XML 1135 R44.htm IDEA: XBRL DOCUMENT v2.4.0.6
Investments (Tables)
12 Months Ended
Dec. 31, 2012
Investments [Abstract]  
Fixed Maturity and Equity Securities Available-for-Sale
                                                                                 
    December 31, 2012     December 31, 2011  
    Cost or
Amortized
Cost
    Gross Unrealized     Estimated
Fair
Value
    Cost or
Amortized
Cost
    Gross Unrealized     Estimated
Fair
Value
 
      Gains     Temporary
Losses
    OTTI
Losses
        Gains     Temporary
Losses
    OTTI
Losses
   
                     
    (In millions)  

Fixed Maturity Securities:

                                                                               

U.S. corporate

  $ 102,669     $ 11,887     $ 430     $     $ 114,126     $ 98,621     $ 8,544     $ 1,380     $     $ 105,785  

Foreign corporate (1)

    61,806       5,654       277       (1     67,184       61,568       3,789       1,338       1       64,018  

Foreign government

    51,967       5,440       71             57,336       49,840       3,053       357             52,536  

U.S. Treasury and agency

    41,874       6,104       11             47,967       34,132       5,882       2             40,012  

RMBS

    35,666       2,477       315       349       37,479       42,092       2,281       1,033       703       42,637  

CMBS

    18,177       1,009       57             19,129       18,565       730       218       8       19,069  

ABS

    15,762       404       156       13       15,997       13,018       278       305       12       12,979  

State and political subdivision

    12,949       2,169       70             15,048       11,975       1,416       156             13,235  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed maturity securities

  $     340,870     $  35,144     $         1,387     $       361     $     374,266     $     329,811     $  25,973     $       4,789     $     724     $     350,271  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity Securities:

                                                                               

Common

  $ 2,034     $ 147     $ 19     $     $ 2,162     $ 2,219     $ 83     $ 97     $     $ 2,205  

Non-redeemable preferred

    804       65       140             729       989       31       202             818  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity securities

  $ 2,838     $ 212     $ 159     $     $ 2,891     $ 3,208     $ 114     $ 299     $     $ 3,023  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

 

(1)

OTTI losses, as presented above, represent the noncredit portion of OTTI losses that is included in AOCI. OTTI losses include both the initial recognition of noncredit losses, and the effects of subsequent increases and decreases in estimated fair value for those fixed maturity securities that were previously noncredit loss impaired. The noncredit loss component of OTTI losses for foreign corporate securities was in an unrealized gain position of $1 million at December 31, 2012 due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “—Net Unrealized Investment Gains (Losses).”

Available-for-sale fixed maturity securities by contractual maturity date
                                 
    December 31,  
    2012     2011  
    Amortized
Cost
    Estimated
Fair
Value
    Amortized
Cost
    Estimated
Fair
Value
 
    (In millions)  

Due in one year or less

  $ 24,177     $ 24,394     $ 16,747     $ 16,862  

Due after one year through five years

    66,973       70,759       62,819       64,414  

Due after five years through ten years

    82,376       91,975       82,694       88,036  

Due after ten years

    97,739       114,533       93,876       106,274  
   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal

    271,265       301,661       256,136       275,586  

Structured securities (RMBS, CMBS and ABS)

    69,605       72,605       73,675       74,685  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed maturity securities

  $  340,870     $  374,266     $  329,811     $  350,271  
   

 

 

   

 

 

   

 

 

   

 

 

 
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
                                                                 
    December 31, 2012     December 31, 2011  
    Less than 12 Months     Equal to or Greater
than 12 Months
    Less than 12 Months     Equal to or Greater
than 12 Months
 
    Estimated
Fair
Value
    Gross
Unrealized
Losses
    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

  $ 3,799     $ 88     $ 3,695     $ 342     $ 15,642     $ 590     $ 5,135     $ 790  

Foreign corporate

    2,783       96       2,873       180       12,618       639       5,957       700  

