Segment Information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Information

2. Segment Information

MetLife is organized into six segments, reflecting three broad geographic regions: Retail; Group, Voluntary & Worksite Benefits; Corporate Benefit Funding; and Latin America (collectively, the “Americas”); Asia; and EMEA. In addition, the Company reports certain of its results of operations in Corporate & Other.

In the first quarter of 2015, the Company implemented certain segment reporting changes related to the (i) measurement of segment operating earnings, which included revising the Company’s capital allocation methodology, and (ii) the realignment of consumer direct business. These changes were applied retrospectively and did not have an impact on total consolidated operating earnings or net income.

Americas

The Americas consists of the following segments:

Retail

The Retail segment offers a broad range of protection products and services and a variety of annuities to individuals and employees of corporations and other institutions, and is organized into two businesses: Life & Other and Annuities. Life & Other insurance products and services include variable life, universal life, term life and whole life products. Additionally, through broker-dealer affiliates, the Company offers a full range of mutual funds and other securities products. Life & Other products and services also include individual disability income products and personal lines property & casualty insurance, including private passenger automobile, homeowners and personal excess liability insurance. Annuities includes a variety of variable and fixed annuities which provide for both asset accumulation and asset distribution needs.

Group, Voluntary & Worksite Benefits

The Group, Voluntary & Worksite Benefits segment offers a broad range of protection products and services to individuals and corporations, as well as other institutions and their respective employees. Group, Voluntary & Worksite Benefits insurance products and services include life, dental, group short- and long-term disability and accidental death and dismemberment (“AD&D”) coverages. In addition, the Group, Voluntary & Worksite Benefits segment offers property & casualty insurance, including private passenger automobile, homeowners and personal excess liability, which is offered to employees on a voluntary basis, long-term care, critical illness and accident & health coverages, as well as prepaid legal plans.

Corporate Benefit Funding

The Corporate Benefit Funding segment offers a broad range of annuity and investment products, including guaranteed interest products and other stable value products, income annuities and separate account contracts for the investment management of defined benefit and defined contribution plan assets. This segment also includes structured settlements and certain products to fund postretirement benefits and company-, bank- or trust-owned life insurance used to finance non-qualified benefit programs for executives.

Latin America

The Latin America segment offers a broad range of products to both individuals and corporations, as well as other institutions and their respective employees, which include life insurance, accident & health insurance, group medical, dental, credit insurance, endowment and retirement & savings products written in Latin America. The Latin America segment also includes U.S. direct business, comprised of group and individual products sold through sponsoring organizations, affinity groups and direct to consumer. Products included are life, dental, group short- and long-term disability, AD&D coverages, property & casualty and other accident & health coverages, as well as non-insurance products such as identity protection.

Asia

The Asia segment offers a broad range of products to both individuals and corporations, as well as other institutions and their respective employees, which include whole life, term life, variable life, universal life, accident & health insurance, fixed and variable annuities, credit insurance and endowment products.

EMEA

The EMEA segment offers a broad range of products to both individuals and corporations, as well as other institutions and their respective employees, which include life insurance, accident & health insurance, credit insurance, annuities, endowment and retirement & savings products.

Corporate & Other

Corporate & Other contains the excess capital, as well as certain charges and activities, not allocated to the segments, including external integration costs, internal resource costs for associates committed to acquisitions, enterprise-wide strategic initiative restructuring charges, various start-up businesses (including expatriate benefits insurance and the investment management business through which the Company offers fee-based investment management services to institutional clients) and certain run-off businesses. Corporate & Other also includes assumed reinsurance of certain variable annuity products from the Company’s former operating joint venture in Japan. Under this in-force reinsurance agreement, the Company reinsures living and death benefit guarantees issued in connection with variable annuity products. Additionally, Corporate & Other includes interest expense related to the majority of the Company’s outstanding debt and expenses associated with certain legal proceedings and income tax audit issues. Corporate & Other also includes the elimination of intersegment amounts, which generally relate to intersegment loans, which bear interest rates commensurate with related borrowings.

Financial Measures and Segment Accounting Policies

Operating earnings is the measure of segment profit or loss the Company uses to evaluate segment performance and allocate resources. Consistent with GAAP guidance for segment reporting, operating earnings is the Company’s measure of segment performance and is reported below. Operating earnings should not be viewed as a substitute for income (loss) from continuing operations, net of income tax. The Company believes the presentation of operating earnings as the Company measures it for management purposes enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business.

Operating earnings is defined as operating revenues less operating expenses, both net of income tax.

