Segment Information

6 Months Ended

Jun. 30, 2016

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, MetLife, Inc. 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”). Additionally, on July 21, 2016, MetLife, Inc. announced that the separated business will be rebranded as “Brighthouse Financial” after the Separation. The Company is currently evaluating structural alternatives for the proposed Separation, including a public offering of shares in an independent, publicly traded company, a spin-off, or a sale. The completion of a public offering would depend on, among other things, the U.S. Securities and Exchange Commission (“SEC”) filing and review process, as well as market conditions. A Separation, depending on the specific form, would be subject to the satisfaction of various conditions and approvals, including, among other things, approval of any transaction by the MetLife, Inc. Board of Directors, satisfaction of any applicable requirements of the SEC, and receipt of insurance and other regulatory approvals and other anticipated conditions. See Note 14.

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, fixed and indexed 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 contracts 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 net income (loss). 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. In addition, for the three months ended March 31, 2016 and the six months endedJune 30, 2016, operating revenues and operating expenses exclude the financial impact of converting the Company’s Japan operations to calendar year-end reporting without retrospective application of this change to prior periods and is referred to as lag elimination. 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 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 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 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 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, integration and other 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 thethree monthsandsix months endedJune 30, 2016 and 2015. 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 net income (loss).

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 June 30, 2016	Retail			Group, Voluntary & Worksite Benefits			Corporate Benefit Funding			Latin America			Total			Asia			EMEA			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	1,695		$	4,276		$	517		$	716		$	7,204		$	1,681		$	519		$	13		$	9,417		$	—		$	9,417
Universal life and investment-type product policy fees	1,156			197			61			269			1,683			370			95			25			2,173			113			2,286
Net investment income	1,950			458			1,421			247			4,076			678			83			44			4,881			6			4,887
Other revenues	224			117			72			9			422			16			19			27			484			3			487
Net investment gains (losses)	—			—			—			—			—			—			—			—			—			266			266
Net derivative gains (losses)	—			—			—			—			—			—			—			—			—			(2,099		)	(2,099		)
Total revenues	5,025			5,048			2,071			1,241			13,385			2,745			716			109			16,955			(1,711		)	15,244
Expenses
Policyholder benefits and claims and policyholder dividends	2,937			3,990			1,181			645			8,753			1,324			283			25			10,385			213			10,598
Interest credited to policyholder account balances	525			37			313			84			959			324			30			1			1,314			186			1,500
Capitalization of DAC	(245		)	(39		)	(1		)	(96		)	(381		)	(426		)	(106		)	(2		)	(915		)	—			(915		)
Amortization of DAC and VOBA	487			39			4			75			605			304			103			3			1,015			(894		)	121
Amortization of negative VOBA	—			—			—			—			—			(57		)	(4		)	—			(61		)	(6		)	(67		)
Interest expense on debt	1			1			2			—			4			—			—			299			303			3			306
Other expenses	1,124			685			109			373			2,291			877			336			155			3,659			142			3,801
Total expenses	4,829			4,713			1,608			1,081			12,231			2,346			642			481			15,700			(356		)	15,344
Provision for income tax expense (benefit)	12			114			161			32			319			140			10			(184		)	285			(499		)	(214		)
Operating earnings	$	184		$	221		$	302		$	128		$	835		$	259		$	64		$	(188	)	970
Adjustments to:
Total revenues																									(1,711		)
Total expenses																									356
Provision for income tax (expense) benefit																									499
Net income (loss)																									$	114					$	114

	Operating Results
	Americas
Three Months Ended June 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	$	1,747		$	4,104		$	319		$	783		$	6,953		$	1,809		$	525		$	26		$	9,313		$	(1	)	$	9,312
Universal life and investment-type product policy fees	1,252			183			59			301			1,795			400			114			26			2,335			99			2,434
Net investment income	2,003			481			1,526			283			4,293			679			84			129			5,185			(238		)	4,947
Other revenues	263			114			77			7			461			28			19			19			527			(9		)	518
Net investment gains (losses)	—			—			—			—			—			—			—			—			—			(133		)	(133		)
Net derivative gains (losses)	—			—			—			—			—			—			—			—			—			(912		)	(912		)
Total revenues	5,265			4,882			1,981			1,374			13,502			2,916			742			200			17,360			(1,194		)	16,166
Expenses
Policyholder benefits and claims and policyholder dividends	2,373			3,805			933			744			7,855			1,375			265			8			9,503			180			9,683
Interest credited to policyholder account balances	551			38			294			89			972			328			34			8			1,342			(44		)	1,298
Capitalization of DAC	(257		)	(36		)	(4		)	(100		)	(397		)	(398		)	(132		)	—			(927		)	—			(927		)
Amortization of DAC and VOBA	400			39			6			86			531			336			133			1			1,001			(104		)	897
Amortization of negative VOBA	—			—			—			(1		)	(1		)	(78		)	(4		)	—			(83		)	(9		)	(92		)
Interest expense on debt	—			—			1			—			1			—			—			306			307			1			308
Other expenses	1,220			681			130			419			2,450			869			389			174			3,882			4			3,886
Total expenses	4,287			4,527			1,360			1,237			11,411			2,432			685			497			15,025			28			15,053
Provision for income tax expense (benefit)	288			124			215			21			648			59			7			(175		)	539			(545		)	(6		)
Operating earnings	$	690		$	231		$	406		$	116		$	1,443		$	425		$	50		$	(122	)	1,796
Adjustments to:
Total revenues																									(1,194		)
Total expenses																									(28		)
Provision for income tax (expense) benefit																									545
Net income (loss)																									$	1,119					$	1,119

