Policyholder Account Balances

3 Months Ended

Mar. 31, 2023

Insurance [Abstract]

Policyholder Account Balances

4. Policyholder Account BalancesThe Company establishes liabilities for PABs which are generally equal to the account value, and which includes accrued interest credited, but excludes the impact of any applicable charge that may be incurred upon surrender.

The LDTI transition adjustments related to PABs, as described in Note 1, were as follows at the Transition Date:

	U.S. Group Life		U.S. Capital Markets Investment Products and Stable Value GICs		U.S. Annuities and Risk Solutions		Asia Universal and Variable Universal Life		Asia Fixed Annuities		EMEA Variable Annuities		MetLife Holdings Annuities		MetLife Holdings Life and Other		Other		Total
	(In millions)
Balance at December 31, 2020	$	7,586	$	62,908	$	6,250	$	43,868	$	31,422	$	4,777	$	15,727	$	13,129	$	19,509	$	205,176
Reclassification of carrying amount of contracts and contract features that are market risk benefits	—		—		(24)		—		—		2		(493)		(273)		(170)		(958)
Other balance sheet reclassifications upon adoption of the LDTI standard	—		—		7,417		—		—		—		—		—		102		7,519
Balance at January 1, 2021	$	7,586	$	62,908	$	13,643	$	43,868	$	31,422	$	4,779	$	15,234	$	12,856	$	19,441	$	211,737

The Company’s PABs on the interim condensed consolidated balance sheets were as follows at:

	March 31, 2023		December 31, 2022
	(In millions)
U.S:
Group Life	$	7,965	$	8,028
Capital Markets Investment Products and Stable Value GICs	63,284		63,723
Annuities and Risk Solutions	16,128		15,549
Asia:
Universal and Variable Universal Life	46,770		46,417
Fixed Annuities	34,272		32,454
EMEA - Variable Annuities	2,845		2,802
MetLife Holdings:
Annuities	12,818		13,286
Life and Other	12,234		12,402
Other	16,253		15,936
Total	$	212,569	$	210,597

Rollforwards

The following information about the direct and assumed liability for PABs includes year-to-date disaggregated rollforwards. The products grouped within these rollforwards were selected based upon common characteristics and valuations using similar inputs, judgments, assumptions and methodologies within a particular segment of the business. Policy charges presented in each disaggregated rollforward reflect a premium and/or assessment based on the account balance.

U.S.

Group Life

The U.S. segment’s group life PABs predominantly consist of retained asset accounts, universal life products, and the fixed account of variable life insurance products. Information regarding this liability was as follows:

	Three Months Ended March 31,
	2023		2022
	(Dollars in millions)
Balance, beginning of period	$	8,028	$	7,893
Deposits	851		947
Policy charges	(160)		(150)
Surrenders and withdrawals	(799)		(683)
Benefit payments	(1)		(4)
Net transfers from (to) separate accounts	1		—
Interest credited	45		31
Balance, end of period	$	7,965	$	8,034
Weighted-average annual crediting rate	2.3 %		1.6 %
Cash surrender value	$	7,904	$	7,980

Information regarding the Company’s net amount at risk, excluding offsets from ceded reinsurance, if any, for the U.S. segment’s group life products was as follows at:

	March 31,
	2023			2022
	In the Event of Death (1)		At Annuitization or Exercise of Other Living Benefits	In the Event of Death (1)		At Annuitization or Exercise of Other Living Benefits
	(In millions)
Net amount at risk	$	249,463	N/A	$	240,610	N/A

__________________

(1)For benefits that are payable in the event of death, the net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts at the balance sheet date.

