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Equity (Tables)

12 Months Ended

Dec. 31, 2018

Preferred stock authorized, issued and outstanding was as follows:



	December 31, 2018			December 31, 2017
Series	Shares Authorized	Shares Issued	Shares Outstanding	Shares Authorized	Shares Issued	Shares Outstanding
Series A preferred stock	27,600,000	24,000,000	24,000,000	27,600,000	24,000,000	24,000,000
Series C preferred stock	1,500,000	1,500,000	1,500,000	1,500,000	1,500,000	1,500,000
Series D preferred stock	500,000	500,000	500,000	—	—	—
Series E preferred stock	32,200	32,200	32,200	—	—	—
Series A Junior Participating Preferred Stock	10,000,000	—	—	10,000,000	—	—
Not designated	160,367,800	—	—	160,900,000	—	—
Total	200,000,000	26,032,200	26,032,200	200,000,000	25,500,000	25,500,000

Schedule of Dividends Paid, Preferred Stock

The declaration, record and payment dates, as well as per share and aggregate dividend amounts, for MetLife, Inc.’s preferred stock were as follows for the years ended December 31, 2018, 2017 and 2016:



			Preferred Stock Dividend
			Series A				Series C				Series D				Series E
Declaration Date	Record Date	Payment Date	Per Share		Aggregate		Per Share		Aggregate		Per Share		Aggregate		Per Share		Aggregate
			(In millions, except per share data)
Year Ended December 31, 2018
November 15, 2018	November 30, 2018	December 17, 2018	$	0.253	$	6	$	26.250	$	40	$	—	$	—	$	351.563	$	11
August 15, 2018	August 31, 2018	September 17, 2018	0.256		6		—		—		28.233		14		394.531		12
May 15, 2018	May 31, 2018	June 15, 2018	0.256		7		26.250		39		—		—		—		—
March 5, 2018	February 28, 2018	March 15, 2018	0.250		6		—		—		—		—		—		—
Total			$	1.015	$	25	$	52.500	$	79	$	28.233	$	14	$	746.094	$	23
Year Ended December 31, 2017
November 15, 2017	November 30, 2017	December 15, 2017	$	0.253	$	6	$	26.250	$	39	$	—	$	—	$	—	$	—
August 15, 2017	August 31, 2017	September 15, 2017	0.256		6		—		—		—		—		—		—
May 15, 2017	May 31, 2017	June 15, 2017	0.256		7		26.250		39		—		—		—		—
March 6, 2017	February 28, 2017	March 15, 2017	0.250		6		—		—		—		—		—		—
Total			$	1.015	$	25	$	52.500	$	78	$	—	$	—	$	—	$	—
Year Ended December 31, 2016
November 15, 2016	November 30, 2016	December 15, 2016	$	0.253	$	6	$	26.250	$	39	$	—	$	—	$	—	$	—
August 15, 2016	August 31, 2016	September 15, 2016	0.256		6		—		—		—		—		—		—
May 16, 2016	May 31, 2016	June 15, 2016	0.256		7		26.250		39		—		—		—		—
March 7, 2016	February 29, 2016	March 15, 2016	0.253		6		—		—		—		—		—		—
Total			$	1.018	$	25	$	52.500	$	78	$	—	$	—	$	—	$	—

Schedule of Dividends Paid, Common Stock

The declaration, record and payment dates, as well as per share and aggregate dividend amounts, for MetLife, Inc.’s common stock were as follows for the years ended December 31, 2018, 2017 and 2016:



