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 of Reorganization”). 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:



	June 30, 2015			December 31, 2014
	(In millions)
Closed Block Liabilities
Future policy benefits	$	41,367		$	41,667
Other policy-related balances	283			265
Policyholder dividends payable	485			461
Policyholder dividend obligation	2,328			3,155
Current income tax payable	4			1
Other liabilities	570			646
Total closed block liabilities	45,037			46,195
Assets Designated to the Closed Block
Investments:
Fixed maturity securities available-for-sale, at estimated fair value	27,799			29,199
Equity securities available-for-sale, at estimated fair value	120			91
Mortgage loans	6,202			6,076
Policy loans	4,645			4,646
Real estate and real estate joint ventures	649			666
Other invested assets	1,061			1,065
Total investments	40,476			41,743
Cash and cash equivalents	395			227
Accrued investment income	464			477
Premiums, reinsurance and other receivables	93			67
Deferred income tax assets	269			289
Total assets designated to the closed block	41,697			42,803
Excess of closed block liabilities over assets designated to the closed block	3,340			3,392
Amounts included in accumulated other comprehensive income (loss) (“AOCI”)
Unrealized investment gains (losses), net of income tax	1,720			2,291
Unrealized gains (losses) on derivatives, net of income tax	45			28
Allocated to policyholder dividend obligation, net of income tax	(1,513		)	(2,051		)
Total amounts included in AOCI	252			268
Maximum future earnings to be recognized from closed block assets and liabilities	$	3,592		$	3,660

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



	Six Months Ended June 30, 2015			Year Ended December 31, 2014
	(In millions)
Balance, beginning of period	$	3,155		$	1,771
Change in unrealized investment and derivative gains (losses)	(827		)	1,384
Balance, end of period	$	2,328		$	3,155

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015		2014
	(In millions)
Revenues
Premiums	$	457		$	473		$	887	$	919
Net investment income	498			522			1,013		1,052
Net investment gains (losses)	2			8			1		8
Net derivative gains (losses)	(13		)	(3		)	12		(4		)
Total revenues	944			1,000			1,913		1,975
Expenses
Policyholder benefits and claims	643			645			1,251		1,269
Policyholder dividends	244			243			484		476
Other expenses	36			38			73		79
Total expenses	923			926			1,808		1,824
Revenues, net of expenses before provision for income tax expense (benefit)	21			74			105		151
Provision for income tax expense (benefit)	8			26			37		53
Revenues, net of expenses and provision for income tax expense (benefit)	$	13		$	48		$	68	$	98

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 of Reorganization. MLIC also charges the closed block for expenses of maintaining the policies included in the closed block.