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Future Policy Benefits (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of Liability for Future Policy Benefits, by Product Segment

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


	September 30, 2024		December 31, 2023
	(In millions)
Traditional and Limited-Payment Contracts:
RIS - Annuities	$	67,645	$	64,324
Asia:
Whole and term life & endowments	12,661		12,874
Accident & health	10,598		10,712
Latin America - Fixed annuities	10,906		9,637
MetLife Holdings - Long-term care	15,657		15,240
Deferred Profit Liabilities:
RIS - Annuities	3,754		3,697
Asia:
Whole and term life & endowments	785		654
Accident & health	913		830
Latin America - Fixed annuities	549		562
Additional Insurance Liabilities:
Asia:
Variable life	1,227		1,258
Universal and variable universal life	399		424
MetLife Holdings - Universal and variable universal life	2,471		2,362
MetLife Holdings - Participating life	48,629		49,543
Other long-duration (1)	11,340		11,099
Short-duration and other	13,806		13,190
Total	$	201,340	$	196,406

__________________

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

Liability for Future Policy Benefit, Activity

Information regarding these products was as follows:


	Nine Months Ended September 30,
	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 changes in cash flow assumptions (1)	—			—
Effect of actual variances from expected experience (2)	(32)			(89)
Adjusted balance	(32)			(89)
Issuances	5,042			4,422
Net premiums collected	(5,010)			(4,333)
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 changes in cash flow assumptions (1)	(195)			(284)
Effect of actual variances from expected experience (2)	(99)			(222)
Adjusted balance	64,443			60,920
Issuances	5,168			4,420
Interest accrual	2,326			2,145
Benefit payments	(4,479)			(4,121)
Ending balance at original discount rate	67,458			63,364
Effect of changes in discount rate assumptions	338			(5,438)
Balance, end of period, at current discount rate at balance sheet date	67,796			57,926

Cumulative amount of fair value hedging adjustments	(151)			(430)
Net liability for FPBs	67,645			57,496
Less: Reinsurance recoverables	2,041			—
Net liability for FPBs, net of reinsurance	$	65,604		$	57,496

Undiscounted - Expected future benefit payments	$	123,186		$	119,270
Discounted - Expected future benefit payments (at current discount rate at balance sheet date)	$	67,796		$	57,926
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	5.0		%	6.1		%

_________________

(1)For the nine months ended September 30, 2024, the net effect of changes in cash flow assumptions was partially offset by the corresponding impact in DPL associated with the RIS segment’s annuity products of $62 million. For the nine months ended September 30, 2023, the net effect of changes in cash flow assumptions was largely offset by the corresponding impact in DPL associated with the RIS segment’s annuity products of $211 million. For the nine months ended September 30, 2024 and 2023, the net effect of changes in cash flow assumptions was primarily driven by updates in assumptions related to mortality.

(2)For the nine months ended September 30, 2024, the net effect of actual variances from expected experience was partially offset by the corresponding impact in DPL associated with the RIS segment’s annuity products of $29 million. For the nine months ended September 30, 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 $95 million. For the nine months ended September 30, 2023, the net effect of actual variances from expected experience was primarily driven by favorable mortality.

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:


	Nine Months Ended September 30,
		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 changes in cash flow assumptions (1)		58			11
Effect of actual variances from expected experience		(43)			(41)
Adjusted balance		4,808			4,913
Issuances		386			614
Interest accrual		52			43
Net premiums collected		(456)			(457)
Effect of foreign currency translation		(77)			(518)
Ending balance at original discount rate		4,713			4,595
Effect of changes in discount rate assumptions		(236)			(319)
Effect of foreign currency translation on the effect of changes in discount rate assumptions		3			23
Balance, end of period, at current discount rate at balance sheet date		$	4,480		$	4,299

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 changes in cash flow assumptions (1)		36			58
Effect of actual variances from expected experience		(39)			(14)
Adjusted balance		17,195			18,253
Issuances		386			614
Interest accrual		276			278
Benefit payments		(726)			(895)
Effect of foreign currency translation		(263)			(1,847)
Ending balance at original discount rate		16,868			16,403
Effect of changes in discount rate assumptions		272			(742)
Effect of foreign currency translation on the effect of changes in discount rate assumptions		1			40
Balance, end of period, at current discount rate at balance sheet date		17,141			15,701

Cumulative impact of flooring the future policyholder benefits reserve		—			2
Net liability for FPBs		12,661			11,404
Less: Amount due to reinsurer		(2)			(1)
Net liability for FPBs, net of reinsurance		$	12,663		$	11,405

Undiscounted:
Expected future gross premiums		$	9,393		$	8,911
Expected future benefit payments		$	28,008		$	26,785
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums		$	8,042		$	7,582
Expected future benefit payments		$	17,141		$	15,701
Weighted-average duration of the liability		17 years			17 years
Weighted -average interest accretion (original locked-in) rate		2.5		%	2.5		%
Weighted-average current discount rate at balance sheet date		2.6		%	2.9		%

_________________

(1)For the nine months ended September 30, 2024, the net effect of changes in cash flow assumptions was more than offset by the corresponding impact in DPL associated with the Asia segment’s whole and term life products of $28 million.

