Investments

9 Months Ended

Sep. 30, 2013

Investments, Debt and Equity Securities [Abstract]

Investments

6. Investments

Fixed Maturity and Equity Securities Available-for-Sale

Fixed Maturity and Equity Securities Available-for-Sale by Sector

The following table presents the fixed maturity and equity securities available-for-sale (“AFS”) by sector. The unrealized loss amounts presented below include the noncredit loss component of other-than-temporary impairments (“OTTI”) losses. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities and non-redeemable preferred stock is reported within equity securities. Included within fixed maturity securities are structured securities including residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”).

	September 30, 2013										December 31, 2012
	Cost or Amortized Cost		Gross Unrealized						Estimated Fair Value		Cost or Amortized Cost		Gross Unrealized							Estimated Fair Value
			Gains		Temporary Losses		OTTI Losses						Gains		Temporary Losses		OTTI Losses
	(In millions)
Fixed maturity securities:
U.S. corporate	$	101,107	$	7,650	$	1,266	$	—	$	107,491	$	102,669	$	11,887	$	430	$	—		$	114,126
Foreign corporate (1)	60,374		3,871		597		—		63,648		61,806		5,654		277		(1		)	67,184
Foreign government	49,400		3,969		365		—		53,004		51,967		5,440		71		—			57,336
U.S. Treasury and agency	41,926		2,967		739		—		44,154		41,874		6,104		11		—			47,967
RMBS	34,412		1,698		403		229		35,478		35,666		2,477		315		349			37,479
CMBS	16,425		635		164		—		16,896		18,177		1,009		57		—			19,129
ABS	14,023		296		146		12		14,161		15,762		404		156		13			15,997
State and political subdivision	13,233		985		263		—		13,955		12,949		2,169		70		—			15,048
Total fixed maturity securities	$	330,900	$	22,071	$	3,943	$	241	$	348,787	$	340,870	$	35,144	$	1,387	$	361		$	374,266
Equity securities:
Common stock	$	1,948	$	336	$	14	$	—	$	2,270	$	2,034	$	147	$	19	$	—		$	2,162
Non-redeemable preferred stock	1,030		60		119		—		971		804		65		140		—			729
Total equity securities	$	2,978	$	396	$	133	$	—	$	3,241	$	2,838	$	212	$	159	$	—		$	2,891

__________________

(1) OTTI losses, as presented above, represent the noncredit portion of OTTI losses that is included in AOCI. OTTI losses include both the initial recognition of noncredit losses, and the effects of subsequent increases and decreases in estimated fair value for those fixed maturity securities that were previously noncredit loss impaired. The noncredit loss component of OTTI losses for foreign corporate securities was in an unrealized gain position of $1 million at December 31, 2012, due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).”

The Company held non-income producing fixed maturity securities with an estimated fair value of $60 million and $85 million with unrealized gains (losses) of $25 million and $11 million at September 30, 2013 and December 31, 2012, respectively.

Maturities of Fixed Maturity Securities

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at:

	September 30, 2013				December 31, 2012
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(In millions)
Due in one year or less	$	13,648	$	13,890	$	24,177	$	24,394
Due after one year through five years	72,766		76,296		66,973		70,759
Due after five years through ten years	77,195		82,484		82,376		91,975
Due after ten years	102,431		109,582		97,739		114,533
Subtotal	266,040		282,252		271,265		301,661
Structured securities (RMBS, CMBS and ABS)	64,860		66,535		69,605		72,605
Total fixed maturity securities	$	330,900	$	348,787	$	340,870	$	374,266

Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. RMBS, CMBS and ABS are shown separately, as they are not due at a single maturity.

Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities AFS by Sector

The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position. The unrealized loss amounts include the noncredit component of OTTI loss.

	September 30, 2013								December 31, 2012
	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
	(In millions, except number of securities)
Fixed maturity securities:
U.S. corporate	$	17,625	$	978	$	2,427	$	288	$	3,799	$	88	$	3,695	$	342
Foreign corporate	10,709		484		1,491		113		2,783		96		2,873		180
Foreign government	6,431		332		247		33		1,431		22		543		49
U.S. Treasury and agency	11,326		734		47		5		1,951		11		—		—
RMBS	8,457		263		2,357		369		735		31		4,098		633
CMBS	3,893		147		228		17		842		11		577		46
ABS	2,949		70		695		88		1,920		30		1,410		139
State and political subdivision	2,801		198		225		65		260		4		251		66
Total fixed maturity securities	$	64,191	$	3,206	$	7,717	$	978	$	13,721	$	293	$	13,447	$	1,455
Equity securities:
Common stock	$	92	$	13	$	15	$	1	$	201	$	18	$	14	$	1
Non-redeemable preferred stock	361		59		198		60		—		—		295		140
Total equity securities	$	453	$	72	$	213	$	61	$	201	$	18	$	309	$	141
Total number of securities in an unrealized loss position	4,868				807				1,941				1,335

Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities

As described more fully in Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2012 Annual Report, the Company performs a regular evaluation of all investment classes for impairment, including fixed maturity securities, equity securities and perpetual hybrid securities, in accordance with its impairment policy, in order to evaluate whether such investments are other-than-temporarily impaired.

