Segment Information

12 Months Ended

Dec. 31, 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.

On January 12, 2016, the Company announced its plan to pursue the separation of a substantial portion of its Retail segment, which is organized into two U.S. businesses, Life & Other and Annuities, as well as certain portions of its Corporate Benefit Funding segment and Corporate & Other (the “Separation”). See Note 23.

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 U.S. 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, vision 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 nonqualified 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 GMIB fees (“GMIB Fees”);

• Net investment income: (i) includes investment hedge adjustments which represent earned income on derivatives 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 earned income on derivatives 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 DAC and 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.

Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for the years ended December 31, 2015, 2014 and 2013 and at December 31, 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
Year Ended December 31, 2015	Retail			Group, Voluntary & Worksite Benefits			Corporate Benefit Funding			Latin America			Total			Asia			EMEA			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	7,228		$	16,358		$	3,019		$	2,891		$	29,496		$	6,937		$	2,036		$	79		$	38,548		$	(3	)	$	38,545
Universal life and investment-type product policy fees	4,933			740			259			1,116			7,048			1,542			424			99			9,113			394			9,507
Net investment income	7,814			1,898			5,710			1,047			16,469			2,675			326			319			19,789			(508		)	19,281
Other revenues	989			451			286			42			1,768			105			61			86			2,020			(37		)	1,983
Net investment gains (losses)	—			—			—			—			—			—			—			—			—			597			597
Net derivative gains (losses)	—			—			—			—			—			—			—			—			—			38			38
Total revenues	20,964			19,447			9,274			5,096			54,781			11,259			2,847			583			69,470			481			69,951
Expenses
Policyholder benefits and claims and policyholder dividends	9,995			15,170			5,447			2,625			33,237			5,275			988			65			39,565			537			40,102
Interest credited to policyholder account balances	2,198			151			1,184			349			3,882			1,309			120			23			5,334			276			5,610
Capitalization of DAC	(1,048		)	(151		)	(19		)	(426		)	(1,644		)	(1,720		)	(472		)	(1		)	(3,837		)	—			(3,837		)
Amortization of DAC and VOBA	1,561			164			21			303			2,049			1,256			497			—			3,802			134			3,936
Amortization of negative VOBA	—			—			—			(1		)	(1		)	(309		)	(16		)	—			(326		)	(35		)	(361		)
Interest expense on debt	(1		)	—			3			—			2			—			—			1,198			1,200			8			1,208
Other expenses	4,855			2,703			512			1,666			9,736			3,611			1,469			990			15,806			17			15,823
Total expenses	17,560			18,037			7,148			4,516			47,261			9,422			2,586			2,275			61,544			937			62,481
Provision for income tax expense (benefit)	956			499			739			7			2,201			457			21			(353		)	2,326			(178		)	2,148
Operating earnings	$	2,448		$	911		$	1,387		$	573		$	5,319		$	1,380		$	240		$	(1,339	)	5,600
Adjustments to:
Total revenues																									481
Total expenses																									(937		)
Provision for income tax (expense) benefit																									178
Income (loss) from continuing operations, net of income tax																									$	5,322					$	5,322

At December 31, 2015	Retail		Group, Voluntary & Worksite Benefits		Corporate Benefit Funding		Latin America		Asia (1)		EMEA		Corporate & Other		Total
	(In millions)
Total assets	$	347,257	$	46,476	$	225,015	$	65,266	$	113,895	$	26,767	$	53,257	$	877,933
Separate account assets	$	159,782	$	638	$	82,157	$	46,061	$	8,964	$	3,996	$	—	$	301,598
Separate account liabilities	$	159,782	$	638	$	82,157	$	46,061	$	8,964	$	3,996	$	—	$	301,598

______________

(1) Total assets includes $90.0 billion of assets from the Japan operations which represents 10% of total consolidated assets.

	Operating Results
	Americas
Year Ended December 31, 2014	Retail			Group, Voluntary & Worksite Benefits			Corporate Benefit Funding			Latin America			Total			Asia			EMEA			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	7,280		$	15,979		$	2,768		$	3,039		$	29,066		$	7,566		$	2,309		$	81		$	39,022		$	45		$	39,067
Universal life and investment-type product policy fees	5,074			716			226			1,239			7,255			1,693			466			127			9,541			405			9,946
Net investment income	7,887			1,861			5,684			1,229			16,661			2,886			428			509			20,484			669			21,153
Other revenues	1,059			420			286			35			1,800			106			60			67			2,033			(3		)	2,030
Net investment gains (losses)	—			—			—			—			—			—			—			—			—			(197		)	(197		)
Net derivative gains (losses)	—			—			—			—			—			—			—			—			—			1,317			1,317
Total revenues	21,300			18,976			8,964			5,542			54,782			12,251			3,263			784			71,080			2,236			73,316
Expenses
Policyholder benefits and claims and policyholder dividends	9,851			14,897			5,106			2,786			32,640			5,724			1,053			61			39,478			1,000			40,478
Interest credited to policyholder account balances	2,245			156			1,140			394			3,935			1,544			148			34			5,661			1,282			6,943
Capitalization of DAC	(969		)	(143		)	(31		)	(445		)	(1,588		)	(1,914		)	(680		)	—			(4,182		)	(1		)	(4,183		)
Amortization of DAC and VOBA	1,515			149			19			334			2,017			1,397			613			—			4,027			105			4,132
Amortization of negative VOBA	—			—			—			(1		)	(1		)	(364		)	(31		)	—			(396		)	(46		)	(442		)
Interest expense on debt	1			1			9			—			11			—			—			1,167			1,178			38			1,216
Other expenses	4,711			2,571			492			1,810			9,584			3,975			1,846			849			16,254			114			16,368
Total expenses	17,354			17,631			6,735			4,878			46,598			10,362			2,949			2,111			62,020			2,492			64,512
Provision for income tax expense (benefit)	1,130			467			771			96			2,464			582			29			(697		)	2,378			87			2,465
Operating earnings	$	2,816		$	878		$	1,458		$	568		$	5,720		$	1,307		$	285		$	(630	)	6,682
Adjustments to:
Total revenues																									2,236
Total expenses																									(2,492		)
Provision for income tax (expense) benefit																									(87		)
Income (loss) from continuing operations, net of income tax																									$	6,339					$	6,339

