XML 63 R33.htm IDEA: XBRL DOCUMENT v3.22.0.1
Condensed Financial Information (Parent Company)
 12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
Condensed Financial Information (Parent Company)
MetLife, Inc.
Schedule II
Condensed Financial Information
(Parent Company Only)
December 31, 2021 and 2020
(In millions, except share and per share data)
20212020
Condensed Balance Sheets
Assets
Investments:
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $2,742 and $3,400, respectively)
$2,745 $3,443 
Short-term investments, principally at estimated fair value
— 156 
Other invested assets, at estimated fair value
314 187 
Total investments
3,059 3,786 
Cash and cash equivalents
1,961 441 
Accrued investment income
4 11 
Investment in subsidiaries
80,165 88,684 
Loans to subsidiaries
35 — 
Other assets
798 966 
Total assets
$86,022 $93,888 
Liabilities and Stockholders’ Equity
Liabilities
Payables for collateral under derivatives transactions
$153 $65 
Long-term debt — unaffiliated
12,814 13,463 
Long-term debt — affiliated
1,884 2,073 
Junior subordinated debt securities
2,463 2,461 
Other liabilities
1,226 1,268 
Total liabilities
18,540 19,330 
Stockholders’ Equity
Preferred stock, par value $0.01 per share; $3,905 and $4,405, respectively, aggregate liquidation preference
— — 
Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,186,540,473 and 1,181,614,288 shares issued, respectively; 825,540,267 and 892,910,600 shares outstanding, respectively
12 12 
Additional paid-in capital
33,511 33,812 
Retained earnings
41,197 36,491 
Treasury stock, at cost; 361,000,206 and 288,703,688 shares, respectively
(18,157)(13,829)
Accumulated other comprehensive income (loss)
10,919 18,072 
Total stockholders’ equity
67,482 74,558 
Total liabilities and stockholders’ equity
$86,022 $93,888 
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, 2021, 2020 and 2019
(In millions)
202120202019
Condensed Statements of Operations
Revenues
Net investment income
$25 $50 $77 
Other revenues
19 29 27 
Net investment gains (losses)
1,655 (154)(40)
Net derivative gains (losses)
116 (61)(45)
Total revenues
1,815 (136)19 
Expenses
Interest expense
847 833 850 
Other expenses
207 154 153 
Total expenses
1,054 987 1,003 
Income (loss) before provision for income tax and equity in earnings of subsidiaries761 (1,123)(984)
Provision for income tax (expense) benefit(202)267 582 
Equity in earnings of subsidiaries5,995 6,263 6,301 
Net income (loss)
6,554 5,407 5,899 
Less: Preferred stock dividends
195 202 178 
Preferred stock redemption premium$6 $14 $— 
Net income (loss) available to common shareholders
$6,353 $5,191 $5,721 
Comprehensive income (loss)
$(599)$10,427 $17,208 
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, 2021, 2020 and 2019
(In millions)
202120202019
Condensed Statements of Cash Flows
Cash flows from operating activities
Net income (loss)
$6,554 $5,407 $5,899 
Earnings of subsidiaries
(5,995)(6,263)(6,301)
Dividends from subsidiaries
4,830 3,970 4,790 
(Gains) losses on investments and from sales of businesses, net
(1,655)154 40 
Other, net
23 211 (251)
Net cash provided by (used in) operating activities
3,757 3,479 4,177 
Cash flows from investing activities
Sales and maturities of fixed maturity securities available-for-sale5,078 3,693 3,153 
Purchases of fixed maturity securities available-for-sale
(4,371)(3,858)(3,380)
Cash received in connection with freestanding derivatives
111 71 101 
Cash paid in connection with freestanding derivatives
(27)(100)(392)
Sales of businesses
3,902 — — 
Purchases of businesses— (1,875)— 
Expense paid on behalf of subsidiaries
(15)(15)(13)
Receipts on loans to subsidiaries
195 100 — 
Issuances of loans to subsidiaries
(230)— — 
Returns of capital from subsidiaries
13 16 10 
Capital contributions to subsidiaries
(88)(422)(75)
Net change in short-term investments
156 4 14 
Other, net
9 (2)28 
Net cash provided by (used in) investing activities
4,733 (2,388)(554)
Cash flows from financing activities
Net change in payables for collateral under derivative transactions
88 49 7 
Long-term debt issued
496 1,246 1,382 
Long-term debt repaid
(996)(251)(877)
Treasury stock acquired in connection with share repurchases
(4,303)(1,151)(2,285)
Preferred stock issued, net of issuance costs
— 1,961 — 
Redemption of preferred stock(494)(989)— 
Preferred stock redemption premium(6)(14)— 
Dividends on preferred stock
(195)(202)(178)
Dividends on common stock
(1,647)(1,657)(1,643)
Other, net
87 (19)(28)
Net cash provided by (used in) financing activities
(6,970)(1,027)(3,622)
Change in cash and cash equivalents
1,520 64 1 
Cash and cash equivalents, beginning of year
441 377 376 
Cash and cash equivalents, end of year
$1,961 $441 $377 
MetLife, Inc.
