Investments

9 Months Ended

Sep. 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:

	September 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	$	99,832	$	8,219	$	1,476	$	—		$	106,575		30.1	%
Foreign corporate securities (1)		61,013		3,616		1,108		(1	)		63,522		18.0
Foreign government securities		50,243		2,936		220		—			52,959		15.0
Residential mortgage-backed securities (“RMBS”)		40,799		2,383		698		591			41,893		11.8
U.S. Treasury and agency securities		36,159		5,686		11		—			41,834		11.8
Commercial mortgage-backed securities (“CMBS”)		19,259		635		307		2			19,585		5.5
Asset-backed securities (“ABS”)		14,765		322		583		86			14,418		4.1
State and political subdivision securities		11,939		1,371		169		—			13,141		3.7
Other fixed maturity securities		—		—		—		—			—		—
Total fixed maturity securities (2), (3)	$	334,009	$	25,168	$	4,572	$	678		$	353,927		100.0	%
Equity Securities:
Common stock	$	2,173	$	80	$	42	$	—		$	2,211		70.9	%
Non-redeemable preferred stock (2)		1,054		39		186		—			907		29.1
Total equity securities	$	3,227	$	119	$	228	$	—		$	3,118		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 was in an unrealized gain (loss) position of $1 million at September 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:

			September 30,		December 31,
			2011		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	$	632	$	2,008
Fixed maturity securities	U.S. corporate securities	U.S. financial institutions	$	181	$	83
Equity securities	Non-redeemable preferred stock	Non-U.S. financial institutions	$	481	$	1,043
Equity securities	Non-redeemable preferred stock	U.S. financial institutions	$	381	$	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 $2.0 billion and $2.7 billion at estimated fair value of such securities at September 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 such subsidiaries are presented based on ratings from the revised NAIC rating methodologies for structured securities (which may not correspond to rating agency designations). Currently, the NAIC evaluates structured securities held by insurers using the revised NAIC rating methodologies on an annual basis. If such insurance subsidiaries of the Company acquire structured securities that have not been previously evaluated by the NAIC, but are expected to be evaluated by the NAIC in the upcoming annual review, an internally developed rating is used for interim reporting. 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:

	September 30, 2011			December 31, 2010
	(In millions)
Below investment grade or non-rated fixed maturity securities:
Estimated fair value	$	24,494		$	24,870
Net unrealized gains (losses)	$	(1,683	)	$	(696	)
Non-income producing fixed maturity securities:
Estimated fair value	$	145		$	130
Net unrealized gains (losses)	$	(54	)	$	(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 $1,018 million and $571 million at September 30, 2011, respectively, and $1,912 million and $1,644 million at December 31, 2010, respectively. The estimated fair value of such holdings was $629 million and $1,562 million prior to considering net purchased credit default swap protection at September 30, 2011 and December 31, 2010, respectively. The estimated fair value of these Europe perimeter region sovereign fixed maturity securities represented 1.0% and 3.2% of the Company’s equity at September 30, 2011 and December 31, 2010, respectively, and 0.1% and 0.3% of total cash and invested assets at September 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:

	September 30, 2011		December 31, 2010
	Carrying Value (1)
	(In millions)
Government and agency fixed maturity securities:
United States	$	41,834	$	33,304
Japan	$	20,644	$	15,591
Mexico (2)	$	—	$	5,050
U.S. Treasury and agency fixed-income securities included in:
Short-term investments	$	13,565	$	4,048
Cash equivalents	$	2,847	$	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.
(2)	The Company’s investment in Mexico government and agency fixed maturity securities at September 30, 2011 of $5,028 million is less than 10% of the Company’s equity.

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:

	September 30, 2011					December 31, 2010
	Estimated					Estimated
	Fair		% of			Fair		% of
	Value		Total			Value		Total
	(In millions)					(In millions)
Corporate fixed maturity securities — by sector:
Foreign corporate fixed maturity securities (1)	$	63,522		37.3	%	$	67,888		42.5	%
U.S. corporate fixed maturity securities — by industry:
Industrial		27,245		16.0			22,070		13.8
Consumer		26,414		15.5			21,482		13.5
Finance		21,864		12.9			20,785		13.0
Utility		19,152		11.3			16,902		10.6
Communications		8,318		4.9			7,335		4.6
Other		3,582		2.1			3,198		2.0
Total	$	170,097		100.0	%	$	159,660		100.0	%

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

	September 30, 2011					December 31, 2010
	Estimated					Estimated
	Fair		% of Total			Fair		% of Total
	Value		Investments			Value		Investments
	(In millions)					(In millions)
Concentrations within corporate fixed maturity securities:
Largest exposure to a single issuer	$	1,883		0.4	%	$	2,291		0.5	%
Holdings in ten issuers with the largest exposures	$	11,955		2.4	%	$	14,247		3.1	%