The U.S. segment’s group life product account values by range of guaranteed minimum crediting rates (“GMCR”) and the related range of differences between rates being credited to policyholders and the respective guaranteed minimums were as follows at:

Range of GMCR	At GMCR		Greater than  0% but less  than 0.50% above GMCR		Equal to or greater than 0.50% but less than 1.50%  above GMCR		Equal to or greater than 1.50% above GMCR		Total Account Value
	(In millions)
March 31, 2023
Equal to or greater than 0% but less than 2%	$	—	$	77	$	935	$	4,640	$	5,652
Equal to or greater than 2% but less than 4%	1,277		10		63		2		1,352
Equal to or greater than 4%	759		1		43		33		836
Products with either a fixed rate or no guaranteed minimum crediting rate	N/A		N/A		N/A		N/A		125
Total	$	2,036	$	88	$	1,041	$	4,675	$	7,965
March 31, 2022
Equal to or greater than 0% but less than 2%	$	5,318	$	194	$	—	$	132	$	5,644
Equal to or greater than 2% but less than 4%	1,355		51		16		—		1,422
Equal to or greater than 4%	808		—		—		30		838
Products with either a fixed rate or no guaranteed minimum crediting rate	N/A		N/A		N/A		N/A		130
Total	$	7,481	$	245	$	16	$	162	$	8,034

Capital Markets Investment Products and Stable Value GICs

The U.S. segment’s capital markets investment products and stable value GICs PABs are investment-type products, mainly funding agreements. Information regarding this liability was as follows:

	Three Months Ended March 31,
	2023		2022
	(Dollars in millions)
Balance, beginning of period	$	63,723	$	62,521
Deposits	21,234		23,521
Surrenders and withdrawals	(22,590)		(19,935)
Interest credited	460		227
Effect of foreign currency translation and other, net	457		(169)
Balance, end of period	$	63,284	$	66,165
Weighted-average annual crediting rate	2.9 %		1.4 %
Cash surrender value	$	2,074	$	2,227

The U.S. segment’s capital markets investment products and stable value GICs account values by range of GMCR and the related range of differences between rates being credited to policyholders and the respective guaranteed minimums were as follows at:

Range of GMCR	At GMCR		Greater than  0% but less  than 0.50% above GMCR		Equal to or greater than 0.50% but less than 1.50%  above GMCR		Equal to or greater than 1.50% above GMCR		Total Account Value
	(In millions)
March 31, 2023
Equal to or greater than 0% but less than 2%	$	—	$	—	$	1	$	1,835	$	1,836
Products with either a fixed rate or no guaranteed minimum crediting rate	N/A		N/A		N/A		N/A		61,448
Total	$	—	$	—	$	1	$	1,835	$	63,284
March 31, 2022
Equal to or greater than 0% but less than 2%	$	—	$	300	$	3,523	$	1,258	$	5,081
Products with either a fixed rate or no guaranteed minimum crediting rate	N/A		N/A		N/A		N/A		61,084
Total	$	—	$	300	$	3,523	$	1,258	$	66,165

Annuities and Risk Solutions

The U.S. segment’s annuities and risk solutions PABs include certain structured settlements and institutional income annuities, and benefit funding solutions that include postretirement benefits and company-, bank- or trust-owned life insurance used to finance nonqualified benefit programs for executives. Information regarding this liability was as follows:

	Three Months Ended March 31,
	2023		2022
	(Dollars in millions)
Balance, beginning of period	$	15,549	$	14,431
Deposits	629		206
Policy charges	(47)		(45)
Surrenders and withdrawals	(39)		(39)
Benefit payments	(191)		(186)
Net transfers from (to) separate accounts	55		(27)
Interest credited	151		129
Other	21		(84)
Balance, end of period	$	16,128	$	14,385
Weighted-average annual crediting rate	3.8 %		3.6 %
Cash surrender value	$	7,592	$	6,527

Information regarding the Company’s net amount at risk, excluding offsets from ceded reinsurance, if any, for the U.S. segment’s annuities and risk solutions products was as follows at:

	March 31,
	2023			2022
	In the Event of Death (1)		At Annuitization or Exercise of Other Living Benefits	In the Event of Death (1)		At Annuitization or Exercise of Other Living Benefits
	(In millions)
Net amount at risk	$	41,924	N/A	$	39,755	N/A

__________________

(1)For benefits that are payable in the event of death, the net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts at the balance sheet date.

