Segment Information

12 Months Ended

Dec. 31, 2012

Segment Information [Abstract]

Segment Information

2.  Segment Information

MetLife is organized into six segments, reflecting three broad geographic regions: Retail; Group, Voluntary & Worksite Benefits; Corporate Benefit Funding; and Latin America (collectively, the “Americas”); Asia; and EMEA.

Americas

The Americas consists of the following segments:

Retail

The Retail 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 & Other and Annuities. Life & Other insurance products and services include variable life, universal life, term life and whole life products. Additionally, through broker-dealer affiliates, the Company offers a full range of mutual funds and other securities products. Life & Other products and services also include individual disability income products and personal lines property & casualty insurance, including private passenger automobile, homeowners and personal excess liability insurance. Annuities include a variety of variable and fixed annuities which provide for both asset accumulation and asset distribution needs.

Group, Voluntary & Worksite Benefits

The Group, Voluntary & 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 two businesses: Group and Voluntary & Worksite. Group insurance products and services include variable life, universal life and term life products. Group insurance products and services also include dental, group short- and long-term disability and accidental death & dismemberment coverages. The Voluntary & Worksite business includes personal lines property & casualty insurance, including private passenger automobile, homeowners and personal excess liability insurance offered to employees on a voluntary basis. The Voluntary & Worksite business also includes LTC, prepaid legal plans and critical illness products.

Corporate Benefit Funding

The Corporate Benefit Funding segment offers a broad range 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. This segment also includes certain products to fund postretirement benefits and company-, bank- or trust-owned life insurance used to finance non-qualified benefit programs for executives.

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 and health insurance, group medical, dental, credit insurance, 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 and 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 and health insurance, credit insurance, annuities, endowment and retirement & savings products.

Corporate & Other

In addition, the Company reports certain of its results of operations in Corporate & Other, which includes MetLife Bank, National Association (“MetLife Bank”) (see Note 3) and other business activities. Corporate & Other contains the excess capital not allocated to the segments, external integration costs, internal resource costs for associates committed to acquisitions, enterprise-wide strategic initiative restructuring charges, and various start-up and certain run-off entities. Corporate & Other also includes assumed reinsurance of certain variable annuity products from the Company’s former operating joint venture in Japan. Under this in-force reinsurance agreement, the Company reinsures 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 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.

Financial Measures and Segment Accounting Policies

Operating earnings is the measure of segment profit or loss the Company uses to evaluate segment performance and allocate resources. Consistent with GAAP 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. Operating revenues also excludes net investment gains (losses) and net derivative gains (losses). Operating expenses also excludes goodwill impairments.

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) acquisition and integration costs.

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, 2012, 2011 and 2010 and at December 31, 2012 and 2011. The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for operating earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below.

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.

