(Mark One) | ||
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2011 | ||
OR
|
||
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
FOR THE TRANSITION PERIOD FROM TO |
Delaware
(State or other jurisdiction of incorporation or organization) |
13-4075851 (I.R.S. Employer Identification No.) |
|
200 Park Avenue, New York, N.Y.
(Address of principal executive offices) |
10166-0188 (Zip Code) |
Large accelerated filer
þ
|
Accelerated filer o | |
Non-accelerated filer
o (Do
not check if a smaller reporting company)
|
Smaller reporting company o |
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E-1 | ||||||||
EX-10.2 | ||||||||
EX-10.3 | ||||||||
EX-10.4 | ||||||||
EX-31.1 | ||||||||
EX-31.2 | ||||||||
EX-32.1 | ||||||||
EX-32.2 | ||||||||
EX-101 INSTANCE DOCUMENT | ||||||||
EX-101 SCHEMA DOCUMENT | ||||||||
EX-101 CALCULATION LINKBASE DOCUMENT | ||||||||
EX-101 LABELS LINKBASE DOCUMENT | ||||||||
EX-101 PRESENTATION LINKBASE DOCUMENT | ||||||||
EX-101 DEFINITION LINKBASE DOCUMENT |
2
3
| should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate; | |
| have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement; | |
| may apply standards of materiality in a way that is different from what may be viewed as material to investors; and | |
| were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments. |
4
Item 1. | Financial Statements |
September 30, 2011 | December 31, 2010 | |||||||
Assets
|
||||||||
Investments:
|
||||||||
Fixed maturity securities
available-for-sale,
at estimated fair value (amortized cost: $334,009 and $317,617,
respectively; includes $3,265 and $3,330, respectively, relating
to variable interest entities)
|
$ | 353,927 | $ | 324,797 | ||||
Equity securities
available-for-sale,
at estimated fair value (cost: $3,227 and $3,621, respectively)
|
3,118 | 3,602 | ||||||
Trading and other securities, at estimated fair value (includes
$415 and $463, respectively, of actively traded securities; and
$321 and $387, respectively, relating to variable interest
entities)
|
18,698 | 18,589 | ||||||
Mortgage loans:
|
||||||||
Held-for-investment,
principally at amortized cost (net of valuation allowances of
$529 and $664, respectively; includes $3,277 and $6,840,
respectively, at estimated fair value, relating to variable
interest entities)
|
59,209 | 58,976 | ||||||
Held-for-sale,
principally at estimated fair value
|
3,740 | 3,321 | ||||||
Mortgage loans, net
|
62,949 | 62,297 | ||||||
Policy loans
|
11,932 | 11,761 | ||||||
Real estate and real estate joint ventures (includes $12 and
$10, respectively, relating to variable interest entities)
|
8,197 | 8,030 | ||||||
Other limited partnership interests (includes $319 and $298,
respectively, relating to variable interest entities)
|
6,538 | 6,416 | ||||||
Short-term investments, principally at estimated fair value
|
15,913 | 9,384 | ||||||
Other invested assets, principally at estimated fair value
(includes $98 and $104, respectively, relating to variable
interest entities)
|
23,138 | 15,430 | ||||||
Total investments
|
504,410 | 460,306 | ||||||
Cash and cash equivalents, principally at estimated fair value
(includes $37 and $69, respectively, relating to variable
interest entities)
|
10,001 | 12,957 | ||||||
Accrued investment income (includes $17 and $34, respectively,
relating to variable interest entities)
|
4,793 | 4,328 | ||||||
Premiums, reinsurance and other receivables (includes $2 and $2,
respectively, relating to variable interest entities)
|
23,137 | 19,799 | ||||||
Deferred policy acquisition costs and value of business acquired
|
27,623 | 27,092 | ||||||
Goodwill
|
12,006 | 11,781 | ||||||
Other assets (includes $5 and $6, respectively, relating to
variable interest entities)
|
8,340 | 8,174 | ||||||
Assets of subsidiaries
held-for-sale
|
3,421 | 3,331 | ||||||
Separate account assets
|
191,499 | 183,138 | ||||||
Total assets
|
$ | 785,230 | $ | 730,906 | ||||
Liabilities and Equity
|
||||||||
Liabilities
|
||||||||
Future policy benefits
|
$ | 182,736 | $ | 170,912 | ||||
Policyholder account balances
|
217,764 | 210,757 | ||||||
Other policy-related balances
|
15,451 | 15,750 | ||||||
Policyholder dividends payable
|
871 | 830 | ||||||
Policyholder dividend obligation
|
2,782 | 876 | ||||||
Payables for collateral under securities loaned and other
transactions
|
34,933 | 27,272 | ||||||
Bank deposits
|
10,685 | 10,316 | ||||||
Short-term debt
|
451 | 306 | ||||||
Long-term debt (includes $3,158 and $6,902, respectively, at
estimated fair value, relating to variable interest entities)
|
24,753 | 27,586 | ||||||
Collateral financing arrangements
|
5,297 | 5,297 | ||||||
Junior subordinated debt securities
|
3,192 | 3,191 | ||||||
Current income tax payable
|
385 | 297 | ||||||
Deferred income tax liability
|
7,214 | 1,856 | ||||||
Other liabilities (includes $73 and $93, respectively, relating
to variable interest entities)
|
23,121 | 20,366 | ||||||
Liabilities of subsidiaries
held-for-sale
|
3,221 | 3,043 | ||||||
Separate account liabilities
|
191,499 | 183,138 | ||||||
Total liabilities
|
724,355 | 681,793 | ||||||
Contingencies, Commitments and Guarantees (Note 9)
|
||||||||
Redeemable noncontrolling interests in partially owned
consolidated subsidiaries
|
130 | 117 | ||||||
Equity
|
||||||||
MetLife, Inc.s stockholders equity:
|
||||||||
Preferred stock, par value $0.01 per share;
200,000,000 shares authorized:
|
||||||||
Preferred stock, 84,000,000 shares issued and outstanding;
$2,100 aggregate liquidation preference
|
1 | 1 | ||||||
Convertible preferred stock, 0 and 6,857,000 shares issued
and outstanding at September 30, 2011 and December 31,
2010, respectively
|
| | ||||||
Common stock, par value $0.01 per share;
3,000,000,000 shares authorized; 1,060,754,366 and
989,031,704 shares issued at September 30, 2011
and December 31, 2010, respectively; 1,057,560,479 and
985,837,817 shares outstanding at September 30, 2011
and
December 31, 2010, respectively |
11 | 10 | ||||||
Additional paid-in capital
|
26,744 | 26,423 | ||||||
Retained earnings
|
26,951 | 21,363 | ||||||
Treasury stock, at cost; 3,193,887 shares at
September 30, 2011 and December 31, 2010
|
(172 | ) | (172 | ) | ||||
Accumulated other comprehensive income (loss)
|
6,813 | 1,000 | ||||||
Total MetLife, Inc.s stockholders equity
|
60,348 | 48,625 | ||||||
Noncontrolling interests
|
397 | 371 | ||||||
Total equity
|
60,745 | 48,996 | ||||||
Total liabilities and equity
|
$ | 785,230 | $ | 730,906 | ||||
5
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues
|
||||||||||||||||
Premiums
|
$ | 9,342 | $ | 6,484 | $ | 27,190 | $ | 19,856 | ||||||||
Universal life and investment-type product policy fees
|
1,998 | 1,452 | 5,856 | 4,339 | ||||||||||||
Net investment income
|
4,257 | 4,364 | 14,669 | 12,745 | ||||||||||||
Other revenues
|
720 | 624 | 1,878 | 1,681 | ||||||||||||
Net investment gains (losses):
|
||||||||||||||||
Other-than-temporary
impairments on fixed maturity securities
|
(95 | ) | (143 | ) | (525 | ) | (538 | ) | ||||||||
Other-than-temporary
impairments on fixed maturity securities transferred to other
comprehensive income (loss)
|
(189 | ) | 24 | (5 | ) | 181 | ||||||||||
Other net investment gains (losses)
|
229 | (223 | ) | 221 | 33 | |||||||||||
Total net investment gains (losses)
|
(55 | ) | (342 | ) | (309 | ) | (324 | ) | ||||||||
Net derivative gains (losses)
|
4,196 | (244 | ) | 4,233 | 1,278 | |||||||||||
Total revenues
|
20,458 | 12,338 | 53,517 | 39,575 | ||||||||||||
Expenses
|
||||||||||||||||
Policyholder benefits and claims
|
9,017 | 7,309 | 26,367 | 21,703 | ||||||||||||
Interest credited to policyholder account balances
|
738 | 1,264 | 4,104 | 3,454 | ||||||||||||
Policyholder dividends
|
384 | 391 | 1,130 | 1,156 | ||||||||||||
Other expenses
|
5,013 | 2,989 | 13,410 | 9,330 | ||||||||||||
Total expenses
|
15,152 | 11,953 | 45,011 | 35,643 | ||||||||||||
Income (loss) from continuing operations before provision for
income tax
|
5,306 | 385 | 8,506 | 3,932 | ||||||||||||
Provision for income tax expense (benefit)
|
1,734 | 68 | 2,681 | 1,251 | ||||||||||||
Income (loss) from continuing operations, net of income tax
|
3,572 | 317 | 5,825 | 2,681 | ||||||||||||
Income (loss) from discontinued operations, net of income tax
|
4 | 3 | (6 | ) | 20 | |||||||||||
Net income (loss)
|
3,576 | 320 | 5,819 | 2,701 | ||||||||||||
Less: Net income (loss) attributable to noncontrolling interests
|
(6 | ) | 4 | (6 | ) | (7 | ) | |||||||||
Net income (loss) attributable to MetLife, Inc.
