Investments

9 Months Ended

Sep. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Investments

7. Investments

Fixed Maturity and Equity Securities Available-for-Sale

Fixed Maturity and Equity Securities Available-for-Sale by Sector

The following table presents the fixed maturity and equity securities available-for-sale (“AFS”) by sector. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities and non-redeemable preferred stock is reported within equity securities. Included within fixed maturity securities are structured securities including residential mortgage-backed securities (“RMBS”), asset-backed securities (“ABS”) and commercial mortgage-backed securities (“CMBS”) (collectively, “Structured Securities”).

	September 30, 2016											December 31, 2015
	Cost or Amortized Cost		Gross Unrealized							Estimated Fair Value		Cost or Amortized Cost		Gross Unrealized							Estimated Fair Value
			Gains		Temporary Losses		OTTI Losses							Gains		Temporary Losses		OTTI Losses
	(In millions)
Fixed maturity securities:
U.S. corporate	$	95,808	$	10,589	$	721	$	—		$	105,676	$	96,466	$	6,583	$	2,255	$	—		$	100,794
U.S. government and agency	60,340		9,491		46		—			69,785		56,499		5,373		226		—			61,646
Foreign corporate	57,423		4,264		1,268		—			60,419		56,003		3,019		1,822		2			57,198
Foreign government	54,425		9,479		139		—			63,765		45,451		5,269		221		—			50,499
RMBS	43,838		1,788		310		7			45,309		37,914		1,366		424		59			38,797
State and political subdivision	14,539		2,939		11		4			17,463		13,723		1,795		67		10			15,441
ABS	15,685		122		220		3			15,584		14,498		131		229		6			14,394
CMBS (1)	11,855		662		77		(1		)	12,441		12,410		347		125		(1		)	12,633
Total fixed maturity securities	$	353,913	$	39,334	$	2,792	$	13		$	390,442	$	332,964	$	23,883	$	5,369	$	76		$	351,402
Equity securities:
Common stock	$	2,000	$	449	$	14	$	—		$	2,435	$	1,962	$	397	$	107	$	—		$	2,252
Non-redeemable preferred stock	838		63		47		—			854		1,035		85		51		—			1,069
Total equity securities	$	2,838	$	512	$	61	$	—		$	3,289	$	2,997	$	482	$	158	$	—		$	3,321

__________________

(1) The noncredit loss component of other-than-temporary impairment (“OTTI”) losses for CMBS was in an unrealized gain position of $1 million at both September 30, 2016 and December 31, 2015 due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).”

The Company held non-income producing fixed maturity securities with an estimated fair value of $44 million and $54 million with unrealized gains (losses) of ($5) million and $12 million at September 30, 2016 and December 31, 2015, respectively.

Maturities of Fixed Maturity Securities

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at September 30, 2016:

	Due in One Year or Less		Due After One Year Through Five Years		Due After Five Years Through Ten Years		Due After Ten Years		Structured Securities		Total Fixed Maturity Securities
	(In millions)
Amortized cost	$	15,378	$	77,046	$	72,056	$	118,055	$	71,378	$	353,913
Estimated fair value	$	15,464	$	81,187	$	76,987	$	143,470	$	73,334	$	390,442

Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity.

Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities AFS by Sector

The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position at:

	September 30, 2016								December 31, 2015
	Less than 12 Months				Equal to or Greater than 12 Months				Less than 12 Months				Equal to or Greater than 12 Months
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(Dollars in millions)
Fixed maturity securities:
U.S. corporate	$	5,559	$	274	$	4,612	$	447	$	27,526	$	1,629	$	3,762	$	626
U.S. government and agency	6,305		24		164		22		19,628		222		298		4
Foreign corporate	6,781		404		6,112		864		14,447		911		5,251		913
Foreign government	2,136		75		851		64		3,530		166		429		55
RMBS	5,692		127		3,259		190		13,467		287		2,431		196
State and political subdivision	321		5		79		10		1,618		55		168		22
ABS	2,084		105		3,476		118		7,329		124		2,823		111
CMBS	701		34		791		42		4,876		81		637		43
Total fixed maturity securities	$	29,579	$	1,048	$	19,344	$	1,757	$	92,421	$	3,475	$	15,799	$	1,970
Equity securities:
Common stock	$	102	$	14	$	5	$	—	$	203	$	105	$	20	$	2
Non-redeemable preferred stock	49		3		163		44		79		2		200		49
Total equity securities	$	151	$	17	$	168	$	44	$	282	$	107	$	220	$	51
Total number of securities in an unrealized loss position	2,579				1,871				6,366				1,489

Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities

As described more fully in Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2015 Annual Report, the Company performs a regular evaluation of all investment classes for impairment, including fixed maturity securities, equity securities and perpetual hybrid securities, in accordance with its impairment policy, in order to evaluate whether such investments are other-than-temporarily impaired.

