XML 41 R28.htm IDEA: XBRL DOCUMENT v3.22.2
Investments (Tables)
 6 Months Ended
Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]  
Fixed Maturity Securities Available-for-Sale by Sector
The following table presents fixed maturity securities available-for-sale (“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 and collateralized loan obligations (“ABS & CLO”), previously disclosed as ABS in the 2021 Annual Report, includes securities collateralized by consumer loans, corporate loans and broadly syndicated bank 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 & CLO and CMBS are, collectively, “Structured Products.”
June 30, 2022December 31, 2021
Amortized
Cost		Gross UnrealizedEstimated
Fair
Value		Amortized
Cost		Gross Unrealized (1)Estimated
Fair
Value
Sector
Allowance for
Credit Loss		GainsLossesAllowance for
Credit Loss		Gains
Losses
(In millions)
U.S. corporate$85,276 $(28)$2,012 $6,705 $80,555 $82,694 $(30)$10,651 $281 $93,034 
Foreign corporate
59,287 (53)1,397 6,454 54,177 59,124 (28)5,275 731 63,640 
Foreign government
49,377 (166)2,460 3,655 48,016 56,848 (19)5,603 823 61,609 
U.S. government and agency34,314 — 1,583 2,207 33,690 41,068 — 5,807 276 46,599 
RMBS29,068 — 368 2,133 27,303 29,152 — 1,440 188 30,404 
ABS & CLO
17,910 — 41 897 17,054 18,443 — 185 59 18,569 
Municipals12,881 — 672 1,040 12,513 11,761 — 2,464 13 14,212 
CMBS11,419 (14)133 668 10,870 11,794 (14)476 49 12,207 
Total fixed maturity securities AFS
$299,532 $(261)$8,666 $23,759 $284,178 $310,884 $(91)$31,901 $2,420 $340,274 
_________________
(1)Excludes gross unrealized gains (losses) related to assets held-for-sale; these unrealized gains (losses) are included in AOCI as no component of equity is held-for-sale. See Note 3 for information on the Company’s business dispositions.
Available-for-sale fixed maturity securities by contractual maturity date
The amortized cost, net of allowance for credit loss (“ACL”) and estimated fair value of fixed maturity securities AFS, by contractual maturity date, were as follows at June 30, 2022:
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$7,495 $49,816 $55,072 $128,505 $58,383 $299,271 
Estimated fair value$7,428 $49,014 $52,943 $119,566 $55,227 $284,178 
Continuous Gross Unrealized Losses 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 without an ACL by sector and aggregated by length of time that the securities have been in a continuous unrealized loss position.
June 30, 2022December 31, 2021
Less than 12 MonthsEqual to or Greater
than 12 Months		Less than 12 MonthsEqual to or Greater
than 12 Months
Sector & Credit QualityEstimated
Fair
Value		Gross
Unrealized
Losses		Estimated
Fair
Value		Gross
Unrealized
Losses		Estimated
Fair
Value		Gross
Unrealized
Losses (1)		Estimated
Fair
Value		Gross
Unrealized
Losses (1)
(Dollars in millions)
U.S. corporate$53,448 $6,137 $2,459 $568 $8,076 $165 $1,499 $116 
Foreign corporate36,341 5,653 3,764 798 10,011 404 2,834 327 
Foreign government17,614 2,014 5,895 1,634 7,812 319 5,377 502 
U.S. government and agency17,853 1,555 2,152 652 14,419 138 1,571 138 
RMBS19,935 1,807 1,847 326 10,363 158 417 30 
ABS & CLO14,275 794 1,201 103 8,150 39 804 20 
Municipals6,328 1,015 74 25 524 10 65 3 
CMBS8,708 602 727 66 2,664 31 657 18 
Total fixed maturity securities AFS
$174,502 $19,577 $18,119 $4,172 $62,019 $1,264 $13,224 $1,154 
Investment grade$165,299 $18,444 $16,780 $3,884 $58,358 $1,123 $12,022 $1,025 
Below investment grade9,203 1,133 1,339 288 3,661 141 1,202 129 
Total fixed maturity securities AFS
$174,502 $19,577 $18,119 $4,172 $62,019 $1,264 $13,224 $1,154 
Total number of securities in an unrealized loss position14,391 1,752 4,774 979 
________________
(1)Excludes gross unrealized losses related to assets held-for-sale; these unrealized losses are included in AOCI as no component of equity is held-for-sale. See Note 3 for information on the Company’s business dispositions.
