Equity

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Equity

10. Equity

Preferred Stock

Preferred stock authorized, issued and outstanding was as follows:

	September 30, 2021		December 31, 2020
Series	Shares Authorized	Shares Issued and Outstanding	Shares Authorized	Shares Issued and Outstanding
Floating Rate Non-Cumulative Preferred Stock, Series A	27,600,000	24,000,000	27,600,000	24,000,000
5.25% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C (1)	—	—	1,500,000	500,000
5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D	500,000	500,000	500,000	500,000
5.625% Non-Cumulative Preferred Stock, Series E	32,200	32,200	32,200	32,200
4.75% Non-Cumulative Preferred Stock, Series F	40,000	40,000	40,000	40,000
3.85% Fixed Rate Reset Non-Cumulative Preferred Stock, Series G	1,000,000	1,000,000	1,000,000	1,000,000
Series A Junior Participating Preferred Stock	10,000,000	—	10,000,000	—
Not designated	160,827,800	—	159,327,800	—
Total	200,000,000	25,572,200	200,000,000	26,072,200

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(1)On May 17, 2021, the outstanding 500,000 shares of MetLife, Inc.’s 5.25% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C (the “Series C preferred stock”) were irrevocably called for redemption, and on June 15, 2021, MetLife, Inc. redeemed and canceled the shares.

In May 2021, MetLife, Inc. delivered a notice of redemption to the holders of the Series C preferred stock pursuant to which it would redeem the remaining 500,000 shares of Series C preferred stock at a redemption price of $1,000 per share. In connection with the redemption, MetLife, Inc. recognized a preferred stock redemption premium of $6 million (calculated as the difference between the carrying value of the Series C preferred stock and the total amount paid by MetLife, Inc. to the holders of the Series C preferred stock in connection with the redemption), which was recorded as a reduction of retained earnings at June 30,2021. All outstanding shares of Series C preferred stock were redeemed on the dividend payment date of June 15, 2021 for an aggregate redemption price of $500 million in cash.

In June 2021, MetLife, Inc. filed a Certificate of Elimination (the “Certificate of Elimination”) of Series C preferred stock with the Secretary of State of the State of Delaware to eliminate all references to the Series C preferred stock in MetLife, Inc.’s Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”), including the related Certificate of Designations. As a result of the filing of the Certificate of Elimination, MetLife, Inc.’s Certificate of Incorporation was amended to eliminate all references therein to the Series C preferred stock, and the shares that were designated to such series were returned to the status of authorized but unissued shares of preferred stock, par value $0.01 per share, of MetLife, Inc., without designation as to series. The Certificate of Elimination does not affect the total number of authorized shares of capital stock of MetLife, Inc. or the total number of authorized shares of preferred stock.

The per share and aggregate dividends declared for MetLife, Inc.’s preferred stock were as follows:

	Three Month Ended September 30,								Nine Months Ended September 30,
	2021				2020				2021				2020
Series	Per Share		Aggregate		Per Share		Aggregate		Per Share		Aggregate		Per Share		Aggregate
	(In million, except per share data)
A	$	0.256	$	6	$	0.256	$	6	$	0.762	$	18	$	0.762	$	18
C	$	—	—		$	9.940	15		$	19.085	10		$	36.190	54
D	$	29.375	14		$	29.375	15		$	58.750	29		$	58.750	30
E	$	351.563	11		$	351.563	11		$	1,054.689	34		$	1,054.689	34
F	$	296.875	12		$	296.875	12		$	890.625	36		$	791.667	32
G	$	19.250	20		$	—	—		$	39.035	39		$	—	—
Total			$	63			$	59			$	166			$	168

Common Stock

MetLife, Inc. announced that its Board of Directors authorized common stock repurchases as follows:

			Authorization Remaining at
Announcement Date	Authorization Amount		September 30, 2021
	(In millions)
August 4, 2021	$	3,000	$	2,708
December 11, 2020	$	3,000	$	—
July 31, 2019	$	2,000	$	—

Under these authorizations, MetLife, Inc. may purchase its common stock from the MetLife Policyholder Trust, in the open market (including pursuant to the terms of a pre-set trading plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934 (“Exchange Act”)), and in privately negotiated transactions. Common stock repurchases are subject to the discretion of MetLife, Inc.’s Board of Directors and will depend upon the Company’s capital position, liquidity, financial strength and credit ratings, general market conditions, the market price of MetLife, Inc.’s common stock compared to management’s assessment of the stock’s underlying value, applicable regulatory approvals, and other legal and accounting factors.

