Business Segment Information

12 Months Ended

Dec. 31, 2011

Business Segment Information [Abstract]

Business Segment Information

22. Business Segment Information

As announced in November 2011, the Company reorganized its business from its former U.S. Business and International structure into three broad geographic regions to better reflect its global reach. As a result, in the first quarter of 2012, the Company reorganized into six segments, reflecting these broad geographic regions: Retail Products; Group, Voluntary and Worksite Benefits; Corporate Benefit Funding; and Latin America (collectively, “The Americas”); Asia; and EMEA. In addition, the Company reports certain of its results of operations in Corporate & Other, which includes MetLife Bank and other business activities. Prior period results have been revised in connection with this reorganization.

The Americas. The Americas consists of the following segments:

• Retail Products.  The Retail Products segment offers a broad range of protection products and services and a variety of annuities to individuals and employees of corporations and other institutions, and is organized into two businesses: Life and Annuities. Life insurance products and services include variable life, universal life, term life and whole life products. Annuities include a variety of variable and fixed annuities which provide for both asset accumulation and asset distribution needs.

• Group, Voluntary and Worksite Benefits.  The Group, Voluntary and Worksite Benefits segment offers a broad range of protection products and services to individuals and corporations, as well as other institutions and their respective employees, and is organized into three businesses: Group Life, Non-Medical Health and Property & Casualty. Group Life insurance products and services include variable life, universal life and term life products. Non-Medical Health products and services include dental insurance, group short- and long-term disability, individual disability income, LTC, critical illness and accidental death & dismemberment coverages. Property & Casualty provides personal lines property and casualty insurance, including private passenger automobile, homeowners and personal excess liability insurance.

• Corporate Benefit Funding.  The Corporate Benefit Funding segment includes an array of annuity and investment products, including guaranteed interest products and other stable value products, income annuities, and separate account contracts for the investment management of defined benefit and defined contribution plan assets.

• Latin America.  The Latin America segment offers a broad range of products to both individuals and corporations, as well as other institutions and their respective employees, which include life insurance, accident & health insurance, group medical, dental, credit life insurance, annuities, endowment and retirement & savings products.

Asia. The Asia segment offers a broad range of products to both individuals and corporations, as well as other institutions and their respective employees, which include whole life, term life, variable life, universal life, accident & health insurance, fixed and variable annuities and endowment products.

EMEA. The EMEA segment offers a broad range of products to both individuals and corporations, as well as other institutions and their respective employees, which include life insurance, accident & health insurance, credit life insurance, annuities, endowment and retirement & savings products.

Corporate & Other contains the excess capital not allocated to the segments, external integration costs, internal resource costs for associates committed to acquisitions and various start-up and certain run-off entities. Corporate & Other also includes assumed reinsurance for a Japan domiciled life insurance company, a former joint venture of the Company. These in-force reinsurance agreements reinsure a portion of the living and death benefit guarantees issued in connection with variable annuity products. Additionally, Corporate & Other includes interest expense related to the majority of the Company’s outstanding debt, expenses associated with certain legal proceedings, the financial results of MetLife Bank (see Note 2) and income tax audit issues. Corporate & Other also includes the elimination of intersegment amounts, which generally relate to intersegment loans, which bear interest rates commensurate with related borrowings.

Operating earnings is the measure of segment profit or loss the Company uses to evaluate segment performance and allocate resources. Consistent with GAAP accounting guidance for segment reporting, operating earnings is the Company’s measure of segment performance and is reported below. Operating earnings should not be viewed as a substitute for GAAP income (loss) from continuing operations, net of income tax. The Company believes the presentation of operating earnings as the Company measures it for management purposes enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business.

Operating earnings is defined as operating revenues less operating expenses, both net of income tax.

Operating revenues and operating expenses exclude results of discontinued operations and other businesses that have been or will be sold or exited by MetLife, Inc. (“Divested Businesses”). Operating revenues also excludes net investment gains (losses) and net derivative gains (losses).

The following additional adjustments are made to GAAP revenues, in the line items indicated, in calculating operating revenues:

• Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity GMIB fees (“GMIB Fees”);

• Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments but do not qualify for hedge accounting treatment, (ii) includes income from discontinued real estate operations, (iii) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iv) excludes certain amounts related to contractholder-directed unit-linked investments, and (v) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and

• Other revenues are adjusted for settlements of foreign currency earnings hedges.