Current Period Evaluation

Based on the Company’s current evaluation of its AFS securities in an unrealized loss position in accordance with its impairment policy, and the Company’s current intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities, the Company concluded that these securities were not other-than-temporarily impaired at September 30, 2016. Future OTTI will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), changes in credit ratings, collateral valuation, interest rates and credit spreads. If economic fundamentals deteriorate or if there are adverse changes in the above factors, OTTI may be incurred in upcoming periods.

Gross unrealized losses on fixed maturity securities decreased$2.6 billionduring thenine months endedSeptember 30, 2016to$2.8 billion. The decrease in gross unrealized losses for thenine months endedSeptember 30, 2016was primarily attributable to a decrease in interest rates and, to a lesser extent, narrowing credit spreads.

At September 30, 2016, $321 million of the total $2.8 billion of gross unrealized losses were from 74 fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for six months or greater.

Investment Grade Fixed Maturity Securities

Of the $321 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $199 million, or 62%, were related to gross unrealized losses on 35 investment grade fixed maturity securities. Unrealized losses on investment grade fixed maturity securities are principally related to widening credit spreads and, with respect to fixed-rate fixed maturity securities, rising interest rates since purchase.

Below Investment Grade Fixed Maturity Securities

Of the $321 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $122 million, or 38%, were related to gross unrealized losses on 39 below investment grade fixed maturity securities. Unrealized losses on below investment grade fixed maturity securities are principally related to U.S. and foreign corporate securities (primarily industrial securities) and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainties including concerns over lower oil prices in the energy sector. Management evaluates U.S. and foreign corporate securities based on factors such as expected cash flows and the financial condition and near-term and long-term prospects of the issuers.

Equity Securities

Gross unrealized losses on equity securities decreased $97 million during the nine months endedSeptember 30, 2016 to $61 million. Of the $61 million, $38 million were from six securities with gross unrealized losses of 20% or more of cost for 12 months or greater. Of the $38 million, 61% were rated A or better, and all were from financial services industry investment grade non-redeemable preferred stock.

Mortgage Loans

Mortgage Loans by Portfolio Segment

Mortgage loans are summarized as follows at:

	September 30, 2016					December 31, 2015
	Carrying Value			% of Total		Carrying Value			% of Total
	(Dollars in millions)
Mortgage loans:
Commercial	$	45,801		64.4	%	$	44,012		65.6	%
Agricultural	14,141			19.9		13,188			19.6
Residential	10,920			15.3		9,734			14.5
Subtotal (1)	70,862			99.6		66,934			99.7
Valuation allowances	(330		)	(0.5	)	(318		)	(0.5	)
Subtotal mortgage loans, net	70,532			99.1		66,616			99.2
Residential — FVO	481			0.7		314			0.5
Commercial mortgage loans held by CSEs — FVO	143			0.2		172			0.3
Total mortgage loans, net	$	71,156		100.0	%	$	67,102		100.0	%

__________________

(1) Purchases of mortgage loans were$856 millionand$2.3 billionfor thethree monthsandnine months endedSeptember 30, 2016, respectively, and$1.0 billionand$3.2 billionfor thethree monthsandnine months endedSeptember 30, 2015, respectively.

See “— Variable Interest Entities” for discussion of consolidated securitization entities (“CSEs”).

Information on commercial, agricultural and residential mortgage loans is presented in the tables below. Information on residential — FVO and commercial mortgage loans held by CSEs — FVO is presented in Note 9. The Company elects the FVO for certain mortgage loans and related long-term debt that are managed on a total return basis.