Information regarding these products was as follows:


	Nine Months Ended September 30,
	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 changes in cash flow assumptions (1)	439			867
Effect of actual variances from expected experience	—			(75)
Adjusted balance	21,671			23,386
Issuances	842			813
Interest accrual	168			179
Net premiums collected	(1,394)			(1,546)
Effect of foreign currency translation and other - net	(149)			(2,474)
Ending balance at original discount rate	21,138			20,358
Effect of changes in discount rate assumptions	(1,481)			(1,803)
Effect of foreign currency translation on the effect of changes in discount rate assumptions	12			136
Balance, end of period, at current discount rate at balance sheet date	$	19,669		$	18,691

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 changes in cash flow assumptions (1)	439			898
Effect of actual variances from expected experience	4			(99)
Adjusted balance	36,453			37,988
Issuances	841			812
Interest accrual	353			367
Benefit payments	(939)			(958)
Effect of foreign currency translation and other - net	(323)			(4,061)
Ending balance at original discount rate	36,385			34,148
Effect of changes in discount rate assumptions	(6,207)			(6,866)
Effect of foreign currency translation on the effect of changes in discount rate assumptions	43			595
Balance, end of period, at current discount rate at balance sheet date	30,221			27,877

Cumulative impact of flooring the future policyholder benefits reserve	46			143
Net liability for FPBs	10,598			9,329
Less: Reinsurance recoverables	164			136
Net liability for FPBs, net of reinsurance	$	10,434		$	9,193

Undiscounted:
Expected future gross premiums	$	41,446		$	39,891
Expected future benefit payments	$	47,705		$	44,612
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums	$	33,666		$	32,286
Expected future benefit payments	$	30,221		$	27,877
Weighted-average duration of the liability	24 years			25 years
Weighted-average interest accretion (original locked-in) rate	1.7		%	1.8		%
Weighted-average current discount rate at balance sheet date	2.7		%	2.8		%

_________________

(1)For the nine months ended September 30, 2024, the net effect of changes in cash flow assumptions was primarily driven by updates in assumptions related to morbidity, substantially offset by policyholder behavior assumptions related to lapses. For the nine months ended September 30, 2023, the net effect of changes in cash flow assumptions was primarily driven by updates in policyholder behavior assumptions related to lapses, partially offset by updates in assumptions associated with mortality and morbidity.

Information regarding these products was as follows:


	Nine Months Ended September 30,
	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 changes in cash flow assumptions (1)	—			—
Effect of actual variances from expected experience (2)	—			(2)
Adjusted balance	—			(2)
Issuances	760			785
Interest accrual	13			16
Net premiums collected	(773)			(799)
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 changes in cash flow assumptions (1)	(4)			(5)
Effect of actual variances from expected experience (2)	(21)			(13)
Adjusted balance	9,224			8,222
Issuances	789			869
Interest accrual	253			258
Benefit payments	(519)			(504)
Inflation adjustment	270			273
Effect of foreign currency translation	(258)			(403)
Ending balance at original discount rate	9,759			8,715
Effect of changes in discount rate assumptions	1,126			(59)
Effect of foreign currency translation on the effect of changes in discount rate assumptions	21			6
Balance, end of period, at current discount rate at balance sheet date	10,906			8,662

Net liability for FPBs	$	10,906		$	8,662

Undiscounted - Expected future benefit payments	$	14,663		$	13,204
Discounted - Expected future benefit payments (at current discount rate at balance sheet date)	$	10,906		$	8,662
Weighted-average duration of the liability	11 years			10 years
Weighted-average interest accretion (original locked-in) rate	3.4		%	3.9		%
Weighted-average current discount rate at balance sheet date	2.5		%	3.7		%

__________________

(1)For the nine months ended September 30, 2024 and 2023, the net effect of changes in cash flow assumptions was largely offset by the corresponding impact in DPL associated with the Latin America segment’s fixed annuity products of $3 million and $4 million, respectively.

(2)For the nine months ended September 30, 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 nine months ended September 30, 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 $2 million.