The U.S. segment’s annuities and risk solutions account values by range of GMCR and the related range of differences between rates being credited to policyholders and the respective guaranteed minimums were as follows at:

Range of GMCR	At GMCR		Greater than  0% but less  than 0.50% above GMCR		Equal to or greater than 0.50% but less than 1.50%  above GMCR		Equal to or greater than 1.50% above GMCR		Total Account Value
	(In millions)
March 31, 2023
Equal to or greater than 0% but less than 2%	$	—	$	—	$	58	$	1,424	$	1,482
Equal to or greater than 2% but less than 4%	230		39		125		441		835
Equal to or greater than 4%	4,460		120		96		5		4,681
Products with either a fixed rate or no guaranteed minimum crediting rate	N/A		N/A		N/A		N/A		9,130
Total	$	4,690	$	159	$	279	$	1,870	$	16,128
March 31, 2022
Equal to or greater than 0% but less than 2%	$	—	$	—	$	115	$	493	$	608
Equal to or greater than 2% but less than 4%	301		36		125		421		883
Equal to or greater than 4%	4,421		125		56		4		4,606
Products with either a fixed rate or no guaranteed minimum crediting rate	N/A		N/A		N/A		N/A		8,288
Total	$	4,722	$	161	$	296	$	918	$	14,385

Asia

Universal and Variable Universal Life

The Asia segment’s universal and variable universal life PABs in Japan primarily include interest sensitive whole life products. Information regarding this liability was as follows:

	Three Months Ended March 31,
	2023		2022
	(Dollars in millions)
Balance, beginning of period	$	46,417	$	46,590
Deposits	1,070		1,771
Policy charges	(242)		(311)
Surrenders and withdrawals	(517)		(391)
Benefit payments	(149)		(122)
Interest credited	344		254
Effect of foreign currency translation and other, net	(153)		(836)
Balance, end of period	$	46,770	$	46,955
Weighted-average annual crediting rate	3.0 %		2.2 %
Cash surrender value	$	40,028	$	42,960

Information regarding the Company’s net amount at risk, excluding offsets from ceded reinsurance, if any, for the Asia segment’s universal and variable universal life products was as follows at:

	March 31,
	2023			2022
	In the Event of Death (1)		At Annuitization or Exercise of Other Living Benefits	In the Event of Death (1)		At Annuitization or Exercise of Other Living Benefits
	(In millions)
Net amount at risk	$	94,001	N/A	$	102,751	N/A

__________________

(1)For benefits that are payable in the event of death, the net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts at the balance sheet date.

The Asia segment’s universal and variable universal life account values by range of GMCR and the related range of differences between rates being credited to policyholders and the respective guaranteed minimums were as follows at:

Range of GMCR	At GMCR		Greater than  0% but less  than 0.50% above GMCR		Equal to or greater than 0.50% but less than 1.50%  above GMCR		Equal to or greater than 1.50% above GMCR		Total Account Value
	(In millions)
March 31, 2023
Equal to or greater than 0% but less than 2%	$	10,978	$	67	$	136	$	85	$	11,266
Equal to or greater than 2% but less than 4%	21,256		2,857		5,730		4,913		34,756
Equal to or greater than 4%	265		—		—		—		265
Products with either a fixed rate or no guaranteed minimum crediting rate	N/A		N/A		N/A		N/A		483
Total	$	32,499	$	2,924	$	5,866	$	4,998	$	46,770
March 31, 2022
Equal to or greater than 0% but less than 2%	$	11,323	$	132	$	—	$	—	$	11,455
Equal to or greater than 2% but less than 4%	21,819		2,735		5,480		4,734		34,768
Equal to or greater than 4%	282		—		—		—		282
Products with either a fixed rate or no guaranteed minimum crediting rate	N/A		N/A		N/A		N/A		450
Total	$	33,424	$	2,867	$	5,480	$	4,734	$	46,955

Fixed Annuities

The Asia segment’s fixed annuities PABs in Japan include fixed annuities products. Information regarding this liability was as follows:

	Three Months Ended March 31,
	2023		2022
	(Dollars in millions)
Balance, beginning of period	$	32,454	$	30,976
Deposits	2,733		1,087
Policy charges	(1)		—
Surrenders and withdrawals	(445)		(498)
Benefit payments	(545)		(533)
Interest credited	191		149
Effect of foreign currency translation and other, net	(115)		296
Balance, end of period	$	34,272	$	31,477
Weighted-average annual crediting rate	2.3 %		1.9 %
Cash surrender value	$	29,162	$	29,292

