|
|
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
13-4075851
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
200 Park Avenue, New York, N.Y.
|
|
10166-0188
|
(Address of principal executive offices)
|
|
(Zip Code)
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Large accelerated filer
|
þ
|
Accelerated filer
|
¨
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Non-accelerated filer
|
¨
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Smaller reporting company
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¨
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|
Emerging growth company
|
¨
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Page
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Item 1.
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Financial Statements (Unaudited) (at September 30, 2018 and December 31, 2017 and for the Three Months and Nine Months Ended September 30, 2018 and 2017)
|
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Item 2.
|
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Item 3.
|
||
Item 4.
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||
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|
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Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 6.
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||
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September 30, 2018
|
|
December 31, 2017
|
||||
Assets
|
|
|
|
|
||||
Investments:
|
|
|
|
|
||||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $293,268 and $286,069, respectively)
|
|
$
|
304,840
|
|
|
$
|
308,931
|
|
Equity securities, at estimated fair value
|
|
1,479
|
|
|
2,513
|
|
||
Contractholder-directed equity securities and fair value option securities, at estimated fair value (includes $5 and $6, respectively, relating to variable interest entities)
|
|
13,540
|
|
|
16,745
|
|
||
Mortgage loans (net of valuation allowances of $336 and $314, respectively; includes $323 and $520, respectively, under the fair value option)
|
|
72,461
|
|
|
68,731
|
|
||
Policy loans
|
|
9,703
|
|
|
9,669
|
|
||
Real estate and real estate joint ventures (includes $631 and $25, respectively, of real estate held-for-sale)
|
|
9,977
|
|
|
9,637
|
|
||
Other limited partnership interests
|
|
6,374
|
|
|
5,708
|
|
||
Short-term investments, principally at estimated fair value
|
|
5,231
|
|
|
4,870
|
|
||
Other invested assets (includes $128 and $125, respectively, relating to variable interest entities)
|
|
16,336
|
|
|
17,263
|
|
||
Total investments
|
|
439,941
|
|
|
444,067
|
|
||
Cash and cash equivalents, principally at estimated fair value (includes $10 and $12, respectively, relating to variable interest entities)
|
|
12,490
|
|
|
12,701
|
|
||
Accrued investment income
|
|
3,691
|
|
|
3,524
|
|
||
Premiums, reinsurance and other receivables (includes $3 and $3, respectively, relating to variable interest entities)
|
|
19,820
|
|
|
18,423
|
|
||
Deferred policy acquisition costs and value of business acquired
|
|
19,160
|
|
|
18,419
|
|
||
Goodwill
|
|
9,440
|
|
|
9,590
|
|
||
Other assets (includes $2 and $2, respectively, relating to variable interest entities)
|
|
8,493
|
|
|
8,167
|
|
||
Separate account assets
|
|
185,416
|
|
|
205,001
|
|
||
Total assets
|
|
$
|
698,451
|
|
|
$
|
719,892
|
|
Liabilities and Equity
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
||||
Future policy benefits
|
|
$
|
185,476
|
|
|
$
|
177,974
|
|
Policyholder account balances
|
|
184,094
|
|
|
182,518
|
|
||
Other policy-related balances
|
|
16,207
|
|
|
15,515
|
|
||
Policyholder dividends payable
|
|
709
|
|
|
682
|
|
||
Policyholder dividend obligation
|
|
456
|
|
|
2,121
|
|
||
Payables for collateral under securities loaned and other transactions
|
|
26,075
|
|
|
25,723
|
|
||
Short-term debt
|
|
290
|
|
|
477
|
|
||
Long-term debt (includes $5 and $6, respectively, at estimated fair value, relating to variable interest entities)
|
|
13,408
|
|
|
15,686
|
|
||
Collateral financing arrangement
|
|
1,073
|
|
|
1,121
|
|
||
Junior subordinated debt securities
|
|
3,146
|
|
|
3,144
|
|
||
Current income tax payable
|
|
166
|
|
|
311
|
|
||
Deferred income tax liability
|
|
4,924
|
|
|
6,767
|
|
||
Other liabilities (includes $1 and $3, respectively, relating to variable interest entities)
|
|
25,202
|
|
|
23,982
|
|
||
Separate account liabilities
|
|
185,416
|
|
|
205,001
|
|
||
Total liabilities
|
|
646,642
|
|
|
661,022
|
|
||
Contingencies, Commitments and Guarantees (Note 15)
|
|
|
|
|
||||
Equity
|
|
|
|
|
||||
MetLife, Inc.’s stockholders’ equity:
|
|
|
|
|
||||
Preferred stock, par value $0.01 per share; $3,405 and $2,100 aggregate liquidation preference, respectively
|
|
—
|
|
|
—
|
|
||
Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,171,428,557 and 1,168,710,101 shares issued, respectively; 986,644,069 and 1,043,588,396 shares outstanding, respectively
|
|
12
|
|
|
12
|
|
||
Additional paid-in capital
|
|
32,475
|
|
|
31,111
|
|
||
Retained earnings
|
|
27,331
|
|
|
26,527
|
|
||
Treasury stock, at cost; 184,784,488 and 125,121,705 shares, respectively
|
|
(9,193
|
)
|
|
(6,401
|
)
|
||
Accumulated other comprehensive income (loss)
|
|
1,000
|
|
|
7,427
|
|
||
Total MetLife, Inc.’s stockholders’ equity
|
|
51,625
|
|
|
58,676
|
|
||
Noncontrolling interests
|
|
184
|
|
|
194
|
|
||
Total equity
|
|
51,809
|
|
|
58,870
|
|
||
Total liabilities and equity
|
|
$
|
698,451
|
|
|
$
|
719,892
|
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
Premiums
|
|
$
|
10,242
|
|
|
$
|
10,876
|
|
|
$
|
34,573
|
|
|
$
|
29,421
|
|
Universal life and investment-type product policy fees
|
|
1,343
|
|
|
1,428
|
|
|
4,105
|
|
|
4,152
|
|
||||
Net investment income
|
|
4,486
|
|
|
4,295
|
|
|
12,704
|
|
|
12,909
|
|
||||
Other revenues
|
|
479
|
|
|
301
|
|
|
1,428
|
|
|
935
|
|
||||
Net investment gains (losses)
|
|
117
|
|
|
(606
|
)
|
|
(443
|
)
|
|
(414
|
)
|
||||
Net derivative gains (losses)
|
|
(378
|
)
|
|
(123
|
)
|
|
(88
|
)
|
|
(535
|
)
|
||||
Total revenues
|
|
16,289
|
|
|
16,171
|
|
|
52,279
|
|
|
46,468
|
|
||||
Expenses
|
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims
|
|
10,080
|
|
|
10,728
|
|
|
33,664
|
|
|
29,018
|
|
||||
Interest credited to policyholder account balances
|
|
1,334
|
|
|
1,338
|
|
|
3,527
|
|
|
4,081
|
|
||||
Policyholder dividends
|
|
327
|
|
|
302
|
|
|
933
|
|
|
925
|
|
||||
Other expenses
|
|
3,469
|
|
|
3,318
|
|
|
10,319
|
|
|
9,869
|
|
||||
Total expenses
|
|
15,210
|
|
|
15,686
|
|
|
48,443
|
|
|
43,893
|
|
||||
Income (loss) from continuing operations before provision for income tax
|
|
1,079
|
|
|
485
|
|
|
3,836
|
|
|
2,575
|
|
||||
Provision for income tax expense (benefit)
|
|
164
|
|
|
(398
|
)
|
|
770
|
|
|
(116
|
)
|
||||
Income (loss) from continuing operations, net of income tax
|
|
915
|
|
|
883
|
|
|
3,066
|
|
|
2,691
|
|
||||
Income (loss) from discontinued operations, net of income tax
|
|
—
|
|
|
(968
|
)
|
|
—
|
|
|
(986
|
)
|
||||
Net income (loss)
|
|
915
|
|
|
(85
|
)
|
|
3,066
|
|
|
1,705
|
|
||||
Less: Net income (loss) attributable to noncontrolling interests
|
|
3
|
|
|
6
|
|
|
10
|
|
|
12
|
|
||||
Net income (loss) attributable to MetLife, Inc.
|
|
912
|
|
|
(91
|
)
|
|
3,056
|
|
|
1,693
|
|
||||
Less: Preferred stock dividends
|
|
32
|
|
|
6
|
|
|
84
|
|
|
58
|
|
||||
Net income (loss) available to MetLife, Inc.’s common shareholders
|
|
$
|
880
|
|
|
$
|
(97
|
)
|
|
$
|
2,972
|
|
|
$
|
1,635
|
|
Comprehensive income (loss)
|
|
$
|
(940
|
)
|
|
$
|
(192
|
)
|
|
$
|
(4,273
|
)
|
|
$
|
4,668
|
|
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of income tax
|
|
2
|
|
|
10
|
|
|
10
|
|
|
16
|
|
||||
Comprehensive income (loss) attributable to MetLife, Inc.
|
|
$
|
(942
|
)
|
|
$
|
(202
|
)
|
|
$
|
(4,283
|
)
|
|
$
|
4,652
|
|
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.89
|
|
|
$
|
0.82
|
|
|
$
|
2.93
|
|
|
$
|
2.44
|
|
Diluted
|
|
$
|
0.88
|
|
|
$
|
0.81
|
|
|
$
|
2.91
|
|
|
$
|
2.42
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders per common share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.89
|
|
|
$
|
(0.09
|
)
|
|
$
|
2.93
|
|
|
$
|
1.52
|
|
Diluted
|
|
$
|
0.88
|
|
|
$
|
(0.09
|
)
|
|
$
|
2.91
|
|
|
$
|
1.51
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
(2,792
|
)
|
|
|
|
(2,792
|
)
|
|
|
|
(2,792
|
)
|
||||||||||||||
Stock-based compensation
|
|
|
|
|
|
90
|
|
|
|
|
|
|
|
|
90
|
|
|
|
|
90
|
|
|||||||||||||||
Dividends on preferred stock
|
|
|
|
|
|
|
|
(84
|
)
|
|
|
|
|
|
(84
|
)
|
|
|
|
(84
|
)
|
|||||||||||||||
Dividends on common stock
|
|
|
|
|
|
|
|
(1,263
|
)
|
|
|
|
|
|
(1,263
|
)
|
|
|
|
(1,263
|
)
|
|||||||||||||||
Change in equity of noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(20
|
)
|
|
(20
|
)
|
|||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
3,056
|
|
|
|
|
|
|
3,056
|
|
|
10
|
|
|
3,066
|
|
||||||||||||||
Other comprehensive income (loss), net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
(7,339
|
)
|
|
(7,339
|
)
|
|
—
|
|
|
(7,339
|
)
|
||||||||||||||
Balance at September 30, 2018
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
32,475
|
|
|
$
|
27,331
|
|
|
$
|
(9,193
|
)
|
|
$
|
1,000
|
|
|
$
|
51,625
|
|
|
$
|
184
|
|
|
$
|
51,809
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
(2,305
|
)
|
|
|
|
(2,305
|
)
|
|
|
|
(2,305
|
)
|
|||||||||||||||
Stock-based compensation
|
|
|
|
|
|
122
|
|
|
|
|
|
|
|
|
122
|
|
|
|
|
122
|
|
|||||||||||||||
Dividends on preferred stock
|
|
|
|
|
|
|
|
(58
|
)
|
|
|
|
|
|
(58
|
)
|
|
|
|
(58
|
)
|
|||||||||||||||
Dividends on common stock
|
|
|
|
|
|
|
|
(1,295
|
)
|
|
|
|
|
|
(1,295
|
)
|
|
|
|
(1,295
|
)
|
|||||||||||||||
Distribution of Brighthouse (Note 3)
|
|
|
|
|
|
|
|
(10,346
|
)
|
|
|
|
(1,320
|
)
|
|
(11,666
|
)
|
|
|
|
(11,666
|
)
|
||||||||||||||
Change in equity of noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
43
|
|
|
43
|
|
|||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
1,693
|
|
|
|
|
|
|
1,693
|
|
|
12
|
|
|
1,705
|
|
||||||||||||||
Other comprehensive income (loss), net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
2,959
|
|
|
2,959
|
|
|
4
|
|
|
2,963
|
|
||||||||||||||
Balance at September 30, 2017
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
31,066
|
|
|
$
|
24,677
|
|
|
$
|
(5,779
|
)
|
|
$
|
7,005
|
|
|
$
|
56,981
|
|
|
$
|
230
|
|
|
$
|
57,211
|
|
|
Nine Months
Ended September 30, |
||||||
|
2018
|
|
2017
|
||||
Net cash provided by (used in) operating activities
|
$
|
10,437
|
|
|
$
|
10,233
|
|
Cash flows from investing activities
|
|
|
|
||||
Sales, maturities and repayments of:
|
|
|
|
||||
Fixed maturity securities available-for-sale
|
78,227
|
|
|
66,544
|
|
||
Equity securities
|
323
|
|
|
904
|
|
||
Mortgage loans
|
6,878
|
|
|
6,721
|
|
||
Real estate and real estate joint ventures
|
561
|
|
|
689
|
|
||
Other limited partnership interests
|
514
|
|
|
882
|
|
||
Purchases of:
|
|
|
|
||||
Fixed maturity securities available-for-sale
|
(84,014
|
)
|
|
(76,010
|
)
|
||
Equity securities
|
(118
|
)
|
|
(705
|
)
|
||
Mortgage loans
|
(10,624
|
)
|
|
(9,988
|
)
|
||
Real estate and real estate joint ventures
|
(912
|
)
|
|
(1,078
|
)
|
||
Other limited partnership interests
|
(1,047
|
)
|
|
(1,064
|
)
|
||
Cash received in connection with freestanding derivatives
|
3,130
|
|
|
4,890
|
|
||
Cash paid in connection with freestanding derivatives
|
(3,745
|
)
|
|
(7,404
|
)
|
||
Cash disposed due to distribution of Brighthouse
|
—
|
|
|
(663
|
)
|
||
Purchases of businesses
|
—
|
|
|
(211
|
)
|
||
Net change in policy loans
|
(62
|
)
|
|
(16
|
)
|
||
Net change in short-term investments
|
(301
|
)
|
|
(209
|
)
|
||
Net change in other invested assets
|
174
|
|
|
(184
|
)
|
||
Other, net
|
24
|
|
|
(256
|
)
|
||
Net cash provided by (used in) investing activities
|
(10,992
|
)
|
|
(17,158
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Policyholder account balances:
|
|
|
|
||||
Deposits
|
72,037
|
|
|
67,565
|
|
||
Withdrawals
|
(67,869
|
)
|
|
(62,233
|
)
|
||
Net change in payables for collateral under securities loaned and other transactions
|
719
|
|
|
2,316
|
|
||
Long-term debt issued
|
24
|
|
|
3,657
|
|
||
Long-term debt repaid
|
(1,311
|
)
|
|
(60
|
)
|
||
Collateral financing arrangements repaid
|
(48
|
)
|
|
(2,852
|
)
|
||
Distribution of Brighthouse
|
—
|
|
|
(2,793
|
)
|
||
Financing element on certain derivative instruments and other derivative related transactions, net
|
(15
|
)
|
|
(109
|
)
|
||
Treasury stock acquired in connection with share repurchases
|
(2,792
|
)
|
|
(2,305
|
)
|
||
Preferred stock issued, net of issuance costs
|
1,274
|
|
|
—
|
|
||
Dividends on preferred stock
|
(84
|
)
|
|
(58
|
)
|
||
Dividends on common stock
|
(1,263
|
)
|
|
(1,295
|
)
|
||
Other, net
|
(141
|
)
|
|
(144
|
)
|
||
Net cash provided by (used in) financing activities
|
531
|
|
|
1,689
|
|
||
Effect of change in foreign currency exchange rates on cash and cash equivalents balances
|
(187
|
)
|
|
382
|
|
||
Change in cash and cash equivalents
|
(211
|
)
|
|
(4,854
|
)
|
||
Cash and cash equivalents, beginning of period
|
12,701
|
|
|
17,877
|
|
||
Cash and cash equivalents, end of period
|
$
|
12,490
|
|
|
$
|
13,023
|
|
Cash and cash equivalents, of disposed subsidiary, beginning of period
|
$
|
—
|
|
|
$
|
5,226
|
|
Cash and cash equivalents, of disposed subsidiary, end of period
|
$
|
—
|
|
|
$
|
—
|
|
Cash and cash equivalents, from continuing operations, beginning of period
|
$
|
12,701
|
|
|
$
|
12,651
|
|
Cash and cash equivalents, from continuing operations, end of period
|
$
|
12,490
|
|
|
$
|
13,023
|
|
Supplemental disclosures of cash flow information
|
|
|
|
||||
Net cash paid (received) for:
|
|
|
|
||||
Interest
|
$
|
809
|
|
|
$
|
806
|
|
Income tax
|
$
|
695
|
|
|
$
|
633
|
|
Non-cash transactions:
|
|
|
|
||||
Fixed maturity securities available-for-sale 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
|
|
|
$
|
—
|
|
Disposal of Brighthouse
|
|
|
|
||||
Assets disposed
|
$
|
—
|
|
|
$
|
225,502
|
|
Liabilities disposed
|
—
|
|
|
(210,999
|
)
|
||
Net assets disposed
|
$
|
—
|
|
|
$
|
14,503
|
|
Cash disposed
|
—
|
|
|
(3,456
|
)
|
||
Net non-cash disposed
|
$
|
—
|
|
|
$
|
11,047
|
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||
|
|
2017
|
||||||
|
|
(In millions)
|
||||||
Assumed variable annuity guarantee reserves
|
|
$
|
67
|
|
|
$
|
128
|
|
Group annuity reserves
|
|
(12
|
)
|
|
(30
|
)
|
||
Other revisions to continuing operations, net
|
|
(71
|
)
|
|
(5
|
)
|
||
Impact to income (loss) from continuing operations before provision for income tax
|
|
(16
|
)
|
|
93
|
|
||
Provision for income tax expense (benefit)
|
|
(6
|
)
|
|
32
|
|
||
Impact to income (loss) from continuing operations, net of income tax
|
|
(10
|
)
|
|
61
|
|
||
Other revisions to discontinued operations, net of income tax
|
|
—
|
|
|
3
|
|
||
Impact to net income (loss) available to MetLife, Inc.’s common shareholders
|
|
$
|
(10
|
)
|
|
$
|
64
|
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||||||||||
|
|
2017
|
||||||||||||||||||||||
Interim Condensed Consolidated
Statements of Operations
and Comprehensive Income (Loss)
|
|
As
Previously Reported |
|
Revisions
|
|
As
Revised |
|
As
Previously Reported |
|
Revisions
|
|
As
Revised |
||||||||||||
|
|
(In millions, except per share data)
|
||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net investment gains (losses)
|
|
$
|
(606
|
)
|
|
$
|
—
|
|
|
$
|
(606
|
)
|
|
$
|
(439
|
)
|
|
$
|
25
|
|
|
$
|
(414
|
)
|
Net derivative gains (losses)
|
|
$
|
(190
|
)
|
|
$
|
67
|
|
|
$
|
(123
|
)
|
|
$
|
(663
|
)
|
|
$
|
128
|
|
|
$
|
(535
|
)
|
Total revenues
|
|
$
|
16,104
|
|
|
$
|
67
|
|
|
$
|
16,171
|
|
|
$
|
46,315
|
|
|
$
|
153
|
|
|
$
|
46,468
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Policyholder benefits and claims
|
|
$
|
10,645
|
|
|
$
|
83
|
|
|
$
|
10,728
|
|
|
$
|
28,923
|
|
|
$
|
95
|
|
|
$
|
29,018
|
|
Other expenses
|
|
$
|
3,318
|
|
|
$
|
—
|
|
|
$
|
3,318
|
|
|
$
|
9,904
|
|
|
$
|
(35
|
)
|
|
$
|
9,869
|
|
Total expenses
|
|
$
|
15,603
|
|
|
$
|
83
|
|
|
$
|
15,686
|
|
|
$
|
43,833
|
|
|
$
|
60
|
|
|
$
|
43,893
|
|
Income (loss) from continuing operations before provision for income tax
|
|
$
|
501
|
|
|
$
|
(16
|
)
|
|
$
|
485
|
|
|
$
|
2,482
|
|
|
$
|
93
|
|
|
$
|
2,575
|
|
Provision for income tax expense (benefit)
|
|
$
|
(392
|
)
|
|
$
|
(6
|
)
|
|
$
|
(398
|
)
|
|
$
|
(148
|
)
|
|
$
|
32
|
|
|
$
|
(116
|
)
|
Income (loss) from continuing operations, net of income tax
|
|
$
|
893
|
|
|
$
|
(10
|
)
|
|
$
|
883
|
|
|
$
|
2,630
|
|
|
$
|
61
|
|
|
$
|
2,691
|
|
Income (loss) from discontinued operations, net of income tax
|
|
$
|
(968
|
)
|
|
$
|
—
|
|
|
$
|
(968
|
)
|
|
$
|
(989
|
)
|
|
$
|
3
|
|
|
$
|
(986
|
)
|
Net income (loss)
|
|
$
|
(75
|
)
|
|
$
|
(10
|
)
|
|
$
|
(85
|
)
|
|
$
|
1,641
|
|
|
$
|
64
|
|
|
$
|
1,705
|
|
Net income (loss) attributable to MetLife, Inc.
|
|
$
|
(81
|
)
|
|
$
|
(10
|
)
|
|
$
|
(91
|
)
|
|
$
|
1,629
|
|
|
$
|
64
|
|
|
$
|
1,693
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders
|
|
$
|
(87
|
)
|
|
$
|
(10
|
)
|
|
$
|
(97
|
)
|
|
$
|
1,571
|
|
|
$
|
64
|
|
|
$
|
1,635
|
|
Comprehensive income (loss)
|
|
$
|
(182
|
)
|
|
$
|
(10
|
)
|
|
$
|
(192
|
)
|
|
$
|
4,623
|
|
|
$
|
45
|
|
|
$
|
4,668
|
|
Comprehensive income (loss) attributable to MetLife, Inc.
|
|
$
|
(192
|
)
|
|
$
|
(10
|
)
|
|
$
|
(202
|
)
|
|
$
|
4,607
|
|
|
$
|
45
|
|
|
$
|
4,652
|
|
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic
|
|
$
|
0.83
|
|
|
$
|
(0.01
|
)
|
|
$
|
0.82
|
|
|
$
|
2.38
|
|
|
$
|
0.06
|
|
|
$
|
2.44
|
|
Diluted
|
|
$
|
0.82
|
|
|
$
|
(0.01
|
)
|
|
$
|
0.81
|
|
|
$
|
2.36
|
|
|
$
|
0.06
|
|
|
$
|
2.42
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic
|
|
$
|
(0.08
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
1.46
|
|
|
$
|
0.06
|
|
|
$
|
1.52
|
|
Diluted
|
|
$
|
(0.08
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
1.45
|
|
|
$
|
0.06
|
|
|
$
|
1.51
|
|
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)
|
|
$
|
1,629
|
|
|
$
|
64
|
|
|
$
|
1,693
|
|
Balance at September 30, 2017
|
|
$
|
24,410
|
|
|
$
|
267
|
|
|
$
|
24,677
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
||||||
Balance at December 31, 2016
|
|
$
|
5,347
|
|
|
$
|
19
|
|
|
$
|
5,366
|
|
Other comprehensive income (loss), net of income tax
|
|
$
|
2,978
|
|
|
$
|
(19
|
)
|
|
$
|
2,959
|
|
Balance at September 30, 2017
|
|
$
|
7,005
|
|
|
$
|
—
|
|
|
$
|
7,005
|
|
Total MetLife, Inc.’s Stockholders’ Equity
|
|
|
|
|
|
|
||||||
Balance at December 31, 2016
|
|
$
|
67,309
|
|
|
$
|
222
|
|
|
$
|
67,531
|
|
Balance at September 30, 2017
|
|
$
|
56,714
|
|
|
$
|
267
|
|
|
$
|
56,981
|
|
Total Equity
|
|
|
|
|
|
|
||||||
Balance at December 31, 2016
|
|
$
|
67,480
|
|
|
$
|
222
|
|
|
$
|
67,702
|
|
Balance at September 30, 2017
|
|
$
|
56,944
|
|
|
$
|
267
|
|
|
$
|
57,211
|
|
•
|
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 RIS 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 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 September 30, 2018
|
|
U.S.
|
|
Asia
|
|
Latin
America |
|
EMEA
|
|
MetLife
Holdings |
|
Corporate
& Other |
|
Total
|
|
Adjustments
|
|
Total
Consolidated
|
||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Premiums
|
|
$
|
6,431
|
|
|
$
|
1,689
|
|
|
$
|
692
|
|
|
$
|
514
|
|
|
$
|
949
|
|
|
$
|
(33
|
)
|
|
$
|
10,242
|
|
|
$
|
—
|
|
|
$
|
10,242
|
|
Universal life and investment-type product policy fees
|
|
252
|
|
|
428
|
|
|
229
|
|
|
105
|
|
|
286
|
|
|
—
|
|
|
1,300
|
|
|
43
|
|
|
1,343
|
|
|||||||||
Net investment income
|
|
1,787
|
|
|
830
|
|
|
339
|
|
|
73
|
|
|
1,375
|
|
|
58
|
|
|
4,462
|
|
|
24
|
|
|
4,486
|
|
|||||||||
Other revenues
|
|
206
|
|
|
12
|
|
|
7
|
|
|
15
|
|
|
70
|
|
|
86
|
|
|
396
|
|
|
83
|
|
|
479
|
|
|||||||||
Net investment gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
117
|
|
|
117
|
|
|||||||||
Net derivative gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(378
|
)
|
|
(378
|
)
|
|||||||||
Total revenues
|
|
8,676
|
|
|
2,959
|
|
|
1,267
|
|
|
707
|
|
|
2,680
|
|
|
111
|
|
|
16,400
|
|
|
(111
|
)
|
|
16,289
|
|
|||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
|
6,219
|
|
|
1,354
|
|
|
670
|
|
|
281
|
|
|
1,766
|
|
|
(38
|
)
|
|
10,252
|
|
|
155
|
|
|
10,407
|
|
|||||||||
Interest credited to policyholder account balances
|
|
457
|
|
|
381
|
|
|
102
|
|
|
24
|
|
|
238
|
|
|
—
|
|
|
1,202
|
|
|
132
|
|
|
1,334
|
|
|||||||||
Capitalization of DAC
|
|
(116
|
)
|
|
(478
|
)
|
|
(97
|
)
|
|
(109
|
)
|
|
(8
|
)
|
|
(2
|
)
|
|
(810
|
)
|
|
—
|
|
|
(810
|
)
|
|||||||||
Amortization of DAC and VOBA
|
|
128
|
|
|
366
|
|
|
5
|
|
|
110
|
|
|
13
|
|
|
2
|
|
|
624
|
|
|
108
|
|
|
732
|
|
|||||||||
Amortization of negative VOBA
|
|
—
|
|
|
(4
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|||||||||
Interest expense on debt
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
246
|
|
|
252
|
|
|
15
|
|
|
267
|
|
|||||||||
Other expenses
|
|
982
|
|
|
943
|
|
|
351
|
|
|
333
|
|
|
264
|
|
|
314
|
|
|
3,187
|
|
|
100
|
|
|
3,287
|
|
|||||||||
Total expenses
|
|
7,672
|
|
|
2,562
|
|
|
1,032
|
|
|
637
|
|
|
2,275
|
|
|
522
|
|
|
14,700
|
|
|
510
|
|
|
15,210
|
|
|||||||||
Provision for income tax expense (benefit)
|
|
209
|
|
|
131
|
|
|
65
|
|
|
15
|
|
|
78
|
|
|
(206
|
)
|
|
292
|
|
|
(128
|
)
|
|
164
|
|
|||||||||
Adjusted earnings
|
|
$
|
795
|
|
|
$
|
266
|
|
|
$
|
170
|
|
|
$
|
55
|
|
|
$
|
327
|
|
|
$
|
(205
|
)
|
|
1,408
|
|
|
|
|
|
|||||
Adjustments to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(111
|
)
|
|
|
|
|
|||||||||||||||||
Total expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(510
|
)
|
|
|
|
|
|||||||||||||||||
Provision for income tax (expense) benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
128
|
|
|
|
|
|
|||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
915
|
|
|
|
|
$
|
915
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Three Months Ended September 30, 2017
|
|
U.S.
