Investments

6 Months Ended

Jun. 30, 2011

Investments [Abstract]

Investments

3.   Investments

Fixed Maturity and Equity Securities Available-for-Sale

The following tables present the cost or amortized cost, gross unrealized gains and losses, estimated fair value of the Company’s fixed maturity and equity securities and the percentage that each sector represents by the respective total holdings for the periods shown. The unrealized loss amounts presented below include the noncredit loss component of other-than-temporary impairment (“OTTI”) losses:

	June 30, 2011
	Cost or		Gross Unrealized							Estimated
	Amortized				Temporary		OTTI			Fair		% of
	Cost		Gains		Losses		Losses			Value		Total
	(In millions)
Fixed Maturity Securities:
U.S. corporate securities	$	92,677	$	5,244	$	1,124	$	—		$	96,797		28.3	%
Foreign corporate securities (1)		67,518		3,877		858		(1	)		70,538		20.6
Foreign government securities		47,750		2,046		389		161			49,246		14.4
Residential mortgage-backed securities (“RMBS”)		42,845		1,870		652		513			43,550		12.8
U.S. Treasury and agency securities		34,691		1,462		588		—			35,565		10.4
Commercial mortgage-backed securities (“CMBS”) (1)		18,782		906		176		(6	)		19,518		5.7
Asset-backed securities (“ABS”)		15,082		330		483		72			14,857		4.4
State and political subdivision securities		11,554		443		328		—			11,669		3.4
Other fixed maturity securities		4		—		—		—			4		—
Total fixed maturity securities (2),(3)	$	330,903	$	16,178	$	4,598	$	739		$	341,744		100.0	%
Equity Securities:
Common stock	$	1,959	$	142	$	11	$	—		$	2,090		64.5	%
Non-redeemable preferred stock (2)		1,169		83		104		—			1,148		35.5
Total equity securities	$	3,128	$	225	$	115	$	—		$	3,238		100.0	%

	December 31, 2010
	Cost or		Gross Unrealized						Estimated
	Amortized				Temporary		OTTI		Fair		% of
	Cost		Gains		Losses		Losses		Value		Total
	(In millions)
Fixed Maturity Securities:
U.S. corporate securities	$	88,905	$	4,469	$	1,602	$	—	$	91,772		28.3	%
Foreign corporate securities		65,487		3,326		925		—		67,888		20.9
Foreign government securities		40,871		1,733		602		—		42,002		12.9
RMBS		44,468		1,652		917		470		44,733		13.8
U.S. Treasury and agency securities		32,469		1,394		559		—		33,304		10.2
CMBS		20,213		740		266		12		20,675		6.4
ABS		14,722		274		590		119		14,287		4.4
State and political subdivision securities		10,476		171		518		—		10,129		3.1
Other fixed maturity securities		6		1		—		—		7		—
Total fixed maturity securities (2),(3)	$	317,617	$	13,760	$	5,979	$	601	$	324,797		100.0	%
Equity Securities:
Common stock	$	2,059	$	146	$	12	$	—	$	2,193		60.9	%
Non-redeemable preferred stock (2)		1,562		76		229		—		1,409		39.1
Total equity securities	$	3,621	$	222	$	241	$	—	$	3,602		100.0	%

(1)

OTTI losses as presented above represent the noncredit portion of OTTI losses that is included in accumulated other comprehensive income (loss). OTTI losses include both the initial recognition of noncredit losses, and the effects of subsequent increases and decreases in estimated fair value for those fixed maturity securities that were previously noncredit loss impaired. The noncredit loss component of OTTI losses for foreign corporate securities and CMBS were in an unrealized gain (loss) position of $1 million and $6 million, respectively, at June 30, 2011 due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).”

(2)

Upon acquisition, the Company classifies perpetual securities that have attributes of both debt and equity as fixed maturity securities if the security has an interest rate step-up feature which, when combined with other qualitative factors, indicates that the security has more debt-like characteristics; while those with more equity-like characteristics, are classified as equity securities within non-redeemable preferred stock. Many of such securities have been issued by non-U.S. financial institutions that are accorded Tier 1 and Upper Tier 2 capital treatment by their respective regulatory bodies and are commonly referred to as “perpetual hybrid securities.” The following table presents the perpetual hybrid securities held by the Company at:

			June 30, 2011		December 31, 2010
			Estimated		Estimated
Classification			Fair		Fair
Consolidated Balance Sheets	Sector Table	Primary Issuers	Value		Value
			(In millions)
Fixed maturity securities	Foreign corporate securities	Non-U.S. financial institutions	$	1,094	$	2,008
Fixed maturity securities	U.S. corporate securities	U.S. financial institutions	$	77	$	83
Equity securities	Non-redeemable preferred stock	Non-U.S. financial institutions	$	841	$	1,043
Equity securities	Non-redeemable preferred stock	U.S. financial institutions	$	227	$	236

(3) The Company’s holdings in redeemable preferred stock with stated maturity dates, commonly referred to as “capital securities,” were primarily issued by U.S. financial institutions and have cumulative interest deferral features. The Company held $2.2 billion and $2.7 billion at estimated fair value of such securities at June 30, 2011 and December 31, 2010, respectively, which are included in the U.S. and foreign corporate securities sectors within fixed maturity securities.

The below investment grade and non-income producing amounts presented below are based on rating agency designations and equivalent designations of the National Association of Insurance Commissioners (“NAIC”), with the exception of certain structured securities described below held by the Company’s insurance subsidiaries that file NAIC statutory financial statements. Non-agency RMBS, CMBS and ABS held by the Company’s insurance subsidiaries that file NAIC statutory financial statements are presented based on final ratings from the revised NAIC rating methodologies for structured securities (which may not correspond to rating agency designations). All NAIC designation (e.g., NAIC 1 — 6) amounts and percentages presented herein are based on the revised NAIC methodologies. All rating agency designation (e.g., Aaa/AAA) amounts and percentages presented herein are based on rating agency designations without adjustment for the revised NAIC methodologies described above. Rating agency designations are based on availability of applicable ratings from rating agencies on the NAIC acceptable rating organization list, including Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings (“Fitch”).

The following table presents selected information about certain fixed maturity securities held by the Company at:

	June 30, 2011			December 31, 2010
	(In millions)
Below investment grade or non-rated fixed maturity securities:
Estimated fair value	$	25,941		$	24,870
Net unrealized gains (losses)	$	(819	)	$	(696	)
Non-income producing fixed maturity securities:
Estimated fair value	$	43		$	130
Net unrealized gains (losses)	$	(32	)	$	(23	)

Concentrations of Credit Risk (Fixed Maturity Securities) — Summary.  The following section contains a summary of the concentrations of credit risk related to fixed maturity securities holdings.

The Company was not exposed to any concentrations of credit risk of any single issuer greater than 10% of the Company’s equity, other than the government securities summarized in the table below. The par value and amortized cost of the Company’s holdings in sovereign fixed maturity securities of Portugal, Ireland, Italy, Greece and Spain, commonly referred to as “Europe’s perimeter region”, was $1,178 million and $934 million at June 30, 2011, respectively, and $1,912 million and $1,644 million at December 31, 2010, respectively. The estimated fair value of such holdings was $761 million and $1,562 million prior to considering net purchased credit default swap protection at June 30, 2011 and December 31, 2010, respectively. The estimated fair value of these Europe perimeter region sovereign fixed maturity securities represented 1.4% and 3.2% of the Company’s equity at June 30, 2011 and December 31, 2010, respectively, and 0.2% and 0.3% of total cash and invested assets at June 30, 2011 and December 31, 2010, respectively.

Concentrations of Credit Risk (Government and Agency Securities).  The following section contains a summary of the concentrations of credit risk related to government and agency fixed maturity and fixed-income securities holdings, which were greater than 10% of the Company’s equity at:

	June 30, 2011		December 31, 2010
	Carrying Value (1)
	(In millions)
Government and agency fixed maturity securities:
United States	$	35,565	$	33,304
Japan	$	18,216	$	15,591
Mexico	$	5,573	$	5,050
U.S. Treasury and agency fixed-income securities included in:
Short-term investments	$	8,616	$	4,048
Cash equivalents	$	1,570	$	5,762

(1) Represents estimated fair value for fixed maturity securities; amortized cost, which approximates estimated fair value or estimated fair value, if available, for short-term investments; and amortized cost, which approximates estimated fair value, for cash equivalents.

