Segment Information

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Information

2. Segment Information

MetLife is organized into six segments, reflecting three broad geographic regions: Retail; Group, Voluntary & Worksite Benefits; Corporate Benefit Funding; and Latin America (collectively, the “Americas”); Asia; and EMEA. In addition, the Company reports certain of its results of operations in Corporate & Other, which includes MetLife Home Loans LLC (“MLHL”), the surviving, non-bank entity of the merger of MetLife Bank, National Association (“MetLife Bank”) with and into MLHL (see Note 3) and other business activities.

Americas

The Americas consists of the following segments:

Retail

The Retail segment offers a broad range of protection products and services and a variety of annuities to individuals and employees of corporations and other institutions, and is organized into two businesses: Life & Other and Annuities. Life & Other insurance products and services include variable life, universal life, term life and whole life products. Additionally, through broker-dealer affiliates, the Company offers a full range of mutual funds and other securities products. Life & Other products and services also include individual disability income products and personal lines property & casualty insurance, including private passenger automobile, homeowners and personal excess liability insurance. Annuities includes a variety of variable and fixed annuities which provide for both asset accumulation and asset distribution needs.

Group, Voluntary & Worksite Benefits

The Group, Voluntary & Worksite Benefits segment offers a broad range of protection products and services to individuals and corporations, as well as other institutions and their respective employees, and is organized into two businesses: Group and Voluntary & Worksite. Group insurance products and services include variable life, universal life and term life products. Group insurance products and services also include dental, group short- and long-term disability and accidental death & dismemberment coverages. The Voluntary & Worksite business includes personal lines property & casualty insurance, including private passenger automobile, homeowners and personal excess liability insurance offered to employees on a voluntary basis. The Voluntary & Worksite business also includes long-term care, prepaid legal plans and critical illness products.

Corporate Benefit Funding

The Corporate Benefit Funding segment offers a broad range of annuity and investment products, including guaranteed interest products and other stable value products, income annuities, and separate account contracts for the investment management of defined benefit and defined contribution plan assets. This segment also includes certain products to fund postretirement benefits and company-, bank- or trust-owned life insurance used to finance non-qualified benefit programs for executives.

Latin America

The Latin America segment offers a broad range of products to both individuals and corporations, as well as other institutions and their respective employees, which include life insurance, accident and health insurance, group medical, dental, credit insurance, endowment and retirement & savings products written in Latin America. Starting in the first quarter of 2013, the Latin America segment includes U.S. sponsored direct business, comprised of group products sold through sponsoring organizations and affinity groups. Products included are life, dental, group short- and long-term disability, accidental death & dismemberment coverages, property & casualty and critical illness.

Asia

The Asia segment offers a broad range of products to both individuals and corporations, as well as other institutions and their respective employees, which include whole life, term life, variable life, universal life, accident and health insurance, fixed and variable annuities and endowment products.

EMEA

The EMEA segment offers a broad range of products to both individuals and corporations, as well as other institutions and their respective employees, which include life insurance, accident and health insurance, credit insurance, annuities, endowment and retirement & savings products.

Corporate & Other

Corporate & Other contains the excess capital not allocated to the segments, external integration costs, internal resource costs for associates committed to acquisitions, enterprise-wide strategic initiative restructuring charges, and various start-up and certain run-off businesses. Start-up businesses include expatriate benefits insurance, as well as direct and digital marketing products. Corporate & Other also includes assumed reinsurance of certain variable annuity products from the Company’s former operating joint venture in Japan. Under this in-force reinsurance agreement, the Company reinsures living and death benefit guarantees issued in connection with variable annuity products. Additionally, Corporate & Other includes interest expense related to the majority of the Company’s outstanding debt and expenses associated with certain legal proceedings and income tax audit issues. Corporate & Other also includes the elimination of intersegment amounts, which generally relate to intersegment loans, which bear interest rates commensurate with related borrowings.

Financial Measures and Segment Accounting Policies

Operating earnings is the measure of segment profit or loss the Company uses to evaluate segment performance and allocate resources. Consistent with GAAP guidance for segment reporting, operating earnings is the Company’s measure of segment performance and is reported below. Operating earnings should not be viewed as a substitute for income (loss) from continuing operations, net of income tax. The Company believes the presentation of operating earnings as the Company measures it for management purposes enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business.

