On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company (“MLIC”) converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance approving MLIC’s plan of reorganization, as amended (the “Plan”). On the Demutualization Date, MLIC established a closed block for the benefit of holders of certain individual life insurance policies of MLIC.

Experience within the closed block, in particular mortality and investment yields, as well as realized and unrealized gains and losses, directly impact the policyholder dividend obligation. Amortization of the closed block DAC, which resides outside of the closed block, is based upon cumulative actual and expected earnings within the closed block. Accordingly, the Company’s net income continues to be sensitive to the actual performance of the closed block.

Closed block assets, liabilities, revenues and expenses are combined on a line-by-line basis with the assets, liabilities, revenues and expenses outside the closed block based on the nature of the particular item.

Information regarding the closed block liabilities and assets designated to the closed block was as follows at:



	March 31, 2014			December 31, 2013
	(In millions)
Closed Block Liabilities
Future policy benefits	$	41,929		$	42,076
Other policy-related balances	328			298
Policyholder dividends payable	470			456
Policyholder dividend obligation	2,463			1,771
Current income tax payable	15			18
Other liabilities	608			582
Total closed block liabilities	45,813			45,201
Assets Designated to the Closed Block
Investments:
Fixed maturity securities available-for-sale, at estimated fair value	28,810			28,374
Equity securities available-for-sale, at estimated fair value	90			86
Mortgage loans	6,117			6,155
Policy loans	4,647			4,669
Real estate and real estate joint ventures	509			492
Other invested assets	935			814
Total investments	41,108			40,590
Cash and cash equivalents	375			238
Accrued investment income	496			477
Premiums, reinsurance and other receivables	67			98
Deferred income tax assets	292			293
Total assets designated to the closed block	42,338			41,696
Excess of closed block liabilities over assets designated to the closed block	3,475			3,505
Amounts included in accumulated other comprehensive income (loss) (“AOCI”):
Unrealized investment gains (losses), net of income tax	1,931			1,502
Unrealized gains (losses) on derivatives, net of income tax	(3		)	(3		)
Allocated to policyholder dividend obligation, net of income tax	(1,601		)	(1,151		)
Total amounts included in AOCI	327			348
Maximum future earnings to be recognized from closed block assets and liabilities	$	3,802		$	3,853

Information regarding the closed block policyholder dividend obligation was as follows:



	Three Months Ended March 31, 2014		Year Ended December 31, 2013
	(In millions)
Balance, beginning of period	$	1,771	$	3,828
Change in unrealized investment and derivative gains (losses)	692		(2,057		)
Balance, end of period	$	2,463	$	1,771

Information regarding the closed block revenues and expenses was as follows:



	Three Months Ended March 31,
	2014			2013
	(In millions)
Revenues
Premiums	$	446		$	464
Net investment income	530			533
Net investment gains (losses)	—			3
Net derivative gains (losses)	(1		)	8
Total revenues	975			1,008
Expenses
Policyholder benefits and claims	624			643
Policyholder dividends	233			242
Other expenses	41			42
Total expenses	898			927
Revenues, net of expenses before provision for income tax expense (benefit)	77			81
Provision for income tax expense (benefit)	27			27
Revenues, net of expenses and provision for income tax expense (benefit)	$	50		$	54

MLIC charges the closed block with federal income taxes, state and local premium taxes and other additive state or local taxes, as well as investment management expenses relating to the closed block as provided in the Plan. MLIC also charges the closed block for expenses of maintaining the policies included in the closed block.