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Dispositions
 3 Months Ended
Mar. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure
3. Dispositions
2018 Disposition
On February 20, 2018, the Company completed the sale of MetLife Afore, S.A. de C.V., its pension fund management business in Mexico. See Note 3 of the Notes to the Consolidated Financial Statement included in the 2017 Annual Report for further information.
2017 Separation of Brighthouse
On August 4, 2017, MetLife, Inc. completed the separation of Brighthouse. MetLife, Inc. retained the remaining ownership interest of 22,996,436 shares, or 19.2%, of Brighthouse Financial, Inc. common stock and recognized its investment in Brighthouse Financial, Inc. common stock based on the NASDAQ reported market price. The Company elected to record the investment under the FVO as an observable measure of estimated fair value that is aligned with the Company’s intent to divest of the retained shares as soon as practicable. Subsequent changes in estimated fair value of the investment are recorded to net investment gains (losses). The estimated fair value of the Brighthouse Financial, Inc. common stock held by the Company (“FVO Brighthouse Common Stock”) at March 31, 2018 and December 31, 2017 was $1.2 billion and $1.3 billion, respectively, reported within contractholder-directed equity securities and fair value option securities. In the first quarter of 2018, the Company recorded a $168 million mark-to-market loss on its retained investment in Brighthouse Financial, Inc. to net investment gains (losses).
The Company incurred pre-tax Separation-related transaction costs of $77 million for the three months ended March 31, 2017, primarily related to third party staffing costs. Separation-related transaction costs are recorded in other expenses and reported within continuing operations.
See Note 3 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for further information regarding the Separation, including Separation-related agreements and ongoing transactions with Brighthouse.
Agreements
Tax Agreements
Immediately prior to the Separation, MetLife entered into tax agreements with Brighthouse.
In accordance with the tax separation agreement, at both March 31, 2018 and December 31, 2017, the Company’s current income tax receivable and corresponding payable to Brighthouse, reported in other liabilities, were $726 million.
As part of the tax receivable agreement, MetLife Inc. has the right to receive future payments from Brighthouse for a tax asset that Brighthouse received as a result of restructuring prior to the Separation. Included in other assets at both March 31, 2018 and December 31, 2017, is a receivable from Brighthouse of $333 million related to these future payments.
Ongoing Transactions with Brighthouse
The Company considered all of its continuing involvement with Brighthouse in determining whether to deconsolidate and present Brighthouse results as discontinued operations, including the agreements entered into between MetLife and Brighthouse and the ongoing transactions described below.
The Company entered into reinsurance, committed facility, structured settlement, and contract administrative services transactions with Brighthouse in the normal course of business and such transactions will continue based upon business needs. In addition, prior to and in connection with the Separation, the Company entered into various other agreements with Brighthouse for services necessary for both the Company and Brighthouse to conduct their activities. Intercompany transactions prior to the Separation between the Company and Brighthouse are eliminated and excluded from the interim condensed consolidated statements of operations and comprehensive income (loss). Transactions between the Company and Brighthouse that continue after the Separation are included on the Company’s interim condensed consolidated statements of operations and comprehensive income (loss) and interim condensed consolidated balance sheets.
Reinsurance
The Company entered into reinsurance transactions with Brighthouse in the normal course of business and such transactions will continue based upon business needs. Information regarding the significant effects of reinsurance transactions with Brighthouse was as follows:
 
 
Included on Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
 
Excluded from Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
 
 
Three Months
Ended
March 31,
 
 
2018
 
2017
 
 
(In millions)
Premiums
 
 
 
 
Reinsurance assumed
 
$
96


$
97

Reinsurance ceded
 
(3
)

(3
)
Net premiums
 
$
93

 
$
94

Universal life and investment-type product policy fees
 
 
 
 
Reinsurance assumed
 
$
1


$
(4
)
Reinsurance ceded
 
(24
)

(24
)
Net universal life and investment-type product policy fees
 
$
(23
)
 
$
(28
)
Policyholder benefits and claims
 
 
 
 
Reinsurance assumed
 
$
78


$
75

Reinsurance ceded
 
(10
)

(6
)
Net policyholder benefits and claims
 
$
68

 
$
69

Interest credited to policyholder account balances
 
 
 
 
Reinsurance assumed
 
$
4


$
4

Reinsurance ceded
 
(18
)

(18
)
Net interest credited to policyholder account balances
 
$
(14
)
 
$
(14
)
Other expenses
 
 
 
 
Reinsurance assumed
 
$
34


$
(30
)
Reinsurance ceded
 
(14
)

(21
)
Net other expenses
 
$
20

 
$
(51
)
Information regarding the significant effects of reinsurance transactions with Brighthouse included on the interim condensed consolidated balance sheets was as follows at:
 
March 31, 2018
 
December 31, 2017
 
Assumed
 
Ceded
 
Assumed
 
Ceded
 
(In millions)
Assets
 
 
 
 
 
 
 
Premiums, reinsurance and other receivables
$
154

 
$
1,802

 
$
167

 
$
1,793

Deferred policy acquisition costs and value of business acquired
390

 
(40
)
 
