Investments

3 Months Ended

Mar. 31, 2012

Investments [Abstract]

Investments

3.  Investments

Fixed Maturity and Equity Securities Available-for-Sale

Presented below is certain information about fixed maturity and equity securities for the periods shown. The unrealized loss amounts presented below include the noncredit loss component of other-than-temporary impairment (“OTTI”) losses:

	March 31, 2012
	Cost or Amortized Cost		Gross Unrealized						Estimated Fair Value		% of Total
			Gains		Temporary Losses		OTTI Losses
	(In millions)
Fixed Maturity Securities:
U.S. corporate securities	$	97,827	$	8,327	$	881	$	—	$	105,273		29.7	%
Foreign corporate securities		61,857		4,149		651		1		65,354		18.4
Foreign government securities		52,086		3,428		176		—		55,338		15.6
U.S. Treasury and agency securities		37,187		4,316		87		—		41,416		11.7
Residential mortgage-backed securities (“RMBS”)		40,487		2,243		805		646		41,279		11.7
Commercial mortgage-backed securities (“CMBS”)		17,980		863		108		3		18,732		5.3
State and political subdivision securities		12,425		1,604		113		—		13,916		3.9
Asset-backed securities (“ABS”)		13,132		273		244		18		13,143		3.7
Total fixed maturity securities	$	332,981	$	25,203	$	3,065	$	668	$	354,451		100.0	%
Equity Securities:
Common stock	$	2,155	$	109	$	22	$	—	$	2,242		73.7	%
Non-redeemable preferred stock		908		48		155		—		801		26.3
Total equity securities	$	3,063	$	157	$	177	$	—	$	3,043		100.0	%

	December 31, 2011
	Cost or Amortized Cost		Gross Unrealized						Estimated Fair Value		% of Total
			Gains		Temporary Losses		OTTI Losses
	(In millions)
Fixed Maturity Securities:
U.S. corporate securities	$	98,621	$	8,544	$	1,380	$	—	$	105,785		30.2	%
Foreign corporate securities		61,568		3,789		1,338		1		64,018		18.3
Foreign government securities		49,840		3,053		357		—		52,536		15.0
U.S. Treasury and agency securities		34,132		5,882		2		—		40,012		11.4
RMBS		42,092		2,281		1,033		703		42,637		12.2
CMBS		18,565		730		218		8		19,069		5.4
State and political subdivision securities		11,975		1,416		156		—		13,235		3.8
ABS		13,018		278		305		12		12,979		3.7
Total fixed maturity securities	$	329,811	$	25,973	$	4,789	$	724	$	350,271		100.0	%
Equity Securities:
Common stock	$	2,219	$	83	$	97	$	—	$	2,205		72.9	%
Non-redeemable preferred stock		989		31		202		—		818		27.1
Total equity securities	$	3,208	$	114	$	299	$	—	$	3,023		100.0	%

The Company held non-income producing fixed maturity securities with an estimated fair value of $22 million and $62 million with unrealized gains (losses) of ($9) million and ($19) million at March 31, 2012 and December 31, 2011, respectively.

Concentrations of Credit Risk — Summary. The Company was not exposed to any concentrations of credit risk of any single issuer within its fixed maturity securities and equity securities greater than 10% of the Company’s equity, other than the government and agency securities summarized in the table below at:

	March 31, 2012		December 31, 2011
	Carrying Value (1)
	(In millions)
U.S. Treasury and agency securities included in:
Fixed maturity securities	$	41,416	$	40,012
Short-term investments		10,023		15,775
Cash equivalents		3,072		1,748
Total U.S. Treasury and agency securities	$	54,511	$	57,535
Japan government and agency securities included in:
Fixed maturity securities	$	20,562	$	21,003
Short-term investments		62		—
Cash equivalents		395		—
Total Japan government and agency securities	$	21,019	$	21,003

(1) Represents estimated fair value for fixed maturity securities, and for short-term investments and cash equivalents, estimated fair value or amortized cost, which approximates estimated fair value.

Maturities of Fixed Maturity Securities. The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date (excluding scheduled sinking funds), were as follows at:

	March 31, 2012				December 31, 2011
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
			(In millions)
Due in one year or less	$	19,016	$	19,154	$	16,747	$	16,862
Due after one year through five years		63,283		65,588		62,819		64,414
Due after five years through ten years		82,469		89,080		82,694		88,036
Due after ten years		96,614		107,475		93,876		106,274
Subtotal		261,382		281,297		256,136		275,586
RMBS, CMBS and ABS		71,599		73,154		73,675		74,685
Total fixed maturity securities	$	332,981	$	354,451	$	329,811	$	350,271

Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been included in the above table in the year of final contractual maturity. RMBS, CMBS and ABS are shown separately in the table, as they are not due at a single maturity.

Evaluating Available-for-Sale Securities for Other-Than-Temporary Impairment

As described more fully in Note 1 of the Notes to the Consolidated Financial Statements included in the 2011 Annual Report, the Company performs a regular evaluation, on a security-by-security basis, of its available-for-sale securities holdings, including fixed maturity securities, equity securities and perpetual hybrid securities, in accordance with its impairment policy in order to evaluate whether such investments are other-than-temporarily impaired.

