Investments (Tables)

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Fixed Maturity Available-for-Sale and Equity Securities

The following table presents the fixed maturity securities AFS by sector. U.S. corporate and foreign corporate sectors include redeemable preferred stock. Residential mortgage-backed securities (“RMBS”) includes agency, prime, alternative and sub-prime mortgage-backed securities. Asset-backed securities (“ABS”) includes securities collateralized by corporate loans and consumer loans. Municipals includes taxable and tax-exempt revenue bonds and, to a much lesser extent, general obligations of states, municipalities and political subdivisions. Commercial mortgage-backed securities (“CMBS”) primarily includes securities collateralized by multiple commercial mortgage loans. RMBS, ABS and CMBS are collectively, “Structured Products.” In accordance with new guidance adopted January 1, 2020 regarding expected credit loss, securities that incurred a credit loss after December 31, 2019 and were still held as of March 31, 2020, are presented net of ACL. In accordance with previous guidance, both the temporary loss and OTTI loss are presented for securities that were in an unrealized loss position as of December 31, 2019.

	March 31, 2020											December 31, 2019
	Amortized Cost		ACL			Gross Unrealized				Estimated Fair Value		Amortized Cost		Gross Unrealized							Estimated Fair Value
						Gains		Losses						Gains		Temporary Losses		OTTI Losses (1)
	(In millions)
U.S. corporate	$	80,287	$	(51	)	$	7,151	$	2,316	$	85,071	$	79,115	$	8,943	$	305	$	—		$	87,753
Foreign government	57,737		(136		)	7,816		573		64,844		58,840		8,710		321		—			67,229
Foreign corporate	58,679		—			3,281		2,765		59,195		59,342		5,540		717		—			64,165
U.S. government and agency	38,181		—			9,787		9		47,959		37,586		4,604		106		—			42,084
RMBS	29,242		—			1,636		409		30,469		27,051		1,535		72		(33		)	28,547
ABS	15,870		—			48		1,080		14,838		14,547		83		88		—			14,542
Municipals	11,877		—			2,054		60		13,871		11,081		2,001		29		—			13,053
CMBS	10,751		—			232		545		10,438		10,093		396		42		—			10,447
Total fixed maturity securities AFS	$	302,624	$	(187	)	$	32,005	$	7,757	$	326,685	$	297,655	$	31,812	$	1,680	$	(33	)	$	327,820

__________________

(1)

Noncredit OTTI losses included in AOCI in an unrealized gain position are due to increases in estimated fair value subsequent to initial recognition of noncredit loss on such securities. See also “— Net Unrealized Investment Gains (Losses).”

Equity securities are summarized as follows at:

	March 31, 2020				December 31, 2019
	Estimated Fair Value		% of Total		Estimated Fair Value		% of Total
	(Dollars in millions)
Common stock	$	682	65.0	%	$	944	70.3	%
Non-redeemable preferred stock	368		35.0		398		29.7
Total equity securities	$	1,050	100.0	%	$	1,342	100.0	%

Available-for-sale fixed maturity securities by contractual maturity date

The amortized cost, net of ACL and estimated fair value of fixed maturity securities AFS, by contractual maturity date, were as follows at March 31, 2020:

	Due in One Year or Less		Due After One Year Through Five Years		Due After Five Years Through Ten Years		Due After Ten Years		Structured Products		Total Fixed Maturity Securities AFS
	(In millions)
Amortized cost, net of ACL	$	16,862	$	47,867	$	57,679	$	124,166	$	55,863	$	302,437
Estimated fair value	$	17,061	$	48,490	$	60,624	$	144,765	$	55,745	$	326,685

Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity Securities Available-for-Sale

The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities AFS in an unrealized loss position by sector and aggregated by length of time that the securities have been in a continuous unrealized loss position. Included in the table below are securities without an ACL as of March 31, 2020, in accordance with new guidance adopted January 1, 2020. Also included in the table below are all securities in an unrealized loss position as of December 31, 2019, in accordance with previous guidance.

