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:



	March 31, 2018			December 31, 2017
	(In millions)
Closed Block Liabilities
Future policy benefits	$	40,285		$	40,463
Other policy-related balances	213			222
Policyholder dividends payable	462			437
Policyholder dividend obligation	1,277			2,121
Other liabilities	285			212
Total closed block liabilities	42,522			43,455
Assets Designated to the Closed Block
Investments:
Fixed maturity securities available-for-sale, at estimated fair value	26,815			27,904
Equity securities, at estimated fair value	68			70
Mortgage loans	6,040			5,878
Policy loans	4,532			4,548
Real estate and real estate joint ventures	595			613
Other invested assets	607			731
Total investments	38,657			39,744
Accrued investment income	475			477
Premiums, reinsurance and other receivables; cash and cash equivalents	208			14
Current income tax recoverable	40			35
Deferred income tax assets	23			36
Total assets designated to the closed block	39,403			40,306
Excess of closed block liabilities over assets designated to the closed block	3,119			3,149
Amounts included in AOCI:
Unrealized investment gains (losses), net of income tax	1,711			1,863
Unrealized gains (losses) on derivatives, net of income tax	(57		)	(7		)
Allocated to policyholder dividend obligation, net of income tax	(1,009		)	(1,379		)
Total amounts included in AOCI	645			477
Maximum future earnings to be recognized from closed block assets and liabilities	$	3,764		$	3,626

See Note 1 for discussion of new accounting guidance related to U.S. Tax Reform.

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



	Three Months Ended March 31, 2018			Year Ended December 31, 2017
	(In millions)
Balance, beginning of period	$	2,121		$	1,931
Change in unrealized investment and derivative gains (losses)	(844		)	190
Balance, end of period	$	1,277		$	2,121

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



	Three Months Ended March 31,
	2018			2017
	(In millions)
Revenues
Premiums	$	387		$	402
Net investment income	444			466
Net investment gains (losses)	(29		)	(8		)
Net derivative gains (losses)	(3		)	(8		)
Total revenues	799			852
Expenses
Policyholder benefits and claims	571			568
Policyholder dividends	244			250
Other expenses	29			32
Total expenses	844			850
Revenues, net of expenses before provision for income tax expense (benefit)	(45		)	2
Provision for income tax expense (benefit)	(10		)	—
Revenues, net of expenses and provision for income tax expense (benefit)	$	(35	)	$	2

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.