Segment Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Information

2. Segment Information

In the fourth quarter of 2023, MetLife reorganized from five segments into the following six segments to reflect changes in management’s responsibilities: Group Benefits, RIS, Asia, Latin America, EMEA and MetLife Holdings. The Group Benefits and RIS businesses were previously reported as the U.S. segment. These changes were applied retrospectively and did not have an impact on prior period total consolidated net income (loss) or adjusted earnings. In addition, the Company continues to report certain of its results of operations in Corporate & Other.

Group Benefits

The Group Benefits segment, based in the U.S., offers a broad range of products to corporations and their respective employees, other institutions and their respective members, as well as individuals. These products include term, variable and universal life insurance, dental, group and individual disability, vision and accident & health insurance.

RIS

The RIS segment, based in the U.S., offers a broad range of life and annuity-based insurance and investment products to corporations and their respective employees, other institutions and their respective members, as well as individuals. These products include stable value and pension risk transfer products, institutional income annuities, structured settlements, longevity reinsurance solutions, benefit funding solutions and capital markets investment products.

Asia

The Asia segment offers a broad range of products and services to both individuals and corporations, as well as to other institutions, and their respective employees, which include life insurance, accident & health insurance and retirement and savings.

Latin America

The Latin America segment offers a broad range of products to both individuals and corporations, as well as to other institutions, and their respective employees, which include life insurance, retirement and savings, accident & health insurance and credit insurance.

EMEA

The EMEA segment offers products to individuals, corporations, other institutions, and their respective employees, which include life insurance, retirement and savings, accident & health insurance and credit insurance.

MetLife Holdings

The MetLife Holdings segment consists of operations relating to products and businesses that the Company no longer actively markets in the United States. These include variable, universal, term and whole life insurance, variable, fixed and index-linked annuities and long-term care insurance. It also includes an in-force block of assumed variable annuity guarantees from a third party.

Corporate & Other

Corporate & Other contains various start-up, developing and run-off businesses. Also included in Corporate & Other are: the excess capital, as well as certain charges and activities, not allocated to the segments (including external integration and disposition costs, internal resource costs for associates committed to acquisitions and dispositions and enterprise-wide strategic initiatives), interest expense related to the majority of the Company’s outstanding debt, expenses associated with certain legal proceedings and income tax audit issues, the elimination of intersegment amounts (which generally relate to investment expenses and intersegment loans bearing interest rates commensurate with related borrowings), and the Company’s investment management business (through which the Company provides public fixed income, private capital and real estate investment solutions to institutional investors worldwide).

Financial Measures and Segment Accounting Policies

Adjusted earnings is used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings is also the Company’s GAAP measure of segment performance and is reported below. Adjusted earnings should not be viewed as a substitute for net income (loss). The Company believes the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business.

The adoption of LDTI impacted the Company’s calculation of adjusted earnings. With the adoption of LDTI, the measurement model was simplified for DAC and VOBA, and most embedded derivatives were reclassified as MRBs. As a result, the Company updated its calculation of adjusted earnings to remove certain adjustments related to the amortization of DAC, VOBA and related intangibles and adjusted for changes in measurement of certain guarantees. Under LDTI, adjusted earnings excludes changes in fair value associated with MRBs, changes in discount rates on certain annuitization guarantees, losses at contract inception for certain single premium business, and asymmetrical accounting associated with in-force reinsurance. All periods presented herein reflect the updated calculation of adjusted earnings.

Adjusted earnings is defined as adjusted revenues less adjusted expenses, net of income tax.

These financial measures focus on the Company’s primary businesses principally by excluding the impact of (i) market volatility which could distort trends, (ii) asymmetrical and non-economic accounting, and (iii) revenues and costs related to divested businesses, non-core products and certain entities required to be consolidated under GAAP. Also, these measures exclude results of discontinued operations under GAAP.

Market volatility can have a significant impact on the Company’s financial results. Adjusted earnings excludes net investment gains (losses), net derivative gains (losses), MRB remeasurement gains (losses) and goodwill impairments. Further, policyholder benefits and claims exclude (i) changes in the discount rate on certain annuitization guarantees accounted for as additional liabilities and (ii) market value adjustments.

Asymmetrical and non-economic accounting adjustments are made to the line items indicated in calculating adjusted earnings:

•Net investment income includes earned income on derivatives and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment.

•Other revenues include settlements of foreign currency earnings hedges and exclude asymmetrical accounting associated with in-force reinsurance.

•Policyholder benefits and claims excludes (i) amortization of basis adjustments associated with de-designated fair value hedges of future policy benefits, (ii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments, (iii) asymmetrical accounting associated with in-force reinsurance, and (iv) non-economic losses incurred at contract inception for certain single premium annuity business. These losses are amortized into adjusted earnings within policyholder benefits and claims over the estimated lives of the contracts.

•Interest credited to PABs excludes amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass-through adjustments and asymmetrical accounting associated with in-force reinsurance.

Divested businesses are those that have been or will be sold or exited by MetLife but do not meet the discontinued operations criteria under GAAP. Divested businesses also include the net impact of transactions with exited businesses that have been eliminated in consolidation under GAAP and costs relating to businesses that have been or will be sold or exited by MetLife that do not meet the criteria to be included in results of discontinued operations under GAAP.

Other adjustments are made to the line items indicated in calculating adjusted earnings:

•Net investment income and interest credited to PABs excludes certain amounts related to contractholder-directed equity securities.

•Other revenues include fee revenue on synthetic guaranteed interest contracts (“GICs”) accounted for as freestanding derivatives.

•Other revenues exclude and other expenses include fees received in connection with services provided under transition service agreements.

•Other expenses exclude (i) implementation of new insurance regulatory requirements and other costs, and (ii) acquisition, integration and other related costs. Other expenses include (i) deductions for net income attributable to noncontrolling interests, and (ii) benefits accrued on synthetic GICs accounted for as freestanding derivatives.

Adjusted earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for during the measurement period under GAAP business combination accounting guidance.

The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax rate, which could differ from the Company’s effective tax rate. Additionally, the provision for income tax (expense) benefit also includes the impact related to the timing of certain tax credits, as well as certain tax reforms.

Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for the years ended December 31, 2023, 2022 and 2021 and at December 31, 2023 and 2022. The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for adjusted earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below.

Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. The economic capital model accounts for the unique and specific nature of the risks inherent in the Company’s business.

The Company’s economic capital model, coupled with considerations of local capital requirements, aligns segment allocated equity with emerging standards and consistent risk principles. The model applies statistics-based risk evaluation principles to the material risks to which the Company is exposed. These consistent risk principles include calibrating required economic capital shock factors to a specific confidence level and time horizon while applying an industry standard method for the inclusion of diversification benefits among risk types. The Company’s management is responsible for the ongoing production and enhancement of the economic capital model and reviews its approach periodically to ensure that it remains consistent with emerging industry practice standards. The adoption of LDTI resulted in changes to the economic capital model. The changes related to this adoption do not represent a change in the composition of the segments and, in accordance with GAAP guidance for segment reporting, the Company will apply the changes to the economic capital model prospectively and did not update the economic model for 2022 and 2021.

Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company’s consolidated net investment income, net income (loss) or adjusted earnings.

Net investment income is based upon the actual results of each segment’s specifically identifiable investment portfolios adjusted for allocated equity. With the adoption of LDTI, net investment income was reallocated for certain segments to reflect the impact of the change to certain liability balances, with no impact to consolidated net investment income. Other costs are allocated to each of the segments based upon: (i) a review of the nature of such costs; (ii) time studies analyzing the amount of employee compensation costs incurred by each segment; and (iii) cost estimates included in the Company’s product pricing.

Year Ended December 31, 2023		Group Benefits		RIS		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total		Adjustments		Total Consolidated
	(In millions)
Revenues
Premiums		$	21,558	$	8,248	$	5,251	$	4,287	$	2,016	$	2,881	$	42	$	44,283	$	—	$	44,283
Universal life and investment-type product policy fees		878		313		1,632		1,398		298		632		1		5,152		—		5,152
Net investment income (1)		1,301		7,803		3,957		1,644		197		4,494		353		19,749		159		19,908
Other revenues		1,493		271		86		42		32		195		412		2,531		(5)		2,526
Net investment gains (losses)		—		—		—		—		—		—		—		—		(2,824)		(2,824)
Net derivative gains (losses)		—		—		—		—		—		—		—		—		(2,140)		(2,140)
Total revenues		25,230		16,635		10,926		7,371		2,543		8,202		808		71,715		(4,810)		66,905
Expenses
Policyholder benefits and claims and policyholder dividends		19,164		11,269		4,333		4,094		984		5,350		23		45,217		(5)		45,212
Policyholder liability remeasurement (gains) losses		(28)		(131)		105		(25)		(3)		37		—		(45)		—		(45)
Market risk benefit remeasurement (gains) losses		—		—		—		—		—		—		—		—		(994)		(994)
Interest credited to policyholder account balances		193		2,887		2,301		426		72		730		—		6,609		1,251		7,860
Capitalization of DAC		(20)		(176)		(1,583)		(651)		(457)		(22)		(8)		(2,917)		—		(2,917)
Amortization of DAC and VOBA		26		49		794		468		348		258		9		1,952		—		1,952
Amortization of negative VOBA		—		—		(22)		—		(4)		—		—		(26)		—		(26)
Interest expense on debt		2		14		—		11		—		13		1,005		1,045		—		1,045
Other expenses		3,796		565		3,158		1,911		1,260		927		946		12,563		93		12,656
Total expenses		23,133		14,477		9,086		6,234		2,200		7,293		1,975		64,398		345		64,743
Provision for income tax expense (benefit)		442		450		558		297		78		176		(407)		1,594		(1,034)		560
Adjusted earnings		$	1,655	$	1,708	$	1,282	$	840	$	265	$	733	$	(760)	5,723
Adjustments to:
Total revenues																(4,810)
Total expenses																(345)
Provision for income tax (expense) benefit																1,034
Net income (loss)																$	1,602			$	1,602