Concentrations of Credit Risk (Fixed Maturity Securities) — U.S. and Foreign Corporate Securities.  The Company maintains a diversified portfolio of corporate fixed maturity securities across industries and issuers. This portfolio does not have an exposure to any single issuer in excess of 1% of total investments. The tables below present information for U.S. and foreign corporate securities at:

	June 30, 2011					December 31, 2010
	Estimated					Estimated
	Fair		% of			Fair		% of
	Value		Total			Value		Total
	(In millions)
Corporate fixed maturity securities — by sector:
Foreign corporate fixed maturity securities (1)	$	70,538		42.2	%	$	67,888		42.5	%
U.S. corporate fixed maturity securities — by industry:
Industrial		24,270		14.5			22,070		13.8
Consumer		22,910		13.7			21,482		13.5
Finance		20,397		12.2			20,785		13.0
Utility		18,242		10.9			16,902		10.6
Communications		7,733		4.6			7,335		4.6
Other		3,245		1.9			3,198		2.0
Total	$	167,335		100.0	%	$	159,660		100.0	%

(1) Includes U.S. dollar-denominated debt obligations of foreign obligors and other foreign fixed maturity securities.

	June 30, 2011					December 31, 2010
	Estimated					Estimated
	Fair		% of Total			Fair		% of Total
	Value		Investments			Value		Investments
			(In millions)
Concentrations within corporate fixed maturity securities:
Largest exposure to a single issuer	$	2,207		0.5	%	$	2,291		0.5	%
Holdings in ten issuers with the largest exposures	$	13,328		2.8	%	$	14,247		3.1	%

Concentrations of Credit Risk (Fixed Maturity Securities) — RMBS.  The table below presents information on the Company’s RMBS holdings at:

	June 30, 2011					December 31, 2010
	Estimated					Estimated
	Fair		% of			Fair		% of
	Value		Total			Value		Total
			(In millions)
By security type:
Collateralized mortgage obligations	$	23,011		52.8	%	$	22,303		49.9	%
Pass-through securities		20,539		47.2			22,430		50.1
Total RMBS	$	43,550		100.0	%	$	44,733		100.0	%
By risk profile:
Agency	$	32,774		75.3	%	$	34,254		76.6	%
Prime		6,016		13.8			6,258		14.0
Alternative residential mortgage loans		4,760		10.9			4,221		9.4
Total RMBS	$	43,550		100.0	%	$	44,733		100.0	%
Rated Aaa/AAA	$	34,105		78.3	%	$	36,085		80.7	%
Rated NAIC 1	$	37,484		86.1	%	$	38,984		87.1	%

See “Note 3 — Investments — Concentrations of Credit Risk (Fixed Maturity Securities) — RMBS” of the Notes to the Consolidated Financial Statements included in the 2010 Annual Report for a description of the security types and risk profile.

The following tables present information on the Company’s investment in alternative residential mortgage loans (“Alt-A”) RMBS at:

	June 30, 2011					December 31, 2010
	Estimated					Estimated
	Fair		% of			Fair		% of
	Value		Total			Value		Total
	(In millions)
Vintage Year:
2005 & Prior	$	1,704		35.8	%	$	1,576		37.3	%
2006		1,376		28.9			1,013		24.0
2007		1,016		21.3			922		21.8
2008		—		—			7		0.2
2009 (1)		627		13.2			671		15.9
2010 (1)		37		0.8			32		0.8
2011		—		—			—		—
Total	$	4,760		100.0	%	$	4,221		100.0	%

(1) All of the Company’s Alt-A RMBS holdings in the 2009 and 2010 vintage years are resecuritization of real estate mortgage investment conduit (“Re-REMIC”) Alt-A RMBS that were purchased in 2009 and 2010 and are comprised of original issue vintage year 2005 through 2007 Alt-A RMBS. All of the Company’s Re-REMIC Alt-A RMBS holdings are NAIC 1 rated.

	June 30, 2011						December 31, 2010
				% of						% of
	Amount			Total			Amount			Total
	(In millions)
Net unrealized gains (losses)	$	(680	)				$	(670	)
Rated Aa/AA or better					12.4	%					15.9	%
Rated NAIC 1					39.4	%					39.5	%
Distribution of holdings — at estimated fair value — by collateral type:
Fixed rate mortgage loans collateral					92.3	%					90.7	%
Hybrid adjustable rate mortgage loans collateral					7.7						9.3
Total Alt-A RMBS					100.0	%					100.0	%

Concentrations of Credit Risk (Fixed Maturity Securities) — CMBS.  The following tables present the Company’s holdings of CMBS by rating agency designation and by vintage year at:

	June 30, 2011
																					Below
																					Investment
	Aaa					Aa					A					Baa					Grade					Total
			Estimated					Estimated					Estimated					Estimated					Estimated					Estimated
	Amortized		Fair			Amortized		Fair			Amortized		Fair			Amortized		Fair			Amortized		Fair			Amortized		Fair
	Cost		Value			Cost		Value			Cost		Value			Cost		Value			Cost		Value			Cost		Value
	(In millions)
2003 & Prior	$	6,311	$	6,481		$	184	$	186		$	105	$	103		$	63	$	61		$	21	$	20		$	6,684	$	6,851
2004		3,693		3,858			462		483			117		115			91		92			76		66			4,439		4,614
2005		2,905		3,141			363		389			307		325			169		175			37		29			3,781		4,059
2006		1,480		1,584			155		157			86		94			153		165			157		155			2,031		2,155
2007		674		687			369		342			155		151			43		44			117		115			1,358		1,339
2008		—		—			—		—			—		—			—		—			26		30			26		30
2009		2		2			—		—			—		—			—		—			—		—			2		2
2010		3		3			—		—			56		61			—		—			—		—			59		64
2011		402		404			—		—			—		—			—		—			—		—			402		404
Total	$	15,470	$	16,160		$	1,533	$	1,557		$	826	$	849		$	519	$	537		$	434	$	415		$	18,782	$	19,518
Ratings Distribution				82.8	%				8.0	%				4.3	%				2.8	%				2.1	%				100.0	%

	December 31, 2010
																					Below
																					Investment
	Aaa					Aa					A					Baa					Grade					Total
			Estimated					Estimated					Estimated					Estimated					Estimated					Estimated
	Amortized		Fair			Amortized		Fair			Amortized		Fair			Amortized		Fair			Amortized		Fair			Amortized		Fair
	Cost		Value			Cost		Value			Cost		Value			Cost		Value			Cost		Value			Cost		Value
	(In millions)
2003 & Prior	$	7,411	$	7,640		$	282	$	282		$	228	$	227		$	74	$	71		$	28	$	24		$	8,023	$	8,244
2004		3,489		3,620			277		273			216		209			181		175			91		68			4,254		4,345
2005		3,113		3,292			322		324			286		280			263		255			73		66			4,057		4,217
2006		1,463		1,545			159		160			168		168			385		398			166		156			2,341		2,427
2007		840		791			344		298			96		95			119		108			122		133			1,521		1,425
2008		2		2			—		—			—		—			—		—			—		—			2		2
2009		3		3			—		—			—		—			—		—			—		—			3		3
2010		8		8			—		—			4		4			—		—			—		—			12		12
Total	$	16,329	$	16,901		$	1,384	$	1,337		$	998	$	983		$	1,022	$	1,007		$	480	$	447		$	20,213	$	20,675
Ratings Distribution				81.7	%				6.4	%				4.8	%				4.9	%				2.2	%				100.0	%

The tables above reflect rating agency designations assigned by nationally recognized rating agencies including Moody’s, S&P, Fitch and Realpoint, LLC.