Schedule II
Condensed Financial Information — (continued)
(Parent Company Only)
For the Years Ended December 31, 2021, 2020 and 2019
(In millions)
202120202019
Supplemental disclosures of cash flow information
Net cash paid (received) for:
Interest
$853 $815 $864 
Income tax:
Amounts paid to (received from) subsidiaries, net
$(110)$(392)$(152)
Income tax paid (received) by MetLife, Inc., net
128 96 (3)
Total income tax, net
$18 $(296)$(155)
Non-cash transactions:
Dividends from subsidiary
$14 $341 $— 
Returns of capital from subsidiaries
$7 $13 $29 
Capital contributions to subsidiaries
$15 $1 $30 
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 Subsidiaries
In April 2021, MetLife, Inc. received $3.9 billion in cash in connection with the disposition of MetLife P&C.
In 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 for additional information.
3. 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.
In December 2021, Missouri Reinsurance, Inc. (“MoRe”), issued a $35 million promissory note to MetLife, Inc. The promissory note bears interest at a fixed rate of 2.12%, payable semi-annually, and matures in December 2024.
During 2021, under an existing credit facility, MetLife Services and Solutions, LLC issued $195 million in short-term notes to MetLife, Inc. which were repaid by August 2021. The short-term notes bore interest at six-month LIBOR plus 1.00%.
Interest income earned on loans to subsidiaries of $1 million, $2 million and $3 million for the years ended December 31, 2021, 2020 and 2019, respectively, is included in net investment income.
4. Long-term Debt
Long-term debt outstanding was as follows:
Interest Rates (1)
December 31,
Range
Weighted
Average
Maturity
20212020
(Dollars in millions)
Senior notes — unaffiliated (2)0.50%-6.50%4.44%2023-2046$12,814 $13,463 
Senior notes — affiliated1.59%-2.02%2.25%2023-20311,884 2,073 
Total
$14,698 $15,536 
__________________
(1)Range of interest rates and weighted average interest rates are for the year ended December 31, 2021.
(2)Net of $77 million and $85 million of unamortized issuance costs and net premiums and discounts at December 31, 2021 and 2020, respectively.
See Note 13 of the Notes to the Consolidated Financial Statements.
The aggregate maturities of long-term debt at December 31, 2021 for the next five years and thereafter are $0 in 2022, $1.3 billion in 2023, $1.5 billion in 2024, $1.2 billion in 2025, $582 million in 2026 and $10.1 billion thereafter.
Senior Notes – Affiliated
In December 2021, ¥54.6 billion 3.1350% senior unsecured notes issued to various subsidiaries matured and were refinanced with the following senior unsecured notes issued to various subsidiaries: (i) ¥12.2 billion 1.588% due December 2026, (ii) ¥19.1 billion 1.7185% due December 2028 and (iii) ¥23.3 billion 1.850% due December 2031.
In July 2021, ¥53.7 billion 2.9725% senior unsecured notes issued to various subsidiaries matured and were refinanced with the following senior unsecured notes issued to various subsidiaries: (i) ¥13.7 billion 1.610% due July 2026, (ii) ¥14.3 billion 1.755% due July 2028 and (iii) ¥25.7 billion 1.852% due July 2031.
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 July 2019, MetLife, Inc, issued a ¥37.3 billion 1.602% senior note due July 2023 and a ¥16.0 billion 1.637% senior note due July 2026. Both notes were issued to MLIC to refinance previously issued notes and are payable semi-annually.
In October 2019, MetLife Inc. issued a ¥26.5 billion 1.81% senior note due October 2029. The note was issued to MLIC to refinance previously issued notes, and is payable semi-annually.
Interest Expense
Interest expense was comprised of the following:
Years Ended December 31,
202120202019
(In millions)
Long-term debt — unaffiliated
$590 $570 $591 
Long-term debt — affiliated
47 52 48 
Collateral financing arrangements
5 6 6 
Junior subordinated debt securities
205 205 205 
Total
$847 $833 $850 
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.
5. 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 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 its 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, 2021 and 2020, derivative transactions with positive mark-to-market values (in-the-money) were $255 million and $366 million, respectively, and derivative transactions with negative mark-to-market values (out-of-the-money) were $116 million and $158 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 $114 million and $158 million at December 31, 2021 and 2020, respectively. Accordingly, unsecured derivative liabilities guaranteed by MetLife, Inc. were $2 million and $0 at December 31, 2021 and 2020, 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.