Future Policy Benefits

6 Months Ended

Jun. 30, 2025

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:


	June 30, 2025		December 31, 2024
	(In millions)
Traditional and Limited-Payment Contracts:
RIS - Annuities	$	68,193	$	66,262
Asia:
Whole and term life & endowments	11,844		11,167
Accident & health	9,395		9,406
Latin America - Fixed annuities	10,964		9,600
MetLife Holdings - Long-term care	14,803		14,537
Deferred Profit Liabilities:
RIS - Annuities	3,812		3,780
Asia:
Whole and term life & endowments	899		759
Accident & health	981		849
Latin America - Fixed annuities	531		498
Additional Insurance Liabilities:
Asia:
Variable life	1,188		1,108
Universal and variable universal life	386		355
MetLife Holdings - Universal and variable universal life	2,567		2,496
MetLife Holdings - Participating life	47,872		48,485
Other long-duration (1)	11,012		10,712
Short-duration and other	14,518		13,632
Total	$	198,965	$	193,646

_______________

(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 (including assumed pension risk transfers from the United Kingdom (“U.K.”)), certain structured settlements and certain institutional income annuities, which are mainly single premium spread-based products. The Company reinsures portions of certain newly issued pension risk transfers on a modified coinsurance basis. Information regarding these products was as follows:


	Six Months Ended June 30,
	2025			2024
	(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)	(39)			(25)
Adjusted balance	(39)			(25)
Issuances	2,769			4,206
Net premiums collected	(2,730)			(4,181)
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	$	66,621		$	64,515

Balance, beginning of period, at original discount rate	$	69,643		$	64,737
Effect of actual variances from expected experience (1)	(100)			(93)
Adjusted balance	69,543			64,644
Issuances	2,797			4,328
Interest accrual	1,676			1,526
Benefit payments	(3,288)			(2,976)
Effect of foreign currency translation	27			—
Ending balance at original discount rate	70,755			67,522
Effect of changes in discount rate assumptions	(2,280)			(2,847)
Balance, end of period, at current discount rate at balance sheet date	68,475			64,675

Cumulative amount of fair value hedging adjustments	(282)			(337)
Net liability for FPBs	68,193			64,338
Less: Reinsurance recoverables	2,207			1,933
Net liability for FPBs, net of reinsurance	$	65,986		$	62,405

Undiscounted - Expected future benefit payments	$	128,551		$	123,752
Discounted - Expected future benefit payments (at current discount rate at balance sheet date)	$	68,475		$	64,675
Weighted-average duration of the liability	8 years			9 years
Weighted-average interest accretion (original locked-in) rate	4.9		%	4.7		%
Weighted-average current discount rate at balance sheet date	5.5		%	5.6		%

_________________

(1)For the six months ended June 30, 2025 and 2024, 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 $46 million and $49 million, respectively.

When single premium annuity contracts are issued, the FPB reserve is required to be measured at an upper-medium grade discount rate. Due to differences between the upper-medium grade discount rate and pricing assumptions used to determine the contractual premium, the initial FPB reserve at issue for a particular cohort may be greater than the contractual premium received, and the difference must be recognized as an immediate loss at issue. On these cohorts, future experience that differs from expected experience and changes in cash flow assumptions result in the recognition of remeasurement gains and losses with net remeasurement gains limited to the amount of the original loss at issue, after which any favorable experience is deferred and recorded within the DPL. For the six months ended June 30, 2024, the

Company incurred a loss at issue of $126 million. This loss at issue was offset by a deferred gain on ceded reinsurance, which will be amortized over the life of the reinsurance agreement.

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:


	Six Months Ended June 30,
		2025			2024
		(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date		$	4,023		$	4,561

Balance, beginning of period, at original discount rate		$	4,286		$	4,793
Effect of actual variances from expected experience		(44)			(33)
Adjusted balance		4,242			4,760
Issuances		290			269
Interest accrual		39			34
Net premiums collected		(313)			(304)
Effect of foreign currency translation		340			(507)
Ending balance at original discount rate		4,598			4,252
Effect of changes in discount rate assumptions		(332)			(277)
Effect of foreign currency translation on the effect of changes in discount rate assumptions		(25)			30
Balance, end of period, at current discount rate at balance sheet date		$	4,241		$	4,005

Present Value of Expected FPBs
Balance, beginning of period, at current discount rate at balance sheet date		$	15,190		$	17,435

Balance, beginning of period, at original discount rate		$	15,252		$	17,198
Effect of actual variances from expected experience		(43)			(33)
Adjusted balance		15,209			17,165
Issuances		290			269
Interest accrual		188			183
Benefit payments		(482)			(484)
Effect of foreign currency translation		1,286			(1,813)
Ending balance at original discount rate		16,491			15,320
Effect of changes in discount rate assumptions		(433)			(131)
Effect of foreign currency translation on the effect of changes in discount rate assumptions		27			76
Balance, end of period, at current discount rate at balance sheet date		16,085			15,265