The Company’s economic capital model aligns segment allocated equity with emerging standards and consistent risk principles. Segment net investment income is 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
	Americas
Year Ended December 31, 2012	Retail			Group, Voluntary & Worksite Benefits			Corporate Benefit Funding			Latin America			Total			Asia			EMEA			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	6,532		$	14,794		$	3,237		$	2,578		$	27,141		$	8,344		$	2,370		$	56		$	37,911		$	64		$	37,975
Universal life and investment-type product policy fees		4,561			662			225			785			6,233			1,491			333			155			8,212			344			8,556
Net investment income		7,670			1,768			5,703			1,198			16,339			2,895			535			703			20,472			1,512			21,984
Other revenues		879			422			259			16			1,576			26			121			33			1,756			150			1,906
Net investment gains (losses)		—			—			—			—			—			—			—			—			—			(352	)		(352	)
Net derivative gains (losses)		—			—			—			—			—			—			—			—			—			(1,919	)		(1,919	)
Total revenues		19,642			17,646			9,424			4,577			51,289			12,756			3,359			947			68,351			(201	)		68,150
Expenses
Policyholder benefits and claims and policyholder dividends		9,010			13,691			5,704			2,231			30,636			5,819			1,196			119			37,770			1,586			39,356
Interest credited to policyholder account balances		2,375			167			1,358			393			4,293			1,784			126			39			6,242			1,487			7,729
Goodwill impairment		—			—			—			—			—			—			—			—			—			1,868			1,868
Capitalization of DAC		(1,753	)		(138	)		(29	)		(353	)		(2,273	)		(2,288	)		(723	)		—			(5,284	)		(5	)		(5,289	)
Amortization of DAC and VOBA		1,607			133			22			224			1,986			1,563			626			2			4,177			22			4,199
Amortization of negative VOBA		—			—			—			(5	)		(5	)		(456	)		(94	)		—			(555	)		(67	)		(622	)
Interest expense on debt		—			1			8			(1	)		8			5			1			1,176			1,190			166			1,356
Other expenses		5,369			2,351			478			1,375			9,573			4,738			1,810			559			16,680			1,431			18,111
Total expenses		16,608			16,205			7,541			3,864			44,218			11,165			2,942			1,895			60,220			6,488			66,708
Provision for income tax expense (benefit)		1,032			481			659			130			2,302			554			146			(679	)		2,323			(2,195	)		128
Operating earnings	$	2,002		$	960		$	1,224		$	583		$	4,769		$	1,037		$	271		$	(269	)		5,808
Adjustments to:
Total revenues																										(201	)
Total expenses																										(6,488	)
Provision for income tax (expense) benefit																										2,195
Income (loss) from continuing operations, net of income tax																									$	1,314					$	1,314
At December 31, 2012	Retail			Group, Voluntary & Worksite Benefits			Corporate Benefit Funding			Latin America			Asia (1)			EMEA			Corporate & Other			Total
	(In millions)
Total assets	$	332,387		$	44,138		$	217,352		$	23,272		$	131,138		$	23,474		$	65,020		$	836,781
Separate account assets	$	150,513		$	532		$	71,875		$	4,200		$	8,273		$	—		$	—		$	235,393
Separate account liabilities	$	150,513		$	532		$	71,875		$	4,200		$	8,273		$	—		$	—		$	235,393

(1) Total assets includes $111.0 billion of assets from the Japan operations which represents 13% of total consolidated assets.

	Operating Earnings
	Americas
Year Ended December 31, 2011	Retail			Group, Voluntary & Worksite Benefits			Corporate Benefit Funding			Latin America			Total			Asia			EMEA			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	6,711		$	13,949		$	2,848		$	2,514		$	26,022		$	7,716		$	2,477		$	54		$	36,269		$	92		$	36,361
Universal life and investment-type product policy fees		4,096			630			232			757			5,715			1,343			315			155			7,528			278			7,806
Net investment income		7,414			1,768			5,506			1,025			15,713			2,475			562			888			19,638			(53	)		19,585
Other revenues		779			390			249			15			1,433			36			123			60			1,652			880			2,532
Net investment gains (losses)		—			—			—			—			—			—			—			—			—			(867	)		(867	)
Net derivative gains (losses)		—			—			—			—			—			—			—			—			—			4,824			4,824
Total revenues		19,000			16,737			8,835			4,311			48,883			11,570			3,477			1,157			65,087			5,154			70,241
Expenses
Policyholder benefits and claims and policyholder dividends		9,220			13,015			5,287			2,064			29,586			5,239			1,290			126			36,241			676			36,917
Interest credited to policyholder account balances		2,412			178			1,323			371			4,284			1,607			166			—			6,057			(454	)		5,603
Goodwill impairment		—			—			—			—			—			—			—			—			—			—			—
Capitalization of DAC		(2,339	)		(176	)		(25	)		(295	)		(2,835	)		(2,045	)		(669	)		—			(5,549	)		(9	)		(5,558	)
Amortization of DAC and VOBA		1,845			186			17			207			2,255			1,486			613			1			4,355			543			4,898
Amortization of negative VOBA		—			—			—			(6	)		(6	)		(560	)		(53	)		—			(619	)		(78	)		(697	)
Interest expense on debt		1			—			9			1			11			—			—			1,293			1,304			325			1,629
Other expenses		5,854			2,198			513			1,305			9,870			4,522			1,723			505			16,620			1,645			18,265
Total expenses		16,993			15,401			7,124			3,647			43,165			10,249			3,070			1,925			58,409			2,648			61,057
Provision for income tax expense (benefit)		672			445			599			150			1,866			441			156			(584	)		1,879			914			2,793
Operating earnings	$	1,335		$	891		$	1,112		$	514		$	3,852		$	880		$	251		$	(184	)		4,799
Adjustments to:
Total revenues																										5,154
Total expenses																										(2,648	)
Provision for income tax (expense) benefit																										(914	)
Income (loss) from continuing operations, net of income tax																									$	6,391					$	6,391
At December 31, 2011	Retail			Group, Voluntary & Worksite Benefits			Corporate Benefit Funding			Latin America			Asia (1)			EMEA			Corporate & Other			Total
	(In millions)
Total assets	$	301,591		$	45,197		$	195,217		$	20,315		$	115,806		$	30,040		$	88,060		$	796,226
Separate account assets	$	128,208		$	479		$	64,851		$	2,880		$	6,599		$	6		$	—		$	203,023
Separate account liabilities	$	128,208		$	479		$	64,851		$	2,880		$	6,599		$	6		$	—		$	203,023

