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Investments (Tables)
3 Months Ended
Mar. 31, 2013
Investments [Abstract]  
Fixed Maturity and Equity Securities Available-for-Sale
                                                                                 
    March 31, 2013     December 31, 2012  
    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

  $ 102,086      $ 11,364      $ 444      $ —      $ 113,006      $ 102,669      $ 11,887      $ 430      $ —      $ 114,126   

Foreign corporate (1)

    61,067        5,322        305        (2)       66,086        61,806        5,654        277        (1)       67,184   

Foreign government

    49,951        5,552        68        —        55,435        51,967        5,440        71        —        57,336   

U.S. Treasury and agency

    49,258        5,229        30        —        54,457        41,874        6,104        11        —        47,967   

RMBS

    34,403        2,391        198        249        36,347        35,666        2,477        315        349        37,479   

CMBS

    17,015        935        53        —        17,897        18,177        1,009        57        —        19,129   

ABS

    15,841        423        137        13        16,114        15,762        404        156        13        15,997   

State and political subdivision

    12,912        2,110        70        —        14,952        12,949        2,169        70        —        15,048   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed maturity securities

  $ 342,533      $ 33,326      $ 1,305      $ 260      $ 374,294      $ 340,870      $ 35,144      $ 1,387      $ 361      $ 374,266   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity securities:

                                                                               

Common stock

  $ 1,985      $ 305      $     $ —      $ 2,282      $ 2,034      $ 147      $ 19      $ —      $ 2,162   

Non-redeemable preferred stock

    913        71        78        —        906        804        65        140        —        729   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity securities

  $ 2,898      $ 376      $ 86      $ —      $ 3,188      $ 2,838      $ 212      $ 159      $ —      $ 2,891   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(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 $2 million and $1 million at March 31, 2013 and December 31, 2012, respectively, 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
                                 
    March 31, 2013     December 31, 2012  
      Amortized  
Cost
      Estimated  
Fair
Value
      Amortized  
Cost
      Estimated  
Fair
Value
 
    (In millions)  

Due in one year or less

  $ 23,879      $ 24,118      $ 24,177      $ 24,394   

Due after one year through five years

    70,432        74,386        66,973        70,759   

Due after five years through ten years

    80,420        89,648        82,376        91,975   

Due after ten years

    100,543        115,784        97,739        114,533   
   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal

    275,274        303,936        271,265        301,661   

Structured securities (RMBS, CMBS and ABS)

    67,259        70,358        69,605        72,605   
   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed maturity securities

  $ 342,533      $ 374,294      $ 340,870      $ 374,266   
   

 

 

   

 

 

   

 

 

   

 

 

 
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
                                                                 
    March 31, 2013     December 31, 2012  
    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

  $ 5,868      $ 171      $ 2,663      $ 273      $ 3,799      $ 88      $ 3,695      $ 342   

Foreign corporate

    4,884        146        2,144        157        2,783        96        2,873        180   

Foreign government

    1,428        28        462        40        1,431        22        543        49   

U.S. Treasury and agency

    2,645        30        —        —        1,951        11        —        —   

RMBS

    1,284        42        3,235        405        735        31        4,098        633   

CMBS

    1,440        16        401        37        842        11        577        46   

ABS

    2,356        43        1,015        107        1,920        30        1,410        139   

State and political subdivision

    525        10        243        60        260              251        66   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed maturity securities

  $ 20,430      $ 486      $ 10,163      $ 1,079      $ 13,721      $ 293      $ 13,447      $ 1,455   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity securities:

                                                               

Common stock

  $ 67      $     $ 12      $     $ 201      $ 18      $ 14      $  

Non-redeemable preferred stock

    56              274        77        —        —        295        140   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity securities

  $ 123      $     $ 286      $ 78      $ 201      $ 18      $ 309      $ 141   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total number of securities in an unrealized loss position

    2,188                1,070                1,941                1,335           
   

 