Net Unrealized Investment Gains (Losses)

The components of net unrealized investment gains (losses), included in accumulated other comprehensive income (loss), were as follows:

	March 31, 2012			December 31, 2011
	(In millions)
Fixed maturity securities	$	22,011		$	21,096
Fixed maturity securities with noncredit OTTI losses in accumulated other comprehensive income (loss)		(668	)		(724	)
Total fixed maturity securities		21,343			20,372
Equity securities		5			(167	)
Derivatives		1,019			1,514
Other		9			72
Subtotal		22,376			21,791
Amounts allocated from:
Insurance liability loss recognition		(3,454	)		(3,996	)
DAC and VOBA related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)		41			47
DAC and VOBA		(1,820	)		(1,800	)
Policyholder dividend obligation		(2,700	)		(2,919	)
Subtotal		(7,933	)		(8,668	)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)		217			236
Deferred income tax benefit (expense)		(5,150	)		(4,694	)
Net unrealized investment gains (losses)		9,510			8,665
Net unrealized investment gains (losses) attributable to noncontrolling interests		9			9
Net unrealized investment gains (losses) attributable to MetLife, Inc	$	9,519		$	8,674

The changes in fixed maturity securities with noncredit OTTI losses included in accumulated other comprehensive income (loss), were as follows:

	March 31, 2012			December 31, 2011
	(In millions)
Balance, beginning of period	$	(724	)	$	(601	)
Noncredit OTTI losses recognized (1)		(2	)		31
Securities sold with previous noncredit OTTI loss		50			125
Subsequent changes in estimated fair value		8			(279	)
Balance, end of period	$	(668	)	$	(724	)

(1) Noncredit OTTI losses recognized, net of DAC, were ($8) million and $33 million for the periods ended March 31, 2012 and December 31, 2011, respectively.

The changes in net unrealized investment gains (losses) were as follows:

	Three Months Ended March 31, 2012
	(In millions)
Balance, beginning of period	$	8,674
Fixed maturity securities on which noncredit OTTI losses have been recognized		56
Unrealized investment gains (losses) during the period		529
Unrealized investment gains (losses) relating to:
Insurance liability gain (loss) recognition		542
DAC and VOBA related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)		(6	)
DAC and VOBA		(20	)
Policyholder dividend obligation		219
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)		(19	)
Deferred income tax benefit (expense)		(456	)
Net unrealized investment gains (losses)		9,519
Net unrealized investment gains (losses) attributable to noncontrolling interests		—
Balance, end of period	$	9,519
Change in net unrealized investment gains (losses)	$	845
Change in net unrealized investment gains (losses) attributable to noncontrolling interests		—
Change in net unrealized investment gains (losses) attributable to MetLife, Inc	$	845

Continuous Gross Unrealized Losses and OTTI Losses for Fixed Maturity and Equity Securities Available-for-Sale by Sector

Presented below is certain information about the estimated fair value and gross unrealized losses of fixed maturity and equity securities in an unrealized loss position. The unrealized loss amounts presented below include the noncredit component of OTTI loss. Fixed maturity securities on which a noncredit OTTI loss has been recognized in accumulated other comprehensive income (loss) are categorized by length of time as being “less than 12 months” or “equal to or greater than 12 months” in a continuous unrealized loss position based on the point in time that the estimated fair value initially declined to below the amortized cost basis and not the period of time since the unrealized loss was deemed a noncredit OTTI loss.

	March 31, 2012
	Less than 12 Months				Equal to or Greater than 12 Months				Total
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(In millions, except number of securities)
Fixed Maturity Securities:
U.S. corporate securities	$	10,097	$	293	$	4,125	$	588	$	14,222	$	881
Foreign corporate securities		8,410		265		4,719		387		13,129		652
Foreign government securities		4,831		84		1,322		92		6,153		176
U.S. Treasury and agency securities		8,512		83		37		4		8,549		87
RMBS		4,698		406		4,565		1,045		9,263		1,451
CMBS		1,189		33		714		78		1,903		111
State and political subdivision securities		352		5		544		108		896		113
ABS		3,810		80		1,343		182		5,153		262
Total fixed maturity securities	$	41,899	$	1,249	$	17,369	$	2,484	$	59,268	$	3,733
Equity Securities:
Common stock	$	347	$	22	$	4	$	—	$	351	$	22
Non-redeemable preferred stock		62		9		326		146		388		155
Total equity securities	$	409	$	31	$	330	$	146	$	739	$	177
Total number of securities in an unrealized loss position		3,555				1,674

	December 31, 2011
	Less than 12 Months				Equal to or Greater than 12 Months				Total
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(In millions, except number of securities)
Fixed Maturity Securities:
U.S. corporate securities	$	15,642	$	590	$	5,135	$	790	$	20,777	$	1,380
Foreign corporate securities		12,618		639		5,957		700		18,575		1,339
Foreign government securities		11,227		230		1,799		127		13,026		357
U.S. Treasury and agency securities		2,611		1		50		1		2,661		2
RMBS		4,040		547		4,724		1,189		8,764		1,736
CMBS		2,825		135		678		91		3,503		226
State and political subdivision securities		177		2		1,007		154		1,184		156
ABS		4,972		103		1,316		214		6,288		317
Total fixed maturity securities	$	54,112	$	2,247	$	20,666	$	3,266	$	74,778	$	5,513
Equity Securities:
Common stock	$	581	$	96	$	5	$	1	$	586	$	97
Non-redeemable preferred stock		204		30		370		172		574		202
Total equity securities	$	785	$	126	$	375	$	173	$	1,160	$	299
Total number of securities in an unrealized loss position		3,978				1,963

Aging of Gross Unrealized Losses and OTTI Losses for Fixed Maturity and Equity Securities Available-for-Sale

Presented below is certain information about the aging and severity of gross unrealized losses on fixed maturity and equity securities, including the portion of OTTI loss on fixed maturity securities recognized in accumulated other comprehensive income (loss) at:

	March 31, 2012
	Cost or Amortized Cost				Gross Unrealized Losses						Number of Securities
	Less than 20%		20% or more		Less than 20%			20% or more			Less than 20%		20% or more
	(In millions, except number of securities)
Fixed Maturity Securities:
Less than six months	$	27,651	$	971	$	441		$	258			2,367		118
Six months or greater but less than nine months		11,280		1,549		367			452			820		84
Nine months or greater but less than twelve months		3,306		791		149			237			292		43
Twelve months or greater		15,271		2,182		1,006			823			1,340		162
Total	$	57,508	$	5,493	$	1,963		$	1,770
Percentage of amortized cost						3	%		32	%
Equity Securities:
Less than six months	$	139	$	46	$	5		$	14			64		16
Six months or greater but less than nine months		233		112		17			32			50		7
Nine months or greater but less than twelve months		49		—		3			—			17		1
Twelve months or greater		114		223		8			98			20		19
Total	$	535	$	381	$	33		$	144
Percentage of cost						6	%		38	%

	December 31, 2011
	Cost or Amortized Cost				Gross Unrealized Losses						Number of Securities
	Less than 20%		20% or more		Less than 20%			20% or more			Less than 20%		20% or more
	(In millions, except number of securities)
Fixed Maturity Securities:
Less than six months	$	49,249	$	4,736	$	1,346		$	1,332			3,260		320
Six months or greater but less than nine months		4,104		1,049		279			349			375		63
Nine months or greater but less than twelve months		1,160		288		55			93			143		14
Twelve months or greater		17,590		2,115		1,216			843			1,523		167
Total	$	72,103	$	8,188	$	2,896		$	2,617
Percentage of amortized cost						4	%		32	%
Equity Securities:
Less than six months	$	714	$	376	$	64		$	123			154		42
Six months or greater but less than nine months		22		8		2			4			19		3
Nine months or greater but less than twelve months		18		—		2			—			8		—
Twelve months or greater		98		223		8			96			24		20
Total	$	852	$	607	$	76		$	223
Percentage of cost						9	%		37	%

Equity securities with gross unrealized losses of 20% or more for twelve months or greater increased from $96 million at December 31, 2011 to $98 million at March 31, 2012. As shown in the section “— Evaluating Temporarily Impaired Available-for-Sale Securities” below, all of the equity securities with gross unrealized losses of 20% or more for twelve months or greater at March 31, 2012 were financial services industry investment grade non-redeemable preferred stock, of which 72% were rated A or better.

Concentration of Gross Unrealized Losses and OTTI Losses for Fixed Maturity and Equity Securities Available-for-Sale

The gross unrealized losses related to fixed maturity and equity securities, including the portion of OTTI losses on fixed maturity securities recognized in accumulated other comprehensive income (loss) were $3.9 billion and $5.8 billion at March 31, 2012 and December 31, 2011, respectively. The concentration, calculated as a percentage of gross unrealized losses (including OTTI losses), by sector and industry was as follows at:

	March 31, 2012			December 31, 2011
Sector:
RMBS		37	%		30	%
U.S. corporate securities		23			24
Foreign corporate securities		17			23
ABS		7			5
Foreign government securities		4			6
State and political subdivision securities		3			3
CMBS		3			4
U.S. Treasury and agency securities		2			—
Other		4			5
Total		100	%		100	%
Industry:
Mortgage-backed		40	%		34	%
Finance		20			27
Utility		8			8
Asset-backed		7			5
Consumer		5			6
Foreign government securities		4			6
State and political subdivision securities		3			3
Communications		2			3
U.S. Treasury and agency securities		2			—
Industrial		2			2
Other		7			6
Total		100	%		100	%

Evaluating Temporarily Impaired Available-for-Sale Securities

The following table presents fixed maturity and equity securities, each with gross unrealized losses of greater than $10 million, the number of securities, total gross unrealized losses and percentage of total gross unrealized losses at:

	March 31, 2012						December 31, 2011
	Fixed Maturity Securities			Equity Securities			Fixed Maturity Securities			Equity Securities
	(In millions, except number of securities)
Number of securities		59			4			96			8
Total gross unrealized losses		1,130		$	77		$	1,703		$	117
Percentage of total gross unrealized losses		30	%		44	%		31	%		39	%

Fixed maturity and equity securities, each with gross unrealized losses greater than $10 million, decreased $613 million during the three months ended March 31, 2012. The decline in, or improvement in, gross unrealized losses for the three months ended March 31, 2012 was primarily attributable to narrowing credit spreads, partially offset by an increase in interest rates. These securities were included in the Company’s OTTI review process.

As of March 31, 2012, $1.5 billion of unrealized losses were from fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for six months or greater. Of the $1.5 billion, $598 million, or 40%, are related to unrealized losses on investment grade securities. Unrealized losses on investment grade securities are principally related to widening credit spreads or rising interest rates since purchase. Of the $1.5 billion, $914 million, or 60%, are related to unrealized losses on below investment grade securities. Unrealized losses on below investment grade securities are principally related to non-agency RMBS (primarily alternative residential mortgage loans and sub-prime residential mortgage loans), U.S. and foreign corporate securities (primarily utility, financial services and transportation industry securities) and ABS (primarily collateralized debt obligations) and were the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainties including concerns over the financial services sector, unemployment levels and valuations of residential real estate supporting non-agency RMBS. See Note 1 of the Notes to the Consolidated Financial Statements included in the 2011 Annual Report for the factors management considers in evaluating these corporate and structured securities. See “— Aging of Gross Unrealized Losses and OTTI Losses for Fixed Maturity and Equity Securities Available-for-Sale” for a discussion of equity securities with an unrealized loss position of 20% or more of cost for 12 months or greater.