	March 31, 2020								December 31, 2019
	Less than 12 Months				Equal to or Greater than 12 Months				Less than 12 Months				Equal to or Greater than 12 Months
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(Dollars in millions)
U.S. corporate	$	22,055	$	2,136	$	655	$	174	$	3,817	$	107	$	2,226	$	198
Foreign government	5,813		335		1,347		194		3,295		149		1,490		172
Foreign corporate	21,922		2,401		2,103		364		3,188		133		5,873		584
U.S. government and agency	1,103		8		37		—		5,391		97		196		9
RMBS	5,617		390		227		20		2,341		25		584		14
ABS	9,866		757		2,995		323		3,692		22		4,843		66
Municipals	1,351		60		1		—		1,156		29		1		—
CMBS	4,693		485		384		60		1,926		16		487		26
Total fixed maturity securities AFS	$	72,420	$	6,572	$	7,749	$	1,135	$	24,806	$	578	$	15,700	$	1,069
Investment grade	$	63,072	$	5,080	$	6,970	$	919	$	22,838	$	437	$	13,813	$	821
Below investment grade	9,348		1,492		779		216		1,968		141		1,887		248
Total fixed maturity securities AFS	$	72,420	$	6,572	$	7,749	$	1,135	$	24,806	$	578	$	15,700	$	1,069
Total number of securities in an unrealized loss position	6,667				947				2,153				1,411

Debt Securities, Available-for-sale, Allowance for Credit Loss [Table Text Block]

The rollforward of ACL for fixed maturity securities AFS by sector is as follows:

	U.S. Corporate			Foreign Government			Total
	(In millions)
Three Months Ended March 31, 2020
Balance, beginning of period	$	—		$	—		$	—
Additions:
Securities for which credit loss was not previously recorded	(51		)	(136		)	(187		)
Balance, end of period	$	(51	)	$	(136	)	$	(187	)

Disclosure of Mortgage Loans Net of Valuation Allowance

Mortgage loans are summarized as follows at:

	March 31, 2020					December 31, 2019
	Carrying Value			% of Total		Carrying Value			% of Total
	(Dollars in millions)
Mortgage loans:
Commercial	$	50,077		61.6	%	$	49,624		61.6	%
Agricultural	16,788			20.6		16,695			20.7
Residential	14,763			18.2		14,316			17.8
Total amortized cost	81,628			100.4		80,635			100.1
Allowance for credit loss	(464		)	(0.6	)	(353		)	(0.4	)
Subtotal mortgage loans, net	81,164			99.8		80,282			99.7
Residential — FVO	180			0.2		188			0.2
Total mortgage loans held-for-investment, net	$	81,344		100.0	%	$	80,470		99.9	%
Mortgage loans held-for-sale	—			—		59			0.1
Total mortgage loans, net	$	81,344		100.0	%	$	80,529		100.0	%

Allowance for Loan and Lease Losses, Provision for Loss, Net

The changes in the ACL, by portfolio segment, were as follows:

	Three Months Ended March 31,
	2020												2019
	Commercial			Agricultural			Residential			Total			Commercial		Agricultural		Residential			Total
	(In millions)
Balance, beginning of period	$	246		$	52		$	55		$	353		$	238	$	46	$	58		$	342
Adoption of new credit loss guidance	(118		)	35			161			78			—		—		—			—
Provision (release)	15			(3		)	24			36			7		1		2			10
Charge-offs, net of recoveries	—			—			(3		)	(3		)	—		—		(2		)	(2		)
Balance, end of period	$	143		$	84		$	237		$	464		$	245	$	47	$	58		$	350

Schedule of Past Due and Non Accrual Mortgage Loans

The past due and nonaccrual mortgage loans at amortized cost, prior to ACL, by portfolio segment, were as follows at:

	Past Due				Greater than 90 Days Past Due  and Still Accruing Interest				Nonaccrual
	March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019
	(In millions)
Commercial	$	6	$	10	$	—	$	9	$	182	$	176
Agricultural	271		129		121		7		166		137
Residential	407		452		16		35		391		418
Total	$	684	$	591	$	137	$	51	$	739	$	731

Disclosure Real Estate and Real Estate Joint Ventures

Real estate investments, by income type, as well as income earned, are as follows at and for the periods indicated:

	March 31, 2020		December 31, 2019		Three Months Ended March 31,
					2020		2019
	Carrying Value				Income
	(In millions)
Leased real estate investments	$	5,129	$	4,893	$	106	$	92
Other real estate investments	419		420		35		34
Real estate joint ventures	5,702		5,428		24		4
Total real estate and real estate joint ventures	$	11,250	$	10,741	$	165	$	130

Components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss)

The components of net unrealized investment gains (losses), included in AOCI, were as follows:

	March 31, 2020			December 31, 2019
	(In millions)
Fixed maturity securities AFS	$	24,197		$	30,050
Fixed maturity securities AFS with noncredit OTTI losses included in AOCI	—			33
Total fixed maturity securities AFS	24,197			30,083
Derivatives	6,336			2,209
Other	524			310
Subtotal	31,057			32,602
Amounts allocated from:
Future policy benefits	546			(1,019		)
DAC, VOBA and DSI	(2,759		)	(2,716		)
Policyholder dividend obligation	(1,677		)	(2,020		)
Subtotal	(3,890		)	(5,755		)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	—			(4		)
Deferred income tax benefit (expense)	(6,781		)	(6,846		)
Net unrealized investment gains (losses)	20,386			19,997
Net unrealized investment gains (losses) attributable to noncontrolling interests	(17		)	(16		)
Net unrealized investment gains (losses) attributable to MetLife, Inc.	$	20,369		$	19,981

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

	Three Months Ended March 31, 2020
	(In millions)
Balance, beginning of period	$	19,981
Fixed maturity securities AFS on which noncredit OTTI losses have been recognized	(33		)
Unrealized investment gains (losses) during the period	(1,512		)
Unrealized investment gains (losses) relating to:
Future policy benefits	1,565
DAC, VOBA and DSI	(43		)
Policyholder dividend obligation	343
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	4
Deferred income tax benefit (expense)	65
Net unrealized investment gains (losses)	20,370
Net unrealized investment gains (losses) attributable to noncontrolling interests	(1		)
Balance, end of period	$	20,369
Change in net unrealized investment gains (losses)	$	389
Change in net unrealized investment gains (losses) attributable to noncontrolling interests	(1		)
Change in net unrealized investment gains (losses) attributable to MetLife, Inc.	$	388

Securities Lending and Repurchase Agreements

A summary of the remaining contractual maturities of securities lending, repurchase agreements and FHLB of Boston short-term advance agreements is as follows:

	March 31, 2020										December 31, 2019
	Remaining Maturities										Remaining Maturities
	Open (1)		1 Month or Less		Over  1 to 6 Months		Over 6 Months to 1 Year		Total		Open (1)		1 Month or Less		Over 1 to 6 Months		Over 6 Months to 1 Year		Total
	(In millions)
Cash collateral liability by loaned security type:
Securities lending:
U.S. government and agency	$	3,965	$	8,116	$	6,525	$	—	$	18,606	$	2,928	$	6,676	$	6,663	$	—	$	16,267
Foreign government	—		268		762		—		1,030		—		259		767		—		1,026
Agency RMBS	—		73		—		—		73		—		76		—		—		76
U.S. corporate	9		—		—		—		9		—		—		—		—		—
Total	$	3,974	$	8,457	$	7,287	$	—	$	19,718	$	2,928	$	7,011	$	7,430	$	—	$	17,369
Repurchase agreements:
U.S. government and agency	$	—	$	2,700	$	—	$	—	$	2,700	$	—	$	2,310	$	—	$	—	$	2,310
Cash collateral liability by pledged security type: (2)
FHLB of Boston:
Municipals	$	—	$	250	$	550	$	—	$	800	$	—	$	250	$	475	$	75	$	800

__________________

(1) The related loaned security could be returned to the Company on the next business day, which would require the Company to immediately return the cash collateral.

(2) The Company is permitted to withdraw any portion of the pledged collateral over the minimum collateral requirement at any time, other than in the event of a default by the Company.

	March 31, 2020						December 31, 2019
	Securities (1)						Securities (1)
	Estimated Fair Value		Cash Collateral Received from Counterparties (2), (3)		Reinvestment Portfolio at Estimated Fair Value		Estimated Fair Value		Cash Collateral Received from Counterparties (2), (3)		Reinvestment Portfolio at Estimated Fair Value
	(In millions)
Securities lending	$	19,170	$	19,718	$	19,541	$	16,926	$	17,369	$	17,451
Repurchase agreements	$	2,746	$	2,700	$	2,676	$	2,333	$	2,310	$	2,320
FHLB of Boston advance agreements	$	1,132	$	800	$	807	$	1,083	$	800	$	843

__________________

(1) Securities on loan or securities pledged in connection with these programs are included within fixed maturity securities AFS, short-term investments and cash equivalents.

