Closed Block

6 Months Ended

Jun. 30, 2025

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 2024 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, 2025		December 31, 2024
	(In millions)
Closed Block Liabilities
FPBs	$	34,395	$	35,015
Other policy-related balances	277		315
Policyholder dividends payable	170		174
Policyholder dividend obligation	—		—
Current income tax payable	10		6
Other liabilities	1,093		854
Total closed block liabilities	35,945		36,364
Assets Designated to the Closed Block
Investments:
Fixed maturity securities available-for-sale (“AFS”), at estimated fair value	19,113		18,958
Equity securities, at estimated fair value	5		11
Mortgage loans	5,516		5,720
Policy loans	3,737		3,829
Real estate and REJV	682		659
Other invested assets	331		512
Total investments	29,384		29,689
Cash and cash equivalents	1,169		930
Accrued investment income	360		367
Premiums, reinsurance and other receivables	41		45
Deferred income tax asset	408		470
Total assets designated to the closed block	31,362		31,501
Excess of closed block liabilities over assets designated to the closed block	4,583		4,863
AOCI:
Unrealized investment gains (losses), net of income tax	(842)		(1,256)
Unrealized gains (losses) on derivatives, net of income tax	31		183
Total amounts included in AOCI	(811)		(1,073)
Maximum future earnings to be recognized from closed block assets and liabilities	$	3,772	$	3,790

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
	(In millions)
Revenues
Premiums	$	205	$	216	$	412	$	434
Net investment income	330		342		655		685
Net investment gains (losses)	(42)		(13)		(59)		(20)
Net derivative gains (losses)	(7)		2		(8)		7
Total revenues	486		547		1,000		1,106
Expenses
Policyholder benefits and claims	379		415		766		819
Policyholder dividends	85		86		173		176
Other expenses	20		20		38		40
Total expenses	484		521		977		1,035
Revenues, net of expenses before provision for income tax expense (benefit)	2		26		23		71
Provision for income tax expense (benefit)	1		5		5		15
Revenues, net of expenses and provision for income tax expense (benefit)	$	1	$	21	$	18	$	56

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.