Equity

9 Months Ended

Sep. 30, 2014

Equity [Abstract]

Equity

10. Equity

Common Stock

In June 2014, MetLife, Inc. announced its plans to resume common stock repurchases and repurchase up to $1.0 billion of MetLife, Inc. common stock. It is utilizing existing authorizations from the MetLife, Inc. Board of Directors to repurchase its common stock. Under these authorizations, MetLife, Inc. may purchase its common stock from the MetLife Policyholder Trust, in the open market (including pursuant to the terms of a pre-set trading plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934 (“Exchange Act”)) and in privately negotiated transactions.

During the nine months ended September 30, 2014, MetLife, Inc. repurchased 8,168,318 shares through open market purchases for $443 million. MetLife, Inc. did not repurchase shares during the nine months ended September 30, 2013.

At September 30, 2014, MetLife, Inc. had $818 million remaining under its common stock repurchase authorization. Future common stock repurchases will be dependent upon several factors, including our capital position, liquidity, financial strength and credit ratings, general market conditions, the market price of MetLife, Inc.’s common stock compared to management’s assessment of the stock’s underlying value and applicable regulatory approvals, as well as other legal and accounting factors.

See Note 15 for information about issuances of common stock related to the settlement of stock purchase contracts in October 2014.

Stock-Based Compensation Plans

Performance Shares and Performance Units

For outstanding awards granted prior to the January 1, 2013 – December 31, 2015 performance period, vested Performance Shares and Performance Units will be multiplied by a performance factor of 0.0 to 2.0 based on MetLife, Inc.’s adjusted income, total shareholder return, and performance in change in annual net operating earnings and total shareholder return compared to the performance of its competitors, each measured with respect to the applicable three-year performance period or portions thereof.

For outstanding awards granted for the January 1, 2013 – December 31, 2015 and later performance periods, the vested Performance Shares and Performance Units will be multiplied by a performance factor of 0.00 to 1.75. Assuming that MetLife, Inc. has met threshold performance goals related to its adjusted income or total shareholder return, the MetLife, Inc. Compensation Committee will determine the performance factor in its discretion. In doing so, the Compensation Committee may consider MetLife, Inc.’s total shareholder return relative to the performance of its competitors and MetLife, Inc.’s operating return on equity relative to its financial plan. The estimated fair value of Performance Shares and Performance Units will be remeasured each quarter until they become payable.

Payout of 2011 – 2013 Performance Shares

Final Performance Shares are paid in shares of MetLife, Inc. common stock. The performance factor for the January 1, 2011 – December 31, 2013 performance period was 0.80. This factor has been applied to the 1,544,120 Performance Shares associated with that performance period that vested on December 31, 2013 and, as a result, 1,235,296 shares of MetLife, Inc.’s common stock (less withholding for taxes and other items, as applicable) were issued, aside from shares that payees choose to defer, in April 2014.

Payout of 2011 – 2013 Performance Units

Final Performance Units are payable in cash equal to the closing price of MetLife, Inc. common stock on a date following the last day of the three-year performance period. The performance factor for the January 1, 2011 – December 31, 2013 performance period was 0.80. This factor has been applied to the 98,060 Performance Units associated with that performance period that vested on December 31, 2013 and, as a result, the cash value of 78,448 units (less withholding for taxes and other items, as applicable) was paid in April 2014.

Accumulated Other Comprehensive Income (Loss)

Information regarding changes in the balances of each component of AOCI attributable to MetLife, Inc., net of income tax, was as follows:

	Three Months   Ended   September 30, 2014
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)			Unrealized Gains (Losses) on Derivatives			Foreign Currency Translation Adjustments			Defined Benefit Plans Adjustment			Total
	(In millions)
Balance, beginning of period	$	13,909		$	476		$	(1,739	)	$	(1,588	)	$	11,058
OCI before reclassifications	(56		)	118			(264		)	28			(174		)
Deferred income tax benefit (expense)	130			(49		)	(157		)	(9		)	(85		)
OCI before reclassifications, net of income tax	13,983			545			(2,160		)	(1,569		)	10,799
Amounts reclassified from AOCI	(214		)	471			—			45			302
Deferred income tax benefit (expense)	62			(158		)	—			(13		)	(109		)
Amounts reclassified from AOCI, net of income tax	(152		)	313			—			32			193
Sale of subsidiary (2)	—			—			—			—			—
Deferred income tax benefit (expense)	—			—			—			—			—
Sale of subsidiary, net of income tax	—			—			—			—			—
Balance, end of period	$	13,831		$	858		$	(2,160	)	$	(1,537	)	$	10,992

	Three Months   Ended   September 30, 2013
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)			Unrealized Gains (Losses) on Derivatives			Foreign Currency Translation Adjustments			Defined Benefit Plans Adjustment			Total
	(In millions)
Balance, beginning of period	$	9,709		$	734		$	(1,825	)	$	(2,416	)	$	6,202
OCI before reclassifications	(1,437		)	(287		)	107			(1		)	(1,618		)
Deferred income tax benefit (expense)	377			103			100			—			580
OCI before reclassifications, net of income tax	8,649			550			(1,618		)	(2,417		)	5,164
Amounts reclassified from AOCI	95			(224		)	—			54			(75		)
Deferred income tax benefit (expense)	(40		)	70			—			(19		)	11
Amounts reclassified from AOCI, net of income tax	55			(154		)	—			35			(64		)
Balance, end of period	$	8,704		$	396		$	(1,618	)	$	(2,382	)	$	5,100