The following additional adjustments are made to GAAP expenses, in the line items indicated, in calculating operating expenses:

• Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative gains (losses), (ii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets, (iii) benefits and hedging costs related to GMIBs (“GMIB Costs”), and (iv) market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”);

• Interest credited to policyholder account balances includes adjustments for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of PABs but do not qualify for hedge accounting treatment and excludes amounts related to net investment income earned on contractholder-directed unit-linked investments;

• Amortization of DAC and VOBA excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB Fees and GMIB Costs, and (iii) Market Value Adjustments;

• Amortization of negative VOBA excludes amounts related to Market Value Adjustments;

• Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and

• Other expenses excludes costs related to: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements, and (iii) business combinations.

In 2011, management modified its definition of operating earnings to exclude the impacts of Divested Businesses, which includes certain operations of MetLife Bank and the Caribbean Business, as these results are not relevant to understanding the Company’s ongoing operating results. Consequently, prior years’ results for Corporate & Other and total consolidated operating earnings have been decreased by $111 million, net of $66 million of income tax, and $211 million, net of $139 million of income tax, for the years ended December 31, 2010 and 2009, respectively.

In addition, in 2011, management modified its definition of operating earnings to exclude impacts related to certain variable annuity guarantees and Market Value Adjustments to better conform to the way it manages and assesses its business. Accordingly, such results are no longer reported in operating earnings. Consequently, prior years’ results for Retail Products and total consolidated operating earnings have been increased by $64 million, net of $34 million of income tax, and $90 million, net of $49 million of income tax, for the years ended December 31, 2010 and 2009, respectively.

Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other for the years ended December 31, 2011, 2010 and 2009 and at December 31, 2011 and 2010. The accounting policies of the segments are the same as those of the Company, except for operating earnings adjustments as defined above, the method of capital allocation and the accounting for gains (losses) from intercompany sales, which are eliminated in consolidation.

Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. The economic capital model accounts for the unique and specific nature of the risks inherent in the Company’s business.

Effective January 1, 2011, the Company updated its economic capital model to align segment allocated equity with emerging standards and consistent risk principles. Such changes to the Company’s economic capital model are applied prospectively. Segment net investment income is also credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company’s consolidated net investment income, operating earnings or income (loss) from continuing operations, net of income tax.

	Operating Earnings
	The Americas
Year Ended December 31, 2011	Retail Products			Group, Voluntary and Worksite Benefits			Corporate Benefit Funding			Latin America			Total			Asia			EMEA			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	4,741		$	15,919		$	2,848		$	2,514		$	26,022		$	7,472		$	2,721		$	54		$	36,269		$	92		$	36,361
Universal life and investment-type product policy fees		4,096			630			232			757			5,715			1,191			467			155			7,528			278			7,806
Net investment income		7,199			1,983			5,506			1,025			15,713			2,377			660			911			19,661			(75	)		19,586
Other revenues		760			409			249			15			1,433			34			125			319			1,911			621			2,532
Net investment gains (losses)		—			—			—			—			—			—			—			—			—			(867	)		(867	)
Net derivative gains (losses)		—			—			—			—			—			—			—			—			—			4,824			4,824
Total revenues		16,796			18,941			8,835			4,311			48,883			11,074			3,973			1,439			65,369			4,873			70,242
Expenses
Policyholder benefits and claims and policyholder dividends		7,655			14,580			5,287			2,064			29,586			4,976			1,553			126			36,241			676			36,917
Interest credited to policyholder account balances		2,412			178			1,323			371			4,284			1,604			169			—			6,057			(454	)		5,603
Capitalization of DAC		(2,038	)		(477	)		(25	)		(295	)		(2,835	)		(1,981	)		(733	)		—			(5,549	)		(9	)		(5,558	)
Amortization of DAC and VOBA		1,564			467			17			207			2,255			1,420			679			1			4,355			543			4,898
Amortization of negative VOBA		—			—			—			(6	)		(6	)		(555	)		(58	)		—			(619	)		(78	)		(697	)
Interest expense on debt		1			—			9			1			11			—			—			1,294			1,305			324			1,629
Other expenses		5,262			2,790			513			1,305			9,870			4,312			1,933			640			16,755			1,510			18,265
Total expenses		14,856			17,538			7,124			3,647			43,165			9,776			3,543			2,061			58,545			2,512			61,057
Provision for income tax expense (benefit)		680			437			599			150			1,866			431			166			(529	)		1,934			859			2,793
Operating earnings	$	1,260		$	966		$	1,112		$	514		$	3,852		$	867		$	264		$	(93	)	$	4,890
Adjustments to:
Total revenues																										4,873
Total expenses																										(2,512	)
Provision for income tax (expense) benefit																										(859	)
Income (loss) from continuing operations, net of income tax																									$	6,392					$	6,392
At December 31, 2011	Retail Products			Group, Voluntary and Worksite Benefits			Corporate Benefit Funding			Latin America			Asia (1)			EMEA			Corporate & Other			Total
	(In millions)
Total assets	$	295,012		$	51,776		$	195,217		$	20,315		$	112,955		$	32,891		$	88,060		$	796,226
Separate account assets	$	128,208		$	479		$	64,851		$	2,880		$	5,532		$	1,073		$	—		$	203,023
Separate account liabilities	$	128,208		$	479		$	64,851		$	2,880		$	5,532		$	1,073		$	—		$	203,023