Information regarding the Company’s net amount at risk, excluding offsets from ceded reinsurance, if any, for the Asia segment’s fixed annuities products was as follows at:

	March 31,
	2023			2022
	In the Event of Death (1)		At Annuitization or Exercise of Other Living Benefits	In the Event of Death (1)		At Annuitization or Exercise of Other Living Benefits
	(In millions)
Net amount at risk	$	—	N/A	$	17	N/A

__________________

(1)For benefits that are payable in the event of death, the net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts at the balance sheet date.

The Asia segment’s fixed annuities account values by range of GMCR and the related range of differences between rates being credited to policyholders and the respective guaranteed minimums were as follows at:

Range of GMCR	At GMCR		Greater than  0% but less  than 0.50% above GMCR		Equal to or greater than 0.50% but less than 1.50%  above GMCR		Equal to or greater than 1.50% above GMCR		Total Account Value
	(In millions)
March 31, 2023
Equal to or greater than 0% but less than 2%	$	377	$	636	$	6,980	$	24,865	$	32,858
Equal to or greater than 2% but less than 4%	—		6		—		—		6
Products with either a fixed rate or no guaranteed minimum crediting rate	N/A		N/A		N/A		N/A		1,408
Total	$	377	$	642	$	6,980	$	24,865	$	34,272
March 31, 2022
Equal to or greater than 0% but less than 2%	$	370	$	1,136	$	8,024	$	20,351	$	29,881
Equal to or greater than 2% but less than 4%	8		—		—		—		8
Products with either a fixed rate or no guaranteed minimum crediting rate	N/A		N/A		N/A		N/A		1,588
Total	$	378	$	1,136	$	8,024	$	20,351	$	31,477

EMEA

Variable Annuities

The EMEA segment’s variable annuities PABs in the United Kingdom include variable annuities products. Information regarding this liability was as follows:

	Three Months Ended March 31,
	2023		2022
	(Dollars in millions)
Balance, beginning of period	$	2,802	$	4,215
Deposits	1		2
Policy charges	(16)		(22)
Surrenders and withdrawals	(65)		(107)
Benefit payments	(31)		(35)
Interest credited (1)	77		(175)
Effect of foreign currency translation and other, net	77		(109)
Balance, end of period	$	2,845	$	3,769
Weighted-average annual crediting rate	11.6 %		(16.1) %
Cash surrender value	$	2,845	$	3,769

__________________

(1)Interest credited on EMEA’s variable annuities products represents gains or losses which are passed through to the policyholder based on the underlying unit-linked investment fund returns, which may be positive or negative depending on market conditions.

Information regarding the Company’s net amount at risk, excluding offsets from ceded reinsurance, if any, for the EMEA segment’s variable annuities products was as follows at:

	March 31,
	2023				2022
	In the Event of Death (1)		At Annuitization or Exercise of Other Living Benefits (2)		In the Event of Death (1)		At Annuitization or Exercise of Other Living Benefits (2)
	(In millions)
Net amount at risk	$	565	$	713	$	265	$	383

__________________

(1)For benefits that are payable in the event of death, the net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts at the balance sheet date.

(2)For benefits that are payable in the event of annuitization or exercise of other living benefits, the net amount at risk is generally defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates or to provide other living benefits. This amount represents the Company’s potential economic exposure in the event all contractholders were to annuitize or to exercise other living benefits at the balance sheet date.