Current Period Evaluation

Based on the Company’s current evaluation of its AFS securities in an unrealized loss position in accordance with its impairment policy, and the Company’s current intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities, the Company has concluded that these securities are not other-than-temporarily impaired at September 30, 2013. Future OTTI will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), and changes in credit ratings, collateral valuation, interest rates and credit spreads. If economic fundamentals deteriorate or if there are adverse changes in the above factors, OTTI may be incurred in upcoming periods.

Gross unrealized losses on fixed maturity securities in an unrealized loss position increased $2.5 billion during the nine months endedSeptember 30, 2013 from $1.7 billion to $4.2 billion. The increase in gross unrealized losses for the nine months endedSeptember 30, 2013, was primarily attributable to an increase in interest rates.

At September 30, 2013, $282 million of the total $4.2 billion of gross unrealized losses were from 95 fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for six months or greater.

Investment Grade Fixed Maturity Securities

Of the $282 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $129 million, or 46%, are related to gross unrealized losses on 48 investment grade fixed maturity securities. Unrealized losses on investment grade fixed maturity securities are principally related to widening credit spreads and, with respect to fixed rate fixed maturity securities, rising interest rates since purchase.

Below Investment Grade Fixed Maturity Securities

Of the $282 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $153 million, or 54%, are related to gross unrealized losses on 47 below investment grade fixed maturity securities. Unrealized losses on below investment grade fixed maturity securities are principally related to non-agency RMBS (primarily alternative residential mortgage loans), ABS (primarily foreign ABS) and foreign government securities (primarily European sovereign bonds) and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainties including concerns over unemployment levels, sovereign debt levels and valuations of residential real estate supporting non-agency RMBS. Management evaluates foreign government securities based on factors such as expected cash flows and the financial condition and near-term and long-term prospects of the issuer; and evaluates non-agency RMBS and ABS based on actual and projected cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security.

Equity Securities

Equity securities in an unrealized loss position decreased $26 million during the nine months endedSeptember 30, 2013 from $159 million to $133 million. Of the $133 million, $46 million were from 13 equity securities with gross unrealized losses of 20% or more of cost for 12 months or greater, all of which were financial services industry investment grade non-redeemable preferred stock, of which 63% were rated A or better.

Fair Value Option and Trading Securities

See Note 8 for tables that present the categories of securities that comprise fair value option (“FVO”) and trading securities. See “— Net Investment Income” and “— Net Investment Gains (Losses)” for the net investment income recognized on FVO and trading securities and the related changes in estimated fair value subsequent to purchase included in net investment income and net investment gains (losses) for securities still held as of the end of the respective periods, as applicable.

Mortgage Loans

Mortgage Loans Held-for-Investment and Held-for-Sale by Portfolio Segment

Mortgage loans are summarized as follows at:

	September 30, 2013					December 31, 2012
	Carrying Value			% of Total		Carrying Value			% of Total
	(In millions)					(In millions)
Mortgage loans held-for-investment:
Commercial	$	40,262		69.8	%	$	40,472		71.0	%
Agricultural	12,830			22.2		12,843			22.5
Residential	2,434			4.2		958			1.7
Subtotal (1)	55,526			96.2		54,273			95.2
Valuation allowances	(326		)	(0.6	)	(347		)	(0.6	)
Subtotal mortgage loans held-for-investment, net	55,200			95.6		53,926			94.6
Residential — FVO	212			0.4		—			—
Commercial mortgage loans held by CSEs	2,096			3.6		2,666			4.7
Total mortgage loans held-for-investment, net	57,508			99.6		56,592			99.3
Mortgage loans held-for-sale	225			0.4		414			0.7
Total mortgage loans, net	$	57,733		100.0	%	$	57,006		100.0	%

__________________

(1) Purchases of mortgage loans were $676 million and $1.6 billion for the three months and nine months endedSeptember 30, 2013, respectively, and $100 million for both the three months and nine months endedSeptember 30, 2012.

See “— Variable Interest Entities” for discussion of consolidated securitization entities (“CSEs”).

