Investments

6 Months Ended

Jun. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Investments

5. 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. 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”).

	June 30, 2015											December 31, 2014
	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	$	94,375	$	7,977	$	1,206	$	—		$	101,146	$	96,235	$	10,343	$	624	$	—		$	105,954
Foreign corporate	56,284		3,882		1,068		—			59,098		57,695		4,651		664		7			61,675
U.S. Treasury and agency	53,083		4,854		399		—			57,538		54,654		6,892		30		—			61,516
Foreign government	46,004		5,206		153		—			51,057		47,327		5,500		161		—			52,666
RMBS	40,188		1,719		345		44			41,518		38,064		2,102		214		106			39,846
State and political subdivision	13,530		1,735		101		—			15,164		12,922		2,291		26		—			15,187
CMBS (1)	11,472		453		84		(1		)	11,842		13,762		615		46		(1		)	14,332
ABS	13,897		203		103		7			13,990		14,121		240		112		—			14,249
Total fixed maturity securities	$	328,833	$	26,029	$	3,459	$	50		$	351,353	$	334,780	$	32,634	$	1,877	$	112		$	365,425
Equity securities
Common stock	$	2,058	$	558	$	27	$	—		$	2,589	$	1,990	$	554	$	28	$	—		$	2,516
Non-redeemable preferred stock	1,059		75		46		—			1,088		1,086		68		39		—			1,115
Total equity securities	$	3,117	$	633	$	73	$	—		$	3,677	$	3,076	$	622	$	67	$	—		$	3,631

__________________

(1) The noncredit loss component of other-than-temporary-impairment (“OTTI”) losses for CMBS was in an unrealized gain position of $1 million at both June 30, 2015 and December 31, 2014, 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 $84 million and $64 million with unrealized gains (losses) of $31 million and $28 million at June 30, 2015 and December 31, 2014, 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 June 30, 2015:

	Due in One Year or Less		Due After One Year Through Five Years		Due After Five Years Through Ten Years		Due After Ten Years		Structured Securities		Total Fixed Maturity Securities
	(In millions)
Amortized cost	$	12,889	$	71,122	$	72,803	$	106,462	$	65,557	$	328,833
Estimated fair value	$	13,015	$	74,685	$	77,611	$	118,692	$	67,350	$	351,353

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. Structured securities (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.

	June 30, 2015								December 31, 2014
	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	$	19,772	$	944	$	2,353	$	262	$	11,389	$	331	$	4,658	$	293
Foreign corporate	12,921		871		1,726		197		9,410		505		2,074		166
U.S. Treasury and agency	9,657		395		301		4		8,927		12		1,314		18
Foreign government	3,025		91		435		62		1,085		80		630		81
RMBS	12,298		199		1,767		190		4,180		92		2,534		228
State and political subdivision	1,752		78		101		23		83		1		297		25
CMBS	2,553		61		413		22		1,268		23		934		22
ABS	5,068		68		1,463		42		4,456		57		1,440		55
Total fixed maturity securities	$	67,046	$	2,707	$	8,559	$	802	$	40,798	$	1,101	$	13,881	$	888
Equity securities
Common stock	$	191	$	27	$	3	$	—	$	111	$	28	$	1	$	—
Non-redeemable preferred stock	84		3		185		43		67		2		192		37
Total equity securities	$	275	$	30	$	188	$	43	$	178	$	30	$	193	$	37
Total number of securities in an unrealized loss position	4,916				1,060				3,153				1,435

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 2014 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 concluded that these securities were not other-than-temporarily impaired at June 30, 2015. Future OTTI will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), 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 increased $1.5 billion during the six months endedJune 30, 2015 to $3.5 billion. The increase in gross unrealized losses for the six months endedJune 30, 2015 was primarily attributable to an increase in interest rates, and to a lesser extent, widening credit spreads.

At June 30, 2015, $275 million of the total $3.5 billion of gross unrealized losses were from 63 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 $275 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, $216 million, or 79%, were related to gross unrealized losses on 35 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 $275 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, $59 million, or 21%, were related to gross unrealized losses on 28 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), state and political subdivision securities (primarily tax-exempt revenue bonds) and foreign corporate securities (primarily consumer services industry securities) 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 valuations of residential real estate supporting non-agency RMBS. Management evaluates non-agency RMBS 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; and evaluates foreign corporate and state and political subdivision securities based on factors such as expected cash flows and the financial condition and near-term and long-term prospects of the issuers.

