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.2
|
|
|
8-K
|
|
001-15787
|
|
10.1
|
|
June 18, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.3
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.4
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.5
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.6
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.7
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.8
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.9
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
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31.1
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X
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31.2
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X
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32.1
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X
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32.2
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X
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101.INS
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XBRL Instance Document.
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X
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101.SCH
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XBRL Taxonomy Extension Schema Document.
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X
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase Document.
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X
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101.LAB
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XBRL Taxonomy Extension Label Linkbase Document.
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X
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document.
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X
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document.
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X
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METLIFE, INC.
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||
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By:
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/s/ William C. O’Donnell
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Name: William C. O’Donnell
Title: Executive Vice President
and Chief Accounting Officer
(Authorized Signatory and Principal
Accounting Officer)
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Executive Deferred Compensation Plan
for
Oscar Schmidt
(Effective July 1, 2009)
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1.
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Purpose
. The purpose of the Plan is to provide Deferred Compensation, including adjustments for interest crediting during the deferral period as described herein, to the Participant. The Plan is intended to comply with the Legal Deferral Requirements, and shall be interpreted and administered consistent with that intent.
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2.
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Definitions
. Capitalized terms in the Plan, and their forms, shall have the following meanings:
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2.1.
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"Affiliate" shall mean MetLife, Inc. and any corporation, partnership, limited liability company, trust or other entity which directly, or indirectly through one or more intermediaries, controls, or is controlled by, MetLife, Inc.
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2.2.
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"Cause" shall mean, that the Participant, as determined in the sole discretion of the Company, has (i) engaged in conduct that is determined, in the sole discretion of the Company, to constitute a serious infraction of Company policy, theft of Company property or services or other dishonest conduct, or conduct otherwise injurious to the Company, (ii) demonstrated unacceptable lateness or absenteeism (iii) committed or omitted acts that would constitute grounds for termination of the Participant's employment with the Company or any Affiliate.
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2.3.
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"Code" shall mean the Internal Revenue Code of 1986, as amended from time to time, and any regulations issued thereunder.
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2.6.
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"Disabled" shall mean a condition due to injury or disease that results in a disability for which the (i) Participant has received a physician's certification of that the disability is a total and permanent disability, or (ii)(a) Participant has received a physician's certification that such disability is expected to last for a continuous period of at least 12 months and (b) the Participant is actually receiving disability payments from the Company or an Affiliate for at least three months.
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2.8.
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"ERISA" shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time, and any regulations issued thereunder.
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3.3.
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Determinations, interpretations, and other actions made or taken by the Plan Administrator shall be final, binding, and conclusive for all purposes and upon all individuals.
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3.4.
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The Plan Administrator may prescribe forms or procedures as the sole and exclusive means for the Participant to take actions authorized or allowed under the Plan. The Plan Administrator may issue communications as it deems necessary or appropriate in connection with the Plan
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3.5.
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Except to the extent prohibited by law, communication by the Plan Administrator (and by the Participant to the extent authorized by the Plan Administrator) of any document or writing, including any document or writing that must be executed by a party, may be in an electronic form of communication.
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4.
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Participation
. The Participant shall begin participation in the Plan as of the Effective Date and continue such participation until the Participant dies, becomes Disabled or experiences a Separation from Service.
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6.
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Interest Crediting on Deferred Compensation
. Interest Credits shall be applied to the Participant's Deferred Compensation on a daily basis in the amount of the fixed rate or stable value fund that exists under the Savings and Investment Plan for Employees of Metropolitan Life and Participating Affiliates at the time the Deferred Compensation is credited to the Participant's account. The amount of Interest Credits applied to the Participant's account shall be subject to prospective change at any time in the sole discretion of the Plan Administrator.
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8.
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Beneficiary Designation
. The Plan Administrator shall prescribe the form by which the Participant may designate a beneficiary or beneficiaries (who may be named contingently or successively, and among whom payments received under the Plan may be split as indicated by the individual) for purposes of receiving payment of the Participant's Total Benefit under the Plan after the death of such individual. Each designation will be effective only upon its receipt by the Plan Administrator during the life of the individual making the designation and shall revoke all prior beneficiary designations by that individual related to the Plan.
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9.4.
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Payment Recipient.
