Closed Block

3 Months Ended

Mar. 31, 2024

9. Closed Block

On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company (“MLIC”) converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance approving MLIC’s plan of reorganization, as amended (the “Plan of Reorganization”). On the Demutualization Date, MLIC established a closed block for the benefit of holders of certain individual life insurance policies of MLIC. See Note 10 to the Notes to the Consolidated Financial Statements included in the 2023 Annual Report for further information on the closed block.

Experience within the closed block, in particular mortality and investment yields, as well as realized and unrealized gains and losses, directly impact the policyholder dividend obligation. Amortization of the closed block DAC, which resides outside of the closed block, is based upon policy count within the closed block.

Closed block assets, liabilities, revenues and expenses are combined on a line-by-line basis with the assets, liabilities, revenues and expenses outside the closed block based on the nature of the particular item.

Information regarding the liabilities and assets designated to the closed block was as follows at:


	March 31, 2024		December 31, 2023
	(In millions)
Closed Block Liabilities
Future policy benefits	$	35,806	$	36,142
Other policy-related balances	301		319
Policyholder dividends payable	170		174
Policyholder dividend obligation	—		—
Current income tax payable	1		—
Other liabilities	746		668
Total closed block liabilities	37,024		37,303
Assets Designated to the Closed Block
Investments:
Fixed maturity securities available-for-sale, at estimated fair value	19,637		19,939
Equity securities, at estimated fair value	11		10
Mortgage loans	6,005		6,151
Policy loans	3,919		3,960
Real estate and real estate joint ventures	676		668
Other invested assets	485		496
Total investments	30,733		31,224
Cash and cash equivalents	717		717
Accrued investment income	385		383
Premiums, reinsurance and other receivables	52		54
Current income tax recoverable	—		3
Deferred income tax asset	359		312
Total assets designated to the closed block	32,246		32,693
Excess of closed block liabilities over assets designated to the closed block	4,778		4,610
AOCI:
Unrealized investment gains (losses), net of income tax	(1,044)		(820)
Unrealized gains (losses) on derivatives, net of income tax	151		130
Total amounts included in AOCI	(893)		(690)
Maximum future earnings to be recognized from closed block assets and liabilities	$	3,885	$	3,920

Information regarding the closed block revenues and expenses was as follows:


	Three Months Ended March 31,
			2024		2023
		(In millions)
Revenues
Premiums			$	218	$	235
Net investment income			343		338
Net investment gains (losses)			(7)		4
Net derivative gains (losses)			5		(2)
Total revenues			559		575
Expenses
Policyholder benefits and claims			404		413
Policyholder dividends			90		97
Other expenses			20		22
Total expenses			514		532
Revenues, net of expenses before provision for income tax expense (benefit)			45		43
Provision for income tax expense (benefit)			10		9
Revenues, net of expenses and provision for income tax expense (benefit)			$	35	$	34

MLIC charges the closed block with federal income taxes, state and local premium taxes and other state or local taxes, as well as investment management expenses relating to the closed block as provided in the Plan of Reorganization. MLIC also charges the closed block for expenses of maintaining the policies included in the closed block.