Mortgage Loans and Valuation Allowance by Portfolio Segment

The carrying value prior to valuation allowance (“recorded investment”) in mortgage loans held-for-investment, by portfolio segment, by method of evaluation of credit loss, and the related valuation allowances, by type of credit loss, were as follows at:

	September 30, 2013								December 31, 2012
	Commercial		Agricultural		Residential		Total		Commercial		Agricultural		Residential		Total
	(In millions)
Mortgage loans:
Evaluated individually for  credit losses	$	520	$	170	$	14	$	704	$	539	$	181	$	13	$	733
Evaluated collectively for  credit losses	39,742		12,660		2,420		54,822		39,933		12,662		945		53,540
Total mortgage loans	40,262		12,830		2,434		55,526		40,472		12,843		958		54,273
Valuation allowances:
Specific credit losses	62		12		2		76		94		21		2		117
Non-specifically identified  credit losses	197		38		15		250		199		31		—		230
Total valuation allowances	259		50		17		326		293		52		2		347
Mortgage loans, net of  valuation allowances	$	40,003	$	12,780	$	2,417	$	55,200	$	40,179	$	12,791	$	956	$	53,926

Valuation Allowance Rollforward by Portfolio Segment

The changes in the valuation allowance, by portfolio segment, were as follows:

	Three Months   Ended   September 30,
	2013								2012
	Commercial		Agricultural		Residential		Total		Commercial			Agricultural			Residential		Total
	(In millions)
Balance, beginning of period	$	242	$	49	$	11	$	302	$	300		$	59		$	2	$	361
Provision (release)	17		1		6		24		2			6			—		8
Charge-offs, net of recoveries	—		—		—		—		(2		)	(8		)	—		(10		)
Transfers to held-for-sale (1)	—		—		—		—		—			(5		)	—		(5		)
Balance, end of period	$	259	$	50	$	17	$	326	$	300		$	52		$	2	$	354

	Nine Months   Ended   September 30,
	2013											2012
	Commercial			Agricultural			Residential		Total			Commercial			Agricultural			Residential			Total
	(In millions)
Balance, beginning of period	$	293		$	52		$	2	$	347		$	398		$	81		$	2		$	481
Provision (release)	(34		)	8			15		(11		)	(96		)	—			6			(90		)
Charge-offs, net of recoveries	—			(10		)	—		(10		)	(2		)	(24		)	—			(26		)
Transfers to held-for-sale (1)	—			—			—		—			—			(5		)	(6		)	(11		)
Balance, end of period	$	259		$	50		$	17	$	326		$	300		$	52		$	2		$	354

__________________

(1) The valuation allowance on and the related carrying value of certain residential mortgage loans held-for-investment were transferred to mortgage loans held-for-sale in connection with the MetLife Bank Divestiture. See Note 3 of the Notes to the Consolidated Financial Statements included in the 2012 Annual Report.

Credit Quality of Commercial Mortgage Loans

Information about the credit quality of commercial mortgage loans held-for-investment is presented below at:

	Recorded Investment										Estimated Fair Value		% of Total
	Debt Service Coverage Ratios								% of Total
	> 1.20x		1.00x - 1.20x		< 1.00x		Total
	(In millions)										(In millions)
September 30, 2013:
Loan-to-value ratios:
Less than 65%	$	29,992	$	751	$	746	$	31,489	78.2	%	$	33,188	79.0	%
65% to 75%	6,029		501		199		6,729		16.7		6,860		16.3
76% to 80%	290		192		258		740		1.8		737		1.7
Greater than 80%	902		261		141		1,304		3.3		1,246		3.0
Total	$	37,213	$	1,705	$	1,344	$	40,262	100.0	%	$	42,031	100.0	%
December 31, 2012:
Loan-to-value ratios:
Less than 65%	$	29,839	$	730	$	722	$	31,291	77.3	%	$	33,730	78.3	%
65% to 75%	5,057		672		153		5,882		14.6		6,129		14.2
76% to 80%	938		131		316		1,385		3.4		1,436		3.3
Greater than 80%	1,085		552		277		1,914		4.7		1,787		4.2
Total	$	36,919	$	2,085	$	1,468	$	40,472	100.0	%	$	43,082	100.0	%

Credit Quality of Agricultural Mortgage Loans

Information about the credit quality of agricultural mortgage loans held-for-investment is presented below at:

	September 30, 2013				December 31, 2012
	Recorded Investment		% of Total		Recorded Investment		% of Total
	(In millions)				(In millions)
Loan-to-value ratios:
Less than 65%	$	12,024	93.7	%	$	11,908	92.7	%
65% to 75%	560		4.4		590		4.6
76% to 80%	132		1.0		92		0.7
Greater than 80%	114		0.9		253		2.0
Total	$	12,830	100.0	%	$	12,843	100.0	%

The estimated fair value of agricultural mortgage loans held-for-investment was $13.2 billion and $13.3 billion at September 30, 2013 and December 31, 2012, respectively.

