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þ
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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13-4075851
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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200 Park Avenue, New York, N.Y.
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10166-0188
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Name of each exchange on which registered
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Common Stock, par value $0.01
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New York Stock Exchange
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Floating Rate Non-Cumulative Preferred Stock, Series A, par value $0.01
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New York Stock Exchange
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Depositary Shares each representing a 1/1,000th interest in a share of 5.625%
Non-Cumulative Preferred Stock, Series E
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New York Stock Exchange
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Large accelerated filer
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þ
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Accelerated filer
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¨
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Non-accelerated filer
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¨
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Smaller reporting company
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¨
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Emerging growth company
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¨
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Page
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Part I
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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Part II
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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Part III
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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Part IV
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Item 15.
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Item 16.
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●
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Optimize value and risk
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–
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Focus on in-force and new business opportunities using Accelerating Value analysis
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–
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Optimize cash and value
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–
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Balance risk across MetLife
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●
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Drive operational excellence
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–
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Become a more efficient, high performance organization
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–
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Focus on the customer with a disciplined approach to unit cost improvement
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●
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Strengthen distribution advantage
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–
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Transform our distribution channels to drive productivity and efficiency through digital enablement, improved customer persistency and deeper customer relationships
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●
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Deliver the right solutions for the right customers
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–
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Use customer insights to deliver differentiated value propositions - products, services and experiences to win the right customers and earn their loyalty
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Major Products
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Term Life Insurance
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Provides a guaranteed benefit upon the death of the insured for a specified time period in return for the periodic payment of premiums. Premiums may be guaranteed at a level amount for the coverage period or may be non-level and non-guaranteed. Term contracts expire without value at the end of the coverage period when the insured party is still living.
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Variable Life Insurance
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Provides insurance coverage through a contract that gives the policyholder flexibility in investment choices and, depending on the product, in premium payments and coverage amounts, with certain guarantees. Premiums and account balances can be directed by the policyholder into a variety of separate account investment options or directed to the Company’s general account. In the separate account investment options, the policyholder bears the entire risk of the investment results. With some products, by maintaining certain premium level, policyholders may have the advantage of various guarantees that may protect the death benefit from adverse investment experience.
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Universal Life Insurance
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Provides insurance coverage on the same basis as variable life, except that premiums, and the resulting accumulated balances, are allocated only to the Company’s general account. With some products, by maintaining a certain premium level, policyholders may have the advantage of various guarantees that may protect the death benefit from adverse investment experience.
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Dental Insurance
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Provides insurance and ASO arrangements that assist employees, retirees and their families in maintaining oral health while reducing out-of-pocket expenses.
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Disability
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For groups and individuals, benefits such as income replacement, payment of business overhead expenses or mortgage protection, in the event of the disability of the insured.
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Accident & Health Insurance
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Provides accident, critical illness or hospital indemnity coverage to the insured.
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Major Products
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Stable Value Products
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• General account guaranteed interest contracts
(“
GIC
s”) are designed to provide stable value investment options within tax-qualified defined contribution plans by offering a fixed maturity investment with a guarantee of liquidity at contract value for participant transactions.
• Separate account GIC
s are available to defined contribution plan sponsors by offering market value returns on separate account investments with a general account guarantee of liquidity at contract value.
• Private floating rate funding agreements
are generally privately-placed, unregistered investment contracts issued as general account obligations with interest credited based on the three-month London Interbank Offered Rate (“LIBOR”). These agreements are used for money market funds, securities lending cash collateral portfolios and short-term investment funds.
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Pension Risk Transfers
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General account
and
separate account annuities
are offered in connection with defined benefit pension plans which include single premium buyouts allowing for full or partial transfers of pension liabilities.
• General account annuities
include nonparticipating group contract benefits purchased for retired employees or active employees covered under terminating or ongoing pension plans.
• Separate account annuities
include both participating and non-participating group contract benefits. Participating contract benefits are purchased for retired, terminated, or active employees covered under active or terminated pension plans. The assets supporting the guaranteed benefits for each contract are held in a separate account, however, the Company fully guarantees all benefit payments. Non-participating contracts have economic features similar to our general account product, but offer the added protection of an insulated separate account. Under accounting principles generally accepted in the United States of America (“GAAP”), these annuity contracts are treated as general account products.
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Institutional Income Annuities
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General account contracts that are guaranteed payout annuities purchased for employees upon retirement or termination of employment. They can be life or non-life contingent non-participating contracts which do not provide for any loan or cash surrender value and, with few exceptions, do not permit future considerations.
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Tort Settlements
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• Structured settlement annuities
are customized annuities designed to serve as an alternative to a lump sum payment in a lawsuit initiated because of personal injury, wrongful death, or a workers’ compensation claim or other claim for damages. Surrenders are generally not allowed, although commutations are permitted in certain circumstances. Guaranteed payments consist of life contingent annuities, term certain annuities and lump sums.
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Capital Markets Investment Products
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• Funding agreement-backed notes
are part of a medium term note program, under which funding agreements are issued to a special-purpose trust that issues marketable notes in U.S. dollars or foreign currencies. The proceeds of these note issuances are used to acquire a funding agreement with matching interest and maturity payment terms from Metropolitan Life Insurance Company (“MLIC”). The notes are underwritten and marketed by major investment banks’ broker-dealer operations and are sold to institutional investors.
• Funding agreement-backed commercial paper
is issued by a special purpose limited liability company which deposits the proceeds under a master funding agreement issued to it by MLIC. The commercial paper is issued in U.S. dollars or foreign currencies, receives the same short-term credit rating as MLIC and is marketed by major investment banks’ broker-dealer operations.
•
Through the Federal Home Loan Bank (“FHLB”) advance program, certain of our insurance subsidiaries are members of regional FHLBs and issue
funding agreements
to their respective FHLBs. Through the Federal Agricultural Mortgage Corporation (“Farmer Mac”) program, MLIC has issued funding agreements to a subsidiary of Farmer Mac.
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Other Products and Services
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Specialized life insurance products and funding agreements designed specifically to provide solutions for funding postretirement benefits and company-, bank- or trust-owned life insurance used to finance nonqualified benefit programs for executives.
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Major Products
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Personal Auto Insurance
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Provides coverage for private passenger automobiles, utility automobiles and vans, motorcycles, motor homes, antique or classic automobiles, trailers, liability, uninsured motorist, no fault or personal injury protection, as well as collision and comprehensive insurance.
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Homeowners’ Insurance
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Provides protection for homeowners, renters, condominium owners and residential landlords against losses arising out of damage to dwellings and contents from a wide variety of perils, as well as coverage for liability arising from ownership or occupancy.
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Commercial Multi-Peril and Commercial Auto Insurance
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Provides a broad package of property and liability coverages for small and medium sized apartment buildings, offices, and retail stores, as well as for coverage for motor vehicles owned by a business engaged in commerce that protects the insured against financial loss.
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Major Products
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Life Insurance
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Provides whole and term life, endowments, universal and variable life, as well as group life products.
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Accident & Health Insurance
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Provides a full range of accident & health products, including medical reimbursement, hospitalization, cancer, critical illness, disability, income protection, personal accident coverage and group health products.
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Retirement and Savings
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Provides both fixed and variable annuities, as well as regular savings products.
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Major Products
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Life Insurance
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Provides universal, variable and term life products. For a description of these products, see “
—
U.S.
—
Product Overview
—
Group Benefits.”
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Retirement and Savings
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Provides fixed annuities and pension products. Fixed annuities provide for both asset accumulation and asset distribution needs. Deposits made into deferred annuity contracts are allocated to the Company’s general account and are credited with interest at rates we determine, subject to specified minimums. Fixed income annuities provide a guaranteed monthly income for a specified period of years and/or for the life of the annuitant. Our savings oriented pension products are offered under a mandatory privatized social security system. See Note
3
of the Notes to the Consolidated Financial Statements for information about the disposition of MetLife Afore, S.A. de C.V. (“MetLife Afore”), the Company’s pension fund management business in Mexico.
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Accident & Health Insurance
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Provides group and individual major medical, accidental, and supplemental health products, including AD&D, hospital indemnity, medical reimbursement, and medical coverage for serious medical conditions, as well as dental products.
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Credit Insurance
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Provides policies designed to fulfill certain loan obligations in the event of the policyholder’s death.
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Major Products
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Life Insurance
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Provides both traditional and non-traditional life insurance products, such as whole and term life, endowments and variable life products, as well as group term life programs in most markets.
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Accident & Health Insurance
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Provides individual and group personal accident and supplemental health products, including AD&D, hospital indemnity, scheduled medical reimbursement plans, and coverage for serious medical conditions. In addition, we provide individual and group major medical coverage in select markets.
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Retirement and Savings
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Provides fixed annuities and pension products, including group pension programs in select markets. In Romania, we provide through a specialized pension company a savings oriented pension product under the mandatory privatized social security system.
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Credit Insurance
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Provides policies designed to fulfill certain loan obligations in the event of the policyholder’s death.
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Major Products
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Variable, Universal and Term Life Insurance
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These life products are similar to those offered by our Group Benefits business, except that these products were historically marketed to individuals through various retail distribution channels. For a description of these products, see “
—
U.S.
—
Product Overview
—
Group Benefits.”
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Whole Life Insurance
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Provides a benefit upon the death of the insured in return for the periodic payment of a fixed premium over a predetermined period. Whole life insurance includes policies that provide a participation feature in the form of dividends. Policyholders may receive dividends in cash, or apply them to increase death benefits, increase cash values available upon surrender or reduce the premiums required to maintain the contract in-force.
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Variable Annuities
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Provides for both asset accumulation and asset distribution needs. Variable annuities allow the contractholder to allocate deposits into various investment options in a separate account, as determined by the contractholder. In certain variable annuity products, contractholders may also choose to allocate all or a portion of their account to the Company’s general account and are credited with interest at rates we determine, subject to specified minimums. Contractholders may also elect certain minimum death benefit and minimum living benefit guarantees for which additional fees are charged and where asset allocation restrictions may apply.
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Fixed and Indexed-Linked Annuities
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Fixed annuities provide for both asset accumulation and asset distribution needs. Deposits made into deferred annuity contracts are allocated to the Company’s general account and are credited with interest at rates we determine, subject to specified minimums. Fixed income annuities provide a guaranteed monthly income for a specified period of years and/or for the life of the annuitant. Additionally, the Company has issued indexed-linked annuities which allow the contractholder to participate in returns from equity indices.
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Long-term Care
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Provides protection against the potentially high costs of long-term health care services. Generally pay benefits to insureds who need assistance with activities of daily living or have a cognitive impairment.
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•
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Employer sponsored captive programs: through these programs, employers buy a group life insurance policy with the condition that a portion of the risk is reinsured back to a captive insurer sponsored by the client.
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Risk-sharing agreements: through these programs, clients require that we reinsure a portion of the risk back to third parties, such as minority-owned reinsurers.
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Multinational pooling: through these agreements, employers buy many group insurance policies which are aggregated in a single insurer via reinsurance.
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licensing companies and agents to transact business;
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calculating the value of assets to determine compliance with statutory requirements;
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mandating certain insurance benefits;
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regulating certain premium rates;
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reviewing and approving certain policy forms, including required policyholder disclosures;
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regulating unfair trade and claims practices, including through the imposition of restrictions on marketing and sales practices, distribution arrangements and payment of inducements, and identifying and paying to the states or local authorities benefits and other property that is not claimed by the owners;
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regulating advertising;
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protecting privacy;
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establishing statutory capital and reserve requirements and solvency standards;
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specifying the conditions under which a ceding company can take credit for reinsurance in its statutory financial statements (i.e., reduce its reserves by the amount of reserves ceded to a reinsurer);
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fixing maximum interest rates on insurance policy loans and minimum rates for guaranteed crediting rates on life insurance policies and annuity contracts;
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adopting and enforcing suitability standards with respect to the sale of annuities and other insurance products;
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approving changes in control of insurance companies;
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restricting the payment of dividends and other transactions between affiliates; and
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regulating the types and amounts of investments.
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A.M. Best
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Fitch
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Moody’s
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S&P
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Ratings Structure
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“A++ (superior)” to “S (suspended)”
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“AAA (exceptionally strong)” to “C (distressed)”
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“Aaa (highest quality)” to “C (lowest rated)”
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“AAA (extremely strong)” to “SD (Selective Default)” or “D (Default)”
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American Life Insurance Company
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NR
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NR
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A1
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AA-
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5th of 21
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4th of 22
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Metropolitan Life Insurance Company
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A+
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AA-
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Aa3
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AA-
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2nd of 16
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4th of 19
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4th of 21
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4th of 22
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MetLife Insurance K.K. (MetLife Japan)
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NR
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NR
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NR
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AA-
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4th of 22
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Metropolitan Tower Life Insurance Company
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A+
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AA-
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Aa3
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AA-
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2nd of 16
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4th of 19
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4th of 21
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4th of 22
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Name
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Age
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Position with MetLife and Business Experience
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Steven A. Kandarian
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66
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•
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Chairman of the Board of MetLife, Inc. (January 2012-present) (Director of MetLife, Inc. since 2011)
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President and Chief Executive Officer (May 2011-present) of MetLife, Inc.
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Executive Vice President and Chief Investment Officer of MetLife, Inc. (April 2005-April 2011)
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John D. McCallion
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45
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Executive Vice President and Chief Financial Officer of MetLife, Inc. (August 2018-present)
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Executive Vice President and Chief Financial Officer and Treasurer of MetLife, Inc. (May 2018-August 2018)
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Executive Vice President and Treasurer of MetLife, Inc. (July 2016 - April 2018)
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Senior Vice President and Chief Financial Officer, EMEA, of MetLife Group, Inc. (August 2014-June 2016)
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Vice President and Chief Financial Officer, EMEA, of MLIC (September 2012 - July 2014)
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Stephen W. Gauster
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48
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Executive Vice President and General Counsel of MetLife, Inc. (May 2018-present)
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Senior Vice President and Interim General Counsel of MetLife, Inc. (July 2017-May 2018)
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Senior Vice President and Chief Counsel, General Corporate Section of the Law Department (January 2016-June 2017)
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Senior Vice President, Chief Corporate Counsel and Assistant Secretary, Assurant, Inc., an insurance company (September 2008-December 2015)
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Steven J. Goulart
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60
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•
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Executive Vice President and Chief Investment Officer of MetLife, Inc. (May 2011-present)
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•
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Head of the Portfolio Management Unit as Senior Managing Director of MLIC (January 2011-April 2011)
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Michel A. Khalaf
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54
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President, U.S. Business of MetLife, Inc. (July 2017-present)
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President, EMEA of MetLife, Inc. (November 2011-present)
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Executive Vice President of MLIC (January 2011-November 2011)
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Esther S. Lee
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60
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Executive Vice President and Global Chief Marketing Officer of MetLife, Inc. (January 2015-present)
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Senior Vice President, Brand Marketing, Advertising and Sponsorships of AT&T, Inc., a communications company (August 2011-December 2014)
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Martin J. Lippert
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59
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Executive Vice President and Head of Global Technology and Operations of MetLife, Inc. (November 2011-present)
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Executive Vice President and Head of Global Technology of MetLife, Inc. (September 2011-November 2011)
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Susan M. Podlogar
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55
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Executive Vice President and Chief Human Resources Officer of MetLife, Inc. (July 2017-present)
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•
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Vice President Human Resources Global Medical Devices, Human Resources Executive Committee, Johnson & Johnson, a medical devices, pharmaceutical and consumer products company
(May 2016-June 2017)
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Vice President Human Resources EMEA, Global Total Rewards, Human Resources Executive Committee, Johnson & Johnson (January 2015-May 2016)
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Vice President Human Resources Global Total Rewards, Human Resources Executive Committee, Johnson & Johnson (January 2012-May 2015)
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Kishore Ponnavolu
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54
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President, Asia of MetLife, Inc. (September 2018-present)
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•
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Executive Vice President, MetLife Auto and Home (November 2013-August 2018)
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Oscar A. Schmidt
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59
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•
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President of Latin America of MetLife, Inc. (May 2018-present)
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Executive Vice President, Head of Latin America of MLIC (January 2010-April 2018)
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Ramy Tadros
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43
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•
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Executive Vice President and Chief Risk Officer of MetLife, Inc. (September 2017-present)
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•
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Management Consultant, Oliver Wyman, Inc., a consulting company (September 1997-July 2017)
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•
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“Business
—
Regulation;”
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•
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Industry Trends
—
Financial and Economic Environment;”
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•
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Industry Trends
—
Impact of a Sustained Low Interest Rate Environment;” and
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•
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Investments
—
Current Environment.”
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•
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Industry Trends
—
Impact of a Sustained Low Interest Rate Environment;”
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•
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Investments
—
Current Environment;”
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•
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Investments
—
Fixed Maturity Securities AFS and Equity Securities;” and
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•
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Note 9 of the Notes to the Consolidated Financial Statements.
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•
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Industry Trends
—
Financial and Economic Environment” and
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•
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Investments
—
Current Environment
—
Selected Country and Sector Investments.”
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•
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Executive Summary
—
Other Key Information
—
Argentina Highly Inflationary” and
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•
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“Quantitative and Qualitative Disclosures About Market Risk.”
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•
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“Business
—
Regulation
—
Derivatives Regulation” and
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•
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Derivatives.”
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•
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Investments
—
Securities Lending and Repurchase Agreements;” and
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•
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Liquidity and Capital Resources
—
The Company
—
Liquidity.”
|
•
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Liquidity and Capital Resources
—
The Company
—
Liquidity and Capital Sources
—
Global Funding Sources
—
Credit and Committed Facilities” and
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•
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Note 12 of the Notes to the Consolidated Financial Statements.
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•
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reducing new sales of insurance products, annuities and other investment products;
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•
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impacting the cost and availability of financing for MetLife, Inc. and its subsidiaries;
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•
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adversely affecting our relationships with our sales force and independent sales intermediaries;
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•
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materially increasing the number or amount of policy surrenders and withdrawals by contractholders and policyholders;
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•
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requiring us to post collateral, including additional collateral under certain of our financing and derivative transactions;
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•
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requiring us to reduce prices for many of our products and services to remain competitive;
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•
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providing termination rights for the benefit of our derivative instrument counterparties;
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•
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adversely affecting our ability to obtain reinsurance at reasonable prices or at all;
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•
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limiting our access to the capital markets;
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•
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increasing the cost of debt; and
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•
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subjecting us to increased regulatory scrutiny.
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•
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“Business
—
Company Ratings;”
|
•
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Liquidity and Capital Resources
—
The Company
—
Liquidity and Capital Uses
—
Pledged Collateral;”
|
•
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Liquidity and Capital Resources
—
The Company
—
Capital
—
Rating Agencies;” and
|
•
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Note 9 of the Notes to the Consolidated Financial Statements.
|
•
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“Business
—
Regulation
—
Insurance Regulation
—
NAIC” and
|
•
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Liquidity and Capital Resources
—
The Company
—
Capital
—
Affiliated Captive Reinsurance Transactions.”
|
•
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Executive Summary — Overview — U.S. Tax Reform” and
|
•
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Note 18
of the Notes to the Consolidated Financial Statements.
|
•
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — MetLife, Inc. — Liquidity and Capital Sources — Dividends from Subsidiaries” and
|
•
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“Dividend Restrictions” in
Note 15
of the Notes to the Consolidated Financial Statements.
|
•
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“Business — Regulation —Insurance Regulation — Surplus and Capital;”
|
•
|
“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — MetLife, Inc. — Liquidity and Capital Sources — Dividends from Subsidiaries;”
|
•
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — MetLife, Inc. — Liquidity and Capital Uses — Support Agreements;” and
|
•
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP and Other Financial Disclosures.”
|
•
|
“Business — Regulation — Derivatives Regulation;”
|
•
|
“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — The Company — Liquidity and Capital Uses — Pledged Collateral;” and
|
•
|
Note 9
of the Notes to the Consolidated Financial Statements.
|
•
|
“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Investments” and
|
•
|
Notes
1
,
8
and
10
of the Notes to the Consolidated Financial Statements.
|
•
|
“Business
—
Policyholder Liabilities;”
|
•
|
“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Policyholder Liabilities;”
|
•
|
“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Summary of Critical Accounting Estimates
—
Deferred Policy Acquisition Costs and Value of Business Acquired;”
|
•
|
“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Summary of Critical Accounting Estimates
—
Derivatives;” and
|
•
|
“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Results of Operations — Consolidated Results — Year Ended December 31, 2018 Compared with the Year Ended December 31, 2017 — Actuarial Assumption Review and Certain Other Insurance Adjustments.”
|
•
|
nationalization or expropriation of assets;
|
•
|
imposition of limits on foreign ownership of local companies;
|
•
|
changes in laws (including insurance and tax laws and regulations), their application or interpretation, including retroactive application of such changes;
|
•
|
political instability (including any government’s inability to maintain operations or funding);
|
•
|
economic or trade sanctions;
|
•
|
dividend limitations;
|
•
|
price controls;
|
•
|
changes in applicable currency;
|
•
|
currency exchange controls or other restrictions that prevent us from transferring funds out of the countries in which we operate or converting local currencies we hold into U.S. dollars or other currencies;
|
•
|
difficulty in enforcing contracts;
|
•
|
imposition of regulations limiting our ability to distribute our products; and
|
•
|
public or political criticism of our products, practices, and other aspects of our business and operations.
|
•
|
“Business — Regulation;”
|
•
|
“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Industry Trends
—
Financial and Economic Environment;”
|
•
|
“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Investments
—
Current Environment
—
Selected Country and Sector Investments;” and
|
•
|
“Quantitative and Qualitative Disclosures About Market Risk.”
|
•
|
“Business — Competition;”
|
•
|
“Business — Regulation;” and
|
•
|
“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends — Competitive Pressures.”
|
•
|
“Business
—
Regulation
—
Insurance Regulation
—
Guaranty Associations and Similar Arrangements;”
|
•
|
“Management’s Discussion and Analysis of Financial Condition and Results of Operations
—
Executive Summary
—
Other Key Information
—
Hurricanes;” and
|
•
|
Note 20
of the Notes to the Consolidated Financial Statements.
|
•
|
“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates — Goodwill;”
|
•
|
“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates — Income Taxes;”
|
•
|
“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Executive Summary — Overview — U.S. Tax Reform;” and
|
•
|
Notes
1
and
11
of the Notes to the Consolidated Financial Statements.
|
•
|
“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates — Deferred Policy Acquisition Costs and Value of Business Acquired;”
|
•
|
“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends — Impact of a Sustained Low Interest Rate Environment;” and
|
•
|
Note
1
of the Notes to the Consolidated Financial Statements.
|
•
|
“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Policyholder Liabilities — Variable Annuity Guarantees” and
|
•
|
Note
1
of the Notes to the Consolidated Financial Statements.
|
•
|
“Business — Regulation — Insurance Regulation” and
|
•
|
“Quantitative and Qualitative Disclosures About Market Risk.”
|
•
|
patent, trademark or copyright infringement;
|
•
|
breach of patent, trademark or copyright license usage rights; or
|
•
|
misappropriation of trade secrets.
|
•
|
potential difficulties achieving projected financial results, including the costs and benefits of integration or deconsolidation, due to macroeconomic, business, demographic, actuarial, regulatory, or political factors;
|
•
|
unforeseen liabilities or asset impairments;
|
•
|
the scope and duration of rights to indemnification for losses, and the recoverability of such indemnification;
|
•
|
the use of capital that could be used for other purposes;
|
•
|
liquidity requirements;
|
•
|
reactions of ratings agencies, shareholders, policyholders and contractholders, distributors, suppliers and other contractual counterparties;
|
•
|
regulatory requirements that could impact our operations or capital requirements;
|
•
|
changes in statutory or U.S. GAAP accounting principles, practices or policies;
|
•
|
dedication of management resources that could otherwise be deployed to other business, or distraction of key personnel from maximizing business value;
|
•
|
providing or receiving transition services that may disrupt operations or impose liabilities or restrictions on us;
|
•
|
loss of key personnel or difficulties recruiting personnel;
|
•
|
loss of customers;
|
•
|
loss of distribution resources or suppliers;
|
•
|
inefficiencies as we integrate operations and address differences in cultural, management, information, compliance and financial systems and procedures; and
|
•
|
impacts on internal controls and procedures.
|
•
|
Entering into joint ventures with other companies or government sponsored entities in various international markets, including joint ventures where we have a lesser degree of control over the business operation, may expose us to additional operational, financial, legal or compliance risks.
|
•
|
Dependence on a joint venture counterparty for capital, product distribution, local market knowledge, or other resources, or dependence on a joint venture counterparty due to limits on our ownership levels or distribution exclusivity requirements under local laws or regulations, may reduce our control over, our financial returns from, or the value of a joint venture.
|
•
|
If we are unable to effectively cooperate with joint venture counterparties, or a joint venture counterparty fails to meet its obligations under the joint venture arrangement, encounters financial difficulty, or elects to alter, modify or terminate the relationship, we may be unable to exercise management control or influence over these joint venture operations and our ability to achieve our objectives and our results of operations may be negatively impacted, thereby impairing our investment.
|
•
|
“Business
—
Regulation
—
Brighthouse Separation Tax Treatment” and
|
•
|
Note
3
of the Notes to the Consolidated Financial Statements.
|
•
|
applicable U.S. state or foreign insurance laws and regulations that may delay or impede a business combination involving us by prohibiting an entity from acquiring control of an insurance company without the prior approval of its domestic insurance regulator;
|
•
|
if the acquiring entity is a bank or non-bank SIFI, Dodd-Frank provisions that restrict or impede consolidations, mergers and acquisitions by systemically significant firms;
|
•
|
provisions of the Investment Company Act that require approval by the contract owners of our variable contracts in order to effectuate a change of control of any affiliated investment adviser to a mutual fund underlying our variable contracts;
|
•
|
FINRA approval requirements for a change of control of any registered broker-dealer;
|
•
|
provisions of the Delaware General Corporation Law that may affect the ability of an “interested stockholder” to engage in certain business combinations; and
|
•
|
applicable antitrust and competition laws.
|
Period
|
|
(a) Total Number of Shares Purchased (1)
|
|
(b) Average Price Paid per Share
|
|
(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
(d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2)
|
|||
October 1 - October 31, 2018
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$470,341,462
|
November 1 - November 30, 2018
|
|
13,447,275
|
|
|
$44.40
|
|
13,447,275
|
|
|
$1,873,338,798
|
|
December 1 - December 31, 2018
|
|
14,979,095
|
|
|
$40.26
|
|
14,978,937
|
|
|
$1,270,341,498
|
|
Total
|
|
28,426,370
|
|
|
|
|
28,426,212
|
|
|
|
(1)
|
Except for the foregoing, there were no shares of MetLife, Inc. common stock repurchased by MetLife, Inc. During the periods October 1 through October 31, 2018, November 1 through November 30, 2018 and December 1 through December 31, 2018, separate account index funds purchased
0
shares,
0
shares and
158
shares, respectively, of MetLife, Inc. common stock on the open market in non-discretionary transactions.
|
(2)
|
In November 2018, MetLife, Inc. announced that its Board of Directors authorized
$2.0 billion
of common stock repurchases. At December 31,
2018
, MetLife, Inc. had
$1.3 billion
of common stock repurchases remaining under the authorization. For more information on common stock repurchases, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — The Company — Liquidity and Capital Uses — Common Stock Repurchases,” “Risk Factors — Capital Risks — Legal and Regulatory Restrictions May Prevent Us from Paying Dividends and Repurchasing Our Stock at the Level We Wish” and Notes
15
and
22
of the Notes to the Consolidated Financial Statements.
|
|
|
As of December 31,
|
||||||||||||||||||||||
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
||||||||||||
MetLife, Inc. common stock
|
|
$
|
100.00
|
|
|
$
|
102.85
|
|
|
$
|
94.34
|
|
|
$
|
109.17
|
|
|
$
|
118.46
|
|
|
$
|
99.74
|
|
S&P 500
|
|
100.00
|
|
|
113.69
|
|
|
115.26
|
|
|
129.05
|
|
|
157.22
|
|
|
150.33
|
|
||||||
S&P 500 Insurance
|
|
100.00
|
|
|
108.29
|
|
|
110.81
|
|
|
130.29
|
|
|
151.38
|
|
|
134.42
|
|
||||||
S&P 500 Financials
|
|
100.00
|
|
|
115.20
|
|
|
113.44
|
|
|
139.31
|
|
|
170.21
|
|
|
148.03
|
|
|
|
Years Ended December 31,
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Statement of Operations Data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Premiums
|
|
$
|
43,840
|
|
|
$
|
38,992
|
|
|
$
|
37,202
|
|
|
$
|
36,403
|
|
|
$
|
36,970
|
|
Universal life and investment-type product policy fees
|
|
5,502
|
|
|
5,510
|
|
|
5,483
|
|
|
5,570
|
|
|
5,824
|
|
|||||
Net investment income
|
|
16,166
|
|
|
17,363
|
|
|
16,790
|
|
|
16,205
|
|
|
18,158
|
|
|||||
Other revenues
|
|
1,880
|
|
|
1,341
|
|
|
1,685
|
|
|
1,927
|
|
|
1,962
|
|
|||||
Net investment gains (losses)
|
|
(298
|
)
|
|
(308
|
)
|
|
317
|
|
|
609
|
|
|
338
|
|
|||||
Net derivative gains (losses)
|
|
851
|
|
|
(590
|
)
|
|
(690
|
)
|
|
629
|
|
|
722
|
|
|||||
Total revenues
|
|
67,941
|
|
|
62,308
|
|
|
60,787
|
|
|
61,343
|
|
|
63,974
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder benefits and claims
|
|
42,656
|
|
|
38,313
|
|
|
36,358
|
|
|
35,144
|
|
|
35,393
|
|
|||||
Interest credited to policyholder account balances
|
|
4,013
|
|
|
5,607
|
|
|
5,176
|
|
|
4,415
|
|
|
5,726
|
|
|||||
Policyholder dividends
|
|
1,251
|
|
|
1,231
|
|
|
1,223
|
|
|
1,356
|
|
|
1,353
|
|
|||||
Other expenses
|
|
13,714
|
|
|
13,621
|
|
|
13,749
|
|
|
14,777
|
|
|
14,619
|
|
|||||
Total expenses
|
|
61,634
|
|
|
58,772
|
|
|
56,506
|
|
|
55,692
|
|
|
57,091
|
|
|||||
Income (loss) from continuing operations before provision for income tax
|
|
6,307
|
|
|
3,536
|
|
|
4,281
|
|
|
5,651
|
|
|
6,883
|
|
|||||
Provision for income tax expense (benefit)
|
|
1,179
|
|
|
(1,470
|
)
|
|
693
|
|
|
1,590
|
|
|
1,936
|
|
|||||
Income (loss) from continuing operations, net of income tax
|
|
5,128
|
|
|
5,006
|
|
|
3,588
|
|
|
4,061
|
|
|
4,947
|
|
|||||
Income (loss) from discontinued operations, net of income tax (1)
|
|
—
|
|
|
(986
|
)
|
|
(2,734
|
)
|
|
1,324
|
|
|
1,389
|
|
|||||
Net income (loss)
|
|
5,128
|
|
|
4,020
|
|
|
854
|
|
|
5,385
|
|
|
6,336
|
|
|||||
Less: Net income (loss) attributable to noncontrolling interests
|
|
5
|
|
|
10
|
|
|
4
|
|
|
12
|
|
|
27
|
|
|||||
Net income (loss) attributable to MetLife, Inc.
|
|
5,123
|
|
|
4,010
|
|
|
850
|
|
|
5,373
|
|
|
6,309
|
|
|||||
Less: Preferred stock dividends
|
|
141
|
|
|
103
|
|
|
103
|
|
|
116
|
|
|
122
|
|
|||||
Preferred stock repurchase premium
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|
—
|
|
|||||
Net income (loss) available to MetLife, Inc.’s common shareholders
|
|
$
|
4,982
|
|
|
$
|
3,907
|
|
|
$
|
747
|
|
|
$
|
5,215
|
|
|
$
|
6,187
|
|
|
|
Years Ended December 31,
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
EPS Data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders per common share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
$
|
4.95
|
|
|
$
|
4.57
|
|
|
$
|
3.16
|
|
|
$
|
3.48
|
|
|
$
|
4.25
|
|
Diluted
|
|
$
|
4.91
|
|
|
$
|
4.53
|
|
|
$
|
3.13
|
|
|
$
|
3.44
|
|
|
$
|
4.20
|
|
Income (loss) from discontinued operations, net of income tax, per common share (1):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
$
|
—
|
|
|
$
|
(0.92
|
)
|
|
$
|
(2.48
|
)
|
|
$
|
1.19
|
|
|
$
|
1.23
|
|
Diluted
|
|
$
|
—
|
|
|
$
|
(0.91
|
)
|
|
$
|
(2.46
|
)
|
|
$
|
1.18
|
|
|
$
|
1.22
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders per common share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
$
|
4.95
|
|
|
$
|
3.65
|
|
|
$
|
0.68
|
|
|
$
|
4.67
|
|
|
$
|
5.48
|
|
Diluted
|
|
$
|
4.91
|
|
|
$
|
3.62
|
|
|
$
|
0.67
|
|
|
$
|
4.62
|
|
|
$
|
5.42
|
|
Cash dividends declared per common share
|
|
$
|
1.660
|
|
|
$
|
1.600
|
|
|
$
|
1.575
|
|
|
$
|
1.475
|
|
|
$
|
1.325
|
|
|
|
December 31,
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Balance Sheet Data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets of disposed subsidiary (1)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
216,983
|
|
|
$
|
216,437
|
|
|
$
|
219,937
|
|
Separate account assets
|
|
$
|
175,556
|
|
|
$
|
205,001
|
|
|
$
|
195,578
|
|
|
$
|
187,152
|
|
|
$
|
194,072
|
|
Total assets
|
|
$
|
687,538
|
|
|
$
|
719,892
|
|
|
$
|
898,764
|
|
|
$
|
877,912
|
|
|
$
|
902,322
|
|
Policyholder liabilities and other policy-related balances (2)
|
|
$
|
388,107
|
|
|
$
|
378,810
|
|
|
$
|
355,151
|
|
|
$
|
342,047
|
|
|
$
|
349,651
|
|
Short-term debt
|
|
$
|
268
|
|
|
$
|
477
|
|
|
$
|
242
|
|
|
$
|
100
|
|
|
$
|
100
|
|
Long-term debt
|
|
$
|
12,829
|
|
|
$
|
15,686
|
|
|
$
|
16,441
|
|
|
$
|
17,936
|
|
|
$
|
16,108
|
|
Collateral financing arrangement
|
|
$
|
1,060
|
|
|
$
|
1,121
|
|
|
$
|
1,274
|
|
|
$
|
1,342
|
|
|
$
|
1,399
|
|
Junior subordinated debt securities
|
|
$
|
3,147
|
|
|
$
|
3,144
|
|
|
$
|
3,169
|
|
|
$
|
3,194
|
|
|
$
|
3,193
|
|
Liabilities of disposed subsidiary (1)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
202,707
|
|
|
$
|
204,314
|
|
|
$
|
208,341
|
|
Separate account liabilities
|
|
$
|
175,556
|
|
|
$
|
205,001
|
|
|
$
|
195,578
|
|
|
$
|
187,152
|
|
|
$
|
194,072
|
|
Accumulated other comprehensive income (loss)
|
|
$
|
1,722
|
|
|
$
|
7,427
|
|
|
$
|
5,366
|
|
|
$
|
4,767
|
|
|
$
|
10,714
|
|
Total MetLife, Inc.’s stockholders’ equity
|
|
$
|
52,741
|
|
|
$
|
58,676
|
|
|
$
|
67,531
|
|
|
$
|
68,098
|
|
|
$
|
72,208
|
|
Noncontrolling interests
|
|
$
|
217
|
|
|
$
|
194
|
|
|
$
|
171
|
|
|
$
|
470
|
|
|
$
|
507
|
|
|
|
Years Ended December 31,
|
|||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||
Other Data (3)
|
|
|
|
|
|
|
|
|
|
|
|||||
Return on MetLife, Inc.’s common stockholders’ equity
|
|
9.6
|
%
|
|
6.3
|
%
|
|
1.0
|
%
|
|
7.7
|
%
|
|
9.5
|
%
|
(1)
|
See
Note 3
of the Notes to the Consolidated Financial Statements.
|
(2)
|
Policyholder liabilities and other policy-related balances include future policy benefits, policyholder account balances, other policy-related balances, policyholder dividends payable and the policyholder dividend obligation.
|
(3)
|
Return on MetLife, Inc.’s common stockholders’ equity is defined as net income (loss) available to MetLife, Inc.’s common shareholders divided by MetLife, Inc.’s average common stockholders’ equity.
|
|
Page
|
|
•
|
expenses associated with our previously announced unit cost initiative of $102 million, net of income tax
|
|||
|
•
|
a $73 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 $90 million, net of income tax, charge to increase certain RIS policy reserves
|
|||
|
•
|
a favorable reserve adjustment of $55 million, net of income tax, resulting from modeling improvements in the reserving process for our life business
|
|||
|
•
|
a charge of $36 million, net of income tax, for lease impairments
|
|||
|
•
|
a benefit of $12 million, net of income tax, related to a refinement to prior period reinsurance receivables in Australia
|
|
|
||||||||||
|
2019
|
|
2020
|
|
2021
|
||||||
|
Low Interest Rate Scenario
|
|
Base Scenario
|
|
Low Interest Rate Scenario
|
|
Base Scenario
|
|
Low Interest Rate Scenario
|
|
Base Scenario
|
Three-month LIBOR
|
1.63%
|
|
2.63%
|
|
1.41%
|
|
2.41%
|
|
1.46%
|
|
2.46%
|
10-year U.S. Treasury
|
1.76%
|
|
2.76%
|
|
1.84%
|
|
2.84%
|
|
1.93%
|
|
2.93%
|
(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.
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
General account investment return
|
$
|
22
|
|
|
$
|
(5
|
)
|
|
$
|
5
|
|
Separate account investment return
|
(42
|
)
|
|
21
|
|
|
(3
|
)
|
|||
Net investment/Net derivative gains (losses) and GMIB
|
(215
|
)
|
|
58
|
|
|
270
|
|
|||
In-force/Persistency
|
26
|
|
|
(10
|
)
|
|
(63
|
)
|
|||
Policyholder dividends, expense and other
|
—
|
|
|
68
|
|
|
(187
|
)
|
|||
Total
|
$
|
(209
|
)
|
|
$
|
132
|
|
|
$
|
22
|
|
•
|
Net increase in amortization of $215 million associated with net investment/net derivative gains (losses) and GMIB, primarily driven by the following:
|
–
|
An increase in amortization of $90 million from net derivative gains from freestanding derivatives hedging the variable annuity guarantees, partially offset by a decrease in amortization of approximately $30 million from net derivative losses resulting from the increases in variable annuity guarantee obligations.
|
–
|
An increase in amortization of approximately $35 million associated with gains from GMIB hedges and the decreases in GMIB obligations.
|
–
|
Net increase in amortization of approximately $100 million from the annual actuarial assumption update and other investment activities.
|
•
|
Net decrease in amortization of $58 million associated with net investment/net derivative gains (losses) and GMIB, primarily driven by the following:
|
–
|
A decrease in amortization of approximately $90 million from net derivative losses from freestanding derivatives hedging the variable annuity guarantees, largely offset by an increase in amortization of approximately $80 million from net derivative gains resulting from the decreases in variable annuity guarantee obligations.
|
–
|
Net decrease in amortization of approximately $45 million from other investment activities.
|
•
|
Net decrease in amortization of $68 million related to policyholder dividends, expense and other primarily driven by the following:
|
–
|
A decrease in amortization of approximately $60 million from the annual actuarial assumption update of the closed block, partially offset by an increase in amortization of approximately $40 million from updating the dividend scales of the participating life contracts.
|
–
|
A decrease in amortization of approximately $55 million due to an adjustment related to certain participating whole life business assumed from Brighthouse.
|
•
|
Net decrease in amortization of $270 million associated with net investment/net derivatives gains (losses) and GMIB, primarily driven by the following:
|
–
|
A decrease in amortization of approximately $180 million from net derivative losses from freestanding derivatives hedging the variable annuity guarantees.
|
–
|
A decrease in amortization of approximately $20 million from net derivative losses resulting from the increases in the variable annuity guarantee obligations.
|
–
|
A decrease in amortization of approximate $40 million primarily associated with losses from GMIB hedges and the decreases in GMIB obligations.
|
–
|
Net decrease in amortization of approximately $30 million from the annual actuarial assumption update and other investment activities.
|
•
|
An increase in amortization of $187 million related to policyholder dividends, expense and other primarily driven by the following:
|
–
|
An increase in amortization of approximately $110 million from the annual actuarial assumption update of the closed block.
|
–
|
An increase in amortization of approximately $70 million from updating the dividend scales of the participating life contracts.
|
|
Changes in Balance Sheet Carrying Value At December 31, 2018
|
||||||
|
Policyholder Account Balances
|
|
DAC and VOBA
|
||||
|
(In millions)
|
||||||
100% increase in our credit spread
|
$
|
595
|
|
|
$
|
36
|
|
As reported
|
$
|
793
|
|
|
$
|
70
|
|
50% decrease in our credit spread
|
$
|
906
|
|
|
$
|
89
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Revenues
|
|
|
|
|
|
||||||
Premiums
|
$
|
43,840
|
|
|
$
|
38,992
|
|
|
$
|
37,202
|
|
Universal life and investment-type product policy fees
|
5,502
|
|
|
5,510
|
|
|
5,483
|
|
|||
Net investment income
|
16,166
|
|
|
17,363
|
|
|
16,790
|
|
|||
Other revenues
|
1,880
|
|
|
1,341
|
|
|
1,685
|
|
|||
Net investment gains (losses)
|
(298
|
)
|
|
(308
|
)
|
|
317
|
|
|||
Net derivative gains (losses)
|
851
|
|
|
(590
|
)
|
|
(690
|
)
|
|||
Total revenues
|
67,941
|
|
|
62,308
|
|
|
60,787
|
|
|||
Expenses
|
|
|
|
|
|
||||||
Policyholder benefits and claims and policyholder dividends
|
43,907
|
|
|
39,544
|
|
|
37,581
|
|
|||
Interest credited to policyholder account balances
|
4,013
|
|
|
5,607
|
|
|
5,176
|
|
|||
Capitalization of DAC
|
(3,254
|
)
|
|
(3,002
|
)
|
|
(3,152
|
)
|
|||
Amortization of DAC and VOBA
|
2,975
|
|
|
2,681
|
|
|
2,718
|
|
|||
Amortization of negative VOBA
|
(56
|
)
|
|
(140
|
)
|
|
(269
|
)
|
|||
Interest expense on debt
|
1,122
|
|
|
1,129
|
|
|
1,157
|
|
|||
Other expenses
|
12,927
|
|
|
12,953
|
|
|
13,295
|
|
|||
Total expenses
|
61,634
|
|
|
58,772
|
|
|
56,506
|
|
|||
Income (loss) from continuing operations before provision for income tax
|
6,307
|
|
|
3,536
|
|
|
4,281
|
|
|||
Provision for income tax expense (benefit)
|
1,179
|
|
|
(1,470
|
)
|
|
693
|
|
|||
Income (loss) from continuing operations, net of income tax
|
5,128
|
|
|
5,006
|
|
|
3,588
|
|
|||
Income (loss) from discontinued operations, net of income tax
|
—
|
|
|
(986
|
)
|
|
(2,734
|
)
|
|||
Net income (loss)
|
5,128
|
|
|
4,020
|
|
|
854
|
|
|||
Less: Net income (loss) attributable to noncontrolling interests
|
5
|
|
|
10
|
|
|
4
|
|
|||
Net income (loss) attributable to MetLife, Inc.
|
5,123
|
|
|
4,010
|
|
|
850
|
|
|||
Less: Preferred stock dividends
|
141
|
|
|
103
|
|
|
103
|
|
|||
Net income (loss) available to MetLife, Inc.’s common shareholders
|
$
|
4,982
|
|
|
$
|
3,907
|
|
|
$
|
747
|
|
|
Years Ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In millions)
|
||||||
Non-VA program derivatives
|
|
|
|
||||
Interest rate
|
$
|
177
|
|
|
$
|
(39
|
)
|
Foreign currency exchange rate
|
464
|
|
|
(379
|
)
|
||
Credit
|
(52
|
)
|
|
198
|
|
||
Equity
|
115
|
|
|
6
|
|
||
Non-VA embedded derivatives
|
78
|
|
|
(131
|
)
|
||
Total non-VA program derivatives
|
782
|
|
|
(345
|
)
|
||
VA program derivatives
|
|
|
|
||||
Market risks in embedded derivatives
|
(51
|
)
|
|
1,052
|
|
||
Nonperformance risk adjustment on embedded derivatives
|
133
|
|
|
(190
|
)
|
||
Other risks in embedded derivatives
|
(310
|
)
|
|
68
|
|
||
Total embedded derivatives
|
(228
|
)
|
|
930
|
|
||
Freestanding derivatives hedging embedded derivatives
|
297
|
|
|
(1,175
|
)
|
||
Total VA program derivatives
|
69
|
|
|
(245
|
)
|
||
Net derivative gains (losses)
|
$
|
851
|
|
|
$
|
(590
|
)
|
•
|
Key equity index levels decreased in 2018 and increased in 2017, contributing to a favorable change in our freestanding derivatives and an unfavorable change in our embedded derivatives. For example, the S&P 500 Index decreased 6% in 2018 and increased 19% in 2017.
|
•
|
Long-term U.S. interest rates increased in 2018 and mostly decreased in 2017, 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, partially offset by the increase in interest rates. For example, the 30-year U.S. swap rate increased 30 basis points in 2018 and decreased 5 basis points in 2017.
|
•
|
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 7% in 2018 and weakened by 10% in 2017.
|
•
|
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.
|
•
|
Economic assumption updates resulted in net favorable changes in reserves and DAC of $38 million ($29 million, net of income tax).
|
•
|
Changes to biometric assumptions resulted in net favorable changes in 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).
|
|
Years Ended December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(In millions)
|
||||||
Non-VA program derivatives
|
|
|
|
||||
Interest rate
|
$
|
(39
|
)
|
|
$
|
(449
|
)
|
Foreign currency exchange rate
|
(379
|
)
|
|
352
|
|
||
Credit
|
198
|
|
|
108
|
|
||
Equity
|
6
|
|
|
12
|
|
||
Non-VA embedded derivatives
|
(131
|
)
|
|
26
|
|
||
Total non-VA program derivatives
|
(345
|
)
|
|
49
|
|
||
VA program derivatives
|
|
|
|
||||
Market risks in embedded derivatives
|
1,052
|
|
|
364
|
|
||
Nonperformance risk adjustment on embedded derivatives
|
(190
|
)
|
|
156
|
|
||
Other risks in embedded derivatives
|
68
|
|
|
(727
|
)
|
||
Total embedded derivatives
|
930
|
|
|
(207
|
)
|
||
Freestanding derivatives hedging embedded derivatives
|
(1,175
|
)
|
|
(532
|
)
|
||
Total VA program derivatives
|
(245
|
)
|
|
(739
|
)
|
||
Net derivative gains (losses)
|
$
|
(590
|
)
|
|
$
|
(690
|
)
|
•
|
Changes in foreign currency exchange rates contributed to an unfavorable change in our freestanding derivatives and a favorable change in our embedded derivatives related to the assumed variable annuity guarantees from our former operating joint venture in Japan. For example, the Japanese yen weakened against the euro by 10% in 2017 and strengthened by 6% in 2016.
|
•
|
Key equity index levels increased more in 2017 than in 2016, contributing to an unfavorable change in our freestanding derivatives and a favorable change in our embedded derivatives. For example, the S&P 500 Index increased 19% in 2017 and increased 10% in 2016.
|
•
|
Long-term interest rates in Japan increased in 2017 and decreased in 2016, contributing to a favorable change in our embedded derivatives and an unfavorable change in our freestanding derivatives related to the assumed variable annuity guarantees from our former operating joint venture in Japan. This was partially offset by long-term U.S. interest rates mostly decreasing in 2017 and mostly increasing in 2016. For example, the 30-year Japan swap rate increased five basis points in 2017 and decreased 41 basis points in 2016, and the 20-year U.S. swap rate decreased three basis points in 2017 and increased three basis points in 2016.
|
•
|
Updates to actuarial policyholder behavior assumptions within the valuation model.
|
•
|
A change in the risk margin adjustment measuring policyholder behavior risks, along with market and interest rate changes, and
|
•
|
The partially offsetting impact of a combination of other factors, which include fees being deducted from accounts and changes in the benefit base, premiums, lapses, withdrawals and mortality rates.
|
•
|
Changes in operational assumptions, most notably related to updates to maintenance expense and closed block projections, resulted in a net gain of $114 million ($74 million net of income tax).
|
•
|
Changes in policyholder behavior assumptions resulted in reserve increases, partially offset by favorable DAC, resulting in a net charge of $47 million ($29 million, net of income tax).
|
•
|
Economic assumption updates resulted in reserve increases and DAC releases, resulting in a charge of $19 million ($13 million net of income tax).
|
•
|
Changes to biometric assumptions resulted in an increase in reserves, partially offset by favorable DAC, resulting in a charge of $11 million ($7 million, net of income tax).
|
|
U.S.
|
|
Asia
|
|
Latin
America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate & Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Net income (loss)
|
$
|
2,755
|
|
|
$
|
1,547
|
|
|
$
|
477
|
|
|
$
|
296
|
|
|
$
|
1,016
|
|
|
$
|
(963
|
)
|
|
$
|
5,128
|
|
Less: Income (loss) from discontinued operations, net of income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Income (loss) from continuing operations, net of income tax
|
$
|
2,755
|
|
|
$
|
1,547
|
|
|
$
|
477
|
|
|
$
|
296
|
|
|
$
|
1,016
|
|
|
$
|
(963
|
)
|
|
$
|
5,128
|
|
Less: Net investment gains (losses)
|
(72
|
)
|
|
142
|
|
|
18
|
|
|
5
|
|
|
(164
|
)
|
|
(227
|
)
|
|
(298
|
)
|
|||||||
Less: Net derivative gains (losses)
|
268
|
|
|
312
|
|
|
(64
|
)
|
|
28
|
|
|
263
|
|
|
44
|
|
|
851
|
|
|||||||
Less: Other adjustments to continuing operations (1)
|
(259
|
)
|
|
(29
|
)
|
|
(94
|
)
|
|
(21
|
)
|
|
(401
|
)
|
|
(137
|
)
|
|
(941
|
)
|
|||||||
Less: Provision for income tax (expense) benefit
|
14
|
|
|
(115
|
)
|
|
25
|
|
|
7
|
|
|
63
|
|
|
(80
|
)
|
|
(86
|
)
|
|||||||
Adjusted earnings
|
$
|
2,804
|
|
|
$
|
1,237
|
|
|
$
|
592
|
|
|
$
|
277
|
|
|
$
|
1,255
|
|
|
(563
|
)
|
|
5,602
|
|
||
Less: Preferred stock dividends
|
|
|
|
|
|
|
|
|
|
|
141
|
|
|
141
|
|
||||||||||||
Adjusted earnings available to common shareholders
|
|
|
|
|
|
|
|
|
|
|
$
|
(704
|
)
|
|
$
|
5,461
|
|
|
U.S.
|
|
Asia
|
|
Latin
America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate & Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Net income (loss)
|
$
|
2,001
|
|
|
$
|
1,298
|
|
|
$
|
613
|
|
|
$
|
301
|
|
|
$
|
914
|
|
|
$
|
(1,107
|
)
|
|
$
|
4,020
|
|
Less: Income (loss) from discontinued operations, net of income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(986
|
)
|
|
(986
|
)
|
|||||||
Income (loss) from continuing operations, net of income tax
|
$
|
2,001
|
|
|
$
|
1,298
|
|
|
$
|
613
|
|
|
$
|
301
|
|
|
$
|
914
|
|
|
$
|
(121
|
)
|
|
$
|
5,006
|
|
Less: Net investment gains (losses)
|
180
|
|
|
128
|
|
|
(47
|
)
|
|
(10
|
)
|
|
71
|
|
|
(630
|
)
|
|
(308
|
)
|
|||||||
Less: Net derivative gains (losses)
|
(21
|
)
|
|
31
|
|
|
108
|
|
|
32
|
|
|
(339
|
)
|
|
(401
|
)
|
|
(590
|
)
|
|||||||
Less: Other adjustments to continuing operations (1)
|
(197
|
)
|
|
(43
|
)
|
|
8
|
|
|
17
|
|
|
(337
|
)
|
|
(1,070
|
)
|
|
(1,622
|
)
|
|||||||
Less: Provision for income tax (expense) benefit
|
12
|
|
|
(47
|
)
|
|
(41
|
)
|
|
(35
|
)
|
|
337
|
|
|
2,962
|
|
|
3,188
|
|
|||||||
Adjusted earnings
|
$
|
2,027
|
|
|
$
|
1,229
|
|
|
$
|
585
|
|
|
$
|
297
|
|
|
$
|
1,182
|
|
|
(982
|
)
|
|
4,338
|
|
||
Less: Preferred stock dividends
|
|
|
|
|
|
|
|
|
|
|
103
|
|
|
103
|
|
||||||||||||
Adjusted earnings available to common shareholders
|
|
|
|
|
|
|
|
|
|
|
$
|
(1,085
|
)
|
|
$
|
4,235
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Adjusted earnings available to common shareholders on a constant currency basis
|
$
|
2,027
|
|
|
$
|
1,235
|
|
|
$
|
572
|
|
|
$
|
297
|
|
|
$
|
1,182
|
|
|
$
|
(1,085
|
)
|
|
$
|
4,228
|
|
|
U.S.
|
|
Asia
|
|
Latin
America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate & Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Net income (loss)
|
$
|
1,756
|
|
|
$
|
1,420
|
|
|
$
|
629
|
|
|
$
|
311
|
|
|
$
|
300
|
|
|
$
|
(3,562
|
)
|
|
$
|
854
|
|
Less: Income (loss) from discontinued operations, net of income tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,734
|
)
|
|
(2,734
|
)
|
|||||||
Income (loss) from continuing operations, net of income tax
|
$
|
1,756
|
|
|
$
|
1,420
|
|
|
$
|
629
|
|
|
$
|
311
|
|
|
$
|
300
|
|
|
$
|
(828
|
)
|
|
$
|
3,588
|
|
Less: Net investment gains (losses)
|
(15
|
)
|
|
230
|
|
|
93
|
|
|
42
|
|
|
182
|
|
|
(215
|
)
|
|
317
|
|
|||||||
Less: Net derivative gains (losses)
|
53
|
|
|
(47
|
)
|
|
3
|
|
|
24
|
|
|
(757
|
)
|
|
34
|
|
|
(690
|
)
|
|||||||
Less: Other adjustments to continuing operations (1)
|
(263
|
)
|
|
26
|
|
|
58
|
|
|
33
|
|
|
(50
|
)
|
|
(285
|
)
|
|
(481
|
)
|
|||||||
Less: Provision for income tax (expense) benefit
|
85
|
|
|
(13
|
)
|
|
(68
|
)
|
|
(61
|
)
|
|
219
|
|
|
144
|
|
|
306
|
|
|||||||
Adjusted earnings
|
$
|
1,896
|
|
|
$
|
1,224
|
|
|
$
|
543
|
|
|
$
|
273
|
|
|
$
|
706
|
|
|
(506
|
)
|
|
4,136
|
|
||
Less: Preferred stock dividends
|
|
|
|
|
|
|
|
|
|
|
103
|
|
|
103
|
|
||||||||||||
Adjusted earnings available to common shareholders
|
|
|
|
|
|
|
|
|
|
|
$
|
(609
|
)
|
|
$
|
4,033
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Adjusted earnings available to common shareholders on a constant currency basis
|
$
|
1,896
|
|
|
$
|
1,216
|
|
|
$
|
541
|
|
|
$
|
261
|
|
|
$
|
706
|
|
|
$
|
(609
|
)
|
|
$
|
4,011
|
|
(1)
|
See definitions and components of adjusted revenues and adjusted expenses under “— Non-GAAP and Other Financial Disclosures.” Further, see “— Reconciliation of revenues to adjusted revenues and expenses to adjusted expenses” 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
|
$
|
36,959
|
|
|
$
|
11,969
|
|
|
$
|
5,000
|
|
|
$
|
2,491
|
|
|
$
|
10,762
|
|
|
$
|
760
|
|
|
$
|
67,941
|
|
Less: Adjustments from total revenues to adjusted revenues, in the line items indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net investment gains (losses)
|
(72
|
)
|
|
142
|
|
|
18
|
|
|
5
|
|
|
(164
|
)
|
|
(227
|
)
|
|
(298
|
)
|
|||||||
Net derivative gains (losses)
|
268
|
|
|
312
|
|
|
(64
|
)
|
|
28
|
|
|
263
|
|
|
44
|
|
|
851
|
|
|||||||
Premiums
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Universal life and investment-type product policy fees
|
—
|
|
|
(6
|
)
|
|
7
|
|
|
25
|
|
|
94
|
|
|
—
|
|
|
120
|
|
|||||||
Net investment income
|
(274
|
)
|
|
(262
|
)
|
|
(45
|
)
|
|
(488
|
)
|
|
(157
|
)
|
|
9
|
|
|
(1,217
|
)
|
|||||||
Other revenues
|
—
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
305
|
|
|
324
|
|
|||||||
Total adjusted revenues
|
$
|
37,037
|
|
|
$
|
11,764
|
|
|
$
|
5,084
|
|
|
$
|
2,921
|
|
|
$
|
10,726
|
|
|
$
|
629
|
|
|
$
|
68,161
|
|
Total expenses
|
$
|
33,482
|
|
|
$
|
9,759
|
|
|
$
|
4,310
|
|
|
$
|
2,114
|
|
|
$
|
9,501
|
|
|
$
|
2,468
|
|
|
$
|
61,634
|
|
Less: Adjustments from total expenses to adjusted expenses, in the line items indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
(11
|
)
|
|
(3
|
)
|
|
40
|
|
|
31
|
|
|
117
|
|
|
—
|
|
|
174
|
|
|||||||
Interest credited to policyholder account balances
|
(4
|
)
|
|
(218
|
)
|
|
21
|
|
|
(479
|
)
|
|
—
|
|
|
—
|
|
|
(680
|
)
|
|||||||
Capitalization of DAC
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||||
Amortization of DAC and VOBA
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(1
|
)
|
|
221
|
|
|
—
|
|
|
215
|
|
|||||||
Amortization of negative VOBA
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||||
Interest expense on debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63
|
|
|
63
|
|
|||||||
Other expenses
|
—
|
|
|
7
|
|
|
(4
|
)
|
|
7
|
|
|
—
|
|
|
388
|
|
|
398
|
|
|||||||
Total adjusted expenses
|
$
|
33,497
|
|
|
$
|
9,979
|
|
|
$
|
4,254
|
|
|
$
|
2,556
|
|
|
$
|
9,163
|
|
|
$
|
2,017
|
|
|
$
|
61,466
|
|
|
U.S.
|
|
Asia
|
|
Latin
America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate & Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Total revenues
|
$
|
31,810
|
|
|
$
|
11,875
|
|
|
$
|
5,118
|
|
|
$
|
3,729
|
|
|
$
|
11,005
|
|
|
$
|
(1,229
|
)
|
|
$
|
62,308
|
|
Less: Adjustments from total revenues to adjusted revenues, in the line items indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net investment gains (losses)
|
180
|
|
|
128
|
|
|
(47
|
)
|
|
(10
|
)
|
|
71
|
|
|
(630
|
)
|
|
(308
|
)
|
|||||||
Net derivative gains (losses)
|
(21
|
)
|
|
31
|
|
|
108
|
|
|
32
|
|
|
(339
|
)
|
|
(401
|
)
|
|
(590
|
)
|
|||||||
Premiums
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(347
|
)
|
|
(347
|
)
|
|||||||
Universal life and investment-type product policy fees
|
—
|
|
|
13
|
|
|
—
|
|
|
26
|
|
|
98
|
|
|
(34
|
)
|
|
103
|
|
|||||||
Net investment income
|
(195
|
)
|
|
314
|
|
|
69
|
|
|
848
|
|
|
(181
|
)
|
|
(36
|
)
|
|
819
|
|
|||||||
Other revenues
|
—
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(135
|
)
|
|
(113
|
)
|
|||||||
Total adjusted revenues
|
$
|
31,846
|
|
|
$
|
11,367
|
|
|
$
|
4,988
|
|
|
$
|
2,833
|
|
|
$
|
11,356
|
|
|
$
|
354
|
|
|
$
|
62,744
|
|
Total expenses
|
$
|
28,797
|
|
|
$
|
9,910
|
|
|
$
|
4,308
|
|
|
$
|
3,334
|
|
|
$
|
9,881
|
|
|
$
|
2,542
|
|
|
$
|
58,772
|
|
Less: Adjustments from total expenses to adjusted expenses, in the line items indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
5
|
|
|
20
|
|
|
(36
|
)
|
|
28
|
|
|
322
|
|
|
(135
|
)
|
|
204
|
|
|||||||
Interest credited to policyholder account balances
|
(3
|
)
|
|
345
|
|
|
105
|
|
|
814
|
|
|
—
|
|
|
33
|
|
|
1,294
|
|
|||||||
Capitalization of DAC
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
34
|
|
|||||||
Amortization of DAC and VOBA
|
—
|
|
|
9
|
|
|
—
|
|
|
(1
|
)
|
|
(68
|
)
|
|
93
|
|
|
33
|
|
|||||||
Amortization of negative VOBA
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|||||||
Interest expense on debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
(16
|
)
|
|||||||
Other expenses
|
—
|
|
|
27
|
|
|
(8
|
)
|
|
16
|
|
|
—
|
|
|
509
|
|
|
544
|
|
|||||||
Total adjusted expenses
|
$
|
28,795
|
|
|
$
|
9,518
|
|
|
$
|
4,247
|
|
|
$
|
2,477
|
|
|
$
|
9,627
|
|
|
$
|
2,024
|
|
|
$
|
56,688
|
|
|
U.S.
