Investments

6 Months Ended

Jun. 30, 2013

Investments [Abstract]

Investments

6. Investments

Fixed Maturity and Equity Securities Available-for-Sale

   Fixed Maturity and Equity Securities Available-for-Sale by Sector

The following table presents the fixed maturity and equity securities available-for-sale (“AFS”) by sector. The unrealized loss amounts presented below include the noncredit loss component of other-than-temporary impairments (“OTTI”) losses. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities and non-redeemable preferred stock is reported within equity securities. Included within fixed maturity securities are structured securities including residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”).

	June 30, 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	$	101,627	$	8,398	$	1,017	$	—		$	109,008	$	102,669	$	11,887	$	430	$	—		$	114,126
Foreign corporate (1)		60,928		3,893		636		(1	)		64,186		61,806		5,654		277		(1	)		67,184
Foreign government		48,199		4,373		275		—			52,297		51,967		5,440		71		—			57,336
U.S. Treasury and agency		44,254		3,683		511		—			47,426		41,874		6,104		11		—			47,967
RMBS		35,295		1,848		436		266			36,441		35,666		2,477		315		349			37,479
CMBS		16,680		757		174		—			17,263		18,177		1,009		57		—			19,129
ABS		15,502		332		167		12			15,655		15,762		404		156		13			15,997
State and political subdivision		13,141		1,276		179		—			14,238		12,949		2,169		70		—			15,048
Total fixed maturity securities	$	335,626	$	24,560	$	3,395	$	277		$	356,514	$	340,870	$	35,144	$	1,387	$	361		$	374,266
Equity securities:
Common stock	$	1,895	$	344	$	8	$	—		$	2,231	$	2,034	$	147	$	19	$	—		$	2,162
Non-redeemable preferred stock		1,027		59		86		—			1,000		804		65		140		—			729
Total equity securities	$	2,922	$	403	$	94	$	—		$	3,231	$	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 $1 million at both June 30, 2013 and 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).”

The Company held non-income producing fixed maturity securities with an estimated fair value of $69 million and $85 million with unrealized gains (losses) of $22 million and $11 million at June 30, 2013 and December 31, 2012, respectively.

Maturities of Fixed Maturity Securities

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at:

	June 30, 2013				December 31, 2012
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(In millions)
Due in one year or less	$	20,433	$	20,684	$	24,177	$	24,394
Due after one year through five years		69,684		73,065		66,973		70,759
Due after five years through ten years		77,693		84,144		82,376		91,975
Due after ten years		100,339		109,262		97,739		114,533
Subtotal		268,149		287,155		271,265		301,661
Structured securities (RMBS, CMBS and ABS)		67,477		69,359		69,605		72,605
Total fixed maturity securities	$	335,626	$	356,514	$	340,870	$	374,266

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

  Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities AFS by Sector

The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position. The unrealized loss amounts include the noncredit component of OTTI loss.

	June 30, 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	$	15,848	$	749	$	2,291	$	268	$	3,799	$	88	$	3,695	$	342
Foreign corporate		11,417		486		1,602		149		2,783		96		2,873		180
Foreign government		5,802		237		290		38		1,431		22		543		49
U.S. Treasury and agency		16,198		511		—		—		1,951		11		—		—
RMBS		9,711		288		2,531		414		735		31		4,098		633
CMBS		3,198		149		278		25		842		11		577		46
ABS		3,797		88		919		91		1,920		30		1,410		139
State and political subdivision		2,043		124		226		55		260		4		251		66
Total fixed maturity securities	$	68,014	$	2,632	$	8,137	$	1,040	$	13,721	$	293	$	13,447	$	1,455
Equity securities:
Common stock	$	70	$	7	$	16	$	1	$	201	$	18	$	14	$	1
Non-redeemable preferred stock		379		18		250		68		—		—		295		140
Total equity securities	$	449	$	25	$	266	$	69	$	201	$	18	$	309	$	141
Total number of securities in an unrealized loss position		4,443				886				1,941				1,335

Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities

As described more fully in Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2012 Annual Report, the Company performs a regular evaluation of all investment classes for impairment, including fixed maturity securities, equity securities and perpetual hybrid securities, in accordance with its impairment policy, in order to evaluate whether such investments are other-than-temporarily impaired.