Foreign government

    1,431       22       543       49       11,227       230       1,799       127  

U.S. Treasury and agency

    1,951       11                   2,611       1       50       1  

RMBS

    735       31       4,098       633       4,040       547       4,724       1,189  

CMBS

    842       11       577       46       2,825       135       678       91  

ABS

    1,920       30       1,410       139       4,972       103       1,316       214  

State and political subdivision

    260       4       251       66       177       2       1,007       154  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed maturity securities

  $   13,721     $         293     $   13,447     $     1,455     $   54,112     $     2,247     $   20,666     $     3,266  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity Securities:

                                                               

Common

  $ 201     $ 18     $ 14     $ 1     $ 581     $ 96     $ 5     $ 1  

Non-redeemable preferred

                295       140       204       30       370       172  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity securities

  $ 201     $ 18     $ 309     $ 141     $ 785     $ 126     $ 375     $ 173  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total number of securities in an unrealized loss position

    1,941               1,335               3,978               1,963          
   

 

 

           

 

 

           

 

 

           

 

 

         
Disclosure of Mortgage Loans Net of Valuation Allowance
                                 
    December 31,  
    2012     2011  
    Carrying     % of     Carrying     % of  
      Value         Total         Value         Total    
    (In millions)  

Mortgage loans held-for-investment:

                               

Commercial

  $ 40,472       71.0    $ 40,440       56.1 

Agricultural

    12,843       22.5        13,129       18.2   

Residential (1)

    958       1.7        689       1.0   
   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal (2)

    54,273       95.2        54,258       75.3   

Valuation allowances (1)

    (347     (0.6)        (481     (0.7)   
   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal mortgage loans held-for-investment, net

    53,926       94.6        53,777       74.6   

Commercial mortgage loans held by CSEs

    2,666       4.7        3,138       4.4   
   

 

 

   

 

 

   

 

 

   

 

 

 

Total mortgage loans held-for-investment, net

    56,592       99.3        56,915       79.0   
   

 

 

   

 

 

   

 

 

   

 

 

 

Mortgage loans held-for-sale:

                               

Residential — FVO (1)

    49       0.1        3,064       4.2   

Mortgage loans — lower of amortized cost or estimated fair value (1)

    365       0.6        4,462       6.2   

Securitized reverse residential mortgage loans (1), (3)

          —        7,652       10.6   
   

 

 

   

 

 

   

 

 

   

 

 

 

Total mortgage loans held-for-sale

    414       0.7        15,178       21.0   
   

 

 

   

 

 

   

 

 

   

 

 

 

Total mortgage loans, net

  $     57,006           100.0    $     72,093           100.0 
   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

(1)

As a result of the MetLife Bank Divestiture described in Note 3, the Company has disposed of certain mortgage loans and de-recognized its securitized reverse residential mortgage loans.

 

(2)

Purchases of mortgage loans were $205 million and $64 million for the years ended December 31, 2012 and 2011, respectively.

 

(3)

See Note 1 for a discussion of securitized reverse residential mortgage loans.

Disclosure of mortgage loans held-for-investment and valuation allowances by method of evaluation for credit loss
                                                                 
    December 31,  
    2012     2011  
    Commercial     Agricultural     Residential     Total     Commercial     Agricultural     Residential     Total  
    (In millions)  

Mortgage loans:

                                                               

Evaluated individually for credit losses

  $ 539     $ 181     $ 13     $ 733     $ 96     $ 159     $ 13     $ 268  

Evaluated collectively for credit losses

    39,933       12,662       945       53,540       40,344       12,970       676       53,990  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total mortgage loans

    40,472       12,843       958       54,273       40,440       13,129       689       54,258  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Valuation allowances:

                                                               

Specific credit losses

    94       21       2       117       59       45       1       105  

Non-specifically identified credit losses

    199       31             230       339       36       1       376  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total valuation allowances

    293       52       2       347       398       81       2       481  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Mortgage loans, net of valuation allowance

  $ 40,179     $ 12,791     $ 956     $ 53,926     $ 40,042     $ 13,048     $ 687     $ 53,777  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Allowance for Loan and Lease Losses, Provision for Loss, Net
                                 