The NAIC rating distribution of the Company’s holdings of CMBS was as follows at:

	June 30, 2011			December 31, 2010
NAIC 1		94.1	%		93.7	%
NAIC 2		3.7	%		3.2	%
NAIC 3		1.2	%		1.8	%
NAIC 4		0.9	%		1.0	%
NAIC 5		0.1	%		0.3	%
NAIC 6		—	%		—	%

Concentrations of Credit Risk (Fixed Maturity Securities) — ABS.  The Company’s ABS are diversified both by collateral type and by issuer. The following table presents information about ABS held by the Company at:

	June 30, 2011					December 31, 2010
	Estimated					Estimated
	Fair		% of			Fair		% of
	Value		Total			Value		Total
	(In millions)
By collateral type:
Credit card loans	$	5,202		35.0	%	$	6,027		42.2	%
Student loans		2,903		19.5			2,416		16.9
Collateralized debt obligations		2,447		16.5			1,798		12.6
RMBS backed by sub-prime mortgage loans		1,065		7.2			1,119		7.8
Automobile loans		836		5.6			605		4.2
Other loans		2,404		16.2			2,322		16.3
Total	$	14,857		100.0	%	$	14,287		100.0	%
Rated Aaa/AAA	$	9,809		66.0	%	$	10,411		72.9	%
Rated NAIC 1	$	13,683		92.1	%	$	13,133		91.9	%

The Company had ABS supported by sub-prime mortgage loans with estimated fair values of $1,065 million and $1,119 million and unrealized losses of $284 million and $317 million at June 30, 2011 and December 31, 2010, respectively. Approximately 27% of this portfolio was rated Aa or better, of which 73% was in vintage year 2005 and prior at June 30, 2011. Approximately 54% of this portfolio was rated Aa or better, of which 88% was in vintage year 2005 and prior at December 31, 2010. These older vintages from 2005 and prior benefit from better underwriting, improved credit enhancement levels and higher residential property price appreciation. Approximately 63% and 66% of this portfolio was rated NAIC 2 or better at June 30, 2011 and December 31, 2010, respectively.

Concentrations of Credit Risk (Equity Securities).  The Company was not exposed to any concentrations of credit risk in its equity securities holdings of any single issuer greater than 10% of the Company’s equity or 1% of total investments at June 30, 2011 and December 31, 2010.

Maturities of Fixed Maturity Securities.  The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date (excluding scheduled sinking funds), were as follows at:

	June 30, 2011				December 31, 2010
			Estimated				Estimated
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In millions)
Due in one year or less	$	10,716	$	10,857	$	8,580	$	8,702
Due after one year through five years		69,032		71,319		65,143		66,796
Due after five years through ten years		82,006		86,268		76,508		79,571
Due after ten years		92,440		95,375		87,983		90,033
Subtotal		254,194		263,819		238,214		245,102
RMBS, CMBS and ABS		76,709		77,925		79,403		79,695
Total fixed maturity securities	$	330,903	$	341,744	$	317,617	$	324,797

Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been included in the above table in the year of final contractual maturity. RMBS, CMBS and ABS are shown separately in the table, as they are not due at a single maturity.

Evaluating Available-for-Sale Securities for Other-Than-Temporary Impairment

As described more fully in Note 1 of the Notes to the Consolidated Financial Statements included in the 2010 Annual Report, the Company performs a regular evaluation, on a security-by-security basis, of its available-for-sale securities holdings, including fixed maturity securities, equity securities and perpetual hybrid securities, in accordance with its impairment policy in order to evaluate whether such investments are other-than-temporarily impaired.

Net Unrealized Investment Gains (Losses)

The components of net unrealized investment gains (losses), included in accumulated other comprehensive income (loss), were as follows:

	June 30, 2011			December 31, 2010
	(In millions)
Fixed maturity securities	$	11,576		$	7,817
Fixed maturity securities with noncredit OTTI losses in accumulated other comprehensive income (loss)		(739	)		(601	)
Total fixed maturity securities		10,837			7,216
Equity securities		132			(3	)
Derivatives		(165	)		(59	)
Other		(5	)		42
Subtotal		10,799			7,196
Amounts allocated from:
Insurance liability loss recognition		(1,061	)		(672	)
DAC and VOBA related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)		34			38
DAC and VOBA		(1,430	)		(1,205	)
Policyholder dividend obligation		(1,281	)		(876	)
Subtotal		(3,738	)		(2,715	)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)		245			197
Deferred income tax benefit (expense)		(2,651	)		(1,692	)
Net unrealized investment gains (losses)		4,655			2,986
Net unrealized investment gains (losses) attributable to noncontrolling interests		9			4
Net unrealized investment gains (losses) attributable to MetLife, Inc.	$	4,664		$	2,990

The changes in fixed maturity securities with noncredit OTTI losses in accumulated other comprehensive income (loss), were as follows:

	June 30, 2011			December 31, 2010
	(In millions)
Balance, beginning of period	$	(601	)	$	(859	)
Noncredit OTTI losses recognized (1)		(184	)		(212	)
Transferred to retained earnings (2)		—			16
Securities sold with previous noncredit OTTI loss		77			137
Subsequent changes in estimated fair value		(31	)		317
Balance, end of period	$	(739	)	$	(601	)

(1)	Noncredit OTTI losses recognized, net of deferred policy acquisition costs (“DAC”), were ($188) million and ($202) million for the periods ended June 30, 2011 and December 31, 2010, respectively.
(2)	Amounts transferred to retained earnings were in connection with the adoption of guidance related to the consolidation of VIEs as described in Note 1 of the Notes to the Consolidated Financial Statements included in the 2010 Annual Report.

The changes in net unrealized investment gains (losses) were as follows:

	Six Months
	Ended
	June 30, 2011
	(In millions)
Balance, beginning of period	$	2,990
Fixed maturity securities on which noncredit OTTI losses have been recognized		(138	)
Unrealized investment gains (losses) during the period		3,741
Unrealized investment gains (losses) relating to:
Insurance liability gain (loss) recognition		(389	)
DAC and VOBA related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)		(4	)
DAC and VOBA		(225	)
Policyholder dividend obligation		(405	)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)		48
Deferred income tax benefit (expense)		(959	)
Net unrealized investment gains (losses)		4,659
Net unrealized investment gains (losses) attributable to noncontrolling interests		5
Balance, end of period	$	4,664
Change in net unrealized investment gains (losses)	$	1,669
Change in net unrealized investment gains (losses) attributable to noncontrolling interests		5
Change in net unrealized investment gains (losses) attributable to MetLife, Inc.	$	1,674

Continuous Gross Unrealized Losses and OTTI Losses for Fixed Maturity and Equity Securities Available-for-Sale by Sector

The following tables present the estimated fair value and gross unrealized losses of the Company’s fixed maturity and equity securities in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position. The unrealized loss amounts presented below include the noncredit component of OTTI loss. Fixed maturity securities on which a noncredit OTTI loss has been recognized in accumulated other comprehensive income (loss) are categorized by length of time as being “less than 12 months” or “equal to or greater than 12 months” in a continuous unrealized loss position based on the point in time that the estimated fair value initially declined to below the amortized cost basis and not the period of time since the unrealized loss was deemed a noncredit OTTI loss.

	June 30, 2011
					Equal to or Greater
	Less than 12 Months				than 12 Months				Total
	Estimated		Gross		Estimated		Gross		Estimated		Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In millions, except number of securities)
Fixed Maturity Securities:
U.S. corporate securities	$	15,021	$	289	$	6,662	$	835	$	21,683	$	1,124
Foreign corporate securities		17,137		592		1,953		265		19,090		857
Foreign government securities		21,463		539		153		11		21,616		550
RMBS		5,742		159		5,540		1,006		11,282		1,165
U.S. Treasury and agency securities		11,586		562		108		26		11,694		588
CMBS		1,606		32		926		138		2,532		170
ABS		2,212		22		2,723		533		4,935		555
State and political subdivision securities		2,684		96		1,000		232		3,684		328
Other fixed maturity securities		2		—		—		—		2		—
Total fixed maturity securities	$	77,453	$	2,291	$	19,065	$	3,046	$	96,518	$	5,337
Equity Securities:
Common stock	$	96	$	11	$	23	$	—	$	119	$	11
Non-redeemable preferred stock		174		6		462		98		636		104
Total equity securities	$	270	$	17	$	485	$	98	$	755	$	115
Total number of securities in an
unrealized loss position		4,834				1,351