Equity Securities

Gross unrealized losses on equity securities increased $6 million during the six months endedJune 30, 2015 to $73 million. Of the $73 million, $30 million were from eight securities with gross unrealized losses of 20% or more of cost for 12 months or greater. Of the $30 million, 57% were from securities rated A or better, and all were from financial services industry investment grade non-redeemable preferred stock securities.

Mortgage Loans

Mortgage Loans by Portfolio Segment

Mortgage loans are summarized as follows at:

	June 30, 2015					December 31, 2014
	Carrying Value			% of Total		Carrying Value			% of Total
	(In millions)					(In millions)
Mortgage loans:
Commercial	$	42,953		67.1	%	$	41,088		68.3	%
Agricultural	12,498			19.5		12,378			20.6
Residential	8,273			12.9		6,369			10.6
Subtotal (1)	63,724			99.5		59,835			99.5
Valuation allowances	(325		)	(0.5	)	(305		)	(0.5	)
Subtotal mortgage loans, net	63,399			99.0		59,530			99.0
Residential — fair value option (“FVO”)	345			0.6		308			0.5
Commercial mortgage loans held by CSEs — FVO	266			0.4		280			0.5
Total mortgage loans, net	$	64,010		100.0	%	$	60,118		100.0	%

__________________

(1) Purchases of mortgage loans were $785 million and $2.2 billion for the three months and six months endedJune 30, 2015, respectively. Purchases of mortgage loans were $818 million and $1.4 billion for the three months and six months endedJune 30, 2014, respectively.

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

Information on commercial, agricultural and residential mortgage loans is presented in the tables below. Information on residential - FVO and commercial mortgage loans held by CSEs - FVO is presented in Note 7. The Company elects the FVO for certain mortgage loans and related long-term debt that are managed on a total return basis.

Mortgage Loans, Valuation Allowance and Impaired Loans by Portfolio Segment

Mortgage loans by portfolio segment, by method of evaluation of credit loss, impaired mortgage loans including those modified in a troubled debt restructuring, and the related valuation allowances, were as follows at:

	Evaluated Individually for Credit Losses										Evaluated Collectively for Credit Losses				Impaired Loans
	Impaired Loans with a Valuation Allowance						Impaired Loans without a Valuation Allowance
	Unpaid Principal Balance		Recorded Investment		Valuation Allowances		Unpaid Principal Balance		Recorded Investment		Recorded Investment		Valuation Allowances		Carrying Value
	(In millions)
June 30, 2015
Commercial	$	70	$	70	$	18	$	83	$	83	$	42,800	$	210	$	135
Agricultural	51		48		3		16		16		12,434		38		61
Residential	—		—		—		91		83		8,190		56		83
Total	$	121	$	118	$	21	$	190	$	182	$	63,424	$	304	$	279
December 31, 2014
Commercial	$	75	$	75	$	24	$	101	$	100	$	40,913	$	200	$	151
Agricultural	51		48		2		14		13		12,317		37		59
Residential	—		—		—		40		37		6,332		42		37
Total	$	126	$	123	$	26	$	155	$	150	$	59,562	$	279	$	247

The average recorded investment for impaired commercial, agricultural and residential mortgage loans was $160 million, $64 million and $70 million, respectively, for the three months endedJune 30, 2015; and $165 million, $63 million and $59 million, respectively, for the six months endedJune 30, 2015.

The average recorded investment for impaired commercial, agricultural and residential mortgage loans was $462 million, $88 million and $9 million, respectively, for the three months endedJune 30, 2014; and $476 million, $92 million and $12 million, respectively, for the six months endedJune 30, 2014.