In the Company’s impairment review process, the duration and severity of an unrealized loss position for equity securities are given greater weight and consideration than for fixed maturity securities. An extended and severe unrealized loss position on a fixed maturity security may not have any impact on the ability of the issuer to service all scheduled interest and principal payments and the Company’s evaluation of recoverability of all contractual cash flows or the ability to recover an amount at least equal to its amortized cost based on the present value of the expected future cash flows to be collected. In contrast, for an equity security, greater weight and consideration are given by the Company to a decline in market value and the likelihood such market value decline will recover.

The following table presents certain information about the Company’s equity securities available-for-sale with gross unrealized losses of 20% or more at March 31, 2012:

			Non-Redeemable Preferred Stock
	All Equity Securities		All Types of Non-Redeemable Preferred Stock					Investment Grade
								All Industries					Financial Services Industry
	Gross Unrealized Losses		Gross Unrealized Losses		% of All Equity Securities			Gross Unrealized Losses		% of All Non-Redeemable Preferred Stock			Gross Unrealized Losses		% of All Industries			% A Rated or Better
	(In millions)							(In millions)					(In millions)
Less than six months	$	14	$	13		93	%	$	2		15	%	$	2		100	%		100	%
Six months or greater but less than twelve months		32		32		100	%		23		72	%		23		100	%		30	%
Twelve months or greater		98		98		100	%		98		100	%		98		100	%		72	%
All equity securities with gross unrealized losses of 20% or more	$	144	$	143		99	%	$	123		86	%	$	123		100	%		65	%

In connection with the equity securities impairment review process, the Company evaluated its holdings in non-redeemable preferred stock, particularly those in the financial services sector. The Company considered several factors including whether there has been any deterioration in credit of the issuer and the likelihood of recovery in value of non-redeemable preferred stock with a severe or an extended unrealized loss. The Company also considered whether any issuers of non-redeemable preferred stock with an unrealized loss held by the Company, regardless of credit rating, have deferred any dividend payments. No such dividend payments had been deferred.

With respect to common stock holdings, the Company considered the duration and severity of the unrealized losses for securities in an unrealized loss position of 20% or more; and the duration of unrealized losses for securities in an unrealized loss position of less than 20% in an extended unrealized loss position (i.e., 12 months or greater).

Based on the Company’s current evaluation of available-for-sale securities in an unrealized loss position in accordance with its impairment policy, and the Company’s current intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities, the Company has concluded that these securities are not other-than-temporarily impaired.

Future OTTIs will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), changes in credit ratings, changes in collateral valuation, changes in interest rates and changes in credit spreads. If economic fundamentals or any of the above factors deteriorate, additional OTTIs may be incurred in upcoming quarters.

Trading and Other Securities

The table below presents certain information about the Company’s trading securities that are actively purchased and sold (“Actively Traded Securities”) and other securities for which the fair value option (“FVO”) has been elected at:

	March 31, 2012			December 31, 2011
	(In millions)
Actively Traded Securities	$	544		$	473
FVO general account securities		274			267
FVO contractholder-directed unit-linked investments		18,119			17,411
FVO securities held by CSEs		89			117
Total trading and other securities — at estimated fair value	$	19,026		$	18,268
Actively Traded Securities — at estimated fair value	$	544		$	473
Short sale agreement liabilities — at estimated fair value		(169	)		(127	)
Net long/short position — at estimated fair value	$	375		$	346
Investments pledged to secure short sale agreement liabilities	$	624		$	558

See Note 1 of the Notes to the Consolidated Financial Statements included in the 2011 Annual Report, for discussion of FVO contractholder-directed unit-linked investments and “— Variable Interest Entities” for discussion of consolidated securitization entities (“CSEs”) included in the table above. See “— Net Investment Income” and “— Net Investment Gains (Losses)” for the net investment income recognized on trading and other securities and the related changes in estimated fair value subsequent to purchase included in earnings for securities still held as of the end of the respective periods.

Net Investment Gains (Losses)

The components of net investment gains (losses) were as follows:

	Three Months Ended March 31,
	2012			2011
	(In millions)
Total gains (losses) on fixed maturity securities:
Total OTTI losses recognized	$	(135	)	$	(132	)
Less: Noncredit portion of OTTI losses transferred to and recognized in other comprehensive income (loss)		2			9
Net OTTI losses on fixed maturity securities recognized in earnings		(133	)		(123	)
Fixed maturity securities — net gains (losses) on sales and disposals (1)		(7	)		(40	)
Total gains (losses) on fixed maturity securities		(140	)		(163	)
Other net investment gains (losses):
Equity securities		(9	)		36
Trading and other securities — FVO general account securities — changes in estimated fair value subsequent to purchase		4			—
Mortgage loans (1)		36			47
Real estate and real estate joint ventures		(4	)		1
Other limited partnership interests		(2	)		3
Other investment portfolio gains (losses)		(25	)		4
Subtotal — investment portfolio gains (losses)		(140	)		(72	)
FVO CSEs — changes in estimated fair value:
Commercial mortgage loans		6			18
Securities		—			(40	)
Long-term debt — related to securities		(11	)		47
Other gains (losses) (2)		35			(52	)
Subtotal FVO CSEs and other gains (losses)		30			(27	)
Total net investment gains (losses)	$	(110	)	$	(99	)

(1) Net investment gains (losses) for the three months ended March 31, 2012 includes a net gain of $95 million as a result of the pending disposition of certain operations of MetLife Bank, which is comprised of gains on securities and mortgage loans sold of $102 million, partially offset by impairments on mortgage loans of $7 million. See Note 2.

(2) Other gains (losses) includes a loss of $80 million for the three months ended March 31, 2011, related to the sale of the Company’s investment in Mitsui Sumitomo MetLife Insurance Co., Ltd. See Note 2 of the Notes to the Consolidated Financial Statements included in the 2011 Annual Report.

