The Company's business is currently divided into three segments: Retirement Products, Corporate Benefit Funding and Insurance Products. In addition, the Company reports certain of its results of operations in Corporate & Other.

Retirement Products offers asset accumulation and income products, including a wide variety of annuities. Corporate Benefit Funding offers pension risk solutions, structured settlements, stable value and investment products and other benefit funding products. Insurance Products offers a broad range of protection products and services to individuals and corporations, as well as other institutions and their respective employees, and is organized into two distinct businesses: Individual Life and Non-Medical Health. Individual Life insurance products and services include variable life, universal life, term life and whole life products. Non-Medical Health includes individual disability insurance products.

Corporate & Other contains the excess capital not allocated to the segments, various domestic and international start-up entities and run-off business, the Company's ancillary international operations, interest expense related to the majority of the Company's outstanding debt and expenses associated with certain legal proceedings and income tax audit issues. Corporate & Other also includes the elimination of intersegment amounts.

Operating earnings is the measure of segment profit or loss the Company uses to evaluate segment performance and allocate resources and, consistent with GAAP accounting guidance for segment reporting, it is the Company's measure of segment performance and is reported below. Operating earnings should not be viewed as a substitute for GAAP net income (loss). The Company believes the presentation of operating earnings as the Company measures it for management purposes enhances the understanding of its performance by highlighting the results from operations and the underlying profitability drivers of the business.

Operating earnings is defined as operating revenues less operating expenses, both net of income tax.

Operating revenues exclude net investment gains (losses) and net derivative gains (losses). The following additional adjustments are made to GAAP revenues, in the line items indicated, in calculating operating revenues:

• Universal life and investment-type product policy fees exclude the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity GMIB fees (“GMIB Fees”); and

• Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments but do not qualify for hedge accounting treatment, (ii) excludes certain amounts related to contractholder-directed unit-linked investments and (iii) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP.

The following adjustments are made to GAAP expenses, in the line items indicated, in calculating operating expenses:

• Policyholder benefits and claims exclude: (i) amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets, (ii) benefits and hedging costs related to GMIBs (“GMIB Costs”), and (iii) market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”);

• Interest credited to policyholder account balances includes adjustments for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment and amounts related to net investment income earned on contractholder-directed unit-linked investments;

• Amortization of DAC and value of business acquired (“VOBA”) excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB Fees and GMIB Costs, and (iii) Market Value Adjustments;

• Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and

In the first quarter of 2011, management modified its definition of operating earnings to exclude impacts related to certain variable annuity guarantees and Market Value Adjustments to better conform to the way it manages and assesses its business. Accordingly, such results are no longer reported in operating earnings. Consequently, prior period results for Retirement Products and total consolidated operating earnings have been increased by $3 million, net of $1 million of income tax and reduced by $3 million, net of $2 million of income tax, for the three months and six months ended June 30, 2010, respectively.

Set forth in the tables below is certain financial information with respect to the Company's segments, as well as Corporate & Other for the three months and six months ended June 30, 2011 and 2010. The accounting policies of the segments are the same as those of the Company, except for the method of capital allocation and the accounting for gains (losses) from intercompany sales, which are eliminated in consolidation.

Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. The economic capital model accounts for the unique and specific nature of the risks inherent in MetLife's business.

Effective January 1, 2011, MetLife updated its economic capital model to align segment allocated equity with emerging standards and consistent risk principles. Such changes to MetLife's economic capital model are applied prospectively. Segment net investment income is also credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company's consolidated net investment income, operating earnings or net income.


		Operating Earnings
				Corporate
		Retirement		Benefit		Insurance		Corporate						Total
Three Months Ended June 30, 2011		Products		Funding		Products		& Other		Total		Adjustments		Consolidated

		(In millions)

Revenues
Premiums		$	99	$	475	$	67	$	0	$	641	$	0	$	641
Universal life and investment-type
	product policy fees		290		6		163		13		472		21		493
Net investment income			208		299		149		44		700		96		796
Other revenues			87		2		42		0		131		0		131
Net investment gains (losses)			0		0		0		0		0		(27)		(27)
Net derivative gains (losses)			0		0		0		0		0		133		133
	Total revenues		684		782		421		57		1,944		223		2,167
Expenses
Policyholder benefits and claims			133		595		67		0		795		23		818
Interest credited to policyholder account balances			181		45		63		0		289		15		304
Capitalization of DAC			(258)		(1)		(108)		(17)		(384)		0		(384)
Amortization of DAC and VOBA			134		1		69		1		205		122		327
Interest expense on debt			0		0		0		16		16		94		110
Other expenses			388		7		234		36		665		11		676
	Total expenses		578		647		325		36		1,586		265		1,851
Provision for income tax expense (benefit)			37		47		33		(5)		112		(12)		100
Operating earnings		$	69	$	88	$	63	$	26		246

Adjustments to:
	Total revenues										223
	Total expenses										(265)
	Provision for income tax (expense) benefit										12
Net income										$	216			$	216