Operating revenues and operating expenses exclude results of discontinued operations and other businesses that have been or will be sold or exited by MetLife and are referred to as divested businesses. Operating revenues also excludes net investment gains (losses) and net derivative gains (losses). Operating expenses also excludes goodwill impairments.

The following additional adjustments are made to GAAP revenues, in the line items indicated, in calculating operating revenues:

• Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity guaranteed minimum income benefits (“GMIBs”) fees (“GMIB Fees”);

• Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment, (ii) includes income from discontinued real estate operations, (iii) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iv) excludes certain amounts related to contractholder-directed unit-linked investments, and (v) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and

• Other revenues are adjusted for settlements of foreign currency earnings hedges.

The following additional adjustments are made to GAAP expenses, in the line items indicated, in calculating operating expenses:

• Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative gains (losses), (ii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass through adjustments, (iii) benefits and hedging costs related to GMIBs (“GMIB Costs”), and (iv) market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”);

• Interest credited to policyholder account balances includes adjustments for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment and excludes amounts related to net investment income earned on contractholder-directed unit-linked investments;

• Amortization of deferred policy acquisition costs (“DAC”) and value of business acquired (“VOBA”) excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB Fees and GMIB Costs, and (iii) Market Value Adjustments;

• Amortization of negative VOBA excludes amounts related to Market Value Adjustments;

• Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and

• Other expenses excludes costs related to: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements, and (iii) acquisition and integration costs.

Operating earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for during the measurement period under GAAP business combination accounting guidance. In addition to the tax impact of the adjustments mentioned above, provision for income tax expense (benefit) also includes the impact related to the timing of certain tax credits, as well as certain tax reforms.

In the first quarter of 2015, the Company implemented certain segment reporting changes related to the (i) measurement of segment operating earnings, which included revising the Company’s capital allocation methodology, and (ii) the realignment of consumer direct business. Consequently, prior period results for the three months and nine months endedSeptember 30, 2014 were impacted as follows:

• Retail’s operating earningsincreased(decreased)by$86 millionand$135 million, net of($111) millionand($200) millionof income tax expense (benefit),respectively;

• Group, Voluntary & Worksite Benefits’ operating earningsincreased(decreased)by$4 millionand$10 million, net of($2) millionand$2 millionof income tax expense (benefit),respectively;

• Corporate Benefit Funding’s operating earningsincreased(decreased)by($13) millionand($39) million, net of($10) millionand($32) millionof income tax expense (benefit),respectively;

• Latin America’s operating earningsincreased (decreased)by($30) millionand($79) million, net of($16) millionand($46) millionof income tax expense (benefit),respectively;

• Asia’s operating earningsincreased(decreased)by$4 millionand$14 million, net of$3 millionand$5 millionof income tax expense (benefit),respectively;

• EMEA’s operating earningsincreased (decreased)by($18) millionand($56) million, net of($13) millionand($31) millionof income tax expense (benefit),respectively; and

• Corporate & Other’s operating earningsincreased(decreased)by($33) millionand$15 million, net of$149 millionand$302 millionof income tax expense (benefit),respectively.

Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for thethree monthsandnine months endedSeptember 30, 2015 and 2014. The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for operating earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below.

Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. The economic capital model accounts for the unique and specific nature of the risks inherent in the Company’s business.

The Company’s economic capital model, coupled with considerations of local capital requirements, aligns segment allocated equity with emerging standards and consistent risk principles. The model applies statistics-based risk evaluation principles to the material risks to which the Company is exposed. These consistent risk principles include calibrating required economic capital shock factors to a specific confidence level and time horizon while applying an industry standard method for the inclusion of diversification benefits among risk types.The Company’s management is responsible for the ongoing production and enhancement of the economic capital model and reviews its approach periodically to ensure that it remains consistent with emerging industry practice standards.

Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company’s consolidated net investment income, operating earnings or income (loss) from continuing operations, net of income tax.

Net investment income is based upon the actual results of each segment’s specifically identifiable investment portfolios adjusted for allocated equity. Other costs are allocated to each of the segments based upon: (i) a review of the nature of such costs; (ii) time studies analyzing the amount of employee compensation costs incurred by each segment; and (iii) cost estimates included in the Company’s product pricing.