        Commercial             Agricultural             Residential             Total      
    (In millions)  
         

Balance at January 1, 2010

  $ 589     $ 115     $ 17     $ 721  

Provision (release)

    (5     12       2       9  

Charge-offs, net of recoveries

    (22     (39     (5     (66
   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2010

    562       88       14       664  

Provision (release)

    (152     (3     10       (145

Charge-offs, net of recoveries

    (12     (4     (3     (19

Transfer to held-for-sale (1)

                (19     (19
   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2011

    398       81       2       481  

Provision (release)

    (92           6       (86

Charge-offs, net of recoveries

    (13     (24           (37

Transfer to held-for-sale (1)

          (5     (6     (11
   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2012

  $ 293     $ 52     $ 2     $ 347  
   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

(1)

The valuation allowance on and the related carrying value of certain residential mortgage loans held-for-investment were transferred to mortgage loans held-for-sale in connection with the MetLife Bank Divestiture. See Note 3.

Schedule of Financing Receivables, Non Accrual Status
                                                 
    Past Due     Greater than 90 Days Past Due
and Still Accruing Interest
    Nonaccrual Status  
    December 31, 2012     December 31, 2011     December 31, 2012     December 31, 2011     December 31, 2012     December 31, 2011  
    (In millions)  

Commercial

  $ 2     $ 63     $     $     $ 84     $ 63  

Agricultural

    116       146       53       29       67       157  

Residential

    29       8                   18       17  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 147     $ 217     $ 53     $ 29     $ 169     $ 237  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Impaired mortgage loans held-for-investment
                                                                                 
    Loans with a Valuation Allowance     Loans without
a Valuation Allowance
    All Impaired Loans  

December 31,    

  Unpaid
Principal
Balance
    Recorded
Investment
    Valuation
Allowances
    Carrying
Value
    Unpaid
Principal
Balance
    Recorded
Investment
    Unpaid
Principal
Balance
    Carrying
Value
    Average
Recorded
Investment
    Interest
Income
 
    (In millions)  

2012:

                                                                               

Commercial

  $ 445     $ 436     $ 94     $ 342     $ 103     $ 103     $ 548     $ 445     $ 464     $ 14  

Agricultural

    110       107       21       86       79       74       189       160       204       8  

Residential

    13       13       2       11                   13       11       13        
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 568     $ 556     $ 117     $ 439     $ 182     $ 177     $ 750     $ 616     $ 681     $ 22  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

2011:

                                                                               

Commercial

  $ 96     $ 96     $ 59     $ 37     $ 252     $ 237     $ 348     $ 274     $ 313     $ 6  

Agricultural

    160       159       45       114       71       69       231       183       252       5  

Residential

    13       13       1       12       1       1       14       13       23        
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 269     $ 268     $ 105     $ 163     $ 324     $ 307     $ 593     $ 470     $ 588     $ 11  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Mortgage loans modified in a troubled debt restructuring
                                                 
    For the Years Ended December 31,  
    2012     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      $ 222      $ 199       5      $ 147      $ 111  

Agricultural

    5       17       16       10       42       42  

Residential

                                   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    6      $ 239      $ 215       15      $ 189      $ 153  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Investment in leveraged leases
                 
    December 31,  
    2012     2011  
    (In millions)  

Rental receivables, net

  $ 1,564     $ 1,859  

Estimated residual values

    1,474       1,657  
   

 

 

   

 

 

 

Subtotal

    3,038       3,516  

Unearned income

    (1,040     (1,268
   

 

 

   

 

 

 

Investment in leveraged leases

  $     1,998     $     2,248  
   

 

 

   

 

 

 
Net income from investment in leveraged leases
                         
    Years Ended December 31,  
    2012     2011     2010  
    (In millions)  

Income from investment in leveraged leases

  $ 57     $ 125     $ 123  

Less: Income tax expense on leveraged leases

    (20     (44     (43
   

 

 

   

 

 

   

 

 

 

Investment income after income tax from investment in leveraged leases

  $         37     $         81     $         80  
   

 