Current Period Evaluation

Based on the Company’s current evaluation of its AFS securities in an unrealized loss position in accordance with its impairment policy, and the Company’s current intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities, the Company has concluded that these securities are not other-than-temporarily impaired at June 30, 2013. Future OTTI will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), changes in credit ratings, changes in collateral valuation, changes in interest rates and changes in credit spreads. If economic fundamentals deteriorate or if there are adverse changes in the above factors, OTTI may be incurred in upcoming periods.

Gross unrealized losses on fixed maturity securities in an unrealized loss position increased $2.0 billion during the six months ended June 30, 2013 from $1.7 billion to $3.7 billion. The increase in gross unrealized losses for the six months ended June 30, 2013, was primarily attributable to an increase in interest rates and widening credit spreads.

At June 30, 2013, $266 million of the total $3.7 billion of gross unrealized losses were from 90 fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for six months or greater.

Investment Grade Fixed Maturity Securities

Of the $266 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $104 million, or 39%, are related to gross unrealized losses on 42 investment grade fixed maturity securities. Unrealized losses on investment grade fixed maturity securities are principally related to widening credit spreads and, with respect to fixed rate fixed maturity securities, rising interest rates since purchase.

Below Investment Grade Fixed Maturity Securities

Of the $266 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $162 million, or 61%, are related to gross unrealized losses on 48 below investment grade fixed maturity securities. Unrealized losses on below investment grade fixed maturity securities are principally related to non-agency RMBS (primarily alternative residential mortgage loans), ABS (primarily foreign ABS) and foreign government securities (primarily European sovereign bonds) and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainties including concerns over unemployment levels, sovereign debt levels and valuations of residential real estate supporting non-agency RMBS. Management evaluates foreign government securities based on factors such as expected cash flows and the financial condition and near-term and long-term prospects of the issuer; and evaluates non-agency RMBS and ABS based on actual and projected cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security.

Equity Securities

Equity securities in an unrealized loss position decreased $65 million during the six months ended June 30, 2013 from $159 million to $94 million. Of the $94 million, $50 million were from 10 equity securities with gross unrealized losses of 20% or more of cost for 12 months or greater, all of which were financial services industry investment grade non-redeemable preferred stock, of which 64% were rated A, AA, or AAA.

Fair Value Option and Trading Securities

See Note 8 for tables that present the categories of securities that comprise fair value option (“FVO”) and trading securities. See “— Net Investment Income” and “— Net Investment Gains (Losses)” for the net investment income recognized on FVO and trading securities and the related changes in estimated fair value subsequent to purchase included in net investment income and net investment gains (losses) for securities still held as of the end of the respective periods, as applicable.

Mortgage Loans

  Mortgage Loans Held-for-Investment and Held-for-Sale by Portfolio Segment

Mortgage loans are summarized as follows at:

	June 30, 2013					December 31, 2012
	Carrying   Value		% of   Total			Carrying   Value		% of   Total
	(In millions)					(In millions)
Mortgage loans held-for-investment:
Commercial	$	39,110		70.3	%	$	40,472		71.0	%
Agricultural		12,669		22.8			12,843		22.5
Residential		1,741		3.1			958		1.7
Subtotal (1)		53,520		96.2			54,273		95.2
Valuation allowances		(302)		(0.5)			(347)		(0.6)
Subtotal mortgage loans held-for-investment, net		53,218		95.7			53,926		94.6
Residential — FVO		150		0.2			—		—
Commercial mortgage loans held by CSEs		2,268		4.1			2,666		4.7
Total mortgage loans held-for-investment, net		55,636		100.0			56,592		99.3
Mortgage loans held for sale		—		—			414		0.7
Total mortgage loans, net	$	55,636		100.0	%	$	57,006		100.0	%

(1) Purchases of mortgage loans were $836 million and $886 million for the three months and six months ended June 30, 2013, respectively. There were no mortgage loan purchases for the three months and six months ended June 30, 2012.

See “— Variable Interest Entities” for discussion of consolidated securitization entities (“CSEs”).