	Operating Results
	Americas
Six Months Ended June 30, 2016	Retail			Group, Voluntary & Worksite Benefits			Corporate Benefit Funding			Latin America			Total			Asia			EMEA			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	3,435		$	8,570		$	875		$	1,407		$	14,287		$	3,339		$	1,019		$	39		$	18,684		$	426		$	19,110
Universal life and investment-type product policy fees	2,305			382			141			537			3,365			720			190			49			4,324			306			4,630
Net investment income	3,830			905			2,763			504			8,002			1,296			163			126			9,587			(141		)	9,446
Other revenues	439			248			142			16			845			33			39			54			971			3			974
Net investment gains (losses)	—			—			—			—			—			—			—			—			—			281			281
Net derivative gains (losses)	—			—			—			—			—			—			—			—			—			(764		)	(764		)
Total revenues	10,009			10,105			3,921			2,464			26,499			5,388			1,411			268			33,566			111			33,677
Expenses
Policyholder benefits and claims and policyholder dividends	5,395			8,024			2,143			1,262			16,824			2,560			544			50			19,978			613			20,591
Interest credited to policyholder account balances	1,047			74			623			164			1,908			643			59			5			2,615			211			2,826
Capitalization of DAC	(500		)	(75		)	(1		)	(193		)	(769		)	(811		)	(207		)	(4		)	(1,791		)	(105		)	(1,896		)
Amortization of DAC and VOBA	860			79			9			148			1,096			590			205			5			1,896			(780		)	1,116
Amortization of negative VOBA	—			—			—			—			—			(121		)	(7		)	—			(128		)	(38		)	(166		)
Interest expense on debt	3			1			4			—			8			—			—			607			615			3			618
Other expenses	2,273			1,397			229			744			4,643			1,728			669			329			7,369			397			7,766
Total expenses	9,078			9,500			3,007			2,125			23,710			4,589			1,263			992			30,554			301			30,855
Provision for income tax expense (benefit)	215			210			317			74			816			235			21			(365		)	707			(202		)	505
Operating earnings	$	716		$	395		$	597		$	265		$	1,973		$	564		$	127		$	(359	)	2,305
Adjustments to:
Total revenues																									111
Total expenses																									(301		)
Provision for income tax (expense) benefit																									202
Net income (loss)																									$	2,317					$	2,317

	Operating Results
	Americas
Six Months Ended June 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	$	3,496		$	8,221		$	737		$	1,482		$	13,936		$	3,561		$	1,033		$	36		$	18,566		$	(1	)	$	18,565
Universal life and investment-type product policy fees	2,488			371			113			595			3,567			797			216			49			4,629			199			4,828
Net investment income	3,983			959			2,956			501			8,399			1,363			167			238			10,167			241			10,408
Other revenues	514			227			148			17			906			56			29			39			1,030			(17		)	1,013
Net investment gains (losses)	—			—			—			—			—			—			—			—			—			153			153
Net derivative gains (losses)	—			—			—			—			—			—			—			—			—			(91		)	(91		)
Total revenues	10,481			9,778			3,954			2,595			26,808			5,777			1,445			362			34,392			484			34,876
Expenses
Policyholder benefits and claims and policyholder dividends	4,822			7,640			1,924			1,325			15,711			2,715			504			20			18,950			329			19,279
Interest credited to policyholder account balances	1,093			75			587			175			1,930			665			64			14			2,673			620			3,293
Capitalization of DAC	(504		)	(72		)	(10		)	(211		)	(797		)	(833		)	(265		)	—			(1,895		)	—			(1,895		)
Amortization of DAC and VOBA	775			80			11			164			1,030			662			261			1			1,954			(32		)	1,922
Amortization of negative VOBA	—			—			—			(1		)	(1		)	(164		)	(8		)	—			(173		)	(19		)	(192		)
Interest expense on debt	(1		)	—			2			—			1			—			—			603			604			2			606
Other expenses	2,396			1,345			254			844			4,839			1,773			751			319			7,682			9			7,691
Total expenses	8,581			9,068			2,768			2,296			22,713			4,818			1,307			957			29,795			909			30,704
Provision for income tax expense (benefit)	557			251			411			52			1,271			207			18			(363		)	1,133			(243		)	890
Operating earnings	$	1,343		$	459		$	775		$	247		$	2,824		$	752		$	120		$	(232	)	3,464
Adjustments to:
Total revenues																									484
Total expenses																									(909		)
Provision for income tax (expense) benefit																									243
Net income (loss)																									$	3,282					$	3,282

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

	June 30, 2016		December 31, 2015
	(In millions)
Retail	$	364,611	$	347,257
Group, Voluntary & Worksite Benefits	51,721		46,476
Corporate Benefit Funding	236,311		225,015
Latin America	68,971		65,266
Asia	131,537		113,895
EMEA	27,007		26,767
Corporate & Other	62,409		53,257
Total	$	942,567	$	877,933