See “— Variable Interest Entities” for discussion of CSEs included in the table above.

Gains (losses) from foreign currency transactions included within net investment gains (losses) were $58 million and $35 million for the three months ended March 31, 2012 and 2011, respectively.

Proceeds from sales or disposals of fixed maturity and equity securities resulting in a net investment gain (loss) and the components of fixed maturity and equity securities net investment gains (losses) are as shown in the table below. Investment gains and losses on sales of securities are determined on a specific identification basis.

	Three Months Ended March 31,
	2012			2011			2012			2011			2012			2011
	Fixed Maturity Securities						Equity Securities						Total
	(In millions)
Proceeds	$	19,394		$	16,532		$	125		$	316		$	19,519		$	16,848
Gross investment gains	$	325		$	193		$	10		$	48		$	335		$	241
Gross investment losses		(332	)		(233	)		(4	)		(6	)		(336	)		(239	)
Total OTTI losses recognized in earnings:
Credit-related		(73	)		(43	)		—			—			(73	)		(43	)
Other (1)		(60	)		(80	)		(15	)		(6	)		(75	)		(86	)
Total OTTI losses recognized in earnings		(133	)		(123	)		(15	)		(6	)		(148	)		(129	)
Net investment gains (losses)	$	(140	)	$	(163	)	$	(9	)	$	36		$	(149	)	$	(127	)

(1) Other OTTI losses recognized in earnings include impairments on equity securities, impairments on perpetual hybrid securities classified within fixed maturity securities where the primary reason for the impairment was the severity and/or the duration of an unrealized loss position and fixed maturity securities where there is an intent-to-sell or it is more likely than not that the Company will be required to sell the security before recovery of the decline in estimated fair value.

Fixed maturity security OTTI losses recognized in earnings related to the following sectors and industries within the U.S. and foreign corporate securities sector:

	Three Months Ended March 31,
	2012		2011
	(In millions)
Sector:
U.S. and foreign corporate securities — by industry:
Utility	$	38	$	1
Finance		32		1
Communications		17		13
Consumer		3		2
Industrial		1		—
Total U.S. and foreign corporate securities		91		17
CMBS		30		3
RMBS (1)		9		24
ABS (1)		2		3
State and political subdivision securities		1		—
Foreign government securities		—		76
Total	$	133	$	123

(1) See Note 3 of the Notes to the Consolidated Financial Statements included in the 2011 Annual Report for discussion of a reclassification from the ABS sector to the RMBS sector for securities backed by sub-prime residential mortgage loans.

Equity security OTTI losses recognized in earnings of $15 million and $6 million for the three months ended March 31, 2012 and 2011, respectively, were all in the common stock sector.

Credit Loss Rollforward

Presented below is a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still held for which a portion of the OTTI loss was recognized in other comprehensive income (loss):

	Three Months Ended March 31,
	2012			2011
	(In millions)
Balance, beginning of period	$	471		$	443
Additions:
Initial impairments — credit loss OTTI recognized on securities not previously impaired		16			8
Additional impairments — credit loss OTTI recognized on securities previously impaired		6			16
Reductions:
Sales, maturities, pay downs and prepayments during the period of securities previously impaired as credit loss OTTI		(104	)		(29	)
Securities impaired to net present value of expected future cash flows		(8	)		(44	)
Increases in cash flows — accretion of previous credit loss OTTI		—			(5	)
Balance, end of period	$	381		$	389

Net Investment Income

The components of net investment income were as follows:

	Three Months Ended March 31,
	2012		2011
	(In millions)
Investment income:
Fixed maturity securities	$	3,808	$	3,683
Equity securities		32		30
Trading and other securities — Actively Traded Securities and FVO general account securities (1)		45		28
Mortgage loans		830		759
Policy loans		158		160
Real estate and real estate joint ventures		178		147
Other limited partnership interests		182		243
Cash, cash equivalents and short-term investments		36		46
International joint ventures (2)		3		(21	)
Other		41		(32	)
Subtotal		5,313		5,043
Less: Investment expenses		260		245
Subtotal, net		5,053		4,798
Trading and other securities — FVO contractholder-directed unit-linked investments (1)		1,015		419
Securitized reverse residential mortgage loans		85		—
FVO CSEs:
Commercial mortgage loans		45		95
Securities		2		1
Subtotal		1,147		515
Net investment income	$	6,200	$	5,313

(1) Changes in estimated fair value subsequent to purchase for securities still held as of the end of the respective periods included in net investment income were:

Actively Traded Securities and FVO general account securities	$	29	$	21
FVO contractholder-directed unit-linked investments	$	877	$	316

(2) Amounts are presented net of changes in estimated fair value of derivatives related to economic hedges of the Company’s investment in these equity method international joint venture investments that do not qualify for hedge accounting of $0 and ($23) million for the three months ended March 31, 2012 and 2011, respectively.

See “— Variable Interest Entities” for discussion of CSEs included in the table above.

Securities Lending

As described more fully in Note 1 of the Notes to the Consolidated Financial Statements included in the 2011 Annual Report, the Company participates in a securities lending program whereby blocks of securities are loaned to third parties. These transactions are treated as financing arrangements and the associated cash collateral received is recorded as a liability. The Company is obligated to return the cash collateral received to its counterparties.

Elements of the securities lending program are presented below at:

	March 31, 2012		December 31, 2011
	(In millions)
Securities on loan: (1)
Amortized cost	$	22,033	$	20,613
Estimated fair value	$	24,629	$	24,072
Cash collateral on deposit from counterparties (2)	$	25,265	$	24,223
Security collateral on deposit from counterparties	$	120	$	371
Reinvestment portfolio — estimated fair value	$	25,208	$	23,940

(1) Included within fixed maturity securities, short-term investments and cash and cash equivalents.