(2) In connection with securities lending, in addition to cash collateral received, the Company received from counterparties security collateral of $21 million and $0 at March 31, 2020 and December 31, 2019, respectively, which may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the consolidated financial statements.

(3)

The liability for cash collateral for these programs is included within payables for collateral under securities loaned, other transactions and other liabilities.

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 all asset classes, except mortgage loans, which are presented at carrying value, at:

	March 31, 2020		December 31, 2019
	(In millions)
Invested assets on deposit (regulatory deposits)	$	1,669	$	2,034
Invested assets held in trust (collateral financing arrangement and reinsurance agreements)	3,007		2,991
Invested assets pledged as collateral (1)	27,687		24,493
Total invested assets on deposit, held in trust and pledged as collateral	$	32,363	$	29,518

__________________

(1)

The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements, secured debt, a collateral financing arrangement (see Notes 4, 13 and 14 of the Notes to the Consolidated Financial Statements included in the 2019 Annual Report) and derivative transactions (see Note 7).

Components of Net Investment Income

The components of net investment income were as follows:

	Three Months Ended March 31,
	2020			2019
	(In millions)
Investment income:
Fixed maturity securities AFS	$	2,875		$	2,939
Equity securities	14			17
FVO Securities (1)	(78		)	55
Mortgage loans	884			912
Policy loans	126			128
Real estate and real estate joint ventures	165			130
Other limited partnership interests	320			123
Cash, cash equivalents and short-term investments	92			128
Operating joint ventures	25			18
Other	102			78
Subtotal	4,525			4,528
Less: Investment expenses	324			356
Subtotal, net	4,201			4,172
Unit-linked investments (1)	(1,140		)	736
Net investment income	$	3,061		$	4,908

__________________

(1)

Changes in estimated fair value subsequent to purchase for investments still held as of the end of the respective periods and included in net investment income were principally from contractholder-directed equity securities supporting unit-linked variable annuity type liabilities (“Unit-linked investments”), and were ($1.1) billion and $648 million for the three months ended March 31, 2020 and 2019, respectively.

Components of Net Investment Gains (Losses)

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

	Three Months Ended March 31,
	2020			2019
	(In millions)
Total gains (losses) on fixed maturity securities AFS:
Net credit loss (provision) release (1)	$	(215	)	$	(10	)
Net gains (losses) on sales and disposals	219			(14		)
Total gains (losses) on fixed maturity securities AFS	4			(24		)
Total gains (losses) on equity securities:
Net gains (losses) on sales and disposals	8			43
Change in estimated fair value (2)	(292		)	64
Total gains (losses) on equity securities	(284		)	107
Mortgage loans	(63		)	(15		)
Real estate and real estate joint ventures	1			5
Other limited partnership interests	4			—
Other (3)	25			(68		)
Subtotal	(313		)	5
Change in estimated fair value of other limited partnership interests and real estate joint ventures	1			(15		)
Non-investment portfolio gains (losses)	24			25
Subtotal	25			10
Total net investment gains (losses)	$	(288	)	$	15

__________________

(1) Net credit loss provision by sector for the three months ended March 31, 2019 were $8 million Industrial and $2 million RMBS. See “— Rollforward of Allowance for Credit Loss for Fixed Maturity Securities AFS By Sector.” Due to the adoption of new guidance on January 1, 2020, prior period OTTI loss is presented as credit loss.

(2) Changes in estimated fair value subsequent to purchase for equity securities still held as of the end of the period included in net investment gains (losses) were ($288) million and $97 million for the three months ended March 31, 2020 and 2019, respectively.

(3)

Other gains (losses) included tax credit partnership impairment losses of ($78) million and a renewable energy partnership disposal gain of $46 million for the three months ended March 31, 2019.