The EMEA segment’s variable annuities account values by range of GMCR and the related range of differences between rates being credited to policyholders and the respective guaranteed minimums were as follows at:

Range of GMCR	At GMCR		Greater than  0% but less  than 0.50% above GMCR		Equal to or greater than 0.50% but less than 1.50%  above GMCR		Equal to or greater than 1.50% above GMCR		Total Account Value
	(In millions)
March 31, 2023
Products with either a fixed rate or no guaranteed minimum crediting rate	N/A		N/A		N/A		N/A		2,845
Total	$	—	$	—	$	—	$	—	$	2,845
March 31, 2022
Products with either a fixed rate or no guaranteed minimum crediting rate	N/A		N/A		N/A		N/A		3,769
Total	$	—	$	—	$	—	$	—	$	3,769

MetLife Holdings

Annuities

The MetLife Holdings segment’s annuities PABs primarily includes fixed deferred annuities, the fixed account portion of variable annuities, certain income annuities, and embedded derivatives related to equity-indexed annuities. Information regarding this liability was as follows:

	Three Months Ended March 31,
	2023		2022
	(Dollars in millions)
Balance, beginning of period	$	13,286	$	14,398
Deposits	41		66
Policy charges	(4)		(4)
Surrenders and withdrawals	(531)		(323)
Benefit payments	(119)		(111)
Net transfers from (to) separate accounts	35		66
Interest credited	100		101
Other	10		(11)
Balance, end of period	$	12,818	$	14,182
Weighted-average annual crediting rate	3.1 %		2.9 %
Cash surrender value	$	11,981	$	13,090

Information regarding the Company’s net amount at risk, excluding offsets from ceded reinsurance, if any, for the MetLife Holdings segment’s annuities products was as follows at:

	March 31,
	2023				2022
	In the Event of Death (1)		At Annuitization or Exercise of Other Living Benefits (2)		In the Event of Death (1)		At Annuitization or Exercise of Other Living Benefits (2)
	(In millions)
Net amount at risk (3)	$	3,600	$	831	$	2,003	$	755

__________________

(1)For benefits that are payable in the event of death, the net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts at the balance sheet date.

(2)For benefits that are payable in the event of annuitization or exercise of other living benefits, the net amount at risk is generally defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates or to provide other living benefits. This amount represents the Company’s potential economic exposure in the event all contractholders were to annuitize or to exercise other living benefits at the balance sheet date.

(3)Includes amounts for certain variable annuities with guarantees, which are also disclosed in “MetLife Holdings – Annuities” in Note 5, due to contracts recorded as PABs, along with related guarantees recorded as MRBs.

The MetLife Holdings segment’s annuities account values by range of GMCR and the related range of differences between rates being credited to policyholders and the respective guaranteed minimums were as follows at:

Range of GMCR	At GMCR		Greater than  0% but less  than 0.50% above GMCR		Equal to or greater than 0.50% but less than 1.50%  above GMCR		Equal to or greater than 1.50% above GMCR		Total Account Value
	(In millions)
March 31, 2023
Equal to or greater than 0% but less than 2%	$	658	$	90	$	136	$	24	$	908
Equal to or greater than 2% but less than 4%	6,517		3,203		376		36		10,132
Equal to or greater than 4%	964		321		11		—		1,296
Products with either a fixed rate or no guaranteed minimum crediting rate	N/A		N/A		N/A		N/A		482
Total	$	8,139	$	3,614	$	523	$	60	$	12,818
March 31, 2022
Equal to or greater than 0% but less than 2%	$	1,038	$	7	$	13	$	11	$	1,069
Equal to or greater than 2% but less than 4%	10,601		282		183		1		11,067
Equal to or greater than 4%	1,296		40		5		—		1,341
Products with either a fixed rate or no guaranteed minimum crediting rate	N/A		N/A		N/A		N/A		705
Total	$	12,935	$	329	$	201	$	12	$	14,182

Life and Other

The MetLife Holdings segment’s life and other PABs include retained asset accounts, universal life products, the fixed account of variable life insurance products and funding agreements. Information regarding this liability was as follows:

	Three Months Ended March 31,
	2023		2022
	(Dollars in millions)
Balance, beginning of period	$	12,402	$	12,699
Deposits	226		276
Policy charges	(179)		(181)
Surrenders and withdrawals	(287)		(182)
Benefit payments	(47)		(55)
Net transfers from (to) separate accounts	6		8
Interest credited	113		115
Other	—		(4)
Balance, end of period	$	12,234	$	12,676
Weighted-average annual crediting rate	3.7 %		3.6 %
Cash surrender value	$	11,731	$	12,147

Information regarding the Company’s net amount at risk, excluding offsets from ceded reinsurance, if any, for the MetLife Holdings segment’s life and other products was as follows at:

	March 31,
	2023			2022
	In the Event of Death (1)		At Annuitization or Exercise of Other Living Benefits	In the Event of Death (1)		At Annuitization or Exercise of Other Living Benefits
	(In millions)
Net amount at risk	$	70,483	N/A	$	73,301	N/A

__________________

(1)For benefits that are payable in the event of death, the net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts at the balance sheet date.