			Dividend
Declaration Date	Record Date	Payment Date	Per Share		Aggregate
			(In millions, except per share data)
Year Ended December 31, 2018
October 23, 2018	November 6, 2018	December 13, 2018	$	0.420	$	415
July 6, 2018	August 6, 2018	September 13, 2018	0.420		419
April 24, 2018	May 7, 2018	June 13, 2018	0.420		428
January 5, 2018	February 5, 2018	March 13, 2018	0.400		416
Total			$	1.660	$	1,678
Year Ended December 31, 2017
October 24, 2017	November 6, 2017	December 13, 2017	$	0.400	$	422
July 7, 2017	August 7, 2017	September 13, 2017	0.400		427
April 25, 2017	May 8, 2017	June 13, 2017	0.400		431
January 6, 2017	February 6, 2017	March 13, 2017	0.400		437
Total			$	1.600	$	1,717
Year Ended December 31, 2016
October 25, 2016	November 7, 2016	December 13, 2016	$	0.400	$	441
July 7, 2016	August 8, 2016	September 13, 2016	0.400		441
April 26, 2016	May 9, 2016	June 13, 2016	0.400		441
January 6, 2016	February 5, 2016	March 14, 2016	0.375		413
Total			$	1.575	$	1,736

Components of compensation expense related to stock based compensation

The components of compensation expense related to stock-based compensation includes compensation expense related to Phantom Stock-Based Awards, and excludes the insignificant compensation expense related to the 2015 Director Stock Plan. Those components were:



	Years Ended December 31,
	2018		2017		2016
	(In millions)
Stock Options and Unit Options	$	6	$	8	$	9
Performance Shares and Performance Units (1)	23		62		75
Restricted Stock Units and Restricted Units	57		58		63
Total compensation expense	$	86	$	128	$	147
Income tax benefit	$	18	$	45	$	51

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(1)	The Company may further adjust the number of Performance Shares it expects to vest, and the related compensation expense, if management changes its estimate of the most likely final performance factor.

Total unrecognized compensation expense related to stock based compensation and the expected weighted average period over which the expenses will be recognized

The following table presents the total unrecognized compensation expense related to stock-based compensation and the expected weighted average period over which these expenses will be recognized at:



	December 31, 2018
	Expense		Weighted Average Period
	(In millions)		(Years)
Stock Options	$	3	1.12
Performance Shares	$	21	1.72
Restricted Stock Units	$	32	1.27

Activity related to Stock Options

A summary of the activity related to Stock Options was as follows:



	Shares Under Option		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value (1)
					(Years)	(In millions)
Outstanding at January 1, 2018	16,009,754		$	38.77	3.54	$	198
Granted	523,946		$	45.50
Exercised	(1,611,987	)	$	33.68
Expired (2)	(2,488,045	)	$	53.63
Forfeited (3)	(78,374	)	$	41.90
Outstanding at December 31, 2018	12,355,294		$	36.70	3.56	$	66
Vested and expected to vest at December 31, 2018	12,343,714		$	36.70	3.55	$	66
Exercisable at December 31, 2018	11,116,386		$	35.96	3.02	$	64

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(1)	The intrinsic value of each Stock Option is the closing price on a particular date less the exercise price of the Stock Option, so long as the difference is greater than zero. The aggregate intrinsic value of all outstanding Stock Options is computed using the closing Share price on December 31, 2018 of $41.06 and December 31, 2017 of $50.56, as applicable.


(2)	Expired options were exercisable, but unexercised, as of their expiration date.


(3)	Forfeited awards were either (a) unvested or unexercisable at the end of the awardholder’s employment, where the awardholder did not meet the criteria for post-employment award continuation; or (b) held by awardholders the Company terminated from employment for cause as defined in the terms of the awards.

The following table presents a summary of Stock Option exercise activity:



	Years Ended December 31,
	2018		2017		2016
	(In millions)
Total intrinsic value of stock options exercised	$	24	$	59	$	42
Cash received from exercise of stock options	$	54	$	116	$	84
Income tax benefit realized from stock options exercised	$	5	$	20	$	15

Weighted average assumptions used to determine the fair value of Stock Options issued



	Years Ended December 31,
	2018	2017	2016
Dividend yield	3.52%	3.05%	3.90%
Risk-free rate of return	2.02% - 3.40%	0.94% - 3.22%	0.62% - 2.85%
Expected volatility	34.18%	34.19%	33.58%
Exercise multiple	1.43	1.43	1.43
Post-vesting termination rate	3.77%	2.94%	2.58%
Contractual term (years)	10	10	10
Expected life (years)	6	6	7
Weighted average exercise price of stock options granted	$45.50	$46.85	$34.33
Weighted average fair value of stock options granted	$11.87	$12.36	$8.27