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

	Operating Earnings
	Americas
Year Ended December 31, 2010	Retail			Group, Voluntary & Worksite Benefits			Corporate Benefit Funding			Latin America			Total			Asia			EMEA			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	6,491		$	14,100		$	2,345		$	1,969		$	24,905		$	1,716		$	439		$	11		$	27,071		$	—		$	27,071
Universal life and investment-type product policy fees		3,655			616			226			630			5,127			502			50			138			5,817			211			6,028
Net investment income		7,644			1,702			5,280			927			15,553			497			155			650			16,855			638			17,493
Other revenues		633			369			247			12			1,261			14			9			109			1,393			935			2,328
Net investment gains (losses)		—			—			—			—			—			—			—			—			—			(408	)		(408	)
Net derivative gains (losses)		—			—			—			—			—			—			—			—			—			(265	)		(265	)
Total revenues		18,423			16,787			8,098			3,538			46,846			2,729			653			908			51,136			1,111			52,247
Expenses
Policyholder benefits and claims and policyholder dividends		8,835			13,112			4,677			1,829			28,453			1,351			137			33			29,974			698			30,672
Interest credited to policyholder account balances		2,381			192			1,447			370			4,390			183			124			—			4,697			222			4,919
Goodwill impairment		—			—			—			—			—			—			—			—			—			—			—
Capitalization of DAC		(1,769	)		(187	)		(18	)		(221	)		(2,195	)		(459	)		(116	)		—			(2,770	)		—			(2,770	)
Amortization of DAC and VOBA		1,724			181			16			144			2,065			290			87			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			1			1			1,124			1,137			413			1,550
Other expenses		5,059			2,193			494			901			8,647			1,142			434			379			10,602			1,132			11,734
Total expenses		16,232			15,491			6,624			3,023			41,370			2,459			660			1,537			46,026			2,492			48,518
Provision for income tax expense (benefit)		735			427			516			92			1,770			46			—			(402	)		1,414			(304	)		1,110
Operating earnings	$	1,456		$	869		$	958		$	423		$	3,706		$	224		$	(7	)	$	(227	)		3,696
Adjustments to:
Total revenues																										1,111
Total expenses																										(2,492	)
Provision for income tax (expense) benefit																										304
Income (loss) from continuing operations, net of income tax																									$	2,619					$	2,619

Net investment income is based upon the actual results of each segment’s specifically identifiable investment 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.

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

	Years Ended December 31,
	2012		2011		2010
	(In millions)
Life insurance (1)	$	31,723	$	30,486	$	23,978
Accident and health insurance		13,255		12,269		7,480
Property and casualty insurance		3,117		3,043		2,956
Non-insurance		342		901		1,013
Total	$	48,437	$	46,699	$	35,427

(1) Includes annuities and corporate benefit funding products.

Revenues derived from any customer did not exceed 10% of consolidated premiums, universal life and investment-type product policy fees and other revenues for the years ended December 31, 2012, 2011 and 2010.

The following table presents total premiums, universal life and investment-type product policy fees and other revenues associated with the Company’s U.S. and foreign operations:

	Years Ended December 31,
	2012		2011		2010
	(In millions)
U.S.	$	31,500	$	30,108	$	29,387
Foreign:
Japan		7,833		7,184		568
Other		9,104		9,407		5,472
Total	$	48,437	$	46,699	$	35,427