Organization, Consolidation and Presentation of Financial Statements (Tables)

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Market Data and Spreads Applied to Determine Upper-Medium Grade Discount Rate

The table below summarizes the market data and spreads applied to determine the upper-medium grade discount rate for products issued in key jurisdictions that are included in the disaggregated rollforwards in Note 3.


Disaggregated rollforwards	Jurisdiction	Observable base curve	Spread applied to derive upper-medium grade discount rate
U.S. Annuities, MetLife Holdings Long-term Care	United States	Single A curve	No spread applied as there is an observable single A base discount curve.


Asia - Whole and Term Life & Endowments, Asia - Accident & Health	Japan	Japanese government bond yield	A spread is applied based on local corporate bonds whose credit is deemed to approximate single A bonds. The spread is based on weighted average bond yields up to 10 years and held flat for years 10 to 30.
	Korea	Korean government bond yield	A spread is applied based on local corporate bonds whose credit is deemed to approximate single A bonds. The spread is based on weighted average bond yields up to five years and held flat for years five to 30.
Latin America Fixed Annuities	Chile	Chilean government bond yield	A blended spread is applied based on local corporate bonds whose credit is deemed to approximate single A bonds. The spread is based on weighted average bond yields up to 10 years and held flat for years 10 to 25.
	Mexico	Mexican government bond yield	There are few public corporate bonds denominated in Mexican pesos with a credit rating higher than sovereign bonds. Therefore, a spread is applied based on local corporate bond yields to approximate a single A equivalent bond.

Accounting Standards Update and Change in Accounting Principle

The following table presents a summary of the Transition Date impacts associated with the implementation of LDTI to the consolidated balance sheet:


	Premiums, Reinsurance and Other Receivables		Deferred Policy Acquisition Costs and Value of Business Acquired		Other Assets		Future Policy Benefits		Policyholder Account Balances		Other Policy-related Balances		Market Risk Benefit Liabilities		Deferred Income Tax Liability		Retained Earnings		Accumulated Other Comprehensive Income (Loss)
	(In millions)
Balances as reported, December 31, 2020	$	17,870	$	16,389	$	11,685	$	206,656	$	205,176	$	17,101	$	—	$	11,008	$	36,491	$	18,072
Reclassification of carrying amount of contracts and contract features that are market risk benefits	(59)		—		—		(1,818)		(958)		(72)		2,789		—		—		—
Adjustments for the difference between previous carrying amount and fair value measurement for market risk benefits	(12)		—		—		—		—		—		5,112		(1,079)		(4,121)		76
Removal of related amounts in accumulated other comprehensive income	—		4,007		42		(7,911)		—		1,043		—		2,405		—		8,512
Adjustment of future policy benefits to remeasure cohorts where net premiums exceed gross premiums under the modified retrospective approach	32		—		—		719		—		—		—		(160)		(527)		—
Effect of remeasurement of future policy benefits to an upper-medium grade discount rate	351		—		—		34,119		—		—		—		(7,438)		—		(26,330)
Adjustments for the cumulative effect of adoption on additional insurance assets and liabilities	19		—		—		83		—		—		—		(13)		(42)		(9)
Other balance sheet reclassifications and adjustments upon adoption of the LDTI standard	(32)		21		15		(7,490)		7,519		(40)		—		—		23		(6)
Balances as adjusted, January 1, 2021	$	18,169	$	20,417	$	11,742	$	224,358	$	211,737	$	18,032	$	7,901	$	4,723	$	31,824	$	315

The following table presents the effects of the retrospective application of the adoption of the new LDTI accounting guidance to the Company’s previously reported consolidated balance sheet:


	December 31, 2022
		As Previously Reported		Adoption Adjustment		Post Adoption
		(In millions)
Assets
Premiums, reinsurance and other receivables		$	17,461	$	(97)	$	17,364
Market risk benefits		$	—	$	280	$	280
Deferred policy acquisition costs and value of business acquired		$	22,983	$	(3,330)	$	19,653
Deferred income tax asset		$	2,830	$	(391)	$	2,439
Other assets		$	11,026	$	(1)	$	11,025
Total assets		$	666,611	$	(3,539)	$	663,072