|
|
Asia
|
|
Latin
America |
|
EMEA
|
|
MetLife
Holdings |
|
Corporate
& Other |
|
Total
|
|
Adjustments
|
|
Total
Consolidated
|
||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Premiums
|
|
$
|
6,987
|
|
|
$
|
1,696
|
|
|
$
|
701
|
|
|
$
|
527
|
|
|
$
|
989
|
|
|
$
|
13
|
|
|
$
|
10,913
|
|
|
$
|
(37
|
)
|
|
$
|
10,876
|
|
Universal life and investment-type product policy fees
|
|
247
|
|
|
458
|
|
|
229
|
|
|
109
|
|
|
349
|
|
|
—
|
|
|
1,392
|
|
|
36
|
|
|
1,428
|
|
|||||||||
Net investment income
|
|
1,602
|
|
|
762
|
|
|
299
|
|
|
77
|
|
|
1,390
|
|
|
26
|
|
|
4,156
|
|
|
139
|
|
|
4,295
|
|
|||||||||
Other revenues
|
|
197
|
|
|
11
|
|
|
7
|
|
|
(2
|
)
|
|
37
|
|
|
65
|
|
|
315
|
|
|
(14
|
)
|
|
301
|
|
|||||||||
Net investment gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(606
|
)
|
|
(606
|
)
|
|||||||||
Net derivative gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(123
|
)
|
|
(123
|
)
|
|||||||||
Total revenues
|
|
9,033
|
|
|
2,927
|
|
|
1,236
|
|
|
711
|
|
|
2,765
|
|
|
104
|
|
|
16,776
|
|
|
(605
|
)
|
|
16,171
|
|
|||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
|
6,916
|
|
|
1,223
|
|
|
640
|
|
|
282
|
|
|
1,732
|
|
|
7
|
|
|
10,800
|
|
|
230
|
|
|
11,030
|
|
|||||||||
Interest credited to policyholder account balances
|
|
376
|
|
|
349
|
|
|
99
|
|
|
26
|
|
|
255
|
|
|
—
|
|
|
1,105
|
|
|
233
|
|
|
1,338
|
|
|||||||||
Capitalization of DAC
|
|
(126
|
)
|
|
(420
|
)
|
|
(94
|
)
|
|
(109
|
)
|
|
(14
|
)
|
|
(2
|
)
|
|
(765
|
)
|
|
4
|
|
|
(761
|
)
|
|||||||||
Amortization of DAC and VOBA
|
|
118
|
|
|
424
|
|
|
—
|
|
|
78
|
|
|
(70
|
)
|
|
3
|
|
|
553
|
|
|
73
|
|
|
626
|
|
|||||||||
Amortization of negative VOBA
|
|
—
|
|
|
(24
|
)
|
|
(1
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(30
|
)
|
|
(2
|
)
|
|
(32
|
)
|
|||||||||
Interest expense on debt
|
|
2
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
279
|
|
|
284
|
|
|
—
|
|
|
284
|
|
|||||||||
Other expenses
|
|
933
|
|
|
905
|
|
|
377
|
|
|
347
|
|
|
322
|
|
|
237
|
|
|
3,121
|
|
|
80
|
|
|
3,201
|
|
|||||||||
Total expenses
|
|
8,219
|
|
|
2,457
|
|
|
1,022
|
|
|
619
|
|
|
2,227
|
|
|
524
|
|
|
15,068
|
|
|
618
|
|
|
15,686
|
|
|||||||||
Provision for income tax expense (benefit)
|
|
275
|
|
|
156
|
|
|
51
|
|
|
21
|
|
|
174
|
|
|
(90
|
)
|
|
587
|
|
|
(985
|
)
|
|
(398
|
)
|
|||||||||
Adjusted earnings
|
|
$
|
539
|
|
|
$
|
314
|
|
|
$
|
163
|
|
|
$
|
71
|
|
|
$
|
364
|
|
|
$
|
(330
|
)
|
|
1,121
|
|
|
|
|
|
|||||
Adjustments to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(605
|
)
|
|
|
|
|
|||||||||||||||||
Total expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(618
|
)
|
|
|
|
|
|||||||||||||||||
Provision for income tax (expense) benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
985
|
|
|
|
|
|
|||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
883
|
|
|
|
|
$
|
883
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2018
|
|
U.S.
|
|
Asia
|
|
Latin
America |
|
EMEA
|
|
MetLife
Holdings
|
|
Corporate
& Other
|
|
Total
|
|
Adjustments
|
|
Total
Consolidated |
||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Premiums
|
|
$
|
22,950
|
|
|
$
|
5,091
|
|
|
$
|
2,079
|
|
|
$
|
1,611
|
|
|
$
|
2,856
|
|
|
$
|
(14
|
)
|
|
$
|
34,573
|
|
|
$
|
—
|
|
|
$
|
34,573
|
|
Universal life and investment-type product policy fees
|
|
772
|
|
|
1,221
|
|
|
786
|
|
|
324
|
|
|
901
|
|
|
—
|
|
|
4,004
|
|
|
101
|
|
|
4,105
|
|
|||||||||
Net investment income
|
|
5,168
|
|
|
2,464
|
|
|
942
|
|
|
221
|
|
|
4,056
|
|
|
157
|
|
|
13,008
|
|
|
(304
|
)
|
|
12,704
|
|
|||||||||
Other revenues
|
|
613
|
|
|
40
|
|
|
24
|
|
|
51
|
|
|
205
|
|
|
246
|
|
|
1,179
|
|
|
249
|
|
|
1,428
|
|
|||||||||
Net investment gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(443
|
)
|
|
(443
|
)
|
|||||||||
Net derivative gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(88
|
)
|
|
(88
|
)
|
|||||||||
Total revenues
|
|
29,503
|
|
|
8,816
|
|
|
3,831
|
|
|
2,207
|
|
|
8,018
|
|
|
389
|
|
|
52,764
|
|
|
(485
|
)
|
|
52,279
|
|
|||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
|
22,590
|
|
|
3,934
|
|
|
1,976
|
|
|
861
|
|
|
5,022
|
|
|
(38
|
)
|
|
34,345
|
|
|
252
|
|
|
34,597
|
|
|||||||||
Interest credited to policyholder account balances
|
|
1,303
|
|
|
1,094
|
|
|
295
|
|
|
75
|
|
|
709
|
|
|
—
|
|
|
3,476
|
|
|
51
|
|
|
3,527
|
|
|||||||||
Capitalization of DAC
|
|
(336
|
)
|
|
(1,438
|
)
|
|
(282
|
)
|
|
(348
|
)
|
|
(28
|
)
|
|
(7
|
)
|
|
(2,439
|
)
|
|
(1
|
)
|
|
(2,440
|
)
|
|||||||||
Amortization of DAC and VOBA
|
|
357
|
|
|
993
|
|
|
136
|
|
|
324
|
|
|
214
|
|
|
5
|
|
|
2,029
|
|
|
103
|
|
|
2,132
|
|
|||||||||
Amortization of negative VOBA
|
|
—
|
|
|
(31
|
)
|
|
(1
|
)
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
(44
|
)
|
|
(1
|
)
|
|
(45
|
)
|
|||||||||
Interest expense on debt
|
|
8
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
6
|
|
|
798
|
|
|
817
|
|
|
45
|
|
|
862
|
|
|||||||||
Other expenses
|
|
2,908
|
|
|
2,871
|
|
|
1,052
|
|
|
1,023
|
|
|
815
|
|
|
805
|
|
|
9,474
|
|
|
336
|
|
|
9,810
|
|
|||||||||
Total expenses
|
|
26,830
|
|
|
7,423
|
|
|
3,181
|
|
|
1,923
|
|
|
6,738
|
|
|
1,563
|
|
|
47,658
|
|
|
785
|
|
|
48,443
|
|
|||||||||
Provision for income tax expense (benefit)
|
|
554
|
|
|
437
|
|
|
195
|
|
|
62
|
|
|
248
|
|
|
(599
|
)
|
|
897
|
|
|
(127
|
)
|
|
770
|
|
|||||||||
Adjusted earnings
|
|
$
|
2,119
|
|
|
$
|
956
|
|
|
$
|
455
|
|
|
$
|
222
|
|
|
$
|
1,032
|
|
|
$
|
(575
|
)
|
|
4,209
|
|
|
|
|
|
|||||
Adjustments to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(485
|
)
|
|
|
|
|
|||||||||||||||||
Total expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(785
|
)
|
|
|
|
|
|||||||||||||||||
Provision for income tax (expense) benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
127
|
|
|
|
|
|
|||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,066
|
|
|
|
|
$
|
3,066
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2017
|
|
U.S.
|
|
Asia
|
|
Latin
America
|
|
EMEA
|
|
MetLife
Holdings
|
|
Corporate
& Other
|
|
Total
|
|
Adjustments
|
|
Total
Consolidated |
||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Premiums
|
|
$
|
18,049
|
|
|
$
|
5,063
|
|
|
$
|
1,993
|
|
|
$
|
1,534
|
|
|
$
|
3,070
|
|
|
$
|
59
|
|
|
$
|
29,768
|
|
|
$
|
(347
|
)
|
|
$
|
29,421
|
|
Universal life and investment-type product policy fees
|
|
763
|
|
|
1,199
|
|
|
764
|
|
|
296
|
|
|
1,056
|
|
|
—
|
|
|
4,078
|
|
|
74
|
|
|
4,152
|
|
|||||||||
Net investment income
|
|
4,789
|
|
|
2,193
|
|
|
891
|
|
|
229
|
|
|
4,232
|
|
|
107
|
|
|
12,441
|
|
|
468
|
|
|
12,909
|
|
|||||||||
Other revenues
|
|
600
|
|
|
32
|
|
|
24
|
|
|
43
|
|
|
170
|
|
|
185
|
|
|
1,054
|
|
|
(119
|
)
|
|
935
|
|
|||||||||
Net investment gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(414
|
)
|
|
(414
|
)
|
|||||||||
Net derivative gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(535
|
)
|
|
(535
|
)
|
|||||||||
Total revenues
|
|
24,201
|
|
|
8,487
|
|
|
3,672
|
|
|
2,102
|
|
|
8,528
|
|
|
351
|
|
|
47,341
|
|
|
(873
|
)
|
|
46,468
|
|
|||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
|
18,047
|
|
|
3,785
|
|
|
1,869
|
|
|
821
|
|
|
5,182
|
|
|
33
|
|
|
29,737
|
|
|
206
|
|
|
29,943
|
|
|||||||||
Interest credited to policyholder account balances
|
|
1,086
|
|
|
1,003
|
|
|
275
|
|
|
75
|
|
|
767
|
|
|
1
|
|
|
3,207
|
|
|
874
|
|
|
4,081
|
|
|||||||||
Capitalization of DAC
|
|
(342
|
)
|
|
(1,268
|
)
|
|
(264
|
)
|
|
(301
|
)
|
|
(71
|
)
|
|
(6
|
)
|
|
(2,252
|
)
|
|
34
|
|
|
(2,218
|
)
|
|||||||||
Amortization of DAC and VOBA
|
|
346
|
|
|
1,005
|
|
|
146
|
|
|
260
|
|
|
143
|
|
|
5
|
|
|
1,905
|
|
|
40
|
|
|
1,945
|
|
|||||||||
Amortization of negative VOBA
|
|
—
|
|
|
(91
|
)
|
|
(1
|
)
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
(105
|
)
|
|
(8
|
)
|
|
(113
|
)
|
|||||||||
Interest expense on debt
|
|
8
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
22
|
|
|
833
|
|
|
867
|
|
|
(16
|
)
|
|
851
|
|
|||||||||
Other expenses
|
|
2,756
|
|
|
2,675
|
|
|
1,060
|
|
|
995
|
|
|
1,032
|
|
|
614
|
|
|
9,132
|
|
|
272
|
|
|
9,404
|
|
|||||||||
Total expenses
|
|
21,901
|
|
|
7,109
|
|
|
3,089
|
|
|
1,837
|
|
|
7,075
|
|
|
1,480
|
|
|
42,491
|
|
|
1,402
|
|
|
43,893
|
|
|||||||||
Provision for income tax expense (benefit)
|
|
771
|
|
|
459
|
|
|
123
|
|
|
47
|
|
|
465
|
|
|
(630
|
)
|
|
1,235
|
|
|
(1,351
|
)
|
|
(116
|
)
|
|||||||||
Adjusted earnings
|
|
$
|
1,529
|
|
|
$
|
919
|
|
|
$
|
460
|
|
|
$
|
218
|
|
|
$
|
988
|
|
|
$
|
(499
|
)
|
|
3,615
|
|
|
|
|
|
|||||
Adjustments to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(873
|
)
|
|
|
|
|
|||||||||||||||||
Total expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,402
|
)
|
|
|
|
|
|||||||||||||||||
Provision for income tax (expense) benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,351
|
|
|
|
|
|
|||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,691
|
|
|
|
|
$
|
2,691
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
|
(In millions)
|
||||||
U.S.
|
|
$
|
251,231
|
|
|
$
|
255,428
|
|
Asia
|
|
142,033
|
|
|
136,928
|
|
||
Latin America
|
|
73,973
|
|
|
79,670
|
|
||
EMEA
|
|
29,024
|
|
|
30,500
|
|
||
MetLife Holdings
|
|
173,351
|
|
|
183,160
|
|
||
Corporate & Other
|
|
28,839
|
|
|
34,206
|
|
||
Total
|
|
$
|
698,451
|
|
|
$
|
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)
|
||||||||||||||||
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
|
Three and
Nine Months
Ended
September 30,
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||
|
|
2018 (1)
|
|
2018 (1)
|
|
2017 (1)
|
|
2017 (2)
|
|
2017 (2)
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Premiums
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reinsurance assumed
|
|
$
|
96
|
|
|
$
|
297
|
|
|
$
|
70
|
|
|
$
|
36
|
|
|
$
|
248
|
|
Reinsurance ceded
|
|
(3
|
)
|
|
(9
|
)
|
|
(2
|
)
|
|
1
|
|
|
(7
|
)
|
|||||
Net premiums
|
|
$
|
93
|
|
|
$
|
288
|
|
|
$
|
68
|
|
|
$
|
37
|
|
|
$
|
241
|
|
Universal life and investment-type product policy fees
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reinsurance assumed
|
|
$
|
(4
|
)
|
|
$
|
(6
|
)
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
$
|
(6
|
)
|
Reinsurance ceded
|
|
(23
|
)
|
|
(67
|
)
|
|
(22
|
)
|
|
(8
|
)
|
|
(55
|
)
|
|||||
Net universal life and investment-type product policy fees
|
|
$
|
(27
|
)
|
|
$
|
(73
|
)
|
|
$
|
(23
|
)
|
|
$
|
(9
|
)
|
|
$
|
(61
|
)
|
Policyholder benefits and claims
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reinsurance assumed
|
|
$
|
81
|
|
|
$
|
243
|
|
|
$
|
55
|
|
|
$
|
30
|
|
|
$
|
196
|
|
Reinsurance ceded
|
|
(5
|
)
|
|
(15
|
)
|
|
(6
|
)
|
|
(3
|
)
|
|
(16
|
)
|
|||||
Net policyholder benefits and claims
|
|
$
|
76
|
|
|
$
|
228
|
|
|
$
|
49
|
|
|
$
|
27
|
|
|
$
|
180
|
|
Interest credited to policyholder account balances
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reinsurance assumed
|
|
$
|
3
|
|
|
$
|
10
|
|
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
10
|
|
Reinsurance ceded
|
|
(18
|
)
|
|
(53
|
)
|
|
(12
|
)
|
|
(6
|
)
|
|
(42
|
)
|
|||||
Net interest credited to policyholder account balances
|
|
$
|
(15
|
)
|
|
$
|
(43
|
)
|
|
$
|
(9
|
)
|
|
$
|
(5
|
)
|
|
$
|
(32
|
)
|
Other expenses
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reinsurance assumed
|
|
$
|
15
|
|
|
$
|
80
|
|
|
$
|
6
|
|
|
$
|
4
|
|
|
$
|
10
|
|
Reinsurance ceded
|
|
(4
|
)
|
|
(22
|
)
|
|
(7
|
)
|
|
(3
|
)
|
|
(28
|
)
|
|||||
Net other expenses
|
|
$
|
11
|
|
|
$
|
58
|
|
|
$
|
(1
|
)
|
|
$
|
1
|
|
|
$
|
(18
|
)
|
(1)
|
Includes transactions after the Separation.
|
(2)
|
Includes transactions prior to the Separation.
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||
|
2017
|
||||||
|
(In millions)
|
||||||
Revenues
|
|
|
|
||||
Premiums
|
$
|
116
|
|
|
$
|
820
|
|
Universal life and investment-type product policy fees
|
320
|
|
|
2,201
|
|
||
Net investment income
|
243
|
|
|
1,783
|
|
||
Other revenues
|
27
|
|
|
150
|
|
||
Total net investment gains (losses)
|
1
|
|
|
(50
|
)
|
||
Net derivative gains (losses)
|
(171
|
)
|
|
(1,061
|
)
|
||
Total revenues
|
536
|
|
|
3,843
|
|
||
Expenses
|
|
|
|
||||
Policyholder benefits and claims
|
335
|
|
|
2,217
|
|
||
Interest credited to policyholder account balances
|
89
|
|
|
620
|
|
||
Policyholder dividends
|
2
|
|
|
16
|
|
||
Other expenses
|
108
|
|
|
853
|
|
||
Total expenses
|
534
|
|
|
3,706
|
|
||
Income (loss) from discontinued operations before provision for income tax and loss on disposal of discontinued operations
|
2
|
|
|
137
|
|
||
Provision for income tax expense (benefit)
|
(10
|
)
|
|
(48
|
)
|
||
Income (loss) from discontinued operations before loss on disposal of discontinued operations, net of income tax
|
12
|
|
|
185
|
|
||
Transaction costs associated with the Separation, net of income tax
|
(25
|
)
|
|
(216
|
)
|
||
Tax charges associated with the Separation
|
(955
|
)
|
|
(955
|
)
|
||
Income (loss) on disposal of discontinued operations, net of income tax
|
(980
|
)
|
|
(1,171
|
)
|
||
Income (loss) from discontinued operations, net of income tax
|
$
|
(968
|
)
|
|
$
|
(986
|
)
|
|
|
September 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)
|
|
$
|
62,618
|
|
|
|
$
|
24,387
|
|
|
|
$
|
66,724
|
|
|
|
$
|
26,223
|
|
|
||||
Separate account value (1)
|
|
$
|
42,881
|
|
|
|
$
|
22,550
|
|
|
|
$
|
45,431
|
|
|
|
$
|
24,336
|
|
|
||||
Net amount at risk (2)
|
|
$
|
1,516
|
|
(4
|
)
|
|
$
|
465
|
|
(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
|
|
|
|
$
|
1,305
|
|
|
|
N/A
|
|
|
|
$
|
1,424
|
|
|
||||||
Net amount at risk
|
|
N/A
|
|
|
|
$
|
550
|
|
(6
|
)
|
|
N/A
|
|
|
|
$
|
569
|
|
(6
|
)
|
||||
Average attained age of contractholders
|
|
N/A
|
|
|
|
50 years
|
|
|
|
N/A
|
|
|
|
50 years
|
|
|
|
|
September 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)
|
|
$
|
9,254
|
|
|
$
|
3,102
|
|
|
$
|
9,036
|
|
|
$
|
3,207
|
|
Net amount at risk (7)
|
|
$
|
64,312
|
|
|
$
|
15,804
|
|
|
$
|
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.
|
|
|
Nine Months
Ended September 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
|
|
18,386
|
|
|
18,702
|
|
||
Prior periods (2)
|
|
256
|
|
|
156
|
|
||
Total incurred
|
|
18,642
|
|
|
18,858
|
|
||
Paid related to:
|
|
|
|
|
||||
Current period
|
|
(13,033
|
)
|
|
(14,106
|
)
|
||
Prior periods
|
|
(4,896
|
)
|
|
(4,014
|
)
|
||
Total paid
|
|
(17,929
|
)
|
|
(18,120
|
)
|
||
Net balance, end of period
|
|
15,609
|
|
|
14,927
|
|
||
Add: Reinsurance recoverables
|
|
2,189
|
|
|
2,212
|
|
||
Balance, end of period (included in future policy benefits and other policy-related balances)
|
|
$
|
17,798
|
|
|
$
|
17,139
|
|
(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. As a result, at September 30, 2017, Total incurred increased by
$734 million
. Additionally, at September 30, 2017, the Net balance decreased by
$87 million
and the Reinsurance recoverables decreased by
$1 million
from those amounts previously reported in MetLife, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017. The adjustments to the Net balance, at September 30, 2017, are primarily to correct for improper classifications between components of the rollforward.
|
(2)
|
During the nine months ended
September 30, 2018
,
claims and claim adjustment expenses associated with prior years
increased due to events incurred in prior years but reported during current year
. During the nine months ended
September 30, 2017
, claims and claim adjustment expenses associated with prior periods increased due to unfavorable claims experience.
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
|
(In millions)
|
||||||
Closed Block Liabilities
|
|
|
|
|
||||
Future policy benefits
|
|
$
|
40,106
|
|
|
$
|
40,463
|
|
Other policy-related balances
|
|
287
|
|
|
222
|
|
||
Policyholder dividends payable
|
|
476
|
|
|
437
|
|
||
Policyholder dividend obligation
|
|
456
|
|
|
2,121
|
|
||
Deferred income tax liability
|
|
2
|
|
|
—
|
|
||
Other liabilities
|
|
472
|
|
|
212
|
|
||
Total closed block liabilities
|
|
41,799
|
|
|
43,455
|
|
||
Assets Designated to the Closed Block
|
|
|
|
|
||||
Investments:
|
|
|
|
|
||||
Fixed maturity securities available-for-sale, at estimated fair value
|
|
25,803
|
|
|
27,904
|
|
||
Equity securities, at estimated fair value
|
|
66
|
|
|
70
|
|
||
Mortgage loans
|
|
6,474
|
|
|
5,878
|
|
||
Policy loans
|
|
4,524
|
|
|
4,548
|
|
||
Real estate and real estate joint ventures
|
|
580
|
|
|
613
|
|
||
Other invested assets
|
|
686
|
|
|
731
|
|
||
Total investments
|
|
38,133
|
|
|
39,744
|
|
||
Accrued investment income
|
|
469
|
|
|
477
|
|
||
Premiums, reinsurance and other receivables; cash and cash equivalents
|
|
92
|
|
|
14
|
|
||
Current income tax recoverable
|
|
52
|
|
|
35
|
|
||
Deferred income tax asset
|
|
—
|
|
|
36
|
|
||
Total assets designated to the closed block
|
|
38,746
|
|
|
40,306
|
|
||
Excess of closed block liabilities over assets designated to the closed block
|
|
3,053
|
|
|
3,149
|
|
||
Amounts included in AOCI:
|
|
|
|
|
||||
Unrealized investment gains (losses), net of income tax
|
|
1,110
|
|
|
1,863
|
|
||
Unrealized gains (losses) on derivatives, net of income tax
|
|
17
|
|
|
(7
|
)
|
||
Allocated to policyholder dividend obligation, net of income tax
|
|
(360
|
)
|
|
(1,379
|
)
|
||
Total amounts included in AOCI
|
|
767
|
|
|
477
|
|
||
Maximum future earnings to be recognized from closed block assets and liabilities
|
|
$
|
3,820
|
|
|
$
|
3,626
|
|
|
|
Nine Months
Ended September 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)
|
|
(1,665
|
)
|
|
190
|
|
||
Balance, end of period
|
|
$
|
456
|
|
|
$
|
2,121
|
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(In millions)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
Premiums
|
|
$
|
405
|
|
|
$
|
413
|
|
|
$
|
1,202
|
|
|
$
|
1,247
|
|
Net investment income
|
|
443
|
|
|
450
|
|
|
1,318
|
|
|
1,368
|
|
||||
Net investment gains (losses)
|
|
7
|
|
|
—
|
|
|
(46
|
)
|
|
(10
|
)
|
||||
Net derivative gains (losses)
|
|
2
|
|
|
(6
|
)
|
|
12
|
|
|
(24
|
)
|
||||
Total revenues
|
|
857
|
|
|
857
|
|
|
2,486
|
|
|
2,581
|
|
||||
Expenses
|
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims
|
|
641
|
|
|
591
|
|
|
1,808
|
|
|
1,773
|
|
||||
Policyholder dividends
|
|
241
|
|
|
235
|
|
|
723
|
|
|
732
|
|
||||
Other expenses
|
|
29
|
|
|
30
|
|
|
88
|
|
|
94
|
|
||||
Total expenses
|
|
911
|
|
|
856
|
|
|
2,619
|
|
|
2,599
|
|
||||
Revenues, net of expenses before provision for income tax expense (benefit)
|
|
(54
|
)
|
|
1
|
|
|
(133
|
)
|
|
(18
|
)
|
||||
Provision for income tax expense (benefit)
|
|
(12
|
)
|
|
—
|
|
|
(29
|
)
|
|
(8
|
)
|
||||
Revenues, net of expenses and provision for income tax expense (benefit)
|
|
$
|
(42
|
)
|
|
$
|
1
|
|
|
$
|
(104
|
)
|
|
$
|
(10
|
)
|
|
September 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 AFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
U.S. corporate
|
$
|
81,326
|
|
|
$
|
4,045
|
|
|
$
|
1,576
|
|
|
$
|
—
|
|
|
$
|
83,795
|
|
|
$
|
76,005
|
|
|
$
|
7,007
|
|
|
$
|
351
|
|
|
$
|
—
|
|
|
$
|
82,661
|
|
Foreign government
|
55,502
|
|
|
5,534
|
|
|
564
|
|
|
—
|
|
|
60,472
|
|
|
55,351
|
|
|
6,495
|
|
|
312
|
|
|
—
|
|
|
61,534
|
|
||||||||||
Foreign corporate
|
53,097
|
|
|
2,509
|
|
|
1,386
|
|
|
—
|
|
|
54,220
|
|
|
52,409
|
|
|
3,836
|
|
|
676
|
|
|
—
|
|
|
55,569
|
|
||||||||||
U.S. government and agency
|
43,830
|
|
|
2,506
|
|
|
764
|
|
|
—
|
|
|
45,572
|
|
|
43,446
|
|
|
4,227
|
|
|
279
|
|
|
—
|
|
|
47,394
|
|
||||||||||
RMBS
|
27,427
|
|
|
881
|
|
|
687
|
|
|
(37
|
)
|
|
27,658
|
|
|
27,846
|
|
|
1,145
|
|
|
233
|
|
|
(42
|
)
|
|
28,800
|
|
||||||||||
State and political subdivision
|
10,548
|
|
|
1,147
|
|
|
95
|
|
|
—
|
|
|
11,600
|
|
|
10,752
|
|
|
1,717
|
|
|
13
|
|
|
1
|
|
|
12,455
|
|
||||||||||
ABS
|
12,775
|
|
|
79
|
|
|
38
|
|
|
1
|
|
|
12,815
|
|
|
12,213
|
|
|
116
|
|
|
39
|
|
|
(1
|
)
|
|
12,291
|
|
||||||||||
CMBS
|
8,763
|
|
|
86
|
|
|
141
|
|
|
—
|
|
|
8,708
|
|
|
8,047
|
|
|
222
|
|
|
42
|
|
|
—
|
|
|
8,227
|
|
||||||||||
Total fixed maturity securities AFS
|
$
|
293,268
|
|
|
$
|
16,787
|
|
|
$
|
5,251
|
|
|
$
|
(36
|
)
|
|
$
|
304,840
|
|
|
$
|
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 AFS
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Amortized cost
|
|
$
|
14,290
|
|
|
$
|
59,495
|
|
|
$
|
61,007
|
|
|
$
|
109,511
|
|
|
$
|
48,965
|
|
|
$
|
293,268
|
|
Estimated fair value
|
|
$
|
14,336
|
|
|
$
|
60,995
|
|
|
$
|
62,655
|
|
|
$
|
117,673
|
|
|
$
|
49,181
|
|
|
$
|
304,840
|
|
|
|
September 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 AFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. corporate
|
|
$
|
28,316
|
|
|
$
|
1,069
|
|
|
$
|
5,217
|
|
|
$
|
507
|
|
|
$
|
5,604
|
|
|
$
|
92
|
|
|
$
|
4,115
|
|
|
$
|
259
|
|
Foreign government
|
|
9,325
|
|
|
305
|
|
|
3,054
|
|
|
259
|
|
|
4,234
|
|
|
83
|
|
|
3,251
|
|
|
229
|
|
||||||||
Foreign corporate
|
|
16,098
|
|
|
784
|
|
|
4,998
|
|
|
602
|
|
|
4,422
|
|
|
99
|
|
|
6,802
|
|
|
577
|
|
||||||||
U.S. government and agency
|
|
20,235
|
|
|
252
|
|
|
5,982
|
|
|
512
|
|
|
18,273
|
|
|
93
|
|
|
3,560
|
|
|
186
|
|
||||||||
RMBS
|
|
12,322
|
|
|
356
|
|
|
4,633
|
|
|
294
|
|
|
6,359
|
|
|
50
|
|
|
4,159
|
|
|
141
|
|
||||||||
State and political subdivision
|
|
1,900
|
|
|
68
|
|
|
334
|
|
|
27
|
|
|
182
|
|
|
2
|
|
|
346
|
|
|
12
|
|
||||||||
ABS
|
|
5,851
|
|
|
23
|
|
|
409
|
|
|
16
|
|
|
1,695
|
|
|
7
|
|
|
729
|
|
|
31
|
|
||||||||
CMBS
|
|
4,532
|
|
|
86
|
|
|
682
|
|
|
55
|
|
|
1,174
|
|
|
9
|
|
|
413
|
|
|
33
|
|
||||||||
Total fixed maturity securities AFS
|
|
$
|
98,579
|
|
|
$
|
2,943
|
|
|
$
|
25,309
|
|
|
$
|
2,272
|
|
|
$
|
41,943
|
|
|
$
|
435
|
|
|
$
|
23,375
|
|
|
$
|
1,468
|
|
Total number of securities in an unrealized loss position
|
|
6,790
|
|
|
|
|
2,159
|
|
|
|
|
2,598
|
|
|
|
|
1,955
|
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||
|
Estimated
Fair
Value
|
|
% of
Total
|
|
Estimated
Fair
Value
|
|
% of
Total
|
||||||
|
|||||||||||||
|
(Dollars in millions)
|
||||||||||||
Equity securities:
|
|
|
|
|
|
|
|
||||||
Common stock
|
$
|
1,063
|
|
|
71.9
|
%
|
|
$
|
2,035
|
|
|
81.0
|
%
|
Non-redeemable preferred stock
|
416
|
|
|
28.1
|
|
|
478
|
|
|
19.0
|
|
||
Total equity securities
|
$
|
1,479
|
|
|
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.
