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:



	September 30, 2015			December 31, 2014
	(In millions)
Closed Block Liabilities
Future policy benefits	$	41,280		$	41,667
Other policy-related balances	275			265
Policyholder dividends payable	498			461
Policyholder dividend obligation	2,309			3,155
Current income tax payable	29			1
Other liabilities	474			646
Total closed block liabilities	44,865			46,195
Assets Designated to the Closed Block
Investments:
Fixed maturity securities available-for-sale, at estimated fair value	27,739			29,199
Equity securities available-for-sale, at estimated fair value	94			91
Mortgage loans	6,122			6,076
Policy loans	4,641			4,646
Real estate and real estate joint ventures	601			666
Other invested assets	1,203			1,065
Total investments	40,400			41,743
Cash and cash equivalents	266			227
Accrued investment income	484			477
Premiums, reinsurance and other receivables	106			67
Deferred income tax assets	286			289
Total assets designated to the closed block	41,542			42,803
Excess of closed block liabilities over assets designated to the closed block	3,323			3,392
Amounts included in accumulated other comprehensive income (loss) (“AOCI”)
Unrealized investment gains (losses), net of income tax	1,712			2,291
Unrealized gains (losses) on derivatives, net of income tax	63			28
Allocated to policyholder dividend obligation, net of income tax	(1,501		)	(2,051		)
Total amounts included in AOCI	274			268
Maximum future earnings to be recognized from closed block assets and liabilities	$	3,597		$	3,660

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



	Nine Months Ended September 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)	(846		)	1,384
Balance, end of period	$	2,309		$	3,155

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



	Three Months Ended September 30,					Nine Months Ended September 30,
	2015			2014		2015			2014
	(In millions)
Revenues
Premiums	$	447		$	461	$	1,334		$	1,380
Net investment income	487			516		1,500			1,568
Net investment gains (losses)	(9		)	—		(8		)	8
Net derivative gains (losses)	13			17		25			13
Total revenues	938			994		2,851			2,969
Expenses
Policyholder benefits and claims	635			620		1,886			1,889
Policyholder dividends	273			255		757			731
Other expenses	36			39		109			118
Total expenses	944			914		2,752			2,738
Revenues, net of expenses before provision for income tax expense (benefit)	(6		)	80		99			231
Provision for income tax expense (benefit)	(1		)	28		36			81
Revenues, net of expenses and provision for income tax expense (benefit)	$	(5	)	$	52	$	63		$	150

MLIC charges the closed block with federal income taxes, state and local premium taxes and other 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.