 

           

 

 

           

 

 

           

 

 

         
Disclosure of Mortgage Loans Net of Valuation Allowance
                                 
    March 31, 2013     December 31, 2012  
        Carrying    
Value
    % of
    Total    
        Carrying    
Value
    % of
    Total    
 
    (In millions)           (In millions)        

Mortgage loans held-for-investment:

                               

Commercial

  $ 39,605        71.2   %    $ 40,472        71.0   % 

Agricultural

    12,669        22.8        12,843        22.5   

Residential

    994        1.8        958        1.7   
   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal (1)

    53,268        95.8        54,273        95.2   

Valuation allowances

    (332)       (0.6)       (347)       (0.6)  
   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal mortgage loans held-for-investment, net

    52,936        95.2        53,926        94.6   

Commercial mortgage loans held by CSEs

    2,407        4.3        2,666        4.7   
   

 

 

   

 

 

   

 

 

   

 

 

 

Total mortgage loans held-for-investment, net

    55,343        99.5        56,592        99.3   
   

 

 

   

 

 

   

 

 

   

 

 

 

Mortgage loans held-for-sale:

                               

Residential — FVO

          —        49        0.1   

Mortgage loans — lower of amortized cost or estimated fair value

    269        0.5        365        0.6   
   

 

 

   

 

 

   

 

 

   

 

 

 

Total mortgage loans held-for-sale

    271        0.5        414        0.7   
   

 

 

   

 

 

   

 

 

   

 

 

 

Total mortgage loans, net

  $ 55,614        100.0   %    $ 57,006        100.0   % 
   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

(1)

Purchases of mortgage loans were $50 million for the three months ended March 31, 2013. There were no mortgage loan purchases for the three months ended March 31, 2012.

Disclosure of mortgage loans held-for-investment and valuation allowances by method of evaluation for credit loss
                                                                 
    March 31, 2013     December 31, 2012  
    Commercial     Agricultural     Residential           Total           Commercial     Agricultural     Residential           Total        
    (In millions)  

Mortgage loans:

                                                               

Evaluated individually for credit losses

  $ 533      $ 156      $ 14      $ 703      $ 539      $ 181      $ 13      $ 733   

Evaluated collectively for credit losses

    39,072        12,513        980        52,565        39,933        12,662        945        53,540   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total mortgage loans

    39,605        12,669        994        53,268        40,472        12,843        958        54,273   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Valuation allowances:

                                                               

Specific credit losses

    61        19              82        94        21              117   

Non-specifically identified credit losses

    214        35              250        199        31        —        230   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total valuation allowances

    275        54              332        293        52              347   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Mortgage loans, net of valuation allowance

  $ 39,330      $ 12,615      $ 991      $ 52,936      $ 40,179      $ 12,791      $ 956      $ 53,926   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

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

For the Three Months Ended March 31, 2013:

                               

Balance, beginning of period

  $ 293      $ 52      $     $ 347   

Provision (release)

    (18)                   (11)  

Charge-offs, net of recoveries

    —        (4)       —        (4)  
   

 

 

   

 

 

   

 

 

   

 

 

 

Balance, end of period

  $ 275      $ 54      $     $ 332   
   

 

 

   

 

 

   

 

 

   

 

 

 

For the Three Months Ended March 31, 2012:

                               

Balance, beginning of period

  $ 398      $ 81      $     $ 481   

Provision (release)

    (30)       (6)             (35)  

Charge-offs, net of recoveries

    —        —        —        —   
   

 

 

   

 

 

   

 

 

   

 

 

 

Balance, end of period

  $ 368      $ 75      $     $ 446   
   

 

 

   

 

 

   

 

 

   

 

 

 
Schedule of Financing Receivables, Non Accrual Status
                                                 
    Past Due     Greater than 90 Days Past Due
and Still Accruing Interest
    Nonaccrual Status  
    March 31, 2013     December 31, 2012     March 31, 2013     December 31, 2012     March 31, 2013     December 31, 2012  
    (In millions)  