Valuation Allowance Rollforward by Portfolio Segment

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

	Six Months   Ended   June 30,
	2015										2014
	Commercial		Agricultural		Residential			Total			Commercial			Agricultural			Residential			Total
	(In millions)
Balance, beginning of period	$	224	$	39	$	42		$	305		$	258		$	44		$	20		$	322
Provision (release)	4		2		23			29			(4		)	(2		)	3			(3		)
Charge-offs, net of recoveries	—		—		(9		)	(9		)	(24		)	—			(1		)	(25		)
Balance, end of period	$	228	$	41	$	56		$	325		$	230		$	42		$	22		$	294

Credit Quality of Commercial Mortgage Loans

The credit quality of commercial mortgage loans was as follows 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)
June 30, 2015
Loan-to-value ratios
Less than 65%	$	35,710	$	1,216	$	658	$	37,584	87.5	%	$	39,102	87.9	%
65% to 75%	3,911		349		63		4,323		10.1		4,345		9.8
76% to 80%	133		—		8		141		0.3		148		0.3
Greater than 80%	541		259		105		905		2.1		904		2.0
Total	$	40,295	$	1,824	$	834	$	42,953	100.0	%	$	44,499	100.0	%
December 31, 2014
Loan-to-value ratios
Less than 65%	$	33,933	$	1,105	$	1,101	$	36,139	88.0	%	$	38,166	88.4	%
65% to 75%	3,306		405		87		3,798		9.2		3,873		9.0
76% to 80%	130		—		15		145		0.4		153		0.3
Greater than 80%	562		281		163		1,006		2.4		987		2.3
Total	$	37,931	$	1,791	$	1,366	$	41,088	100.0	%	$	43,179	100.0	%

Credit Quality of Agricultural Mortgage Loans

The credit quality of agricultural mortgage loans was as follows at:

	June 30, 2015				December 31, 2014
	Recorded Investment		% of Total		Recorded Investment		% of Total
	(In millions)				(In millions)
Loan-to-value ratios
Less than 65%	$	11,733	93.8	%	$	11,743	94.9	%
65% to 75%	625		5.0		533		4.3
76% to 80%	70		0.6		17		0.1
Greater than 80%	70		0.6		85		0.7
Total	$	12,498	100.0	%	$	12,378	100.0	%

The estimated fair value of agricultural mortgage loans was $12.9 billion and $12.8 billion at June 30, 2015 and December 31, 2014, respectively.

Credit Quality of Residential Mortgage Loans

The credit quality of residential mortgage loans was as follows at:

	June 30, 2015				December 31, 2014
	Recorded Investment		% of Total		Recorded Investment		% of Total
	(In millions)				(In millions)
Performance indicators
Performing	$	7,752	93.7	%	$	6,196	97.3	%
Nonperforming	521		6.3		173		2.7
Total	$	8,273	100.0	%	$	6,369	100.0	%

The estimated fair value of residential mortgage loans was $8.6 billion and $6.6 billion at June 30, 2015 and December 31, 2014, 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 June 30, 2015 and December 31, 2014. The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days. The past due and accrual status of mortgage loans at recorded investment, prior to valuation allowances, by portfolio segment, were as follows at:

	Past Due				Nonaccrual Status
	June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014
	(In millions)
Commercial	$	10	$	10	$	70	$	75
Agricultural	33		1		46		41
Residential	521		173		512		163
Total	$	564	$	184	$	628	$	279

Mortgage Loans Modified in a Troubled Debt Restructuring

For a small portion of the mortgage loan portfolio, classified as troubled debt restructurings, concessions are granted related to borrowers experiencing financial difficulties. Generally, the types of concessions include: reduction of the contractual interest rate, extension of the maturity date at an interest rate lower than current market interest rates, and/or a reduction of accrued interest. The amount, timing and extent of the concession granted is considered in determining any impairment or changes in the specific valuation allowance. During both thethree monthsand six months endedJune 30, 2015and2014, the Company did not have a significant amount of mortgage loans modified in a troubled debt restructuring.

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 $2.7 billion and $4.5 billion at June 30, 2015 and December 31, 2014, respectively.

Net Unrealized Investment Gains (Losses)

Unrealized investment gains (losses) on fixed maturity and equity securities AFS and the effect on DAC, VOBA, deferred sales inducements (“DSI”), future policy benefits and the policyholder dividend obligation, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI.

