The Company has entered into various agreements with affiliates for services necessary to conduct its activities. Typical services provided under these agreements include management, policy administrative functions, personnel, investment advice and distribution services. For certain agreements, charges are based on various performance measures or activity-based costing. The bases for such charges are modified and adjusted by management when necessary or appropriate to reflect fairly and equitably the actual incidence of cost incurred by the Company and/or affiliate. Expenses and fees incurred with affiliates related to these agreements, recorded in other expenses, were $457 million and $834 million for the three months and six months ended June 30, 2011, respectively, and $340 million and $638 million for the three months and six months ended June 30, 2010, respectively. The aforementioned expenses and fees incurred with affiliates were comprised of the following:

		Three Months				Six Months
		Ended				Ended
		June 30,				June 30,
		2011		2010		2011		2010

		(In millions)

Compensation		$	64	$	38	$	127	$	74
Commissions			241		134		426		257
Volume-related costs			61		88		109		155
Professional services			5		0		9		0
Rent			6		0		12		0
Other			80		80		151		152
	Total other expenses	$	457	$	340	$	834	$	638

Revenues received from affiliates related to these agreements were recorded as follows:

The Company had net receivables from affiliates of $40 million and $60 million at June 30, 2011 and December 31, 2010, respectively, related to the items discussed above. These amounts exclude affiliated reinsurance balances discussed below. See Note 2 for expenses related to investment advice under these agreements, recorded in net investment income.

The Company has reinsurance agreements with certain MetLife subsidiaries, including Metropolitan Life Insurance Company, MetLife Reinsurance Company of South Carolina, Exeter Reassurance Company, Ltd., General American Life Insurance Company, MetLife Investors Insurance Company and MetLife Reinsurance Company of Vermont, all of which are related parties.

Information regarding the effect of affiliated reinsurance included in the interim condensed consolidated statements of operations was as follows:

		Three Months				Six Months
		Ended				Ended
		June 30,				June 30,
		2011		2010		2011		2010

		(In millions)

Premiums:
Reinsurance assumed		$	6	$	3	$	4	$	7
Reinsurance ceded			(55)		(52)		(109)		(111)
	Net premiums	$	(49)	$	(49)	$	(105)	$	(104)

Universal life and investment-type product policy fees:
Reinsurance assumed		$	23	$	19	$	43	$	30
Reinsurance ceded			(97)		(72)		(188)		(133)
	Net universal life and investment-type product policy fees	$	(74)	$	(53)	$	(145)	$	(103)

Other revenues:
Reinsurance assumed		$	0	$	0	$	0	$	0
Reinsurance ceded			78		65		158		139
	Net other revenues	$	78	$	65	$	158	$	139

Policyholder benefits and claims:
Reinsurance assumed		$	9	$	5	$	12	$	6
Reinsurance ceded			(113)		(89)		(228)		(173)
	Net policyholder benefits and claims	$	(104)	$	(84)	$	(216)	$	(167)

Interest credited to policyholder account balances:
Reinsurance assumed		$	17	$	16	$	33	$	31
Reinsurance ceded			(19)		(12)		(37)		(24)
	Net interest credited to policyholder account balances	$	(2)	$	4	$	(4)	$	7

Other expenses:
Reinsurance assumed		$	13	$	13	$	28	$	25
Reinsurance ceded			37		36		82		60
	Net other expenses	$	50	$	49	$	110	$	85

Information regarding the effect of affiliated reinsurance included in the interim condensed consolidated balance sheets was as follows at:

		June 30, 2011				December 31, 2010
		Assumed		Ceded		Assumed		Ceded

		(In millions)

Assets:
Premiums, reinsurance and other receivables		$	72	$	9,610	$	40	$	9,826
Deferred policy acquisition costs and value of business acquired			150		(492)		164		(484)
	Total assets	$	222	$	9,118	$	204	$	9,342

Liabilities:
Future policy benefits		$	44	$	0	$	41	$	0
Other policy-related balances			1,470		570		1,435		508
Other liabilities			29		3,007		12		3,200
	Total liabilities	$	1,543	$	3,577	$	1,488	$	3,708

The Company ceded risks to affiliates related to guaranteed minimum benefit guarantees written directly by the Company through December 31, 2010. These ceded reinsurance agreements contain embedded derivatives and changes in their fair value are also included within net derivative gains (losses). The embedded derivatives associated with the cessions are included within premiums, reinsurance and other receivables and were assets of $824 million and $936 million at June 30, 2011 and December 31, 2010, respectively. Net derivative gains (losses) associated with the embedded derivatives were $195 million and ($248) million for the three months and six months ended June 30, 2011, respectively, and $1,413 million and $1,047 million for the three months and six months ended June 30, 2010, respectively.

MLI-USA cedes two blocks of business to an affiliate on a 90% coinsurance with funds withheld basis. Certain contractual features of this agreement qualify as embedded derivatives, which are separately accounted for at estimated fair value on the Company's consolidated balance sheet. The embedded derivative related to the funds withheld associated with this reinsurance agreement is included within other liabilities and increased the funds withheld balance by $30 million and $5 million at June 30, 2011 and December 31, 2010, respectively. Net derivative gains (losses) associated with the embedded derivatives were ($50) million and ($25) million for the three months and six months ended June 30, 2011, respectively, and ($81) million and ($90) million for the three months and six months ended June 30, 2010, respectively. The reinsurance agreement also includes an experience refund provision, whereby some or all of the profits on the underlying reinsurance agreement are returned to MLI-USA from the affiliated reinsurer during the first several years of the reinsurance agreement. The experience refund reduced the funds withheld by MLI-USA from the affiliated reinsurer by $49 million and $98 million for the three months and six months ended June 30, 2011, respectively, and $64 million and $117 million for the three months and six months ended June 30, 2010, respectively, and are considered unearned revenue, amortized over the life of the contract using the same assumptions as used for the DAC associated with the underlying policies. Amortization and interest of the unearned revenue associated with the experience refund was $21 million and $37 million for the three months and six months ended June 30, 2011, respectively, and $22 million and $45 million for the three months and six months ended June 30, 2010, respectively, and is included in premiums and universal life and investment-type product policy fees in the consolidated statements of operations. At June 30, 2011 and December 31, 2010, unearned revenue related to the experience refund was $621 million and $560 million, respectively, and is included in other policy-related balances in the interim condensed consolidated balance sheets.