Commercial

  $ —      $     $ —      $ —      $ 223      $ 84   

Agricultural

    105        116        44        53        75        67   

Residential

    27        29        —        —        18        18   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 132      $ 147      $ 44      $ 53      $ 316      $ 169   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Impaired mortgage loans held-for-investment
                                                                 
    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, 2013:

                                                               

Commercial

  $ 261      $ 245      $ 61      $ 184      $ 302      $ 288      $ 563      $ 472   

Agricultural

    91        90        19        71        71        66        162        137   

Residential

    12        12              10                    14        12   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 364      $ 347      $ 82      $ 265      $ 375      $ 356      $ 739      $ 621   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

December 31, 2012:

                                                               

Commercial

  $ 445      $ 436      $ 94      $ 342      $ 103      $ 103      $ 548      $ 445   

Agricultural

    110        107        21        86        79        74        189        160   

Residential

    13        13              11        —        —        13        11   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                 
    Impaired Mortgage Loans  
    Average
Recorded  Investment
    Interest
             Income            
 
    (In millions)  

For the Three Months Ended March 31, 2013:

               

Commercial

  $ 536      $  

Agricultural

    169         

Residential

    14        —   
   

 

 

   

 

 

 

Total

  $ 719      $  
   

 

 

   

 

 

 

For the Three Months Ended March 31, 2012:

               

Commercial

  $ 273      $  

Agricultural

    229         

Residential

    14        —   
   

 

 

   

 

 

 

Total

  $ 516      $  
   

 

 

   

 

 

 
Components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss)
                 
        March 31, 2013          December 31, 2012   
    (In millions)  

Fixed maturity securities

  $ 31,932      $ 33,641   

Fixed maturity securities with noncredit OTTI losses in AOCI

    (260)       (361)  
   

 

 

   

 

 

 

Total fixed maturity securities

    31,672        33,280   

Equity securities

    341        97   

Derivatives

    1,393        1,274   

Other

    (16)       (30)  
   

 

 

   

 

 

 

Subtotal

    33,390        34,621   
   

 

 

   

 

 

 

Amounts allocated from:

               

Insurance liability loss recognition

    (5,613)       (6,049)  

DAC and VOBA related to noncredit OTTI losses recognized in AOCI

          19   

DAC and VOBA

    (2,242)       (2,485)  

Policyholder dividend obligation

    (3,599)       (3,828)  
   

 

 

   

 

 

 

Subtotal

    (11,445)       (12,343)  

Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI

    87        119   

Deferred income tax benefit (expense)

    (7,788)       (7,973)  
   

 

 

   

 

 

 

Net unrealized investment gains (losses)

    14,244        14,424   

Net unrealized investment gains (losses) attributable to noncontrolling interests

    (7)       (5)  
   

 

 

   

 

 

 

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

  $ 14,237      $ 14,419   
   

 

 

   

 

 

 
Other than temporary impairment, credit losses recongnized earnings
                 
    Three Months
Ended
    March 31, 2013    
    Year
Ended
 December 31, 2012 
 
    (In millions)  

Balance, beginning of period

  $ (361)     $ (724)  

Noncredit OTTI losses and subsequent changes recognized (1)

    31        (29)  

Securities sold with previous noncredit OTTI loss

    54        177   

Subsequent changes in estimated fair value

    16        215   
   

 

 

   

 

 

 

Balance, end of period

  $ (260)     $ (361)  
   

 

 

   

 

 

 

 

 

(1)

Noncredit OTTI losses and subsequent changes recognized, net of DAC, were $24 million and ($21) million for the three months ended March 31, 2013 and year ended December 31, 2012, respectively.