Liabilities
Future policy benefits		$	204,228	$	(17,006)	$	187,222
Policyholder account balances		$	203,082	$	7,515	$	210,597
Market risk benefits		$	—	$	3,763	$	3,763
Other policy-related balances		$	19,651	$	(1,227)	$	18,424
Deferred income tax liability		$	325	$	625	$	950
Other liabilities		$	25,980	$	(47)	$	25,933
Total liabilities		$	639,324	$	(6,377)	$	632,947

Equity
Retained earnings		$	41,953	$	(1,621)	$	40,332
Accumulated other comprehensive income (loss)		$	(27,083)	$	4,462	$	(22,621)
Total MetLife, Inc.'s stockholders' equity		$	27,040	$	2,841	$	29,881
Noncontrolling interests		$	247	$	(3)	$	244
Total equity		$	27,287	$	2,838	$	30,125
Total liabilities and equity		$	666,611	$	(3,539)	$	663,072

The following table presents the effects of the retrospective application of the adoption of the new LDTI accounting guidance to the Company’s previously reported interim condensed consolidated statement of operations and comprehensive income (loss):


	Three Months Ended June 30, 2022						Six Months Ended June 30, 2022
	As Previously Reported		Adoption Adjustment		Post Adoption		As Previously Reported		Adoption Adjustment		Post Adoption
	(In millions)
Revenues
Premiums	$	11,721	$	(165)	$	11,556	$	22,492	$	(319)	$	22,173
Universal life and investment-type product policy fees	$	1,516	$	(144)	$	1,372	$	2,934	$	(250)	$	2,684
Other revenues	$	616	$	(1)	$	615	$	1,276	$	(1)	$	1,275
Net investment gains (losses)	$	(685)	$	3	$	(682)	$	(1,203)	$	4	$	(1,199)
Net derivative gains (losses)	$	(1,195)	$	225	$	(970)	$	(2,054)	$	133	$	(1,921)
Total revenues	$	15,556	$	(82)	$	15,474	$	31,312	$	(433)	$	30,879
Expenses
Policyholder benefits and claims	$	11,790	$	(175)	$	11,615	$	22,983	$	(194)	$	22,789
Policyholder liability remeasurement (gains) losses	$	—	$	(1)	$	(1)	$	—	$	(42)	$	(42)
Market risk benefits remeasurement (gains) losses	$	—	$	(757)	$	(757)	$	—	$	(2,197)	$	(2,197)
Interest credited to policyholder account balances	$	492	$	35	$	527	$	1,122	$	31	$	1,153
Policyholder dividends	$	193	$	1	$	194	$	391	$	2	$	393
Other expenses	$	3,083	$	(175)	$	2,908	$	6,103	$	(243)	$	5,860
Total expenses	$	15,558	$	(1,072)	$	14,486	$	30,599	$	(2,643)	$	27,956
Income (loss) before provision for income tax	$	(2)	$	990	$	988	$	713	$	2,210	$	2,923
Provision for income tax expense (benefit)	$	(140)	$	213	$	73	$	(99)	$	468	$	369
Net income (loss)	$	138	$	777	$	915	$	812	$	1,742	$	2,554
Net income (loss) attributable to noncontrolling interests	$	6	$	(1)	$	5	$	11	$	(1)	$	10
Net income (loss) attributable to MetLife, Inc.	$	132	$	778	$	910	$	801	$	1,743	$	2,544
Net income (loss) available to MetLife, Inc.'s common shareholders	$	103	$	778	$	881	$	709	$	1,743	$	2,452
Comprehensive income (loss)	$	(15,323)	$	8,175	$	(7,148)	$	(27,482)	$	14,378	$	(13,104)
Comprehensive income (loss) attributable to noncontrolling interests, net of income tax	$	5	$	(1)	$	4	$	8	$	(1)	$	7
Comprehensive income (loss) attributable to MetLife, Inc.	$	(15,328)	$	8,176	$	(7,152)	$	(27,490)	$	14,379	$	(13,111)
Net income (loss) available to MetLife, Inc.'s common shareholders per common share:
Basic	$	0.13	$	0.96	$	1.09	$	0.87	$	2.13	$	3.00
Diluted	$	0.13	$	0.95	$	1.08	$	0.86	$	2.12	$	2.98