Debt Securities, Available-for-sale, Allowance for Credit Loss
The rollforward of ACL for fixed maturity securities AFS by sector is as follows:
U.S.
 Corporate		Foreign
Corporate		Foreign
Government		CMBSTotal
Three Months Ended June 30, 2022(In millions)
Balance, at beginning of period$13 $102 $226 $14 $355 
Additions:
ACL not previously recorded
— — — — — 
Reductions:
Changes for securities with previously recorded ACL
15 (5)(23)— (13)
Securities sold or exchanged— (44)(37)— (81)
Write-offs
— — — — — 
Balance, at end of period$28 $53 $166 $14 $261 
Three Months Ended June 30, 2021
Balance, at beginning of period$43 $33 $21 $7 $104 
Additions:
ACL not previously recorded
— 4 — 4 8 
Reductions:
Changes for securities with previously recorded ACL
4 (1)— (4)(1)
Securities sold or exchanged(8)(4)— — (12)
Write-offs
— — — — — 
Balance, at end of period$39 $32 $21 $7 $99 
U.S.
 Corporate		Foreign
Corporate		Foreign
Government		CMBSTotal
Six Months Ended June 30, 2022(In millions)
Balance, at beginning of period$30 $28 $19 $14 $91 
Additions:
ACL not previously recorded
13 67 207 — 287 
Reductions:
Changes for securities with previously recorded ACL
15 2 (23)— (6)
Securities sold or exchanged(8)(44)(37)— (89)
Write-offs
(22)— — — (22)
Balance, at end of period$28 $53 $166 $14 $261 
Six Months Ended June 30, 2021
Balance, at beginning of period$44 $16 $21 $— $81 
Additions:
ACL not previously recorded
— 25 — 11 36 
Reductions:
Changes for securities with previously recorded ACL
3 (5)— (4)(6)
Securities sold or exchanged(8)(4)— — (12)
Write-offs
— — — — — 
Balance, at end of period$39 $32 $21 $7 $99 
Debt Securities, Trading, and Equity Securities, FV-NI
The following table presents equity securities by security type. Common stock includes common stock, exchange traded funds, mutual funds and real estate investment trusts.
June 30, 2022December 31, 2021
CostNet Unrealized
Gains (Losses) (1)		Estimated
Fair Value		CostNet Unrealized
Gains (Losses) (1)		Estimated
Fair Value
Security Type
(In millions)
Common stock$714 $217 $931 $784 $295 $1,079 
Non-redeemable preferred stock160 (6)154 189 1 190 
Total
$874 $211 $1,085 $973 $296 $1,269 
________________
(1)Represents cumulative changes in estimated fair value, recognized in earnings, and not in Other Comprehensive Income (Loss) (“OCI”).
The following table presents these investments by asset type. Contractholder-directed investments supporting unit-linked variable annuity type liabilities (“Unit-linked investments”) are primarily equity securities (including mutual funds) and, to a lesser extent, fixed income investments and cash and cash equivalents.
June 30, 2022December 31, 2021
Cost or
Amortized
Cost		Net Unrealized
Gains (Losses) (1)		Estimated
Fair Value		Cost or
Amortized
Cost		Net Unrealized
Gains (Losses) (1)		Estimated
Fair Value
Asset Type
(In millions)
Unit-linked investments
$7,990 $490 $8,480 $8,643 $1,897 $10,540 
FVO Securities
1,173 222 1,395 1,243 359 1,602 
Total
$9,163 $712 $9,875 $9,886 $2,256 $12,142 
________________
(1)Represents cumulative changes in estimated fair value, recognized in earnings, and not in OCI.
Disclosure of Mortgage Loans Net of Valuation Allowance
Mortgage loans are summarized as follows at:
 June 30, 2022December 31, 2021
Portfolio SegmentCarrying
Value		% of
Total		Carrying
Value		% of
Total
(Dollars in millions)
Commercial$52,348 63.8 %$50,553 63.7 %
Agricultural18,563 22.6 18,111 22.8 
Residential11,497 14.0 11,196 14.1 
Total amortized cost
82,408 100.4 79,860 100.6 
Allowance for credit loss(486)(0.6)(634)(0.8)
Subtotal mortgage loans, net81,922 99.8 79,226 99.8 
Residential — FVO109 0.2 127 0.2 
Total mortgage loans held-for-investment, net
82,031 100.0 79,353 100.0 
Mortgage loans held-for-sale24 — — — 
Total mortgage loans, net
$82,055 100.0 %$79,353 100.0 %
Allowance for Loan and Lease Losses, Provision for Loss, Net
The rollforward of ACL for mortgage loans, by portfolio segment, is as follows:
Six Months
Ended
June 30,
20222021
CommercialAgriculturalResidentialTotalCommercialAgriculturalResidentialTotal
(In millions)
Balance, beginning of period
$340 $88 $206 $634 $252 $106 $232 $590 
Provision (release)(16)41 (31)(6)22 (7)(23)(8)
Initial credit losses on PCD loans (1)
— — — — — — 2 2 
Charge-offs, net of recoveries
(119)(22)(1)(142)— (13)(1)(14)
Balance, end of period
$205 $107 $174 $486 $274 $86 $210 $570 
________________
(1)Represents the initial credit losses on purchased mortgage loans accounted for as purchased financial assets with credit deterioration (“PCD”).