For the nine months ended September 30, 2021 and 2020, MetLife, Inc. repurchased 52,857,261 shares and 12,806,464 shares of its common stock, respectively, through open market purchases for $3.1 billion and $580 million, respectively.

Stock-Based Compensation Plans

Performance Shares and Performance Units

Final Performance Shares are paid in shares of MetLife, Inc. common stock. Final Performance Units are payable in cash equal to the closing price of MetLife, Inc. common stock on a date following the last day of the three-year performance period. The performance factor for the January 1, 2018 – December 31, 2020 performance period was 110.8%, which was determined within a possible range from 0% to 175%. This factor has been applied to the 1,266,651 Performance Shares and 170,214 Performance Units associated with that performance period that vested on December 31, 2020. As a result, in the first quarter of 2021, MetLife, Inc. issued 1,403,449 shares of its common stock (less withholding for taxes and other items, as applicable), excluding shares that payees choose to defer, and MetLife, Inc. or its affiliates paid the cash value of 188,597 Performance Units (less withholding for taxes and other items, as applicable).

Dividend Restrictions

Insurance Operations

For the nine months ended September 30, 2021, American Life Insurance Company paid a dividend of $600 million to MetLife, Inc., for which regulatory approval was obtained as required.

Additionally, for the nine months ended September 30, 2021, Metropolitan Property and Casualty Insurance Company paid a non-cash dividend of $35 million consisting of the stock of a subsidiary to MetLife, Inc., for which regulatory approval was obtained as required. See Note 3 on the disposition of MetLife P&C.

See Note 16 of the Notes to Consolidated Financial Statements included in the 2020 Annual Report for additional information on dividend restrictions.

Accumulated Other Comprehensive Income (Loss)

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

	Three Months Ended September 30, 2021
	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, beginning of period	$	17,535	$	1,073	$	(4,463)	$	(1,836)	$	12,309
Other comprehensive income (loss) before reclassifications	(633)		442		(421)		5		(607)
Deferred income tax benefit (expense)	208		(102)		(4)		(1)		101
AOCI before reclassifications, net of income tax	17,110		1,413		(4,888)		(1,832)		11,803
Amounts reclassified from AOCI	(91)		236		—		30		175
Deferred income tax benefit (expense)	22		(54)		—		(3)		(35)
Amounts reclassified from AOCI, net of income tax	(69)		182		—		27		140
Sale of subsidiary, net of income tax (2)	22		—		146		—		168
Balance, end of period	$	17,063	$	1,595	$	(4,742)	$	(1,805)	$	12,111
	Three Months Ended September 30, 2020
	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, beginning of period	$	21,759	$	4,154	$	(5,382)	$	(1,968)	$	18,563
Other comprehensive income (loss) before reclassifications	(2,212)		(846)		507		(3)		(2,554)
Deferred income tax benefit (expense)	190		207		(4)		1		394
AOCI before reclassifications, net of income tax	19,737		3,515		(4,879)		(1,970)		16,403
Amounts reclassified from AOCI	(64)		(457)		—		21		(500)
Deferred income tax benefit (expense)	41		97		—		(5)		133
Amounts reclassified from AOCI, net of income tax	(23)		(360)		—		16		(367)
Balance, end of period	$	19,714	$	3,155	$	(4,879)	$	(1,954)	$	16,036