|
3,582 | 316 | 5,825 | 2,708 | ||||||||||||
Less: Preferred stock dividends
|
30 | 30 | 91 | 91 | ||||||||||||
Preferred stock redemption premium
|
| | 146 | | ||||||||||||
Net income (loss) available to MetLife, Inc.s common
shareholders
|
$ | 3,552 | $ | 286 | $ | 5,588 | $ | 2,617 | ||||||||
Income (loss) from continuing operations, net of income tax,
available to MetLife, Inc.s common shareholders per common
share:
|
||||||||||||||||
Basic
|
$ | 3.35 | $ | 0.33 | $ | 5.29 | $ | 3.09 | ||||||||
Diluted
|
$ | 3.33 | $ | 0.32 | $ | 5.24 | $ | 3.07 | ||||||||
Net income (loss) available to MetLife, Inc.s common
shareholders per common share:
|
||||||||||||||||
Basic
|
$ | 3.35 | $ | 0.33 | $ | 5.28 | $ | 3.11 | ||||||||
Diluted
|
$ | 3.33 | $ | 0.32 | $ | 5.23 | $ | 3.09 | ||||||||
6
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net |
Foreign |
Defined |
Total |
|||||||||||||||||||||||||||||||||||||||||||||||||
Convertible |
Additional |
Treasury |
Unrealized |
Other-Than- |
Currency |
Benefit |
MetLife, Inc.s |
|||||||||||||||||||||||||||||||||||||||||||||
Preferred |
Preferred |
Common |
Paid-in |
Retained |
Stock |
Investment |
Temporary |
Translation |
Plans |
Stockholders |
Noncontrolling |
Total |
||||||||||||||||||||||||||||||||||||||||
Stock | Stock | Stock | Capital | Earnings | at Cost | Gains (Losses) | Impairments | Adjustments | Adjustment | Equity | Interests (1) | Equity | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2010
|
$ | 1 | $ | | $ | 10 | $ | 26,423 | $ | 21,363 | $ | (172 | ) | $ | 3,356 | $ | (366 | ) | $ | (541 | ) | $ | (1,449 | ) | $ | 48,625 | $ | 371 | $ | 48,996 | ||||||||||||||||||||||
Redemption of convertible preferred stock
|
| (2,805 | ) | (2,805 | ) | (2,805 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Preferred stock redemption premium
|
(146 | ) | (146 | ) | (146 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Common stock issuance newly issued shares
|
1 | 2,949 | 2,950 | 2,950 | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation
|
177 | 177 | 177 | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock
|
(91 | ) | (91 | ) | (91 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Change in equity of noncontrolling interests
|
48 | 48 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss)
|
5,825 | 5,825 | 1 | 5,826 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) on derivative instruments, net of
income tax
|
1,005 | 1,005 | 1,005 | |||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized investment gains (losses), net of related offsets and
income tax
|
4,503 | (51 | ) | 4,452 | (5 | ) | 4,447 | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of income tax
|
291 | 291 | (18 | ) | 273 | |||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit plans adjustment, net of income tax
|
65 | 65 | 65 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss)
|
5,813 | (23 | ) | 5,790 | ||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss)
|
11,638 | (22 | ) | 11,616 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2011
|
$ | 1 | $ | | $ | 11 | $ | 26,744 | $ | 26,951 | $ | (172 | ) | $ | 8,864 | $ | (417 | ) | $ | (250 | ) | $ | (1,384 | ) | $ | 60,348 | $ | 397 | $ | 60,745 | ||||||||||||||||||||||
(1) | Net income (loss) attributable to noncontrolling interests excludes gains (losses) of redeemable noncontrolling interests in partially owned consolidated subsidiaries of ($7) million. |
7
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net |
Foreign |
Defined |
Total |
|||||||||||||||||||||||||||||||||||||||||||||
Additional |
Treasury |
Unrealized |
Other-Than- |
Currency |
Benefit |
MetLife, Inc.s |
||||||||||||||||||||||||||||||||||||||||||
Preferred |
Common |
Paid-in |
Retained |
Stock |
Investment |
Temporary |
Translation |
Plans |
Stockholders |
Noncontrolling |
Total |
|||||||||||||||||||||||||||||||||||||
Stock | Stock | Capital | Earnings | at Cost | Gains (Losses) | Impairments | Adjustments | Adjustment | Equity | Interests | Equity | |||||||||||||||||||||||||||||||||||||
Balance at December 31, 2009
|
$ | 1 | $ | 8 | $ | 16,859 | $ | 19,501 | $ | (190 | ) | $ | (817 | ) | $ | (513 | ) | $ | (183 | ) | $ | (1,545 | ) | $ | 33,121 | $ | 377 | $ | 33,498 | |||||||||||||||||||
Cumulative effect of change in accounting principle, net of
income tax
|
(12 | ) | 31 | 11 | 30 | 30 | ||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2010
|
1 | 8 | 16,859 | 19,489 | (190 | ) | (786 | ) | (502 | ) | (183 | ) | (1,545 | ) | 33,151 | 377 | 33,528 | |||||||||||||||||||||||||||||||
Cumulative effect of change in accounting principle, net of
income tax
|
(10 | ) | 10 | | | |||||||||||||||||||||||||||||||||||||||||||
Common stock issuance newly issued shares
|
1 | 3,528 | 3,529 | 3,529 | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation
|
64 | 18 | 82 | 82 | ||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock
|
(91 | ) | (91 | ) | (91 | ) | ||||||||||||||||||||||||||||||||||||||||||
Change in equity of noncontrolling interests
|
(22 | ) | (22 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss):
|
||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss)
|
2,708 | 2,708 | (7 | ) | 2,701 | |||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss):
|
||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) on derivative instruments, net of
income tax
|
409 | 409 | 409 | |||||||||||||||||||||||||||||||||||||||||||||
Unrealized investment gains (losses), net of related offsets and
income tax
|
6,268 | 357 | 6,625 | (1 | ) | 6,624 | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of income tax
|
(92 | ) | (92 | ) | 7 | (85 | ) | |||||||||||||||||||||||||||||||||||||||||
Defined benefit plans adjustment, net of income tax
|
94 | 94 | 94 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss)
|
7,036 | 6 | 7,042 | |||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss)
|
9,744 | (1 | ) | 9,743 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2010
|
$ | 1 | $ | 9 | $ | 20,451 | $ | 22,096 | $ | (172 | ) | $ | 5,901 | $ | (145 | ) | $ | (275 | ) | $ | (1,451 | ) | $ | 46,415 | $ | 354 | $ | 46,769 | ||||||||||||||||||||
8
Nine Months |
||||||||
Ended |
||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
Net cash provided by operating activities
|