The MetLife Holdings segment’s life and other products account values by range of GMCR and the related range of differences between rates being credited to policyholders and the respective guaranteed minimums were as follows at:

Range of GMCR	At GMCR		Greater than  0% but less  than 0.50% above GMCR		Equal to or greater than 0.50% but less than 1.50%  above GMCR		Equal to or greater than 1.50% above GMCR		Total Account Value
	(In millions)
March 31, 2023
Equal to or greater than 0% but less than 2%	$	—	$	—	$	20	$	55	$	75
Equal to or greater than 2% but less than 4%	4,872		172		296		560		5,900
Equal to or greater than 4%	5,209		127		417		5		5,758
Products with either a fixed rate or no guaranteed minimum crediting rate	N/A		N/A		N/A		N/A		501
Total	$	10,081	$	299	$	733	$	620	$	12,234
March 31, 2022
Equal to or greater than 0% but less than 2%	$	39	$	8	$	—	$	—	$	47
Equal to or greater than 2% but less than 4%	5,147		145		308		570		6,170
Equal to or greater than 4%	5,398		131		424		5		5,958
Products with either a fixed rate or no guaranteed minimum crediting rate	N/A		N/A		N/A		N/A		501
Total	$	10,584	$	284	$	732	$	575	$	12,676

5. Market Risk Benefits The Company establishes liabilities for certain retirement assurance and variable annuity contract features which include a minimum benefit guarantee that provides to the contractholder a minimum return based on their initial deposit less withdrawals. In some cases, the benefit base may be increased by additional deposits, bonus amounts, accruals or optional market value resets.

The LDTI transition adjustments related to market risk benefit liabilities, as described in Note 1, were as follows at the Transition Date:

	Asia Retirement Assurance		MetLife Holdings Annuities		Other		Total
	(In millions)
Direct and assumed MRB liabilities at December 31, 2020	$	—	$	—	$	—	$	—
Reclassification of carrying amount of contracts and contract features that are market risk benefits	247		2,291		251		2,789
Adjustments for the cumulative effect of changes in nonperformance risk between contract issue date and Transition Date	(7)		(54)		(38)		(99)
Adjustments for the difference between the fair value of the MRB balance, excluding the cumulative effect of changes in nonperformance risk, and the historical carrying value	78		4,764		369		5,211
Direct and assumed MRB liabilities at January 1, 2021 (1)	$	318	$	7,001	$	582	$	7,901
Reinsured MRB assets at December 31, 2020	$	—	$	—	$	—	$	—
Reclassification of carrying amount of contracts and contract features that are market risk benefits	—		—		63		63
Adjustments for the difference between previous carrying amount and fair value measurement	—		—		(12)		$	(12)
Reinsured MRB assets at January 1, 2021 (1)	$	—	$	—	$	51	$	51

__________________

(1)Reinsured MRB assets are classified within premiums, reinsurance and other receivables on the consolidated balance sheets.

The Company’s MRB assets and MRB liabilities on the interim condensed consolidated balance sheets were as follows at:

	March 31, 2023						December 31, 2022
	Asset		Liability		Net		Asset		Liability		Net
	(In millions)
Asia - Retirement Assurance	$	—	$	221	$	221	$	—	$	226	$	226
MetLife Holdings - Annuities	108		3,469		3,361		153		3,378		3,225
Other	119		179		60		127		159		32
Total	$	227	$	3,869	$	3,642	$	280	$	3,763	$	3,483

Rollforwards

The following information about the direct and assumed liability for MRBs includes disaggregated rollforwards. The products grouped within these rollforwards were selected based upon common characteristics and valuations using similar inputs, judgments, assumptions and methodologies within a particular segment of the business.