	Nine Months   Ended   September 30, 2014
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)			Unrealized Gains (Losses) on Derivatives			Foreign Currency Translation Adjustments			Defined Benefit Plans Adjustment			Total
	(In millions)
Balance, beginning of period	$	8,183		$	231		$	(1,659	)	$	(1,651	)	$	5,104
OCI before reclassifications	9,126			614			(486		)	34			9,288
Deferred income tax benefit (expense)	(2,851		)	(210		)	(71		)	(11		)	(3,143		)
OCI before reclassifications, net of income tax	14,458			635			(2,216		)	(1,628		)	11,249
Amounts reclassified from AOCI	(563		)	337			77			136			(13		)
Deferred income tax benefit (expense)	176			(114		)	(27		)	(45		)	(10		)
Amounts reclassified from AOCI, net of income tax	(387		)	223			50			91			(23		)
Sale of subsidiary (2)	(320		)	—			6			—			(314		)
Deferred income tax benefit (expense)	80			—			—			—			80
Sale of subsidiary, net of income tax	(240		)	—			6			—			(234		)
Balance, end of period	$	13,831		$	858		$	(2,160	)	$	(1,537	)	$	10,992

	Nine Months   Ended   September 30, 2013
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)			Unrealized Gains (Losses) on Derivatives			Foreign Currency Translation Adjustments			Defined Benefit Plans Adjustment			Total
	(In millions)
Balance, beginning of period	$	13,590		$	829		$	(533	)	$	(2,489	)	$	11,397
OCI before reclassifications	(6,931		)	(660		)	(1,123		)	1			(8,713		)
Deferred income tax benefit (expense)	2,296			221			38			—			2,555
OCI before reclassifications, net of income tax	8,955			390			(1,618		)	(2,488		)	5,239
Amounts reclassified from AOCI	(374		)	10			—			161			(203		)
Deferred income tax benefit (expense)	123			(4		)	—			(55		)	64
Amounts reclassified from AOCI, net of income tax	(251		)	6			—			106			(139		)
Balance, end of period	$	8,704		$	396		$	(1,618	)	$	(2,382	)	$	5,100

__________________

(1) See Note 6 for information on offsets to investments related to insurance liabilities, DAC and VOBA and the policyholder dividend obligation.

(2) See Note 3.

Information regarding amounts reclassified out of each component of AOCI was as follows:

AOCI Components	Amounts Reclassified from AOCI												Statement of Operations and Comprehensive Income (Loss) Location
	Three Months   Ended   September 30,						Nine Months   Ended   September 30,
	2014			2013			2014			2013
	(In millions)
Net unrealized investment gains (losses):
Net unrealized investment gains (losses)	$	181		$	(96	)	$	375		$	365		Net investment gains (losses)
Net unrealized investment gains (losses)	14			22			99			65			Net investment income
Net unrealized investment gains (losses)	33			—			105			—			Net derivative gains (losses)
OTTI	(14		)	(21		)	(16		)	(56		)	Net investment gains (losses)
Net unrealized investment gains (losses), before income tax	214			(95		)	563			374
Income tax (expense) benefit	(62		)	40			(176		)	(123		)
Net unrealized investment gains (losses), net of income tax	152			(55		)	387			251
Unrealized gains (losses) on derivatives - cash flow hedges:
Interest rate swaps	1			3			28			17			Net derivative gains (losses)
Interest rate swaps	3			2			7			6			Net investment income
Interest rate forwards	(10		)	2			(8		)	8			Net derivative gains (losses)
Interest rate forwards	—			1			2			2			Net investment income
Interest rate forwards	1			(1		)	2			(2		)	Other expenses
Foreign currency swaps	(466		)	216			(368		)	(41		)	Net derivative gains (losses)
Foreign currency swaps	(1		)	—			(2		)	(2		)	Net investment income
Foreign currency swaps	—			1			1			1			Other expenses
Credit forwards	1			—			1			1			Net investment income
Gains (losses) on cash flow hedges, before income tax	(471		)	224			(337		)	(10		)
Income tax (expense) benefit	158			(70		)	114			4
Gains (losses) on cash flow hedges, net of income tax	(313		)	154			(223		)	(6		)
Foreign translation adjustment	—			—			(77		)	—			Net investment gains (losses)
Income tax (expense) benefit	—			—			27			—
Foreign translation adjustment, net of income tax	—			—			(50		)	—
Defined benefit plans adjustment: (1)
Amortization of net actuarial gains (losses)	(45		)	(71		)	(136		)	(212		)
Amortization of prior service (costs) credit	—			17			—			51
Amortization of defined benefit plan items, before income tax	(45		)	(54		)	(136		)	(161		)
Income tax (expense) benefit	13			19			45			55
Amortization of defined benefit plan items, net of income tax	(32		)	(35		)	(91		)	(106		)
Total reclassifications, net of income tax	$	(193	)	$	64		$	23		$	139

__________________

(1) These AOCI components are included in the computation of net periodic benefit costs. See Note 12.