At December 31, 2023	Group Benefits		RIS		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total
	(In millions)
Total assets (1),(2)	$	36,715	$	218,587	$	157,206	$	69,177	$	18,596	$	148,524	$	38,779	$	687,584
Separate account assets	$	1,159	$	53,093	$	9,187	$	41,320	$	4,327	$	35,548	$	—	$	144,634
Separate account liabilities	$	1,159	$	53,093	$	9,187	$	41,320	$	4,327	$	35,548	$	—	$	144,634

__________________

(1)Net investment income from equity method invested assets represents 0%, 1%, 4%, 1% and 2% of segment net investment income, and equity method invested assets represent 1%, 3%, 6%, 0% and 4% of segment total assets for the Group Benefits, RIS, Asia, Latin America and MetLife Holdings segments, respectively.

(2)Asia segment total assets includes $132.2 billion of assets from the Company’s Japan operations which represents 19% of Company total assets.

Year Ended December 31, 2022	Group Benefits		RIS		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total		Adjustments		Total Consolidated
	(In millions)
Revenues
Premiums	$	21,051	$	13,619	$	5,563	$	3,224	$	1,962	$	3,066	$	(16)	$	48,469	$	41	$	48,510
Universal life and investment-type product policy fees	855		303		1,693		1,175		284		902		2		5,214		11		5,225
Net investment income (1)	1,136		6,204		3,909		1,593		160		4,914		273		18,189		(2,273)		15,916
Other revenues	1,360		392		90		39		35		155		396		2,467		163		2,630
Net investment gains (losses)	—		—		—		—		—		—		—		—		(1,260)		(1,260)
Net derivative gains (losses)	—		—		—		—		—		—		—		—		(2,251)		(2,251)
Total revenues	24,402		20,518		11,255		6,031		2,441		9,037		655		74,339		(5,569)		68,770
Expenses
Policyholder benefits and claims and policyholder dividends	19,076		16,163		4,564		3,320		976		5,636		(6)		49,729		484		50,213
Policyholder liability remeasurement (gains) losses	7		(36)		69		(21)		(6)		101		—		114		—		114
Market risk benefit remeasurement (gains) losses	—		—		—		—		—		—		—		—		(3,674)		(3,674)
Interest credited to policyholder account balances	143		1,914		2,003		335		71		813		—		5,279		(1,385)		3,894
Capitalization of DAC	(18)		(113)		(1,530)		(494)		(411)		(29)		(8)		(2,603)		(11)		(2,614)
Amortization of DAC and VOBA	26		40		745		410		323		270		9		1,823		8		1,831
Amortization of negative VOBA	—		—		(24)		—		(5)		—		—		(29)		—		(29)
Interest expense on debt	1		8		—		12		—		8		909		938		—		938
Other expenses	3,478		484		3,153		1,520		1,171		953		709		11,468		265		11,733
Total expenses	22,713		18,460		8,980		5,082		2,119		7,752		1,613		66,719		(4,313)		62,406
Provision for income tax expense (benefit)	357		423		658		220		73		254		(343)		1,642		(580)		1,062
Adjusted earnings	$	1,332	$	1,635	$	1,617	$	729	$	249	$	1,031	$	(615)	5,978
Adjustments to:
Total revenues															(5,569)
Total expenses															4,313
Provision for income tax (expense) benefit															580
Net income (loss)															$	5,302			$	5,302

At December 31, 2022	Group Benefits		RIS		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total
	(In millions)
Total assets (2)	$	35,849	$	216,370	$	148,305	$	63,687	$	16,860	$	148,749	$	33,252	$	663,072
Separate account assets	$	990	$	60,040	$	8,292	$	39,428	$	3,314	$	33,974	$	—	$	146,038
Separate account liabilities	$	990	$	60,040	$	8,292	$	39,428	$	3,314	$	33,974	$	—	$	146,038

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(1)Net investment income from equity method invested assets represents 1%, 6%, 12%, 3% and 6% of segment net investment income for the Group Benefits, RIS, Asia, Latin America and MetLife Holdings segments, respectively.