 

   

 

 

   

 

 

 
Components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss)
                         
    Years Ended December 31,  
    2012     2011     2010  
    (In millions)  

Fixed maturity securities

  $ 33,641     $ 21,096     $ 7,817  

Fixed maturity securities with noncredit OTTI losses in accumulated other comprehensive income (loss)

    (361     (724     (601
   

 

 

   

 

 

   

 

 

 

Total fixed maturity securities

    33,280       20,372       7,216  

Equity securities

    97       (167     (3

Derivatives

    1,274       1,514       (59

Other

    (30     72       42  
   

 

 

   

 

 

   

 

 

 

Subtotal

    34,621       21,791       7,196  
   

 

 

   

 

 

   

 

 

 

Amounts allocated from:

                       

Insurance liability loss recognition

    (6,049     (3,996     (672

DAC and VOBA related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)

    19       47       38  

DAC and VOBA

    (2,485     (1,800     (1,003

Policyholder dividend obligation

    (3,828     (2,919     (876
   

 

 

   

 

 

   

 

 

 

Subtotal

    (12,343     (8,668     (2,513

Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)

    119       236       197  

Deferred income tax benefit (expense)

    (7,973     (4,694     (1,762
   

 

 

   

 

 

   

 

 

 

Net unrealized investment gains (losses)

    14,424       8,665       3,118  

Net unrealized investment gains (losses) attributable to noncontrolling interests

    (5     9       4  
   

 

 

   

 

 

   

 

 

 

Net unrealized investment gains (losses) attributable to MetLife, Inc.

  $ 14,419     $ 8,674     $ 3,122  
   

 

 

   

 

 

   

 

 

 
                         
    Years Ended December 31,  
    2012     2011     2010  
    (In millions)  

Balance, beginning of period

  $ 8,674     $ 3,122     $ (1,338

Cumulative effect of change in accounting principles, net of income tax

                52  

Fixed maturity securities on which noncredit OTTI losses have been recognized

    363       (123     242  

Unrealized investment gains (losses) during the year

    12,467       14,823       9,117  

Unrealized investment gains (losses) of subsidiary at the date of disposal

          (105      

Unrealized investment gains (losses) relating to:

                       

Insurance liability gain (loss) recognition

    (2,053     (3,406     (554

Insurance liability gain (loss) recognition of subsidiary at the date of disposal

          82        

DAC and VOBA related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)

    (28     9       (33

DAC and VOBA

    (685     (808     (1,135

DAC and VOBA of subsidiary at date of disposal

          11        

Policyholder dividend obligation

    (909     (2,043     (876

Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)

    (117     39       (73

Deferred income tax benefit (expense)

    (3,279     (2,936     (2,283

Deferred income tax benefit (expense) of subsidiary at date of disposal

          4        
   

 

 

   

 

 

   

 

 

 

Net unrealized investment gains (losses)

    14,433       8,669       3,119  

Net unrealized investment gains (losses) attributable to noncontrolling interests

    (14     5       3  
   

 

 

   

 

 

   

 

 

 

Balance, end of period

  $ 14,419     $ 8,674     $ 3,122  
   

 

 

   

 

 

   

 

 

 

Change in net unrealized investment gains (losses)

  $ 5,759     $ 5,547     $ 4,457  

Change in net unrealized investment gains (losses) attributable to noncontrolling interests

    (14     5       3  
   

 

 

   

 

 

   

 

 

 

Change in net unrealized investment gains (losses) attributable to MetLife, Inc.

  $ 5,745     $ 5,552     $ 4,460  
   

 

 

   

 

 

   

 

 

 
Other than temporary impairment, credit losses recongnized earnings
                 
        Years Ended December 31,      
    2012     2011  
    (In millions)  

Balance, January 1,

  $ (724   $ (601

Noncredit OTTI losses recognized (1)

    (29     31  

Securities sold with previous noncredit OTTI loss

    177       125  

Subsequent changes in estimated fair value

    215       (279
   

 

 

   

 

 

 

Balance, December 31,

  $ (361   $ (724
   

 

 

   

 

 

 

 

 

(1)

Noncredit OTTI losses recognized, net of DAC, were ($21) million and $33 million for the years ended December 31, 2012 and 2011, respectively.