Proceeds From Sales Or Disposals Of Fixed Maturity and the Components Of Fixed Maturity Securities Net Investment Gains And Losses

Sales of securities are determined on a specific identification basis. Proceeds from sales or disposals and the components of net investment gains (losses) were as shown in the table below:

	Three Months Ended March 31,
	2020			2019
	(In millions)
Proceeds	$	12,089		$	15,825
Gross investment gains	$	337		$	205
Gross investment losses	(118		)	(219		)
Net credit loss (provision) release	(215		)	(10		)
Net investment gains (losses)	$	4		$	(24	)

Commercial Mortgage Loans

Accounts, Notes, Loans and Financing Receivable [Line Items]

Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories

The amortized cost of commercial mortgage loans by credit quality indicator and vintage year was as follows at March 31, 2020:

	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total		% of Total
	(Dollars in millions)
Loan-to-value ratios:
Less than 65%	$	1,276	$	6,618	$	7,108	$	5,291	$	5,431	$	12,384	$	2,886	$	40,994	81.8	%
65% to 75%	446		2,455		1,631		959		884		1,218		—		7,593		15.2
76% to 80%	—		—		19		336		131		369		—		855		1.7
Greater than 80%	—		—		—		401		58		176		—		635		1.3
Total	$	1,722	$	9,073	$	8,758	$	6,987	$	6,504	$	14,147	$	2,886	$	50,077	100.0	%
Debt service coverage ratios:
> 1.20x	$	1,619	$	8,668	$	8,357	$	6,535	$	6,144	$	13,235	$	2,886	$	47,444	94.8	%
1.00x - 1.20x	—		—		95		80		321		817		—		1,313		2.6
<1.00x	103		405		306		372		39		95		—		1,320		2.6
Total	$	1,722	$	9,073	$	8,758	$	6,987	$	6,504	$	14,147	$	2,886	$	50,077	100.0	%

Residential Mortgage Loans

Accounts, Notes, Loans and Financing Receivable [Line Items]

Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories

The amortized cost of residential mortgage loans by credit quality indicator and vintage year was as follows at March 31, 2020:

	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total		% of Total
	(Dollars in millions)
Performance indicators:
Performing	$	249	$	3,084	$	1,479	$	510	$	268	$	8,766	$	—	$	14,356	97.2	%
Nonperforming (1)	—		9		9		5		7		377		—		407		2.8
Total	$	249	$	3,093	$	1,488	$	515	$	275	$	9,143	$	—	$	14,763	100.0	%

__________________

(1)

Includes residential mortgage loans in process of foreclosure of $119 million and $118 million at March 31, 2020 and December 31, 2019, respectively.

Agricultural Mortgage Loans

Accounts, Notes, Loans and Financing Receivable [Line Items]

Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories

The amortized cost of agricultural mortgage loans by credit quality indicator and vintage year was as follows at March 31, 2020:

	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total		% of Total
	(Dollars in millions)
Loan-to-value ratios:
Less than 65%	$	522	$	2,419	$	3,131	$	1,118	$	2,898	$	5,068	$	853	$	16,009	95.4	%
65% to 75%	39		192		113		95		27		241		11		718		4.3
76% to 80%	—		—		11		—		—		6		2		19		0.1
Greater than 80%	—		—		—		—		—		42		—		42		0.2
Total	$	561	$	2,611	$	3,255	$	1,213	$	2,925	$	5,357	$	866	$	16,788	100.0	%

Variable Interest Entity, Primary Beneficiary [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of Variable Interest Entities

The following table presents the total assets and total liabilities relating to investment-related VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at:

	March 31, 2020				December 31, 2019
	Total Assets (1)		Total Liabilities		Total Assets (1)		Total Liabilities
	(In millions)
Investment funds	$	215	$	1	$	207	$	1
Renewable energy partnership	95		—		94		—
Other investments	10		5		10		5
Total	$	320	$	6	$	311	$	6

__________________

(1)

Assets of the investment funds, renewable energy partnership and other investments primarily consisted of other invested assets.

Variable Interest Entity, Not Primary Beneficiary

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of Variable Interest Entities

The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at:

	March 31, 2020				December 31, 2019
	Carrying Amount		Maximum Exposure to Loss (1)		Carrying Amount		Maximum Exposure to Loss (1)
	(In millions)
Fixed maturity securities AFS:
Structured Products (2)	$	53,654	$	53,654	$	51,962	$	51,962
U.S. and foreign corporate	1,780		1,780		1,764		1,764
Foreign government	124		124		136		136
Other limited partnership interests	7,164		12,841		6,674		12,016
Other invested assets	1,458		1,567		1,495		1,621
Other investments	453		500		450		497
Total	$	64,633	$	70,466	$	62,481	$	67,996

__________________

(1) The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests is equal to the carrying amounts plus any unfunded commitments. 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 creditworthy third parties. 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 $7 million and $6 million at March 31, 2020 and December 31, 2019, respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee.

(2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity.