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Condensed Financial Information (Parent Company)
 12 Months Ended
Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract]  
Condensed Financial Information (Parent Company)
MetLife, Inc.
Schedule II
Condensed Financial Information
(Parent Company Only)
December 31, 2020 and 2019
(In millions, except share and per share data)
20202019
Condensed Balance Sheets
Assets
Investments:
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $3,400 and $3,062, respectively)
$3,443 $3,073 
Short-term investments, principally at estimated fair value
156 2 
Other invested assets, at estimated fair value
187 120 
Total investments
3,786 3,195 
Cash and cash equivalents
441 377 
Accrued investment income
11 12 
Investment in subsidiaries
88,684 79,571 
Loans to subsidiaries
— 100 
Other assets
966 747 
Total assets
$93,888 $84,002 
Liabilities and Stockholders’ Equity
Liabilities
Payables for collateral under derivatives transactions
$65 $16 
Long-term debt — unaffiliated
13,463 12,379 
Long-term debt — affiliated
2,073 1,976 
Junior subordinated debt securities
2,461 2,458 
Other liabilities
1,268 1,029 
Total liabilities
19,330 17,858 
Stockholders’ Equity
Preferred stock, par value $0.01 per share; $4,405 and $3,405, respectively, aggregate liquidation preference
— — 
Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,181,614,288 and 1,177,680,299 shares issued, respectively; 892,910,600 and 915,338,098 shares outstanding, respectively
12 12 
Additional paid-in capital
33,812 32,680 
Retained earnings
36,491 33,078 
Treasury stock, at cost; 288,703,688 and 262,342,201 shares, respectively
(13,829)(12,678)
Accumulated other comprehensive income (loss)
18,072 13,052 
Total stockholders’ equity
74,558 66,144 
Total liabilities and stockholders’ equity
$93,888 $84,002 
See accompanying notes to the condensed financial information.
MetLife, Inc.
Schedule II
Condensed Financial Information — (continued)
(Parent Company Only)
For the Years Ended December 31, 2020, 2019 and 2018
(In millions)
202020192018
Condensed Statements of Operations
Revenues
Net investment income
$50 $77 $87 
Other revenues
29 27 19 
Net investment gains (losses)
(154)(40)(277)
Net derivative gains (losses)
(61)(45)(56)
Total revenues
(136)19 (227)
Expenses
Interest expense
833 850 1,009 
Other expenses
154 153 158 
Total expenses
987 1,003 1,167 
Income (loss) before provision for income tax and equity in earnings of subsidiaries(1,123)(984)(1,394)
Provision for income tax (expense) benefit267 582 51 
Equity in earnings of subsidiaries6,263 6,301 6,466 
Net income (loss)
5,407 5,899 5,123 
Less: Preferred stock dividends
202 178 141 
Preferred stock redemption premium$14 $— $— 
Net income (loss) available to common shareholders
$5,191 $5,721 $4,982 
Comprehensive income (loss)
$10,427 $17,208 $(1,494)
See accompanying notes to the condensed financial information.
MetLife, Inc.
Schedule II
Condensed Financial Information — (continued)
(Parent Company Only)
For the Years Ended December 31, 2020, 2019 and 2018
(In millions)
202020192018
Condensed Statements of Cash Flows
Cash flows from operating activities
Net income (loss)
$5,407 $5,899 $5,123 
Earnings of subsidiaries
(6,263)(6,301)(6,466)
Dividends from subsidiaries
3,970 4,790 7,367 
(Gains) losses on investments and from sales of businesses, net
154 40 277 
Other, net
211 (251)(807)
Net cash provided by (used in) operating activities
3,479 4,177 5,494 
Cash flows from investing activities
Sales and maturities of fixed maturity securities available-for-sale3,693 3,153 9,635 
Purchases of fixed maturity securities available-for-sale
(3,858)(3,380)(8,178)
Cash received in connection with freestanding derivatives
71 101 227 
Cash paid in connection with freestanding derivatives
(100)(392)(237)
Purchases of businesses(1,875)— — 
Expense paid on behalf of subsidiaries
(15)(13)(14)
Receipts on loans to subsidiaries
100 — — 
Returns of capital from subsidiaries
16 10 87 
Capital contributions to subsidiaries
(422)(75)(767)
Net change in short-term investments
4 14 14 
Other, net
(2)28 (3)
Net cash provided by (used in) investing activities
(2,388)(554)764 
Cash flows from financing activities
Net change in payables for collateral under derivative transactions
49 7 (27)
Long-term debt issued
1,246 1,382 — 
Long-term debt repaid
(251)(877)(1,759)
Treasury stock acquired in connection with share repurchases
(1,151)(2,285)(3,992)
Preferred stock issued, net of issuance costs
1,961 — 1,274 
Redemption of preferred stock(989)— — 
Preferred stock redemption premium(14)— — 
Dividends on preferred stock
(202)(178)(141)
Dividends on common stock
(1,657)(1,643)(1,678)
Other, net
(19)(28)(75)
Net cash provided by (used in) financing activities
(1,027)(3,622)(6,398)
Change in cash and cash equivalents
64 1 (140)
Cash and cash equivalents, beginning of year
377 376 516 
Cash and cash equivalents, end of year
$441 $377 $376 
MetLife, Inc.