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

	June 30, 2015			December 31, 2014
	(In millions)
Fixed maturity securities	$	22,167		$	30,367
Fixed maturity securities with noncredit OTTI losses in AOCI	(50		)	(112		)
Total fixed maturity securities	22,117			30,255
Equity securities	620			608
Derivatives	1,804			1,761
Other	192			149
Subtotal	24,733			32,773
Amounts allocated from:
Future policy benefits	(1,309		)	(2,886		)
DAC and VOBA related to noncredit OTTI losses recognized in AOCI	(4		)	(4		)
DAC, VOBA and DSI	(1,451		)	(1,946		)
Policyholder dividend obligation	(2,328		)	(3,155		)
Subtotal	(5,092		)	(7,991		)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	20			42
Deferred income tax benefit (expense)	(6,774		)	(8,556		)
Net unrealized investment gains (losses)	12,887			16,268
Net unrealized investment gains (losses) attributable to noncontrolling interests	(24		)	(33		)
Net unrealized investment gains (losses) attributable to MetLife, Inc.	$	12,863		$	16,235

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

	Six Months   Ended   June 30, 2015			Year   Ended   December 31, 2014
	(In millions)
Balance, beginning of period	$	(112	)	$	(218	)
Noncredit OTTI losses and subsequent changes recognized	12			17
Securities sold with previous noncredit OTTI loss	88			53
Subsequent changes in estimated fair value	(38		)	36
Balance, end of period	$	(50	)	$	(112	)

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

	Six Months   Ended   June 30, 2015
	(In millions)
Balance, beginning of period	$	16,235
Fixed maturity securities on which noncredit OTTI losses have been recognized	62
Unrealized investment gains (losses) during the period	(8,102		)
Unrealized investment gains (losses) relating to:
Future policy benefits	1,577
DAC and VOBA related to noncredit OTTI losses recognized in AOCI	—
DAC, VOBA and DSI	495
Policyholder dividend obligation	827
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	(22		)
Deferred income tax benefit (expense)	1,782
Net unrealized investment gains (losses)	12,854
Net unrealized investment gains (losses) attributable to noncontrolling interests	9
Balance, end of period	$	12,863
Change in net unrealized investment gains (losses)	$	(3,381	)
Change in net unrealized investment gains (losses) attributable to noncontrolling interests	9
Change in net unrealized investment gains (losses) attributable to MetLife, Inc.	$	(3,372	)

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 $20.2 billion and $20.3 billion at June 30, 2015 and December 31, 2014, 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 $25.3 billion and $25.5 billion at June 30, 2015 and December 31, 2014, respectively.

Securities Lending

The Company participates in a securities lending program whereby securities are loaned to third parties, primarily brokerage firms and commercial banks. The Company obtains collateral, usually cash, in an amount generally equal to 102% of the estimated fair value of the securities loaned at inception of the loan. The Company monitors the estimated fair value of the securities loaned on a daily basis with additional collateral obtained as necessary throughout the duration of the loan.

Elements of the securities lending program are presented below at:

	June 30, 2015		December 31, 2014
	(In millions)
Securities on loan: (1)
Amortized cost	$	28,043	$	26,989
Estimated fair value	$	29,853	$	30,269
Cash collateral on deposit from counterparties (2)	$	30,511	$	30,826
Security collateral on deposit from counterparties (3)	$	99	$	83
Reinvestment portfolio — estimated fair value	$	30,799	$	31,314

_________________

(1) Included within fixed maturity securities and short-term investments. At June 30, 2015, both amortized cost and estimated fair value also include $217 million, at estimated fair value, of securities which are not reflected in the consolidated financial statements.