Performance Share and Restricted Stock Unit Activity

The following table presents a summary of Performance Share and Restricted Stock Unit activity:



	Performance Shares				Restricted Stock Units
	Shares		Weighted Average Fair Value (1)		Units		Weighted Average Fair Value (1)
Outstanding at January 1, 2018	4,033,760		$	46.02	3,304,377		$	37.17
Granted	1,405,903		$	34.31	1,446,289		$	40.00
Forfeited (2)	(201,146	)	$	40.88	(201,914	)	$	38.79
Payable (3)	(1,194,283	)	$	46.34	(1,602,483	)	$	37.04
Outstanding at December 31, 2018	4,044,234		$	34.18	2,946,269		$	38.52
Vested and expected to vest at December 31, 2018	3,984,022		$	34.18	2,903,433		$	38.49

__________________


(1)	Values for awards outstanding at January 1, 2018, represent weighted average number of awards multiplied by the fair value per Share at December 31, 2017. Otherwise, all values represent weighted average of number of awards multiplied by the fair value per Share at December 31, 2018. Fair value of Restricted Stock Units on December 31, 2018 was equal to Grant Date fair value.


(2)	Forfeited awards were either (a) unvested or unexercisable at the end of the awardholder’s employment, where the awardholder did not meet the criteria for post-employment award continuation; or (b) held by awardholders the Company terminated from employment for cause as defined in the terms of the awards.


(3)	Includes both Shares paid and Deferred Shares for later payment.

Liability Award Unit Activity

The following table presents a summary of Liability Awards activity:



	Unit Options		Performance Units		Restricted Units
Outstanding at January 1, 2018	681,012		688,229		779,076
Granted	37,904		235,076		392,549
Exercised	(54,361	)	—		—
Expired (1)	(118,107	)	—		—
Forfeited (2)	—		(142,621	)	(140,321	)
Paid	—		(186,085	)	(362,202	)
Outstanding at December 31, 2018	546,448		594,599		669,102
Vested and expected to vest at December 31, 2018	539,165		577,005		651,263

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(1)	Expired options were exercisable, but unexercised, as of their expiration date.


(2)	Forfeited awards were either (a) unvested or unexercisable at the end of the awardholder’s employment, where the awardholder did not meet the criteria for post-employment award continuation; or (b) held by awardholders the Company terminated from employment for cause as defined in the terms of the awards.

Schedules of statutory net income, capital and surplus and reserve strengthening by subsidiary

Statutory net income (loss) was as follows:



		Years Ended December 31,
Company	State of Domicile	2018		2017		2016
		(In millions)
Metropolitan Life Insurance Company (1)	New York	$	3,656	$	1,982	$	3,444
American Life Insurance Company	Delaware	$	2,086	$	3,077	$	341
Brighthouse Life Insurance Company (2)	Delaware	N/A		N/A		$	1,186
Metropolitan Property and Casualty Insurance Company	Rhode Island	$	345	$	197	$	171
Metropolitan Tower Life Insurance Company (3)	Nebraska	$	76	$	164	$	8
New England Life Insurance Company (2)	Massachusetts	N/A		N/A		$	109
Other (4)	Various	$	16	$	11	$	(70	)

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(1)	In December 2016, MLIC transferred all of the issued and outstanding shares of the common stock of each of New England Life Insurance Company (“NELICO”) and General American Life Insurance Company (“GALIC”) to MetLife, Inc., in the form of a non-cash extraordinary dividend.


(2)	In April 2017, in connection with the Separation, MetLife, Inc. contributed all of the issued and outstanding shares of common stock of each of Brighthouse Insurance and NELICO to Brighthouse Holdings, LLC. As a result of the Separation, Brighthouse Insurance and NELICO ceased to be subsidiaries of MetLife, Inc.