	As Previously Reported		Adoption Adjustment		Post Adoption
	(In millions)
Retained Earnings
Balance at December 31, 2021	$	41,197	$	(4,366)	$	36,831
Net income (loss)	$	669	$	965	$	1,634
Balance at March 31, 2022	$	41,406	$	(3,401)	$	38,005
Net income (loss)	$	132	$	778	$	910
Balance at June 30, 2022	$	41,101	$	(2,623)	$	38,478
Balance at December 31, 2022	$	41,953	$	(1,621)	$	40,332
Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2021	$	10,919	$	(13,370)	$	(2,451)
Other comprehensive income (loss), net of income tax	$	(12,831)	$	5,238	$	(7,593)
Balance at March 31, 2022	$	(1,912)	$	(8,132)	$	(10,044)
Other comprehensive income (loss), net of income tax	$	(15,460)	$	7,398	$	(8,062)
Balance at June 30, 2022	$	(17,372)	$	(734)	$	(18,106)
Balance at December 31, 2022	$	(27,083)	$	4,462	$	(22,621)
Total MetLife, Inc.’s Stockholders’ Equity
Balance at December 31, 2021	$	67,482	$	(17,736)	$	49,746
Balance at March 31, 2022	$	53,965	$	(11,533)	$	42,432
Balance at June 30, 2022	$	37,101	$	(3,357)	$	33,744
Balance at December 31, 2022	$	27,040	$	2,841	$	29,881
Noncontrolling Interests
Balance at December 31, 2021	$	267	$	—	$	267
Change in equity of noncontrolling interests	$	2	$	(1)	$	1
Net income (loss)	$	5	$	—	$	5
Other comprehensive income (loss), net of income tax	$	(2)	$	—	$	(2)
Balance at March 31, 2022	$	272	$	(1)	$	271
Change in equity of noncontrolling interests	$	(11)	$	1	$	(10)
Net income (loss)	$	6	$	(1)	$	5

Balance at June 30, 2022	$	266	$	(1)	$	265
Balance at December 31, 2022	$	247	$	(3)	$	244
Total Equity
Balance at December 31, 2021	$	67,749	$	(17,736)	$	50,013
Balance at March 31, 2022	$	54,237	$	(11,534)	$	42,703
Balance at June 30, 2022	$	37,367	$	(3,358)	$	34,009
Balance at December 31, 2022	$	27,287	$	2,838	$	30,125


	Six Months Ended June 30, 2022
	As Previously Reported		Adoption Adjustment		Post Adoption
	(In millions)
Cash flows from operating activities














Net cash provided by (used in) operating activities	$	6,392	$	41	$	6,433
Cash flows from financing activities
Policyholder account balances - deposits	$	56,109	$	277	$	56,386
Policyholder account balances - withdrawals	$	(52,428)	$	(318)	$	(52,746)
Net cash provided by (used in) financing activities	$	(7,182)	$	(41)	$	(7,223)


	U.S. Annuities		Asia Whole and Term Life & Endowments		Asia Accident & Health		Latin America Fixed Annuities		MetLife Holdings Long-Term Care		MetLife Holdings Participating Life		Other Long- Duration		Short-Duration and Other		Total
	(In millions)
Balance, future policy benefits, at December 31, 2020	$	66,030	$	17,990	$	16,330	$	8,393	$	14,281	$	51,148	$	19,128	$	13,356	$	206,656
Removal of additional insurance liabilities for separate presentation (1)	(4)		—		—		—		—		—		(6,561)		—		(6,565)
Subtotal - pre-adoption balance, excluding additional liabilities	66,026		17,990		16,330		8,393		14,281		51,148		12,567		13,356		200,091
Removal of related amounts in AOCI	(5,914)		—		—		(295)		(1,210)		—		(492)		—		(7,911)
Reclassification of carrying amount of contracts and contract features that are market risk benefits	—		—		—		—		—		—		(176)		—		(176)
Adjustment of future policy benefits to remeasure cohorts where net premiums exceed gross premiums under the modified retrospective approach	337		51		154		121		—		—		56		—		719
Effect of remeasurement of future policy benefits to an upper-medium grade discount rate	15,834		4,386		285		2,869		8,270		—		2,475		—		34,119
Other balance sheet reclassifications and adjustments upon adoption of the LDTI standard	(7,416)		4		47		(1)		—		—		(124)		—		(7,490)
Removal of remeasured deferred profit liabilities for separate presentation (1)	(2,897)		(225)		(691)		(570)		—		—		(275)		—		(4,658)
Balance, traditional and limited-payment contracts, at January 1, 2021	$	65,970	$	22,206	$	16,125	$	10,517	$	21,341	$	51,148	$	14,031	$	13,356	$	214,694