|
|
Asia
|
|
Latin
America
|
|
EMEA
|
|
MetLife Holdings
|
|
Corporate & Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Total revenues
|
$
|
29,254
|
|
|
$
|
11,973
|
|
|
$
|
4,816
|
|
|
$
|
3,810
|
|
|
$
|
11,710
|
|
|
$
|
(776
|
)
|
|
$
|
60,787
|
|
Less: Adjustments from total revenues to adjusted revenues, in the line items indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net investment gains (losses)
|
(15
|
)
|
|
230
|
|
|
93
|
|
|
42
|
|
|
182
|
|
|
(215
|
)
|
|
317
|
|
|||||||
Net derivative gains (losses)
|
53
|
|
|
(47
|
)
|
|
3
|
|
|
24
|
|
|
(757
|
)
|
|
34
|
|
|
(690
|
)
|
|||||||
Premiums
|
—
|
|
|
426
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(729
|
)
|
|
(303
|
)
|
|||||||
Universal life and investment-type product policy fees
|
—
|
|
|
98
|
|
|
—
|
|
|
24
|
|
|
92
|
|
|
(62
|
)
|
|
152
|
|
|||||||
Net investment income
|
(264
|
)
|
|
100
|
|
|
48
|
|
|
911
|
|
|
(274
|
)
|
|
(168
|
)
|
|
353
|
|
|||||||
Other revenues
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
42
|
|
|||||||
Total adjusted revenues
|
$
|
29,480
|
|
|
$
|
11,158
|
|
|
$
|
4,672
|
|
|
$
|
2,809
|
|
|
$
|
12,467
|
|
|
$
|
330
|
|
|
$
|
60,916
|
|
Total expenses
|
$
|
26,607
|
|
|
$
|
10,061
|
|
|
$
|
3,961
|
|
|
$
|
3,396
|
|
|
$
|
11,337
|
|
|
$
|
1,144
|
|
|
$
|
56,506
|
|
Less: Adjustments from total expenses to adjusted expenses, in the line items indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
2
|
|
|
347
|
|
|
(86
|
)
|
|
11
|
|
|
166
|
|
|
(735
|
)
|
|
(295
|
)
|
|||||||
Interest credited to policyholder account balances
|
(3
|
)
|
|
70
|
|
|
85
|
|
|
878
|
|
|
—
|
|
|
58
|
|
|
1,088
|
|
|||||||
Capitalization of DAC
|
—
|
|
|
(105
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
104
|
|
|
(1
|
)
|
|||||||
Amortization of DAC and VOBA
|
—
|
|
|
114
|
|
|
—
|
|
|
—
|
|
|
(312
|
)
|
|
(127
|
)
|
|
(325
|
)
|
|||||||
Amortization of negative VOBA
|
—
|
|
|
(47
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
|||||||
Interest expense on debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
(50
|
)
|
|||||||
Other expenses
|
—
|
|
|
227
|
|
|
(9
|
)
|
|
13
|
|
|
14
|
|
|
110
|
|
|
355
|
|
|||||||
Total adjusted expenses
|
$
|
26,608
|
|
|
$
|
9,455
|
|
|
$
|
3,971
|
|
|
$
|
2,494
|
|
|
$
|
11,469
|
|
|
$
|
1,784
|
|
|
$
|
55,781
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Adjusted revenues
|
|
|
|
|
|
||||||
Premiums
|
$
|
28,186
|
|
|
$
|
23,632
|
|
|
$
|
21,501
|
|
Universal life and investment-type product policy fees
|
1,053
|
|
|
1,012
|
|
|
989
|
|
|||
Net investment income
|
6,977
|
|
|
6,396
|
|
|
6,206
|
|
|||
Other revenues
|
821
|
|
|
806
|
|
|
784
|
|
|||
Total adjusted revenues
|
37,037
|
|
|
31,846
|
|
|
29,480
|
|
|||
Adjusted expenses
|
|
|
|
|
|
||||||
Policyholder benefits and claims and policyholder dividends
|
27,765
|
|
|
23,627
|
|
|
21,591
|
|
|||
Interest credited to policyholder account balances
|
1,790
|
|
|
1,474
|
|
|
1,302
|
|
|||
Capitalization of DAC
|
(449
|
)
|
|
(458
|
)
|
|
(471
|
)
|
|||
Amortization of DAC and VOBA
|
477
|
|
|
459
|
|
|
471
|
|
|||
Interest expense on debt
|
12
|
|
|
11
|
|
|
9
|
|
|||
Other expenses
|
3,902
|
|
|
3,682
|
|
|
3,706
|
|
|||
Total adjusted expenses
|
33,497
|
|
|
28,795
|
|
|
26,608
|
|
|||
Provision for income tax expense (benefit)
|
736
|
|
|
1,024
|
|
|
976
|
|
|||
Adjusted earnings
|
$
|
2,804
|
|
|
$
|
2,027
|
|
|
$
|
1,896
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Adjusted revenues
|
|
|
|
|
|
||||||
Premiums
|
$
|
6,766
|
|
|
$
|
6,755
|
|
|
$
|
6,902
|
|
Universal life and investment-type product policy fees
|
1,630
|
|
|
1,584
|
|
|
1,488
|
|
|||
Net investment income
|
3,317
|
|
|
2,985
|
|
|
2,707
|
|
|||
Other revenues
|
51
|
|
|
43
|
|
|
61
|
|
|||
Total adjusted revenues
|
11,764
|
|
|
11,367
|
|
|
11,158
|
|
|||
Adjusted expenses
|
|
|
|
|
|
||||||
Policyholder benefits and claims and policyholder dividends
|
5,326
|
|
|
5,075
|
|
|
5,211
|
|
|||
Interest credited to policyholder account balances
|
1,465
|
|
|
1,351
|
|
|
1,298
|
|
|||
Capitalization of DAC
|
(1,915
|
)
|
|
(1,710
|
)
|
|
(1,668
|
)
|
|||
Amortization of DAC and VOBA
|
1,302
|
|
|
1,300
|
|
|
1,236
|
|
|||
Amortization of negative VOBA
|
(39
|
)
|
|
(111
|
)
|
|
(208
|
)
|
|||
Other expenses
|
3,840
|
|
|
3,613
|
|
|
3,586
|
|
|||
Total adjusted expenses
|
9,979
|
|
|
9,518
|
|
|
9,455
|
|
|||
Provision for income tax expense (benefit)
|
548
|
|
|
620
|
|
|
479
|
|
|||
Adjusted earnings
|
$
|
1,237
|
|
|
$
|
1,229
|
|
|
$
|
1,224
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Adjusted revenues
|
|
|
|
|
|
||||||
Premiums
|
$
|
2,760
|
|
|
$
|
2,693
|
|
|
$
|
2,529
|
|
Universal life and investment-type product policy fees
|
1,050
|
|
|
1,044
|
|
|
1,025
|
|
|||
Net investment income
|
1,239
|
|
|
1,219
|
|
|
1,084
|
|
|||
Other revenues
|
35
|
|
|
32
|
|
|
34
|
|
|||
Total adjusted revenues
|
5,084
|
|
|
4,988
|
|
|
4,672
|
|
|||
Adjusted expenses
|
|
|
|
|
|
||||||
Policyholder benefits and claims and policyholder dividends
|
2,602
|
|
|
2,535
|
|
|
2,443
|
|
|||
Interest credited to policyholder account balances
|
394
|
|
|
369
|
|
|
328
|
|
|||
Capitalization of DAC
|
(377
|
)
|
|
(364
|
)
|
|
(321
|
)
|
|||
Amortization of DAC and VOBA
|
209
|
|
|
224
|
|
|
184
|
|
|||
Amortization of negative VOBA
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|||
Interest expense on debt
|
6
|
|
|
5
|
|
|
2
|
|
|||
Other expenses
|
1,421
|
|
|
1,479
|
|
|
1,336
|
|
|||
Total adjusted expenses
|
4,254
|
|
|
4,247
|
|
|
3,971
|
|
|||
Provision for income tax expense (benefit)
|
238
|
|
|
156
|
|
|
158
|
|
|||
Adjusted earnings
|
$
|
592
|
|
|
$
|
585
|
|
|
$
|
543
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Adjusted revenues
|
|
|
|
|
|
||||||
Premiums
|
$
|
2,131
|
|
|
$
|
2,061
|
|
|
$
|
2,027
|
|
Universal life and investment-type product policy fees
|
431
|
|
|
405
|
|
|
391
|
|
|||
Net investment income
|
293
|
|
|
309
|
|
|
318
|
|
|||
Other revenues
|
66
|
|
|
58
|
|
|
73
|
|
|||
Total adjusted revenues
|
2,921
|
|
|
2,833
|
|
|
2,809
|
|
|||
Adjusted expenses
|
|
|
|
|
|
||||||
Policyholder benefits and claims and policyholder dividends
|
1,127
|
|
|
1,077
|
|
|
1,067
|
|
|||
Interest credited to policyholder account balances
|
100
|
|
|
100
|
|
|
112
|
|
|||
Capitalization of DAC
|
(468
|
)
|
|
(414
|
)
|
|
(403
|
)
|
|||
Amortization of DAC and VOBA
|
434
|
|
|
357
|
|
|
408
|
|
|||
Amortization of negative VOBA
|
(15
|
)
|
|
(19
|
)
|
|
(13
|
)
|
|||
Other expenses
|
1,378
|
|
|
1,376
|
|
|
1,323
|
|
|||
Total adjusted expenses
|
2,556
|
|
|
2,477
|
|
|
2,494
|
|
|||
Provision for income tax expense (benefit)
|
88
|
|
|
59
|
|
|
42
|
|
|||
Adjusted earnings
|
$
|
277
|
|
|
$
|
297
|
|
|
$
|
273
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Adjusted revenues
|
|
|
|
|
|
||||||
Premiums
|
$
|
3,879
|
|
|
$
|
4,144
|
|
|
$
|
4,506
|
|
Universal life and investment-type product policy fees
|
1,218
|
|
|
1,361
|
|
|
1,436
|
|
|||
Net investment income
|
5,379
|
|
|
5,607
|
|
|
5,944
|
|
|||
Other revenues
|
250
|
|
|
244
|
|
|
581
|
|
|||
Total adjusted revenues
|
10,726
|
|
|
11,356
|
|
|
12,467
|
|
|||
Adjusted expenses
|
|
|
|
|
|
||||||
Policyholder benefits and claims and policyholder dividends
|
6,833
|
|
|
7,000
|
|
|
7,523
|
|
|||
Interest credited to policyholder account balances
|
944
|
|
|
1,018
|
|
|
1,042
|
|
|||
Capitalization of DAC
|
(36
|
)
|
|
(82
|
)
|
|
(281
|
)
|
|||
Amortization of DAC and VOBA
|
332
|
|
|
302
|
|
|
736
|
|
|||
Interest expense on debt
|
9
|
|
|
24
|
|
|
57
|
|
|||
Other expenses
|
1,081
|
|
|
1,365
|
|
|
2,392
|
|
|||
Total adjusted expenses
|
9,163
|
|
|
9,627
|
|
|
11,469
|
|
|||
Provision for income tax expense (benefit)
|
308
|
|
|
547
|
|
|
292
|
|
|||
Adjusted earnings
|
$
|
1,255
|
|
|
$
|
1,182
|
|
|
$
|
706
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Adjusted revenues
|
|
|
|
|
|
||||||
Premiums
|
$
|
118
|
|
|
$
|
54
|
|
|
$
|
40
|
|
Universal life and investment-type product policy fees
|
—
|
|
|
1
|
|
|
2
|
|
|||
Net investment income
|
178
|
|
|
28
|
|
|
178
|
|
|||
Other revenues
|
333
|
|
|
271
|
|
|
110
|
|
|||
Total adjusted revenues
|
629
|
|
|
354
|
|
|
330
|
|
|||
Adjusted expenses
|
|
|
|
|
|
||||||
Policyholder benefits and claims and policyholder dividends
|
80
|
|
|
26
|
|
|
41
|
|
|||
Interest credited to policyholder account balances
|
—
|
|
|
1
|
|
|
6
|
|
|||
Capitalization of DAC
|
(8
|
)
|
|
(8
|
)
|
|
(7
|
)
|
|||
Amortization of DAC and VOBA
|
6
|
|
|
6
|
|
|
8
|
|
|||
Interest expense on debt
|
1,032
|
|
|
1,105
|
|
|
1,139
|
|
|||
Other expenses
|
907
|
|
|
894
|
|
|
597
|
|
|||
Total adjusted expenses
|
2,017
|
|
|
2,024
|
|
|
1,784
|
|
|||
Provision for income tax expense (benefit)
|
(825
|
)
|
|
(688
|
)
|
|
(948
|
)
|
|||
Adjusted earnings
|
(563
|
)
|
|
(982
|
)
|
|
(506
|
)
|
|||
Less: Preferred stock dividends
|
141
|
|
|
103
|
|
|
103
|
|
|||
Adjusted earnings available to common shareholders
|
$
|
(704
|
)
|
|
$
|
(1,085
|
)
|
|
$
|
(609
|
)
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Other business activities
|
$
|
41
|
|
|
$
|
28
|
|
|
$
|
(8
|
)
|
Other net investment income
|
263
|
|
|
221
|
|
|
338
|
|
|||
Interest expense on debt
|
(1,076
|
)
|
|
(1,198
|
)
|
|
(1,252
|
)
|
|||
Corporate initiatives and projects
|
(405
|
)
|
|
(275
|
)
|
|
(198
|
)
|
|||
Other
|
(368
|
)
|
|
(384
|
)
|
|
(332
|
)
|
|||
Provision for income tax (expense) benefit and other tax-related items
|
982
|
|
|
626
|
|
|
946
|
|
|||
Preferred stock dividends
|
(141
|
)
|
|
(103
|
)
|
|
(103
|
)
|
|||
Adjusted earnings available to common shareholders
|
$
|
(704
|
)
|
|
$
|
(1,085
|
)
|
|
$
|
(609
|
)
|
•
|
credit risk, relating to the uncertainty associated with the continued ability of a given obligor to make timely payments of principal and interest;
|
•
|
interest rate risk, relating to the market price and cash flow variability associated with changes in market interest rates. Changes in market interest rates will impact the net unrealized gain or loss position of our fixed income investment portfolio and the rates of return we receive on both new funds invested and reinvestment of existing funds;
|
•
|
liquidity risk, relating to the diminished ability to sell certain investments, in times of strained market conditions;
|
•
|
market valuation risk, relating to the variability in the estimated fair value of investments associated with changes in market factors such as credit spreads and equity market levels. A widening of credit spreads will adversely impact the net unrealized gain (loss) position of the fixed income investment portfolio, will increase losses associated with credit-based non-qualifying derivatives where we assume credit exposure, and, if credit spreads widen significantly or for an extended period of time, will likely result in higher OTTI. Credit spread tightening will reduce net investment income associated with purchases of fixed maturity securities AFS and will favorably impact the net unrealized gain (loss) position of the fixed income investment portfolio;
|
•
|
currency risk, relating to the variability in currency exchange rates for foreign denominated investments including with respect to the U.K.’s planned withdrawal from the EU. This risk relates to potential decreases in estimated fair value and net investment income resulting from changes in currency exchange rates versus the U.S. dollar. In general, the weakening of foreign currencies versus the U.S. dollar will adversely affect the estimated fair value of our foreign denominated investments; and
|
•
|
real estate risk, relating to commercial, agricultural and residential real estate, and stemming from factors, which include, but are not limited to, market conditions, including the supply and demand of leasable commercial space, creditworthiness of borrowers and their tenants and joint venture partners, capital markets volatility, changes in market interest rates, commodity prices, farm incomes and U.S. housing market conditions.
|
|
Selected Country Fixed Maturity Securities AFS at December 31, 2018
|
||||||||||||||||||
|
Sovereign
|
|
Financial
Services |
|
Non-Financial
Services |
|
Structured
|
|
Total (1)
|
||||||||||
|
(Dollars in millions)
|
||||||||||||||||||
United Kingdom
|
$
|
25
|
|
|
$
|
3,973
|
|
|
$
|
9,840
|
|
|
$
|
291
|
|
|
$
|
14,129
|
|
Argentina
|
349
|
|
|
24
|
|
|
20
|
|
|
—
|
|
|
393
|
|
|||||
Turkey
|
189
|
|
|
5
|
|
|
77
|
|
|
—
|
|
|
271
|
|
|||||
Total
|
$
|
563
|
|
|
$
|
4,002
|
|
|
$
|
9,937
|
|
|
$
|
291
|
|
|
$
|
14,793
|
|
Investment grade %
|
4
|
%
|
|
99
|
%
|
|
94
|
%
|
|
85
|
%
|
|
91
|
%
|
(1)
|
The par value and amortized cost of these selected country fixed maturity securities AFS were
$14.4 billion
and
$15.4 billion
, respectively, at December 31,
2018
.
|
|
For the Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Net investment income — GAAP basis
|
$
|
16,166
|
|
|
$
|
17,363
|
|
|
$
|
16,790
|
|
Investment hedge adjustments
|
475
|
|
|
435
|
|
|
580
|
|
|||
Unit-linked contract income
|
683
|
|
|
(1,300
|
)
|
|
(950
|
)
|
|||
Other
|
59
|
|
|
46
|
|
|
17
|
|
|||
Net investment income, as reported on an adjusted basis (1)
|
$
|
17,383
|
|
|
$
|
16,544
|
|
|
$
|
16,437
|
|
(1)
|
See “— Non-GAAP and Other Financial Disclosures — Adjusted earnings and related measures — Adjusted revenues and adjusted expenses — Net investment income” for a discussion of the adjustments made to net investment income under GAAP in calculating net investment income, as reported on an adjusted basis.
|
|
For the Years Ended December 31,
|
|||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
Yield% (1)
|
|
Amount
|
|
Yield% (1)
|
|
Amount
|
|
Yield% (1)
|
|
Amount
|
|||||||||
|
(Dollars in millions)
|
|||||||||||||||||||
Fixed maturity securities AFS (2) (3)
|
4.26
|
|
%
|
$
|
11,678
|
|
|
4.29
|
|
%
|
$
|
11,401
|
|
|
4.38
|
|
%
|
$
|
11,665
|
|
Mortgage loans (3)
|
4.66
|
|
%
|
3,340
|
|
|
4.58
|
|
%
|
3,081
|
|
|
4.61
|
|
%
|
2,858
|
|
|||
Real estate and real estate joint ventures
|
3.59
|
|
%
|
352
|
|
|
3.18
|
|
%
|
297
|
|
|
3.73
|
|
%
|
322
|
|
|||
Policy loans
|
5.21
|
|
%
|
506
|
|
|
5.39
|
|
%
|
517
|
|
|
5.29
|
|
%
|
511
|
|
|||
Equity securities
|
4.79
|
|
%
|
64
|
|
|
5.15
|
|
%
|
129
|
|
|
4.82
|
|
%
|
120
|
|
|||
Other limited partnership interests
|
12.97
|
|
%
|
792
|
|
|
14.93
|
|
%
|
797
|
|
|
9.23
|
|
%
|
478
|
|
|||
Cash and short-term investments
|
2.41
|
|
%
|
244
|
|
|
1.48
|
|
%
|
132
|
|
|
1.17
|
|
%
|
111
|
|
|||
Other invested assets
|
|
|
887
|
|
|
|
|
655
|
|
|
|
|
856
|
|
||||||
Investment income
|
4.56
|
|
%
|
17,863
|
|
|
4.53
|
|
%
|
17,009
|
|
|
4.58
|
|
%
|
16,921
|
|
|||
Investment fees and expenses
|
(0.12
|
)
|
|
(479
|
)
|
|
(0.14
|
)
|
|
(511
|
)
|
|
(0.14
|
)
|
|
(507
|
)
|
|||
Net investment income including divested businesses and lag elimination (4)
|
4.44
|
|
%
|
17,384
|
|
|
4.39
|
|
%
|
16,498
|
|
|
4.44
|
|
%
|
16,414
|
|
|||
Less: net investment income from divested businesses and lag elimination (4)
|
|
|
1
|
|
|
|
|
(46
|
)
|
|
|
|
(23
|
)
|
||||||
Net investment income, as reported on an adjusted basis
|
|
|
$
|
17,383
|
|
|
|
|
$
|
16,544
|
|
|
|
|
$
|
16,437
|
|
(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 meaningful measure of performance for this asset class.
|
(2)
|
Investment income from fixed maturity securities AFS includes amounts from FVO Securities of
$51 million
,
$68 million
and
$37 million
for the years ended December 31,
2018
,
2017
and
2016
, 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 and lag elimination.
|
|
December 31, 2018
|
|
December 31, 2017
|
|
||||||||
|
Estimated Fair
Value
|
|
% of
Total
|
|
Estimated Fair
Value
|
|
% of
Total
|
|
||||
|
(Dollars in millions)
|
|
||||||||||
Fixed maturity securities AFS
|
|
|
|
|
|
|
|
|
||||
Publicly-traded
|
$
|
249,595
|
|
|
83.7
|
%
|
$
|
262,078
|
|
|
84.8
|
%
|
Privately-placed
|
48,670
|
|
|
16.3
|
|
46,853
|
|
|
15.2
|
|
||
Total fixed maturity securities AFS
|
$
|
298,265
|
|
|
100.0
|
%
|
$
|
308,931
|
|
|
100.0
|
%
|
Percentage of cash and invested assets
|
66.0
|
%
|
|
|
|
67.6
|
%
|
|
|
|
||
Equity securities
|
|
|
|
|
|
|
|
|
||||
Publicly-traded
|
$
|
1,282
|
|
|
89.0
|
%
|
$
|
1,490
|
|
|
59.3
|
%
|
Privately-held
|
158
|
|
|
11.0
|
|
1,023
|
|
|
40.7
|
|
||
Total equity securities
|
$
|
1,440
|
|
|
100.0
|
%
|
$
|
2,513
|
|
|
100.0
|
%
|
Percentage of cash and invested assets
|
0.3
|
%
|
|
|
|
0.6
|
%
|
|
|
|
||
Perpetual and redeemable securities
|
|
|
|
|
|
|
|
|
||||
Perpetual securities included within fixed maturity securities AFS and equity securities
|
$
|
367
|
|
|
|
|
$
|
440
|
|
|
|
|
Redeemable preferred stock with a stated maturity included within fixed maturity securities AFS
|
$
|
911
|
|
|
|
|
$
|
884
|
|
|
|
|
|
|
|
|
December 31,
|
|
|||||||||||||||||||||||||||
|
|
|
|
2018
|
|
|
2017
|
|
||||||||||||||||||||||||
NAIC
Designation
|
|
NRSRO Rating
|
|
Amortized
Cost
|
|
Unrealized
Gain (Loss)
|
|
Estimated
Fair
Value
|
|
% of
Total
|
|
|
Amortized
Cost
|
|
Unrealized
Gain (Loss)
|
|
Estimated
Fair
Value
|
|
% of
Total
|
|
||||||||||||
|
|
|
|
(Dollars in millions)
|
|
|||||||||||||||||||||||||||
1
|
|
Aaa/Aa/A
|
|
$
|
197,604
|
|
|
$
|
11,202
|
|
|
$
|
208,806
|
|
|
70.0
|
%
|
|
$
|
201,806
|
|
|
$
|
17,024
|
|
|
$
|
218,830
|
|
|
70.8
|
%
|
2
|
|
Baa
|
|
72,482
|
|
|
659
|
|
|
73,141
|
|
|
24.5
|
|
|
67,270
|
|
|
5,126
|
|
|
72,396
|
|
|
23.4
|
|
||||||
|
|
Subtotal investment grade
|
|
270,086
|
|
|
11,861
|
|
|
281,947
|
|
|
94.5
|
|
|
269,076
|
|
|
22,150
|
|
|
291,226
|
|
|
94.2
|
|
||||||
3
|
|
Ba
|
|
11,249
|
|
|
(91
|
)
|
|
11,158
|
|
|
3.7
|
|
|
11,155
|
|
|
556
|
|
|
11,711
|
|
|
3.8
|
|
||||||
4
|
|
B
|
|
4,745
|
|
|
(247
|
)
|
|
4,498
|
|
|
1.6
|
|
|
5,004
|
|
|
151
|
|
|
5,155
|
|
|
1.7
|
|
||||||
5
|
|
Caa and lower
|
|
720
|
|
|
(73
|
)
|
|
647
|
|
|
0.2
|
|
|
824
|
|
|
9
|
|
|
833
|
|
|
0.3
|
|
||||||
6
|
|
In or near default
|
|
16
|
|
|
(1
|
)
|
|
15
|
|
|
—
|
|
|
10
|
|
|
(4
|
)
|
|
6
|
|
|
—
|
|
||||||
|
|
Subtotal below investment grade
|
|
16,730
|
|
|
(412
|
)
|
|
16,318
|
|
|
5.5
|
|
|
16,993
|
|
|
712
|
|
|
17,705
|
|
|
5.8
|
|
||||||
|
|
Total fixed maturity securities AFS
|
|
$
|
286,816
|
|
|
$
|
11,449
|
|
|
$
|
298,265
|
|
|
100.0
|
%
|
|
$
|
286,069
|
|
|
$
|
22,862
|
|
|
$
|
308,931
|
|
|
100.0
|
%
|
|
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)
|
||||||||||||||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. corporate
|
$
|
34,363
|
|
|
$
|
35,081
|
|
|
$
|
5,850
|
|
|
$
|
3,102
|
|
|
$
|
544
|
|
|
$
|
8
|
|
|
$
|
78,948
|
|
Foreign government
|
54,149
|
|
|
5,140
|
|
|
2,389
|
|
|
604
|
|
|
5
|
|
|
1
|
|
|
62,288
|
|
|||||||
Foreign corporate
|
22,602
|
|
|
30,849
|
|
|
2,534
|
|
|
669
|
|
|
49
|
|
|
—
|
|
|
56,703
|
|
|||||||
U.S. government and agency
|
38,915
|
|
|
407
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39,322
|
|
|||||||
RMBS
|
27,370
|
|
|
350
|
|
|
138
|
|
|
94
|
|
|
3
|
|
|
6
|
|
|
27,961
|
|
|||||||
ABS
|
11,467
|
|
|
772
|
|
|
204
|
|
|
26
|
|
|
3
|
|
|
—
|
|
|
12,472
|
|
|||||||
Municipals
|
11,056
|
|
|
439
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,533
|
|
|||||||
CMBS
|
8,884
|
|
|
103
|
|
|
5
|
|
|
3
|
|
|
43
|
|
|
—
|
|
|
9,038
|
|
|||||||
Total fixed maturity securities AFS
|
$
|
208,806
|
|
|
$
|
73,141
|
|
|
$
|
11,158
|
|
|
$
|
4,498
|
|
|
$
|
647
|
|
|
$
|
15
|
|
|
$
|
298,265
|
|
Percentage of total
|
70.0
|
%
|
|
24.5
|
%
|
|
3.7
|
%
|
|
1.6
|
%
|
|
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
|
|
|||||||
ABS
|
11,311
|
|
|
760
|
|
|
215
|
|
|
1
|
|
|
3
|
|
|
1
|
|
|
12,291
|
|
|||||||
Municipals
|
11,921
|
|
|
454
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
12,455
|
|
|||||||
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
|
%
|
|
December 31,
|
||||||||||||
|
2018
|
|
2017
|
||||||||||
|
Estimated
Fair
Value
|
|
% of
Total
|
|
Estimated
Fair
Value
|
|
% of
Total
|
||||||
|
(Dollars in millions)
|
||||||||||||
Industrial
|
$
|
40,556
|
|
|
29.9
|
%
|
|
$
|
42,273
|
|
|
30.6
|
%
|
Finance
|
30,546
|
|
|
22.5
|
|
|
29,884
|
|
|
21.6
|
|
||
Consumer
|
30,140
|
|
|
22.2
|
|
|
31,419
|
|
|
22.7
|
|
||
Utility
|
22,206
|
|
|
16.4
|
|
|
21,773
|
|
|
15.8
|
|
||
Communications
|
10,406
|
|
|
7.7
|
|
|
11,072
|
|
|
8.0
|
|
||
Other
|
1,797
|
|
|
1.3
|
|
|
1,809
|
|
|
1.3
|
|
||
Total
|
$
|
135,651
|
|
|
100.0
|
%
|
|
$
|
138,230
|
|
|
100.0
|
%
|
|
December 31,
|
||||||||||||||||||||
|
2018
|
|
2017
|
||||||||||||||||||
|
Estimated
Fair
Value
|
|
% of
Total
|
|
Net
Unrealized
Gains (Losses)
|
|
Estimated
Fair
Value
|
|
% of
Total
|
|
Net
Unrealized
Gains (Losses)
|
||||||||||
|
(Dollars in millions)
|
||||||||||||||||||||
By security type:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Collateralized mortgage obligations
|
$
|
15,302
|
|
|
54.7
|
%
|
|
$
|
726
|
|
|
$
|
15,388
|
|
|
53.4
|
%
|
|
$
|
913
|
|
Pass-through securities
|
12,659
|
|
|
45.3
|
|
|
(174
|
)
|
|
13,412
|
|
|
46.6
|
|
|
41
|
|
||||
Total RMBS
|
$
|
27,961
|
|
|
100.0
|
%
|
|
$
|
552
|
|
|
$
|
28,800
|
|
|
100.0
|
%
|
|
$
|
954
|
|
By risk profile:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
$
|
19,834
|
|
|
70.9
|
%
|
|
$
|
5
|
|
|
$
|
20,010
|
|
|
69.5
|
%
|
|
$
|
274
|
|
Prime
|
1,123
|
|
|
4.0
|
|
|
47
|
|
|
1,209
|
|
|
4.2
|
|
|
73
|
|
||||
Alt-A
|
3,361
|
|
|
12.0
|
|
|
277
|
|
|
4,182
|
|
|
14.5
|
|
|
372
|
|
||||
Sub-prime
|
3,643
|
|
|
13.1
|
|
|
223
|
|
|
3,399
|
|
|
11.8
|
|
|
235
|
|
||||
Total RMBS
|
$
|
27,961
|
|
|
100.0
|
%
|
|
$
|
552
|
|
|
$
|
28,800
|
|
|
100.0
|
%
|
|
$
|
954
|
|
Ratings profile:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Rated Aaa/AAA
|
$
|
20,666
|
|
|
73.9
|
%
|
|
|
|
$
|
20,465
|
|
|
71.1
|
%
|
|
|
||||
Designated NAIC 1
|
$
|
27,370
|
|
|
97.9
|
%
|
|
|
|
$
|
28,209
|
|
|
97.9
|
%
|
|
|
|
December 31,
|
||||||||||||||||||||
|
2018
|
|
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 debt obligations
|
$
|
6,724
|
|
|
53.9
|
%
|
|
$
|
(112
|
)
|
|
$
|
5,703
|
|
|
46.4
|
%
|
|
$
|
45
|
|
Student loans
|
1,256
|
|
|
10.1
|
|
|
13
|
|
|
1,266
|
|
|
10.3
|
|
|
(1
|
)
|
||||
Foreign residential loans
|
1,066
|
|
|
8.5
|
|
|
11
|
|
|
965
|
|
|
7.9
|
|
|
20
|
|
||||
Automobile loans
|
895
|
|
|
7.2
|
|
|
1
|
|
|
1,193
|
|
|
9.7
|
|
|
—
|
|
||||
Credit card loans
|
668
|
|
|
5.3
|
|
|
—
|
|
|
1,686
|
|
|
13.7
|
|
|
1
|
|
||||
Consumer loans
|
580
|
|
|
4.7
|
|
|
4
|
|
|
605
|
|
|
4.9
|
|
|
6
|
|
||||
Other loans
|
1,283
|
|
|
10.3
|
|
|
3
|
|
|
873
|
|
|
7.1
|
|
|
7
|
|
||||
Total
|
$
|
12,472
|
|
|
100.0
|
%
|
|
$
|
(80
|
)
|
|
$
|
12,291
|
|
|
100.0
|
%
|
|
$
|
78
|
|
Ratings profile:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Rated Aaa/AAA
|
$
|
7,142
|
|
|
57.3
|
%
|
|
|
|
$
|
7,108
|
|
|
57.8
|
%
|
|
|
||||
Designated NAIC 1
|
$
|
11,467
|
|
|
91.9
|
%
|
|
|
|
$
|
11,311
|
|
|
92.0
|
%
|
|
|
|
December 31, 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
|
$
|
257
|
|
|
$
|
271
|
|
|
$
|
40
|
|
|
$
|
40
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
297
|
|
|
$
|
311
|
|
2012
|
231
|
|
|
237
|
|
|
226
|
|
|
224
|
|
|
229
|
|
|
227
|
|
|
7
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
693
|
|
|
694
|
|
||||||||||||
2013
|
723
|
|
|
746
|
|
|
644
|
|
|
655
|
|
|
279
|
|
|
277
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|
43
|
|
|
1,705
|
|
|
1,721
|
|
||||||||||||
2014
|
381
|
|
|
379
|
|
|
488
|
|
|
485
|
|
|
128
|
|
|
127
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
997
|
|
|
991
|
|
||||||||||||
2015
|
523
|
|
|
514
|
|
|
81
|
|
|
80
|
|
|
34
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
638
|
|
|
628
|
|
||||||||||||
2016
|
345
|
|
|
339
|
|
|
84
|
|
|
80
|
|
|
46
|
|
|
46
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
475
|
|
|
465
|
|
||||||||||||
2017
|
862
|
|
|
851
|
|
|
666
|
|
|
654
|
|
|
234
|
|
|
228
|
|
|
39
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
1,801
|
|
|
1,772
|
|
||||||||||||
2018
|
1,434
|
|
|
1,445
|
|
|
690
|
|
|
695
|
|
|
292
|
|
|
293
|
|
|
23
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
2,439
|
|
|
2,456
|
|
||||||||||||
Total
|
$
|
4,756
|
|
|
$
|
4,782
|
|
|
$
|
2,919
|
|
|
$
|
2,913
|
|
|
$
|
1,242
|
|
|
$
|
1,232
|
|
|
$
|
69
|
|
|
$
|
68
|
|
|
$
|
59
|
|
|
$
|
43
|
|
|
$
|
9,045
|
|
|
$
|
9,038
|
|
Ratings
Distribution
|
|
|
52.9
|
%
|
|
|
|
32.2
|
%
|
|
|
|
13.6
|
%
|
|
|
|
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
|
%
|
|
December 31,
|
||||||||||||||||||||||||||
|
2018
|
|
2017
|
||||||||||||||||||||||||
|
Recorded
Investment |
|
% of
Total |
|
Valuation
Allowance |
|
% of
Recorded Investment |
|
Recorded
Investment |
|
% of
Total |
|
Valuation
Allowance |
|
% of
Recorded Investment |
||||||||||||
|
(Dollars in millions)
|
||||||||||||||||||||||||||
Commercial
|
$
|
48,463
|
|
|
63.9
|
%
|
|
$
|
238
|
|
|
0.5
|
%
|
|
$
|
44,375
|
|
|
64.8
|
%
|
|
$
|
214
|
|
|
0.5
|
%
|
Agricultural
|
14,905
|
|
|
19.7
|
|
|
46
|
|
|
0.3
|
%
|
|
13,014
|
|
|
19.0
|
|
|
41
|
|
|
0.3
|
%
|
||||
Residential
|
12,427
|
|
|
16.4
|
|
|
58
|
|
|
0.5
|
%
|
|
11,136
|
|
|
16.2
|
|
|
59
|
|
|
0.5
|
%
|
||||
Total
|
$
|
75,795
|
|
|
100.0
|
%
|
|
$
|
342
|
|
|
0.5
|
%
|
|
$
|
68,525
|
|
|
100.0
|
%
|
|
$
|
314
|
|
|
0.5
|
%
|
|
December 31,
|
||||||||||||
|
2018
|
|
2017
|
||||||||||
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
||||||
|
(Dollars in millions)
|
||||||||||||
Region
|
|
|
|
|
|
|
|
||||||
Pacific
|
$
|
10,884
|
|
|
22.5
|
%
|
|
$
|
9,875
|
|
|
22.3
|
%
|
International
|
9,281
|
|
|
19.1
|
|
|
9,101
|
|
|
20.5
|
|
||
Middle Atlantic
|
7,911
|
|
|
16.3
|
|
|
7,231
|
|
|
16.3
|
|
||
South Atlantic
|
6,347
|
|
|
13.1
|
|
|
5,311
|
|
|
12.0
|
|
||
West South Central
|
3,951
|
|
|
8.1
|
|
|
3,819
|
|
|
8.6
|
|
||
East North Central
|
2,840
|
|
|
5.9
|
|
|
2,683
|
|
|
6.0
|
|
||
New England
|
1,481
|
|
|
3.1
|
|
|
901
|
|
|
2.0
|
|
||
Mountain
|
1,387
|
|
|
2.9
|
|
|
1,188
|
|
|
2.7
|
|
||
West North Central
|
594
|
|
|
1.2
|
|
|
477
|
|
|
1.1
|
|
||
East South Central
|
564
|
|
|
1.2
|
|
|
840
|
|
|
1.9
|
|
||
Multi-Region and Other
|
3,223
|
|
|
6.6
|
|
|
2,949
|
|
|
6.6
|
|
||
Total recorded investment
|
48,463
|
|
|
100.0
|
%
|
|
44,375
|
|
|
100.0
|
%
|
||
Less: valuation allowances
|
238
|
|
|
|
|
214
|
|
|
|
||||
Carrying value, net of valuation allowances
|
$
|
48,225
|
|
|
|
|
$
|
44,161
|
|
|
|
||
Property Type
|
|
|
|
|
|
|
|
||||||
Office
|
$
|
23,995
|
|
|
49.5
|
%
|
|
$
|
22,602
|
|
|
50.9
|
%
|
Retail
|
9,089
|
|
|
18.7
|
|
|
8,032
|
|
|
18.1
|
|
||
Apartment
|
7,018
|
|
|
14.5
|
|
|
6,113
|
|
|
13.8
|
|
||
Industrial
|
3,719
|
|
|
7.7
|
|
|
3,125
|
|
|
7.0
|
|
||
Hotel
|
3,479
|
|
|
7.2
|
|
|
3,620
|
|
|
8.2
|
|
||
Other
|
1,163
|
|
|
2.4
|
|
|
883
|
|
|
2.0
|
|
||
Total recorded investment
|
48,463
|
|
|
100.0
|
%
|
|
44,375
|
|
|
100.0
|
%
|
||
Less: valuation allowances
|
238
|
|
|
|
|
214
|
|
|
|
||||
Carrying value, net of valuation allowances
|
$
|
48,225
|
|
|
|
|
$
|
44,161
|
|
|
|
|
December 31,
|
||||||||||||
|
2018
|
|
2017
|
||||||||||
|
Carrying
Value
|
|
% of
Total
|
|
Carrying
Value
|
|
% of
Total
|
||||||
|
(Dollars in millions)
|
||||||||||||
Office
|
$
|
3,922
|
|
|
40.4
|
%
|
|
$
|
3,728
|
|
|
38.7
|
%
|
Real estate funds
|
1,921
|
|
|
19.8
|
|
|
1,324
|
|
|
13.7
|
|
||
Retail
|
1,206
|
|
|
12.4
|
|
|
1,114
|
|
|
11.6
|
|
||
Apartment
|
872
|
|
|
9.0
|
|
|
1,521
|
|
|
15.8
|
|
||
Land
|
676
|
|
|
7.0
|
|
|
727
|
|
|
7.5
|
|
||
Hotel
|
555
|
|
|
5.7
|
|
|
475
|
|
|
4.9
|
|
||
Industrial
|
307
|
|
|
3.2
|
|
|
361
|
|
|
3.8
|
|
||
Agriculture
|
27
|
|
|
0.3
|
|
|
29
|
|
|
0.3
|
|
||
Other
|
212
|
|
|
2.2
|
|
|
358
|
|
|
3.7
|
|
||
Total real estate and real estate joint ventures
|
$
|
9,698
|
|
|
100.0
|
%
|
|
$
|
9,637
|
|
|
100.0
|
%
|
|
December 31,
|
|||||||||||||
|
2018
|
|
2017
|
|||||||||||
|
Carrying Value
|
|
% of Total
|
|
Carrying Value
|
|
% of Total
|
|||||||
|
|
|
|
(Dollars in millions)
|
|
|
|
|||||||
Freestanding derivatives with positive estimated fair values
|
$
|
8,969
|
|
|
49.3
|
%
|
|
$
|
8,551
|
|
|
49.5
|
%
|
|
Tax credit and renewable energy partnerships
|
2,457
|
|
|
13.5
|
|
|
3,167
|
|
|
18.3
|
|
|||
Annuities funding structured settlement claims (1)
|
1,279
|
|
|
7.0
|
|
|
1,284
|
|
|
7.4
|
|
|||
Direct financing leases
|
1,192
|
|
|
6.5
|
|
|
1,323
|
|
|
7.7
|
|
|||
Leveraged leases
|
1,108
|
|
|
6.1
|
|
|
1,278
|
|
|
7.4
|
|
|||
Operating joint ventures
|
796
|
|
|
4.4
|
|
|
539
|
|
|
3.1
|
|
|||
FHLB common stock (2)
|
793
|
|
|
4.4
|
|
|
—
|
|
|
—
|
|
|||
Funds withheld
|
416
|
|
|
2.3
|
|
|
298
|
|
|
1.7
|
|
|||
Other
|
1,180
|
|
|
6.5
|
|
|
823
|
|
|
4.9
|
|
|||
Total
|
$
|
18,190
|
|
|
100
|
%
|
|
$
|
17,263
|
|
|
100
|
%
|
|
Percentage of cash and invested assets
|
4.0
|
%
|
|
|
|
3.8
|
%
|
|
|
•
|
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
December 31, 2018
and
2017
.
|
•
|
The statement of operations effects of derivatives in net investments in foreign operations, cash flow, fair value, or nonqualifying hedge relationships for the
years ended December 31, 2018
,
2017
and
2016
.
|
|
|
Year Ended December 31, 2018
|
Gain (loss) recognized in net income (loss)
|
|
($161) million
|
Approximate percentage of gain (loss) attributable to observable inputs
|
|
31%
|
Primary drivers of observable gain (loss)
|
|
Increases in interest rates on interest rate total return swaps
|
Approximate percentage of gain (loss) attributable to unobservable inputs
|
|
69%
|
|
|
December 31,
|
||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||
Credit Default Swaps
|
|
Gross
Notional
Amount
|
|
Estimated
Fair Value
|
|
Gross
Notional
Amount
|
|
Estimated
Fair Value
|
||||||||
|
|
(In millions)
|
||||||||||||||
Purchased
|
|
$
|
1,903
|
|
|
$
|
(14
|
)
|
|
$
|
2,020
|
|
|
$
|
(36
|
)
|
Written
|
|
11,391
|
|
|
82
|
|
|
11,375
|
|
|
271
|
|
||||
Total
|
|
$
|
13,294
|
|
|
$
|
68
|
|
|
$
|
13,395
|
|
|
$
|
235
|
|
|
|
Years Ended December 31,
|
||||||||||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||||||||||
Credit Default Swaps
|
|
Gross
Gains
|
|
Gross
Losses
|
|
Net
Gains
(Losses)
|
|
Gross
Gains
|
|
Gross
Losses
|
|
Net
Gains
(Losses)
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Purchased (1)
|
|
$
|
17
|
|
|
$
|
(11
|
)
|
|
$
|
6
|
|
|
$
|
5
|
|
|
$
|
(29
|
)
|
|
$
|
(24
|
)
|
Written (1)
|
|
24
|
|
|
(156
|
)
|
|
(132
|
)
|
|
152
|
|
|
(7
|
)
|
|
145
|
|
||||||
Total
|
|
$
|
41
|
|
|
$
|
(167
|
)
|
|
$
|
(126
|
)
|
|
$
|
157
|
|
|
$
|
(36
|
)
|
|
$
|
121
|
|
(1)
|
Gains (losses) do not include earned income (expense) on credit default swaps.
|
|
December 31, 2018
|
||||||
Guaranteed Minimum Crediting Rate
|
Account
Value
|
|
Account
Value at
Guarantee
|
||||
|
(In millions)
|
||||||
Greater than 0% but less than 2%
|
$
|
4,776
|
|
|
$
|
4,655
|
|
Equal to or greater than 2% but less than 4%
|
$
|
1,766
|
|
|
$
|
1,766
|
|
Equal to or greater than 4%
|
$
|
742
|
|
|
$
|
713
|
|
|
December 31, 2018
|
||||||
Guaranteed Minimum Crediting Rate
|
Account
Value
|
|
Account
Value at
Guarantee
|
||||
|
(In millions)
|
||||||
Greater than 0% but less than 2%
|
$
|
143
|
|
|
$
|
—
|
|
Equal to or greater than 2% but less than 4%
|
$
|
1,096
|
|
|
$
|
121
|
|
Equal to or greater than 4%
|
$
|
4,624
|
|
|
$
|
4,621
|
|
|
December 31, 2018
|
||||||
Guaranteed Minimum Crediting Rate
|
Account
Value
|
|
Account
Value at
Guarantee
|
||||
|
(In millions)
|
||||||
Annuities
|
|
|
|
||||
Greater than 0% but less than 2%
|
$
|
25,586
|
|
|
$
|
1,926
|
|
Equal to or greater than 2% but less than 4%
|
$
|
1,205
|
|
|
$
|
395
|
|
Equal to or greater than 4%
|
$
|
1
|
|
|
$
|
1
|
|
Life & Other
|
|
|
|
||||
Greater than 0% but less than 2%
|
$
|
10,268
|
|
|
$
|
9,961
|
|
Equal to or greater than 2% but less than 4%
|
$
|
24,573
|
|
|
$
|
9,174
|
|
Equal to or greater than 4%
|
$
|
279
|
|
|
$
|
279
|
|
|
December 31, 2018
|
||||||
Guaranteed Minimum Crediting Rate
|
Account
Value
|
|
Account
Value at
Guarantee
|
||||
|
(In millions)
|
||||||
Greater than 0% but less than 2%
|
$
|
1,510
|
|
|
$
|
1,430
|
|
Equal to or greater than 2% but less than 4%
|
$
|
18,733
|
|
|
$
|
16,064
|
|
Equal to or greater than 4%
|
$
|
8,098
|
|
|
$
|
5,539
|
|
|
|||||||||||||||
|
Future Policy
Benefits
|
|
Policyholder
Account Balances
|
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions)
|
||||||||||||||
Asia
|
|
|
|
|
|
|
|
||||||||
GMDB
|
$
|
3
|
|
|
$
|
38
|
|
|
$
|
—
|
|
|
$
|
—
|
|
GMAB
|
—
|
|
|
—
|
|
|
34
|
|
|
19
|
|
||||
GMWB
|
81
|
|
|
92
|
|
|
143
|
|
|
182
|
|
||||
EMEA
|
|
|
|
|
|
|
|
||||||||
GMDB
|
7
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
GMAB
|
—
|
|
|
—
|
|
|
24
|
|
|
15
|
|
||||
GMWB
|
70
|
|
|
42
|
|
|
(82
|
)
|
|
(90
|
)
|
||||
MetLife Holdings
|
|
|
|
|
|
|
|
||||||||
GMDB
|
289
|
|
|
304
|
|
|
—
|
|
|
—
|
|
||||
GMIB
|
743
|
|
|
581
|
|
|
106
|
|
|
(125
|
)
|
||||
GMAB
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
||||
GMWB
|
129
|
|
|
183
|
|
|
563
|
|
|
322
|
|
||||
Total
|
$
|
1,322
|
|
|
$
|
1,241
|
|
|
$
|
793
|
|
|
$
|
323
|
|
|
Total Account Value (1)
|
||||||
|
Asia & EMEA
|
|
MetLife Holdings
|
||||
|
(In millions)
|
||||||
Return of premium or five to seven year step-up
|
$
|
6,180
|
|
|
$
|
46,207
|
|
Annual step-up
|
—
|
|
|
3,074
|
|
||
Roll-up and step-up combination
|
—
|
|
|
5,500
|
|
||
Total
|
$
|
6,180
|
|
|
$
|
54,781
|
|
(1)
|
Total account value excludes $230 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
|
$
|
—
|
|
|
$
|
20,692
|
|
GMWB - non-life contingent (2)
|
1,954
|
|
|
2,608
|
|
||
GMWB - life-contingent
|
2,961
|
|
|
9,373
|
|
||
GMAB
|
988
|
|
|
368
|
|
||
Total
|
$
|
5,903
|
|
|
$
|
33,041
|
|
(1)
|
Total account value excludes $22.0 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 $936 million with a guarantee at annuitization.
|
|
Total
Account Value
|
||
|
(In millions)
|
||
7-year setback, 2.5% interest rate
|
$
|
5,508
|
|
7-year setback, 1.5% interest rate
|
899
|
|
|
10-year setback, 1.5% interest rate
|
4,384
|
|
|
10-year mortality projection, 10-year setback, 1.0% interest rate
|
8,389
|
|
|
10-year mortality projection, 10-year setback, 0.5% interest rate
|
1,512
|
|
|
|
$
|
20,692
|
|
|
In-the-Moneyness
|
|
Total
Account Value
|
|
% of Total
|
|||
|
|
|
(In millions)
|
|
|
|||
In-the-money
|
30% +
|
|
$
|
382
|
|
|
2
|
%
|
|
20% to 30%
|
|
302
|
|
|
2
|
%
|
|
|
10% to 20%
|
|
546
|
|
|
3
|
%
|
|
|
0% to 10%
|
|
1,184
|
|
|
6
|
%
|
|
|
|
|
2,414
|
|
|
|
||
Out-of-the-money
|
-10% to 0%
|
|
2,321
|
|
|
11
|
%
|
|
|
-20% to 10%
|
|
3,077
|
|
|
15
|
%
|
|
|
-20% +
|
|
12,880
|
|
|
62
|
%
|
|
|
|
|
18,278
|
|
|
|
||
Total GMIBs
|
|
|
$
|
20,692
|
|
|
|
|
|
|
|
December 31,
|
||||||||||||||||||||||
|
|
|
|
2018
|
|
2017
|
||||||||||||||||||||
Primary Underlying Risk Exposure
|
|
|
|
Gross Notional
|
|
Estimated Fair Value
|
|
Gross Notional
|
|
Estimated Fair Value
|
||||||||||||||||
|
Instrument Type
|
|
Amount
|
|
Assets
|
|
Liabilities
|
|
Amount
|
|
Assets
|
|
Liabilities
|
|||||||||||||
|
|
|
|
(In millions)
|
||||||||||||||||||||||
Interest rate
|
|
Interest rate swaps
|
|
$
|
8,209
|
|
|
$
|
89
|
|
|
$
|
3
|
|
|
$
|
16,080
|
|
|
$
|
433
|
|
|
$
|
22
|
|
|
|
Interest rate futures
|
|
1,559
|
|
|
1
|
|
|
3
|
|
|
3,060
|
|
|
1
|
|
|
4
|
|
||||||
|
|
Interest rate options
|
|
838
|
|
|
163
|
|
|
—
|
|
|
10,173
|
|
|
486
|
|
|
11
|
|
||||||
Foreign currency exchange rate
|
|
Foreign currency forwards
|
|
1,815
|
|
|
44
|
|
|
9
|
|
|
2,288
|
|
|
5
|
|
|
36
|
|
||||||
Equity market
|
|
Equity futures
|
|
2,730
|
|
|
11
|
|
|
77
|
|
|
3,781
|
|
|
17
|
|
|
4
|
|
||||||
|
|
Equity index options
|
|
9,933
|
|
|
408
|
|
|
546
|
|
|
9,546
|
|
|
383
|
|
|
690
|
|
||||||
|
|
Equity variance swaps
|
|
2,269
|
|
|
40
|
|
|
87
|
|
|
4,661
|
|
|
54
|
|
|
199
|
|
||||||
|
|
Equity total return swaps
|
|
929
|
|
|
91
|
|
|
—
|
|
|
1,117
|
|
|
—
|
|
|
41
|
|
||||||
|
|
Total
|
|
$
|
28,282
|
|
|
$
|
847
|
|
|
$
|
725
|
|
|
$
|
50,706
|
|
|
$
|
1,379
|
|
|
$
|
1,007
|
|
•
|
impact our ability to generate cash flows from the sale of funding agreements and other capital market products offered by our RIS business;
|
•
|
impact the cost and availability of financing for MetLife, Inc. and its subsidiaries; and
|
•
|
result in additional collateral requirements or other required payments under certain agreements, which are eligible to be satisfied in cash or by posting investments held by the subsidiaries subject to the agreements. See “— Liquidity and Capital Uses — Pledged Collateral.”
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Sources:
|
|
|
|
|
|
||||||
Operating activities, net
|
$
|
11,738
|
|
|
$
|
12,283
|
|
|
$
|
14,774
|
|
Net change in policyholder account balances
|
4,266
|
|
|
6,131
|
|
|
4,925
|
|
|||
Net change in payables for collateral under securities loaned and other transactions
|
—
|
|
|
903
|
|
|
—
|
|
|||
Cash received for other transactions with tenors greater than three months
|
200
|
|
|
—
|
|
|
—
|
|
|||
Long-term debt issued
|
24
|
|
|
3,657
|
|
|
—
|
|
|||
Financing element on certain derivative instruments and other derivative related transactions, net
|
144
|
|
|
—
|
|
|
—
|
|
|||
Preferred stock issued, net of issuance costs
|
1,274
|
|
|
—
|
|
|
—
|
|
|||
Other, net
|
—
|
|
|
118
|
|
|
139
|
|
|||
Effect of change in foreign currency exchange rates on cash and cash equivalents
|
—
|
|
|
323
|
|
|
—
|
|
|||
Total sources
|
17,646
|
|
|
23,415
|
|
|
19,838
|
|
|||
Uses:
|
|
|
|
|
|
||||||
Investing activities, net
|
5,634
|
|
|
16,876
|
|
|
5,850
|
|
|||
Net change in payables for collateral under securities loaned and other transactions
|
821
|
|
|
—
|
|
|
3,636
|
|
|||
Long-term debt repaid
|
1,871
|
|
|
1,073
|
|
|
1,279
|
|
|||
Collateral financing arrangements repaid
|
61
|
|
|
2,951
|
|
|
68
|
|
|||
Distribution of Brighthouse
|
—
|
|
|
2,793
|
|
|
—
|
|
|||
Financing element on certain derivative instruments and other derivative related transactions, net
|
—
|
|
|
151
|
|
|
1,367
|
|
|||
Treasury stock acquired in connection with share repurchases
|
3,992
|
|
|
2,927
|
|
|
372
|
|
|||
Dividends on preferred stock
|
141
|
|
|
103
|
|
|
103
|
|
|||
Dividends on common stock
|
1,678
|
|
|
1,717
|
|
|
1,736
|
|
|||
Other, net
|
145
|
|
|
—
|
|
|
—
|
|
|||
Effect of change in foreign currency exchange rates on cash and cash equivalents
|
183
|
|
|
—
|
|
|
302
|
|
|||
Total uses
|
14,526
|
|
|
28,591
|
|
|
14,713
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
$
|
3,120
|
|
|
$
|
(5,176
|
)
|
|
$
|
5,125
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In millions)
|
||||||
Short-term debt (1)
|
$
|
268
|
|
|
$
|
477
|
|
Long-term debt (2)
|
$
|
12,824
|
|
|
$
|
15,680
|
|
Collateral financing arrangement
|
$
|
1,060
|
|
|
$
|
1,121
|
|
Junior subordinated debt securities (3)
|
$
|
3,147
|
|
|
$
|
3,144
|
|
(1)
|
Includes $168 million and $377 million of debt that is non-recourse to MetLife, Inc. and MLIC, subject to customary exceptions, at
December 31, 2018
and
2017
, respectively. Certain subsidiaries have pledged assets to secure this debt.
|
(2)
|
Includes $422 million and $523 million of debt that is non-recourse to MetLife, Inc. and MLIC, subject to customary exceptions, at
December 31, 2018
and
2017
, respectively. Certain investment subsidiaries have pledged assets to secure this debt.
|
(3)
|
For information regarding the junior subordinated debt securities, see
Note 14
of the Notes to the Consolidated Financial Statements and Note 5 of the Notes to the MetLife, Inc. (Parent Company Only) Condensed Financial Information in Schedule II.
|
•
|
the RBC ratio of MetLife’s largest U.S. insurance subsidiaries in the aggregate (as defined in the applicable instrument) were to be less than 175% of the company action level based on the subsidiaries’ prior year annual financial statements filed (generally around March 1) with state insurance commissioners; or
|
•
|
at the end of a quarter (“Final Quarter End Test Date”), consolidated GAAP net income for the four-quarter period ending two quarters before such quarter-end (the “Preliminary Quarter End Test Date”) is zero or a negative amount and the consolidated GAAP stockholders’ equity, minus AOCI (the “adjusted stockholders’ equity amount”), as of the Final Quarter End Test Date and the Preliminary Quarter End Test Date, declined by 10% or more from (A) its level 10 quarters before the Final Quarter End Test Date (the “Benchmark Quarter End Test Date”), for Benchmark Quarter End Test Dates after August 4, 2017 (the date of the Separation), or (B) $49,282,000,000, the consolidated GAAP stockholders’ equity, minus AOCI as of June 30, 2017 as reported on a pro forma basis reflecting the Separation in MetLife’s Form 8-K filed with the SEC on August 9, 2017, for Benchmark Quarter End Test Dates prior to August 4, 2017.
|
•
|
During 2018, 2017 and 2016, following regulatory approval, MetLife Reinsurance Company of Charleston (“MRC”), a wholly-owned subsidiary of MetLife, Inc., repurchased and canceled $61 million, $153 million and $68 million, respectively, in aggregate principal amount of its surplus notes, which were 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;
|
•
|
In December 2017, MetLife, Inc. repaid at maturity its $500 million 1.756% senior notes;
|
•
|
In December 2017, MetLife, Inc. repaid at maturity its $500 million 1.903% senior notes; and
|
•
|
In June 2016, MetLife, Inc. repaid at maturity its $1.3 billion 6.750% senior notes.
|
|
Total
|
|
One Year
or Less
|
|
More than
One Year to
Three Years
|
|
More than
Three Years
to Five Years
|
|
More than Five Years
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Insurance liabilities
|
$
|
318,082
|
|
|
$
|
22,246
|
|
|
$
|
17,927
|
|
|
$
|
17,298
|
|
|
$
|
260,611
|
|
Policyholder account balances
|
234,958
|
|
|
32,036
|
|
|
22,784
|
|
|
16,733
|
|
|
163,405
|
|
|||||
Payables for collateral under securities loaned and other transactions
|
24,794
|
|
|
24,794
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Debt
|
31,950
|
|
|
1,247
|
|
|
2,772
|
|
|
3,602
|
|
|
24,329
|
|
|||||
Investment commitments
|
11,734
|
|
|
11,344
|
|
|
330
|
|
|
60
|
|
|
—
|
|
|||||
Operating leases
|
2,126
|
|
|
292
|
|
|
542
|
|
|
433
|
|
|
859
|
|
|||||
Other
|
19,059
|
|
|
18,707
|
|
|
—
|
|
|
—
|
|
|
352
|
|
|||||
Total
|
$
|
642,703
|
|
|
$
|
110,666
|
|
|
$
|
44,355
|
|
|
$
|
38,126
|
|
|
$
|
449,556
|
|
|
|
Year Ended December 31, 2018
|
|
Year Ended December 31, 2017
|
|
Year Ended December 31, 2016
|
||||||||||||||||||
|
|
Sources and Uses of Liquid Assets
|
|
Sources and Uses of Liquid Assets Included in Free Cash Flow
|
|
Sources and Uses of Liquid Assets
|
|
Sources and Uses of Liquid Assets Included in Free Cash Flow
|
|
Sources and Uses of Liquid Assets
|
|
Sources and Uses of Liquid Assets Included in Free Cash Flow
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
MetLife, Inc. (Parent Company Only)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sources:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dividends and returns of capital from subsidiaries (1)
|
|
$
|
7,454
|
|
|
$
|
7,454
|
|
|
$
|
7,404
|
|
|
$
|
7,404
|
|
|
$
|
4,550
|
|
|
$
|
4,550
|
|
Long-term debt issued (2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Repayments on and (issuances of) loans to subsidiaries and related interest, net (3)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Preferred stock issued
|
|
1,274
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other, net (4)
|
|
—
|
|
|
—
|
|
|
107
|
|
|
4
|
|
|
120
|
|
|
(210
|
)
|
||||||
Total sources
|
|
8,728
|
|
|
7,454
|
|
|
7,511
|
|
|
7,408
|
|
|
4,670
|
|
|
4,340
|
|
||||||
Uses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital contributions to subsidiaries (5)
|
|
767
|
|
|
767
|
|
|
339
|
|
|
124
|
|
|
1,733
|
|
|
1,733
|
|
||||||
Long-term debt repaid — unaffiliated
|
|
1,759
|
|
|
—
|
|
|
1,000
|
|
|
—
|
|
|
1,250
|
|
|
—
|
|
||||||
Interest paid on debt and financing arrangements — unaffiliated
|
|
964
|
|
|
964
|
|
|
980
|
|
|
980
|
|
|
983
|
|
|
983
|
|
||||||
Dividends on common stock
|
|
1,678
|
|
|
—
|
|
|
1,717
|
|
|
—
|
|
|
1,736
|
|
|
—
|
|
||||||
Treasury stock acquired in connection with share repurchases
|
|
3,992
|
|
|
—
|
|
|
2,927
|
|
|
—
|
|
|
372
|
|
|
—
|
|
||||||
Dividends on preferred stock
|
|
141
|
|
|
141
|
|
|
103
|
|
|
103
|
|
|
103
|
|
|
103
|
|
||||||
Issuances of and (repayments on) loans to subsidiaries and related interest, net (3)
|
|
63
|
|
|
63
|
|
|
33
|
|
|
33
|
|
|
99
|
|
|
99
|
|
||||||
Other, net (4)
|
|
1,029
|
|
|
1,083
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total uses
|
|
10,393
|
|
|
3,018
|
|
|
7,099
|
|
|
1,240
|
|
|
6,276
|
|
|
2,918
|
|
||||||
Net increase (decrease) in liquid assets, MetLife, Inc. (Parent Company Only)
|
|
(1,665
|
)
|
|
|
|
412
|
|
|
|
|
(1,606
|
)
|
|
|
|||||||||
Liquid assets, beginning of year
|
|
4,095
|
|
|
|
|
3,683
|
|
|
|
|
5,289
|
|
|
|
|||||||||
Liquid assets, end of year
|
|
$
|
2,430
|
|
|
|
|
$
|
4,095
|
|
|
|
|
$
|
3,683
|
|
|
|
||||||
Free Cash Flow, MetLife, Inc. (Parent Company Only)
|
|
|
|
4,436
|
|
|
|
|
6,168
|
|
|
|
|
1,422
|
|
|||||||||
Net cash provided by operating activities, MetLife, Inc. (Parent Company Only)
|
|
$
|
5,494
|
|
|
|
|
$
|
6,462
|
|
|
|
|
$
|
3,747
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other MetLife Holding Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sources:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dividends and returns of capital from subsidiaries
|
|
$
|
2,836
|
|
|
$
|
2,836
|
|
|
$
|
2,125
|
|
|
$
|
2,125
|
|
|
$
|
1,485
|
|
|
$
|
1,485
|
|
Capital contributions from MetLife, Inc.
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total sources
|
|
2,836
|
|
|
2,836
|
|
|
2,125
|
|
|
2,125
|
|
|
1,485
|
|
|
1,485
|
|
||||||
Uses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital contributions to subsidiaries
|
|
57
|
|
|
57
|
|
|
12
|
|
|
12
|
|
|
53
|
|
|
53
|
|
||||||
Repayments on and (issuance of) loans to subsidiaries and affiliates and related interest, net
|
|
6
|
|
|
6
|
|
|
6
|
|
|
6
|
|
|
307
|
|
|
307
|
|
||||||
Dividends and returns of capital to MetLife, Inc.
|
|
3,200
|
|
|
3,200
|
|
|
2,200
|
|
|
2,200
|
|
|
—
|
|
|
—
|
|
||||||
Other, net
|
|
603
|
|
|
603
|
|
|
408
|
|
|
408
|
|
|
123
|
|
|
123
|
|
||||||
Total uses
|
|
3,866
|
|
|
3,866
|
|
|
2,626
|
|
|
2,626
|
|
|
483
|
|
|
483
|
|
||||||
Net increase (decrease) in liquid assets, Other MetLife Holding Companies
|
|
(1,030
|
)
|
|
|
|
|
(501
|
)
|
|
|
|
1,002
|
|
|
|
||||||||
Liquid assets, beginning of year
|
|
1,643
|
|
|
|
|
|
2,144
|
|
|
|
|
1,142
|
|
|
|
||||||||
Liquid assets, end of year
|
|
$
|
613
|
|
|
|
|
$
|
1,643
|
|
|
|
|
$
|
2,144
|
|
|
|
||||||
Free Cash Flow, Other MetLife Holding Companies
|
|
|
|
(1,030
|
)
|
|
|
|
(501
|
)
|
|
|
|
1,002
|
|
|||||||||
Net increase (decrease) in liquid assets, All Holding Companies
|
|
$
|
(2,695
|
)
|
|
|
|
$
|
(89
|
)
|
|
|
|
$
|
(604
|
)
|
|
|
||||||
Free Cash Flow, All Holding Companies (6) (7)
|
|
|
|
$
|
3,406
|
|
|
|
|
$
|
5,667
|
|
|
|
|
$
|
2,424
|
|
(1)
|
Dividends and returns of capital to MetLife, Inc. included $4.3 billion, $5.2 billion and $4.6 billion from operating subsidiaries and $3.2 billion, $2.2 billion and $0 from other MetLife holding companies during the years ended December 31,
2018
,
2017
and
2016
, respectively. Included in dividends and returns of capital to MetLife, Inc. are the following which increased MetLife, Inc. liquid assets and free cash flow: dividends from Brighthouse subsidiaries of $0,
$1.8 billion
and $556 million, and returns of capital from Brighthouse subsidiaries of $0,
$590 million
and $0, during the years ended December 31,
2018
,
2017
and
2016
, respectively. Also, dividends and returns of capital to MetLife, Inc. includes $49 million from the June 2017 issuance by Brighthouse Holdings, LLC of 50,000 units of 6.50% fixed rate cumulative preferred units to MetLife, Inc. which MetLife, Inc. sold to third-party investors.
|
(2)
|
Included in free cash flow is the portion of long-term debt issued that represents incremental debt to be at or below target leverage ratios.
|
(3)
|
See MetLife, Inc. (Parent Company Only) Condensed Statements of Cash Flows included in Schedule II of the Financial Statement Schedules for the source of liquid assets from receipts on loans to subsidiaries (excluding interest) and for the use of liquid assets for the issuances of loans to subsidiaries (excluding interest).
|
(4)
|
Other, net includes ($877) million, $860 million and $433 million of net receipts (payments) by MetLife, Inc. to and from subsidiaries under a tax sharing agreement and tax payments to tax agencies during the years ended December 31,
2018
,
2017
and
2016
, respectively.
|
(5)
|
Amounts to fund business acquisitions were $0, $215 million and $0 (included in capital contributions to subsidiaries) during the years ended December 31,
2018
,
2017
and
2016
, respectively.
|
(6)
|
In 2018, $268 million of Separation-related items (comprised of certain Separation-related inflows primarily related to reinsurance benefit from Brighthouse) were included in free cash flow, which increased our holding companies’ liquid assets, as well as our free cash flow ratio. Excluding these Separation-related items, adjusted free cash flow would be $3.1 billion for the year ended December 31, 2018. In 2017, $2.1 billion of Separation-related items (comprised of certain Separation-related inflows primarily related to dividends from Brighthouse, net of outflows) were included in the free cash flow, which increased our holding companies’ liquid assets, as well as our free cash flow ratio. Excluding these Separation-related items, adjusted free cash flow would be $3.6 billion for the year ended December 31, 2017. In 2016, we incurred $2.3 billion of Separation-related items (comprised of certain Separation-related outflows, net of inflows related to dividends from Brighthouse subsidiaries) which reduced our holding companies’ liquid assets, as well as our free cash flow and free cash flow ratio. Excluding these Separation-related items, adjusted free cash flow would be $4.7 billion for the year ended December 31, 2016.
|
(7)
|
See
“— Non-GAAP and Other Financial Disclosures” for the reconciliation of net cash provided by operating activities of MetLife, Inc. to free cash flow of all holding companies.
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
||||||||||||||||||||||||
Company
|
|
Permitted Without Approval (1)
|
|
|
Paid (2)
|
|
|
Permitted Without Approval (3)
|
|
|
Paid (2)
|
|
|
Permitted Without Approval (3)
|
|
|
Paid (2)
|
|
|
Permitted Without Approval (3)
|
|
|||||||||||||||
|
|
(In millions)
|
|
|||||||||||||||||||||||||||||||||
Metropolitan Life Insurance Company
|
|
$
|
3,096
|
|
|
|
$
|
3,736
|
|
(3)
|
|
$
|
3,075
|
|
|
|
$
|
2,523
|
|
|
|
$
|
2,723
|
|
|
|
$
|
5,740
|
|
(4)
|
|
$
|
3,753
|
|
|
|
American Life Insurance Company
|
|
$
|
—
|
|
|
|
$
|
3,200
|
|
|
|
$
|
—
|
|
|
|
$
|
2,200
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
Brighthouse Life Insurance Company
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
$
|
—
|
|
|
|
$
|
473
|
|
(5
|
)
|
|
$
|
261
|
|
|
|
$
|
586
|
|
|
|||
Metropolitan Property and Casualty Insurance Company
|
|
$
|
171
|
|
|
|
$
|
233
|
|
|
|
$
|
125
|
|
|
|
$
|
185
|
|
|
|
$
|
98
|
|
|
|
$
|
228
|
|
|
|
$
|
130
|
|
|
|
Metropolitan Tower Life Insurance Company (6)
|
|
$
|
154
|
|
|
|
$
|
191
|
|
(6)
|
|
$
|
73
|
|
|
|
$
|
—
|
|
|
|
$
|
66
|
|
|
|
$
|
60
|
|
|
|
$
|
70
|
|
|
|
New England Life Insurance Company
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
$
|
—
|
|
|
|
$
|
106
|
|
(5
|
)
|
|
$
|
295
|
|
|
|
$
|
156
|
|
|
|||
General American Life Insurance Company (6)
|
|
N/A
|
|
|
|
$
|
—
|
|
|
|
$
|
118
|
|
|
|
$
|
1
|
|
|
|
$
|
91
|
|
|
|
$
|
—
|
|
|
|
$
|
136
|
|
|
(1)
|
Reflects dividend amounts that may be paid during the relevant year without prior regulatory approval (“ordinary dividends”). However, because dividend tests may be based on dividends previously paid over rolling 12-month periods, if paid before a specified date during such year, some or all of such dividends may require regulatory approval.
|
(2)
|
Reflects all amounts paid, including those where regulatory approval was obtained as required (“extraordinary dividends”).
|
(3)
|
Represents ordinary dividends of
$3.0 billion
and an extraordinary dividend of
$705 million
. 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)
|
In 2016, MLIC paid an ordinary cash dividend to MetLife, Inc. in the amount of $3.6 billion. In addition, in December 2016, MLIC distributed all of the issued and outstanding shares of common stock of each of New England Life Insurance Company (“NELICO”) and GALIC to MetLife, Inc. in the form of a non-cash extraordinary dividend in the amount of $981 million and $1.2 billion, respectively, as calculated on a statutory basis.
|
(5)
|
In April 2017, in connection with the Separation, MetLife, Inc. contributed all of the issued and outstanding shares of common stock of each of Brighthouse Insurance and NELICO to Brighthouse Holdings, LLC. As a result of the Separation, Brighthouse Insurance and NELICO ceased to be subsidiaries of MetLife, Inc. See Note
3
of the Notes to the Consolidated Financial Statements for information regarding the Separation.
|
(6)
|
In April 2018, MTL merged with GALIC (“MTL Merger”). The surviving entity of the merger was MTL, which re-domesticated from Delaware to Nebraska immediately prior to the merger. The total dividends paid of $191 million is equal to the sum of the individual 2018 ordinary dividends that MTL and GALIC would each have been permitted to pay computed on a stand-alone basis if the MTL Merger had not occurred.
