Future Policy Benefits

3 Months Ended

Mar. 31, 2024

Liability for Future Policy Benefits and Unpaid Claims Disclosure

4. Future Policy Benefits

The Company establishes liabilities for amounts payable under insurance policies. These liabilities are comprised of traditional and limited-payment contracts and associated deferred profit liability (“DPL”), additional insurance liabilities, participating life and short-duration contracts.

The Company’s FPBs on the interim condensed consolidated balance sheets was as follows at:


	March 31, 2024		December 31, 2023
	(In millions)
Traditional and Limited-Payment Contracts:
RIS - Annuities	$	62,362	$	64,324
Asia:
Whole and term life & endowments	11,861		12,874
Accident & health	9,859		10,712
Latin America - Fixed annuities	8,771		9,637
MetLife Holdings - Long-term care	14,845		15,240
Deferred Profit Liabilities:
RIS - Annuities	3,694		3,697
Asia:
Whole and term life & endowments	667		654
Accident & health	808		830
Latin America - Fixed annuities	504		562
Additional Insurance Liabilities:
Asia:
Variable life	1,153		1,258
Universal and variable universal life	385		424
MetLife Holdings - Universal and variable universal life	2,396		2,362
MetLife Holdings - Participating life	49,227		49,543
Other long-duration (1)	10,824		11,099
Short-duration and other	13,657		13,190
Total	$	191,013	$	196,406

__________________

(1) This balance represents liabilities for various smaller product lines across multiple segments, as well as Corporate & Other.

Rollforwards - Traditional and Limited-Payment Contracts

The following information about the direct and assumed liability for FPBs includes disaggregated rollforwards of expected future net premiums and expected future benefits. 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. The adjusted balance in each disaggregated rollforward reflects the remeasurement (gains) losses. All amounts presented in the rollforwards and accompanying financial information do not include a reduction for amounts ceded to reinsurers, except with respect to ending net liability for FPB balances where applicable.

RIS - Annuities

The RIS segment’s annuity products include pension risk transfers, certain structured settlements and certain institutional income annuities, which are mainly single premium spread-based products. Information regarding these products was as follows:


	Three Months Ended March 31,
	2024			2023
	(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date	$	—		$	—

Balance, beginning of period, at original discount rate	$	—		$	—

Effect of actual variances from expected experience (1)	(26)			(16)
Adjusted balance	(26)			(16)
Issuances	342			236
Net premiums collected	(316)			(220)
Ending balance at original discount rate	—			—
Balance, end of period, at current discount rate at balance sheet date	$	—		$	—

Present Value of Expected FPBs
Balance, beginning of period, at current discount rate at balance sheet date	$	64,515		$	58,695

Balance, beginning of period, at original discount rate	$	64,737		$	61,426

Effect of actual variances from expected experience (1)	(36)			(116)
Adjusted balance	64,701			61,310
Issuances	341			234
Interest accrual	759			703
Benefit payments	(1,492)			(1,372)
Ending balance at original discount rate	64,309			60,875
Effect of changes in discount rate assumptions	(1,649)			(1,202)
Balance, end of period, at current discount rate at balance sheet date	62,660			59,673

Cumulative amount of fair value hedging adjustments	(298)			(78)
Net liability for FPBs	62,362			59,595
Less: Reinsurance recoverables	256			—
Net liability for FPBs, net of reinsurance	$	62,106		$	59,595

Undiscounted - Expected future benefit payments	$	118,190		$	113,912
Discounted - Expected future benefit payments (at current discount rate at balance sheet date)	$	62,660		$	59,673
Weighted-average duration of the liability	9 years			9 years
Weighted-average interest accretion (original locked-in) rate	4.8		%	4.7		%
Weighted-average current discount rate at balance sheet date	5.4		%	5.1		%

_________________

(1) For the three months ended March 31, 2024, the net effect of actual variances from expected experience was substantially offset by the corresponding impact in DPL associated with the RIS segment’s annuity products of $10 million. For three months ended March 31, 2023, the net effect of actual variances from expected experience was largely offset by the corresponding impact in DPL associated with the RIS segment’s annuity products of $71 million. Excluding the corresponding impact in DPL, for the three months ended March 31, 2023, the net effect of actual variances from expected experience was primarily driven by favorable mortality and model refinements.

Asia

Whole and Term Life & Endowments

The Asia segment’s whole and term life & endowment products in Japan and Korea offer various life insurance coverages to customers. Information regarding these products was as follows:


	Three Months Ended March 31,
		2024			2023
		(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date		$	4,561		$	4,682

Balance, beginning of period, at original discount rate		$	4,793		$	4,943

Effect of actual variances from expected experience (1)		(15)			(22)
Adjusted balance		4,778			4,921
Issuances		153			141
Interest accrual		17			13
Net premiums collected		(157)			(153)
Effect of foreign currency translation		(290)			(44)
Ending balance at original discount rate		4,501			4,878
Effect of changes in discount rate assumptions		(260)			(201)
Effect of foreign currency translation on the effect of changes in discount rate assumptions		16			3
Balance, end of period, at current discount rate at balance sheet date		$	4,257		$	4,680

Present Value of Expected FPBs
Balance, beginning of period, at current discount rate at balance sheet date		$	17,435		$	17,463

Balance, beginning of period, at original discount rate		$	17,198		$	18,209

Effect of actual variances from expected experience (1)		(7)			(4)
Adjusted balance		17,191			18,205
Issuances		153			141
Interest accrual		93			93
Benefit payments		(263)			(340)
Effect of foreign currency translation		(1,042)			(220)
Ending balance at original discount rate		16,132			17,879
Effect of changes in discount rate assumptions		(36)			329
Effect of foreign currency translation on the effect of changes in discount rate assumptions		22			(32)
Balance, end of period, at current discount rate at balance sheet date		16,118			18,176

Cumulative impact of flooring the future policyholder benefits reserve		—			2
Net liability for FPBs		11,861			13,498
Less: Amount due to reinsurer		(1)			(1)
Net liability for FPBs, net of reinsurance		$	11,862		$	13,499

Undiscounted:
Expected future gross premiums		$	8,799		$	9,309
Expected future benefit payments		$	26,638		$	28,009
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums		$	7,549		$	8,146
Expected future benefit payments		$	16,118		$	18,176
Weighted-average duration of the liability		17 years			17 years
Weighted -average interest accretion (original locked-in) rate		2.6		%	2.5		%
Weighted-average current discount rate at balance sheet date		2.7		%	2.4		%

_________________

(1) For the three months ended March 31, 2024, the net effect of actual variances from expected experience was not offset by the corresponding impact in DPL associated with the Asia segment’s whole and term life & endowment products due to the diversification of the products and the underlying characteristics.

Accident & Health

The Asia segment’s accident & health products in Japan and Korea offer various hospitalization, cancer, critical illness, disability, income protection and personal accident coverage. Information regarding these products was as follows:


	Three Months Ended March 31,
	2024		2023
	(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date	$	19,835	$	21,181

Balance, beginning of period, at original discount rate	$	21,232	$	22,594

Effect of actual variances from expected experience	(123)		(55)
Adjusted balance	21,109		22,539
Issuances	252		257
Interest accrual	56		61
Net premiums collected	(483)		(546)
Effect of foreign currency translation	(1,399)		(225)
Ending balance at original discount rate	19,535		22,086
Effect of changes in discount rate assumptions	(1,549)		(1,051)
Effect of foreign currency translation on the effect of changes in discount rate assumptions	99		16
Balance, end of period, at current discount rate at balance sheet date	$	18,085	$	21,051

Present Value of Expected FPBs
Balance, beginning of period, at current discount rate at balance sheet date	$	30,480	$	30,879

Balance, beginning of period, at original discount rate	$	36,010	$	37,189

Effect of actual variances from expected experience	(130)		(60)
Adjusted balance	35,880		37,129
Issuances	252		256
Interest accrual	118		125
Benefit payments	(303)		(323)
Effect of foreign currency translation	(2,334)		(400)
Ending balance at original discount rate	33,613		36,787
Effect of changes in discount rate assumptions	(6,132)		(4,726)
Effect of foreign currency translation on the effect of changes in discount rate assumptions	395		54
Balance, end of period, at current discount rate at balance sheet date	27,876		32,115

Cumulative impact of flooring the future policyholder benefits reserve	68		113
Net liability for FPBs	9,859		11,177
Less: Reinsurance recoverables	166		155
Net liability for FPBs, net of reinsurance	$	9,693	$	11,022

Undiscounted:
Expected future gross premiums	$	38,523	$	42,544
Expected future benefit payments	$	43,983	$	47,574
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums	$	31,377	$	36,047
Expected future benefit payments	$	27,876	$	32,115
Weighted-average duration of the liability	24 years		26 years
Weighted-average interest accretion (original locked-in) rate	1.7%		1.8%
Weighted-average current discount rate at balance sheet date	2.7%		2.3%

Latin America - Fixed Annuities

The Latin America segment’s fixed annuity products in Chile and Mexico offer fixed income annuities that provide for asset distribution needs. Information regarding these products was as follows:


	Three Months Ended March 31,
	2024		2023
	(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date	$	—	$	—

Balance, at beginning of period, at original discount rate	$	—	$	—

Effect of actual variances from expected experience (1)	—		—
Adjusted balance	—		—
Issuances	260		294
Interest accrual	1		2
Net premiums collected	(261)		(296)
Ending balance at original discount rate	—		—
Balance, end of period, at current discount rate at balance sheet date	$	—	$	—

Present Value of Expected FPBs
Balance, beginning of period, at current discount rate at balance sheet date	$	9,637	$	9,265

Balance, beginning of period, at original discount rate	$	9,249	$	8,240

Effect of actual variances from expected experience (1)	(5)		(8)
Adjusted balance	9,244		8,232
Issuances	265		325
Interest accrual	82		85
Benefit payments	(165)		(162)
Inflation adjustment	73		116
Effect of foreign currency translation	(976)		649
Ending balance at original discount rate	8,523		9,245
Effect of changes in discount rate assumptions	285		976
Effect of foreign currency translation on the effect of changes in discount rate assumptions	(37)		77
Balance, end of period, at current discount rate at balance sheet date	8,771		10,298

Net liability for FPBs	$	8,771	$	10,298

Undiscounted - Expected future benefit payments	$	12,863	$	14,095
Discounted - Expected future benefit payments (at current discount rate at balance sheet date)	$	8,771	$	10,298
Weighted-average duration of the liability	10 years		11 years
Weighted-average interest accretion (original locked-in) rate	3.7%		3.9%
Weighted-average current discount rate at balance sheet date	3.4%		2.7%

__________________

(1) For the three months ended March 31, 2024, the net effect of actual variances from expected experience was not offset by the corresponding impact in DPL associated with the Latin America segment’s fixed annuity products primarily due to the variance related to cohorts with no DPL. For the three months ended March 31, 2023, the net effect of actual variances from expected experience was partially offset by the corresponding impact in DPL associated with the Latin America segment’s fixed annuity products of $3 million.

MetLife Holdings - Long-term Care

The MetLife Holdings segment’s long-term care products offer protection against potentially high costs of long-term health care services. Information regarding these products was as follows:


	Three Months Ended March 31,
	2024		2023
	(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date	$	5,687	$	5,775

Balance, beginning of period, at original discount rate	$	5,566	$	5,807

Effect of actual variances from expected experience	(4)		26
Adjusted balance	5,562		5,833
Interest accrual	71		75
Net premiums collected	(143)		(146)
Ending balance at original discount rate	5,490		5,762
Effect of changes in discount rate assumptions	—		104
Balance, end of period, at current discount rate at balance sheet date	$	5,490	$	5,866

Present Value of Expected FPBs
Balance, beginning of period, at current discount rate at balance sheet date	$	20,927	$	19,619

Balance, beginning of period, at original discount rate	$	20,494	$	20,165

Effect of actual variances from expected experience	(1)		28
Adjusted balance	20,493		20,193
Interest accrual	269		266
Benefit payments	(212)		(191)
Ending balance at original discount rate	20,550		20,268
Effect of changes in discount rate assumptions	(215)		215
Balance, end of period, at current discount rate at balance sheet date	20,335		20,483

Net liability for FPBs	$	14,845	$	14,617

Undiscounted:
Expected future gross premiums	$	10,430	$	11,053
Expected future benefit payments	$	44,808	$	45,741
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums	$	6,895	$	7,295
Expected future benefit payments	$	20,335	$	20,483
Weighted-average duration of the liability	14 years		15 years
Weighted-average interest accretion (original locked-in) rate	5.4%		5.4%
Weighted-average current discount rate at balance sheet date	5.5%		5.3%

Rollforwards - Additional Insurance Liabilities

The Company establishes additional insurance liabilities for annuitization, death or other insurance benefits for variable life, universal life, and variable universal life contract features where the Company guarantees to the contractholder either a secondary guarantee or a guaranteed paid-up benefit. The policy can remain in force, even if the base policy account value is zero, as long as contractual secondary guarantee requirements have been met.

The following information about the direct liability for additional insurance liabilities 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. The adjusted balance in each disaggregated rollforward reflects the remeasurement (gains) losses. All amounts presented in these rollforwards and accompanying financial information do not include a reduction for amounts ceded to reinsurers.

Asia

The Asia segment’s variable life, universal life, and variable universal life products in Japan offer a contract feature where the Company guarantees to the contractholder a secondary guarantee. Information regarding these additional insurance liabilities was as follows:


	Three Months Ended March 31,
	2024			2023			2024			2023
	Variable Life						Universal and Variable Universal Life
	(Dollars in millions)
Balance, beginning of period	$	1,258		$	1,381		$	424		$	455
Less: Accumulated other comprehensive income (“AOCI”) adjustment	—			—			(14)			(33)
Balance, beginning of period, before AOCI adjustment	1,258			1,381			438			488

Effect of actual variances from expected experience	(13)			(2)			(17)			(3)
Adjusted balance	1,245			1,379			421			485
Assessments accrual	(1)			(1)			—			(1)
Interest accrual	4			5			1			2
Excess benefits paid	(9)			(10)			—			—
Effect of foreign currency translation and other, net	(86)			(11)			(30)			(5)
Balance, end of period, before AOCI adjustment	1,153			1,362			392			481
Add: AOCI adjustment	—			—			(7)			(23)
Balance, end of period	$	1,153		$	1,362		$	385		$	458

Weighted-average duration of the liability	16 years			17 years			43 years			42 years
Weighted-average interest accretion rate	1.5		%	1.5		%	1.4		%	1.5		%

MetLife Holdings

The MetLife Holdings segment’s universal life and variable universal life products offer a contract feature where the Company guarantees to the contractholder a secondary guarantee or a guaranteed paid-up benefit. Information regarding these additional insurance liabilities was as follows:


	Three Months Ended March 31,
	2024			2023
	Universal and Variable Universal Life
	(Dollars in millions)
Balance, beginning of period	$	2,362		$	2,156
Less: AOCI adjustment	(14)			(63)
Balance, beginning of period, before AOCI adjustment	2,376			2,219

Effect of actual variances from expected experience	14			11
Adjusted balance	2,390			2,230
Assessments accrual	26			28
Interest accrual	32			30
Excess benefits paid	(37)			(40)
Balance, end of period, before AOCI adjustment	2,411			2,248
Add: AOCI adjustment	(15)			(50)
Balance, end of period	2,396			2,198
Less: Reinsurance recoverables	2,086			748
Balance, end of period, net of reinsurance	$	310		$	1,450

Weighted-average duration of the liability	15 years			16 years
Weighted-average interest accretion rate	5.5		%	5.6		%

The Company’s gross premiums or assessments and interest expense recognized in the interim condensed consolidated statements of operations and comprehensive income (loss) for long-duration contracts, excluding MetLife Holdings’ participating life contracts, were as follows:


		Three Months Ended March 31,
		2024				2023
		Gross Premiums or Assessments (1)		Interest Expense (2)		Gross Premiums or Assessments (1)		Interest Expense (2)
	(In millions)
Traditional and Limited-Payment Contracts:
RIS - Annuities		$	344	$	759	$	245	$	703
Asia:
Whole and term life & endowments		290		76		282		80
Accident & health		811		62		908		64
Latin America - Fixed annuities		261		81		296		83
MetLife Holdings - Long-term care		181		198		183		191
Deferred Profit Liabilities:
RIS - Annuities		N/A		44		N/A		40
Asia:
Whole and term life & endowments		N/A		9		N/A		7
Accident & health		N/A		5		N/A		4
Latin America - Fixed annuities		N/A		5		N/A		6
Additional Insurance Liabilities:
Asia:
Variable life		29		4		5		5
Universal and variable universal life		(33)		1		(12)		2
MetLife Holdings - Universal and variable universal life		167		32		192		30
Other long-duration		1,158		121		947		112
Total		$	3,208	$	1,397	$	3,046	$	1,327

__________________

(1)Gross premiums are related to traditional and limited-payment contracts and are included in premiums. Assessments are related to additional insurance liabilities and are included in universal life and investment-type product policy fees and net investment income.

(2)Interest expense is included in policyholder benefits and claims.

Liabilities for Unpaid Claims and Claim Expenses

Rollforward of Claims and Claim Adjustment Expenses

Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows:


	Three Months Ended March 31,
	2024		2023
	(In millions)
Balance, beginning of period	$	16,468	$	16,098
Less: Reinsurance recoverables	2,592		2,452
Net balance, beginning of period	13,876		13,646
Incurred related to:
Current period	6,487		6,798
Prior periods (1)	157		206
Total incurred	6,644		7,004
Paid related to:
Current period	(3,115)		(3,230)
Prior periods	(3,564)		(3,565)
Total paid	(6,679)		(6,795)


Net balance, end of period	13,841		13,855
Add: Reinsurance recoverables	2,913		2,631
Balance, end of period (included in FPBs and other policy-related balances)	$	16,754	$	16,486

__________________

(1)For the three months ended March 31, 2024 and 2023, incurred claims and claim adjustment expenses associated with prior periods increased due to events incurred in prior periods but reported in the respective current period.