Asia - Retirement Assurance

The Asia segment’s retirement assurance product in Japan offers a contract feature where the Company guarantees the greater of the account value or a return of premium accumulated at a guaranteed rate upon maturity. Information regarding this liability was as follows:

	Three Months Ended March 31,
	2023		2022
	(In millions)
Balance, beginning of period	$	226	$	277
Balance, beginning of period, before effect of cumulative changes in the instrument-specific credit risk	$	233	$	284
Attributed fees collected	1		1
Effect of changes in interest rates	7		(7)
Actual policyholder behavior different from expected behavior	(7)		2
Effect of foreign currency translation and other, net	(8)		(15)
Balance, end of period, before the cumulative effect of changes in the instrument-specific credit risk	226		265
Cumulative effect of changes in the instrument-specific credit risk	(5)		(8)
Balance, end of period	$	221	$	257

Information regarding the Company’s net amount at risk, excluding offsets from hedging, and the weighted-average attained age of the contractholder for the Asia segment’s retirement assurance products was as follows at:

	March 31,
	2023				2022
	In the Event of Death (1)		At Annuitization or Exercise of Other Living Benefits (2)		In the Event of Death (1)		At Annuitization or Exercise of Other Living Benefits (2)
	(Dollars in millions)
Net amount at risk	$	—	$	121	$	—	$	120
Weighted-average attained age of contractholders	N/A		58 years		N/A		57 years

__________________

(1)    For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts at the balance sheet date.

(2)    For benefits that are payable in the event of annuitization or exercise of other living benefits, the net amount at risk is generally defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates or to provide other living benefits. This amount represents the Company’s potential economic exposure in the event all contractholders were to annuitize or to exercise other living benefits at the balance sheet date.

Significant Methodologies and Assumptions

The Company issues certain retirement assurance products with guarantees that meet the definition of MRBs, which are measured, in aggregate, as one compound MRB, at estimated fair value, with changes in estimated fair value reported in net income, except for changes in nonperformance risk of the Company which are recorded in OCI.

The Company calculates the fair value of these MRBs, which is estimated as the present value of projected future benefits minus the present value of projected attributed fees, using actuarial and capital market assumptions including expectations concerning policyholder behavior. The calculation is based on in-force business, projecting future cash flows from the MRB over multiple risk neutral stochastic scenarios using observable risk-free rates.

Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. See Note 11 for additional information on significant unobservable inputs.

The valuation of these MRBs includes a nonperformance risk adjustment and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife, Inc.’s debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuing insurance subsidiaries as compared to MetLife, Inc.

Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions at annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees.

These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, impact the estimated fair value of the guarantees and affect net income, and changes in nonperformance risk of the Company affect OCI.

MetLife Holdings - Annuities

The MetLife Holdings segment’s variable annuity products offer contract features where the Company guarantees to the contractholder a minimum benefit, which includes guaranteed minimum death benefits (“GMDBs”) and living benefit guarantees. The GMDB contract features include return of premium, which provides a return of the purchase payment upon death, annual step-up and roll-up and step-up combinations. The living benefit guarantees contract features primarily include guaranteed minimum income benefits (“GMIBs”), which provide a minimum accumulation of purchase payments that can be annuitized to receive a monthly income stream, and guaranteed minimum withdrawal benefits (“GMWBs”), which provide a series of withdrawals, provided that withdrawals in a contract year do not exceed a contractual limit. This segment also assumes certain variable annuity guaranteed minimum benefits from a former operating joint venture in Japan. Information regarding MetLife Holdings annuities products (including assumed reinsurance) was as follows:

		Three Months Ended March 31,
		2023		2022
	(In millions)
Balance, beginning of period		$	3,225	$	5,929
Balance, beginning of period, before effect of cumulative changes in the instrument-specific credit risk		$	3,360	$	6,229
Attributed fees collected		98		100
Benefit payments		(11)		(10)
Effect of changes in interest rates		368		(1,362)
Effect of changes in capital markets		(358)		252
Effect of changes in equity index volatility		(132)		43
Actual policyholder behavior different from expected behavior		29		(18)
Effect of foreign currency translation and other, net (1)		232		(117)
Effect of changes in risk margin		3		(90)
Balance, end of period, before the cumulative effect of changes in the instrument-specific credit risk		3,589		5,027
Cumulative effect of changes in the instrument-specific credit risk		(229)		(207)
Effect of foreign currency translation on the cumulative instrument-specific credit risk		1		—
Balance, end of period		$	3,361	$	4,820

__________________

(1) Included is the covariance impact from aggregating the market observable inputs, mostly driven by interest rate and capital market volatility.