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

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

The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at:

	June 30, 2015
	Remaining Tenor of Securities Lending Agreements
	Open (1)		1 Month or Less		1 to 6 Months		6 Months to 1 Year		Total		% of Total
	(In millions)
Cash collateral liability by loaned security type
U.S. Treasury and agency	$	10,610	$	8,731	$	6,847	$	881	$	27,069	88.7	%
Agency RMBS	—		170		1,760		—		1,930		6.4
Foreign government	5		974		218		—		1,197		3.9
U.S. corporate	—		276		—		—		276		0.9
Foreign corporate	6		33		—		—		39		0.1
Total	$	10,621	$	10,184	$	8,825	$	881	$	30,511	100.0	%

	December 31, 2014
	Remaining Tenor of Securities Lending Agreements
	Open (1)		1 Month or Less		1 to 6 Months		6 Months to 1 Year		Total		% of Total
	(In millions)
Cash collateral liability by loaned security type
U.S. Treasury and agency	$	10,371	$	10,423	$	5,239	$	—	$	26,033	84.5	%
Agency RMBS	—		482		2,572		—		3,054		9.9
Foreign government	30		1,034		81		—		1,145		3.7
U.S. corporate	125		182		—		—		307		1.0
Foreign corporate	175		112		—		—		287		0.9
Total	$	10,701	$	12,233	$	7,892	$	—	$	30,826	100.0	%

_________________

(1) The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral.

If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized under normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at June 30, 2015 was $10.3 billion, over 99% of which were U.S. Treasury and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement.

The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including agency RMBS, U.S. Treasury and agency, ABS, U.S. corporate, non-agency RMBS and foreign corporate securities) with over 60% invested in agency RMBS, U.S. Treasury and agency securities, short-term investments, or held in cash and cash equivalents. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company.

Repurchase Agreement Transactions

Commencing in the first quarter of 2015, the Company began participating in short-term repurchase agreements and reverse repurchase agreements with unaffiliated financial institutions. Under these agreements, the Company lends fixed maturity securities and contemporaneously borrows other fixed maturity securities (e.g., repurchase and reverse repurchase, respectively). The Company obtains cash collateral in an amount greater than or equal to 95% of the estimated fair value of the securities loaned, and pledges cash collateral in an amount generally equal to 98% of the estimated fair value of the borrowed securities at the inception of the transaction. The Company monitors the estimated fair value of the securities loaned and borrowed on a daily basis with additional collateral obtained as necessary throughout the duration of the transaction.

The Company accounted for these transactions as collateralized borrowing and lending. The amount of fixed maturity securities lent and borrowed, at estimated fair value, was $518 million and $506 million, respectively, at June 30, 2015. Securities loaned under such transactions may be sold or re-pledged by the transferee. Securities borrowed under such transactions may be re-pledged and are not reflected in the consolidated financial statements. The amount of borrowed securities which were re-pledged was $217 million, at estimated fair value, at June 30, 2015.

The Company has elected to offset amounts recognized as receivables and payables resulting from these transactions. The gross amounts of the receivables and payables related to these transactions at June 30, 2015 were both $499 million. After the effect of offsetting of $499 million, the net amount presented in the consolidated balance sheet at June 30, 2015 was a liability of less than $1 million. Amounts owed to and due from counterparties may be settled in cash or offset, in accordance with the agreements. Cash inflows and outflows for cash settlements are reported on the consolidated statements of cash flows. At June 30, 2015, all $499 million of payables from repurchase agreements had a remaining tenor of one to six months and were loans of U.S. and foreign corporate securities.

See Note 6 for information regarding the estimated fair value of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral.

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 all asset classes, except mortgage loans, which are presented at carrying value at:

	June 30, 2015		December 31, 2014
	(In millions)
Invested assets on deposit (regulatory deposits)	$	9,036	$	9,437
Invested assets held in trust (collateral financing arrangements and reinsurance agreements)	10,084		10,069
Invested assets pledged as collateral (1)	25,831		25,996
Total invested assets on deposit, held in trust and pledged as collateral	$	44,951	$	45,502

__________________

(1) The Company has pledged invested assets 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 2014 Annual Report), collateral financing arrangements (see Note 13 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report) and derivative transactions (see Note 6).

See “— Securities Lending” and “— Repurchase Agreement Transactions” for information regarding securities on loan and Note 4 for information regarding investments designated to the closed block.

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 June 30, 2015 and December 31, 2014. 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.