  Mortgage Loans and Valuation Allowance by Portfolio Segment

The carrying value prior to valuation allowance (“recorded investment”) in mortgage loans held-for-investment, by portfolio segment, by method of evaluation of credit loss, and the related valuation allowances, by type of credit loss, were as follows:

	June 30, 2013								December 31, 2012
	Commercial		Agricultural		Residential		Total		Commercial		Agricultural		Residential		Total
	(In millions)
Mortgage loans:
Evaluated individually for credit losses	$	530	$	159	$	14	$	703	$	539	$	181	$	13	$	733
Evaluated collectively for credit losses		38,580		12,510		1,727		52,817		39,933		12,662		945		53,540
Total mortgage loans		39,110		12,669		1,741		53,520		40,472		12,843		958		54,273
Valuation allowances:
Specific credit losses		56		14		2		72		94		21		2		117
Non-specifically identified credit losses		186		35		9		230		199		31		—		230
Total valuation allowances		242		49		11		302		293		52		2		347
Mortgage loans, net of valuation allowance	$	38,868	$	12,620	$	1,730	$	53,218	$	40,179	$	12,791	$	956	$	53,926

  Valuation Allowance Rollforward by Portfolio Segment

The changes in the valuation allowance, by portfolio segment, were as follows:

	Three Months Ended June 30,
	2013								2012
	Commercial		Agricultural		Residential		Total		Commercial		Agricultural		Residential		Total
	(In millions)
Balance, beginning of period	$	275	$	54	$	3	$	332	$	368	$	75	$	3	$	446
Provision (release)		(33)		1		8		(24)		(68)		—		5		(63)
Charge-offs, net of recoveries		—		(6)		—		(6)		—		(16)		—		(16)
Transfers to held-for-sale (1)		—		—		—		—		—		—		(6)		(6)
Balance, end of period	$	242	$	49	$	11	$	302	$	300	$	59	$	2	$	361

	Six Months Ended June 30,
	2013								2012
	Commercial		Agricultural		Residential		Total		Commercial		Agricultural		Residential		Total
	(In millions)
Balance, beginning of period	$	293	$	52	$	2	$	347	$	398	$	81	$	2	$	481
Provision (release)		(51)		7		9		(35)		(98)		(6)		6		(98)
Charge-offs, net of recoveries		—		(10)		—		(10)		—		(16)		—		(16)
Transfers to held-for-sale (1)		—		—		—		—		—		—		(6)		(6)
Balance, end of period	$	242	$	49	$	11	$	302	$	300	$	59	$	2	$	361

(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 of the Notes to the Consolidated Financial Statements included in the 2012 Annual Report.

  Credit Quality of Commercial Mortgage Loans

Information about the credit quality of commercial mortgage loans held-for-investment is presented below at:

	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)
June 30, 2013:
Loan-to-value ratios:
Less than 65%	$	29,341	$	620	$	356	$	30,317		77.5	%	$	32,188		78.4	%
65% to 75%		5,689		541		219		6,449		16.5			6,642		16.2
76% to 80%		322		297		384		1,003		2.6			1,001		2.4
Greater than 80%		1,041		149		151		1,341		3.4			1,240		3.0
Total	$	36,393	$	1,607	$	1,110	$	39,110		100.0	%	$	41,071		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	%

  Credit Quality of Agricultural Mortgage Loans

Information about the credit quality of agricultural mortgage loans held-for-investment is presented below at:

	June 30, 2013					December 31, 2012
	Recorded Investment		% of Total			Recorded Investment		% of Total
	(In millions)					(In millions)
Loan-to-value ratios:
Less than 65%	$	11,631		91.8	%	$	11,908		92.7	%
65% to 75%		842		6.6			590		4.6
76% to 80%		73		0.6			92		0.7
Greater than 80%		123		1.0			253		2.0
Total	$	12,669		100.0	%	$	12,843		100.0	%

The estimated fair value of agricultural mortgage loans held-for-investment was $13.0 billion and $13.3 billion at June 30, 2013 and December 31, 2012, respectively.

  Credit Quality of Residential Mortgage Loans

Information about the credit quality of residential mortgage loans held-for-investment is presented below at:

	June 30, 2013					December 31, 2012
	Recorded Investment		% of Total			Recorded Investment		% of Total
	(In millions)					(In millions)
Performance indicators:
Performing	$	1,703		97.8	%	$	929		97.0	%
Nonperforming		38		2.2			29		3.0
Total	$	1,741		100.0	%	$	958		100.0	%

The estimated fair value of residential mortgage loans held-for-investment was $1.8 billion and $1.0 billion at June 30, 2013 and December 31, 2012, respectively.