(2) Included within payables for collateral under securities loaned and other transactions.

Security collateral on deposit from counterparties in connection with the securities lending transactions may not be sold or repledged, unless the counterparty is in default, and is not reflected in the interim condensed consolidated financial statements.

Invested Assets on Deposit, Held in Trust and Pledged as Collateral

Invested assets on deposit, held in trust and pledged as collateral are presented in the table below at estimated fair value for cash and cash equivalents, short-term investments, fixed maturity securities, equity securities, and trading and other securities and at carrying value for mortgage loans.

	March 31, 2012		December 31, 2011
	(In millions)
Invested assets on deposit (1)	$	2,621	$	1,660
Invested assets held in trust (2)		10,936		11,135
Invested assets pledged as collateral (3)		26,894		29,899
Total invested assets on deposit, held in trust and pledged as collateral	$	40,451	$	42,694

(1) The Company has invested assets on deposit with regulatory agencies consisting primarily of cash and cash equivalents, short-term investments, fixed maturity securities and equity securities.

(2) The Company held in trust cash and securities, primarily fixed maturity and equity securities, to satisfy requirements under certain collateral financing agreements and certain reinsurance agreements.

(3) The Company has pledged fixed maturity securities, mortgage loans and cash and cash equivalents in connection with various agreements and transactions, including funding and advances agreements (see Notes 8 and 11 of the Notes to the Consolidated Financial Statements included in the 2011 Annual Report), collateralized borrowings (see Note 11 of the Notes to the Consolidated Financial Statements included in the 2011 Annual Report), collateral financing arrangements (see Note 12 of the Notes to the Consolidated Financial Statements included in the 2011 Annual Report), derivative transactions (see Note 4), and short sale agreements (see “— Trading and Other Securities”).

Mortgage Loans

Mortgage loans are summarized as follows at:

	March 31, 2012						December 31, 2011
	Carrying Value			% of Total			Carrying Value			% of Total
	(In millions)						(In millions)
Mortgage loans held-for-investment:
Commercial	$	40,329			58.8	%	$	40,440			56.1	%
Agricultural		12,946			18.9			13,129			18.2
Residential		788			1.2			689			1.0
Subtotal		54,063			78.9			54,258			75.3
Valuation allowances		(446	)		(0.7	)		(481	)		(0.7	)
Subtotal mortgage loans held-for-investment, net		53,617			78.2			53,777			74.6
Commercial mortgage loans held by CSEs		3,024			4.4			3,138			4.4
Total mortgage loans held-for-investment, net		56,641			82.6			56,915			79.0
Mortgage loans held-for-sale:
Residential		921			1.3			3,064			4.2
Mortgage loans — lower of amortized cost or estimated fair value		2,743			4.0			4,462			6.2
Securitized reverse residential mortgage loans		8,283			12.1			7,652			10.6
Total mortgage loans held-for-sale		11,947			17.4			15,178			21.0
Total mortgage loans, net	$	68,588			100.0	%	$	72,093			100.0	%

See “— Variable Interest Entities” for discussion of CSEs included in the table above.

Certain of the Company’s real estate joint ventures have mortgage loans with the Company. The carrying values of such mortgage loans were $284 million and $286 million at March 31, 2012 and December 31, 2011, respectively.

The following tables present certain information about mortgage loans held-for-investment and valuation allowances, by portfolio segment, at:

	Commercial		Agricultural		Residential		Total
	(In millions)
March 31, 2012:
Mortgage loans:
Evaluated individually for credit losses	$	113	$	157	$	12	$	282
Evaluated collectively for credit losses		40,216		12,789		776		53,781
Total mortgage loans		40,329		12,946		788		54,063
Valuation allowances:
Specific credit losses		61		43		1		105
Non-specifically identified credit losses		307		32		2		341
Total valuation allowances		368		75		3		446
Mortgage loans, net of valuation allowance	$	39,961	$	12,871	$	785	$	53,617
December 31, 2011:
Mortgage loans:
Evaluated individually for credit losses	$	96	$	159	$	13	$	268
Evaluated collectively for credit losses		40,344		12,970		676		53,990
Total mortgage loans		40,440		13,129		689		54,258
Valuation allowances:
Specific credit losses		59		45		1		105
Non-specifically identified credit losses		339		36		1		376
Total valuation allowances		398		81		2		481
Mortgage loans, net of valuation allowance	$	40,042	$	13,048	$	687	$	53,777

The following tables present the changes in the valuation allowance, by portfolio segment:

	Mortgage Loan Valuation Allowances
	Commercial			Agricultural			Residential			Total
	(In millions)
For the Three Months Ended March 31, 2012:
Balance, beginning of period	$	398		$	81		$	2		$	481
Provision (release)		(30	)		(6	)		1			(35	)
Charge-offs, net of recoveries		—			—			—			—
Balance, end of period	$	368		$	75		$	3		$	446
For the Three Months Ended March 31, 2011:
Balance, beginning of period	$	562		$	88		$	14		$	664
Provision (release)		(30	)		(9	)		—			(39	)
Charge-offs, net of recoveries		—			(3	)		(1	)		(4	)
Balance, end of period	$	532		$	76		$	13		$	621

See Note 1 of the Notes to the Consolidated Financial Statements included in the 2011 Annual Report for a discussion of all credit quality indicators presented herein. Recorded investment data presented herein is prior to valuation allowance. Unpaid principal balance data presented herein is generally prior to charge-offs.