Mortgage Loans, Valuation Allowance and Impaired Loans by Portfolio Segment

Mortgage loans by portfolio segment, by method of evaluation of credit loss, impaired mortgage loans including those modified in a troubled debt restructuring, and the related valuation allowances, were as follows at:

	Evaluated Individually for Credit Losses										Evaluated Collectively for Credit Losses				Impaired Loans
	Impaired Loans with a Valuation Allowance						Impaired Loans without a Valuation Allowance
	Unpaid Principal Balance		Recorded Investment		Valuation Allowances		Unpaid Principal Balance		Recorded Investment		Recorded Investment		Valuation Allowances		Carrying Value
	(In millions)
September 30, 2016
Commercial	$	—	$	—	$	—	$	12	$	12	$	45,789	$	227	$	12
Agricultural	16		13		1		39		38		14,090		42		50
Residential	—		—		—		236		215		10,705		60		215
Total	$	16	$	13	$	1	$	287	$	265	$	70,584	$	329	$	277
December 31, 2015
Commercial	$	—	$	—	$	—	$	57	$	57	$	43,955	$	217	$	57
Agricultural	49		47		3		22		21		13,120		39		65
Residential	—		—		—		141		131		9,603		59		131
Total	$	49	$	47	$	3	$	220	$	209	$	66,678	$	315	$	253

The average recorded investment for impaired commercial, agricultural and residential mortgage loans was $90 million, $52 million and $202 million, respectively, for the three months endedSeptember 30, 2016; and $109 million, $56 million and $174 million, respectively, for the nine months endedSeptember 30, 2016.

The average recorded investment for impaired commercial, agricultural and residential mortgage loans was $118 million, $62 million and $96 million, respectively, for the three months endedSeptember 30, 2015; and $144 million, $62 million and $72 million, respectively, for the nine months endedSeptember 30, 2015.

Valuation Allowance Rollforward by Portfolio Segment

The changes in the valuation allowance, by portfolio segment, were as follows:

	Nine Months   Ended   September 30,
	2016												2015
	Commercial			Agricultural			Residential			Total			Commercial			Agricultural		Residential			Total
	(In millions)
Balance, beginning of period	$	217		$	42		$	59		$	318		$	224		$	39	$	42		$	305
Provision (release) (1)	153			3			13			169			3			2		27			32
Charge-offs, net of recoveries (1)	(143		)	(2		)	(12		)	(157		)	(12		)	—		(14		)	(26		)
Balance, end of period	$	227		$	43		$	60		$	330		$	215		$	41	$	55		$	311

__________________

(1) In connection with an acquisition in 2010, certain impaired commercial mortgage loans were acquired and accordingly, were not originated by the Company. Such commercial mortgage loans have been accounted for as purchased credit impaired (“PCI”) commercial mortgage loans. As explained in Note 8 of the Notes to Consolidated Financial Statements included in the 2015 Annual Report, decreases in cash flows expected to be collected on PCI commercial mortgage loans can result in provisions for losses on mortgage loan. For the nine months endedSeptember 30, 2016, in connection with the maturity of an acquired PCI commercial mortgage loan, an increase to the commercial mortgage loan valuation allowance of$143 millionwas recorded and charged-off upon maturity. The Company will recover a substantial portion of the loss on the loan incurred through an indemnification agreement entered into in connection with the acquisition in 2010.

Credit Quality of Commercial Mortgage Loans

The credit quality of commercial mortgage loans was as follows at:

	Recorded Investment										Estimated Fair Value		% of Total
	Debt Service Coverage Ratios								% of Total
	> 1.20x		1.00x - 1.20x		< 1.00x		Total
	(Dollars in millions)
September 30, 2016
Loan-to-value ratios:
Less than 65%	$	41,391	$	879	$	675	$	42,945	93.8	%	$	44,770	93.9	%
65% to 75%	2,194		39		298		2,531		5.5		2,563		5.4
76% to 80%	42		—		—		42		0.1		40		0.1
Greater than 80%	143		53		87		283		0.6		299		0.6
Total	$	43,770	$	971	$	1,060	$	45,801	100	%	$	47,672	100	%
December 31, 2015
Loan-to-value ratios:
Less than 65%	$	38,163	$	1,063	$	544	$	39,770	90.4	%	$	40,921	90.7	%
65% to 75%	3,270		138		76		3,484		7.9		3,451		7.7
76% to 80%	—		—		—		—		—		—		—
Greater than 80%	381		140		237		758		1.7		732		1.6
Total	$	41,814	$	1,341	$	857	$	44,012	100.0	%	$	45,104	100.0	%