	Operating Results
	Americas
Three Months Ended September 30, 2015	Retail			Group, Voluntary & Worksite Benefits			Corporate Benefit Funding			Latin America			Total			Asia			EMEA			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	1,806		$	4,092		$	1,555		$	668		$	8,121		$	1,736		$	501		$	18		$	10,376		$	(1	)	$	10,375
Universal life and investment-type product policy fees	1,229			188			55			261			1,733			382			106			26			2,247			99			2,346
Net investment income	1,930			485			1,391			279			4,085			670			82			12			4,849			(890		)	3,959
Other revenues	241			113			70			11			435			26			11			23			495			(11		)	484
Net investment gains (losses)	—			—			—			—			—			—			—			—			—			382			382
Net derivative gains (losses)	—			—			—			—			—			—			—			—			—			485			485
Total revenues	5,206			4,878			3,071			1,219			14,374			2,814			700			79			17,967			64			18,031
Expenses
Policyholder benefits and claims and policyholder dividends	2,607			3,805			2,154			630			9,196			1,331			233			20			10,780			(92		)	10,688
Interest credited to policyholder account balances	550			39			295			88			972			327			27			5			1,331			(684		)	647
Capitalization of DAC	(266		)	(41		)	(1		)	(105		)	(413		)	(435		)	(107		)	—			(955		)	—			(955		)
Amortization of DAC and VOBA	432			40			6			57			535			309			127			—			971			160			1,131
Amortization of negative VOBA	—			—			—			—			—			(77		)	(5		)	—			(82		)	(8		)	(90		)
Interest expense on debt	(1		)	—			1			—			—			—			—			294			294			8			302
Other expenses	1,197			666			113			410			2,386			896			352			492			4,126			19			4,145
Total expenses	4,519			4,509			2,568			1,080			12,676			2,351			627			811			16,465			(597		)	15,868
Provision for income tax expense (benefit)	164			131			177			(37		)	435			125			7			224			791			174			965
Operating earnings	$	523		$	238		$	326		$	176		$	1,263		$	338		$	66		$	(956	)	711
Adjustments to:
Total revenues																									64
Total expenses																									597
Provision for income tax (expense) benefit																									(174		)
Income (loss) from continuing operations, net of income tax																									$	1,198					$	1,198

	Operating Results
	Americas
Three Months Ended September 30, 2014	Retail			Group, Voluntary & Worksite Benefits			Corporate Benefit Funding			Latin America			Total			Asia			EMEA			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	1,869		$	4,010		$	451		$	812		$	7,142		$	1,939		$	581		$	23		$	9,685		$	18		$	9,703
Universal life and investment-type product policy fees	1,311			180			60			328			1,879			487			127			29			2,522			106			2,628
Net investment income	1,965			475			1,464			317			4,221			738			109			125			5,193			217			5,410
Other revenues	275			103			71			7			456			27			22			13			518			—			518
Net investment gains (losses)	—			—			—			—			—			—			—			—			—			109			109
Net derivative gains (losses)	—			—			—			—			—			—			—			—			—			478			478
Total revenues	5,420			4,768			2,046			1,464			13,698			3,191			839			190			17,918			928			18,846
Expenses
Policyholder benefits and claims and policyholder dividends	2,555			3,729			1,033			735			8,052			1,535			252			15			9,854			5			9,859
Interest credited to policyholder account balances	567			38			279			97			981			394			43			8			1,426			391			1,817
Capitalization of DAC	(239		)	(37		)	(11		)	(112		)	(399		)	(507		)	(165		)	—			(1,071		)	—			(1,071		)
Amortization of DAC and VOBA	335			38			5			102			480			367			152			—			999			55			1,054
Amortization of negative VOBA	—			—			—			—			—			(89		)	(7		)	—			(96		)	(11		)	(107		)
Interest expense on debt	(1		)	—			2			—			1			—			—			291			292			3			295
Other expenses	1,163			634			133			450			2,380			1,027			463			133			4,003			44			4,047
Total expenses	4,380			4,402			1,441			1,272			11,495			2,727			738			447			15,407			487			15,894
Provision for income tax expense (benefit)	255			125			210			70			660			154			23			(181		)	656			202			858
Operating earnings	$	785		$	241		$	395		$	122		$	1,543		$	310		$	78		$	(76	)	1,855
Adjustments to:
Total revenues																									928
Total expenses																									(487		)
Provision for income tax (expense) benefit																									(202		)
Income (loss) from continuing operations, net of income tax																									$	2,094					$	2,094