$ | 9,040 | $ | 5,193 | ||||
Cash flows from investing activities
|
||||||||
Sales, maturities and repayments of:
|
||||||||
Fixed maturity securities
|
81,918 | 55,618 | ||||||
Equity securities
|
1,342 | 1,002 | ||||||
Mortgage loans
|
8,784 | 4,474 | ||||||
Real estate and real estate joint ventures
|
856 | 135 | ||||||
Other limited partnership interests
|
852 | 311 | ||||||
Purchases of:
|
||||||||
Fixed maturity securities
|
(95,660 | ) | (69,997 | ) | ||||
Equity securities
|
(869 | ) | (638 | ) | ||||
Mortgage loans
|
(12,248 | ) | (5,888 | ) | ||||
Real estate and real estate joint ventures
|
(608 | ) | (474 | ) | ||||
Other limited partnership interests
|
(849 | ) | (745 | ) | ||||
Cash received in connection with freestanding derivatives
|
2,841 | 1,717 | ||||||
Cash paid in connection with freestanding derivatives
|
(3,102 | ) | (1,949 | ) | ||||
Sale of interest in joint venture
|
265 | | ||||||
Net change in policy loans
|
(84 | ) | (169 | ) | ||||
Net change in short-term investments
|
(6,508 | ) | (3,152 | ) | ||||
Net change in other invested assets
|
(175 | ) | 501 | |||||
Other, net
|
(104 | ) | (115 | ) | ||||
Net cash used in investing activities
|
(23,349 | ) | (19,369 | ) | ||||
Cash flows from financing activities
|
||||||||
Policyholder account balances:
|
||||||||
Deposits
|
69,911 | 53,709 | ||||||
Withdrawals
|
(67,001 | ) | (50,126 | ) | ||||
Net change in payables for collateral under securities loaned
and other transactions
|
7,661 | 7,695 | ||||||
Net change in bank deposits
|
296 | (959 | ) | |||||
Net change in short-term debt
|
145 | 1,145 | ||||||
Long-term debt issued
|
1,346 | 4,590 | ||||||
Long-term debt repaid
|
(1,192 | ) | (689 | ) | ||||
Cash received in connection with collateral financing
arrangements
|
100 | | ||||||
Debt issuance costs
|
(1 | ) | (14 | ) | ||||
Common stock issued, net of issuance costs
|
2,950 | 3,529 | ||||||
Stock options exercised
|
77 | 32 | ||||||
Redemption of convertible preferred stock
|
(2,805 | ) | | |||||
Preferred stock redemption premium
|
(146 | ) | | |||||
Dividends on preferred stock
|
(91 | ) | (91 | ) | ||||
Other, net
|
(68 | ) | (192 | ) | ||||
Net cash provided by financing activities
|
11,182 | 18,629 | ||||||
Effect of change in foreign currency exchange rates on cash and
cash equivalents balances
|
133 | (8 | ) | |||||
Change in cash and cash equivalents
|
(2,994 | ) | 4,445 | |||||
Cash and cash equivalents, beginning of period
|
13,046 | 10,112 | ||||||
Cash and cash equivalents, end of period
|
$ | 10,052 | $ | 14,557 | ||||
Cash and cash equivalents, subsidiaries
held-for-sale,
beginning of period
|
$ | 89 | $ | 88 | ||||
Cash and cash equivalents, subsidiaries
held-for-sale,
end of period
|
$ | 51 | $ | 78 | ||||
Cash and cash equivalents, from continuing operations, beginning
of period
|
$ | 12,957 | $ | 10,024 | ||||
Cash and cash equivalents, from continuing operations, end of
period
|
$ | 10,001 | $ | 14,479 | ||||
Supplemental disclosures of cash flow information:
|
||||||||
Net cash paid during the period for:
|
||||||||
Interest
|
$ | 1,184 | $ | 997 | ||||
Income tax
|
$ | 668 | $ | 109 | ||||
Non-cash transactions during the period:
|
||||||||
Real estate and real estate joint ventures acquired in
satisfaction of debt
|
$ | 106 | $ | 92 | ||||
9
1. | Business, Basis of Presentation and Summary of Significant Accounting Policies |
10
11
12
2. | Acquisitions and Dispositions |
13
| Fixed Annuities - This block of business provides a fixed rate of return to the policyholders. A decrease in market interest rates since the time of issuance was the primary driver that resulted in the fair value of the liabilities associated with this block being significantly greater than the initial policy reserves assumed at the Acquisition Date. | |
| Interest Sensitive Whole Life and Retirement Savings Products - These contracts contain guaranteed minimum benefit features. The recorded reserves for these guarantees increase ratably over the life of the policies in relation to future gross revenues. In contrast, the fair value of the guaranteed minimum benefit component of the initial policy reserves assumed represents the amount that would be required to be transferred to a market participant to assume the full liability at the acquisition date, implicitly incorporating market participant views as to all expected future cash flows. This results in a fair value significantly in excess of the initial guaranteed minimum benefit liability assumed at the Acquisition Date. |
14
15
Three Months |
Nine Months |
|||||||
Ended |
Ended |
|||||||
September 30, | September 30, | |||||||
2011 | 2011 | |||||||
(In millions) | ||||||||
Balance, beginning of period
|
$ | 9 | $ | 10 | ||||
Restructuring charges
|
7 | 31 | ||||||
Cash payments
|
(7 | ) | (32 | ) | ||||
Balance, end of period
|
$ | 9 | $ | 9 | ||||
Restructuring charges incurred in current period
|
$ | 7 | $ | 31 | ||||
Total restructuring charges incurred since inception of plans
|
$ | 41 | $ | 41 | ||||
3. | Investments |
16
September 30, 2011 | ||||||||||||||||||||||||
Cost or |
Gross Unrealized |
Estimated |
||||||||||||||||||||||
Amortized |
Temporary |
OTTI |
Fair |
% of |
||||||||||||||||||||
Cost | Gains | Losses | Losses | Value | Total | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Fixed Maturity Securities:
|
||||||||||||||||||||||||
U.S. corporate securities
|
$ | 99,832 | $ | 8,219 | $ | 1,476 | $ | | $ | 106,575 | 30.1 | % | ||||||||||||
Foreign corporate securities (1)
|
61,013 | 3,616 | 1,108 | (1 | ) | 63,522 | 18.0 | |||||||||||||||||
Foreign government securities
|
50,243 | 2,936 | 220 | | 52,959 | 15.0 | ||||||||||||||||||
Residential mortgage-backed securities (RMBS)
|
40,799 | 2,383 | 698 | 591 | 41,893 | 11.8 | ||||||||||||||||||
U.S. Treasury and agency securities
|
36,159 | 5,686 | 11 | | 41,834 | 11.8 | ||||||||||||||||||
Commercial mortgage-backed securities (CMBS)
|
19,259 | 635 | 307 | 2 | 19,585 | 5.5 | ||||||||||||||||||
Asset-backed securities (ABS)
|
14,765 | 322 | 583 | 86 | 14,418 | 4.1 | ||||||||||||||||||
State and political subdivision securities
|
11,939 | 1,371 | 169 | | 13,141 | 3.7 | ||||||||||||||||||
Other fixed maturity securities
|
| | | | | | ||||||||||||||||||
Total fixed maturity securities (2), (3)
|
$ | 334,009 | $ | 25,168 | $ | 4,572 | $ | 678 | $ | 353,927 | 100.0 | % | ||||||||||||
Equity Securities:
|
||||||||||||||||||||||||
Common stock
|
$ | 2,173 | $ | 80 | $ | 42 | $ | | $ | 2,211 | 70.9 | % | ||||||||||||
Non-redeemable preferred stock (2)
|
1,054 | 39 | 186 | | 907 | 29.1 | ||||||||||||||||||
Total equity securities
|
$ | 3,227 | $ | 119 | $ | 228 | $ | | $ | 3,118 | 100.0 | % | ||||||||||||
December 31, 2010 | ||||||||||||||||||||||||
Cost or |
Gross Unrealized |
Estimated |
||||||||||||||||||||||
Amortized |
Temporary |
OTTI |
Fair |
% of |
||||||||||||||||||||
Cost | Gains | Losses | Losses | Value | Total | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Fixed Maturity Securities:
|
||||||||||||||||||||||||
U.S. corporate securities
|
$ | 88,905 | $ | 4,469 | $ | 1,602 | $ | | $ | 91,772 | 28.3 | % | ||||||||||||
Foreign corporate securities
|
65,487 | 3,326 | 925 | | 67,888 | 20.9 | ||||||||||||||||||
Foreign government securities
|
40,871 | 1,733 | 602 | | 42,002 | 12.9 | ||||||||||||||||||
RMBS
|
44,468 | 1,652 | 917 | 470 | 44,733 | 13.8 | ||||||||||||||||||
U.S. Treasury and agency securities
|
32,469 | 1,394 | 559 | | 33,304 | 10.2 | ||||||||||||||||||
CMBS
|
20,213 | 740 | 266 | 12 | 20,675 | 6.4 | ||||||||||||||||||
ABS
|
14,722 | 274 | 590 | 119 | 14,287 | 4.4 | ||||||||||||||||||
State and political subdivision securities
|
10,476 | 171 | 518 | | 10,129 | 3.1 | ||||||||||||||||||
Other fixed maturity securities
|
6 | 1 | | | 7 | | ||||||||||||||||||
Total fixed maturity securities (2), (3)
|
$ | 317,617 | $ | 13,760 | $ | 5,979 | $ | 601 | $ | 324,797 | 100.0 | % | ||||||||||||
Equity Securities:
|
||||||||||||||||||||||||
Common stock
|
$ | 2,059 | $ | 146 | $ | 12 | $ | | $ | 2,193 | 60.9 | % | ||||||||||||
Non-redeemable preferred stock (2)
|
1,562 | 76 | 229 | | 1,409 | 39.1 | ||||||||||||||||||
Total equity securities
|
$ | 3,621 | $ | 222 | $ | 241 | $ | | $ | 3,602 | 100.0 | % | ||||||||||||
(1) | OTTI losses as presented above represent the noncredit portion of OTTI losses that is included in accumulated other comprehensive income (loss). 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 (loss) position of $1 million at September 30, 2011 due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also Net Unrealized Investment Gains (Losses). |
17
(2) | Upon acquisition, the Company classifies perpetual securities that have attributes of both debt and equity as fixed maturity securities if the security has an interest rate step-up feature which, when combined with other qualitative factors, indicates that the security has more debt-like characteristics; while those with more equity-like characteristics are classified as equity securities within non-redeemable preferred stock. Many of such securities have been issued by non-U.S. financial institutions that are accorded Tier 1 and Upper Tier 2 capital treatment by their respective regulatory bodies and are commonly referred to as perpetual hybrid securities. The following table presents the perpetual hybrid securities held by the Company at: |
September 30, |
December 31, |
|||||||||||
2011 | 2010 | |||||||||||
Estimated |
Estimated |
|||||||||||
Classification |
Fair |
Fair |
||||||||||
Consolidated Balance Sheets | Sector Table | Primary Issuers | Value | Value | ||||||||
(In millions) | ||||||||||||
Fixed maturity securities
|
Foreign corporate securities | Non-U.S. financial institutions | $ | 632 | $ | 2,008 | ||||||
Fixed maturity securities
|
U.S. corporate securities | U.S. financial institutions | $ | 181 | $ | 83 | ||||||
Equity securities
|
Non-redeemable preferred stock | Non-U.S. financial institutions | $ | 481 | $ | 1,043 | ||||||
Equity securities
|
Non-redeemable preferred stock | U.S. financial institutions | $ | 381 | $ | 236 |
(3) | The Companys holdings in redeemable preferred stock with stated maturity dates, commonly referred to as capital securities, were primarily issued by U.S. financial institutions and have cumulative interest deferral features. The Company held $2.0 billion and $2.7 billion at estimated fair value of such securities at September 30, 2011 and December 31, 2010, respectively, which are included in the U.S. and foreign corporate securities sectors within fixed maturity securities. |
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Below investment grade or non-rated fixed maturity securities:
|
||||||||
Estimated fair value
|
$ | 24,494 | $ | 24,870 | ||||
Net unrealized gains (losses)
|
$ | (1,683 | ) | $ | (696 | ) | ||
Non-income producing fixed maturity securities:
|
||||||||
Estimated fair value
|
$ | 145 | $ | 130 | ||||
Net unrealized gains (losses)
|
$ | (54 | ) | $ | (23 | ) |
18
September 30, 2011 | December 31, 2010 | |||||||
Carrying Value (1) | ||||||||
(In millions) | ||||||||
Government and agency fixed maturity securities:
|
||||||||
United States
|
$ | 41,834 | $ | 33,304 | ||||
Japan
|
$ | 20,644 | $ | 15,591 | ||||
Mexico (2)
|
$ | | $ | 5,050 | ||||
U.S. Treasury and agency fixed-income securities included in:
|
||||||||
Short-term investments
|
$ | 13,565 | $ | 4,048 | ||||
Cash equivalents
|
$ | 2,847 | $ | 5,762 |
(1) | Represents estimated fair value for fixed maturity securities; amortized cost, which approximates estimated fair value or estimated fair value, if available, for short-term investments; and amortized cost, which approximates estimated fair value, for cash equivalents. | |
(2) | The Companys investment in Mexico government and agency fixed maturity securities at September 30, 2011 of $5,028 million is less than 10% of the Companys equity. |
19
September 30, 2011 | December 31, 2010 | |||||||||||||||
Estimated |
Estimated |
|||||||||||||||
Fair |
% of |
Fair |
% of |
|||||||||||||
Value | Total | Value | Total | |||||||||||||
(In millions) | (In millions) | |||||||||||||||
Corporate fixed maturity securities by sector:
|
||||||||||||||||
Foreign corporate fixed maturity securities (1)
|
$ | 63,522 | 37.3 | % | $ | 67,888 | 42.5 | % | ||||||||
U.S. corporate fixed maturity securities by industry:
|
||||||||||||||||
Industrial
|
27,245 | 16.0 | 22,070 | 13.8 | ||||||||||||
Consumer
|
26,414 | 15.5 | 21,482 | 13.5 | ||||||||||||
Finance
|
21,864 | 12.9 | 20,785 | 13.0 | ||||||||||||
Utility
|