Except as otherwise provided in this Section 9.4, the Participant's Total Benefit will be made to the Participant. In the event of the Participant's death, as described in Section 9.3(b) above, the Participant's Total Benefit shall be paid to the beneficiary designated for that purpose by the Participant. If the Participant's designated beneficiary has not survived the Participant, or the Participant has designated no beneficiary for purposes of the Plan, such payment will be made to the Participant's estate. In the event the Participant becomes Disabled, as described in Section 9.3(c) above, the Participant's Total Benefit will be made to the Participant.
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9.5.
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Withholding and Effect of Taxes.
Payments under the Plan will be made after the withholding of any Federal, state, or local income, employment or other taxes legally obligated to be withheld, as determined by the Plan Administrator in its discretion. All tax liabilities arising out of deferrals under the Plan shall be the sole obligation of the Participant or his/her beneficiary, including but not limited to any tax liabilities arising out of the Legal Deferral Requirements, except as modified by agreement between the Company and the Participant. Withholding of any taxes or other items required by law, including but not limited to those required at the time of Vesting, may be made from other payments due to the Participant from any Affiliate.
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/s/William J. Toppeta
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/s/Charles O’Dell
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William J. Toppeta, President, International
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Witness
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Amendment Number One
to the
Executive Deferred Compensation Plan
for
Oscar Schmidt
(Effective July 1, 2009)
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2.14
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“Plan Administrator” shall mean the Plan Administrator for the MetLife Retirement Plan, including any person to whom such office has been delegated under the terms of such plan.
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I.
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Section 5.1 shall be replaced with the following:
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II.
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Section 6 shall be replaced with the following:
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By:
/s/ Susan M. Podlogar
Print Name:
Susan Podlogar
MetLife, Inc. Title:
EVP + CHRO
Date:
April 24, 2018
Witnessed by:
/s/Kathryn Kessel
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Acknowledged
/s/Oscar Schmidt
Oscar Schmidt
04/27/2018
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a.
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You will not without the prior written consent of an Executive Vice President of MetLife, Inc. (or his or her designee) during the period of eighteen (18) months following the termination of your employment with any MetLife family of company (the "Termination Date") (i) canvass or solicit or endeavour to canvass or solicit away from the Company or any Associated Company in competition therewith the custom or business of any person, firm or company which is at, or was at any time during the twelve (12) months prior to the Termination Date a client or customer of the Company or of any Associated Company with whom or which you had contact or business dealings during the course of your employment in that twelve-month period or in
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b.
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You will not during the term of your employment and/or after the Termination Date directly or indirectly make any disparaging remarks or statements regarding MetLife or any Associated Company and their officers or employees, or otherwise engage in conduct which is likely to injure the business and/or reputation of MetLife and/or any Associated Company regardless of location.
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c.
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In the event you seek or obtain employment or another business affiliation with any person or entity within eighteen (18) months following the Termination Date, you agree to inform that person or entity in writing of the terms and conditions of this Paragraph 3.
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1.
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The purpose of the Arrangement is to provide you with the following "Tax Equalization": the cost to you of individual income taxes you owe on account of your MetLife or business travel on payments made to you by the Company on and after the Effective Date and during the period covered by the Arrangement will equal the cost to you of income taxes you would have owed had that income been taxable solely in your country of residence. For purposes of the Arrangement, your country of residence and taxing jurisdiction is defined as Argentina. For purposes of Tax Equalization for business travel, the host country is U.S.
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2.
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The Company will pay amounts on your behalf (or reimburse you) and, to the extent necessary, take deductions or withhold amounts from your compensation as it reasonably determines necessary to effectuate Tax Equalization through December 31, 2018 Effective December 31, 2018 the Tax Equalization will end. You consent to such deductions or withholding. Information concerning tax withholding and how tax equalization costs will be reconciled can be found in Attachment "A" of this Arrangement.
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3.
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To effectuate the purposes of the Arrangement, you agree to use a firm chosen by MetLife for tax return preparation at a reasonable cost incurred by the Company and related services U.S. during the term of the Arrangement and through December 31, 2020.
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4.
