Long-term and Short-term Debt

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Long-term and Short-term Debt

16. Long-term and Short-term Debt

Long-term and short-term debt outstanding was as follows:

								December 31,
	Interest Rates (1)							2023						2022
	Range				Maturity			Face Value		Unamortized Discount and Issuance Costs		Carrying Value		Face Value		Unamortized Discount and Issuance Costs		Carrying Value
								(In millions)
Senior notes	0.50	%	-	6.50%	2024	-	2054	$	14,622	$	(106)	$	14,516	$	13,671	$	(83)	$	13,588
Surplus notes	7.63	%	-	7.88%	2024	-	2025	507		—		507		507		(1)		506
Other notes	2.03	%	-	8.43%	2024	-	2028	495		(2)		493		500		(3)		497
Financing lease obligations								32		—		32		56		—		56
Total long-term debt								15,656		(108)		15,548		14,734		(87)		14,647
Total short-term debt								119		—		119		175		—		175
Total								$	15,775	$	(108)	$	15,667	$	14,909	$	(87)	$	14,822

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(1)Range of interest rates are for the year ended December 31, 2023.

The aggregate maturities of long-term debt at December 31, 2023 for the next five years and thereafter are $1.8 billion in 2024, $1.3 billion in 2025, $180 million in 2026, $52 million in 2027, $348 million in 2028 and $11.9 billion thereafter.

Financing lease obligations are collateralized and rank highest in priority, followed by unsecured senior notes and other notes, and then subordinated debt which consists of junior subordinated debt securities (see Note 18). Payments of interest and principal on the Company’s surplus notes, which are subordinate to all other obligations of the operating company issuing the notes and are senior to obligations of MetLife, Inc., may be made only with the prior approval of the insurance department of the state of domicile of the issuer of the notes. The Company’s collateral financing arrangement (see Note 17) is supported by surplus notes of a subsidiary and, accordingly, has priority consistent with surplus notes.

Certain of the Company’s debt instruments and committed facilities, as well as its $3.0 billion unsecured revolving credit facility (the “Credit Facility”), contain various administrative, reporting, legal and financial covenants. The Company believes it was in compliance with all applicable financial covenants at December 31, 2023.

Senior Notes

In July 2023, MetLife, Inc. issued $1.0 billion of senior notes due July 2033 which bear interest at a fixed rate of 5.375%, payable semi-annually. In connection with the issuance, MetLife, Inc. incurred $6 million of related costs which will be amortized over the term of the senior notes.

In February 2023, MetLife, Inc. redeemed for cash and canceled $1.0 billion aggregate principal amount of its outstanding 4.368% senior notes due September 2023.

In January 2023, MetLife, Inc. issued $1.0 billion of senior notes due January 2054 which bear interest at a fixed rate of 5.250%, payable semi-annually. In connection with the issuance, MetLife, Inc. incurred $11 million of related costs which will be amortized over the term of the senior notes.

In July 2022, MetLife, Inc. issued $1.0 billion of senior notes due July 2052 which bear interest at a fixed rate of 5.00%, payable semi-annually. In connection with the issuance, MetLife, Inc. incurred $11 million of related costs which will be amortized over the term of the senior notes.

In July 2021, MetLife, Inc. redeemed for cash and canceled $500 million aggregate principal amount of its outstanding 3.048% senior notes due December 2022. The Company recorded a premium of $17 million paid in excess of the debt principal and accrued and unpaid interest to other expenses for the year ended December 31, 2021.

Short-term Debt

Short-term debt with maturities of one year or less was as follows:

	December 31,
	2023		2022
	(Dollars in millions)
Commercial paper	$	—	$	99
Short-term borrowings (1)	119		76
Total short-term debt	$	119	$	175
Average daily balance	$	142	$	237
Average days outstanding	65 days		157 days

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(1)Includes $115 million and $76 million at December 31, 2023 and 2022, respectively, of short-term debt related to repurchase agreements, secured by assets of subsidiaries.

For the years ended December 31, 2023, 2022 and 2021, the weighted average interest rate on short-term debt was 8.63%, 5.23% and 1.41%, respectively.

Interest Expense

Interest expense included in other expenses was $740 million, $655 million and $647 million for the years ended December 31, 2023, 2022 and 2021, respectively. Such amounts do not include interest expense on long-term debt related to the collateral financing arrangement or junior subordinated debt securities. See Notes 17 and 18.

Credit and Committed Facilities

At December 31, 2023, the Company maintained the Credit Facility, as well as certain committed facilities aggregating $3.2 billion (the “Committed Facilities”). When drawn upon, these facilities bear interest at varying rates in accordance with the respective agreements.

Credit Facility

The Company’s Credit Facility is used for general corporate purposes, to support the borrowers’ commercial paper programs and for the issuance of letters of credit. Total fees associated with the Credit Facility were $6 million, $8 million and $10 million for the years ended December 31, 2023, 2022 and 2021, respectively, and were included in other expenses. Information on the Credit Facility at December 31, 2023 was as follows:

Borrower(s)	Expiration		Maximum Capacity		Letters of Credit Issued		Drawdowns		Unused Commitments
			(In millions)
MetLife, Inc. and MetLife Funding, Inc.	May 2028	(1)	$	3,000	$	297	$	—	$	2,703

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(1)     In May 2023, the Credit Facility was amended and restated to, among other things, extend the maturity date. All borrowings under the Credit Facility must be repaid by May 8, 2028, except that letters of credit outstanding on that date may remain outstanding until no later than May 8, 2029.

Committed Facilities

Letters of credit issued under the Committed Facilities are used for collateral for certain of the Company’s affiliated reinsurance liabilities. Total fees associated with the Committed Facilities, included in other expenses, were $9 million, $9 million and $12 million for the years ended December 31, 2023, 2022 and 2021, respectively. Information on the Committed Facilities at December 31, 2023 was as follows:

Account Party/Borrower(s)	Expiration		Maximum Capacity		Letters of Credit Issued		Drawdowns		Unused Commitments
			(In millions)
MetLife Reinsurance Company of Vermont and MetLife, Inc.	November 2026	(1), (2)	$	350	$	350	$	—	$	—
MetLife Reinsurance Company of Vermont and MetLife, Inc.	December 2037	(1), (3)	2,896		2,499		—		397
Total			$	3,246	$	2,849	$	—	$	397

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(1)MetLife, Inc. is a guarantor under the applicable facility.

(2)The issuance of additional letters of credit is at the discretion of the counterparty.

(3)Capacity at December 31, 2023 of $2.9 billion decreases gradually between 2025 and 2037 to $2.0 billion, and the facility expires in December 2037. Unused commitment of $397 million is based on maximum capacity. At December 31, 2023, Brighthouse Financial, Inc. and its subsidiaries (“Brighthouse”), a former subsidiary of MetLife, Inc., is a beneficiary of $2.5 billion of letters of credit issued under this facility and, in consideration, Brighthouse reimburses MetLife, Inc. for a portion of the letter of credit fees.