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

	September 30, 2011					December 31, 2010
	Estimated					Estimated
	Fair		% of			Fair		% of
	Value		Total			Value		Total
	(In millions)					(In millions)
By security type:
Collateralized mortgage obligations	$	22,903		54.7	%	$	22,303		49.9	%
Pass-through securities		18,990		45.3			22,430		50.1
Total RMBS	$	41,893		100.0	%	$	44,733		100.0	%
By risk profile:
Agency	$	31,386		74.9	%	$	34,254		76.6	%
Prime		5,935		14.2			6,258		14.0
Alternative residential mortgage loans		4,572		10.9			4,221		9.4
Total RMBS	$	41,893		100.0	%	$	44,733		100.0	%
Rated Aaa/AAA	$	32,452		77.5	%	$	36,085		80.7	%
Rated NAIC 1	$	36,543		87.2	%	$	38,984		87.1	%

See Note 3 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:

	September 30, 2011					December 31, 2010
	Estimated					Estimated
	Fair		% of			Fair		% of
	Value		Total			Value		Total
	(In millions)					(In millions)
Vintage Year:
2005 & Prior	$	1,632		35.7	%	$	1,576		37.3	%
2006		1,294		28.3			1,013		24.0
2007		997		21.8			922		21.8
2008		—		—			7		0.2
2009 (1)		615		13.5			671		15.9
2010 (1)		34		0.7			32		0.8
2011		—		—			—		—
Total	$	4,572		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.

	September 30, 2011						December 31, 2010
				% of						% of
	Amount			Total			Amount			Total
	(In millions)						(In millions)
Net unrealized gains (losses)	$	(824	)				$	(670	)
Rated Aa/AA or better					12.7	%					15.9	%
Rated NAIC 1					47.1	%					39.5	%
Distribution of holdings — at estimated fair value — by collateral type:
Fixed rate mortgage loans collateral					92.7	%					90.7	%
Hybrid adjustable rate mortgage loans collateral					7.3						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:

	September 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	$	5,936		6,040			178		176			105		101			58		55			21		20		$	6,298	$	6,392
2004		3,698		3,823			447		455			134		126			92		89			33		26			4,404		4,519
2005		3,117		3,316			400		401			324		311			168		153			37		26			4,046		4,207
2006		1,733		1,813			229		217			91		87			147		135			157		137			2,357		2,389
2007		700		714			439		362			163		137			39		38			126		117			1,467		1,368
2008		—		—			—		—			—		—			—		—			24		29			24		29
2009		2		2			—		—			—		—			—		—			—		—			2		2
2010		2		3			—		—			60		66			—		—			—		—			62		69
2011		505		513			—		—			94		97			—		—			—		—			599		610
Total	$	15,693	$	16,224		$	1,693	$	1,611		$	971	$	925		$	504	$	470		$	398	$	355		$	19,259	$	19,585
Ratings Distribution				82.8	%				8.3	%				4.7	%				2.4	%				1.8	%				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:

	September 30, 2011			December 31, 2010
NAIC 1		94.3	%		93.7	%
NAIC 2		4.1	%		3.2	%
NAIC 3		0.5	%		1.8	%
NAIC 4		0.7	%		1.0	%
NAIC 5		—	%		0.3	%
NAIC 6		0.4	%		—	%

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:

	September 30, 2011					December 31, 2010
	Estimated					Estimated
	Fair		% of			Fair		% of
	Value		Total			Value		Total
	(In millions)					(In millions)
By collateral type:
Credit card loans	$	4,444		30.8	%	$	6,027		42.2	%
Student loans		2,645		18.4			2,416		16.9
Collateralized debt obligations		2,578		17.9			1,798		12.6
Automobile loans		1,039		7.2			605		4.2
RMBS backed by sub-prime mortgage loans		997		6.9			1,119		7.8
Other loans		2,715		18.8			2,322		16.3
Total	$	14,418		100.0	%	$	14,287		100.0	%
Rated Aaa/AAA	$	9,250		64.2	%	$	10,411		72.9	%
Rated NAIC 1	$	13,324		92.4	%	$	13,133		91.9	%

The Company had ABS supported by sub-prime mortgage loans with estimated fair values of $997 million and $1,119 million and unrealized losses of $350 million and $317 million at September 30, 2011 and December 31, 2010, respectively. Approximately 24% of this portfolio was rated Aa or better, of which 71% was in vintage year 2005 and prior at September 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 68% and 66% of this portfolio was rated NAIC 2 or better at September 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 September 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:

	September 30, 2011				December 31, 2010
			Estimated				Estimated
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In millions)
Due in one year or less	$	13,713	$	13,813	$	8,580	$	8,702
Due after one year through five years		68,498		70,234		65,143		66,796
Due after five years through ten years		83,338		88,497		76,508		79,571
Due after ten years		93,637		105,487		87,983		90,033
Subtotal		259,186		278,031		238,214		245,102
RMBS, CMBS and ABS		74,823		75,896		79,403		79,695
Total fixed maturity securities	$	334,009	$	353,927	$	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:

	September 30, 2011			December 31, 2010
	(In millions)
Fixed maturity securities	$	20,703		$	7,817
Fixed maturity securities with noncredit OTTI losses in accumulated other comprehensive income (loss)		(678	)		(601	)
Total fixed maturity securities		20,025			7,216
Equity securities		(95	)		(3	)
Derivatives		1,486			(59	)
Other		63			42
Subtotal		21,479			7,196
Amounts allocated from:
Insurance liability loss recognition		(3,946	)		(672	)
DAC and VOBA related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)		41			38
DAC and VOBA		(2,070	)		(1,205	)
Policyholder dividend obligation		(2,782	)		(876	)
Subtotal		(8,757	)		(2,715	)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)		220			197
Deferred income tax benefit (expense)		(4,504	)		(1,692	)
Net unrealized investment gains (losses)		8,438			2,986
Net unrealized investment gains (losses) attributable to noncontrolling interests		9			4
Net unrealized investment gains (losses) attributable to MetLife, Inc.	$	8,447		$	2,990

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

	September 30, 2011			December 31, 2010
	(In millions)
Balance, beginning of period	$	(601	)	$	(859	)
Noncredit OTTI losses recognized (1)		5			(212	)
Transferred to retained earnings (2)		—			16
Securities sold with previous noncredit OTTI loss		99			137
Subsequent changes in estimated fair value		(181	)		317
Balance, end of period	$	(678	)	$	(601	)

(1) Noncredit OTTI losses recognized, net of DAC, were $6 million and ($202) million for the periods ended September 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:

	Nine Months
	Ended
	September 30, 2011
	(In millions)
Balance, beginning of period	$	2,990
Fixed maturity securities on which noncredit OTTI losses have been recognized		(77	)
Unrealized investment gains (losses) during the period		14,360
Unrealized investment gains (losses) relating to:
Insurance liability gain (loss) recognition		(3,274	)
DAC and VOBA related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)		3
DAC and VOBA		(865	)
Policyholder dividend obligation		(1,906	)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)		23
Deferred income tax benefit (expense)		(2,812	)
Net unrealized investment gains (losses)		8,442
Net unrealized investment gains (losses) attributable to noncontrolling interests		5
Balance, end of period	$	8,447
Change in net unrealized investment gains (losses)	$	5,452
Change in net unrealized investment gains (losses) attributable to noncontrolling interests		5
Change in net unrealized investment gains (losses) attributable to MetLife, Inc.	$	5,457

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.

	September 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	$	18,303	$	597	$	4,981	$	879	$	23,284	$	1,476
Foreign corporate securities		16,560		846		1,480		261		18,040		1,107
Foreign government securities		8,092		208		158		12		8,250		220
RMBS		3,761		324		4,501		965		8,262		1,289
U.S. Treasury and agency securities		8,937		9		39		2		8,976		11
CMBS		4,974		200		620		109		5,594		309
ABS		4,670		189		2,087		480		6,757		669
State and political subdivision securities		416		6		981		163		1,397		169
Other fixed maturity securities		—		—		—		—		—		—
Total fixed maturity securities	$	65,713	$	2,379	$	14,847	$	2,871	$	80,560	$	5,250
Equity Securities:
Common stock	$	416	$	41	$	23	$	1	$	439	$	42
Non-redeemable preferred stock		227		30		386		156		613		186
Total equity securities	$	643	$	71	$	409	$	157	$	1,052	$	228
Total number of securities in an unrealized loss position		4,414				1,340

	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:

	September 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	$	50,785	$	5,026	$	1,365		$	1,377			2,871		290
Six months or greater but less than nine months		1,747		349		68			106			200		23
Nine months or greater but less than twelve months		13,543		147		367			41			1,126		9
Twelve months or greater		11,858		2,355		1,018			908			971		181
Total	$	77,933	$	7,877	$	2,818		$	2,432
Percentage of amortized cost						4	%		31	%
Equity Securities:
Less than six months	$	571	$	304	$	36		$	89			168		54
Six months or greater but less than nine months		10		—		1			—			7		3
Nine months or greater but less than twelve months		46		1		4			1			14		9
Twelve months or greater		125		223		12			85			11		13
Total	$	752	$	528	$	53		$	175
Percentage of cost						7	%		33	%

	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 $85 million at September 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 September 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 September 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:

	September 30, 2011			December 31, 2010
Sector:
U.S. corporate securities		27	%		23	%
RMBS		24			20
Foreign corporate securities		20			14
ABS		12			10
CMBS		6			4
Foreign government securities		4			9
State and political subdivision securities		3			8
U.S. Treasury and agency securities		—			8
Other		4			4
Total		100	%		100	%
Industry:
Mortgage-backed		30	%		24	%
Finance		25			21
Asset-backed		12			10
Utility		8			5
Consumer		7			4
Foreign government securities		4			9
Communications		4			2
State and political subdivision securities		3			8
Industrial		3			2
U.S. Treasury and agency securities		—			8
Other		4			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:

	September 30, 2011						December 31, 2010
	Fixed Maturity			Equity			Fixed Maturity			Equity
	Securities			Securities			Securities			Securities
	(In millions, except number of securities)
Number of securities		86			5			107			6
Total gross unrealized losses	$	1,612		$	79		$	2,014		$	103
Percentage of total gross unrealized losses		31	%		34	%		31	%		43	%

Fixed maturity and equity securities, each with gross unrealized losses greater than $10 million, decreased $426 million during the nine months ended September 30, 2011. The decline in, or improvement in, gross unrealized losses for the nine months ended September 30, 2011 was primarily attributable to a decrease in interest rates, partially offset by increasing credit spreads. 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 September 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)							(In millions)					(In millions)
Less than six months	$	89	$	67		75	%	$	52		78	%	$	52		100	%		52	%
Six months or greater but less than twelve months		1		—		—	%		—		—	%		—		—	%		—	%
Twelve months or greater		85		85		100	%		85		100	%		85		100	%		72	%
All equity securities with gross unrealized losses of 20% or more	$	175	$	152		87	%	$	137		90	%	$	137		100	%		64	%

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.

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 fair value option (“FVO”) has been elected:

	September 30, 2011			December 31, 2010
	(In millions)
Actively Traded Securities	$	415		$	463
FVO general account securities		269			131
FVO contractholder-directed unit-linked investments		17,874			17,794
FVO securities held by CSEs		140			201
Total trading and other securities — at estimated fair value	$	18,698		$	18,589
Actively Traded Securities — at estimated fair value	$	415		$	463
Short sale agreement liabilities — at estimated fair value		(67	)		(46	)
Net long/short position — at estimated fair value	$	348		$	417
Investments pledged to secure short sale agreement liabilities	$	467		$	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 consolidated securitization entities (“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.

Net Investment Gains (Losses)

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

	Three Months						Nine Months
	Ended						Ended
	September 30,						September 30,
	2011			2010			2011			2010
	(In millions)
Total gains (losses) on fixed maturity securities:
Total OTTI losses recognized	$	(95	)	$	(143	)	$	(525	)	$	(538	)
Less: Noncredit portion of OTTI losses transferred to and recognized in other comprehensive income (loss)		(189	)		24			(5	)		181
Net OTTI losses on fixed maturity securities recognized in earnings		(284	)		(119	)		(530	)		(357	)
Fixed maturity securities — net gains (losses) on sales and disposals		101			54			79			99
Total gains (losses) on fixed maturity securities		(183	)		(65	)		(451	)		(258	)
Other net investment gains (losses):
Equity securities		(3	)		(1	)		(37	)		100
Trading and other securities — FVO general account securities — changes in estimated fair value		(3	)		—			(3	)		—
Mortgage loans		45			37			160			20
Real estate and real estate joint ventures		139			(1	)		144			(50	)
Other limited partnership interests		—			(4	)		8			(15	)
Other investment portfolio gains (losses)		—			(67	)		(2	)		9
Subtotal — investment portfolio gains (losses)		(5	)		(101	)		(181	)		(194	)
FVO CSEs — changes in estimated fair value:
Commercial mortgage loans		(64	)		114			(39	)		767
Securities		2			(26	)		1			(47	)
Long-term debt — related to commercial mortgage loans		56			(109	)		48			(744	)
Long-term debt — related to securities		(1	)		37			(8	)		48
Other gains (losses) (1)		(43	)		(257	)		(130	)		(154	)
Subtotal FVO CSEs and other gains (losses)		(50	)		(241	)		(128	)		(130	)
Total net investment gains (losses)	$	(55	)	$	(342	)	$	(309	)	$	(324	)

(1) Other gains (losses) for the three months and nine months ended September 30, 2011 includes a loss of $0 and $87 million, respectively, related to the sale of the Company’s investment in MSI MetLife. See Note 2. Other gains (losses) for both the three months and nine months ended September 30, 2011 includes a loss of $65 million related to goodwill impairment. See Note 6.