Credit Quality of Residential Mortgage Loans

Information about the credit quality of residential mortgage loans held-for-investment is presented below at:

	September 30, 2013				December 31, 2012
	Recorded Investment		% of Total		Recorded Investment		% of Total
	(In millions)				(In millions)
Performance indicators:
Performing	$	2,381	97.8	%	$	929	97.0	%
Nonperforming	53		2.2		29		3.0
Total	$	2,434	100.0	%	$	958	100.0	%

The estimated fair value of residential mortgage loans held-for-investment was $2.4 billion and $1.0 billion at September 30, 2013 and December 31, 2012, respectively.

Past Due and Interest Accrual Status of Mortgage Loans

The Company has a high quality, well performing, mortgage loan portfolio, with 99% of all mortgage loans classified as performing at both September 30, 2013 and December 31, 2012. The Company defines delinquency consistent with industry practice, when the mortgage loan is past due as follows: commercial and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days. The recorded investment in mortgage loans held-for-investment, prior to valuation allowances, past due according to these aging categories, greater than 90 days past due and still accruing interest and in nonaccrual status, by portfolio segment, were as follows at:

	Past Due				Greater than 90 Days Past Due and Still Accruing Interest				Nonaccrual Status
	September 30, 2013		December 31, 2012		September 30, 2013		December 31, 2012		September 30, 2013		December 31, 2012
	(In millions)
Commercial	$	12	$	2	$	11	$	—	$	196	$	84
Agricultural	93		116		2		53		106		67
Residential	53		29		11		—		18		18
Total	$	158	$	147	$	24	$	53	$	320	$	169

Impaired Mortgage Loans

Information regarding impaired mortgage loans held-for-investment, including those modified in a troubled debt restructuring, by portfolio segment, was as follows at:

	Loans with a Valuation Allowance								Loans without a Valuation Allowance				All Impaired Loans
	Unpaid Principal Balance		Recorded Investment		Valuation Allowances		Carrying Value		Unpaid Principal Balance		Recorded Investment		Unpaid Principal Balance		Carrying Value
	(In millions)
September 30, 2013:
Commercial	$	230	$	224	$	62	$	162	$	303	$	296	$	533	$	458
Agricultural	85		82		12		70		93		88		178		158
Residential	12		12		2		10		2		2		14		12
Total	$	327	$	318	$	76	$	242	$	398	$	386	$	725	$	628
December 31, 2012:
Commercial	$	445	$	436	$	94	$	342	$	103	$	103	$	548	$	445
Agricultural	110		107		21		86		79		74		189		160
Residential	13		13		2		11		—		—		13		11
Total	$	568	$	556	$	117	$	439	$	182	$	177	$	750	$	616

Unpaid principal balance is generally prior to any charge-offs.

The average recorded investment in impaired mortgage loans held-for-investment, including those modified in a troubled debt restructuring, and the related interest income, which is primarily recognized on a cash basis, by portfolio segment, was:

	Impaired Mortgage Loans
	Three Months   Ended   September 30,								Nine Months   Ended   September 30,
	2013				2012				2013				2012
	Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income
	(In millions)
Commercial	$	525	$	4	$	395	$	1	$	530	$	11	$	334	$	4
Agricultural	165		5		191		2		167		8		210		5
Residential	14		—		12		—		14		—		13		—
Total	$	704	$	9	$	598	$	3	$	711	$	19	$	557	$	9

Mortgage Loans Modified in a Troubled Debt Restructuring

The number of mortgage loans and carrying value after specific valuation allowance of mortgage loans modified during the period in a troubled debt restructuring were as follows:

	Three Months Ended September 30,
	2013					2012
	Number of   Mortgage Loans	Carrying Value after Specific     Valuation Allowance				Number of   Mortgage   Loans	Carrying Value after Specific   Valuation Allowance
		Pre- Modification		Post- Modification			Pre- Modification		Post- Modification
		(In millions)					(In millions)
Commercial	1	$	49	$	49	—	$	—	$	—
Agricultural	2	24		24		5	17		16
Residential	5	1		1		—	—		—
Total	8	$	74	$	74	5	$	17	$	16

	Nine Months Ended September 30,
	2013					2012
	Number of   Mortgage Loans	Carrying Value after Specific     Valuation Allowance				Number of   Mortgage   Loans	Carrying Value after Specific   Valuation Allowance
		Pre- Modification		Post- Modification			Pre- Modification		Post- Modification
		(In millions)					(In millions)
Commercial	1	$	49	$	49	—	$	—	$	—
Agricultural	3	28		28		5	17		16
Residential	11	2		2		—	—		—
Total	15	$	79	$	79	5	$	17	$	16

During the three months and nine months endedSeptember 30, 2013 and 2012, the Company had no mortgage loans with subsequent payment defaults that were modified in a troubled debt restructuring during the previous 12 months. Payment default is determined in the same manner as delinquency status as described above.