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||
|
Carrying Value
|
|
% of
Total |
|
Carrying Value
|
|
% of
Total |
||||||
|
(Dollars in millions)
|
||||||||||||
Mortgage loans:
|
|
|
|
|
|
|
|
||||||
Commercial
|
$
|
47,460
|
|
|
65.5
|
%
|
|
$
|
44,375
|
|
|
64.6
|
%
|
Agricultural
|
13,677
|
|
|
18.9
|
|
|
13,014
|
|
|
18.9
|
|
||
Residential
|
11,337
|
|
|
15.6
|
|
|
11,136
|
|
|
16.2
|
|
||
Subtotal (1)
|
72,474
|
|
|
100.0
|
|
|
68,525
|
|
|
99.7
|
|
||
Valuation allowances
|
(336
|
)
|
|
(0.5
|
)
|
|
(314
|
)
|
|
(0.5
|
)
|
||
Subtotal mortgage loans, net
|
72,138
|
|
|
99.5
|
|
|
68,211
|
|
|
99.2
|
|
||
Residential — FVO
|
323
|
|
|
0.5
|
|
|
520
|
|
|
0.8
|
|
||
Total mortgage loans, net
|
$
|
72,461
|
|
|
100.0
|
%
|
|
$
|
68,731
|
|
|
100.0
|
%
|
(1)
|
Purchases of mortgage loans, primarily residential mortgage loans, were
$724 million
and
$1.7 billion
for the
three months
and
nine months ended
September 30, 2018
, respectively, and
$411 million
and
$1.9 billion
for the
three months
and
nine months ended
September 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)
|
||||||||||||||||||||||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
47,460
|
|
|
$
|
232
|
|
|
$
|
—
|
|
Agricultural
|
|
13
|
|
|
13
|
|
|
2
|
|
|
111
|
|
|
110
|
|
|
13,554
|
|
|
40
|
|
|
121
|
|
||||||||
Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
420
|
|
|
377
|
|
|
10,960
|
|
|
62
|
|
|
377
|
|
||||||||
Total
|
|
$
|
13
|
|
|
$
|
13
|
|
|
$
|
2
|
|
|
$
|
531
|
|
|
$
|
487
|
|
|
$
|
71,974
|
|
|
$
|
334
|
|
|
$
|
498
|
|
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
|
|
|
Nine Months
Ended September 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)
|
18
|
|
|
1
|
|
|
9
|
|
|
28
|
|
|
11
|
|
|
4
|
|
|
10
|
|
|
25
|
|
||||||||
Charge-offs, net of recoveries
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
(6
|
)
|
|
—
|
|
|
(2
|
)
|
|
(11
|
)
|
|
(13
|
)
|
||||||||
Balance, end of period
|
$
|
232
|
|
|
$
|
42
|
|
|
$
|
62
|
|
|
$
|
336
|
|
|
$
|
213
|
|
|
$
|
41
|
|
|
$
|
62
|
|
|
$
|
316
|
|
|
|
Recorded Investment
|
|
Estimated
Fair Value |
|
% of
Total
|
||||||||||||||||||||
|
|
Debt Service Coverage Ratios
|
|
|
|
% of
Total
|
|
|||||||||||||||||||
|
|
> 1.20x
|
|
1.00x - 1.20x
|
|
< 1.00x
|
|
Total
|
|
|||||||||||||||||
|
|
(Dollars in millions)
|
||||||||||||||||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loan-to-value ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Less than 65%
|
|
$
|
40,195
|
|
|
$
|
758
|
|
|
$
|
17
|
|
|
$
|
40,970
|
|
|
86.3
|
%
|
|
$
|
41,014
|
|
|
86.5
|
%
|
65% to 75%
|
|
4,732
|
|
|
381
|
|
|
69
|
|
|
5,182
|
|
|
10.9
|
|
|
5,152
|
|
|
10.9
|
|
|||||
76% to 80%
|
|
387
|
|
|
210
|
|
|
56
|
|
|
653
|
|
|
1.4
|
|
|
621
|
|
|
1.3
|
|
|||||
Greater than 80%
|
|
479
|
|
|
176
|
|
|
—
|
|
|
655
|
|
|
1.4
|
|
|
619
|
|
|
1.3
|
|
|||||
Total
|
|
$
|
45,793
|
|
|
$
|
1,525
|
|
|
$
|
142
|
|
|
$
|
47,460
|
|
|
100.0
|
%
|
|
$
|
47,406
|
|
|
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
|
%
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||
|
|
Recorded
Investment |
|
% of
Total |
|
Recorded
Investment |
|
% of
Total |
||||||
|
|
(Dollars in millions)
|
||||||||||||
Loan-to-value ratios:
|
|
|
|
|
|
|
|
|
||||||
Less than 65%
|
|
$
|
12,789
|
|
|
93.5
|
%
|
|
$
|
12,347
|
|
|
94.9
|
%
|
65% to 75%
|
|
851
|
|
|
6.2
|
|
|
618
|
|
|
4.7
|
|
||
76% to 80%
|
|
32
|
|
|
0.2
|
|
|
40
|
|
|
0.3
|
|
||
Greater than 80%
|
|
5
|
|
|
0.1
|
|
|
9
|
|
|
0.1
|
|
||
Total
|
|
$
|
13,677
|
|
|
100.0
|
%
|
|
$
|
13,014
|
|
|
100.0
|
%
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||
|
|
Recorded
Investment |
|
% of
Total |
|
Recorded
Investment |
|
% of
Total |
||||||
|
|
(Dollars in millions)
|
||||||||||||
Performance indicators:
|
|
|
|
|
|
|
|
|
||||||
Performing
|
|
$
|
10,873
|
|
|
95.9
|
%
|
|
$
|
10,622
|
|
|
95.4
|
%
|
Nonperforming
|
|
464
|
|
|
4.1
|
|
|
514
|
|
|
4.6
|
|
||
Total
|
|
$
|
11,337
|
|
|
100.0
|
%
|
|
$
|
11,136
|
|
|
100.0
|
%
|
|
|
Past Due
|
|
Greater than 90 Days Past Due and Still
Accruing Interest
|
|
Nonaccrual
|
||||||||||||||||||
|
|
September 30, 2018
|
|
December 31, 2017
|
|
September 30, 2018
|
|
December 31, 2017
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Commercial
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
176
|
|
|
$
|
—
|
|
Agricultural
|
|
200
|
|
|
134
|
|
|
105
|
|
|
125
|
|
|
106
|
|
|
36
|
|
||||||
Residential
|
|
464
|
|
|
514
|
|
|
39
|
|
|
33
|
|
|
425
|
|
|
481
|
|
||||||
Total
|
|
$
|
665
|
|
|
$
|
648
|
|
|
$
|
144
|
|
|
$
|
158
|
|
|
$
|
707
|
|
|
$
|
517
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
|
(In millions)
|
||||||
Fixed maturity securities AFS
|
|
$
|
11,381
|
|
|
$
|
22,645
|
|
Fixed maturity securities AFS with noncredit OTTI losses included in AOCI
|
|
36
|
|
|
41
|
|
||
Total fixed maturity securities AFS
|
|
11,417
|
|
|
22,686
|
|
||
Equity securities
|
|
—
|
|
|
421
|
|
||
Derivatives
|
|
1,256
|
|
|
1,453
|
|
||
Other
|
|
85
|
|
|
46
|
|
||
Subtotal
|
|
12,758
|
|
|
24,606
|
|
||
Amounts allocated from:
|
|
|
|
|
||||
Future policy benefits
|
|
(102
|
)
|
|
(77
|
)
|
||
DAC and VOBA related to noncredit OTTI losses recognized in AOCI
|
|
(1
|
)
|
|
—
|
|
||
DAC, VOBA and DSI
|
|
(942
|
)
|
|
(1,768
|
)
|
||
Policyholder dividend obligation
|
|
(456
|
)
|
|
(2,121
|
)
|
||
Subtotal
|
|
(1,501
|
)
|
|
(3,966
|
)
|
||
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI
|
|
(5
|
)
|
|
(12
|
)
|
||
Deferred income tax benefit (expense)
|
|
(3,297
|
)
|
|
(6,958
|
)
|
||
Net unrealized investment gains (losses)
|
|
7,955
|
|
|
13,670
|
|
||
Net unrealized investment gains (losses) attributable to noncontrolling interests
|
|
(9
|
)
|
|
(8
|
)
|
||
Net unrealized investment gains (losses) attributable to MetLife, Inc.
|
|
$
|
7,946
|
|
|
$
|
13,662
|
|
|
Nine Months
Ended September 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 AFS on which noncredit OTTI losses have been recognized
|
(5
|
)
|
|
Unrealized investment gains (losses) during the period
|
(11,418
|
)
|
|
Unrealized investment gains (losses) relating to:
|
|
||
Future policy benefits
|
(25
|
)
|
|
DAC and VOBA related to noncredit OTTI losses recognized in AOCI
|
(1
|
)
|
|
DAC, VOBA and DSI
|
826
|
|
|
Policyholder dividend obligation
|
1,665
|
|
|
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI
|
7
|
|
|
Deferred income tax benefit (expense)
|
1,978
|
|
|
Net unrealized investment gains (losses)
|
7,947
|
|
|
Net unrealized investment gains (losses) attributable to noncontrolling interests
|
(1
|
)
|
|
Balance, end of period
|
$
|
7,946
|
|
Change in net unrealized investment gains (losses)
|
$
|
(5,715
|
)
|
Change in net unrealized investment gains (losses) attributable to noncontrolling interests
|
(1
|
)
|
|
Change in net unrealized investment gains (losses) attributable to MetLife, Inc.
|
$
|
(5,716
|
)
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
(In millions)
|
||||||
Securities on loan: (1)
|
|
|
|
||||
Amortized cost
|
$
|
18,438
|
|
|
$
|
17,801
|
|
Estimated fair value
|
$
|
18,826
|
|
|
$
|
19,028
|
|
Cash collateral received from counterparties (2)
|
$
|
19,290
|
|
|
$
|
19,417
|
|
Security collateral received from counterparties (3)
|
$
|
—
|
|
|
$
|
19
|
|
Reinvestment portfolio — estimated fair value
|
$
|
19,394
|
|
|
$
|
19,508
|
|
(1)
|
Included within fixed maturity securities AFS and short-term investments.
|
(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.
|
|
|
September 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
|
|
$
|
3,056
|
|
|
$
|
7,305
|
|
|
$
|
7,883
|
|
|
$
|
18,244
|
|
|
$
|
3,753
|
|
|
$
|
6,031
|
|
|
$
|
8,607
|
|
|
$
|
18,391
|
|
Foreign government
|
|
—
|
|
|
72
|
|
|
831
|
|
|
903
|
|
|
—
|
|
|
192
|
|
|
834
|
|
|
1,026
|
|
||||||||
Agency RMBS
|
|
—
|
|
|
—
|
|
|
143
|
|
|
143
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total
|
|
$
|
3,056
|
|
|
$
|
7,377
|
|
|
$
|
8,857
|
|
|
$
|
19,290
|
|
|
$
|
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.
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
|
(In millions)
|
||||||
Securities on loan: (1)
|
|
|
|
|
||||
Amortized cost
|
|
$
|
2,547
|
|
|
$
|
994
|
|
Estimated fair value
|
|
$
|
2,597
|
|
|
$
|
1,141
|
|
Cash collateral received from counterparties (2)
|
|
$
|
2,543
|
|
|
$
|
1,102
|
|
Security collateral received from counterparties (3)
|
|
$
|
8
|
|
|
$
|
—
|
|
Reinvestment portfolio — estimated fair value
|
|
$
|
2,554
|
|
|
$
|
1,102
|
|
(1)
|
Included within fixed maturity securities AFS, short-term investments and cash equivalents.
|
(2)
|
Included within payables for collateral under securities loaned and other transactions and other liabilities.
|
(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.
|
|
|
September 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
|
|
42
|
|
|
36
|
|
|
78
|
|
|
44
|
|
|
53
|
|
|
97
|
|
||||||
Total
|
|
$
|
2,507
|
|
|
$
|
36
|
|
|
$
|
2,543
|
|
|
$
|
1,049
|
|
|
$
|
53
|
|
|
$
|
1,102
|
|
|
|
September 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
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
|
(In millions)
|
||||||
Invested assets on deposit (regulatory deposits)
|
|
$
|
1,811
|
|
|
$
|
1,879
|
|
Invested assets held in trust (collateral financing arrangement and reinsurance agreements)
|
|
3,058
|
|
|
2,490
|
|
||
Invested assets pledged as collateral
|
|
24,726
|
|
|
24,174
|
|
||
Total invested assets on deposit, held in trust and pledged as collateral
|
|
$
|
29,595
|
|
|
$
|
28,543
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
|
Total
Assets |
|
Total
Liabilities |
|
Total
Assets |
|
Total
Liabilities |
||||||||
|
|
(In millions)
|
||||||||||||||
Renewable energy partnership
|
|
$
|
107
|
|
|
$
|
—
|
|
|
$
|
116
|
|
|
$
|
3
|
|
Investment fund
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other investments
|
|
31
|
|
|
6
|
|
|
32
|
|
|
6
|
|
||||
Total
|
|
$
|
148
|
|
|
$
|
6
|
|
|
$
|
148
|
|
|
$
|
9
|
|
|
|
September 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)
|
|
$
|
47,209
|
|
|
$
|
47,209
|
|
|
$
|
47,614
|
|
|
$
|
47,614
|
|
U.S. and foreign corporate
|
|
1,236
|
|
|
1,236
|
|
|
1,560
|
|
|
1,560
|
|
||||
Other limited partnership interests
|
|
5,343
|
|
|
9,719
|
|
|
4,834
|
|
|
8,543
|
|
||||
Other invested assets
|
|
1,924
|
|
|
2,102
|
|
|
2,291
|
|
|
2,625
|
|
||||
Other investments
|
|
86
|
|
|
90
|
|
|
82
|
|
|
87
|
|
||||
Total
|
|
$
|
55,798
|
|
|
$
|
60,356
|
|
|
$
|
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
$101 million
and
$117 million
at
September 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 September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Investment income:
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities AFS
|
$
|
3,056
|
|
|
$
|
2,869
|
|
|
$
|
8,966
|
|
|
$
|
8,528
|
|
Equity securities
|
15
|
|
|
31
|
|
|
46
|
|
|
93
|
|
||||
FVO Securities (1)
|
11
|
|
|
16
|
|
|
25
|
|
|
61
|
|
||||
Mortgage loans
|
859
|
|
|
809
|
|
|
2,466
|
|
|
2,303
|
|
||||
Policy loans
|
130
|
|
|
130
|
|
|
381
|
|
|
386
|
|
||||
Real estate and real estate joint ventures
|
175
|
|
|
156
|
|
|
538
|
|
|
478
|
|
||||
Other limited partnership interests
|
227
|
|
|
214
|
|
|
554
|
|
|
648
|
|
||||
Cash, cash equivalents and short-term investments
|
112
|
|
|
52
|
|
|
279
|
|
|
159
|
|
||||
Operating joint ventures
|
2
|
|
|
6
|
|
|
34
|
|
|
13
|
|
||||
Other
|
83
|
|
|
71
|
|
|
283
|
|
|
196
|
|
||||
Subtotal
|
4,670
|
|
|
4,354
|
|
|
13,572
|
|
|
12,865
|
|
||||
Less: Investment expenses
|
333
|
|
|
293
|
|
|
950
|
|
|
820
|
|
||||
Subtotal, net
|
4,337
|
|
|
4,061
|
|
|
12,622
|
|
|
12,045
|
|
||||
Unit-linked investments (1)
|
149
|
|
|
234
|
|
|
82
|
|
|
864
|
|
||||
Net investment income
|
$
|
4,486
|
|
|
$
|
4,295
|
|
|
$
|
12,704
|
|
|
$
|
12,909
|
|
(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
$109 million
and
($59) million
for the
three months
and
nine months ended
September 30, 2018
, respectively, and
$154 million
and
$540 million
for the
three months
and
nine months ended
September 30, 2017
, respectively.
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Total gains (losses) on fixed maturity securities AFS:
|
|
|
|
|
|
|
|
||||||||
Total OTTI losses recognized — by sector and industry:
|
|
|
|
|
|
|
|
||||||||
U.S. and foreign corporate securities — by industry:
|
|
|
|
|
|
|
|
||||||||
Consumer
|
$
|
(1
|
)
|
|
$
|
(4
|
)
|
|
$
|
(1
|
)
|
|
$
|
(4
|
)
|
Finance
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
||||
Total U.S. and foreign corporate securities
|
(8
|
)
|
|
(4
|
)
|
|
(8
|
)
|
|
(4
|
)
|
||||
Foreign government
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
||||
RMBS
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||
State and political subdivision
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||
OTTI losses on fixed maturity securities AFS recognized in earnings
|
(17
|
)
|
|
(5
|
)
|
|
(17
|
)
|
|
(7
|
)
|
||||
Fixed maturity securities AFS — net gains (losses) on sales and disposals (1)
|
123
|
|
|
284
|
|
|
(18
|
)
|
|
325
|
|
||||
Total gains (losses) on fixed maturity securities AFS
|
106
|
|
|
279
|
|
|
(35
|
)
|
|
318
|
|
||||
Total gains (losses) on equity securities:
|
|
|
|
|
|
|
|
||||||||
OTTI losses recognized — by security type:
|
|
|
|
|
|
|
|
||||||||
Common stock
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(16
|
)
|
||||
Non-redeemable preferred stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Total OTTI losses on equity securities recognized in earnings
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(17
|
)
|
||||
Equity securities — net gains (losses) on sales and disposals
|
(58
|
)
|
|
6
|
|
|
58
|
|
|
55
|
|
||||
Change in estimated fair value of equity securities (2)
|
76
|
|
|
—
|
|
|
(37
|
)
|
|
—
|
|
||||
Total gains (losses) on equity securities
|
18
|
|
|
2
|
|
|
21
|
|
|
38
|
|
||||
Mortgage loans (1)
|
4
|
|
|
29
|
|
|
(32
|
)
|
|
3
|
|
||||
Real estate and real estate joint ventures
|
40
|
|
|
169
|
|
|
154
|
|
|
436
|
|
||||
Other limited partnership interests
|
1
|
|
|
(33
|
)
|
|
9
|
|
|
(51
|
)
|
||||
Other
|
12
|
|
|
29
|
|
|
(176
|
)
|
|
(67
|
)
|
||||
Subtotal
|
181
|
|
|
475
|
|
|
(59
|
)
|
|
677
|
|
||||
Change in estimated fair value of other limited partnership interests and real estate joint ventures
|
12
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||
Non-investment portfolio gains (losses) (3)
|
(76
|
)
|
|
(1,081
|
)
|
|
(390
|
)
|
|
(1,091
|
)
|
||||
Total net investment gains (losses)
|
$
|
117
|
|
|
$
|
(606
|
)
|
|
$
|
(443
|
)
|
|
$
|
(414
|
)
|
(1)
|
Fixed maturity securities AFS — net gains (losses) on sales and disposals and mortgage loans for both the
three months
and
nine months ended
September 30, 2017
, included
$276 million
and
$47 million
, respectively, in previously deferred gains on prior period transfers of such investments to Brighthouse, as such gains are no longer eliminated in consolidation after the Separation. See Note 3.
|
(2)
|
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
$15 million
and
$12 million
for the
three months
and
nine months ended
September 30, 2018
, respectively. See
Note 1
.
|
(3)
|
Non-investment portfolio gains (losses) for the
nine months ended
September 30, 2018
included a loss of
$327 million
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 in June 2018. Non-investment portfolio gains (losses) for both the
three months
and
nine months ended
September 30, 2017
included (i) a loss of
$1,016 million
which represents a mark-to-market loss on the Company’s retained investment in Brighthouse Financial, Inc. at Separation and (ii) a loss of
$45 million
which represents the change in estimated fair value of FVO Brighthouse Common Stock held by the Company from the date of Separation to
September 30, 2017
. See Note
3
.
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Proceeds
|
$
|
19,003
|
|
|
$
|
8,586
|
|
|
$
|
58,256
|
|
|
$
|
35,742
|
|
Gross investment gains
|
$
|
234
|
|
|
$
|
364
|
|
|
$
|
489
|
|
|
$
|
623
|
|
Gross investment losses
|
(111
|
)
|
|
(80
|
)
|
|
(507
|
)
|
|
(298
|
)
|
||||
OTTI losses
|
(17
|
)
|
|
(5
|
)
|
|
(17
|
)
|
|
(7
|
)
|
||||
Net investment gains (losses)
|
$
|
106
|
|
|
$
|
279
|
|
|
$
|
(35
|
)
|
|
$
|
318
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Balance, beginning of period
|
$
|
111
|
|
|
$
|
165
|
|
|
$
|
138
|
|
|
$
|
187
|
|
Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI
|
(4
|
)
|
|
(4
|
)
|
|
(30
|
)
|
|
(26
|
)
|
||||
Increase in cash flows — accretion of previous credit loss OTTI
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
Balance, end of period
|
$
|
107
|
|
|
$
|
161
|
|
|
$
|
107
|
|
|
$
|
161
|
|
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 September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Freestanding derivative and hedging gains (losses) (1)
|
$
|
(545
|
)
|
|
$
|
(424
|
)
|
|
$
|
(443
|
)
|
|
$
|
(1,084
|
)
|
Embedded derivative gains (losses)
|
167
|
|
|
301
|
|
|
355
|
|
|
549
|
|
||||
Total net derivative gains (losses)
|
$
|
(378
|
)
|
|
$
|
(123
|
)
|
|
$
|
(88
|
)
|
|
$
|
(535
|
)
|
(1)
|
Includes foreign currency transaction gains (losses) on hedged items in cash flow and nonqualifying hedging relationships, which are not presented elsewhere in this note.