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

Gains (losses) from foreign currency transactions included within net investment gains (losses) were $94 million and $80 million for the three months and nine months ended September 30, 2011, respectively, and ($37) million and $169 million for the three months and nine months ended September 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 September 30,
	2011			2010			2011			2010			2011			2010
	Fixed Maturity Securities						Equity Securities						Total
	(In millions)
Proceeds	$	19,368		$	10,747		$	169		$	96		$	19,537		$	10,843
Gross investment gains	$	252		$	190		$	9		$	7		$	261		$	197
Gross investment losses		(151	)		(136	)		(7	)		(7	)		(158	)		(143	)
Total OTTI losses recognized in earnings:
Credit-related		(269	)		(107	)		—			—			(269	)		(107	)
Other (1)		(15	)		(12	)		(5	)		(1	)		(20	)		(13	)
Total OTTI losses recognized in earnings		(284	)		(119	)		(5	)		(1	)		(289	)		(120	)
Net investment gains (losses)	$	(183	)	$	(65	)	$	(3	)	$	(1	)	$	(186	)	$	(66	)

	Nine Months Ended September 30,
	2011			2010			2011			2010			2011			2010
	Fixed Maturity Securities						Equity Securities						Total
	(In millions)
Proceeds	$	55,216		$	32,585		$	974		$	539		$	56,190		$	33,124
Gross investment gains	$	680		$	568		$	83		$	114		$	763		$	682
Gross investment losses		(601	)		(469	)		(62	)		(11	)		(663	)		(480	)
Total OTTI losses recognized in earnings:
Credit-related		(382	)		(339	)		—			—			(382	)		(339	)
Other (1)		(148	)		(18	)		(58	)		(3	)		(206	)		(21	)
Total OTTI losses recognized in earnings		(530	)		(357	)		(58	)		(3	)		(588	)		(360	)
Net investment gains (losses)	$	(451	)	$	(258	)	$	(37	)	$	100		$	(488	)	$	(158	)

(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				Nine Months
	Ended				Ended
	September 30,				September 30,
	2011		2010		2011		2010
			(In millions)
Sector:
U.S. and foreign corporate securities — by industry:
Finance	$	7	$	54	$	48	$	82
Consumer		6		8		35		31
Communications		12		9		26		12
Utility		6		—		7		3
Total U.S. and foreign corporate securities		31		71		116		128
Foreign government securities		206		—		295		—
RMBS		34		19		88		76
ABS		8		26		23		89
CMBS		5		3		8		64
Total	$	284	$	119	$	530	$	357

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

	Three Months				Nine Months
	Ended				Ended
	September 30,				September 30,
	2011		2010		2011		2010
	(In millions)
Sector:
Non-redeemable preferred stock	$	—	$	—	$	38	$	—
Common stock		5		1		20		3
Total	$	5	$	1	$	58	$	3
Industry:
Financial services industry — perpetual hybrid securities	$	—	$	—	$	38	$	—
Other industries		5		1		20		3
Total	$	5	$	1	$	58	$	3

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						Nine Months
	Ended						Ended
	September 30,						September 30,
	2011			2010			2011			2010
	(In millions)
Balance, beginning of period	$	401		$	491		$	443		$	581
Additions:
Initial impairments — credit loss OTTI recognized on securities not previously impaired		6			13			32			94
Additional impairments — credit loss OTTI recognized on securities previously impaired		39			34			79			104
Reductions:
Due to sales (maturities, pay downs or prepayments) during the period of securities previously impaired as credit loss OTTI		(8	)		(97	)		(63	)		(231	)
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		(1	)		—			(45	)		—
Due to increases in cash flows — accretion of previous credit loss OTTI		—			(2	)		(9	)		(9	)
Balance, end of period	$	437		$	439		$	437		$	439

Net Investment Income

The components of net investment income were as follows:

	Three Months						Nine Months
	Ended						Ended
	September 30,						September 30,
	2011			2010			2011			2010
	(In millions)
Investment income:
Fixed maturity securities	$	3,770		$	3,060		$	11,244		$	9,126
Equity securities		28			19			106			83
Trading and other securities — Actively Traded Securities and FVO general account securities (1)		(38	)		45			6			56
Mortgage loans		806			713			2,331			2,081
Policy loans		162			155			482			488
Real estate and real estate joint ventures		213			131			557			300
Other limited partnership interests		180			170			582			596
Cash, cash equivalents and short-term investments		41			26			131			64
International joint ventures (2)		7			19			(3	)		(61	)
Other		82			(7	)		151			181
Subtotal		5,251			4,331			15,587			12,914
Less: Investment expenses		271			222			774			654
Subtotal, net		4,980			4,109			14,813			12,260
Trading and other securities — FVO contractholder-directed unit-linked investments (1)		(824	)		149			(437	)		161
FVO CSEs:
Commercial mortgage loans		95			102			286			312
Securities		6			4			7			12
Subtotal		(723	)		255			(144	)		485
Net investment income	$	4,257		$	4,364		$	14,669		$	12,745

(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	$	(46	)	$	29	$	(25	)	$	16
Trading and other securities — FVO contractholder-directed unit-linked investments	$	(873	)	$	124	$	(641	)	$	111

(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 $0 and ($23) million for the three months and nine months ended September 30, 2011, respectively, and ($12) million and $65 million for the three months and nine months ended September 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 obtains collateral, usually cash, in an amount generally 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:

	September 30, 2011		December 31, 2010
	(In millions)
Securities on loan:
Amortized cost	$	22,488	$	23,715
Estimated fair value	$	26,040	$	24,230
Aging of cash collateral liability:
Open (1)	$	2,440	$	2,752
Less than thirty days		14,993		12,301
Thirty days or greater but less than sixty days		5,405		4,399
Sixty days or greater but less than ninety days		2,057		2,291
Ninety days or greater		908		2,904
Total cash collateral liability	$	25,803	$	24,647
Security collateral on deposit from counterparties	$	613	$	—
Reinvestment portfolio — estimated fair value	$	25,520	$	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 September 30, 2011 was $2.4 billion, of which $2.2 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.