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In millions)
|
||||||
Long-term debt — unaffiliated
|
$
|
11,844
|
|
|
$
|
14,599
|
|
Long-term debt — affiliated (1)
|
$
|
1,957
|
|
|
$
|
2,000
|
|
Junior subordinated debt securities
|
$
|
2,456
|
|
|
$
|
2,454
|
|
(1)
|
See “— Affiliated Long-term Debt.”
|
Year of Maturity
|
|
Principal
|
|
|
Interest Rate
|
||
|
|
(In millions)
|
|
|
|
||
2019
|
|
$
|
486
|
|
(1)
|
|
1.45%
|
2019
|
|
$
|
242
|
|
(1)
|
|
1.72%
|
2020
|
|
$
|
509
|
|
|
|
5.25%
|
2020
|
|
$
|
242
|
|
(1)
|
|
0.82%
|
2021
|
|
$
|
368
|
|
|
|
4.75%
|
2021
|
|
$
|
490
|
|
(1)
|
|
2.97%
|
2021
|
|
$
|
497
|
|
(1)
|
|
3.14%
|
2022
|
|
$
|
500
|
|
|
|
3.05%
|
2023
|
|
$
|
1,000
|
|
|
|
4.37%
|
2024 - 2046
|
|
$
|
9,546
|
|
|
|
Ranging from 3.00% - 6.50%
|
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
|
(v)
|
free cash flow of all holding companies
|
(v)
|
MetLife, Inc. (parent company only) net cash provided by operating activities
|
•
|
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 (“Investment hedge adjustments”), (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 equity securities (“Unit-linked contract income”), (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) under 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 certain amounts related to net investment income earned on contractholder-directed equity securities;
|
•
|
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.
|
•
|
MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA, is defined as MetLife, Inc.’s common stockholders’ equity, excluding the net unrealized investment gains (losses) and defined benefit plans adjustment components of AOCI, net of income tax.
|
•
|
Adjusted return on MetLife, Inc.’s common stockholders’ equity is defined as adjusted earnings available to common shareholders divided by MetLife, Inc.’s average common stockholders’ equity.
|
•
|
Adjusted return on MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA is defined as adjusted earnings available to common shareholders divided by MetLife, Inc.’s average common stockholders’ equity, excluding AOCI other than FCTA.
|
•
|
Allocated equity is the portion of MetLife, Inc.’s common stockholders’ equity that management allocates to each of its segments and sub-segments based on local capital requirements and economic capital. See “— Economic Capital.” Allocated equity excludes the impact of AOCI other than FCTA.
|
•
|
Expense ratio: other expenses, net of capitalization of DAC, divided by premiums, fees and other revenues.
|
•
|
Direct expense ratio: direct expenses, on an adjusted basis, divided by adjusted premiums, fees and other revenues. Direct expenses are comprised of employee-related costs, third party staffing costs, and general and administrative expenses.
|
•
|
Direct expense ratio, excluding total notable items related to direct expenses and pension risk transfers: direct expenses, on an adjusted basis, excluding total notable items related to direct expenses, divided by adjusted premiums, fees and other revenues, excluding pension risk transfers.
|
•
|
The impact of changes in our foreign currency exchange rates is calculated using the average foreign currency exchange rates for the most recent year being compared and applied to the comparable prior year (“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.
|
•
|
Near-term represents one to three years.
|
•
|
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.
|
•
|
Notable items represent a positive (negative) impact to adjusted earnings available to common shareholders. Notable items reflect the unexpected impact of events that affect MetLife’s results, but that were unknown and that MetLife could not anticipate when it devised its Business Plan. Notable items also include certain items regardless of the extent anticipated in the Business Plan, to help investors have a better understanding of MetLife’s results and to evaluate and forecast those 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. A reconciliation of net cash provided by operating activities of MetLife, Inc. (parent company only) to free cash flow of all holding companies for the years ended December 31, 2018, 2017 and 2016 is provided below.
|
Reconciliation of Net Cash Provided by Operating Activities of MetLife, Inc. to Free Cash Flow of All Holding Companies
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
MetLife, Inc. (parent company only) net cash provided by operating activities
|
$
|
5,494
|
|
|
$
|
6,462
|
|
|
$
|
3,747
|
|
Adjustments from net cash provided by operating activities to free cash flow:
|
|
|
|
|
|
|
|
||||
Add: Incremental debt to be at or below target leverage ratios
|
—
|
|
|
—
|
|
|
—
|
|
|||
Add: Capital contributions to subsidiaries
|
(767
|
)
|
|
(124
|
)
|
|
(1,733
|
)
|
|||
Add: Returns of capital from subsidiaries
|
87
|
|
|
610
|
|
|
80
|
|
|||
Add: Investment portfolio and derivatives changes and other, net
|
(378
|
)
|
|
(780
|
)
|
|
(672
|
)
|
|||
MetLife, Inc. (parent company only) free cash flow
|
4,436
|
|
|
6,168
|
|
|
1,422
|
|
|||
Other MetLife, Inc. holding companies:
|
|
|
|
|
|
||||||
Add: Dividends and returns of capital from subsidiaries
|
2,836
|
|
|
2,125
|
|
|
1,485
|
|
|||
Add: Capital contributions to subsidiaries
|
(57
|
)
|
|
(12
|
)
|
|
(53
|
)
|
|||
Add: Repayments on and (issuances of) loans to subsidiaries, net
|
(6
|
)
|
|
(6
|
)
|
|
(307
|
)
|
|||
Add: Other expenses
|
(771
|
)
|
|
(626
|
)
|
|
(671
|
)
|
|||
Add: Dividends and returns of capital to MetLife, Inc.
|
(3,200
|
)
|
|
(2,200
|
)
|
|
—
|
|
|||
Add: Investment portfolio and derivative changes and other, net
|
168
|
|
|
218
|
|
|
548
|
|
|||
Total other MetLife, Inc. holding companies free cash flow
|
(1,030
|
)
|
|
(501
|
)
|
|
1,002
|
|
|||
Free cash flow of all holding companies (1)
|
$
|
3,406
|
|
|
$
|
5,667
|
|
|
$
|
2,424
|
|
|
|
|
|
|
|
||||||
Ratio of net cash provided by operating activities to consolidated net income (loss) available to MetLife, Inc.’s common shareholders:
|
|
|
|
|
|
||||||
MetLife, Inc. (parent company only) net cash provided by operating activities
|
$
|
5,494
|
|
|
$
|
6,462
|
|
|
$
|
3,747
|
|
Consolidated net income (loss) available to MetLife, Inc.’s common
shareholders (1) |
$
|
4,982
|
|
|
$
|
3,907
|
|
|
$
|
747
|
|
Ratio of net cash provided by operating activities (parent company only) to
consolidated net income (loss) available to MetLife, Inc.'s common shareholders (1) (2) |
110
|
%
|
|
165
|
%
|
|
502
|
%
|
|||
Ratio of free cash flow to adjusted earnings available to common shareholders:
|
|
|
|
|
|
||||||
Free cash flow of all holding companies (3)
|
$
|
3,406
|
|
|
$
|
5,667
|
|
|
$
|
2,424
|
|
Consolidated adjusted earnings available to common shareholders (3)
|
$
|
5,461
|
|
|
$
|
4,235
|
|
|
$
|
4,033
|
|
Ratio of free cash flow of all holding companies to consolidated adjusted
earnings available to common shareholders (3) |
62
|
%
|
|
134
|
%
|
|
60
|
%
|
(1)
|
Consolidated net income (loss) available to MetLife, Inc.’s common shareholders for 2018 includes Separation-related costs of $80 million, net of income tax. Excluding this amount from the denominator of the ratio, this ratio, as adjusted, would be 109%. Consolidated net income (loss) available to MetLife, Inc.’s common shareholders for 2017 includes Separation-related costs of $312 million, net of income tax. Excluding this amount from the denominator of the ratio, this ratio, as adjusted, would be 153%. Consolidated net income (loss) available to MetLife, Inc.'s common shareholders for 2016 includes Separation-related costs of $73 million, net of income tax. Excluding this amount from the denominator of the ratio, this ratio, as adjusted, would be 457%. See “
—
Liquidity and Capital Resources
—
MetLife, Inc.
—
Liquid Assets
—
MetLife, Inc. and Other MetLife Holding Companies Sources and Uses of Liquid Assets and Sources and Uses of Liquid Assets included in Free Cash Flow.”
|
(2)
|
Including the free cash flow of other MetLife, Inc. holding companies of ($1.0) billion, ($501) million and
$1.0 billion
for the years ended December 31, 2018, 2017 and 2016, respectively, in the numerator of the ratio, this ratio, as adjusted, would be 90%, 153% and 636%, respectively. Including the free cash flow of other MetLife, Inc. holding companies in the numerator of the ratio and excluding the Separation-related costs and uncertain tax position non-cash charge from the denominator of the ratio, this ratio, as adjusted, would be 88%, 141% and 579% for the years ended December 31, 2018, 2017 and 2016, respectively.
|
(3)
|
i) In 2018, $268 million of Separation-related items (comprised of certain Separation-related inflows primarily related to reinsurance benefit from Brighthouse) were included in free cash flow, which increased our holding companies’ liquid assets, as well as our free cash flow ratio. Excluding these Separation-related items, adjusted free cash flow would be $3.1 billion for the year ended December 31, 2018. Consolidated adjusted earnings available to common shareholders for 2018 was negatively impacted by notable items, primarily related to expense initiative costs of $284 million, net of income tax, partially offset by tax adjustments of $247 million, net of income tax. Excluding the Separation-related items, which increased free cash flow, from the numerator of the ratio and excluding such notable items negatively impacting consolidated adjusted earnings available to common shareholders from the denominator of the ratio, the adjusted free cash flow ratio for 2018 would be 56%.
|
•
|
implementing a corporate risk framework, which outlines our enterprise approach for managing risk;
|
•
|
developing policies and procedures for identifying, managing, measuring, monitoring and controlling those risks identified in the corporate risk framework;
|
•
|
coordinating
Own Risk and Solvency Assessments for Board, senior management and regulator use;
|
•
|
establishing appropriate corporate risk tolerance levels;
|
•
|
recommending risk appetite statements and investment general authorizations to the Board;
|
•
|
measuring capital on an economic basis;
|
•
|
recommending capital allocations on an economic capital basis; and
|
•
|
reporting to (i) the Finance and Risk Committee of MetLife, Inc.’s Board of Directors; (ii) the Investment Committee of MetLife, Inc.’s Board of Directors; (iii) the Compensation Committee of MetLife, Inc.’s Board of Directors; and (iv) the financial and non-financial senior management committees on various aspects of risk.
|
•
|
Risks Related to Guarantee Benefits — We use a wide range of derivative contracts to mitigate the risk associated with living guarantee benefits. These derivatives include equity and interest rate futures, interest rate swaps, currency futures/forwards, equity indexed options, total rate of return swaps, interest rate option contracts and equity variance swaps.
|
•
|
Minimum Interest Rate Guarantees — For certain liability contracts, we provide the contractholder a guaranteed minimum interest rate. These contracts include certain fixed annuities and other insurance liabilities. We purchase interest rate caps and floors to reduce risk associated with these liability guarantees.
|
•
|
Reinvestment Risk in Long-Duration Liability Contracts — Derivatives are used to hedge interest rate risk related to certain long-duration liability contracts. Hedges include interest rate swaps and swaptions.
|
•
|
Foreign Currency Exchange Rate Risk — We use currency swaps, forwards and options to hedge foreign currency exchange rate risk. These hedges are generally used to swap foreign currency denominated bonds, investments in foreign subsidiaries or equity market exposures to U.S. dollars. Our foreign subsidiaries also use these hedges to swap non-local currency assets to local currency, to match liabilities
.
|
•
|
General ALM Hedging Strategies — In the ordinary course of managing our asset/liability risks, we use interest rate futures, interest rate swaps, interest rate caps, and inflation swaps. These hedges are designed to reduce interest rate risk or inflation risk related to the existing assets or liabilities or related to expected future cash flows.
|
•
|
the net present values of our interest rate sensitive exposures resulting from a 10% change (increase or decrease) in interest rates;
|
•
|
the U.S. dollar equivalent estimated fair values of our foreign currency exposures due to a 10% change (increase in the value of the U.S. dollar compared to all foreign currencies or decrease in the value of the U.S. dollar compared to all foreign currencies) in foreign currency exchange rates; and
|
•
|
the estimated fair value of our equity positions due to a 10% change (increase or decrease) in equity market prices.
|
•
|
interest sensitive and foreign currency exchange sensitive liabilities do not include
$203.3 billion
, at carrying value, of insurance contracts. Management believes that the changes in the economic value of those contracts under changing interest rates and changing foreign currency exchange rates would offset a significant portion of the fair value changes of interest sensitive and foreign currency exchange rate sensitive assets;
|
•
|
the market risk information is limited by the assumptions and parameters established in creating the related sensitivity analysis, including the impact of prepayment rates on mortgage loans;
|
•
|
sensitivities do not include the impact on asset or liability valuation of changes in market liquidity or changes in market credit spreads;
|
•
|
foreign currency risk is not isolated for certain embedded derivatives within host asset and liability contracts, as the risk on these instruments is reflected as equity;
|
•
|
for the derivatives that qualify as hedges, and for certain other assets such as mortgage loans, the impact on reported earnings may be materially different from the change in market values;
|
•
|
the analysis excludes liabilities pursuant to insurance contracts and real estate holdings; and
|
•
|
the model assumes that the composition of assets and liabilities remains unchanged throughout the period.
|
|
December 31, 2018
|
||
|
(In millions)
|
||
Interest rate risk
|
$
|
5,656
|
|
Foreign currency exchange rate risk
|
$
|
7,807
|
|
Equity market risk
|
$
|
(1
|
)
|
|
December 31, 2018
|
||||||||||
|
Notional
Amount
|
|
Estimated
Fair
Value (1)
|
|
Assuming a
10% Increase
in Interest Rates
|
||||||
|
(In millions)
|
||||||||||
Assets
|
|
|
|
|
|
||||||
Fixed maturity securities AFS
|
|
|
$
|
298,265
|
|
|
$
|
(5,180
|
)
|
||
Equity securities
|
|
|
$
|
1,440
|
|
|
—
|
|
|||
FVO Securities
|
|
|
$
|
871
|
|
|
(8
|
)
|
|||
Mortgage loans
|
|
|
$
|
76,379
|
|
|
(816
|
)
|
|||
Policy loans
|
|
|
$
|
11,366
|
|
|
(131
|
)
|
|||
Short-term investments
|
|
|
$
|
3,937
|
|
|
(5
|
)
|
|||
Other invested assets
|
|
|
$
|
1,413
|
|
|
—
|
|
|||
Cash and cash equivalents
|
|
|
$
|
15,821
|
|
|
—
|
|
|||
Accrued investment income
|
|
|
$
|
3,582
|
|
|
—
|
|
|||
Premiums, reinsurance and other receivables
|
|
|
$
|
3,797
|
|
|
(23
|
)
|
|||
Other assets
|
|
|
$
|
350
|
|
|
(4
|
)
|
|||
Embedded derivatives within asset host contracts (2)
|
|
|
$
|
71
|
|
|
—
|
|
|||
Total assets
|
|
|
|
|
$
|
(6,167
|
)
|
||||
Liabilities (3)
|
|
|
|
|
|
||||||
Policyholder account balances
|
|
|
$
|
110,313
|
|
|
$
|
757
|
|
||
Payables for collateral under securities loaned and other transactions
|
|
|
$
|
24,794
|
|
|
—
|
|
|||
Short-term debt
|
|
|
$
|
268
|
|
|
—
|
|
|||
Long-term debt
|
|
|
$
|
13,611
|
|
|
342
|
|
|||
Collateral financing arrangement
|
|
|
$
|
853
|
|
|
—
|
|
|||
Junior subordinated debt securities
|
|
|
$
|
3,738
|
|
|
104
|
|
|||
Other liabilities
|
|
|
$
|
3,518
|
|
|
68
|
|
|||
Embedded derivatives within liability host contracts (2)
|
|
|
$
|
810
|
|
|
161
|
|
|||
Total liabilities
|
|
|
|
|
$
|
1,432
|
|
||||
Derivative Instruments
|
|
|
|
|
|
||||||
Interest rate swaps
|
$
|
60,852
|
|
|
$
|
3,958
|
|
|
$
|
(565
|
)
|
Interest rate floors
|
$
|
12,701
|
|
|
$
|
102
|
|
|
(26
|
)
|
|
Interest rate caps
|
$
|
54,575
|
|
|
$
|
153
|
|
|
62
|
|
|
Interest rate futures
|
$
|
2,353
|
|
|
$
|
(2
|
)
|
|
8
|
|
|
Interest rate options
|
$
|
26,690
|
|
|
$
|
416
|
|
|
(91
|
)
|
|
Interest rate forwards
|
$
|
3,256
|
|
|
$
|
(230
|
)
|
|
(121
|
)
|
|
Interest rate total return swaps
|
$
|
1,048
|
|
|
$
|
31
|
|
|
(54
|
)
|
|
Synthetic GICs
|
$
|
25,700
|
|
|
$
|
—
|
|
|
—
|
|
|
Foreign currency swaps
|
$
|
48,552
|
|
|
$
|
445
|
|
|
(139
|
)
|
|
Foreign currency forwards
|
$
|
16,517
|
|
|
$
|
(28
|
)
|
|
22
|
|
|
Currency futures
|
$
|
847
|
|
|
$
|
4
|
|
|
—
|
|
|
Currency options
|
$
|
7,177
|
|
|
$
|
(192
|
)
|
|
(1
|
)
|
|
Credit default swaps
|
$
|
13,294
|
|
|
$
|
68
|
|
|
—
|
|
|
Equity futures
|
$
|
2,992
|
|
|
$
|
(64
|
)
|
|
(1
|
)
|
|
Equity index options
|
$
|
27,707
|
|
|
$
|
334
|
|
|
(15
|
)
|
|
Equity variance swaps
|
$
|
2,269
|
|
|
$
|
(47
|
)
|
|
—
|
|
|
Equity total return swaps
|
$
|
929
|
|
|
$
|
91
|
|
|
—
|
|
|
Total derivative instruments
|
|
|
|
|
$
|
(921
|
)
|
||||
Net Change
|
|
|
|
|
$
|
(5,656
|
)
|
(1)
|
Separate account assets and liabilities and Unit-linked investments and associated policyholder account balances, which are interest rate sensitive, are not included herein as any interest rate risk is borne by the contractholder, notwithstanding any general account guarantees which are included within embedded derivatives (see footnote (2) below) or included within future policy benefits and other policy-related balances (see footnote (3) below). FVO Securities and long-term debt exclude $4 million and $5 million, respectively, related to CSEs.
|
(2)
|
Embedded derivatives are recognized on the consolidated balance sheet in the same caption as the host contract.
|
(3)
|
Excludes $
203.3 billion
of liabilities, at carrying value, pursuant to insurance contracts reported within future policy benefits and other policy-related balances. These liabilities would economically offset a significant portion of the net change in fair value of our financial instruments resulting from a 10% increase in interest rates.
|
|
December 31, 2018
|
||||||||||
|
Notional
Amount
|
|
Estimated
Fair
Value (1)
|
|
Assuming a
10% Increase in the Foreign Exchange Rate |
||||||
|
(In millions)
|
||||||||||
Assets
|
|
|
|
|
|
||||||
Fixed maturity securities AFS
|
|
|
$
|
298,265
|
|
|
$
|
(9,560
|
)
|
||
Equity securities
|
|
|
$
|
1,440
|
|
|
(47
|
)
|
|||
FVO Securities
|
|
|
$
|
871
|
|
|
(88
|
)
|
|||
Mortgage loans
|
|
|
$
|
76,379
|
|
|
(856
|
)
|
|||
Policy loans
|
|
|
$
|
11,366
|
|
|
(161
|
)
|
|||
Short-term investments
|
|
|
$
|
3,937
|
|
|
(329
|
)
|
|||
Other invested assets
|
|
|
$
|
1,413
|
|
|
(264
|
)
|
|||
Cash and cash equivalents
|
|
|
$
|
15,821
|
|
|
(472
|
)
|
|||
Accrued investment income
|
|
|
$
|
3,582
|
|
|
(94
|
)
|
|||
Premiums, reinsurance and other receivables
|
|
|
$
|
3,797
|
|
|
(101
|
)
|
|||
Other assets
|
|
|
$
|
350
|
|
|
(18
|
)
|
|||
Embedded derivatives within asset host contracts (2)
|
|
|
$
|
71
|
|
|
(7
|
)
|
|||
Total assets
|
|
|
|
|
$
|
(11,997
|
)
|
||||
Liabilities (3)
|
|
|
|
|
|
||||||
Policyholder account balances
|
|
|
$
|
110,313
|
|
|
$
|
3,453
|
|
||
Payables for collateral under securities loaned and other transactions
|
|
|
$
|
24,794
|
|
|
136
|
|
|||
Long-term debt
|
|
|
$
|
13,611
|
|
|
106
|
|
|||
Other liabilities
|
|
|
$
|
3,518
|
|
|
20
|
|
|||
Embedded derivatives within liability host contracts (2)
|
|
|
$
|
810
|
|
|
61
|
|
|||
Total liabilities
|
|
|
|
|
$
|
3,776
|
|
||||
Derivative Instruments
|
|
|
|
|
|
||||||
Interest rate swaps
|
$
|
60,852
|
|
|
$
|
3,958
|
|
|
$
|
(71
|
)
|
Interest rate floors
|
$
|
12,701
|
|
|
$
|
102
|
|
|
—
|
|
|
Interest rate caps
|
$
|
54,575
|
|
|
$
|
153
|
|
|
—
|
|
|
Interest rate futures
|
$
|
2,353
|
|
|
$
|
(2
|
)
|
|
—
|
|
|
Interest rate options
|
$
|
26,690
|
|
|
$
|
416
|
|
|
(21
|
)
|
|
Interest rate forwards
|
$
|
3,256
|
|
|
$
|
(230
|
)
|
|
1
|
|
|
Interest rate total return swaps
|
$
|
1,048
|
|
|
$
|
31
|
|
|
—
|
|
|
Synthetic GICs
|
$
|
25,700
|
|
|
$
|
—
|
|
|
—
|
|
|
Foreign currency swaps
|
$
|
48,552
|
|
|
$
|
445
|
|
|
1,037
|
|
|
Foreign currency forwards
|
$
|
16,517
|
|
|
$
|
(28
|
)
|
|
(769
|
)
|
|
Currency futures
|
$
|
847
|
|
|
$
|
4
|
|
|
(87
|
)
|
|
Currency options
|
$
|
7,177
|
|
|
$
|
(192
|
)
|
|
319
|
|
|
Credit default swaps
|
$
|
13,294
|
|
|
$
|
68
|
|
|
(4
|
)
|
|
Equity futures
|
$
|
2,992
|
|
|
$
|
(64
|
)
|
|
—
|
|
|
Equity index options
|
$
|
27,707
|
|
|
$
|
334
|
|
|
9
|
|
|
Equity variance swaps
|
$
|
2,269
|
|
|
$
|
(47
|
)
|
|
—
|
|
|
Equity total return swaps
|
$
|
929
|
|
|
$
|
91
|
|
|
—
|
|
|
Total derivative instruments
|
|
|
|
|
$
|
414
|
|
||||
Net Change
|
|
|
|
|
$
|
(7,807
|
)
|
(1)
|
Does not necessarily represent those financial instruments solely subject to foreign currency exchange rate risk. Separate account assets and liabilities and Unit-linked investments and associated policyholder account balances, which are foreign currency exchange rate sensitive, are not included herein as any foreign currency exchange rate risk is borne by the contractholder, notwithstanding any general account guarantees which are included within embedded derivatives (see footnote (2) below) or included within future policy benefits and other policy-related balances (see footnote (3) below). FVO Securities and long-term debt exclude $4 million and $5 million, respectively, related to CSEs.
|
(2)
|
Embedded derivatives are recognized on the consolidated balance sheet in the same caption as the host contract.
|
(3)
|
Excludes $
203.3 billion
of liabilities, at carrying value, pursuant to insurance contracts reported within future policy benefits and other policy-related balances. These liabilities would economically offset a significant portion of the net change in fair value of our financial instruments resulting from a 10%
appreciation in the U.S. dollar relative to all other currencies.
|
|
December 31, 2018
|
||||||||||
|
Notional
Amount
|
|
Estimated
Fair Value (1) |
|
Assuming a
10% Increase
in Equity
Prices
|
||||||
|
(In millions)
|
||||||||||
Assets
|
|
|
|
|
|
||||||
Equity securities
|
|
|
$
|
1,440
|
|
|
$
|
144
|
|
||
FVO Securities
|
|
|
$
|
871
|
|
|
33
|
|
|||
Embedded derivatives within asset host contracts (2)
|
|
|
$
|
71
|
|
|
—
|
|
|||
Total assets
|
|
|
|
|
$
|
177
|
|
||||
Liabilities (3)
|
|
|
|
|
|
||||||
Policyholder account balances
|
|
|
$
|
110,313
|
|
|
$
|
—
|
|
||
Embedded derivatives within liability host contracts (2)
|
|
|
$
|
810
|
|
|
329
|
|
|||
Total liabilities
|
|
|
|
|
$
|
329
|
|
||||
Derivative Instruments
|
|
|
|
|
|
||||||
Interest rate swaps
|
$
|
60,852
|
|
|
$
|
3,958
|
|
|
$
|
—
|
|
Interest rate floors
|
$
|
12,701
|
|
|
$
|
102
|
|
|
—
|
|
|
Interest rate caps
|
$
|
54,575
|
|
|
$
|
153
|
|
|
—
|
|
|
Interest rate futures
|
$
|
2,353
|
|
|
$
|
(2
|
)
|
|
—
|
|
|
Interest rate options
|
$
|
26,690
|
|
|
$
|
416
|
|
|
—
|
|
|
Interest rate forwards
|
$
|
3,256
|
|
|
$
|
(230
|
)
|
|
—
|
|
|
Interest rate total return swaps
|
$
|
1,048
|
|
|
$
|
31
|
|
|
—
|
|
|
Synthetic GICs
|
$
|
25,700
|
|
|
$
|
—
|
|
|
—
|
|
|
Foreign currency swaps
|
$
|
48,552
|
|
|
$
|
445
|
|
|
—
|
|
|
Foreign currency forwards
|
$
|
16,517
|
|
|
$
|
(28
|
)
|
|
—
|
|
|
Currency futures
|
$
|
847
|
|
|
$
|
4
|
|
|
—
|
|
|
Currency options
|
$
|
7,177
|
|
|
$
|
(192
|
)
|
|
—
|
|
|
Credit default swaps
|
$
|
13,294
|
|
|
$
|
68
|
|
|
—
|
|
|
Equity futures
|
$
|
2,992
|
|
|
$
|
(64
|
)
|
|
(227
|
)
|
|
Equity index options
|
$
|
27,707
|
|
|
$
|
334
|
|
|
(198
|
)
|
|
Equity variance swaps
|
$
|
2,269
|
|
|
$
|
(47
|
)
|
|
1
|
|
|
Equity total return swaps
|
$
|
929
|
|
|
$
|
91
|
|
|
(81
|
)
|
|
Total derivative instruments
|
|
|
|
|
$
|
(505
|
)
|
||||
Net Change
|
|
|
|
|
$
|
1
|
|
(1)
|
Does not necessarily represent those financial instruments solely subject to equity price risk. Additionally, separate account assets and liabilities and Unit-linked investments and associated policyholder account balances, which are equity market sensitive, are not included herein as any equity market risk is borne by the contractholder, notwithstanding any general account guarantees which are included within embedded derivatives (see footnote (2) below) or included within future policy benefits and other policy-related balances (see footnote (3) below).
|
(2)
|
Embedded derivatives are recognized on the consolidated balance sheet in the same caption as the host contract.
|
(3)
|
Excludes $203.3 billion of liabilities, at carrying value, pursuant to insurance contracts reported within future policy benefits and other policy-related balances.
|
|
|
2018
|
|
2017
|
||||
Assets
|
|
|
|
|
||||
Investments:
|
|
|
|
|
||||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $286,816 and $286,069, respectively)
|
|
$
|
298,265
|
|
|
$
|
308,931
|
|
Equity securities, at estimated fair value
|
|
1,440
|
|
|
2,513
|
|
||
Contractholder-directed equity securities and fair value option securities, at estimated fair value (includes $4 and $6, respectively, relating to variable interest entities)
|
|
12,616
|
|
|
16,745
|
|
||
Mortgage loans (net of valuation allowances of $342 and $314, respectively; includes $299 and $520, respectively, under the fair value option)
|
|
75,752
|
|
|
68,731
|
|
||
Policy loans
|
|
9,699
|
|
|
9,669
|
|
||
Real estate and real estate joint ventures (includes $0 and $25, respectively, of real estate held-for-sale)
|
|
9,698
|
|
|
9,637
|
|
||
Other limited partnership interests
|
|
6,613
|
|
|
5,708
|
|
||
Short-term investments, principally at estimated fair value
|
|
3,937
|
|
|
4,870
|
|
||
Other invested assets (includes $141 and $125, respectively, relating to variable interest entities)
|
|
18,190
|
|
|
17,263
|
|
||
Total investments
|
|
436,210
|
|
|
444,067
|
|
||
Cash and cash equivalents, principally at estimated fair value (includes $52 and $12, respectively, relating to variable interest entities)
|
|
15,821
|
|
|
12,701
|
|
||
Accrued investment income
|
|
3,582
|
|
|
3,524
|
|
||
Premiums, reinsurance and other receivables (includes $3 and $3, respectively, relating to variable interest entities)
|
|
19,644
|
|
|
18,423
|
|
||
Deferred policy acquisition costs and value of business acquired
|
|
18,895
|
|
|
18,419
|
|
||
Goodwill
|
|
9,422
|
|
|
9,590
|
|
||
Other assets (includes $2 and $2, respectively, relating to variable interest entities)
|
|
8,408
|
|
|
8,167
|
|
||
Separate account assets
|
|
175,556
|
|
|
205,001
|
|
||
Total assets
|
|
$
|
687,538
|
|
|
$
|
719,892
|
|
Liabilities and Equity
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
||||
Future policy benefits
|
|
$
|
186,780
|
|
|
$
|
177,974
|
|
Policyholder account balances
|
|
183,693
|
|
|
182,518
|
|
||
Other policy-related balances
|
|
16,529
|
|
|
15,515
|
|
||
Policyholder dividends payable
|
|
677
|
|
|
682
|
|
||
Policyholder dividend obligation
|
|
428
|
|
|
2,121
|
|
||
Payables for collateral under securities loaned and other transactions
|
|
24,794
|
|
|
25,723
|
|
||
Short-term debt
|
|
268
|
|
|
477
|
|
||
Long-term debt (includes $5 and $6, respectively, at estimated fair value, relating to variable interest entities)
|
|
12,829
|
|
|
15,686
|
|
||
Collateral financing arrangement
|
|
1,060
|
|
|
1,121
|
|
||
Junior subordinated debt securities
|
|
3,147
|
|
|
3,144
|
|
||
Current income tax payable
|
|
441
|
|
|
311
|
|
||
Deferred income tax liability
|
|
5,414
|
|
|
6,767
|
|
||
Other liabilities (includes $1 and $3, respectively, relating to variable interest entities)
|
|
22,964
|
|
|
23,982
|
|
||
Separate account liabilities
|
|
175,556
|
|
|
205,001
|
|
||
Total liabilities
|
|
634,580
|
|
|
661,022
|
|
||
Contingencies, Commitments and Guarantees (Note 20)
|
|
|
|
|
||||
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; 1,171,824,242 and 1,168,710,101 shares issued, respectively; 958,613,542 and 1,043,588,396 shares outstanding, respectively
|
|
12
|
|
|
12
|
|
||
Additional paid-in capital
|
|
32,474
|
|
|
31,111
|
|
||
Retained earnings
|
|
28,926
|
|
|
26,527
|
|
||
Treasury stock, at cost; 213,210,700 and 125,121,705 shares, respectively
|
|
(10,393
|
)
|
|
(6,401
|
)
|
||
Accumulated other comprehensive income (loss)
|
|
1,722
|
|
|
7,427
|
|
||
Total MetLife, Inc.’s stockholders’ equity
|
|
52,741
|
|
|
58,676
|
|
||
Noncontrolling interests
|
|
217
|
|
|
194
|
|
||
Total equity
|
|
52,958
|
|
|
58,870
|
|
||
Total liabilities and equity
|
|
$
|
687,538
|
|
|
$
|
719,892
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Revenues
|
|
|
|
|
|
|
||||||
Premiums
|
|
$
|
43,840
|
|
|
$
|
38,992
|
|
|
$
|
37,202
|
|
Universal life and investment-type product policy fees
|
|
5,502
|
|
|
5,510
|
|
|
5,483
|
|
|||
Net investment income
|
|
16,166
|
|
|
17,363
|
|
|
16,790
|
|
|||
Other revenues
|
|
1,880
|
|
|
1,341
|
|
|
1,685
|
|
|||
Net investment gains (losses):
|
|
|
|
|
|
|
||||||
Other-than-temporary impairments on fixed maturity securities available-for-sale
|
|
(40
|
)
|
|
(11
|
)
|
|
(96
|
)
|
|||
Other-than-temporary impairments on fixed maturity securities available-for-sale transferred to other comprehensive income (loss)
|
|
—
|
|
|
1
|
|
|
(11
|
)
|
|||
Other net investment gains (losses)
|
|
(258
|
)
|
|
(298
|
)
|
|
424
|
|
|||
Total net investment gains (losses)
|
|
(298
|
)
|
|
(308
|
)
|
|
317
|
|
|||
Net derivative gains (losses)
|
|
851
|
|
|
(590
|
)
|
|
(690
|
)
|
|||
Total revenues
|
|
67,941
|
|
|
62,308
|
|
|
60,787
|
|
|||
Expenses
|
|
|
|
|
|
|
||||||
Policyholder benefits and claims
|
|
42,656
|
|
|
38,313
|
|
|
36,358
|
|
|||
Interest credited to policyholder account balances
|
|
4,013
|
|
|
5,607
|
|
|
5,176
|
|
|||
Policyholder dividends
|
|
1,251
|
|
|
1,231
|
|
|
1,223
|
|
|||
Other expenses
|
|
13,714
|
|
|
13,621
|
|
|
13,749
|
|
|||
Total expenses
|
|
61,634
|
|
|
58,772
|
|
|
56,506
|
|
|||
Income (loss) from continuing operations before provision for income tax
|
|
6,307
|
|
|
3,536
|
|
|
4,281
|
|
|||
Provision for income tax expense (benefit)
|
|
1,179
|
|
|
(1,470
|
)
|
|
693
|
|
|||
Income (loss) from continuing operations, net of income tax
|
|
5,128
|
|
|
5,006
|
|
|
3,588
|
|
|||
Income (loss) from discontinued operations, net of income tax
|
|
—
|
|
|
(986
|
)
|
|
(2,734
|
)
|
|||
Net income (loss)
|
|
5,128
|
|
|
4,020
|
|
|
854
|
|
|||
Less: Net income (loss) attributable to noncontrolling interests
|
|
5
|
|
|
10
|
|
|
4
|
|
|||
Net income (loss) attributable to MetLife, Inc.
|
|
5,123
|
|
|
4,010
|
|
|
850
|
|
|||
Less: Preferred stock dividends
|
|
141
|
|
|
103
|
|
|
103
|
|
|||
Net income (loss) available to MetLife, Inc.’s common shareholders
|
|
$
|
4,982
|
|
|
$
|
3,907
|
|
|
$
|
747
|
|
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders per common share:
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
4.95
|
|
|
$
|
4.57
|
|
|
$
|
3.16
|
|
Diluted
|
|
$
|
4.91
|
|
|
$
|
4.53
|
|
|
$
|
3.13
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders per common share:
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
4.95
|
|
|
$
|
3.65
|
|
|
$
|
0.68
|
|
Diluted
|
|
$
|
4.91
|
|
|
$
|
3.62
|
|
|
$
|
0.67
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net income (loss)
|
$
|
5,128
|
|
|
$
|
4,020
|
|
|
$
|
854
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
||||||
Unrealized investment gains (losses), net of related offsets
|
(8,719
|
)
|
|
4,623
|
|
|
796
|
|
|||
Unrealized gains (losses) on derivatives
|
674
|
|
|
(1,165
|
)
|
|
573
|
|
|||
Foreign currency translation adjustments
|
(587
|
)
|
|
767
|
|
|
(363
|
)
|
|||
Defined benefit plans adjustment
|
263
|
|
|
144
|
|
|
131
|
|
|||
Other comprehensive income (loss), before income tax
|
(8,369
|
)
|
|
4,369
|
|
|
1,137
|
|
|||
Income tax (expense) benefit related to items of other comprehensive income (loss)
|
1,754
|
|
|
(984
|
)
|
|
(450
|
)
|
|||
Other comprehensive income (loss), net of income tax
|
(6,615
|
)
|
|
3,385
|
|
|
687
|
|
|||
Comprehensive income (loss)
|
(1,487
|
)
|
|
7,405
|
|
|
1,541
|
|
|||
Less: Comprehensive income (loss) attributable to noncontrolling interest, net of income tax
|
7
|
|
|
14
|
|
|
92
|
|
|||
Comprehensive income (loss) attributable to MetLife, Inc.
|
$
|
(1,494
|
)
|
|
$
|
7,391
|
|
|
$
|
1,449
|
|
|
|
Preferred
Stock
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Treasury
Stock
at Cost
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
MetLife, Inc.’s
Stockholders’
Equity
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
||||||||||||||||||
Balance at December 31, 2015
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
30,749
|
|
|
$
|
35,672
|
|
|
$
|
(3,102
|
)
|
|
$
|
4,767
|
|
|
$
|
68,098
|
|
|
$
|
470
|
|
|
$
|
68,568
|
|
Treasury stock acquired in connection with share repurchases
|
|
|
|
|
|
|
|
|
|
(372
|
)
|
|
|
|
(372
|
)
|
|
|
|
(372
|
)
|
|||||||||||||||
Stock-based compensation
|
|
|
|
|
|
195
|
|
|
|
|
|
|
|
|
195
|
|
|
|
|
195
|
|
|||||||||||||||
Dividends on preferred stock
|
|
|
|
|
|
|
|
(103
|
)
|
|
|
|
|
|
(103
|
)
|
|
|
|
(103
|
)
|
|||||||||||||||
Dividends on common stock
|
|
|
|
|
|
|
|
(1,736
|
)
|
|
|
|
|
|
(1,736
|
)
|
|
|
|
(1,736
|
)
|
|||||||||||||||
Change in equity of noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(391
|
)
|
|
(391
|
)
|
|||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
850
|
|
|
|
|
|
|
850
|
|
|
4
|
|
|
854
|
|
||||||||||||||
Other comprehensive income (loss), net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
599
|
|
|
599
|
|
|
88
|
|
|
687
|
|
||||||||||||||
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
|
|
|
|
|
|
|
|
|
|
(2,927
|
)
|
|
|
|
(2,927
|
)
|
|
|
|
(2,927
|
)
|
|||||||||||||||
Stock-based compensation
|
|
|
|
|
|
167
|
|
|
|
|
|
|
|
|
167
|
|
|
|
|
167
|
|
|||||||||||||||
Dividends on preferred stock
|
|
|
|
|
|
|
|
(103
|
)
|
|
|
|
|
|
(103
|
)
|
|
|
|
(103
|
)
|
|||||||||||||||
Dividends on common stock
|
|
|
|
|
|
|
|
(1,717
|
)
|
|
|
|
|
|
(1,717
|
)
|
|
|
|
(1,717
|
)
|
|||||||||||||||
Distribution of Brighthouse, net of income tax (Note 3)
|
|
|
|
|
|
|
|
(10,346
|
)
|
|
|
|
(1,320
|
)
|
|
(11,666
|
)
|
|
|
|
(11,666
|
)
|
||||||||||||||
Change in equity of noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
9
|
|
|
9
|
|
|||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
4,010
|
|
|
|
|
|
|
4,010
|
|
|
10
|
|
|
4,020
|
|
||||||||||||||
Other comprehensive income (loss), net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
3,381
|
|
|
3,381
|
|
|
4
|
|
|
3,385
|
|
||||||||||||||
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
|
|
|
|
|
|
|
|
|
|
(3,992
|
)
|
|
|
|
(3,992
|
)
|
|
|
|
(3,992
|
)
|
|||||||||||||||
Stock-based compensation
|
|
|
|
|
|
89
|
|
|
|
|
|
|
|
|
89
|
|
|
|
|
89
|
|
|||||||||||||||
Dividends on preferred stock
|
|
|
|
|
|
|
|
(141
|
)
|
|
|
|
|
|
(141
|
)
|
|
|
|
(141
|
)
|
|||||||||||||||
Dividends on common stock
|
|
|
|
|
|
|
|
(1,678
|
)
|
|
|
|
|
|
(1,678
|
)
|
|
|
|
(1,678
|
)
|
|||||||||||||||
Change in equity of noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
16
|
|
|
16
|
|
|||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
5,123
|
|
|
|
|
|
|
5,123
|
|
|
5
|
|
|
5,128
|
|
||||||||||||||
Other comprehensive income (loss), net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
(6,617
|
)
|
|
(6,617
|
)
|
|
2
|
|
|
(6,615
|
)
|
||||||||||||||
Balance at December 31, 2018
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
32,474
|
|
|
$
|
28,926
|
|
|
$
|
(10,393
|
)
|
|
$
|
1,722
|
|
|
$
|
52,741
|
|
|
$
|
217
|
|
|
$
|
52,958
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Cash flows from operating activities
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
5,128
|
|
|
$
|
4,020
|
|
|
$
|
854
|
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization expenses
|
628
|
|
|
795
|
|
|
652
|
|
|||
Amortization of premiums and accretion of discounts associated with investments, net
|
(1,013
|
)
|
|
(1,044
|
)
|
|
(1,110
|
)
|
|||
(Gains) losses on investments and from sales of businesses, net
|
298
|
|
|
363
|
|
|
(183
|
)
|
|||
(Gains) losses on derivatives, net
|
(207
|
)
|
|
3,610
|
|
|
8,779
|
|
|||
(Income) loss from equity method investments, net of dividends or distributions
|
251
|
|
|
194
|
|
|
475
|
|
|||
Interest credited to policyholder account balances
|
4,013
|
|
|
6,260
|
|
|
6,282
|
|
|||
Universal life and investment-type product policy fees
|
(5,502
|
)
|
|
(7,708
|
)
|
|
(9,207
|
)
|
|||
Goodwill impairment
|
—
|
|
|
—
|
|
|
260
|
|
|||
Change in contractholder-directed equity securities and fair value option securities
|
2,212
|
|
|
(436
|
)
|
|
111
|
|
|||
Change in accrued investment income
|
(121
|
)
|
|
(280
|
)
|
|
(31
|
)
|
|||
Change in premiums, reinsurance and other receivables
|
(1,809
|
)
|
|
(991
|
)
|
|
(2,158
|
)
|
|||
Change in deferred policy acquisition costs and value of business acquired, net
|
(249
|
)
|
|
(693
|
)
|
|
(937
|
)
|
|||
Change in income tax
|
940
|
|
|
(2,796
|
)
|
|
(1,522
|
)
|
|||
Change in other assets
|
260
|
|
|
691
|
|
|
3,248
|
|
|||
Change in insurance-related liabilities and policy-related balances
|
7,454
|
|
|
8,511
|
|
|
6,321
|
|
|||
Change in other liabilities
|
(483
|
)
|
|
1,603
|
|
|
2,801
|
|
|||
Other, net
|
(62
|
)
|
|
184
|
|
|
139
|
|
|||
Net cash provided by (used in) operating activities
|
11,738
|
|
|
12,283
|
|
|
14,774
|
|
|||
Cash flows from investing activities
|
|
|
|
|
|
||||||
Sales, maturities and repayments of:
|
|
|
|
|
|
||||||
Fixed maturity securities available-for-sale
|
106,677
|
|
|
95,945
|
|
|
150,658
|
|
|||
Equity securities
|
342
|
|
|
1,433
|
|
|
1,241
|
|
|||
Mortgage loans
|
9,918
|
|
|
10,353
|
|
|
12,977
|
|
|||
Real estate and real estate joint ventures
|
1,227
|
|
|
972
|
|
|
826
|
|
|||
Other limited partnership interests
|
675
|
|
|
1,082
|
|
|
1,542
|
|
|||
Purchases and originations of:
|
|
|
|
|
|
||||||
Fixed maturity securities available-for-sale
|
(105,401
|
)
|
|
(105,683
|
)
|
|
(146,397
|
)
|
|||
Equity securities
|
(235
|
)
|
|
(920
|
)
|
|
(1,006
|
)
|
|||
Mortgage loans
|
(17,059
|
)
|
|
(14,374
|
)
|
|
(21,017
|
)
|
|||
Real estate and real estate joint ventures
|
(1,118
|
)
|
|
(1,446
|
)
|
|
(1,515
|
)
|
|||
Other limited partnership interests
|
(1,406
|
)
|
|
(1,486
|
)
|
|
(1,313
|
)
|
|||
Cash received in connection with freestanding derivatives
|
3,778
|
|
|
5,315
|
|
|
4,259
|
|
|||
Cash paid in connection with freestanding derivatives
|
(4,173
|
)
|
|
(8,696
|
)
|
|
(6,963
|
)
|
|||
Cash disposed due to distribution of Brighthouse
|
—
|
|
|
(663
|
)
|
|
—
|
|
|||
Sales of businesses, net of cash and cash equivalents disposed of $0, $0 and $135, respectively
|
—
|
|
|
—
|
|
|
156
|
|
|||
Purchases of businesses
|
—
|
|
|
(211
|
)
|
|
—
|
|
|||
Net change in policy loans
|
(37
|
)
|
|
(67
|
)
|
|
195
|
|
|||
Net change in short-term investments
|
870
|
|
|
2,087
|
|
|
1,270
|
|
|||
Net change in other invested assets
|
340
|
|
|
(171
|
)
|
|
(306
|
)
|
|||
Other, net
|
(32
|
)
|
|
(346
|
)
|
|
(457
|
)
|
|||
Net cash provided by (used in) investing activities
|
$
|
(5,634
|
)
|
|
$
|
(16,876
|
)
|
|
$
|
(5,850
|
)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Cash flows from financing activities
|
|
|
|
|
|
||||||
Policyholder account balances:
|
|
|
|
|
|
||||||
Deposits
|
$
|
92,327
|
|
|
$
|
88,511
|
|
|
$
|
88,188
|
|
Withdrawals
|
(88,061
|
)
|
|
(82,380
|
)
|
|
(83,263
|
)
|
|||
Payables for collateral under securities loaned and other transactions:
|
|
|
|
|
|
||||||
Net change in payables for collateral under securities loaned and other transactions
|
(821
|
)
|
|
903
|
|
|
(3,636
|
)
|
|||
Cash received for other transactions with tenors greater than three months
|
200
|
|
|
—
|
|
|
—
|
|
|||
Long-term debt issued
|
24
|
|
|
3,657
|
|
|
—
|
|
|||
Long-term debt repaid
|
(1,871
|
)
|
|
(1,073
|
)
|
|
(1,279
|
)
|
|||
Collateral financing arrangements repaid
|
(61
|
)
|
|
(2,951
|
)
|
|
(68
|
)
|
|||
Distribution of Brighthouse
|
—
|
|
|
(2,793
|
)
|
|
—
|
|
|||
Financing element on certain derivative instruments and other derivative related transactions, net
|
144
|
|
|
(151
|
)
|
|
(1,367
|
)
|
|||
Treasury stock acquired in connection with share repurchases
|
(3,992
|
)
|
|
(2,927
|
)
|
|
(372
|
)
|
|||
Preferred stock issued, net of issuance costs
|
1,274
|
|
|
—
|
|
|
—
|
|
|||
Dividends on preferred stock
|
(141
|
)
|
|
(103
|
)
|
|
(103
|
)
|
|||
Dividends on common stock
|
(1,678
|
)
|
|
(1,717
|
)
|
|
(1,736
|
)
|
|||
Other, net
|
(145
|
)
|
|
118
|
|
|
139
|
|
|||
Net cash provided by (used in) financing activities
|
(2,801
|
)
|
|
(906
|
)
|
|
(3,497
|
)
|
|||
Effect of change in foreign currency exchange rates on cash and cash equivalents balances
|
(183
|
)
|
|
323
|
|
|
(302
|
)
|
|||
Change in cash and cash equivalents
|
3,120
|
|
|
(5,176
|
)
|
|
5,125
|
|
|||
Cash and cash equivalents, beginning of year
|
12,701
|
|
|
17,877
|
|
|
12,752
|
|
|||
Cash and cash equivalents, end of year
|
$
|
15,821
|
|
|
$
|
12,701
|
|
|
$
|
17,877
|
|
Cash and cash equivalents, of disposed subsidiary, beginning of year
|
$
|
—
|
|
|
$
|
5,226
|
|
|
$
|
1,570
|
|
Cash and cash equivalents, of disposed subsidiary, end of year
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,226
|
|
Cash and cash equivalents, from continuing operations, beginning of year
|
$
|
12,701
|
|
|
$
|
12,651
|
|
|
$
|
11,182
|
|
Cash and cash equivalents, from continuing operations, end of year
|
$
|
15,821
|
|
|
$
|
12,701
|
|
|
$
|
12,651
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
||||||
Net cash paid (received) for:
|
|
|
|
|
|
||||||
Interest
|
$
|
1,130
|
|
|
$
|
1,118
|
|
|
$
|
1,202
|
|
Income tax
|
$
|
1,935
|
|
|
$
|
1,530
|
|
|
$
|
672
|
|
Non-cash transactions
|
|
|
|
|
|
||||||
Fixed maturity securities available-for-sale received in connection with pension risk transfer transactions
|
$
|
3,016
|
|
|
$
|
—
|
|
|
$
|
985
|
|
Brighthouse common stock exchange transaction (Note 3):
|
|
|
|
|
|
||||||
Reduction of long-term debt
|
$
|
944
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Reduction of fair value option securities
|
$
|
1,030
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Disposal of Brighthouse (See Note 3):
|
|
|
|
|
|
||||||
Assets disposed
|
$
|
—
|
|
|
$
|
225,502
|
|
|
$
|
—
|
|
Liabilities disposed
|
—
|
|
|
(210,999
|
)
|
|
—
|
|
|||
Net assets disposed
|
—
|
|
|
14,503
|
|
|
—
|
|
|||
Cash disposed
|
—
|
|
|
(3,456
|
)
|
|
—
|
|
|||
Net non-cash disposed
|
$
|
—
|
|
|
$
|
11,047
|
|
|
$
|
—
|
|
Reduction of fixed maturity securities available-for-sale in connection with a reinsurance transaction
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
224
|
|
Reduction of other invested assets in connection with a reinsurance transaction
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
676
|
|
Deconsolidation of operating joint venture:
|
|
|
|
|
|
||||||
Reduction of fixed maturity securities available-for-sale
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
917
|
|
Reduction of noncontrolling interests
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
373
|
|
•
|
such separate accounts are legally recognized;
|
•
|
assets supporting the contract liabilities are legally insulated from the Company’s general account liabilities;
|
•
|
investments are directed by the contractholder; and
|
•
|
all investment performance, net of contract fees and assessments, is passed through to the contractholder.
|
Accounting Policy
|
Note
|
Insurance
|
4
|
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles
|
5
|
Reinsurance
|
6
|
Investments
|
8
|
Derivatives
|
9
|
Fair Value
|
10
|
Goodwill
|
11
|
Employee Benefit Plans
|
17
|
Income Tax
|
18
|
Litigation Contingencies
|
20
|
•
|
incremental direct costs of contract acquisition, such as commissions;
|
•
|
the portion of an employee’s total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed;
|
•
|
other essential direct costs that would not have been incurred had a policy not been acquired or renewed; and
|
•
|
the costs of direct-response advertising, the primary purpose of which is to elicit sales to customers who could be shown to have responded specifically to the advertising and that results in probable future benefits.
|
Products:
|
In proportion to the following over estimated lives of the contracts:
|
||||
•
|
Nonparticipating and non-dividend-paying traditional contracts:
|
|
Actual and expected future gross premiums.
|
||
|
•
|
Term insurance
|
|
|
|
|
•
|
Nonparticipating whole life insurance
|
|
|
|
|
•
|
Traditional group life insurance
|
|
|
|
|
•
|
Non-medical health insurance
|
|
|
|
|
•
|
Accident & health insurance
|
|
|
|
•
|
Participating, dividend-paying traditional contracts
|
|
Actual and expected future gross margins.
|
||
•
|
Fixed and variable universal life contracts
|
|
Actual and expected future gross profits.
|
||
•
|
Fixed and variable deferred annuity contracts
|
|
|
||
•
|
Credit insurance contracts
|
|
Actual and future earned premiums.
|
||
•
|
Property & casualty insurance contracts
|
|
|
||
•
|
Other short-duration contracts
|
|
|
•
|
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 (“CSEs”).
|
•
|
Freestanding derivatives with positive estimated fair values which are described in “— Derivatives” below.
|
•
|
Tax credit and renewable energy partnerships which derive a significant source of investment return in the form of income tax credits or other tax incentives. Where tax credits are guaranteed by a creditworthy third party, the investment is accounted for under the effective yield method. Otherwise, the investment is accounted for under the equity method. See
Note 18
.
|
•
|
Annuities funding structured settlement claims represent annuities funding claims assumed by the Company in its capacity as a structured settlements assignment company. The annuities are stated at their contract value, which represents the present value of the future periodic claim payments to be provided. The net investment income recognized reflects the amortization of discount of the annuity at its implied effective interest rate. See
Note 3
.
|
•
|
Direct financing leases net investment is equal to the minimum lease payments plus the unguaranteed residual value, less the unearned income. Income is determined by applying the pre-tax internal rate of return to the investment balance. The Company regularly reviews lease receivables for impairment. Certain direct financing leases are linked to inflation.
|
•
|
Leveraged leases net investment is equal to the minimum lease payments plus the unguaranteed residual value, less the unearned income, and is recorded net of non-recourse debt. Income is determined by applying the leveraged lease’s estimated rate of return to the net investment in the lease in those periods in which the net investment at the beginning of the period is positive. Leveraged leases derive investment returns in part from their income tax treatment. The Company regularly reviews residual values for impairment.
|
•
|
Investments in operating joint ventures that engage in insurance underwriting activities are accounted for under the equity method.
|
•
|
Investments in Federal Home Loan Bank (“FHLB”) common stock are carried at redemption value and are considered restricted investments until redeemed by the respective FHLB regional banks (“FHLBanks”).
|
•
|
Funds withheld represent a receivable for amounts contractually withheld by ceding companies in accordance with reinsurance agreements. The Company recognizes interest on funds withheld at rates defined by the terms of the agreement which may be contractually specified or directly related to the underlying investments.
|
Statement of Operations Presentation:
|
Derivative:
|
|
Policyholder benefits and claims
|
•
|
Economic hedges of variable annuity guarantees included in future policy benefits
|
Net investment income
|
•
|
Economic hedges of equity method investments in joint ventures
|
|
•
|
All derivatives held in relation to trading portfolios
|
|
•
|
Derivatives held within 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.
|
•
|
the nature, frequency, and amount of cumulative financial reporting income and losses in recent years;
|
•
|
the jurisdiction in which the deferred tax asset was generated;
|
•
|
the length of time that carryforward can be utilized in the various taxing jurisdictions;
|
•
|
future taxable income exclusive of reversing temporary differences and carryforwards;
|
•
|
future reversals of existing taxable temporary differences;
|
•
|
taxable income in prior carryback years; and
|
•
|
tax planning strategies.
|
Standard
|
Description
|
Effective Date and Method of Adoption
|
Impact on Financial Statements
|
ASU 2018-02,
Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
|
The new guidance allows a reclassification of AOCI to retained earnings for stranded tax effects resulting from the U.S. Tax Reform. Due to the change in corporate tax rates resulting from the U.S. Tax Reform, the Company reported stranded tax effects in AOCI related to unrealized gains and losses on AFS securities, cumulative foreign translation adjustments and deferred costs on pension benefit plans.
|
January 1, 2018, the Company applied the ASU in the period of adoption.
|
The adoption of this guidance resulted in the release of stranded tax effects in AOCI resulting from the U.S. Tax Reform by decreasing retained earnings as of January 1, 2018 by $1.2 billion with a corresponding increase to AOCI. The Company’s accounting policy for the release of stranded tax effects in AOCI is on an aggregate portfolio basis.
|
ASU 2016-01
, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities
, as clarified and amended by ASU 2018-03,
Technical Corrections and Improvements to Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.
|
The new guidance changed the previous accounting guidance related to (i) the classification and measurement of certain equity investments, (ii) the presentation of changes in the fair value of financial liabilities measured under the FVO that are due to instrument-specific credit risk, and (iii) certain disclosures associated with the fair value of financial instruments. There is no longer a requirement to assess equity securities for impairment since such securities are now measured at fair value through net income. Additionally, there is no longer a requirement to assess equity securities for embedded derivatives requiring bifurcation.
|
January 1, 2018, the Company adopted, using a modified retrospective approach.
|
The adoption of this guidance resulted in a $328 million, net of income tax, increase to retained earnings largely offset by a decrease to AOCI that was primarily attributable to $1.7 billion of equity securities previously classified and measured as equity securities AFS. At December 31, 2017, equity securities of $16.0 billion primarily associated with Unit-linked investments were accounted for using the FVO and therefore were unaffected by the new guidance. The Company has included the required disclosures related to equity securities AFS within Note 8.
|
ASU 2014-09,
Revenue from Contracts with Customers (Topic 606
)
|
The new guidance supersedes nearly all existing revenue recognition guidance under GAAP. However, it does not impact the accounting for insurance and investment contracts within the scope of FASB Accounting Standard Codification
Topic 944, Financial Services - Insurance
, leases, financial instruments and certain guarantees. For those contracts that are impacted, the new guidance requires an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled, in exchange for those goods or services.
|
January 1, 2018, the Company adopted, using a modified retrospective approach.
|
The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements other than expanded disclosures in Note 16.
|
Standard
|
Description
|
Effective Date and Method of Adoption
|
Impact on Financial Statements
|
ASU 2018-12,
Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts
|
The new guidance (i) prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts, and requires assumptions for those liability valuations to be updated after contract inception, (ii) requires more market-based product guarantees on certain separate account and other account balance long-duration contracts to be accounted for at fair value, (iii) simplifies the amortization of DAC for virtually all long-duration contracts, and (iv) introduces certain financial statement presentation requirements, as well as significant additional quantitative and qualitative disclosures.
|
January 1, 2021, to be applied retrospectively to January 1, 2019 (with early adoption permitted).
|
The Company has started its implementation efforts and is currently evaluating the impact of the new guidance. Given the nature and extent of the required changes to a significant portion of the Company’s operations, the adoption of this standard is expected to have a material impact on its consolidated financial statements.
|
ASU 2017-12,
Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities
|
The new guidance simplifies the application of hedge accounting in certain situations and amends the hedge accounting model to enable entities to better portray the economics of their risk management activities in their financial statements.
|
January 1, 2019, to be applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings.
|
Upon adoption, the Company will make certain changes to its assessment of hedge effectiveness for fair value hedging relationships, and the Company will also reclassify hedge ineffectiveness for cash flow hedging relationships existing as of the adoption date, which was previously recorded to earnings, to AOCI. The estimated impact of adoption is a decrease to retained earnings of less than $250 million.
|
ASU 2017-08,
Receivables —Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities
|
The new guidance shortens the amortization period for certain callable debt securities held at a premium and requires the premium to be amortized to the earliest call date. However, the new guidance does not require an accounting change for securities held at a discount whose discount continues to be amortized to maturity.
|
January 1, 2019, to be applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings.
|
The adoption of the new guidance will not have a material impact on the Company’s consolidated financial statements.
|
ASU 2017-04,
Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment
|
The new guidance simplifies the current two-step goodwill impairment test by eliminating Step 2 of the test. The new guidance requires a one-step impairment test in which an entity compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any.
|
January 1, 2020, to be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017.
|
The new guidance will reduce the complexity involved with the evaluation of goodwill for impairment. The impact of the new guidance will depend on the outcomes of future goodwill impairment tests.
|
•
|
The Group Benefits business offers 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 ASO arrangements to some employers.
|
•
|
The RIS business offers a broad range of life and annuity-based insurance and investment products, including stable value and pension risk transfer products, institutional income annuities, tort settlements, and capital markets investment products, as well as solutions for funding 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 to 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
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 equity securities, (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) under 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 certain amounts related to net investment income earned on contractholder-directed equity securities;
|
•
|
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.
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Year Ended December 31, 2018
|
|
U.S.
|
|
Asia
|
|
Latin
America
|
|
EMEA
|
|
MetLife
Holdings
|
|
Corporate
& Other
|
|
Total
|
|
Adjustments
|
|
Total
Consolidated
|
||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Premiums
|
|
$
|
28,186
|
|
|
$
|
6,766
|
|
|
$
|
2,760
|
|
|
$
|
2,131
|
|
|
$
|
3,879
|
|
|
$
|
118
|
|
|
$
|
43,840
|
|
|
$
|
—
|
|
|
$
|
43,840
|
|
Universal life and investment-type product policy fees
|
|
1,053
|
|
|
1,630
|
|
|
1,050
|
|
|
431
|
|
|
1,218
|
|
|
—
|
|
|
5,382
|
|
|
120
|
|
|
5,502
|
|
|||||||||
Net investment income
|
|
6,977
|
|
|
3,317
|
|
|
1,239
|
|
|
293
|
|
|
5,379
|
|
|
178
|
|
|
17,383
|
|
|
(1,217
|
)
|
|
16,166
|
|
|||||||||
Other revenues
|
|
821
|
|
|
51
|
|
|
35
|
|
|
66
|
|
|
250
|
|
|
333
|
|
|
1,556
|
|
|
324
|
|
|
1,880
|
|
|||||||||
Net investment gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(298
|
)
|
|
(298
|
)
|
|||||||||
Net derivative gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
851
|
|
|
851
|
|
|||||||||
Total revenues
|
|
37,037
|
|
|
11,764
|
|
|
5,084
|
|
|
2,921
|
|
|
10,726
|
|
|
629
|
|
|
68,161
|
|
|
(220
|
)
|
|
67,941
|
|
|||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
|
27,765
|
|
|
5,326
|
|
|
2,602
|
|
|
1,127
|
|
|
6,833
|
|
|
80
|
|
|
43,733
|
|
|
174
|
|
|
43,907
|
|
|||||||||
Interest credited to policyholder account balances
|
|
1,790
|
|
|
1,465
|
|
|
394
|
|
|
100
|
|
|
944
|
|
|
—
|
|
|
4,693
|
|
|
(680
|
)
|
|
4,013
|
|
|||||||||
Capitalization of DAC
|
|
(449
|
)
|
|
(1,915
|
)
|
|
(377
|
)
|
|
(468
|
)
|
|
(36
|
)
|
|
(8
|
)
|
|
(3,253
|
)
|
|
(1
|
)
|
|
(3,254
|
)
|
|||||||||
Amortization of DAC and VOBA
|
|
477
|
|
|
1,302
|
|
|
209
|
|
|
434
|
|
|
332
|
|
|
6
|
|
|
2,760
|
|
|
215
|
|
|
2,975
|
|
|||||||||
Amortization of negative VOBA
|
|
—
|
|
|
(39
|
)
|
|
(1
|
)
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
(55
|
)
|
|
(1
|
)
|
|
(56
|
)
|
|||||||||
Interest expense on debt
|
|
12
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
9
|
|
|
1,032
|
|
|
1,059
|
|
|
63
|
|
|
1,122
|
|
|||||||||
Other expenses
|
|
3,902
|
|
|
3,840
|
|
|
1,421
|
|
|
1,378
|
|
|
1,081
|
|
|
907
|
|
|
12,529
|
|
|
398
|
|
|
12,927
|
|
|||||||||
Total expenses
|
|
33,497
|
|
|
9,979
|
|
|
4,254
|
|
|
2,556
|
|
|
9,163
|
|
|
2,017
|
|
|
61,466
|
|
|
168
|
|
|
61,634
|
|
|||||||||
Provision for income tax expense (benefit)
|
|
736
|
|
|
548
|
|
|
238
|
|
|
88
|
|
|
308
|
|
|
(825
|
)
|
|
1,093
|
|
|
86
|
|
|
1,179
|
|
|||||||||
Adjusted earnings
|
|
$
|
2,804
|
|
|
$
|
1,237
|
|
|
$
|
592
|
|
|
$
|
277
|
|
|
$
|
1,255
|
|
|
$
|
(563
|
)
|
|
5,602
|
|
|
|
|
|
|||||
Adjustments to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total revenues
|
|
(220
|
)
|
|
|
|
|
|||||||||||||||||||||||||||||
Total expenses
|
|
(168
|
)
|
|
|
|
|
|||||||||||||||||||||||||||||
Provision for income tax (expense) benefit
|
|
(86
|
)
|
|
|
|
|
|||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
|
$
|
5,128
|
|
|
|
|
$
|
5,128
|
|
At December 31, 2018
|
|
U.S.
|
|
Asia (1)
|
|
Latin
America
|
|
EMEA
|
|
MetLife
Holdings
|
|
Corporate
& Other
|
|
Total
|
||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||
Total assets
|
|
$
|
248,174
|
|
|
$
|
146,278
|
|
|
$
|
70,417
|
|
|
$
|
27,829
|
|
|
$
|
166,872
|
|
|
$
|
27,968
|
|
|
$
|
687,538
|
|
Separate account assets
|
|
$
|
71,436
|
|
|
$
|
8,849
|
|
|
$
|
47,757
|
|
|
$
|
5,306
|
|
|
$
|
42,208
|
|
|
$
|
—
|
|
|
$
|
175,556
|
|
Separate account liabilities
|
|
$
|
71,436
|
|
|
$
|
8,849
|
|
|
$
|
47,757
|
|
|
$
|
5,306
|
|
|
$
|
42,208
|
|
|
$
|
—
|
|
|
$
|
175,556
|
|
(1)
|
Total assets includes
$120.0 billion
of assets from the Japan operations which represents
17%
of total consolidated assets.