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Qualifying hedges:
|
|
|
|
|
|
|
|
||||||||
Net investment income
|
$
|
85
|
|
|
$
|
72
|
|
|
$
|
259
|
|
|
$
|
217
|
|
Interest credited to policyholder account balances
|
(28
|
)
|
|
(19
|
)
|
|
(79
|
)
|
|
(40
|
)
|
||||
Other expenses
|
(2
|
)
|
|
(2
|
)
|
|
(8
|
)
|
|
(7
|
)
|
||||
Nonqualifying hedges:
|
|
|
|
|
|
|
|
||||||||
Net derivative gains (losses)
|
141
|
|
|
126
|
|
|
407
|
|
|
440
|
|
||||
Policyholder benefits and claims
|
3
|
|
|
2
|
|
|
8
|
|
|
6
|
|
||||
Total
|
$
|
199
|
|
|
$
|
179
|
|
|
$
|
587
|
|
|
$
|
616
|
|
|
|
Net
Derivative Gains (Losses) |
|
Net
Investment Income (1) |
|
Policyholder
Benefits and Claims (2) |
||||||
|
|
(In millions)
|
||||||||||
Three Months Ended September 30, 2018
|
|
|
|
|
|
|
||||||
Interest rate derivatives
|
|
$
|
(364
|
)
|
|
$
|
—
|
|
|
$
|
(9
|
)
|
Foreign currency exchange rate derivatives
|
|
(115
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Credit derivatives — purchased
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|||
Credit derivatives — written
|
|
70
|
|
|
—
|
|
|
—
|
|
|||
Equity derivatives
|
|
(254
|
)
|
|
—
|
|
|
(31
|
)
|
|||
Total
|
|
$
|
(672
|
)
|
|
$
|
—
|
|
|
$
|
(41
|
)
|
|
|
|
|
|
|
|
||||||
Three Months Ended September 30, 2017
|
|
|
|
|
|
|
||||||
Interest rate derivatives
|
|
$
|
(148
|
)
|
|
$
|
(2
|
)
|
|
$
|
(3
|
)
|
Foreign currency exchange rate derivatives
|
|
(346
|
)
|
|
—
|
|
|
2
|
|
|||
Credit derivatives — purchased
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|||
Credit derivatives — written
|
|
35
|
|
|
—
|
|
|
—
|
|
|||
Equity derivatives
|
|
(238
|
)
|
|
(3
|
)
|
|
(61
|
)
|
|||
Total
|
|
$
|
(699
|
)
|
|
$
|
(5
|
)
|
|
$
|
(62
|
)
|
|
|
|
|
|
|
|
||||||
Nine Months Ended September 30, 2018
|
|
|
|
|
|
|
||||||
Interest rate derivatives
|
|
$
|
(674
|
)
|
|
$
|
4
|
|
|
$
|
(21
|
)
|
Foreign currency exchange rate derivatives
|
|
271
|
|
|
—
|
|
|
(4
|
)
|
|||
Credit derivatives — purchased
|
|
2
|
|
|
—
|
|
|
—
|
|
|||
Credit derivatives — written
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|||
Equity derivatives
|
|
(330
|
)
|
|
1
|
|
|
(52
|
)
|
|||
Total
|
|
$
|
(740
|
)
|
|
$
|
5
|
|
|
$
|
(77
|
)
|
|
|
|
|
|
|
|
||||||
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
||||||
Interest rate derivatives
|
|
$
|
(466
|
)
|
|
$
|
(2
|
)
|
|
$
|
(16
|
)
|
Foreign currency exchange rate derivatives
|
|
(527
|
)
|
|
—
|
|
|
4
|
|
|||
Credit derivatives — purchased
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|||
Credit derivatives — written
|
|
111
|
|
|
—
|
|
|
—
|
|
|||
Equity derivatives
|
|
(824
|
)
|
|
(7
|
)
|
|
(176
|
)
|
|||
Total
|
|
$
|
(1,723
|
)
|
|
$
|
(9
|
)
|
|
$
|
(188
|
)
|
(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 September 30, 2018
|
|
|
||||||||||||
Interest rate swaps:
|
|
Fixed maturity securities AFS
|
|
$
|
1
|
|
|
$
|
(2
|
)
|
|
$
|
(1
|
)
|
|
|
Policyholder liabilities (1)
|
|
(108
|
)
|
|
110
|
|
|
2
|
|
|||
Foreign currency swaps:
|
|
Foreign-denominated fixed maturity securities AFS and mortgage loans
|
|
4
|
|
|
(7
|
)
|
|
(3
|
)
|
|||
|
|
Foreign-denominated policyholder account balances (2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Foreign currency forwards:
|
|
Foreign-denominated fixed maturity securities AFS
|
|
(60
|
)
|
|
55
|
|
|
(5
|
)
|
|||
Total
|
|
$
|
(163
|
)
|
|
$
|
156
|
|
|
$
|
(7
|
)
|
||
|
|
|
|
|
|
|
||||||||
Three Months Ended September 30, 2017
|
|
|
||||||||||||
Interest rate swaps:
|
|
Fixed maturity securities AFS
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
|
Policyholder liabilities (1)
|
|
(14
|
)
|
|
13
|
|
|
(1
|
)
|
|||
Foreign currency swaps:
|
|
Foreign-denominated fixed maturity securities AFS
|
|
(10
|
)
|
|
10
|
|
|
—
|
|
|||
|
|
Foreign-denominated policyholder account balances (2)
|
|
15
|
|
|
(16
|
)
|
|
(1
|
)
|
|||
Foreign currency forwards:
|
|
Foreign-denominated fixed maturity securities AFS
|
|
(4
|
)
|
|
4
|
|
|
—
|
|
|||
Total
|
|
$
|
(12
|
)
|
|
$
|
11
|
|
|
$
|
(1
|
)
|
||
|
|
|
|
|
|
|
||||||||
Nine Months Ended September 30, 2018
|
|
|
||||||||||||
Interest rate swaps:
|
|
Fixed maturity securities AFS
|
|
$
|
4
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
|
Policyholder liabilities (1)
|
|
(389
|
)
|
|
392
|
|
|
3
|
|
|||
Foreign currency swaps:
|
|
Foreign-denominated fixed maturity securities AFS and mortgage loans
|
|
29
|
|
|
(33
|
)
|
|
(4
|
)
|
|||
|
|
Foreign-denominated policyholder account balances (2)
|
|
23
|
|
|
(23
|
)
|
|
—
|
|
|||
Foreign currency forwards:
|
|
Foreign-denominated fixed maturity securities AFS
|
|
5
|
|
|
(4
|
)
|
|
1
|
|
|||
Total
|
|
$
|
(328
|
)
|
|
$
|
328
|
|
|
$
|
—
|
|
||
|
|
|
|
|
|
|
||||||||
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
||||||||
Interest rate swaps:
|
|
Fixed maturity securities AFS
|
|
$
|
2
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
|
Policyholder liabilities (1)
|
|
(16
|
)
|
|
84
|
|
|
68
|
|
|||
Foreign currency swaps:
|
|
Foreign-denominated fixed maturity securities AFS
|
|
(15
|
)
|
|
16
|
|
|
1
|
|
|||
|
|
Foreign-denominated policyholder account balances (2)
|
|
61
|
|
|
(40
|
)
|
|
21
|
|
|||
Foreign currency forwards:
|
|
Foreign-denominated fixed maturity securities AFS
|
|
20
|
|
|
(18
|
)
|
|
2
|
|
|||
Total
|
|
$
|
52
|
|
|
$
|
40
|
|
|
$
|
92
|
|
(1)
|
Fixed rate liabilities reported in policyholder account balances or future policy benefits.
|
(2)
|
Fixed rate or floating rate liabilities.
|
Derivatives in Cash Flow
Hedging Relationships |
|
Amount of Gains
(Losses) Deferred in AOCI on Derivatives |
|
Amount and Location
of Gains (Losses) Reclassified from AOCI into Income (Loss) |
|
Amount and Location
of Gains (Losses) Recognized in Income (Loss) on Derivatives |
||||||||||||||
|
|
(Effective Portion)
|
|
(Effective Portion)
|
|
(Ineffective Portion)
|
||||||||||||||
|
|
|
|
Net Derivative
Gains (Losses) |
|
Net Investment
Income |
|
Other
Expenses |
|
Net Derivative
Gains (Losses) |
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Three Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate swaps
|
|
$
|
(90
|
)
|
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
3
|
|
Interest rate forwards
|
|
(87
|
)
|
|
(3
|
)
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Foreign currency swaps
|
|
(118
|
)
|
|
(6
|
)
|
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|||||
Credit forwards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
(295
|
)
|
|
$
|
(8
|
)
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
2
|
|
Three Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate swaps
|
|
$
|
14
|
|
|
$
|
9
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
Interest rate forwards
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Foreign currency swaps
|
|
(140
|
)
|
|
294
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||||
Credit forwards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
(125
|
)
|
|
$
|
302
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
Nine Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate swaps
|
|
$
|
(311
|
)
|
|
$
|
18
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
5
|
|
Interest rate forwards
|
|
(200
|
)
|
|
—
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|||||
Foreign currency swaps
|
|
5
|
|
|
(342
|
)
|
|
(2
|
)
|
|
1
|
|
|
5
|
|
|||||
Credit forwards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
(506
|
)
|
|
$
|
(324
|
)
|
|
$
|
13
|
|
|
$
|
2
|
|
|
$
|
10
|
|
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate swaps
|
|
$
|
91
|
|
|
$
|
23
|
|
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
5
|
|
Interest rate forwards
|
|
138
|
|
|
(5
|
)
|
|
2
|
|
|
1
|
|
|
(1
|
)
|
|||||
Foreign currency swaps
|
|
(99
|
)
|
|
915
|
|
|
(1
|
)
|
|
1
|
|
|
(2
|
)
|
|||||
Credit forwards
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
130
|
|
|
$
|
934
|
|
|
$
|
13
|
|
|
$
|
2
|
|
|
$
|
2
|
|
Derivatives in Net Investment Hedging Relationships (1)
|
|
Amount of Gains (Losses) Deferred in AOCI
(Effective Portion) |
||
|
|
(In millions)
|
||
Three Months Ended September 30, 2018
|
|
|
||
Foreign currency forwards
|
|
$
|
(32
|
)
|
Currency options
|
|
36
|
|
|
Total
|
|
$
|
4
|
|
Three Months Ended September 30, 2017
|
|
|
||
Foreign currency forwards
|
|
$
|
(35
|
)
|
Currency options
|
|
(1
|
)
|
|
Total
|
|
$
|
(36
|
)
|
Nine Months Ended September 30, 2018
|
|
|
||
Foreign currency forwards
|
|
$
|
3
|
|
Currency options
|
|
(75
|
)
|
|
Total
|
|
$
|
(72
|
)
|
Nine Months Ended September 30, 2017
|
|
|
||
Foreign currency forwards
|
|
$
|
(161
|
)
|
Currency options
|
|
(234
|
)
|
|
Total
|
|
$
|
(395
|
)
|
(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.
|
|
|
September 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
|
|
|
1.9
|
|
|
$
|
7
|
|
|
$
|
375
|
|
|
2.6
|
|
Credit default swaps referencing indices
|
|
39
|
|
|
2,459
|
|
|
2.1
|
|
|
44
|
|
|
2,268
|
|
|
2.7
|
|
||||
Subtotal
|
|
45
|
|
|
2,842
|
|
|
2.1
|
|
|
51
|
|
|
2,643
|
|
|
2.7
|
|
||||
Baa
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single name credit default swaps (3)
|
|
4
|
|
|
463
|
|
|
1.8
|
|
|
7
|
|
|
605
|
|
|
1.8
|
|
||||
Credit default swaps referencing indices
|
|
137
|
|
|
7,733
|
|
|
5.2
|
|
|
183
|
|
|
7,662
|
|
|
5.0
|
|
||||
Subtotal
|
|
141
|
|
|
8,196
|
|
|
5.0
|
|
|
190
|
|
|
8,267
|
|
|
4.8
|
|
||||
Ba
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single name credit default swaps (3)
|
|
—
|
|
|
10
|
|
|
1.7
|
|
|
1
|
|
|
115
|
|
|
3.4
|
|
||||
Credit default swaps referencing indices
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Subtotal
|
|
—
|
|
|
10
|
|
|
1.7
|
|
|
1
|
|
|
115
|
|
|
3.4
|
|
||||
B
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single name credit default swaps (3)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
20
|
|
|
3.5
|
|
||||
Credit default swaps referencing indices
|
|
35
|
|
|
459
|
|
|
4.7
|
|
|
27
|
|
|
330
|
|
|
5.0
|
|
||||
Subtotal
|
|
35
|
|
|
459
|
|
|
4.7
|
|
|
29
|
|
|
350
|
|
|
4.9
|
|
||||
Total
|
|
$
|
221
|
|
|
$
|
11,507
|
|
|
4.3
|
|
|
$
|
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”), S&P Global Ratings (“S&P”) and Fitch Ratings. If no rating is available from a rating agency, then an internally developed rating is used.
|
(2)
|
The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts.
|
(3)
|
Single name credit default swaps may be referenced to the credit of corporations, foreign governments, or state and political subdivisions.
|
|
|
September 30, 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)
|
|
$
|
7,175
|
|
|
$
|
4,387
|
|
|
$
|
7,955
|
|
|
$
|
4,059
|
|
OTC-cleared (1), (6)
|
|
190
|
|
|
78
|
|
|
649
|
|
|
223
|
|
||||
Exchange-traded
|
|
9
|
|
|
14
|
|
|
22
|
|
|
8
|
|
||||
Total gross estimated fair value of derivatives (1)
|
|
7,374
|
|
|
4,479
|
|
|
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)
|
|
7,374
|
|
|
4,479
|
|
|
8,626
|
|
|
4,290
|
|
||||
Gross amounts not offset on the interim condensed consolidated balance sheets:
|
|
|
|
|
|
|
|
|
||||||||
Gross estimated fair value of derivatives: (2)
|
|
|
|
|
|
|
|
|
||||||||
OTC-bilateral
|
|
(2,809
|
)
|
|
(2,809
|
)
|
|
(2,528
|
)
|
|
(2,528
|
)
|
||||
OTC-cleared
|
|
(7
|
)
|
|
(7
|
)
|
|
(35
|
)
|
|
(35
|
)
|
||||
Exchange-traded
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
||||
Cash collateral: (3), (4)
|
|
|
|
|
|
|
|
|
||||||||
OTC-bilateral
|
|
(3,189
|
)
|
|
(149
|
)
|
|
(4,169
|
)
|
|
—
|
|
||||
OTC-cleared
|
|
(172
|
)
|
|
(50
|
)
|
|
(584
|
)
|
|
(179
|
)
|
||||
Exchange-traded
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(5
|
)
|
||||
Securities collateral: (5)
|
|
|
|
|
|
|
|
|
||||||||
OTC-bilateral
|
|
(1,072
|
)
|
|
(1,368
|
)
|
|
(1,004
|
)
|
|
(1,474
|
)
|
||||
OTC-cleared
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
(9
|
)
|
||||
Exchange-traded
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(2
|
)
|
||||
Net amount after application of master netting agreements and collateral
|
|
$
|
124
|
|
|
$
|
55
|
|
|
$
|
305
|
|
|
$
|
57
|
|
(1)
|
At
September 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
($38) 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 AFS, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet.
|
(4)
|
The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At
September 30, 2018
and
December 31, 2017
, the Company received excess cash collateral of
$165 million
and
$253 million
, respectively, and provided excess cash collateral of
$252 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
September 30, 2018
,
none
of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities AFS on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At
September 30, 2018
and
December 31, 2017
, the Company received excess securities collateral with an estimated fair value of
$154 million
and
$108 million
, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At
September 30, 2018
and
December 31, 2017
, the Company provided excess securities collateral with an estimated fair value of
$254 million
and
$305 million
, respectively, for its OTC-bilateral derivatives, and
$524 million
and
$522 million
, respectively, for its OTC-cleared derivatives, and
$84 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.
|
|
|
September 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)
|
|
$
|
1,546
|
|
|
$
|
32
|
|
|
$
|
1,578
|
|
|
$
|
1,508
|
|
|
$
|
24
|
|
|
$
|
1,532
|
|
Estimated Fair Value of Collateral Provided:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed maturity securities AFS
|
|
$
|
1,514
|
|
|
$
|
22
|
|
|
$
|
1,536
|
|
|
$
|
1,675
|
|
|
$
|
26
|
|
|
$
|
1,701
|
|
Cash
|
|
$
|
161
|
|
|
$
|
—
|
|
|
$
|
161
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Estimated Fair Value of Incremental Collateral Provided Upon:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One-notch downgrade in the Company’s credit or financial strength rating, as applicable
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
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
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
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 September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(In millions)
|
||||||||||||||
Net derivative gains (losses) (1)
|
|
$
|
167
|
|
|
$
|
301
|
|
|
$
|
355
|
|
|
$
|
549
|
|
(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
($20) million
and
($25) million
for the
three months
and
nine months ended
September 30, 2018
, respectively, and
($21) million
and
($162) million
for the
three months
and
nine months ended
September 30, 2017
, respectively.
|
|
|
September 30, 2018
|
||||||||||||||
|
|
Fair Value Hierarchy
|
|
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated Fair Value |
||||||||
|
|
(In millions)
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities AFS:
|
|
|
|
|
|
|
|
|
||||||||
U.S. corporate
|
|
$
|
—
|
|
|
$
|
79,812
|
|
|
$
|
3,983
|
|
|
$
|
83,795
|
|
Foreign government
|
|
—
|
|
|
60,332
|
|
|
140
|
|
|
60,472
|
|
||||
Foreign corporate
|
|
—
|
|
|
47,870
|
|
|
6,350
|
|
|
54,220
|
|
||||
U.S. government and agency
|
|
25,246
|
|
|
20,326
|
|
|
—
|
|
|
45,572
|
|
||||
RMBS
|
|
—
|
|
|
24,560
|
|
|
3,098
|
|
|
27,658
|
|
||||
State and political subdivision
|
|
—
|
|
|
11,600
|
|
|
—
|
|
|
11,600
|
|
||||
ABS
|
|
—
|
|
|
12,030
|
|
|
785
|
|
|
12,815
|
|
||||
CMBS
|
|
—
|
|
|
8,375
|
|
|
333
|
|
|
8,708
|
|
||||
Total fixed maturity securities AFS
|
|
25,246
|
|
|
264,905
|
|
|
14,689
|
|
|
304,840
|
|
||||
Equity securities
|
|
941
|
|
|
95
|
|
|
443
|
|
|
1,479
|
|
||||
Unit-linked and FVO Securities (1)
|
|
11,235
|
|
|
2,079
|
|
|
226
|
|
|
13,540
|
|
||||
Other limited partnership interests
|
|
—
|
|
|
—
|
|
|
155
|
|
|
155
|
|
||||
Short-term investments (2)
|
|
1,615
|
|
|
2,299
|
|
|
654
|
|
|
4,568
|
|
||||
Residential mortgage loans — FVO
|
|
—
|
|
|
—
|
|
|
323
|
|
|
323
|
|
||||
Other investments
|
|
85
|
|
|
111
|
|
|
—
|
|
|
196
|
|
||||
Derivative assets: (3)
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
1
|
|
|
4,046
|
|
|
—
|
|
|
4,047
|
|
||||
Foreign currency exchange rate
|
|
—
|
|
|
2,234
|
|
|
78
|
|
|
2,312
|
|
||||
Credit
|
|
—
|
|
|
214
|
|
|
35
|
|
|
249
|
|
||||
Equity market
|
|
8
|
|
|
603
|
|
|
69
|
|
|
680
|
|
||||
Total derivative assets
|
|
9
|
|
|
7,097
|
|
|
182
|
|
|
7,288
|
|
||||
Embedded derivatives within asset host contracts (4)
|
|
—
|
|
|
—
|
|
|
57
|
|
|
57
|
|
||||
Separate account assets (5)
|
|
83,754
|
|
|
100,653
|
|
|
1,009
|
|
|
185,416
|
|
||||
Total assets
|
|
$
|
122,885
|
|
|
$
|
377,239
|
|
|
$
|
17,738
|
|
|
$
|
517,862
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities: (3)
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
$
|
4
|
|
|
$
|
316
|
|
|
$
|
327
|
|
|
$
|
647
|
|
Foreign currency exchange rate
|
|
5
|
|
|
2,799
|
|
|
56
|
|
|
2,860
|
|
||||
Credit
|
|
—
|
|
|
43
|
|
|
—
|
|
|
43
|
|
||||
Equity market
|
|
5
|
|
|
756
|
|
|
206
|
|
|
967
|
|
||||
Total derivative liabilities
|
|
14
|
|
|
3,914
|
|
|
589
|
|
|
4,517
|
|
||||
Embedded derivatives within liability host contracts (4)
|
|
—
|
|
|
—
|
|
|
196
|
|
|
196
|
|
||||
Separate account liabilities (5)
|
|
—
|
|
|
8
|
|
|
8
|
|
|
16
|
|
||||
Total liabilities
|
|
$
|
14
|
|
|
$
|
3,922
|
|
|
$
|
793
|
|
|
$
|
4,729
|
|
|
|
December 31, 2017
|
||||||||||||||
|
|
Fair Value Hierarchy
|
|
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated Fair Value |
||||||||
|
|
(In millions)
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities AFS:
|
|
|
|
|
|
|
|
|
||||||||
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 AFS
|
|
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 primarily comprised of Unit-linked investments at both September 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
September 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 AFS
|
|||||
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 AFS, equity securities, derivatives, hedge funds, other limited partnership interests, short-term investments and cash and cash equivalents. Fixed maturity securities AFS, 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).
|
|
|
|
|
|
|
|
September 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 AFS (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
U.S. corporate and foreign corporate
|
•
|
Matrix pricing
|
|
•
|
Offered quotes (4)
|
|
85
|
-
|
126
|
|
104
|
|
83
|
-
|
142
|
|
110
|
|
Increase
|
|
•
|
Market pricing
|
|
•
|
Quoted prices (4)
|
|
37
|
-
|
703
|
|
128
|
|
10
|
-
|
443
|
|
121
|
|
Increase
|
|
•
|
Consensus pricing
|
|
•
|
Offered quotes (4)
|
|
98
|
-
|
108
|
|
100
|
|
97
|
-
|
104
|
|
101
|
|
Increase
|
RMBS
|
•
|
Market pricing
|
|
•
|
Quoted prices (4)
|
|
—
|
-
|
109
|
|
94
|
|
—
|
-
|
126
|
|
94
|
|
Increase (5)
|
ABS
|
•
|
Market pricing
|
|
•
|
Quoted prices (4)
|
|
3
|
-
|
117
|
|
100
|
|
5
|
-
|
117
|
|
100
|
|
Increase (5)
|
|
•
|
Consensus pricing
|
|
•
|
Offered quotes (4)
|
|
99
|
-
|
102
|
|
100
|
|
100
|
-
|
103
|
|
100
|
|
Increase (5)
|
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
|
•
|
Present value techniques
|
|
•
|
Swap yield (6)
|
|
310
|
-
|
331
|
|
|
|
200
|
-
|
300
|
|
|
|
Increase (7)
|
|
|
|
|
•
|
Repurchase rates (8)
|
|
(5)
|
-
|
55
|
|
|
|
(5)
|
-
|
5
|
|
|
|
Decrease (7)
|
Foreign currency exchange rate
|
•
|
Present value techniques
|
|
•
|
Swap yield (6)
|
|
(60)
|
-
|
328
|
|
|
|
(14)
|
-
|
309
|
|
|
|
Increase (7)
|
Credit
|
•
|
Present value techniques
|
|
•
|
Credit spreads (9)
|
|
96
|
-
|
100
|
|
|
|
—
|
-
|
—
|
|
|
|
Decrease (7)
|
|
•
|
Consensus pricing
|
|
•
|
Offered quotes (10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity market
|
•
|
Present value techniques or option pricing models
|
|
•
|
Volatility (11)
|
|
11%
|
-
|
26%
|
|
|
|
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%
|
-
|
0.80%
|
|
|
|
0.03%
|
-
|
0.75%
|
|
|
|
Decrease (13)
|
|
|
|
|
|
Ages 61 - 115
|
|
0.15%
|
-
|
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
|
|
7.21%
|
-
|
33%
|
|
|
|
8.25%
|
-
|
33%
|
|
|
|
Increase (17)
|
|
|
|
|
•
|
Nonperformance risk spread
|
|
0.03%
|
-
|
1.51%
|
|
|
|
0.02%
|
-
|
1.32%
|
|
|
|
Decrease (18)
|
(1)
|
The weighted average for fixed maturity securities AFS 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 AFS of dollars per hundred dollars of par.
|
(5)
|
Changes in the assumptions used for the probability of default are accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates.
|
(6)
|
Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curves are utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.
|
(7)
|
Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions.
|
(8)
|
Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points.
|
(9)
|
Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps.
