Segment Information

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Information

2. Segment Information

In anticipation of the Separation, in the third quarter of 2016, MetLife reorganized its businesses intosixsegments: U.S.; Asia; Latin America; EMEA; MetLife Holdings; and Brighthouse Financial. In addition, the Company reports certain of its results of operations in Corporate & Other. These changes were applied retrospectively and did not have an impact on total consolidated net income (loss) or operating earnings in the prior periods.

On January 12, 2016, MetLife, Inc. announced its plan to pursue the Separation. Additionally, on July 21, 2016, MetLife, Inc. announced that following the Separation, the separated business will be rebranded as “Brighthouse Financial.” On October 5, 2016, Brighthouse Financial, Inc., a subsidiary of MetLife, Inc. (“Brighthouse”), filed a registration statement on Form 10 (the “Form 10”) with the U.S. Securities and Exchange Commission (“SEC”). The information statement filed as an exhibit to the Form 10, disclosed that the Company intends to include MetLife Insurance Company USA (“MetLife USA”), New England Life Insurance Company (“NELICO”), First MetLife Investors Insurance Company (“FMLI”), MetLife Advisers, LLC and certain captive reinsurance companies in the proposed separated business and distribute at least 80.1% of the shares of Brighthouse’s common stock on apro ratabasis to the holders of MetLife, Inc. common stock.

The ultimate form and timing of the Separation will be influenced by a number of factors, including regulatory considerations and economic conditions. MetLife continues to evaluate and pursue structural alternatives for the proposed Separation. The Separation remains subject to certain conditions, including among others, obtaining final approval from the MetLife, Inc. Board of Directors, receipt of a favorable ruling from the Internal Revenue Service and an opinion from MetLife’s tax advisor regarding certain U.S. federal income tax matters, and an SEC declaration of the effectiveness of the Form 10.

This re-segmentation resulted in a $296 million, net of income tax, charge to earnings in the current period, all in the Brighthouse Financial segment, driven by the segment’s variable and universal life products. This charge is the direct result of the Company, beginning in the third quarter, no longer being able to aggregate, for loss recognition testing, the variable and universal life products of Brighthouse Financial with the variable and universal life products remaining with MetLife Holdings. Of this amount, the Company recorded $254 million, net of income tax, as a one-time charge, which was mostly recognized as a write-off of deferred policy acquisition costs (“DAC”), with the remaining $42 million, net of income tax, recognized as an increase in insurance-related liabilities.

U.S.

The U.S. segment offers a broad range of protection products and services aimed at serving the financial needs of customers throughout their lives. These products are sold to corporations and their respective employees, other institutions and their respective members, as well as individuals. The U.S. segment is organized into three businesses: Group Benefits, Retirement & Income Solutions and Property & Casualty.

• The Group Benefits business offers insurance products and services which include life, dental, group short- and long-term disability, individual disability, accidental death and dismemberment, critical illness, vision and accident & health coverages, as well as prepaid legal plans. This business also sells administrative services-only arrangements to some employers.

• The Retirement & Income Solutions business 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 business 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.

• The Property & Casualty business offers personal and commercial lines property and casualty insurance, including private passenger automobile, homeowners’ and personal excess liability insurance. In addition, Property & Casualty offers small business owners property, liability and business interruption insurance.

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.

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.

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.

MetLife Holdings

The MetLife Holdings segment consists of operations relating to products and businesses no longer actively marketed by the Company in the U.S. These products and businesses include variable life, universal life, term life, whole life, variable annuities, fixed annuities and index-linked annuities. The MetLife Holdings segment also includes the Company’s discontinued long-term care businesses and the assumed reinsurance of certain variable annuity products from the Company’s former operating joint venture in Japan.

Brighthouse Financial

The Brighthouse Financial segment offers a broad range of products and services which include variable annuities, fixed annuities, index-linked annuities, income annuities, term life, whole life, universal life and variable life, as well as certain run-off businesses. These products and services, which exclude the run-off businesses, are actively marketed through various third party retail distribution channels in the U.S.

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 and 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, as well as the direct to consumer portion of the U.S. Direct business). 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 affiliated reinsurance and intersegment loans, which bear interest rates commensurate with related borrowings.

Financial Measures and Segment Accounting Policies

Operating earnings is used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, operating earnings is also the Company’s GAAP 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 allows analysis of the Company’s performance relative to the Company’s business plan and facilitates comparisons to industry results.

Operating earnings is defined as operating revenues less operating expenses, both net of income tax.

The financial measures of operating revenues and operating expenses focus on the Company’s primary businesses principally by excluding the impact of market volatility, which could distort trends, and revenues and costs related to non-core products and divested businesses and certain entities required to be consolidated under GAAP. Also, these measures 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 nine months ended September 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) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iii) excludes certain amounts related to contractholder-directed unit-linked investments and (iv) 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 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.