  Past Due and Interest Accrual Status of Mortgage Loans

The Company has a high quality, well performing, mortgage loan portfolio, with 99% of all mortgage loans classified as performing at both June 30, 2013 and December 31, 2012. The Company defines delinquency consistent with industry practice, when the mortgage loan is past due as follows: commercial and residential mortgage loans — 60 days; and agricultural mortgage loans — 90 days. The recorded investment in mortgage loans held-for-investment, prior to valuation allowances, past due according to these aging categories, greater than 90 days past due and still accruing interest and in nonaccrual status, by portfolio segment, were as follows at:

	Past Due				Greater than 90 Days Past Due and Still Accruing Interest				Nonaccrual Status
	June 30, 2013		December 31, 2012		June 30, 2013		December 31, 2012		June 30, 2013		December 31, 2012
	(In millions)
Commercial	$	—	$	2	$	—	$	—	$	204	$	84
Agricultural		103		116		52		53		67		67
Residential		38		29		1		—		17		18
Total	$	141	$	147	$	53	$	53	$	288	$	169

  Impaired Mortgage Loans

Information regarding impaired mortgage loans held-for-investment, including those modified in a troubled debt restructuring, by portfolio segment, were as follows at:

	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)
June 30, 2013:
Commercial	$	241	$	228	$	56	$	172	$	314	$	302	$	555	$	474
Agricultural		87		84		14		70		81		75		168		145
Residential		13		13		2		11		1		1		14		12
Total	$	341	$	325	$	72	$	253	$	396	$	378	$	737	$	631
December 31, 2012:
Commercial	$	445	$	436	$	94	$	342	$	103	$	103	$	548	$	445
Agricultural		110		107		21		86		79		74		189		160
Residential		13		13		2		11		—		—		13		11
Total	$	568	$	556	$	117	$	439	$	182	$	177	$	750	$	616

Unpaid principal balance is generally prior to any charge-offs.

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

	Impaired Mortgage Loans
	Three Months Ended June 30,								Six Months Ended June 30,
	2013				2012				2013				2012
	Average Recorded   Investment		Interest   Income		Average Recorded   Investment		Interest   Income		Average Recorded   Investment		Interest   Income		Average Recorded   Investment		Interest   Income
	(In millions)
Commercial	$	531	$	4	$	258	$	—	$	534	$	7	$	283	$	3
Agricultural		158		2		214		2		165		3		219		3
Residential		14		—		12		—		14		—		13		—
Total	$	703	$	6	$	484	$	2	$	713	$	10	$	515	$	6

  Mortgage Loans Modified in a Troubled Debt Restructuring 

There was one agricultural mortgage loan and there were six residential mortgage loans modified in a troubled debt restructuring with pre-modification and post-modification carrying values of $4 million and $1 million, respectively, during both the three months and six months ended June 30, 2013. There were no mortgage loans modified in a troubled debt restructuring during the three months and six months ended June 30, 2012.

During the three months and six months ended June 30, 2013 and 2012, the Company had no mortgage loans with subsequent payment defaults that were modified in a troubled debt restructuring during the previous 12 months. Payment default is determined in the same manner as delinquency status as described above.

Cash Equivalents

The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $5.5 billion and $6.1 billion at June 30, 2013 and December 31, 2012, respectively.

Net Unrealized Investment Gains (Losses)

The components of net unrealized investment gains (losses), included in AOCI, were as follows at:

	June 30, 2013		December 31, 2012
	(In millions)
Fixed maturity securities	$	21,116	$	33,641
Fixed maturity securities with noncredit OTTI losses in AOCI		(277)		(361)
Total fixed maturity securities		20,839		33,280
Equity securities		317		97
Derivatives		1,135		1,274
Other		(20)		(30)
Subtotal		22,271		34,621
Amounts allocated from:
Insurance liability loss recognition		(2,212)		(6,049	)
DAC and VOBA related to noncredit OTTI losses recognized in AOCI		11		19
DAC and VOBA		(1,608)		(2,485)
Policyholder dividend obligation		(2,273)		(3,828)
Subtotal		(6,082)		(12,343)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI		92		119
Deferred income tax benefit (expense)		(5,820)		(7,973)
Net unrealized investment gains (losses)		10,461		14,424
Net unrealized investment gains (losses) attributable to noncontrolling interests		(18)		(5)
Net unrealized investment gains (losses) attributable to MetLife, Inc.	$	10,443	$	14,419

The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows:

	Six Months Ended     June 30, 2013		Year Ended      December 31, 2012
	(In millions)
Balance, beginning of period	$	(361)	$	(724)
Noncredit OTTI losses and subsequent changes recognized (1)		35		(29)
Securities sold with previous noncredit OTTI loss		96		177
Subsequent changes in estimated fair value		(47)		215
Balance, end of period	$	(277)	$	(361)

(1) Noncredit OTTI losses and subsequent changes recognized, net of DAC, were $30 million and ($21) million for the six months ended June 30, 2013 and year ended December 31, 2012, respectively.