	June 30, 2015				December 31, 2014
	Total Assets		Total Liabilities		Total Assets		Total Liabilities
	(In millions)
MRSC (collateral financing arrangement (primarily securities)) (1)	$	3,469	$	—	$	3,471	$	—
Operating joint venture (2)	2,466		2,076		2,405		1,999
CSEs (assets (primarily loans) and liabilities (primarily debt)) (3)	282		136		297		155
Investments:
Other invested assets	58		—		59		—
FVO and trading securities	—		—		45		—
Other limited partnership interests	34		—		37		—
Real estate joint ventures	—		—		9		15
Total	$	6,309	$	2,212	$	6,323	$	2,169

__________________

(1) See Note 13 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report for a description of the MetLife Reinsurance Company of South Carolina (“MRSC”) collateral financing arrangement.

(2) 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.

(3) The Company consolidates entities 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 Company’s exposure was limited to that of its remaining investment in these entities of $126 million and $123 million at estimated fair value at June 30, 2015 and December 31, 2014, 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 $1 million and $2 million for the three months and six months endedJune 30, 2015, respectively, and $13 million and $31 million for the three monthsand six months endedJune 30, 2014, respectively.

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:

	June 30, 2015				December 31, 2014
	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)	$	67,350	$	67,350	$	68,427	$	68,427
U.S. and foreign corporate	3,420		3,420		3,829		3,829
Other limited partnership interests	6,208		8,156		6,250		8,402
Other invested assets	1,593		2,017		1,720		2,050
FVO and trading securities	628		628		565		565
Real estate joint ventures	76		100		100		125
Mortgage loans	33		33		51		51
Equity securities AFS:
Non-redeemable preferred stock	40		40		41		41
Total	$	79,348	$	81,744	$	80,983	$	83,490

__________________

(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. 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 $197 million and $212 million at June 30, 2015 and December 31, 2014, 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 in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity.

As described in Note 13, 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 both the six months endedJune 30, 2015 and 2014.

Net Investment Income

The components of net investment income were as follows:

	Three Months   Ended   June 30,					Six Months   Ended   June 30,
	2015			2014		2015		2014
	(In millions)
Investment income:
Fixed maturity securities	$	3,672		$	3,758	$	7,213	$	7,411
Equity securities	35			37		66		67
FVO and trading securities — Actively Traded and FVO general account securities (1)	2			44		39		81
Mortgage loans	801			708		1,531		1,417
Policy loans	151			158		303		315
Real estate and real estate joint ventures	323			262		534		479
Other limited partnership interests	250			206		465		535
Cash, cash equivalents and short-term investments	37			41		72		88
Operating joint ventures	8			3		16		3
Other	30			31		152		76
Subtotal	5,309			5,248		10,391		10,472
Less: Investment expenses	313			299		615		575
Subtotal, net	4,996			4,949		9,776		9,897
FVO and trading securities — FVO contractholder-directed unit-linked investments (1)	(55		)	295		622		360
FVO CSEs — interest income:
Commercial mortgage loans	5			14		9		36
Securities	1			1		1		1
Subtotal	(49		)	310		632		397
Net investment income	$	4,947		$	5,259	$	10,408	$	10,294

__________________

(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 as follows:

	Three Months   Ended   June 30,					Six Months   Ended   June 30,
	2015			2014		2015			2014
	(In millions)
Actively Traded and FVO general account securities	$	(38	)	$	14	$	(40	)	$	25
FVO contractholder-directed unit-linked investments	$	(288	)	$	138	$	261		$	81

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

FVO and trading securities are primarily comprised of securities for which the FVO has been elected (“FVO Securities”). FVO Securities include certain fixed maturity and equity securities held-for-investment by the general account to support asset and liability management strategies for certain insurance products and investments in certain separate accounts. FVO Securities are primarily comprised of contractholder-directed investments supporting unit-linked variable annuity type liabilities which do not qualify for presentation as separate account summary total assets and liabilities. The investment returns on these investments inure to the contractholders and are offset by a corresponding change in policyholder account balances through interest credited to policyholder account balances. FVO Securities also include securities held by CSEs. The Company has a trading securities portfolio, principally invested in fixed maturity securities, to support investment strategies that involve the active and frequent purchase and sale of actively traded securities and the execution of short sale agreements.