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Year Ended December 31, 2017
|
|
U.S.
|
|
Asia
|
|
Latin
America
|
|
EMEA
|
|
MetLife
Holdings
|
|
Corporate
& Other
|
|
Total
|
|
Adjustments
|
|
Total
Consolidated
|
||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Premiums
|
|
$
|
23,632
|
|
|
$
|
6,755
|
|
|
$
|
2,693
|
|
|
$
|
2,061
|
|
|
$
|
4,144
|
|
|
$
|
54
|
|
|
$
|
39,339
|
|
|
$
|
(347
|
)
|
|
$
|
38,992
|
|
Universal life and investment-type product policy fees
|
|
1,012
|
|
|
1,584
|
|
|
1,044
|
|
|
405
|
|
|
1,361
|
|
|
1
|
|
|
5,407
|
|
|
103
|
|
|
5,510
|
|
|||||||||
Net investment income
|
|
6,396
|
|
|
2,985
|
|
|
1,219
|
|
|
309
|
|
|
5,607
|
|
|
28
|
|
|
16,544
|
|
|
819
|
|
|
17,363
|
|
|||||||||
Other revenues
|
|
806
|
|
|
43
|
|
|
32
|
|
|
58
|
|
|
244
|
|
|
271
|
|
|
1,454
|
|
|
(113
|
)
|
|
1,341
|
|
|||||||||
Net investment gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(308
|
)
|
|
(308
|
)
|
|||||||||
Net derivative gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(590
|
)
|
|
(590
|
)
|
|||||||||
Total revenues
|
|
31,846
|
|
|
11,367
|
|
|
4,988
|
|
|
2,833
|
|
|
11,356
|
|
|
354
|
|
|
62,744
|
|
|
(436
|
)
|
|
62,308
|
|
|||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
|
23,627
|
|
|
5,075
|
|
|
2,535
|
|
|
1,077
|
|
|
7,000
|
|
|
26
|
|
|
39,340
|
|
|
204
|
|
|
39,544
|
|
|||||||||
Interest credited to policyholder account balances
|
|
1,474
|
|
|
1,351
|
|
|
369
|
|
|
100
|
|
|
1,018
|
|
|
1
|
|
|
4,313
|
|
|
1,294
|
|
|
5,607
|
|
|||||||||
Capitalization of DAC
|
|
(458
|
)
|
|
(1,710
|
)
|
|
(364
|
)
|
|
(414
|
)
|
|
(82
|
)
|
|
(8
|
)
|
|
(3,036
|
)
|
|
34
|
|
|
(3,002
|
)
|
|||||||||
Amortization of DAC and VOBA
|
|
459
|
|
|
1,300
|
|
|
224
|
|
|
357
|
|
|
302
|
|
|
6
|
|
|
2,648
|
|
|
33
|
|
|
2,681
|
|
|||||||||
Amortization of negative VOBA
|
|
—
|
|
|
(111
|
)
|
|
(1
|
)
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
(131
|
)
|
|
(9
|
)
|
|
(140
|
)
|
|||||||||
Interest expense on debt
|
|
11
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
24
|
|
|
1,105
|
|
|
1,145
|
|
|
(16
|
)
|
|
1,129
|
|
|||||||||
Other expenses
|
|
3,682
|
|
|
3,613
|
|
|
1,479
|
|
|
1,376
|
|
|
1,365
|
|
|
894
|
|
|
12,409
|
|
|
544
|
|
|
12,953
|
|
|||||||||
Total expenses
|
|
28,795
|
|
|
9,518
|
|
|
4,247
|
|
|
2,477
|
|
|
9,627
|
|
|
2,024
|
|
|
56,688
|
|
|
2,084
|
|
|
58,772
|
|
|||||||||
Provision for income tax expense (benefit)
|
|
1,024
|
|
|
620
|
|
|
156
|
|
|
59
|
|
|
547
|
|
|
(688
|
)
|
|
1,718
|
|
|
(3,188
|
)
|
|
(1,470
|
)
|
|||||||||
Adjusted earnings
|
|
$
|
2,027
|
|
|
$
|
1,229
|
|
|
$
|
585
|
|
|
$
|
297
|
|
|
$
|
1,182
|
|
|
$
|
(982
|
)
|
|
4,338
|
|
|
|
|
|
|||||
Adjustments to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total revenues
|
|
(436
|
)
|
|
|
|
|
|||||||||||||||||||||||||||||
Total expenses
|
|
(2,084
|
)
|
|
|
|
|
|||||||||||||||||||||||||||||
Provision for income tax (expense) benefit
|
|
3,188
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
|
$
|
5,006
|
|
|
|
|
$
|
5,006
|
|
At December 31, 2017
|
|
U.S.
|
|
Asia (1)
|
|
Latin
America |
|
EMEA
|
|
MetLife
Holdings |
|
Corporate
& Other |
|
Total
|
||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||
Total assets
|
|
$
|
255,428
|
|
|
$
|
136,928
|
|
|
$
|
79,670
|
|
|
$
|
30,500
|
|
|
$
|
183,160
|
|
|
$
|
34,206
|
|
|
$
|
719,892
|
|
Separate account assets
|
|
$
|
81,243
|
|
|
$
|
10,032
|
|
|
$
|
56,218
|
|
|
$
|
5,975
|
|
|
$
|
51,533
|
|
|
$
|
—
|
|
|
$
|
205,001
|
|
Separate account liabilities
|
|
$
|
81,243
|
|
|
$
|
10,032
|
|
|
$
|
56,218
|
|
|
$
|
5,975
|
|
|
$
|
51,533
|
|
|
$
|
—
|
|
|
$
|
205,001
|
|
(1)
|
Total assets includes
$111.0 billion
of assets from the Japan operations which represents
15%
of total consolidated assets.
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Year Ended December 31, 2016
|
|
U.S.
|
|
Asia
|
|
Latin
America
|
|
EMEA
|
|
MetLife
Holdings
|
|
Corporate
& Other
|
|
Total
|
|
Adjustments
|
|
Total
Consolidated
|
||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Premiums
|
|
$
|
21,501
|
|
|
$
|
6,902
|
|
|
$
|
2,529
|
|
|
$
|
2,027
|
|
|
$
|
4,506
|
|
|
$
|
40
|
|
|
$
|
37,505
|
|
|
$
|
(303
|
)
|
|
$
|
37,202
|
|
Universal life and investment-type product policy fees
|
|
989
|
|
|
1,488
|
|
|
1,025
|
|
|
391
|
|
|
1,436
|
|
|
2
|
|
|
5,331
|
|
|
152
|
|
|
5,483
|
|
|||||||||
Net investment income
|
|
6,206
|
|
|
2,707
|
|
|
1,084
|
|
|
318
|
|
|
5,944
|
|
|
178
|
|
|
16,437
|
|
|
353
|
|
|
16,790
|
|
|||||||||
Other revenues
|
|
784
|
|
|
61
|
|
|
34
|
|
|
73
|
|
|
581
|
|
|
110
|
|
|
1,643
|
|
|
42
|
|
|
1,685
|
|
|||||||||
Net investment gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
317
|
|
|
317
|
|
|||||||||
Net derivative gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(690
|
)
|
|
(690
|
)
|
|||||||||
Total revenues
|
|
29,480
|
|
|
11,158
|
|
|
4,672
|
|
|
2,809
|
|
|
12,467
|
|
|
330
|
|
|
60,916
|
|
|
(129
|
)
|
|
60,787
|
|
|||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
|
21,591
|
|
|
5,211
|
|
|
2,443
|
|
|
1,067
|
|
|
7,523
|
|
|
41
|
|
|
37,876
|
|
|
(295
|
)
|
|
37,581
|
|
|||||||||
Interest credited to policyholder account balances
|
|
1,302
|
|
|
1,298
|
|
|
328
|
|
|
112
|
|
|
1,042
|
|
|
6
|
|
|
4,088
|
|
|
1,088
|
|
|
5,176
|
|
|||||||||
Capitalization of DAC
|
|
(471
|
)
|
|
(1,668
|
)
|
|
(321
|
)
|
|
(403
|
)
|
|
(281
|
)
|
|
(7
|
)
|
|
(3,151
|
)
|
|
(1
|
)
|
|
(3,152
|
)
|
|||||||||
Amortization of DAC and VOBA
|
|
471
|
|
|
1,236
|
|
|
184
|
|
|
408
|
|
|
736
|
|
|
8
|
|
|
3,043
|
|
|
(325
|
)
|
|
2,718
|
|
|||||||||
Amortization of negative VOBA
|
|
—
|
|
|
(208
|
)
|
|
(1
|
)
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
(222
|
)
|
|
(47
|
)
|
|
(269
|
)
|
|||||||||
Interest expense on debt
|
|
9
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
57
|
|
|
1,139
|
|
|
1,207
|
|
|
(50
|
)
|
|
1,157
|
|
|||||||||
Other expenses
|
|
3,706
|
|
|
3,586
|
|
|
1,336
|
|
|
1,323
|
|
|
2,392
|
|
|
597
|
|
|
12,940
|
|
|
355
|
|
|
13,295
|
|
|||||||||
Total expenses
|
|
26,608
|
|
|
9,455
|
|
|
3,971
|
|
|
2,494
|
|
|
11,469
|
|
|
1,784
|
|
|
55,781
|
|
|
725
|
|
|
56,506
|
|
|||||||||
Provision for income tax expense (benefit)
|
|
976
|
|
|
479
|
|
|
158
|
|
|
42
|
|
|
292
|
|
|
(948
|
)
|
|
999
|
|
|
(306
|
)
|
|
693
|
|
|||||||||
Adjusted earnings
|
|
$
|
1,896
|
|
|
$
|
1,224
|
|
|
$
|
543
|
|
|
$
|
273
|
|
|
$
|
706
|
|
|
$
|
(506
|
)
|
|
4,136
|
|
|
|
|
|
|||||
Adjustments to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total revenues
|
|
(129
|
)
|
|
|
|
|
|||||||||||||||||||||||||||||
Total expenses
|
|
(725
|
)
|
|
|
|
|
|||||||||||||||||||||||||||||
Provision for income tax (expense) benefit
|
|
306
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
|
$
|
3,588
|
|
|
|
|
$
|
3,588
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Life insurance
|
$
|
20,550
|
|
|
$
|
20,330
|
|
|
$
|
20,436
|
|
Accident & health insurance
|
14,489
|
|
|
14,002
|
|
|
14,128
|
|
|||
Annuities
|
10,990
|
|
|
6,999
|
|
|
5,552
|
|
|||
Property and casualty insurance
|
3,651
|
|
|
3,613
|
|
|
3,560
|
|
|||
Other
|
1,542
|
|
|
899
|
|
|
694
|
|
|||
Total
|
$
|
51,222
|
|
|
$
|
45,843
|
|
|
$
|
44,370
|
|
|
Included on Consolidated
Statements of Operations
|
|
Excluded from Consolidated Statements of Operations
|
||||||||||||
|
Years
Ended
December 31,
|
|
Years
Ended December 31, |
||||||||||||
|
2018
|
|
2017 (1)
|
|
2017 (2)
|
|
2016
|
||||||||
|
(In millions)
|
||||||||||||||
Premiums
|
|
|
|
|
|
|
|
||||||||
Reinsurance assumed
|
$
|
401
|
|
|
$
|
183
|
|
|
$
|
248
|
|
|
$
|
462
|
|
Reinsurance ceded
|
(13
|
)
|
|
(4
|
)
|
|
(7
|
)
|
|
(9
|
)
|
||||
Net premiums
|
$
|
388
|
|
|
$
|
179
|
|
|
$
|
241
|
|
|
$
|
453
|
|
Universal life and investment-type product policy fees
|
|
|
|
|
|
|
|
||||||||
Reinsurance assumed
|
$
|
7
|
|
|
$
|
(4
|
)
|
|
$
|
(6
|
)
|
|
$
|
(2
|
)
|
Reinsurance ceded
|
(96
|
)
|
|
(44
|
)
|
|
(55
|
)
|
|
(102
|
)
|
||||
Net universal life and investment-type product policy fees
|
$
|
(89
|
)
|
|
$
|
(48
|
)
|
|
$
|
(61
|
)
|
|
$
|
(104
|
)
|
Policyholder benefits and claims
|
|
|
|
|
|
|
|
||||||||
Reinsurance assumed
|
$
|
328
|
|
|
$
|
150
|
|
|
$
|
196
|
|
|
$
|
385
|
|
Reinsurance ceded
|
(36
|
)
|
|
(22
|
)
|
|
(16
|
)
|
|
(23
|
)
|
||||
Net policyholder benefits and claims
|
$
|
292
|
|
|
$
|
128
|
|
|
$
|
180
|
|
|
$
|
362
|
|
Interest credited to policyholder account balances
|
|
|
|
|
|
|
|
||||||||
Reinsurance assumed
|
$
|
14
|
|
|
$
|
6
|
|
|
$
|
10
|
|
|
$
|
16
|
|
Reinsurance ceded
|
(71
|
)
|
|
(30
|
)
|
|
(42
|
)
|
|
(75
|
)
|
||||
Net interest credited to policyholder account balances
|
$
|
(57
|
)
|
|
$
|
(24
|
)
|
|
$
|
(32
|
)
|
|
$
|
(59
|
)
|
Other expenses
|
|
|
|
|
|
|
|
||||||||
Reinsurance assumed
|
$
|
105
|
|
|
$
|
39
|
|
|
$
|
10
|
|
|
$
|
88
|
|
Reinsurance ceded
|
(29
|
)
|
|
7
|
|
|
(28
|
)
|
|
(29
|
)
|
||||
Net other expenses
|
$
|
76
|
|
|
$
|
46
|
|
|
$
|
(18
|
)
|
|
$
|
59
|
|
(1)
|
Includes transactions after the Separation.
|
(2)
|
Includes transactions prior to the Separation.
|
|
December 31, 2017
|
||||||
|
Assumed
|
|
Ceded
|
||||
|
(In millions)
|
||||||
Assets
|
|
|
|
||||
Premiums, reinsurance and other receivables
|
$
|
167
|
|
|
$
|
1,793
|
|
Deferred policy acquisition costs and value of business acquired
|
384
|
|
|
(40
|
)
|
||
Total assets
|
$
|
551
|
|
|
$
|
1,753
|
|
Liabilities
|
|
|
|
||||
Future policy benefits
|
$
|
1,734
|
|
|
$
|
—
|
|
Other policy-related balances
|
119
|
|
|
28
|
|
||
Other liabilities
|
1,458
|
|
|
19
|
|
||
Total liabilities
|
$
|
3,311
|
|
|
$
|
47
|
|
|
|
For the Years Ended December 31,
|
||||||
|
|
2017 (1)
|
|
2016
|
||||
|
|
(In millions)
|
||||||
Revenues
|
|
|
|
|
||||
Premiums
|
|
$
|
820
|
|
|
$
|
1,951
|
|
Universal life and investment-type product policy fees
|
|
2,201
|
|
|
3,724
|
|
||
Net investment income
|
|
1,783
|
|
|
3,157
|
|
||
Other revenues
|
|
150
|
|
|
74
|
|
||
Total net investment gains (losses)
|
|
(48
|
)
|
|
(140
|
)
|
||
Net derivative gains (losses)
|
|
(1,061
|
)
|
|
(5,886
|
)
|
||
Total revenues
|
|
3,845
|
|
|
2,880
|
|
||
Expenses
|
|
|
|
|
||||
Policyholder benefits and claims
|
|
2,217
|
|
|
4,487
|
|
||
Interest credited to policyholder account balances
|
|
620
|
|
|
1,107
|
|
||
Policyholder dividends
|
|
16
|
|
|
34
|
|
||
Goodwill impairment
|
|
—
|
|
|
260
|
|
||
Other expenses
|
|
853
|
|
|
1,333
|
|
||
Total expenses
|
|
3,706
|
|
|
7,221
|
|
||
Income (loss) from discontinued operations before provision for income tax and loss on disposal of discontinued operations
|
|
139
|
|
|
(4,341
|
)
|
||
Provision for income tax expense (benefit)
|
|
(46
|
)
|
|
(1,607
|
)
|
||
Income (loss) from discontinued operations before loss on disposal of discontinued operations, net of income tax
|
|
185
|
|
|
(2,734
|
)
|
||
Transaction costs associated with the Separation, net of income tax
|
|
(216
|
)
|
|
—
|
|
||
Tax charges associated with the Separation
|
|
(955
|
)
|
|
—
|
|
||
Income (loss) on disposal of discontinued operations, net of income tax
|
|
(1,171
|
)
|
|
—
|
|
||
Income (loss) from discontinued operations, net of income tax
|
|
$
|
(986
|
)
|
|
$
|
(2,734
|
)
|
(1)
|
Includes transactions prior to the Separation.
|
|
For the Years Ended December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(In millions)
|
||||||
Net cash provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
1,329
|
|
|
$
|
3,697
|
|
Investing activities
|
$
|
(2,732
|
)
|
|
$
|
4,674
|
|
Financing activities
|
$
|
(367
|
)
|
|
$
|
(4,715
|
)
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(In millions)
|
||||||
U.S.
|
|
$
|
141,641
|
|
|
$
|
136,065
|
|
Asia
|
|
108,456
|
|
|
99,404
|
|
||
Latin America
|
|
16,131
|
|
|
16,758
|
|
||
EMEA
|
|
17,069
|
|
|
19,579
|
|
||
MetLife Holdings
|
|
102,371
|
|
|
103,372
|
|
||
Corporate & Other
|
|
1,334
|
|
|
829
|
|
||
Total
|
|
$
|
387,002
|
|
|
$
|
376,007
|
|
Product Type:
|
Measurement Assumptions:
|
Participating life
|
Aggregate of (i) net level premium reserves for death and endowment policy benefits (calculated based upon the non-forfeiture interest rate, ranging from 3% to 7% for U.S. business and less than 1% to 14% for non-U.S. business and mortality rates guaranteed in calculating the cash surrender values described in such contracts); and (ii) the liability for terminal dividends for U.S. business.
|
Nonparticipating life
|
Aggregate of the present value of future expected benefit payments and related expenses less the present value of future expected net premiums. Assumptions as to mortality and persistency are based upon the Company’s experience when the basis of the liability is established. Interest rate assumptions for the aggregate future policy benefit liabilities range from 2% to 11% for U.S. business and less than 1% to 13% for non-U.S. business.
|
I
ndividual and group
traditional fixed annuities
after annuitization
|
Present value of future expected payments. Interest rate assumptions used in establishing such liabilities range from 1% to 11% for U.S. business and less than 1% to 11% for non-U.S. business.
|
Non-medical health
insurance
|
The net level premium method and assumptions as to future morbidity, withdrawals and interest, which provide a margin for adverse deviation. Interest rate assumptions used in establishing such liabilities range from 1% to 7% (primarily related to U.S. business).
|
Disabled lives
|
Present value of benefits method and experience assumptions as to claim terminations, expenses and interest. Interest rate assumptions used in establishing such liabilities range from 2% to 8% for U.S. business and less than 1% to 9% for non-U.S. business.
|
Property and casualty
insurance
|
The amount estimated for claims that have been reported but not settled and claims incurred but not reported are based upon the Company’s historical experience and other actuarial assumptions that consider the effects of current developments, anticipated trends and risk management programs, reduced for anticipated salvage and subrogation.
|
Guarantee:
|
|
Measurement Assumptions:
|
|||
GMDBs
|
•
|
A return of purchase payment upon death even if the account value is reduced to zero.
|
|
•
|
Present value of expected death benefits in excess of the projected account balance recognizing the excess ratably over the accumulation period based on the present value of total expected assessments.
|
|
•
|
An enhanced death benefit may be available for an additional fee.
|
|
•
|
Assumptions are consistent with those used for amortizing DAC, and are thus subject to the same variability and risk.
|
|
|
|
|
•
|
Investment performance and volatility assumptions are consistent with the historical experience of the appropriate underlying equity index, such as the S&P 500 Index.
|
|
|
|
|
•
|
Benefit assumptions are based on the average benefits payable over a range of scenarios.
|
GMIBs
|
•
|
After a specified period of time determined at the time of issuance of the variable annuity contract, a minimum accumulation of purchase payments, even if the account value is reduced to zero, that can be annuitized to receive a monthly income stream that is not less than a specified amount.
|
|
•
|
Present value of expected income benefits in excess of the projected account balance at any future date of annuitization and recognizing the excess ratably over the accumulation period based on present value of total expected assessments.
|
|
•
|
Certain contracts also provide for a guaranteed lump sum return of purchase premium in lieu of the annuitization benefit.
|
|
•
|
Assumptions are consistent with those used for estimating GMDB liabilities.
|
|
|
|
|
•
|
Calculation incorporates an assumption for the percentage of the potential annuitizations that may be elected by the contractholder.
|
GMWBs
|
•
|
A return of purchase payment via partial withdrawals, even if the account value is reduced to zero, provided that cumulative withdrawals in a contract year do not exceed a certain limit.
|
|
•
|
Expected value of the life contingent payments and expected assessments using assumptions consistent with those used for estimating the GMDB liabilities.
|
|
•
|
Certain contracts include guaranteed withdrawals that are life contingent.
|
|
|
|
|
Annuity Contracts
|
|
Universal and Variable
Life Contracts |
|
|
||||||||||||||
|
GMDBs and GMWBs
|
|
GMIBs
|
|
Secondary
Guarantees |
|
Paid-Up
Guarantees |
|
Total
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Direct and Assumed:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at January 1, 2016
|
$
|
364
|
|
|
$
|
524
|
|
|
$
|
2,726
|
|
|
$
|
306
|
|
|
$
|
3,920
|
|
Incurred guaranteed benefits (1)
|
102
|
|
|
78
|
|
|
291
|
|
|
25
|
|
|
496
|
|
|||||
Paid guaranteed benefits
|
(15
|
)
|
|
(1
|
)
|
|
(28
|
)
|
|
—
|
|
|
(44
|
)
|
|||||
Balance at December 31, 2016
|
451
|
|
|
601
|
|
|
2,989
|
|
|
331
|
|
|
4,372
|
|
|||||
Incurred guaranteed benefits (1)
|
91
|
|
|
121
|
|
|
233
|
|
|
16
|
|
|
461
|
|
|||||
Paid guaranteed benefits
|
(14
|
)
|
|
(2
|
)
|
|
(34
|
)
|
|
—
|
|
|
(50
|
)
|
|||||
Balance at December 31, 2017
|
528
|
|
|
720
|
|
|
3,188
|
|
|
347
|
|
|
4,783
|
|
|||||
Incurred guaranteed benefits (1)
|
(78
|
)
|
|
178
|
|
|
291
|
|
|
12
|
|
|
403
|
|
|||||
Paid guaranteed benefits
|
(22
|
)
|
|
—
|
|
|
(37
|
)
|
|
—
|
|
|
(59
|
)
|
|||||
Balance at December 31, 2018
|
$
|
428
|
|
|
$
|
898
|
|
|
$
|
3,442
|
|
|
$
|
359
|
|
|
$
|
5,127
|
|
Ceded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at January 1, 2016
|
$
|
19
|
|
|
$
|
6
|
|
|
$
|
218
|
|
|
$
|
214
|
|
|
$
|
457
|
|
Incurred guaranteed benefits
|
—
|
|
|
(1
|
)
|
|
(27
|
)
|
|
17
|
|
|
(11
|
)
|
|||||
Paid guaranteed benefits
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Balance at December 31, 2016
|
24
|
|
|
5
|
|
|
191
|
|
|
231
|
|
|
451
|
|
|||||
Incurred guaranteed benefits
|
4
|
|
|
1
|
|
|
50
|
|
|
11
|
|
|
66
|
|
|||||
Paid guaranteed benefits
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
Balance at December 31, 2017
|
34
|
|
|
6
|
|
|
241
|
|
|
242
|
|
|
523
|
|
|||||
Incurred guaranteed benefits
|
(38
|
)
|
|
4
|
|
|
28
|
|
|
9
|
|
|
3
|
|
|||||
Paid guaranteed benefits
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
Balance at December 31, 2018
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
269
|
|
|
$
|
251
|
|
|
$
|
530
|
|
Net:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at January 1, 2016
|
$
|
345
|
|
|
$
|
518
|
|
|
$
|
2,508
|
|
|
$
|
92
|
|
|
$
|
3,463
|
|
Incurred guaranteed benefits
|
102
|
|
|
79
|
|
|
318
|
|
|
8
|
|
|
507
|
|
|||||
Paid guaranteed benefits
|
(20
|
)
|
|
(1
|
)
|
|
(28
|
)
|
|
—
|
|
|
(49
|
)
|
|||||
Balance at December 31, 2016
|
427
|
|
|
596
|
|
|
2,798
|
|
|
100
|
|
|
3,921
|
|
|||||
Incurred guaranteed benefits
|
87
|
|
|
120
|
|
|
183
|
|
|
5
|
|
|
395
|
|
|||||
Paid guaranteed benefits
|
(20
|
)
|
|
(2
|
)
|
|
(34
|
)
|
|
—
|
|
|
(56
|
)
|
|||||
Balance at December 31, 2017
|
494
|
|
|
714
|
|
|
2,947
|
|
|
105
|
|
|
4,260
|
|
|||||
Incurred guaranteed benefits
|
(40
|
)
|
|
174
|
|
|
263
|
|
|
3
|
|
|
400
|
|
|||||
Paid guaranteed benefits
|
(26
|
)
|
|
—
|
|
|
(37
|
)
|
|
—
|
|
|
(63
|
)
|
|||||
Balance at December 31, 2018
|
$
|
428
|
|
|
$
|
888
|
|
|
$
|
3,173
|
|
|
$
|
108
|
|
|
$
|
4,597
|
|
(1)
|
Secondary guarantees include the effects of foreign currency translation of
$62 million
,
$78 million
and
$119 million
at
December 31, 2018
,
2017
and
2016
, respectively.
|
|
|
December 31,
|
|||||||||||||||||||
|
|
2018
|
|
|
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)
|
|
$
|
56,235
|
|
|
|
$
|
21,628
|
|
|
|
$
|
66,724
|
|
|
|
$
|
26,223
|
|
|
|
Separate account value (1)
|
|
$
|
37,342
|
|
|
|
$
|
19,839
|
|
|
|
$
|
45,431
|
|
|
|
$
|
24,336
|
|
|
|
Net amount at risk (2)
|
|
$
|
2,768
|
|
(4)
|
|
$
|
483
|
|
(5)
|
|
|
$
|
1,238
|
|
(4)
|
|
$
|
525
|
|
(5)
|
Average attained age of contractholders
|
|
66 years
|
|
|
|
65 years
|
|
|
|
65 years
|
|
|
|
65 years
|
|
|
|||||
Other Annuity Guarantees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total account value (1), (3)
|
|
N/A
|
|
|
|
$
|
1,272
|
|
|
|
N/A
|
|
|
|
$
|
1,424
|
|
|
|||
Net amount at risk
|
|
N/A
|
|
|
|
$
|
489
|
|
(6
|
)
|
|
N/A
|
|
|
|
$
|
569
|
|
(6)
|
||
Average attained age of contractholders
|
|
N/A
|
|
|
|
50 years
|
|
|
|
N/A
|
|
|
|
50 years
|
|
|
|
|
December 31,
|
||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||
|
|
Secondary
Guarantees |
|
Paid-Up
Guarantees |
|
Secondary
Guarantees |
|
Paid-Up
Guarantees |
||||||||
|
|
(Dollars in millions)
|
||||||||||||||
Universal and Variable Life Contracts:
|
|
|
|
|
|
|
|
|
||||||||
Total account value (1), (3)
|
|
$
|
8,943
|
|
|
$
|
3,070
|
|
|
$
|
9,036
|
|
|
$
|
3,207
|
|
Net amount at risk (7)
|
|
$
|
64,154
|
|
|
$
|
15,539
|
|
|
$
|
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 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.
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(In millions)
|
||||||
FHLB of New York
|
|
$
|
724
|
|
|
$
|
733
|
|
FHLB of Des Moines
|
|
$
|
17
|
|
|
$
|
35
|
|
FHLB of Pittsburgh
|
|
$
|
19
|
|
|
$
|
11
|
|
|
|
Liability
|
|
Collateral
|
||||||||||||||
|
|
December 31,
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||
|
|
(In millions)
|
||||||||||||||||
FHLB of New York (1)
|
|
$
|
14,245
|
|
|
$
|
14,445
|
|
|
$
|
16,557
|
|
(2)
|
|
$
|
16,605
|
|
(2)
|
Farmer Mac (3)
|
|
$
|
2,550
|
|
|
$
|
2,550
|
|
|
$
|
2,639
|
|
|
|
$
|
2,644
|
|
|
FHLB of Des Moines (1)
|
|
$
|
425
|
|
|
$
|
625
|
|
|
$
|
709
|
|
(2)
|
|
$
|
701
|
|
(2)
|
FHLB of Pittsburgh (1)
|
|
$
|
450
|
|
|
$
|
250
|
|
|
$
|
590
|
|
(2)
|
|
$
|
311
|
|
(2)
|
(1)
|
Represents funding agreements issued to the applicable FHLBank in exchange for cash and for which such FHLBank has been granted a lien on certain assets, some of which are in the custody of such FHLBank, including residential mortgage-backed securities (“RMBS”), to collateralize obligations under advances evidenced by funding agreements. The applicable subsidiary of the Company is permitted to withdraw any portion of the collateral in the custody of such FHLBank as long as there is no event of default and the remaining qualified collateral is sufficient to satisfy the collateral maintenance level. Upon any event of default by such subsidiary, the applicable FHLBank’s recovery on the collateral is limited to the amount of such subsidiary’s liability to such FHLBank.
|
(2)
|
Advances are collateralized by mortgage-backed securities. The amount of collateral presented is at estimated fair value.
|
(3)
|
Represents funding agreements issued to a subsidiary of Farmer Mac, as well as certain SPEs that have issued debt securities for which payment of interest and principal is secured by such funding agreements, and such debt securities are also guaranteed as to payment of interest and principal by Farmer Mac. The obligations under these funding agreements are secured by a pledge of certain eligible agricultural mortgage loans and may, under certain circumstances, be secured by other qualified collateral. The amount of collateral presented is at carrying value.
|
|
|
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance
|
|
At December 31, 2018
|
||||||||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
Total IBNR
Liabilities Plus
Expected
Development on
Reported Claims
|
|
Cumulative
Number of
Reported
Claims
|
||||||||||||||||||||||||||||||||
|
|
(Unaudited)
|
|
|
|
|
||||||||||||||||||||||||||||||||
Incurral Year
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
|
||||||||||||||||||||
|
|
(Dollars in millions)
|
||||||||||||||||||||||||||||||||||||
2011
|
|
$
|
6,318
|
|
|
$
|
6,290
|
|
|
$
|
6,293
|
|
|
$
|
6,269
|
|
|
$
|
6,287
|
|
|
$
|
6,295
|
|
|
$
|
6,294
|
|
|
$
|
6,295
|
|
|
$
|
1
|
|
|
207,608
|
2012
|
|
|
|
6,503
|
|
|
6,579
|
|
|
6,569
|
|
|
6,546
|
|
|
6,568
|
|
|
6,569
|
|
|
6,569
|
|
|
1
|
|
|
209,047
|
||||||||||
2013
|
|
|
|
|
|
6,637
|
|
|
6,713
|
|
|
6,719
|
|
|
6,720
|
|
|
6,730
|
|
|
6,720
|
|
|
3
|
|
|
211,341
|
|||||||||||
2014
|
|
|
|
|
|
|
|
6,986
|
|
|
6,919
|
|
|
6,913
|
|
|
6,910
|
|
|
6,914
|
|
|
5
|
|
|
213,388
|
||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
7,040
|
|
|
7,015
|
|
|
7,014
|
|
|
7,021
|
|
|
11
|
|
|
213,243
|
|||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
7,125
|
|
|
7,085
|
|
|
7,095
|
|
|
14
|
|
|
210,706
|
||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,432
|
|
|
7,418
|
|
|
31
|
|
|
246,364
|
|||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,757
|
|
|
899
|
|
|
203,329
|
||||||||||||||||
Total
|
|
55,789
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance
|
|
(53,786
|
)
|
|
|
|
|
|||||||||||||||||||||||||||||||
All outstanding liabilities for incurral years prior to 2011, net of reinsurance
|
|
9
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total unpaid claims and claim adjustment expenses, net of reinsurance
|
|
$
|
2,012
|
|
|
|
|
|
|
|
Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
||||||||||||||||||||||||||||||
|
|
(Unaudited)
|
|
|
||||||||||||||||||||||||||||
Incurral Year
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||
2011
|
|
$
|
4,982
|
|
|
$
|
6,194
|
|
|
$
|
6,239
|
|
|
$
|
6,256
|
|
|
$
|
6,281
|
|
|
$
|
6,290
|
|
|
$
|
6,292
|
|
|
$
|
6,295
|
|
2012
|
|
|
|
5,132
|
|
|
6,472
|
|
|
6,518
|
|
|
6,532
|
|
|
6,558
|
|
|
6,565
|
|
|
6,566
|
|
|||||||||
2013
|
|
|
|
|
|
5,216
|
|
|
6,614
|
|
|
6,664
|
|
|
6,678
|
|
|
6,711
|
|
|
6,715
|
|
||||||||||
2014
|
|
|
|
|
|
|
|
5,428
|
|
|
6,809
|
|
|
6,858
|
|
|
6,869
|
|
|
6,902
|
|
|||||||||||
2015
|
|
|
|
|
|
|
|
|
|
5,524
|
|
|
6,913
|
|
|
6,958
|
|
|
6,974
|
|
||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
5,582
|
|
|
6,980
|
|
|
7,034
|
|
|||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,761
|
|
|
7,292
|
|
||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,008
|
|
|||||||||||||||
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance
|
|
$
|
53,786
|
|
|
|
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
|
||||||||||||||
Years
|
|
1
|
|
2
|
|
3
|
|
4
|
|
5
|
|
6
|
|
7
|
|
8
|
Group Life - Term
|
|
78.2%
|
|
20.2%
|
|
0.7%
|
|
0.2%
|
|
0.4%
|
|
0.1%
|
|
—%
|
|
—%
|
|
|
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance
|
|
At December 31, 2018
|
||||||||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
Total IBNR
Liabilities Plus
Expected
Development on
Reported Claims
|
|
Cumulative
Number of
Reported
Claims
|
||||||||||||||||||||||||||||||||
|
|
(Unaudited)
|
|
|
|
|
||||||||||||||||||||||||||||||||
Incurral Year
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
|
||||||||||||||||||||
|
|
(Dollars in millions)
|
||||||||||||||||||||||||||||||||||||
2011
|
|
$
|
955
|
|
|
$
|
916
|
|
|
$
|
894
|
|
|
$
|
914
|
|
|
$
|
924
|
|
|
$
|
923
|
|
|
$
|
918
|
|
|
$
|
917
|
|
|
$
|
—
|
|
|
21,643
|
2012
|
|
|
|
966
|
|
|
979
|
|
|
980
|
|
|
1,014
|
|
|
1,034
|
|
|
1,037
|
|
|
1,021
|
|
|
—
|
|
|
20,085
|
||||||||||
2013
|
|
|
|
|
|
1,008
|
|
|
1,027
|
|
|
1,032
|
|
|
1,049
|
|
|
1,070
|
|
|
1,069
|
|
|
—
|
|
|
21,135
|
|||||||||||
2014
|
|
|
|
|
|
|
|
1,076
|
|
|
1,077
|
|
|
1,079
|
|
|
1,101
|
|
|
1,109
|
|
|
—
|
|
|
22,846
|
||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
1,082
|
|
|
1,105
|
|
|
1,093
|
|
|
1,100
|
|
|
—
|
|
|
21,177
|
|||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
1,131
|
|
|
1,139
|
|
|
1,159
|
|
|
6
|
|
|
17,897
|
||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,244
|
|
|
1,202
|
|
|
29
|
|
|
15,968
|
|||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,240
|
|
|
621
|
|
|
8,208
|
||||||||||||||||
Total
|
|
8,817
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance
|
|
(3,815
|
)
|
|
|
|
|
|||||||||||||||||||||||||||||||
All outstanding liabilities for incurral years prior to 2011, net of reinsurance
|
|
2,110
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total unpaid claims and claim adjustment expenses, net of reinsurance
|
|
$
|
7,112
|
|
|
|
|
|
|
|
Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
||||||||||||||||||||||||||||||
|
|
(Unaudited)
|
|
|
||||||||||||||||||||||||||||
Incurral Year
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||
2011
|
|
$
|
44
|
|
|
$
|
217
|
|
|
$
|
337
|
|
|
$
|
411
|
|
|
$
|
478
|
|
|
$
|
537
|
|
|
$
|
588
|
|
|
$
|
635
|
|
2012
|
|
|
|
43
|
|
|
229
|
|
|
365
|
|
|
453
|
|
|
524
|
|
|
591
|
|
|
648
|
|
|||||||||
2013
|
|
|
|
|
|
43
|
|
|
234
|
|
|
382
|
|
|
475
|
|
|
551
|
|
|
622
|
|
||||||||||
2014
|
|
|
|
|
|
|
|
51
|
|
|
266
|
|
|
428
|
|
|
526
|
|
|
609
|
|
|||||||||||
2015
|
|
|
|
|
|
|
|
|
|
50
|
|
|
264
|
|
|
427
|
|
|
524
|
|
||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
49
|
|
|
267
|
|
|
433
|
|
|||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
56
|
|
|
290
|
|
||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
54
|
|
|||||||||||||||
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance
|
|
$
|
3,815
|
|
|
|
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
|
||||||||||||||
Years
|
|
1
|
|
2
|
|
3
|
|
4
|
|
5
|
|
6
|
|
7
|
|
8
|
Group Long-Term Disability
|
|
4.4%
|
|
18.9%
|
|
14.0%
|
|
8.6%
|
|
7.2%
|
|
6.5%
|
|
5.6%
|
|
5.1%
|
|
|
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance
|
|
At December 31, 2018
|
||||||||||||||||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
Total IBNR
Liabilities Plus
Expected
Development on
Reported Claims
|
|
Cumulative
Number of
Reported
Claims
|
||||||||||||||||||||||||||||||||||||||||
|
|
(Unaudited)
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
Incurral Year
|
|
2009
|
|
2010
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
|
||||||||||||||||||||||||
|
|
(Dollars in millions)
|
||||||||||||||||||||||||||||||||||||||||||||
2009
|
|
$
|
862
|
|
|
$
|
877
|
|
|
$
|
853
|
|
|
$
|
826
|
|
|
$
|
823
|
|
|
$
|
817
|
|
|
$
|
815
|
|
|
$
|
815
|
|
|
$
|
814
|
|
|
$
|
814
|
|
|
$
|
—
|
|
|
204,751
|
2010
|
|
|
|
863
|
|
|
873
|
|
|
853
|
|
|
847
|
|
|
833
|
|
|
826
|
|
|
825
|
|
|
822
|
|
|
823
|
|
|
—
|
|
|
204,481
|
||||||||||||
2011
|
|
|
|
|
|
863
|
|
|
876
|
|
|
869
|
|
|
855
|
|
|
846
|
|
|
843
|
|
|
843
|
|
|
842
|
|
|
1
|
|
|
204,974
|
|||||||||||||
2012
|
|
|
|
|
|
|
|
882
|
|
|
881
|
|
|
869
|
|
|
851
|
|
|
846
|
|
|
847
|
|
|
846
|
|
|
1
|
|
|
199,362
|
||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
911
|
|
|
900
|
|
|
882
|
|
|
878
|
|
|
876
|
|
|
876
|
|
|
3
|
|
|
204,367
|
|||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
897
|
|
|
910
|
|
|
913
|
|
|
910
|
|
|
911
|
|
|
6
|
|
|
207,572
|
||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
975
|
|
|
984
|
|
|
979
|
|
|
980
|
|
|
14
|
|
|
212,693
|
|||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,012
|
|
|
1,002
|
|
|
997
|
|
|
36
|
|
|
210,627
|
||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
957
|
|
|
960
|
|
|
64
|
|
|
190,601
|
|||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
938
|
|
|
166
|
|
|
167,521
|
||||||||||||||||||||
Total
|
|
8,987
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance
|
|
(7,854
|
)
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
All outstanding liabilities for incurral years prior to 2009, net of reinsurance
|
|
27
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
Total unpaid claims and claim adjustment expenses, net of reinsurance
|
|
$
|
1,160
|
|
|
|
|
|
|
|
Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||||
|
|
(Unaudited)
|
|
|
||||||||||||||||||||||||||||||||||||
Incurral Year
|
|
2009
|
|
2010
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
||||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||||||
2009
|
|
$
|
321
|
|
|
$
|
563
|
|
|
$
|
681
|
|
|
$
|
755
|
|
|
$
|
789
|
|
|
$
|
803
|
|
|
$
|
810
|
|
|
$
|
813
|
|
|
$
|
813
|
|
|
$
|
814
|
|
2010
|
|
|
|
319
|
|
|
572
|
|
|
695
|
|
|
762
|
|
|
796
|
|
|
810
|
|
|
816
|
|
|
818
|
|
|
820
|
|
|||||||||||
2011
|
|
|
|
|
|
324
|
|
|
590
|
|
|
711
|
|
|
777
|
|
|
810
|
|
|
825
|
|
|
831
|
|
|
835
|
|
||||||||||||
2012
|
|
|
|
|
|
|
|
333
|
|
|
600
|
|
|
715
|
|
|
783
|
|
|
815
|
|
|
831
|
|
|
840
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
346
|
|
|
618
|
|
|
743
|
|
|
809
|
|
|
843
|
|
|
859
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
352
|
|
|
648
|
|
|
777
|
|
|
844
|
|
|
884
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
384
|
|
|
691
|
|
|
822
|
|
|
903
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
396
|
|
|
702
|
|
|
842
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
379
|
|
|
686
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
371
|
|
|||||||||||||||||||
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance
|
|
$
|
7,854
|
|
|
|
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
|
||||||||||||||||||
Years
|
|
1
|
|
2
|
|
3
|
|
4
|
|
5
|
|
6
|
|
7
|
|
8
|
|
9
|
|
10
|
Auto Liability
|
|
39.2%
|
|
31.2%
|
|
14.2%
|
|
8.0%
|
|
4.0%
|
|
1.8%
|
|
0.9%
|
|
0.4%
|
|
0.1%
|
|
—%
|
|
|
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance
|
|
At December 31, 2018
|
||||||||||||||||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
Total IBNR
Liabilities Plus
Expected
Development on
Reported Claims
|
|
Cumulative
Number of
Reported
Claims
|
||||||||||||||||||||||||||||||||||||||||
|
|
(Unaudited)
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
Incurral Year
|
|
2009
|
|
2010
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
|
||||||||||||||||||||||||
|
|
(Dollars in millions)
|
||||||||||||||||||||||||||||||||||||||||||||
2009
|
|
$
|
506
|
|
|
$
|
523
|
|
|
$
|
510
|
|
|
$
|
507
|
|
|
$
|
503
|
|
|
$
|
501
|
|
|
$
|
498
|
|
|
$
|
497
|
|
|
$
|
497
|
|
|
$
|
497
|
|
|
$
|
—
|
|
|
106,620
|
2010
|
|
|
|
573
|
|
|
589
|
|
|
587
|
|
|
584
|
|
|
582
|
|
|
581
|
|
|
580
|
|
|
579
|
|
|
579
|
|
|
—
|
|
|
115,517
|
||||||||||||
2011
|
|
|
|
|
|
891
|
|
|
868
|
|
|
843
|
|
|
840
|
|
|
835
|
|
|
835
|
|
|
834
|
|
|
833
|
|
|
—
|
|
|
166,461
|
|||||||||||||
2012
|
|
|
|
|
|
|
|
714
|
|
|
713
|
|
|
703
|
|
|
698
|
|
|
696
|
|
|
694
|
|
|
693
|
|
|
2
|
|
|
146,545
|
||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
654
|
|
|
652
|
|
|
635
|
|
|
635
|
|
|
634
|
|
|
632
|
|
|
1
|
|
|
107,548
|
|||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
707
|
|
|
702
|
|
|
704
|
|
|
705
|
|
|
701
|
|
|
3
|
|
|
113,649
|
||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
759
|
|
|
753
|
|
|
752
|
|
|
746
|
|
|
4
|
|
|
107,211
|
|||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
740
|
|
|
743
|
|
|
743
|
|
|
14
|
|
|
107,128
|
||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
747
|
|
|
763
|
|
|
19
|
|
|
115,043
|
|||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
671
|
|
|
67
|
|
|
91,726
|
||||||||||||||||||||
Total
|
|
6,858
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance
|
|
(6,634
|
)
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
All outstanding liabilities for incurral years prior to 2009, net of reinsurance
|
|
1
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
Total unpaid claims and claim adjustment expenses, net of reinsurance
|
|
$
|
225
|
|
|
|
|
|
|
|
Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||||
|
|
(Unaudited)
|
|
|
||||||||||||||||||||||||||||||||||||
Incurral Year
|
|
2009
|
|
2010
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
||||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||||||
2009
|
|
$
|
385
|
|
|
$
|
476
|
|
|
$
|
486
|
|
|
$
|
492
|
|
|
$
|
495
|
|
|
$
|
495
|
|
|
$
|
496
|
|
|
$
|
496
|
|
|
$
|
496
|
|
|
$
|
496
|
|
2010
|
|
|
|
436
|
|
|
546
|
|
|
562
|
|
|
571
|
|
|
574
|
|
|
577
|
|
|
578
|
|
|
578
|
|
|
579
|
|
|||||||||||
2011
|
|
|
|
|
|
690
|
|
|
804
|
|
|
819
|
|
|
825
|
|
|
827
|
|
|
830
|
|
|
832
|
|
|
833
|
|
||||||||||||
2012
|
|
|
|
|
|
|
|
559
|
|
|
668
|
|
|
681
|
|
|
687
|
|
|
689
|
|
|
690
|
|
|
690
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
505
|
|
|
604
|
|
|
618
|
|
|
626
|
|
|
628
|
|
|
629
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
574
|
|
|
670
|
|
|
685
|
|
|
692
|
|
|
695
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
603
|
|
|
717
|
|
|
731
|
|
|
736
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
593
|
|
|
704
|
|
|
720
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
610
|
|
|
727
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
529
|
|
|||||||||||||||||||
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance
|
|
$
|
6,634
|
|
|
|
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
|
||||||||||||||||||
Years
|
|
1
|
|
2
|
|
3
|
|
4
|
|
5
|
|
6
|
|
7
|
|
8
|
|
9
|
|
10
|
Home
|
|
79.8%
|
|
15.7%
|
|
2.1%
|
|
1.0%
|
|
0.4%
|
|
0.2%
|
|
0.2%
|
|
—%
|
|
—%
|
|
0.1%
|
|
|
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance
|
|
At December 31, 2018
|
||||||||||||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
Total IBNR
Liabilities Plus
Expected
Development on
Reported Claims
|
|
Cumulative
Number of
Reported
Claims
|
||||||||||||||||||||||||||||||||||||
|
|
(Unaudited)
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
Incurral Year
|
|
2010
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
|
||||||||||||||||||||||
|
|
(Dollars in millions)
|
||||||||||||||||||||||||||||||||||||||||
2010
|
|
$
|
74
|
|
|
$
|
70
|
|
|
$
|
75
|
|
|
$
|
96
|
|
|
$
|
96
|
|
|
$
|
93
|
|
|
$
|
122
|
|
|
$
|
130
|
|
|
$
|
121
|
|
|
$
|
9
|
|
|
2,781
|
2011
|
|
|
|
58
|
|
|
61
|
|
|
80
|
|
|
80
|
|
|
84
|
|
|
112
|
|
|
119
|
|
|
116
|
|
|
16
|
|
|
2,985
|
|||||||||||
2012
|
|
|
|
|
|
88
|
|
|
94
|
|
|
92
|
|
|
106
|
|
|
107
|
|
|
110
|
|
|
120
|
|
|
18
|
|
|
4,434
|
||||||||||||
2013
|
|
|
|
|
|
|
|
134
|
|
|
135
|
|
|
157
|
|
|
152
|
|
|
151
|
|
|
159
|
|
|
12
|
|
|
5,064
|
|||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
267
|
|
|
251
|
|
|
230
|
|
|
231
|
|
|
242
|
|
|
38
|
|
|
5,890
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
252
|
|
|
240
|
|
|
244
|
|
|
238
|
|
|
50
|
|
|
5,606
|
|||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
211
|
|
|
214
|
|
|
202
|
|
|
63
|
|
|
3,499
|
||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
273
|
|
|
254
|
|
|
90
|
|
|
3,382
|
|||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
333
|
|
|
178
|
|
|
2,122
|
||||||||||||||||||
Total
|
|
1,785
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance
|
|
(1,223
|
)
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
All outstanding liabilities for incurral years prior to 2010, net of reinsurance
|
|
16
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
Total unpaid claims and claim adjustment expenses, net of reinsurance
|
|
$
|
578
|
|
|
|
|
|
|
|
Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
||||||||||||||||||||||||||||||||||
|
|
(Unaudited)
|
|
|
||||||||||||||||||||||||||||||||
Incurral Year
|
|
2010
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||
2010
|
|
$
|
18
|
|
|
$
|
36
|
|
|
$
|
48
|
|
|
$
|
58
|
|
|
$
|
71
|
|
|
$
|
80
|
|
|
$
|
102
|
|
|
$
|
108
|
|
|
$
|
113
|
|
2011
|
|
|
|
12
|
|
|
36
|
|
|
49
|
|
|
60
|
|
|
73
|
|
|
92
|
|
|
98
|
|
|
100
|
|
||||||||||
2012
|
|
|
|
|
|
27
|
|
|
58
|
|
|
77
|
|
|
89
|
|
|
96
|
|
|
101
|
|
|
102
|
|
|||||||||||
2013
|
|
|
|
|
|
|
|
39
|
|
|
89
|
|
|
109
|
|
|
123
|
|
|
134
|
|
|
147
|
|
||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
62
|
|
|
130
|
|
|
162
|
|
|
182
|
|
|
204
|
|
|||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
73
|
|
|
139
|
|
|
173
|
|
|
187
|
|
||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
59
|
|
|
122
|
|
|
139
|
|
|||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
80
|
|
|
144
|
|
||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
87
|
|
|||||||||||||||||
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance
|
|
$
|
1,223
|
|
|
|
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
|
||||||||||||||||
Years
|
|
1
|
|
2
|
|
3
|
|
4
|
|
5
|
|
6
|
|
7
|
|
8
|
|
9
|
Group Disability & Group Life
|
|
23.9%
|
|
25.2%
|
|
12.2%
|
|
8.9%
|
|
8.9%
|
|
8.8%
|
|
8.3%
|
|
3.9%
|
|
3.8%
|
|
|
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance
|
|
At December 31, 2018
|
||||||||||||||||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
Total IBNR
Liabilities Plus
Expected
Development on
Reported Claims
|
|
Cumulative
Number of
Reported
Claims
|
||||||||||||||||||||||||||||||||||||||||
|
|
(Unaudited)
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
Incurral Year
|
|
2009
|
|
2010
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
|||||||||||||||||||||||||
|
|
(Dollars in millions)
|
||||||||||||||||||||||||||||||||||||||||||||
2009
|
|
$
|
229
|
|
|
$
|
309
|
|
|
$
|
314
|
|
|
$
|
315
|
|
|
$
|
315
|
|
|
$
|
315
|
|
|
$
|
315
|
|
|
$
|
315
|
|
|
$
|
317
|
|
|
$
|
320
|
|
|
$
|
—
|
|
|
30,643
|
2010
|
|
|
|
251
|
|
|
323
|
|
|
330
|
|
|
331
|
|
|
331
|
|
|
331
|
|
|
331
|
|
|
332
|
|
|
334
|
|
|
—
|
|
|
32,102
|
||||||||||||
2011
|
|
|
|
|
|
141
|
|
|
218
|
|
|
224
|
|
|
225
|
|
|
226
|
|
|
226
|
|
|
222
|
|
|
226
|
|
|
—
|
|
|
26,146
|
|||||||||||||
2012
|
|
|
|
|
|
|
|
150
|
|
|
204
|
|
|
209
|
|
|
210
|
|
|
211
|
|
|
209
|
|
|
211
|
|
|
—
|
|
|
26,105
|
||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
166
|
|
|
232
|
|
|
239
|
|
|
240
|
|
|
239
|
|
|
242
|
|
|
—
|
|
|
29,581
|
|||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
242
|
|
|
366
|
|
|
377
|
|
|
346
|
|
|
350
|
|
|
—
|
|
|
38,071
|
||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
316
|
|
|
451
|
|
|
422
|
|
|
428
|
|
|
1
|
|
|
43,426
|
|||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
340
|
|
|
437
|
|
|
448
|
|
|
3
|
|
|
37,555
|
||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
351
|
|
|
345
|
|
|
16
|
|
|
30,116
|
|||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
328
|
|
|
119
|
|
|
21,926
|
||||||||||||||||||||
Total
|
|
3,232
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance
|
|
(2,933
|
)
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
All outstanding liabilities for incurral years prior to 2009, net of reinsurance
|
|
9
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
Total unpaid claims and claim adjustment expenses, net of reinsurance
|
|
$
|
308
|
|
|
|
|
|
|
|
Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||||
|
|
(Unaudited)
|
|
|
||||||||||||||||||||||||||||||||||||
Incurral Year
|
|
2009
|
|
2010
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
||||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||||||
2009
|
|
$
|
227
|
|
|
$
|
302
|
|
|
$
|
306
|
|
|
$
|
307
|
|
|
$
|
307
|
|
|
$
|
307
|
|
|
$
|
307
|
|
|
$
|
307
|
|
|
$
|
311
|
|
|
$
|
312
|
|
2010
|
|
|
|
231
|
|
|
301
|
|
|
308
|
|
|
309
|
|
|
309
|
|
|
309
|
|
|
309
|
|
|
311
|
|
|
312
|
|
|||||||||||
2011
|
|
|
|
|
|
139
|
|
|
213
|
|
|
220
|
|
|
220
|
|
|
221
|
|
|
221
|
|
|
222
|
|
|
222
|
|
||||||||||||
2012
|
|
|
|
|
|
|
|
149
|
|
|
201
|
|
|
206
|
|
|
207
|
|
|
208
|
|
|
207
|
|
|
208
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
162
|
|
|
225
|
|
|
230
|
|
|
230
|
|
|
230
|
|
|
232
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
216
|
|
|
322
|
|
|
327
|
|
|
331
|
|
|
335
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
259
|
|
|
363
|
|
|
386
|
|
|
394
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
235
|
|
|
420
|
|
|
440
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
206
|
|
|
312
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
166
|
|
|||||||||||||||||||
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance
|
|
$
|
2,933
|
|
|
|
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
|
|
|
||||||||||||||||
Years
|
|
1
|
|
2
|
|
3
|
|
4
|
|
5
|
|
6
|
|
7
|
|
8
|
|
9
|
|
10
|
Protection Life
|
|
62.4%
|
|
28.4%
|
|
2.7%
|
|
0.7%
|
|
0.2%
|
|
0.1%
|
|
0.2%
|
|
0.3%
|
|
0.7%
|
|
0.3%
|
|
|
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance
|
|
At December 31, 2018
|
||||||||||||||||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
Total IBNR
Liabilities Plus
Expected
Development on
Reported Claims
|
|
Cumulative
Number of
Reported
Claims
|
||||||||||||||||||||||||||||||||||||||||
|
|
(Unaudited)
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
Incurral Year
|
|
2009
|
|
2010
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
|||||||||||||||||||||||||
|
|
(Dollars in millions)
|
||||||||||||||||||||||||||||||||||||||||||||
2009
|
|
$
|
152
|
|
|
$
|
170
|
|
|
$
|
172
|
|
|
$
|
172
|
|
|
$
|
173
|
|
|
$
|
173
|
|
|
$
|
173
|
|
|
$
|
173
|
|
|
$
|
175
|
|
|
$
|
175
|
|
|
$
|
—
|
|
|
92,576
|
2010
|
|
|
|
179
|
|
|
200
|
|
|
201
|
|
|
202
|
|
|
202
|
|
|
202
|
|
|
203
|
|
|
206
|
|
|
206
|
|
|
—
|
|
|
96,334
|
||||||||||||
2011
|
|
|
|
|
|
215
|
|
|
239
|
|
|
240
|
|
|
241
|
|
|
242
|
|
|
242
|
|
|
239
|
|
|
239
|
|
|
—
|
|
|
106,023
|
|||||||||||||
2012
|
|
|
|
|
|
|
|
208
|
|
|
233
|
|
|
235
|
|
|
236
|
|
|
236
|
|
|
234
|
|
|
235
|
|
|
—
|
|
|
99,576
|
||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
225
|
|
|
254
|
|
|
255
|
|
|
256
|
|
|
253
|
|
|
253
|
|
|
—
|
|
|
103,132
|
|||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
233
|
|
|
260
|
|
|
262
|
|
|
260
|
|
|
259
|
|
|
—
|
|
|
96,296
|
||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
201
|
|
|
228
|
|
|
229
|
|
|
228
|
|
|
1
|
|
|
84,767
|
|||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
263
|
|
|
303
|
|
|
300
|
|
|
2
|
|
|
102,167
|
||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
381
|
|
|
355
|
|
|
4
|
|
|
113,183
|
|||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
407
|
|
|
30
|
|
|
101,992
|
||||||||||||||||||||
Total
|
|
2,657
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance
|
|
(2,588
|
)
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
All outstanding liabilities for incurral years prior to 2009, net of reinsurance
|
|
4
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
Total unpaid claims and claim adjustment expenses, net of reinsurance
|
|
$
|
73
|
|
|
|
|
|
|
|
Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||||
|
|
(Unaudited)
|
|
|
||||||||||||||||||||||||||||||||||||
Incurral Year
|
|
2009
|
|
2010
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
||||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||||||||||
2009
|
|
$
|
152
|
|
|
$
|
170
|
|
|
$
|
172
|
|
|
$
|
172
|
|
|
$
|
173
|
|
|
$
|
173
|
|
|
$
|
173
|
|
|
$
|
173
|
|
|
$
|
175
|
|
|
$
|
175
|
|
2010
|
|
|
|
179
|
|
|
200
|
|
|
201
|
|
|
202
|
|
|
202
|
|
|
202
|
|
|
203
|
|
|
205
|
|
|
206
|
|
|||||||||||
2011
|
|
|
|
|
|
215
|
|
|
239
|
|
|
240
|
|
|
241
|
|
|
242
|
|
|
242
|
|
|
239
|
|
|
239
|
|
||||||||||||
2012
|
|
|
|
|
|
|
|
208
|
|
|
233
|
|
|
235
|
|
|
236
|
|
|
236
|
|
|
235
|
|
|
235
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
225
|
|
|
254
|
|
|
255
|
|
|
256
|
|
|
253
|
|
|
253
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
231
|
|
|
258
|
|
|
260
|
|
|
256
|
|
|
256
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
200
|
|
|
228
|
|
|
227
|
|
|
227
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
247
|
|
|
296
|
|
|
298
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
310
|
|
|
350
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
349
|
|
|||||||||||||||||||
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance
|
|
$
|
2,588
|
|
|
|
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
|
|
|
||||||||||||||||
Years
|
|
1
|
|
2
|
|
3
|
|
4
|
|
5
|
|
6
|
|
7
|
|
8
|
|
9
|
|
10
|
Protection Health
|
|
87.3%
|
|
11.3%
|
|
0.6%
|
|
—%
|
|
—%
|
|
—%
|
|
(0.3)%
|
|
0.5%
|
|
0.7%
|
|
0.1%
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(In millions)
|
||||||||||
Balance at December 31 of prior period
|
|
$
|
17,094
|
|
|
$
|
16,157
|
|
|
$
|
9,669
|
|
Less: Reinsurance recoverables
|
|
2,198
|
|
|
1,968
|
|
|
476
|
|
|||
Net balance at December 31 of prior period
|
|
14,896
|
|
|
14,189
|
|
|
9,193
|
|
|||
Cumulative adjustment (1)
|
|
—
|
|
|
—
|
|
|
4,819
|
|
|||
Net balance at January 1,
|
|
14,896
|
|
|
14,189
|
|
|
14,012
|
|
|||
Incurred related to:
|
|
|
|
|
|
|
||||||
Current year
|
|
24,571
|
|
|
24,370
|
|
|
24,011
|
|
|||
Prior years (2)
|
|
454
|
|
|
133
|
|
|
382
|
|
|||
Total incurred
|
|
25,025
|
|
|
24,503
|
|
|
24,393
|
|
|||
Paid related to:
|
|
|
|
|
|
|
||||||
Current year
|
|
(18,757
|
)
|
|
(18,525
|
)
|
|
(18,696
|
)
|
|||
Prior years
|
|
(5,708
|
)
|
|
(5,271
|
)
|
|
(5,520
|
)
|
|||
Total paid
|
|
(24,465
|
)
|
|
(23,796
|
)
|
|
(24,216
|
)
|
|||
Net balance at December 31,
|
|
15,456
|
|
|
14,896
|
|
|
14,189
|
|
|||
Add: Reinsurance recoverables
|
|
2,332
|
|
|
2,198
|
|
|
1,968
|
|
|||
Balance at December 31,
|
|
$
|
17,788
|
|
|
$
|
17,094
|
|
|
$
|
16,157
|
|
(1)
|
Reflects the accumulated adjustment, net of reinsurance, upon implementation of the short-duration contracts guidance which clarified the requirement to include claim information for long-duration contracts. The accumulated adjustment primarily reflects unpaid claim liabilities, net of reinsurance, for long-duration contracts as of the beginning of the period presented.
|
(2)
|
During
2018
and
2017
,
claims and claim adjustment expenses associated with prior years
increased due to events incurred in prior years but reported during current year
. During
2016
, claims and claim adjustment expenses associated with prior years
increased due to the implementation of guidance related to short-
duration contracts.