	September 30, 2011		December 31, 2010
	(In millions)
Invested assets on deposit:
Regulatory agencies	$	2,050	$	2,110
Invested assets held in trust:
Collateral financing arrangements		5,342		5,340
Reinsurance arrangements		4,885		3,090
Invested assets pledged as collateral:
Funding agreements and advances — Federal Home Loan Bank (“FHLB”) of New York		21,385		21,975
Funding agreements — Federal Agricultural Mortgage Corporation		3,160		3,159
Funding agreements — FHLB of Des Moines		904		—
Funding agreements — FHLB of Boston		529		211
Federal Reserve Bank of New York		1,686		1,822
Collateral financing arrangements		273		112
Derivative transactions		1,029		1,726
Short sale agreements		467		465
Total invested assets on deposit, held in trust and pledged as collateral	$	41,710	$	40,010

See Note 3 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.

Mortgage Loans

Mortgage loans are summarized as follows at:

	September 30, 2011						December 31, 2010
	Carrying			% of			Carrying			% of
	Value			Total			Value			Total
	(In millions)						(In millions)
Mortgage loans held-for-investment:
Commercial	$	40,120			63.8	%	$	37,818			60.7	%
Agricultural		12,967			20.6			12,751			20.4
Residential		3,424			5.4			2,231			3.7
Subtotal		56,511			89.8			52,800			84.8
Valuation allowances		(529	)		(0.8	)		(664	)		(1.1	)
Subtotal mortgage loans held-for-investment, net		55,982			89.0			52,136			83.7
Commercial mortgage loans held by CSEs — FVO		3,227			5.1			6,840			11.0
Total mortgage loans held-for-investment, net		59,209			94.1			58,976			94.7
Mortgage loans held-for-sale:
Residential — FVO		2,590			4.1			2,510			4.0
Mortgage loans — lower of amortized cost or estimated fair value		1,150			1.8			811			1.3
Total mortgage loans held-for-sale		3,740			5.9			3,321			5.3
Total mortgage loans, net	$	62,949			100.0	%	$	62,297			100.0	%

See “— Variable Interest Entities” for discussion of CSEs included in the table above and the decrease in commercial mortgage loans held by CSEs — FVO.

Concentration of Credit Risk.  The Company diversifies its mortgage loan portfolio by both geographic region and property type to reduce the risk of concentration. Of the Company’s commercial and agricultural mortgage loans, 91% 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 September 30, 2011. The carrying value of the Company’s commercial and agricultural mortgage loans located in California, New York and Texas were 19%, 10% and 7%, respectively, of total mortgage loans held-for-investment (excluding commercial mortgage loans held by CSEs) at September 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 collateral.

Certain of the Company’s real estate joint ventures have mortgage loans with the Company. The carrying values of such mortgage loans were $285 million and $283 million at September 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)
September 30, 2011:
Mortgage loans:
Evaluated individually for credit losses	$	211	$	150	$	7	$	368
Evaluated collectively for credit losses		39,909		12,817		3,417		56,143
Total mortgage loans		40,120		12,967		3,424		56,511
Valuation allowances:
Specific credit losses		70		46		1		117
Non-specifically identified credit losses		358		36		18		412
Total valuation allowances		428		82		19		529
Mortgage loans, net of valuation allowance	$	39,692	$	12,885	$	3,405	$	55,982
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 September 30, 2011:
Balance, beginning of period	$	469		$	79		$	18		$	566
Provision (release)		(41	)		3			2			(36	)
Charge-offs, net of recoveries		—			—			(1	)		(1	)
Balance, end of period	$	428		$	82		$	19		$	529
For the Three Months Ended September 30, 2010:
Balance, beginning of period	$	621		$	96		$	17		$	734
Provision (release)		(27	)		1			3			(23	)
Charge-offs, net of recoveries		(21	)		(21	)		(3	)		(45	)
Balance, end of period	$	573		$	76		$	17		$	666
For the Nine Months Ended September 30, 2011:
Balance, beginning of period	$	562		$	88		$	14		$	664
Provision (release)		(134	)		(3	)		7			(130	)
Charge-offs, net of recoveries		—			(3	)		(2	)		(5	)
Balance, end of period	$	428		$	82		$	19		$	529
For the Nine Months Ended September 30, 2010:
Balance, beginning of period	$	589		$	115		$	17		$	721
Provision (release)		6			—			5			11
Charge-offs, net of recoveries		(22	)		(39	)		(5	)		(66	)
Balance, end of period	$	573		$	76		$	17		$	666