The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax rate, which could differ from the Company’s effective tax rate. Additionally, the 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 monthsandnine months endedSeptember 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, with the exception of the Brighthouse Financial segment,for which equity is reflective of the historical equity of the legal entities which comprise Brighthouse and related companies, which will be eliminated upon Separation. The Brighthouse Financial segment equity is not indicative of Brighthouse and related companies’ equity on a combined standalone basis.

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, with the exception of the Brighthouse Financial segment, 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, net income (loss) or operating earnings. As noted above, the Brighthouse Financial segment’s net investment income represents that of the legal entities which comprise Brighthouse and related companies on a historical basis, however, may not be indicative of that on a combined standalone basis.

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
Three Months Ended September 30, 2016	U.S.			Asia			Latin America			EMEA			MetLife Holdings			Brighthouse Financial			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	5,936		$	1,822		$	653		$	500		$	1,093		$	347		$	40		$	10,391		$	—		$	10,391
Universal life and investment-type product policy fees	245			394			227			104			357			903			(31		)	2,199			97			2,296
Net investment income	1,590			707			311			81			1,537			941			(7		)	5,160			304			5,464
Other revenues	192			12			11			17			105			50			(28		)	359			7			366
Net investment gains (losses)	—			—			—			—			—			—			—			—			257			257
Net derivative gains (losses)	—			—			—			—			—			—			—			—			(1,051		)	(1,051		)
Total revenues	7,963			2,935			1,202			702			3,092			2,241			(26		)	18,109			(386		)	17,723
Expenses
Policyholder benefits and claims and policyholder dividends	5,894			1,363			681			257			1,853			814			10			10,872			295			11,167
Interest credited to policyholder account balances	322			331			85			28			261			288			—			1,315			505			1,820
Goodwill impairment	—			—			—			—			—			—			—			—			260			260
Capitalization of DAC	(124		)	(440		)	(83		)	(103		)	(44		)	(70		)	1			(863		)	—			(863		)
Amortization of DAC and VOBA	117			331			(2		)	106			219			509			2			1,282			(265		)	1,017
Amortization of negative VOBA	—			(46		)	(1		)	(3		)	—			—			—			(50		)	(5		)	(55		)
Interest expense on debt	2			—			1			—			15			32			241			291			1			292
Other expenses	912			930			335			332			401			560			(3		)	3,467			70			3,537
Total expenses	7,123			2,469			1,016			617			2,705			2,133			251			16,314			861			17,175
Provision for income tax expense (benefit)	288			142			53			11			121			40			(287		)	368			(393		)	(25		)
Operating earnings	$	552		$	324		$	133		$	74		$	266		$	68		$	10		1,427
Adjustments to:
Total revenues																						(386		)
Total expenses																						(861		)
Provision for income tax (expense) benefit																						393
Net income (loss)																						$	573					$	573

	Operating Results
Three Months Ended September 30, 2015	U.S.			Asia			Latin America			EMEA			MetLife Holdings			Brighthouse Financial			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	6,023		$	1,736		$	586		$	501		$	1,115		$	468		$	(53	)	$	10,376		$	(1	)	$	10,375
Universal life and investment-type product policy fees	233			382			261			106			370			921			(26		)	2,247			99			2,346
Net investment income	1,522			670			277			82			1,521			862			(85		)	4,849			(890		)	3,959
Other revenues	184			26			10			11			223			99			(58		)	495			(11		)	484
Net investment gains (losses)	—			—			—			—			—			—			—			—			382			382
Net derivative gains (losses)	—			—			—			—			—			—			—			—			485			485
Total revenues	7,962			2,814			1,134			700			3,229			2,350			(222		)	17,967			64			18,031
Expenses
Policyholder benefits and claims and policyholder dividends	5,976			1,331			581			233			1,885			846			(72		)	10,780			(92		)	10,688
Interest credited to policyholder account balances	304			327			88			27			266			313			6			1,331			(684		)	647
Goodwill impairment	—			—			—			—			—			—			—			—			—			—
Capitalization of DAC	(128		)	(435		)	(81		)	(107		)	(101		)	(102		)	(1		)	(955		)	—			(955		)
Amortization of DAC and VOBA	118			309			48			127			173			197			(1		)	971			160			1,131
Amortization of negative VOBA	—			(77		)	—			(5		)	—			—			—			(82		)	(8		)	(90		)
Interest expense on debt	1			—			—			—			13			32			248			294			8			302
Other expenses	908			896			348			352			647			614			361			4,126			19			4,145
Total expenses	7,179			2,351			984			627			2,883			1,900			541			16,465			(597		)	15,868
Provision for income tax expense (benefit)	272			125			(33		)	7			103			103			214			791			174			965
Operating earnings	$	511		$	338		$	183		$	66		$	243		$	347		$	(977	)	711
Adjustments to:
Total revenues																						64
Total expenses																						597
Provision for income tax (expense) benefit																						(174		)
Net income (loss)																						$	1,198					$	1,198