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
DAC:
|
|
|
|
|
|
||||||
Balance at January 1,
|
$
|
14,789
|
|
|
$
|
13,830
|
|
|
$
|
13,464
|
|
Capitalizations
|
3,254
|
|
|
3,002
|
|
|
3,152
|
|
|||
Amortization related to:
|
|
|
|
|
|
||||||
Net investment gains (losses) and net derivative gains (losses)
|
(109
|
)
|
|
60
|
|
|
229
|
|
|||
Other expenses
|
(2,599
|
)
|
|
(2,426
|
)
|
|
(2,555
|
)
|
|||
Total amortization
|
(2,708
|
)
|
|
(2,366
|
)
|
|
(2,326
|
)
|
|||
Unrealized investment gains (losses)
|
511
|
|
|
(525
|
)
|
|
(171
|
)
|
|||
Effect of foreign currency translation and other
|
(276
|
)
|
|
848
|
|
|
(289
|
)
|
|||
Balance at December 31,
|
15,570
|
|
|
14,789
|
|
|
13,830
|
|
|||
VOBA:
|
|
|
|
|
|
||||||
Balance at January 1,
|
3,630
|
|
|
3,760
|
|
|
3,966
|
|
|||
Amortization related to:
|
|
|
|
|
|
||||||
Net investment gains (losses) and net derivative gains (losses)
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||
Other expenses
|
(267
|
)
|
|
(315
|
)
|
|
(389
|
)
|
|||
Total amortization
|
(267
|
)
|
|
(315
|
)
|
|
(392
|
)
|
|||
Unrealized investment gains (losses)
|
10
|
|
|
(4
|
)
|
|
8
|
|
|||
Effect of foreign currency translation and other
|
(48
|
)
|
|
189
|
|
|
178
|
|
|||
Balance at December 31,
|
3,325
|
|
|
3,630
|
|
|
3,760
|
|
|||
Total DAC and VOBA:
|
|
|
|
|
|
||||||
Balance at December 31,
|
$
|
18,895
|
|
|
$
|
18,419
|
|
|
$
|
17,590
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(In millions)
|
||||||||||
DSI:
|
|
|
|
|
|
|
||||||
Balance at January 1,
|
|
$
|
220
|
|
|
$
|
241
|
|
|
$
|
242
|
|
Capitalization
|
|
7
|
|
|
16
|
|
|
22
|
|
|||
Amortization
|
|
(33
|
)
|
|
(29
|
)
|
|
(23
|
)
|
|||
Unrealized investment gains (losses)
|
|
16
|
|
|
(6
|
)
|
|
—
|
|
|||
Effect of foreign currency translation
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|||
Balance at December 31,
|
|
$
|
210
|
|
|
$
|
220
|
|
|
$
|
241
|
|
VODA and VOCRA:
|
|
|
|
|
|
|
||||||
Balance at January 1,
|
|
$
|
459
|
|
|
$
|
509
|
|
|
$
|
583
|
|
Amortization
|
|
(47
|
)
|
|
(51
|
)
|
|
(57
|
)
|
|||
Effect of foreign currency translation
|
|
(28
|
)
|
|
1
|
|
|
(17
|
)
|
|||
Balance at December 31,
|
|
$
|
384
|
|
|
$
|
459
|
|
|
$
|
509
|
|
Accumulated amortization
|
|
$
|
392
|
|
|
$
|
345
|
|
|
$
|
294
|
|
Negative VOBA:
|
|
|
|
|
|
|
||||||
Balance at January 1,
|
|
$
|
827
|
|
|
$
|
935
|
|
|
$
|
1,193
|
|
Amortization
|
|
(56
|
)
|
|
(140
|
)
|
|
(269
|
)
|
|||
Effect of foreign currency translation and other
|
|
8
|
|
|
32
|
|
|
11
|
|
|||
Balance at December 31,
|
|
$
|
779
|
|
|
$
|
827
|
|
|
$
|
935
|
|
Accumulated amortization
|
|
$
|
3,230
|
|
|
$
|
3,174
|
|
|
$
|
3,034
|
|
|
|
VOBA
|
|
VODA and VOCRA
|
|
Negative VOBA
|
||||||
|
|
(In millions)
|
||||||||||
2019
|
|
$
|
267
|
|
|
$
|
42
|
|
|
$
|
(41
|
)
|
2020
|
|
$
|
247
|
|
|
$
|
38
|
|
|
$
|
(41
|
)
|
2021
|
|
$
|
223
|
|
|
$
|
35
|
|
|
$
|
(39
|
)
|
2022
|
|
$
|
209
|
|
|
$
|
32
|
|
|
$
|
(37
|
)
|
2023
|
|
$
|
195
|
|
|
$
|
29
|
|
|
$
|
(36
|
)
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(In millions)
|
||||||||||
Premiums
|
|
|
|
|
|
|
||||||
Direct premiums
|
|
$
|
44,199
|
|
|
$
|
39,595
|
|
|
$
|
37,975
|
|
Reinsurance assumed
|
|
2,021
|
|
|
1,773
|
|
|
1,363
|
|
|||
Reinsurance ceded
|
|
(2,380
|
)
|
|
(2,376
|
)
|
|
(2,136
|
)
|
|||
Net premiums
|
|
$
|
43,840
|
|
|
$
|
38,992
|
|
|
$
|
37,202
|
|
Universal life and investment-type product policy fees
|
|
|
|
|
|
|
||||||
Direct universal life and investment-type product policy fees
|
|
$
|
6,008
|
|
|
$
|
5,978
|
|
|
$
|
5,884
|
|
Reinsurance assumed
|
|
86
|
|
|
83
|
|
|
96
|
|
|||
Reinsurance ceded
|
|
(592
|
)
|
|
(551
|
)
|
|
(497
|
)
|
|||
Net universal life and investment-type product policy fees
|
|
$
|
5,502
|
|
|
$
|
5,510
|
|
|
$
|
5,483
|
|
Policyholder benefits and claims
|
|
|
|
|
|
|
||||||
Direct policyholder benefits and claims
|
|
$
|
43,456
|
|
|
$
|
39,354
|
|
|
$
|
37,186
|
|
Reinsurance assumed
|
|
1,583
|
|
|
1,388
|
|
|
1,085
|
|
|||
Reinsurance ceded
|
|
(2,383
|
)
|
|
(2,429
|
)
|
|
(1,913
|
)
|
|||
Net policyholder benefits and claims
|
|
$
|
42,656
|
|
|
$
|
38,313
|
|
|
$
|
36,358
|
|
Other expenses
|
|
|
|
|
|
|
||||||
Direct other expenses
|
|
$
|
13,704
|
|
|
$
|
13,610
|
|
|
$
|
13,958
|
|
Reinsurance assumed
|
|
321
|
|
|
246
|
|
|
169
|
|
|||
Reinsurance ceded
|
|
(311
|
)
|
|
(235
|
)
|
|
(378
|
)
|
|||
Net other expenses
|
|
$
|
13,714
|
|
|
$
|
13,621
|
|
|
$
|
13,749
|
|
|
|
December 31,
|
||||||||||||||||||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||||||||||||||||||
|
|
Direct
|
|
Assumed
|
|
Ceded
|
|
Total
Balance Sheet |
|
Direct
|
|
Assumed
|
|
Ceded
|
|
Total
Balance Sheet |
||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Premiums, reinsurance and other receivables
|
|
$
|
5,988
|
|
|
$
|
1,603
|
|
|
$
|
12,053
|
|
|
$
|
19,644
|
|
|
$
|
6,300
|
|
|
$
|
866
|
|
|
$
|
11,257
|
|
|
$
|
18,423
|
|
Deferred policy acquisition costs and value of business acquired
|
|
18,812
|
|
|
385
|
|
|
(302
|
)
|
|
18,895
|
|
|
18,350
|
|
|
398
|
|
|
(329
|
)
|
|
18,419
|
|
||||||||
Total assets
|
|
$
|
24,800
|
|
|
$
|
1,988
|
|
|
$
|
11,751
|
|
|
$
|
38,539
|
|
|
$
|
24,650
|
|
|
$
|
1,264
|
|
|
$
|
10,928
|
|
|
$
|
36,842
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Future policy benefits
|
|
$
|
183,367
|
|
|
$
|
3,413
|
|
|
$
|
—
|
|
|
$
|
186,780
|
|
|
$
|
174,694
|
|
|
$
|
3,280
|
|
|
$
|
—
|
|
|
$
|
177,974
|
|
Policyholder account balances
|
|
183,207
|
|
|
488
|
|
|
(2
|
)
|
|
183,693
|
|
|
182,226
|
|
|
293
|
|
|
(1
|
)
|
|
182,518
|
|
||||||||
Other policy-related balances
|
|
15,519
|
|
|
986
|
|
|
24
|
|
|
16,529
|
|
|
14,962
|
|
|
520
|
|
|
33
|
|
|
15,515
|
|
||||||||
Other liabilities
|
|
14,848
|
|
|
2,131
|
|
|
5,985
|
|
|
22,964
|
|
|
17,077
|
|
|
1,896
|
|
|
5,009
|
|
|
23,982
|
|
||||||||
Total liabilities
|
|
$
|
396,941
|
|
|
$
|
7,018
|
|
|
$
|
6,007
|
|
|
$
|
409,966
|
|
|
$
|
388,959
|
|
|
$
|
5,989
|
|
|
$
|
5,041
|
|
|
$
|
399,989
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(In millions)
|
||||||
Closed Block Liabilities
|
|
|
|
|
||||
Future policy benefits
|
|
$
|
40,032
|
|
|
$
|
40,463
|
|
Other policy-related balances
|
|
317
|
|
|
222
|
|
||
Policyholder dividends payable
|
|
431
|
|
|
437
|
|
||
Policyholder dividend obligation
|
|
428
|
|
|
2,121
|
|
||
Deferred income tax liability
|
|
28
|
|
|
—
|
|
||
Other liabilities
|
|
328
|
|
|
212
|
|
||
Total closed block liabilities
|
|
41,564
|
|
|
43,455
|
|
||
Assets Designated to the Closed Block
|
|
|
|
|
||||
Investments:
|
|
|
|
|
||||
Fixed maturity securities available-for-sale, at estimated fair value
|
|
25,354
|
|
|
27,904
|
|
||
Equity securities, at estimated fair value
|
|
61
|
|
|
70
|
|
||
Contractholder-directed equity securities and fair value option securities, at estimated fair value
|
|
43
|
|
|
—
|
|
||
Mortgage loans
|
|
6,778
|
|
|
5,878
|
|
||
Policy loans
|
|
4,527
|
|
|
4,548
|
|
||
Real estate and real estate joint ventures
|
|
544
|
|
|
613
|
|
||
Other invested assets
|
|
643
|
|
|
731
|
|
||
Total investments
|
|
37,950
|
|
|
39,744
|
|
||
Accrued investment income
|
|
443
|
|
|
477
|
|
||
Premiums, reinsurance and other receivables; cash and cash equivalents
|
|
83
|
|
|
14
|
|
||
Current income tax recoverable
|
|
69
|
|
|
35
|
|
||
Deferred income tax asset
|
|
—
|
|
|
36
|
|
||
Total assets designated to the closed block
|
|
38,545
|
|
|
40,306
|
|
||
Excess of closed block liabilities over assets designated to the closed block
|
|
3,019
|
|
|
3,149
|
|
||
Amounts included in AOCI:
|
|
|
|
|
||||
Unrealized investment gains (losses), net of income tax
|
|
1,089
|
|
|
1,863
|
|
||
Unrealized gains (losses) on derivatives, net of income tax
|
|
86
|
|
|
(7
|
)
|
||
Allocated to policyholder dividend obligation, net of income tax
|
|
(338
|
)
|
|
(1,379
|
)
|
||
Total amounts included in AOCI
|
|
837
|
|
|
477
|
|
||
Maximum future earnings to be recognized from closed block assets and liabilities
|
|
$
|
3,856
|
|
|
$
|
3,626
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(In millions)
|
||||||||||
Balance at January 1,
|
|
$
|
2,121
|
|
|
$
|
1,931
|
|
|
$
|
1,783
|
|
Change in unrealized investment and derivative gains (losses)
|
|
(1,693
|
)
|
|
190
|
|
|
148
|
|
|||
Balance at December 31,
|
|
$
|
428
|
|
|
$
|
2,121
|
|
|
$
|
1,931
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(In millions)
|
||||||||||
Revenues
|
|
|
|
|
|
|
||||||
Premiums
|
|
$
|
1,672
|
|
|
$
|
1,736
|
|
|
$
|
1,804
|
|
Net investment income
|
|
1,758
|
|
|
1,818
|
|
|
1,902
|
|
|||
Net investment gains (losses)
|
|
(71
|
)
|
|
1
|
|
|
(10
|
)
|
|||
Net derivative gains (losses)
|
|
22
|
|
|
(32
|
)
|
|
25
|
|
|||
Total revenues
|
|
3,381
|
|
|
3,523
|
|
|
3,721
|
|
|||
Expenses
|
|
|
|
|
|
|
||||||
Policyholder benefits and claims
|
|
2,475
|
|
|
2,453
|
|
|
2,563
|
|
|||
Policyholder dividends
|
|
968
|
|
|
976
|
|
|
953
|
|
|||
Other expenses
|
|
117
|
|
|
125
|
|
|
133
|
|
|||
Total expenses
|
|
3,560
|
|
|
3,554
|
|
|
3,649
|
|
|||
Revenues, net of expenses before provision for income tax expense (benefit)
|
|
(179
|
)
|
|
(31
|
)
|
|
72
|
|
|||
Provision for income tax expense (benefit)
|
|
(39
|
)
|
|
12
|
|
|
24
|
|
|||
Revenues, net of expenses and provision for income tax expense (benefit)
|
|
$
|
(140
|
)
|
|
$
|
(43
|
)
|
|
$
|
48
|
|
|
December 31, 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)
|
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
U.S. corporate
|
$
|
77,761
|
|
|
$
|
3,467
|
|
|
$
|
2,280
|
|
|
$
|
—
|
|
|
$
|
78,948
|
|
|
$
|
76,005
|
|
|
$
|
7,007
|
|
|
$
|
351
|
|
|
$
|
—
|
|
|
$
|
82,661
|
|
Foreign government
|
56,353
|
|
|
6,406
|
|
|
471
|
|
|
—
|
|
|
62,288
|
|
|
55,351
|
|
|
6,495
|
|
|
312
|
|
|
—
|
|
|
61,534
|
|
||||||||||
Foreign corporate
|
56,290
|
|
|
2,438
|
|
|
2,025
|
|
|
—
|
|
|
56,703
|
|
|
52,409
|
|
|
3,836
|
|
|
676
|
|
|
—
|
|
|
55,569
|
|
||||||||||
U.S. government and agency
|
37,030
|
|
|
2,756
|
|
|
464
|
|
|
—
|
|
|
39,322
|
|
|
43,446
|
|
|
4,227
|
|
|
279
|
|
|
—
|
|
|
47,394
|
|
||||||||||
RMBS
|
27,409
|
|
|
920
|
|
|
394
|
|
|
(26
|
)
|
|
27,961
|
|
|
27,846
|
|
|
1,145
|
|
|
233
|
|
|
(42
|
)
|
|
28,800
|
|
||||||||||
ABS
|
12,552
|
|
|
74
|
|
|
153
|
|
|
1
|
|
|
12,472
|
|
|
12,213
|
|
|
116
|
|
|
39
|
|
|
(1
|
)
|
|
12,291
|
|
||||||||||
Municipals
|
10,376
|
|
|
1,228
|
|
|
71
|
|
|
—
|
|
|
11,533
|
|
|
10,752
|
|
|
1,717
|
|
|
13
|
|
|
1
|
|
|
12,455
|
|
||||||||||
CMBS
|
9,045
|
|
|
115
|
|
|
122
|
|
|
—
|
|
|
9,038
|
|
|
8,047
|
|
|
222
|
|
|
42
|
|
|
—
|
|
|
8,227
|
|
||||||||||
Total fixed maturity securities AFS
|
$
|
286,816
|
|
|
$
|
17,404
|
|
|
$
|
5,980
|
|
|
$
|
(25
|
)
|
|
$
|
298,265
|
|
|
$
|
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
|
$
|
12,704
|
|
|
$
|
54,663
|
|
|
$
|
59,986
|
|
|
$
|
110,457
|
|
|
$
|
49,006
|
|
|
$
|
286,816
|
|
Estimated fair value
|
$
|
12,734
|
|
|
$
|
55,876
|
|
|
$
|
61,116
|
|
|
$
|
119,068
|
|
|
$
|
49,471
|
|
|
$
|
298,265
|
|
|
December 31, 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)
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. corporate
|
$
|
32,430
|
|
|
$
|
1,663
|
|
|
$
|
5,826
|
|
|
$
|
617
|
|
|
$
|
5,604
|
|
|
$
|
92
|
|
|
$
|
4,115
|
|
|
$
|
259
|
|
Foreign government
|
4,392
|
|
|
243
|
|
|
2,902
|
|
|
228
|
|
|
4,234
|
|
|
83
|
|
|
3,251
|
|
|
229
|
|
||||||||
Foreign corporate
|
19,564
|
|
|
1,230
|
|
|
5,765
|
|
|
795
|
|
|
4,422
|
|
|
99
|
|
|
6,802
|
|
|
577
|
|
||||||||
U.S. government and agency
|
6,813
|
|
|
58
|
|
|
8,937
|
|
|
406
|
|
|
18,273
|
|
|
93
|
|
|
3,560
|
|
|
186
|
|
||||||||
RMBS
|
6,506
|
|
|
120
|
|
|
6,423
|
|
|
248
|
|
|
6,359
|
|
|
50
|
|
|
4,159
|
|
|
141
|
|
||||||||
ABS
|
8,230
|
|
|
138
|
|
|
392
|
|
|
16
|
|
|
1,695
|
|
|
7
|
|
|
729
|
|
|
31
|
|
||||||||
Municipals
|
1,380
|
|
|
46
|
|
|
349
|
|
|
25
|
|
|
182
|
|
|
2
|
|
|
346
|
|
|
12
|
|
||||||||
CMBS
|
3,893
|
|
|
67
|
|
|
707
|
|
|
55
|
|
|
1,174
|
|
|
9
|
|
|
413
|
|
|
33
|
|
||||||||
Total fixed maturity securities AFS
|
$
|
83,208
|
|
|
$
|
3,565
|
|
|
$
|
31,301
|
|
|
$
|
2,390
|
|
|
$
|
41,943
|
|
|
$
|
435
|
|
|
$
|
23,375
|
|
|
$
|
1,468
|
|
Total number of securities in an unrealized loss position
|
6,913
|
|
|
|
|
2,335
|
|
|
|
|
2,598
|
|
|
|
|
1,955
|
|
|
|
•
|
The Company calculates the recovery value by performing a discounted cash flow analysis based on the present value of future cash flows. The discount rate is generally the effective interest rate of the security prior to impairment.
|
•
|
When determining collectability and the period over which value is expected to recover, the Company applies considerations utilized in its overall impairment evaluation process which incorporates information regarding the specific security, fundamentals of the industry and geographic area in which the security issuer operates, and overall macroeconomic conditions. Projected future cash flows are estimated using assumptions derived from management’s best estimates of likely scenario-based outcomes after giving consideration to a variety of variables that include, but are not limited to: payment terms of the security; the likelihood that the issuer can service the interest and principal payments; the quality and amount of any credit enhancements; the security’s position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; and changes to the rating of the security or the issuer by rating agencies.
|
•
|
Additional considerations are made when assessing the unique features that apply to certain Structured Securities including, but not limited to: the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying loans or assets backing a particular security, and the payment priority within the tranche structure of the security.
|
•
|
When determining the amount of the credit loss for the following types of securities: U.S. and foreign corporate, foreign government and municipals, the estimated fair value is considered the recovery value when available information does not indicate that another value is more appropriate. When information is identified that indicates a recovery value other than estimated fair value, management considers in the determination of recovery value the same considerations utilized in its overall impairment evaluation process as described above, as well as any private and public sector programs to restructure such securities.
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||
|
Estimated
Fair
Value
|
|
% of
Total
|
|
Estimated
Fair
Value
|
|
% of
Total
|
||||||
|
|||||||||||||
|
(Dollars in millions)
|
||||||||||||
|
|
|
|
|
|
|
|
||||||
Common stock
|
$
|
1,037
|
|
|
72.0
|
%
|
|
$
|
2,035
|
|
|
81.0
|
%
|
Non-redeemable preferred stock
|
403
|
|
|
28.0
|
|
|
478
|
|
|
19.0
|
|
||
Total equity securities
|
$
|
1,440
|
|
|
100.0
|
%
|
|
$
|
2,513
|
|
|
100.0
|
%
|
|
|
December 31,
|
||||||||||||
|
|
2018
|
|
2017
|
||||||||||
|
|
Carrying
Value |
|
% of
Total |
|
Carrying
Value |
|
% of
Total |
||||||
|
|
(Dollars in millions)
|
||||||||||||
Mortgage loans:
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
$
|
48,463
|
|
|
64.0
|
%
|
|
$
|
44,375
|
|
|
64.6
|
%
|
Agricultural
|
|
14,905
|
|
|
19.7
|
|
|
13,014
|
|
|
18.9
|
|
||
Residential
|
|
12,427
|
|
|
16.4
|
|
|
11,136
|
|
|
16.2
|
|
||
Total recorded investment
|
|
75,795
|
|
|
100.1
|
|
|
68,525
|
|
|
99.7
|
|
||
Valuation allowances
|
|
(342
|
)
|
|
(0.5
|
)
|
|
(314
|
)
|
|
(0.5
|
)
|
||
Subtotal mortgage loans, net
|
|
75,453
|
|
|
99.6
|
|
|
68,211
|
|
|
99.2
|
|
||
Residential — FVO
|
|
299
|
|
|
0.4
|
|
|
520
|
|
|
0.8
|
|
||
Total mortgage loans, net
|
|
$
|
75,752
|
|
|
100.0
|
%
|
|
$
|
68,731
|
|
|
100.0
|
%
|
|
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 |
|
Average
Recorded Investment |
||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
48,463
|
|
|
$
|
238
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Agricultural
|
31
|
|
|
31
|
|
|
3
|
|
|
169
|
|
|
169
|
|
|
14,705
|
|
|
43
|
|
|
197
|
|
|
123
|
|
|||||||||
Residential
|
—
|
|
|
—
|
|
|
—
|
|
|
431
|
|
|
386
|
|
|
12,041
|
|
|
58
|
|
|
386
|
|
|
358
|
|
|||||||||
Total
|
$
|
31
|
|
|
$
|
31
|
|
|
$
|
3
|
|
|
$
|
600
|
|
|
$
|
555
|
|
|
$
|
75,209
|
|
|
$
|
339
|
|
|
$
|
583
|
|
|
$
|
481
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
44,375
|
|
|
$
|
214
|
|
|
$
|
—
|
|
|
$
|
5
|
|
Agricultural
|
22
|
|
|
21
|
|
|
2
|
|
|
27
|
|
|
27
|
|
|
12,966
|
|
|
39
|
|
|
46
|
|
|
32
|
|
|||||||||
Residential
|
—
|
|
|
—
|
|
|
—
|
|
|
358
|
|
|
324
|
|
|
10,812
|
|
|
59
|
|
|
324
|
|
|
285
|
|
|||||||||
Total
|
$
|
22
|
|
|
$
|
21
|
|
|
$
|
2
|
|
|
$
|
385
|
|
|
$
|
351
|
|
|
$
|
68,153
|
|
|
$
|
312
|
|
|
$
|
370
|
|
|
$
|
322
|
|
|
Commercial
|
|
Agricultural
|
|
Residential
|
|
Total
|
||||||||
|
(In millions)
|
||||||||||||||
Balance at January 1, 2016
|
$
|
188
|
|
|
$
|
37
|
|
|
$
|
56
|
|
|
$
|
281
|
|
Provision (release) (1)
|
157
|
|
|
3
|
|
|
23
|
|
|
183
|
|
||||
Charge-offs, net of recoveries (1)
|
(143
|
)
|
|
(1
|
)
|
|
(16
|
)
|
|
(160
|
)
|
||||
Balance at December 31, 2016
|
202
|
|
|
39
|
|
|
63
|
|
|
304
|
|
||||
Provision (release)
|
12
|
|
|
4
|
|
|
8
|
|
|
24
|
|
||||
Charge-offs, net of recoveries
|
—
|
|
|
(2
|
)
|
|
(12
|
)
|
|
(14
|
)
|
||||
Balance at December 31, 2017
|
214
|
|
|
41
|
|
|
59
|
|
|
314
|
|
||||
Provision (release)
|
24
|
|
|
5
|
|
|
7
|
|
|
36
|
|
||||
Charge-offs, net of recoveries
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
(8
|
)
|
||||
Balance at December 31, 2018
|
$
|
238
|
|
|
$
|
46
|
|
|
$
|
58
|
|
|
$
|
342
|
|
(1)
|
In connection with an acquisition in 2010, certain impaired commercial mortgage loans were acquired and accordingly, were not originated by the Company. Such commercial mortgage loans have been accounted for as purchased credit impaired (“PCI”) commercial mortgage loans. Decreases in cash flows expected to be collected on PCI commercial mortgage loans can result in provisions for losses on mortgage loans. For the year ended December 31,
2016
, in connection with the maturity of an acquired PCI commercial mortgage loan, an increase to the commercial mortgage loan valuation allowance of
$143 million
was recorded and charged-off upon maturity. The Company has recovered a substantial portion of the loss on the loan incurred through an indemnification agreement entered into in connection with the acquisition in 2010
.
|
|
Recorded Investment
|
|
Estimated
Fair Value |
|
% of
Total |
||||||||||||||||||||
|
Debt Service Coverage Ratios
|
|
Total
|
|
% of
Total
|
|
|||||||||||||||||||
|
> 1.20x
|
|
1.00x - 1.20x
|
|
< 1.00x
|
|
|||||||||||||||||||
|
(Dollars in millions)
|
||||||||||||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loan-to-value ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Less than 65%
|
$
|
40,360
|
|
|
$
|
827
|
|
|
$
|
101
|
|
|
$
|
41,288
|
|
|
85.2
|
%
|
|
$
|
41,599
|
|
|
85.3
|
%
|
65% to 75%
|
5,790
|
|
|
—
|
|
|
25
|
|
|
5,815
|
|
|
12.0
|
|
|
5,849
|
|
|
12.0
|
|
|||||
76% to 80%
|
423
|
|
|
209
|
|
|
56
|
|
|
688
|
|
|
1.4
|
|
|
664
|
|
|
1.4
|
|
|||||
Greater than 80%
|
496
|
|
|
176
|
|
|
—
|
|
|
672
|
|
|
1.4
|
|
|
635
|
|
|
1.3
|
|
|||||
Total
|
$
|
47,069
|
|
|
$
|
1,212
|
|
|
$
|
182
|
|
|
$
|
48,463
|
|
|
100.0
|
%
|
|
$
|
48,747
|
|
|
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
|
%
|
|
December 31,
|
||||||||||||
|
2018
|
|
2017
|
||||||||||
|
Recorded
Investment
|
|
% of
Total
|
|
Recorded
Investment
|
|
% of
Total
|
||||||
|
(Dollars in millions)
|
||||||||||||
Loan-to-value ratios:
|
|
|
|
|
|
|
|
||||||
Less than 65%
|
$
|
13,704
|
|
|
92.0
|
%
|
|
$
|
12,347
|
|
|
94.9
|
%
|
65% to 75%
|
1,145
|
|
|
7.7
|
|
|
618
|
|
|
4.7
|
|
||
76% to 80%
|
33
|
|
|
0.2
|
|
|
40
|
|
|
0.3
|
|
||
Greater than 80%
|
23
|
|
|
0.1
|
|
|
9
|
|
|
0.1
|
|
||
Total
|
$
|
14,905
|
|
|
100.0
|
%
|
|
$
|
13,014
|
|
|
100.0
|
%
|
|
December 31,
|
||||||||||||
|
2018
|
|
2017
|
||||||||||
|
Recorded
Investment |
|
% of
Total |
|
Recorded
Investment |
|
% of
Total |
||||||
|
(Dollars in millions)
|
||||||||||||
Performance indicators:
|
|
|
|
|
|
|
|
||||||
Performing
|
$
|
11,956
|
|
|
96.2
|
%
|
|
$
|
10,622
|
|
|
95.4
|
%
|
Nonperforming (1)
|
471
|
|
|
3.8
|
|
|
514
|
|
|
4.6
|
|
||
Total
|
$
|
12,427
|
|
|
100.0
|
%
|
|
$
|
11,136
|
|
|
100.0
|
%
|
(1)
|
Includes residential mortgage loans in process of foreclosure of
$140 million
and
$133 million
at December 31,
2018
and
2017
, respectively.
|
|
Past Due
|
|
Greater than 90 Days Past Due and Still
Accruing Interest
|
|
Nonaccrual
|
||||||||||||||||||
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
|
(In millions)
|
||||||||||||||||||||||
Commercial
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
176
|
|
|
$
|
—
|
|
Agricultural
|
204
|
|
|
134
|
|
|
109
|
|
|
125
|
|
|
105
|
|
|
36
|
|
||||||
Residential
|
471
|
|
|
514
|
|
|
35
|
|
|
33
|
|
|
436
|
|
|
481
|
|
||||||
Total
|
$
|
684
|
|
|
$
|
648
|
|
|
$
|
153
|
|
|
$
|
158
|
|
|
$
|
717
|
|
|
$
|
517
|
|
|
December 31,
|
||||||||||||||
|
2018
|
|
2017
|
||||||||||||
|
Leveraged
Leases
|
|
Direct
Financing
Leases
|
|
Leveraged
Leases
|
|
Direct
Financing
Leases
|
||||||||
|
(In millions)
|
||||||||||||||
Rental receivables, net
|
$
|
715
|
|
|
$
|
1,855
|
|
|
$
|
912
|
|
|
$
|
2,303
|
|
Estimated residual values
|
807
|
|
|
42
|
|
|
838
|
|
|
42
|
|
||||
Subtotal
|
1,522
|
|
|
1,897
|
|
|
1,750
|
|
|
2,345
|
|
||||
Unearned income
|
(414
|
)
|
|
(705
|
)
|
|
(472
|
)
|
|
(1,022
|
)
|
||||
Investment in leases
|
$
|
1,108
|
|
|
$
|
1,192
|
|
|
$
|
1,278
|
|
|
$
|
1,323
|
|
|
Years Ended December 31,
|
||||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||||||||||||||
|
Leveraged Leases
|
|
Direct Financing Leases
|
|
Leveraged Leases
|
|
Direct Financing Leases
|
|
Leveraged Leases
|
|
Direct Financing Leases
|
||||||||||||
|
(In millions)
|
||||||||||||||||||||||
Lease investment income
|
$
|
47
|
|
|
$
|
95
|
|
|
$
|
19
|
|
|
$
|
89
|
|
|
$
|
51
|
|
|
$
|
51
|
|
Less: Income tax expense
|
10
|
|
|
20
|
|
|
7
|
|
|
31
|
|
|
18
|
|
|
18
|
|
||||||
Lease investment income, net of income tax
|
$
|
37
|
|
|
$
|
75
|
|
|
$
|
12
|
|
|
$
|
58
|
|
|
$
|
33
|
|
|
$
|
33
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(In millions)
|
||||||||||
Fixed maturity securities AFS
|
|
$
|
11,356
|
|
|
$
|
22,645
|
|
|
$
|
20,330
|
|
Fixed maturity securities AFS with noncredit OTTI losses included in AOCI
|
|
25
|
|
|
41
|
|
|
8
|
|
|||
Total fixed maturity securities AFS
|
|
11,381
|
|
|
22,686
|
|
|
20,338
|
|
|||
Equity securities
|
|
—
|
|
|
421
|
|
|
485
|
|
|||
Derivatives
|
|
2,127
|
|
|
1,453
|
|
|
2,923
|
|
|||
Other
|
|
290
|
|
|
46
|
|
|
23
|
|
|||
Subtotal
|
|
13,798
|
|
|
24,606
|
|
|
23,769
|
|
|||
Amounts allocated from:
|
|
|
|
|
|
|
||||||
Future policy benefits
|
|
31
|
|
|
(77
|
)
|
|
(1,114
|
)
|
|||
DAC and VOBA related to noncredit OTTI losses recognized in AOCI
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||
DAC, VOBA and DSI
|
|
(1,231
|
)
|
|
(1,768
|
)
|
|
(1,430
|
)
|
|||
Policyholder dividend obligation
|
|
(428
|
)
|
|
(2,121
|
)
|
|
(1,931
|
)
|
|||
Subtotal
|
|
(1,628
|
)
|
|
(3,966
|
)
|
|
(4,478
|
)
|
|||
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI
|
|
(3
|
)
|
|
(12
|
)
|
|
(1
|
)
|
|||
Deferred income tax benefit (expense)
|
|
(3,502
|
)
|
|
(6,958
|
)
|
|
(6,634
|
)
|
|||
Net unrealized investment gains (losses)
|
|
8,665
|
|
|
13,670
|
|
|
12,656
|
|
|||
Net unrealized investment gains (losses) attributable to noncontrolling interests
|
|
(10
|
)
|
|
(8
|
)
|
|
(6
|
)
|
|||
Net unrealized investment gains (losses) attributable to MetLife, Inc.
|
|
$
|
8,655
|
|
|
$
|
13,662
|
|
|
$
|
12,650
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(In millions)
|
||||||||||
Balance at January 1,
|
|
$
|
13,662
|
|
|
$
|
12,650
|
|
|
$
|
11,769
|
|
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
|
|
(16
|
)
|
|
33
|
|
|
84
|
|
|||
Unrealized investment gains (losses) during the year
|
|
(10,367
|
)
|
|
804
|
|
|
2,544
|
|
|||
Unrealized investment gains (losses) relating to:
|
|
|
|
|
|
|
||||||
Future policy benefits
|
|
108
|
|
|
1,037
|
|
|
(951
|
)
|
|||
DAC and VOBA related to noncredit OTTI losses recognized in AOCI
|
|
—
|
|
|
3
|
|
|
(3
|
)
|
|||
DAC, VOBA and DSI
|
|
537
|
|
|
(338
|
)
|
|
(157
|
)
|
|||
Policyholder dividend obligation
|
|
1,693
|
|
|
(190
|
)
|
|
(148
|
)
|
|||
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI
|
|
9
|
|
|
(11
|
)
|
|
(28
|
)
|
|||
Deferred income tax benefit (expense)
|
|
1,773
|
|
|
(324
|
)
|
|
(485
|
)
|
|||
Net unrealized investment gains (losses)
|
|
8,657
|
|
|
13,664
|
|
|
12,625
|
|
|||
Net unrealized investment gains (losses) attributable to noncontrolling interests
|
|
(2
|
)
|
|
(2
|
)
|
|
25
|
|
|||
Balance at December 31,
|
|
$
|
8,655
|
|
|
$
|
13,662
|
|
|
$
|
12,650
|
|
Change in net unrealized investment gains (losses)
|
|
$
|
(5,005
|
)
|
|
$
|
1,014
|
|
|
$
|
856
|
|
Change in net unrealized investment gains (losses) attributable to noncontrolling interests
|
|
(2
|
)
|
|
(2
|
)
|
|
25
|
|
|||
Change in net unrealized investment gains (losses) attributable to MetLife, Inc.
|
|
$
|
(5,007
|
)
|
|
$
|
1,012
|
|
|
$
|
881
|
|
|
December 31,
|
||||||||||||||||||||||||||||||
|
2018
|
|
2017
|
||||||||||||||||||||||||||||
|
Securities on Loan (1)
|
|
|
|
|
|
Securities on Loan (1)
|
|
|
|
|
||||||||||||||||||||
|
Amortized Cost
|
|
Estimated Fair Value
|
|
Cash Collateral Received from Counterparties (2) (3)
|
|
Reinvestment Portfolio at Estimated Fair Value
|
|
Amortized Cost
|
|
Estimated Fair Value
|
|
Cash Collateral Received from Counterparties (2) (3)
|
|
Reinvestment Portfolio at Estimated Fair Value
|
||||||||||||||||
|
|
|
|
|
|
|
(In millions)
|
|
|
|
|
|
|
||||||||||||||||||
Securities lending
|
$
|
16,969
|
|
|
$
|
17,724
|
|
|
$
|
18,005
|
|
|
$
|
18,074
|
|
|
$
|
17,801
|
|
|
$
|
19,028
|
|
|
$
|
19,417
|
|
|
$
|
19,508
|
|
Repurchase agreements
|
$
|
1,033
|
|
|
$
|
1,093
|
|
|
$
|
1,067
|
|
|
$
|
1,069
|
|
|
$
|
994
|
|
|
$
|
1,141
|
|
|
$
|
1,102
|
|
|
$
|
1,102
|
|
(1)
|
Securities on loan in connection with securities lending are included within fixed maturities securities AFS and securities on loan in connection with repurchase agreements are included within fixed maturities securities AFS, cash equivalents and short-term investments.
|
(2)
|
In connection with securities lending, in addition to cash collateral received, the Company received from counterparties security collateral of
$78 million
and
$19 million
at December 31,
2018
and
2017
, respectively
, which may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the consolidated financial statements.
|
(3)
|
The securities lending liability for cash collateral is included within payables for collateral under securities loaned and other transactions, and the repurchase agreements liability for cash collateral is included within payables for collateral under securities loaned and other transactions and other liabilities.
|
|
December 31,
|
||||||||||||||||||||||||||||||
|
2018
|
|
2017
|
||||||||||||||||||||||||||||
|
Remaining Maturities of the Agreements
|
|
|
|
Remaining Maturities of the 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Securities lending:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. government and agency
|
$
|
2,736
|
|
|
$
|
8,995
|
|
|
$
|
5,220
|
|
|
$
|
16,951
|
|
|
$
|
3,753
|
|
|
$
|
6,031
|
|
|
$
|
8,607
|
|
|
$
|
18,391
|
|
Foreign government
|
—
|
|
|
214
|
|
|
761
|
|
|
975
|
|
|
—
|
|
|
192
|
|
|
834
|
|
|
1,026
|
|
||||||||
Agency RMBS
|
—
|
|
|
79
|
|
|
—
|
|
|
79
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total
|
$
|
2,736
|
|
|
$
|
9,288
|
|
|
$
|
5,981
|
|
|
$
|
18,005
|
|
|
$
|
3,753
|
|
|
$
|
6,223
|
|
|
$
|
9,441
|
|
|
$
|
19,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Repurchase agreements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. government and agency
|
$
|
—
|
|
|
$
|
1,000
|
|
|
$
|
—
|
|
|
$
|
1,000
|
|
|
$
|
—
|
|
|
$
|
1,005
|
|
|
$
|
—
|
|
|
$
|
1,005
|
|
All other corporate and government
|
—
|
|
|
—
|
|
|
67
|
|
|
67
|
|
|
—
|
|
|
44
|
|
|
53
|
|
|
97
|
|
||||||||
Total
|
$
|
—
|
|
|
$
|
1,000
|
|
|
$
|
67
|
|
|
$
|
1,067
|
|
|
$
|
—
|
|
|
$
|
1,049
|
|
|
$
|
53
|
|
|
$
|
1,102
|
|
(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.
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||||||||||
|
|
Remaining Maturities of
the Agreements
|
|
|
|
Remaining Maturities of
the 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Municipals
|
|
$
|
150
|
|
|
$
|
650
|
|
|
$
|
—
|
|
|
$
|
800
|
|
|
$
|
—
|
|
|
$
|
300
|
|
|
$
|
—
|
|
|
$
|
300
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(In millions)
|
||||||
Invested assets on deposit (regulatory deposits)
|
|
$
|
1,788
|
|
|
$
|
1,879
|
|
Invested assets held in trust (collateral financing arrangement and reinsurance agreements)
|
|
2,971
|
|
|
2,490
|
|
||
Invested assets pledged as collateral (1)
|
|
24,168
|
|
|
24,174
|
|
||
Total invested assets on deposit, held in trust and pledged as collateral
|
|
$
|
28,927
|
|
|
$
|
28,543
|
|
(1)
|
The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note
4
), derivative transactions (see Note
9
), secured debt (see
Note 12
), and a collateral financing arrangement (see Note
13
).
|
|
December 31,
|
||||||||||||||
|
2018
|
|
2017
|
||||||||||||
|
Total
Assets |
|
Total
Liabilities |
|
Total
Assets |
|
Total
Liabilities |
||||||||
|
(In millions)
|
||||||||||||||
Renewable energy partnership (1)
|
$
|
102
|
|
|
$
|
—
|
|
|
$
|
116
|
|
|
$
|
3
|
|
Investment funds (2)
|
79
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Other investments (1)
|
21
|
|
|
5
|
|
|
32
|
|
|
6
|
|
||||
Total
|
$
|
202
|
|
|
$
|
6
|
|
|
$
|
148
|
|
|
$
|
9
|
|
(1)
|
Assets of the renewable energy partnership and other investments primarily consisted of other invested assets.
|
(2)
|
Assets of the investment funds primarily consisted of cash and cash equivalents.
|
|
December 31,
|
||||||||||||||
|
2018
|
|
2017
|
||||||||||||
|
Carrying
Amount |
|
Maximum
Exposure to Loss (1) |
|
Carrying
Amount |
|
Maximum
Exposure to Loss (1) |
||||||||
|
(In millions)
|
||||||||||||||
Fixed maturity securities AFS:
|
|
|
|
|
|
|
|
||||||||
Structured Securities (2)
|
$
|
47,874
|
|
|
$
|
47,874
|
|
|
$
|
47,614
|
|
|
$
|
47,614
|
|
U.S. and foreign corporate
|
932
|
|
|
932
|
|
|
1,560
|
|
|
1,560
|
|
||||
Other limited partnership interests
|
5,641
|
|
|
9,888
|
|
|
4,834
|
|
|
8,543
|
|
||||
Other invested assets
|
1,906
|
|
|
2,063
|
|
|
2,291
|
|
|
2,625
|
|
||||
Other investments
|
296
|
|
|
300
|
|
|
82
|
|
|
87
|
|
||||
Total
|
$
|
56,649
|
|
|
$
|
61,057
|
|
|
$
|
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
$94 million
and
$117 million
at December 31,
2018
and
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.
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Investment income:
|
|
|
|
|
|
||||||
Fixed maturity securities AFS
|
$
|
11,946
|
|
|
$
|
11,497
|
|
|
$
|
11,721
|
|
Equity securities
|
64
|
|
|
129
|
|
|
121
|
|
|||
FVO Securities (1)
|
51
|
|
|
68
|
|
|
37
|
|
|||
Mortgage loans
|
3,340
|
|
|
3,082
|
|
|
2,858
|
|
|||
Policy loans
|
506
|
|
|
517
|
|
|
511
|
|
|||
Real estate and real estate joint ventures
|
694
|
|
|
646
|
|
|
652
|
|
|||
Other limited partnership interests
|
731
|
|
|
798
|
|
|
478
|
|
|||
Cash, cash equivalents and short-term investments
|
387
|
|
|
228
|
|
|
153
|
|
|||
Operating joint ventures
|
51
|
|
|
28
|
|
|
33
|
|
|||
Other
|
364
|
|
|
192
|
|
|
248
|
|
|||
Subtotal
|
18,134
|
|
|
17,185
|
|
|
16,812
|
|
|||
Less: Investment expenses
|
1,285
|
|
|
1,122
|
|
|
972
|
|
|||
Subtotal, net
|
16,849
|
|
|
16,063
|
|
|
15,840
|
|
|||
Unit-linked investments (1)
|
(683
|
)
|
|
1,300
|
|
|
950
|
|
|||
Net investment income
|
$
|
16,166
|
|
|
$
|
17,363
|
|
|
$
|
16,790
|
|
(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
($771) million
,
$662 million
and
$427 million
for the years ended
December 31, 2018
,
2017
, and
2016
, respectively.
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(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
|
$
|
(20
|
)
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
Finance
|
(9
|
)
|
|
—
|
|
|
—
|
|
|||
Industrial
|
(2
|
)
|
|
—
|
|
|
(63
|
)
|
|||
Utility
|
—
|
|
|
—
|
|
|
(21
|
)
|
|||
Communications
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||
Total U.S. and foreign corporate securities
|
(31
|
)
|
|
(4
|
)
|
|
(87
|
)
|
|||
Foreign government
|
(9
|
)
|
|
—
|
|
|
—
|
|
|||
ABS
|
—
|
|
|
(3
|
)
|
|
(2
|
)
|
|||
RMBS
|
—
|
|
|
—
|
|
|
(18
|
)
|
|||
Municipals
|
—
|
|
|
(3
|
)
|
|
—
|
|
|||
OTTI losses on fixed maturity securities AFS recognized in earnings
|
(40
|
)
|
|
(10
|
)
|
|
(107
|
)
|
|||
Fixed maturity securities AFS — net gains (losses) on sales and disposals (1)
|
45
|
|
|
328
|
|
|
251
|
|
|||
Total gains (losses) on fixed maturity securities AFS
|
5
|
|
|
318
|
|
|
144
|
|
|||
Total gains (losses) on equity securities:
|
|
|
|
|
|
||||||
Total OTTI losses recognized — by security type:
|
|
|
|
|
|
||||||
Common stock
|
—
|
|
|
(24
|
)
|
|
(75
|
)
|
|||
Non-redeemable preferred stock
|
—
|
|
|
(1
|
)
|
|
—
|
|
|||
OTTI losses on equity securities recognized in earnings
|
—
|
|
|
(25
|
)
|
|
(75
|
)
|
|||
Equity securities — net gains (losses) on sales and disposals
|
118
|
|
|
117
|
|
|
19
|
|
|||
Change in estimated fair value of equity securities (2)
|
(193
|
)
|
|
—
|
|
|
—
|
|
|||
Total gains (losses) on equity securities
|
(75
|
)
|
|
92
|
|
|
(56
|
)
|
|||
Mortgage loans (1)
|
(56
|
)
|
|
14
|
|
|
(231
|
)
|
|||
Real estate and real estate joint ventures
|
326
|
|
|
603
|
|
|
182
|
|
|||
Other limited partnership interests
|
9
|
|
|
(59
|
)
|
|
(64
|
)
|
|||
Other
|
(169
|
)
|
|
(113
|
)
|
|
(130
|
)
|
|||
Subtotal
|
40
|
|
|
855
|
|
|
(155
|
)
|
|||
Change in estimated fair value of other limited partnership interests and real estate joint ventures
|
12
|
|
|
—
|
|
|
—
|
|
|||
Non-investment portfolio gains (losses) (3), (4), (5)
|
(350
|
)
|
|
(1,162
|
)
|
|
471
|
|
|||
Other
|
—
|
|
|
(1
|
)
|
|
1
|
|
|||
Subtotal
|
(338
|
)
|
|
(1,163
|
)
|
|
472
|
|
|||
Total net investment gains (losses)
|
$
|
(298
|
)
|
|
$
|
(308
|
)
|
|
$
|
317
|
|
(1)
|
Fixed
maturity securities AFS — net gains (losses) on sales and disposals and mortgage loans for the year ended
December 31, 2017
, included
$276 million
and
$47 million
, respectively, in previously deferred gains on prior period transfers of such investments to Brighthouse. 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
($81) million
for the year ended
December 31, 2018
. See
Note 1
.
|
(3)
|
Non-investment portfolio gains (losses) for the year ended
December 31, 2018
includes a loss
of
$327 million
which represents both the change in estimated fair value of FVO Brighthouse Common Stock held by the Company through the date of disposal and the loss on disposal in June 2018. Non-investment portfolio gains (losses) for the year ended
December 31, 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
$95 million
which represents the change in estimated fair value of FVO Brighthouse Common Stock held by the Company from the date of Separation to
December 31, 2017
. See
Note 3
.
|
(4)
|
Non-investment portfolio gains (losses) for the year ended
December 31, 2017
includes a
$98 million
loss due to the disposition of MetLife Afore. See
Note 3
.
|
(5)
|
Non-investment portfolio gains (losses) for the year ended
December 31, 2016
includes a gain of
$102 million
in connection with the U.S. Retail Advisor Force Divestiture. See
Note 3
.
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Proceeds
|
$
|
85,058
|
|
|
$
|
56,509
|
|
|
$
|
86,179
|
|
Gross investment gains
|
$
|
856
|
|
|
$
|
753
|
|
|
$
|
1,048
|
|
Gross investment losses
|
(811
|
)
|
|
(425
|
)
|
|
(797
|
)
|
|||
OTTI losses
|
(40
|
)
|
|
(10
|
)
|
|
(107
|
)
|
|||
Net investment gains (losses)
|
$
|
5
|
|
|
$
|
318
|
|
|
$
|
144
|
|
|
Years Ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In millions)
|
||||||
Balance at January 1,
|
$
|
138
|
|
|
$
|
187
|
|
Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI
|
(47
|
)
|
|
(48
|
)
|
||
Increase in cash flows — accretion of previous credit loss OTTI
|
(2
|
)
|
|
(1
|
)
|
||
Balance at December 31,
|
$
|
89
|
|
|
$
|
138
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Freestanding derivative and hedging gains (losses) (1)
|
$
|
1,001
|
|
|
$
|
(1,389
|
)
|
|
$
|
(509
|
)
|
Embedded derivative gains (losses)
|
(150
|
)
|
|
799
|
|
|
(181
|
)
|
|||
Total net derivative gains (losses)
|
$
|
851
|
|
|
$
|
(590
|
)
|
|
$
|
(690
|
)
|
(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.
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Qualifying hedges:
|
|
|
|
|
|
||||||
Net investment income
|
$
|
360
|
|
|
$
|
299
|
|
|
$
|
267
|
|
Interest credited to policyholder account balances
|
(113
|
)
|
|
(64
|
)
|
|
(1
|
)
|
|||
Other expenses
|
(11
|
)
|
|
(10
|
)
|
|
(12
|
)
|
|||
Nonqualifying hedges:
|
|
|
|
|
|
||||||
Net investment income
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||
Net derivative gains (losses)
|
547
|
|
|
551
|
|
|
705
|
|
|||
Policyholder benefits and claims
|
11
|
|
|
9
|
|
|
7
|
|
|||
Total
|
$
|
794
|
|
|
$
|
785
|
|
|
$
|
965
|
|
|
Net
Derivative Gains (Losses) |
|
Net
Investment Income (1) |
|
Policyholder
Benefits and Claims (2) |
||||||
|
(In millions)
|
||||||||||
Year Ended December 31, 2018
|
|
|
|
|
|
||||||
Interest rate derivatives
|
$
|
(158
|
)
|
|
$
|
4
|
|
|
$
|
(6
|
)
|
Foreign currency exchange rate derivatives
|
518
|
|
|
—
|
|
|
(6
|
)
|
|||
Credit derivatives — purchased
|
6
|
|
|
—
|
|
|
—
|
|
|||
Credit derivatives — written
|
(132
|
)
|
|
—
|
|
|
—
|
|
|||
Equity derivatives
|
360
|
|
|
1
|
|
|
60
|
|
|||
Total
|
$
|
594
|
|
|
$
|
5
|
|
|
$
|
48
|
|
Year Ended December 31, 2017
|
|
|
|
|
|
||||||
Interest rate derivatives
|
$
|
(549
|
)
|
|
$
|
1
|
|
|
$
|
(1
|
)
|
Foreign currency exchange rate derivatives
|
(742
|
)
|
|
—
|
|
|
5
|
|
|||
Credit derivatives — purchased
|
(24
|
)
|
|
—
|
|
|
—
|
|
|||
Credit derivatives — written
|
145
|
|
|
—
|
|
|
—
|
|
|||
Equity derivatives
|
(1,046
|
)
|
|
(9
|
)
|
|
(252
|
)
|
|||
Total
|
$
|
(2,216
|
)
|
|
$
|
(8
|
)
|
|
$
|
(248
|
)
|
Year Ended December 31, 2016
|
|
|
|
|
|
||||||
Interest rate derivatives
|
$
|
(990
|
)
|
|
$
|
—
|
|
|
$
|
46
|
|
Foreign currency exchange rate derivatives
|
882
|
|
|
—
|
|
|
(18
|
)
|
|||
Credit derivatives — purchased
|
(40
|
)
|
|
—
|
|
|
—
|
|
|||
Credit derivatives — written
|
71
|
|
|
—
|
|
|
—
|
|
|||
Equity derivatives
|
(681
|
)
|
|
(16
|
)
|
|
(138
|
)
|
|||
Total
|
$
|
(758
|
)
|
|
$
|
(16
|
)
|
|
$
|
(110
|
)
|
(1)
|
Changes in estimated fair value related to economic hedges of equity method investments in joint ventures, derivatives held in relation to trading portfolios and derivatives held within Unit-linked investments.
As of D
ecember 31
, 2016, the Company no longer maintained a trading portfolio for derivatives.
|
(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)
|
||||||||||
Year Ended December 31, 2018
|
|
|
|
|
|
|
||||||||
Interest rate swaps:
|
|
Fixed maturity securities AFS
|
|
$
|
1
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
|
Policyholder liabilities (1)
|
|
(221
|
)
|
|
227
|
|
|
6
|
|
|||
Foreign currency swaps:
|
|
Foreign-denominated fixed maturity securities AFS and mortgage loans
|
|
55
|
|
|
(57
|
)
|
|
(2
|
)
|
|||
|
|
Foreign-denominated policyholder account balances (2)
|
|
23
|
|
|
(23
|
)
|
|
—
|
|
|||
Foreign currency forwards:
|
|
Foreign-denominated fixed maturity securities AFS
|
|
78
|
|
|
(70
|
)
|
|
8
|
|
|||
Total
|
|
$
|
(64
|
)
|
|
$
|
76
|
|
|
$
|
12
|
|
||
Year Ended December 31, 2017
|
|
|
|
|
|
|
||||||||
Interest rate swaps:
|
|
Fixed maturity securities AFS
|
|
$
|
4
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
|
Policyholder liabilities (1)
|
|
(69
|
)
|
|
134
|
|
|
65
|
|
|||
Foreign currency swaps:
|
|
Foreign-denominated fixed maturity securities AFS
|
|
(27
|
)
|
|
29
|
|
|
2
|
|
|||
|
|
Foreign-denominated policyholder account balances (2)
|
|
65
|
|
|
(44
|
)
|
|
21
|
|
|||
Foreign currency forwards:
|
|
Foreign-denominated fixed maturity securities AFS
|
|
13
|
|
|
(11
|
)
|
|
2
|
|
|||
Total
|
|
$
|
(14
|
)
|
|
$
|
104
|
|
|
$
|
90
|
|
||
Year Ended December 31, 2016
|
|
|
|
|
|
|
||||||||
Interest rate swaps:
|
|
Fixed maturity securities AFS
|
|
$
|
7
|
|
|
$
|
(9
|
)
|
|
$
|
(2
|
)
|
|
|
Policyholder liabilities (1)
|
|
(108
|
)
|
|
90
|
|
|
(18
|
)
|
|||
Foreign currency swaps:
|
|
Foreign-denominated fixed maturity securities AFS
|
|
13
|
|
|
(12
|
)
|
|
1
|
|
|||
|
|
Foreign-denominated policyholder account balances (2)
|
|
(95
|
)
|
|
92
|
|
|
(3
|
)
|
|||
Foreign currency forwards:
|
|
Foreign-denominated fixed maturity securities AFS
|
|
127
|
|
|
(119
|
)
|
|
8
|
|
|||
Total
|
|
$
|
(56
|
)
|
|
$
|
42
|
|
|
$
|
(14
|
)
|
(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)
|
||||||||||||||||||
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate swaps
|
|
$
|
(143
|
)
|
|
$
|
23
|
|
|
$
|
18
|
|
|
$
|
—
|
|
|
$
|
3
|
|
Interest rate forwards
|
|
(114
|
)
|
|
(2
|
)
|
|
2
|
|
|
1
|
|
|
—
|
|
|||||
Foreign currency swaps
|
|
414
|
|
|
(558
|
)
|
|
(5
|
)
|
|
2
|
|
|
8
|
|
|||||
Credit forwards
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
157
|
|
|
$
|
(536
|
)
|
|
$
|
16
|
|
|
$
|
3
|
|
|
$
|
11
|
|
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate swaps
|
|
$
|
78
|
|
|
$
|
24
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
18
|
|
Interest rate forwards
|
|
210
|
|
|
(11
|
)
|
|
2
|
|
|
1
|
|
|
(2
|
)
|
|||||
Foreign currency swaps
|
|
(335
|
)
|
|
974
|
|
|
—
|
|
|
2
|
|
|
(4
|
)
|
|||||
Credit forwards
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
(47
|
)
|
|
$
|
988
|
|
|
$
|
18
|
|
|
$
|
3
|
|
|
$
|
12
|
|
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate swaps
|
|
$
|
50
|
|
|
$
|
56
|
|
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
Interest rate forwards
|
|
(366
|
)
|
|
(1
|
)
|
|
4
|
|
|
1
|
|
|
—
|
|
|||||
Foreign currency swaps
|
|
589
|
|
|
(350
|
)
|
|
(2
|
)
|
|
2
|
|
|
1
|
|
|||||
Credit forwards
|
|
—
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
273
|
|
|
$
|
(292
|
)
|
|
$
|
15
|
|
|
$
|
3
|
|
|
$
|
—
|
|
Derivatives in Net Investment Hedging Relationships (1)
|
|
Amount of Gains (Losses) Deferred in AOCI
|
||||||||||
|
Years Ended December 31,
|
|||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||
|
|
(In millions)
|
||||||||||
Foreign currency forwards
|
|
$
|
35
|
|
|
$
|
(155
|
)
|
|
$
|
(267
|
)
|
Currency options
|
|
(160
|
)
|
|
(290
|
)
|
|
(35
|
)
|
|||
Total
|
|
$
|
(125
|
)
|
|
$
|
(445
|
)
|
|
$
|
(302
|
)
|
(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.
|
|
|
December 31,
|
||||||||||||||||||||
|
|
2018
|
|
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)
|
|
$
|
4
|
|
|
$
|
354
|
|
|
1.7
|
|
|
$
|
7
|
|
|
$
|
375
|
|
|
2.6
|
|
Credit default swaps referencing indices
|
|
28
|
|
|
2,154
|
|
|
2.5
|
|
|
44
|
|
|
2,268
|
|
|
2.7
|
|
||||
Subtotal
|
|
32
|
|
|
2,508
|
|
|
2.4
|
|
|
51
|
|
|
2,643
|
|
|
2.7
|
|
||||
Baa
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single name credit default swaps (3)
|
|
3
|
|
|
482
|
|
|
1.5
|
|
|
7
|
|
|
605
|
|
|
1.8
|
|
||||
Credit default swaps referencing indices
|
|
40
|
|
|
8,056
|
|
|
5.0
|
|
|
183
|
|
|
7,662
|
|
|
5.0
|
|
||||
Subtotal
|
|
43
|
|
|
8,538
|
|
|
4.8
|
|
|
190
|
|
|
8,267
|
|
|
4.8
|
|
||||
Ba
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single name credit default swaps (3)
|
|
—
|
|
|
15
|
|
|
2.0
|
|
|
1
|
|
|
115
|
|
|
3.4
|
|
||||
Credit default swaps referencing indices
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Subtotal
|
|
—
|
|
|
15
|
|
|
2.0
|
|
|
1
|
|
|
115
|
|
|
3.4
|
|
||||
B
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single name credit default swaps (3)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
20
|
|
|
3.5
|
|
||||
Credit default swaps referencing indices
|
|
7
|
|
|
330
|
|
|
5.0
|
|
|
27
|
|
|
330
|
|
|
5.0
|
|
||||
Subtotal
|
|
7
|
|
|
330
|
|
|
5.0
|
|
|
29
|
|
|
350
|
|
|
4.9
|
|
||||
Total
|
|
$
|
82
|
|
|
$
|
11,391
|
|
|
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 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.
|
|
|
December 31,
|
||||||||||||||
|
|
2018
|
|
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)
|
|
$
|
8,805
|
|
|
$
|
3,758
|
|
|
$
|
7,955
|
|
|
$
|
4,059
|
|
OTC-cleared (1), (6)
|
|
245
|
|
|
33
|
|
|
649
|
|
|
223
|
|
||||
Exchange-traded
|
|
18
|
|
|
80
|
|
|
22
|
|
|
8
|
|
||||
Total gross estimated fair value of derivatives (1)
|
|
9,068
|
|
|
3,871
|
|
|
8,626
|
|
|
4,290
|
|
||||
Amounts offset on the consolidated balance sheets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Estimated fair value of derivatives presented on the consolidated balance sheets (1), (6)
|
|
9,068
|
|
|
3,871
|
|
|
8,626
|
|
|
4,290
|
|
||||
Gross amounts not offset on the consolidated balance sheets:
|
|
|
|
|
|
|
|
|
||||||||
Gross estimated fair value of derivatives: (2)
|
|
|
|
|
|
|
|
|
||||||||
OTC-bilateral
|
|
(2,570
|
)
|
|
(2,570
|
)
|
|
(2,528
|
)
|
|
(2,528
|
)
|
||||
OTC-cleared
|
|
(25
|
)
|
|
(25
|
)
|
|
(35
|
)
|
|
(35
|
)
|
||||
Exchange-traded
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
||||
Cash collateral: (3), (4)
|
|
|
|
|
|
|
|
|
||||||||
OTC-bilateral
|
|
(4,709
|
)
|
|
—
|
|
|
(4,169
|
)
|
|
—
|
|
||||
OTC-cleared
|
|
(145
|
)
|
|
—
|
|
|
(584
|
)
|
|
(179
|
)
|
||||
Exchange-traded
|
|
—
|
|
|
(57
|
)
|
|
—
|
|
|
(5
|
)
|
||||
Securities collateral: (5)
|
|
|
|
|
|
|
|
|
||||||||
OTC-bilateral
|
|
(1,266
|
)
|
|
(1,134
|
)
|
|
(1,004
|
)
|
|
(1,474
|
)
|
||||
OTC-cleared
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(9
|
)
|
||||
Exchange-traded
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(2
|
)
|
||||
Net amount after application of master netting agreements and collateral
|
|
$
|
352
|
|
|
$
|
69
|
|
|
$
|
305
|
|
|
$
|
57
|
|
(1)
|
At
December 31, 2018
and
2017
, derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $
99 million
and $
75 million
, respectively, and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of
($59) 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
December 31, 2018
and
2017
, the Company received excess cash collateral of
$135 million
and
$253 million
, respectively, and provided excess cash collateral of
$226 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
December 31, 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
December 31, 2018
and
2017
, the Company received excess securities collateral with an estimated fair value of
$70 million
and
$108 million
, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At
December 31, 2018
and
2017
, the Company provided excess securities collateral with an estimated fair value of
$212 million
and
$305 million
, respectively, for its OTC-bilateral derivatives,
$601 million
and
$522 million
, respectively, for its OTC-cleared derivatives, and
$90 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. Effective January 3, 2017, the CME amended its rulebook, resulting in the characterization of variation margin transfers as settlement payments, as opposed to adjustments to collateral. See
Note 1
for further information on the LCH and CME amendments.
|
|
|
December 31,
|
||||||||||||||||||||||
|
|
2018
|
|
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)
|
|
$
|
1,148
|
|
|
$
|
40
|
|
|
$
|
1,188
|
|
|
$
|
1,508
|
|
|
$
|
24
|
|
|
$
|
1,532
|
|
Estimated Fair Value of Collateral Provided:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed maturity securities AFS
|
|
$
|
1,218
|
|
|
$
|
9
|
|
|
$
|
1,227
|
|
|
$
|
1,675
|
|
|
$
|
26
|
|
|
$
|
1,701
|
|
Cash
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Estimated Fair Value of Incremental Collateral Provided Upon:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One-notch downgrade in the Company’s credit or financial strength rating, as applicable
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
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
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
20
|
|
(1)
|
After taking into consideration the existence of netting agreements.
|
|
|
|
|
December 31,
|
||||||
|
|
Balance Sheet Location
|
|
2018
|
|
2017
|
||||
|
|
|
|
(In millions)
|
||||||
Embedded derivatives within asset host contracts:
|
|
|
|
|
|
|
||||
Ceded guaranteed minimum benefits
|
|
Premiums, reinsurance and other receivables
|
|
$
|
71
|
|
|
$
|
144
|
|
Options embedded in debt or equity securities (1)
|
|
Investments
|
|
—
|
|
|
(132
|
)
|
||
Embedded derivatives within asset host contracts
|
|
$
|
71
|
|
|
$
|
12
|
|
||
Embedded derivatives within liability host contracts:
|
|
|
|
|
||||||
Direct guaranteed minimum benefits
|
|
Policyholder account balances
|
|
$
|
298
|
|
|
$
|
32
|
|
Assumed guaranteed minimum benefits
|
|
Policyholder account balances
|
|
495
|
|
|
291
|
|
||
Funds withheld on ceded reinsurance
|
|
Other liabilities
|
|
(41
|
)
|
|
25
|
|
||
Fixed annuities with equity indexed returns
|
|
Policyholder account balances
|
|
58
|
|
|
70
|
|
||
Embedded derivatives within liability host contracts
|
|
$
|
810
|
|
|
$
|
418
|
|
(1)
|
Effective January 1, 2018, in connection with the adoption of new guidance related to the recognition and measurement of financial instruments, the Company was no longer required to bifurcate and account separately for derivatives embedded in equity securities (see
Note 1
). Beginning January 1, 2018, the change in fair value of equity securities was recognized as a component of net investment gains and losses.
