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Equity (Tables)
 12 Months Ended
Dec. 31, 2014
Equity [Abstract]  
Schedule of Dividends Paid, Preferred Stock
Information on the declaration, record and payment dates, as well as per share and aggregate dividend amounts, for the Series A and Series B preferred shares was as follows:
 
 
 
 
 
 
Dividend
Declaration Date
 
Record Date
 
Payment Date
 
Series A
Per Share
 
Series A
Aggregate
 
Series B
Per Share
 
Series B
Aggregate
 
 
 
 
 
 
(In millions, except per share data)
November 17, 2014
 
November 30, 2014
 
December 15, 2014
 
$
0.253

 
$
7

 
$
0.406

 
$
24

August 15, 2014
 
August 31, 2014
 
September 15, 2014
 
$
0.256

 
6

 
$
0.406

 
24

May 15, 2014
 
May 31, 2014
 
June 16, 2014
 
$
0.256

 
7

 
$
0.406

 
24

March 5, 2014
 
February 28, 2014
 
March 17, 2014
 
$
0.250

 
6

 
$
0.406

 
24

 
 
 
 
 
 
 
 
$
26

 
 
 
$
96

November 15, 2013
 
November 30, 2013
 
December 16, 2013
 
$
0.253

 
$
7

 
$
0.406

 
$
24

August 15, 2013
 
August 31, 2013
 
September 16, 2013
 
$
0.256

 
6

 
$
0.406

 
24

May 15, 2013
 
May 31, 2013
 
June 17, 2013
 
$
0.256

 
7

 
$
0.406

 
24

March 5, 2013
 
February 28, 2013
 
March 15, 2013
 
$
0.250

 
6

 
$
0.406

 
24

 
 
 
 
 
 
 
 
$
26

 
 
 
$
96

November 15, 2012
 
November 30, 2012
 
December 17, 2012
 
$
0.253

 
$
7

 
$
0.406

 
$
24

August 15, 2012
 
August 31, 2012
 
September 17, 2012
 
$
0.256

 
6

 
$
0.406

 
24

May 15, 2012
 
May 31, 2012
 
June 15, 2012
 
$
0.256

 
7

 
$
0.406

 
24

March 5, 2012
 
February 29, 2012
 
March 15, 2012
 
$
0.253

 
6

 
$
0.406

 
24

 
 
 
 
 
 
 
 
$
26

 
 
 
$
96
Schedule of Dividends Paid, Common Stock
The table below presents declaration, record and payment dates, as well as per share and aggregate dividend amounts, for common stock:
 
 
 
 
 
 
Dividend
 Declaration Date
 
 Record Date
 
 Payment Date
 
Per Share
 
Aggregate

 

 

 
(In millions, except per share data)
October 28, 2014
 
November 7, 2014
 
December 12, 2014
 
$
0.350

 
$
398

July 7, 2014
 
August 8, 2014
 
September 12, 2014
 
$
0.350

 
395

April 22, 2014
 
May 9, 2014
 
June 13, 2014
 
$
0.350

 
395

January 6, 2014
 
February 6, 2014
 
March 13, 2014
 
$
0.275

 
311

 
 
 
 
 
 
 
 
$
1,499

 
 
 
 
 
 
 
 
 
October 22, 2013
 
November 8, 2013
 
December 13, 2013
 
$
0.275

 
$
311

June 25, 2013
 
August 9, 2013
 
September 13, 2013
 
$
0.275

 
303

April 23, 2013
 
May 9, 2013
 
June 13, 2013
 
$
0.275

 
302

January 4, 2013
 
February 6, 2013
 
March 13, 2013
 
$
0.185

 
203

 
 
 
 
 
 
 
 
$
1,119

 
 
 
 
 
 
 
 
 
October 23, 2012
 
November 9, 2012
 
December 14, 2012
 
$
0.740

 
$
811
Components of compensation expense related to stock based compensation
The components of compensation expense related to stock-based compensation includes compensation expense related to Phantom Stock-Based Awards, and excludes the insignificant compensation expense related to the 2005 Directors Stock Plan. Those components were:
 
Years Ended December 31,
 
2014
 
2013
 
2012
 
(In millions)
Stock Options and Unit Options
$
29

 
$
39

 
$
61

Performance Shares and Units (1)
111

 
91

 
80

Restricted Stock Units and Restricted Units
52

 
45

 
27

Total compensation expense
$
192

 
$
175

 
$
168

Income tax benefit
$
67

 
$
61

 
$
59

______________
(1)
Performance Shares expected to vest and the related compensation expenses may be further adjusted by the performance factor most likely to be achieved, as estimated by management, at the end of the performance period.
Total unrecognized compensation expense related to stock based compensation and the expected weighted average period over which the expenses will be recognized
The following table presents the total unrecognized compensation expense related to stock-based compensation and the expected weighted average period over which these expenses will be recognized at:
 