|
(10)
|
At both
September 30, 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 AFS
|
|
|
|
|
||||||||||||||||||
|
|
Corporate (1)
|
|
Foreign
Government |
|
Structured
Securities
|
|
State and
Political Subdivision |
|
Equity
Securities
|
|
Unit-linked and FVO
Securities
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Three Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
$
|
10,621
|
|
|
$
|
156
|
|
|
$
|
4,677
|
|
|
$
|
8
|
|
|
$
|
408
|
|
|
$
|
269
|
|
Total realized/unrealized gains (losses) included in net income (loss) (2), (3)
|
|
2
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
(1
|
)
|
|
(2
|
)
|
||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
(176
|
)
|
|
(4
|
)
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Purchases (4)
|
|
594
|
|
|
4
|
|
|
746
|
|
|
—
|
|
|
6
|
|
|
48
|
|
||||||
Sales (4)
|
|
(497
|
)
|
|
(6
|
)
|
|
(281
|
)
|
|
—
|
|
|
(7
|
)
|
|
(32
|
)
|
||||||
Issuances (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Transfers into Level 3 (5)
|
|
84
|
|
|
5
|
|
|
36
|
|
|
—
|
|
|
45
|
|
|
12
|
|
||||||
Transfers out of Level 3 (5)
|
|
(295
|
)
|
|
(15
|
)
|
|
(977
|
)
|
|
(8
|
)
|
|
(8
|
)
|
|
(69
|
)
|
||||||
Balance, end of period
|
|
$
|
10,333
|
|
|
$
|
140
|
|
|
$
|
4,216
|
|
|
$
|
—
|
|
|
$
|
443
|
|
|
$
|
226
|
|
Three Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
$
|
11,632
|
|
|
$
|
208
|
|
|
$
|
4,939
|
|
|
$
|
—
|
|
|
$
|
468
|
|
|
$
|
312
|
|
Total realized/unrealized gains (losses) included in net income (loss) (2), (3)
|
|
(3
|
)
|
|
1
|
|
|
13
|
|
|
—
|
|
|
(1
|
)
|
|
7
|
|
||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
164
|
|
|
(2
|
)
|
|
31
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
||||||
Purchases (4)
|
|
713
|
|
|
—
|
|
|
468
|
|
|
—
|
|
|
13
|
|
|
73
|
|
||||||
Sales (4)
|
|
(285
|
)
|
|
—
|
|
|
(478
|
)
|
|
(1
|
)
|
|
(52
|
)
|
|
(70
|
)
|
||||||
Issuances (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Transfers into Level 3 (5)
|
|
123
|
|
|
—
|
|
|
—
|
|
|
62
|
|
|
—
|
|
|
3
|
|
||||||
Transfers out of Level 3 (5)
|
|
(226
|
)
|
|
(9
|
)
|
|
(440
|
)
|
|
—
|
|
|
—
|
|
|
(21
|
)
|
||||||
Balance, end of period
|
|
$
|
12,118
|
|
|
$
|
198
|
|
|
$
|
4,533
|
|
|
$
|
61
|
|
|
$
|
424
|
|
|
$
|
304
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2018 (6)
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2017 (6)
|
|
$
|
(2
|
)
|
|
$
|
1
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
7
|
|
|
|
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 September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
$
|
168
|
|
|
$
|
559
|
|
|
$
|
405
|
|
|
$
|
(267
|
)
|
|
$
|
(240
|
)
|
|
$
|
1,138
|
|
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)
|
|
11
|
|
|
—
|
|
|
4
|
|
|
(70
|
)
|
|
167
|
|
|
2
|
|
||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
(4
|
)
|
|
(3
|
)
|
|
—
|
|
|
(107
|
)
|
|
9
|
|
|
—
|
|
||||||
Purchases (4)
|
|
1
|
|
|
102
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
148
|
|
||||||
Sales (4)
|
|
(21
|
)
|
|
(2
|
)
|
|
(70
|
)
|
|
—
|
|
|
—
|
|
|
(215
|
)
|
||||||
Issuances (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements (4)
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
37
|
|
|
(75
|
)
|
|
—
|
|
||||||
Transfers into Level 3 (5)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||||
Transfers out of Level 3 (5)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(77
|
)
|
||||||
Balance, end of period
|
|
$
|
155
|
|
|
$
|
654
|
|
|
$
|
323
|
|
|
$
|
(407
|
)
|
|
$
|
(139
|
)
|
|
$
|
1,001
|
|
Three Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
$
|
—
|
|
|
$
|
822
|
|
|
$
|
615
|
|
|
$
|
(288
|
)
|
|
$
|
(646
|
)
|
|
$
|
959
|
|
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)
|
|
—
|
|
|
—
|
|
|
32
|
|
|
33
|
|
|
291
|
|
|
7
|
|
||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
||||||
Purchases (4)
|
|
—
|
|
|
1
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
136
|
|
||||||
Sales (4)
|
|
—
|
|
|
(247
|
)
|
|
(72
|
)
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
||||||
Issuances (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Settlements (4)
|
|
—
|
|
|
—
|
|
|
(21
|
)
|
|
(12
|
)
|
|
(92
|
)
|
|
(1
|
)
|
||||||
Transfers into Level 3 (5)
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
||||||
Transfers out of Level 3 (5)
|
|
—
|
|
|
(175
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(101
|
)
|
||||||
Balance, end of period
|
|
$
|
—
|
|
|
$
|
403
|
|
|
$
|
564
|
|
|
$
|
(263
|
)
|
|
$
|
(443
|
)
|
|
$
|
1,039
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2018 (6)
|
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
|
$
|
(38
|
)
|
|
$
|
168
|
|
|
$
|
—
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2017 (6)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32
|
|
|
$
|
27
|
|
|
$
|
271
|
|
|
$
|
—
|
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||
|
|
Fixed Maturity Securities AFS
|
|
|
|
|
||||||||||||||||||
|
|
Corporate (1)
|
|
Foreign
Government |
|
Structured
Securities
|
|
State and
Political Subdivision |
|
Equity
Securities
|
|
Unit-linked and FVO
Securities
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Nine Months Ended September 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)
|
|
13
|
|
|
1
|
|
|
73
|
|
|
—
|
|
|
(11
|
)
|
|
(7
|
)
|
||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
(621
|
)
|
|
(16
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Purchases (4)
|
|
1,606
|
|
|
5
|
|
|
919
|
|
|
—
|
|
|
11
|
|
|
77
|
|
||||||
Sales (4)
|
|
(1,366
|
)
|
|
(21
|
)
|
|
(788
|
)
|
|
—
|
|
|
(20
|
)
|
|
(162
|
)
|
||||||
Issuances (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Transfers into Level 3 (5)
|
|
88
|
|
|
—
|
|
|
50
|
|
|
—
|
|
|
45
|
|
|
10
|
|
||||||
Transfers out of Level 3 (5)
|
|
(606
|
)
|
|
(38
|
)
|
|
(880
|
)
|
|
—
|
|
|
(10
|
)
|
|
(54
|
)
|
||||||
Balance, end of period
|
|
$
|
10,333
|
|
|
$
|
140
|
|
|
$
|
4,216
|
|
|
$
|
—
|
|
|
$
|
443
|
|
|
$
|
226
|
|
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
$
|
11,537
|
|
|
$
|
289
|
|
|
$
|
5,215
|
|
|
$
|
10
|
|
|
$
|
468
|
|
|
$
|
287
|
|
Total realized/unrealized gains (losses) included in net income (loss) (2), (3)
|
|
6
|
|
|
3
|
|
|
80
|
|
|
—
|
|
|
(14
|
)
|
|
20
|
|
||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
612
|
|
|
4
|
|
|
118
|
|
|
2
|
|
|
30
|
|
|
—
|
|
||||||
Purchases (4)
|
|
2,802
|
|
|
7
|
|
|
867
|
|
|
—
|
|
|
18
|
|
|
209
|
|
||||||
Sales (4)
|
|
(1,487
|
)
|
|
(97
|
)
|
|
(1,329
|
)
|
|
—
|
|
|
(74
|
)
|
|
(115
|
)
|
||||||
Issuances (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Transfers into Level 3 (5)
|
|
83
|
|
|
—
|
|
|
10
|
|
|
59
|
|
|
—
|
|
|
3
|
|
||||||
Transfers out of Level 3 (5)
|
|
(1,435
|
)
|
|
(8
|
)
|
|
(428
|
)
|
|
(10
|
)
|
|
(4
|
)
|
|
(100
|
)
|
||||||
Balance, end of period
|
|
$
|
12,118
|
|
|
$
|
198
|
|
|
$
|
4,533
|
|
|
$
|
61
|
|
|
$
|
424
|
|
|
$
|
304
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2018 (6)
|
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
66
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(8
|
)
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2017 (6)
|
|
$
|
6
|
|
|
$
|
3
|
|
|
$
|
68
|
|
|
$
|
—
|
|
|
$
|
(12
|
)
|
|
$
|
16
|
|
|
|
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)
|
||||||||||||||||||||||
Nine Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
$
|
—
|
|
|
$
|
33
|
|
|
$
|
520
|
|
|
$
|
(132
|
)
|
|
$
|
(274
|
)
|
|
$
|
959
|
|
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)
|
|
6
|
|
|
—
|
|
|
7
|
|
|
(151
|
)
|
|
355
|
|
|
2
|
|
||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(228
|
)
|
|
6
|
|
|
—
|
|
||||||
Purchases (4)
|
|
1
|
|
|
659
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
200
|
|
||||||
Sales (4)
|
|
(68
|
)
|
|
(11
|
)
|
|
(151
|
)
|
|
—
|
|
|
—
|
|
|
(162
|
)
|
||||||
Issuances (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||||
Settlements (4)
|
|
—
|
|
|
—
|
|
|
(53
|
)
|
|
100
|
|
|
(226
|
)
|
|
—
|
|
||||||
Transfers into Level 3 (5)
|
|
216
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
81
|
|
||||||
Transfers out of Level 3 (5)
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(76
|
)
|
||||||
Balance, end of period
|
|
$
|
155
|
|
|
$
|
654
|
|
|
$
|
323
|
|
|
$
|
(407
|
)
|
|
$
|
(139
|
)
|
|
$
|
1,001
|
|
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
$
|
—
|
|
|
$
|
46
|
|
|
$
|
566
|
|
|
$
|
(562
|
)
|
|
$
|
(729
|
)
|
|
$
|
1,141
|
|
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)
|
|
—
|
|
|
—
|
|
|
38
|
|
|
47
|
|
|
573
|
|
|
(22
|
)
|
||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|
144
|
|
|
(42
|
)
|
|
—
|
|
||||||
Purchases (4)
|
|
—
|
|
|
401
|
|
|
184
|
|
|
—
|
|
|
—
|
|
|
271
|
|
||||||
Sales (4)
|
|
—
|
|
|
(2
|
)
|
|
(155
|
)
|
|
—
|
|
|
—
|
|
|
(78
|
)
|
||||||
Issuances (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
1
|
|
||||||
Settlements (4)
|
|
—
|
|
|
—
|
|
|
(69
|
)
|
|
115
|
|
|
(245
|
)
|
|
(62
|
)
|
||||||
Transfers into Level 3 (5)
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
||||||
Transfers out of Level 3 (5)
|
|
—
|
|
|
(44
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(233
|
)
|
||||||
Balance, end of period
|
|
$
|
—
|
|
|
$
|
403
|
|
|
$
|
564
|
|
|
$
|
(263
|
)
|
|
$
|
(443
|
)
|
|
$
|
1,039
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2018 (6)
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
(13
|
)
|
|
$
|
(66
|
)
|
|
$
|
352
|
|
|
$
|
—
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2017 (6)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
38
|
|
|
$
|
27
|
|
|
$
|
550
|
|
|
$
|
—
|
|
(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.
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
|
(In millions)
|
||||||
Unpaid principal balance
|
|
$
|
401
|
|
|
$
|
650
|
|
Difference between estimated fair value and unpaid principal balance
|
|
(78
|
)
|
|
(130
|
)
|
||
Carrying value at estimated fair value
|
|
$
|
323
|
|
|
$
|
520
|
|
Loans in nonaccrual status
|
|
$
|
104
|
|
|
$
|
198
|
|
Loans more than 90 days past due
|
|
$
|
49
|
|
|
$
|
94
|
|
Loans in nonaccrual status or more than 90 days past due, or both — difference between aggregate estimated fair value and unpaid principal balance
|
|
$
|
(56
|
)
|
|
$
|
(102
|
)
|
|
|
September 30, 2018
|
||||||||||||||||||
|
|
|
|
Fair Value Hierarchy
|
|
|
||||||||||||||
|
|
Carrying
Value |
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated Fair Value |
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage loans
|
|
$
|
72,138
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
72,559
|
|
|
$
|
72,559
|
|
Policy loans
|
|
$
|
9,703
|
|
|
$
|
—
|
|
|
$
|
341
|
|
|
$
|
10,859
|
|
|
$
|
11,200
|
|
Other invested assets
|
|
$
|
1,167
|
|
|
$
|
—
|
|
|
$
|
793
|
|
|
$
|
374
|
|
|
$
|
1,167
|
|
Premiums, reinsurance and other receivables
|
|
$
|
4,106
|
|
|
$
|
—
|
|
|
$
|
1,216
|
|
|
$
|
3,013
|
|
|
$
|
4,229
|
|
Other assets
|
|
$
|
323
|
|
|
$
|
—
|
|
|
$
|
139
|
|
|
$
|
182
|
|
|
$
|
321
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder account balances
|
|
$
|
115,800
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
115,801
|
|
|
$
|
115,801
|
|
Long-term debt
|
|
$
|
13,398
|
|
|
$
|
—
|
|
|
$
|
14,284
|
|
|
$
|
—
|
|
|
$
|
14,284
|
|
Collateral financing arrangement
|
|
$
|
1,073
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
877
|
|
|
$
|
877
|
|
Junior subordinated debt securities
|
|
$
|
3,146
|
|
|
$
|
—
|
|
|
$
|
3,959
|
|
|
$
|
—
|
|
|
$
|
3,959
|
|
Other liabilities
|
|
$
|
3,596
|
|
|
$
|
—
|
|
|
$
|
1,947
|
|
|
$
|
2,117
|
|
|
$
|
4,064
|
|
Separate account liabilities
|
|
$
|
107,524
|
|
|
$
|
—
|
|
|
$
|
107,524
|
|
|
$
|
—
|
|
|
$
|
107,524
|
|
|
|
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
|
|
|
|
September 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
|
|
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)
|
|
|
|
|
||||||||||||||||||||||||||
August 15, 2018
|
|
August 31, 2018
|
|
September 17, 2018
|
|
$
|
0.256
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28.233
|
|
|
$
|
14
|
|
|
$
|
394.531
|
|
|
$
|
12
|
|
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
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
$
|
19
|
|
|
|
|
$
|
39
|
|
|
|
|
$
|
14
|
|
|
|
|
$
|
12
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
August 15, 2017
|
|
August 31, 2017
|
|
September 15, 2017
|
|
$
|
0.256
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
May 15, 2017
|
|
May 31, 2017
|
|
June 15, 2017
|
|
$
|
0.256
|
|
|
7
|
|
|
$
|
26.250
|
|
|
39
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
||||
March 6, 2017
|
|
February 28, 2017
|
|
March 15, 2017
|
|
$
|
0.250
|
|
|
6
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
$
|
19
|
|
|
|
|
$
|
39
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
Declaration Date
|
|
Record Date
|
|
Payment Date
|
|
Common Stock Dividend
|
||||||
Per Share
|
|
Aggregate
|
||||||||||
|
|
|
|
|
|
(In millions, except per share data)
|
||||||
July 6, 2018
|
|
August 6, 2018
|
|
September 13, 2018
|
|
$
|
0.420
|
|
|
$
|
419
|
|
April 24, 2018
|
|
May 7, 2018
|
|
June 13, 2018
|
|
$
|
0.420
|
|
|
428
|
|
|
January 5, 2018
|
|
February 5, 2018
|
|
March 13, 2018
|
|
$
|
0.400
|
|
|
416
|
|
|
|
|
|
|
|
|
|
|
$
|
1,263
|
|
||
|
|
|
|
|
|
|
|
|
||||
July 7, 2017
|
|
August 7, 2017
|
|
September 13, 2017
|
|
$
|
0.400
|
|
|
$
|
427
|
|
April 25, 2017
|
|
May 8, 2017
|
|
June 13, 2017
|
|
$
|
0.400
|
|
|
431
|
|
|
January 6, 2017
|
|
February 6, 2017
|
|
March 13, 2017
|
|
$
|
0.400
|
|
|
437
|
|
|
|
|
|
|
|
|
|
|
$
|
1,295
|
|
Company
|
|
Paid (1)
|
|
Permitted Without
Approval (2) |
||||||
|
|
(In millions)
|
||||||||
Metropolitan Life Insurance Company
|
|
$
|
2,424
|
|
(3
|
)
|
|
$
|
3,075
|
|
American Life Insurance Company
|
|
$
|
2,200
|
|
(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 ordinary dividends of
$1.7 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 MLIC for statutory accounting purposes. The affiliate received a capital contribution in cash from MetLife, Inc. to fund the purchase.
|
(4)
|
Represents extraordinary dividends.
|
(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 re-domestication, MTL is subject to the dividend restrictions under Nebraska law, which are based on amounts reported in MTL’s stand-alone statutory financial statements for the year ended December 31, 2017.
|
|
|
Three Months
Ended September 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
|
|
$
|
8,538
|
|
|
$
|
1,165
|
|
|
$
|
(4,670
|
)
|
|
$
|
(2,179
|
)
|
|
$
|
2,854
|
|
OCI before reclassifications
|
|
(1,953
|
)
|
|
(295
|
)
|
|
(240
|
)
|
|
131
|
|
|
(2,357
|
)
|
|||||
Deferred income tax benefit (expense)
|
|
436
|
|
|
(22
|
)
|
|
15
|
|
|
(27
|
)
|
|
402
|
|
|||||
AOCI before reclassifications, net of income tax
|
|
7,021
|
|
|
848
|
|
|
(4,895
|
)
|
|
(2,075
|
)
|
|
899
|
|
|||||
Amounts reclassified from AOCI
|
|
(30
|
)
|
|
4
|
|
|
—
|
|
|
31
|
|
|
5
|
|
|||||
Deferred income tax benefit (expense)
|
|
7
|
|
|
96
|
|
|
—
|
|
|
(7
|
)
|
|
96
|
|
|||||
Amounts reclassified from AOCI, net of income tax
|
|
(23
|
)
|
|
100
|
|
|
—
|
|
|
24
|
|
|
101
|
|
|||||
Balance, end of period
|
|
$
|
6,998
|
|
|
$
|
948
|
|
|
$
|
(4,895
|
)
|
|
$
|
(2,051
|
)
|
|
$
|
1,000
|
|
|
||||||||||||||||||||
|
|
Three Months
Ended September 30, 2017 |
||||||||||||||||||
|
|
Unrealized
Investment Gains
(Losses), Net of
Related Offsets (1)
|
|
Unrealized
Gains (Losses)
on Derivatives
|
|
Foreign
Currency
Translation
Adjustments
|
|
Defined
Benefit
Plans
Adjustment
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Balance, beginning of period
|
|
$
|
13,469
|
|
|
$
|
1,569
|
|
|
$
|
(4,679
|
)
|
|
$
|
(1,923
|
)
|
|
$
|
8,436
|
|
OCI before reclassifications
|
|
803
|
|
|
(166
|
)
|
|
193
|
|
|
2
|
|
|
832
|
|
|||||
Deferred income tax benefit (expense)
|
|
(270
|
)
|
|
56
|
|
|
(6
|
)
|
|
2
|
|
|
(218
|
)
|
|||||
AOCI before reclassifications, net of income tax
|
|
14,002
|
|
|
1,459
|
|
|
(4,492
|
)
|
|
(1,919
|
)
|
|
9,050
|
|
|||||
Amounts reclassified from AOCI
|
|
(360
|
)
|
|
(307
|
)
|
|
—
|
|
|
40
|
|
|
(627
|
)
|
|||||
Deferred income tax benefit (expense)
|
|
126
|
|
|
107
|
|
|
—
|
|
|
(17
|
)
|
|
216
|
|
|||||
Amounts reclassified from AOCI, net of income tax
|
|
(234
|
)
|
|
(200
|
)
|
|
—
|
|
|
23
|
|
|
(411
|
)
|
|||||
Disposal of subsidiary (3)
|
|
(2,286
|
)
|
|
(305
|
)
|
|
51
|
|
|
28
|
|
|
(2,512
|
)
|
|||||
Deferred income tax benefit (expense)
|
|
800
|
|
|
107
|
|
|
(19
|
)
|
|
(10
|
)
|
|
878
|
|
|||||
Disposal of subsidiary, net of income tax
|
|
(1,486
|
)
|
|
(198
|
)
|
|
32
|
|
|
18
|
|
|
(1,634
|
)
|
|||||
Balance, end of period
|
|
$
|
12,282
|
|
|
$
|
1,061
|
|
|
$
|
(4,460
|
)
|
|
$
|
(1,878
|
)
|
|
$
|
7,005
|
|
|
|
Nine Months
Ended September 30, 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
|
|
(8,860
|
)
|
|
(506
|
)
|
|
(657
|
)
|
|
130
|
|
|
(9,893
|
)
|
|||||
Deferred income tax benefit (expense)
|
|
1,977
|
|
|
77
|
|
|
24
|
|
|
(27
|
)
|
|
2,051
|
|
|||||
AOCI before reclassifications, net of income tax
|
|
5,874
|
|
|
476
|
|
|
(5,023
|
)
|
|
(1,742
|
)
|
|
(415
|
)
|
|||||
Amounts reclassified from AOCI
|
|
98
|
|
|
309
|
|
|
—
|
|
|
93
|
|
|
500
|
|
|||||
Deferred income tax benefit (expense)
|
|
(22
|
)
|
|
(47
|
)
|
|
—
|
|
|
(20
|
)
|
|
(89
|
)
|
|||||
Amounts reclassified from AOCI, net of income tax
|
|
76
|
|
|
262
|
|
|
—
|
|
|
73
|
|
|
411
|
|
|||||
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
|
|
$
|
6,998
|
|
|
$
|
948
|
|
|
$
|
(4,895
|
)
|
|
$
|
(2,051
|
)
|
|
$
|
1,000
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Nine Months
Ended September 30, 2017 |
||||||||||||||||||
|
|
Unrealized
Investment Gains
(Losses), Net of
Related Offsets (1)
|
|
Unrealized
Gains (Losses)
on Derivatives
|
|
Foreign
Currency
Translation
Adjustments
|
|
Defined
Benefit
Plans
Adjustment
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Balance, beginning of period
|
|
$
|
10,785
|
|
|
$
|
1,865
|
|
|
$
|
(5,312
|
)
|
|
$
|
(1,972
|
)
|
|
$
|
5,366
|
|
OCI before reclassifications
|
|
4,796
|
|
|
37
|
|
|
710
|
|
|
(17
|
)
|
|
5,526
|
|
|||||
Deferred income tax benefit (expense)
|
|
(1,675
|
)
|
|
(14
|
)
|
|
110
|
|
|
7
|
|
|
(1,572
|
)
|
|||||
AOCI before reclassifications, net of income tax
|
|
13,906
|
|
|
1,888
|
|
|
(4,492
|
)
|
|
(1,982
|
)
|
|
9,320
|
|
|||||
Amounts reclassified from AOCI
|
|
(211
|
)
|
|
(965
|
)
|
|
—
|
|
|
125
|
|
|
(1,051
|
)
|
|||||
Deferred income tax benefit (expense)
|
|
73
|
|
|
336
|
|
|
—
|
|
|
(39
|
)
|
|
370
|
|
|||||
Amounts reclassified from AOCI, net of income tax
|
|
(138
|
)
|
|
(629
|
)
|
|
—
|
|
|
86
|
|
|
(681
|
)
|
|||||
Disposal of subsidiary (3)
|
|
(2,286
|
)
|
|
(305
|
)
|
|
51
|
|
|
28
|
|
|
(2,512
|
)
|
|||||
Deferred income tax benefit (expense)
|
|
800
|
|
|
107
|
|
|
(19
|
)
|
|
(10
|
)
|
|
878
|
|
|||||
Disposal of subsidiary, net of income tax
|
|
(1,486
|
)
|
|
(198
|
)
|
|
32
|
|
|
18
|
|
|
(1,634
|
)
|
|||||
Balance, end of period
|
|
$
|
12,282
|
|
|
$
|
1,061
|
|
|
$
|
(4,460
|
)
|
|
$
|
(1,878
|
)
|
|
$
|
7,005
|
|
(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
.
|
AOCI Components
|
|
Amounts Reclassified from AOCI
|
|
Consolidated Statements of
Operations and
Comprehensive Income (Loss)
Locations
|
||||||||||||||
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
|
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
||||||||
|
|
(In millions)
|
|
|
||||||||||||||
Net unrealized investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net unrealized investment gains (losses)
|
|
$
|
101
|
|
|
$
|
303
|
|
|
$
|
(36
|
)
|
|
$
|
386
|
|
|
Net investment gains (losses)
|
Net unrealized investment gains (losses)
|
|
9
|
|
|
(1
|
)
|
|
9
|
|
|
—
|
|
|
Net investment income
|
||||
Net unrealized investment gains (losses)
|
|
(80
|
)
|
|
55
|
|
|
(71
|
)
|
|
(89
|
)
|
|
Net derivative gains (losses)
|
||||
Net unrealized investment gains (losses)
|
|
—
|
|
|
3
|
|
|
—
|
|
|
(86
|
)
|
|
Discontinued operations
|
||||
Net unrealized investment gains (losses), before income tax
|
|
30
|
|
|
360
|
|
|
(98
|
)
|
|
211
|
|
|
|
||||
Income tax (expense) benefit
|
|
(7
|
)
|
|
(126
|
)
|
|
22
|
|
|
(73
|
)
|
|
|
||||
Net unrealized investment gains (losses), net of income tax
|
|
23
|
|
|
234
|
|
|
(76
|
)
|
|
138
|
|
|
|
||||
Unrealized gains (losses) on derivatives - cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
1
|
|
|
9
|
|
|
18
|
|
|
23
|
|
|
Net derivative gains (losses)
|
||||
Interest rate swaps
|
|
4
|
|
|
5
|
|
|
13
|
|
|
12
|
|
|
Net investment income
|
||||
Interest rate swaps
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
Discontinued operations
|
||||
Interest rate forwards
|
|
(3
|
)
|
|
(1
|
)
|
|
—
|
|
|
(5
|
)
|
|
Net derivative gains (losses)
|
||||
Interest rate forwards
|
|
1
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
Net investment income
|
||||
Interest rate forwards
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
Other expenses
|
||||
Interest rate forwards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
Discontinued operations
|
||||
Foreign currency swaps
|
|
(6
|
)
|
|
294
|
|
|
(342
|
)
|
|
915
|
|
|
Net derivative gains (losses)
|
||||
Foreign currency swaps
|
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
|
Net investment income
|
||||
Foreign currency swaps
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
Other expenses
|
||||
Foreign currency swaps
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
Discontinued operations
|
||||
Credit forwards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
Net derivative gains (losses)
|
||||
Gains (losses) on cash flow hedges, before income tax
|
|
(4
|
)
|
|
307
|
|
|
(309
|
)
|
|
965
|
|
|
|
||||
Income tax (expense) benefit
|
|
(96
|
)
|
|
(107
|
)
|
|
47
|
|
|
(336
|
)
|
|
|
||||
Gains (losses) on cash flow hedges, net of income tax
|
|
(100
|
)
|
|
200
|
|
|
(262
|
)
|
|
629
|
|
|
|
||||
Defined benefit plans adjustment: (1)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Amortization of net actuarial gains (losses)
|
|
(37
|
)
|
|
(46
|
)
|
|
(108
|
)
|
|
(143
|
)
|
|
|
||||
Amortization of prior service (costs) credit
|
|
6
|
|
|
6
|
|
|
15
|
|
|
18
|
|
|
|
||||
Amortization of defined benefit plan items, before income tax
|
|
(31
|
)
|
|
(40
|
)
|
|
(93
|
)
|
|
(125
|
)
|
|
|
||||
Income tax (expense) benefit
|
|
7
|
|
|
17
|
|
|
20
|
|
|
39
|
|
|
|
||||
Amortization of defined benefit plan items, net of income tax
|
|
(24
|
)
|
|
(23
|
)
|
|
(73
|
)
|
|
(86
|
)
|
|
|
||||
Total reclassifications, net of income tax
|
|
$
|
(101
|
)
|
|
$
|
411
|
|
|
$
|
(411
|
)
|
|
$
|
681
|
|
|
|
(1)
|
These AOCI components are included in the computation of net periodic benefit costs. See Note
12
.