(1) Total assets includes $103.9 billion of assets from the Japan operations which represents 13% of total consolidated assets.

	Operating Earnings
	The Americas
Year Ended December 31, 2010	Retail Products			Group, Voluntary and Worksite Benefits			Corporate Benefit Funding			Latin America			Total			Asia			EMEA			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	4,540		$	16,051		$	2,345		$	1,969		$	24,905		$	1,596		$	559		$	11		$	27,071		$	—		$	27,071
Universal life and investment-type product policy fees		3,655			616			226			630			5,127			436			116			138			5,817			211			6,028
Net investment income		7,423			1,923			5,280			927			15,553			471			181			664			16,869			625			17,494
Other revenues		617			385			247			12			1,261			14			9			391			1,675			653			2,328
Net investment gains (losses)		—			—			—			—			—			—			—			—			—			(408	)		(408	)
Net derivative gains (losses)		—			—			—			—			—			—			—			—			—			(265	)		(265	)
Total revenues		16,235			18,975			8,098			3,538			46,846			2,517			865			1,204			51,432			816			52,248
Expenses
Policyholder benefits and claims and policyholder dividends		7,472			14,475			4,677			1,829			28,453			1,243			245			33			29,974			698			30,672
Interest credited to policyholder account balances		2,381			192			1,447			370			4,390			182			125			—			4,697			222			4,919
Capitalization of DAC		(1,472	)		(484	)		(18	)		(221	)		(2,195	)		(381	)		(194	)		—			(2,770	)		—			(2,770	)
Amortization of DAC and VOBA		1,448			457			16			144			2,065			277			100			1			2,443			34			2,477
Amortization of negative VOBA		—			—			—			(1	)		(1	)		(49	)		(7	)		—			(57	)		(7	)		(64	)
Interest expense on debt		2			—			8			1			11			—			2			1,126			1,139			411			1,550
Other expenses		4,481			2,771			494			901			8,647			975			601			467			10,690			1,044			11,734
Total expenses		14,312			17,411			6,624			3,023			41,370			2,247			872			1,627			46,116			2,402			48,518
Provision for income tax expense (benefit)		672			490			516			92			1,770			44			2			(327	)		1,489			(379	)		1,110
Operating earnings	$	1,251		$	1,074		$	958		$	423		$	3,706		$	226		$	(9	)	$	(96	)	$	3,827
Adjustments to:
Total revenues																										816
Total expenses																										(2,402	)
Provision for income tax (expense) benefit																										379
Income (loss) from continuing operations, net of income tax																									$	2,620					$	2,620
At December 31, 2010	Retail Products			Group, Voluntary and Worksite Benefits			Corporate Benefit Funding			Latin America			Asia (1)			EMEA			Corporate & Other			Total
	(In millions)
Total assets	$	271,937		$	44,637		$	179,672		$	22,079		$	108,856		$	32,066		$	69,002		$	728,249
Separate account assets	$	116,357		$	492		$	56,624		$	2,691		$	5,332		$	1,642		$	—		$	183,138
Separate account liabilities	$	116,357		$	492		$	56,624		$	2,691		$	5,332		$	1,642		$	—		$	183,138

(1) Total assets includes $87.5 billion of assets from the Japan operations which represents 12% of total consolidated assets.