December 31, 2014
 
Expense
 
Weighted Average
Period
 
(In millions)
 
(Years)
Stock Options
$
12

 
1.54
Performance Shares
$
47

 
1.58
Restricted Stock Units
$
56

 
1.70
Activity related to Stock Options
A summary of the activity related to Stock Options was as follows:
 
Shares
Under
Option
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Term
 
Aggregate
Intrinsic
Value (1)
 
 
 
 

 
(Years)
 
(In millions)
Outstanding at January 1, 2014
29,751,376

 
$
42.56

 
5.19
 
$
379

Granted
824,323

 
$
50.53

 
 
 
 
Exercised
(4,197,329
)
 
$
37.12

 
 
 
 
Expired
(136,031
)
 
$
57.22

 
 
 
 
Forfeited
(163,412
)
 
$
40.25

 
 
 
 
Outstanding at December 31, 2014
26,078,927

 
$
43.63

 
4.67
 
$
312

Vested and expected to vest at December 31, 2014
25,973,890

 
$
43.65

 
4.59
 
$
311

Exercisable at December 31, 2014
22,564,811

 
$
44.15

 
4.17
 
$
264

______________
(1)
The aggregate intrinsic value was computed using the closing Share price on December 31, 2014 of $54.09 and December 31, 2013 of $53.92, as applicable.
Weighted average assumptions used to determine the fair value of Stock Options issued
The following table presents the weighted average assumptions, with the exception of risk-free rate, which is expressed as a range, used to determine the fair value of Stock Options issued:
 
Years Ended December 31,
 
2014
 
2013
 
2012
Dividend yield
2.18%
 
2.13%
 
1.95%
Risk-free rate of return
0.12%-5.07%
 
0.16%-3.89%
 
0.21%-4.17%
Expected volatility
33.26%
 
32.98%
 
35.59%
Exercise multiple
1.45
 
1.51
 
1.58
Post-vesting termination rate
2.93%
 
3.16%
 
3.14%
Contractual term (years)
10
 
10
 
10
Expected life (years)
6
 
7
 
7
Weighted average exercise price of stock options granted
$
50.53

 
$
35.96

 
$
37.91

Weighted average fair value of stock options granted
$
13.84

 
$
9.88

 
$
11.33
Stock Option exercise activity
The following table presents a summary of Stock Option exercise activity:
 
Years Ended December 31,
 
2014
 
2013
 
2012
 
(In millions)
Total intrinsic value of stock options exercised
$
67

 
$
79

 
$
29

Cash received from exercise of stock options
$
156

 
$
202

 
$
109

Income tax benefit realized from stock options exercised
$
24

 
$
28

 
$
10
Performance Share and Restricted Stock Unit Activity
The following table presents a summary of Performance Share and Restricted Stock Unit activity:
 
Performance Shares
 
Restricted Stock Units
 
Shares
 
Weighted
Average
Grant Date
Fair Value
 
Units
 
Weighted
Average
Grant Date
Fair Value
Outstanding at January 1, 2014
5,074,140

 
$
42.86

 
3,328,516

 
$
33.35

Granted
1,183,207

 
$
50.58

 
1,432,389

 
$
46.20

Forfeited
(194,263
)
 
$
45.19

 
7,795

 
$
35.13

Payable (1)
(1,551,570
)
 
$
42.79

 
(1,264,470
)
 
$
36.68

Outstanding at December 31, 2014
4,511,514

 
$
44.85

 
3,504,230

 
$
38.48

Vested and expected to vest at December 31, 2014
4,477,097

 
$
44.54

 
3,153,807

 
$
38.49

______________
(1)
Includes both Shares paid and Shares deferred for later payment.
Liability Award Unit Activity
The following table presents a summary of Liability Awards activity:
 
Unit
Options
 
Restricted
Units
 
Performance
Units
Outstanding at January 1, 2014
1,221,626

 
979,522

 
531,888

Granted
40,181

 
307,873

 
209,646

Exercised
(123,293
)
 
—

 
—

Forfeited
(31,518
)
 
(83,537
)
 
(20,517
)
Paid
—

 
(403,818
)
 
(127,094
)
Outstanding at December 31, 2014
1,106,996

 
800,040

 
593,923

Vested and expected to vest at December 31, 2014
996,296

 
720,036

 
534,531
Schedules of statutory net income, capital and surplus and reserve strengthening by subsidiary
The following table summarizes the two schedules of strengthening:

 
2013 Schedule
 
2014 Schedule
 
Combined Schedule
 
(In millions)
2013 Strengthening
$300
 
N/A
 
$300
2014 Strengthening
$200
 
$100
 
$300
2015 Strengthening (1)
$100
 
$100
 
$200
2016 Strengthening (1)
N/A
 
$100
 
$100
______________
(1)
The actual 2015 and 2016 amounts may differ from those originally estimated in 2013 and 2014 due to changes in economic conditions, regulations, or policyholder behavior.
Statutory capital and surplus was as follows at:
 