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(In millions)
|
||||||||||
Net derivative gains (losses) (1)
|
|
$
|
(150
|
)
|
|
$
|
799
|
|
|
$
|
(181
|
)
|
(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
$133 million
,
($190) million
and
$156 million
for the years ended December 31,
2018
,
2017
and
2016
, respectively.
|
Level 1
|
Unadjusted quoted prices in active markets for identical assets or liabilities. The Company defines active markets based on average trading volume for equity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities AFS.
|
Level 2
|
Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. These inputs can include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other significant inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.
|
Level 3
|
Unobservable inputs that are supported by little or no market activity and are significant to the determination of estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability.
|
|
|
December 31, 2018
|
||||||||||||||
|
|
Fair Value Hierarchy
|
|
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated Fair Value |
||||||||
|
|
(In millions)
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities AFS:
|
|
|
|
|
|
|
|
|
||||||||
U.S. corporate
|
|
$
|
—
|
|
|
$
|
74,874
|
|
|
$
|
4,074
|
|
|
$
|
78,948
|
|
Foreign government
|
|
—
|
|
|
62,150
|
|
|
138
|
|
|
62,288
|
|
||||
Foreign corporate
|
|
—
|
|
|
50,310
|
|
|
6,393
|
|
|
56,703
|
|
||||
U.S. government and agency
|
|
19,656
|
|
|
19,666
|
|
|
—
|
|
|
39,322
|
|
||||
RMBS
|
|
—
|
|
|
24,734
|
|
|
3,227
|
|
|
27,961
|
|
||||
ABS
|
|
—
|
|
|
11,775
|
|
|
697
|
|
|
12,472
|
|
||||
Municipals
|
|
—
|
|
|
11,533
|
|
|
—
|
|
|
11,533
|
|
||||
CMBS
|
|
—
|
|
|
8,696
|
|
|
342
|
|
|
9,038
|
|
||||
Total fixed maturity securities AFS
|
|
19,656
|
|
|
263,738
|
|
|
14,871
|
|
|
298,265
|
|
||||
Equity securities
|
|
916
|
|
|
105
|
|
|
419
|
|
|
1,440
|
|
||||
Unit-linked and FVO Securities (1)
|
|
10,216
|
|
|
1,995
|
|
|
405
|
|
|
12,616
|
|
||||
Short-term investments (2)
|
|
1,470
|
|
|
1,746
|
|
|
33
|
|
|
3,249
|
|
||||
Residential mortgage loans — FVO
|
|
—
|
|
|
—
|
|
|
299
|
|
|
299
|
|
||||
Other investments
|
|
80
|
|
|
118
|
|
|
39
|
|
|
237
|
|
||||
Derivative assets: (3)
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
1
|
|
|
4,809
|
|
|
33
|
|
|
4,843
|
|
||||
Foreign currency exchange rate
|
|
4
|
|
|
2,922
|
|
|
52
|
|
|
2,978
|
|
||||
Credit
|
|
—
|
|
|
91
|
|
|
29
|
|
|
120
|
|
||||
Equity market
|
|
13
|
|
|
956
|
|
|
59
|
|
|
1,028
|
|
||||
Total derivative assets
|
|
18
|
|
|
8,778
|
|
|
173
|
|
|
8,969
|
|
||||
Embedded derivatives within asset host contracts (4)
|
|
—
|
|
|
—
|
|
|
71
|
|
|
71
|
|
||||
Separate account assets (5)
|
|
79,726
|
|
|
94,886
|
|
|
944
|
|
|
175,556
|
|
||||
Total assets (6)
|
|
$
|
112,082
|
|
|
$
|
371,366
|
|
|
$
|
17,254
|
|
|
$
|
500,702
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities: (3)
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
$
|
3
|
|
|
$
|
194
|
|
|
$
|
218
|
|
|
$
|
415
|
|
Foreign currency exchange rate
|
|
—
|
|
|
2,660
|
|
|
89
|
|
|
2,749
|
|
||||
Credit
|
|
—
|
|
|
48
|
|
|
4
|
|
|
52
|
|
||||
Equity market
|
|
77
|
|
|
550
|
|
|
87
|
|
|
714
|
|
||||
Total derivative liabilities
|
|
80
|
|
|
3,452
|
|
|
398
|
|
|
3,930
|
|
||||
Embedded derivatives within liability host contracts (4)
|
|
—
|
|
|
—
|
|
|
810
|
|
|
810
|
|
||||
Separate account liabilities (5)
|
|
1
|
|
|
20
|
|
|
7
|
|
|
28
|
|
||||
Total liabilities
|
|
$
|
81
|
|
|
$
|
3,472
|
|
|
$
|
1,215
|
|
|
$
|
4,768
|
|
|
|
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
|
|
||||
ABS
|
|
—
|
|
|
11,204
|
|
|
1,087
|
|
|
12,291
|
|
||||
Municipals
|
|
—
|
|
|
12,455
|
|
|
—
|
|
|
12,455
|
|
||||
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
December 31, 2018
and
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 consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables.
|
(4)
|
Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables and other invested assets on the consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the consolidated balance sheets. At
December 31, 2018
and
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.
|
(6)
|
In connection with the adoption of new guidance related to the recognition and measurement of financial instruments (see
Note 1
), other limited partnership interests are measured at estimated fair value on a recurring basis, effective January 1, 2018. This represents the former cost method investments held as of January 1, 2018 that were measured at estimated fair value on a recurring basis upon adoption of this guidance. Total assets included in the fair value hierarchy exclude these other limited partnership interests that are measured at estimated fair value using the net asset value (“NAV”) per share (or its equivalent) practical expedient. At
December 31, 2018
, the estimated fair value of such investments was
$145 million
.
|
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 securities, U.S. government and agency securities and Municipals
|
|||||
|
Valuation Approaches: Principally the market approach.
|
Valuation Approaches: Principally the market approach.
|
|||
|
Key Inputs:
|
Key Inputs:
|
|||
|
•
|
quoted prices in markets that are not active
|
•
|
independent non-binding broker quotations
|
|
|
•
|
benchmark U.S. Treasury yield or other yields
|
•
|
quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2
|
|
|
•
|
the spread off the U.S. Treasury yield curve for the identical security
|
|
||
|
•
|
issuer ratings and issuer spreads; broker-dealer quotes
|
•
|
credit spreads
|
|
|
•
|
comparable securities that are actively traded
|
|
|
|
Structured Securities
|
|||||
|
Valuation Approaches: Principally the market and income approaches.
|
Valuation Approaches: Principally the market and income approaches.
|
|||
|
Key Inputs:
|
Key Inputs:
|
|||
|
•
|
quoted prices in markets that are not active
|
•
|
credit spreads
|
|
|
•
|
spreads for actively traded securities; spreads off benchmark yields
|
•
|
quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2
|
|
|
•
|
expected prepayment speeds and volumes
|
|
||
|
•
|
current and forecasted loss severity; ratings; geographic region
|
•
|
independent non-binding broker quotations
|
|
|
•
|
weighted average coupon and weighted average maturity
|
|
|
|
|
•
|
average delinquency rates; debt-service coverage ratios
|
|
|
|
|
•
|
issuance-specific information, including, but not limited to:
|
|
|
|
|
|
•
|
collateral type; structure of the security; vintage of the loans
|
|
|
|
|
•
|
payment terms of the underlying assets
|
|
|
|
|
•
|
payment priority within the tranche; deal performance
|
|
|
(1)
|
Estimated fair value equals carrying value, based on the value of the underlying assets, including: mutual fund interests, fixed maturity securities, equity securities, derivatives, hedge funds, other limited partnership interests, short-term investments and cash and cash equivalents. Fixed maturity securities, equity securities, derivatives, short-term investments and cash and cash equivalents are similar in nature to the instruments described under “— Securities, Short-term Investments and Other Investments,” and “— Derivatives — Freestanding Derivatives.”
|
Instrument
|
|
Interest Rate
|
|
Foreign Currency
Exchange Rate
|
|
Credit
|
|
Equity Market
|
Inputs common to Level 2 and Level 3 by instrument type
|
•
|
swap yield curves
|
•
|
swap yield curves
|
•
|
swap yield curves
|
•
|
swap yield curves
|
•
|
basis curves
|
•
|
basis curves
|
•
|
credit curves
|
•
|
spot equity index levels
|
|
•
|
interest rate volatility (1)
|
•
|
currency spot rates
|
•
|
recovery rates
|
•
|
dividend yield curves
|
|
|
|
|
•
|
cross currency basis curves
|
|
|
•
|
equity volatility (1)
|
|
|
|
•
|
currency volatility (1)
|
|
|
|
|
Level 3
|
•
|
swap yield curves (2)
|
•
|
swap yield curves (2)
|
•
|
swap yield curves (2)
|
•
|
dividend yield curves (2)
|
|
•
|
basis curves (2)
|
•
|
basis curves (2)
|
•
|
credit curves (2)
|
•
|
equity volatility (1), (2)
|
|
•
|
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).
|
|
|
|
|
|
|
|
December 31, 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
|
-
|
134
|
|
104
|
|
83
|
-
|
142
|
|
110
|
|
Increase
|
|
•
|
Market pricing
|
|
•
|
Quoted prices (4)
|
|
25
|
-
|
638
|
|
110
|
|
10
|
-
|
443
|
|
121
|
|
Increase
|
|
•
|
Consensus pricing
|
|
•
|
Offered quotes (4)
|
|
100
|
-
|
110
|
|
102
|
|
97
|
-
|
104
|
|
101
|
|
Increase
|
RMBS
|
•
|
Market pricing
|
|
•
|
Quoted prices (4)
|
|
—
|
-
|
106
|
|
94
|
|
—
|
-
|
126
|
|
94
|
|
Increase (5)
|
ABS
|
•
|
Market pricing
|
|
•
|
Quoted prices (4)
|
|
3
|
-
|
116
|
|
97
|
|
5
|
-
|
117
|
|
100
|
|
Increase (5)
|
|
•
|
Consensus pricing
|
|
•
|
Offered quotes (4)
|
|
100
|
-
|
103
|
|
101
|
|
100
|
-
|
103
|
|
100
|
|
Increase (5)
|
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
|
•
|
Present value techniques
|
|
•
|
Swap yield (6)
|
|
268
|
-
|
317
|
|
|
|
200
|
-
|
300
|
|
|
|
Increase (7)
|
|
|
|
|
•
|
Repurchase rates (8)
|
|
(5)
|
-
|
6
|
|
|
|
(5)
|
-
|
5
|
|
|
|
Decrease (7)
|
Foreign currency exchange rate
|
•
|
Present value techniques
|
|
•
|
Swap yield (6)
|
|
(20)
|
-
|
328
|
|
|
|
(14)
|
-
|
309
|
|
|
|
Increase (7)
|
Credit
|
•
|
Present value techniques
|
|
•
|
Credit spreads (9)
|
|
97
|
-
|
103
|
|
|
|
—
|
-
|
—
|
|
|
|
Decrease (7)
|
|
•
|
Consensus pricing
|
|
•
|
Offered quotes (10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity market
|
•
|
Present value techniques or option pricing models
|
|
•
|
Volatility (11)
|
|
21%
|
-
|
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%
|
-
|
0.18%
|
|
|
|
0%
|
-
|
0.21%
|
|
|
|
Decrease (13)
|
|
|
|
|
|
Ages 41 - 60
|
|
0.03%
|
-
|
0.80%
|
|
|
|
0.03%
|
-
|
0.75%
|
|
|
|
Decrease (13)
|
|
|
|
|
|
Ages 61 - 115
|
|
0.12%
|
-
|
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
|
|
7.16%
|
-
|
30%
|
|
|
|
8.25%
|
-
|
33%
|
|
|
|
Increase (17)
|
|
|
|
|
•
|
Nonperformance risk spread
|
|
0.04%
|
-
|
1.77%
|
|
|
|
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 resulted in 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 have resulted 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 would have been 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
December 31, 2018
and
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
|
|
Municipals
|
|
Equity
Securities |
|
Unit-linked and FVO
Securities |
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Balance, January 1, 2017
|
|
$
|
11,537
|
|
|
$
|
289
|
|
|
$
|
5,215
|
|
|
$
|
10
|
|
|
$
|
468
|
|
|
$
|
287
|
|
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)
|
|
3
|
|
|
4
|
|
|
94
|
|
|
—
|
|
|
—
|
|
|
22
|
|
||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
708
|
|
|
—
|
|
|
133
|
|
|
—
|
|
|
19
|
|
|
—
|
|
||||||
Purchases (4)
|
|
3,830
|
|
|
30
|
|
|
1,376
|
|
|
—
|
|
|
25
|
|
|
292
|
|
||||||
Sales (4)
|
|
(1,763
|
)
|
|
(53
|
)
|
|
(1,598
|
)
|
|
—
|
|
|
(51
|
)
|
|
(141
|
)
|
||||||
Issuances (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Transfers into Level 3 (5)
|
|
72
|
|
|
5
|
|
|
70
|
|
|
—
|
|
|
1
|
|
|
8
|
|
||||||
Transfers out of Level 3 (5)
|
|
(3,168
|
)
|
|
(66
|
)
|
|
(449
|
)
|
|
(10
|
)
|
|
(34
|
)
|
|
(106
|
)
|
||||||
Balance, December 31, 2017
|
|
11,219
|
|
|
209
|
|
|
4,841
|
|
|
—
|
|
|
428
|
|
|
362
|
|
||||||
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)
|
|
9
|
|
|
3
|
|
|
82
|
|
|
—
|
|
|
(36
|
)
|
|
6
|
|
||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
(745
|
)
|
|
(14
|
)
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Purchases (4)
|
|
1,903
|
|
|
5
|
|
|
1,142
|
|
|
—
|
|
|
13
|
|
|
263
|
|
||||||
Sales (4)
|
|
(1,464
|
)
|
|
(47
|
)
|
|
(946
|
)
|
|
—
|
|
|
(28
|
)
|
|
(176
|
)
|
||||||
Issuances (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Transfers into Level 3 (5)
|
|
152
|
|
|
—
|
|
|
59
|
|
|
—
|
|
|
52
|
|
|
9
|
|
||||||
Transfers out of Level 3 (5)
|
|
(607
|
)
|
|
(18
|
)
|
|
(889
|
)
|
|
—
|
|
|
(10
|
)
|
|
(59
|
)
|
||||||
Balance, December 31, 2018
|
|
$
|
10,467
|
|
|
$
|
138
|
|
|
$
|
4,266
|
|
|
$
|
—
|
|
|
$
|
419
|
|
|
$
|
405
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2016: (6)
|
|
$
|
6
|
|
|
$
|
12
|
|
|
$
|
103
|
|
|
$
|
1
|
|
|
$
|
(29
|
)
|
|
$
|
3
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2017: (6)
|
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
84
|
|
|
$
|
—
|
|
|
$
|
(17
|
)
|
|
$
|
19
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2018: (6)
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
70
|
|
|
$
|
—
|
|
|
$
|
(26
|
)
|
|
$
|
8
|
|
Gains (Losses) Data for the year ended December 31, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)
|
|
$
|
5
|
|
|
$
|
12
|
|
|
$
|
103
|
|
|
$
|
1
|
|
|
$
|
(24
|
)
|
|
$
|
2
|
|
Total realized/unrealized gains (losses) included in AOCI
|
|
$
|
59
|
|
|
$
|
(42
|
)
|
|
$
|
56
|
|
|
$
|
2
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||
|
|
Short-term
Investments
|
|
Residential Mortgage
Loans - FVO
|
|
Other Investments
|
|
Net
Derivatives (7)
|
|
Net Embedded
Derivatives (8)
|
|
Separate
Accounts
(9)
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Balance, January 1, 2017
|
|
$
|
46
|
|
|
$
|
566
|
|
|
$
|
—
|
|
|
$
|
(562
|
)
|
|
$
|
(729
|
)
|
|
$
|
1,141
|
|
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)
|
|
—
|
|
|
40
|
|
|
—
|
|
|
87
|
|
|
823
|
|
|
(8
|
)
|
||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|
216
|
|
|
(46
|
)
|
|
—
|
|
||||||
Purchases (4)
|
|
32
|
|
|
175
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
187
|
|
||||||
Sales (4)
|
|
(1
|
)
|
|
(179
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(80
|
)
|
||||||
Issuances (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
1
|
|
||||||
Settlements (4)
|
|
—
|
|
|
(82
|
)
|
|
—
|
|
|
134
|
|
|
(322
|
)
|
|
(93
|
)
|
||||||
Transfers into Level 3 (5)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35
|
|
||||||
Transfers out of Level 3 (5)
|
|
(44
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(224
|
)
|
||||||
Balance, December 31, 2017
|
|
33
|
|
|
520
|
|
|
—
|
|
|
(132
|
)
|
|
(274
|
)
|
|
959
|
|
||||||
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)
|
|
(1
|
)
|
|
7
|
|
|
—
|
|
|
(161
|
)
|
|
(150
|
)
|
|
7
|
|
||||||
Total realized/unrealized gains (losses) included in AOCI
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(140
|
)
|
|
(15
|
)
|
|
—
|
|
||||||
Purchases (4)
|
|
34
|
|
|
—
|
|
|
39
|
|
|
5
|
|
|
—
|
|
|
198
|
|
||||||
Sales (4)
|
|
(12
|
)
|
|
(162
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(168
|
)
|
||||||
Issuances (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(3
|
)
|
||||||
Settlements (4)
|
|
—
|
|
|
(66
|
)
|
|
—
|
|
|
204
|
|
|
(300
|
)
|
|
(1
|
)
|
||||||
Transfers into Level 3 (5)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53
|
|
||||||
Transfers out of Level 3 (5)
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(108
|
)
|
||||||
Balance, December 31, 2018
|
|
$
|
33
|
|
|
$
|
299
|
|
|
$
|
39
|
|
|
$
|
(225
|
)
|
|
$
|
(739
|
)
|
|
$
|
937
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2016: (6)
|
|
$
|
1
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
(56
|
)
|
|
$
|
(242
|
)
|
|
$
|
—
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2017: (6)
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
53
|
|
|
$
|
793
|
|
|
$
|
—
|
|
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2018: (6)
|
|
$
|
(1
|
)
|
|
$
|
(15
|
)
|
|
$
|
—
|
|
|
$
|
(59
|
)
|
|
$
|
(150
|
)
|
|
$
|
—
|
|
Gains (Losses) Data for the year ended December 31, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)
|
|
$
|
1
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
(31
|
)
|
|
$
|
(214
|
)
|
|
$
|
(2
|
)
|
Total realized/unrealized gains (losses) included in AOCI
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(367
|
)
|
|
$
|
(20
|
)
|
|
$
|
—
|
|
(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)
|
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.
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(In millions)
|
||||||
Unpaid principal balance
|
|
$
|
344
|
|
|
$
|
650
|
|
Difference between estimated fair value and unpaid principal balance
|
|
(45
|
)
|
|
(130
|
)
|
||
Carrying value at estimated fair value
|
|
$
|
299
|
|
|
$
|
520
|
|
Loans in nonaccrual status
|
|
$
|
89
|
|
|
$
|
198
|
|
Loans more than 90 days past due
|
|
$
|
41
|
|
|
$
|
94
|
|
Loans in nonaccrual status or more than 90 days past due, or both — difference between aggregate estimated fair value and unpaid principal balance
|
|
$
|
(36
|
)
|
|
$
|
(102
|
)
|
|
At December 31,
|
|
Years Ended December 31,
|
||||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
||||||||||||||
|
Carrying Value After Measurement
|
|
Gains (Losses)
|
||||||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||
Other limited partnership interests (1)
|
N/A
|
|
(2)
|
|
$
|
58
|
|
|
$
|
96
|
|
|
N/A
|
|
(2)
|
|
$
|
(65
|
)
|
|
$
|
(64
|
)
|
||
Other assets (3)
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
$
|
10
|
|
|
$
|
(30
|
)
|
(1)
|
Estimated fair value is determined from information provided on the financial statements of the underlying entities including NAV data. These investments include private equity and debt funds that typically invest primarily in various strategies including leveraged buyout funds; power, energy, timber and infrastructure development funds; venture capital funds; and below investment grade debt and mezzanine debt funds. In the future, distributions will be generated from investment gains, from operating income from the underlying investments of the funds and from liquidation of the underlying assets of the funds, the exact timing of which is uncertain.
|
(2)
|
In connection with the adoption of new guidance related to the recognition and measurement of financial instruments (see
Note 1
), other limited partnership interests are measured at estimated fair value on a recurring basis effective January 1, 2018.
|
(3)
|
As discussed in
Note 3
, during the year ended December 31, 2016, the Company recognized an impairment of computer software in connection with the U.S. Retail Advisor Force Divestiture.
|
|
|
December 31, 2018
|
||||||||||||||||||
|
|
|
|
Fair Value Hierarchy
|
|
|
||||||||||||||
|
|
Carrying
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated
Fair Value
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage loans
|
|
$
|
75,453
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
76,379
|
|
|
$
|
76,379
|
|
Policy loans
|
|
$
|
9,699
|
|
|
$
|
—
|
|
|
$
|
338
|
|
|
$
|
11,028
|
|
|
$
|
11,366
|
|
Other invested assets
|
|
$
|
1,177
|
|
|
$
|
—
|
|
|
$
|
793
|
|
|
$
|
383
|
|
|
$
|
1,176
|
|
Premiums, reinsurance and other receivables
|
|
$
|
3,658
|
|
|
$
|
—
|
|
|
$
|
903
|
|
|
$
|
2,894
|
|
|
$
|
3,797
|
|
Other assets
|
|
$
|
326
|
|
|
$
|
—
|
|
|
$
|
164
|
|
|
$
|
186
|
|
|
$
|
350
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder account balances
|
|
$
|
114,040
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
114,924
|
|
|
$
|
114,924
|
|
Long-term debt
|
|
$
|
12,820
|
|
|
$
|
—
|
|
|
$
|
13,611
|
|
|
$
|
—
|
|
|
$
|
13,611
|
|
Collateral financing arrangement
|
|
$
|
1,060
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
853
|
|
|
$
|
853
|
|
Junior subordinated debt securities
|
|
$
|
3,147
|
|
|
$
|
—
|
|
|
$
|
3,738
|
|
|
$
|
—
|
|
|
$
|
3,738
|
|
Other liabilities
|
|
$
|
2,963
|
|
|
$
|
—
|
|
|
$
|
1,324
|
|
|
$
|
2,194
|
|
|
$
|
3,518
|
|
Separate account liabilities
|
|
$
|
104,010
|
|
|
$
|
—
|
|
|
$
|
104,010
|
|
|
$
|
—
|
|
|
$
|
104,010
|
|
|
|
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
|
|
|
U.S.
|
|
Asia (1)
|
|
Latin
America
|
|
EMEA
|
|
MetLife
Holdings
|
|
Corporate
& Other
|
|
Total
|
||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||
Balance at January 1, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Goodwill
|
$
|
1,451
|
|
|
$
|
4,508
|
|
|
$
|
1,186
|
|
|
$
|
1,143
|
|
|
$
|
1,567
|
|
|
$
|
42
|
|
|
$
|
9,897
|
|
Accumulated impairment (2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(680
|
)
|
|
—
|
|
|
(680
|
)
|
|||||||
Total goodwill, net
|
1,451
|
|
|
4,508
|
|
|
1,186
|
|
|
1,143
|
|
|
887
|
|
|
42
|
|
|
9,217
|
|
|||||||
Dispositions (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42
|
)
|
|
(42
|
)
|
|||||||
Effect of foreign currency translation and other
|
—
|
|
|
88
|
|
|
40
|
|
|
(83
|
)
|
|
—
|
|
|
—
|
|
|
45
|
|
|||||||
Balance at December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Goodwill
|
1,451
|
|
|
4,596
|
|
|
1,226
|
|
|
1,060
|
|
|
1,567
|
|
|
—
|
|
|
9,900
|
|
|||||||
Accumulated impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(680
|
)
|
|
—
|
|
|
(680
|
)
|
|||||||
Total goodwill, net
|
1,451
|
|
|
4,596
|
|
|
1,226
|
|
|
1,060
|
|
|
887
|
|
|
—
|
|
|
9,220
|
|
|||||||
Acquisition
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
103
|
|
|
103
|
|
|||||||
Dispositions (4)
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|||||||
Effect of foreign currency translation and other
|
—
|
|
|
77
|
|
|
96
|
|
|
110
|
|
|
—
|
|
|
—
|
|
|
283
|
|
|||||||
Balance at December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Goodwill
|
1,451
|
|
|
4,673
|
|
|
1,306
|
|
|
1,170
|
|
|
1,567
|
|
|
103
|
|
|
10,270
|
|
|||||||
Accumulated impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(680
|
)
|
|
—
|
|
|
(680
|
)
|
|||||||
Total goodwill, net
|
1,451
|
|
|
4,673
|
|
|
1,306
|
|
|
1,170
|
|
|
887
|
|
|
103
|
|
|
9,590
|
|
|||||||
Effect of foreign currency translation and other
|
—
|
|
|
17
|
|
|
(134
|
)
|
|
(51
|
)
|
|
—
|
|
|
—
|
|
|
(168
|
)
|
|||||||
Balance at December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Goodwill
|
1,451
|
|
|
4,690
|
|
|
1,172
|
|
|
1,119
|
|
|
1,567
|
|
|
103
|
|
|
10,102
|
|
|||||||
Accumulated impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(680
|
)
|
|
—
|
|
|
(680
|
)
|
|||||||
Total goodwill, net
|
$
|
1,451
|
|
|
$
|
4,690
|
|
|
$
|
1,172
|
|
|
$
|
1,119
|
|
|
$
|
887
|
|
|
$
|
103
|
|
|
$
|
9,422
|
|
(1)
|
Includes goodwill of
$4.5 billion
,
$4.5 billion
and
$4.4 billion
from the Japan operations at December 31, 2018, 2017 and 2016, respectively.
|
(2)
|
The
$680 million
accumulated impairment in the MetLife Holdings segment relates to the retail annuities business impaired in 2012 that was not part of the Separation. See Note 3.
|
(3)
|
In connection with the U.S. Retail Advisor Force Divestiture, goodwill in Corporate & Other was reduced by
$42 million
for the year ended December 31, 2016. See
Note 3
.
|
(4)
|
In connection with the disposition of MetLife Afore, goodwill was reduced by
$16 million
for the year ended December 31, 2017. See
Note 3
.
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|||||||||||||||||||||||
|
Interest Rates (1)
|
|
|
|
2018
|
|
2017
|
|||||||||||||||||||||||||||
|
Range
|
|
Weighted
Average |
Maturity
|
Face
Value
|
|
Unamortized
Discount and Issuance Costs
|
|
Carrying
Value
|
|
Face
Value
|
|
Unamortized
Discount and Issuance Costs
|
|
Carrying
Value
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
|||||||||||||||||||||||
Senior notes
|
3.00
|
%
|
-
|
6.50%
|
|
4.96%
|
|
2020
|
-
|
2046
|
|
$
|
11,923
|
|
|
$
|
(79
|
)
|
|
$
|
11,844
|
|
|
$
|
14,685
|
|
|
$
|
(86
|
)
|
|
$
|
14,599
|
|
Surplus notes
|
7.63
|
%
|
-
|
7.88%
|
|
7.79%
|
|
2024
|
-
|
2025
|
|
507
|
|
|
(4
|
)
|
|
503
|
|
|
507
|
|
|
(5
|
)
|
|
502
|
|
||||||
Other notes (2)
|
2.99
|
%
|
-
|
6.50%
|
|
4.92%
|
|
2020
|
-
|
2058
|
|
477
|
|
|
$
|
(4
|
)
|
|
473
|
|
|
578
|
|
|
(4
|
)
|
|
574
|
|
|||||
Capital lease obligations
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|||||||
Total long-term debt
|
|
|
|
|
|
|
|
|
|
|
12,911
|
|
|
(87
|
)
|
|
12,824
|
|
|
15,775
|
|
|
(95
|
)
|
|
15,680
|
|
|||||||
Total short-term debt
|
|
|
|
|
|
|
|
|
|
|
268
|
|
|
—
|
|
|
268
|
|
|
477
|
|
|
—
|
|
|
477
|
|
|||||||
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
13,179
|
|
|
$
|
(87
|
)
|
|
$
|
13,092
|
|
|
$
|
16,252
|
|
|
$
|
(95
|
)
|
|
$
|
16,157
|
|
(1)
|
Range of interest rates and weighted average interest rates are for the year ended December 31,
2018
.
|
(2)
|
During 2017, an affiliate issued
$139 million
of long-term debt to a third party.
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(Dollars in millions)
|
||||||
Commercial paper
|
|
$
|
99
|
|
|
$
|
100
|
|
Short-term borrowings (1)
|
|
169
|
|
|
377
|
|
||
Total short-term debt
|
|
$
|
268
|
|
|
$
|
477
|
|
Average daily balance
|
|
$
|
429
|
|
|
$
|
280
|
|
Average days outstanding
|
|
32 days
|
|
|
27 days
|
|
(1)
|
Includes
$169 million
and
$374 million
at December 31,
2018
and
2017
, respectively, of short-term debt related to repurchase agreements, secured by assets of subsidiaries.
|
Borrower(s)
|
|
Expiration
|
|
Maximum
Capacity |
|
Letters of
Credit Issued |
|
Drawdowns
|
|
Unused
Commitments |
||||||||||
|
|
|
|
|
(In millions)
|
|||||||||||||||
MetLife, Inc. and MetLife Funding, Inc.
|
|
December 2021
|
(1)
|
|
$
|
3,000
|
|
(1)
|
|
$
|
446
|
|
|
$
|
—
|
|
|
$
|
2,554
|
|
(1)
|
All borrowings under the Credit Facility must be repaid by
December 20, 2021
, except that letters of credit outstanding upon termination may remain outstanding until
December 20, 2022
.
|
Account Party/Borrower(s)
|
|
Expiration
|
|
Maximum Capacity
|
|
Letters of
Credit Issued |
|
Drawdowns
|
|
Unused
Commitments |
||||||||
|
|
|
|
(In millions)
|
||||||||||||||
MetLife Reinsurance Company of Vermont and MetLife, Inc.
|
|
December 2024 (1), (2)
|
|
$
|
400
|
|
|
$
|
385
|
|
|
$
|
—
|
|
|
$
|
15
|
|
MetLife Reinsurance Company of Vermont and MetLife, Inc.
|
|
December 2037 (1), (3)
|
|
2,896
|
|
|
2,420
|
|
|
—
|
|
|
476
|
|
||||
Total
|
|
|
|
$
|
3,296
|
|
|
$
|
2,805
|
|
|
$
|
—
|
|
|
$
|
491
|
|
(1)
|
MetLife, Inc. is a guarantor under the applicable facility.
|
(2)
|
Capacity decreases in June 2022, December 2022, June 2023, December 2023 and December 2024 to
$380 million
,
$360 million
,
$310 million
,
$260 million
and
$0
, respectively.
|
(3)
|
Capacity at December 31,
2018
of
$2.6 billion
increases periodically to a maximum of
$2.9 billion
in 2024, decreases periodically commencing in 2025 to
$2.0 billion
in 2037, and decreases to
$0
at expiration in December 2037. Unused commitment of
$476 million
is based on maximum capacity. At December 31,
2018
, Brighthouse is a beneficiary of
$2.4 billion
of letters of credit issued under this facility and, in consideration, Brighthouse reimburses MetLife, Inc. for a portion of the letter of credit fees. See
Note 3
.
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(In millions)
|
||||||
Surplus notes outstanding (1)
|
|
$
|
1,060
|
|
|
$
|
1,121
|
|
Receivable from unaffiliated financial institution (1)
|
|
$
|
139
|
|
|
$
|
146
|
|
Pledged collateral (2)
|
|
$
|
83
|
|
|
$
|
97
|
|
Assets held in trust (2)
|
|
$
|
1,370
|
|
|
$
|
1,248
|
|
(1)
|
Carrying value.
|
(2)
|
Estimated fair value.
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
||||||||||||||||||||
Issuer
|
|
Issue
Date
|
|
Interest
Rate (1)
|
|
Scheduled
Redemption
Date
|
|
Interest Rate
Subsequent to
Scheduled
Redemption
Date (2)
|
|
Final
Maturity
|
|
Face
Value
|
|
Unamortized
Discount
and Issuance Costs
|
|
Carrying
Value
|
|
Face
Value |
|
Unamortized
Discount and Issuance Costs |
|
Carrying
Value
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
||||||||||||||||||||||
MetLife, Inc.
|
|
December 2006
|
|
6.400%
|
|
December 2036
|
|
LIBOR + 2.205%
|
|
December 2066
|
|
$
|
1,250
|
|
|
$
|
(19
|
)
|
|
$
|
1,231
|
|
|
$
|
1,250
|
|
|
$
|
(21
|
)
|
|
$
|
1,229
|
|
MetLife Capital Trust IV (3)
|
|
December 2007
|
|
7.875%
|
|
December 2037
|
|
LIBOR + 3.960%
|
|
December 2067
|
|
700
|
|
|
(16
|
)
|
|
684
|
|
|
700
|
|
|
(17
|
)
|
|
683
|
|
||||||
MetLife, Inc. (4)
|
|
April 2008
|
|
9.250%
|
|
April 2038
|
|
LIBOR + 5.540%
|
|
April 2068
|
|
750
|
|
|
(11
|
)
|
|
739
|
|
|
750
|
|
|
(11
|
)
|
|
739
|
|
||||||
MetLife, Inc.
|
|
July 2009
|
|
10.750%
|
|
August 2039
|
|
LIBOR + 7.548%
|
|
August 2069
|
|
500
|
|
|
(7
|
)
|
|
493
|
|
|
500
|
|
|
(7
|
)
|
|
493
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,200
|
|
|
$
|
(53
|
)
|
|
$
|
3,147
|
|
|
$
|
3,200
|
|
|
$
|
(56
|
)
|
|
$
|
3,144
|
|
(1)
|
Prior to the scheduled redemption date, interest is payable semiannually in arrears.
|
(2)
|
In the event the securities are not redeemed on or before the scheduled redemption date, interest will accrue after such date at an annual rate of
three-month LIBOR
plus the indicated margin, payable quarterly in arrears.
|
(3)
|
MetLife Capital Trust IV is a VIE which is consolidated on the financial statements of the Company. The securities issued by this entity are exchangeable surplus trust securities, which are exchangeable for a like amount of MetLife, Inc.’s junior subordinated debt securities on the scheduled redemption date, mandatorily under certain circumstances, and at any time upon MetLife, Inc. exercising its option to redeem the securities.
|
(4)
|
On February 10, 2017, in connection with the Separation, MetLife, Inc. exchanged
$750 million
aggregate principal amount of its
9.250%
Fixed-to-Floating Rate Junior Subordinated Debentures due
2068
for
$750 million
aggregate liquidation preference of the
9.250%
Fixed-to-Floating Rate Exchangeable Surplus Trust Securities of MetLife Capital Trust X (the “Trust”). As a result of the exchange, MetLife, Inc. became the sole beneficial owner of the Trust, an SPE, which issued the exchangeable surplus trust securities to third-party investors. On March 23, 2017, MetLife, Inc. dissolved the Trust.
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||
Series
|
|
Shares
Authorized |
|
Shares
Issued |
|
Shares
Outstanding |
|
Shares
Authorized |
|
Shares
Issued |
|
Shares
Outstanding |
||||||
Series A preferred stock
|
|
27,600,000
|
|
|
24,000,000
|
|
|
24,000,000
|
|
|
27,600,000
|
|
|
24,000,000
|
|
|
24,000,000
|
|
Series C preferred stock
|
|
1,500,000
|
|
|
1,500,000
|
|
|
1,500,000
|
|
|
1,500,000
|
|
|
1,500,000
|
|
|
1,500,000
|
|
Series D preferred stock
|
|
500,000
|
|
|
500,000
|
|
|
500,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Series E preferred stock
|
|
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
|
|
Series
|
|
Per Annum Dividend Rate
|
A
|
|
Three-month LIBOR + 1.00%, with floor of 4.00%, payable quarterly in March, June, September and December
|
C
|
|
5.250% from issuance date to, but excluding, June 15, 2020, payable semiannually in June and December; three-month LIBOR + 3.575%, payable quarterly in March, June, September and December, thereafter
|
D
|
|
5.875% from issuance date to, but excluding, March 15, 2028, payable semiannually in March and September commencing in September 2018; three-month LIBOR + 2.959% payable quarterly in March, June, September and December, thereafter
|
E
|
|
5.625% from issuance date, payable quarterly in March, June, September and December, commencing in September 2018
|
|
|
|
|
|
|
Dividend
|
||||||
Declaration Date
|
|
Record Date
|
|
Payment Date
|
|
Per Share
|
|
Aggregate
|
||||
|
|
|
|
|
|
(In millions, except per share data)
|
||||||
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
||||
October 23, 2018
|
|
November 6, 2018
|
|
December 13, 2018
|
|
$
|
0.420
|
|
|
$
|
415
|
|
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
|
|
||
Total
|
|
|
|
|
|
$
|
1.660
|
|
|
$
|
1,678
|
|
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
||||
October 24, 2017
|
|
November 6, 2017
|
|
December 13, 2017
|
|
$
|
0.400
|
|
|
$
|
422
|
|
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
|
|
||
Total
|
|
|
|
|
|
$
|
1.600
|
|
|
$
|
1,717
|
|
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
|
||||
October 25, 2016
|
|
November 7, 2016
|
|
December 13, 2016
|
|
$
|
0.400
|
|
|
$
|
441
|
|
July 7, 2016
|
|
August 8, 2016
|
|
September 13, 2016
|
|
0.400
|
|
|
441
|
|
||
April 26, 2016
|
|
May 9, 2016
|
|
June 13, 2016
|
|
0.400
|
|
|
441
|
|
||
January 6, 2016
|
|
February 5, 2016
|
|
March 14, 2016
|
|
0.375
|
|
|
413
|
|
||
Total
|
|
|
|
|
|
$
|
1.575
|
|
|
$
|
1,736
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Stock Options and Unit Options
|
$
|
6
|
|
|
$
|
8
|
|
|
$
|
9
|
|
Performance Shares and Performance Units (1)
|
23
|
|
|
62
|
|
|
75
|
|
|||
Restricted Stock Units and Restricted Units
|
57
|
|
|
58
|
|
|
63
|
|
|||
Total compensation expense
|
$
|
86
|
|
|
$
|
128
|
|
|
$
|
147
|
|
Income tax benefit
|
$
|
18
|
|
|
$
|
45
|
|
|
$
|
51
|
|
(1)
|
The Company may further adjust the number of Performance Shares it expects to vest, and the related compensation expense, if management changes its estimate of the most likely final performance factor.
|
|
December 31, 2018
|
||||
|
Expense
|
|
Weighted Average
Period
|
||
|
(In millions)
|
|
(Years)
|
||
Stock Options
|
$
|
3
|
|
|
1.12
|
Performance Shares
|
$
|
21
|
|
|
1.72
|
Restricted Stock Units
|
$
|
32
|
|
|
1.27
|
|
Shares
Under
Option
|
|
Weighted
Average
Exercise
Price
|
|
Weighted
Average
Remaining
Contractual
Term
|
|
Aggregate
Intrinsic
Value (1)
|
|||||
|
|
|
|
|
(Years)
|
|
(In millions)
|
|||||
Outstanding at January 1, 2018
|
16,009,754
|
|
|
$
|
38.77
|
|
|
3.54
|
|
$
|
198
|
|
Granted
|
523,946
|
|
|
$
|
45.50
|
|
|
|
|
|
||
Exercised
|
(1,611,987
|
)
|
|
$
|
33.68
|
|
|
|
|
|
||
Expired (2)
|
(2,488,045
|
)
|
|
$
|
53.63
|
|
|
|
|
|
||
Forfeited (3)
|
(78,374
|
)
|
|
$
|
41.90
|
|
|
|
|
|
||
Outstanding at December 31, 2018
|
12,355,294
|
|
|
$
|
36.70
|
|
|
3.56
|
|
$
|
66
|
|
Vested and expected to vest at December 31, 2018
|
12,343,714
|
|
|
$
|
36.70
|
|
|
3.55
|
|
$
|
66
|
|
Exercisable at December 31, 2018
|
11,116,386
|
|
|
$
|
35.96
|
|
|
3.02
|
|
$
|
64
|
|
(1)
|
The intrinsic value of each Stock Option is the closing price on a particular date less the exercise price of the Stock Option, so long as the difference is greater than zero. The aggregate intrinsic value of all outstanding Stock Options is computed using the closing Share price on December 31,
2018
of
$41.06
and December 31,
2017
of
$50.56
, as applicable.
|
(2)
|
Expired options were exercisable, but unexercised, as of their expiration date.
|
(3)
|
Forfeited awards were either (a) unvested or unexercisable at the end of the awardholder’s employment, where the awardholder did not meet the criteria for post-employment award continuation; or (b) held by awardholders the Company terminated from employment for cause as defined in the terms of the awards.
|
|
|
Years Ended December 31,
|
||||
|
|
2018
|
|
2017
|
|
2016
|
Dividend yield
|
|
3.52%
|
|
3.05%
|
|
3.90%
|
Risk-free rate of return
|
|
2.02% - 3.40%
|
|
0.94% - 3.22%
|
|
0.62% - 2.85%
|
Expected volatility
|
|
34.18%
|
|
34.19%
|
|
33.58%
|
Exercise multiple
|
|
1.43
|
|
1.43
|
|
1.43
|
Post-vesting termination rate
|
|
3.77%
|
|
2.94%
|
|
2.58%
|
Contractual term (years)
|
|
10
|
|
10
|
|
10
|
Expected life (years)
|
|
6
|
|
6
|
|
7
|
Weighted average exercise price of stock options granted
|
|
$45.50
|
|
$46.85
|
|
$34.33
|
Weighted average fair value of stock options granted
|
|
$11.87
|
|
$12.36
|
|
$8.27
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(In millions)
|
||||||||||
Total intrinsic value of stock options exercised
|
|
$
|
24
|
|
|
$
|
59
|
|
|
$
|
42
|
|
Cash received from exercise of stock options
|
|
$
|
54
|
|
|
$
|
116
|
|
|
$
|
84
|
|
Income tax benefit realized from stock options exercised
|
|
$
|
5
|
|
|
$
|
20
|
|
|
$
|
15
|
|
|
Performance Shares
|
|
Restricted Stock Units
|
||||||||||
|
Shares
|
|
Weighted
Average Fair Value (1) |
|
Units
|
|
Weighted
Average Fair Value (1) |
||||||
Outstanding at January 1, 2018
|
4,033,760
|
|
|
$
|
46.02
|
|
|
3,304,377
|
|
|
$
|
37.17
|
|
Granted
|
1,405,903
|
|
|
$
|
34.31
|
|
|
1,446,289
|
|
|
$
|
40.00
|
|
Forfeited (2)
|
(201,146
|
)
|
|
$
|
40.88
|
|
|
(201,914
|
)
|
|
$
|
38.79
|
|
Payable (3)
|
(1,194,283
|
)
|
|
$
|
46.34
|
|
|
(1,602,483
|
)
|
|
$
|
37.04
|
|
Outstanding at December 31, 2018
|
4,044,234
|
|
|
$
|
34.18
|
|
|
2,946,269
|
|
|
$
|
38.52
|
|
Vested and expected to vest at December 31, 2018
|
3,984,022
|
|
|
$
|
34.18
|
|
|
2,903,433
|
|
|
$
|
38.49
|
|
(1)
|
Values for awards outstanding at January 1, 2018, represent weighted average number of awards multiplied by the fair value per Share at December 31, 2017. Otherwise, all values represent weighted average of number of awards multiplied by the fair value per Share at
December 31, 2018
. Fair value of Restricted Stock Units on
December 31, 2018
was equal to Grant Date fair value.
|
(2)
|
Forfeited awards were either (a) unvested or unexercisable at the end of the awardholder’s employment, where the awardholder did not meet the criteria for post-employment award continuation; or (b) held by awardholders the Company terminated from employment for cause as defined in the terms of the awards.
|
(3)
|
Includes both Shares paid and Deferred Shares for later payment.
|
|
Unit
Options
|
|
Performance
Units |
|
Restricted
Units |
|||
Outstanding at January 1, 2018
|
681,012
|
|
|
688,229
|
|
|
779,076
|
|
Granted
|
37,904
|
|
|
235,076
|
|
|
392,549
|
|
Exercised
|
(54,361
|
)
|
|
—
|
|
|
—
|
|
Expired (1)
|
(118,107
|
)
|
|
—
|
|
|
—
|
|
Forfeited (2)
|
—
|
|
|
(142,621
|
)
|
|
(140,321
|
)
|
Paid
|
—
|
|
|
(186,085
|
)
|
|
(362,202
|
)
|
Outstanding at December 31, 2018
|
546,448
|
|
|
594,599
|
|
|
669,102
|
|
Vested and expected to vest at December 31, 2018
|
539,165
|
|
|
577,005
|
|
|
651,263
|
|
(1)
|
Expired options were exercisable, but unexercised, as of their expiration date.
|
(2)
|
Forfeited awards were either (a) unvested or unexercisable at the end of the awardholder’s employment, where the awardholder did not meet the criteria for post-employment award continuation; or (b) held by awardholders the Company terminated from employment for cause as defined in the terms of the awards.
|
|
|
|
|
Years Ended December 31,
|
||||||||||
Company
|
|
State of Domicile
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
(In millions)
|
||||||||||
Metropolitan Life Insurance Company (1)
|
|
New York
|
|
$
|
3,656
|
|
|
$
|
1,982
|
|
|
$
|
3,444
|
|
American Life Insurance Company
|
|
Delaware
|
|
$
|
2,086
|
|
|
$
|
3,077
|
|
|
$
|
341
|
|
Brighthouse Life Insurance Company (2)
|
|
Delaware
|
|
N/A
|
|
|
N/A
|
|
|
$
|
1,186
|
|
||
Metropolitan Property and Casualty Insurance Company
|
|
Rhode Island
|
|
$
|
345
|
|
|
$
|
197
|
|
|
$
|
171
|
|
Metropolitan Tower Life Insurance Company (3)
|
|
Nebraska
|
|
$
|
76
|
|
|
$
|
164
|
|
|
$
|
8
|
|
New England Life Insurance Company (2)
|
|
Massachusetts
|
|
N/A
|
|
|
N/A
|
|
|
$
|
109
|
|
||
Other (4)
|
|
Various
|
|
$
|
16
|
|
|
$
|
11
|
|
|
$
|
(70
|
)
|
(1)
|
In December 2016, MLIC transferred all of the issued and outstanding shares of the common stock of each of
New England Life Insurance Company
(“NELICO”) and General American Life Insurance Company (“GALIC”) to MetLife, Inc., in the form of a non-cash extraordinary
dividend.
|
(2)
|
In April 2017, in connection with the Separation, MetLife, Inc. contributed all of the issued and outstanding shares of common stock of each of Brighthouse Insurance and NELICO to Brighthouse Holdings, LLC. As a result of the Separation, Brighthouse Insurance and NELICO ceased to be subsidiaries of MetLife, Inc.
|
(3)
|
In April 2018, Metropolitan Tower Life Insurance Company (“MTL”) merged with GALIC (“MTL Merger”). The surviving entity of the merger was MTL, which re-domesticated from Delaware to Nebraska immediately prior to the merger. For the year ended December 31, 2016, MTL’s statutory net income (loss) is as filed with the Delaware Department of Insurance and accordingly, does not include GALIC’s statutory net income (loss) of
($2) million
.
|
(4)
|
In April 2017, in connection with the Separation, MetLife, Inc. contributed all of the issued and outstanding shares of Brighthouse Life Insurance Company of NY (“Brighthouse NY”) to Brighthouse Holdings, LLC. As a result of the Separation, Brighthouse NY ceased to be a subsidiary of MetLife, Inc. For the year ended December 31, 2016, statutory net income (loss) of Brighthouse NY was
($87) million
.
|
|
|
December 31,
|
||||||
Company
|
|
2018
|
|
2017
|
||||
|
|
(In millions)
|
||||||
Metropolitan Life Insurance Company
|
|
$
|
11,098
|
|
|
$
|
10,384
|
|
American Life Insurance Company
|
|
$
|
4,921
|
|
|
$
|
6,548
|
|
Metropolitan Property and Casualty Insurance Company
|
|
$
|
2,322
|
|
|
$
|
2,266
|
|
Metropolitan Tower Life Insurance Company (1)
|
|
$
|
1,549
|
|
|
$
|
1,751
|
|
Other
|
|
$
|
106
|
|
|
$
|
100
|
|
(1)
|
See discussion of MTL Merger above.
|
|
|
2019
|
|
2018
|
|
|
2017
|
|||||||
Company
|
|
Permitted Without
Approval (1) |
|
Paid (2)
|
|
Paid (2)
|
||||||||
|
|
(In millions)
|
|
|||||||||||
Metropolitan Life Insurance Company
|
|
$
|
3,096
|
|
|
$
|
3,736
|
|
|
|
$
|
2,523
|
|
|
American Life Insurance Company
|
|
$
|
—
|
|
|
$
|
3,200
|
|
|
|
$
|
2,200
|
|
|
Metropolitan Property and Casualty Insurance Company
|
|
$
|
171
|
|
|
$
|
233
|
|
|
|
$
|
185
|
|
|
Metropolitan Tower Life Insurance Company (3)
|
|
$
|
154
|
|
|
$
|
191
|
|
|
|
$
|
—
|
|
|
General American Life Insurance Company (3)
|
|
N/A
|
|
|
$
|
—
|
|
|
|
$
|
1
|
|
|
(1)
|
Reflects dividend amounts that may be paid by the end of 2019 without prior regulatory approval.
|
(2)
|
Reflects all amounts paid, including those where regulatory approval was obtained as required.
|
(3)
|
See discussion of MTL Merger above.
|
|
Unrealized
Investment Gains
(Losses), Net of
Related Offsets (1)
|
|
Unrealized Gains
(Losses) on
Derivatives
|
|
Foreign
Currency
Translation
Adjustments
|
|
Defined
Benefit
Plans
Adjustment
|
|
Total
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Balance at December 31, 2015
|
$
|
10,311
|
|
|
$
|
1,458
|
|
|
$
|
(4,950
|
)
|
|
$
|
(2,052
|
)
|
|
$
|
4,767
|
|
OCI before reclassifications
|
800
|
|
|
344
|
|
|
(476
|
)
|
|
(62
|
)
|
|
606
|
|
|||||
Deferred income tax benefit (expense)
|
(338
|
)
|
|
(100
|
)
|
|
114
|
|
|
24
|
|
|
(300
|
)
|
|||||
AOCI before reclassifications, net of income tax
|
10,773
|
|
|
1,702
|
|
|
(5,312
|
)
|
|
(2,090
|
)
|
|
5,073
|
|
|||||
Amounts reclassified from AOCI
|
21
|
|
|
229
|
|
|
—
|
|
|
193
|
|
|
443
|
|
|||||
Deferred income tax benefit (expense)
|
(9
|
)
|
|
(66
|
)
|
|
—
|
|
|
(75
|
)
|
|
(150
|
)
|
|||||
Amounts reclassified from AOCI, net of income tax
|
12
|
|
|
163
|
|
|
—
|
|
|
118
|
|
|
293
|
|
|||||
Balance at December 31, 2016
|
10,785
|
|
|
1,865
|
|
|
(5,312
|
)
|
|
(1,972
|
)
|
|
5,366
|
|
|||||
OCI before reclassifications
|
5,392
|
|
|
(140
|
)
|
|
765
|
|
|
(23
|
)
|
|
5,994
|
|
|||||
Deferred income tax benefit (expense)
|
(1,732
|
)
|
|
47
|
|
|
125
|
|
|
8
|
|
|
(1,552
|
)
|
|||||
AOCI before reclassifications, net of income tax
|
14,445
|
|
|
1,772
|
|
|
(4,422
|
)
|
|
(1,987
|
)
|
|
9,808
|
|
|||||
Amounts reclassified from AOCI
|
(289
|
)
|
|
(1,025
|
)
|
|
—
|
|
|
167
|
|
|
(1,147
|
)
|
|||||
Deferred income tax benefit (expense)
|
87
|
|
|
356
|
|
|
—
|
|
|
(43
|
)
|
|
400
|
|
|||||
Amounts reclassified from AOCI, net of income tax
|
(202
|
)
|
|
(669
|
)
|
|
—
|
|
|
124
|
|
|
(747
|
)
|
|||||
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 at December 31, 2017
|
12,757
|
|
|
905
|
|
|
(4,390
|
)
|
|
(1,845
|
)
|
|
7,427
|
|
|||||
OCI before reclassifications
|
(8,735
|
)
|
|
157
|
|
|
(679
|
)
|
|
143
|
|
|
(9,114
|
)
|
|||||
Deferred income tax benefit (expense)
|
1,961
|
|
|
(41
|
)
|
|
36
|
|
|
(35
|
)
|
|
1,921
|
|
|||||
AOCI before reclassifications, net of income tax
|
5,983
|
|
|
1,021
|
|
|
(5,033
|
)
|
|
(1,737
|
)
|
|
234
|
|
|||||
Amounts reclassified from AOCI
|
14
|
|
|
517
|
|
|
—
|
|
|
120
|
|
|
651
|
|
|||||
Deferred income tax benefit (expense)
|
(3
|
)
|
|
(135
|
)
|
|
—
|
|
|
(29
|
)
|
|
(167
|
)
|
|||||
Amounts reclassified from AOCI, net of income tax
|
11
|
|
|
382
|
|
|
—
|
|
|
91
|
|
|
484
|
|
|||||
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 at December 31, 2018
|
$
|
7,042
|
|
|
$
|
1,613
|
|
|
$
|
(4,905
|
)
|
|
$
|
(2,028
|
)
|
|
$
|
1,722
|
|
(1)
|
See
Note 8
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 Locations
|
||||||||||
|
|
Years Ended December 31,
|
|
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
|
||||||
|
|
(In millions)
|
|
|
||||||||||
Net unrealized investment gains (losses):
|
|
|
|
|
|
|
|
|
||||||
Net unrealized investment gains (losses)
|
|
$
|
6
|
|
|
$
|
404
|
|
|
$
|
78
|
|
|
Net investment gains (losses)
|
Net unrealized investment gains (losses)
|
|
(1
|
)
|
|
20
|
|
|
39
|
|
|
Net investment income
|
|||
Net unrealized investment gains (losses)
|
|
(19
|
)
|
|
(49
|
)
|
|
(37
|
)
|
|
Net derivative gains (losses)
|
|||
Net unrealized investment gains (losses)
|
|
—
|
|
|
(86
|
)
|
|
(101
|
)
|
|
Discontinued operations
|
|||
Net unrealized investment gains (losses), before income tax
|
|
(14
|
)
|
|
289
|
|
|
(21
|
)
|
|
|
|||
Income tax (expense) benefit
|
|
3
|
|
|
(87
|
)
|
|
9
|
|
|
|
|||
Net unrealized investment gains (losses), net of income tax
|
|
(11
|
)
|
|
202
|
|
|
(12
|
)
|
|
|
|||
Unrealized gains (losses) on derivatives - cash flow hedges:
|
|
|
|
|
|
|
|
|
||||||
Interest rate swaps
|
|
23
|
|
|
24
|
|
|
56
|
|
|
Net derivative gains (losses)
|
|||
Interest rate swaps
|
|
18
|
|
|
16
|
|
|
12
|
|
|
Net investment income
|
|||
Interest rate swaps
|
|
—
|
|
|
2
|
|
|
36
|
|
|
Discontinued operations
|
|||
Interest rate forwards
|
|
(2
|
)
|
|
(11
|
)
|
|
(1
|
)
|
|
Net derivative gains (losses)
|
|||
Interest rate forwards
|
|
2
|
|
|
2
|
|
|
4
|
|
|
Net investment income
|
|||
Interest rate forwards
|
|
1
|
|
|
1
|
|
|
1
|
|
|
Other expenses
|
|||
Interest rate forwards
|
|
—
|
|
|
3
|
|
|
4
|
|
|
Discontinued operations
|
|||
Foreign currency swaps
|
|
(558
|
)
|
|
974
|
|
|
(350
|
)
|
|
Net derivative gains (losses)
|
|||
Foreign currency swaps
|
|
(5
|
)
|
|
—
|
|
|
(2
|
)
|
|
Net investment income
|
|||
Foreign currency swaps
|
|
2
|
|
|
2
|
|
|
2
|
|
|
Other expenses
|
|||
Foreign currency swaps
|
|
—
|
|
|
11
|
|
|
5
|
|
|
Discontinued operations
|
|||
Credit forwards
|
|
1
|
|
|
1
|
|
|
3
|
|
|
Net derivative gains (losses)
|
|||
Credit forwards
|
|
1
|
|
|
—
|
|
|
1
|
|
|
Net investment income
|
|||
Gains (losses) on cash flow hedges, before income tax
|
|
(517
|
)
|
|
1,025
|
|
|
(229
|
)
|
|
|
|||
Income tax (expense) benefit
|
|
135
|
|
|
(356
|
)
|
|
66
|
|
|
|
|||
Gains (losses) on cash flow hedges, net of income tax
|
|
(382
|
)
|
|
669
|
|
|
(163
|
)
|
|
|
|||
Defined benefit plans adjustment: (1)
|
|
|
|
|
|
|
|
|
||||||
Amortization of net actuarial gains (losses)
|
|
(145
|
)
|
|
(190
|
)
|
|
(199
|
)
|
|
|
|||
Amortization of prior service (costs) credit
|
|
25
|
|
|
23
|
|
|
6
|
|
|
|
|||
Amortization of defined benefit plan items, before income tax
|
|
(120
|
)
|
|
(167
|
)
|
|
(193
|
)
|
|
|
|||
Income tax (expense) benefit
|
|
29
|
|
|
43
|
|
|
75
|
|
|
|
|||
Amortization of defined benefit plan items, net of income tax
|
|
(91
|
)
|
|
(124
|
)
|
|
(118
|
)
|
|
|
|||
Total reclassifications, net of income tax
|
|
$
|
(484
|
)
|
|
$
|
747
|
|
|
$
|
(293
|
)
|
|
|
(1)
|
These AOCI components are included in the computation of net periodic benefit costs. See
Note 17
.
|
|
|
Year Ended
|
||
|
|
December 31, 2018
|
||
|
|
(In millions)
|
||
Prepaid legal plans
|
|
$
|
296
|
|
Fee-based investment management
|
|
293
|
|
|
Recordkeeping and administrative services (1)
|
|
221
|
|
|
Administrative services-only contracts
|
|
205
|
|
|
Other revenue from service contracts from customers
|
|
241
|
|
|
Total revenues from service contracts from customers
|
|
$
|
1,256
|
|
Other
|
|
624
|
|
|
Total other revenues
|
|
$
|
1,880
|
|
(1)
|
Related to products and businesses no longer actively marketed by the Company.
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(In millions)
|
||||||||||
Employee related costs
|
|
$
|
3,664
|
|
|
$
|
3,595
|
|
|
$
|
3,840
|
|
Third party staffing costs
|
|
1,703
|
|
|
1,693
|
|
|
1,619
|
|
|||
General and administrative expenses
|
|
910
|
|
|
1,129
|
|
|
1,007
|
|
|||
Pension, postretirement and postemployment benefit costs
|
|
185
|
|
|
307
|
|
|
400
|
|
|||
Premium taxes, other taxes, and licenses & fees
|
|
758
|
|
|
842
|
|
|
688
|
|
|||
Commissions and other variable expenses
|
|
5,707
|
|
|
5,387
|
|
|
5,741
|
|
|||
Capitalization of DAC
|
|
(3,254
|
)
|
|
(3,002
|
)
|
|
(3,152
|
)
|
|||
Amortization of DAC and VOBA
|
|
2,975
|
|
|
2,681
|
|
|
2,718
|
|
|||
Amortization of negative VOBA
|
|
(56
|
)
|
|
(140
|
)
|
|
(269
|
)
|
|||
Interest expense on debt
|
|
1,122
|
|
|
1,129
|
|
|
1,157
|
|
|||
Total other expenses
|
|
$
|
13,714
|
|
|
$
|
13,621
|
|
|
$
|
13,749
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
Severance
|
||||||||||
|
(In millions)
|
||||||||||
Balance at January 1,
|
$
|
22
|
|
|
$
|
35
|
|
|
$
|
—
|
|
Restructuring charges
|
63
|
|
|
38
|
|
|
35
|
|
|||
Cash payments
|
(62
|
)
|
|
(51
|
)
|
|
—
|
|
|||
Balance at December 31,
|
$
|
23
|
|
|
$
|
22
|
|
|
$
|
35
|
|
Total restructuring charges incurred since inception of initiative
|
$
|
136
|
|
|
$
|
73
|
|
|
$
|
35
|
|
|
|
Year Ended December 31, 2016
|
||||||||||
|
|
Severance
|
|
Lease and
Asset
Impairment
|
|
Total
|
||||||
|
|
(In millions)
|
||||||||||
Balance at January 1,
|
|
$
|
18
|
|
|
$
|
4
|
|
|
$
|
22
|
|
Restructuring charges
|
|
—
|
|
|
1
|
|
|
1
|
|
|||
Cash payments
|
|
(17
|
)
|
|
(4
|
)
|
|
(21
|
)
|
|||
Balance at December 31,
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
2
|
|
Total restructuring charges incurred since inception of initiative
|
|
$
|
383
|
|
|
$
|
47
|
|
|
$
|
430
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||||||||||||||||||||||||||
|
Pension Benefits
|
|
Other Postretirement
Benefits
|
|
Pension Benefits
|
|
Other Postretirement
Benefits
|
||||||||||||||||||||||||||||||||||||||||
|
U.S.
Plans
|
|
Non-
U.S.
Plans
|
|
Total
|
|
U.S.
Plans
|
|
Non-
U.S.
Plans
|
|
Total
|
|
U.S.
Plans
|
|
Non-
U.S.
Plans
|
|
Total
|
|
U.S.
Plans
|
|
Non-
U.S.
Plans
|
|
Total
|
||||||||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligations
|
$
|
9,580
|
|
|
$
|
1,011
|
|
|
$
|
10,591
|
|
|
$
|
1,288
|
|
|
$
|
36
|
|
|
$
|
1,324
|
|
|
$
|
10,500
|
|
|
$
|
909
|
|
|
$
|
11,409
|
|
|
$
|
1,648
|
|
|
$
|
26
|
|
|
$
|
1,674
|
|
Estimated fair value of plan assets
|
8,615
|
|
|
333
|
|
|
8,948
|
|
|
1,334
|
|
|
26
|
|
|
1,360
|
|
|
9,371
|
|
|
317
|
|
|
9,688
|
|
|
1,426
|
|
|
8
|
|
|
1,434
|
|
||||||||||||
Over (under) funded status
|
$
|
(965
|
)
|
|
$
|
(678
|
)
|
|
$
|
(1,643
|
)
|
|
$
|
46
|
|
|
$
|
(10
|
)
|
|
$
|
36
|
|
|
$
|
(1,129
|
)
|
|
$
|
(592
|
)
|
|
$
|
(1,721
|
)
|
|
$
|
(222
|
)
|
|
$
|
(18
|
)
|
|
$
|
(240
|
)
|
Net periodic benefit costs
|
$
|
176
|
|
|
$
|
83
|
|
|
$
|
259
|
|
|
$
|
(66
|
)
|
|
$
|
2
|
|
|
$
|
(64
|
)
|
|
$
|
267
|
|
|
$
|
82
|
|
|
$
|
349
|
|
|
$
|
(12
|
)
|
|
$
|
2
|
|
|
$
|
(10
|
)
|
|
|
December 31,
|
||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||
|
|
Pension
Benefits (1) |
|
Other
Postretirement
Benefits
|
|
Pension
Benefits (1) |
|
Other
Postretirement
Benefits
|
||||||||
|
|
(In millions)
|
||||||||||||||
Change in benefit obligations:
|
|
|
|
|
|
|
|
|
||||||||
Benefit obligations at January 1,
|
|
$
|
11,409
|
|
|
$
|
1,674
|
|
|
$
|
10,741
|
|
|
$
|
1,759
|
|
Service costs
|
|
223
|
|
|
6
|
|
|
238
|
|
|
6
|
|
||||
Interest costs
|
|
391
|
|
|
55
|
|
|
429
|
|
|
76
|
|
||||
Plan participants’ contributions
|
|
—
|
|
|
30
|
|
|
—
|
|
|
33
|
|
||||
Plan amendments
|
|
(110
|
)
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
||||
Net actuarial (gains) losses
|
|
(713
|
)
|
|
(348
|
)
|
|
595
|
|
|
(95
|
)
|
||||
Acquisition, divestitures, settlements and curtailments
|
|
(6
|
)
|
|
13
|
|
|
(27
|
)
|
|
—
|
|
||||
Benefits paid
|
|
(623
|
)
|
|
(97
|
)
|
|
(600
|
)
|
|
(107
|
)
|
||||
Effect of foreign currency translation
|
|
20
|
|
|
(2
|
)
|
|
33
|
|
|
2
|
|
||||
Benefit obligations at December 31,
|
|
10,591
|
|
|
1,324
|
|
|
11,409
|
|
|
1,674
|
|
||||
Change in plan assets:
|
|
|
|
|
|
|
|
|
||||||||
Estimated fair value of plan assets at January 1,
|
|
9,688
|
|
|
1,434
|
|
|
9,009
|
|
|
1,386
|
|
||||
Actual return on plan assets
|
|
(423
|
)
|
|
(27
|
)
|
|
968
|
|
|
125
|
|
||||
Acquisition, divestitures and settlements
|
|
(5
|
)
|
|
16
|
|
|
(30
|
)
|
|
(1
|
)
|
||||
Plan participants’ contributions
|
|
—
|
|
|
32
|
|
|
—
|
|
|
33
|
|
||||
Employer contributions
|
|
306
|
|
|
4
|
|
|
329
|
|
|
(2
|
)
|
||||
Benefits paid
|
|
(623
|
)
|
|
(97
|
)
|
|
(600
|
)
|
|
(107
|
)
|
||||
Effect of foreign currency translation
|
|
5
|
|
|
(2
|
)
|
|
12
|
|
|
—
|
|
||||
Estimated fair value of plan assets at December 31,
|
|
8,948
|
|
|
1,360
|
|
|
9,688
|
|
|
1,434
|
|
||||
Over (under) funded status at December 31,
|
|
$
|
(1,643
|
)
|
|
$
|
36
|
|
|
$
|
(1,721
|
)
|
|
$
|
(240
|
)
|
Amounts recognized on the consolidated balance sheets:
|
|
|
|
|
|
|
|
|
||||||||
Other assets
|
|
$
|
135
|
|
|
$
|
373
|
|
|
$
|
59
|
|
|
$
|
160
|
|
Other liabilities
|
|
(1,778
|
)
|
|
(337
|
)
|
|
(1,780
|
)
|
|
(400
|
)
|
||||
Net amount recognized
|
|
$
|
(1,643
|
)
|
|
$
|
36
|
|
|
$
|
(1,721
|
)
|
|
$
|
(240
|
)
|
AOCI:
|
|
|
|
|
|
|
|
|
||||||||
Net actuarial (gains) losses
|
|
$
|
2,979
|
|
|
$
|
(269
|
)
|
|
$
|
2,917
|
|
|
$
|
(55
|
)
|
Prior service costs (credit)
|
|
(118
|
)
|
|
(14
|
)
|
|
(11
|
)
|
|
(27
|
)
|
||||
AOCI, before income tax
|
|
$
|
2,861
|
|
|
$
|
(283
|
)
|
|
$
|
2,906
|
|
|
$
|
(82
|
)
|
Accumulated benefit obligation
|
|
$
|
10,301
|
|
|
N/A
|
|
|
$
|
10,996
|
|
|
N/A
|
|
(1)
|
Includes nonqualified unfunded plans, for which the aggregate PBO was
$1.1 billion
and
$1.2 billion
at
December 31, 2018
and
2017
, respectively.
|
|
December 31,
|
||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
PBO Exceeds Estimated Fair Value
of Plan Assets
|
|
ABO Exceeds Estimated Fair Value
of Plan Assets
|
||||||||||||
|
(In millions)
|
||||||||||||||
Projected benefit obligations
|
$
|
2,021
|
|
|
$
|
2,016
|
|
|
$
|
1,999
|
|
|
$
|
1,996
|
|
Accumulated benefit obligations
|
$
|
1,921
|
|
|
$
|
1,904
|
|
|
$
|
1,906
|
|
|
$
|
1,890
|
|
Estimated fair value of plan assets
|
$
|
301
|
|
|
$
|
285
|
|
|
$
|
280
|
|
|
$
|
266
|
|
|
Years Ended December 31,
|
||||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||||||||||||||
|
Pension Benefits
|
|
Other Postretirement Benefits
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||
|
(In millions)
|
||||||||||||||||||||||
Net periodic benefit costs:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service costs
|
$
|
223
|
|
|
$
|
6
|
|
|
$
|
238
|
|
|
$
|
6
|
|
|
$
|
272
|
|
|
$
|
9
|
|
Interest costs
|
391
|
|
|
55
|
|
|
429
|
|
|
76
|
|
|
423
|
|
|
82
|
|
||||||
Settlement and curtailment costs (1)
|
(1
|
)
|
|
—
|
|
|
4
|
|
|
2
|
|
|
2
|
|
|
19
|
|
||||||
Expected return on plan assets
|
(533
|
)
|
|
(71
|
)
|
|
(516
|
)
|
|
(72
|
)
|
|
(527
|
)
|
|
(75
|
)
|
||||||
Amortization of net actuarial (gains) losses
|
182
|
|
|
(34
|
)
|
|
195
|
|
|
—
|
|
|
189
|
|
|
10
|
|
||||||
Amortization of prior service costs (credit)
|
(3
|
)
|
|
(20
|
)
|
|
(1
|
)
|
|
(22
|
)
|
|
—
|
|
|
(6
|
)
|
||||||
Total net periodic benefit costs (credit)
|
259
|
|
|
(64
|
)
|
|
349
|
|
|
(10
|
)
|
|
359
|
|
|
39
|
|
||||||
Other changes in plan assets and benefit obligations recognized in OCI:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net actuarial (gains) losses
|
244
|
|
|
(248
|
)
|
|
149
|
|
|
(146
|
)
|
|
238
|
|
|
(124
|
)
|
||||||
Prior service costs (credit)
|
(110
|
)
|
|
(7
|
)
|
|
(1
|
)
|
|
—
|
|
|
(11
|
)
|
|
(41
|
)
|
||||||
Amortization of net actuarial (gains) losses
|
(182
|
)
|
|
34
|
|
|
(195
|
)
|
|
—
|
|
|
(189
|
)
|
|
(10
|
)
|
||||||
Amortization of prior service (costs) credit
|
3
|
|
|
20
|
|
|
1
|
|
|
22
|
|
|
—
|
|
|
6
|
|
||||||
Discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
||||||
Disposal of subsidiary
|
—
|
|
|
—
|
|
|
(30
|
)
|
|
2
|
|
|
—
|
|
|
—
|
|
||||||
Total recognized in OCI
|
(45
|
)
|
|
(201
|
)
|
|
(76
|
)
|
|
(122
|
)
|
|
37
|
|
|
(168
|
)
|
||||||
Total recognized in net periodic benefit costs and OCI
|
$
|
214
|
|
|
$
|
(265
|
)
|
|
$
|
273
|
|
|
$
|
(132
|
)
|
|
$
|
396
|
|
|
$
|
(129
|
)
|
(1)
|
The Company recognized curtailment charges in 2016 on certain postretirement benefit plans in connection with the U.S. Retail Advisor Force Divestiture. See Note
3
.