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

	Six Months Ended     June 30, 2013
	(In millions)
Balance, beginning of period	$	14,419
Fixed maturity securities on which noncredit OTTI losses have been recognized		84
Unrealized investment gains (losses) during the period		(12,434)
Unrealized investment gains (losses) relating to:
Insurance liability gain (loss) recognition		3,837
DAC and VOBA related to noncredit OTTI losses recognized in AOCI		(8)
DAC and VOBA		877
Policyholder dividend obligation		1,555
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI		(27)
Deferred income tax benefit (expense)		2,153
Net unrealized investment gains (losses)		10,456
Net unrealized investment gains (losses) attributable to noncontrolling interests		(13)
Balance, end of period	$	10,443
Change in net unrealized investment gains (losses)	$	(3,963)
Change in net unrealized investment gains (losses) attributable to noncontrolling interests		(13)
Change in net unrealized investment gains (losses) attributable to MetLife, Inc.	$	(3,976)

Concentrations of Credit Risk

Investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, were in fixed income securities of the Japanese government and its agencies with an estimated fair value of $20.1 billion and $22.4 billion at June 30, 2013 and December 31, 2012, respectively. The Company’s investment in fixed maturity and equity securities to counterparties that primarily conduct business in Japan, including Japan government and agency fixed maturity securities, was $25.2 billion and $28.7 billion at June 30, 2013 and December 31, 2012, respectively.

Securities Lending

The Company participates in a securities lending program. Elements of the securities lending program are presented below at:

	June 30, 2013		December 31, 2012
	(In millions)
Securities on loan: (1)
Amortized cost	$	28,058	$	23,380
Estimated fair value	$	29,574	$	27,077
Cash collateral on deposit from counterparties (2)	$	30,081	$	27,727
Security collateral on deposit from counterparties (3)	$	—	$	104
Reinvestment portfolio — estimated fair value	$	30,389	$	28,112

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

(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

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

	June 30, 2013		December 31, 2012
	(In millions)
Invested assets on deposit (regulatory deposits)	$	2,457	$	2,362
Invested assets held in trust (collateral financing arrangements and reinsurance agreements)		11,153		12,434
Invested assets pledged as collateral (1)		22,834		23,251
Total invested assets on deposit, held in trust and pledged as collateral	$	36,444	$	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 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).

Variable Interest Entities

The Company has invested in certain structured transactions (including CSEs), formed trusts to invest proceeds from certain collateral financing arrangements and has insurance operations, that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity.

The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. The Company generally uses a qualitative approach to determine whether it is the primary beneficiary. However, for VIEs that are investment companies or apply measurement principles consistent with those utilized by investment companies, the primary beneficiary is based on a risks and rewards model and is defined as the entity that will absorb a majority of a VIE’s expected losses, receive a majority of a VIE’s expected residual returns if no single entity absorbs a majority of expected losses, or both. The Company reassesses its involvement with VIEs on a quarterly basis. The use of different methodologies, assumptions and inputs in the determination of the primary beneficiary could have a material effect on the amounts presented within the consolidated financial statements.

  Consolidated VIEs

The following table presents the total assets and total liabilities relating to VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at June 30, 2013 and December 31, 2012. Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment.

	June 30, 2013				December 31, 2012
	Total     Assets		Total     Liabilities		Total     Assets		Total     Liabilities
	(In millions)
MRSC (collateral financing arrangement (primarily securities)) (1)	$	3,505	$	—	$	3,439	$	—
CSEs (assets (primarily loans) and liabilities (primarily debt)) (2)		2,309		2,135		2,730		2,545
Operating joint venture (3)		2,182		1,804		—		—
Investments:
Other limited partnership interests		180		11		356		8
FVO and trading securities		65		—		71		—
Other invested assets		82		—		85		—
Real estate joint ventures		10		15		11		14
Total	$	8,333	$	3,965	$	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 $157 million and $168 million at estimated fair value at June 30, 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 $34 million and $67 million for the three months and six months ended June 30, 2013, respectively, and $42 million and $85 million for the three months and six months ended June 30, 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.