At December 31, 2014	Retail		Group, Voluntary & Worksite Benefits		Corporate Benefit Funding		Latin America		Asia (1)		EMEA		Corporate & Other		Total
	(In millions)
Total assets	$	359,188	$	46,483	$	228,543	$	72,259	$	117,894	$	29,217	$	48,753	$	902,337
Separate account assets	$	171,726	$	669	$	81,150	$	50,301	$	9,078	$	4,070	$	—	$	316,994
Separate account liabilities	$	171,726	$	669	$	81,150	$	50,301	$	9,078	$	4,070	$	—	$	316,994

______________

(1) Total assets includes $95.0 billion of assets from the Japan operations which represents 11% of total consolidated assets.

	Operating Results
	Americas
Year Ended December 31, 2013	Retail			Group, Voluntary & Worksite Benefits			Corporate Benefit Funding			Latin America			Total			Asia			EMEA			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	6,528		$	15,250		$	2,767		$	2,870		$	27,415		$	7,801		$	2,297		$	70		$	37,583		$	91		$	37,674
Universal life and investment-type product policy fees	4,912			688			247			991			6,838			1,722			386			139			9,085			366			9,451
Net investment income	7,796			1,833			5,506			1,145			16,280			2,943			425			746			20,394			1,838			22,232
Other revenues	1,018			418			278			23			1,737			92			97			28			1,954			(34		)	1,920
Net investment gains (losses)	—			—			—			—			—			—			—			—			—			161			161
Net derivative gains (losses)	—			—			—			—			—			—			—			—			—			(3,239		)	(3,239		)
Total revenues	20,254			18,189			8,798			5,029			52,270			12,558			3,205			983			69,016			(817		)	68,199
Expenses
Policyholder benefits and claims and policyholder dividends	9,028			14,227			5,180			2,487			30,922			5,755			1,039			30			37,746			1,620			39,366
Interest credited to policyholder account balances	2,331			155			1,233			417			4,136			1,690			147			42			6,015			2,164			8,179
Capitalization of DAC	(1,309		)	(141		)	(27		)	(452		)	(1,929		)	(2,143		)	(714		)	—			(4,786		)	—			(4,786		)
Amortization of DAC and VOBA	1,384			140			23			311			1,858			1,542			683			—			4,083			(533		)	3,550
Amortization of negative VOBA	—			—			—			(2		)	(2		)	(427		)	(95		)	—			(524		)	(55		)	(579		)
Interest expense on debt	—			1			9			—			10			—			1			1,148			1,159			123			1,282
Other expenses	5,101			2,379			481			1,722			9,683			4,317			1,812			784			16,596			539			17,135
Total expenses	16,535			16,761			6,899			4,483			44,678			10,734			2,873			2,004			60,289			3,858			64,147
Provision for income tax expense (benefit)	1,107			480			667			83			2,337			565			51			(609		)	2,344			(1,683		)	661
Operating earnings	$	2,612		$	948		$	1,232		$	463		$	5,255		$	1,259		$	281		$	(412	)	6,383
Adjustments to:
Total revenues																									(817		)
Total expenses																									(3,858		)
Provision for income tax (expense) benefit																									1,683
Income (loss) from continuing operations, net of income tax																									$	3,391					$	3,391

The following table presents total premiums, universal life and investment-type product policy fees and other revenues by major product groups of the Company’s segments, as well as Corporate & Other:

	Years Ended December 31,
	2015		2014		2013
	(In millions)
Life insurance	$	23,037	$	23,483	$	23,189
Accident & health insurance	13,090		13,336		13,214
Annuities	9,653		9,984		8,987
Property & casualty insurance	3,504		3,524		3,270
Non-insurance	751		716		385
Total	$	50,035	$	51,043	$	49,045

The following table presents total premiums, universal life and investment-type product policy fees and other revenues associated with the Company’s U.S. and foreign operations:

	Years Ended December 31,
	2015		2014		2013
	(In millions)
U.S.	$	35,042	$	34,536	$	32,529
Foreign:
Japan	6,264		6,917		7,373
Other	8,729		9,590		9,143
Total	$	50,035	$	51,043	$	49,045

Revenues derived from any customer did not exceed 10% of consolidated premiums, universal life and investment-type product policy fees and other revenues for the years ended December 31, 2015, 2014 and 2013.