Cash Equivalents

The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $5.6 billionand $6.1 billion at September 30, 2013 and December 31, 2012, respectively.

Net Unrealized Investment Gains (Losses)

The components of net unrealized investment gains (losses), included in AOCI, were as follows at:

	September 30, 2013			December 31, 2012
	(In millions)
Fixed maturity securities	$	18,075		$	33,641
Fixed maturity securities with noncredit OTTI losses in AOCI	(241		)	(361		)
Total fixed maturity securities	17,834			33,280
Equity securities	262			97
Derivatives	624			1,274
Other	(21		)	(30		)
Subtotal	18,699			34,621
Amounts allocated from:
Insurance liability loss recognition	(1,099		)	(6,049		)
DAC and VOBA related to noncredit OTTI losses recognized in AOCI	7			19
DAC and VOBA	(1,306		)	(2,485		)
Policyholder dividend obligation	(2,013		)	(3,828		)
Subtotal	(4,411		)	(12,343		)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	81			119
Deferred income tax benefit (expense)	(5,299		)	(7,973		)
Net unrealized investment gains (losses)	9,070			14,424
Net unrealized investment gains (losses) attributable to noncontrolling interests	30			(5		)
Net unrealized investment gains (losses) attributable to MetLife, Inc.	$	9,100		$	14,419

The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows:

	Nine Months   Ended   September 30, 2013			Year   Ended   December 31, 2012
	(In millions)
Balance, beginning of period	$	(361	)	$	(724	)
Noncredit OTTI losses and subsequent changes recognized (1)	56			(29		)
Securities sold with previous noncredit OTTI loss	132			177
Subsequent changes in estimated fair value	(68		)	215
Balance, end of period	$	(241	)	$	(361	)

__________________

(1) Noncredit OTTI losses and subsequent changes recognized, net of DAC, were $47 million and ($21) million for the nine months endedSeptember 30, 2013 and year ended December 31, 2012, respectively.

The changes in net unrealized investment gains (losses) were as follows:

	Nine Months   Ended   September 30, 2013
	(In millions)
Balance, beginning of period	$	14,419
Fixed maturity securities on which noncredit OTTI losses have been recognized	120
Unrealized investment gains (losses) during the period	(16,042		)
Unrealized investment gains (losses) relating to:
Insurance liability gain (loss) recognition	4,950
DAC and VOBA related to noncredit OTTI losses recognized in AOCI	(12		)
DAC and VOBA	1,179
Policyholder dividend obligation	1,815
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	(38		)
Deferred income tax benefit (expense)	2,674
Net unrealized investment gains (losses)	9,065
Net unrealized investment gains (losses) attributable to noncontrolling interests	35
Balance, end of period	$	9,100
Change in net unrealized investment gains (losses)	$	(5,354	)
Change in net unrealized investment gains (losses) attributable to noncontrolling interests	35
Change in net unrealized investment gains (losses) attributable to MetLife, Inc.	$	(5,319	)

Concentrations of Credit Risk

Investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, were in fixed income securities of the Japanese government and its agencies with an estimated fair value of $21.2 billion and $22.4 billion at September 30, 2013 and December 31, 2012, respectively. The Company’s investment in fixed maturity and equity securities to counterparties that primarily conduct business in Japan, including Japan government and agency fixed maturity securities, was $26.4 billion and $28.7 billion at September 30, 2013 and December 31, 2012, respectively.

Securities Lending

The Company participates in a securities lending program. Elements of the securities lending program are presented below at:

	September 30, 2013		December 31, 2012
	(In millions)
Securities on loan: (1)
Amortized cost	$	27,781	$	23,380
Estimated fair value	$	28,810	$	27,077
Cash collateral on deposit from counterparties (2)	$	29,416	$	27,727
Security collateral on deposit from counterparties (3)	$	18	$	104
Reinvestment portfolio — estimated fair value	$	29,676	$	28,112

__________________

(1) Included within fixed maturity securities, cash and cash equivalents, short-term investments and equity securities.

(2) Included within payables for collateral under securities loaned and other transactions.

(3) Security collateral on deposit from counterparties may not be sold or repledged, unless the counterparty is in default, and is not reflected in the consolidated financial statements.