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||
December 31, 2018
|
|
|
|
|
|
Weighted average discount rate
|
4.35%
|
|
4.35%
|
||
Rate of compensation increase
|
2.25%
|
-
|
8.50%
|
|
N/A
|
December 31, 2017
|
|
|
|
|
|
Weighted average discount rate
|
3.65%
|
|
3.70%
|
||
Rate of compensation increase
|
2.25%
|
-
|
8.50%
|
|
N/A
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||
Year Ended December 31, 2018
|
|
|
|
|
|
Weighted average discount rate
|
3.65%
|
|
3.70%
|
||
Weighted average expected rate of return on plan assets
|
5.75%
|
|
5.11%
|
||
Rate of compensation increase
|
2.25%
|
-
|
8.50%
|
|
N/A
|
Year Ended December 31, 2017
|
|
|
|
|
|
Weighted average discount rate
|
4.30%
|
|
4.45%
|
||
Weighted average expected rate of return on plan assets
|
6.00%
|
|
5.36%
|
||
Rate of compensation increase
|
2.25%
|
-
|
8.50%
|
|
N/A
|
Year Ended December 31, 2016
|
|
|
|
|
|
Weighted average discount rate
|
4.13%
|
|
4.37%
|
||
Weighted average expected rate of return on plan assets
|
6.00%
|
|
5.53%
|
||
Rate of compensation increase
|
2.25%
|
-
|
8.50%
|
|
N/A
|
|
December 31,
|
||||||||||
|
2018
|
|
2017
|
||||||||
|
Before
Age 65
|
|
Age 65 and
older
|
|
Before
Age 65
|
|
Age 65 and
older
|
||||
Following year
|
5.4
|
%
|
|
2.8
|
%
|
|
5.6
|
%
|
|
6.6
|
%
|
Ultimate rate to which cost increase is assumed to decline
|
3.9
|
%
|
|
4.2
|
%
|
|
4.0
|
%
|
|
4.3
|
%
|
Year in which the ultimate trend rate is reached
|
2080
|
|
2097
|
|
2086
|
|
2098
|
|
|
One Percent
Increase |
|
One Percent
Decrease |
||||
|
|
(In millions)
|
||||||
Effect on total of service and interest costs components
|
|
$
|
5
|
|
|
$
|
(4
|
)
|
Effect of accumulated postretirement benefit obligations
|
|
$
|
121
|
|
|
$
|
(102
|
)
|
|
|
December 31,
|
||||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||||
|
|
U.S. Pension
Benefits |
|
U.S. Other
Postretirement
Benefits (1)
|
|
U.S. Pension
Benefits
|
|
U.S. Other
Postretirement
Benefits (1)
|
||||||||||
|
|
Target
|
|
Actual
Allocation |
|
Target
|
|
Actual
Allocation |
|
Actual
Allocation
|
|
Actual
Allocation
|
||||||
Asset Class
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturity securities AFS
|
|
82
|
%
|
|
82
|
%
|
|
85
|
%
|
|
82
|
%
|
|
82
|
%
|
|
84
|
%
|
Equity securities (2)
|
|
10
|
%
|
|
10
|
%
|
|
15
|
%
|
|
18
|
%
|
|
10
|
%
|
|
15
|
%
|
Alternative securities (3)
|
|
8
|
%
|
|
8
|
%
|
|
—
|
%
|
|
—
|
%
|
|
8
|
%
|
|
1
|
%
|
Total assets
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
(1)
|
U.S. other postretirement benefits do not reflect postretirement life’s plan assets invested in fixed maturity securities AFS.
|
(2)
|
Equity securities percentage includes derivative assets.
|
(3)
|
Alternative securities primarily include hedge, private equity and real estate funds.
|
|
|
December 31, 2018
|
||||||||||||||||||||||||||||||
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||||||||||||||||||
|
|
Fair Value Hierarchy
|
|
|
|
Fair Value Hierarchy
|
|
|
||||||||||||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated Fair Value |
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated Fair Value |
||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed maturity securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Corporate
|
|
$
|
—
|
|
|
$
|
3,350
|
|
|
$
|
1
|
|
|
$
|
3,351
|
|
|
$
|
—
|
|
|
$
|
313
|
|
|
$
|
—
|
|
|
$
|
313
|
|
U.S. government bonds
|
|
1,314
|
|
|
471
|
|
|
—
|
|
|
1,785
|
|
|
268
|
|
|
—
|
|
|
—
|
|
|
268
|
|
||||||||
Foreign bonds
|
|
—
|
|
|
837
|
|
|
—
|
|
|
837
|
|
|
—
|
|
|
90
|
|
|
—
|
|
|
90
|
|
||||||||
Federal agencies
|
|
—
|
|
|
88
|
|
|
—
|
|
|
88
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
16
|
|
||||||||
Municipals
|
|
—
|
|
|
240
|
|
|
—
|
|
|
240
|
|
|
—
|
|
|
29
|
|
|
—
|
|
|
29
|
|
||||||||
Short-term investments
|
|
1
|
|
|
198
|
|
|
—
|
|
|
199
|
|
|
1
|
|
|
397
|
|
|
—
|
|
|
398
|
|
||||||||
Other (1)
|
|
210
|
|
|
590
|
|
|
1
|
|
|
801
|
|
|
3
|
|
|
69
|
|
|
—
|
|
|
72
|
|
||||||||
Total fixed maturity securities AFS
|
|
1,525
|
|
|
5,774
|
|
|
2
|
|
|
7,301
|
|
|
272
|
|
|
914
|
|
|
—
|
|
|
1,186
|
|
||||||||
Equity securities
|
|
706
|
|
|
195
|
|
|
—
|
|
|
901
|
|
|
155
|
|
|
18
|
|
|
—
|
|
|
173
|
|
||||||||
Other investments
|
|
20
|
|
|
—
|
|
|
688
|
|
|
708
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Derivative assets
|
|
33
|
|
|
4
|
|
|
1
|
|
|
38
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||||
Total assets
|
|
$
|
2,284
|
|
|
$
|
5,973
|
|
|
$
|
691
|
|
|
$
|
8,948
|
|
|
$
|
428
|
|
|
$
|
932
|
|
|
$
|
—
|
|
|
$
|
1,360
|
|
|
|
December 31, 2017
|
||||||||||||||||||||||||||||||
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||||||||||||||||||
|
|
Fair Value Hierarchy
|
|
|
|
Fair Value Hierarchy
|
|
|
||||||||||||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated Fair Value |
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Estimated Fair Value |
||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed maturity securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Corporate
|
|
$
|
—
|
|
|
$
|
3,833
|
|
|
$
|
1
|
|
|
$
|
3,834
|
|
|
$
|
20
|
|
|
$
|
362
|
|
|
$
|
—
|
|
|
$
|
382
|
|
U.S. government bonds
|
|
1,256
|
|
|
528
|
|
|
—
|
|
|
1,784
|
|
|
269
|
|
|
6
|
|
|
—
|
|
|
275
|
|
||||||||
Foreign bonds
|
|
—
|
|
|
1,037
|
|
|
—
|
|
|
1,037
|
|
|
—
|
|
|
102
|
|
|
—
|
|
|
102
|
|
||||||||
Federal agencies
|
|
35
|
|
|
134
|
|
|
—
|
|
|
169
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
17
|
|
||||||||
Municipals
|
|
—
|
|
|
335
|
|
|
—
|
|
|
335
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|
28
|
|
||||||||
Short-term investments
|
|
135
|
|
|
192
|
|
|
—
|
|
|
327
|
|
|
8
|
|
|
390
|
|
|
—
|
|
|
398
|
|
||||||||
Other (1)
|
|
7
|
|
|
388
|
|
|
10
|
|
|
405
|
|
|
—
|
|
|
68
|
|
|
—
|
|
|
68
|
|
||||||||
Total fixed maturity securities AFS
|
|
1,433
|
|
|
6,447
|
|
|
11
|
|
|
7,891
|
|
|
297
|
|
|
973
|
|
|
—
|
|
|
1,270
|
|
||||||||
Equity securities
|
|
797
|
|
|
177
|
|
|
3
|
|
|
977
|
|
|
154
|
|
|
—
|
|
|
—
|
|
|
154
|
|
||||||||
Other investments
|
|
19
|
|
|
144
|
|
|
622
|
|
|
785
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
||||||||
Derivative assets
|
|
33
|
|
|
2
|
|
|
—
|
|
|
35
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||||
Total assets
|
|
$
|
2,282
|
|
|
$
|
6,770
|
|
|
$
|
636
|
|
|
$
|
9,688
|
|
|
$
|
452
|
|
|
$
|
982
|
|
|
$
|
—
|
|
|
$
|
1,434
|
|
(1)
|
Other primarily includes money market securities, mortgage-backed securities, collateralized mortgage obligations and ABS.
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||
|
|
Pension Benefits
|
||||||||||||||||||
|
|
Fixed Maturity Securities AFS:
|
|
|
|
|
|
|
||||||||||||
|
|
Corporate
|
|
Other (1)
|
|
Equity Securities
|
|
Other
Investments
|
|
Derivative
Assets
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Balance, January 1, 2017
|
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
637
|
|
|
$
|
65
|
|
Realized gains (losses)
|
|
(10
|
)
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(22
|
)
|
|||||
Unrealized gains (losses)
|
|
10
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
6
|
|
|||||
Purchases, sales, issuances and settlements, net
|
|
—
|
|
|
8
|
|
|
(4
|
)
|
|
—
|
|
|
(48
|
)
|
|||||
Transfers into and/or out of Level 3
|
|
1
|
|
|
(7
|
)
|
|
5
|
|
|
(3
|
)
|
|
(1
|
)
|
|||||
Balance, December 31, 2017
|
|
$
|
1
|
|
|
$
|
10
|
|
|
$
|
3
|
|
|
$
|
622
|
|
|
$
|
—
|
|
Realized gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Unrealized gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|||||
Purchases, sales, issuances and settlements, net
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
43
|
|
|
—
|
|
|||||
Transfers into and/or out of Level 3
|
|
—
|
|
|
(6
|
)
|
|
(3
|
)
|
|
—
|
|
|
1
|
|
|||||
Balance, December 31, 2018
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
688
|
|
|
$
|
1
|
|
(1)
|
Other includes ABS and collateralized mortgage obligations.
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||
|
|
(In millions)
|
||||||
2019
|
|
$
|
620
|
|
|
$
|
85
|
|
2020
|
|
$
|
636
|
|
|
$
|
83
|
|
2021
|
|
$
|
643
|
|
|
$
|
81
|
|
2022
|
|
$
|
661
|
|
|
$
|
82
|
|
2023
|
|
$
|
682
|
|
|
$
|
84
|
|
2024-2028
|
|
$
|
3,596
|
|
|
$
|
413
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Current:
|
|
|
|
|
|
||||||
U.S. federal
|
$
|
(207
|
)
|
|
$
|
(246
|
)
|
|
$
|
520
|
|
U.S. state and local
|
11
|
|
|
5
|
|
|
3
|
|
|||
Non-U.S.
|
932
|
|
|
891
|
|
|
628
|
|
|||
Subtotal
|
736
|
|
|
650
|
|
|
1,151
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
U.S. federal
|
342
|
|
|
(2,373
|
)
|
|
(827
|
)
|
|||
Non-U.S.
|
101
|
|
|
253
|
|
|
369
|
|
|||
Subtotal
|
443
|
|
|
(2,120
|
)
|
|
(458
|
)
|
|||
Provision for income tax expense (benefit)
|
$
|
1,179
|
|
|
$
|
(1,470
|
)
|
|
$
|
693
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Income (loss) from continuing operations:
|
|
|
|
|
|
||||||
U.S.
|
$
|
(803
|
)
|
|
$
|
684
|
|
|
$
|
185
|
|
Non-U.S.
|
7,110
|
|
|
2,852
|
|
|
4,096
|
|
|||
Total
|
$
|
6,307
|
|
|
$
|
3,536
|
|
|
$
|
4,281
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Tax provision at U.S. statutory rate
|
$
|
1,325
|
|
|
$
|
1,238
|
|
|
$
|
1,498
|
|
Tax effect of:
|
|
|
|
|
|
||||||
Dividend received deduction
|
(35
|
)
|
|
(67
|
)
|
|
(69
|
)
|
|||
Tax-exempt income
|
(29
|
)
|
|
(97
|
)
|
|
(86
|
)
|
|||
Prior year tax (1)
|
(197
|
)
|
|
(27
|
)
|
|
(13
|
)
|
|||
Low income housing tax credits
|
(284
|
)
|
|
(278
|
)
|
|
(270
|
)
|
|||
Other tax credits
|
(79
|
)
|
|
(102
|
)
|
|
(98
|
)
|
|||
Foreign tax rate differential (2), (3), (4)
|
335
|
|
|
(95
|
)
|
|
(332
|
)
|
|||
Change in valuation allowance
|
(2
|
)
|
|
(8
|
)
|
|
(9
|
)
|
|||
Separation tax benefits
|
—
|
|
|
(540
|
)
|
|
—
|
|
|||
U.S. Tax Reform impact (5), (6)
|
78
|
|
|
(1,519
|
)
|
|
—
|
|
|||
Other, net (7)
|
67
|
|
|
25
|
|
|
72
|
|
|||
Provision for income tax expense (benefit)
|
$
|
1,179
|
|
|
$
|
(1,470
|
)
|
|
$
|
693
|
|
(1)
|
As discussed further below, for the year ended
December 31, 2018
, prior year tax includes a
$168 million
non-cash benefit related to an uncertain tax position.
|
(2)
|
For the year ended
December 31, 2018
, foreign tax rate differential includes tax charges of
$45 million
related to Global Intangible Low-Taxed Income (“GILTI”),
$17 million
related to a tax adjustment in Chile and
$13 million
from changes in the valuation of the peso in Argentina.
|
(3)
|
For the year ended December 31, 2017, foreign tax rate differential includes a net tax charge of
$180 million
as a result of repatriation. Included in the net tax charge of
$180 million
is a
$444 million
tax charge related to the repatriation of approximately
$3.0 billion
of pre-2017 earnings following the post-Separation review of the Company’s capital needs. This charge was partially offset by a
$264 million
tax benefit associated with dividends from other non-U.S. operations. This charge was recorded prior to U.S. Tax Reform and is incremental to the
$170 million
repatriation transition tax recorded for the year ended December 31, 2017.
|
(4)
|
For the year ended December 31, 2016, foreign tax rate differential includes a tax benefit of
$110 million
in Japan related to a change in tax rate, offset by a tax charge of
$19 million
in Chile related to a change in tax rate.
|
(5)
|
For the year ended
December 31, 2018
, U.S. Tax Reform impact includes a
$468 million
tax charge related to the deemed repatriation transition tax, offset by a
$390 million
tax benefit related to the adjustment of deferred taxes due to the U.S. tax rate change. This excludes
$12 million
of tax provision at the U.S. statutory rate for a total tax reform charge of
$66 million
.
|
(6)
|
For the year ended December 31, 2017, U.S. Tax Reform impact of
($1.5) billion
excludes
($101) million
of tax provision at the U.S. statutory rate for a total tax reform benefit of
($1.6) billion
.
|
(7)
|
For the year ended
December 31, 2018
, other includes tax charges of
$69 million
related to the non-deductible loss incurred on the mark-to-market and exchange of FVO Brighthouse Common Stock and
$18 million
related to a non-deductible Patient Protection and Affordable Care Act excise tax, offset by a tax benefit of
$36 million
related to a non-cash transfer of assets from a wholly-owned U.K. subsidiary to its U.S. parent.
|
|
|
Years Ended December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(In millions)
|
||||||
Income (loss) from continuing operations before provision for income tax
|
|
$
|
(58
|
)
|
|
$
|
(289
|
)
|
Provision for income tax expense (benefit):
|
|
|
|
|
||||
Deemed repatriation
|
|
468
|
|
|
170
|
|
||
Deferred tax revaluation
|
|
(402
|
)
|
|
(1,790
|
)
|
||
Total provision for income tax expense (benefit)
|
|
66
|
|
|
(1,620
|
)
|
||
Income (loss) from continuing operations, net of income tax
|
|
(124
|
)
|
|
1,331
|
|
||
Income tax (expense) benefit related to items of other comprehensive income (loss)
|
|
—
|
|
|
144
|
|
||
Increase to net equity from U.S. Tax Reform
|
|
$
|
(124
|
)
|
|
$
|
1,475
|
|
•
|
Deemed Repatriation Transition Tax - The Company recorded a
$170 million
charge for this item for the year ended December 31, 2017. This charge was in addition to the
$180 million
charge recorded in the third quarter of 2017 resulting from the post-Separation review of the Company’s capital needs. The total transition tax liability recorded for the year ended
December 31, 2017 was
$350 million
. In 2018, the IRS issued proposed regulations related to the transition tax. As a result, for the year ended
December 31, 2018
, the Company recorded a
$468 million
charge.
|
•
|
GILTI -
U.S. Tax Reform
imposes a minimum tax on GILTI, which is generally the excess income of foreign subsidiaries over a 10% rate of routine return on tangible business assets. For the year ended December 31, 2017, the Company did not record a tax charge for this item. In 2018, the Company established an accounting policy in which it treats taxes due on GILTI as a current-period expense when incurred. Accordingly, for the year ended
December 31, 2018
, the Company recorded a
$45 million
tax charge related to this income.
|
•
|
Compensation and Fringe Benefits -
U.S. Tax Reform
limits certain employer deductions for fringe benefit and related expenses and also repeals the exception allowing the deduction of certain performance-based compensation paid to certain senior executives. The Company recorded an
$8 million
tax charge, included within the deferred tax revaluation as of December 31, 2017. The Company determined that
no
additional adjustment was required for the year ended
December 31, 2018
.
|
•
|
Alternative Minimum Tax Credits -
U.S. Tax Reform
eliminates the corporate alternative minimum tax and allows for minimum tax credit carryforwards to be used to offset future regular tax or to be refunded 50% each tax year beginning in 2018, with any remaining balance fully refunded in 2021. However, pursuant to the requirements of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, refund payments issued for corporations claiming refundable prior year alternative minimum tax credits are subject to a sequestration rate of
6.2%
. The application of this fee to refunds in future years is subject to further guidance. Additionally, the sequestration reduction rate in effect at the time is subject to uncertainty. For the year ended December 31, 2017, the Company recorded a
$9 million
tax charge, included within the deferred tax revaluation. For the year ended
December 31, 2018
, the Company determined that
no
additional adjustment was required. In early 2019, the IRS issued guidance indicating that for years beginning after December 31, 2017, refund payments and credit elect and refund offset transactions due to refundable minimum tax credits will not be subject to sequestration. The Company will incorporate the impacts of this IRS announcement in 2019.
|
•
|
Tax Credit Partnerships - The reduction in the federal corporate income tax rate due to U.S. Tax Reform required adjustments for multiple investment portfolios, including tax credit partnerships and tax-advantaged leverage leases. Certain tax credit partnership investments derive returns in part from income tax credits. The Company recognizes changes in tax attributes at the partnership level when reported by the investee in its financial information. The Company did not receive the necessary investee financial information to determine the impact of U.S. Tax Reform on the tax attributes of its tax credit partnership investments until the third quarter of 2018. Accordingly, prior to the third quarter of 2018, the Company applied prior law to these equity method investments in accordance with SAB 118. For the year ended
December 31, 2018
, after receiving additional investee information, a reduction in tax credit partnerships’ equity method income of
$46 million
, net of income tax, was included in net investment income. The tax-advantaged leveraged lease portfolio is valued on an after-tax yield-basis. In 2018, the Company received third party data that was used to complete a comprehensive review of its portfolio to determine the full and complete impact of U.S. Tax Reform on these investments. As a result of this review, a tax benefit of
$125 million
was recorded for the year ended
December 31,
2018
.
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In millions)
|
||||||
Deferred income tax assets:
|
|
|
|
||||
Policyholder liabilities and receivables
|
$
|
2,887
|
|
|
$
|
2,654
|
|
Net operating loss carryforwards
|
104
|
|
|
512
|
|
||
Employee benefits
|
705
|
|
|
802
|
|
||
Capital loss carryforwards
|
—
|
|
|
6
|
|
||
Tax credit carryforwards
|
1,113
|
|
|
1,322
|
|
||
Litigation-related and government mandated
|
161
|
|
|
160
|
|
||
Other
|
191
|
|
|
657
|
|
||
Total gross deferred income tax assets
|
5,161
|
|
|
6,113
|
|
||
Less: Valuation allowance
|
169
|
|
|
189
|
|
||
Total net deferred income tax assets
|
4,992
|
|
|
5,924
|
|
||
Deferred income tax liabilities:
|
|
|
|
||||
Investments, including derivatives
|
2,494
|
|
|
2,772
|
|
||
Intangibles
|
1,256
|
|
|
1,321
|
|
||
Net unrealized investment gains
|
2,898
|
|
|
4,783
|
|
||
DAC
|
3,263
|
|
|
3,206
|
|
||
Other
|
495
|
|
|
609
|
|
||
Total deferred income tax liabilities
|
10,406
|
|
|
12,691
|
|
||
Net deferred income tax asset (liability)
|
$
|
(5,414
|
)
|
|
$
|
(6,767
|
)
|
|
Net Operating Loss Carryforwards
|
||||||||||
|
U.S. Federal
|
|
U.S. State
|
|
Non-U.S.
|
||||||
|
(In millions)
|
||||||||||
Expiration:
|
|
|
|
|
|
||||||
2019-2023
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
67
|
|
2024-2028
|
—
|
|
|
—
|
|
|
18
|
|
|||
2029-2033
|
6
|
|
|
—
|
|
|
—
|
|
|||
2034-2038
|
—
|
|
|
140
|
|
|
—
|
|
|||
Indefinite
|
—
|
|
|
—
|
|
|
416
|
|
|||
|
$
|
7
|
|
|
$
|
140
|
|
|
$
|
501
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Balance at January 1,
|
$
|
1,102
|
|
|
$
|
1,146
|
|
|
$
|
1,259
|
|
Additions for tax positions of prior years (1)
|
269
|
|
|
70
|
|
|
24
|
|
|||
Reductions for tax positions of prior years (2)
|
(195
|
)
|
|
(101
|
)
|
|
(112
|
)
|
|||
Additions for tax positions of current year (1)
|
226
|
|
|
33
|
|
|
23
|
|
|||
Reductions for tax positions of current year
|
(3
|
)
|
|
(3
|
)
|
|
—
|
|
|||
Settlements with tax authorities (3)
|
(288
|
)
|
|
(43
|
)
|
|
(48
|
)
|
|||
Balance at December 31,
|
$
|
1,111
|
|
|
$
|
1,102
|
|
|
$
|
1,146
|
|
Unrecognized tax benefits that, if recognized, would impact the effective rate
|
$
|
1,046
|
|
|
$
|
1,073
|
|
|
$
|
1,112
|
|
(1)
|
The increase in 2018 is primarily related to the deemed repatriation transition tax and the IRS issued proposed regulations.
|
(2)
|
The decrease in 2018 is primarily related to the non-cash benefit from the tax audit settlement discussed above.
|
(3)
|
The decrease in 2018 is primarily related to the tax audit settlement, of which
$284 million
was reclassified to the current income tax payable account.
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Interest expense (benefit) recognized on the consolidated statements of operations (1)
|
$
|
(441
|
)
|
|
$
|
37
|
|
|
$
|
(41
|
)
|
|
|
|
|
|
|
||||||
|
|
|
December 31,
|
||||||||
|
|
|
2018
|
|
2017
|
||||||
|
|
|
(In millions)
|
||||||||
Interest included in other liabilities on the consolidated balance sheets
|
|
|
$
|
218
|
|
|
$
|
659
|
|
(1)
|
The decrease in 2018 is primarily related to the tax audit settlement, of which
$168 million
was recorded in other expenses and
$273 million
was reclassified to the current income tax payable account.
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions, except per share data)
|
||||||||||
Weighted Average Shares:
|
|
|
|
|
|
||||||
Weighted average common stock outstanding for basic earnings per common share
|
1,005.9
|
|
|
1,069.7
|
|
|
1,100.5
|
|
|||
Incremental common shares from assumed exercise or issuance of stock-based awards
|
8.0
|
|
|
8.8
|
|
|
8.0
|
|
|||
Weighted average common stock outstanding for diluted earnings per common share
|
1,013.9
|
|
|
1,078.5
|
|
|
1,108.5
|
|
|||
Income (Loss) from Continuing Operations:
|
|
|
|
|
|
||||||
Income (loss) from continuing operations, net of income tax
|
$
|
5,128
|
|
|
$
|
5,006
|
|
|
$
|
3,588
|
|
Less: Income (loss) from continuing operations, net of income tax, attributable to noncontrolling interests
|
5
|
|
|
10
|
|
|
4
|
|
|||
Less: Preferred stock dividends
|
141
|
|
|
103
|
|
|
103
|
|
|||
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders
|
$
|
4,982
|
|
|
$
|
4,893
|
|
|
$
|
3,481
|
|
Basic
|
$
|
4.95
|
|
|
$
|
4.57
|
|
|
$
|
3.16
|
|
Diluted
|
$
|
4.91
|
|
|
$
|
4.53
|
|
|
$
|
3.13
|
|
Income (Loss) from Discontinued Operations:
|
|
|
|
|
|
||||||
Income (loss) from discontinued operations, net of income tax
|
$
|
—
|
|
|
$
|
(986
|
)
|
|
$
|
(2,734
|
)
|
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
|
$
|
—
|
|
|
$
|
(986
|
)
|
|
$
|
(2,734
|
)
|
Basic
|
$
|
—
|
|
|
$
|
(0.92
|
)
|
|
$
|
(2.48
|
)
|
Diluted
|
$
|
—
|
|
|
$
|
(0.91
|
)
|
|
$
|
(2.46
|
)
|
Net Income (Loss):
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
5,128
|
|
|
$
|
4,020
|
|
|
$
|
854
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
5
|
|
|
10
|
|
|
4
|
|
|||
Less: Preferred stock dividends
|
141
|
|
|
103
|
|
|
103
|
|
|||
Net income (loss) available to MetLife, Inc.’s common shareholders
|
$
|
4,982
|
|
|
$
|
3,907
|
|
|
$
|
747
|
|
Basic
|
$
|
4.95
|
|
|
$
|
3.65
|
|
|
$
|
0.68
|
|
Diluted
|
$
|
4.91
|
|
|
$
|
3.62
|
|
|
$
|
0.67
|
|
|
December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions, except number of claims)
|
||||||||||
Asbestos personal injury claims at year end
|
62,522
|
|
|
62,930
|
|
|
67,223
|
|
|||
Number of new claims during the year
|
3,359
|
|
|
3,514
|
|
|
4,146
|
|
|||
Settlement payments during the year (1)
|
$
|
51.4
|
|
|
$
|
48.6
|
|
|
$
|
50.2
|
|
(1)
|
Settlement payments represent payments made by MLIC during the year in connection with settlements made in that year and in prior years. Amounts do not include MLIC’s attorneys’ fees and expenses.
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In millions)
|
||||||
Other Assets:
|
|
|
|
||||
Premium tax offset for future discounted and undiscounted assessments
|
$
|
47
|
|
|
$
|
56
|
|
Premium tax offset currently available for paid assessments
|
46
|
|
|
50
|
|
||
Total
|
$
|
93
|
|
|
$
|
106
|
|
Other Liabilities:
|
|
|
|
||||
Insolvency assessments
|
$
|
67
|
|
|
$
|
75
|
|
|
|
Amount
|
||
|
|
(In millions)
|
||
2019
|
|
$
|
292
|
|
2020
|
|
282
|
|
|
2021
|
|
260
|
|
|
2022
|
|
224
|
|
|
2023
|
|
209
|
|
|
Thereafter
|
|
859
|
|
|
Total
|
|
$
|
2,126
|
|
|
|
Three Months Ended
|
||||||||||||||
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
||||||||
|
|
(In millions, except per share data)
|
||||||||||||||
2018
|
|
|
||||||||||||||
Total revenues
|
|
$
|
14,805
|
|
|
$
|
21,185
|
|
|
$
|
16,289
|
|
|
$
|
15,662
|
|
Total expenses
|
|
$
|
13,149
|
|
|
$
|
20,084
|
|
|
$
|
15,210
|
|
|
$
|
13,191
|
|
Income (loss) from continuing operations, net of income tax
|
|
$
|
1,257
|
|
|
$
|
894
|
|
|
$
|
915
|
|
|
$
|
2,062
|
|
Income (loss) from discontinued operations, net of income tax
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net income (loss)
|
|
$
|
1,257
|
|
|
$
|
894
|
|
|
$
|
915
|
|
|
$
|
2,062
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
$
|
4
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
(5
|
)
|
Net income (loss) attributable to MetLife, Inc.
|
|
$
|
1,253
|
|
|
$
|
891
|
|
|
$
|
912
|
|
|
$
|
2,067
|
|
Less: Preferred stock dividends
|
|
$
|
6
|
|
|
$
|
46
|
|
|
$
|
32
|
|
|
$
|
57
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders
|
|
$
|
1,247
|
|
|
$
|
845
|
|
|
$
|
880
|
|
|
$
|
2,010
|
|
Basic earnings per common share
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders
|
|
$
|
1.20
|
|
|
$
|
0.83
|
|
|
$
|
0.89
|
|
|
$
|
2.05
|
|
Income (loss) from discontinued operations, net of income tax, attributable to MetLife, Inc.
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net income (loss) attributable to MetLife, Inc.
|
|
$
|
1.21
|
|
|
$
|
0.88
|
|
|
$
|
0.92
|
|
|
$
|
2.11
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders
|
|
$
|
1.20
|
|
|
$
|
0.83
|
|
|
$
|
0.89
|
|
|
$
|
2.05
|
|
Diluted earnings per common share
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders
|
|
$
|
1.19
|
|
|
$
|
0.83
|
|
|
$
|
0.88
|
|
|
$
|
2.04
|
|
Income (loss) from discontinued operations, net of income tax, attributable to MetLife, Inc.
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net income (loss) attributable to MetLife, Inc.
|
|
$
|
1.20
|
|
|
$
|
0.87
|
|
|
$
|
0.91
|
|
|
$
|
2.09
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders
|
|
$
|
1.19
|
|
|
$
|
0.83
|
|
|
$
|
0.88
|
|
|
$
|
2.04
|
|
2017
|
|
|
|
|
|
|
|
|
||||||||
Total revenues
|
|
$
|
14,964
|
|
|
$
|
15,333
|
|
|
$
|
16,171
|
|
|
$
|
15,840
|
|
Total expenses
|
|
$
|
13,892
|
|
|
$
|
14,315
|
|
|
$
|
15,686
|
|
|
$
|
14,879
|
|
Income (loss) from continuing operations, net of income tax
|
|
$
|
952
|
|
|
$
|
856
|
|
|
$
|
883
|
|
|
$
|
2,315
|
|
Income (loss) from discontinued operations, net of income tax
|
|
$
|
(76
|
)
|
|
$
|
58
|
|
|
$
|
(968
|
)
|
|
$
|
—
|
|
Net income (loss)
|
|
$
|
876
|
|
|
$
|
914
|
|
|
$
|
(85
|
)
|
|
$
|
2,315
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
6
|
|
|
$
|
(2
|
)
|
Net income (loss) attributable to MetLife, Inc.
|
|
$
|
873
|
|
|
$
|
911
|
|
|
$
|
(91
|
)
|
|
$
|
2,317
|
|
Less: Preferred stock dividends
|
|
$
|
6
|
|
|
$
|
46
|
|
|
$
|
6
|
|
|
$
|
45
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders
|
|
$
|
867
|
|
|
$
|
865
|
|
|
$
|
(97
|
)
|
|
$
|
2,272
|
|
Basic earnings per common share
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders
|
|
$
|
0.87
|
|
|
$
|
0.76
|
|
|
$
|
0.82
|
|
|
$
|
2.16
|
|
Income (loss) from discontinued operations, net of income tax, attributable to MetLife, Inc.
|
|
$
|
(0.07
|
)
|
|
$
|
0.05
|
|
|
$
|
(0.91
|
)
|
|
$
|
—
|
|
Net income (loss) attributable to MetLife, Inc.
|
|
$
|
0.80
|
|
|
$
|
0.86
|
|
|
$
|
(0.09
|
)
|
|
$
|
2.20
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders
|
|
$
|
0.80
|
|
|
$
|
0.81
|
|
|
$
|
(0.09
|
)
|
|
$
|
2.16
|
|
Diluted earnings per common share
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders
|
|
$
|
0.86
|
|
|
$
|
0.75
|
|
|
$
|
0.81
|
|
|
$
|
2.14
|
|
Income (loss) from discontinued operations, net of income tax, attributable to MetLife, Inc.
|
|
$
|
(0.07
|
)
|
|
$
|
0.05
|
|
|
$
|
(0.90
|
)
|
|
$
|
—
|
|
Net income (loss) attributable to MetLife, Inc.
|
|
$
|
0.79
|
|
|
$
|
0.85
|
|
|
$
|
(0.08
|
)
|
|
$
|
2.18
|
|
Net income (loss) available to MetLife, Inc.’s common shareholders
|
|
$
|
0.79
|
|
|
$
|
0.80
|
|
|
$
|
(0.09
|
)
|
|
$
|
2.14
|
|
Types of Investments
|
Cost or
Amortized Cost (1) |
|
Estimated Fair Value
|
|
Amount at
Which Shown on Balance Sheet |
||||||
Fixed maturity securities AFS:
|
|
|
|
|
|
||||||
Bonds:
|
|
|
|
|
|
||||||
Foreign government
|
$
|
56,353
|
|
|
$
|
62,288
|
|
|
$
|
62,288
|
|
U.S. government and agency
|
37,030
|
|
|
39,322
|
|
|
39,322
|
|
|||
Public utilities
|
12,430
|
|
|
13,075
|
|
|
13,075
|
|
|||
Municipals
|
10,376
|
|
|
11,533
|
|
|
11,533
|
|
|||
All other corporate bonds
|
120,505
|
|
|
121,423
|
|
|
121,423
|
|
|||
Total bonds
|
236,694
|
|
|
247,641
|
|
|
247,641
|
|
|||
Mortgage-backed and asset-backed securities
|
49,006
|
|
|
49,471
|
|
|
49,471
|
|
|||
Redeemable preferred stock
|
1,116
|
|
|
1,153
|
|
|
1,153
|
|
|||
Total fixed maturity securities AFS
|
286,816
|
|
|
298,265
|
|
|
298,265
|
|
|||
Unit-linked and FVO Securities
|
11,809
|
|
|
12,616
|
|
|
12,616
|
|
|||
Equity securities:
|
|
|
|
|
|
||||||
Common stock:
|
|
|
|
|
|
||||||
Industrial, miscellaneous and all other
|
667
|
|
|
827
|
|
|
827
|
|
|||
Banks, trust and insurance companies
|
67
|
|
|
119
|
|
|
119
|
|
|||
Public utilities
|
102
|
|
|
91
|
|
|
91
|
|
|||
Non-redeemable preferred stock
|
422
|
|
|
403
|
|
|
403
|
|
|||
Total equity securities
|
1,258
|
|
|
1,440
|
|
|
1,440
|
|
|||
Mortgage loans
|
75,752
|
|
|
|
|
75,752
|
|
||||
Policy loans
|
9,699
|
|
|
|
|
9,699
|
|
||||
Real estate and real estate joint ventures
|
9,653
|
|
|
|
|
9,653
|
|
||||
Real estate acquired in satisfaction of debt
|
45
|
|
|
|
|
45
|
|
||||
Other limited partnership interests
|
6,613
|
|
|
|
|
6,613
|
|
||||
Short-term investments
|
3,937
|
|
|
|
|
3,937
|
|
||||
Other invested assets
|
18,190
|
|
|
|
|
18,190
|
|
||||
Total investments
|
$
|
423,772
|
|
|
|
|
$
|
436,210
|
|
(1)
|
The Unit-linked and FVO Securities are primarily equity securities (including mutual funds) and fixed maturity securities AFS. Amortized cost for fixed maturity securities AFS and mortgage loans represents original cost reduced by repayments, valuation allowances and impairments from other-than-temporary declines in estimated fair value that are charged to earnings and adjusted for amortization of premium or accretion of discount; for equity securities, cost represents original cost; for real estate, cost represents original cost reduced by impairments and depreciation; for real estate joint ventures and other limited partnership interests, cost represents original cost reduced for impairments or original cost adjusted for equity in earnings and distributions.
|
|
2018
|
|
2017
|
||||
Condensed Balance Sheets
|
|
|
|
||||
Assets
|
|
|
|
||||
Investments:
|
|
|
|
||||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $2,745 and $4,520, respectively)
|
$
|
2,726
|
|
|
$
|
4,510
|
|
Fair value option securities, at estimated fair value
|
—
|
|
|
1,357
|
|
||
Short-term investments, principally at estimated fair value
|
16
|
|
|
30
|
|
||
Other invested assets, at estimated fair value
|
87
|
|
|
127
|
|
||
Total investments
|
2,829
|
|
|
6,024
|
|
||
Cash and cash equivalents
|
376
|
|
|
516
|
|
||
Accrued investment income
|
53
|
|
|
24
|
|
||
Investment in subsidiaries
|
66,567
|
|
|
73,274
|
|
||
Loans to subsidiaries
|
100
|
|
|
100
|
|
||
Other assets
|
843
|
|
|
1,153
|
|
||
Total assets
|
$
|
70,768
|
|
|
$
|
81,091
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Payables for collateral under derivatives transactions
|
$
|
9
|
|
|
$
|
36
|
|
Long-term debt — unaffiliated
|
11,844
|
|
|
14,599
|
|
||
Long-term debt — affiliated
|
1,957
|
|
|
2,000
|
|
||
Junior subordinated debt securities
|
2,456
|
|
|
2,454
|
|
||
Other liabilities
|
1,761
|
|
|
3,326
|
|
||
Total liabilities
|
18,027
|
|
|
22,415
|
|
||
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; 1,171,824,242 and 1,168,710,101 shares issued, respectively; 958,613,542 and 1,043,588,396 shares outstanding, respectively
|
12
|
|
|
12
|
|
||
Additional paid-in capital
|
32,474
|
|
|
31,111
|
|
||
Retained earnings
|
28,926
|
|
|
26,527
|
|
||
Treasury stock, at cost; 213,210,700 and 125,121,705 shares, respectively
|
(10,393
|
)
|
|
(6,401
|
)
|
||
Accumulated other comprehensive income (loss)
|
1,722
|
|
|
7,427
|
|
||
Total stockholders’ equity
|
52,741
|
|
|
58,676
|
|
||
Total liabilities and stockholders’ equity
|
$
|
70,768
|
|
|
$
|
81,091
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Condensed Statements of Operations
|
|
|
|
|
|
||||||
Revenues
|
|
|
|
|
|
||||||
Equity in earnings of subsidiaries
|
$
|
6,466
|
|
|
$
|
7,162
|
|
|
$
|
1,833
|
|
Net investment income
|
87
|
|
|
101
|
|
|
129
|
|
|||
Other revenues
|
19
|
|
|
59
|
|
|
151
|
|
|||
Net investment gains (losses)
|
(277
|
)
|
|
(1,142
|
)
|
|
86
|
|
|||
Net derivative gains (losses)
|
(56
|
)
|
|
(186
|
)
|
|
(68
|
)
|
|||
Total revenues
|
6,239
|
|
|
5,994
|
|
|
2,131
|
|
|||
Expenses
|
|
|
|
|
|
||||||
Interest expense
|
1,009
|
|
|
1,108
|
|
|
1,152
|
|
|||
Goodwill impairment
|
—
|
|
|
—
|
|
|
147
|
|
|||
Termination of financing arrangements
|
—
|
|
|
294
|
|
|
2
|
|
|||
Other expenses
|
158
|
|
|
657
|
|
|
388
|
|
|||
Total expenses
|
1,167
|
|
|
2,059
|
|
|
1,689
|
|
|||
Income (loss) before provision for income tax
|
5,072
|
|
|
3,935
|
|
|
442
|
|
|||
Provision for income tax expense (benefit)
|
(51
|
)
|
|
(75
|
)
|
|
(408
|
)
|
|||
Net income (loss)
|
5,123
|
|
|
4,010
|
|
|
850
|
|
|||
Less: Preferred stock dividends
|
141
|
|
|
103
|
|
|
103
|
|
|||
Net income (loss) available to common shareholders
|
$
|
4,982
|
|
|
$
|
3,907
|
|
|
$
|
747
|
|
Comprehensive income (loss)
|
$
|
(1,494
|
)
|
|
$
|
7,391
|
|
|
$
|
1,449
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Condensed Statements of Cash Flows
|
|
|
|
|
|
||||||
Cash flows from operating activities
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
5,123
|
|
|
$
|
4,010
|
|
|
$
|
850
|
|
Earnings of subsidiaries
|
(6,466
|
)
|
|
(7,162
|
)
|
|
(1,833
|
)
|
|||
Dividends from subsidiaries
|
7,367
|
|
|
6,745
|
|
|
4,470
|
|
|||
(Gains) losses on investments and from sales of businesses, net
|
277
|
|
|
1,142
|
|
|
(86
|
)
|
|||
Goodwill impairment
|
—
|
|
|
—
|
|
|
147
|
|
|||
Tax separation agreement charge
|
—
|
|
|
1,093
|
|
|
—
|
|
|||
Other, net
|
(807
|
)
|
|
634
|
|
|
199
|
|
|||
Net cash provided by (used in) operating activities
|
5,494
|
|
|
6,462
|
|
|
3,747
|
|
|||
Cash flows from investing activities
|
|
|
|
|
|
||||||
Sales of fixed maturity securities available-for-sale
|
9,635
|
|
|
7,217
|
|
|
8,603
|
|
|||
Purchases of fixed maturity securities available-for-sale
|
(8,178
|
)
|
|
(7,733
|
)
|
|
(7,409
|
)
|
|||
Cash received in connection with freestanding derivatives
|
227
|
|
|
452
|
|
|
311
|
|
|||
Cash paid in connection with freestanding derivatives
|
(237
|
)
|
|
(629
|
)
|
|
(561
|
)
|
|||
Sales of businesses
|
—
|
|
|
—
|
|
|
291
|
|
|||
Expense paid on behalf of subsidiaries
|
(14
|
)
|
|
(42
|
)
|
|
(68
|
)
|
|||
Receipts on loans to subsidiaries
|
—
|
|
|
—
|
|
|
140
|
|
|||
Issuances of loans to subsidiaries
|
—
|
|
|
—
|
|
|
(140
|
)
|
|||
Returns of capital from subsidiaries
|
87
|
|
|
610
|
|
|
80
|
|
|||
Capital contributions to subsidiaries
|
(767
|
)
|
|
(339
|
)
|
|
(1,733
|
)
|
|||
Net change in short-term investments
|
14
|
|
|
118
|
|
|
120
|
|
|||
Other, net
|
(3
|
)
|
|
(14
|
)
|
|
(18
|
)
|
|||
Net cash provided by (used in) investing activities
|
764
|
|
|
(360
|
)
|
|
(384
|
)
|
|||
Cash flows from financing activities
|
|
|
|
|
|
||||||
Net change in payables for collateral under derivative transactions
|
(27
|
)
|
|
(111
|
)
|
|
(80
|
)
|
|||
Long-term debt repaid
|
(1,759
|
)
|
|
(1,000
|
)
|
|
(1,250
|
)
|
|||
Fees paid for the termination of a committed facility related to Separation
|
—
|
|
|
(244
|
)
|
|
(2
|
)
|
|||
Treasury stock acquired in connection with share repurchases
|
(3,992
|
)
|
|
(2,927
|
)
|
|
(372
|
)
|
|||
Preferred stock issued, net of issuance costs
|
1,274
|
|
|
—
|
|
|
—
|
|
|||
Dividends on preferred stock
|
(141
|
)
|
|
(103
|
)
|
|
(103
|
)
|
|||
Dividends on common stock
|
(1,678
|
)
|
|
(1,717
|
)
|
|
(1,736
|
)
|
|||
Other, net
|
(75
|
)
|
|
182
|
|
|
93
|
|
|||
Net cash provided by (used in) financing activities
|
(6,398
|
)
|
|
(5,920
|
)
|
|
(3,450
|
)
|
|||
Change in cash and cash equivalents
|
(140
|
)
|
|
182
|
|
|
(87
|
)
|
|||
Cash and cash equivalents, beginning of year
|
516
|
|
|
334
|
|
|
421
|
|
|||
Cash and cash equivalents, end of year
|
$
|
376
|
|
|
$
|
516
|
|
|
$
|
334
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Supplemental disclosures of cash flow information
|
|
|
|
|
|
||||||
Net cash paid (received) for:
|
|
|
|
|
|
||||||
Interest
|
$
|
1,040
|
|
|
$
|
1,096
|
|
|
$
|
1,146
|
|
Income tax:
|
|
|
|
|
|
||||||
Amounts paid to (received from) subsidiaries, net
|
$
|
(33
|
)
|
|
$
|
(1,552
|
)
|
|
$
|
(569
|
)
|
Amounts paid to Brighthouse in accordance with the tax separation agreement
|
909
|
|
|
729
|
|
|
—
|
|
|||
Income tax paid (received) by MetLife, Inc., net
|
1
|
|
|
(37
|
)
|
|
136
|
|
|||
Total income tax, net
|
$
|
877
|
|
|
$
|
(860
|
)
|
|
$
|
(433
|
)
|
Non-cash transactions:
|
|
|
|
|
|
||||||
Dividends from subsidiary
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,652
|
|
Returns of capital from subsidiaries
|
$
|
3,844
|
|
|
$
|
17,518
|
|
|
$
|
372
|
|
Capital contributions to subsidiaries
|
$
|
3,844
|
|
|
$
|
15,655
|
|
|
$
|
157
|
|
Distribution of Brighthouse
|
$
|
—
|
|
|
$
|
10,346
|
|
|
$
|
—
|
|
Allocation of interest expense to subsidiary
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
39
|
|
Allocation of interest income to subsidiary
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
54
|
|
Brighthouse common stock exchange transaction (Note 3):
|
|
|
|
|
|
||||||
Reduction of long-term debt
|
$
|
944
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Reduction of fair value option securities
|
$
|
1,030
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Interest Rates (1)
|
|
|
|
|
|
December 31,
|
||||||||||
|
Range
|
|
Weighted
Average |
|
Maturity
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||||
Senior notes — unaffiliated (2)
|
3.00%
|
-
|
6.50%
|
|
4.96%
|
|
2020
|
-
|
2046
|
|
$
|
11,844
|
|
|
$
|
14,599
|
|
Senior notes — affiliated
|
0.82%
|
-
|
3.14%
|
|
2.16%
|
|
2019
|
-
|
2021
|
|
1,957
|
|
|
2,000
|
|
||
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
13,801
|
|
|
$
|
16,599
|
|
(1)
|
Range of interest rates and weighted average interest rates are for the year ended December 31,
2018
.
|
(2)
|
Net of
$79 million
and
$86 million
of unamortized issuance costs and net premiums and discounts at December 31,
2018
and
2017
, respectively.
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Long-term debt — unaffiliated
|
$
|
755
|
|
|
$
|
774
|
|
|
$
|
811
|
|
Long-term debt — affiliated
|
45
|
|
|
112
|
|
|
160
|
|
|||
Collateral financing arrangements
|
6
|
|
|
27
|
|
|
47
|
|
|||
Junior subordinated debt securities
|
203
|
|
|
195
|
|
|
134
|
|
|||
Total
|
$
|
1,009
|
|
|
$
|
1,108
|
|
|
$
|
1,152
|
|
Segment
|
|
DAC
and
VOBA
|
|
Future Policy Benefits,
Other Policy-Related Balances and Policyholder Dividend Obligation |
|
Policyholder
Account
Balances
|
|
Policyholder
Dividends
Payable
|
|
Unearned
Premiums (1), (2)
|
|
Unearned
Revenue (1) |
||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
|
$
|
633
|
|
|
$
|
72,639
|
|
|
$
|
69,002
|
|
|
$
|
—
|
|
|
$
|
1,945
|
|
|
$
|
36
|
|
Asia
|
|
10,156
|
|
|
41,846
|
|
|
66,610
|
|
|
86
|
|
|
2,381
|
|
|
1,299
|
|
||||||
Latin America
|
|
1,984
|
|
|
10,170
|
|
|
5,961
|
|
|
—
|
|
|
119
|
|
|
719
|
|
||||||
EMEA
|
|
1,622
|
|
|
5,357
|
|
|
11,712
|
|
|
5
|
|
|
19
|
|
|
464
|
|
||||||
MetLife Holdings
|
|
4,474
|
|
|
72,405
|
|
|
30,394
|
|
|
586
|
|
|
162
|
|
|
192
|
|
||||||
Corporate & Other
|
|
26
|
|
|
1,320
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
18,895
|
|
|
$
|
203,737
|
|
|
$
|
183,693
|
|
|
$
|
677
|
|
|
$
|
4,626
|
|
|
$
|
2,710
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
|
$
|
614
|
|
|
$
|
65,610
|
|
|
$
|
70,455
|
|
|
$
|
—
|
|
|
$
|
1,907
|
|
|
$
|
24
|
|
Asia
|
|
9,261
|
|
|
39,702
|
|
|
59,702
|
|
|
80
|
|
|
2,378
|
|
|
916
|
|
||||||
Latin America
|
|
2,050
|
|
|
10,397
|
|
|
6,361
|
|
|
—
|
|
|
115
|
|
|
675
|
|
||||||
EMEA
|
|
1,673
|
|
|
5,768
|
|
|
13,811
|
|
|
7
|
|
|
24
|
|
|
454
|
|
||||||
MetLife Holdings
|
|
4,797
|
|
|
73,317
|
|
|
32,176
|
|
|
595
|
|
|
167
|
|
|
205
|
|
||||||
Corporate & Other
|
|
24
|
|
|
816
|
|
|
13
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Total
|
|
$
|
18,419
|
|
|
$
|
195,610
|
|
|
$
|
182,518
|
|
|
$
|
682
|
|
|
$
|
4,592
|
|
|
$
|
2,274
|
|
(1)
|
Amounts are included within the future policy benefits, other policy-related balances and policyholder dividend obligation column.
|
(2)
|
Includes premiums received in advance.
|
Segment
|
|
Premiums and
Universal Life and Investment-Type Product Policy Fees |
|
Net
Investment Income |
|
Policyholder
Benefits and Claims and Interest Credited to Policyholder Account Balances |
|
Amortization of
DAC and VOBA Charged to Other Expenses |
|
Other
Expenses (1) |
||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
|
$
|
29,239
|
|
|
$
|
6,703
|
|
|
$
|
29,539
|
|
|
$
|
477
|
|
|
$
|
3,466
|
|
Asia
|
|
8,390
|
|
|
3,055
|
|
|
6,559
|
|
|
1,297
|
|
|
1,903
|
|
|||||
Latin America
|
|
3,817
|
|
|
1,194
|
|
|
3,057
|
|
|
209
|
|
|
1,044
|
|
|||||
EMEA
|
|
2,587
|
|
|
(195
|
)
|
|
772
|
|
|
433
|
|
|
909
|
|
|||||
MetLife Holdings
|
|
5,191
|
|
|
5,222
|
|
|
6,662
|
|
|
553
|
|
|
2,286
|
|
|||||
Corporate & Other
|
|
118
|
|
|
187
|
|
|
80
|
|
|
6
|
|
|
2,382
|
|
|||||
Total
|
|
$
|
49,342
|
|
|
$
|
16,166
|
|
|
$
|
46,669
|
|
|
$
|
2,975
|
|
|
$
|
11,990
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
|
$
|
24,644
|
|
|
$
|
6,201
|
|
|
$
|
25,103
|
|
|
$
|
459
|
|
|
$
|
3,235
|
|
Asia
|
|
8,352
|
|
|
3,299
|
|
|
6,799
|
|
|
1,310
|
|
|
1,802
|
|
|||||
Latin America
|
|
3,737
|
|
|
1,288
|
|
|
2,973
|
|
|
224
|
|
|
1,111
|
|
|||||
EMEA
|
|
2,492
|
|
|
1,157
|
|
|
2,012
|
|
|
356
|
|
|
966
|
|
|||||
MetLife Holdings
|
|
5,603
|
|
|
5,426
|
|
|
7,097
|
|
|
234
|
|
|
2,550
|
|
|||||
Corporate & Other
|
|
(326
|
)
|
|
(8
|
)
|
|
(64
|
)
|
|
98
|
|
|
2,507
|
|
|||||
Total
|
|
$
|
44,502
|
|
|
$
|
17,363
|
|
|
$
|
43,920
|
|
|
$
|
2,681
|
|
|
$
|
12,171
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
|
$
|
22,490
|
|
|
$
|
5,942
|
|
|
$
|
22,892
|
|
|
$
|
471
|
|
|
$
|
3,244
|
|
Asia
|
|
8,914
|
|
|
2,807
|
|
|
6,916
|
|
|
1,350
|
|
|
1,795
|
|
|||||
Latin America
|
|
3,554
|
|
|
1,133
|
|
|
2,770
|
|
|
184
|
|
|
1,007
|
|
|||||
EMEA
|
|
2,442
|
|
|
1,229
|
|
|
2,064
|
|
|
408
|
|
|
924
|
|
|||||
MetLife Holdings
|
|
6,034
|
|
|
5,670
|
|
|
7,521
|
|
|
424
|
|
|
3,392
|
|
|||||
Corporate & Other
|
|
(749
|
)
|
|
9
|
|
|
(629
|
)
|
|
(119
|
)
|
|
1,892
|
|
|||||
Total
|
|
$
|
42,685
|
|
|
$
|
16,790
|
|
|
$
|
41,534
|
|
|
$
|
2,718
|
|
|
$
|
12,254
|
|
(1)
|
Includes other expenses and policyholder dividends, excluding amortization of DAC and VOBA charged to other expenses.
|
|
|
Gross Amount
|
|
Ceded
|
|
Assumed
|
|
Net Amount
|
|
% Amount Assumed to Net
|
|||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in-force
|
|
$
|
4,963,820
|
|
|
$
|
507,589
|
|
|
$
|
532,511
|
|
|
$
|
4,988,742
|
|
|
10.7
|
%
|
Insurance premium
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance (1)
|
|
$
|
26,356
|
|
|
$
|
1,792
|
|
|
$
|
1,791
|
|
|
$
|
26,355
|
|
|
6.8
|
%
|
Accident & health insurance
|
|
14,166
|
|
|
515
|
|
|
212
|
|
|
13,863
|
|
|
1.5
|
%
|
||||
Property and casualty insurance
|
|
3,677
|
|
|
73
|
|
|
18
|
|
|
3,622
|
|
|
0.5
|
%
|
||||
Total insurance premium
|
|
$
|
44,199
|
|
|
$
|
2,380
|
|
|
$
|
2,021
|
|
|
$
|
43,840
|
|
|
4.6
|
%
|
2017
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in-force
|
|
$
|
4,594,523
|
|
|
$
|
513,091
|
|
|
$
|
581,246
|
|
|
$
|
4,662,678
|
|
|
12.5
|
%
|
Insurance premium
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance (1)
|
|
$
|
22,379
|
|
|
$
|
1,863
|
|
|
$
|
1,531
|
|
|
$
|
22,047
|
|
|
6.9
|
%
|
Accident & health insurance
|
|
13,593
|
|
|
442
|
|
|
223
|
|
|
13,374
|
|
|
1.7
|
%
|
||||
Property and casualty insurance
|
|
3,623
|
|
|
71
|
|
|
19
|
|
|
3,571
|
|
|
0.5
|
%
|
||||
Total insurance premium
|
|
$
|
39,595
|
|
|
$
|
2,376
|
|
|
$
|
1,773
|
|
|
$
|
38,992
|
|
|
4.5
|
%
|
2016
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in-force
|
|
$
|
4,098,780
|
|
|
$
|
481,028
|
|
|
$
|
613,693
|
|
|
$
|
4,231,445
|
|
|
14.5
|
%
|
Insurance premium
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance (1)
|
|
$
|
20,857
|
|
|
$
|
1,614
|
|
|
$
|
1,089
|
|
|
$
|
20,332
|
|
|
5.4
|
%
|
Accident & health insurance
|
|
13,551
|
|
|
447
|
|
|
257
|
|
|
13,361
|
|
|
1.9
|
%
|
||||
Property and casualty insurance
|
|
3,567
|
|
|
75
|
|
|
17
|
|
|
3,509
|
|
|
0.5
|
%
|
||||
Total insurance premium
|
|
$
|
37,975
|
|
|
$
|
2,136
|
|
|
$
|
1,363
|
|
|
$
|
37,202
|
|
|
3.7
|
%
|
(1)
|
Includes annuities with life contingencies.
|
•
|
Ineffective design and operating effectiveness of the controls related to processes and procedures for identifying unresponsive and missing group annuity annuitants and pension beneficiaries (Control Activities); and
|
•
|
Ineffective design and operating effectiveness of the controls intended to ensure timely communication and escalation of the issue throughout the Company (Information and Communication).
|
•
|
The Company engaged third party advisors and employees, supervised by MetLife, Inc.’s CRO, to examine and analyze the facts and circumstances giving rise to the material weakness and addressed those findings;
|
•
|
The Company changed its accounting procedures, administrative and search practices to identify, contact, and record responses from “unresponsive and missing” plan annuitants and to otherwise locate missing annuitants; and
|
•
|
The Company implemented enhanced internal controls associated with timely internal communication and escalation procedures and governance.
|
•
|
The Company engaged third party advisors and employees, supervised by MetLife, Inc.’s Chief Auditor, to examine and analyze the facts and circumstances giving rise to the material weakness, and addressed those findings; and
|
•
|
The Company enhanced its reconciliation, analytic controls, and change management to ensure the completeness and accuracy of the assumed reinsurance in-force data.
|
|
|
Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights (1)
|
|
Weighted-average Exercise Price of Outstanding Options, Warrants and Rights (2)
|
|
Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a))(3)
|
||||
Plan Category
|
|
(a)
|
|
(b)
|
|
(c)
|
||||
Equity compensation plans approved by security holders
|
|
23,814,156
|
|
|
$
|
36.70
|
|
|
39,004,985
|
|
Equity compensation plans not approved by security holders
|
|
None
|
|
|
—
|
|
|
None
|
|
|
Total
|
|
23,814,156
|
|
|
$
|
36.70
|
|
|
39,004,985
|
|
(1)
|
Column (a) reflects the following items outstanding as of
December 31, 2018
:
|
Stock Options
|
12,355,294
|
|
Restricted Stock Units
|
2,946,269
|
|
Performance Shares (assuming future payout at maximum performance factor)
|
7,077,410
|
|
Deferred Shares
|
1,435,183
|
|
Shares that will or may be issued
|
23,814,156
|
|
•
|
Stock Options under the MetLife, Inc. 2015 Stock and Incentive Compensation Plan (the “2015 Stock Plan”) and its predecessor plan, the MetLife, Inc. 2005 Stock and Incentive Compensation Plan (the “2005 Stock Plan”) were outstanding;
|
•
|
Restricted Stock Units and Performance Shares under the 2015 Stock Plan were outstanding; and
|
•
|
Deferred Shares related to awards under the 2015 Stock Plan, MetLife, Inc. 2015 Non-Management Directors Stock Compensation Plan (the “2015 Director Stock Plan”), 2005 Stock Plan, MetLife, Inc. 2005 Non-Management Directors Stock Compensation Plan (the “2005 Director Stock Plan”), and earlier plans, were outstanding. Deferred Shares are related to awards that have become payable in Shares under any plan, but the issuance of which has been deferred.
|
(2)
|
Column (b) reflects the weighted average exercise price of all Stock Options under any plan that, as of
December 31, 2018
, had been granted but not forfeited, expired, or exercised. Performance Shares, Restricted Stock Units, and Deferred Shares are not included in determining the weighted average in column (b) because they have no exercise price.
|
(3)
|
Column (c) reflects the following items outstanding as of
December 31, 2018
:
|
|
Number of Shares
|
|
At January 15, 2015, the effective date of the 2015 Stock Plan and 2015 Director Stock Plan:
|
|
|
Shares newly authorized for issuance under the 2015 Stock Plan
|
11,750,000
|
|
Shares remaining authorized for issuance under the 2005 Stock Plan or other plans that were not covered by awards (i)
|
18,023,959
|
|
Shares authorized for issuance under the 2015 Director Stock Plan (ii)
|
1,642,208
|
|
Total Shares authorized for issuance at January 1, 2015
|
31,416,167
|
|
Additional Shares recovered for issuance (iii) in:
|
|
|
2015
|
4,475,737
|
|
2016
|
6,344,455
|
|
2017
|
6,636,193
|
|
2018
|
5,655,122
|
|
Total Shares recovered for issuance since January 1, 2015
|
23,111,507
|
|
Less: Shares covered by new awards and new imputed reinvested dividends on Deferred Shares (iv) in:
|
|
|
2015
|
4,413,785
|
|
2016
|
6,036,177
|
|
2017
|
4,532,897
|
|
2018
|
4,519,557
|
|
Total Shares covered by new awards and new imputed reinvested dividends on Deferred Shares since January 1, 2015
|
19,502,416
|
|
Net shares added to the 2015 Stock Plan and 2015 Director Plan authorizations in light of the Separation (v)
|
3,979,727
|
|
Shares remaining available for future issuance under the 2015 Stock Plan and 2015 Director Stock Plan
|
39,004,985
|
|
(i)
|
Consists of Shares that were not covered by awards, including Shares previously covered by awards but recovered due to forfeiture of awards or other reasons and once again available for issuance.
|
(ii)
|
Consists of Shares remaining authorized for issuance under the predecessor plan, the 2005 Director Stock Plan, that were not covered by awards, including Shares previously covered by awards but recovered due to forfeiture of awards or other reasons and once again available.
|
(iii)
|
Consists of Shares utilized under the 2005 Stock Plan or 2015 Stock Plan that were recovered during each of the indicated calendar years, and therefore once again available for issuance, due to: (i) termination of the award by expiration, forfeiture, cancellation, lapse, or otherwise without issuing Shares; (ii) settlement of the award in cash either in lieu of Shares or otherwise; (iii) exchange of the award for awards not involving Shares; (iv) payment of the exercise price of a Stock Option, or the tax withholding requirements with respect to an award, satisfied by tendering Shares to MetLife, Inc. (by either actual delivery or by attestation); (v) satisfaction of tax withholding requirements with respect to an award satisfied by MetLife, Inc. withholding Shares otherwise issuable; and (vi) the payout of Performance Shares at any performance factor less than the maximum performance factor.
|
(iv)
|
Consists of Shares covered by awards granted under the 2015 Stock Plan (including Performance Shares assuming future payout at maximum performance factor). Shares covered by awards granted under the 2015 Directors Stock Plan and Shares covered by imputed reinvested dividends credited on Deferred Shares owed to directors, employees or agents, in each case during each of the indicated calendar years.
|
(v)
|
In light of the Separation, and in order to maintain the Share authorizations under each plan at the levels that shareholders had approved, MetLife, Inc. increased the number of Shares authorized for issuance under the 2015 Stock Plan and 2015 Director Plan as of August 4, 2017, excluding those Shares from the authorizations that had already been issued, by the Adjustment Ratio. MetLife, Inc. also increased the number of Shares covered by outstanding Stock Options, Performance Shares, Restricted Stock Units, and Deferred Shares on that date by the Adjustment Ratio, in order to maintain the intrinsic value of those awards and Deferred Shares, which decreased the number of Shares available for issuance under both plans. The amount in this row is the net increase in the Share authorization under both the 2015
|
|
|
|
|
Incorporated By Reference
|
|
|
||||||
Exhibit No.