19,152 | 11.3 | 16,902 | 10.6 | ||||||||||||
Communications
|
8,318 | 4.9 | 7,335 | 4.6 | ||||||||||||
Other
|
3,582 | 2.1 | 3,198 | 2.0 | ||||||||||||
Total
|
$ | 170,097 | 100.0 | % | $ | 159,660 | 100.0 | % | ||||||||
(1) | Includes U.S. dollar-denominated debt obligations of foreign obligors and other foreign fixed maturity securities. |
September 30, 2011 | December 31, 2010 | |||||||||||||||
Estimated |
Estimated |
|||||||||||||||
Fair |
% of Total |
Fair |
% of Total |
|||||||||||||
Value | Investments | Value | Investments | |||||||||||||
(In millions) | (In millions) | |||||||||||||||
Concentrations within corporate fixed maturity securities:
|
||||||||||||||||
Largest exposure to a single issuer
|
$ | 1,883 | 0.4 | % | $ | 2,291 | 0.5 | % | ||||||||
Holdings in ten issuers with the largest exposures
|
$ | 11,955 | 2.4 | % | $ | 14,247 | 3.1 | % |
20
September 30, 2011 | December 31, 2010 | |||||||||||||||
Estimated |
Estimated |
|||||||||||||||
Fair |
% of |
Fair |
% of |
|||||||||||||
Value | Total | Value | Total | |||||||||||||
(In millions) | (In millions) | |||||||||||||||
By security type:
|
||||||||||||||||
Collateralized mortgage obligations
|
$ | 22,903 | 54.7 | % | $ | 22,303 | 49.9 | % | ||||||||
Pass-through securities
|
18,990 | 45.3 | 22,430 | 50.1 | ||||||||||||
Total RMBS
|
$ | 41,893 | 100.0 | % | $ | 44,733 | 100.0 | % | ||||||||
By risk profile:
|
||||||||||||||||
Agency
|
$ | 31,386 | 74.9 | % | $ | 34,254 | 76.6 | % | ||||||||
Prime
|
5,935 | 14.2 | 6,258 | 14.0 | ||||||||||||
Alternative residential mortgage loans
|
4,572 | 10.9 | 4,221 | 9.4 | ||||||||||||
Total RMBS
|
$ | 41,893 | 100.0 | % | $ | 44,733 | 100.0 | % | ||||||||
Rated Aaa/AAA
|
$ | 32,452 | 77.5 | % | $ | 36,085 | 80.7 | % | ||||||||
Rated NAIC 1
|
$ | 36,543 | 87.2 | % | $ | 38,984 | 87.1 | % | ||||||||
September 30, 2011 | December 31, 2010 | |||||||||||||||
Estimated |
Estimated |
|||||||||||||||
Fair |
% of |
Fair |
% of |
|||||||||||||
Value | Total | Value | Total | |||||||||||||
(In millions) | (In millions) | |||||||||||||||
Vintage Year:
|
||||||||||||||||
2005 & Prior
|
$ | 1,632 | 35.7 | % | $ | 1,576 | 37.3 | % | ||||||||
2006
|
1,294 | 28.3 | 1,013 | 24.0 | ||||||||||||
2007
|
997 | 21.8 | 922 | 21.8 | ||||||||||||
2008
|
| | 7 | 0.2 | ||||||||||||
2009 (1)
|
615 | 13.5 | 671 | 15.9 | ||||||||||||
2010 (1)
|
34 | 0.7 | 32 | 0.8 | ||||||||||||
2011
|
| | | | ||||||||||||
Total
|
$ | 4,572 | 100.0 | % | $ | 4,221 | 100.0 | % | ||||||||
(1) | All of the Companys Alt-A RMBS holdings in the 2009 and 2010 vintage years are resecuritization of real estate mortgage investment conduit (Re-REMIC) Alt-A RMBS that were purchased in 2009 and 2010 and are comprised of original issue vintage year 2005 through 2007 Alt-A RMBS. All of the Companys Re-REMIC Alt-A RMBS holdings are NAIC 1 rated. |
21
September 30, 2011 | December 31, 2010 | |||||||||||||||
% of |
% of |
|||||||||||||||
Amount | Total | Amount | Total | |||||||||||||
(In millions) | (In millions) | |||||||||||||||
Net unrealized gains (losses)
|
$ | (824 | ) | $ | (670 | ) | ||||||||||
Rated Aa/AA or better
|
12.7 | % | 15.9 | % | ||||||||||||
Rated NAIC 1
|
47.1 | % | 39.5 | % | ||||||||||||
Distribution of holdings at estimated fair
value by collateral type:
|
||||||||||||||||
Fixed rate mortgage loans collateral
|
92.7 | % | 90.7 | % | ||||||||||||
Hybrid adjustable rate mortgage loans collateral
|
7.3 | 9.3 | ||||||||||||||
Total Alt-A RMBS
|
100.0 | % | 100.0 | % | ||||||||||||
September 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||
Below |
||||||||||||||||||||||||||||||||||||||||||||||||
Investment |
||||||||||||||||||||||||||||||||||||||||||||||||
Aaa | Aa | A | Baa | Grade | Total | |||||||||||||||||||||||||||||||||||||||||||
Estimated |
Estimated |
Estimated |
Estimated |
Estimated |
Estimated |
|||||||||||||||||||||||||||||||||||||||||||
Amortized |
Fair |
Amortized |
Fair |
Amortized |
Fair |
Amortized |
Fair |
Amortized |
Fair |
Amortized |
Fair |
|||||||||||||||||||||||||||||||||||||
Cost | Value | Cost | Value | Cost | Value | Cost | Value | Cost | Value | Cost | Value | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
2003 & Prior
|
$ | 5,936 | 6,040 | 178 | 176 | 105 | 101 | 58 | 55 | 21 | 20 | $ | 6,298 | $ | 6,392 | |||||||||||||||||||||||||||||||||
2004
|
3,698 | 3,823 | 447 | 455 | 134 | 126 | 92 | 89 | 33 | 26 | 4,404 | 4,519 | ||||||||||||||||||||||||||||||||||||
2005
|
3,117 | 3,316 | 400 | 401 | 324 | 311 | 168 | 153 | 37 | 26 | 4,046 | 4,207 | ||||||||||||||||||||||||||||||||||||
2006
|
1,733 | 1,813 | 229 | 217 | 91 | 87 | 147 | 135 | 157 | 137 | 2,357 | 2,389 | ||||||||||||||||||||||||||||||||||||
2007
|
700 | 714 | 439 | 362 | 163 | 137 | 39 | 38 | 126 | 117 | 1,467 | 1,368 | ||||||||||||||||||||||||||||||||||||
2008
|
| | | | | | | | 24 | 29 | 24 | 29 | ||||||||||||||||||||||||||||||||||||
2009
|
2 | 2 | | | | | | | | | 2 | 2 | ||||||||||||||||||||||||||||||||||||
2010
|
2 | 3 | | | 60 | 66 | | | | | 62 | 69 | ||||||||||||||||||||||||||||||||||||
2011
|
505 | 513 | | | 94 | 97 | | | | | 599 | 610 | ||||||||||||||||||||||||||||||||||||
Total
|
$ | 15,693 | $ | 16,224 | $ | 1,693 | $ | 1,611 | $ | 971 | $ | 925 | $ | 504 | $ | 470 | $ | 398 | $ | 355 | $ | 19,259 | $ | 19,585 | ||||||||||||||||||||||||
Ratings Distribution
|
82.8 | % | 8.3 | % | 4.7 | % | 2.4 | % | 1.8 | % | 100.0 | % | ||||||||||||||||||||||||||||||||||||
December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||
Below |
||||||||||||||||||||||||||||||||||||||||||||||||
Investment |
||||||||||||||||||||||||||||||||||||||||||||||||
Aaa | Aa | A | Baa | Grade | Total | |||||||||||||||||||||||||||||||||||||||||||
Estimated |
Estimated |
Estimated |
Estimated |
Estimated |
Estimated |
|||||||||||||||||||||||||||||||||||||||||||
Amortized |
Fair |
Amortized |
Fair |
Amortized |
Fair |
Amortized |
Fair |
Amortized |
Fair |
Amortized |
Fair |
|||||||||||||||||||||||||||||||||||||
Cost | Value | Cost | Value | Cost | Value | Cost | Value | Cost | Value | Cost | Value | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
2003 & Prior
|
$ | 7,411 | $ | 7,640 | $ | 282 | $ | 282 | $ | 228 | $ | 227 | $ | 74 | $ | 71 | $ | 28 | $ | 24 | $ | 8,023 | $ | 8,244 | ||||||||||||||||||||||||
2004
|