Commercial Mortgage Loans — by Credit Quality Indicators with Estimated Fair Value. Presented below is certain information about the credit quality of the commercial mortgage loans held-for-investment at:

	Commercial
	Recorded Investment											Estimated Fair Value		% of Total
	Debt Service Coverage Ratios						Total		% of Total
	> 1.20x		1.00x - 1.20x		< 1.00x
			(In millions)									(In millions)
March 31, 2012:
Loan-to-value ratios:
Less than 65%	$	26,167	$	590	$	538	$	27,295		67.7	%	$	29,059		69.2	%
65% to 75%		7,456		232		280		7,968		19.8			8,354		19.9
76% to 80%		1,036		111		226		1,373		3.4			1,197		2.8
Greater than 80%		2,516		740		437		3,693		9.1			3,411		8.1
Total	$	37,175	$	1,673	$	1,481	$	40,329		100.0	%	$	42,021		100.0	%
December 31, 2011:
Loan-to-value ratios:
Less than 65%	$	24,983	$	448	$	564	$	25,995		64.3	%	$	27,581		65.5	%
65% to 75%		8,275		336		386		8,997		22.3			9,387		22.3
76% to 80%		1,150		98		226		1,474		3.6			1,473		3.5
Greater than 80%		2,714		880		380		3,974		9.8			3,664		8.7
Total	$	37,122	$	1,762	$	1,556	$	40,440		100.0	%	$	42,105		100.0	%

Agricultural Mortgage Loans — by Credit Quality Indicator. Presented below is certain information about the credit quality of agricultural mortgage loans held-for-investment. The estimated fair value of agricultural mortgage loans held-for-investment was $13.4 billion and $13.6 billion at March 31, 2012 and December 31, 2011, respectively.

	Agricultural
	March 31, 2012					December 31, 2011
	Recorded Investment		% of Total			Recorded Investment		% of Total
	(In millions)					(In millions)
Loan-to-value ratios:
Less than 65%	$	11,786		91.0	%	$	11,802		89.9	%
65% to 75%		778		6.0			874		6.7
76% to 80%		13		0.1			76		0.6
Greater than 80%		369		2.9			377		2.8
Total	$	12,946		100.0	%	$	13,129		100.0	%

Residential Mortgage Loans — by Credit Quality Indicator. Presented below is certain information about the credit quality of residential mortgage loans held-for-investment. The estimated fair value of residential mortgage loans held-for-investment was $802 million and $737 million at March 31, 2012 and December 31, 2011, respectively.

	Residential
	March 31, 2012					December 31, 2011
	Recorded Investment		% of Total			Recorded Investment		% of Total
	(In millions)					(In millions)
Performance indicators:
Performing	$	770		97.7	%	$	671		97.4	%
Nonperforming		18		2.3			18		2.6
Total	$	788		100.0	%	$	689		100.0	%

Past Due and Interest Accrual Status of Mortgage Loans. The Company has a high quality, well performing, mortgage loan portfolio, with approximately 99% of all mortgage loans classified as performing at both March 31, 2012 and December 31, 2011. The Company defines delinquent mortgage loans consistent with industry practice, when interest and principal payments are past due as follows: commercial and residential mortgage loans — 60 days or more and agricultural mortgage loans — 90 days or more. Presented below is the recorded investment of past due and interest accrual status of mortgage loans held-for-investment at:

	Past Due				Greater than 90 Days Past Due Still Accruing Interest				Nonaccrual Status
	March 31, 2012		December 31, 2011		March 31, 2012		December 31, 2011		March 31, 2012		December 31, 2011
					(In millions)
Commercial	$	—	$	63	$	—	$	—	$	—	$	63
Agricultural		151		146		31		29		143		157
Residential		10		8		—		—		18		17
Total	$	161	$	217	$	31	$	29	$	161	$	237

Impaired Mortgage Loans. Presented below is certain information about impaired mortgage loans, included within mortgage loans held-for-investment, including those modified in a troubled debt restructuring, by portfolio segment, at:

	Impaired Mortgage Loans
	Loans with a Valuation Allowance								Loans without a Valuation Allowance				All Impaired Loans
	Unpaid Principal Balance		Recorded Investment		Valuation Allowances		Carrying Value		Unpaid Principal Balance		Recorded Investment		Unpaid Principal Balance		Carrying Value
	(In millions)
March 31, 2012:
Commercial	$	113	$	113	$	61	$	52	$	100	$	100	$	213	$	152
Agricultural		158		157		43		114		84		73		242		187
Residential		13		12		1		11		1		1		14		12
Total	$	284	$	282	$	105	$	177	$	185	$	174	$	469	$	351
December 31, 2011:
Commercial	$	96	$	96	$	59	$	37	$	252	$	237	$	348	$	274
Agricultural		160		159		45		114		71		69		231		183
Residential		13		13		1		12		1		1		14		13
Total	$	269	$	268	$	105	$	163	$	324	$	307	$	593	$	470

The average recorded investment in impaired mortgage loans held-for-investment, including those modified in a troubled debt restructuring, and the related interest income, by portfolio segment, was:

	Impaired Mortgage Loans
	Average Recorded Investment		Interest Income Recognized
			Cash Basis		Accrual Basis
			(In millions)
For the Three Months Ended March 31, 2012:
Commercial	$	273	$	3	$	—
Agricultural		229		1		—
Residential		14		—		—
Total	$	516	$	4	$	—
For the Three Months Ended March 31, 2011:
Commercial	$	242	$	3	$	1
Agricultural		278		2		—
Residential		19		—		—
Total	$	539	$	5	$	1