(3)

In April 2018, Metropolitan Tower Life Insurance Company (“MTL”) merged with GALIC (“MTL Merger”). The surviving entity of the merger was MTL, which re-domesticated from Delaware to Nebraska immediately prior to the merger. For the year ended December 31, 2016, MTL’s statutory net income (loss) is as filed with the Delaware Department of Insurance and accordingly, does not include GALIC’s statutory net income (loss) of ($2) million.

(4)

In April 2017, in connection with the Separation, MetLife, Inc. contributed all of the issued and outstanding shares of Brighthouse Life Insurance Company of NY (“Brighthouse NY”) to Brighthouse Holdings, LLC. As a result of the Separation, Brighthouse NY ceased to be a subsidiary of MetLife, Inc. For the year ended December 31, 2016, statutory net income (loss) of Brighthouse NY was ($87) million.

Statutory capital and surplus was as follows at:



	December 31,
Company	2018		2017
	(In millions)
Metropolitan Life Insurance Company	$	11,098	$	10,384
American Life Insurance Company	$	4,921	$	6,548
Metropolitan Property and Casualty Insurance Company	$	2,322	$	2,266
Metropolitan Tower Life Insurance Company (1)	$	1,549	$	1,751
Other	$	106	$	100

__________________


(1)	See discussion of MTL Merger above.

Dividend Payment Restrictions

The table below sets forth the dividends permitted to be paid by MetLife, Inc.’s primary insurance subsidiaries without insurance regulatory approval and the actual dividends paid:



	2019		2018		2017
Company	Permitted Without Approval (1)		Paid (2)		Paid (2)
	(In millions)
Metropolitan Life Insurance Company	$	3,096	$	3,736	$	2,523
American Life Insurance Company	$	—	$	3,200	$	2,200
Metropolitan Property and Casualty Insurance Company	$	171	$	233	$	185
Metropolitan Tower Life Insurance Company (3)	$	154	$	191	$	—
General American Life Insurance Company (3)	N/A		$	—	$	1

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(1)	Reflects dividend amounts that may be paid by the end of 2019 without prior regulatory approval.


(2)	Reflects all amounts paid, including those where regulatory approval was obtained as required.


(3)	See discussion of MTL Merger above.

Components of Accumulated Other Comprehensive Income (Loss)

Information regarding changes in the balances of each component of AOCI attributable to MetLife, Inc., was as follows:



	Unrealized Investment Gains (Losses), Net of Related Offsets (1)			Unrealized Gains (Losses) on Derivatives			Foreign Currency Translation Adjustments			Defined Benefit Plans Adjustment			Total
	(In millions)
Balance at December 31, 2015	$	10,311		$	1,458		$	(4,950	)	$	(2,052	)	$	4,767
OCI before reclassifications	800			344			(476		)	(62		)	606
Deferred income tax benefit (expense)	(338		)	(100		)	114			24			(300		)
AOCI before reclassifications, net of income tax	10,773			1,702			(5,312		)	(2,090		)	5,073
Amounts reclassified from AOCI	21			229			—			193			443
Deferred income tax benefit (expense)	(9		)	(66		)	—			(75		)	(150		)
Amounts reclassified from AOCI, net of income tax	12			163			—			118			293
Balance at December 31, 2016	10,785			1,865			(5,312		)	(1,972		)	5,366
OCI before reclassifications	5,392			(140		)	765			(23		)	5,994
Deferred income tax benefit (expense)	(1,732		)	47			125			8			(1,552		)
AOCI before reclassifications, net of income tax	14,445			1,772			(4,422		)	(1,987		)	9,808
Amounts reclassified from AOCI	(289		)	(1,025		)	—			167			(1,147		)
Deferred income tax benefit (expense)	87			356			—			(43		)	400
Amounts reclassified from AOCI, net of income tax	(202		)	(669		)	—			124			(747		)
Disposal of subsidiary (3)	(2,286		)	(305		)	51			28			(2,512		)
Deferred income tax benefit (expense)	800			107			(19		)	(10		)	878
Disposal of subsidiary, net of income tax	(1,486		)	(198		)	32			18			(1,634		)
Balance at December 31, 2017	12,757			905			(4,390		)	(1,845		)	7,427
OCI before reclassifications	(8,735		)	157			(679		)	143			(9,114		)
Deferred income tax benefit (expense)	1,961			(41		)	36			(35		)	1,921
AOCI before reclassifications, net of income tax	5,983			1,021			(5,033		)	(1,737		)	234
Amounts reclassified from AOCI	14			517			—			120			651
Deferred income tax benefit (expense)	(3		)	(135		)	—			(29		)	(167		)
Amounts reclassified from AOCI, net of income tax	11			382			—			91			484
Cumulative effects of changes in accounting principles	(425		)	—			—			—			(425		)
Deferred income tax benefit (expense), cumulative effects of changes in accounting principles	1,473			210			36			(382		)	1,337
Cumulative effects of changes in accounting principles, net of income tax (2)	1,048			210			36			(382		)	912
Sale of subsidiary (3)	—			—			92			—			92
Balance at December 31, 2018	$	7,042		$	1,613		$	(4,905	)	$	(2,028	)	$	1,722

