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:



	June 30, 2017			December 31, 2016
	(In millions)
Closed Block Liabilities
Future policy benefits	$	40,567		$	40,834
Other policy-related balances	187			257
Policyholder dividends payable	476			443
Policyholder dividend obligation	2,237			1,931
Current income tax payable	—			4
Other liabilities	240			196
Total closed block liabilities	43,707			43,665
Assets Designated to the Closed Block
Investments:
Fixed maturity securities available-for-sale, at estimated fair value	27,474			27,220
Equity securities available-for-sale, at estimated fair value	292			100
Mortgage loans	5,919			5,935
Policy loans	4,541			4,553
Real estate and real estate joint ventures	634			655
Other invested assets	809			1,246
Total investments	39,669			39,709
Cash and cash equivalents	99			18
Accrued investment income	466			467
Premiums, reinsurance and other receivables	138			68
Deferred income tax assets	158			177
Total assets designated to the closed block	40,530			40,439
Excess of closed block liabilities over assets designated to the closed block	3,177			3,226
Amounts included in accumulated other comprehensive income (loss) (“AOCI”):
Unrealized investment gains (losses), net of income tax	1,814			1,517
Unrealized gains (losses) on derivatives, net of income tax	57			95
Allocated to policyholder dividend obligation, net of income tax	(1,454		)	(1,255		)
Total amounts included in AOCI	417			357
Maximum future earnings to be recognized from closed block assets and liabilities	$	3,594		$	3,583

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



	Six Months Ended June 30, 2017		Year Ended December 31, 2016
	(In millions)
Balance, beginning of period	$	1,931	$	1,783
Change in unrealized investment and derivative gains (losses)	306		148
Balance, end of period	$	2,237	$	1,931

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



	Three Months Ended June 30,					Six Months Ended June 30,
	2017			2016		2017			2016
	(In millions)
Revenues
Premiums	$	432		$	444	$	834		$	861
Net investment income	452			469		918			949
Net investment gains (losses)	(2		)	12		(10		)	(16		)
Net derivative gains (losses)	(10		)	4		(18		)	(7		)
Total revenues	872			929		1,724			1,787
Expenses
Policyholder benefits and claims	614			632		1,182			1,242
Policyholder dividends	247			246		497			491
Other expenses	32			35		64			67
Total expenses	893			913		1,743			1,800
Revenues, net of expenses before provision for income tax expense (benefit)	(21		)	16		(19		)	(13		)
Provision for income tax expense (benefit)	(8		)	6		(8		)	(5		)
Revenues, net of expenses and provision for income tax expense (benefit)	$	(13	)	$	10	$	(11	)	$	(8	)

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.