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)
September 30, 2011:
Loan-to-value ratios:
Less than 65%	$	22,293	$	438	$	565	$	23,296		58.1	%	$	24,587		59.2	%
65% to 75%		9,243		426		383		10,052		25.0			10,404		25.1
76% to 80%		1,848		251		156		2,255		5.6			2,301		5.6
Greater than 80%		3,070		922		525		4,517		11.3			4,183		10.1
Total	$	36,454	$	2,037	$	1,629	$	40,120		100.0	%	$	41,475		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 $13.4 billion and $12.9 billion at September 30, 2011 and December 31, 2010, respectively.

	Agricultural
	September 30, 2011					December 31, 2010
	Recorded Investment		% of Total			Recorded Investment		% of Total
	(In millions)					(In millions)
Loan-to-value ratios:
Less than 65%	$	11,818		91.1	%	$	11,483		90.1	%
65% to 75%		740		5.7			885		6.9
76% to 80%		19		0.2			48		0.4
Greater than 80%		390		3.0			335		2.6
Total	$	12,967		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 $3.5 billion and $2.3 billion at September 30, 2011 and December 31, 2010, respectively.

	Residential
	September 30, 2011					December 31, 2010
	Recorded Investment		% of Total			Recorded Investment		% of Total
	(In millions)					(In millions)
Performance indicators:
Performing	$	3,399		99.3	%	$	2,149		96.3	%
Nonperforming		25		0.7			82		3.7
Total	$	3,424		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 September 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; agricultural mortgage loans — 90 days or more; and residential mortgage loans — 60 days or more. 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
	September 30, 2011		December 31, 2010		September 30, 2011		December 31, 2010		September 30, 2011		December 31, 2010
	(In millions)
Commercial	$	155	$	58	$	115	$	1	$	60	$	7
Agricultural		141		159		7		13		165		177
Residential		33		79		8		11		23		25
Total	$	329	$	296	$	130	$	25	$	248	$	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, including those modified in a troubled debt restructuring, 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 (1)		Investment		Allowances		Value		Balance (1)		Investment		Balance (1)		Value
	(In millions)
September 30, 2011:
Commercial	$	211	$	211	$	70	$	141	$	240	$	228	$	451	$	369
Agricultural		150		150		46		104		84		81		234		185
Residential		7		7		1		6		14		14		21		20
Total	$	368	$	368	$	117	$	251	$	338	$	323	$	706	$	574
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

(1) Unpaid principal balance is generally prior to any charge-offs.

The average investment in impaired mortgage loans held-for-investment, including those modified in a troubled debt restructuring, 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 September 30, 2011:
Commercial	$	330	$	—	$	—
Agricultural		229		1		—
Residential		17		—		—
Total	$	576	$	1	$	—
For the Three Months Ended September 30, 2010:
Commercial	$	148	$	—	$	—
Agricultural		286		—		1
Residential		18		—		—
Total	$	452	$	—	$	1
For the Nine Months Ended September 30, 2011:
Commercial	$	308	$	1	$	—
Agricultural		258		3		1
Residential		26		—		—
Total	$	592	$	4	$	1
For the Nine Months Ended September 30, 2010:
Commercial	$	147	$	4	$	1
Agricultural		288		3		1
Residential		15		—		—
Total	$	450	$	7	$	2

Mortgage Loans Modified in a Troubled Debt Restructuring.  The Company has a high quality, well performing, mortgage loan portfolio. For a small portion of the portfolio, classified as troubled debt restructurings, the Company grants concessions related to the borrowers’ financial difficulties. Generally, the types of concessions include: reduction of the contractual interest rate, extension of the maturity date at an interest rate lower than current market interest rates and/or a reduction of accrued interest. The Company considers the amount, timing and extent of the concession granted in determining any impairment or changes in the specific valuation allowance recorded in connection with the troubled debt restructuring. Through the continuous portfolio monitoring process, the Company may have recorded a specific valuation allowance prior to the quarter when the mortgage loan is modified in a troubled debt restructuring. Accordingly, the carrying value (after specific valuation allowance) before and after modification through a troubled debt restructuring may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment. At September 30, 2011, the number of mortgage loans and carrying value after specific valuation allowance of mortgage loans modified during the period in a troubled debt restructuring were as follows:

	Mortgage Loans Modified in a Troubled Debt
	Restructuring
	September 30,2011
	Number of
	Mortgage		Carrying Value after Specific
	Loans		Valuation Allowance
			Pre-		Post-
			Modification		Modification
			(In millions)
Commercial		5	$	147	$	109
Agricultural		9		36		37
Residential		3		1		1
Total		17	$	184	$	147

During the previous twelve months, the Company had no mortgage loans modified in a troubled debt restructuring with a subsequent payment default at September 30, 2011. Payment default is determined in the same manner as delinquency status — when interest and principal payments are past due as follows: commercial mortgage loans — 60 days or more; agricultural mortgage loans — 90 days or more; and residential mortgage loans — 60 days or more.