	Operating Results
	Americas
Nine Months Ended September 30, 2015	Retail			Group, Voluntary & Worksite Benefits			Corporate Benefit Funding			Latin America			Total			Asia			EMEA			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	5,302		$	12,313		$	2,292		$	2,150		$	22,057		$	5,297		$	1,534		$	54		$	28,942		$	(2	)	$	28,940
Universal life and investment-type product policy fees	3,717			559			168			856			5,300			1,179			322			75			6,876			298			7,174
Net investment income	5,913			1,444			4,347			780			12,484			2,033			249			250			15,016			(649		)	14,367
Other revenues	755			340			218			28			1,341			82			40			62			1,525			(28		)	1,497
Net investment gains (losses)	—			—			—			—			—			—			—			—			—			535			535
Net derivative gains (losses)	—			—			—			—			—			—			—			—			—			394			394
Total revenues	15,687			14,656			7,025			3,814			41,182			8,591			2,145			441			52,359			548			52,907
Expenses
Policyholder benefits and claims and policyholder dividends	7,429			11,445			4,078			1,955			24,907			4,046			737			40			29,730			237			29,967
Interest credited to policyholder account balances	1,643			114			882			263			2,902			992			91			19			4,004			(64		)	3,940
Capitalization of DAC	(770		)	(113		)	(11		)	(316		)	(1,210		)	(1,268		)	(372		)	—			(2,850		)	—			(2,850		)
Amortization of DAC and VOBA	1,207			120			17			221			1,565			971			388			1			2,925			128			3,053
Amortization of negative VOBA	—			—			—			(1		)	(1		)	(241		)	(13		)	—			(255		)	(27		)	(282		)
Interest expense on debt	(2		)	—			3			—			1			—			—			897			898			10			908
Other expenses	3,593			2,011			367			1,254			7,225			2,669			1,103			811			11,808			28			11,836
Total expenses	13,100			13,577			5,336			3,376			35,389			7,169			1,934			1,768			46,260			312			46,572
Provision for income tax expense (benefit)	721			382			588			15			1,706			332			25			(139		)	1,924			(69		)	1,855
Operating earnings	$	1,866		$	697		$	1,101		$	423		$	4,087		$	1,090		$	186		$	(1,188	)	4,175
Adjustments to:
Total revenues																									548
Total expenses																									(312		)
Provision for income tax (expense) benefit																									69
Income (loss) from continuing operations, net of income tax																									$	4,480					$	4,480

	Operating Results
	Americas
Nine Months Ended September 30, 2014	Retail			Group, Voluntary & Worksite Benefits			Corporate Benefit Funding			Latin America			Total			Asia			EMEA			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	5,405		$	12,050		$	1,438		$	2,293		$	21,186		$	5,742		$	1,762		$	65		$	28,755		$	40		$	28,795
Universal life and investment-type product policy fees	3,814			538			172			956			5,480			1,276			353			96			7,205			302			7,507
Net investment income	5,906			1,396			4,259			915			12,476			2,162			328			407			15,373			331			15,704
Other revenues	785			314			214			23			1,336			78			49			39			1,502			(16		)	1,486
Net investment gains (losses)	—			—			—			—			—			—			—			—			—			(427		)	(427		)
Net derivative gains (losses)	—			—			—			—			—			—			—			—			—			1,132			1,132
Total revenues	15,910			14,298			6,083			4,187			40,478			9,258			2,492			607			52,835			1,362			54,197
Expenses
Policyholder benefits and claims and policyholder dividends	7,400			11,299			3,194			2,100			23,993			4,357			784			57			29,191			680			29,871
Interest credited to policyholder account balances	1,683			117			844			295			2,939			1,175			112			26			4,252			743			4,995
Capitalization of DAC	(722		)	(107		)	(30		)	(320		)	(1,179		)	(1,458		)	(511		)	—			(3,148		)	(1		)	(3,149		)
Amortization of DAC and VOBA	1,142			109			15			265			1,531			1,067			476			—			3,074			100			3,174
Amortization of negative VOBA	—			—			—			(1		)	(1		)	(275		)	(22		)	—			(298		)	(35		)	(333		)
Interest expense on debt	(1		)	—			6			—			5			—			—			880			885			34			919
Other expenses	3,486			1,900			377			1,322			7,085			2,995			1,383			470			11,933			59			11,992
Total expenses	12,988			13,318			4,406			3,661			34,373			7,861			2,222			1,433			45,889			1,580			47,469
Provision for income tax expense (benefit)	824			340			579			110			1,853			430			49			(454		)	1,878			38			1,916
Operating earnings	$	2,098		$	640		$	1,098		$	416		$	4,252		$	967		$	221		$	(372	)	5,068
Adjustments to:
Total revenues																									1,362
Total expenses																									(1,580		)
Provision for income tax (expense) benefit																									(38		)
Income (loss) from continuing operations, net of income tax																									$	4,812					$	4,812

The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at:

	September 30, 2015		December 31, 2014
	(In millions)
Retail	$	347,126	$	359,188
Group, Voluntary & Worksite Benefits	47,443		46,483
Corporate Benefit Funding	227,297		228,543
Latin America	64,949		72,259
Asia	112,456		117,894
EMEA	27,698		29,217
Corporate & Other	55,491		48,753
Total	$	882,460	$	902,337