         
    Three Months
Ended
    March 31, 2013    
 
    (In millions)  

Balance, beginning of period

  $ 14,419   

Fixed maturity securities on which noncredit OTTI losses have been recognized

    101   

Unrealized investment gains (losses) during the period

    (1,332)  

Unrealized investment gains (losses) relating to:

       

Insurance liability gain (loss) recognition

    436   

DAC and VOBA related to noncredit OTTI losses recognized in AOCI

    (10)  

DAC and VOBA

    243   

Policyholder dividend obligation

    229   

Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI

    (32)  

Deferred income tax benefit (expense)

    185   
   

 

 

 

Net unrealized investment gains (losses)

    14,239   

Net unrealized investment gains (losses) attributable to noncontrolling interests

    (2)  
   

 

 

 

Balance, end of period

  $ 14,237   
   

 

 

 

Change in net unrealized investment gains (losses)

  $ (180)  

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

    (2)  
   

 

 

 

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

  $ (182)  
   

 

 

 
Securities Lending
                 
        March 31, 2013          December 31, 2012   
    (In millions)  

Securities on loan: (1)

               

Amortized cost

  $ 27,034      $ 23,380   

Estimated fair value

  $ 29,605      $ 27,077   

Cash collateral on deposit from counterparties (2)

  $ 30,284      $ 27,727   

Security collateral on deposit from counterparties (3)

  $ 23      $ 104   

Reinvestment portfolio — estimated fair value

  $ 30,776      $ 28,112   

 

 

(1)

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

 

(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
                 
        March 31, 2013          December 31, 2012   
    (In millions)  

Invested assets on deposit (regulatory deposits)

  $ 2,335      $ 2,362   

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

    11,702        12,434   

Invested assets pledged as collateral (1)

    23,763        23,251   
   

 

 

   

 

 

 

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

  $ 37,800      $ 38,047   
   

 

 

   

 

 

 

 

 

(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 of the Notes to the Consolidated Financial Statements included in the 2012 Annual Report), collateral financing arrangements (see Note 13 of the Notes to the Consolidated Financial Statements included in the 2012 Annual Report) and derivative transactions (see Note 7).

The Components of Net Investment Income
                 
    Three Months
Ended
March 31,
 
            2013                     2012          
    (In millions)  

Investment income:

               

Fixed maturity securities

  $ 3,826      $ 3,808   

Equity securities

    24        32   

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

    21        45   

Mortgage loans

    738        830   

Policy loans

    155        158   

Real estate and real estate joint ventures

    193        177   

Other limited partnership interests

    246        182   

Cash, cash equivalents and short-term investments

    49        36   

International joint ventures

    (14)        

Other

    63        41   
   

 

 

   

 

 

 

Subtotal

    5,301        5,312   

Less: Investment expenses

    300        259   
   

 

 

   

 

 

 

Subtotal, net

    5,001        5,053   
   

 

 

   

 

 

 

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

    1,039        1,015   

Securitized reverse residential mortgage loans

    —        85   

FVO CSEs — interest income:

               

Commercial mortgage loans

    37        45   

Securities

    —         
   

 

 

   

 

 

 

Subtotal

    1,076        1,147   
   

 

 

   

 

 

 

Net investment income

  $ 6,077      $ 6,200   
   

 

 

   

 

 

 

 

 

(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:

 

                 
    Three Months
Ended
March 31,
 
            2013                     2012          
    (In millions)  

Actively Traded Securities and FVO general account securities

  $ 13      $ 29   

FVO contractholder-directed unit-linked investments

  $ 956      $ 877   
The components of net investment gains (losses)
                 
    Three Months
Ended
March 31,
 
            2013                     2012          
    (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:

               

Finance

  $ (10)     $ (32)  

Consumer

    (8)       (3)  

Utility

    (5)       (38)  

Communications

    —        (17)  

Industrial

    —        (1)  
   

 

 

   

 

 

 

Total U.S. and foreign corporate securities

    (23)       (91)  

RMBS

    (37)       (9)  

CMBS

    —        (30)  

ABS

    —        (2)  

State and political subdivision

    —        (1)  
   

 