|
|
Description
|
|
Form
|
|
File Number
|
|
Exhibit
|
|
Filing Date
|
|
Filed or Furnished
Herewith
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.1
|
|
|
S-1
|
|
333-91517
|
|
2.1
|
|
November 23, 1999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.2
|
|
|
S-1/A
|
|
333-91517
|
|
2.2
|
|
March 29, 2000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.3
|
|
|
8-K
|
|
001-15787
|
|
2.1
|
|
August 7, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.1
|
|
|
10-K
|
|
001-15787
|
|
3.1
|
|
March 1, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.2
|
|
|
10-Q
|
|
001-15787
|
|
3.6
|
|
November 7, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.3
|
|
|
8-K
|
|
001-15787
|
|
3.1
|
|
April 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.4
|
|
|
8-K
|
|
001-15787
|
|
3.1
|
|
May 28, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.5
|
|
|
10-Q
|
|
001-15787
|
|
3.7
|
|
November 5, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.6
|
|
|
10-K
|
|
001-15787
|
|
3.4
|
|
March 1, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.7
|
|
|
10-K
|
|
001-15787
|
|
3.2
|
|
March 1, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.8
|
|
|
10-K
|
|
001-15787
|
|
3.3
|
|
March 1, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.9
|
|
|
8-K
|
|
001-15787
|
|
3.1
|
|
October 24, 2017
|
|
|
|
3.10
|
|
|
8-K
|
|
001-15787
|
|
3.1
|
|
March 22, 2018
|
|
|
|
|
|
|
Incorporated By Reference
|
|
|
||||||
Exhibit No.
|
|
Description
|
|
Form
|
|
File Number
|
|
Exhibit
|
|
Filing Date
|
|
Filed or Furnished
Herewith
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.11
|
|
|
8-K
|
|
001-15787
|
|
3.1
|
|
June 4, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.12
|
|
|
8-K
|
|
001-15787
|
|
3.2
|
|
October 1, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.1
|
|
|
S-1/A
|
|
333-91517
|
|
4.1
|
|
March 9, 2000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.4
|
|
|
8-A
|
|
001-15787
|
|
99.6
|
|
June 10, 2005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.6
|
|
|
8-K
|
|
001-15787
|
|
4.2
|
|
May 28, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.8
|
|
|
8-K
|
|
001-15787
|
|
4.1
|
|
March 22, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.9
|
|
|
8-K
|
|
001-15787
|
|
4.1
|
|
June 4, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.10
|
|
|
8-K
|
|
001-15787
|
|
4.2
|
|
June 4, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.11
|
|
|
8-K
|
|
001-15787
|
|
4.3
|
|
June 4, 2018
|
|
|
|
|
|
Certain instruments defining the rights of holders of long-term debt of MetLife, Inc. and its consolidated subsidiaries are omitted pursuant to Item 601(b)(4)(iii) of Regulation S-K. MetLife, Inc. hereby agrees to furnish to the Securities and Exchange Commission, upon request, copies of such instruments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.1.1
|
|
|
S-1
|
|
333-91517
|
|
10.12
|
|
November 23, 1999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.1.2
|
|
|
10-K
|
|
001-15787
|
|
10.62
|
|
February 27, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.2
|
|
|
8-K
|
|
001-15787
|
|
10.1
|
|
December 21, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.3
|
|
|
10-Q
|
|
001-15787
|
|
10.1
|
|
May 6, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated By Reference
|
|
|
||||||
Exhibit No.
|
|
Description
|
|
Form
|
|
File Number
|
|
Exhibit
|
|
Filing Date
|
|
Filed or Furnished
Herewith
|
10.4
|
|
|
8-K
|
|
001-15787
|
|
10.1
|
|
August 7, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.5
|
|
|
S-8
|
|
333-198141
|
|
4.1
|
|
August 14, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.6
|
|
|
S-8
|
|
333-214710
|
|
4.1
|
|
November 18, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.7
|
|
|
10-K
|
|
001-15787
|
|
10.94
|
|
February 27, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.8.1
|
|
|
10-Q
|
|
001-15787
|
|
10.2
|
|
November 5, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.8.2
|
|
|
10-K
|
|
001-15787
|
|
10.13
|
|
February 25, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.8.3
|
|
|
10-K
|
|
001-15787
|
|
10.14
|
|
February 25, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.8.4
|
|
|
10-Q
|
|
001-15787
|
|
10.15
|
|
February 25, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.8.5
|
|
|
10-Q
|
|
001-15787
|
|
10.1
|
|
August 5, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.8.6
|
|
|
10-Q
|
|
001-15787
|
|
10.1
|
|
August 5, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.9
|
|
|
10-K
|
|
001-15787
|
|
10.1
|
|
February 27, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.10
|
|
|
8-K
|
|
001-15787
|
|
10.1
|
|
November 6, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.11.1
|
|
|
S-8
|
|
333-198145
|
|
4.1
|
|
August 14, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.11.2
|
|
|
10-K
|
|
001-15787
|
|
10.24
|
|
February 27, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.12
|
|
|
8-K
|
|
001-15787
|
|
10.11
|
|
December 11, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.13.1
|
|
|
8-K
|
|
001-15787
|
|
10.11
|
|
February 15, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.13.2
|
|
|
10-K
|
|
001-15787
|
|
10.24
|
|
March 1, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.14
|
|
|
8-K
|
|
001-15787
|
|
10.6
|
|
February 15, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.15
|
|
|
8-K
|
|
001-15787
|
|
10.2
|
|
February 15, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.16.1
|
|
|
8-K
|
|
001-15787
|
|
10.9
|
|
February 15, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.16.2
|
|
|
8-K
|
|
001-15787
|
|
10.10
|
|
February 15, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.16.3
|
|
|
10-K
|
|
001-15787
|
|
10.24
|
|
February 27, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated By Reference
|
|
|
||||||
Exhibit No.
|
|
Description
|
|
Form
|
|
File Number
|
|
Exhibit
|
|
Filing Date
|
|
Filed or Furnished
Herewith
|
10.16.4
|
|
|
10-K
|
|
001-15787
|
|
10.25
|
|
February 27, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.16.5
|
|
|
8-K
|
|
001-15787
|
|
10.7
|
|
December 11, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.16.6
|
|
|
8-K
|
|
001-15787
|
|
10.8
|
|
December 11, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.16.7
|
|
|
10-K
|
|
001-15787
|
|
10.28
|
|
February 27, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.16.8
|
|
|
10-K
|
|
001-15787
|
|
10.29
|
|
February 27, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.16.9
|
|
|
10-K
|
|
001-15787
|
|
10.101
|
|
February 25, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.16.10
|
|
|
10-K
|
|
001-15787
|
|
10.102
|
|
February 25, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.17.1
|
|
|
8-K
|
|
001-15787
|
|
10.12
|
|
February 15, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.17.2
|
|
|
8-K
|
|
001-15787
|
|
10.13
|
|
February 15, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.17.3
|
|
|
8-K
|
|
001-15787
|
|
10.9
|
|
December 11, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.17.4
|
|
|
8-K
|
|
001-15787
|
|
10.10
|
|
December 11, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.17.5
|
|
|
10-K
|
|
001-15787
|
|
10.103
|
|
February 25, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.17.6
|
|
|
10-K
|
|
001-15787
|
|
10.104
|
|
February 25, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.17.7
|
|
|
10-K
|
|
001-15787
|
|
10.25
|
|
March 1, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.18.1
|
|
|
8-K
|
|
001-15787
|
|
10.3
|
|
December 11, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.18.2
|
|
|
8-K
|
|
001-15787
|
|
10.4
|
|
December 11, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.18.3
|
|
|
10-K
|
|
001-15787
|
|
10.97
|
|
February 25, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.18.4
|
|
|
10-K
|
|
001-15787
|
|
10.98
|
|
February 25, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.18.5
|
|
|
8-K
|
|
001-15787
|
|
10.3
|
|
February 20, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.18.6
|
|
|
8-K
|
|
001-15787
|
|
10.4
|
|
February 20, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.19.1
|
|
|
8-K
|
|
001-15787
|
|
10.7
|
|
February 15, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.19.2
|
|
|
8-K
|
|
001-15787
|
|
10.8
|
|
February 15, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.19.3
|
|
|
8-K
|
|
001-15787
|
|
10.5
|
|
December 11, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated By Reference
|
|
|
||||||
Exhibit No.
|
|
Description
|
|
Form
|
|
File Number
|
|
Exhibit
|
|
Filing Date
|
|
Filed or Furnished
Herewith
|
10.19.4
|
|
|
8-K
|
|
001-15787
|
|
10.6
|
|
December 11, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.19.5
|
|
|
10-K
|
|
001-15787
|
|
10.99
|
|
February 25, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.19.6
|
|
|
10-K
|
|
001-15787
|
|
10.100
|
|
February 25, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.19.7
|
|
|
8-K
|
|
001-15787
|
|
10.5
|
|
February 20, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.19.8
|
|
|
8-K
|
|
001-15787
|
|
10.6
|
|
February 20, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.20.1
|
|
|
8-K
|
|
001-15787
|
|
10.1
|
|
December 11, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.20.2
|
|
|
10-K
|
|
001-15787
|
|
10.95
|
|
February 25, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.20.3
|
|
|
8-K
|
|
001-15787
|
|
10.1
|
|
February 20, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.20.4
|
|
|
8-K
|
|
001-15787
|
|
10.1
|
|
December 13, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.21.1
|
|
|
8-K
|
|
001-15787
|
|
10.3
|
|
February 15, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.21.2
|
|
|
8-K
|
|
001-15787
|
|
10.2
|
|
December 11, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.21.3
|
|
|
10-K
|
|
001-15787
|
|
10.96
|
|
February 25, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.21.4
|
|
|
8-K
|
|
001-15787
|
|
10.2
|
|
February 20, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.21.5
|
|
|
8-K
|
|
001-15787
|
|
10.2
|
|
December 13, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.22.1
|
|
|
10-K
|
|
001-15787
|
|
10.105
|
|
February 25, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.22.2
|
|
|
8-K
|
|
001-15787
|
|
10.7
|
|
February 20, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.23.1
|
|
|
10-K
|
|
001-15787
|
|
10.95
|
|
February 27, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.23.2
|
|
|
10-K
|
|
001-15787
|
|
10.98
|
|
February 27, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.23.3
|
|
|
10-K
|
|
001-15787
|
|
10.99
|
|
February 27, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.23.4
|
|
|
10-K
|
|
001-15787
|
|
10.71
|
|
February 25, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.23.5
|
|
|
10-K
|
|
001-15787
|
|
10.102
|
|
February 27, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.23.6
|
|
|
10-K
|
|
001-15787
|
|
10.73
|
|
February 25, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated By Reference
|
|
|
||||||
Exhibit No.
|
|
Description
|
|
Form
|
|
File Number
|
|
Exhibit
|
|
Filing Date
|
|
Filed or Furnished
Herewith
|
10.23.7
|
|
|
10-K
|
|
001-15787
|
|
10.101
|
|
February 27, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.23.8
|
|
|
10-K
|
|
001-15787
|
|
10.60
|
|
March 1, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.23.9
|
|
|
10-K
|
|
001-15787
|
|
10.61
|
|
March 1, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.23.10
|
|
|
10-K
|
|
001-15787
|
|
10.69
|
|
March 1, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.23.11
|
|
|
10-Q
|
|
001-15787
|
|
10.9
|
|
May 8, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.23.12
|
|
|
10-Q
|
|
001-15787
|
|
10.2
|
|
November 8, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.23.13
|
|
|
10-Q
|
|
001-15787
|
|
10.3
|
|
November 8, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.24.1
|
|
|
10-K
|
|
001-15787
|
|
10.70
|
|
March 1, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.24.2
|
|
|
10-K
|
|
001-15787
|
|
10.71
|
|
March 1, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.24.3
|
|
|
10-K
|
|
001-15787
|
|
10.72
|
|
March 1, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.24.4
|
|
|
8-K
|
|
001-15787
|
|
10.1
|
|
May 4, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.24.5
|
|
|
10-Q
|
|
001-15787
|
|
10.6
|
|
November 6, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.25
|
|
|
10-Q
|
|
001-15787
|
|
10.4
|
|
November 6, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.26.1
|
|
|
10-K
|
|
001-15787
|
|
10.72
|
|
February 27, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.26.2
|
|
|
10-K
|
|
001-15787
|
|
10.74
|
|
February 27, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.26.3
|
|
|
10-K
|
|
001-15787
|
|
10.48
|
|
February 25, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.26.4
|
|
|
10-K
|
|
001-15787
|
|
10.75
|
|
February 27, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.26.5
|
|
|
10-K
|
|
001-15787
|
|
10.77
|
|
February 27, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.26.6
|
|
|
10-Q
|
|
001-15787
|
|
10.8
|
|
May 8, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.27.1
|
|
|
S-8
|
|
333-198143
|
|
4.1
|
|
August 14, 2014
|
|
|
|
|
|
|
Incorporated By Reference
|
|
|
||||||
Exhibit No.
|
|
Description
|
|
Form
|
|
File Number
|
|
Exhibit
|
|
Filing Date
|
|
Filed or Furnished
Herewith
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.27.2
|
|
|
S-8
|
|
333-198143
|
|
4.2
|
|
August 14, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.27.3
|
|
|
S-8
|
|
333-198143
|
|
4.3
|
|
August 14, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.27.4
|
|
|
S-8
|
|
333-198143
|
|
4.4
|
|
August 14, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.27.5
|
|
|
S-8
|
|
333-198143
|
|
4.5
|
|
August 14, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.27.6
|
|
|
S-8
|
|
333-198143
|
|
4.6
|
|
August 14, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.28.1
|
|
|
10-K
|
|
001-15787
|
|
10.78
|
|
February 27, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.28.2
|
|
|
10-K
|
|
001-15787
|
|
10.52
|
|
February 25, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.28.3
|
|
|
10-K
|
|
001-15787
|
|
10.53
|
|
February 25, 2016
|
|
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10.28.4
|
|
|
10-K
|
|
001-15787
|
|
10.45
|
|
March 1, 2017
|
|
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10.29.1
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10-K
|
|
001-15787
|
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10.46
|
|
March 1, 2017
|
|
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10.29.2
|
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10-K
|
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001-15787
|
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10.81
|
|
February 27, 2013
|
|
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10.29.3
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10-K
|
|
001-15787
|
|
10.84
|
|
February 27, 2014
|
|
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10.29.4
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10-K
|
|
001-15787
|
|
10.85
|
|
February 27, 2015
|
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10.29.5
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10-K
|
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001-15787
|
|
10.86
|
|
February 27, 2015
|
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10.29.6
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10-K
|
|
001-15787
|
|
10.60
|
|
February 25, 2016
|
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10.29.7
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10-K
|
|
001-15787
|
|
10.52
|
|
March 1, 2017
|
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10.29.8
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10-K
|
|
001-15787
|
|
10.53
|
|
March 1, 2017
|
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10.29.9
|
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10-K
|
|
001-15787
|
|
10.54
|
|
March 1, 2017
|
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|
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10.29.10
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10-K
|
|
001-15787
|
|
10.88
|
|
February 27, 2015
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|
Incorporated By Reference
|
|
|
||||||
Exhibit No.
|
|
Description
|
|
Form
|
|
File Number
|
|
Exhibit
|
|
Filing Date
|
|
Filed or Furnished
Herewith
|
10.29.11
|
|
|
10-K
|
|
001-15787
|
|
10.56
|
|
March 1, 2017
|
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|
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10.29.12
|
|
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10-K
|
|
001-15787
|
|
10.57
|
|
March 1, 2017
|
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|
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10.29.13
|
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X
|
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10.29.14
|
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X
|
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|
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|
|
|
|
|
|
10.30
|
|
|
10-K
|
|
001-15787
|
|
10.79
|
|
February 25, 2016
|
|
|
|
|
|
|
|
|
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|
|
|
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|
10.31.1
|
|
|
10-Q
|
|
001-15787
|
|
10.2
|
|
August 8, 2014
|
|
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|
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10.31.2
|
|
|
10-K
|
|
001-15787
|
|
10.111
|
|
February 27, 2015
|
|
|
|
|
|
|
|
|
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|
|
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|
10.31.3
|
|
|
10-K
|
|
001-15787
|
|
10.77
|
|
March 1, 2017
|
|
|
|
|
|
|
|
|
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|
|
|
|
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|
10.31.4
|
|
|
10-K
|
|
001-15787
|
|
10.78
|
|
March 1, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.31.5
|
|
|
10-K
|
|
001-15787
|
|
10.79
|
|
March 1, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.31.6
|
|
|
10-K
|
|
001-15787
|
|
10.80
|
|
March 1, 2017
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
10.31.7
|
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|
X
|
|
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|
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|
10.31.8
|
|
|
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|
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|
X
|
|
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|
|
|
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|
|
10.31.9
|
|
|
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|
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|
X
|
|
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|
|
10.31.10
|
|
|
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|
X
|
|
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10.31.11
|
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X
|
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|
10.32
|
|
|
10-Q
|
|
001-15787
|
|
10.1
|
|
November 5, 2015
|
|
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|
|
|
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|
|
|
|
10.33.1
|
|
|
10-Q
|
|
001-15787
|
|
10.2
|
|
November 7, 2012
|
|
|
|
|
|
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|
|
10.33.2
|
|
|
10-Q
|
|
001-15787
|
|
10.1
|
|
August 6, 2015
|
|
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|
|
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|
10.33.3
|
|
|
10-K
|
|
001-15787
|
|
10.2
|
|
March 1, 2017
|
|
|
|
|
|
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|
|
10.33.4
|
|
|
10-Q
|
|
001-15787
|
|
10.3
|
|
November 6, 2017
|
|
|
|
|
|
|
|
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|
10.33.5
|
|
|
10-Q
|
|
001-15787
|
|
10.5
|
|
November 6, 2017
|
|
|
|
|
|
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|
|
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|
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|
|
|
|
|
|
|
Incorporated By Reference
|
|
|
||||||
Exhibit No.
|
|
Description
|
|
Form
|
|
File Number
|
|
Exhibit
|
|
Filing Date
|
|
Filed or Furnished
Herewith
|
10.34.1
|
|
|
8-K
|
|
001-15787
|
|
10.1
|
|
May 16, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
10.34.2
|
|
|
8-K
|
|
001-15787
|
|
10.1
|
|
June 15, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.34.3
|
|
|
8-K
|
|
001-15787
|
|
10.1
|
|
November 21, 2017
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
10.35
|
|
|
10-Q
|
|
001-15787
|
|
10.1
|
|
November 6, 2017
|
|
|
|
|
|
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|
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|
|
|
|
|
|
10.36
|
|
|
10-Q
|
|
001-15787
|
|
10.2
|
|
November 6, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.37
|
|
|
10-K
|
|
001-15787
|
|
10.123
|
|
March 1, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
10.38
|
|
|
8-K
|
|
001-15787
|
|
10.1
|
|
June 18, 2018
|
|
|
|
|
|
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|
|
10.39.1
|
|
|
10-Q
|
|
001-15787
|
|
10.3
|
|
August 7, 2018
|
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|
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10.39.2
|
|
|
10-Q
|
|
001-15787
|
|
10.4
|
|
August 7, 2018
|
|
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|
|
10.39.3
|
|
|
10-Q
|
|
001-15787
|
|
10.5
|
|
August 7, 2018
|
|
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|
|
|
|
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|
10.39.4
|
|
|
10-Q
|
|
001-15787
|
|
10.6
|
|
August 7, 2018
|
|
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|
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|
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|
|
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|
10.39.5
|
|
|
10-Q
|
|
001-15787
|
|
10.7
|
|
August 7, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.39.6
|
|
|
10-Q
|
|
001-15787
|
|
10.8
|
|
August 7, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.39.7
|
|
|
10-Q
|
|
001-15787
|
|
10.9
|
|
August 7, 2018
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
10.40
|
|
|
8-K
|
|
001-15787
|
|
10.1
|
|
May 7, 2018
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
10.41
|
|
|
10-Q
|
|
001-15787
|
|
10.1
|
|
November 8, 2018
|
|
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|
|
|
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|
|
|
|
|
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|
|
21.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
31.2
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32.2
|
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
Incorporated By Reference
|
|
|
||||||
Exhibit No.
|
|
Description
|
|
Form
|
|
File Number
|
|
Exhibit
|
|
Filing Date
|
|
Filed or Furnished
Herewith
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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/ Steven A. Kandarian
|
|
|
Name: Steven A. Kandarian
|
|
|
Title: Chairman of the Board, President
and Chief Executive Officer |
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
|
|
|
|
|
/s/ Cheryl W. Grisé
|
|
Director
|
|
February 21, 2019
|
Cheryl W. Grisé
|
|
|
|
|
|
|
|
|
|
/s/ Carlos M. Gutierrez
|
|
Director
|
|
February 21, 2019
|
Carlos M. Gutierrez
|
|
|
|
|
|
|
|
|
|
/s/ Gerald L. Hassell
|
|
Director
|
|
February 21, 2019
|
Gerald L. Hassell
|
|
|
|
|
|
|
|
|
|
/s/ David L. Herzog
|
|
Director
|
|
February 21, 2019
|
David L. Herzog
|
|
|
|
|
|
|
|
|
|
/s/ R. Glenn Hubbard
|
|
Director
|
|
February 21, 2019
|
R. Glenn Hubbard
|
|
|
|
|
|
|
|
|
|
/s/ Edward J. Kelly, III
|
|
Director
|
|
February 21, 2019
|
Edward J. Kelly, III
|
|
|
|
|
|
|
|
|
|
/s/ William E. Kennard
|
|
Director
|
|
February 21, 2019
|
William E. Kennard
|
|
|
|
|
|
|
|
|
|
/s/ James M. Kilts
|
|
Director
|
|
February 21, 2019
|
James M. Kilts
|
|
|
|
|
|
|
|
|
|
/s/ Catherine R. Kinney
|
|
Director
|
|
February 21, 2019
|
Catherine R. Kinney
|
|
|
|
|
|
|
|
|
|
/s/ Diana McKenzie
|
|
Director
|
|
February 21, 2019
|
Diana McKenzie
|
|
|
|
|
|
|
|
|
|
/s/ Denise M. Morrison
|
|
Director
|
|
February 21, 2019
|
Denise M. Morrison
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Steven A. Kandarian
|
|
Chairman of the Board, President and
|
|
February 21, 2019
|
Steven A. Kandarian
|
|
Chief Executive Officer
(Principal Executive Officer) |
|
|
|
|
|
|
|
/s/ John D. McCallion
|
|
Executive Vice President and
|
|
February 21, 2019
|
John D. McCallion
|
|
Chief Financial Officer
(Principal Financial Officer)
|
|
|
|
|
|
|
|
/s/ William C. O’Donnell
|
|
Executive Vice President and
|
|
February 21, 2019
|
William C. O’Donnell
|
|
Chief Accounting Officer
(Principal Accounting Officer)
|
|
|
1.
|
The following shall be added as Section 7.3
|
2.
|
Effective January 1, 2017, Section 4.l shall be revised as follows:
|
I.
|
Section 7.2 shall be replaced with the following, effective January 1, 2019:
|
7.2
|
Unless otherwise determined by the Plan Administrator, a Reallocation Election shall be effective on the date it is received by the Plan Administrator, or on the following day if it is received by the Plan Administrator at a time when the Plan Administrator determines that it is not practical or convenient to the operation of the Plan to apply such Reallocation Election on the date that is received.
|
II.
|
Section 22.33 shall be replaced with the following, effective March 15, 2018:
|
22.33
|
“SIP” shall mean each and all of the MetLife 401(k) Plan, the MetLife Auxiliary Match Plan (and/or any successor plan(s)).
|
III.
|
Section 4.7 shall be replaced with the following, effective January 1, 2019:
|
4.7
|
Effective prior to January 1, 2019, notwithstanding any other provisions of this Plan to the contrary, no Compensation payable to a Participant less than one hundred eighty (180) days after the first day of the second calendar month following a hardship payment to the Participant under SIP or other nonqualified deferred compensation plan in which the individual participates by virtue of employment with any Affiliate shall be deferred under this Plan. Effective as of January 1, 2019, Participants who have received a hardship distribution under SIP or any other deferred compensation arrangement sponsored by an Affiliate shall be eligible to continue deferring Compensation under this Plan without interruption.
|
1.
|
Effective October 15, 2018, Section 1.4.09 is hereby amended it its entirety to read as follows:
|
(a)
|
is employed by the Company or a Subsidiary and compensated in or from the United States; and
|
(b)
|
is a grade 14M, 14A or 14S or any higher grade, as designated by the Company or a Subsidiary; and
|
(c)
|
is either:
|
(d)
|
is not within the definition of “Employee” in the MetLife Plan for Transition Assistance for Grades 13 and Below; and
|
(e)
|
is not a temporary employee; and
|
(f)
|
is not a leased employee within the meaning of Internal Revenue Code §414(n); and
|
(g)
|
is not performing services for the Company or a Subsidiary under an agreement in which such individual acknowledges that he or she is an independent contractor and that he or she is not entitled to participate in the Company’s or a Subsidiary’s employee benefit plans, or under an agreement entered into between the Company or a Subsidiary and some other person (other than a MetLife Enterprise Affiliate), in either case notwithstanding the fact that a regulatory body or court determines that such an individual is a common law employee; and
|
(h)
|
notwithstanding any provision of this
§
1.4.09 or the Plan to the contrary and in accordance with and subject to Section 8.1 of the Plan, “Employee” shall include any employee or sales agent of the MetLife Premier Client Group at Grade 14 or above who becomes a Transferred Employee in accordance with
|
(i)
|
effective October 15, 2018, notwithstanding the foregoing, an Employee is also not any individual who is:
|
(1)
|
treated or classified by the Company or Subsidiary, in their sole and absolute discretion, as an independent contractor and/or not as a common law employee, which may, but need not, be conclusively evidenced by the Company or Subsidiary not withholding federal income and/or employment taxes from the individual’s pay;
|
(2)
|
being paid by any third party pursuant to an agreement or understanding between the Company or Subsidiary and such third party; and/or
|
(3)
|
treated or classified by the Company or Subsidiary as a non-employee, consultant, or a seasonal, occasional, limited duration, leased, provisional, or temporary employee; in each case regardless of any contrary governmental, judicial, arbitral, or other determination that relates to such employment status or federal income and/or employment tax withholding with respect to any period.
|
2.
|
Effective October 1, 2018, Section 6.1 of the Plan is hereby amended in its entirety to read as follows:
|
1.
|
Effective October 15, 2018, Section 1.4.09 is hereby amended it its entirety to read as follows:
|
(a)
|
is employed by the Company or a Subsidiary and compensated in or from the United States; and
|
(b)
|
is a grade 14M, 14A or 14S or any higher grade, as designated by the Company or a Subsidiary; and
|
(c)
|
is either:
|
(d)
|
is not within the definition of “Employee” in the MetLife Plan for Transition Assistance for Grades 13 and Below; and
|
(e)
|
is not a temporary employee; and
|
(f)
|
is not a leased employee within the meaning of Internal Revenue Code §414(n); and
|
(g)
|
is not performing services for the Company or a Subsidiary under an agreement in which such individual acknowledges that he or she is an independent contractor and that he or she is not entitled to participate in the Company’s or a Subsidiary’s employee benefit plans, or under an agreement entered into between the Company or a Subsidiary and some other person (other than a MetLife Enterprise Affiliate), in either case notwithstanding the fact that a regulatory body or court determines that such an individual is a common law employee; and
|
(h)
|
notwithstanding any provision of this §1.4.09 or the Plan to the contrary and in accordance with and subject to Section 8.1 of the Plan, “Employee” shall include any employee or sales agent of the MetLife Premier Client Group at Grade 14 or above who becomes a Transferred Employee in accordance with
|
(i)
|
effective October 15, 2018, notwithstanding the foregoing, an Employee is also not any individual who is:
|
(1)
|
treated or classified by the Company or Subsidiary, in their sole and absolute discretion, as an independent contractor and/or not as a common law employee, which may, but need not, be conclusively evidenced by the Company or Subsidiary not withholding federal income and/or employment taxes from the individual’s pay;
|
(2)
|
being paid by any third party pursuant to an agreement or understanding between the Company or Subsidiary and such third party; and/or
|
(3)
|
treated or classified by the Company or Subsidiary as a non-employee, consultant, or a seasonal, occasional, limited duration, leased, provisional, or temporary employee; in each case regardless of any contrary governmental, judicial, arbitral, or other determination that relates to such employment status or federal income and/or employment tax withholding with respect to any period.
|
2.
|
Effective October 1, 2018, Section 6.1 of the Plan is hereby amended in its entirety to read as follows:
|
1.
|
Section 1.4.09 of the Plan is hereby amended to renumber subsection (n) as subsection (i) to correct any error in numbering.
|
2.
|
Section 1.4.09(b) of the Plan is hereby amended by replacing grade "14I" with "14A."
|
3.
|
The first sentence of subsection 1.4.09(i) of the Plan is hereby amended by replacing the reference to "Section 1.4.10" with a reference to "Section 1.4.09."
|
4.
|
Sections 1.4.16 of the Plan and thereafter are hereby amended to be renumbered as Sections 1.4.15 and thereafter to correct any errors in numbering.
|
5.
|
Section 4.4 of the Plan is hereby amended to be renumbered as Section 4.3 of the Plan to correct any error in numbering.
|
6.
|
Section 8.2(b) of the Plan is hereby amended to replace "MassMutual Transferred Employee" with "CSC Transferred Employee."
|
1.
|
Section 1.4.05(a) is amended by adding a new subsection (6) to read as
|
2.
|
The first paragraph of Section 1.4.11 is amended in its entirety to read
|
1.
|
Section 1.4.02 of the Plan is hereby amended to replace "Metropolitan Life Insurance Company" with "MetLife Group, Inc."
|
2.
|
Section 1.4.19 of the Plan is hereby amended to replace each reference therein to "Metropolitan Life Retirement Plan for United States Employees" with "MetLife Retirement Plan."
|
3.
|
Section l.4.21(c) of the Plan is hereby amended to replace "MetLife Group, Inc." with "Metropolitan Life Insurance Company."
|
4.
|
Section 3.1 of the Plan is hereby amended to replace "Company" with "Employee Benefits Committee of the Company."
|
5.
|
Section 3.2 of the Plan is hereby amended to replace "Company or its designate" with "person designated as Plan Administrator by the Employee Benefits Committee of the Company."
|
6.
|
Section 3.3 of the Plan is hereby amended to replace "Company" with "Employee Benefits Committee of the Company" and to replace "Chief Executive Officer" with "Plan Administrator."
|
1.
150 NORTH RIVERSIDE PE MEMBER, LLC (DE)
|
2.
23
RD
STREET INVESTMENTS, INC. (DE)
|
3.
85 BROAD STREET MEZZANINE LLC (DE)
|
4.
500 GRANT STREET ASSOCIATES LIMITED PARTNERSHIP (CT)
|
5. 500 GRANT STREET GP LLC (DE)
|
6. 1001 PROPERTIES, LLC (DE)
|
7. 1201 TAB MANAGER, LLC (DE)
|
8. 1320 GP LLC (DE)
|
9. 1320 OWNER LP (DE)
|
10. 1320 VENTURE LLC (DE)
|
11.
1925 WJC OWNER, LLC (DE)
|
12.
6104 HOLLYWOOD, LLC (DE)
|
13.
10700 WILSHIRE, LLC (DE)
|
14.
AFP GENESIS ADMINISTRADORA DE FONDOS Y FIDECOMISOS S.A. (ECUADOR)
|
15.
AGENVITA S.R.L. (ITALY)
|
16.
ALICO EUROPEAN HOLDINGS LIMITED (IRELAND)
|
17.
ALICO HELLAS SINGLE MEMBER LIMITED LIABILITY COMPANY (GREECE)
|
18.
ALICO OPERATIONS, LLC (DE)
|
19. ALTERNATIVE FUELS I, LLC (DE)
|
20.
AMERICAN LIFE INSURANCE COMPANY (DE)
|
21. BEST MARKET S.A. (ARGENTINA)
|
22.
BORDERLAND INVESTMENTS LIMITED (DE)
|
23.
BOULEVARD RESIDENTIAL, LLC (DE)
|
24.
BUFORD LOGISTICS CENTER, LLC (DE)
|
25.
CC HOLDCO MANAGER, LLC (DE)
|
26.
CHESTNUT FLATS WIND, LLC (DE)
|
27.
COMMUNICATION ONE KABUSHIKI KAISHA (JAPAN)
|
28.
COMPANIA INVERSORA METLIFE S.A. (ARGENTINA)
|
29.
CONVENT STATION EURO INVESTMENTS FOUR COMPANY (UK)
|
30.
CORPORATE REAL ESTATE HOLDINGS, LLC (DE)
|
31.
COVA LIFE MANAGEMENT COMPANY (DE)
|
32.
CLOSED JOINT-STOCK COMPANY MASTER D (RUSSIA)
|
33.
DELAWARE AMERICAN LIFE INSURANCE COMPANY (DE)
|
34.
ECONOMY FIRE & CASUALTY COMPANY (IL)
|
35.
ECONOMY PREFERRED INSURANCE COMPANY (IL)
|
36.
ECONOMY PREMIER ASSURANCE COMPANY (IL)
|
37.
EL CONQUISTADOR MAH II LLC (DE)
|
38.
ENTRECAP REAL ESTATE II LLC (DE)
|
39. EURO CL INVESTMENTS, LLC (DE)
|
40. EXCELENCIA OPERATIVA Y TECNOLOGICA, S.A de C.V. (MEXICO)
|
41.
FEDERAL FLOOD CERTIFICATION LLC (TX)
|
42.
FIRST AMERICAN – HUNGARIAN INSURANCE AGENCY LIMITED (HUNGARY)
|
43.
FUNDACION METLIFE MEXICO, A.C. (MEXICO)
|
44.
GLOBAL PROPERTIES, INC. (DE)
|
45. HASKELL EAST VILLAGE, LLC (DE)
|
46.
HOUSING FUND MANAGER, LLC (DE)
|
47. HPZ ASSETS LLC (DE)
|
48.
HYATT LEGAL PLANS OF FLORIDA, INC. (FL)
|
49. HYATT LEGAL PLANS, INC. (DE)
|
50.
INTERNATIONAL INVESTMENT HOLDING COMPANY LIMITED (RUSSIA)
|
51.
INTERNATIONAL TECHNICAL AND ADVISORY SERVICES LIMITED (DE)
|
52.
INVERSIONES METLIFE HOLDCO DOS LIMITADA (CHILE)
|
53.
INVERSIONES METLIFE HOLDCO TRES LIMITADA (CHILE)
|
54.
JOINT STOCK COMPANY METLIFE INSURANCE COMPANY (RUSSIA)
|
55.
LHC HOLDINGS (US) LLC (DE)
|
56.
LHCW HOLDINGS (US) LLC (DE)
|
57.
LHCW HOTEL HOLDING LLC (DE)
|
58.
LHCW HOTEL HOLDING (2002) LLC (DE)
|
59.
LHCW HOTEL OPERATING COMPANY (2002) LLC (DE)
|
60.
LOGAN CIRCLE PARTNERS I LLC (PA)
|
61.
LOGAN CIRCLE PARTNERS, L.P. (PA)
|
62.
LOGAN CIRCLE PARTNERS GP, LLC (PA)
|
63.
LOGAN CIRCLE PARTNERS INVESTMENT MANAGEMENT, LLC (DE)
|
64.
LONG ISLAND SOLAR FARM LLC (DE)
|
65.
LUMENLAB MALAYSIA SDN. BHD. (MALAYSIA)
|
66.
MARKETPLACE RESIDENCES, LLC (DE)
|
67. MCPP OWNERS, LLC (DE)
|
68.
MET II OFFICE LLC (FL)
|
69.
MET II OFFICE MEZZANINE, LLC (FL)
|
70.
MET CANADA SOLAR ULC (CANADA)
|
71.
METLIFE 425 MKT MEMBER, LLC (DE)
|
72.
METLIFE 555 12TH MEMBER, LLC (DE)
|
73.
METLIFE 8280 MEMBER, LLC (DE)
|
74.
METLIFE 1007 STEWART, LLC (DE)
|
75. METLIFE 1201 TAB MEMBER, LLC (DE)
|
76.
METLIFE ADMINISTRADORA DE FUNDOS MULTIPATROCINADOS LTDA. (BRAZIL)
|
77.
METLIFE ALTERNATIVES GP, LLC (DE)
|
78.
METLIFE ASIA HOLDING COMPANY PTE. LTD. (SINGAPORE)
|
79.
METLIFE ASIA LIMITED (HONG KONG)
|
80.
METLIFE ASSET MANAGEMENT CORP. (JAPAN)
|
81.
METLIFE ASSIGNMENT COMPANY, INC. (DE)
|
82.
METLIFE AUTO & HOME INSURANCE AGENCY, INC. (RI)
|
83.
METLIFE BL FEEDER (CAYMAN) LP (CAYMAN ISLANDS)
|
84.
METLIFE BL FEEDER, LP (DE)
|
85.
METLIFE BORO STATION MEMBER, LLC (DE)
|
86.
METLIFE CABO HILTON MEMBER, LLC (DE)
|
87.
METLIFE CAMINO RAMON MEMBER, LLC (DE)
|
88.
METLIFE CANADIAN PROPERTY VENTURES, LLC (NY)
|
89. METLIFE CAPITAL CREDIT L.P. (DE)
|
90. METLIFE CAPITAL TRUST IV (DE)
|
91.
METLIFE CAPITAL, LIMITED PARTNERSHIP (DE)
|
92.
METLIFE CB W/A, LLC (DE)
|
93. METLIFE CC MEMBER, LLC (DE)
|
94. METLIFE CHILE ADMINISTRADORA DE MUTUOS HIPOTECARIOS S.A. (CHILE)
|
95. METLIFE CHILE INVERSIONES LIMITADA (CHILE)
|
96. METLIFE CHILE SEGUROS DE VIDA S.A. (CHILE)
|
97. METLIFE CHILE SEGUROS GENERALES S.A. (CHILE)
|
98. METLIFE CHINO MEMBER, LLC (DE)
|
99. METLIFE COLOMBIA SEGUROS de VIDA S.A. (COLOMBIA)
|
100.
METLIFE CONSUMER SERVICES, INC. (DE)
|
101.
METLIFE COMMERCIAL MORTGAGE INCOME FUND GP, LLC (DE)
|
102.
METLIFE CONSQUARE MEMBER, LLC (DE)
|
103.
METLIFE CORE PROPERTY FUND GP, LLC (DE)
|
104.
METLIFE CORE PROPERTY TRS, LLC (DE)
|
105.
METLIFE CREDIT CORP.(DE)
|
106.
METLIFE DIGITAL VENTURES, INC.
|
107.
METLIFE EMEKLILIK VE HAYAT A.S. (TURKEY)
|
108.
METLIFE EU HOLDING COMPANY LIMITED (IRELAND)
|
109.
METLIFE EUROPE INSURANCE d.a.c.(IRELAND)
|
110.
METLIFE EUROPE d.a.c. (IRELAND)
|
111.
METLIFE EUROPE SERVICES LIMITED (IRELAND)
|
112.
METLIFE EUROPEAN HOLDINGS, LLC. (DE)
|
113.
METLIFE FINANCIAL SERVICES, CO., LTD (SOUTH KOREA)
|
114.
METLIFE FM HOTEL MEMBER, LLC (DE)
|
115.
METLIFE FUNDING, INC. (DE)
|
116.
METLIFE GENERAL INSURANCE LIMITED (AUSTRALIA)
|
117.
METLIFE GLOBAL, INC. (DE)
|
118.
METLIFE GLOBAL BENEFITS, LTD. (CAYMAN ISLANDS)
|
119.
METLIFE GLOBAL HOLDING COMPANY I GmbH (SWISS I) (SWITZERLAND)
|
120.
METLIFE GLOBAL HOLDING COMPANY II GmbH (SWISS II) (SWITZERLAND)
|
121.
METLIFE GLOBAL HOLDINGS CORPORATION S.A. De C.V.(MEXICO)
|
122.
METLIFE GLOBAL INFRASTRUCTURE LUX GP, S. À.R.L. (LUXEMBOURG)
|
123.
METLIFE GLOBAL OPERATIONS SUPPORT CENTER PRIVATE LIMITED (INDIA)
|
124.
METLIFE GROUP, INC. (NY)
|
125.
METLIFE HCMJV 1 GP, LLC (DE)
|
126.
METLIFE HEALTH PLANS, INC. (DE)
|
127.
METLIFE HOLDINGS, INC. (DE)
|
128.
METLIFE HOME LOANS, LLC (DE)
|
129.
METLIFE INNOVATION CENTRE LIMITED (IRELAND)
|
130.
METLIFE INNOVATION CENTRE PTE. LTD. (SINGAPORE)
|
131.
METLIFE INSURANCE AND INVESTMENT TRUST (AUSTRALIA)
|
132.
METLIFE INSURANCE BROKERAGE, INC. (NY)
|
133.
METLIFE INSURANCE K.K. (JAPAN)
|
134.
METLIFE INSURANCE LIMITED (AUSTRALIA)
|
135.
METLIFE INTERNATIONAL HF PARTNERS, LP (CAYMAN ISLANDS)
|
136.
METLIFE INTERNATIONAL HOLDINGS, LLC (DE)
|
137.
METLIFE INTERNATIONAL LIMITED, LLC (DE)
|
138.
METLIFE INTERNATIONAL PE FUND I, LP (CAYMAN ISLANDS)
|
139.
METLIFE INTERNATIONAL PE FUND II, LP (CAYMAN ISLANDS)
|
140.
METLIFE INTERNATIONAL PE FUND III, LP (CAYMAN ISLANDS)
|
141.
METLIFE INTERNATIONAL PE FUND IV, LP (CAYMAN ISLANDS)
|
142.
METLIFE INTERNATIONAL PE FUND V, LP (CAYMAN ISLANDS)
|
143.
METLIFE INTERNATIONAL PE FUND VI, LP (CAYMAN ISLANDS)
|
144.
METLIFE INVESTMENT ADVISORS, LLC (DE)
|
145.
METLIFE INVESTMENT MANAGEMENT HOLDINGS (IRELAND) LIMITED (IRELAND)
|
146.
METLIFE INVESTMENTS ASIA LIMITED (HONG KONG)
|
147.
METLIFE INVESTMENTS LIMITED (UNITED KINGDOM)
|
148.
METLIFE INVESTMENT MANAGEMENT HOLDINGS, LLC (DE)
|
149.
METLIFE INVESTMENT MANAGEMENT LIMITED (UNITED KINGDOM)
|
150.
METLIFE INVESTMENTS PTY LIMITED (AUSTRALIA)
|
151.
METLIFE INVESTMENTS SECURITIES, LLC (DE)
|
152.
METLIFE INVESTORS DISTRIBUTION COMPANY (MO)
|
153.
METLIFE INVESTORS GROUP, LLC (DE)
|
154.
METLIFE IRELAND HOLDINGS ONE LIMITED (IRELAND)
|
155.
METLIFE IRELAND TREASURY D.A.C. (IRELAND)
|
156.
METLIFE LATIN AMERICA ASESORIAS E INVERSIONES LIMITADA (CHILE)
|
157.
METLIFE LHH MEMBER, LLC (DE)
|
158.
METLIFE LIFE INSURANCE S.A. (GREECE)
|
159.
METLIFE LIMITED (HONG KONG)
|
160.
METLIFE LOAN ASSET MANAGEMENT LLC (DE)
|
161.
METLIFE MALL VENTURES LIMITED PARTNERSHIP (DE)
|
162.
METLIFE MAS, S.A. DE C.V. (MEXICO)
|
163.
METLIFE MEMBER SOLAIRE, LLC (DE)
|
164.
METLIFE MEXICO HOLDINGS, S. DE R.L. DE C.V. (MEXICO)
|
165.
METLIFE MEXICO S.A. (MEXICO)
|
166.
METLIFE MEXICO SERVICIOS, S.A. DE C.V. (MEXICO)
|
167.
METLIFE MIDDLE MARKET PRIVATE DEBT GP, LLC (DE)
|
168.
METLIFE MIDDLE MARKET PRIVATE DEBT PARALLEL GP, LLC (DE)
|
169.
METLIFE MIDDLE MARK PRIVATE DEBT PARALLEL, FUND, LP (CAYMAN ISLANDS)
|
170.
METLIFE OBSMEMBER, LLC (DE)
|
171.
METLIFE OFC MEMBER, LLC (DE)
|
172.
METLIFE ONTARIO STREET MEMBR, LLC (DE)
|
173.
METLIFE PARK TOWER MEMBER, LLC (DE)
|
174.
METLIFE PENSIONES MEXICO S.A. (MEXICO)
|
175.
METLIFE PENSION TRUSTEES LIMITED (UK)
|
176.
METLIFE PLANOS ODONTOLOGICOS LTDA. (BRAZIL)
|
177.
METLIFE POWSZECHNE TOWARTZYSTWO EMERYTALNE S.A. (POLAND)
|
178.
METLIFE PRIVATE EQUITY HOLDINGS, LLC (DE)
|
179.
METLIFE PROPERTIES VENTURES, LLC (DE)
|
180.
METLIFE PROPERTY VENTURES CANADA ULC (CANADA)
|
181.
METLIFE REAL ESTATE LENDING LLC (DE)
|
182.
METLIFE REAL ESTATE LENDING MANAGER LLC (DE)
|
183.
METLIFE REINSURANCE COMPANY OF BERMUDA LTD. (BERMUDA)
|
184.
METLIFE REINSURANCE COMPANY OF CHARLESTON (SC)
|
185.
METLIFE REINSURANCE COMPANY OF VERMONT (VT)
|
186.
METLIFE RETIREMENT SERVICES LLC (NJ)
|
187.
METLIFE SAENGMYOUNG INSURANCE COMPANY LTD. (SOUTH KOREA)- (also known as MetLife Insurance Company of Korea Limited)
|
188.
METLIFE SECURITIZATION DEPOSITOR, LLC (DE)
|
189.
METLIFE SEGUROS DE RETIRO S.A. (ARGENTINA)
|
190.
METLIFE SEGUROS S.A. (URUGUAY)
|
191.
METLIFE SEGUROS S.A. (ARGENTINA)
|
192.
METLIFE SERVICES AND SOLUTIONS, LLC (DE)
|
193.
METLIFE SERVICES CYPRUS LIMITED (CYPRUS)
|
194.
METLIFE SERVICES EAST PRIVATE LIMITED (INDIA)
|
195.
METLIFE SERVICES EEIG (IRELAND)
|
196.
METLIFE SERVICES EOOD (BULGARIA)
|
197.
METLIFE SERVICES, SOCIEDAD LIMITADA (SPAIN)
|
198.
METLIFE SERVICES SP Z.O.O (POLAND)
|
199.
METLIFE SERVICIOS S.A. (ARGENTINA)
|
200.
METLIFE SLOVAKIA S.R.O.(SLOVAKIA)
|
201.
METLIFE SOLUTIONS PTE. LTD. (SINGAPORE)
|
202.
METLIFE SOLUTIONS S.A.S. (FRANCE)
|
203.
METLIFE SP HOLDINGS, LLC (DE)
|
204.
METLIFE SYNDICATED BANK LOAN FUND, SCSP (LUXEMBOURG)
|
205.
METLIFE SYNDICATED BANK LOAN LUX GP, S.À.R.L. (LUXEMBOURG)
|
206.
METLIFE THR INVESTOR, LLC (DE)
|
207.
METLIFE TOWARZYSTWO FUNDUSZY INWESTYCYJNYCH S.A. (POLAND)
|
208.
METLIFE TOWARZYSTWO UBEZPIECZEN NA ZYCIE I REASEKURACJI S.A. (POLAND)
|
209.
METLIFE TOWER RESOURCES GROUP, INC. (DE)
|
210.
METLIFE TREAT TOWERS MEMBER, LLC (DE)
|
211.
METLIFE WORLDWIDE HOLDINGS, LLC (DE)
|
212.
METROPOLITAN CASUALTY INSURANCE COMPANY (RI)
|
213.
METROPOLITAN DIRECT PROPERTY AND CASUALTY INSURANCE COMPANY (RI)
|
214.
METROPOLITAN GENERAL INSURANCE COMPANY (RI)
|
215.
METROPOLITAN GLOBAL MANAGEMENT, LLC. (DE/ IRELAND)
|
216.
METROPOLITAN GROUP PROPERTY AND CASUALTY INSURANCE COMPANY (RI)
|
217.
METROPOLITAN LIFE INSURANCE COMPANY (NY)
|
218.
METROPOLITAN LIFE INSURANCE COMPANY OF HONG KONG LIMITED (HONG KONG)
|
219.
METROPOLITAN LIFE SEGUROS E PREVIDÊNCIA PRIVADA S.A. (BRAZIL)
|
220.
METROPOLITAN LIFE SOCIETATE de ADMINISTRARE a UNUI FOND de PENSII ADMINISTRAT PRIVAT S.A. (ROMANIA)
|
221.
METROPOLITAN LLOYDS, INC. (TX)
|
222.
METROPOLITAN PROPERTY AND CASUALTY INSURANCE COMPANY (RI)
|
223.
METROPOLITAN TOWER LIFE INSURANCE COMPANY (NE)
|
224.
METROPOLITAN TOWER REALTY COMPANY, INC. (DE)
|
225.
MEX DF PROPERTIES, LLC (DE)
|
226.
MIDTOWN HEIGHTS, LLC (DE)
|
227.
MIM PROPERTY MANAGEMENT, LLC (DE)
|
228.
MIM PROPERTY MANAGEMENT OF GEORGIA 1, LLC (DE)
|
229.
MISSOURI REINSURANCE, INC. (CAYMAN ISLANDS)
|
230.
ML-AI METLIFE MEMBER 1, LLC (DE)
|
231.
ML-AI METLIFE MEMBER 2, LLC (DE)
|
232.
ML-AI METLIFE MEMBER 3, LLC (DE)
|
233.
ML-AI METLIFE MEMBER 4, LLC (DE)
|
234.
ML CERRITOS TC MEMBER, LLC (DE)
|
235.
ML SLOAN’S LAKE MEMEBR, LLC (DE)
|
236.
ML SOUTHLANDS MEMBER, LLC (DE)
|
237.
ML VENTURE 1 MANAGER, S. DE R. L. DE C.V. (MEXICO)
|
238.
MLA COMERCIAL, S.A. DE C.V. (MEXICO)
|
239.
MLA SERVICIOS, S.A. DE C.V. (MEXICO)
|
240.
MLIA MANAGER I, LLC (DE)
|
241.
MLIA SBAF MANAGER, LLC (DE)
|
242.
ML BRIDGESIDE APARTMENTS LLC (DE)
|
243.
ML CAPACITACION COMERCIAL S.A. DE C.V. (MEXICO)
|
244.
ML DOLPHIN GP, LLC (DE)
|
245.
ML DOLPHIN MEZZ, LLC (DE)
|
246.
ML MILILANI MEMBER, LLC (DE)
|
247.
ML NEW RIVER VILLAGE III, LLC (DE)
|
248.
ML SENTINEL SQUARE MEMBER, LLC (DE)
|
249.
ML SOUTHMORE, LLC (DE)
|
250.
MLIC ASSET HOLDINGS II LLC (DE)
|
251.
MLIC ASSET HOLDINGS LLC (DE)
|
252.
MLIC CB HOLDINGS LLC (DE)
|
253.
ML SWAN GP, LLC (DE)
|
254.
ML SWAN MEZZ, LLC (DE)
|
255.
ML TERRACES, LLC (DE)
|
256.
MPLIFE, S. DE R.L. DE C.V
|
257.
MM GLOBAL OPERATIONS SUPPORT CENTER, S.A. DE C.V. (MEXICO)
|
258.
MMP OWNERS, LLC (DE)
|
259.
MSV IRVINE PROPERTY, LLC (DE)
|
260.
MTC FUND I, LLC (DE)
|
261.
MTC FUND II, LLC (DE)
|
262.
MTC FUND III, LLC (DE)
|
263.
MTL LEASING, LLC (DE)
|
264.
NATILOPORTEM HOLDINGS, LLC (DE)
|
265.
NEWBURY INSURANCE COMPANY, LIMITED (DE)
|
266.
OCONEE GOLF COMPANY, LLC (DE)
|
267.
OCONEE HOTEL COMPANY, LLC (DE)
|
268.
OCONEE LAND COMPANY, LLC (DE)
|
269.
OCONEE LAND DEVELOPMENT COMPANY, LLC (DE)
|
270.
OCONEE MARINA COMPANY, LLC (DE)
|
271.
OMI MLIC INVESTMENTS LIMITED (CAYMAN ISLANDS)
|
272.
PARK TOWER JV MEMBER, LLC (DE)
|
273.
PARK TOWER REIT, INC. (DE)
|
274.
PARK TWENTY THREE INVESTMENTS COMPANY (UNITED KINGDOM)
|
275.
PJSC METLIFE (UKRAINE)
|
276.
PLAZA DRIVE PROPERTIES LLC (DE)
|
277.
PREFCO DIX-HUIT LLC (CT)
|
278.
PREFCO FOURTEEN LIMITED PARTNERSHIP (CT)
|
279.
PREFCO IX REALTY LLC (CT)
|
280.
PREFCO TEN LIMITED PARTNERSHIP (CT)
|
281.
PREFCO TWENTY LIMITED PARTNERSHIP (CT)
|
282.
PREFCO VINGT LLC (CT)
|
283.
PREFCO X HOLDINGS LLC (CT)
|
284.
PREFCO XIV HOLDINGS LLC (CT)
|
285.
PROVIDA INTERNACIONAL S.A. (CHILE)
|
286.
SAFEGUARD HEALTH PLANS, INC. (CA)
|
287.
SAFEGUARD HEALTH PLANS, INC. (FL)
|
288.
SAFEGUARD HEALTH PLANS, INC. (TX)
|
289.
SAFEGUARD HEALTH ENTERPRISES, INC. (DE)
|
290.
SAFEHEALTH LIFE INSURANCE COMPANY (CA)
|
291.
SANDPIPER COVE ASSOCIATES, LLC (DE)
|
292.
SANDPIPER COVE ASSOCIATES II, LLC (DE)
|
293.
SOUTHCREEK INDUSTRIAL HOLDINGS, LLC (DE)
|
294.
ST. JAMES FLEET INVESTMENTS TWO LIMITED (CAYMAN ISLANDS)
|
295.
THE BUILDING AT 575 FIFTH AVENUE MEZZANINE LLC (DE)
|
296.
THE BUILDING AT 575 FIFTH RETAIL HOLDING LLC (DE)
|
297.
THE BUILDING AT 575 FIFTH RETAIL OWNER (DE)
|
298.
THE DIRECT CALL CENTRE PTY LIMITED (AUSTRALIA)
|
299.
TRANSMOUNTAIN LAND & LIVESTOCK COMPANY (MT)
|
300.
VIRIDIAN MIRACLE MILE, LLC (DE)
|
301.
WFP 1000 HOLDING COMPANY GP, LLC (DE)
|
302.
WHITE OAK ROYALTY COMPANY (OK)
|
303.
60 11
th
STREET, LLC (DE) 28.91%
|
304.
100 CONGRESS OWNER, LLC (DE) 15.9005%
|
305.
100 CONGRESS REIT , LLC (DE) 15.9005%
|
306.
100 CONGRESS VENTURE, LLC (DE) 15.9005%
|
307.
249 INDUSTRIAL BUSINESS PARK, LLC (DE) 27.4645%
|
308.
249 INDUSTRIAL BUSINESS PARK VENTURE, LLC (DE) 27.4645%
|
309.
AFP PROVIDA S.A. (CHILE) 94.7%
|
310.
ALICO PROPERTIES, INC. (DE) 51%
|
311.
ALTA BURNSIDE, LLC (DE) 26.74175%
|
312.
ALTA BURNSIDE VENTURE, LLC (DE) 26.74175%
|
313.
AMMETLIFE INSURANCE BERHAD (MALAYSIA) 50.000001%
|
314.
AMMETLIFE TAKAFUL BERHAD (MALAYSIA) 49.9999997%
|
315.
BIDV METLIFE LIFE INSURANCE LIMITED LIABILITY COMPANY (VIETNAM) 60%
|
316.
BLOCK 23 RESIDENTIAL INVESTORS, LLC (DE) 26.019%
|
317.
BUFORD LOGISTICS CENTER 2 VENTURE, LLC (DE) 27.4645%
|
318.
BUFORD LOGISTICS CENTER BLDG A VENTURE, LLC (DE) 27.4645%
|
319.
DENVER PAVILIONS OWNERCO, LLC (DE) 23.128%
|
320.
DENVER PAVILIONS VENTURE, LLC (DE) 23.128%
|
321.
DES MOINES CREEK BUSINESS PARK PHASE II, LLC (DE) 27.4645%
|
322.
DMCBP PHASE II VENTURE, LLC (DE) 27.4645%
|
323.
FIFE ENTERPRISE CENTER VENTURE, LLC (DE) 28.91%
|
324.
HELLENIC ALICO LIFE INSURANCE COMPANY, LTD. (CYPRUS) 27.5%
|
325.
HIGH STREET SEVENTH AND OSBORN APARTMENTS, LLC (DE) 26.74175%
|
326.
MAGNOLIA PARK GREENVILLE, LLC (DE) 26.019%
|
327.
MAGNOLIA PARK GREENVILLE VENTURE, LLC (DE) 26.019%
|
328.
MAXIS GBN S.A.S. (FRANCE) 50%
|
329.
MCMIF HOLDCO I, LLC (DE) 34.13%
|
330.
MCMIF HOLDCO II, LLC (DE) 34.13%
|
331.
MCP – ENGLISH VILLAGE, LLC (DE) 28.91%
|
332.
MCP 2 AMES, LLC (DE) 28.91%
|
333.
MCP 2 AMES ONE, LLC (DE) 28.91%
|
334.
MCP 2 AMES OWNER, LLC (DE) 25.7299%
|
335.
MCP 2 AMES TWO, LLC (DE) 28.91%
|
336.
MCP 7 RIVERWAY, LLC (DE) 28.91%
|
337.
MCP 60 11
TH
STREET MEMBER, LLC (DE) 28.91%
|
338.
MCP 100 CONGRESS MEMBER, LLC (DE) 15.9005%
|
339.
MCP 249 INDUSTRIAL BUSINESS PARK MEMBER, LLC (DE) 28.91%
|
340.
MCP 350 ROHLWING, LLC (DE) 28.91%
|
341.
MCP 550 WEST WASHINGTON, LLC (DE) 28.91%
|
342.
MCP 1900 MCKINNEY, LLC (DE) 28.91%
|
343.
MCP 22745 &22755 RELOCATION DRIVE, LLC (DE) 28.91%
|
344.
MCP 3040 POST OAK, LLC (DE) 28.91%
|
345.
MCP 4600 SOUTH SYRACUSE, LLC (DE) 28.91%
|
346.
MCP 9020 MURPHY ROAD, LLC (DE) 28.91%
|
347.
MCP ALLEY24 EAST, LLC (DE) 28.91%
|
348.
MCP ASHTON SOUTH END, LLC (DE) 28.91%
|
349.
MCP ATLANTA GATEWAY, LLC (DE) 28.91%
|
350.
MCP BLOCK 23 MEMBER, LLC (DE) 28.91%
|
351.
MCP BUFORD LOGISTICS CENTER 2 MEMBER, LLC (DE) 28.91%
|
352.
MCP BUFORD LOGISTICS CENTER BLDG B, LLC (DE) 28.91%
|
353.
MCP BURNSIDE MEMBER, LLC (DE) 28.91%
|
354.
MCP DMCBP PHASE II MEMBER, LLC (DE) 27.4645%
|
355.
MCP DENVER PAVILIONS MEMBER, LLC (DE) 28.91%
|
356.
MCP ENV CHICAGO, LLC (DE) 28.91%
|
357.
MCP FIFE ENTERPRISE C, LLC (DE) 28.91%
|
358.
MCP FIFE ENTERPRISE MEMBER, LLC (DE) 28.91%
|
359.
MCP HIGHLAND PARK LENDER, LLC (DE) 28.91%
|
360.
MCP LODGE AT LAKECREST, LLC (DE) 28.91%
|
361.
MCP MA PROPERTY REIT, LLC (DE) 28.91%
|
362.
MCP MAGNOLIA PARK MEMBER, LLC (DE) 28.91%
|
363.
MCP MAIN STREET VILLAGE, LLC (DE) 28.91%
|
364.
MCP MOUNTAIN TECHNOLOGY CENTER MEMBER TRS, LLC (DE) 28.91%
|
365.
MCP NORTHYARDS HOLDCO, LLC (DE) 28.91%
|
366.
MCP NORTHYARDS OWNER, LLC (DE) 28.91%
|
367.
MCP NORTHYARDS MASTER LESSEE, LLC (DE) 28.91%
|
368.
MCP ONE WESTSIDE, LLC (DE) 28.91%
|
369.
MCP ONYX, LLC (DE) 28.91%
|
370.
MCP PARAGON POINT, LLC (DE) 28.91%
|
371.
MCP PLAZA AT LEGACY, LLC (DE) 28.91%
|
372.
MCP PROPERTY MANAGEMENT, LLC (DE) 28.91%
|
373.
MCP SEATTLE GATEWAY I MEMBER, LLC (DE) 28.91%
|
374.
MCP SEATTLE GATEWAY II MEMBER, LLC (DE) 28.91%
|
375.
MCP SEVENTH AND OSBORNE MF MEMBER, LLC (DE) 28.91%
|
376.
MCP SEVENTH AND OSBORNE RETAIL MEMBER, LLC (DE) 28.91%
|
377.
MCP SOCAL INDUSTRIAL – ANAHEIM, LLC (DE) 28.91%
|
378.
MCP SOCAL INDUSTRIAL – BERNARDO, LLC (DE) 28.91%
|
379.
MCP SOCAL INDUSTRIAL – CANYON, LLC (DE) 28.91%
|
380.
MCP SOCAL INDUSTRIAL – CONCOURSE, LLC (DE) 28.91%
|
381.
MCP SOCAL INDUSTRIAL – FULLERTON, LLC (DE) 28.91%
|
382.
MCP SOCAL INDUSTRIAL – KELLWOOD, LLC (DE) 28.91%
|
383.
MCP SOCAL INDUSTRIAL – LAX, LLC (DE) 28.91%
|
384.
MCP SOCAL INDUSTRIAL – LOKER, LLC (DE) 28.91%
|
385.
MCP SOCAL INDUSTRIAL – ONTARIO, LLC (DE) 28.91%
|
386.
MCP SOCAL INDUSTRIAL – REDONDO, LLC (DE) 28.91%
|
387.
MCP SOCAL INDUSTRIAL – SPRINGDALE, LLC (DE) 28.91%
|
388.
MCP THE PALMS AT DORAL, LLC (DE) 28.91%
|
389.
MCP TRIMBLE CAMPUS, LLC (DE) 28.91%
|
390.
MCP UNION ROW, LLC (DE) 28.91%
|
391.
MCP VALLEY FORGE, LLC (DE) 28.91%
|
392.
MCP VALLEY FORGE, ONE LLC (DE) 28.91%
|
393.
MCP VALLEY FORGE OWNER, LLC (DE) 25.7299%
|
394.
MCP VALLEY FORGE TWO, LLC (DE) 28.91%
|
395.
MCP VOA HOLDINGS, LLC (DE) 28.91%
|
396.
MCP VOA I & III, LLC (DE) 28.91%
|
397.
MCP VOA II, LLC (DE) 28.91%
|
398.
MCP WATERFORD ATRIUM, LLC (DE) 28.91%
|
399.
MCP WELLINGTON, LLC (DE) 28.91%
|
400.
MCP WEST BROAD MARKETPLACE, LLC (DE) 28.91%
|
401.
MCPF ACQUISITION, LLC (DE) 28.91%
|
402.
MCPF – NEEDHAM, LLC (DE) 28.91%
|
403.
METLIFE, LIFE INSURANCE COMPANY (EGYPT) 84.125%
|
404.
METLIFE AMERICAN INTERNATIONAL GROUP AND ARAB NATIONAL BANK COOPERATIVE INSURANCE COMPANY (SAUDI ARABIA) 30%
|
405.
METLIFE COMMERCIAL MORTGAGE INCOME FUND, LP (DE) 29.2%
|
406.
METLIFE COMMERCIAL MORTGAGE ORIGINATOR, LLC (DE) 29.2%
|
407.
METLIFE COMMERCIAL MORTGAGE REIT, LLC (DE) 29.2%
|
408.
METLIFE CORE PROPERTY FUND, LP (DE) 34.13%
|
409.
METLIFE CORE PROPERTY HOLDINGS, LLC (DE) 34.13%
|
410.
METLIFE CORE PROPERTY REIT, LLC (DE) 34.13%
|
411.
METLIFE MIDDLE MARKET PRIVATE DEBT FUND, LP (DE) 63%
|
412.
METLIFE MUTUAL FUND COMPANY (GREECE) 90%
|
413.
METROPOLITAN LLOYDS INSURANCE COMPANY OF TEXAS (TX)
|
414.
MOUNTAIN TECHNOLOGY CENTER VENTURE, LLC (DE) 27.4645%
|
415.
MOUNTAIN TECHNOLOGY CENTER VENTURE SUB A, LLC (DE) 27.4645%
|
416.
MOUNTAIN TECHNOLOGY CENTER VENTURE SUB B, LLC (DE) 27.4645%
|
417.
MOUNTAIN TECHNOLOGY CENTER VENTURE SUB C, LLC (DE) 27.4645%
|
418.
MOUNTAIN TECHNOLOGY CENTER VENTURE SUB D, LLC (DE) 27.4645%
|
419.
MOUNTAIN TECHNOLOGY CENTER VENTURE SUB E, LLC (DE) 27.4645%
|
420.
PNB METLIFE INDIA INSURANCE COMPANY LIMITED (INDIA) 26%
|
421.
SINO-US UNITED METLIFE INSURANCE CO., LTD. (CHINA) 50%
|
422.
SEATTLE GATEWAY I MEMBER, LLC (DE) 27.4645%
|
423.
SEATTLE GATEWAY II MEMBER, LLC (DE) 27.4645%
|
424.
SEATTLE GATEWAY INDUSTRIAL I, LLC (DE) 27.4645%
|
425.
SEATTLE GATEWAY INDUSTRIAL II, LLC (DE) 27.4645%
|
426.
SEATTLE GATEWAY II VENTURE, LLC (DE) 27.4645%
|
427.
SEVENTH AND OSBORN MF VENTURE, LLC (DE) 26.74175%
|
428.
SEVENTH AND OSBORN RETAIL, LLC (DE) 26.74175%
|
429.
SEVENTH AND OSBORN RETAIL VENTURE, LLC (DE) 26.74175%
|
430.
SLR BLOCK 23 RESIDENTIAL OWNER, LLC (DE) 26.019%
|
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 D. McCallion
|
|
John D. 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 D. McCallion
|
|
John D. McCallion
|
|
Executive Vice President and
Chief Financial Officer |