 
December 31,
Company
 
2014
 
2013
 
 
(In millions)
Metropolitan Life Insurance Company
 
$
12,008

 
$
12,428

American Life Insurance Company
 
$
3,362

 
$
2,711

MetLife Insurance Company USA (1)
 
$
6,042

 
$
3,566

Metropolitan Property and Casualty Insurance Company
 
$
2,388

 
$
2,225

Metropolitan Tower Life Insurance Company
 
$
767

 
$
735


______________
(1)
See Note 8 for a discussion on the Mergers.
Statutory net income (loss) was as follows:
 
 
 
 
Years Ended December 31,
Company
 
State of Domicile
 
2014
 
2013
 
2012
 
 
 
 
(In millions)
Metropolitan Life Insurance Company
 
New York
 
$
1,487

 
$
369

 
$
1,320

American Life Insurance Company
 
Delaware
 
$
(36
)
 
$
631

 
$
317

MetLife Insurance Company USA (1)
 
Delaware
 
$
1,543

 
$
3,358

 
$
848

Metropolitan Property and Casualty Insurance Company
 
Rhode Island
 
$
291

 
$
282

 
$
235

Metropolitan Tower Life Insurance Company
 
Delaware
 
$
51

 
$
52

 
$
61


______________
(1)
Statutory net income (loss) for the year ended December 31, 2012 is as filed with the Connecticut Insurance Department by MICC and does not reflect the results of the Mergers. See Note 8 for a discussion on the Mergers.
Dividend Payment Restrictions
The table below sets forth the dividends permitted to be paid by MetLife, Inc.’s primary insurance subsidiaries without insurance regulatory approval and dividends paid:
 
 
2015
 
2014
 
2013
Company
 
Permitted Without
Approval (1)
 
Paid (2)
 
Paid (2)
 
 
(In millions)
Metropolitan Life Insurance Company
 
$
1,200

 
$
821

(3)
 
$
1,428

 
American Life Insurance Company
 
$
—

 
$
—

 
 
$
—

 
MetLife Insurance Company USA (4)
 
$
3,056

 
$
155

(5)
 
$
1,000

(6)
Metropolitan Property and Casualty Insurance Company
 
$
239

 
$
200


 
$
100

 
Metropolitan Tower Life Insurance Company
 
$
102

 
$
73

 
 
$
109

(7)
MetLife Investors Insurance Company (4)
 
N/A

 
N/A

 
 
$
129

 
______________
(1)
Reflects dividend amounts that may be paid during 2015 without prior regulatory approval. However, because dividend tests may be based on dividends previously paid over rolling 12-month periods, if paid before a specified date during 2015, some or all of such dividends may require regulatory approval.
(2)
Reflects all amounts paid, including those requiring regulatory approval.
(3)
During December 2014, MLIC distributed shares of an affiliate to MetLife, Inc. as an in-kind dividend of $113 million.
(4)
See Note 8 for a discussion of the Mergers.
(5)
Prior to the Mergers, Exeter paid dividends of $155 million on its preferred stock. In August 2014, MICC redeemed for $1.4 billion and retired 4,595,317 shares of its common stock owned by MetLife Investors Group LLC (“MLIG”). Following the redemption, in August 2014, MLIG paid a dividend of $1.4 billion to MetLife, Inc. MetLife USA did not pay dividends in 2014.
(6)
During the year ended December 31, 2013, MICC paid dividends of $1.0 billion.
(7)
During October 2013, Metropolitan Tower Life Insurance Company (“MTL”) distributed shares of an affiliate to MetLife, Inc. as an in-kind dividend of $32 million. Also during October 2013, MTL paid a dividend to MetLife, Inc. in the amount of $77 million in cash, which represented its dividend capacity without regulatory approval at December 31, 2013. Regulatory approval for these dividends was obtained due to the amount and timing of the payments.
Components of 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:
 
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, 2011
$
7,689

 
$
985

 
$
(648
)
 
$
(1,943
)
 
$
6,083

OCI before reclassifications
9,321

 
(262
)
 
(134
)
 
(996
)
 
7,929

Deferred income tax benefit (expense)
(3,457
)
 
92

 
249

 
350

 
(2,766
)
OCI before reclassifications, net of income tax
13,553

 
815

 
(533
)
 
(2,589
)
 
11,246

Amounts reclassified from AOCI
58

 
24

 
—

 
154

 
236

Deferred income tax benefit (expense)
(23
)
 
(8
)
 
—

 
(54
)
 