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 June 30, 2022:
Credit Quality Indicator20222021202020192018PriorRevolving
Loans		Total% of
Total
(Dollars in millions)
LTV ratios:
Less than 65%
$4,139 $5,557 $4,006 $5,352 $5,462 $14,552 $2,597 $41,665 79.6 %
65% to 75%
937 1,483 777 2,230 1,349 1,631 — 8,407 16.0 
76% to 80%
— 2 32 410 200 291 — 935 1.8 
Greater than 80%
61 — — 4 79 1,197 — 1,341 2.6 
Total
$5,137 $7,042 $4,815 $7,996 $7,090 $17,671 $2,597 $52,348 100.0 %
DSCR:
> 1.20x
$5,016 $6,349 $4,610 $7,592 $6,535 $15,498 $2,242 $47,842 91.4 %
1.00x - 1.20x
92 272 18 — 223 340 — 945 1.8 
<1.00x
29 421 187 404 332 1,833 355 3,561 6.8 
Total
$5,137 $7,042 $4,815 $7,996 $7,090 $17,671 $2,597 $52,348 100.0 %
The amortized cost of agricultural mortgage loans by credit quality indicator and vintage year was as follows at June 30, 2022:
Credit Quality Indicator20222021202020192018PriorRevolving
Loans		Total% of
Total
(Dollars in millions)
LTV ratios:
Less than 65%
$1,794 $2,586 $2,633 $1,726 $2,402 $4,534 $1,061 $16,736 90.2 %
65% to 75%
140 321 356 185 100 503 55 1,660 8.9 
76% to 80%
— — — — — 11 — 11 0.1 
Greater than 80%
— — 30 76 — 44 6 156 0.8 
Total
$1,934 $2,907 $3,019 $1,987 $2,502 $5,092 $1,122 $18,563 100.0 %
The amortized cost of residential mortgage loans by credit quality indicator and vintage year was as follows at June 30, 2022:
Credit Quality Indicator20222021202020192018PriorRevolving
Loans		Total% of
Total
(Dollars in millions)
Performance indicators:
Performing
$909 $1,270 $386 $1,039 $465 $6,957 $— $11,026 95.9 %
Nonperforming (1)
2 6 7 47 16 393 — 471 4.1 
Total
$911 $1,276 $393 $1,086 $481 $7,350 $— $11,497 100.0 %
__________________
(1)Includes residential mortgage loans in process of foreclosure of $137 million and $70 million at June 30, 2022 and December 31, 2021, respectively.
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:
Past DueGreater than 90 Days Past Due
 and Still Accruing Interest		Nonaccrual
Portfolio SegmentJune 30, 2022December 31, 2021June 30, 2022December 31, 2021June 30, 2022December 31, 2021
(In millions)
Commercial$5 $13 $5 $13 $180 $155 
Agricultural96 124 33 16 178 225 
Residential471 450 8 8 464 442 
Total$572 $587 $46 $37 $822 $822 
Disclosure Real Estate and Real Estate Joint Ventures Real estate investments, by income type, as well as income earned, were as follows at and for the periods indicated:
 June 30, 2022December 31, 2021Three Months
Ended
June 30,		Six Months
Ended
June 30,
 2022202120222021
Income TypeCarrying ValueIncome
(In millions)
Wholly-owned real estate:
   Leased real estate $4,519 $5,146 $98 $108 $204 $219 
   Other real estate 478 474 68 44 100 86 
Real estate joint ventures7,379 6,596 213 53 403 76 
Total real estate and real estate joint ventures$12,376 $12,216 $379 $205 $707 $381 
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:
June 30, 2022December 31, 2021
(In millions)
Fixed maturity securities AFS
$(15,291)$29,461 
Derivatives
2,336 2,061 
Other
294 389 
Subtotal
(12,661)31,911 
Amounts allocated from:
Policyholder liabilities (1)(850)(4,978)
DAC, VOBA and DSI
2,052 (3,208)
Subtotal
1,202 (8,186)
Deferred income tax benefit (expense)
2,023 (6,031)
Net unrealized investment gains (losses)
(9,436)17,694 
Net unrealized investment gains (losses) attributable to noncontrolling interests
(21)(23)
Net unrealized investment gains (losses) attributable to MetLife, Inc.