	December 31, 2010
					Equal to or Greater
	Less than 12 Months				than 12 Months				Total
	Estimated		Gross		Estimated		Gross		Estimated		Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In millions, except number of securities)
Fixed Maturity Securities:
U.S. corporate securities	$	22,954	$	447	$	8,319	$	1,155	$	31,273	$	1,602
Foreign corporate securities		22,415		410		3,976		515		26,391		925
Foreign government securities		26,659		585		189		17		26,848		602
RMBS		7,588		212		6,700		1,175		14,288		1,387
U.S. Treasury and agency securities		13,401		530		118		29		13,519		559
CMBS		3,787		29		1,363		249		5,150		278
ABS		2,713		42		3,026		667		5,739		709
State and political subdivision securities		5,061		246		988		272		6,049		518
Other fixed maturity securities		1		—		—		—		1		—
Total fixed maturity securities	$	104,579	$	2,501	$	24,679	$	4,079	$	129,258	$	6,580
Equity Securities:
Common stock	$	89	$	12	$	1	$	—	$	90	$	12
Non-redeemable preferred stock		191		9		824		220		1,015		229
Total equity securities	$	280	$	21	$	825	$	220	$	1,105	$	241
Total number of securities in an
unrealized loss position		5,609				1,704

Aging of Gross Unrealized Losses and OTTI Losses for Fixed Maturity and Equity Securities Available-for-Sale

The following tables present the cost or amortized cost, gross unrealized losses, including the portion of OTTI loss on fixed maturity securities recognized in accumulated other comprehensive income (loss), gross unrealized losses as a percentage of cost or amortized cost and number of securities for fixed maturity and equity securities where the estimated fair value had declined and remained below cost or amortized cost by less than 20%, or 20% or more at:

	June 30, 2011
	Cost or Amortized Cost				Gross Unrealized Losses						Number of Securities
	Less than		20% or		Less than			20% or			Less than		20% or
	20%		more		20%			more			20%		more
	(In millions, except number of securities)
Fixed Maturity Securities:
Less than six months	$	26,453	$	2,874	$	367		$	825			1,963		167
Six months or greater but less than nine months		50,011		420		1,329			104			2,639		31
Nine months or greater but less than twelve months		1,985		186		130			64			260		12
Twelve months or greater		16,861		3,065		1,489			1,029			1,025		196
Total	$	95,310	$	6,545	$	3,315		$	2,022
Percentage of amortized cost						3	%		31	%
Equity Securities:
Less than six months	$	132	$	8	$	6		$	4			74		16
Six months or greater but less than nine months		144		1		6			—			32		9
Nine months or greater but less than twelve months		—		1		—			—			—		4
Twelve months or greater		355		229		30			69			23		11
Total	$	631	$	239	$	42		$	73
Percentage of cost						7	%		31	%

	December 31, 2010
	Cost or Amortized Cost				Gross Unrealized Losses						Number of Securities
	Less than		20% or		Less than			20% or			Less than		20% or
	20%		more		20%			more			20%		more
	(In millions, except number of securities)
Fixed Maturity Securities:
Less than six months	$	105,301	$	1,403	$	2,348		$	368			5,320		121
Six months or greater but less than nine months		1,125		376		29			102			104		29
Nine months or greater but less than twelve months		371		89		28			27			50		9
Twelve months or greater		21,627		5,546		1,863			1,815			1,245		311
Total	$	128,424	$	7,414	$	4,268		$	2,312
Percentage of amortized cost						3	%		31	%
Equity Securities:
Less than six months	$	247	$	94	$	10		$	22			106		33
Six months or greater but less than nine months		29		65		5			16			3		2
Nine months or greater but less than twelve months		6		47		—			16			3		2
Twelve months or greater		518		340		56			116			35		14
Total	$	800	$	546	$	71		$	170
Percentage of cost						9	%		31	%

Equity securities with gross unrealized losses of 20% or more for twelve months or greater decreased from $116 million at December 31, 2010 to $69 million at June 30, 2011. As shown in the section “— Evaluating Temporarily Impaired Available-for-Sale Securities” below, all of the equity securities with gross unrealized losses of 20% or more for twelve months or greater at June 30, 2011 were financial services industry investment grade non-redeemable preferred stock, of which 72% were rated A or better.

Concentration of Gross Unrealized Losses and OTTI Losses for Fixed Maturity and Equity Securities Available-for-Sale

The Company’s gross unrealized losses related to its fixed maturity and equity securities, including the portion of OTTI losses on fixed maturity securities recognized in accumulated other comprehensive income (loss) were $5.5 billion and $6.8 billion at June 30, 2011 and December 31, 2010, respectively. The concentration, calculated as a percentage of gross unrealized losses (including OTTI losses), by sector and industry was as follows at:

	June 30, 2011			December 31, 2010
Sector:
RMBS		21	%		20	%
U.S. corporate securities		21			23
Foreign corporate securities		16			14
U.S. Treasury and agency securities		11			8
ABS		10			10
Foreign government securities		10			9
State and political subdivision securities		6			8
CMBS		3			4
Other		2			4
Total		100	%		100	%
Industry:
Mortgage-backed		24	%		24	%
Finance		15			21
U.S. Treasury and agency securities		11			8
Asset-backed		10			10
Foreign government securities		10			9
Utility		10			5
State and political subdivision securities		6			8
Consumer		4			4
Communications		2			2
Industrial		1			2
Other		7			7
Total		100	%		100	%

Evaluating Temporarily Impaired Available-for-Sale Securities

The following table presents the Company’s fixed maturity and equity securities, each with gross unrealized losses of greater than $10 million, the number of securities, total gross unrealized losses and percentage of total gross unrealized losses at:

	June 30, 2011						December 31, 2010
	Fixed Maturity			Equity			Fixed Maturity			Equity
	Securities			Securities			Securities			Securities
	(In millions, except number of securities)
Number of securities		88			3			107			6
Total gross unrealized losses	$	1,846		$	43		$	2,014		$	103
Percentage of total gross unrealized losses		35	%		37	%		31	%		43	%

Fixed maturity and equity securities, each with gross unrealized losses greater than $10 million, decreased $228 million during the six months ended June 30, 2011. The decline in, or improvement in, gross unrealized losses for the six months ended June 30, 2011 was primarily attributable to a decrease in interest rates. These securities were included in the Company’s OTTI review process. Based upon the Company’s current evaluation of these securities and other available-for-sale securities in an unrealized loss position in accordance with its impairment policy, and the Company’s current intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities, the Company has concluded that these securities are not other-than-temporarily impaired.

In the Company’s impairment review process, the duration and severity of an unrealized loss position for equity securities are given greater weight and consideration than for fixed maturity securities. An extended and severe unrealized loss position on a fixed maturity security may not have any impact on the ability of the issuer to service all scheduled interest and principal payments and the Company’s evaluation of recoverability of all contractual cash flows or the ability to recover an amount at least equal to its amortized cost based on the present value of the expected future cash flows to be collected. In contrast, for an equity security, greater weight and consideration are given by the Company to a decline in market value and the likelihood such market value decline will recover.

The following table presents certain information about the Company’s equity securities available-for-sale with gross unrealized losses of 20% or more at June 30, 2011:

			Non-Redeemable Preferred Stock
			All Types of
	All Equity		Non-Redeemable					Investment Grade
	Securities		Preferred Stock					All Industries					Financial Services Industry
	Gross		Gross		% of All			Gross		% of All			Gross					% A
	Unrealized		Unrealized		Equity			Unrealized		Non-Redeemable			Unrealized		% of All			Rated or
	Losses		Losses		Securities			Losses		Preferred Stock			Losses		Industries			Better
								(In millions)
Less than six months	$	4	$	—		—	%	$	—		—	%	$	—		—	%		—	%
Six months or greater but less than twelve months		—		—		—	%		—		—	%		—		—	%		—	%
Twelve months or greater		69		69		100	%		69		100	%		69		100	%		72	%
All equity securities with gross unrealized losses of 20% or more	$	73	$	69		95	%	$	69		100	%	$	69		100	%		72	%

In connection with the equity securities impairment review process, the Company evaluated its holdings in non-redeemable preferred stock, particularly those in the financial services industry. The Company considered several factors including whether there has been any deterioration in credit of the issuer and the likelihood of recovery in value of non-redeemable preferred stock with a severe or an extended unrealized loss. The Company also considered whether any issuers of non-redeemable preferred stock with an unrealized loss held by the Company, regardless of credit rating, have deferred any dividend payments. No such dividend payments had been deferred.

With respect to common stock holdings, the Company considered the duration and severity of the unrealized losses for securities in an unrealized loss position of 20% or more; and the duration of unrealized losses for securities in an unrealized loss position of less than 20% in an extended unrealized loss position (i.e., 12 months or greater).