Invested Assets on Deposit, Held in Trust and Pledged as Collateral

Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value for cash and cash equivalents, short-term investments, fixed maturity and equity securities, and FVO and trading securities, and at carrying value for mortgage loans.

	September 30, 2013		December 31, 2012
	(In millions)
Invested assets on deposit (regulatory deposits)	$	2,229	$	2,362
Invested assets held in trust (collateral financing arrangements and reinsurance agreements)	10,928		12,434
Invested assets pledged as collateral (1)	22,927		23,251
Total invested assets on deposit, held in trust and pledged as collateral	$	36,084	$	38,047

__________________

(1) The Company has pledged fixed maturity securities, mortgage loans and cash and cash equivalents in connection with various agreements and transactions, including funding agreements (see Notes 4 and 12 of the Notes to the Consolidated Financial Statements included in the 2012 Annual Report), collateral financing arrangements (see Note 13 of the Notes to the Consolidated Financial Statements included in the 2012 Annual Report) and derivative transactions (see Note 7).

Variable Interest Entities

The Company has invested in certain structured transactions (including CSEs), formed trusts to invest proceeds from certain collateral financing arrangements and has insurance operations, that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity.

The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. The Company generally uses a qualitative approach to determine whether it is the primary beneficiary. However, for VIEs that are investment companies or apply measurement principles consistent with those utilized by investment companies, the primary beneficiary is based on a risks and rewards model and is defined as the entity that will absorb a majority of a VIE’s expected losses, receive a majority of a VIE’s expected residual returns if no single entity absorbs a majority of expected losses, or both. The Company reassesses its involvement with VIEs on a quarterly basis. The use of different methodologies, assumptions and inputs in the determination of the primary beneficiary could have a material effect on the amounts presented within the consolidated financial statements.

Consolidated VIEs

The following table presents the total assets and total liabilities relating to VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at September 30, 2013 and December 31, 2012. Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment.

	September 30, 2013				December 31, 2012
	Total Assets		Total Liabilities		Total Assets		Total Liabilities
	(In millions)
MRSC (collateral financing arrangement (primarily securities)) (1)	$	3,430	$	—	$	3,439	$	—
CSEs (assets (primarily loans) and liabilities (primarily debt)) (2)	2,130		1,953		2,730		2,545
Operating joint venture (3)	1,982		1,681		—		—
Investments:
Other limited partnership interests	172		10		356		8
FVO and trading securities	69		—		71		—
Other invested assets	82		7		85		—
Real estate joint ventures	10		15		11		14
Total	$	7,875	$	3,666	$	6,692	$	2,567

__________________

(1) See Note 13 of the Notes to the Consolidated Financial Statements included in the 2012 Annual Report for a description of the MetLife Reinsurance Company of South Carolina (“MRSC”) collateral financing arrangement. These assets primarily consist of fixed maturity securities.

(2) The Company consolidates former qualified special purpose entities (“QSPEs”) that are structured as CMBS and as collateralized debt obligations. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The assets and liabilities of these CSEs are primarily commercial mortgage loans held-for-investment and long-term debt, respectively. The Company’s exposure was limited to that of its remaining investment in the former QSPEs of $158 million and $168 million at estimated fair value at September 30, 2013 and December 31, 2012, respectively. The long-term debt bears interest primarily at fixed rates ranging from 2.25% to 5.57%, payable primarily on a monthly basis. Interest expense related to these obligations, included in other expenses, was $29 million and $96 million for the three months and nine months endedSeptember 30, 2013, respectively, and $40 million and $125 million for the three months and nine months endedSeptember 30, 2012, respectively.

(3) Assets of the operating joint venture are primarily fixed maturity securities and separate account assets. Liabilities of the operating joint venture are primarily future policy benefits, other policyholder funds and separate account liabilities. The assets and liabilities of the operating joint venture were consolidated in earlier periods; however, as a result of the quarterly reassessment in the first quarter of 2013, it was determined to be a consolidated VIE.

Unconsolidated VIEs

The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at:

	September 30, 2013				December 31, 2012
	Carrying Amount		Maximum Exposure to Loss (1)		Carrying Amount		Maximum Exposure to Loss (1)
	(In millions)
Fixed maturity securities AFS:
Structured securities (RMBS, CMBS and ABS) (2)	$	66,535	$	66,535	$	72,605	$	72,605
U.S. and foreign corporate	4,437		4,437		5,287		5,287
Other limited partnership interests	4,925		6,782		4,436		5,908
Other invested assets	1,348		1,607		1,117		1,431
FVO and trading securities	598		598		563		563
Mortgage loans	162		162		351		351
Real estate joint ventures	106		110		150		157
Equity securities AFS:
Non-redeemable preferred stock	32		32		32		32
Total	$	78,143	$	80,263	$	84,541	$	86,334

__________________

(1) The maximum exposure to loss relating to fixed maturity securities AFS, FVO and trading securities and equity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests, mortgage loans and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments of the Company. 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 $271 million and $318 million at September 30, 2013 and December 31, 2012, 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.