384

 
(40
)
Total assets
$
544

 
$
1,762

 
$
551

 
$
1,753

Liabilities
 
 
 
 
 
 
 
Future policy benefits
$
1,788

 
$
—

 
$
1,734

 
$
—

Other policy-related balances
116

 
25

 
119

 
28

Other liabilities
1,447

 
25

 
1,458

 
19

Total liabilities
$
3,351

 
$
50

 
$
3,311

 
$
47

Investment Management
In connection with the Separation, the Company entered into investment management services agreements with Brighthouse. During the three months ended March 31, 2018, the Company recognized $29 million in other revenues for services provided under such investment management services agreements. Prior to the Separation, during the three months ended March 31, 2017, the Company charged Brighthouse $25 million, for services provided under the agreements, which were intercompany transactions and eliminated and excluded from the interim condensed consolidated statements of operations and comprehensive income (loss).
MetLife Reinsurance Company of Vermont and MetLife, Inc. have a $2.9 billion committed facility which is used as collateral for certain affiliated reinsurance liabilities. At March 31, 2018, Brighthouse was a beneficiary of $2.4 billion of letters of credit issued under this committed facility and, in consideration, Brighthouse reimbursed MetLife, Inc. for a portion of the letter of credit fees. Prior to the Separation, the Company entered into the committed facility with Brighthouse in the normal course of business and such transactions will continue based upon business needs.
Transition Services
In connection with the Separation, the Company entered into a transition services agreement with Brighthouse for services necessary for Brighthouse to conduct its activities. During the three months ended March 31, 2018, the Company recognized $79 million as other revenue for transitional services provided under the agreement. Prior to the Separation, during the three months ended March 31, 2017, the Company charged Brighthouse $81 million, for services provided under the agreement, which were intercompany transactions and eliminated and excluded from the interim condensed consolidated statements of operations and comprehensive income (loss).
Other
The Company has existing assumed structured settlement claim obligations as an assignment company for Brighthouse. These liabilities are measured at the present value of the periodic claims to be provided and reported as other policy-related balances. The Company receives a fee for assuming these claim obligations and, as the assignee of the claim, is legally obligated to ensure periodic payments are made to the claimant. The Company purchased annuities from Brighthouse to fund these obligations and designates payments to be made directly to the claimant by Brighthouse as the annuity writer. The aggregate contract values of annuities funding structured settlement claims are recorded as an asset for which the Company has also recorded an unpaid claim obligation reported in other policy-related balances. Such aggregated contract values were $1.3 billion at both March 31, 2018 and December 31, 2017. The Company entered into these transactions with Brighthouse in the normal course of business and such transactions will continue based upon business needs.
The Company provides services necessary for Brighthouse to conduct its business, which primarily include contract administrative services for certain Brighthouse investment-type products. During the three months ended March 31, 2018, the Company recognized revenue of $32 million for administrative services provided to Brighthouse. Prior to the Separation, during the three months ended March 31, 2017, the Company provided administrative services to Brighthouse for $31 million, which were intercompany transactions and eliminated and excluded from the interim condensed consolidated statements of operations and comprehensive income (loss). The Company entered into these transactions with Brighthouse in the normal course of business and such transactions will continue based upon business needs.
In connection with the Separation, the Company entered into an employee matters agreement with Brighthouse to allocate obligations and responsibilities relating to employee compensation and benefit plans and other related matters. The employee matters agreement provides that MetLife will reimburse Brighthouse for certain pension benefit payments, retiree health and life benefit payments and deferred compensation payments. Included in other liabilities at both March 31, 2018 and December 31, 2017, is a payable to Brighthouse of $186 million related to these future payments.
At March 31, 2018, the Company had a receivable from Brighthouse of $87 million related to services provided and a payable to Brighthouse of $48 million related to services received. At December 31, 2017, the Company had a receivable from Brighthouse of $97 million related to services provided and a payable to Brighthouse of $50 million related to services received.
Discontinued Operations
The following table presents the amounts related to the operations of Brighthouse that have been reflected in discontinued operations:
 
Three Months Ended March 31,
 
2017
 
(In millions)
Revenues
 
Premiums
$
350

Universal life and investment-type product policy fees
942

Net investment income
775

Other revenues
32

Total net investment gains (losses)
(50
)
Net derivative gains (losses)
(700
)
Total revenues
1,349

Expenses
 
Policyholder benefits and claims
1,002

Interest credited to policyholder account balances
261

Policyholder dividends
7

Goodwill impairment
—

Other expenses
261

Total expenses
1,531

Income (loss) from discontinued operations before provision for income tax
(182
)
Provision for income tax expense (benefit)
(106
)
Income (loss) from discontinued operations, net of income tax
$
(76
)
In the interim condensed consolidated statements of cash flows, the cash flows from discontinued operations are not separately classified. The following table presents selected financial information regarding cash flows of the discontinued operations.

 
Three Months Ended
March 31,


2017
 
 
(In millions)
Net cash provided by (used in):
 
 
Operating activities

$
302

Investing activities

$
16

Financing activities
 
$
266