  Unconsolidated VIEs

The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at:

	June 30, 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)	$	69,359	$	69,359	$	72,605	$	72,605
U.S. and foreign corporate		4,759		4,759		5,287		5,287
Other limited partnership interests		4,798		6,369		4,436		5,908
Other invested assets		1,290		1,519		1,117		1,431
FVO and trading securities		629		629		563		563
Mortgage loans		185		185		351		351
Real estate joint ventures		115		121		150		157
Equity securities AFS:
Non-redeemable preferred stock		32		32		32		32
Total	$	81,167	$	82,973	$	84,541	$	86,334

(1) The maximum exposure to loss relating to fixed maturity securities AFS, FVO and trading securities and equity securities AFS 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 $302 million and $318 million at June 30, 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.

As described in Note 14, the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs during the six months ended June 30, 2013 and 2012.

Net Investment Income

The components of net investment income were as follows:

	Three Months      Ended     June 30,					Six Months     Ended June 30,
	2013		2012			2013		2012
	(In millions)
Investment income:
Fixed maturity securities	$	3,709	$	3,737		$	7,535	$	7,545
Equity securities		36		38			60		70
FVO and trading securities — Actively Traded Securities and FVO general account securities (1)		(11)		(1)			10		44
Mortgage loans		716		764			1,454		1,594
Policy loans		152		156			307		314
Real estate and real estate joint ventures		243		280			436		457
Other limited partnership interests		275		266			521		448
Cash, cash equivalents and short-term investments		45		39			94		75
International joint ventures		5		1			(9)		4
Other		49		80			112		121
Subtotal		5,219		5,360			10,520		10,672
Less: Investment expenses		287		258			587		517
Subtotal, net		4,932		5,102			9,933		10,155
FVO and trading securities — FVO contractholder-directed unit-linked investments (1)		314		(517	)		1,353		498
Securitized reverse residential mortgage loans		—		89			—		174
FVO CSEs — interest income:
Commercial mortgage loans		34		44			71		89
Securities		2		1			2		3
Subtotal		350		(383	)		1,426		764
Net investment income	$	5,282	$	4,719		$	11,359	$	10,919

(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 June 30,					Six Months     Ended June 30,
	2013		2012			2013		2012
	(In millions)
Actively Traded Securities and FVO general account securities	$	(24)	$	(5)		$	(14)	$	24
FVO contractholder-directed unit-linked investments	$	123	$	(378	)	$	1,078	$	499

See “— Variable Interest Entities” for discussion of CSEs.

Net Investment Gains (Losses)

  Components of Net Investment Gains (Losses)

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

	Three Months     Ended June 30,				Six Months     Ended June 30,
	2013		2012		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:
Utility	$	(27)	$	(13)	$	(32)	$	(51)
Finance		—		—		(10)		(32)
Consumer		—		(9)		(8)		(12)
Communications		(2)		(1)		(2)		(18)
Industrial		—		—		—		(1)
Other industries		—		(6)		—		(6)
Total U.S. and foreign corporate securities		(29)		(29)		(52)		(120)
RMBS		(10)		(37)		(47)		(46)
CMBS		—		(20)		—		(50)
ABS		—		(5)		—		(7)
State and political subdivision		—		—		—		(1)
OTTI losses on fixed maturity securities recognized in earnings		(39)		(91)		(99)		(224)
Fixed maturity securities — net gains (losses) on sales and disposals		179		73		548		66
Total gains (losses) on fixed maturity securities (1)		140		(18)		449		(158)
Total gains (losses) on equity securities:
Total OTTI losses recognized — by sector:
Non-redeemable preferred stock		—		—		(20)		—
Common stock		(1)		(2)		(2)		(17)
OTTI losses on equity securities recognized in earnings		(1)		(2)		(22)		(17)
Equity securities — net gains (losses) on sales and disposals		5		21		(1)		27
Total gains (losses) on equity securities		4		19		(23)		10
FVO and trading securities — FVO general account securities —changes in estimated fair value		4		(1)		8		3
Mortgage loans (1)		23		13		35		49
Real estate and real estate joint ventures		(9)		(16)		(23)		(20)
Other limited partnership interests		(41)		(9)		(41)		(11)
Other investment portfolio gains (losses)		27		(10)		34		(35)
Subtotal — investment portfolio gains (losses) (1)		148		(22)		439		(162)
FVO CSEs — changes in estimated fair value subsequent to consolidation:
Commercial mortgage loans		(19)		(7)		(32)		(1)
Long-term debt — related to commercial mortgage loans		26		10		48		10
Long-term debt — related to securities		1		1		—		(10)
Non-investment portfolio gains (losses) (2)		(46)		(46)		(31)		(11)
Subtotal FVO CSEs and non-investment portfolio gains (losses)		(38)		(42)		(15)		(12)
Total net investment gains (losses)	$	110	$	(64)	$	424	$	(174)