As described in Note 15, the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs during the nine months endedSeptember 30, 2013 and 2012.

Net Investment Income

The components of net investment income were as follows:

	Three Months   Ended   September 30,				Nine Months   Ended   September 30,
	2013		2012		2013		2012
	(In millions)
Investment income:
Fixed maturity securities	$	3,784	$	3,825	$	11,319	$	11,370
Equity securities	28		26		88		96
FVO and trading securities — Actively Traded Securities and FVO general account securities (1)	14		24		24		68
Mortgage loans	725		811		2,179		2,405
Policy loans	158		157		465		471
Real estate and real estate joint ventures	227		173		663		630
Other limited partnership interests	144		145		665		593
Cash, cash equivalents and short-term investments	42		40		136		115
International joint ventures	16		7		7		11
Other	25		27		137		148
Subtotal	5,163		5,235		15,683		15,907
Less: Investment expenses	302		276		889		793
Subtotal, net	4,861		4,959		14,794		15,114
FVO and trading securities — FVO contractholder-directed unit-linked investments (1)	132		512		1,485		1,010
Securitized reverse residential mortgage loans	—		3		—		177
FVO CSEs — interest income:
Commercial mortgage loans	33		42		104		131
Securities	—		1		2		4
Subtotal	165		558		1,591		1,322
Net investment income	$	5,026	$	5,517	$	16,385	$	16,436

__________________

(1) Changes in estimated fair value subsequent to purchase for securities still held as of the end of the respective periods included in net investment income were:

	Three Months   Ended   September 30,					Nine Months   Ended   September 30,
	2013			2012		2013			2012
	(In millions)
Actively Traded Securities and FVO general account securities	$	2		$	6	$	(14	)	$	36
FVO contractholder-directed unit-linked investments	$	(9	)	$	247	$	1,069		$	741

See “— Variable Interest Entities” for discussion of CSEs.

Net Investment Gains (Losses)

Components of Net Investment Gains (Losses)

The components of net investment gains (losses) were as follows:

	Three Months   Ended   September 30,						Nine Months   Ended   September 30,
	2013			2012			2013			2012
	(In millions)
Total gains (losses) on fixed maturity securities:
Total OTTI losses recognized — by sector and industry:
U.S. and foreign corporate securities — by industry:
Utility	$	(1	)	$	(10	)	$	(33	)	$	(61	)
Finance	—			—			(10		)	(32		)
Consumer	(3		)	(4		)	(11		)	(16		)
Communications	—			(1		)	(2		)	(19		)
Industrial	—			(4		)	—			(5		)
Transportation	(3		)	(11		)	(3		)	(17		)
Total U.S. and foreign corporate securities	(7		)	(30		)	(59		)	(150		)
RMBS	(27		)	(15		)	(74		)	(61		)
CMBS	—			—			—			(50		)
ABS	—			(2		)	—			(9		)
State and political subdivision	—			—			—			(1		)
OTTI losses on fixed maturity securities recognized in earnings	(34		)	(47		)	(133		)	(271		)
Fixed maturity securities — net gains (losses) on sales and disposals	(44		)	80			504			146
Total gains (losses) on fixed maturity securities (1)	(78		)	33			371			(125		)
Total gains (losses) on equity securities:
Total OTTI losses recognized — by sector:
Non-redeemable preferred stock	—			—			(20		)	—
Common stock	—			(9		)	(2		)	(26		)
OTTI losses on equity securities recognized in earnings	—			(9		)	(22		)	(26		)
Equity securities — net gains (losses) on sales and disposals	3			12			2			39
Total gains (losses) on equity securities	3			3			(20		)	13
FVO and trading securities — FVO general account securities — changes in estimated fair value subsequent to purchase	1			1			9			4
Mortgage loans (1)	(13		)	—			22			49
Real estate and real estate joint ventures	4			(15		)	(19		)	(35		)
Other limited partnership interests	—			(7		)	(41		)	(18		)
Other investment portfolio gains (losses)	12			15			46			(20		)
Subtotal — investment portfolio gains (losses) (1)	(71		)	30			368			(132		)
FVO CSEs — changes in estimated fair value subsequent to consolidation:
Commercial mortgage loans	(14		)	9			(46		)	8
Securities	1			—			1			—
Long-term debt — related to commercial mortgage loans	18			(2		)	66			8
Long-term debt — related to securities	(1		)	8			(1		)	(2		)
Non-investment portfolio gains (losses) (2)	(18		)	(23		)	(49		)	(34		)
Subtotal FVO CSEs and non-investment portfolio gains (losses)	(14		)	(8		)	(29		)	(20		)
Total net investment gains (losses)	$	(85	)	$	22		$	339		$	(152	)