Securities Lending
                 
    December 31,  
    2012     2011  
    (In millions)  

Securities on loan: (1)

               

Amortized cost

  $ 23,380     $ 20,613  

Estimated fair value

  $ 27,077     $ 24,072  

Cash collateral on deposit from counterparties (2)

  $ 27,727     $ 24,223  

Security collateral on deposit from counterparties (3)

  $ 104     $ 371  

Reinvestment portfolio — estimated fair value

  $ 28,112     $ 23,940  

 

 

(1)

Included within fixed maturity securities, equity securities and short-term investments.

 

(2)

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

 

(3)

Security collateral on deposit from counterparties may not be sold or repledged, unless the counterparty is in default, and is not reflected in the consolidated financial statements.

Invested Assets on Deposit, Held in Trust and Pledged as Collateral
                 
    December 31,  
    2012     2011  
    (In millions)  

Invested assets on deposit (regulatory deposits)

  $ 2,362     $ 1,660  

Invested assets held in trust (collateral financing arrangements and reinsurance agreements)

    12,434       11,135  

Invested assets pledged as collateral (1)

    23,251       29,899  
   

 

 

   

 

 

 

Total invested assets on deposit, held in trust and pledged as collateral

  $ 38,047     $ 42,694  
   

 

 

   

 

 

 

 

 

(1)

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 4 and 12), collateral financing arrangements (see Note 13) and derivative transactions (see Note 9).

Purchased credit impaired investments, by invested asset class, held
                                 
    December 31,  
        2012             2011             2012             2011      
    Fixed Maturity Securities     Mortgage Loans  
    (In millions)  

Outstanding principal and interest balance (1)

  $ 4,905     $ 4,547     $ 440     $ 471  

Carrying value (2)

  $ 3,900     $ 3,130     $ 199     $ 173  

 

 

(1)

Represents the contractually required payments, which is the sum of contractual principal, whether or not currently due, and accrued interest.

 

(2)

Estimated fair value plus accrued interest for fixed maturity securities and amortized cost, plus accrued interest, less any valuation allowances, for mortgage loans.

                                 
    Years Ended December 31,  
        2012             2011             2012             2011      
    Fixed Maturity Securities     Mortgage Loans  
    (In millions)  

Contractually required payments (including interest)

  $ 2,083     $ 5,141     $     $  

Cash flows expected to be collected (1)

  $ 1,524     $ 4,365     $     $  

Fair value of investments acquired

  $ 991     $ 2,590     $     $  

 

 

(1)

Represents undiscounted principal and interest cash flow expectations, at the date of acquisition.

                                 
    Years Ended December 31,  
        2012             2011             2012             2011      
    Fixed Maturity Securities     Mortgage Loans  
    (In millions)  

Accretable yield, January 1,

  $ 2,311     $ 541     $ 254     $ 170  

Investments purchased

    533       1,775              

Accretion recognized in earnings

    (203     (114     (71     (56

Disposals

    (102     (65            

Reclassification (to) from nonaccretable difference

    126       174       1       140  
   

 

 

   

 

 

   

 

 

   

 

 

 

Accretable yield, December 31,

  $ 2,665     $ 2,311     $ 184     $ 254  
   

 

 

   

 

 

   

 

 

   

 

 

 
The Components of Net Investment Income
                         
    Years Ended December 31,  
    2012     2011     2010  
    (In millions)  

Investment income:

                       

Fixed maturity securities

  $ 15,218     $ 15,037     $ 12,407  

Equity securities

    133       141       128  

FVO and trading securities — Actively Traded Securities and FVO general account securities (1)

    88       31       73  

Mortgage loans

    3,191       3,164       2,824  

Policy loans

    626       641       649  

Real estate and real estate joint ventures

    834       688       372  

Other limited partnership interests

    845       681       879  

Cash, cash equivalents and short-term investments

    163       167       101  

International joint ventures

    19       (12     (92

Other

    131       178       236  
   

 