Future OTTIs will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), changes in credit ratings, changes in collateral valuation, changes in interest rates and changes in credit spreads. If economic fundamentals and any of the above factors deteriorate, additional OTTIs may be incurred in upcoming quarters.

Net Investment Gains (Losses)

The components of net investment gains (losses) were as follows:

	Three Months						Six Months
	Ended						Ended
	June 30,						June 30,
	2011			2010			2011			2010
	(In millions)
Total gains (losses) on fixed maturity securities:
Total OTTI losses recognized	$	(298	)	$	(244	)	$	(430	)	$	(395	)
Less: Noncredit portion of OTTI losses transferred to and recognized in other comprehensive income (loss)		175			98			184			157
Net OTTI losses on fixed maturity securities recognized in earnings		(123	)		(146	)		(246	)		(238	)
Fixed maturity securities — net gains (losses) on sales and disposals		18			19			(22	)		45
Total gains (losses) on fixed maturity securities		(105	)		(127	)		(268	)		(193	)
Other net investment gains (losses):
Equity securities		(70	)		74			(34	)		101
Mortgage loans		68			11			115			(17	)
Real estate and real estate joint ventures		4			(27	)		5			(49	)
Other limited partnership interests		5			(10	)		8			(11	)
Other investment portfolio gains (losses)		(6	)		17			(2	)		76
Subtotal — investment portfolio gains (losses)		(104	)		(62	)		(176	)		(93	)
Fair value option (“FVO”) consolidated securitization entities — changes in estimated fair value:
Commercial mortgage loans		7			172			25			653
Securities		39			(17	)		(1	)		(21	)
Long-term debt — related to commercial mortgage loans		(8	)		(156	)		(8	)		(635	)
Long-term debt — related to securities		(54	)		(1	)		(7	)		11
Other gains (losses) (1)		(35	)		50			(87	)		103
Subtotal FVO consolidated securitization entities and other gains (losses)		(51	)		48			(78	)		111
Total net investment gains (losses)	$	(155	)	$	(14	)	$	(254	)	$	18

(1) Other gains (losses) for the three months and six months ended June 30, 2011 includes a loss of $7 million and $87 million, respectively, related to the sale of the Company’s investment in MSI MetLife. See Note 2.

See “— Variable Interest Entities” for discussion of consolidated securitization entities (“CSEs”) included in the table above.

Gains (losses) from foreign currency transactions included within net investment gains (losses) were ($49) million and ($14) million for the three months and six months ended June 30, 2011, respectively, and $56 million and $206 million for the three months and six months ended June 30, 2010, respectively.

Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains (losses) were as shown below. Investment gains and losses on sales of securities are determined on a specific identification basis.

	Three Months Ended June 30,
	2011			2010			2011			2010			2011			2010
	Fixed Maturity Securities						Equity Securities						Total
	(In millions)
Proceeds	$	19,316		$	13,466		$	489		$	298		$	19,805		$	13,764
Gross investment gains	$	235		$	214		$	26		$	76		$	261		$	290
Gross investment losses		(217	)		(195	)		(49	)		(1	)		(266	)		(196	)
Total OTTI losses recognized in earnings:
Credit-related		(70	)		(146	)		—			—			(70	)		(146	)
Other (1)		(53	)		—			(47	)		(1	)		(100	)		(1	)
Total OTTI losses recognized in earnings		(123	)		(146	)		(47	)		(1	)		(170	)		(147	)
Net investment gains (losses)	$	(105	)	$	(127	)	$	(70	)	$	74		$	(175	)	$	(53	)

	Six Months Ended June 30,
	2011			2010			2011			2010			2011			2010
	Fixed Maturity Securities						Equity Securities						Total
	(In millions)
Proceeds	$	35,848		$	21,838		$	805		$	443		$	36,653		$	22,281
Gross investment gains	$	428		$	378		$	74		$	107		$	502		$	485
Gross investment losses		(450	)		(333	)		(55	)		(4	)		(505	)		(337	)
Total OTTI losses recognized in earnings:
Credit-related		(113	)		(232	)		—			—			(113	)		(232	)
Other (1)		(133	)		(6	)		(53	)		(2	)		(186	)		(8	)
Total OTTI losses recognized in earnings		(246	)		(238	)		(53	)		(2	)		(299	)		(240	)
Net investment gains (losses)	$	(268	)	$	(193	)	$	(34	)	$	101		$	(302	)	$	(92	)

(1) Other OTTI losses recognized in earnings include impairments on equity securities, impairments on perpetual hybrid securities classified within fixed maturity securities where the primary reason for the impairment was the severity and/or the duration of an unrealized loss position and fixed maturity securities where there is an intent to sell or it is more likely than not that the Company will be required to sell the security before recovery of the decline in estimated fair value.

Fixed maturity security OTTI losses recognized in earnings related to the following sectors and industries within the U.S. and foreign corporate securities sector:

	Three Months				Six Months
	Ended				Ended
	June 30,				June 30,
	2011		2010		2011		2010
	(In millions)
Sector:
U.S. and foreign corporate securities — by industry:
Finance	$	40	$	20	$	41	$	28
Consumer		27		1		29		23
Communications		1		—		14		3
Utility		—		3		1		3
Total U.S. and foreign corporate securities		68		24		85		57
Foreign government securities		13		—		89		—
RMBS		36		27		54		57
ABS		6		44		15		63
CMBS		—		51		3		61
Total	$	123	$	146	$	246	$	238

Equity security OTTI losses recognized in earnings related to the following sectors and industries:

	Three Months				Six Months
	Ended				Ended
	June 30,				June 30,
	2011		2010		2011		2010
	(In millions)
Sector:
Non-redeemable preferred stock	$	38	$	—	$	38	$	—
Common stock		9		1		15		2
Total	$	47	$	1	$	53	$	2
Industry:
Financial services industry — perpetual hybrid securities	$	38	$	—	$	38	$	—
Other industries		9		1		15		2
Total	$	47	$	1	$	53	$	2

Credit Loss Rollforward — Rollforward of the Cumulative Credit Loss Component of OTTI Loss Recognized in Earnings on Fixed Maturity Securities Still Held for Which a Portion of the OTTI Loss Was Recognized in Other Comprehensive Income (Loss)

The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still held by the Company for which a portion of the OTTI loss was recognized in other comprehensive income (loss):

	Three Months						Six Months
	Ended						Ended
	June 30,						June 30,
	2011			2010			2011			2010
	(In millions)
Balance, beginning of period	$	389		$	424		$	443		$	581
Additions:
Initial impairments — credit loss OTTI recognized on securities not previously impaired		18			62			26			81
Additional impairments — credit loss OTTI recognized on securities previously impaired		24			39			40			70
Reductions:
Due to sales (maturities, pay downs or prepayments) during the period of securities previously credit loss OTTI impaired		(26	)		(30	)		(55	)		(134	)
Due to securities de-recognized in connection with the adoption of new guidance related to the consolidation of VIEs		—			—			—			(100	)
Due to securities impaired to net present value of expected future cash flows		—			—			(44	)		—
Due to increases in cash flows — accretion of previous credit loss OTTI		(4	)		(4	)		(9	)		(7	)
Balance, end of period	$	401		$	491		$	401		$	491

Net Investment Income

The components of net investment income were as follows:

	Three Months						Six Months
	Ended						Ended
	June 30,						June 30,
	2011			2010			2011			2010
	(In millions)
Investment income:
Fixed maturity securities	$	3,791		$	3,013		$	7,474		$	6,066
Equity securities		48			39			78			64
Trading and other securities — Actively Traded Securities and FVO general account securities (1)		16			(4	)		44			11
Mortgage loans		766			695			1,525			1,368
Policy loans		160			157			320			333
Real estate and real estate joint ventures		200			135			354			179
Other limited partnership interests		159			161			402			426
Cash, cash equivalents and short-term investments		44			20			90			38
International joint ventures (2)		9			(97	)		(10	)		(80	)
Other		101			102			69			188
Subtotal		5,294			4,221			10,346			8,593
Less: Investment expenses		260			217			511			442
Subtotal, net		5,034			4,004			9,835			8,151
Trading and other securities — FVO contractholder-directed unit-linked investments (1)		(32	)		(52	)		387			12
FVO consolidated securitization entities:
Commercial mortgage loans		96			105			191			210
Securities		—			4			1			8
Subtotal		64			57			579			230
Net investment income	$	5,098		$	4,061		$	10,414		$	8,381

(1) Changes in estimated fair value subsequent to purchase included in net investment income were:

Trading and other securities — Actively Traded Securities and FVO general account securities	$	—		$	(19	)	$	21	$	(15	)
Trading and other securities— FVO contractholder-directed unit-linked investments	$	(84	)	$	(71	)	$	232	$	(14	)

(2) Amounts are presented net of changes in estimated fair value of derivatives related to economic hedges of the Company’s investment in these equity method international joint venture investments that do not qualify for hedge accounting of less than $1 million and $23 million for the three months and six months ended June 30, 2011, respectively, and $109 million and $77 million for the three months and six months ended June 30, 2010, respectively.

