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Equity
6 Months Ended
Jun. 30, 2011
Equity Abstract  
Equity

6.  Equity

 

During the six months ended June 30, 2011, Sino-US MetLife Insurance Company Limited ("Sino"), an insurance underwriting joint venture of the Company accounted for under the equity method, merged with United MetLife Insurance Company Limited ("United"), another insurance underwriting joint venture of an affiliate of the Company. The Company's ownership interest in the merged entity, Sino-US United MetLife Insurance Company Limited ("Sino-United") was determined based on its contributed capital and share of undistributed earnings of Sino compared to the contributed capital and undistributed earnings of all other investees of Sino and United. Since both the joint ventures were under common ownership both prior to and subsequent to the merger, the Company's investment in Sino-United is based on the carrying value of its investment in Sino. Pursuant to the merger, the Company entered into an agreement to pay the affiliate an amount based on the relative fair value of their respective investment in Sino-United. Accordingly, $52 million was recorded as a liability representing a return of capital at June 30, 2011. Such amount, subject to completion of the estimation of fair value, is expected to be paid in the third quarter of 2011. The Company's investment in Sino-United is accounted for under equity method and is included in other invested assets.