Cash Equivalents

Cash equivalents, which include investments with an original or remaining maturity of three months or less at the time of purchase, were $5.4 billion and $9.6 billion at September 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
	September 30, 2011		December 31, 2010		September 30, 2011		December 31, 2010
	(In millions)
Outstanding principal and interest balance (1)	$	3,685	$	1,548	$	542	$	504
Carrying value (2)	$	2,536	$	1,050	$	225	$	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
	Nine Months				Nine Months
	Ended				Ended
	September 30,				September 30,
	2011		2010		2011		2010
	(In millions)
Contractually required payments (including interest)	$	3,528	$	1,544	$	—	$	—
Cash flows expected to be collected (1)	$	3,275	$	1,479	$	—	$	—
Fair value of investments acquired	$	1,816	$	889	$	—	$	—

(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						Nine Months						Three Months					Nine Months
	Ended						Ended						Ended					Ended
	September 30,						September 30,						September 30,					September 30,
	2011			2010			2011			2010			2011			2010		2011			2010
	(In millions)
Accretable yield, beginning of period	$	1,891		$	369		$	541		$	—		$	258		$	—	$	170		$	—
Investments purchased		238			202			1,459			590			—			—		—			—
Accretion recognized in net investment income		(23	)		(27	)		(72	)		(34	)		(6	)		—		(38	)		—
Disposals		—			—			(69	)		—			—			—		—			—
Reclassification (to) from nonaccretable difference		68			(41	)		315			(53	)		17			—		137			—
Accretable yield, end of period	$	2,174		$	503		$	2,174		$	503		$	269		$	—	$	269		$	—

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 September 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.

	September 30, 2011				December 31, 2010
	Total		Total		Total		Total
	Assets		Liabilities		Assets		Liabilities
	(In millions)
Consolidated securitization entities (1)	$	3,397	$	3,204	$	7,114	$	6,892
MRSC collateral financing arrangement (2)		3,317		—		3,333		—
Other limited partnership interests		343		7		319		85
Trading and other securities		181		—		186		—
Other invested assets		102		1		108		1
Real estate joint ventures		13		19		20		17
Total	$	7,353	$	3,231	$	11,080	$	6,995

(1) The Company consolidates 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 $170 million and $201 million at estimated fair value at September 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 six years. Interest expense related to these obligations, included in other expenses, was $97 million and $281 million for the three months and nine months ended September 30, 2011, respectively, and $103 million and $312 million for the three months and nine months ended September 30, 2010, respectively. The Company sold certain of these CMBS investments in the third quarter of 2011, resulting in the deconsolidation of such entities and their related mortgage loans held-for-investment and long-term debt. The assets and liabilities of these CSEs, at estimated fair value, were as follows at:

	September 30, 2011		December 31, 2010
	(In millions)
Assets:
Mortgage loans held-for-investment (commercial mortgage loans)	$	3,227	$	6,840
Trading and other securities		140		201
Accrued investment income		17		34
Cash and cash equivalents		13		39
Total assets	$	3,397	$	7,114
Liabilities:
Long-term debt	$	3,157	$	6,820
Other liabilities		47		72
Total liabilities	$	3,204	$	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:

	September 30, 2011		December 31, 2010
	(In millions)
Fixed maturity securities available-for-sale:
ABS	$	1,391	$	1,333
U.S. corporate securities		787		893
RMBS		522		547
CMBS		399		383
Foreign corporate securities		126		139
State and political subdivision securities		40		30
Foreign government securities		—		5
Mortgage loans		50		—
Cash and cash equivalents		2		3
Total	$	3,317	$	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:

	September 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)	$	41,893	$	41,893	$	44,733	$	44,733
CMBS (2)		19,585		19,585		20,675		20,675
ABS (2)		14,418		14,418		14,287		14,287
U.S. corporate securities		2,978		2,978		2,435		2,435
Foreign corporate securities		2,252		2,252		2,950		2,950
Other limited partnership interests		4,419		6,166		4,383		6,479
Trading and other securities		737		737		789		789
Other invested assets		624		1,206		576		773
Mortgage loans		513		513		350		350
Real estate joint ventures		65		83		40		108
Total	$	87,484	$	89,831	$	91,218	$	93,579

(1)

The maximum exposure to loss relating to the fixed maturity 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 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 $281 million and $231 million at September 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 9, 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 nine months ended September 30, 2011.