See “— Variable Interest Entities” for discussion of CSEs included in the table above.

Securities Lending

The Company participates in a securities lending program whereby blocks of securities, which are included in fixed maturity securities and short-term investments, are loaned to third parties, primarily brokerage firms and commercial banks. The Company generally obtains collateral, generally cash, in an amount equal to 102% of the estimated fair value of the securities loaned, which is obtained at the inception of a loan and maintained at a level greater than or equal to 100% for the duration of the loan. Securities loaned under such transactions may be sold or repledged by the transferee. The Company is liable to return to its counterparties the cash collateral under its control. These transactions are treated as financing arrangements and the associated liability is recorded at the amount of the cash received.

Elements of the securities lending program are presented below at:

	June 30, 2011		December 31, 2010
	(In millions)
Securities on loan:
Amortized cost	$	25,336	$	23,715
Estimated fair value	$	25,938	$	24,230
Aging of cash collateral liability:
Open (1)	$	3,477	$	2,752
Less than thirty days		15,609		12,301
Thirty days or greater but less than sixty days		5,351		4,399
Sixty days or greater but less than ninety days		1,020		2,291
Ninety days or greater		1,124		2,904
Total cash collateral liability	$	26,581	$	24,647
Security collateral on deposit from counterparties	$	22	$	—
Reinvestment portfolio — estimated fair value	$	26,482	$	24,177

(1) Open — meaning that the related loaned security could be returned to the Company on the next business day requiring the Company to immediately return the cash collateral.

The estimated fair value of the securities on loan related to the cash collateral on open at June 30, 2011 was $3.4 billion, of which $2.9 billion were U.S. Treasury and agency securities which, if put to the Company, can be immediately sold to satisfy the cash requirements. The remainder of the securities on loan was primarily U.S. Treasury and agency securities, and very liquid RMBS. The U.S. Treasury securities on loan were primarily holdings of on-the-run U.S. Treasury securities, the most liquid U.S. Treasury securities available. If these high quality securities that are on loan are put back to the Company, the proceeds from immediately selling these securities can be used to satisfy the related cash requirements. The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including RMBS, U.S. Treasury and agency securities, U.S. corporate securities, ABS, foreign corporate securities and CMBS). If the on loan securities or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities are put back to the Company.

Security collateral on deposit from counterparties in connection with the securities lending transactions may not be sold or repledged, unless the counterparty is in default, and is not reflected in the consolidated financial statements.

Invested Assets on Deposit, Held in Trust and Pledged as Collateral

Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value for cash and cash equivalents, short-term investments, fixed maturity, equity, trading and other securities and at carrying value for mortgage loans.

	June 30, 2011		December 31, 2010
	(In millions)
Invested assets on deposit:
Regulatory agencies	$	1,950	$	2,110
Invested assets held in trust:
Collateral financing arrangements		5,408		5,340
Reinsurance arrangements		2,971		3,090
Invested assets pledged as collateral:
Funding agreements and advances — Federal Home Loan Bank (“FHLB”) of New York		20,589		21,975
Funding agreements — Federal Agricultural Mortgage Corporation		3,160		3,159
Funding agreements — FHLB of Des Moines		850		—
Funding agreements — FHLB of Boston		534		211
Federal Reserve Bank of New York		1,654		1,822
Collateral financing arrangements		93		112
Derivative transactions		971		1,726
Short sale agreements		568		465
Total invested assets on deposit, held in trust and pledged as collateral	$	38,748	$	40,010

See Note 3 “— Investments — Invested Assets on Deposit, Held in Trust and Pledged as Collateral” of the Notes to the Consolidated Financial Statements included in the 2010 Annual Report for a description of the types of invested assets on deposit, held in trust and pledged as collateral and selected other information about the related program or counterparty. In 2011, the Company pledged fixed maturity securities in support of its funding agreements with the FHLB of Des Moines. See Note 8 of the Notes to the Consolidated Financial Statements included in the 2010 Annual Report for a description of the nature of these funding agreements.

See also “— Securities Lending” for the amount of the Company’s cash received from and due back to counterparties pursuant to the Company’s securities lending program. See also “— Variable Interest Entities” for assets of certain CSEs that can only be used to settle liabilities of such entities.

Trading and Other Securities

The table below presents certain information about the Company’s trading securities that are actively purchased and sold (“Actively Traded Securities”) and other securities for which the FVO has been elected:

	June 30, 2011			December 31, 2010
	(In millions)
Actively Traded Securities	$	560		$	463
FVO general account securities		303			131
FVO contractholder-directed unit-linked investments		18,690			17,794
FVO securities held by consolidated securitization entities		147			201
Total trading and other securities — at estimated fair value	$	19,700		$	18,589
Actively Traded Securities — at estimated fair value	$	560		$	463
Short sale agreement liabilities — at estimated fair value		(54	)		(46	)
Net long/short position — at estimated fair value	$	506		$	417
Investments pledged to secure short sale agreement liabilities	$	568		$	465

See Note 1 of the Notes to the Consolidated Financial Statements included in the 2010 Annual Report for discussion of FVO contractholder-directed unit-linked investments and “— Variable Interest Entities” for discussion of CSEs included in the table above. See “— Net Investment Income” and “— Net Investment Gains (Losses)” for the net investment income recognized on trading and other securities and the related changes in estimated fair value subsequent to purchase included in net investment income and net investment gains (losses), as applicable.

Mortgage Loans

Mortgage loans are summarized as follows at:

	June 30, 2011						December 31, 2010
	Carrying			% of			Carrying			% of
	Value			Total			Value			Total
	(In millions)
Mortgage loans held-for-investment:
Commercial	$	39,050			61.4	%	$	37,818			60.7	%
Agricultural		12,981			20.4			12,751			20.4
Residential		2,657			4.2			2,231			3.7
Subtotal		54,688			86.0			52,800			84.8
Valuation allowances		(566	)		(0.9	)		(664	)		(1.1	)
Subtotal mortgage loans held-for-investment, net		54,122			85.1			52,136			83.7
Commercial mortgage loans held by consolidated securitization entities — FVO		6,697			10.5			6,840			11.0
Total mortgage loans held-for-investment, net		60,819			95.6			58,976			94.7
Mortgage loans held-for-sale:
Residential — FVO		1,863			2.9			2,510			4.0
Agricultural and residential mortgage loans — lower of amortized cost or estimated fair value		942			1.5			811			1.3
Total mortgage loans held-for-sale		2,805			4.4			3,321			5.3
Total mortgage loans, net	$	63,624			100.0	%	$	62,297			100.0	%

See “— Variable Interest Entities” for discussion of CSEs included in the table above.

Concentration of Credit Risk.  The Company diversifies its mortgage loan portfolio by both geographic region and property type to reduce the risk of concentration. The majority, 91%, of the Company’s commercial and agricultural mortgage loans are collateralized by properties located in the U.S., with the remaining 9% collateralized by properties located outside the U.S., calculated as a percent of total mortgage loans held-for-investment (excluding commercial mortgage loans held by CSEs) at June 30, 2011. The carrying value of the Company’s commercial and agricultural mortgage loans located in California, New York and Illinois were 19%, 9% and 7%, respectively, of total mortgage loans held-for-investment (excluding commercial mortgage loans held by CSEs) at June 30, 2011. Additionally, the Company manages risk when originating commercial and agricultural mortgage loans by generally lending only up to 75% of the estimated fair value of the underlying real estate.

Certain of the Company’s real estate joint ventures have mortgage loans with the Company. The carrying values of such mortgage loans were $286 million and $283 million at June 30, 2011 and December 31, 2010, respectively.