(85
)
Amounts reclassified from AOCI, net of income tax
35

 
16

 
—

 
100

 
151

Balance at December 31, 2012
13,588

 
831

 
(533
)
 
(2,489
)
 
11,397

OCI before reclassifications
(8,487
)
 
(937
)
 
(937
)
 
1,078

 
(9,283
)
Deferred income tax benefit (expense)
2,807

 
312

 
(189
)
 
(379
)
 
2,551

OCI before reclassifications, net of income tax
7,908

 
206

 
(1,659
)
 
(1,790
)
 
4,665

Amounts reclassified from AOCI
411

 
36

 
—

 
214

 
661

Deferred income tax benefit (expense)
(136
)
 
(11
)
 
—

 
(75
)
 
(222
)
Amounts reclassified from AOCI, net of income tax
275

 
25

 
—

 
139

 
439

Balance at December 31, 2013
8,183

 
231

 
(1,659
)
 
(1,651
)
 
5,104

OCI before reclassifications
11,197

 
669

 
(1,492
)
 
(1,150
)
 
9,224

Deferred income tax benefit (expense)
(3,419
)
 
(261
)
 
(208
)
 
401

 
(3,487
)
OCI before reclassifications, net of income tax
15,961

 
639

 
(3,359
)
 
(2,400
)
 
10,841

Amounts reclassified from AOCI
(811
)
 
717

 
77

 
180

 
163

Deferred income tax benefit (expense)
249

 
(280
)
 
(27
)
 
(63
)
 
(121
)
Amounts reclassified from AOCI, net of income tax
(562
)
 
437

 
50

 
117

 
42

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 at December 31, 2014
$
15,159

 
$
1,076

 
$
(3,303
)
 
$
(2,283
)
 
$
10,649

__________________
(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 3
Reclassification out of Accumulated Other Comprehensive Income (Loss)
Information regarding amounts reclassified out of each component of AOCI, was as follows:
AOCI Components
 
Amounts Reclassified from AOCI
 
Consolidated Statement of Operations and Comprehensive Income (Loss) Locations
 
 
Years Ended December 31,
 
 
 
 
2014
 
2013
 
2012
 
 
 
 
(In millions)
 
 
Net unrealized investment gains (losses):
 
 
 
 
 
 
 
 
Net unrealized investment gains (losses)
 
$
603

 
$
344

 
$
(5
)
 
Net investment gains (losses)
Net unrealized investment gains (losses)
 
67

 
93

 
73

 
Net investment income
Net unrealized investment gains (losses)
 
141

 
(26
)
 
(10
)
 
Net derivative gains (losses)
Net unrealized investment gains (losses), before income tax
 
811

 
411

 
58

 
 
Income tax (expense) benefit
 
(249
)
 
(136
)
 
(23
)
 
 
Net unrealized investment gains (losses), net of income tax
 
$
562

 
$
275

 
$
35

 
 
Unrealized gains (losses) on derivatives - cash flow hedges:
 
 
 
 
 
 
 
 
Interest rate swaps
 
$
42

 
$
20

 
$
1

 
Net derivative gains (losses)
Interest rate swaps
 
9

 
8

 
4

 
Net investment income
Interest rate swaps
 
—

 
—

 
(3
)
 
Other expenses
Interest rate forwards
 
(7
)
 
10

 
1

 
Net derivative gains (losses)
Interest rate forwards
 
4

 
3

 
2

 
Net investment income
Interest rate forwards
 
2

 
(1
)
 
(1
)
 
Other expenses
Foreign currency swaps
 
(768
)
 
(3
)
 
23

 
Net derivative gains (losses)
Foreign currency swaps
 
(2
)
 
(3
)
 
(5
)
 
Net investment income
Foreign currency swaps
 
2

 
1

 
1

 
Other expenses
Credit forwards
 
1

 
1

 
1

 
Net investment income
Gains (losses) on cash flow hedges, before income tax
 
(717
)
 
36

 
24

 
 
Income tax (expense) benefit
 
280

 
(11
)
 
(8
)
 
 
Gains (losses) on cash flow hedges, net of income tax
 
(437
)
 
25

 
16

 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustment
 
(77
)
 
—

 
—

 
Net investment gain (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)
 
$
(180
)
 
$
283

 
$
252

 
 
Amortization of prior service (costs) credit
 
—

 
(69
)
 
(98
)
 
 
Amortization of defined benefit plan items, before
 income tax
 
(180
)
 
214

 
154

 
 
Income tax (expense) benefit
 
63

 
(75
)
 
(54
)
 
 
Amortization of defined benefit plan items, net of income tax
 
$
(117
)
 
$
139

 
$
100

 
 
Total reclassifications, net of income tax
 
$
(42
)
 
$
439

 
$
151

 
 
__________________
(1)
These AOCI components are included in the computation of net periodic benefit costs. See Note 18.