Schedule II
Condensed Financial Information — (continued)
(Parent Company Only)
For the Years Ended December 31, 2020, 2019 and 2018
(In millions)
202020192018
Supplemental disclosures of cash flow information
Net cash paid (received) for:
Interest
$815 $864 $1,040 
Income tax:
Amounts paid to (received from) subsidiaries, net
$(392)$(152)$(33)
Amounts paid to Brighthouse in accordance with the tax separation agreement
— — 909 
Income tax paid (received) by MetLife, Inc., net
96 (3)1 
Total income tax, net
$(296)$(155)$877 
Non-cash transactions:
Dividends from subsidiary
$341 $— $— 
Returns of capital from subsidiaries
$13 $29 $3,844 
Capital contributions to subsidiaries
$1 $30 $3,844 
Brighthouse common stock exchange transaction (Note 3):
Reduction of long-term debt
$— $— $944 
Reduction of fair value option securities
$— $— $1,030 
MetLife, Inc.
Schedule II
Notes to the Condensed Financial Information
(Parent Company Only)
1. Basis of Presentation
The condensed financial information of MetLife, Inc. (parent company only) should be read in conjunction with the consolidated financial statements of MetLife, Inc. and its subsidiaries and the notes thereto (the “Consolidated Financial Statements”). These condensed unconsolidated financial statements reflect the results of operations, financial position and cash flows for MetLife, Inc. Investments in subsidiaries are accounted for using the equity method of accounting.
The preparation of these condensed unconsolidated financial statements in conformity with GAAP requires management to adopt accounting policies and make certain estimates and assumptions. The most important of these estimates and assumptions relate to the fair value measurements, the accounting for goodwill and identifiable intangible assets and the provision for potential losses that may arise from litigation and regulatory proceedings and tax audits, which may affect the amounts reported in the condensed unconsolidated financial statements and accompanying notes. Actual results could differ from these estimates.
2. Investment in SubsidiariesIn December 2020, MetLife, Inc. paid $1.8 billion in cash in connection with the acquisition of Versant Health. See Note 3 of the Notes to the Consolidated Financial Statements.. Loans to Subsidiaries
MetLife, Inc. lends funds as necessary, through credit agreements or otherwise to its subsidiaries, some of which are regulated, to meet their capital requirements or to provide liquidity. Payments of interest and principal on surplus notes of regulated subsidiaries, which are subordinate to all other obligations of the issuing company, may be made only with the prior approval of the insurance department of the state of domicile.
Interest income earned on loans to subsidiaries of $2 million, $3 million and $3 million for the years ended December 31, 2020, 2019 and 2018, respectively, is included in net investment income.
. Long-term Debt
Long-term debt outstanding was as follows:
Interest Rates (1)
December 31,
Range
Weighted
Average
Maturity
20202019
(Dollars in millions)
Senior notes — unaffiliated (2)0.50%-6.50%4.28%2022-2046$13,463 $12,379 
Senior notes — affiliated1.60%-3.14%2.31%2021-20292,073 1,976 
Total
$15,536 $14,355 
__________________
(1)Range of interest rates and weighted average interest rates are for the year ended December 31, 2020.
(2)Net of $85 million and $81 million of unamortized issuance costs and net premiums and discounts at December 31, 2020 and 2019, respectively.
See Note 13 of the Notes to the Consolidated Financial Statements.
The aggregate maturities of long-term debt at December 31, 2020 for the next five years and thereafter are $1.0 billion in 2021, $500 million in 2022, $1.4 billion in 2023, $1.5 billion in 2024, $1.2 billion in 2025 and $9.9 billion thereafter.
Senior Notes – Affiliated
In June 2020, MetLife, Inc. issued a new $250 million senior unsecured floating rate note to MetLife Insurance K.K. The senior unsecured floating rate note matures in June 2025 and bears interest at a variable rate of three-month LIBOR plus 1.82%, payable quarterly.
In May 2018, $500 million in senior notes previously issued by MetLife, Inc. to MLIC and other subsidiaries were redenominated to new ¥54.6 billion senior notes. The ¥54.6 billion senior notes mature in December 2021 and bear interest at a rate per annum of 3.14%, payable semi-annually.
In April 2018, $500 million in senior notes previously issued by MetLife, Inc. to MLIC and other subsidiaries were redenominated to new ¥53.7 billion senior notes. The ¥53.7 billion senior notes mature in July 2021 and bear interest at a rate per annum of 2.97%, payable semi-annually.
In March 2018, three senior notes previously issued by MetLife, Inc. to MLIC were redenominated to Japanese yen, two of which have been refinanced upon maturity.