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(In millions)
|
||||||||||||||
Employee related costs
|
|
$
|
921
|
|
|
$
|
935
|
|
|
$
|
2,752
|
|
|
$
|
2,751
|
|
Third party staffing costs
|
|
435
|
|
|
413
|
|
|
1,217
|
|
|
1,173
|
|
||||
General and administrative expenses
|
|
290
|
|
|
229
|
|
|
884
|
|
|
768
|
|
||||
Pension, postretirement and postemployment benefit costs
|
|
45
|
|
|
86
|
|
|
141
|
|
|
241
|
|
||||
Premium taxes, other taxes, and licenses & fees
|
|
193
|
|
|
145
|
|
|
559
|
|
|
468
|
|
||||
Commissions and other variable expenses
|
|
1,403
|
|
|
1,393
|
|
|
4,257
|
|
|
4,003
|
|
||||
Capitalization of DAC
|
|
(810
|
)
|
|
(761
|
)
|
|
(2,440
|
)
|
|
(2,218
|
)
|
||||
Amortization of DAC and VOBA
|
|
732
|
|
|
626
|
|
|
2,132
|
|
|
1,945
|
|
||||
Amortization of negative VOBA
|
|
(7
|
)
|
|
(32
|
)
|
|
(45
|
)
|
|
(113
|
)
|
||||
Interest expense on debt
|
|
267
|
|
|
284
|
|
|
862
|
|
|
851
|
|
||||
Total other expenses
|
|
$
|
3,469
|
|
|
$
|
3,318
|
|
|
$
|
10,319
|
|
|
$
|
9,869
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Severance
|
||||||||||||||
|
(In millions)
|
||||||||||||||
Balance, beginning of period
|
$
|
20
|
|
|
$
|
17
|
|
|
$
|
22
|
|
|
$
|
35
|
|
Restructuring charges
|
17
|
|
|
3
|
|
|
35
|
|
|
25
|
|
||||
Cash payments
|
(17
|
)
|
|
(3
|
)
|
|
(37
|
)
|
|
(43
|
)
|
||||
Balance, end of period
|
$
|
20
|
|
|
$
|
17
|
|
|
$
|
20
|
|
|
$
|
17
|
|
Total restructuring charges incurred since inception of initiative
|
$
|
108
|
|
|
$
|
60
|
|
|
$
|
108
|
|
|
$
|
60
|
|
|
|
Three Months
Ended September 30, |
||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||
|
|
Pension
Benefits
|
|
Other
Postretirement
Benefits
|
|
Pension
Benefits
|
|
Other
Postretirement
Benefits
|
||||||||
|
|
(In millions)
|
||||||||||||||
Service costs
|
|
$
|
58
|
|
|
$
|
1
|
|
|
$
|
62
|
|
|
$
|
1
|
|
Interest costs
|
|
95
|
|
|
13
|
|
|
106
|
|
|
19
|
|
||||
Divestitures
|
|
—
|
|
|
—
|
|
|
3
|
|
|
2
|
|
||||
Expected return on plan assets
|
|
(133
|
)
|
|
(18
|
)
|
|
(129
|
)
|
|
(18
|
)
|
||||
Amortization of net actuarial (gains) losses
|
|
46
|
|
|
(9
|
)
|
|
46
|
|
|
—
|
|
||||
Amortization of prior service costs (credit)
|
|
(1
|
)
|
|
(5
|
)
|
|
—
|
|
|
(6
|
)
|
||||
Net periodic benefit costs (credit)
|
|
$
|
65
|
|
|
$
|
(18
|
)
|
|
$
|
88
|
|
|
$
|
(2
|
)
|
|
|
Nine Months
Ended September 30, |
||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||
|
|
Pension
Benefits
|
|
Other
Postretirement
Benefits
|
|
Pension
Benefits
|
|
Other
Postretirement
Benefits
|
||||||||
|
|
(In millions)
|
||||||||||||||
Service costs
|
|
$
|
176
|
|
|
$
|
4
|
|
|
$
|
184
|
|
|
$
|
4
|
|
Interest costs
|
|
287
|
|
|
39
|
|
|
318
|
|
|
57
|
|
||||
Divestitures
|
|
—
|
|
|
—
|
|
|
3
|
|
|
2
|
|
||||
Expected return on plan assets
|
|
(400
|
)
|
|
(54
|
)
|
|
(387
|
)
|
|
(54
|
)
|
||||
Amortization of net actuarial (gains) losses
|
|
134
|
|
|
(26
|
)
|
|
143
|
|
|
—
|
|
||||
Amortization of prior service costs (credit)
|
|
(1
|
)
|
|
(14
|
)
|
|
(1
|
)
|
|
(17
|
)
|
||||
Net periodic benefit costs (credit)
|
|
$
|
196
|
|
|
$
|
(51
|
)
|
|
$
|
260
|
|
|
$
|
(8
|
)
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 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
|
|
992.7
|
|
|
1,062.3
|
|
|
1,014.6
|
|
|
1,075.5
|
|
||||
Incremental common shares from assumed exercise or issuance of stock-based awards
|
|
8.0
|
|
|
9.2
|
|
|
8.2
|
|
|
8.5
|
|
||||
Weighted average common stock outstanding for diluted earnings per common share
|
|
1,000.7
|
|
|
1,071.5
|
|
|
1,022.8
|
|
|
1,084.0
|
|
||||
Income (Loss) from Continuing Operations:
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations, net of income tax
|
|
$
|
915
|
|
|
$
|
883
|
|
|
$
|
3,066
|
|
|
$
|
2,691
|
|
Less: Income (loss) from continuing operations, net of income tax, attributable to noncontrolling interests
|
|
3
|
|
|
6
|
|
|
10
|
|
|
12
|
|
||||
Less: Preferred stock dividends
|
|
32
|
|
|
6
|
|
|
84
|
|
|
58
|
|
||||
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders
|
|
$
|
880
|
|
|
$
|
871
|
|
|
$
|
2,972
|
|
|
$
|
2,621
|
|
Basic
|
|
$
|
0.89
|
|
|
$
|
0.82
|
|
|
$
|
2.93
|
|
|
$
|
2.44
|
|
Diluted
|
|
$
|
0.88
|
|
|
$
|
0.81
|
|
|
$
|
2.91
|
|
|
$
|
2.42
|
|
Income (Loss) from Discontinued Operations:
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from discontinued operations, net of income tax
|
|
$
|
—
|
|
|
$
|
(968
|
)
|
|
$
|
—
|
|
|
$
|
(986
|
)
|
Less: Income (loss) from discontinued operations, net of income tax, attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Income (loss) from discontinued operations, net of income tax, available to MetLife, Inc.’s common shareholders
|
|
$
|
—
|
|
|
$
|
(968
|
)
|
|
$
|
—
|
|
|
$
|
(986
|
)
|
Basic
|
|
$
|
—
|
|
|
$
|
(0.91
|
)
|
|
$
|
—
|
|
|
$
|
(0.92
|
)
|
Diluted
|
|
$
|
—
|
|
|
$
|
(0.90
|
)
|
|
$
|
—
|
|
|
$
|
(0.91
|
)
|
Net Income (Loss):
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
|
$
|
915
|
|
|
$
|
(85
|
)
|
|
$
|
3,066
|
|
|
$
|
1,705
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
3
|
|
|
6
|
|
|
10
|
|
|
12
|
|
||||
Less: Preferred stock dividends
|
|
32
|
|
|
6
|
|
|
84
|
|
|
58
|
|
||||
Net income (loss) available to MetLife, Inc.’s common shareholders
|
|
$
|
880
|
|
|
$
|
(97
|
)
|
|
$
|
2,972
|
|
|
$
|
1,635
|
|
Basic
|
|
$
|
0.89
|
|
|
$
|
(0.09
|
)
|
|
$
|
2.93
|
|
|
$
|
1.52
|
|
Diluted
|
|
$
|
0.88
|
|
|
$
|
(0.09
|
)
|
|
$
|
2.91
|
|
|
$
|
1.51
|
|
|
Page
|
(1)
|
Excludes Corporate & Other adjusted loss available to common shareholders of
$237 million
.
|
(2)
|
Consistent with GAAP guidance for segment reporting, adjusted earnings is our GAAP measure of segment performance. For additional information see
Note 2
of the Notes to the Interim Condensed Consolidated Financial Statements.
|
|
•
|
favorable reserve adjustments of $55 million, net of income tax, resulting from modeling improvements in the reserving process in certain of our life businesses
|
||
|
•
|
a $21 million, net of income tax, charge for expenses incurred related to a guaranty fund assessment for Penn Treaty Network America Insurance Company (“Penn Treaty”)
|
||
|
•
|
a benefit of $12 million, net of income tax, related to a refinement to prior period reinsurance receivables in Australia
|
(i)
|
liabilities for future policy benefits and the accounting for reinsurance;
|
(ii)
|
capitalization and amortization of DAC and the establishment and amortization of VOBA;
|
(iii)
|
estimated fair values of investments in the absence of quoted market values;
|
(iv)
|
investment impairments;
|
(v)
|
estimated fair values of freestanding derivatives and the recognition and estimated fair value of embedded derivatives requiring bifurcation;
|
(vi)
|
measurement of goodwill and related impairment;
|
(vii)
|
measurement of employee benefit plan liabilities;
|
(viii)
|
measurement of income taxes and the valuation of deferred tax assets; and
|
(ix)
|
liabilities for litigation and regulatory matters.
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(In millions)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
Premiums
|
|
$
|
10,242
|
|
|
$
|
10,876
|
|
|
$
|
34,573
|
|
|
$
|
29,421
|
|
Universal life and investment-type product policy fees
|
|
1,343
|
|
|
1,428
|
|
|
4,105
|
|
|
4,152
|
|
||||
Net investment income
|
|
4,486
|
|
|
4,295
|
|
|
12,704
|
|
|
12,909
|
|
||||
Other revenues
|
|
479
|
|
|
301
|
|
|
1,428
|
|
|
935
|
|
||||
Net investment gains (losses)
|
|
117
|
|
|
(606
|
)
|
|
(443
|
)
|
|
(414
|
)
|
||||
Net derivative gains (losses)
|
|
(378
|
)
|
|
(123
|
)
|
|
(88
|
)
|
|
(535
|
)
|
||||
Total revenues
|
|
16,289
|
|
|
16,171
|
|
|
52,279
|
|
|
46,468
|
|
||||
Expenses
|
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims and policyholder dividends
|
|
10,407
|
|
|
11,030
|
|
|
34,597
|
|
|
29,943
|
|
||||
Interest credited to policyholder account balances
|
|
1,334
|
|
|
1,338
|
|
|
3,527
|
|
|
4,081
|
|
||||
Capitalization of DAC
|
|
(810
|
)
|
|
(761
|
)
|
|
(2,440
|
)
|
|
(2,218
|
)
|
||||
Amortization of DAC and VOBA
|
|
732
|
|
|
626
|
|
|
2,132
|
|
|
1,945
|
|
||||
Amortization of negative VOBA
|
|
(7
|
)
|
|
(32
|
)
|
|
(45
|
)
|
|
(113
|
)
|
||||
Interest expense on debt
|
|
267
|
|
|
284
|
|
|
862
|
|
|
851
|
|
||||
Other expenses
|
|
3,287
|
|
|
3,201
|
|
|
9,810
|
|
|
9,404
|
|
||||
Total expenses
|
|
15,210
|
|
|
15,686
|
|
|
48,443
|
|
|
43,893
|
|
||||
Income (loss) from continuing operations before provision for income tax
|
|
1,079
|
|
|
485
|
|
|
3,836
|
|
|
2,575
|
|
||||
Provision for income tax expense (benefit)
|
|
164
|
|
|
(398
|
)
|
|
770
|
|
|
(116
|
)
|
||||
Income (loss) from continuing operations, net of income tax
|
|
915
|
|
|
883
|
|
|
3,066
|
|
|
2,691
|
|
||||
Income (loss) from discontinued operations, net of income tax
|
|
—
|
|
|
(968
|
)
|
|
—
|
|
|
(986
|
)
|
||||
Net income (loss)
|
|
915
|
|
|
(85
|
)
|
|
3,066
|
|
|
1,705
|
|
||||
Less: Net income (loss) attributable to noncontrolling interests
|
|
3
|
|
|
6
|
|
|
10
|
|
|
12
|
|
||||
Net income (loss) attributable to MetLife, Inc.
|
|
912
|
|
|
(91
|
)
|
|
3,056
|
|
|
1,693
|
|
||||
Less: Preferred stock dividends
|
|
32
|
|
|
6
|
|
|
84
|
|
|
58
|
|
||||
Net income (loss) available to MetLife, Inc.’s common shareholders
|
|
$
|
880
|
|
|
$
|
(97
|
)
|
|
$
|
2,972
|
|
|
$
|
1,635
|
|
|
Three Months Ended September 30,
|
||||||
|
2018
|
|
2017
|
||||
|
(In millions)
|
||||||
Non-VA program derivatives
|
|
|
|
||||
Interest rate
|
$
|
(270
|
)
|
|
$
|
(38
|
)
|
Foreign currency exchange rate
|
(44
|
)
|
|
(125
|
)
|
||
Credit
|
81
|
|
|
52
|
|
||
Equity
|
(74
|
)
|
|
10
|
|
||
Non-VA embedded derivatives
|
(20
|
)
|
|
(3
|
)
|
||
Total non-VA program derivatives
|
(327
|
)
|
|
(104
|
)
|
||
VA program derivatives
|
|
|
|
||||
Market risks in embedded derivatives
|
368
|
|
|
322
|
|
||
Nonperformance risk adjustment on embedded derivatives
|
(20
|
)
|
|
(21
|
)
|
||
Other risks in embedded derivatives
|
(161
|
)
|
|
3
|
|
||
Total embedded derivatives
|
187
|
|
|
304
|
|
||
Freestanding derivatives hedging embedded derivatives
|
(238
|
)
|
|
(323
|
)
|
||
Total VA program derivatives
|
(51
|
)
|
|
(19
|
)
|
||
Net derivative gains (losses)
|
$
|
(378
|
)
|
|
$
|
(123
|
)
|
•
|
Actuarial assumption updates associated with variable annuity guarantees assumed from our former operating joint venture in Japan, and
|
•
|
A combination of other factors, which include fees being deducted from accounts, changes in the benefit base, premiums, lapses, withdrawals and deaths.
|
•
|
Key equity index levels increased in the current period, contributing to current period losses on our freestanding derivatives and current period gains on our embedded derivatives.
The current period impact was less pronounced than the prior period, despite equity markets increasing more in the current period than in the prior period. This is due to the freestanding and embedded options becoming less sensitive to changes in equity index levels as these positions become further out of the money. F
or example, the S&P Global Ratings (“S&P”) 500 Index increased 7% in the current period and increased 4% in the prior period.
|
•
|
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. Our freestanding interest rate derivatives were favorably impacted by the restructuring of the VA hedging strategy. For example, the 30-year U.S. swap rate increased 20 basis points in the current period and decreased 1 basis point in the prior period.
|
•
|
Economic assumption updates resulted in net favorable changes of reserves and DAC of $38 million ($29 million, net of income tax).
|
•
|
Changes to biometric assumptions resulted in net favorable changes of reserves and DAC of $55 million ($44 million, net of income tax).
|
•
|
Changes in policyholder behavior assumptions resulted in a net charge of $321 million ($241 million, net of income tax).
|
•
|
Changes in operational assumptions, most notably related to closed block projections, resulted in a net charge of $130 million ($104 million, net of income tax).
|
|
Nine Months Ended September 30,
|
||||||
|
2018
|
|
2017
|
||||
|
(In millions)
|
||||||
Non-VA program derivatives
|
|
|
|
||||
Interest rate
|
$
|
(369
|
)
|
|
$
|
(20
|
)
|
Foreign currency exchange rate
|
245
|
|
|
(273
|
)
|
||
Credit
|
48
|
|
|
152
|
|
||
Equity
|
(75
|
)
|
|
(1
|
)
|
||
Non-VA embedded derivatives
|
4
|
|
|
(100
|
)
|
||
Total non-VA program derivatives
|
(147
|
)
|
|
(242
|
)
|
||
VA program derivatives
|
|
|
|
||||
Market risks in embedded derivatives
|
620
|
|
|
880
|
|
||
Nonperformance risk adjustment on embedded derivatives
|
(25
|
)
|
|
(162
|
)
|
||
Other risks in embedded derivatives
|
(244
|
)
|
|
(69
|
)
|
||
Total embedded derivatives
|
351
|
|
|
649
|
|
||
Freestanding derivatives hedging embedded derivatives
|
(292
|
)
|
|
(942
|
)
|
||
Total VA program derivatives
|
59
|
|
|
(293
|
)
|
||
Net derivative gains (losses)
|
$
|
(88
|
)
|
|
$
|
(535
|
)
|
•
|
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 9% in the current period and increased 13% in the prior period.
|
•
|
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 72 basis points in the current period and decreased 5 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 2% in the current period and weakened by 8% in the prior period.
|
•
|
Actuarial assumption updates associated with variable annuity guarantees assumed from our former operating joint venture in Japan,
|
•
|
Updates to actuarial policyholder behavior assumptions within the valuation model, and
|
•
|
A combination of other factors, which include fees being deducted from accounts, changes in the benefit base, premiums, lapses, withdrawals and deaths.
|
|
U.S.
|
|
Asia
|
|
Latin America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Net income (loss)
|
$
|
782
|
|
|
$
|
(27
|
)
|
|
$
|
198
|
|
|
$
|
57
|
|
|
$
|
62
|
|
|
$
|
(157
|
)
|
|
$
|
915
|
|
Less: Income (loss) from discontinued operations, net of income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Income (loss) from continuing operations, net of income tax
|
$
|
782
|
|
|
$
|
(27
|
)
|
|
$
|
198
|
|
|
$
|
57
|
|
|
$
|
62
|
|
|
$
|
(157
|
)
|
|
$
|
915
|
|
Less: Net investment gains (losses)
|
58
|
|
|
(72
|
)
|
|
5
|
|
|
3
|
|
|
58
|
|
|
65
|
|
|
117
|
|
|||||||
Less: Net derivative gains (losses)
|
(17
|
)
|
|
(339
|
)
|
|
35
|
|
|
39
|
|
|
(164
|
)
|
|
68
|
|
|
(378
|
)
|
|||||||
Less: Other adjustments to continuing operations (1)
|
(56
|
)
|
|
(8
|
)
|
|
(7
|
)
|
|
(34
|
)
|
|
(230
|
)
|
|
(25
|
)
|
|
(360
|
)
|
|||||||
Less: Provision for income tax (expense) benefit
|
2
|
|
|
126
|
|
|
(5
|
)
|
|
(6
|
)
|
|
71
|
|
|
(60
|
)
|
|
128
|
|
|||||||
Adjusted earnings
|
$
|
795
|
|
|
$
|
266
|
|
|
$
|
170
|
|
|
$
|
55
|
|
|
$
|
327
|
|
|
(205
|
)
|
|
1,408
|
|
||
Less: Preferred stock dividends
|
|
|
|
|
|
|
|
|
|
|
32
|
|
|
32
|
|
||||||||||||
Adjusted earnings available to common shareholders
|
|
|
|
|
|
|
|
|
|
|
$
|
(237
|
)
|
|
$
|
1,376
|
|
|
U.S.
|
|
Asia
|
|
Latin America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Net income (loss)
|
$
|
565
|
|
|
$
|
243
|
|
|
$
|
224
|
|
|
$
|
62
|
|
|
$
|
227
|
|
|
$
|
(1,406
|
)
|
|
$
|
(85
|
)
|
Less: Income (loss) from discontinued operations, net of income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(968
|
)
|
|
(968
|
)
|
|||||||
Income (loss) from continuing operations, net of income tax
|
$
|
565
|
|
|
$
|
243
|
|
|
$
|
224
|
|
|
$
|
62
|
|
|
$
|
227
|
|
|
$
|
(438
|
)
|
|
$
|
883
|
|
Less: Net investment gains (losses)
|
96
|
|
|
(37
|
)
|
|
20
|
|
|
(12
|
)
|
|
23
|
|
|
(696
|
)
|
|
(606
|
)
|
|||||||
Less: Net derivative gains (losses)
|
(14
|
)
|
|
(58
|
)
|
|
46
|
|
|
3
|
|
|
(98
|
)
|
|
(2
|
)
|
|
(123
|
)
|
|||||||
Less: Other adjustments to continuing operations (1)
|
(43
|
)
|
|
(12
|
)
|
|
25
|
|
|
—
|
|
|
(136
|
)
|
|
(328
|
)
|
|
(494
|
)
|
|||||||
Less: Provision for income tax (expense) benefit
|
(13
|
)
|
|
36
|
|
|
(30
|
)
|
|
—
|
|
|
74
|
|
|
918
|
|
|
985
|
|
|||||||
Adjusted earnings
|
$
|
539
|
|
|
$
|
314
|
|
|
$
|
163
|
|
|
$
|
71
|
|
|
$
|
364
|
|
|
(330
|
)
|
|
1,121
|
|
||
Less: Preferred stock dividends
|
|
|
|
|
|
|
|
|
|
|
6
|
|
|
6
|
|
||||||||||||
Adjusted earnings available to common shareholders
|
|
|
|
|
|
|
|
|
|
|
$
|
(336
|
)
|
|
$
|
1,115
|
|
(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)
|
$
|
2,054
|
|
|
$
|
772
|
|
|
$
|
438
|
|
|
$
|
216
|
|
|
$
|
611
|
|
|
$
|
(1,025
|
)
|
|
$
|
3,066
|
|
Less: Income (loss) from discontinued operations, net of income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Income (loss) from continuing operations, net of income tax
|
$
|
2,054
|
|
|
$
|
772
|
|
|
$
|
438
|
|
|
$
|
216
|
|
|
$
|
611
|
|
|
$
|
(1,025
|
)
|
|
$
|
3,066
|
|
Less: Net investment gains (losses)
|
15
|
|
|
11
|
|
|
9
|
|
|
1
|
|
|
(114
|
)
|
|
(365
|
)
|
|
(443
|
)
|
|||||||
Less: Net derivative gains (losses)
|
80
|
|
|
(257
|
)
|
|
68
|
|
|
38
|
|
|
(113
|
)
|
|
96
|
|
|
(88
|
)
|
|||||||
Less: Other adjustments to continuing operations (1)
|
(176
|
)
|
|
(21
|
)
|
|
(83
|
)
|
|
(42
|
)
|
|
(306
|
)
|
|
(111
|
)
|
|
(739
|
)
|
|||||||
Less: Provision for income tax (expense) benefit
|
16
|
|
|
83
|
|
|
(11
|
)
|
|
(3
|
)
|
|
112
|
|
|
(70
|
)
|
|
127
|
|
|||||||
Adjusted earnings
|
$
|
2,119
|
|
|
$
|
956
|
|
|
$
|
455
|
|
|
$
|
222
|
|
|
$
|
1,032
|
|
|
(575
|
)
|
|
4,209
|
|
||
Less: Preferred stock dividends
|
|
|
|
|
|
|
|
|
|
|
84
|
|
|
84
|
|
||||||||||||
Adjusted earnings available to common shareholders
|
|
|
|
|
|
|
|
|
|
|
$
|
(659
|
)
|
|
$
|
4,125
|
|
|
U.S.
|
|
Asia
|
|
Latin America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Net income (loss)
|
$
|
1,452
|
|
|
$
|
927
|
|
|
$
|
552
|
|
|
$
|
210
|
|
|
$
|
650
|
|
|
$
|
(2,086
|
)
|
|
$
|
1,705
|
|
Less: Income (loss) from discontinued operations, net of income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(986
|
)
|
|
(986
|
)
|
|||||||
Income (loss) from continuing operations, net of income tax
|
$
|
1,452
|
|
|
$
|
927
|
|
|
$
|
552
|
|
|
$
|
210
|
|
|
$
|
650
|
|
|
$
|
(1,100
|
)
|
|
$
|
2,691
|
|
Less: Net investment gains (losses)
|
78
|
|
|
61
|
|
|
34
|
|
|
(8
|
)
|
|
47
|
|
|
(626
|
)
|
|
(414
|
)
|
|||||||
Less: Net derivative gains (losses)
|
(34
|
)
|
|
(9
|
)
|
|
173
|
|
|
21
|
|
|
(321
|
)
|
|
(365
|
)
|
|
(535
|
)
|
|||||||
Less: Other adjustments to continuing operations (1)
|
(161
|
)
|
|
(28
|
)
|
|
(65
|
)
|
|
(7
|
)
|
|
(248
|
)
|
|
(817
|
)
|
|
(1,326
|
)
|
|||||||
Less: Provision for income tax (expense) benefit
|
40
|
|
|
(16
|
)
|
|
(50
|
)
|
|
(14
|
)
|
|
184
|
|
|
1,207
|
|
|
1,351
|
|
|||||||
Adjusted earnings
|
$
|
1,529
|
|
|
$
|
919
|
|
|
$
|
460
|
|
|
$
|
218
|
|
|
$
|
988
|
|
|
(499
|
)
|
|
3,615
|
|
||
Less: Preferred stock dividends
|
|
|
|
|
|
|
|
|
|
|
58
|
|
|
58
|
|
||||||||||||
Adjusted earnings available to common shareholders
|
|
|
|
|
|
|
|
|
|
|
$
|
(557
|
)
|
|
$
|
3,557
|
|
(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
|
$
|
8,654
|
|
|
$
|
2,623
|
|
|
$
|
1,304
|
|
|
$
|
823
|
|
|
$
|
2,560
|
|
|
$
|
325
|
|
|
$
|
16,289
|
|
Less: Net investment gains (losses)
|
58
|
|
|
(72
|
)
|
|
5
|
|
|
3
|
|
|
58
|
|
|
65
|
|
|
117
|
|
|||||||
Less: Net derivative gains (losses)
|
(17
|
)
|
|
(339
|
)
|
|
35
|
|
|
39
|
|
|
(164
|
)
|
|
68
|
|
|
(378
|
)
|
|||||||
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
10
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|||||||
Less: Other adjustments to revenues (1)
|
(63
|
)
|
|
65
|
|
|
(3
|
)
|
|
73
|
|
|
(14
|
)
|
|
81
|
|
|
139
|
|
|||||||
Total adjusted revenues
|
$
|
8,676
|
|
|
$
|
2,959
|
|
|
$
|
1,267
|
|
|
$
|
707
|
|
|
$
|
2,680
|
|
|
$
|
111
|
|
|
$
|
16,400
|
|
Total expenses
|
$
|
7,665
|
|
|
$
|
2,645
|
|
|
$
|
1,036
|
|
|
$
|
745
|
|
|
$
|
2,491
|
|
|
$
|
628
|
|
|
$
|
15,210
|
|
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
17
|
|
|
—
|
|
|
1
|
|
|
71
|
|
|
—
|
|
|
89
|
|
|||||||
Less: Other adjustments to expenses (1)
|
(7
|
)
|
|
66
|
|
|
4
|
|
|
107
|
|
|
145
|
|
|
106
|
|
|
421
|
|
|||||||
Total adjusted expenses
|
$
|
7,672
|
|
|
$
|
2,562
|
|
|
$
|
1,032
|
|
|
$
|
637
|
|
|
$
|
2,275
|
|
|
$
|
522
|
|
|
$
|
14,700
|
|
|
U.S.