 

   

 

 

 

OTTI losses on fixed maturity securities recognized in earnings

    (60)       (133)  

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

    369        (7)  
   

 

 

   

 

 

 

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

    309        (140)  
   

 

 

   

 

 

 

Total gains (losses) on equity securities:

               

Total OTTI losses recognized — by sector:

               

Non-redeemable preferred stock

    (20)       —   

Common stock

    (1)       (15)  
   

 

 

   

 

 

 

OTTI losses on equity securities recognized in earnings

    (21)       (15)  

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

    (6)        
   

 

 

   

 

 

 

Total gains (losses) on equity securities

    (27)       (9)  
   

 

 

   

 

 

 

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

           

Mortgage loans (1)

    12        36   

Real estate and real estate joint ventures

    (14)       (4)  

Other limited partnership interests

    —        (2)  

Other investment portfolio gains (losses)

          (25)  
   

 

 

   

 

 

 

Subtotal — investment portfolio gains (losses) (1)

    291        (140)  
   

 

 

   

 

 

 

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

               

Commercial mortgage loans

    (13)        

Long-term debt — related to commercial mortgage loans

    22        —   

Long-term debt — related to securities

    (1)       (11)  

Non-investment portfolio gains (losses) (2)

    15        35   
   

 

 

   

 

 

 

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

    23        30   
   

 

 

   

 

 

 

Total net investment gains (losses)

  $ 314      $ (110)  
   

 

 

   

 

 

 

 

 

(1)

For the three months ended March 31, 2012, net investment gains (losses) includes a net gain of $95 million, as a result of the MetLife Bank Divestiture, which is comprised of gains (losses) on investments sold of $102 million, and impairments on mortgage loans of ($7) million. See Note 3.

 

(2)

Non-investment portfolio gains (losses) for the three months ended March 31, 2013 includes a gain of $30 million related to the MetLife Bank Divestiture. 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
                                                 
    Three Months Ended March 31,  
            2013                     2012                     2013                     2012                     2013                     2012          
    Fixed Maturity Securities     Equity Securities     Total  
    (In millions)  

Proceeds

  $ 19,550      $ 19,394      $ 86      $ 125      $ 19,636      $ 19,519   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross investment gains

  $ 500      $ 325      $     $ 10      $ 508      $ 335   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross investment losses

    (131)       (332)       (14)       (4)       (145)       (336)  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total OTTI losses recognized in earnings:

                                               

Credit-related

    (42)       (73)       —        —        (42)       (73)  

Other (1)

    (18)       (60)       (21)       (15)       (39)       (75)  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total OTTI losses recognized in earnings

    (60)       (133)       (21)       (15)       (81)       (148)  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment gains (losses)

  $ 309      $ (140)     $ (27)     $ (9)     $ 282      $ (149)  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

(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)
                 
    Three Months
Ended
March 31,
 
            2013                     2012          
    (In millions)  

Balance, beginning of period

  $ 392      $ 471   

Additions:

               

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

          16   

Additional impairments — credit loss OTTI recognized on securities previously impaired

    35         

Reductions:

               

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

    (30)       (104)  

Securities impaired to net present value of expected future cash flows

    —        (8)  
   

 

 

   

 

 

 

Balance, end of period

  $ 398      $ 381   
   

 

 

   

 

 

 
Variable Interest Entity, Primary Beneficiary [Member]
 
Variable Interest Entity [Line Items]  
Schedule of Variable Interest Entities [Table Text Block]
                                 
    March 31, 2013     December 31, 2012  
    Total
     Assets    
    Total
  Liabilities  
    Total
     Assets    
    Total
  Liabilities  
 
    (In millions)  

MRSC (collateral financing arrangement (primarily securities)) (1)

  $ 3,449      $ —      $ 3,439      $ —   

CSEs (assets (primarily loans) and liabilities (primarily debt)) (2)

    2,453        2,282        2,730        2,545   

Operating joint venture (3)