__________________

(1) For the three months and nine months endedSeptember 30, 2012, net investment gains (losses) includes a net gain (loss) of ($26) million and $34 million, respectively, as a result of the MetLife Bank Divestiture, which is comprised of gains (losses) on investments sold of $0 and $75 million, respectively, and impairments on mortgage loans of ($26) million and ($41) million, respectively. See Note 3.

(2) For the three months and nine months ended September 30, 2013, there were $0 and $30 million, respectively, in non-investment portfolio gains (losses) related to the MetLife Bank Divestiture. For both the three months and nine months endedSeptember 30, 2012, there were $41 million in non-investment portfolio gains (losses), related to the MetLife Bank Divestiture. See Note 3.

See “— Variable Interest Entities” for discussion of CSEs.

Gains (losses) from foreign currency transactions included within net investment gains (losses) were $90 million and $165 million for the three months and nine months endedSeptember 30, 2013, respectively, and ($79) million and ($56) million for the three months and nine months endedSeptember 30, 2012, respectively.

Sales or Disposals and Impairments of Fixed Maturity and Equity Securities

Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains (losses) are as shown in the tables below. Investment gains and losses on sales of securities are determined on a specific identification basis.

	Three Months   Ended   September 30,
	2013			2012			2013			2012			2013			2012
	Fixed Maturity Securities						Equity Securities						Total
	(In millions)
Proceeds	$	20,003		$	12,004		$	173		$	231		$	20,176		$	12,235
Gross investment gains	$	238		$	192		$	5		$	23		$	243		$	215
Gross investment losses	(282		)	(112		)	(2		)	(11		)	(284		)	(123		)
Total OTTI losses recognized in earnings:
Credit-related	(33		)	(36		)	—			—			(33		)	(36		)
Other (1)	(1		)	(11		)	—			(9		)	(1		)	(20		)
Total OTTI losses recognized in earnings	(34		)	(47		)	—			(9		)	(34		)	(56		)
Net investment gains (losses)	$	(78	)	$	33		$	3		$	3		$	(75	)	$	36

	Nine Months   Ended   September 30,
	2013			2012			2013			2012			2013			2012
	Fixed Maturity Securities						Equity Securities						Total
	(In millions)
Proceeds	$	61,625		$	47,023		$	528		$	594		$	62,153		$	47,617
Gross investment gains	$	1,061		$	742		$	23		$	56		$	1,084		$	798
Gross investment losses	(557		)	(596		)	(21		)	(17		)	(578		)	(613		)
Total OTTI losses recognized in earnings:
Credit-related	(114		)	(177		)	—			—			(114		)	(177		)
Other (1)	(19		)	(94		)	(22		)	(26		)	(41		)	(120		)
Total OTTI losses recognized in earnings	(133		)	(271		)	(22		)	(26		)	(155		)	(297		)
Net investment gains (losses)	$	371		$	(125	)	$	(20	)	$	13		$	351		$	(112	)

__________________

(1) Other OTTI losses recognized in earnings include impairments on (i) equity securities, (ii) perpetual hybrid securities classified within fixed maturity securities where the primary reason for the impairment was the severity and/or the duration of an unrealized loss position and (iii) fixed maturity securities where there is an intent to sell or it is more likely than not that the Company will be required to sell the security before recovery of the decline in estimated fair value.

Credit Loss Rollforward

The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still held for which a portion of the OTTI loss was recognized in other comprehensive income (loss) (“OCI”):

	Three Months   Ended   September 30,						Nine Months   Ended   September 30,
	2013			2012			2013			2012
	(In millions)
Balance, beginning of period	$	381		$	391		$	392		$	471
Additions:
Initial impairments — credit loss OTTI recognized on securities not previously impaired	3			2			5			39
Additional impairments — credit loss OTTI recognized on securities previously impaired	23			15			64			41
Reductions:
Sales (maturities, pay downs or prepayments) during the period of securities previously impaired as credit loss OTTI	(21		)	(36		)	(75		)	(155		)
Securities impaired to net present value of expected future cash flows	—			—			—			(23		)
Increases in cash flows accretion of previous credit loss OTTI	(1		)	(1		)	(1		)	(2		)
Balance, end of period	$	385		$	371		$	385		$	371