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:



	March 31, 2016			December 31, 2015
	(In millions)
Closed Block Liabilities
Future policy benefits	$	41,046		$	41,278
Other policy-related balances	270			249
Policyholder dividends payable	484			468
Policyholder dividend obligation	2,586			1,783
Other liabilities	799			380
Total closed block liabilities	45,185			44,158
Assets Designated to the Closed Block
Investments:
Fixed maturity securities available-for-sale, at estimated fair value	28,739			27,556
Equity securities available-for-sale, at estimated fair value	108			111
Mortgage loans	5,910			6,022
Policy loans	4,561			4,642
Real estate and real estate joint ventures	458			462
Other invested assets	978			1,066
Total investments	40,754			39,859
Cash and cash equivalents	151			236
Accrued investment income	477			474
Premiums, reinsurance and other receivables	321			56
Current income tax recoverable	7			11
Deferred income tax assets	215			234
Total assets designated to the closed block	41,925			40,870
Excess of closed block liabilities over assets designated to the closed block	3,260			3,288
Amounts included in accumulated other comprehensive income (loss) (“AOCI”)
Unrealized investment gains (losses), net of income tax	1,963			1,382
Unrealized gains (losses) on derivatives, net of income tax	63			76
Allocated to policyholder dividend obligation, net of income tax	(1,681		)	(1,159		)
Total amounts included in AOCI	345			299
Maximum future earnings to be recognized from closed block assets and liabilities	$	3,605		$	3,587

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



	Three Months Ended March 31, 2016		Year Ended December 31, 2015
	(In millions)
Balance, beginning of period	$	1,783	$	3,155
Change in unrealized investment and derivative gains (losses)	803		(1,372		)
Balance, end of period	$	2,586	$	1,783

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



	Three Months Ended March 31,
	2016			2015
	(In millions)
Revenues
Premiums	$	417		$	430
Net investment income	480			515
Net investment gains (losses)	(28		)	(1		)
Net derivative gains (losses)	(11		)	25
Total revenues	858			969
Expenses
Policyholder benefits and claims	610			608
Policyholder dividends	245			240
Other expenses	32			37
Total expenses	887			885
Revenues, net of expenses before provision for income tax expense (benefit)	(29		)	84
Provision for income tax expense (benefit)	(11		)	29
Revenues, net of expenses and provision for income tax expense (benefit)	$	(18	)	$	55

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.