 

   

 

 

   

 

 

 

Subtotal

    21,248       20,716       17,577  

Less: Investment expenses

    1,090       1,019       882  
   

 

 

   

 

 

   

 

 

 

Subtotal, net

    20,158       19,697       16,695  
   

 

 

   

 

 

   

 

 

 

FVO and trading securities — FVO contractholder-directed unit-linked investments (1)

    1,473       (453     372  

Securitized reverse residential mortgage loans

    177              

FVO CSEs - interest income:

                       

Commercial mortgage loans

    172       332       411  

Securities

    4       9       15  
   

 

 

   

 

 

   

 

 

 

Subtotal

    1,826       (112     798  
   

 

 

   

 

 

   

 

 

 

Net investment income

  $ 21,984     $ 19,585     $ 17,493  
   

 

 

   

 

 

   

 

 

 

 

 

(1)

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

 

                         
    Years Ended December 31,  
    2012     2011     2010  
    (In millions)  

Actively Traded Securities and FVO general account securities

  $ 51     $ (3   $ 30  

FVO contractholder-directed unit-linked investments

  $ 1,170     $ (647   $ 322  
The components of net investment gains (losses)
                         
    Years Ended December 31,  
    2012     2011     2010  
    (In millions)  

Total gains (losses) on fixed maturity securities:

                       

Total OTTI losses recognized — by sector and industry:

                       

U.S. and foreign corporate securities — by industry:

                       

Utility

  $ (61   $ (10   $ (3

Finance

    (32     (56     (126

Consumer

    (19     (50     (36

Communications

    (19     (41     (16

Transportation

    (17            

Technology

    (6     (1      

Industrial

    (5     (11     (2
   

 

 

   

 

 

   

 

 

 

Total U.S. and foreign corporate securities

    (159     (169     (183

RMBS

    (97     (214     (117

CMBS

    (51     (32     (86

ABS

    (9     (54     (84

State and political subdivision

    (1            

Foreign government

          (486      
   

 

 

   

 

 

   

 

 

 

OTTI losses on fixed maturity securities recognized in earnings

    (317     (955     (470

Fixed maturity securities — net gains (losses) on sales and disposals

    253       25       215  
   

 

 

   

 

 

   

 

 

 

Total gains (losses) on fixed maturity securities (1)

    (64     (930     (255
   

 

 

   

 

 

   

 

 

 

Total gains (losses) on equity securities:

                       

Total OTTI losses recognized — by sector:

                       

Common

    (34     (22     (7

Non-redeemable preferred

          (38     (7
   

 

 

   

 

 

   

 

 

 

OTTI losses on equity securities recognized in earnings

    (34     (60     (14

Equity securities — net gains (losses) on sales and disposals

    38       37       118  
   

 

 

   

 

 

   

 

 

 

Total gains (losses) on equity securities

    4       (23     104  
   

 

 

   

 

 

   

 

 

 

FVO and trading securities — FVO general account securities — changes in estimated fair value subsequent to consolidation

    17       (2      

Mortgage loans (1)

    57       175       22  

Real estate and real estate joint ventures

    (36     134       (54

Other limited partnership interests

    (36     4       (18

Other investment portfolio gains (losses)

    (151     (7     (6
   

 

 

   

 

 

   

 

 

 

Subtotal — investment portfolio gains (losses) (1)

    (209     (649     (207
   

 

 

   

 

 

   

 

 

 

FVO CSEs — changes in estimated fair value subsequent to consolidation:

                       

Commercial mortgage loans

    7       (84     758  

Securities

                (78

Long-term debt — related to commercial mortgage loans

    25       97       (722

Long-term debt — related to securities

    (7     (8     48  

Non-investment portfolio gains (losses) (2)

    (168     (223     (207
   

 

 

   

 

 

   

 

 

 

Subtotal FVO CSEs and non-investment portfolio gains (losses)

    (143     (218     (201
   

 

 

   

 

 

   

 

 

 

Total net investment gains (losses)

  $ (352   $ (867   $ (408
   

 

 

   

 

 

   

 

 

 

 

 

(1)

Investment portfolio gains (losses) for the years ended December 31, 2012 and 2011 includes a net gain (loss) of $37 million and ($153) million, respectively, as a result of the MetLife Bank Divestiture, which is comprised of gains (losses) on investments sold of $78 million and $1 million, and impairments of ($41) million and ($154) million, respectively. See Note 3.