Credit Quality of Agricultural Mortgage Loans

The credit quality of agricultural mortgage loans was as follows at:

	September 30, 2016				December 31, 2015
	Recorded Investment		% of Total		Recorded Investment		% of Total
	(Dollars in millions)
Loan-to-value ratios:
Less than 65%	$	13,543	95.8	%	$	12,399	94.0	%
65% to 75%	532		3.8		710		5.4
76% to 80%	20		0.1		21		0.2
Greater than 80%	46		0.3		58		0.4
Total	$	14,141	100.0	%	$	13,188	100.0	%

The estimated fair value of agricultural mortgage loans was $14.6 billion and $13.5 billion at September 30, 2016 and December 31, 2015, respectively.

Credit Quality of Residential Mortgage Loans

The credit quality of residential mortgage loans was as follows at:

	September 30, 2016				December 31, 2015
	Recorded Investment		% of Total		Recorded Investment		% of Total
	(Dollars in millions)
Performance indicators:
Performing	$	10,587	97.0	%	$	9,408	96.7	%
Nonperforming	333		3.0		326		3.3
Total	$	10,920	100.0	%	$	9,734	100.0	%

The estimated fair value of residential mortgage loans was $11.4 billion and $9.9 billion at September 30, 2016 and December 31, 2015, respectively.

Past Due and Interest Accrual Status of Mortgage Loans

The Company has a high quality, well performing mortgage loan portfolio, with 99% of all mortgage loans classified as performing at both September 30, 2016 and December 31, 2015. The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days. The past due and accrual status of mortgage loans at recorded investment, prior to valuation allowances, by portfolio segment, were as follows at:

	Past Due				Nonaccrual Status
	September 30, 2016		December 31, 2015		September 30, 2016		December 31, 2015
	(In millions)
Commercial	$	—	$	2	$	—	$	—
Agricultural	144		103		39		46
Residential	333		326		322		318
Total	$	477	$	431	$	361	$	364

Mortgage Loans Modified in a Troubled Debt Restructuring

During both thethree monthsandnine months endedSeptember 30, 2016and2015, the Company did not have a significant amount of mortgage loans modified in a troubled debt restructuring.

Cash Equivalents

The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $7.3 billion and $7.5 billion at September 30, 2016 and December 31, 2015, respectively.

Net Unrealized Investment Gains (Losses)

Unrealized investment gains (losses) on fixed maturity and equity securities AFS and the effect on DAC, VOBA, deferred sales inducements (“DSI”), future policy benefits and the policyholder dividend obligation, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI.

The components of net unrealized investment gains (losses), included in AOCI, were as follows:

	September 30, 2016			December 31, 2015
	(In millions)
Fixed maturity securities	$	36,444		$	18,164
Fixed maturity securities with noncredit OTTI losses included in AOCI	(13		)	(76		)
Total fixed maturity securities	36,431			18,088
Equity securities	579			422
Derivatives	3,648			2,350
Other	397			287
Subtotal	41,055			21,147
Amounts allocated from:
Future policy benefits	(5,571		)	(163		)
DAC and VOBA related to noncredit OTTI losses recognized in AOCI	(2		)	—
DAC, VOBA and DSI	(2,390		)	(1,273		)
Policyholder dividend obligation	(3,352		)	(1,783		)
Subtotal	(11,315		)	(3,219		)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	7			27
Deferred income tax benefit (expense)	(10,078		)	(6,151		)
Net unrealized investment gains (losses)	19,669			11,804
Net unrealized investment gains (losses) attributable to noncontrolling interests	(12		)	(31		)
Net unrealized investment gains (losses) attributable to MetLife, Inc.	$	19,657		$	11,773

The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows:

	Nine Months   Ended   September 30, 2016			Year   Ended   December 31, 2015
	(In millions)
Balance, beginning of period	$	(76	)	$	(112	)
Noncredit OTTI losses and subsequent changes recognized	12			6
Securities sold with previous noncredit OTTI loss	34			125
Subsequent changes in estimated fair value	17			(95		)
Balance, end of period	$	(13	)	$	(76	)

The changes in net unrealized investment gains (losses) were as follows:

	Nine Months   Ended   September 30, 2016
	(In millions)
Balance, beginning of period	$	11,773
Fixed maturity securities on which noncredit OTTI losses have been recognized	63
Unrealized investment gains (losses) during the period	19,845
Unrealized investment gains (losses) relating to:
Future policy benefits	(5,408		)
DAC and VOBA related to noncredit OTTI losses recognized in AOCI	(2		)
DAC, VOBA and DSI	(1,117		)
Policyholder dividend obligation	(1,569		)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	(20		)
Deferred income tax benefit (expense)	(3,927		)
Net unrealized investment gains (losses)	19,638
Net unrealized investment gains (losses) attributable to noncontrolling interests	19
Balance, end of period	$	19,657
Change in net unrealized investment gains (losses)	$	7,865
Change in net unrealized investment gains (losses) attributable to noncontrolling interests	19
Change in net unrealized investment gains (losses) attributable to MetLife, Inc.	$	7,884

Concentrations of Credit Risk

Investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, were in fixed income securities of the Japanese government and its agencies with an estimated fair value of $29.4 billion and $20.9 billion at September 30, 2016 and December 31, 2015, respectively. The Company’s investment in fixed maturity and equity securities to counterparties that primarily conduct business in Japan, including Japan government and agency fixed maturity securities, was $33.8 billion and $25.4 billion at September 30, 2016 and December 31, 2015, respectively.

Securities Lending

Elements of the securities lending program are presented below at:

	September 30, 2016		December 31, 2015
	(In millions)
Securities on loan: (1)
Amortized cost	$	26,855	$	27,223
Estimated fair value	$	31,326	$	29,646
Cash collateral on deposit from counterparties (2)	$	32,119	$	30,197
Security collateral on deposit from counterparties (3)	$	134	$	50
Reinvestment portfolio — estimated fair value	$	32,454	$	30,258

__________________

(1) Included within fixed maturity securities, cash equivalents and short-term investments. At September 30, 2016, both amortized cost and estimated fair value also included $114 million, at estimated fair value, of securities which are not reflected on the consolidated financial statements.

(2) Included within payables for collateral under securities loaned and other transactions.

(3) Security collateral on deposit from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the consolidated financial statements.

The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at:

	September 30, 2016								December 31, 2015
	Remaining Tenor of Securities Lending Agreements								Remaining Tenor of Securities Lending Agreements
	Open (1)		1 Month or Less		1 to 6 Months		Total		Open (1)		1 Month or Less		1 to 6 Months		Total
	(In millions)
Cash collateral liability by loaned security type:
U.S. government and agency	$	8,362	$	10,162	$	11,090	$	29,614	$	10,116	$	11,157	$	5,986	$	27,259
Agency RMBS	—		—		1,196		1,196		—		951		600		1,551
Foreign government	—		836		50		886		2		510		486		998
U.S. corporate	1		391		—		392		9		380		—		389
Foreign corporate	—		31		—		31		—		—		—		—
Total	$	8,363	$	11,420	$	12,336	$	32,119	$	10,127	$	12,998	$	7,072	$	30,197

__________________

(1) The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral.

If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized under normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at September 30, 2016 was $8.1 billion, over 99% of which were U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement.

The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including U.S. government and agency, agency RMBS, short-term investments, ABS and U.S. corporate securities) with 65% invested in U.S. government and agency securities, agency RMBS, short-term investments, or held in cash and cash equivalents. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company.

Repurchase Agreement Transactions

The Company participates in contemporaneous short-term repurchase agreements and reverse repurchase agreements with unaffiliated financial institutions. Under these agreements, the Company lends fixed maturity securities and contemporaneously borrows other fixed maturity securities (e.g., repurchase and reverse repurchase, respectively). The Company obtains cash collateral in an amount greater than or equal to 95% of the estimated fair value of the securities loaned, and pledges cash collateral in an amount generally equal to 98% of the estimated fair value of the borrowed securities at the inception of the transaction. The Company monitors the estimated fair value of the securities loaned and borrowed with additional collateral obtained as necessary throughout the duration of the transaction.

The Company accounted for these transactions as collateralized borrowing and lending. The amount of fixed maturity securities lent and borrowed, at estimated fair value, was $316 million and $306 million, respectively, at September 30, 2016. There were no such transactions outstanding as of December 31, 2015. Securities loaned under such transactions may be sold or re-pledged by the transferee. Securities borrowed under such transactions may be re-pledged and are not reflected on the consolidated financial statements. The amount of borrowed securities which were re-pledged was $114 million, at estimated fair value, at September 30, 2016.