Operating earnings is defined as operating revenues less operating expenses, both net of income tax.

Operating revenues and operating expenses exclude results of discontinued operations and other businesses that have been or will be sold or exited by MetLife. Operating revenues also excludes net investment gains (losses) and net derivative gains (losses). Operating expenses also excludes goodwill impairments.

The following additional adjustments are made to GAAP revenues, in the line items indicated, in calculating operating revenues:

• Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity guaranteed minimum income benefits (“GMIBs”) fees (“GMIB Fees”);

• Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment, (ii) includes income from discontinued real estate operations, (iii) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iv) excludes certain amounts related to contractholder-directed unit-linked investments, and (v) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and

• Other revenues are adjusted for settlements of foreign currency earnings hedges.

The following additional adjustments are made to GAAP expenses, in the line items indicated, in calculating operating expenses:

• 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, (iii) benefits and hedging costs related to GMIBs (“GMIB Costs”), and (iv) market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”);

• Interest credited to policyholder account balances includes adjustments for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of policyholder account balances (“PABs”) but do not qualify for hedge accounting treatment and excludes amounts related to net investment income earned on contractholder-directed unit-linked investments;

• Amortization of deferred policy acquisition costs (“DAC”) and value of business acquired (“VOBA”) excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB Fees and GMIB Costs, and (iii) Market Value Adjustments;

• Amortization of negative VOBA excludes amounts related to Market Value Adjustments;

• Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and

• Other expenses excludes costs related to: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements, and (iii) acquisition and integration costs.

Operating earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for during the measurement period under GAAP business combination accounting guidance.

Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for the three months and nine months endedSeptember 30, 2013 and 2012. The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for operating earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below.

Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. The economic capital model accounts for the unique and specific nature of the risks inherent in the Company’s business.

The Company’s economic capital model aligns segment allocated equity with emerging standards and consistent risk principles. The model applies statistical based risk evaluation principles to the material risks to which the Company is exposed. These consistent risk principles include calibrating required economic capital shock factors to a specific confidence level and time horizon and applying an industry standard method for the inclusion of diversification benefits among risk types.

Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company’s consolidated net investment income, operating earnings or income (loss) from continuing operations, net of income tax.

Net investment income is based upon the actual results of each segment’s specifically identifiable investment portfolio adjusted for allocated equity. Other costs are allocated to each of the segments based upon: (i) a review of the nature of such costs; (ii) time studies analyzing the amount of employee compensation costs incurred by each segment; and (iii) cost estimates included in the Company’s product pricing.

	Operating Earnings
	Americas
Three Months Ended September 30, 2013	Retail			Group, Voluntary & Worksite Benefits			Corporate Benefit Funding			Latin America			Total			Asia			EMEA			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	1,607		$	3,767		$	490		$	692		$	6,556		$	1,922		$	586		$	30		$	9,094		$	—		$	9,094
Universal life and investment-type product policy fees	1,257			171			54			222			1,704			438			100			34			2,276			96			2,372
Net investment income	1,928			459			1,424			354			4,165			696			124			58			5,043			(17		)	5,026
Other revenues	267			103			68			—			438			22			21			5			486			(10		)	476
Net investment gains (losses)	—			—			—			—			—			—			—			—			—			(85		)	(85		)
Net derivative gains (losses)	—			—			—			—			—			—			—			—			—			(546		)	(546		)
Total revenues	5,059			4,500			2,036			1,268			12,863			3,078			831			127			16,899			(562		)	16,337
Expenses
Policyholder benefits and claims and policyholder dividends	2,234			3,527			1,144			637			7,542			1,506			243			25			9,316			468			9,784
Interest credited to policyholder account balances	582			38			292			106			1,018			407			37			10			1,472			128			1,600
Goodwill impairment	—			—			—			—			—			—			—			—			—			—			—
Capitalization of DAC	(318		)	(37		)	(2		)	(103		)	(460		)	(515		)	(173		)	(5		)	(1,153		)	—			(1,153		)
Amortization of DAC and VOBA	315			37			4			63			419			393			166			1			979			(138		)	841
Amortization of negative VOBA	—			—			—			(1		)	(1		)	(99		)	(13		)	—			(113		)	(13		)	(126		)
Interest expense on debt	(1		)	—			3			—			2			—			—			286			288			29			317
Other expenses	1,245			595			134			395			2,369			1,040			443			179			4,031			67			4,098
Total expenses	4,057			4,160			1,575			1,097			10,889			2,732			703			496			14,820			541			15,361
Provision for income tax expense (benefit)	343			114			161			38			656			89			43			(239		)	549			(546		)	3
Operating earnings	$	659		$	226		$	300		$	133		$	1,318		$	257		$	85		$	(130	)	1,530
Adjustments to:
Total revenues																									(562		)
Total expenses																									(541		)
Provision for income tax (expense) benefit																									546
Income (loss) from continuing operations, net of income tax																									$	973					$	973