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Due to certain tax law requirements, all data MetLife needs to determine any Tax Equalization for a tax year must be provided by you or your tax preparer within a time frame that permits MetLife or the tax preparer to determine any tax amounts it is reimbursing or paying by the later of the end of your tax year following the tax year in which (i) you remit taxes, or (ii) you conclude any tax audit or tax litigation.
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5.
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MetLife will apply the Arrangement exclusively to compensation paid (and therefore taxable) to you during the period described in this letter as covered by the Arrangement. MetLife will not bear the cost of any taxes, interest, penalties, audit response/defense, or related services you incur for periods outside those covered by the Arrangement. Consequently, the Arrangement does not apply to calendar years or tax periods prior to January 1, 2018 or to amounts such as long-term incentives paid in tax periods outside the Arrangement regardless of whether the compensation was fully or partially earned or vested during the period covered by the Arrangement.
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6.
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The Arrangement shall continue until the earliest of (a) the date your employment with MetLife is terminated for any reason, (b) the date MetLife relocates or reassigns you to, a country other than Argentina, (c) the date you decline to accept relocation from MetLife to country other than Argentina or (d) December 31, 2018 for purposes of the tax equalization services due to business travel into the U.S. and December 31, 2020 for purposes of U.S. tax return preparation services MetLife, Inc. also reserves the right to terminate the Arrangement if you do not comply with the immigration and/or work permit documentation requirements of any jurisdiction to which you travel on behalf of MetLife, or if at any time your job performance fails to meet MetLife's expectations.
|
7.
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Upon termination of your eligibility for Tax Equalization on December 31, 2018, payments made to you thereafter shall cease. You will be personally liable for any and all tax liability for payments made to you by MetLife on and after the date of the termination of the Arrangement as a result of business-related travel or otherwise at applicable rates, regardless of your continued employment with MetLife and/or residence in Argentina or otherwise.
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8.
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Neither this letter, nor the Arrangement described in this letter should be construed as a guarantee of employment for any specific period of time. This letter is the entire agreement between you and MetLife regarding the matters described herein, including any gross-up for taxes owed, and cannot be amended except by a written document signed by you and an officer of MetLife, Inc. with authorization or approval of the MetLife, Inc. Compensation Committee and Board of Directors if MetLife determines necessary. This letter has been authorized by the MetLife, Inc. Compensation Committee and Board of Directors.
|
•
|
Throughout 2018, the Company will deduct an amount equivalent to its estimate of your estimated Argentina tax rate (currently estimated at 35%) from your base salary and any supplemental payments (for example, bonuses incentive compensation or equity compensation) as and when they are paid or delivered to you.
|
•
|
MetLife’s tax equalization obligation terminates on December 31, 2018.
|
•
|
Through December 31, 2018 the tax preparer will review all tax deposits, filings, credits and exemptions claimed by you and the Company in relation to your Arrangement and will produce an equalization reconciliation statement. The purpose of this statement is to ensure that you do not pay more or less than the tax rate you would have owed if you had lived and worked only in Argentina for the periods covered by the Arrangement.
|
•
|
Deposits made by the Company to taxing authorities on your behalf from January 1, 2018 through December 31, 2018 could result in refund checks/deposits paid directly to you by various taxing authorities after December 31, 2018. To the extent that the equalization reconciliation statements show that with those refunds taken into account, the Company has borne a portion of your tax liability beyond what is the Company's responsibility under this agreement, you agree to pay any such excess amounts back to MetLife.
|
•
|
To the extent that the equalization reconciliation statements show that you paid more than your Argentina tax rate in taxes on your MetLife income paid while the Arrangement is in effect, MetLife will pay any additional amount necessary to reduce your tax obligation to the Argentina rate consistent with the Arrangement, within 30 days of being notified of any underpayment of taxes by the tax preparer.
|
•
|
MetLife understands that you may want additional details regarding the equalization reconciliation statement from the tax preparer. As a result, MetLife will expect re payment of any amount owed to MetLife, within 30 days of the date that the tax equalization reconciliation statement is first issued by the tax preparer.
|
•
|
While tax equalization continues through December 31, 2018, tax preparation support will continue through December 31, 2020. You will in all events bear the obligation to pay for the portion of tax preparation fees attributable to the period after December 31, 2020.
|
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 McCallion
|
John McCallion
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 McCallion
|
John McCallion
Executive Vice President and
Chief Financial Officer
|