The Company has elected to offset amounts recognized as receivables and payables resulting from these transactions. The gross amounts of the receivables and payables related to these transactions at September 30, 2016 were both $300 million. After the effect of offsetting of $300 million, the net amount presented on the consolidated balance sheet at September 30, 2016 was a liability of less than $1 million. Amounts owed to and due from counterparties may be settled in cash or offset, in accordance with the agreements. Cash inflows and outflows for cash settlements are reported on the consolidated statements of cash flows. At September 30, 2016, all $300 million of payables from repurchase agreements had a remaining tenor of one to six months and were primarily loans of U.S. corporate securities.

See Note 8 for information regarding the estimated fair value of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral.

The Company also participates in other short-term repurchase agreements with unaffiliated financial institutions. Under these agreements, the Company lends fixed maturity securities and receives cash as collateral in an amount generally equal to 85% to 100% of the estimated fair value of the securities loaned at the inception of the transaction. The associated liability is recorded at the amount of cash received. The Company monitors the estimated fair value of the collateral and the securities loaned throughout the duration of the transaction and additional collateral is obtained as necessary. Securities loaned under such transactions may be sold or re-pledged by the transferee.

Elements of the other short-term repurchase agreements are presented below at:

	September 30, 2016		December 31, 2015
	(In millions)
Securities on loan included within fixed maturity securities:
Amortized cost	$	91	$	51
Estimated fair value	$	109	$	56
Cash collateral received included within other liabilities	$	101	$	50
Reinvestment portfolio — estimated fair value	$	99	$	50

The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at:

	September 30, 2016						December 31, 2015
	Remaining Tenor of Other Repurchase Agreements						Remaining Tenor of Other Repurchase Agreements
	1 Month or Less		1 to 6  Months		Total		1 Month or Less		1 to 6 Months		Total
	(In millions)
Cash collateral liability by loaned security type:
Foreign corporate	$	14	$	13	$	27	$	—	$	25	$	25
All other corporate and government	37		37		$	74	—		25		$	25
Total	$	51	$	50	$	101	$	—	$	50	$	50

Invested Assets on Deposit, Held in Trust and Pledged as Collateral

Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value for all asset classes, except mortgage loans, which are presented at carrying value at:

	September 30, 2016		December 31, 2015
	(In millions)
Invested assets on deposit (regulatory deposits)	$	10,425	$	9,089
Invested assets held in trust (collateral financing arrangements and reinsurance agreements)	11,902		10,443
Invested assets pledged as collateral (1)	29,296		23,145
Total invested assets on deposit, held in trust and pledged as collateral	$	51,623	$	42,677

__________________

(1) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Notes 4 and 12 of the Notes to the Consolidated Financial Statements included in the 2015 Annual Report), collateral financing arrangements (see Note 13 of the Notes to the Consolidated Financial Statements included in the 2015 Annual Report) and derivative transactions (see Note 8).

See “— Securities Lending” and “— Repurchase Agreement Transactions” for information regarding securities on loan and Note 6 for information regarding investments designated to the closed block.

Variable Interest Entities

The Company is involved with certain legal entities that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity.

Consolidated VIEs

Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment.

The following table presents the total assets and total liabilities relating to VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at:

	September 30, 2016				December 31, 2015
	Total Assets		Total Liabilities		Total Assets		Total Liabilities
	(In millions)
MRSC (collateral financing arrangement (primarily securities)) (1)	$	3,533	$	—	$	3,374	$	—
Operating joint venture (2)	—		—		2,465		2,079
CSEs (assets (primarily loans) and liabilities (primarily debt)) (3)	156		38		186		62
Other investments (4)	50		—		76		—
Total	$	3,739	$	38	$	6,101	$	2,141

__________________

(1) See Note 13 of the Notes to the Consolidated Financial Statements included in the 2015 Annual Report for a description of the MetLife Reinsurance Company of South Carolina (“MRSC”) collateral financing arrangement.

(2) Following a change in the foreign investment law in India, the Company no longer consolidated its India operating joint venture, effective January 1, 2016. Assets of the operating joint venture are primarily fixed maturity securities and separate account assets. Liabilities of the operating joint venture are primarily future policy benefits, other policy-related balances and separate account liabilities.