__________________


(1)	See Note 8 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation.


(2)	See Note 1 for further information on adoption of new accounting pronouncements.


(3)	See Note 3.

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Information regarding amounts reclassified out of each component of AOCI was as follows:



AOCI Components	Amounts Reclassified from AOCI									Consolidated Statements of Operations Locations
	Years Ended December 31,
	2018			2017			2016
	(In millions)
Net unrealized investment gains (losses):
Net unrealized investment gains (losses)	$	6		$	404		$	78		Net investment gains (losses)
Net unrealized investment gains (losses)	(1		)	20			39			Net investment income
Net unrealized investment gains (losses)	(19		)	(49		)	(37		)	Net derivative gains (losses)
Net unrealized investment gains (losses)	—			(86		)	(101		)	Discontinued operations
Net unrealized investment gains (losses), before income tax	(14		)	289			(21		)
Income tax (expense) benefit	3			(87		)	9
Net unrealized investment gains (losses), net of income tax	(11		)	202			(12		)
Unrealized gains (losses) on derivatives - cash flow hedges:
Interest rate swaps	23			24			56			Net derivative gains (losses)
Interest rate swaps	18			16			12			Net investment income
Interest rate swaps	—			2			36			Discontinued operations
Interest rate forwards	(2		)	(11		)	(1		)	Net derivative gains (losses)
Interest rate forwards	2			2			4			Net investment income
Interest rate forwards	1			1			1			Other expenses
Interest rate forwards	—			3			4			Discontinued operations
Foreign currency swaps	(558		)	974			(350		)	Net derivative gains (losses)
Foreign currency swaps	(5		)	—			(2		)	Net investment income
Foreign currency swaps	2			2			2			Other expenses
Foreign currency swaps	—			11			5			Discontinued operations
Credit forwards	1			1			3			Net derivative gains (losses)
Credit forwards	1			—			1			Net investment income
Gains (losses) on cash flow hedges, before income tax	(517		)	1,025			(229		)
Income tax (expense) benefit	135			(356		)	66
Gains (losses) on cash flow hedges, net of income tax	(382		)	669			(163		)
Defined benefit plans adjustment: (1)
Amortization of net actuarial gains (losses)	(145		)	(190		)	(199		)
Amortization of prior service (costs) credit	25			23			6
Amortization of defined benefit plan items, before income tax	(120		)	(167		)	(193		)
Income tax (expense) benefit	29			43			75
Amortization of defined benefit plan items, net of income tax	(91		)	(124		)	(118		)
Total reclassifications, net of income tax	$	(484	)	$	747		$	(293	)

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(1)	These AOCI components are included in the computation of net periodic benefit costs. See Note 17.