 

(2)

Non-investment portfolio gains (losses) for the year ended December 31, 2012 includes a gain of $33 million related to certain dispositions as more fully described in Note 3. Non-investment portfolio gains (losses) for the year ended December 31, 2011 includes a loss of $106 million related to certain dispositions and a goodwill impairment loss of $65 million. See Notes 3 and 11. Non-investment portfolio gains (losses) for the year ended December 31, 2010 includes a loss of $209 million related to a disposition. See Note 3.

Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains and losses
                                                                         
    Years Ended December 31,  
    2012     2011     2010     2012     2011     2010     2012     2011     2010  
    Fixed Maturity Securities     Equity Securities     Total  
    (In millions)  

Proceeds

  $   59,219     $   67,449     $   54,514     $ 1,648     $ 1,241     $ 616     $   60,867     $   68,690     $   55,130  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross investment gains

  $ 944     $ 892     $ 831     $ 73     $ 108     $ 129     $ 1,017     $ 1,000     $ 960  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross investment losses

    (691     (867     (616     (35     (71     (11     (726     (938     (627
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total OTTI losses recognized in earnings:

                                                                       

Credit-related

    (223     (645     (423                       (223     (645     (423

Other (1)

    (94     (310     (47     (34     (60     (14     (128     (370     (61
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total OTTI losses recognized in earnings

    (317     (955     (470     (34     (60     (14     (351     (1,015     (484
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment gains (losses)

  $ (64   $ (930   $ (255   $ 4     $ (23   $ 104     $ (60   $ (953   $ (151
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

(1)

Other OTTI losses recognized in earnings include impairments on (i) equity securities, (ii) 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 (iii) 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.

Rollforward of the Cumulative Credit Loss Component of OTTI income (loss)
                 
    Years Ended December 31,  
    2012     2011  
    (In millions)  

Balance, at January 1,

  $ 471     $ 443  

Additions:

               

Initial impairments — credit loss OTTI recognized on securities not previously impaired

    46       45  

Additional impairments — credit loss OTTI recognized on securities previously impaired

    70       143  

Reductions:

               

Sales (maturities, pay downs or prepayments) during the period of securities previously impaired as credit loss OTTI

    (176     (90

Securities impaired to net present value of expected future cash flows

    (17     (57

Increases in cash flows — accretion of previous credit loss OTTI

    (2     (13
   

 

 

   

 

 

 

Balance, at December 31,

  $ 392     $ 471  
   

 

 

   

 

 

 
Variable Interest Entity, Primary Beneficiary [Member]
 
Variable Interest Entity [Line Items]  
Schedule of Variable Interest Entities [Table Text Block]
                                 
    December 31,  
    2012     2011  
    Total
Assets
    Total
Liabilities
    Total
Assets
    Total
Liabilities
 
    (In millions)  

CSEs (assets (primarily loans) and liabilities (primarily debt)) (1)

  $ 2,730     $ 2,545     $ 3,299     $ 3,103  

MRSC (collateral financing arrangement (primarily securities)) (2)

    3,439             3,333        

Other limited partnership interests

    356       8       360       6  

FVO and trading securities

    71             163        

Other invested assets

    85             102       1  

Real estate joint ventures

    11       14       16       18  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 6,692     $ 2,567     $ 7,273     $ 3,128  
   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

(1)

The Company consolidates former QSPEs that are structured as CMBS and 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 assets and liabilities of these CSEs are primarily commercial mortgage loans held-for-investment and long-term debt, respectively, and to a lesser extent include FVO and trading securities, accrued investment income, cash and cash equivalents, premiums, reinsurance and other receivables and other liabilities. The Company’s exposure was limited to that of its remaining investment in the former QSPEs of $168 million and $172 million at estimated fair value at December 31, 2012 and 2011, respectively. The long-term debt bears interest primarily at fixed rates ranging from 2.25% to 5.57%, payable primarily on a monthly basis. Interest expense related to these obligations, included in other expenses, was $163 million, $324 million and $411 million for the years ended December 31, 2012, 2011 and 2010 respectively.