Net liability for FPBs		11,844			11,260
Less: Amount due to reinsurer		(2)			(1)
Net liability for FPBs, net of reinsurance		$	11,846		$	11,261

Undiscounted:
Expected future gross premiums		$	9,474		$	8,363
Expected future benefit payments		$	27,843		$	25,574
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums		$	7,837		$	7,140
Expected future benefit payments		$	16,085		$	15,265
Weighted-average duration of the liability		17 years			17 years
Weighted -average interest accretion (original locked-in) rate		2.6		%	2.6		%
Weighted-average current discount rate at balance sheet date		3.0		%	2.8		%

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:


	Six Months Ended June 30,
	2025			2024
	(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date	$	17,203		$	19,835

Balance, beginning of period, at original discount rate	$	18,820		$	21,232
Effect of actual variances from expected experience (1)	(200)			292
Adjusted balance	18,620			21,524
Issuances	636			551
Interest accrual	113			110
Net premiums collected	(939)			(928)
Effect of foreign currency translation and other - net	1,836			(2,496)
Ending balance at original discount rate	20,266			18,761
Effect of changes in discount rate assumptions	(2,204)			(1,720)
Effect of foreign currency translation on the effect of changes in discount rate assumptions	(161)			187
Balance, end of period, at current discount rate at balance sheet date	$	17,901		$	17,228

Present Value of Expected FPBs
Balance, beginning of period, at current discount rate at balance sheet date	$	26,565		$	30,480

Balance, beginning of period, at original discount rate	$	32,838		$	36,010
Effect of actual variances from expected experience (1)	(208)			331
Adjusted balance	32,630			36,341
Issuances	635			551
Interest accrual	239			232
Benefit payments	(647)			(614)
Effect of foreign currency translation and other - net	3,064			(4,161)
Ending balance at original discount rate	35,921			32,349
Effect of changes in discount rate assumptions	(8,209)			(6,761)
Effect of foreign currency translation on the effect of changes in discount rate assumptions	(572)			750
Balance, end of period, at current discount rate at balance sheet date	27,140			26,338

Cumulative impact of flooring the future policyholder benefits reserve	156			79
Net liability for FPBs	9,395			9,189
Less: Reinsurance recoverables	132			143
Net liability for FPBs, net of reinsurance	$	9,263		$	9,046

Undiscounted:
Expected future gross premiums	$	40,090		$	36,531
Expected future benefit payments	$	47,275		$	42,531
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums	$	30,717		$	29,420
Expected future benefit payments	$	27,140		$	26,338
Weighted-average duration of the liability	21 years			23 years
Weighted-average interest accretion (original locked-in) rate	1.7		%	1.7		%
Weighted-average current discount rate at balance sheet date	3.2		%	2.8		%

__________________

(1)For the six months ended June 30, 2024, the net effect of actual variances from expected experience was partially offset by the corresponding impact in DPL associated with the Asia segment’s accident and health products of ($6) million.

Latin America - Fixed Annuities

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


	Six Months Ended June 30,
	2025			2024
	(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	740			494
Interest accrual	2			5
Net premiums collected	(742)			(499)
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	$	9,600		$	9,637

Balance, beginning of period, at original discount rate	$	9,133		$	9,249
Effect of actual variances from expected experience (1)	(1)			(9)
Adjusted balance	9,132			9,240
Issuances	778			509
Interest accrual	181			167
Benefit payments	(389)			(339)
Inflation adjustment	216			184
Effect of foreign currency translation	621			(691)
Ending balance at original discount rate	10,539			9,070
Effect of changes in discount rate assumptions	397			(28)
Effect of foreign currency translation on the effect of changes in discount rate assumptions	28			(22)
Balance, end of period, at current discount rate at balance sheet date	10,964			9,020

Net liability for FPBs	$	10,964		$	9,020

Undiscounted - Expected future benefit payments	$	15,671		$	13,648
Discounted - Expected future benefit payments (at current discount rate at balance sheet date)	$	10,964		$	9,020
Weighted-average duration of the liability	10 years			10 years
Weighted-average interest accretion (original locked-in) rate	3.7		%	3.6		%
Weighted-average current discount rate at balance sheet date	3.1		%	3.7		%

__________________

(1)For the six months ended June 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 coming from cohorts with no DPL.