$(9,457)$17,671 
__________________
(1)Includes unearned revenue liabilities.
The changes in net unrealized investment gains (losses) were as follows:
Six Months
Ended
June 30, 2022
(In millions)
Balance, beginning of period
$17,671 
Unrealized investment gains (losses) during the period
(44,572)
Unrealized investment gains (losses) relating to:
Policyholder liabilities4,128 
DAC, VOBA and DSI
5,260 
Deferred income tax benefit (expense)
8,054 
Net unrealized investment gains (losses)
(9,459)
Net unrealized investment gains (losses) attributable to noncontrolling interests
2 
Balance, end of period
$(9,457)
Change in net unrealized investment gains (losses)
$(27,130)
Change in net unrealized investment gains (losses) attributable to noncontrolling interests
2 
Change in net unrealized investment gains (losses) attributable to MetLife, Inc.
$(27,128)
Securities Lending and Repurchase Agreements
A summary of these transactions and agreements accounted for as secured borrowings was as follows:
June 30, 2022December 31, 2021
Securities (1)Securities (1)
Agreement TypeEstimated
Fair Value		Cash Collateral
Received from
Counterparties
(2)		Reinvestment
Portfolio at
Estimated Fair
Value		Estimated
Fair Value		Cash Collateral
Received from
Counterparties
(2)		Reinvestment
Portfolio at
Estimated Fair
Value
(In millions)
Securities lending
$13,509 $13,748 $13,514 $20,654 $21,055 $21,319 
Repurchase agreements
$3,208 $3,125 $3,065 $3,416 $3,325 $3,357 
__________________
(1)These securities were included within fixed maturity securities AFS, short-term investments and cash equivalents at June 30, 2022 and within fixed maturity securities AFS at December 31, 2021.
(2)The liability for cash collateral is included within payables for collateral under securities loaned and other transactions.
Contractual maturities of these transactions and agreements accounted for as secured borrowings were as follows:
June 30, 2022December 31, 2021
Remaining MaturitiesRemaining Maturities
Security TypeOpen (1)1 Month
or Less		Over 1 Month
 to 6
Months		Over 6
Months
to 1 Year		TotalOpen (1)1 Month
or Less		Over 1 Month
 to 6
Months		Over 6
Months
to 1 Year		Total
(In millions)
Cash collateral liability by security type:
Securities lending:
U.S. government and agency
$2,643 $7,017 $2,974 $— $12,634 $5,900 $7,052 $7,055 $— $20,007 
Foreign government
— 206 712 — 918 — 285 762 — 1,047 
Agency RMBS— 141 55 — 196 — — — — — 
U.S. corporate
— — — — — 1 — — — 1 
Total
$2,643 $7,364 $3,741 $— $13,748 $5,901 $7,337 $7,817 $— $21,055 
Repurchase agreements:
U.S. government and agency
$— $3,125 $— $— $3,125 $— $3,325 $— $— $3,325 
__________________
(1)The related security could be returned to the Company on the next business day, which would require the Company to immediately return the cash collateral.
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 and were as follows at:
June 30, 2022December 31, 2021
(In millions)
Invested assets on deposit (regulatory deposits)
$1,640 $1,872 
Invested assets held in trust (external reinsurance agreements) (1)914 1,114 
Invested assets pledged as collateral (2)27,358 24,261 
Total invested assets on deposit, held in trust and pledged as collateral
$29,912 $27,247 
__________________
(1)    Represents assets held in trust related to third-party reinsurance agreements. Excludes assets held in trust related to reinsurance agreements between wholly-owned subsidiaries of $2.0 billion and $2.1 billion at June 30, 2022 and December 31, 2021, respectively.
(2)     The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements, secured debt and short-term debt related to repurchase agreements and a collateral financing arrangement (see Notes 4, 13 and 14 of the Notes to the Consolidated Financial Statements included in the 2021 Annual Report) and derivative transactions (see Note 7).