•A $500 million senior note was redenominated to a new ¥53.3 billion senior note. The ¥53.3 billion senior note bore interest at a rate per annum of 1.45%, payable semi-annually. In July 2019, this note matured and was refinanced with a ¥37.3 billion 1.602% senior note due July 2023 and a ¥16.0 billion 1.637% senior note due July 2026, both issued to MLIC and payable semi-annually.
•A $250 million senior note was redenominated to a new ¥26.5 billion senior note. The ¥26.5 billion senior note bore interest at a rate per annum of 1.72% payable semi-annually. In October 2019, this note matured and was refinanced with a ¥26.5 billion 1.81% senior note due October 2029 issued to MLIC, payable semi-annually.
•A $250 million senior note was also redenominated to a new ¥26.5 billion senior note. The ¥26.5 billion senior note bore interest at a rate per annum of 0.82%, payable semi-annually. In September 2020, MetLife, Inc. repaid this note in cash at maturity.
Interest Expense
Interest expense was comprised of the following:
Years Ended December 31,
202020192018
(In millions)
Long-term debt — unaffiliated
$570 $591 $755 
Long-term debt — affiliated
52 48 45 
Collateral financing arrangements
6 6 6 
Junior subordinated debt securities
205 205 203 
Total
$833 $850 $1,009 
See Notes 14 and 15 of the Notes to the Consolidated Financial Statements for information about the collateral financing arrangement and junior subordinated debt securities.
. Support Agreements
MetLife, Inc. is party to various capital support commitments and guarantees with certain of its subsidiaries. Under these arrangements, MetLife, Inc. has agreed to cause each such entity to meet specified capital and surplus levels or has guaranteed certain contractual obligations.
MetLife, Inc. guarantees the obligations of its subsidiary, Missouri Reinsurance, Inc. (“MoRe”), under a retrocession agreement with RGA Reinsurance (Barbados) Inc., pursuant to which MoRe retrocedes a portion of the closed block liabilities associated with industrial life and ordinary life insurance policies that it assumed from MLIC.
MetLife, Inc. guarantees the obligations of MetLife Reinsurance Company of Bermuda, Ltd. (“MrB”), a Bermuda insurance affiliate and an indirect, wholly-owned subsidiary of MetLife, Inc. under a reinsurance agreement with Mitsui Sumitomo Primary Life Insurance Co., Ltd. (“Mitsui”), a former affiliate that is now an unaffiliated third party, under which MrB reinsures certain variable annuity business written by Mitsui.
MetLife, Inc. guarantees the obligations of MrB in an aggregate amount up to $1.0 billion, under a reinsurance agreement with MetLife Europe d.a.c., in respect of MrB’s reinsurance of the guaranteed living benefits and guaranteed death benefits associated with certain unit-linked variable annuity type liability contracts issued by MetLife Europe d.a.c.
MetLife, Inc., in connection with MRV’s reinsurance of certain universal life and term life insurance risks, committed to the Vermont Department of Banking, Insurance, Securities and Health Care Administration to take necessary action to cause the two protected cells of MRV to maintain total adjusted capital in an amount that is equal to or greater than 200% of each such protected cell’s authorized control level RBC, as defined in Vermont state insurance statutes.
MetLife, Inc., in connection with the collateral financing arrangement associated with MRC’s reinsurance of a portion of the liabilities associated with the closed block, committed to the South Carolina Department of Insurance to make capital contributions, if necessary, to MRC so that MRC may at all times maintain its total adjusted capital in an amount that is equal to or greater than 200% of the Company Action Level RBC, as defined in South Carolina state insurance statutes as in effect on the date of determination or December 31, 2007, whichever calculation produces the greater capital requirement, or as otherwise required by the South Carolina Department of Insurance. See Note 14 of the Notes to the Consolidated Financial Statements.
MetLife, Inc. guarantees obligations arising from OTC-bilateral derivatives of MrB. MrB is exposed to various risks relating to their ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. MrB uses a variety of strategies to manage these risks, including the use of derivatives. Further, MrB’s derivatives are subject to industry standard netting agreements and collateral agreements that limit the unsecured portion of any open derivative position. On a net counterparty basis at December 31, 2020 and 2019, derivative transactions with positive mark-to-market values (in-the-money) were $366 million and $360 million, respectively, and derivative transactions with negative mark-to-market values (out-of-the-money) were $158 million and $197 million, respectively. To secure the obligations represented by the out-of-the-money transactions, MrB had provided collateral to its counterparties with an estimated fair value of $158 million and $196 million at December 31, 2020 and 2019, respectively. Accordingly, unsecured derivative liabilities guaranteed by MetLife, Inc. were $0 and $1 million at December 31, 2020 and 2019, respectively.
MetLife, Inc. also guarantees the obligations of certain of its subsidiaries under committed facilities with third-party banks. See Note 13 of the Notes to the Consolidated Financial Statements.