(3) The Company consolidates entities that are structured as CMBS and as collateralized debt obligations. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company’s exposure was limited to that of its remaining investment in these entities of $98 million and $105 million at estimated fair value at September 30, 2016 and December 31, 2015, respectively.

(4) Other investments is primarily comprised of other invested assets and other limited partnership interests.

Unconsolidated VIEs

The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at:

	September 30, 2016				December 31, 2015
	Carrying Amount		Maximum Exposure to Loss (1)		Carrying Amount		Maximum Exposure to Loss (1)
	(In millions)
Fixed maturity securities AFS:
Structured Securities (2)	$	73,334	$	73,334	$	65,824	$	65,824
U.S. and foreign corporate	3,374		3,374		3,261		3,261
Other limited partnership interests	5,978		10,572		5,186		7,074
Other invested assets	2,184		2,771		1,604		2,161
FVO and trading securities	576		576		586		586
Real estate joint ventures	107		137		65		82
Other (3)	120		120		71		71
Total	$	85,673	$	90,884	$	76,597	$	79,059

__________________

(1) The maximum exposure to loss relating to fixed maturity securities AFS, FVO and trading securities and equity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests, mortgage loans and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of $151 million and $179 million at September 30, 2016 and December 31, 2015, respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee.

(2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity.

(3) Other is comprised of mortgage loans, non-redeemable preferred stock and a loan receivable.

As described in Note 15, the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs during both the nine months endedSeptember 30, 2016 and 2015.

Net Investment Income

The components of net investment income were as follows:

	Three Months   Ended   September 30,					Nine Months   Ended   September 30,
	2016		2015			2016		2015
	(In millions)
Investment income:
Fixed maturity securities	$	3,583	$	3,525		$	10,801	$	10,738
Equity securities	35		36			105		102
FVO and trading securities — Actively traded and FVO general account securities (1)	25		(35		)	41		4
Mortgage loans	806		786			2,464		2,317
Policy loans	148		147			444		450
Real estate and real estate joint ventures	210		233			516		767
Other limited partnership interests	263		216			429		681
Cash, cash equivalents and short-term investments	43		29			126		101
Operating joint ventures	5		(1		)	28		15
Other	95		28			187		180
Subtotal	5,213		4,964			15,141		15,355
Less: Investment expenses	281		308			862		923
Subtotal, net	4,932		4,656			14,279		14,432
FVO and trading securities — FVO contractholder-directed unit-linked investments (1)	529		(701		)	623		(79		)
FVO CSEs — interest income:
Commercial mortgage loans	3		4			8		13
Securities	—		—			—		1
Subtotal	532		(697		)	631		(65		)
Net investment income	$	5,464	$	3,959		$	14,910	$	14,367

__________________

(1) Changes in estimated fair value subsequent to purchase for securities still held as of the end of the respective periods included in net investment income were principally from FVO contractholder-directed unit-linked investments and, to a much lesser extent, Actively traded and FVO general account securities, and were $407 million and $283 million for the three months and nine months ended September 30, 2016, respectively, and ($872) million and ($645) million for the three months and nine months ended September 30, 2015, respectively.

See “— Variable Interest Entities” for discussion of CSEs.

FVO and trading securities are primarily comprised of securities for which the FVO has been elected (“FVO securities”). FVO securities include certain fixed maturity and equity securities held-for-investment by the general account to support asset and liability management strategies for certain insurance products and investments in certain separate accounts. FVO securities are primarily comprised of contractholder-directed investments supporting unit-linked variable annuity type liabilities which do not qualify for presentation as separate account summary total assets and liabilities. The investment returns on these investments inure to the contractholders and are offset by a corresponding change in policyholder account balances through interest credited to policyholder account balances. FVO securities also include securities held by CSEs. The Company previously maintained a trading securities portfolio, principally invested in fixed maturity securities, to support investment strategies that involved the active and frequent purchase and sale of actively traded securities and the execution of short sale agreements. In June 2016, the Company commenced a reinvestment of this portfolio into other asset classes and, at September 30, 2016, the Company no longer held any actively traded securities.