The following tables present the recorded investment in mortgage loans held-for-investment, by portfolio segment, by method of evaluation of credit loss, and the related valuation allowances, by type of credit loss, at:

	Commercial		Agricultural		Residential		Total
	(In millions)
June 30, 2011:
Mortgage loans:
Evaluated individually for credit losses	$	126	$	128	$	11	$	265
Evaluated collectively for credit losses		38,924		12,853		2,646		54,423
Total mortgage loans		39,050		12,981		2,657		54,688
Valuation allowances:
Specific credit losses		28		43		1		72
Non-specifically identified credit losses		441		36		17		494
Total valuation allowances		469		79		18		566
Mortgage loans, net of valuation allowance	$	38,581	$	12,902	$	2,639	$	54,122
December 31, 2010:
Mortgage loans:
Evaluated individually for credit losses	$	120	$	146	$	13	$	279
Evaluated collectively for credit losses		37,698		12,605		2,218		52,521
Total mortgage loans		37,818		12,751		2,231		52,800
Valuation allowances:
Specific credit losses		36		52		—		88
Non-specifically identified credit losses		526		36		14		576
Total valuation allowances		562		88		14		664
Mortgage loans, net of valuation allowance	$	37,256	$	12,663	$	2,217	$	52,136

The following tables present the changes in the valuation allowance, by portfolio segment:

	Mortgage Loan Valuation Allowances
	Commercial			Agricultural			Residential			Total
	(In millions)
For the Three Months Ended June 30, 2011:
Balance, beginning of period	$	532		$	76		$	13		$	621
Provision (release)		(63	)		3			5			(55	)
Charge-offs, net of recoveries		—			—			—			—
Balance, end of period	$	469		$	79		$	18		$	566
For the Three Months Ended June 30, 2010:
Balance, beginning of period	$	624		$	110		$	17		$	751
Provision (release)		(3	)		(7	)		2			(8	)
Charge-offs, net of recoveries		—			(7	)		(2	)		(9	)
Balance, end of period	$	621		$	96		$	17		$	734
For the Six Months Ended June 30, 2011:
Balance, beginning of period	$	562		$	88		$	14		$	664
Provision (release)		(93	)		(6	)		5			(94	)
Charge-offs, net of recoveries		—			(3	)		(1	)		(4	)
Balance, end of period	$	469		$	79		$	18		$	566
For the Six Months Ended June 30, 2010:
Balance, beginning of period	$	589		$	115		$	17		$	721
Provision (release)		32			(1	)		2			33
Charge-offs, net of recoveries		—			(18	)		(2	)		(20	)
Balance, end of period	$	621		$	96		$	17		$	734

Commercial Mortgage Loans — by Credit Quality Indicators with Estimated Fair Value.  Presented below for the commercial mortgage loans held-for-investment is the recorded investment, prior to valuation allowances, by the indicated loan-to-value ratio categories and debt service coverage ratio categories and estimated fair value of such mortgage loans by the indicated loan-to-value ratio categories at:

	Commercial
	Recorded Investment
	Debt Service Coverage Ratios											Estimated
	> 1.20x		1.00x - 1.20x		< 1.00x		Total		% of Total			Fair Value		% of Total
	(In millions)											(In millions)
June 30, 2011:
Loan-to-value ratios:
Less than 65%	$	20,130	$	480	$	432	$	21,042		53.9	%	$	22,463		55.2	%
65% to 75%		9,292		520		478		10,290		26.4			10,811		26.6
76% to 80%		2,528		131		53		2,712		6.9			2,748		6.8
Greater than 80%		3,432		931		643		5,006		12.8			4,638		11.4
Total	$	35,382	$	2,062	$	1,606	$	39,050		100.0	%	$	40,660		100.0	%
December 31, 2010:
Loan-to-value ratios:
Less than 65%	$	16,663	$	125	$	483	$	17,271		45.7	%	$	18,183		46.9	%
65% to 75%		9,022		765		513		10,300		27.2			10,685		27.6
76% to 80%		3,033		304		135		3,472		9.2			3,535		9.1
Greater than 80%		4,155		1,813		807		6,775		17.9			6,374		16.4
Total	$	32,873	$	3,007	$	1,938	$	37,818		100.0	%	$	38,777		100.0	%

Agricultural Mortgage Loans — by Credit Quality Indicator.  The recorded investment in agricultural mortgage loans held-for-investment, prior to valuation allowances, by credit quality indicator, is as shown below. The estimated fair value of agricultural mortgage loans held-for-investment was $13.3 billion and $12.9 billion at June 30, 2011 and December 31, 2010, respectively.

	Agricultural
	June 30, 2011					December 31, 2010
	Recorded Investment		% of Total			Recorded Investment		% of Total
	(In millions)					(In millions)
Loan-to-value ratios:
Less than 65%	$	11,639		89.7	%	$	11,483		90.1	%
65% to 75%		888		6.8			885		6.9
76% to 80%		12		0.1			48		0.4
Greater than 80%		442		3.4			335		2.6
Total	$	12,981		100.0	%	$	12,751		100.0	%

Residential Mortgage Loans — by Credit Quality Indicator.  The recorded investment in residential mortgage loans held-for-investment, prior to valuation allowances, by credit quality indicator, is as shown below. The estimated fair value of residential mortgage loans held-for-investment was $2.7 billion and $2.3 billion at June 30, 2011 and December 31, 2010, respectively.

	Residential
	June 30, 2011					December 31, 2010
	Recorded Investment		% of Total			Recorded Investment		% of Total
	(In millions)					(In millions)
Performance indicators:
Performing	$	2,584		97.3	%	$	2,149		96.3	%
Nonperforming		73		2.7			82		3.7
Total	$	2,657		100.0	%	$	2,231		100.0	%

Past Due and Interest Accrual Status of Mortgage Loans.  The Company has a high quality, well performing, mortgage loan portfolio, with approximately 99% of all mortgage loans classified as performing at both June 30, 2011 and December 31, 2010. The Company defines delinquent mortgage loans consistent with industry practice, when interest and principal payments are past due as follows: commercial mortgage loans — 60 days or more past due; agricultural mortgage loans — 90 days or more past due; and residential mortgage loans — 60 days or more past due. The recorded investment in mortgage loans held-for-investment, prior to valuation allowances, past due according to these aging categories, greater than 90 days past due and still accruing interest and in nonaccrual status, by portfolio segment, were as follows at:

					Greater than 90 Days Past Due
	Past Due				Still Accruing Interest				Nonaccrual Status
	June 30, 2011		December 31, 2010		June 30, 2011		December 31, 2010		June 30, 2011		December 31, 2010
	(In millions)
Commercial	$	161	$	58	$	115	$	1	$	41	$	7
Agricultural		161		159		17		13		147		177
Residential		35		79		10		11		28		25
Total	$	357	$	296	$	142	$	25	$	216	$	209

Impaired Mortgage Loans.  The unpaid principal balance, recorded investment, valuation allowances and carrying value, net of valuation allowances, for impaired mortgage loans held-for-investment, by portfolio segment, were as follows at:

	Impaired Mortgage Loans
									Loans without
	Loans with a Valuation Allowance								a Valuation Allowance				All Impaired Loans
	Unpaid								Unpaid				Unpaid
	Principal		Recorded		Valuation		Carrying		Principal		Recorded		Principal		Carrying
	Balance		Investment		Allowances		Value		Balance		Investment		Balance		Value
	(In millions)
June 30, 2011:
Commercial	$	126	$	126	$	28	$	98	$	105	$	95	$	231	$	193
Agricultural		131		128		43		85		105		100		236		185
Residential		11		11		1		10		15		15		26		25
Total	$	268	$	265	$	72	$	193	$	225	$	210	$	493	$	403
December 31, 2010:
Commercial	$	120	$	120	$	36	$	84	$	99	$	87	$	219	$	171
Agricultural		146		146		52		94		123		119		269		213
Residential		3		3		—		3		16		16		19		19
Total	$	269	$	269	$	88	$	181	$	238	$	222	$	507	$	403

Unpaid principal balance is generally prior to any charge-off.