		Operating Earnings
				Corporate
		Retirement		Benefit		Insurance		Corporate						Total
Three Months Ended June 30, 2010		Products		Funding		Products		& Other		Total		Adjustments		Consolidated

		(In millions)

Revenues
Premiums		$	90	$	126	$	38	$	2	$	256	$	0	$	256
Universal life and investment-type
	product policy fees		236		7		136		2		381		26		407
Net investment income			237		279		118		0		634		91		725
Other revenues			79		1		23		0		103		0		103
Net investment gains (losses)			0		0		0		0		0		50		50
Net derivative gains (losses)			0		0		0		0		0		563		563
	Total revenues		642		413		315		4		1,374		730		2,104
Expenses
Policyholder benefits and claims			123		256		89		(1)		467		37		504
Interest credited to policyholder account balances			182		48		59		(21)		268		(11)		257
Capitalization of DAC			(146)		(1)		(107)		(14)		(268)		0		(268)
Amortization of DAC and VOBA			157		1		68		1		227		233		460
Interest expense on debt			0		0		0		18		18		101		119
Other expenses			260		8		226		34		528		0		528
	Total expenses		576		312		335		17		1,240		360		1,600
Provision for income tax expense (benefit)			23		34		(6)		(20)		31		131		162
Operating earnings		$	43	$	67	$	(14)	$	7		103

Adjustments to:
	Total revenues										730
	Total expenses										(360)
	Provision for income tax (expense) benefit										(131)
Net income										$	342			$	342

		Operating Earnings
				Corporate
		Retirement		Benefit		Insurance		Corporate						Total
Six Months Ended June 30, 2011		Products		Funding		Products		& Other		Total		Adjustments		Consolidated

		(In millions)

Revenues
Premiums		$	129	$	537	$	111	$	0	$	777	$	0	$	777
Universal life and investment-type
	product policy fees		563		17		307		20		907		41		948
Net investment income			414		597		305		92		1,408		176		1,584
Other revenues			184		3		74		0		261		0		261
Net investment gains (losses)			0		0		0		0		0		(41)		(41)
Net derivative gains (losses)			0		0		0		0		0		(23)		(23)
	Total revenues		1,290		1,154		797		112		3,353		153		3,506
Expenses
Policyholder benefits and claims			196		783		136		0		1,115		30		1,145
Interest credited to policyholder account balances			361		95		123		0		579		12		591
Capitalization of DAC			(449)		(6)		(209)		(30)		(694)		0		(694)
Amortization of DAC and VOBA			244		2		140		3		389		55		444
Interest expense on debt			0		0		0		33		33		187		220
Other expenses			696		23		467		66		1,252		11		1,263
	Total expenses		1,048		897		657		72		2,674		295		2,969
Provision for income tax expense (benefit)			84		90		49		(16)		207		(46)		161
Operating earnings		$	158	$	167	$	91	$	56		472

Adjustments to:
	Total revenues										153
	Total expenses										(295)
	Provision for income tax (expense) benefit										46
Net income										$	376			$	376

		Operating Earnings
				Corporate
		Retirement		Benefit		Insurance		Corporate						Total
Six Months Ended June 30, 2010		Products		Funding		Products		& Other		Total		Adjustments		Consolidated

		(In millions)

Revenues
Premiums		$	148	$	497	$	66	$	0	$	711	$	0	$	711
Universal life and investment-type
	product policy fees		444		15		266		7		732		44		776
Net investment income			466		548		232		83		1,329		186		1,515
Other revenues			155		2		56		0		213		0		213
Net investment gains (losses)			0		0		0		0		0		87		87
Net derivative gains (losses)			0		0		0		0		0		255		255
	Total revenues		1,213		1,062		620		90		2,985		572		3,557
Expenses
Policyholder benefits and claims			209		755		173		0		1,137		61		1,198
Interest credited to policyholder account balances			364		93		117		24		598		(25)		573
Capitalization of DAC			(266)		(2)		(205)		(25)		(498)		0		(498)
Amortization of DAC and VOBA			249		1		139		2		391		133		524
Interest expense on debt			0		0		0		35		35		204		239
Other expenses			479		17		434		63		993		0		993
	Total expenses		1,035		864		658		99		2,656		373		3,029
Provision for income tax expense (benefit)			62		68		(13)		(34)		83		71		154
Operating earnings		$	116	$	130	$	(25)	$	25		246

Adjustments to:
	Total revenues										572
	Total expenses										(373)
	Provision for income tax (expense) benefit										(71)
Net income										$	374			$	374

The following table presents total assets with respect to the Company's segments, as well as Corporate & Other, at:

Net investment income is based upon the actual results of each segment's specifically identifiable asset portfolio adjusted for allocated equity. Other costs are allocated to each of the segments based upon: (i) a review of the nature of such costs; (ii) time studies analyzing the amount of employee compensation costs incurred by each segment; and (iii) cost estimates included in the Company's product pricing.