Mortgage Loans Modified in a Troubled Debt Restructuring.  See Note 1 of the Notes to the Consolidated Financial Statements included in the 2011 Annual Report for a discussion of loan modifications that are classified as troubled debt restructuring and the types of concessions typically granted. The number of mortgage loans and carrying value of mortgage loans modified during the period in a troubled debt restructuring were as follows:

	Mortgage Loans Modified in a Troubled Debt Restructuring
	March 31, 2012						March 31, 2011
	Number of Mortgage Loans		Carrying Value after Specific Valuation Allowance				Number of Mortgage Loans		Carrying Value after Specific Valuation Allowance
			Pre- Modification		Post- Modification				Pre- Modification		Post- Modification
			(In millions)						(In millions)
Commercial		—	$	—	$	—		1	$	53	$	55
Agricultural		—		—		—		2		10		11
Residential		—		—		—		—		—		—
Total		—	$	—	$	—		3	$	63	$	66

During the three months ended March 31, 2012, one agricultural mortgage loan with a carrying value after specific valuation allowance of $8 million defaulted, which was modified as a troubled debt restructuring during the previous twelve months. There were no such subsequent payment defaults for the three months ended March 31, 2011. Payment default is determined in the same manner as delinquency status — when interest and principal payments are past due as described above.

Cash Equivalents

The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $6.6 billion and $5.0 billion at March 31, 2012 and December 31, 2011, respectively.

Purchased Credit Impaired Investments

See Note 3 of the Notes to the Consolidated Financial Statements included in the 2011 Annual Report for information about investments acquired with evidence of credit quality deterioration since origination and for which it was probable at the acquisition date that the Company would be unable to collect all contractually required payments.

Variable Interest Entities

The Company holds investments in certain entities that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. The following table presents the total assets and total liabilities relating to VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at March 31, 2012 and December 31, 2011. Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment.

	March 31, 2012				December 31, 2011
	Total Assets		Total Liabilities		Total Assets		Total Liabilities
			(In millions)
CSEs (1)	$	3,131	$	2,944	$	3,299	$	3,103
MRSC collateral financing arrangement (2)		3,374		—		3,333		—
Other limited partnership interests		333		9		360		6
Trading and other securities		160		—		163		—
Other invested assets		102		1		102		1
Real estate joint ventures		11		14		16		18
Total	$	7,111	$	2,968	$	7,273	$	3,128

(1) The Company consolidates former qualified special purpose entities (“QSPEs”) that are structured as CMBS and former QSPEs that are structured as collateralized debt obligations. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company’s exposure was limited to that of its remaining investment in the former QSPEs of $176 million and $172 million at estimated fair value at March 31, 2012 and December 31, 2011, respectively. The long-term debt presented below bears interest primarily at fixed rates ranging from 2.25% to 5.57%, payable primarily on a monthly basis and is expected to be repaid over the next five years. Interest expense related to these obligations, included in other expenses, was $43 million and $92 million for the three months ended March 31, 2012 and 2011, respectively. The assets and liabilities of these CSEs, at estimated fair value, were as follows at:

	March 31, 2012		December 31, 2011
	(In millions)
Assets:
Mortgage loans held-for-investment (commercial mortgage loans)	$	3,024	$	3,138
Trading and other securities		89		117
Accrued investment income		15		16
Cash and cash equivalents		3		21
Premiums, reinsurance and other receivables		—		7
Total assets	$	3,131	$	3,299
Liabilities:
Long-term debt	$	2,916	$	3,068
Other liabilities		28		35
Total liabilities	$	2,944	$	3,103

(2) See Note 12 of the Notes to the Consolidated Financial Statements included in the 2011 Annual Report for a description of the MetLife Reinsurance Company of South Carolina (“MRSC”) collateral financing arrangement. These assets consist of the following, at estimated fair value, except for mortgage loans, which are presented at carrying value, at:

	March 31, 2012		December 31, 2011
	(In millions)
Fixed maturity securities available-for-sale:
ABS	$	1,491	$	1,356
U.S. corporate securities		806		833
RMBS		509		502
CMBS		324		369
Foreign corporate securities		126		126
State and political subdivision securities		40		39
Mortgage loans		49		49
Cash and cash equivalents		29		59
Total	$	3,374	$	3,333

The following table presents the carrying amount and maximum exposure to loss relating to VIEs for which the Company holds significant variable interests but is not the primary beneficiary and which have not been consolidated at:

	March 31, 2012				December 31, 2011
	Carrying Amount		Maximum Exposure to Loss (1)		Carrying Amount		Maximum Exposure to Loss (1)
			(In millions)
Fixed maturity securities available-for-sale:
RMBS (2)	$	41,279	$	41,279	$	42,637	$	42,637
CMBS (2)		18,732		18,732		19,069		19,069
ABS (2)		13,143		13,143		12,979		12,979
U.S. corporate securities		2,846		2,846		2,911		2,911
Foreign corporate securities		2,053		2,053		2,087		2,087
Other limited partnership interests		4,391		6,003		4,340		6,084
Other invested assets		839		1,203		799		1,194
Trading and other securities		708		708		671		671
Mortgage loans		356		356		456		456
Real estate joint ventures		103		119		61		79
Total	$	84,450	$	86,442	$	86,010	$	88,167

(1) The maximum exposure to loss relating to the fixed maturity and trading and other securities is equal to their estimated fair value. The maximum exposure to loss relating to the other limited partnership interests, real estate joint ventures and mortgage loans is equal to the carrying amounts plus any unfunded commitments of the Company. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer, borrower or investee. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by a creditworthy third party. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of $360 million and $267 million at March 31, 2012 and December 31, 2011, respectively.

(2) For these variable interests, the Company’s involvement is limited to that of a passive investor.

As described in Note 10, the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs during the three months ended March 31, 2012 or 2011.