	Operating Earnings
	Americas
Three Months Ended September 30, 2012	Retail			Group, Voluntary & Worksite Benefits			Corporate Benefit Funding			Latin America			Total			Asia			EMEA			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	1,604		$	3,753		$	450		$	610		$	6,417		$	2,112		$	536		$	15		$	9,080		$	16		$	9,096
Universal life and investment-type product policy fees	1,132			166			53			189			1,540			388			82			38			2,048			83			2,131
Net investment income	1,930			450			1,421			299			4,100			709			122			117			5,048			469			5,517
Other revenues	221			100			64			3			388			4			35			8			435			20			455
Net investment gains (losses)	—			—			—			—			—			—			—			—			—			22			22
Net derivative gains (losses)	—			—			—			—			—			—			—			—			—			(718		)	(718		)
Total revenues	4,887			4,469			1,988			1,101			12,445			3,213			775			178			16,611			(108		)	16,503
Expenses
Policyholder benefits and claims and policyholder dividends	2,228			3,449			1,070			507			7,254			1,455			255			31			8,995			303			9,298
Interest credited to policyholder account balances	598			42			339			99			1,078			468			32			11			1,589			513			2,102
Goodwill impairment	—			—			—			—			—			—			—			—			—			1,868			1,868
Capitalization of DAC	(430		)	(38		)	(13		)	(83		)	(564		)	(579		)	(158		)	—			(1,301		)	(1		)	(1,302		)
Amortization of DAC and VOBA	438			40			4			42			524			396			130			1			1,051			(43		)	1,008
Amortization of negative VOBA	—			—			—			(1		)	(1		)	(128		)	(26		)	—			(155		)	(15		)	(170		)
Interest expense on debt	—			1			2			(4		)	(1		)	—			2			285			286			40			326
Other expenses	1,308			547			120			353			2,328			1,206			440			146			4,120			263			4,383
Total expenses	4,142			4,041			1,522			913			10,618			2,818			675			474			14,585			2,928			17,513
Provision for income tax expense (benefit)	253			145			163			36			597			136			38			(192		)	579			(632		)	(53		)
Operating earnings	$	492		$	283		$	303		$	152		$	1,230		$	259		$	62		$	(104	)	1,447
Adjustments to:
Total revenues																									(108		)
Total expenses																									(2,928		)
Provision for income tax (expense) benefit																									632
Income (loss) from continuing operations, net of income tax																									$	(957	)				$	(957	)