3,489 | 3,620 | 277 | 273 | 216 | 209 | 181 | 175 | 91 | 68 | 4,254 | 4,345 | ||||||||||||||||||||||||||||||||||||
2005
|
3,113 | 3,292 | 322 | 324 | 286 | 280 | 263 | 255 | 73 | 66 | 4,057 | 4,217 | ||||||||||||||||||||||||||||||||||||
2006
|
1,463 | 1,545 | 159 | 160 | 168 | 168 | 385 | 398 | 166 | 156 | 2,341 | 2,427 | ||||||||||||||||||||||||||||||||||||
2007
|
840 | 791 | 344 | 298 | 96 | 95 | 119 | 108 | 122 | 133 | 1,521 | 1,425 | ||||||||||||||||||||||||||||||||||||
2008
|
2 | 2 | | | | | | | | | 2 | 2 | ||||||||||||||||||||||||||||||||||||
2009
|
3 | 3 | | | | | | | | | 3 | 3 | ||||||||||||||||||||||||||||||||||||
2010
|
8 | 8 | | | 4 | 4 | | | | | 12 | 12 | ||||||||||||||||||||||||||||||||||||
Total
|
$ | 16,329 | $ | 16,901 | $ | 1,384 | $ | 1,337 | $ | 998 | $ | 983 | $ | 1,022 | $ | 1,007 | $ | 480 | $ | 447 | $ | 20,213 | $ | 20,675 | ||||||||||||||||||||||||
Ratings Distribution
|
81.7 | % | 6.4 | % | 4.8 | % | 4.9 | % | 2.2 | % | 100.0 | % | ||||||||||||||||||||||||||||||||||||
22
September 30, 2011 | December 31, 2010 | |||||||
NAIC 1
|
94.3 | % | 93.7 | % | ||||
NAIC 2
|
4.1 | % | 3.2 | % | ||||
NAIC 3
|
0.5 | % | 1.8 | % | ||||
NAIC 4
|
0.7 | % | 1.0 | % | ||||
NAIC 5
|
| % | 0.3 | % | ||||
NAIC 6
|
0.4 | % | | % |
September 30, 2011 | December 31, 2010 | |||||||||||||||
Estimated |
Estimated |
|||||||||||||||
Fair |
% of |
Fair |
% of |
|||||||||||||
Value | Total | Value | Total | |||||||||||||
(In millions) | (In millions) | |||||||||||||||
By collateral type:
|
||||||||||||||||
Credit card loans
|
$ | 4,444 | 30.8 | % | $ | 6,027 | 42.2 | % | ||||||||
Student loans
|
2,645 | 18.4 | 2,416 | 16.9 | ||||||||||||
Collateralized debt obligations
|
2,578 | 17.9 | 1,798 | 12.6 | ||||||||||||
Automobile loans
|
1,039 | 7.2 | 605 | 4.2 | ||||||||||||
RMBS backed by
sub-prime
mortgage loans
|
997 | 6.9 | 1,119 | 7.8 | ||||||||||||
Other loans
|
2,715 | 18.8 | 2,322 | 16.3 | ||||||||||||
Total
|
$ | 14,418 | 100.0 | % | $ | 14,287 | 100.0 | % | ||||||||
Rated Aaa/AAA
|
$ | 9,250 | 64.2 | % | $ | 10,411 | 72.9 | % | ||||||||
Rated NAIC 1
|
$ | 13,324 | 92.4 | % | $ | 13,133 | 91.9 | % | ||||||||
23
September 30, 2011 | December 31, 2010 | |||||||||||||||
Estimated |
Estimated |
|||||||||||||||
Amortized |
Fair |
Amortized |
Fair |
|||||||||||||
Cost | Value | Cost | Value | |||||||||||||
(In millions) | ||||||||||||||||
Due in one year or less
|
$ | 13,713 | $ | 13,813 | $ | 8,580 | $ | 8,702 | ||||||||
Due after one year through five years
|
68,498 | 70,234 | 65,143 | 66,796 | ||||||||||||
Due after five years through ten years
|
83,338 | 88,497 | 76,508 | 79,571 | ||||||||||||
Due after ten years
|
93,637 | 105,487 | 87,983 | 90,033 | ||||||||||||
Subtotal
|
259,186 | 278,031 | 238,214 | 245,102 | ||||||||||||
RMBS, CMBS and ABS
|
74,823 | 75,896 | 79,403 | 79,695 | ||||||||||||
Total fixed maturity securities
|
$ | 334,009 | $ | 353,927 | $ | 317,617 | $ | 324,797 | ||||||||
24
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Fixed maturity securities
|
$ | 20,703 | $ | 7,817 | ||||
Fixed maturity securities with noncredit OTTI losses in
accumulated other comprehensive income (loss)
|
(678 | ) | (601 | ) | ||||
Total fixed maturity securities
|
20,025 | 7,216 | ||||||
Equity securities
|
(95 | ) | (3 | ) | ||||
Derivatives
|
1,486 | (59 | ) | |||||
Other
|
63 | 42 | ||||||
Subtotal
|
21,479 | 7,196 | ||||||
Amounts allocated from:
|
||||||||
Insurance liability loss recognition
|
(3,946 | ) | (672 | ) | ||||
DAC and VOBA related to noncredit OTTI losses recognized in
accumulated other comprehensive income (loss)
|
41 | 38 | ||||||
DAC and VOBA
|
(2,070 | ) | (1,205 | ) | ||||
Policyholder dividend obligation
|
(2,782 | ) | (876 | ) | ||||
Subtotal
|
(8,757 | ) | (2,715 | ) | ||||
Deferred income tax benefit (expense) related to noncredit OTTI
losses recognized in accumulated other comprehensive income
(loss)
|
220 | 197 | ||||||
Deferred income tax benefit (expense)
|
(4,504 | ) | (1,692 | ) | ||||
Net unrealized investment gains (losses)
|
8,438 | 2,986 | ||||||
Net unrealized investment gains (losses) attributable to
noncontrolling interests
|
9 | 4 | ||||||
Net unrealized investment gains (losses) attributable to
MetLife, Inc.
|
$ | 8,447 | $ | 2,990 | ||||
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Balance, beginning of period
|
$ | (601 | ) | $ | (859 | ) | ||
Noncredit OTTI losses recognized (1)
|
5 | (212 | ) | |||||
Transferred to retained earnings (2)
|
| 16 | ||||||
Securities sold with previous noncredit OTTI loss
|
99 | 137 | ||||||
Subsequent changes in estimated fair value
|
(181 | ) | 317 | |||||
Balance, end of period
|
$ | (678 | ) | $ | (601 | ) | ||
(1) | Noncredit OTTI losses recognized, net of DAC, were $6 million and ($202) million for the periods ended September 30, 2011 and December 31, 2010, respectively. |
25
(2) | Amounts transferred to retained earnings were in connection with the adoption of guidance related to the consolidation of VIEs as described in Note 1 of the Notes to the Consolidated Financial Statements included in the 2010 Annual Report. |
Nine Months |
||||
Ended |
||||
September 30, 2011 | ||||
(In millions) | ||||
Balance, beginning of period
|
$ | 2,990 | ||
Fixed maturity securities on which noncredit OTTI losses have
been recognized
|
(77 | ) | ||
Unrealized investment gains (losses) during the period
|
14,360 | |||
Unrealized investment gains (losses) relating to:
|
||||
Insurance liability gain (loss) recognition
|
(3,274 | ) | ||
DAC and VOBA related to noncredit OTTI losses recognized in
accumulated other comprehensive income (loss)
|
3 | |||
DAC and VOBA
|
(865 | ) | ||
Policyholder dividend obligation
|
(1,906 | ) | ||
Deferred income tax benefit (expense) related to noncredit OTTI
losses recognized in accumulated other comprehensive income
(loss)
|
23 | |||
Deferred income tax benefit (expense)
|
(2,812 | ) | ||
Net unrealized investment gains (losses)
|
8,442 | |||
Net unrealized investment gains (losses) attributable to
noncontrolling interests
|
5 | |||
Balance, end of period
|
$ | 8,447 | ||
Change in net unrealized investment gains (losses)
|
$ | 5,452 | ||
Change in net unrealized investment gains (losses) attributable
to noncontrolling interests
|
5 | |||
Change in net unrealized investment gains (losses) attributable
to MetLife, Inc.