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:


	Six Months Ended June 30,
	2025			2024
	(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date	$	5,475		$	5,687

Balance, beginning of period, at original discount rate	$	5,568		$	5,566
Effect of actual variances from expected experience	(3)			13
Adjusted balance	5,565			5,579
Interest accrual	141			141
Net premiums collected	(280)			(286)
Ending balance at original discount rate	5,426			5,434
Effect of changes in discount rate assumptions	(6)			(80)
Balance, end of period, at current discount rate at balance sheet date	$	5,420		$	5,354

Present Value of Expected FPBs
Balance, beginning of period, at current discount rate at balance sheet date	$	20,012		$	20,927

Balance, beginning of period, at original discount rate	$	21,024		$	20,494
Effect of actual variances from expected experience	26			31
Adjusted balance	21,050			20,525
Interest accrual	553			540
Benefit payments	(452)			(421)
Ending balance at original discount rate	21,151			20,644
Effect of changes in discount rate assumptions	(928)			(835)
Balance, end of period, at current discount rate at balance sheet date	20,223			19,809

Net liability for FPBs	$	14,803		$	14,455

Undiscounted:
Expected future gross premiums	$	10,269		$	10,280
Expected future benefit payments	$	44,566		$	44,653
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums	$	6,870		$	6,715
Expected future benefit payments	$	20,223		$	19,809
Weighted-average duration of the liability	13 years			14 years
Weighted-average interest accretion (original locked-in) rate	5.4		%	5.4		%
Weighted-average current discount rate at balance sheet date	5.8		%	5.8		%

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 whereby 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 whereby the Company guarantees to the contractholder a secondary guarantee. Information regarding these additional insurance liabilities was as follows:


	Six Months Ended June 30,
	2025			2024			2025			2024
	Variable Life						Universal and Variable Universal Life
	(Dollars in millions)
Balance, beginning of period	$	1,108		$	1,258		$	355		$	424
Less: Accumulated other comprehensive income (loss) (“AOCI”) adjustment	—			—			10			(14)
Balance, beginning of period, before AOCI adjustment	1,108			1,258			345			438
Effect of actual variances from expected experience	(6)			(14)			(4)			(32)
Adjusted balance	1,102			1,244			341			406
Assessments accrual	(2)			(2)			—			—
Interest accrual	9			9			3			3
Excess benefits paid	(19)			(23)			—			—
Effect of foreign currency translation and other, net	98			(154)			31			(53)
Balance, end of period, before AOCI adjustment	1,188			1,074			375			356
Add: AOCI adjustment	—			—			11			(2)
Balance, end of period	$	1,188		$	1,074		$	386		$	354

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

MetLife Holdings

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


	Six Months Ended June 30,
	2025			2024
	Universal and Variable Universal Life
	(Dollars in millions)
Balance, beginning of period	$	2,496		$	2,362
Less: AOCI adjustment	(17)			(14)
Balance, beginning of period, before AOCI adjustment	2,513			2,376
Effect of actual variances from expected experience	18			28
Adjusted balance	2,531			2,404
Assessments accrual	54			51
Interest accrual	68			65
Excess benefits paid	(71)			(70)
Balance, end of period, before AOCI adjustment	2,582			2,450
Add: AOCI adjustment	(15)			(16)
Balance, end of period	2,567			2,434
Less: Reinsurance recoverables	2,230			2,117
Balance, end of period, net of reinsurance	$	337		$	317

Weighted-average duration of the liability	15 years			15 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:


		Six Months Ended June 30,
		2025				2024
		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		$	2,799	$	1,676	$	4,246	$	1,526
Asia:
Whole and term life & endowments		600		149		564		149
Accident & health		1,561		126		1,551		122
Latin America - Fixed annuities		742		179		499		162
MetLife Holdings - Long-term care		359		412		362		399
Deferred Profit Liabilities:
RIS - Annuities		N/A		91		N/A		88
Asia:
Whole and term life & endowments		N/A		21		N/A		17
Accident & health		N/A		11		N/A		9
Latin America - Fixed annuities		N/A		10		N/A		10
Additional Insurance Liabilities:
Asia:
Variable life		72		9		55		9
Universal and variable universal life		1		3		(33)		3
MetLife Holdings - Universal and variable universal life		317		68		334		65
Other long-duration		2,476		243		2,132		239
Total		$	8,927	$	2,998	$	9,710	$	2,798

__________________

(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:


	Six Months Ended June 30,
	2025		2024
	(In millions)
Balance, beginning of period	$	16,118	$	16,468
Less: Reinsurance recoverables	2,790		2,592
Net balance, beginning of period	13,328		13,876
Incurred related to:
Current period	14,590		13,420
Prior periods (1)	138		99
Total incurred	14,728		13,519
Paid related to:
Current period	(9,127)		(8,723)
Prior periods	(4,763)		(4,921)
Total paid	(13,890)		(13,644)


Net balance, end of period	14,166		13,751
Add: Reinsurance recoverables	3,022		2,762
Balance, end of period (included in FPBs and other policy-related balances)	$	17,188	$	16,513

__________________

(1)For the six months ended June 30, 2025 and 2024, 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.