	Operating Earnings
	Americas
Nine Months Ended September 30, 2013	Retail			Group, Voluntary & Worksite Benefits			Corporate Benefit Funding			Latin America			Total			Asia			EMEA			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	4,735		$	11,438		$	1,457		$	2,077		$	19,707		$	5,900		$	1,711		$	84		$	27,402		$	1		$	27,403
Universal life and investment-type product policy fees	3,662			521			187			682			5,052			1,324			287			105			6,768			266			7,034
Net investment income	5,876			1,384			4,302			912			12,474			2,151			372			282			15,279			1,106			16,385
Other revenues	767			316			208			9			1,300			63			82			22			1,467			(21		)	1,446
Net investment gains (losses)	—			—			—			—			—			—			—			—			—			339			339
Net derivative gains (losses)	—			—			—			—			—			—			—			—			—			(2,866		)	(2,866		)
Total revenues	15,040			13,659			6,154			3,680			38,533			9,438			2,452			493			50,916			(1,175		)	49,741
Expenses
Policyholder benefits and claims and policyholder dividends	6,659			10,681			3,352			1,792			22,484			4,354			736			52			27,626			1,155			28,781
Interest credited to policyholder account balances	1,750			116			940			313			3,119			1,286			109			33			4,547			1,489			6,036
Goodwill impairment	—			—			—			—			—			—			—			—			—			—			—
Capitalization of DAC	(1,036		)	(105		)	(25		)	(316		)	(1,482		)	(1,583		)	(542		)	(14		)	(3,621		)	—			(3,621		)
Amortization of DAC and VOBA	1,042			104			21			220			1,387			1,186			526			1			3,100			(477		)	2,623
Amortization of negative VOBA	—			—			—			(2		)	(2		)	(325		)	(41		)	—			(368		)	(42		)	(410		)
Interest expense on debt	—			1			7			—			8			—			—			855			863			96			959
Other expenses	3,788			1,761			398			1,157			7,104			3,188			1,351			489			12,132			457			12,589
Total expenses	12,203			12,558			4,693			3,164			32,618			8,106			2,139			1,416			44,279			2,678			46,957
Provision for income tax expense (benefit)	971			370			512			115			1,968			412			73			(635		)	1,818			(1,510		)	308
Operating earnings	$	1,866		$	731		$	949		$	401		$	3,947		$	920		$	240		$	(288	)	4,819
Adjustments to:
Total revenues																									(1,175		)
Total expenses																									(2,678		)
Provision for income tax (expense) benefit																									1,510
Income (loss) from continuing operations, net of income tax																									$	2,476					$	2,476

	Operating Earnings
	Americas
Nine Months Ended September 30, 2012	Retail			Group, Voluntary & Worksite Benefits			Corporate Benefit Funding			Latin America			Total			Asia			EMEA			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	4,804		$	11,021		$	1,480		$	1,948		$	19,253		$	6,215		$	1,815		$	43		$	27,326		$	60		$	27,386
Universal life and investment-type product policy fees	3,365			497			161			581			4,604			1,102			233			117			6,056			250			6,306
Net investment income	5,735			1,325			4,253			881			12,194			2,150			406			547			15,297			1,139			16,436
Other revenues	647			320			193			11			1,171			17			98			27			1,313			132			1,445
Net investment gains (losses)	—			—			—			—			—			—			—			—			—			(152		)	(152		)
Net derivative gains (losses)	—			—			—			—			—			—			—			—			—			(604		)	(604		)
Total revenues	14,551			13,163			6,087			3,421			37,222			9,484			2,552			734			49,992			825			50,817
Expenses
Policyholder benefits and claims and policyholder dividends	6,668			10,153			3,293			1,667			21,781			4,250			941			94			27,066			942			28,008
Interest credited to policyholder account balances	1,784			127			1,016			289			3,216			1,323			91			23			4,653			1,028			5,681
Goodwill impairment	—			—			—			—			—			—			—			—			—			1,868			1,868
Capitalization of DAC	(1,352		)	(102		)	(28		)	(238		)	(1,720		)	(1,721		)	(535		)	—			(3,976		)	(5		)	(3,981		)
Amortization of DAC and VOBA	1,319			98			18			151			1,586			1,188			456			1			3,231			(30		)	3,201
Amortization of negative VOBA	—			—			—			(4		)	(4		)	(387		)	(65		)	—			(456		)	(50		)	(506		)
Interest expense on debt	—			1			6			(3		)	4			5			3			886			898			128			1,026
Other expenses	4,060			1,692			368			1,002			7,122			3,550			1,333			409			12,414			1,187			13,601
Total expenses	12,479			11,969			4,673			2,864			31,985			8,208			2,224			1,413			43,830			5,068			48,898
Provision for income tax expense (benefit)	703			401			495			122			1,721			437			116			(516		)	1,758			(1,048		)	710
Operating earnings	$	1,369		$	793		$	919		$	435		$	3,516		$	839		$	212		$	(163	)	4,404
Adjustments to:
Total revenues																									825
Total expenses																									(5,068		)
Provision for income tax (expense) benefit																									1,048
Income (loss) from continuing operations, net of income tax																									$	1,209					$	1,209

The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at:

	September 30, 2013		December 31, 2012
	(In millions)
Retail	$	342,665	$	332,387
Group, Voluntary & Worksite Benefits	43,648		44,138
Corporate Benefit Funding	218,819		217,352
Latin America	24,116		23,272
Asia	119,742		131,138
EMEA	24,203		23,474
Corporate & Other	49,450		65,020
Total	$	822,643	$	836,781