	Operating Earnings
	The Americas
Year Ended December 31, 2009	Retail Products			Group, Voluntary and Worksite Benefits			Corporate Benefit Funding			Latin America			Total			Asia			EMEA			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	4,823		$	15,870		$	2,561		$	1,562		$	24,816		$	949		$	373		$	19		$	26,157		$	—		$	26,157
Universal life and investment-type product policy fees		3,191			633			176			546			4,546			351			52			106			5,055			142			5,197
Net investment income		6,937			1,716			4,766			624			14,043			343			117			91			14,594			135			14,729
Other revenues		546			438			239			7			1,230			2			5			236			1,473			856			2,329
Net investment gains (losses)		—			—			—			—			—			—			—			—			—			(2,901	)		(2,901	)
Net derivative gains (losses)		—			—			—			—			—			—			—			—			—			(4,866	)		(4,866	)
Total revenues		15,497			18,657			7,742			2,739			44,635			1,645			547			452			47,279			(6,634	)		40,645
Expenses
Policyholder benefits and claims and policyholder dividends		7,666			14,311			4,797			1,412			28,186			782			122			16			29,106			548			29,654
Interest credited to policyholder account balances		2,429			210			1,633			331			4,603			147			99			—			4,849			(4	)		4,845
Capitalization of DAC		(1,492	)		(487	)		(13	)		(155	)		(2,147	)		(208	)		(147	)		—			(2,502	)		—			(2,502	)
Amortization of DAC and VOBA		1,056			466			14			111			1,647			194			41			3			1,885			(830	)		1,055
Amortization of negative VOBA		—			—			—			—			—			—			—			—			—			—			—
Interest expense on debt		6			—			3			1			10			2			5			1,027			1,044			—			1,044
Other expenses		4,550			2,795			484			654			8,483			577			503			586			10,149			1,015			11,164
Total expenses		14,215			17,295			6,918			2,354			40,782			1,494			623			1,632			44,531			729			45,260
Provision for income tax expense (benefit)		433			415			273			120			1,241			2			(14	)		(716	)		513			(2,619	)		(2,106	)
Operating earnings	$	849		$	947		$	551		$	265		$	2,612		$	149		$	(62	)	$	(464	)	$	2,235
Adjustments to:
Total revenues																										(6,634	)
Total expenses																										(729	)
Provision for income tax (expense) benefit																										2,619
Income (loss) from continuing operations, net of income tax																									$	(2,509	)				$	(2,509	)

The following table presents total premiums, universal life & investment-type product policy fees and other revenue by major product groups of the Company’s segments as well as Corporate & Other:

	Years Ended December 31,
	2011		2010		2009
	(In millions)
Life insurance (1)	$	30,486	$	23,978	$	22,774
Accident and health		12,269		7,480		6,897
Property and casualty insurance		3,043		2,956		2,946
Non-insurance		901		1,013		1,066
Total	$	46,699	$	35,427	$	33,683

(1) Includes Annuities and Corporate Benefit Funding products.

Net investment income is based upon the actual results of each segment’s specifically identifiable asset portfolio adjusted for allocated equity. Other costs are allocated to each of the segments based upon: (i) a review of the nature of such costs; (ii) time studies analyzing the amount of employee compensation costs incurred by each segment; and (iii) cost estimates included in the Company’s product pricing.

Operating revenues derived from any customer did not exceed 10% of consolidated operating revenues for the years ended December 31, 2011, 2010 and 2009. Operating revenues from U.S. operations were $44.7 billion, $43.7 billion and $41.4 billion for the years ended December 31, 2011, 2010 and 2009, respectively, which represented 68%, 85% and 88%, respectively, of consolidated operating revenues.

The only significant concentration of operating revenues from any individual foreign country for the year ended December 31, 2011 was from the Japan operations, which were $9.3 billion or 14% of consolidated operating revenues. There was no significant concentration of operating revenues from any individual foreign country for the years ended December 31, 2010 and 2009.