|
|
Asia
|
|
Latin America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Total revenues
|
$
|
9,072
|
|
|
$
|
2,920
|
|
|
$
|
1,331
|
|
|
$
|
819
|
|
|
$
|
2,676
|
|
|
$
|
(647
|
)
|
|
$
|
16,171
|
|
Less: Net investment gains (losses)
|
96
|
|
|
(37
|
)
|
|
20
|
|
|
(12
|
)
|
|
23
|
|
|
(696
|
)
|
|
(606
|
)
|
|||||||
Less: Net derivative gains (losses)
|
(14
|
)
|
|
(58
|
)
|
|
46
|
|
|
3
|
|
|
(98
|
)
|
|
(2
|
)
|
|
(123
|
)
|
|||||||
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||||
Less: Other adjustments to revenues (1)
|
(43
|
)
|
|
85
|
|
|
29
|
|
|
116
|
|
|
(14
|
)
|
|
(53
|
)
|
|
120
|
|
|||||||
Total adjusted revenues
|
$
|
9,033
|
|
|
$
|
2,927
|
|
|
$
|
1,236
|
|
|
$
|
711
|
|
|
$
|
2,765
|
|
|
$
|
104
|
|
|
$
|
16,776
|
|
Total expenses
|
$
|
8,219
|
|
|
$
|
2,557
|
|
|
$
|
1,026
|
|
|
$
|
736
|
|
|
$
|
2,349
|
|
|
$
|
799
|
|
|
$
|
15,686
|
|
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
(6
|
)
|
|
2
|
|
|
(2
|
)
|
|||||||
Less: Other adjustments to expenses (1)
|
—
|
|
|
99
|
|
|
4
|
|
|
116
|
|
|
128
|
|
|
273
|
|
|
620
|
|
|||||||
Total adjusted expenses
|
$
|
8,219
|
|
|
$
|
2,457
|
|
|
$
|
1,022
|
|
|
$
|
619
|
|
|
$
|
2,227
|
|
|
$
|
524
|
|
|
$
|
15,068
|
|
(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
|
$
|
29,407
|
|
|
$
|
8,568
|
|
|
$
|
3,889
|
|
|
$
|
2,308
|
|
|
$
|
7,744
|
|
|
$
|
363
|
|
|
$
|
52,279
|
|
Less: Net investment gains (losses)
|
15
|
|
|
11
|
|
|
9
|
|
|
1
|
|
|
(114
|
)
|
|
(365
|
)
|
|
(443
|
)
|
|||||||
Less: Net derivative gains (losses)
|
80
|
|
|
(257
|
)
|
|
68
|
|
|
38
|
|
|
(113
|
)
|
|
96
|
|
|
(88
|
)
|
|||||||
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
3
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
1
|
|
|||||||
Less: Other adjustments to revenues (1)
|
(191
|
)
|
|
(5
|
)
|
|
(19
|
)
|
|
63
|
|
|
(46
|
)
|
|
243
|
|
|
45
|
|
|||||||
Total adjusted revenues
|
$
|
29,503
|
|
|
$
|
8,816
|
|
|
$
|
3,831
|
|
|
$
|
2,207
|
|
|
$
|
8,018
|
|
|
$
|
389
|
|
|
$
|
52,764
|
|
Total expenses
|
$
|
26,815
|
|
|
$
|
7,442
|
|
|
$
|
3,245
|
|
|
$
|
2,027
|
|
|
$
|
6,997
|
|
|
$
|
1,917
|
|
|
$
|
48,443
|
|
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
9
|
|
|
—
|
|
|
(1
|
)
|
|
57
|
|
|
—
|
|
|
65
|
|
|||||||
Less: Other adjustments to expenses (1)
|
(15
|
)
|
|
10
|
|
|
64
|
|
|
105
|
|
|
202
|
|
|
354
|
|
|
720
|
|
|||||||
Total adjusted expenses
|
$
|
26,830
|
|
|
$
|
7,423
|
|
|
$
|
3,181
|
|
|
$
|
1,923
|
|
|
$
|
6,738
|
|
|
$
|
1,563
|
|
|
$
|
47,658
|
|
|
U.S.
|
|
Asia
|
|
Latin America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Total revenues
|
$
|
24,085
|
|
|
$
|
8,767
|
|
|
$
|
3,939
|
|
|
$
|
2,689
|
|
|
$
|
8,184
|
|
|
$
|
(1,196
|
)
|
|
$
|
46,468
|
|
Less: Net investment gains (losses)
|
78
|
|
|
61
|
|
|
34
|
|
|
(8
|
)
|
|
47
|
|
|
(626
|
)
|
|
(414
|
)
|
|||||||
Less: Net derivative gains (losses)
|
(34
|
)
|
|
(9
|
)
|
|
173
|
|
|
21
|
|
|
(321
|
)
|
|
(365
|
)
|
|
(535
|
)
|
|||||||
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|||||||
Less: Other adjustments to revenues (1)
|
(160
|
)
|
|
214
|
|
|
60
|
|
|
574
|
|
|
(70
|
)
|
|
(556
|
)
|
|
62
|
|
|||||||
Total adjusted revenues
|
$
|
24,201
|
|
|
$
|
8,487
|
|
|
$
|
3,672
|
|
|
$
|
2,102
|
|
|
$
|
8,528
|
|
|
$
|
351
|
|
|
$
|
47,341
|
|
Total expenses
|
$
|
21,902
|
|
|
$
|
7,365
|
|
|
$
|
3,214
|
|
|
$
|
2,418
|
|
|
$
|
7,253
|
|
|
$
|
1,741
|
|
|
$
|
43,893
|
|
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
(46
|
)
|
|
2
|
|
|
(32
|
)
|
|||||||
Less: Other adjustments to expenses (1)
|
1
|
|
|
244
|
|
|
125
|
|
|
581
|
|
|
224
|
|
|
259
|
|
|
1,434
|
|
|||||||
Total adjusted expenses
|
$
|
21,901
|
|
|
$
|
7,109
|
|
|
$
|
3,089
|
|
|
$
|
1,837
|
|
|
$
|
7,075
|
|
|
$
|
1,480
|
|
|
$
|
42,491
|
|
(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 September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Adjusted revenues
|
|
|
|
|
|
|
|
||||||||
Premiums
|
$
|
6,431
|
|
|
$
|
6,987
|
|
|
$
|
22,950
|
|
|
$
|
18,049
|
|
Universal life and investment-type product policy fees
|
252
|
|
|
247
|
|
|
772
|
|
|
763
|
|
||||
Net investment income
|
1,787
|
|
|
1,602
|
|
|
5,168
|
|
|
4,789
|
|
||||
Other revenues
|
206
|
|
|
197
|
|
|
613
|
|
|
600
|
|
||||
Total adjusted revenues
|
8,676
|
|
|
9,033
|
|
|
29,503
|
|
|
24,201
|
|
||||
Adjusted expenses
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims and policyholder dividends
|
6,219
|
|
|
6,916
|
|
|
22,590
|
|
|
18,047
|
|
||||
Interest credited to policyholder account balances
|
457
|
|
|
376
|
|
|
1,303
|
|
|
1,086
|
|
||||
Capitalization of DAC
|
(116
|
)
|
|
(126
|
)
|
|
(336
|
)
|
|
(342
|
)
|
||||
Amortization of DAC and VOBA
|
128
|
|
|
118
|
|
|
357
|
|
|
346
|
|
||||
Interest expense on debt
|
2
|
|
|
2
|
|
|
8
|
|
|
8
|
|
||||
Other expenses
|
982
|
|
|
933
|
|
|
2,908
|
|
|
2,756
|
|
||||
Total adjusted expenses
|
7,672
|
|
|
8,219
|
|
|
26,830
|
|
|
21,901
|
|
||||
Provision for income tax expense (benefit)
|
209
|
|
|
275
|
|
|
554
|
|
|
771
|
|
||||
Adjusted earnings
|
$
|
795
|
|
|
$
|
539
|
|
|
$
|
2,119
|
|
|
$
|
1,529
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Adjusted revenues
|
|
|
|
|
|
|
|
||||||||
Premiums
|
$
|
1,689
|
|
|
$
|
1,696
|
|
|
$
|
5,091
|
|
|
$
|
5,063
|
|
Universal life and investment-type product policy fees
|
428
|
|
|
458
|
|
|
1,221
|
|
|
1,199
|
|
||||
Net investment income
|
830
|
|
|
762
|
|
|
2,464
|
|
|
2,193
|
|
||||
Other revenues
|
12
|
|
|
11
|
|
|
40
|
|
|
32
|
|
||||
Total adjusted revenues
|
2,959
|
|
|
2,927
|
|
|
8,816
|
|
|
8,487
|
|
||||
Adjusted expenses
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims and policyholder dividends
|
1,354
|
|
|
1,223
|
|
|
3,934
|
|
|
3,785
|
|
||||
Interest credited to policyholder account balances
|
381
|
|
|
349
|
|
|
1,094
|
|
|
1,003
|
|
||||
Capitalization of DAC
|
(478
|
)
|
|
(420
|
)
|
|
(1,438
|
)
|
|
(1,268
|
)
|
||||
Amortization of DAC and VOBA
|
366
|
|
|
424
|
|
|
993
|
|
|
1,005
|
|
||||
Amortization of negative VOBA
|
(4
|
)
|
|
(24
|
)
|
|
(31
|
)
|
|
(91
|
)
|
||||
Other expenses
|
943
|
|
|
905
|
|
|
2,871
|
|
|
2,675
|
|
||||
Total adjusted expenses
|
2,562
|
|
|
2,457
|
|
|
7,423
|
|
|
7,109
|
|
||||
Provision for income tax expense (benefit)
|
131
|
|
|
156
|
|
|
437
|
|
|
459
|
|
||||
Adjusted earnings
|
$
|
266
|
|
|
$
|
314
|
|
|
$
|
956
|
|
|
$
|
919
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Adjusted revenues
|
|
|
|
|
|
|
|
||||||||
Premiums
|
$
|
692
|
|
|
$
|
701
|
|
|
$
|
2,079
|
|
|
$
|
1,993
|
|
Universal life and investment-type product policy fees
|
229
|
|
|
229
|
|
|
786
|
|
|
764
|
|
||||
Net investment income
|
339
|
|
|
299
|
|
|
942
|
|
|
891
|
|
||||
Other revenues
|
7
|
|
|
7
|
|
|
24
|
|
|
24
|
|
||||
Total adjusted revenues
|
1,267
|
|
|
1,236
|
|
|
3,831
|
|
|
3,672
|
|
||||
Adjusted expenses
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims and policyholder dividends
|
670
|
|
|
640
|
|
|
1,976
|
|
|
1,869
|
|
||||
Interest credited to policyholder account balances
|
102
|
|
|
99
|
|
|
295
|
|
|
275
|
|
||||
Capitalization of DAC
|
(97
|
)
|
|
(94
|
)
|
|
(282
|
)
|
|
(264
|
)
|
||||
Amortization of DAC and VOBA
|
5
|
|
|
—
|
|
|
136
|
|
|
146
|
|
||||
Amortization of negative VOBA
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
||||
Interest expense on debt
|
2
|
|
|
1
|
|
|
5
|
|
|
4
|
|
||||
Other expenses
|
351
|
|
|
377
|
|
|
1,052
|
|
|
1,060
|
|
||||
Total adjusted expenses
|
1,032
|
|
|
1,022
|
|
|
3,181
|
|
|
3,089
|
|
||||
Provision for income tax expense (benefit)
|
65
|
|
|
51
|
|
|
195
|
|
|
123
|
|
||||
Adjusted earnings
|
$
|
170
|
|
|
$
|
163
|
|
|
$
|
455
|
|
|
$
|
460
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Adjusted revenues
|
|
|
|
|
|
|
|
||||||||
Premiums
|
$
|
514
|
|
|
$
|
527
|
|
|
$
|
1,611
|
|
|
$
|
1,534
|
|
Universal life and investment-type product policy fees
|
105
|
|
|
109
|
|
|
324
|
|
|
296
|
|
||||
Net investment income
|
73
|
|
|
77
|
|
|
221
|
|
|
229
|
|
||||
Other revenues
|
15
|
|
|
(2
|
)
|
|
51
|
|
|
43
|
|
||||
Total adjusted revenues
|
707
|
|
|
711
|
|
|
2,207
|
|
|
2,102
|
|
||||
Adjusted expenses
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims and policyholder dividends
|
281
|
|
|
282
|
|
|
861
|
|
|
821
|
|
||||
Interest credited to policyholder account balances
|
24
|
|
|
26
|
|
|
75
|
|
|
75
|
|
||||
Capitalization of DAC
|
(109
|
)
|
|
(109
|
)
|
|
(348
|
)
|
|
(301
|
)
|
||||
Amortization of DAC and VOBA
|
110
|
|
|
78
|
|
|
324
|
|
|
260
|
|
||||
Amortization of negative VOBA
|
(2
|
)
|
|
(5
|
)
|
|
(12
|
)
|
|
(13
|
)
|
||||
Other expenses
|
333
|
|
|
347
|
|
|
1,023
|
|
|
995
|
|
||||
Total adjusted expenses
|
637
|
|
|
619
|
|
|
1,923
|
|
|
1,837
|
|
||||
Provision for income tax expense (benefit)
|
15
|
|
|
21
|
|
|
62
|
|
|
47
|
|
||||
Adjusted earnings
|
$
|
55
|
|
|
$
|
71
|
|
|
$
|
222
|
|
|
$
|
218
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Adjusted revenues
|
|
|
|
|
|
|
|
||||||||
Premiums
|
$
|
949
|
|
|
$
|
989
|
|
|
$
|
2,856
|
|
|
$
|
3,070
|
|
Universal life and investment-type product policy fees
|
286
|
|
|
349
|
|
|
901
|
|
|
1,056
|
|
||||
Net investment income
|
1,375
|
|
|
1,390
|
|
|
4,056
|
|
|
4,232
|
|
||||
Other revenues
|
70
|
|
|
37
|
|
|
205
|
|
|
170
|
|
||||
Total adjusted revenues
|
2,680
|
|
|
2,765
|
|
|
8,018
|
|
|
8,528
|
|
||||
Adjusted expenses
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims and policyholder dividends
|
1,766
|
|
|
1,732
|
|
|
5,022
|
|
|
5,182
|
|
||||
Interest credited to policyholder account balances
|
238
|
|
|
255
|
|
|
709
|
|
|
767
|
|
||||
Capitalization of DAC
|
(8
|
)
|
|
(14
|
)
|
|
(28
|
)
|
|
(71
|
)
|
||||
Amortization of DAC and VOBA
|
13
|
|
|
(70
|
)
|
|
214
|
|
|
143
|
|
||||
Interest expense on debt
|
2
|
|
|
2
|
|
|
6
|
|
|
22
|
|
||||
Other expenses
|
264
|
|
|
322
|
|
|
815
|
|
|
1,032
|
|
||||
Total adjusted expenses
|
2,275
|
|
|
2,227
|
|
|
6,738
|
|
|
7,075
|
|
||||
Provision for income tax expense (benefit)
|
78
|
|
|
174
|
|
|
248
|
|
|
465
|
|
||||
Adjusted earnings
|
$
|
327
|
|
|
$
|
364
|
|
|
$
|
1,032
|
|
|
$
|
988
|
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Adjusted revenues
|
|
|
|
|
|
|
|
||||||||
Premiums
|
$
|
(33
|
)
|
|
$
|
13
|
|
|
$
|
(14
|
)
|
|
$
|
59
|
|
Net investment income
|
58
|
|
|
26
|
|
|
157
|
|
|
107
|
|
||||
Other revenues
|
86
|
|
|
65
|
|
|
246
|
|
|
185
|
|
||||
Total adjusted revenues
|
111
|
|
|
104
|
|
|
389
|
|
|
351
|
|
||||
Adjusted expenses
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits and claims and policyholder dividends
|
(38
|
)
|
|
7
|
|
|
(38
|
)
|
|
33
|
|
||||
Interest credited to policyholder account balances
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Capitalization of DAC
|
(2
|
)
|
|
(2
|
)
|
|
(7
|
)
|
|
(6
|
)
|
||||
Amortization of DAC and VOBA
|
2
|
|
|
3
|
|
|
5
|
|
|
5
|
|
||||
Interest expense on debt
|
246
|
|
|
279
|
|
|
798
|
|
|
833
|
|
||||
Other expenses
|
314
|
|
|
237
|
|
|
805
|
|
|
614
|
|
||||
Total adjusted expenses
|
522
|
|
|
524
|
|
|
1,563
|
|
|
1,480
|
|
||||
Provision for income tax expense (benefit)
|
(206
|
)
|
|
(90
|
)
|
|
(599
|
)
|
|
(630
|
)
|
||||
Adjusted earnings
|
(205
|
)
|
|
(330
|
)
|
|
(575
|
)
|
|
(499
|
)
|
||||
Less: Preferred stock dividends
|
32
|
|
|
6
|
|
|
84
|
|
|
58
|
|
||||
Adjusted earnings available to common shareholders
|
$
|
(237
|
)
|
|
$
|
(336
|
)
|
|
$
|
(659
|
)
|
|
$
|
(557
|
)
|
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Other business activities
|
$
|
13
|
|
|
$
|
5
|
|
|
$
|
31
|
|
|
$
|
19
|
|
Other net investment income
|
107
|
|
|
49
|
|
|
214
|
|
|
193
|
|
||||
Interest expense on debt
|
(256
|
)
|
|
(300
|
)
|
|
(831
|
)
|
|
(901
|
)
|
||||
Corporate initiatives and projects
|
(132
|
)
|
|
(45
|
)
|
|
(268
|
)
|
|
(197
|
)
|
||||
Other
|
(101
|
)
|
|
(128
|
)
|
|
(278
|
)
|
|
(246
|
)
|
||||
Provision for income tax (expense) benefit and other tax-related items
|
164
|
|
|
89
|
|
|
557
|
|
|
633
|
|
||||
Preferred stock dividends
|
(32
|
)
|
|
(6
|
)
|
|
(84
|
)
|
|
(58
|
)
|
||||
Adjusted earnings available to common shareholders
|
$
|
(237
|
)
|
|
$
|
(336
|
)
|
|
$
|
(659
|
)
|
|
$
|
(557
|
)
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||||||
|
Yield % (1)
|
|
Amount
|
|
Yield % (1)
|
|
Amount
|
|
Yield % (1)
|
|
Amount
|
|
Yield % (1)
|
|
Amount
|
||||||||||||
|
(Dollars in millions)
|
||||||||||||||||||||||||||
Fixed maturity securities AFS (2), (3)
|
4.30
|
|
%
|
$
|
2,980
|
|
|
4.25
|
|
%
|
$
|
2,843
|
|
|
4.26
|
|
%
|
$
|
8,764
|
|
|
4.29
|
|
%
|
$
|
8,488
|
|
Mortgage loans (3)
|
4.80
|
|
%
|
859
|
|
|
4.78
|
|
%
|
809
|
|
|
4.64
|
|
%
|
2,466
|
|
|
4.59
|
|
%
|
2,303
|
|
||||
Real estate and real estate joint ventures
|
3.67
|
|
%
|
90
|
|
|
2.80
|
|
%
|
66
|
|
|
3.84
|
|
%
|
282
|
|
|
3.14
|
|
%
|
218
|
|
||||
Policy loans
|
5.35
|
|
%
|
130
|
|
|
5.40
|
|
%
|
130
|
|
|
5.23
|
|
%
|
381
|
|
|
5.37
|
|
%
|
386
|
|
||||
Equity securities
|
4.74
|
|
%
|
14
|
|
|
4.92
|
|
%
|
31
|
|
|
4.41
|
|
%
|
45
|
|
|
4.80
|
|
%
|
93
|
|
||||
Other limited partnership interests
|
14.86
|
|
%
|
229
|
|
|
15.94
|
|
%
|
214
|
|
|
13.15
|
|
%
|
589
|
|
|
16.46
|
|
%
|
648
|
|
||||
Cash and short-term investments
|
2.79
|
|
%
|
71
|
|
|
1.13
|
|
%
|
25
|
|
|
2.33
|
|
%
|
178
|
|
|
1.39
|
|
%
|
92
|
|
||||
Other invested assets
|
|
|
211
|
|
|
|
|
173
|
|
|
|
|
|
670
|
|
|
|
|
|
557
|
|
||||||
Investment income
|
4.65
|
|
%
|
4,584
|
|
|
4.54
|
|
%
|
4,291
|
|
|
4.57
|
|
%
|
13,375
|
|
|
4.58
|
%
|
%
|
12,785
|
|
||||
Investment fees and expenses
|
(0.12
|
)
|
%
|
(121
|
)
|
|
(0.14
|
)
|
%
|
(133
|
)
|
|
(0.13
|
)
|
%
|
(366
|
)
|
|
(0.14
|
)
|
%
|
(390
|
)
|
||||
Net investment income including divested businesses (4)
|
4.53
|
|
%
|
4,463
|
|
|
4.40
|
|
|
4,158
|
|
|
4.44
|
|
%
|
13,009
|
|
|
4.44
|
|
%
|
12,395
|
|
||||
Less: net investment income from divested businesses (4)
|
|
|
1
|
|
|
|
|
2
|
|
|
|
|
1
|
|
|
|
|
(46
|
)
|
||||||||
Net investment income, as reported on an adjusted basis
|
|
|
$
|
4,462
|
|
|
|
|
$
|
4,156
|
|
|
|
|
$
|
13,008
|
|
|
|
|
$
|
12,441
|
|
(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 AFS includes amounts from FVO Securities of $
11 million
and
$25 million
for the
three months
and
nine months ended
September 30, 2018
, respectively, and
$16 million
and
$61 million
for the
three months
and
nine months ended
September 30, 2017
, respectively.
|
(3)
|
Investment income from fixed maturity securities AFS and mortgage loans includes prepayment fees.
|
(4)
|
See “— Non-GAAP and Other Financial Disclosures” for discussion of divested businesses.
|
|
September 30, 2018
|
|
December 31, 2017
|
|
||||||||
|
Estimated Fair Value
|
|
% of Total
|
|
Estimated Fair Value
|
|
% of Total
|
|
||||
|
(Dollars in millions)
|
|
||||||||||
Fixed maturity securities AFS
|
|
|
|
|
|
|
|
|
||||
Publicly-traded
|
$
|
257,102
|
|
|
84.3
|
%
|
$
|
262,078
|
|
|
84.8
|
%
|
Privately-placed
|
47,738
|
|
|
15.7
|
|
46,853
|
|
|
15.2
|
|
||
Total fixed maturity securities AFS
|
$
|
304,840
|
|
|
100.0
|
%
|
$
|
308,931
|
|
|
100.0
|
%
|
Percentage of cash and invested assets
|
67.4
|
%
|
|
|
|
67.6
|
%
|
|
|
|
||
Equity securities
|
|
|
|
|
|
|
|
|
||||
Publicly-traded
|
$
|
1,320
|
|
|
89.2
|
%
|
$
|
1,490
|
|
|
59.3
|
%
|
Privately-held
|
159
|
|
|
10.8
|
|
1,023
|
|
|
40.7
|
|
||
Total equity securities
|
$
|
1,479
|
|
|
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
|
|
|
|
|
|
September 30, 2018
|
||||||||||||
|
Fixed Maturity
Securities AFS |
|
|
Equity
Securities
|
|||||||||
|
(Dollars in millions)
|
|
|||||||||||
Level 1
|
|
|
|
|
|
|
|
|
|
||||
Quoted prices in active markets for identical assets
|
$
|
25,246
|
|
|
8.3
|
%
|
|
$
|
941
|
|
|
63.6
|
%
|
Level 2
|
|
|
|
|
|
|
|
|
|
||||
Independent pricing sources
|
261,916
|
|
|
85.9
|
|
|
60
|
|
|
4.1
|
|
||
Internal matrix pricing or discounted cash flow techniques
|
2,989
|
|
|
1.0
|
|
|
35
|
|
|
2.4
|
|
||
Significant other observable inputs
|
264,905
|
|
|
86.9
|
|
|
95
|
|
|
6.5
|
|
||
Level 3
|
|
|
|
|
|
|
|
|
|
||||
Independent pricing sources
|
10,422
|
|
|
3.4
|
|
|
332
|
|
|
22.4
|
|
||
Internal matrix pricing or discounted cash flow techniques
|
3,840
|
|
|
1.3
|
|
|
107
|
|
|
7.2
|
|
||
Independent broker quotations
|
427
|
|
|
0.1
|
|
|
4
|
|
|
0.3
|
|
||
Significant unobservable inputs
|
14,689
|
|
|
4.8
|
|
|
443
|
|
|
29.9
|
|
||
Total estimated fair value
|
$
|
304,840
|
|
|
100.0
|
%
|
|
$
|
1,479
|
|
|
100.0
|
%
|
•
|
The majority of the Level 3 fixed maturity securities AFS and equity securities were concentrated in three sectors: U.S. corporate securities, foreign corporate securities and RMBS.
|
•
|
Level 3 fixed maturity securities AFS 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 AFS 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 AFS include: sub-prime RMBS; certain below investment grade private U.S. and foreign corporate securities; less liquid investment grade U.S. and foreign corporate securities and less liquid ABS and foreign government securities.
|
•
|
During the
three months ended
September 30, 2018
, Level 3 fixed maturity securities AFS decreased by
$773 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.