(1) For the three months and six months ended June 30, 2012, net investment gains (losses) includes a net gain (loss) of ($35) million and $60 million, respectively, as a result of the MetLife Bank Divestiture, which is comprised of gains (losses) on investments sold of ($27) million and $75 million, respectively, and impairments on mortgage loans of ($8) million and ($15) million, respectively. See Note 3.

(2) For the three months ended June 30, 2013, there were no non-investment portfolio gains (losses) related to the MetLife Bank Divestiture. For the six months ended June 30, 2013, there were $30 million in non-investment portfolio gains (losses), related to the MetLife Bank Divestiture. See Note 3.

See “— Variable Interest Entities” for discussion of CSEs.

Gains (losses) from foreign currency transactions included within net investment gains (losses) were $17 million and $75 million for the three months and six months ended June 30, 2013, respectively, and $25 million and $83 million for the three months and six months ended June 30, 2012, respectively.

Sales or Disposals and Impairments of Fixed Maturity and Equity Securities

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

	Three Months Ended June 30,
	2013		2012			2013		2012		2013		2012
	Fixed Maturity Securities					Equity Securities				Total
	(In millions)
Proceeds	$	22,072	$	15,625		$	269	$	238	$	22,341	$	15,863
Gross investment gains	$	323	$	225		$	10	$	23	$	333	$	248
Gross investment losses		(144)		(152)			(5)		(2)		(149)		(154)
Total OTTI losses recognized in earnings:
Credit-related		(39)		(68)			—		—		(39)		(68)
Other (1)		—		(23)			(1)		(2)		(1)		(25)
Total OTTI losses recognized in earnings		(39)		(91)			(1)		(2)		(40)		(93)
Net investment gains (losses)	$	140	$	(18	)	$	4	$	19	$	144	$	1

	Six Months Ended June 30,
	2013		2012		2013		2012		2013		2012
	Fixed Maturity Securities				Equity Securities				Total
	(In millions)
Proceeds	$	41,622	$	35,019	$	355	$	363	$	41,977	$	35,382
Gross investment gains	$	823	$	550	$	18	$	33	$	841	$	583
Gross investment losses		(275)		(484)		(19)		(6)		(294)		(490)
Total OTTI losses recognized in earnings:
Credit-related		(81)		(141)		—		—		(81)		(141)
Other (1)		(18)		(83)		(22)		(17)		(40)		(100)
Total OTTI losses recognized in earnings		(99)		(224)		(22)		(17)		(121)		(241)
Net investment gains (losses)	$	449	$	(158)	$	(23)	$	10	$	426	$	(148)

(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.

  Credit Loss Rollforward

The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still held for which a portion of the OTTI loss was recognized in other comprehensive income (loss) (“OCI”):

	Three Months     Ended June 30,				Six Months     Ended June 30,
	2013		2012		2013		2012
	(In millions)
Balance, beginning of period	$	398	$	381	$	392	$	471
Additions:
Initial impairments — credit loss OTTI recognized on securities not previously impaired		1		21		2		37
Additional impairments — credit loss OTTI recognized on securities previously impaired		6		20		41		26
Reductions:
Sales (maturities, pay downs or prepayments) during the period of securities previously impaired as credit loss OTTI		(24)		(15)		(54)		(119)
Securities impaired to net present value of expected future cash flows		—		(15)		—		(23)
Increases in cash flows — accretion of previous credit loss OTTI		—		(1)		—		(1)
Balance, end of period	$	381	$	391	$	381	$	391