Net Investment Gains (Losses)

Components of Net Investment Gains (Losses)

The components of net investment gains (losses) were as follows:

	Three Months   Ended   September 30,						Nine Months   Ended   September 30,
	2016			2015			2016			2015
	(In millions)
Total gains (losses) on fixed maturity securities:
Total OTTI losses recognized — by sector and industry:
U.S. and foreign corporate securities — by industry:
Consumer	$	—		$	(17	)	$	—		$	(20	)
Industrial	—			(3		)	(79		)	(5		)
Communications	—			—			(3		)	—
Total U.S. and foreign corporate securities	—			(20		)	(82		)	(25		)
RMBS	(14		)	(1		)	(22		)	(16		)
ABS	—			—			(2		)	—
State and political subdivision	—			(6		)	—			(6		)
OTTI losses on fixed maturity securities recognized in earnings	(14		)	(27		)	(106		)	(47		)
Fixed maturity securities — net gains (losses) on sales and disposals	176			115			439			383
Total gains (losses) on fixed maturity securities	162			88			333			336
Total gains (losses) on equity securities:
Total OTTI losses recognized — by sector:
Non-redeemable preferred stock	—			(1		)	—			(1		)
Common stock	(5		)	(6		)	(72		)	(15		)
OTTI losses on equity securities recognized in earnings	(5		)	(7		)	(72		)	(16		)
Equity securities — net gains (losses) on sales and disposals	13			14			32			39
Total gains (losses) on equity securities	8			7			(40		)	23
Mortgage loans	(31		)	(26		)	(193		)	(78		)
Real estate and real estate joint ventures	(14		)	263			33			257
Other limited partnership interests	(9		)	(59		)	(50		)	(52		)
Other	(19		)	18			(94		)	14
Subtotal	97			291			(11		)	500
FVO CSEs:
Commercial mortgage loans	(3		)	(4		)	(3		)	(6		)
Securities	1			—			2			—
Long-term debt — related to commercial mortgage loans	1			1			1			3
Non-investment portfolio gains (losses) (1)	161			94			549			38
Subtotal	160			91			549			35
Total net investment gains (losses)	$	257		$	382		$	538		$	535

__________________

(1) Includes a gain from the U.S. Retail Advisor Force Divestiture of $103 million during both the three months and nine months ended September 30, 2016. See Note 3.

See “— Variable Interest Entities” for discussion of CSEs.

Gains (losses) from foreign currency transactions included within net investment gains (losses) were$69 millionand$437 millionfor thethree monthsandnine months endedSeptember 30, 2016, respectively, and$53 millionand($29) millionfor thethree monthsandnine months endedSeptember 30, 2015, respectively.

Sales or Disposals and Impairments of Fixed Maturity and Equity Securities

Investment gains and losses on sales of securities are determined on a specific identification basis. Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains (losses) were as shown in the table below.

	Three Months   Ended   September 30,
	2016			2015			2016			2015
	Fixed Maturity Securities						Equity Securities
	(In millions)
Proceeds	$	25,091		$	27,264		$	64		$	55
Gross investment gains	$	310		$	371		$	15		$	20
Gross investment losses	(134		)	(256		)	(2		)	(6		)
OTTI losses	(14		)	(27		)	(5		)	(7		)
Net investment gains (losses)	$	162		$	88		$	8		$	7

	Nine Months   Ended   September 30,
	2016			2015			2016			2015
	Fixed Maturity Securities						Equity Securities
	(In millions)
Proceeds	$	83,352		$	86,590		$	151		$	211
Gross investment gains	$	1,025		$	1,047		$	40		$	54
Gross investment losses	(586		)	(664		)	(8		)	(15		)
OTTI losses	(106		)	(47		)	(72		)	(16		)
Net investment gains (losses)	$	333		$	336		$	(40	)	$	23

Credit Loss Rollforward

The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still held for which a portion of the OTTI loss was recognized in other comprehensive income (loss) (“OCI”):

	Three Months   Ended   September 30,						Nine Months   Ended   September 30,
	2016			2015			2016			2015
	(In millions)
Balance, beginning of period	$	258		$	280		$	277		$	357
Additions:
Initial impairments — credit loss OTTI on securities not previously impaired	1			—			1			2
Additional impairments — credit loss OTTI on securities previously impaired	10			1			18			14
Reductions:
Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI	(17		)	(22		)	(43		)	(113		)
Securities impaired to net present value of expected future cash flows	—			—			(1		)	—
Increase in cash flows — accretion of previous credit loss OTTI	—			(1		)	—			(2		)
Balance, end of period	$	252		$	258		$	252		$	258