Market Risk Benefits (Tables)

6 Months Ended

Jun. 30, 2023

Insurance [Abstract]

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

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 statements of equity:

	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

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 cash flows:

	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

Market Risk Benefit

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

	June 30, 2023						December 31, 2022
	Asset		Liability		Net		Asset		Liability		Net
	(In millions)
Asia - Retirement Assurance	$	—	$	202	$	202	$	—	$	226	$	226
MetLife Holdings - Annuities	146		2,939		2,793		153		3,378		3,225
Other	133		118		(15)		127		159		32
Total	$	279	$	3,259	$	2,980	$	280	$	3,763	$	3,483

Market Risk Benefit, Activity

Information regarding this liability was as follows:

	Six Months Ended June 30,
	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		2
Benefit payments	(7)		—
Effect of changes in interest rates	3		(15)
Actual policyholder behavior different from expected behavior	—		(1)
Effect of changes in future expected policyholder behavior and other assumptions	—		5
Effect of foreign currency translation and other, net	(23)		(42)
Balance, end of period, before the cumulative effect of changes in the instrument-specific credit risk	207		233
Cumulative effect of changes in the instrument-specific credit risk	(5)		(10)
Effect of foreign currency translation on the cumulative instrument-specific credit risk	—		1
Balance, end of period	$	202	$	224

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:

	June 30,
	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	$	—	$	110	$	—	$	112
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.

Information regarding MetLife Holdings annuities products (including assumed reinsurance) was as follows:

		Six Months Ended June 30,
		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		193		198
Benefit payments		(21)		(21)
Effect of changes in interest rates		23		(2,561)
Effect of changes in capital markets		(661)		1,019
Effect of changes in equity index volatility		(109)		57
Actual policyholder behavior different from expected behavior		57		2
Effect of foreign currency translation and other, net (1)		131		(314)
Effect of changes in risk margin		(35)		(140)
Balance, end of period, before the cumulative effect of changes in the instrument-specific credit risk		2,938		4,469
Cumulative effect of changes in the instrument-specific credit risk		(150)		(212)
Effect of foreign currency translation on the cumulative instrument-specific credit risk		5		(1)
Balance, end of period		$	2,793	$	4,256

_________________

(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:

	June 30,
	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)	$	3,254	$	793	$	4,103	$	1,194
Weighted-average attained age of contractholders	70 years		70 years		69 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.

Information regarding this liability was as follows:

	Six Months Ended June 30,
	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	16		12
Benefit payments	(18)		—
Effect of changes in interest rates	(26)		(196)
Effect of changes in capital markets	(14)		17
Effect of changes in equity index volatility	(4)		4
Actual policyholder behavior different from expected behavior	(22)		(7)
Effect of foreign currency translation and other, net	17		(143)
Effect of changes in risk margin	(1)		(3)
Balance, end of period, before the cumulative effect of changes in the instrument-specific credit risk	(28)		223
Cumulative effect of changes in the instrument-specific credit risk	12		(25)
Effect of foreign currency translation on the cumulative instrument-specific credit risk	1		1
Balance, end of period	(15)		199
Less: Reinsurance recoverable	18		27
Balance, end of period, net of reinsurance	$	(33)	$	172