	Operating Results
Nine Months Ended September 30, 2016	U.S.			Asia			Latin America			EMEA			MetLife Holdings			Brighthouse Financial			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	16,127		$	5,161		$	1,885		$	1,519		$	3,312		$	1,020		$	51		$	29,075		$	426		$	29,501
Universal life and investment-type product policy fees	743			1,114			764			294			1,073			2,622			(87		)	6,523			403			6,926
Net investment income	4,615			2,003			809			244			4,489			2,624			(37		)	14,747			163			14,910
Other revenues	589			45			26			56			512			482			(380		)	1,330			10			1,340
Net investment gains (losses)	—			—			—			—			—			—			—			—			538			538
Net derivative gains (losses)	—			—			—			—			—			—			—			—			(1,815		)	(1,815		)
Total revenues	22,074			8,323			3,484			2,113			9,386			6,748			(453		)	51,675			(275		)	51,400
Expenses
Policyholder benefits and claims and policyholder dividends	16,210			3,923			1,814			801			5,603			2,525			(26		)	30,850			908			31,758
Interest credited to policyholder account balances	967			974			249			87			780			868			5			3,930			716			4,646
Goodwill impairment	—			—			—			—			—			—			—			—			260			260
Capitalization of DAC	(356		)	(1,251		)	(236		)	(310		)	(240		)	(255		)	(6		)	(2,654		)	(105		)	(2,759		)
Amortization of DAC and VOBA	353			921			127			311			636			823			7			3,178			(1,045		)	2,133
Amortization of negative VOBA	—			(167		)	(1		)	(10		)	—			—			—			(178		)	(43		)	(221		)
Interest expense on debt	7			—			1			—			43			96			759			906			4			910
Other expenses	2,772			2,658			968			1,001			1,861			1,739			(163		)	10,836			467			11,303
Total expenses	19,953			7,058			2,922			1,880			8,683			5,796			576			46,868			1,162			48,030
Provision for income tax expense (benefit)	720			377			141			32			203			260			(658		)	1,075			(595		)	480
Operating earnings	$	1,401		$	888		$	421		$	201		$	500		$	692		$	(371	)	3,732
Adjustments to:
Total revenues																						(275		)
Total expenses																						(1,162		)
Provision for income tax (expense) benefit																						595
Net income (loss)																						$	2,890					$	2,890

	Operating Results
Nine Months Ended September 30, 2015	U.S.			Asia			Latin America			EMEA			MetLife Holdings			Brighthouse Financial			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	15,712		$	5,297		$	1,925		$	1,534		$	3,345		$	1,159		$	(30	)	$	28,942		$	(2	)	$	28,940
Universal life and investment-type product policy fees	700			1,179			856			322			1,117			2,789			(87		)	6,876			298			7,174
Net investment income	4,723			2,033			774			249			4,690			2,536			11			15,016			(649		)	14,367
Other revenues	567			82			27			40			711			310			(212		)	1,525			(28		)	1,497
Net investment gains (losses)	—			—			—			—			—			—			—			—			535			535
Net derivative gains (losses)	—			—			—			—			—			—			—			—			394			394
Total revenues	21,702			8,591			3,582			2,145			9,863			6,794			(318		)	52,359			548			52,907
Expenses
Policyholder benefits and claims and policyholder dividends	15,675			4,046			1,793			737			5,479			2,103			(103		)	29,730			237			29,967
Interest credited to policyholder account balances	905			992			263			91			793			940			20			4,004			(64		)	3,940
Goodwill impairment	—			—			—			—			—			—			—			—			—			—
Capitalization of DAC	(365		)	(1,268		)	(246		)	(372		)	(292		)	(305		)	(2		)	(2,850		)	—			(2,850		)
Amortization of DAC and VOBA	352			971			195			388			423			595			1			2,925			128			3,053
Amortization of negative VOBA	—			(241		)	(1		)	(13		)	—			—			—			(255		)	(27		)	(282		)
Interest expense on debt	4			—			—			—			41			96			757			898			10			908
Other expenses	2,740			2,669			1,070			1,103			1,988			1,830			408			11,808			28			11,836
Total expenses	19,311			7,169			3,074			1,934			8,432			5,259			1,081			46,260			312			46,572
Provision for income tax expense (benefit)	819			332			40			25			454			410			(156		)	1,924			(69		)	1,855
Operating earnings	$	1,572		$	1,090		$	468		$	186		$	977		$	1,125		$	(1,243	)	4,175
Adjustments to:
Total revenues																						548
Total expenses																						(312		)
Provision for income tax (expense) benefit																						69
Net income (loss)																						$	4,480					$	4,480

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

	September 30, 2016		December 31, 2015
	(In millions)
U.S.	$	257,943	$	237,858
Asia	133,881		113,895
Latin America	70,421		64,808
EMEA	27,764		26,767
MetLife Holdings	195,267		187,677
Brighthouse Financial	240,696		226,792
Corporate & Other	26,932		20,136
Total	$	952,904	$	877,933