    2,364        1,976        —        —   

Investments:

                               

Other limited partnership interests

    187        14        356         

FVO and trading securities

    67        —        71        —   

Other invested assets

    85        —        85        —   

Real estate joint ventures

    11        14        11        14   
   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 8,616      $ 4,286      $ 6,692      $ 2,567   
   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

(1)

See Note 13 of the Notes to the Consolidated Financial Statements included in the 2012 Annual Report for a description of the MetLife Reinsurance Company of South Carolina (“MRSC”) collateral financing arrangement. These assets primarily consist of fixed maturity securities.

 

(2)

The Company consolidates former qualified special purpose entities (“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. The Company’s exposure was limited to that of its remaining investment in the former QSPEs of $155 million and $168 million at estimated fair value at March 31, 2013 and December 31, 2012, 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 $33 million and $43 million for the three months ended March 31, 2013 and 2012, respectively.

 

(3)

Assets of the operating joint venture are primarily fixed maturity securities and separate account assets. Liabilities of the operating joint venture are primarily future policy benefits, other policyholder funds and separate account liabilities. The assets and liabilities of the operating joint venture were consolidated in earlier periods, however as a result of the quarterly reassessment in the first quarter of 2013 it was determined to be a consolidated VIE.

Variable Interest Entity, Not Primary Beneficiary [Member]
 
Variable Interest Entity [Line Items]  
Schedule of Variable Interest Entities [Table Text Block]
                                 
    March 31, 2013     December 31, 2012  
    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)

  $ 70,358      $ 70,358      $ 72,605      $ 72,605   

U.S. and foreign corporate

    5,150        5,150        5,287        5,287   

Other limited partnership interests

    4,717        6,259        4,436        5,908   

Other invested assets

    1,210        1,469        1,117        1,431   

FVO and trading securities

    603        603        563        563   

Mortgage loans

    199        199        351        351   

Real estate joint ventures

    114        119        150        157   

Equity securities AFS:

                               

Non-redeemable preferred

    33        33        32        32   
   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 82,384      $ 84,190      $ 84,541      $ 86,334   
   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

(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 $309 million and $318 million at March 31, 2013 and December 31, 2012, 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           % of
     Total    
     
        > 1.20x         1.00x - 1.20x         < 1.00x         Total        
    (In millions)           (In millions)        

March 31, 2013:

                                                       

Loan-to-value ratios:

                                                       

Less than 65%

  $ 29,872      $ 701      $ 363      $ 30,936        78.1    $ 33,682        79.2 

65% to 75%

    4,864        645        158        5,667        14.3        5,912        13.9   

76% to 80%

    918        297        341        1,556        3.9        1,582        3.7   

Greater than 80%

    1,066        183        197        1,446        3.7        1,342        3.2   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 36,720      $ 1,826      $ 1,059      $ 39,605        100.0    $ 42,518        100.0 
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
               

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 
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Agricultural [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
                                 
    March 31, 2013     December 31, 2012  
    Recorded
     Investment    
    % of
    Total    
    Recorded
     Investment    
    % of
    Total    
 
    (In millions)           (In millions)        

Loan-to-value ratios:

                               

Less than 65%

  $ 11,676        92.2    $ 11,908        92.7 

65% to 75%

    679        5.4        590        4.6   

76% to 80%

    79        0.6        92        0.7   

Greater than 80%

    235        1.8        253        2.0   
   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 12,669        100.0    $ 12,843        100.0 
   

 

 

   

 

 

   

 

 

   

 

 

 
Residential [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
                                 
    March 31, 2013     December 31, 2012  
    Recorded
     Investment    
    % of
    Total    
    Recorded
     Investment    
    % of
    Total    
 
    (In millions)           (In millions)        

Performance indicators:

                               

Performing

  $ 967        97.3    $ 929        97.0 

Nonperforming

    27        2.7        29        3.0   
   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 994        100.0    $ 958        100.0