Disposition

9 Months Ended

Sep. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

3. Dispositions

Disposition of MetLife Seguros S.A.

In September 2021, the Company sold its wholly-owned Argentinian subsidiary, MetLife Seguros S.A. (“MetLife Seguros”). In connection with the sale, a loss of $205 million, net of income tax, was recorded for the three months and nine months ended September 30, 2021, which is reflected in net investment gains (losses). See Note 10 for the changes in AOCI related to the sale. At December 31, 2020, MetLife Seguros represented $201 million of total assets in the Latin America segment. MetLife Seguros results of operations are reported in the Latin America segment adjusted earnings through the date of sale.

Pending Disposition of MetLife Poland and Greece

In July 2021, the Company entered into definitive agreements to sell its wholly-owned subsidiaries in Poland and Greece (collectively, “MetLife Poland and Greece”) to NN Group N.V. for $738 million in total consideration, including a pre-closing dividend of $43 million. In connection with the pending sale, an expected loss of $202 million, net of income tax, was recorded for the nine months ended September 30, 2021, which is reflected in net investment gains (losses). MetLife Poland and Greece results of operations are reported in the EMEA segment adjusted earnings through June 30, 2021. See Note 2 for information on accounting for divested business. The transaction is expected to close in the first half of 2022 and is subject to regulatory approvals and satisfaction of other customary closing conditions.

The pending disposition meets the criteria for held-for-sale accounting but does not meet the criteria to be classified as discontinued operations. As a result, the related assets and liabilities are included in the separate held-for-sale line items of the asset and liability sections of the interim condensed consolidated balance sheet.

The following table summarizes the assets and liabilities held-for-sale:


	September 30, 2021
	(In millions)
Assets:
Fixed maturity securities available-for-sale	$	2,143
Contractholder-directed equity securities	1,098
Other investments	136
Total investments	3,377
Cash and cash equivalents	103
Deferred policy acquisition costs and value of business acquired	139
Other	275
Separate accounts assets	3,568
Total assets held-for-sale	$	7,462

Liabilities:
Future policy benefits	$	940
Policyholder account balances	2,013
Other policy-related balances	103
Other	133
Separate account liabilities	3,568
Total liabilities held-for-sale	$	6,757

MetLife Poland and Greece income (loss) before provision for income tax as reflected in the interim condensed consolidated statements of operations was $12 million and $40 million for the three months and nine months ended September 30, 2021, respectively, and ($5) million and $29 million for the three months and nine months ended September 30, 2020, respectively.

Disposition of Metropolitan Property and Casualty Insurance Company

In December 2020, the Company entered into a definitive agreement to sell its wholly-owned subsidiary, Metropolitan Property and Casualty Insurance Company and certain of its wholly-owned subsidiaries (collectively, “MetLife P&C”) to Farmers Group, Inc. for $3.9 billion in cash. In addition, the Company and the Farmers Exchanges agreed to establish a 10-year strategic partnership through which the Farmers Insurance Group will offer its personal line products on MetLife’s U.S. Group Benefits platform which commenced when the transaction closed. MetLife P&C results of operations are reported in the U.S. segment adjusted earnings through December 31, 2020. See Note 2 for more information on divested businesses. In April 2021, the Company completed the sale of MetLife P&C. As a result of the sale, the Company recognized a gain of $1.4 billion ($1.1 billion, net of income tax) in net investment gains (losses) for the nine months ended September 30, 2021.

The disposition met the criteria for held-for-sale accounting but did not meet the criteria to be classified as discontinued operations. As a result, the related assets and liabilities were included in the separate held-for-sale line items of the asset and liability sections of the interim condensed consolidated balance sheets at December 31, 2020.

The following table summarizes the assets and liabilities held-for-sale:


	December 31, 2020
	(In millions)
Assets:
Fixed maturity securities available-for-sale	$	4,096
Equity securities	57
Mortgage loans	355
Other invested assets	29
Total investments	4,537
Cash and cash equivalents	765
Accrued investment income	38
Premiums, reinsurance and other receivables	1,411
Deferred policy acquisition costs	196
Goodwill	328
Other assets	143
Total assets held-for-sale	$	7,418

Liabilities:
Future policy benefits	$	3,506
Other policy-related balances	33
Payables for collateral under securities loaned and other transactions	862
Other liabilities	249
Total liabilities held-for-sale	$	4,650

MetLife P&C income (loss) before provision for income tax as reflected in the interim condensed consolidated statements of operations was $121 million for the nine months ended September 30, 2021, and $20 million and $254 million for the three months and nine months ended September 30, 2020, respectively.

Disposition of Joint-stock Company MetLife Insurance Company

In January 2021, the Company completed the sale of its wholly-owned Russian subsidiary, the Joint-stock Company MetLife Insurance Company. See Note 3 of the Notes to the Consolidated Financial Statements included in the 2020 Annual Report for further information.