Information regarding these products was as follows:


	Nine Months Ended September 30,
	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 changes in cash flow assumptions (1)	212			(152)
Effect of actual variances from expected experience	34			173
Adjusted balance	5,812			5,828
Interest accrual	213			222
Net premiums collected	(424)			(438)
Ending balance at original discount rate	5,601			5,612
Effect of changes in discount rate assumptions	159			(258)
Balance, end of period, at current discount rate at balance sheet date	$	5,760		$	5,354

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 changes in cash flow assumptions (1)	205			(190)
Effect of actual variances from expected experience	45			194
Adjusted balance	20,744			20,169
Interest accrual	812			801
Benefit payments	(638)			(579)
Ending balance at original discount rate	20,918			20,391
Effect of changes in discount rate assumptions	499			(2,012)
Balance, end of period, at current discount rate at balance sheet date	21,417			18,379

Net liability for FPBs	$	15,657		$	13,025

Undiscounted:
Expected future gross premiums	$	10,735		$	10,713
Expected future benefit payments	$	45,098		$	45,152
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums	$	7,319		$	6,714
Expected future benefit payments	$	21,417		$	18,379
Weighted-average duration of the liability	14 years			14 years
Weighted-average interest accretion (original locked-in) rate	5.4		%	5.5		%
Weighted-average current discount rate at balance sheet date	5.2		%	6.3		%

__________________

(1)For the nine months ended September 30, 2023, the net effect of changes in cash flow assumptions was primarily driven by updates in policyholder behavior assumptions related to claim utilization experience, which lowered the expected cost of care. This was partially offset by updates in morbidity assumptions associated with an increase in incidence rates.

Additional Liability, Long-Duration Insurance

Information regarding these additional insurance liabilities was as follows:


	Nine Months Ended September 30,
	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 (loss) (“AOCI”) adjustment	—			—			(14)			(33)
Balance, beginning of period, before AOCI adjustment	1,258			1,381			438			488
Effect of changes in cash flow assumptions	17			(4)			(23)			(2)
Effect of actual variances from expected experience	(8)			(9)			(14)			(32)
Adjusted balance	1,267			1,368			401			454
Assessments accrual	(3)			(3)			—			—
Interest accrual	13			15			4			5
Excess benefits paid	(30)			(29)			—			—
Effect of foreign currency translation and other, net	(20)			(158)			(6)			(55)
Balance, end of period, before AOCI adjustment	1,227			1,193			399			404
Add: AOCI adjustment	—			—			—			(18)
Balance, end of period	$	1,227		$	1,193		$	399		$	386

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

Information regarding these additional insurance liabilities was as follows:


	Nine Months Ended September 30,
	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 changes in cash flow assumptions	(2)			38
Effect of actual variances from expected experience	36			(10)
Adjusted balance	2,410			2,247
Assessments accrual	78			80
Interest accrual	98			92
Excess benefits paid	(104)			(81)
Balance, end of period, before AOCI adjustment	2,482			2,338
Add: AOCI adjustment	(11)			(65)
Balance, end of period	2,471			2,273
Less: Reinsurance recoverables	2,147			766
Balance, end of period, net of reinsurance	$	324		$	1,507

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

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:


		Nine Months Ended September 30,
		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		$	5,098	$	2,326	$	4,433	$	2,145
Asia:
Whole and term life & endowments		850		224		841		235
Accident & health		2,324		185		2,580		188
Latin America - Fixed annuities		773		240		799		242
MetLife Holdings - Long-term care		543		599		547		579
Deferred Profit Liabilities:
RIS - Annuities		N/A		133		N/A		124
Asia:
Whole and term life & endowments		N/A		27		N/A		22
Accident & health		N/A		15		N/A		13
Latin America - Fixed annuities		N/A		15		N/A		17
Additional Insurance Liabilities:
Asia:
Variable life		85		13		60		15
Universal and variable universal life		(32)		4		(20)		5
MetLife Holdings - Universal and variable universal life		492		98		559		92
Other long-duration		3,469		362		3,194		341
Total		$	13,602	$	4,241	$	12,993	$	4,018

__________________

(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

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


	Nine Months Ended September 30,
	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	20,532		19,983
Prior periods (1)	80		327
Total incurred	20,612		20,310
Paid related to:
Current period	(14,470)		(13,991)
Prior periods	(5,773)		(5,883)
Total paid	(20,243)		(19,874)


Net balance, end of period	14,245		14,082
Add: Reinsurance recoverables	2,757		2,523
Balance, end of period (included in FPBs and other policy-related balances)	$	17,002	$	16,605

__________________

(1)For the nine months ended September 30, 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.