|
$ | 5,457 | ||
26
September 30, 2011 | ||||||||||||||||||||||||
Equal to or Greater |
||||||||||||||||||||||||
Less than 12 Months | than 12 Months | Total | ||||||||||||||||||||||
Estimated |
Gross |
Estimated |
Gross |
Estimated |
Gross |
|||||||||||||||||||
Fair |
Unrealized |
Fair |
Unrealized |
Fair |
Unrealized |
|||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
(In millions, except number of securities) | ||||||||||||||||||||||||
Fixed Maturity Securities:
|
||||||||||||||||||||||||
U.S. corporate securities
|
$ | 18,303 | $ | 597 | $ | 4,981 | $ | 879 | $ | 23,284 | $ | 1,476 | ||||||||||||
Foreign corporate securities
|
16,560 | 846 | 1,480 | 261 | 18,040 | 1,107 | ||||||||||||||||||
Foreign government securities
|
8,092 | 208 | 158 | 12 | 8,250 | 220 | ||||||||||||||||||
RMBS
|
3,761 | 324 | 4,501 | 965 | 8,262 | 1,289 | ||||||||||||||||||
U.S. Treasury and agency securities
|
8,937 | 9 | 39 | 2 | 8,976 | 11 | ||||||||||||||||||
CMBS
|
4,974 | 200 | 620 | 109 | 5,594 | 309 | ||||||||||||||||||
ABS
|
4,670 | 189 | 2,087 | 480 | 6,757 | 669 | ||||||||||||||||||
State and political subdivision securities
|
416 | 6 | 981 | 163 | 1,397 | 169 | ||||||||||||||||||
Other fixed maturity securities
|
| | | | | | ||||||||||||||||||
Total fixed maturity securities
|
$ | 65,713 | $ | 2,379 | $ | 14,847 | $ | 2,871 | $ | 80,560 | $ | 5,250 | ||||||||||||
Equity Securities:
|
||||||||||||||||||||||||
Common stock
|
$ | 416 | $ | 41 | $ | 23 | $ | 1 | $ | 439 | $ | 42 | ||||||||||||
Non-redeemable preferred stock
|
227 | 30 | 386 | 156 | 613 | 186 | ||||||||||||||||||
Total equity securities
|
$ | 643 | $ | 71 | $ | 409 | $ | 157 | $ | 1,052 | $ | 228 | ||||||||||||
Total number of securities in an unrealized loss position
|
4,414 | 1,340 | ||||||||||||||||||||||
27
December 31, 2010 | ||||||||||||||||||||||||
Equal to or Greater |
||||||||||||||||||||||||
Less than 12 Months | than 12 Months | Total | ||||||||||||||||||||||
Estimated |
Gross |
Estimated |
Gross |
Estimated |
Gross |
|||||||||||||||||||
Fair |
Unrealized |
Fair |
Unrealized |
Fair |
Unrealized |
|||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
(In millions, except number of securities) | ||||||||||||||||||||||||
Fixed Maturity Securities:
|
||||||||||||||||||||||||
U.S. corporate securities
|
$ | 22,954 | $ | 447 | $ | 8,319 | $ | 1,155 | $ | 31,273 | $ | 1,602 | ||||||||||||
Foreign corporate securities
|
22,415 | 410 | 3,976 | 515 | 26,391 | 925 | ||||||||||||||||||
Foreign government securities
|
26,659 | 585 | 189 | 17 | 26,848 | 602 | ||||||||||||||||||
RMBS
|
7,588 | 212 | 6,700 | 1,175 | 14,288 | 1,387 | ||||||||||||||||||
U.S. Treasury and agency securities
|
13,401 | 530 | 118 | 29 | 13,519 | 559 | ||||||||||||||||||
CMBS
|
3,787 | 29 | 1,363 | 249 | 5,150 | 278 | ||||||||||||||||||
ABS
|
2,713 | 42 | 3,026 | 667 | 5,739 | 709 | ||||||||||||||||||
State and political subdivision securities
|
5,061 | 246 | 988 | 272 | 6,049 | 518 | ||||||||||||||||||
Other fixed maturity securities
|
1 | | | | 1 | | ||||||||||||||||||
Total fixed maturity securities
|
$ | 104,579 | $ | 2,501 | $ | 24,679 | $ | 4,079 | $ | 129,258 | $ | 6,580 | ||||||||||||
Equity Securities:
|
||||||||||||||||||||||||
Common stock
|
$ | 89 | $ | 12 | $ | 1 | $ | | $ | 90 | $ | 12 | ||||||||||||
Non-redeemable preferred stock
|
191 | 9 | 824 | 220 | 1,015 | 229 | ||||||||||||||||||
Total equity securities
|
$ | 280 | $ | 21 | $ | 825 | $ | 220 | $ | 1,105 | $ | 241 | ||||||||||||
Total number of securities in an unrealized loss position
|
5,609 | 1,704 | ||||||||||||||||||||||
28
September 30, 2011 | ||||||||||||||||||||||||
Cost or Amortized Cost | Gross Unrealized Losses | Number of Securities | ||||||||||||||||||||||
Less than |
20% or |
Less than |
20% or |
Less than |
20% or |
|||||||||||||||||||
20% | more | 20% | more | 20% | more | |||||||||||||||||||
(In millions, except number of securities) | ||||||||||||||||||||||||
Fixed Maturity Securities:
|
||||||||||||||||||||||||
Less than six months
|
$ | 50,785 | $ | 5,026 | $ | 1,365 | $ | 1,377 | 2,871 | 290 | ||||||||||||||
Six months or greater but less than nine months
|
1,747 | 349 | 68 | 106 | 200 | 23 | ||||||||||||||||||
Nine months or greater but less than twelve months
|
13,543 | 147 | 367 | 41 | 1,126 | 9 | ||||||||||||||||||
Twelve months or greater
|
11,858 | 2,355 | 1,018 | 908 | 971 | 181 | ||||||||||||||||||
Total
|
$ | 77,933 | $ | 7,877 | $ | 2,818 | $ | 2,432 | ||||||||||||||||
Percentage of amortized cost
|
4 | % | 31 | % | ||||||||||||||||||||
Equity Securities:
|
||||||||||||||||||||||||
Less than six months
|
$ | 571 | $ | 304 | $ | 36 | $ | 89 | 168 | 54 | ||||||||||||||
Six months or greater but less than nine months
|
10 | | 1 | | 7 | 3 | ||||||||||||||||||
Nine months or greater but less than twelve months
|
46 | 1 | 4 | 1 | 14 | 9 | ||||||||||||||||||
Twelve months or greater
|
125 | 223 | 12 | 85 | 11 | 13 | ||||||||||||||||||
Total
|
$ | 752 | $ | 528 | $ | 53 | $ | 175 | ||||||||||||||||
Percentage of cost
|
7 | % | 33 | % | ||||||||||||||||||||
29
December 31, 2010 | ||||||||||||||||||||||||
Cost or Amortized Cost | Gross Unrealized Losses | Number of Securities | ||||||||||||||||||||||
Less than |
20% or |
Less than |
20% or |
Less than |
20% or |
|||||||||||||||||||
20% | more | 20% | more | 20% | more | |||||||||||||||||||
(In millions, except number of securities) | ||||||||||||||||||||||||
Fixed Maturity Securities:
|
||||||||||||||||||||||||
Less than six months
|
$ | 105,301 | $ | 1,403 | $ | 2,348 | $ | 368 | 5,320 | 121 | ||||||||||||||
