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:



	September 30, 2017			December 31, 2016
	(In millions)
Closed Block Liabilities
Future policy benefits	$	40,489		$	40,834
Other policy-related balances	193			257
Policyholder dividends payable	483			443
Policyholder dividend obligation	2,201			1,931
Current income tax payable	—			4
Other liabilities	277			196
Total closed block liabilities	43,643			43,665
Assets Designated to the Closed Block
Investments:
Fixed maturity securities available-for-sale, at estimated fair value	27,541			27,220
Equity securities available-for-sale, at estimated fair value	71			100
Mortgage loans	5,904			5,935
Policy loans	4,542			4,553
Real estate and real estate joint ventures	628			655
Other invested assets	1,053			1,246
Total investments	39,739			39,709
Cash and cash equivalents	60			18
Accrued investment income	487			467
Premiums, reinsurance and other receivables	68			68
Current income tax recoverable	30			—
Deferred income tax assets	109			177
Total assets designated to the closed block	40,493			40,439
Excess of closed block liabilities over assets designated to the closed block	3,150			3,226
Amounts included in accumulated other comprehensive income (loss):
Unrealized investment gains (losses), net of income tax	1,851			1,517
Unrealized gains (losses) on derivatives, net of income tax	23			95
Allocated to policyholder dividend obligation, net of income tax	(1,431		)	(1,255		)
Total amounts included in AOCI	443			357
Maximum future earnings to be recognized from closed block assets and liabilities	$	3,593		$	3,583

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



	Nine Months Ended September 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)	270		148
Balance, end of period	$	2,201	$	1,931

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	(In millions)
Revenues
Premiums	$	413		$	436		$	1,247		$	1,297
Net investment income	450			486			1,368			1,435
Net investment gains (losses)	—			(3		)	(10		)	(19		)
Net derivative gains (losses)	(6		)	4			(24		)	(3		)
Total revenues	857			923			2,581			2,710
Expenses
Policyholder benefits and claims	591			619			1,773			1,861
Policyholder dividends	235			232			732			723
Other expenses	30			33			94			100
Total expenses	856			884			2,599			2,684
Revenues, net of expenses before provision for income tax expense (benefit)	1			39			(18		)	26
Provision for income tax expense (benefit)	—			13			(8		)	8
Revenues, net of expenses and provision for income tax expense (benefit)	$	1		$	26		$	(10	)	$	18

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.