|
•
|
During the
nine months ended
September 30, 2018
, Level 3 fixed maturity securities AFS decreased by
$1.6 billion
, or
10%
. 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 AFS — by Sector & Credit Quality Rating
|
||||||||||||||||||||||||||
NAIC Designation:
|
1
|
|
2
|
|
3
|
|
4
|
|
5
|
|
6
|
|
Total
Estimated
Fair Value
|
||||||||||||||
NRSRO Rating:
|
Aaa/Aa/A
|
|
Baa
|
|
Ba
|
|
B
|
|
Caa and Lower
|
|
In or Near
Default
|
|
|||||||||||||||
|
(Dollars in millions)
|
||||||||||||||||||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. corporate
|
$
|
36,655
|
|
|
$
|
37,051
|
|
|
$
|
5,977
|
|
|
$
|
3,498
|
|
|
$
|
614
|
|
|
$
|
—
|
|
|
$
|
83,795
|
|
Foreign government
|
52,469
|
|
|
5,125
|
|
|
2,234
|
|
|
639
|
|
|
4
|
|
|
1
|
|
|
60,472
|
|
|||||||
Foreign corporate
|
21,151
|
|
|
29,724
|
|
|
2,449
|
|
|
817
|
|
|
79
|
|
|
—
|
|
|
54,220
|
|
|||||||
U.S. government and agency
|
45,142
|
|
|
430
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45,572
|
|
|||||||
RMBS
|
26,959
|
|
|
463
|
|
|
104
|
|
|
97
|
|
|
12
|
|
|
23
|
|
|
27,658
|
|
|||||||
State and political subdivision
|
11,073
|
|
|
478
|
|
|
38
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11,600
|
|
|||||||
ABS
|
11,873
|
|
|
708
|
|
|
231
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
12,815
|
|
|||||||
CMBS
|
8,576
|
|
|
80
|
|
|
9
|
|
|
—
|
|
|
43
|
|
|
—
|
|
|
8,708
|
|
|||||||
Total fixed maturity securities AFS
|
$
|
213,898
|
|
|
$
|
74,059
|
|
|
$
|
11,042
|
|
|
$
|
5,062
|
|
|
$
|
755
|
|
|
$
|
24
|
|
|
$
|
304,840
|
|
Percentage of total
|
70.2
|
%
|
|
24.3
|
%
|
|
3.6
|
%
|
|
1.7
|
%
|
|
0.2
|
%
|
|
—
|
%
|
|
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 AFS
|
$
|
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
|
%
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||
|
Estimated
Fair
Value
|
|
% of
Total
|
|
Estimated
Fair
Value
|
|
% of
Total
|
||||||
|
(Dollars in millions)
|
||||||||||||
Industrial
|
$
|
41,858
|
|
|
30.3
|
%
|
|
$
|
42,273
|
|
|
30.6
|
%
|
Consumer
|
30,960
|
|
|
22.4
|
|
|
31,419
|
|
|
22.7
|
|
||
Finance
|
30,730
|
|
|
22.3
|
|
|
29,884
|
|
|
21.6
|
|
||
Utility
|
22,043
|
|
|
16.0
|
|
|
21,773
|
|
|
15.8
|
|
||
Communications
|
10,640
|
|
|
7.7
|
|
|
11,072
|
|
|
8.0
|
|
||
Other
|
1,784
|
|
|
1.3
|
|
|
1,809
|
|
|
1.3
|
|
||
Total
|
$
|
138,015
|
|
|
100.0
|
%
|
|
$
|
138,230
|
|
|
100.0
|
%
|
|
September 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
|
$
|
14,953
|
|
|
54.1
|
%
|
|
$
|
569
|
|
|
$
|
15,388
|
|
|
53.4
|
%
|
|
$
|
913
|
|
Pass-through securities
|
12,705
|
|
|
45.9
|
|
|
(338
|
)
|
|
13,412
|
|
|
46.6
|
|
|
41
|
|
||||
Total RMBS
|
$
|
27,658
|
|
|
100.0
|
%
|
|
$
|
231
|
|
|
$
|
28,800
|
|
|
100.0
|
%
|
|
$
|
954
|
|
By risk profile:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
$
|
19,359
|
|
|
70.0
|
%
|
|
$
|
(409
|
)
|
|
$
|
20,010
|
|
|
69.5
|
%
|
|
$
|
274
|
|
Prime
|
1,336
|
|
|
4.8
|
|
|
53
|
|
|
1,209
|
|
|
4.2
|
|
|
73
|
|
||||
Alt-A
|
3,661
|
|
|
13.2
|
|
|
347
|
|
|
4,182
|
|
|
14.5
|
|
|
372
|
|
||||
Sub-prime
|
3,302
|
|
|
12.0
|
|
|
240
|
|
|
3,399
|
|
|
11.8
|
|
|
235
|
|
||||
Total RMBS
|
$
|
27,658
|
|
|
100.0
|
%
|
|
$
|
231
|
|
|
$
|
28,800
|
|
|
100.0
|
%
|
|
$
|
954
|
|
Ratings profile:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Rated Aaa/AAA
|
$
|
20,218
|
|
|
73.1
|
%
|
|
|
|
$
|
20,465
|
|
|
71.1
|
%
|
|
|
||||
Designated NAIC 1
|
$
|
26,959
|
|
|
97.5
|
%
|
|
|
|
$
|
28,209
|
|
|
97.9
|
%
|
|
|
|
September 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
|
$
|
7,236
|
|
|
56.5
|
%
|
|
$
|
17
|
|
|
$
|
5,703
|
|
|
46.4
|
%
|
|
$
|
45
|
|
Credit card loans
|
527
|
|
|
4.1
|
|
|
1
|
|
|
1,686
|
|
|
13.7
|
|
|
1
|
|
||||
Student loans
|
1,325
|
|
|
10.3
|
|
|
11
|
|
|
1,266
|
|
|
10.3
|
|
|
(1
|
)
|
||||
Automobile loans
|
990
|
|
|
7.7
|
|
|
(3
|
)
|
|
1,193
|
|
|
9.7
|
|
|
—
|
|
||||
Foreign residential loans
|
1,083
|
|
|
8.5
|
|
|
14
|
|
|
965
|
|
|
7.9
|
|
|
20
|
|
||||
Consumer loans
|
514
|
|
|
4.0
|
|
|
—
|
|
|
605
|
|
|
4.9
|
|
|
6
|
|
||||
Other loans
|
1,140
|
|
|
8.9
|
|
|
—
|
|
|
873
|
|
|
7.1
|
|
|
7
|
|
||||
Total
|
$
|
12,815
|
|
|
100.0
|
%
|
|
$
|
40
|
|
|
$
|
12,291
|
|
|
100.0
|
%
|
|
$
|
78
|
|
Ratings profile:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Rated Aaa/AAA
|
$
|
7,223
|
|
|
56.4
|
%
|
|
|
|
$
|
7,108
|
|
|
57.8
|
%
|
|
|
||||
Designated NAIC 1
|
$
|
11,873
|
|
|
92.6
|
%
|
|
|
|
$
|
11,311
|
|
|
92.0
|
%
|
|
|
|
September 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 - 2011
|
$
|
268
|
|
|
$
|
282
|
|
|
$
|
50
|
|
|
$
|
50
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
318
|
|
|
$
|
332
|
|
2012
|
248
|
|
|
252
|
|
|
240
|
|
|
237
|
|
|
232
|
|
|
229
|
|
|
6
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
726
|
|
|
725
|
|
||||||||||||
2013
|
724
|
|
|
745
|
|
|
648
|
|
|
662
|
|
|
289
|
|
|
284
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|
44
|
|
|
1,721
|
|
|
1,735
|
|
||||||||||||
2014
|
428
|
|
|
425
|
|
|
504
|
|
|
498
|
|
|
130
|
|
|
128
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,062
|
|
|
1,051
|
|
||||||||||||
2015
|
573
|
|
|
557
|
|
|
89
|
|
|
87
|
|
|
34
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
696
|
|
|
678
|
|
||||||||||||
2016
|
340
|
|
|
331
|
|
|
74
|
|
|
70
|
|
|
45
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
459
|
|
|
446
|
|
||||||||||||
2017
|
951
|
|
|
932
|
|
|
657
|
|
|
644
|
|
|
240
|
|
|
236
|
|
|
38
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
1,886
|
|
|
1,850
|
|
||||||||||||
2018
|
1,110
|
|
|
1,108
|
|
|
513
|
|
|
512
|
|
|
250
|
|
|
249
|
|
|
22
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
1,895
|
|
|
1,891
|
|
||||||||||||
Total
|
$
|
4,642
|
|
|
$
|
4,632
|
|
|
$
|
2,775
|
|
|
$
|
2,760
|
|
|
$
|
1,220
|
|
|
$
|
1,205
|
|
|
$
|
66
|
|
|
$
|
67
|
|
|
$
|
60
|
|
|
$
|
44
|
|
|
$
|
8,763
|
|
|
$
|
8,708
|
|
Ratings Distribution
|
|
|
53.2
|
%
|
|
|
|
31.7
|
%
|
|
|
|
13.8
|
%
|
|
|
|
0.8
|
%
|
|
|
|
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 - 2011
|
$
|
286
|
|
|
$
|
308
|
|
|
$
|
38
|
|
|
$
|
40
|
|
|
$
|
22
|
|
|
$
|
23
|
|
|
$
|
15
|
|
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
361
|
|
|
$
|
386
|
|
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
|
%
|
|
September 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
|
|
$
|
47,460
|
|
|
65.5
|
%
|
|
$
|
232
|
|
|
0.5
|
%
|
|
$
|
44,375
|
|
|
64.8
|
%
|
|
$
|
214
|
|
|
0.5
|
%
|
Agricultural
|
|
13,677
|
|
|
18.9
|
|
|
42
|
|
|
0.3
|
%
|
|
13,014
|
|
|
19.0
|
|
|
41
|
|
|
0.3
|
%
|
||||
Residential
|
|
11,337
|
|
|
15.6
|
|
|
62
|
|
|
0.5
|
%
|
|
11,136
|
|
|
16.2
|
|
|
59
|
|
|
0.5
|
%
|
||||
Total
|
|
$
|
72,474
|
|
|
100.0
|
%
|
|
$
|
336
|
|
|
0.5
|
%
|
|
$
|
68,525
|
|
|
100.0
|
%
|
|
$
|
314
|
|
|
0.5
|
%
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Region
|
|
|
|
|
|
|
|
||||||||
Pacific
|
$
|
10,878
|
|
|
22.9
|
%
|
|
$
|
9,875
|
|
|
22.3
|
%
|
||
International
|
9,497
|
|
|
20.0
|
|
|
9,101
|
|
|
20.5
|
|
||||
Middle Atlantic
|
7,434
|
|
|
15.7
|
|
|
7,231
|
|
|
16.3
|
|
||||
South Atlantic
|
5,789
|
|
|
12.2
|
|
|
5,311
|
|
|
12.0
|
|
||||
West South Central
|
4,001
|
|
|
8.4
|
|
|
3,819
|
|
|
8.6
|
|
||||
East North Central
|
2,768
|
|
|
5.8
|
|
|
2,683
|
|
|
6.0
|
|
||||
Mountain
|
1,378
|
|
|
2.9
|
|
|
1,188
|
|
|
2.7
|
|
||||
New England
|
1,141
|
|
|
2.4
|
|
|
901
|
|
|
2.0
|
|
||||
East South Central
|
1,072
|
|
|
2.3
|
|
|
840
|
|
|
1.9
|
|
||||
West North Central
|
596
|
|
|
1.3
|
|
|
477
|
|
|
1.1
|
|
||||
Multi-Region and Other
|
2,906
|
|
|
6.1
|
|
|
2,949
|
|
|
6.6
|
|
||||
Total recorded investment
|
47,460
|
|
|
100.0
|
%
|
|
44,375
|
|
|
100.0
|
%
|
||||
Less: valuation allowances
|
232
|
|
|
|
|
214
|
|
|
|
||||||
Carrying value, net of valuation allowances
|
$
|
47,228
|
|
|
|
|
$
|
44,161
|
|
|
|
||||
Property Type
|
|
|
|
|
|
|
|
||||||||
Office
|
$
|
24,096
|
|
|
50.8
|
%
|
|
$
|
22,602
|
|
|
50.9
|
%
|
||
Retail
|
8,701
|
|
|
18.3
|
|
|
8,032
|
|
|
18.1
|
|
||||
Apartment
|
6,416
|
|
|
13.5
|
|
|
6,113
|
|
|
13.8
|
|
||||
Hotel
|
3,327
|
|
|
7.0
|
|
|
3,620
|
|
|
8.2
|
|
||||
Industrial
|
3,775
|
|
|
8.0
|
|
|
3,125
|
|
|
7.0
|
|
||||
Other
|
1,145
|
|
|
2.4
|
|
|
883
|
|
|
2.0
|
|
||||
Total recorded investment
|
47,460
|
|
|
100.0
|
%
|
|
44,375
|
|
|
100.0
|
%
|
||||
Less: valuation allowances
|
232
|
|
|
|
|
214
|
|
|
|
||||||
Carrying value, net of valuation allowances
|
$
|
47,228
|
|
|
|
|
$
|
44,161
|
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||
|
Carrying
Value
|
|
% of
Total
|
|
Carrying
Value
|
|
% of
Total |
||||||
|
(Dollars in millions)
|
||||||||||||
Freestanding derivatives with positive estimated fair values
|
$
|
7,288
|
|
|
44.6
|
%
|
|
$
|
8,551
|
|
|
49.5
|
%
|
Tax credit and renewable energy partnerships
|
2,528
|
|
|
15.5
|
|
|
3,167
|
|
|
18.3
|
|
||
Direct financing leases
|
1,314
|
|
|
8.0
|
|
|
1,323
|
|
|
7.7
|
|
||
Annuities funding structured settlement claims (1)
|
1,281
|
|
|
7.8
|
|
|
1,284
|
|
|
7.4
|
|
||
Leveraged leases, net of non-recourse debt
|
1,126
|
|
|
6.9
|
|
|
1,278
|
|
|
7.4
|
|
||
Federal Home Loan Bank common stock (2)
|
793
|
|
|
4.9
|
|
|
—
|
|
|
—
|
|
||
Operating joint ventures
|
613
|
|
|
3.8
|
|
|
539
|
|
|
3.1
|
|
||
Funds withheld
|
300
|
|
|
1.8
|
|
|
298
|
|
|
1.7
|
|
||
Other
|
1,093
|
|
|
6.7
|
|
|
823
|
|
|
4.8
|
|
||
Total
|
$
|
16,336
|
|
|
100.0
|
%
|
|
$
|
17,263
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
||||||
Percentage of cash and invested assets
|
3.6
|
%
|
|
|
|
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
September 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
nine months ended
September 30, 2018
and
2017
.
|
|
|
Three Months
Ended September 30, 2018 |
|
Nine Months
Ended September 30, 2018 |
Gain (loss) recognized in net income (loss)
|
|
($70)
|
|
($151)
|
Percentage of gain (loss) attributable to observable inputs
|
|
69%
|
|
83%
|
Primary drivers of observable gain (loss)
|
|
Increases in interest rates on interest rate total return swaps and, to a lesser extent, increases in certain equity index levels on equity derivatives.
|
|
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
|
|
31%
|
|
17%
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||
Credit Default Swaps
|
|
Gross
Notional
Amount
|
|
Estimated
Fair Value
|
|
Gross
Notional
Amount
|
|
Estimated
Fair Value
|
||||||||
|
|
(In millions)
|
||||||||||||||
Purchased
|
|
$
|
1,986
|
|
|
$
|
(15
|
)
|
|
$
|
2,020
|
|
|
$
|
(36
|
)
|
Written
|
|
11,507
|
|
|
221
|
|
|
11,375
|
|
|
271
|
|
||||
Total
|
|
$
|
13,493
|
|
|
$
|
206
|
|
|
$
|
13,395
|
|
|
$
|
235
|
|
(1)
|
Gains (losses) do not include earned income (expense) on credit default swaps.
|
|
September 30, 2018
|
||||||
Guaranteed Minimum Crediting Rate
|
Account
Value
|
|
Account
Value at
Guarantee
|
||||
|
(In millions)
|
||||||
Greater than 0% but less than 2%
|
$
|
4,772
|
|
|
$
|
4,649
|
|
Equal to or greater than 2% but less than 4%
|
$
|
1,782
|
|
|
$
|
1,782
|
|
Equal to or greater than 4%
|
$
|
735
|
|
|
$
|
707
|
|
|
September 30, 2018
|
||||||
Guaranteed Minimum Crediting Rate
|
Account
Value
|
|
Account
Value at
Guarantee
|
||||
|
(In millions)
|
||||||
Greater than 0% but less than 2%
|
$
|
139
|
|
|
$
|
—
|
|
Equal to or greater than 2% but less than 4%
|
$
|
1,106
|
|
|
$
|
122
|
|
Equal to or greater than 4%
|
$
|
4,606
|
|
|
$
|
4,605
|
|
|
September 30, 2018
|
||||||
Guaranteed Minimum Crediting Rate
|
Account
Value
|
|
Account
Value at
Guarantee
|
||||
|
(In millions)
|
||||||
Annuities
|
|
|
|
||||
Greater than 0% but less than 2%
|
$
|
24,946
|
|
|
$
|
1,963
|
|
Equal to or greater than 2% but less than 4%
|
$
|
1,221
|
|
|
$
|
402
|
|
Equal to or greater than 4%
|
$
|
1
|
|
|
$
|
1
|
|
Life & Other
|
|
|
|
||||
Greater than 0% but less than 2%
|
$
|
9,631
|
|
|
$
|
9,344
|
|
Equal to or greater than 2% but less than 4%
|
$
|
23,696
|
|
|
$
|
8,980
|
|
Equal to or greater than 4%
|
$
|
279
|
|
|
$
|
279
|
|
|
September 30, 2018
|
||||||
Guaranteed Minimum Crediting Rate
|
Account
Value
|
|
Account
Value at
Guarantee
|
||||
|
(In millions)
|
||||||
Greater than 0% but less than 2%
|
$
|
1,567
|
|
|
$
|
1,475
|
|
Equal to or greater than 2% but less than 4%
|
$
|
18,983
|
|
|
$
|
16,539
|
|
Equal to or greater than 4%
|
$
|
8,171
|
|
|
$
|
5,497
|
|
|
Future Policy
Benefits
|
|
Policyholder
Account Balances
|
||||||||||||
|
September 30, 2018
|
|
December 31, 2017
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||
|
(In millions)
|
||||||||||||||
Asia
|
|
|
|
|
|
|
|
||||||||
GMDB
|
$
|
26
|
|
|
$
|
38
|
|
|
$
|
—
|
|
|
$
|
—
|
|
GMAB
|
—
|
|
|
—
|
|
|
22
|
|
|
19
|
|
||||
GMWB
|
92
|
|
|
92
|
|
|
197
|
|
|
182
|
|
||||
EMEA
|
|
|
|
|
|
|
|
||||||||
GMDB
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
GMAB
|
—
|
|
|
—
|
|
|
6
|
|
|
15
|
|
||||
GMWB
|
35
|
|
|
42
|
|
|
(123
|
)
|
|
(90
|
)
|
||||
MetLife Holdings
|
|
|
|
|
|
|
|
||||||||
GMDB
|
278
|
|
|
304
|
|
|
—
|
|
|
—
|
|
||||
GMIB
|
708
|
|
|
581
|
|
|
(232
|
)
|
|
(125
|
)
|
||||
GMAB
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
GMWB
|
121
|
|
|
183
|
|
|
236
|
|
|
322
|
|
||||
Total
|
$
|
1,260
|
|
|
$
|
1,241
|
|
|
$
|
105
|
|
|
$
|
323
|
|
|
Total Account Value (1)
|
||||||
|
Asia & EMEA
|
|
MetLife Holdings
|
||||
|
(In millions)
|
||||||
Return of premium or five to seven year step-up
|
$
|
6,887
|
|
|
$
|
51,401
|
|
Annual step-up
|
—
|
|
|
3,482
|
|
||
Roll-up and step-up combination
|
—
|
|
|
6,132
|
|
||
Total
|
$
|
6,887
|
|
|
$
|
61,015
|
|
(1)
|
Total account value excludes $242 million for contracts with no GMDBs. The Company’s annuity contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed for GMDBs and for living benefit guarantees are not mutually exclusive.
|
|
Total Account Value (1)
|
||||||
|
Asia & EMEA
|
|
MetLife Holdings
|
||||
|
(In millions)
|
||||||
GMIB
|
$
|
—
|
|
|
$
|
23,417
|
|
GMWB - non-life contingent (2)
|
2,101
|
|
|
2,885
|
|
||
GMWB - life-contingent
|
3,311
|
|
|
10,223
|
|
||
GMAB
|
1,076
|
|
|
420
|
|
||
Total
|
$
|
6,488
|
|
|
$
|
36,945
|
|
(1)
|
Total account value excludes $24.3 billion for contracts with no living benefit guarantees. The Company’s annuity contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed for GMDBs and for living benefit guarantee amounts are not mutually exclusive.
|
(2)
|
The Asia and EMEA segments include the non-life contingent portion of the GMWB total account value of $970 million with a guarantee at annuitization.
|
|
Total Account Value
|
||
|
(In millions)
|
||
7-year setback, 2.5% interest rate
|
$
|
6,302
|
|
7-year setback, 1.5% interest rate
|
1,014
|
|
|
10-year setback, 1.5% interest rate
|
5,013
|
|
|
10-year mortality projection, 10-year setback, 1.0% interest rate
|
9,414
|
|
|
10-year mortality projection, 10-year setback, 0.5% interest rate
|
1,675
|
|
|
|
$
|
23,418
|
|
|
In-the-
Moneyness
|
|
Total
Account Value
|
|
% of Total
|
|
||
|
(In millions)
|
|||||||
In-the-money
|
30% +
|
|
$
|
249
|
|
|
1
|
%
|
|
20% to 30%
|
|
177
|
|
|
1
|
%
|
|
|
10% to 20%
|
|
348
|
|
|
2
|
%
|
|
|
0% to 10%
|
|
671
|
|
|
3
|
%
|
|
|
|
|
1,445
|
|
|
|
||
Out-of-the-money
|
-10% to 0%
|
|
1,462
|
|
|
6
|
%
|
|
|
-20% to -10%
|
|
2,990
|
|
|
13
|
%
|
|
|
-20% +
|
|
17,521
|
|
|
75
|
%
|
|
|
|
|
21,973
|
|
|
|
||
Total GMIBs
|
|
|
$
|
23,418
|
|
|
|
|
|
Instrument Type
|
|
September 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
|
|
$
|
8,186
|
|
|
$
|
56
|
|
|
$
|
11
|
|
|
$
|
16,080
|
|
|
$
|
433
|
|
|
$
|
22
|
|
|
|
Interest rate futures
|
|
1,526
|
|
|
—
|
|
|
4
|
|
|
3,060
|
|
|
1
|
|
|
4
|
|
||||||
|
|
Interest rate options
|
|
838
|
|
|
126
|
|
|
—
|
|
|
10,173
|
|
|
486
|
|
|
11
|
|
||||||
Foreign currency exchange rate
|
|
Foreign currency forwards
|
|
1,716
|
|
|
1
|
|
|
24
|
|
|
2,288
|
|
|
5
|
|
|
36
|
|
||||||
Equity market
|
|
Equity futures
|
|
2,895
|
|
|
6
|
|
|
5
|
|
|
3,781
|
|
|
17
|
|
|
4
|
|
||||||
|
|
Equity index options
|
|
9,388
|
|
|
445
|
|
|
729
|
|
|
9,546
|
|
|
383
|
|
|
690
|
|
||||||
|
|
Equity variance swaps
|
|
4,661
|
|
|
58
|
|
|
206
|
|
|
4,661
|
|
|
54
|
|
|
199
|
|
||||||
|
|
Equity total return swaps
|
|
1,075
|
|
|
1
|
|
|
27
|
|
|
1,117
|
|
|
—
|
|
|
41
|
|
||||||
|
|
Total
|
|
$
|
30,285
|
|
|
$
|
693
|
|
|
$
|
1,006
|
|
|
$
|
50,706
|
|
|
$
|
1,379
|
|
|
$
|
1,007
|
|
|
Nine Months
Ended September 30, |
||||||
|
2018
|
|
2017
|
||||
|
(In millions)
|
||||||
Sources:
|
|
|
|
||||
Operating activities, net
|
$
|
10,437
|
|
|
$
|
10,233
|
|
Changes in policyholder account balances, net
|
4,168
|
|
|
5,332
|
|
||
Changes in payables for collateral under securities loaned and other transactions, net
|
719
|
|
|
2,316
|
|
||
Long-term debt issued
|
24
|
|
|
3,657
|
|
||
Preferred stock issued, net of issuance costs
|
1,274
|
|
|
—
|
|
||
Effect of change in foreign currency exchange rates on cash and cash equivalents
|
—
|
|
|
382
|
|
||
Total sources
|
16,622
|
|
|
21,920
|
|
||
Uses:
|
|
|
|
||||
Investing activities, net
|
10,992
|
|
|
17,158
|
|
||
Long-term debt repaid
|
1,311
|
|
|
60
|
|
||
Collateral financing arrangements repaid
|
48
|
|
|
2,852
|
|
||
Distribution of Brighthouse
|
—
|
|
|
2,793
|
|
||
Financing element on certain derivative instruments and other derivative related transactions, net
|
15
|
|
|
109
|
|
||
Treasury stock acquired in connection with share repurchases
|
2,792
|
|
|
2,305
|
|
||
Dividends on preferred stock
|
84
|
|
|
58
|
|
||
Dividends on common stock
|
1,263
|
|
|
1,295
|
|
||
Other, net
|
141
|
|
|
144
|
|
||
Effect of change in foreign currency exchange rates on cash and cash equivalents
|
187
|
|
|
—
|
|
||
Total uses
|
16,833
|
|
|
26,774
|
|
||
Net increase (decrease) in cash and cash equivalents
|
$
|
(211
|
)
|
|
$
|
(4,854
|
)
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
(In millions)
|
||||||
Short-term debt (1)
|
$
|
290
|
|
|
$
|
477
|
|
Long-term debt (2)
|
$
|
13,403
|
|
|
$
|
15,680
|
|
Collateral financing arrangement
|
$
|
1,073
|
|
|
$
|
1,121
|
|
Junior subordinated debt securities
|
$
|
3,146
|
|
|
$
|
3,144
|
|
(1)
|
Includes $191 million and $377 million of debt that is non-recourse to MetLife, Inc. and MLIC, subject to customary exceptions, at
September 30, 2018
and
December 31, 2017
, respectively. Certain subsidiaries have pledged assets to secure this debt.
|
(2)
|
Includes $480 million and $523 million of debt that is non-recourse to MetLife, Inc. and MLIC, subject to customary exceptions, at
September 30, 2018
and
December 31, 2017
, respectively. Certain investment subsidiaries have pledged assets to secure this debt.
|
•
|
During the
nine months ended
September 30, 2018
and
2017
, following regulatory approval, MetLife Reinsurance Company of Charleston, a wholly-owned subsidiary of MetLife, Inc., repurchased and canceled $48 million and $55 million, respectively, in aggregate principal amount of its surplus notes, which are reported in collateral financing arrangement on the consolidated balance sheets.
|
•
|
In August 2018, MetLife, Inc. repaid at maturity the remaining $533 million of its 6.817% senior notes.
|
Company
|
|
Paid (1)
|
|
|
Permitted Without
Approval (2)
|
|||||
|
|
(In millions)
|
||||||||
Metropolitan Life Insurance Company
|
|
$
|
2,424
|
|
(3
|
)
|
|
$
|
3,075
|
|
American Life Insurance Company
|
|
$
|
2,200
|
|
(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 ordinary dividends of
$1.7 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 extraordinary dividends.
|
(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 re-domestication, MTL is subject to the dividend restrictions under Nebraska law, which are based on amounts reported in MTL’s stand-alone statutory financial statements for the year ended December 31, 2017. See
Note 10
of the Notes to the Interim Condensed Consolidated Financial Statements for additional information.
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
(In millions)
|
||||||
Long-term debt — unaffiliated
|
$
|
12,365
|
|
|
$
|
14,599
|
|
Long-term debt — affiliated
|
$
|
1,890
|
|
|
$
|
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 Chief Risk Officer. The Company is addressing the examination findings through ongoing remediation. The Company continues to believe 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 Annual Report, as well as subsequently filed Quarterly Reports on Form 10-Q.
|
•
|
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 continues to believe 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) |
||||||
July 1 — July 31, 2018
|
|
5,332,323
|
|
|
$
|
44.17
|
|
|
5,332,323
|
|
|
$
|
870,341,428
|
|
August 1 — August 31, 2018
|
|
8,730,112
|
|
|
$
|
45.82
|
|
|
8,730,112
|
|
|
$
|
470,341,462
|
|
September 1 — September 30, 2018
|
|
91
|
|
|
$
|
48.78
|
|
|
—
|
|
|
$
|
470,341,462
|
|
Total
|
|
14,062,526
|
|
|
|
|
14,062,435
|
|
|
|
|
(1)
|
Except for the foregoing, there were no shares of MetLife, Inc. common stock repurchased by MetLife, Inc. During the periods July 1 through July 31, 2018, August 1 through August 31, 2018 and September 1 through September 30, 2018, separate account index funds purchased 0 shares, 0 shares and 91 shares, respectively, of MetLife, Inc. common stock on the open market in non-discretionary transactions.
|
(2)
|
On May 22, 2018, MetLife, Inc. announced that its Board of Directors authorized $1.5 billion of common stock repurchases. At
September 30, 2018
, MetLife, Inc. had
$470 million
of common stock repurchases remaining under the May 2018 authorization.
On November 1, 2018, MetLife, Inc. announced that its Board of Directors authorized an additional $2.0 billion of common stock repurchases.
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.” 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.1
|
|
|
8-K
|
|
001-15787
|
|
3.2
|
|
October 1, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.1
|
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.2
|
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.3
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.2
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32.2
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
|
|
|
|
|
|
X
|
METLIFE, INC.
|
||
|
|
|
By:
|
|
/s/ William C. O’Donnell
|
|
|
Name: William C. O’Donnell
Title: Executive Vice President
and Chief Accounting Officer
(Authorized Signatory and Principal
Accounting Officer)
|
|
|
|
Exhibit 10.1
|
|
|
|
|
Yours sincerely,
|
|
Agreed and Accepted by:
|
MetLife, Inc. as sole shareholder of
MetLife Group, Inc.
/s/ Susan M. Podlogar
|
|
/s/ Kishore Ponnavolu
|
By: Susan Podlogar
Executive Vice President and Chief Human
Resources Officer
|
|
Kishore Ponnavolu
|
By:
|
/s/ Andrew J. Bernstein
|
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
|