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:
June 30, 2022December 31, 2021
Asset TypeTotal
Assets		Total
Liabilities		Total
Assets		Total
Liabilities
(In millions)
Investment funds (primarily other invested assets)$277 $9 $292 $1 
Renewable energy partnership (primarily other invested assets)75 — 79 — 
Other investments (primarily other assets)1 — 1 — 
Total
$353 $9 $372 $1 
Unconsolidated VIEs
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:
June 30, 2022December 31, 2021
Asset TypeCarrying
Amount		Maximum
Exposure
to Loss (1)		Carrying
Amount		Maximum
Exposure
to Loss (1)
(In millions)
Fixed maturity securities AFS (2)$55,463 $55,463 $62,654 $62,654 
Other limited partnership interests
13,432 19,549 13,287 20,720 
Other invested assets
1,411 1,467 1,257 1,314 
Other investments
917 939 776 926 
Total
$71,223 $77,418 $77,974 $85,614 
__________________
(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 $6 million and $5 million at June 30, 2022 and December 31, 2021, respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee.
(2)For variable interests in Structured Products included within fixed maturity securities AFS, 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.
Components of Net Investment Income
The composition of net investment income by asset type was as follows:
Three Months
Ended
June 30,		Six Months
Ended
June 30,
Asset Type2022202120222021
(In millions)
Fixed maturity securities AFS
$2,832 $2,739 $5,546 $5,492 
Equity securities
5 9 12 20 
FVO Securities(89)50 (154)86 
Mortgage loans
833 885 1,657 1,748 
Policy loans
114 120 230 241 
Real estate and real estate joint ventures
379 205 707 381 
Other limited partnership interests
168 1,047 1,094 2,329 
Cash, cash equivalents and short-term investments
49 24 80 49 
Operating joint ventures
31 15 49 38 
Other
221 40 347 94 
Subtotal investment income4,543 5,134 9,568 10,478 
Less: Investment expenses
273 232 515 469 
Subtotal, net
4,270 4,902 9,053 10,009 
Unit-linked investments(687)378 (1,186)585 
Net investment income
$3,583 $5,280 $7,867 $10,594 
Components of Net Investment Gains (Losses)
The composition of net investment gains (losses) by asset type and transaction type was as follows:
Three Months
Ended
June 30,		Six Months
Ended
June 30,
Asset Type2022202120222021
(In millions)
Fixed maturity securities AFS$(671)$5 $(1,269)$(62)
Equity securities
(42)55 (92)130 
Mortgage loans48 (2)92 58 
Real estate and real estate joint ventures (excluding changes in estimated fair value)
159 368 163 416 
Other limited partnership interests (excluding changes in estimated fair value)
(2)(8)16 (13)
Other gains (losses)
110 23 176 46 
Subtotal
(398)441 (914)575 
Change in estimated fair value of other limited partnership interests and real estate joint ventures(1)5 6 14 
Non-investment portfolio gains (losses)
(286)1,159 (295)1,150 
Subtotal
(287)1,164 (289)1,164 
Net investment gains (losses)$(685)$1,605 $(1,203)$1,739 
Transaction Type
Realized gains (losses) on investments sold or disposed$(445)$434 $(656)$437 
Impairments5 (13)(35)(13)
Recognized gains (losses):
Change in allowance for credit loss recognized in earnings84 (39)(159)(17)
Unrealized net gains (losses) recognized in earnings(43)64 (58)182 
Total recognized gains (losses)41 25 (217)165 
Non-investment portfolio gains (losses)(286)1,159 (295)1,150 
Net investment gains (losses)$(685)$1,605 $(1,203)$1,739 
Schedule of Realized Gain (Loss)
The composition of net investment gains (losses) for these securities is as follows:
Three Months
Ended
June 30,		Six Months
Ended
June 30,
Fixed Maturity Securities AFS2022202120222021
(In millions)
Proceeds
$20,710 $10,923 $34,734 $26,563 
Gross investment gains
$231 $145 $340 $363 
Gross investment (losses)(1,001)(132)(1,404)(391)
Realized gains (losses) on sales and disposals(770)13 (1,064)(28)
Net credit loss (provision) release (change in ACL recognized in earnings)94 5 (170)(21)
Impairment (loss)
5 (13)(35)(13)
Net credit loss (provision) release and impairment (loss)99 (8)(205)(34)
Net investment gains (losses)$(671)$5 $(1,269)$(62)
Equity Securities
Realized gains (losses) on sales and disposals$— $(2)$(30)$(34)
Unrealized net gains (losses) recognized in earnings(42)57 (62)164 
Net investment gains (losses)$(42)$55 $(92)$130