The average investment in impaired mortgage loans held-for-investment, and the related interest income, by portfolio segment was:

	Impaired Mortgage Loans
	Average Investment		Interest Income Recognized
			Cash Basis		Accrual Basis
	(In millions)
For the Three Months Ended June 30, 2011:
Commercial	$	292	$	—	$	—
Agricultural		255		—		1
Residential		32		—		—
Total	$	579	$	—	$	1
For the Three Months Ended June 30, 2010:
Commercial	$	182	$	2	$	—
Agricultural		278		2		—
Residential		7		—		—
Total	$	467	$	4	$	—
For the Six Months Ended June 30, 2011:
Commercial	$	264	$	3	$	1
Agricultural		268		2		1
Residential		28		—		—
Total	$	560	$	5	$	2
For the Six Months Ended June 30, 2010:
Commercial	$	156	$	4	$	1
Agricultural		289		3		—
Residential		7		—		—
Total	$	452	$	7	$	1

Cash Equivalents

Cash equivalents, which include investments with an original or remaining maturity of three months or less at the time of purchase, were $4.9 billion and $9.6 billion at June 30, 2011 and December 31, 2010, respectively.

Purchased Credit Impaired Investments

Investments acquired with evidence of credit quality deterioration since origination and for which it is probable at the acquisition date that the Company will be unable to collect all contractually required payments are classified as purchased credit impaired investments. For each investment, the excess of the cash flows expected to be collected as of the acquisition date over its acquisition date fair value is referred to as the accretable yield and is recognized as net investment income on an effective yield basis. If subsequently, based on current information and events, it is probable that there is a significant increase in cash flows previously expected to be collected or if actual cash flows are significantly greater than cash flows previously expected to be collected, the accretable yield is adjusted prospectively. The excess of the contractually required payments (including interest) as of the acquisition date over the cash flows expected to be collected as of the acquisition date is referred to as the nonaccretable difference, and this amount is not expected to be realized as net investment income. Decreases in cash flows expected to be collected can result in OTTI or the recognition of mortgage loan valuation allowances.

The table below presents the purchased credit impaired investments, by invested asset class, held at:

	Fixed Maturity Securities				Mortgage Loans
	June 30, 2011		December 31, 2010		June 30, 2011		December 31, 2010
	(In millions)
Outstanding principal and interest balance (1)	$	3,360	$	1,548	$	510	$	504
Carrying value (2)	$	2,377	$	1,050	$	205	$	195

(1)	Represents the contractually required payments which is the sum of contractual principal, whether or not currently due, and accrued interest.
(2)	Estimated fair value plus accrued interest for fixed maturity securities and amortized cost, plus accrued interest, less any valuation allowances, for mortgage loans.

The following table presents information about purchased credit impaired investments acquired during the periods, as of their respective acquisition dates:

	Fixed Maturity Securities				Mortgage Loans
	Six Months				Six Months
	Ended				Ended
	June 30,				June 30,
	2011		2010		2011		2010
	(In millions)
Contractually required payments (including interest)	$	4,651	$	1,083	$	—	$	—
Cash flows expected to be collected (1)	$	2,724	$	1,021	$	—	$	—
Fair value of investments acquired	$	1,503	$	633	$	—	$	—

(1) Represents undiscounted principal and interest cash flow expectations at the date of acquisition.

The following table presents activity for the accretable yield on purchased credit impaired investments for:

	Fixed Maturity Securities												Mortgage Loans
	Three Months						Six Months						Three Months					Six Months
	Ended						Ended						Ended					Ended
	June 30,						June 30,						June 30,					June 30,
	2011			2010			2011			2010			2011			2010		2011			2010
	(In millions)
Accretable yield, beginning of period	$	708		$	70		$	541		$	—		$	176		$	—	$	170		$	—
Investments purchased		1,089			317			1,221			388			—			—		—			—
Accretion recognized in net investment income		(32	)		(6	)		(49	)		(7	)		(20	)		—		(32	)		—
Disposals		(18	)		—			(69	)		—			—			—		—			—
Reclassification (to) from nonaccretable difference		144			(12	)		247			(12	)		102			—		120			—
Accretable yield, end of period	$	1,891		$	369		$	1,891		$	369		$	258		$	—	$	258		$	—

Variable Interest Entities

The Company holds investments in certain entities that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. The following table presents the total assets and total liabilities relating to VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at June 30, 2011 and December 31, 2010. Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment.

	June 30, 2011				December 31, 2010
	Total		Total		Total		Total
	Assets		Liabilities		Assets		Liabilities
	(In millions)
Consolidated securitization entities (1)	$	6,899	$	6,606	$	7,114	$	6,892
MRSC collateral financing arrangement (2)		3,381		—		3,333		—
Other limited partnership interests		354		26		319		85
Trading and other securities		212		—		186		—
Other invested assets		102		1		108		1
Real estate joint ventures		17		18		20		17
Total	$	10,965	$	6,651	$	11,080	$	6,995

(1) The Company consolidated former qualified special purpose entities (“QSPEs”) that are structured as CMBS and former QSPEs that are structured as collateralized debt obligations. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company or any of its subsidiaries or affiliates liable for any principal or interest shortfalls should any arise. The Company’s exposure was limited to that of its remaining investment in the former QSPEs of $280 million and $201 million at estimated fair value at June 30, 2011 and December 31, 2010, respectively. The long-term debt referred to below bears interest at primarily fixed rates ranging from 2.25% to 5.57%, payable primarily on a monthly basis and is expected to be repaid over the next 7 years. Interest expense related to these obligations, included in other expenses, was $92 million and $184 million for the three months and six months ended June 30, 2011, respectively, and $103 million and $209 million for the three months and six months ended June 30, 2010, respectively. The assets and liabilities of these CSEs were as follows at:

	June 30, 2011		December 31, 2010
	(In millions)
Assets:
Mortgage loans held-for-investment (commercial mortgage loans)	$	6,697	$	6,840
Trading and other securities		147		201
Cash and cash equivalents		21		39
Accrued investment income		34		34
Total assets	$	6,899	$	7,114
Liabilities:
Long-term debt	$	6,547	$	6,820
Other liabilities		59		72
Total liabilities	$	6,606	$	6,892

(2) See Note 12 of the Notes to the Consolidated Financial Statements included in the 2010 Annual Report for a description of the MetLife Reinsurance Company of South Carolina (“MRSC”) collateral financing arrangement. These assets consist of the following, at estimated fair value at:

	June 30, 2011		December 31, 2010
	(In millions)
Fixed maturity securities available-for-sale:
ABS	$	1,447	$	1,333
U.S. corporate securities		745		893
RMBS		547		547
CMBS		412		383
Foreign corporate securities		166		139
State and political subdivision securities		40		30
Foreign government securities		—		5
Cash and cash equivalents		24		3
Total	$	3,381	$	3,333

The following table presents the carrying amount and maximum exposure to loss relating to VIEs for which the Company holds significant variable interests but is not the primary beneficiary and which have not been consolidated at:

	June 30, 2011				December 31, 2010
			Maximum				Maximum
	Carrying		Exposure		Carrying		Exposure
	Amount		to Loss (1)		Amount		to Loss (1)
	(In millions)
Fixed maturity securities available-for-sale:
RMBS (2)	$	43,550	$	43,550	$	44,733	$	44,733
CMBS (2)		19,518		19,518		20,675		20,675
ABS (2)		14,857		14,857		14,287		14,287
Foreign corporate securities		3,350		3,350		2,950		2,950
U.S. corporate securities		2,610		2,610		2,435		2,435
Other limited partnership interests		4,381		6,180		4,383		6,479
Trading and other securities		784		784		789		789
Other invested assets		582		909		576		773
Mortgage loans		475		475		350		350
Real estate joint ventures		58		104		40		108
Equity securities available-for-sale:
Non-redeemable preferred stock		33		33		—		—
Total	$	90,198	$	92,370	$	91,218	$	93,579

(1)

The maximum exposure to loss relating to the fixed maturity, equity and trading and other securities is equal to the carrying amounts or carrying amounts of retained interests. The maximum exposure to loss relating to the other limited partnership interests and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments of the Company. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. The maximum exposure to loss relating to the mortgage loans is equal to the carrying amounts plus any unfunded commitments of the Company. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by a creditworthy third party. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of $333 million and $231 million at June 30, 2011 and December 31, 2010, respectively.

(2)

For these variable interests, the Company’s involvement is limited to that of a passive investor.

As described in Note 8, the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs during the six months ended June 30, 2011.