Closed Block

6 Months Ended

Jun. 30, 2024

Closed Block Disclosure [Abstract]

Closed Block

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:

	June 30, 2024		December 31, 2023
	(In millions)
Closed Block Liabilities
FPBs	$	35,492	$	36,142
Other policy-related balances	283		319
Policyholder dividends payable	172		174
Policyholder dividend obligation	—		—
Current income tax payable	4		—
Other liabilities	797		668
Total closed block liabilities	36,748		37,303
Assets Designated to the Closed Block
Investments:
Fixed maturity securities available-for-sale (“AFS”), at estimated fair value	19,247		19,939
Equity securities, at estimated fair value	11		10
Mortgage loans	5,938		6,151
Policy loans	3,876		3,960
Real estate and real estate joint ventures (“REJV”)	688		668
Other invested assets	487		496
Total investments	30,247		31,224
Cash and cash equivalents	759		717
Accrued investment income	374		383
Premiums, reinsurance and other receivables	67		54
Current income tax recoverable	—		3
Deferred income tax asset	397		312
Total assets designated to the closed block	31,844		32,693
Excess of closed block liabilities over assets designated to the closed block	4,904		4,610
AOCI:
Unrealized investment gains (losses), net of income tax	(1,204)		(820)
Unrealized gains (losses) on derivatives, net of income tax	164		130
Total amounts included in AOCI	(1,040)		(690)
Maximum future earnings to be recognized from closed block assets and liabilities	$	3,864	$	3,920

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

		Three Months Ended June 30,				Six Months Ended June 30,
		2024		2023		2024		2023
	(In millions)
Revenues
Premiums		$	216	$	226	$	434	$	461
Net investment income		342		341		685		679
Net investment gains (losses)		(13)		5		(20)		9
Net derivative gains (losses)		2		5		7		3
Total revenues		547		577		1,106		1,152
Expenses
Policyholder benefits and claims		415		445		819		858
Policyholder dividends		86		89		176		186
Other expenses		20		22		40		44
Total expenses		521		556		1,035		1,088
Revenues, net of expenses before provision for income tax expense (benefit)		26		21		71		64
Provision for income tax expense (benefit)		5		4		15		13
Revenues, net of expenses and provision for income tax expense (benefit)		$	21	$	17	$	56	$	51

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.