Information regarding the Company’s net amount at risk, excluding offsets from hedging, and the weighted-average attained age of the contractholder for the MetLife Holdings segment’s annuities products was as follows at:

	March 31,
	2023				2022
	In the Event of Death (1)		At Annuitization or Exercise of Other Living Benefits (2)		In the Event of Death (1)		At Annuitization or Exercise of Other Living Benefits (2)
	(Dollars in millions)
Net amount at risk (3)	$	3,619	$	897	$	2,017	$	762
Weighted-average attained age of contractholders	70 years		71 years		70 years		70 years

__________________

(1)    For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts at the balance sheet date.

(2)    For benefits that are payable in the event of annuitization or exercise of other living benefits, the net amount at risk is generally defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates or to provide other living benefits. This amount represents the Company’s potential economic exposure in the event all contractholders were to annuitize or to exercise other living benefits at the balance sheet date.

(3) Includes amounts for certain variable annuities with guarantees, which are also disclosed in “MetLife Holdings – Annuities” in Note 4, due to contracts recorded as PABs, along with related guarantees recorded as MRBs.

Significant Methodologies and Assumptions

The Company issues GMDBs, GMWBs, guaranteed minimum accumulation benefits (“GMABs”) and GMIBs that typically meet the definition of MRBs, which are measured, in aggregate, as one compound MRB, at estimated fair value separately from the variable annuity contract, with changes in estimated fair value reported in net income, except for changes in nonperformance risk of the Company which are recorded in OCI.

The Company calculates the fair value of these MRBs, which is estimated as the present value of projected future benefits minus the present value of projected attributed fees, using actuarial and capital market assumptions including expectations concerning policyholder behavior. The calculation is based on in-force business, projecting future cash flows from the MRB over multiple risk neutral stochastic scenarios using observable risk-free rates.

Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. See Note 11 for additional information on significant unobservable inputs.

The valuation of these MRBs includes a nonperformance risk adjustment and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife, Inc.’s debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuing insurance subsidiaries as compared to MetLife, Inc.

Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions at annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees.

These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, impact the estimated fair value of the guarantees and affect net income, and changes in nonperformance risk of the Company affect OCI.

Other

In addition to the disaggregated MRB product rollforwards above, the Company offers other products with guaranteed minimum benefit features across various segments. These MRBs are measured at estimated fair value, with changes in estimated fair value reported in net income, except for changes in nonperformance risk of the Company which are recorded in OCI. See Note 11 for additional information on significant unobservable inputs used in the fair value measurement of MRBs. Information regarding this liability was as follows:

	Three Months Ended March 31,
	2023		2022
	(In millions)
Balance, beginning of period	$	32	$	491
Balance, beginning of period, before effect of cumulative changes in the instrument-specific credit risk	$	24	$	539
Attributed fees collected	8		16
Benefit payments	(15)		—
Effect of changes in interest rates	61		(167)
Effect of changes in capital markets	(24)		28
Effect of changes in equity index volatility	(4)		11
Actual policyholder behavior different from expected behavior	(21)		(3)
Effect of foreign currency translation and other, net	34		(51)
Effect of changes in risk margin	—		(2)
Balance, end of period, before the cumulative effect of changes in the instrument-specific credit risk	63		371
Cumulative effect of changes in the instrument-specific credit risk	(3)		(34)
Effect of foreign currency translation on the cumulative instrument-specific credit risk	—		1
Balance, end of period	60		338
Less: Reinsurance recoverable	25		32
Balance, end of period, net of reinsurance	$	35	$	306