Balance, deferred profit liabilities at January 1, 2021	$	2,897	$	225	$	691	$	570	$	—	$	—	$	275	$	—	$	4,658

Balance, ceded recoverables on traditional and limited-payment contracts at December 31, 2020	$	203	$	—	$	32	$	—	$	—			$	1,052			$	1,287
Effect of remeasurement of the ceded recoverable to an upper-medium grade discount rate	135		(15)		(66)		—		—				297				351
Adjustments for loss contracts (with net premiums in excess of gross premiums) under the modified retrospective approach	—		—		—		—		—				32				32
Adjustments for the cumulative effect of adoption on ceded recoverables on traditional and limited-payment contract	6		—		(2)		—		—				10				14
Balance ceded recoverables on traditional and limited-payment contracts at January 1, 2021	$	344	$	(15)	$	(36)	$	—	$	—			$	1,391			$	1,684

__________________

(1) LDTI requires separate disaggregated rollforwards of the additional insurance liabilities balance and the traditional and limited-payment FPBs. Therefore, the additional insurance liabilities and DPL amounts that are recorded in the FPB financial statement line item are removed to derive the opening balance of traditional and limited-payment contracts at the Transition Date.


	Asia Variable Life		Asia Universal and Variable Universal Life		MetLife Holdings Universal and Variable Universal Life		Other Long- Duration		Total
	(In millions)
Additional insurance liabilities at December 31, 2020	$	1,824	$	788	$	1,976	$	1,977	$	6,565
Reclassification of carrying amount of contracts and contract features that are market risk benefits	—		—		—		(1,642)		(1,642)
Adjustments for the cumulative effect of adoption on additional insurance liabilities	—		—		38		45		83
Additional insurance liabilities at January 1, 2021	$	1,824	$	788	$	2,014	$	380	$	5,006

Ceded recoverables on additional insurance liabilities at December 31, 2020	$	—	$	—	$	719	$	8	$	727
Reclassification of carrying amount of contracts and contract features that are reinsured market risk benefits	—		—		—		(8)		(8)
Adjustments for the cumulative effect of adoption on ceded recoverables on additional insurance liabilities	—		—		1		—		1
Ceded recoverables on additional insurance liabilities at January 1, 2021	$	—	$	—	$	720	$	—	$	720

Balance, traditional and limited-payment contracts, at January 1, 2021									$	214,694
Balance, deferred profit liabilities at January 1, 2021									4,658
Balance, additional insurance liabilities at January 1, 2021									5,006
Total future policy benefits at January 1, 2021									$	224,358

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 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 transition adjustments related to DAC, VOBA, UREV and negative VOBA, as described in Note 1, were as follows at the Transition Date:


	U.S.		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total
	(In millions)
DAC:
Balance at December 31, 2020	$	409	$	7,432	$	1,344	$	1,551	$	2,679	$	31	$	13,446
Removal of related amounts in AOCI	—		2,309		50		—		1,621		—		3,980
Other adjustments upon adoption of the LDTI standard	—		—		—		14		11		—		25
Balance at January 1, 2021	$	409	$	9,741	$	1,394	$	1,565	$	4,311	$	31	$	17,451

VOBA:
Balance at December 31, 2020	$	25	$	1,901	$	748	$	236	$	33	$	—	$	2,943
Removal of related amounts in AOCI	—		14		8		—		5		—		27
Other adjustments upon adoption of the LDTI standard	—		—		—		(4)		—		—		(4)
Balance at January 1, 2021	$	25	$	1,915	$	756	$	232	$	38	$	—	$	2,966

UREV:
Balance at December 31, 2020	$	42	$	587	$	740	$	556	$	188	$	—	$	2,113
Removal of related amounts in AOCI	—		1,029		95		(81)		—		—		1,043
Other adjustments upon adoption of the LDTI standard	—		—		—		7		—		—		7
Balance at January 1, 2021	$	42	$	1,616	$	835	$	482	$	188	$	—	$	3,163

Negative VOBA:
Balance at December 31, 2020													$	738
Reclassification of carrying amount of contracts and contract features that are market risk benefits													(72)
Balance at January 1, 2021													$	666