Net Investment Gains (Losses)

Components of Net Investment Gains (Losses)

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

	Three Months   Ended   June 30,						Six Months   Ended   June 30,
	2015			2014			2015			2014
	(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:
Consumer	$	—		$	—		$	(3	)	$	(7	)
Transportation	—			(2		)	—			(2		)
Industrial	—			—			(2		)	—
Total U.S. and foreign corporate securities	—			(2		)	(5		)	(9		)
RMBS	(2		)	(6		)	(15		)	(9		)
ABS	—			(7		)	—			(7		)
OTTI losses on fixed maturity securities recognized in earnings	(2		)	(15		)	(20		)	(25		)
Fixed maturity securities — net gains (losses) on sales and disposals	117			69			268			165
Total gains (losses) on fixed maturity securities	115			54			248			140
Total gains (losses) on equity securities:
Total OTTI losses recognized — by sector:
Non-redeemable preferred stock	—			(23		)	—			(23		)
Common stock	(9		)	(10		)	(9		)	(11		)
OTTI losses on equity securities recognized in earnings	(9		)	(33		)	(9		)	(34		)
Equity securities — net gains (losses) on sales and disposals	17			58			25			84
Total gains (losses) on equity securities	8			25			16			50
FVO and trading securities — FVO general account securities	—			(1		)	—			8
Mortgage loans	(9		)	16			(52		)	5
Real estate and real estate joint ventures	(33		)	(1		)	(6		)	64
Other limited partnership interests	(9		)	(36		)	7			(38		)
Other investment portfolio gains (losses)	(27		)	(2		)	(4		)	(6		)
Subtotal — investment portfolio gains (losses)	45			55			209			223
FVO CSEs:
Commercial mortgage loans	1			(16		)	(2		)	(15		)
Long-term debt — related to commercial mortgage loans	1			17			2			18
Non-investment portfolio gains (losses) (1)	(180		)	(181		)	(56		)	(762		)
Subtotal FVO CSEs and non-investment portfolio gains (losses)	(178		)	(180		)	(56		)	(759		)
Total net investment gains (losses)	$	(133	)	$	(125	)	$	153		$	(536	)

__________________

(1) Non-investment portfolio gains (losses) for the three months and six months endedJune 30, 2014 includes a loss of $138 million and $633 million, respectively, related to the disposition of MetLife Assurance Limited (“MAL”). See Note 3 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report.

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

Gains (losses) from foreign currency transactions included within net investment gains (losses) were($243) millionand($82) millionfor thethree monthsandsix months endedJune 30, 2015, respectively,and($112) millionand($107) millionfor thethree monthsandsix months endedJune 30, 2014, 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) were as shown in the tables below. Investment gains and losses on sales of securities are determined on a specific identification basis.

	Three Months   Ended   June 30,
	2015			2014			2015			2014
	Fixed Maturity Securities						Equity Securities
	(In millions)
Proceeds	$	29,321		$	19,700		$	103		$	326
Gross investment gains	$	338		$	176		$	20		$	60
Gross investment losses	(221		)	(107		)	(3		)	(2		)
OTTI losses	(2		)	(15		)	(9		)	(33		)
Net investment gains (losses)	$	115		$	54		$	8		$	25

	Six Months   Ended   June 30,
	2015			2014			2015			2014
	Fixed Maturity Securities						Equity Securities
	(In millions)
Proceeds	$	59,327		$	41,991		$	156		$	427
Gross investment gains	$	676		$	490		$	35		$	87
Gross investment losses	(408		)	(325		)	(10		)	(3		)
OTTI losses	(20		)	(25		)	(9		)	(34		)
Net investment gains (losses)	$	248		$	140		$	16		$	50

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   June 30,						Six Months   Ended   June 30,
	2015			2014			2015			2014
	(In millions)
Balance, beginning of period	$	357		$	370		$	357		$	378
Additions:
Initial impairments — credit loss OTTI on securities not previously impaired	—			—			2			—
Additional impairments — credit loss OTTI on securities previously impaired	2			6			13			8
Reductions:
Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI	(78		)	(10		)	(91		)	(20		)
Securities impaired to net present value of expected future cash flows	—			(7		)	—			(7		)
Increase in cash flows — accretion of previous credit loss OTTI	(1		)	—			(1		)	—
Balance, end of period	$	280		$	359		$	280		$	359