Closed Block

9 Months Ended

Sep. 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:

	September 30, 2024		December 31, 2023
	(In millions)
Closed Block Liabilities
FPBs	$	35,229	$	36,142
Other policy-related balances	284		319
Policyholder dividends payable	178		174
Policyholder dividend obligation	—		—
Current income tax payable	13		—
Other liabilities	896		668
Total closed block liabilities	36,600		37,303
Assets Designated to the Closed Block
Investments:
Fixed maturity securities available-for-sale (“AFS”), at estimated fair value	19,915		19,939
Equity securities, at estimated fair value	10		10
Mortgage loans	5,856		6,151
Policy loans	3,850		3,960
Real estate and real estate joint ventures (“REJV”)	676		668
Other invested assets	418		496
Total investments	30,725		31,224
Cash and cash equivalents	957		717
Accrued investment income	382		383
Premiums, reinsurance and other receivables	36		54
Current income tax recoverable	—		3
Deferred income tax asset	239		312
Total assets designated to the closed block	32,339		32,693
Excess of closed block liabilities over assets designated to the closed block	4,261		4,610
AOCI:
Unrealized investment gains (losses), net of income tax	(551)		(820)
Unrealized gains (losses) on derivatives, net of income tax	116		130
Total amounts included in AOCI	(435)		(690)
Maximum future earnings to be recognized from closed block assets and liabilities	$	3,826	$	3,920

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

		Three Months Ended September 30,				Nine Months Ended September 30,
		2024		2023		2024		2023
	(In millions)
Revenues
Premiums		$	214	$	219	$	648	$	680
Net investment income		336		345		1,021		1,024
Net investment gains (losses)		1		4		(19)		13
Net derivative gains (losses)		(1)		(2)		6		1
Total revenues		550		566		1,656		1,718
Expenses
Policyholder benefits and claims		390		403		1,209		1,261
Policyholder dividends		90		89		266		275
Other expenses		21		21		61		65
Total expenses		501		513		1,536		1,601
Revenues, net of expenses before provision for income tax expense (benefit)		49		53		120		117
Provision for income tax expense (benefit)		11		11		26		24
Revenues, net of expenses and provision for income tax expense (benefit)		$	38	$	42	$	94	$	93

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.