 

(2)

See Note 13 for a description of the MetLife Reinsurance Company of South Carolina (“MRSC”) collateral financing arrangement. These assets primarily consist of fixed maturity securities and, to a much lesser extent, mortgage loans and cash and cash equivalents.

Variable Interest Entity, Not Primary Beneficiary [Member]
 
Variable Interest Entity [Line Items]  
Schedule of Variable Interest Entities [Table Text Block]
                                 
    December 31,  
    2012     2011  
    Carrying
Amount
    Maximum
Exposure
to Loss (1)
    Carrying
Amount
    Maximum
Exposure
to Loss (1)
 
    (In millions)  

Fixed maturity securities AFS:

                               

Structured securities (RMBS, CMBS and ABS) (2)

  $ 72,605     $ 72,605     $ 74,685     $ 74,685  

U.S. and foreign corporate

    5,287       5,287       4,998       4,998  

Other limited partnership interests

    4,436       5,908       4,340       6,084  

Other invested assets

    1,117       1,431       799       1,194  

FVO and trading securities

    563       563       671       671  

Mortgage loans

    351       351       456       456  

Real estate joint ventures

    150       157       61       79  

Equity securities AFS:

                               

Non-redeemable preferred

    32       32              
   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 84,541     $ 86,334     $ 86,010     $ 88,167  
   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

(1)

The maximum exposure to loss relating to fixed maturity securities and the FVO and trading securities is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments of the Company. The maximum exposure to loss relating to mortgage loans is equal to the carrying amounts plus any unfunded commitments of the Company. 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 creditworthy third parties. 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 $318 million and $267 million at December 31, 2012 and 2011, respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee.

 

(2)

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

Commercial mortgage loans portfolio segment [Member]
 
Mortgage Loans on Real Estate [Line Items]  
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories
                                                         
    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)        

December 31, 2012:

                                                       

Loan-to-value ratios:

                                                       

Less than 65%

  $ 29,839     $ 730     $ 722     $ 31,291       77.3    $ 33,730       78.3 

65% to 75%

    5,057       672       153       5,882       14.6        6,129       14.2   

76% to 80%

    938       131       316       1,385       3.4        1,436       3.3   

Greater than 80%

    1,085       552       277       1,914       4.7        1,787       4.2   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 36,919     $ 2,085     $ 1,468     $ 40,472       100.0    $ 43,082       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 portfolio segment [Member]
 
Mortgage Loans on Real Estate [Line Items]  
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories
                                 
    December 31,  
    2012     2011  
    Recorded
Investment
    % of
Total
    Recorded
Investment
    % of
    Total    
 
    (In millions)           (In millions)        

Loan-to-value ratios:

                               

Less than 65%

  $ 11,908       92.7    $ 11,802       89.9 

65% to 75%

    590       4.6        874       6.7   

76% to 80%

    92       0.7        76       0.6   

Greater than 80%

    253       2.0        377       2.8   
   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 12,843           100.0    $     13,129           100.0 
   

 

 

   

 

 

   

 

 

   

 

 

 
Residential mortgage loans portfolio segment [Member]
 
Mortgage Loans on Real Estate [Line Items]  
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories
                                 
    December 31,  
    2012     2011  
    Recorded
Investment
    % of
Total
    Recorded
Investment
    % of
Total
 
    (In millions)           (In millions)        

Performance indicators:

                               

Performing

  $ 929       97.0    $ 671       97.4 

Non-performing

    29       3.0        18       2.6   
   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 958           100.0    $ 689           100.0