(2)Asia segment total assets includes $125.1 billion of assets from the Company’s Japan operations which represents 19% of Company total assets.

Year Ended December 31, 2021	Group Benefits		RIS		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total		Adjustments		Total Consolidated
	(In millions)
Revenues
Premiums	$	20,475	$	5,023	$	6,421	$	2,609	$	2,274	$	3,333	$	35	$	40,170	$	982	$	41,152
Universal life and investment-type product policy fees	829		311		1,626		1,140		387		923		2		5,218		26		5,244
Net investment income (1)	1,160		6,888		5,052		1,271		215		6,385		309		21,280		115		21,395
Other revenues	1,239		299		73		41		47		257		420		2,376		243		2,619
Net investment gains (losses)	—		—		—		—		—		—		—		—		1,543		1,543
Net derivative gains (losses)	—		—		—		—		—		—		—		—		(3,257)		(3,257)
Total revenues	23,703		12,521		13,172		5,061		2,923		10,898		766		69,044		(348)		68,696
Expenses
Policyholder benefits and claims and policyholder dividends	19,807		7,330		5,251		3,155		1,196		6,118		34		42,891		1,107		43,998
Policyholder liability remeasurement (gains) losses	(5)		(31)		(152)		(33)		32		16		—		(173)		1		(172)
Market risk benefit remeasurement (gains) losses	—		—		—		—		—		—		—		—		(1,237)		(1,237)
Interest credited to policyholder account balances	127		1,550		1,994		249		86		840		—		4,846		725		5,571
Capitalization of DAC	(19)		(95)		(1,601)		(406)		(469)		(31)		(11)		(2,632)		(119)		(2,751)
Amortization of DAC and VOBA	26		37		786		372		361		320		9		1,911		126		2,037
Amortization of negative VOBA	—		—		(28)		—		(7)		—		—		(35)		—		(35)
Interest expense on debt	1		6		—		5		—		5		902		919		1		920
Other expenses	3,177		455		3,388		1,385		1,324		992		562		11,283		564		11,847
Total expenses	23,114		9,252		9,638		4,727		2,523		8,260		1,496		59,010		1,168		60,178
Provision for income tax expense (benefit)	126		678		1,017		60		94		535		(574)		1,936		(294)		1,642
Adjusted earnings	$	463	$	2,591	$	2,517	$	274	$	306	$	2,103	$	(156)	8,098
Adjustments to:
Total revenues															(348)
Total expenses															(1,168)
Provision for income tax (expense) benefit															294
Net income (loss)															$	6,876			$	6,876

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(1)Net investment income from equity method invested assets represents 5%, 26%, 30%, 7% and 26% of segment net investment income for the Group Benefits, RIS, Asia, Latin America and MetLife Holdings segments, respectively.

The following table presents total premiums, universal life and investment-type product policy fees and other revenues by major product groups of the Company’s segments, as well as Corporate & Other:

	Years Ended December 31,
	2023		2022		2021
	(In millions)
Life insurance	$	22,111	$	21,728	$	22,742
Accident & health insurance	18,014		17,441		17,367
Annuities	10,193		15,657		6,394
Other	1,643		1,539		2,512
Total	$	51,961	$	56,365	$	49,015

The following table presents total premiums, universal life and investment-type product policy fees and other revenues associated with the Company’s U.S. and foreign operations:

	Years Ended December 31,
	2023		2022		2021
	(In millions)
U.S.	$	36,869	$	42,250	$	34,191
Japan	5,020		5,460		6,183
Other	10,072		8,655		8,641
Total	$	51,961	$	56,365	$	49,015

Revenues derived from one RIS customer were $8.1 billion for the year ended December 31, 2022, which represented 14% of consolidated premiums, universal life and investment-type product policy fees and other revenues. The revenue was from a single premium received for a pension risk transfer. Revenues derived from any single customer did not exceed 10% of consolidated premiums, universal life and investment-type product policy fees and other revenues for the years ended December 31, 2023 or 2021.