	Nine Months Ended September 30, 2021
	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, beginning of period	$	22,217	$	1,513	$	(3,795)	$	(1,863)	$	18,072
Other comprehensive income (loss) before reclassifications	(6,512)		(172)		(1,168)		9		(7,843)
Deferred income tax benefit (expense)	1,584		39		(40)		(2)		1,581
AOCI before reclassifications, net of income tax	17,289		1,380		(5,003)		(1,856)		11,810
Amounts reclassified from AOCI	(76)		279		—		61		264
Deferred income tax benefit (expense)	18		(64)		—		(10)		(56)
Amounts reclassified from AOCI, net of income tax	(58)		215		—		51		208
Sale of subsidiaries, net of income tax (3)	(168)		—		261		—		93
Balance, end of period	$	17,063	$	1,595	$	(4,742)	$	(1,805)	$	12,111
	Nine Months Ended September 30, 2020
	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, beginning of period	$	18,283	$	1,698	$	(4,927)	$	(2,002)	$	13,052
Other comprehensive income (loss) before reclassifications	2,674		2,202		76		(3)		4,949
Deferred income tax benefit (expense)	(785)		(461)		(28)		1		(1,273)
AOCI before reclassifications, net of income tax	20,172		3,439		(4,879)		(2,004)		16,728
Amounts reclassified from AOCI	(297)		(359)		—		64		(592)
Deferred income tax benefit (expense)	87		75		—		(14)		148
Amounts reclassified from AOCI, net of income tax	(210)		(284)		—		50		(444)
Sale of subsidiary, net of income tax	(248)		—		—		—		(248)
Balance, end of period	$	19,714	$	3,155	$	(4,879)	$	(1,954)	$	16,036

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(1)See Note 6 for information on offsets to investments related to policyholder liabilities, DAC, VOBA and DSI.

(2)See Note 3 for information on the sale of MetLife Seguros.

(3)See Note 3 for information on the Company’s business dispositions.

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

	Three Months  Ended  September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
AOCI Components	Amounts Reclassified from AOCI								Consolidated Statements of Operations and Comprehensive Income (Loss) Locations
	(In millions)
Net unrealized investment gains (losses):
Net unrealized investment gains (losses)	$	97	$	65	$	42	$	320	Net investment gains (losses)
Net unrealized investment gains (losses)	(4)		(8)		(13)		(18)		Net investment income
Net unrealized investment gains (losses)	(2)		7		47		(5)		Net derivative gains (losses)
Net unrealized investment gains (losses), before income tax	91		64		76		297
Income tax (expense) benefit	(22)		(41)		(18)		(87)
Net unrealized investment gains (losses), net of income tax	69		23		58		210
Unrealized gains (losses) on derivatives - cash flow hedges:
Interest rate derivatives	14		9		41		24		Net investment income
Interest rate derivatives	6		10		54		58		Net investment gains (losses)
Interest rate derivatives	1		1		2		2		Other expenses
Foreign currency exchange rate derivatives	2		2		6		3		Net investment income
Foreign currency exchange rate derivatives	(259)		435		(383)		271		Net investment gains (losses)
Foreign currency exchange rate derivatives	—		—		1		1		Other expenses
Gains (losses) on cash flow hedges, before income tax	(236)		457		(279)		359
Income tax (expense) benefit	54		(97)		64		(75)
Gains (losses) on cash flow hedges, net of income tax	(182)		360		(215)		284
Defined benefit plans adjustment: (1)
Amortization of net actuarial gains (losses)	(34)		(26)		(87)		(78)
Amortization of prior service (costs) credit	4		5		26		14
Amortization of defined benefit plan items, before income tax	(30)		(21)		(61)		(64)
Income tax (expense) benefit	3		5		10		14
Amortization of defined benefit plan items, net of income tax	(27)		(16)		(51)		(50)
Total reclassifications, net of income tax	$	(140)	$	367	$	(208)	$	444

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(1)These AOCI components are included in the computation of net periodic benefit costs. See Note 12.