Six months or greater but less than nine months
|
1,125 | 376 | 29 | 102 | 104 | 29 | ||||||||||||||||||
Nine months or greater but less than twelve months
|
371 | 89 | 28 | 27 | 50 | 9 | ||||||||||||||||||
Twelve months or greater
|
21,627 | 5,546 | 1,863 | 1,815 | 1,245 | 311 | ||||||||||||||||||
Total
|
$ | 128,424 | $ | 7,414 | $ | 4,268 | $ | 2,312 | ||||||||||||||||
Percentage of amortized cost
|
3 | % | 31 | % | ||||||||||||||||||||
Equity Securities:
|
||||||||||||||||||||||||
Less than six months
|
$ | 247 | $ | 94 | $ | 10 | $ | 22 | 106 | 33 | ||||||||||||||
Six months or greater but less than nine months
|
29 | 65 | 5 | 16 | 3 | 2 | ||||||||||||||||||
Nine months or greater but less than twelve months
|
6 | 47 | | 16 | 3 | 2 | ||||||||||||||||||
Twelve months or greater
|
518 | 340 | 56 | 116 | 35 | 14 | ||||||||||||||||||
Total
|
$ | 800 | $ | 546 | $ | 71 | $ | 170 | ||||||||||||||||
Percentage of cost
|
9 | % | 31 | % | ||||||||||||||||||||
30
September 30, 2011 | December 31, 2010 | |||||||
Sector:
|
||||||||
U.S. corporate securities
|
27 | % | 23 | % | ||||
RMBS
|
24 | 20 | ||||||
Foreign corporate securities
|
20 | 14 | ||||||
ABS
|
12 | 10 | ||||||
CMBS
|
6 | 4 | ||||||
Foreign government securities
|
4 | 9 | ||||||
State and political subdivision securities
|
3 | 8 | ||||||
U.S. Treasury and agency securities
|
| 8 | ||||||
Other
|
4 | 4 | ||||||
Total
|
100 | % | 100 | % | ||||
Industry:
|
||||||||
Mortgage-backed
|
30 | % | 24 | % | ||||
Finance
|
25 | 21 | ||||||
Asset-backed
|
12 | 10 | ||||||
Utility
|
8 | 5 | ||||||
Consumer
|
7 | 4 | ||||||
Foreign government securities
|
4 | 9 | ||||||
Communications
|
4 | 2 | ||||||
State and political subdivision securities
|
3 | 8 | ||||||
Industrial
|
3 | 2 | ||||||
U.S. Treasury and agency securities
|
| 8 | ||||||
Other
|
4 | 7 | ||||||
Total
|
100 | % | 100 | % | ||||
31
September 30, 2011 | December 31, 2010 | |||||||||||||||
Fixed Maturity |
Equity |
Fixed Maturity |
Equity |
|||||||||||||
Securities | Securities | Securities | Securities | |||||||||||||
(In millions, except number of securities) | ||||||||||||||||
Number of securities
|
86 | 5 | 107 | 6 | ||||||||||||
Total gross unrealized losses
|
$ | 1,612 | $ | 79 | $ | 2,014 | $ | 103 | ||||||||
Percentage of total gross unrealized losses
|
31 | % | 34 | % | 31 | % | 43 | % |
Non-Redeemable Preferred Stock | ||||||||||||||||||||||||||||||||
All Types of |
||||||||||||||||||||||||||||||||
All Equity |
Non-Redeemable |
Investment Grade | ||||||||||||||||||||||||||||||
Securities | Preferred Stock | All Industries | Financial Services Industry | |||||||||||||||||||||||||||||
Gross |
Gross |
% of All |
Gross |
% of All |
Gross |
% A |
||||||||||||||||||||||||||
Unrealized |
Unrealized |
Equity |
Unrealized |
Non-Redeemable |
Unrealized |
% of All |
Rated or |
|||||||||||||||||||||||||
Losses | Losses | Securities | Losses | Preferred Stock | Losses | Industries | Better | |||||||||||||||||||||||||
(In millions) | (In millions) | (In millions) | ||||||||||||||||||||||||||||||
Less than six months
|
$ | 89 | $ | 67 | 75 | % | $ | 52 | 78 | % | $ | 52 | 100 | % | 52 | % | ||||||||||||||||
Six months or greater but less than twelve months
|
1 | | | % | | | % | | | % | | % | ||||||||||||||||||||
Twelve months or greater
|
85 | 85 | 100 | % | 85 | 100 | % | 85 | 100 | % | 72 | % | ||||||||||||||||||||
All equity securities with gross unrealized losses of 20% or more
|
$ | 175 | $ | 152 | 87 | % | $ | 137 | 90 | % | $ | 137 | 100 | % | 64 | % | ||||||||||||||||
32
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Actively Traded Securities
|
$ | 415 | $ | 463 | ||||
FVO general account securities
|
269 | 131 | ||||||
FVO contractholder-directed unit-linked investments
|
17,874 | 17,794 | ||||||
FVO securities held by CSEs
|
140 | 201 | ||||||
Total trading and other securities at estimated fair
value
|
$ | 18,698 | $ | 18,589 | ||||
Actively Traded Securities at estimated fair value
|
$ | 415 | $ | 463 | ||||
Short sale agreement liabilities at estimated fair
value
|
(67 | ) | (46 | ) | ||||
Net long/short position at estimated fair value
|
$ | 348 | $ | 417 | ||||
Investments pledged to secure short sale agreement liabilities
|
$ | 467 | $ | 465 | ||||
33
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Total gains (losses) on fixed maturity securities:
|
||||||||||||||||
Total OTTI losses recognized
|
$ | (95 | ) | $ | (143 | ) | $ | (525 | ) | $ | (538 | ) | ||||
Less: Noncredit portion of OTTI losses transferred to and
recognized in other comprehensive income (loss)
|
(189 | ) | 24 | (5 | ) | 181 | ||||||||||
Net OTTI losses on fixed maturity securities recognized in
earnings
|
(284 | ) | (119 | ) | (530 | ) | (357 | ) | ||||||||
Fixed maturity securities net gains (losses) on
sales and disposals
|
101 | 54 | 79 | 99 | ||||||||||||
Total gains (losses) on fixed maturity securities
|
(183 | ) | (65 | ) | (451 | ) | (258 | ) | ||||||||
Other net investment gains (losses):
|
||||||||||||||||
Equity securities
|
(3 | ) | (1 | ) | (37 | ) | 100 | |||||||||
Trading and other securities FVO general account
securities changes in estimated fair value
|
(3 | ) | | (3 | ) | | ||||||||||
Mortgage loans
|
45 | 37 | 160 | 20 | ||||||||||||
Real estate and real estate joint ventures
|
139 | (1 | ) | 144 | (50 | ) | ||||||||||
Other limited partnership interests
|
| (4 | ) | 8 | (15 | ) | ||||||||||
Other investment portfolio gains (losses)
|
| (67 | ) | (2 | ) | 9 | ||||||||||
Subtotal investment portfolio gains (losses)
|
(5 | ) | (101 | ) | (181 | ) | (194 | ) | ||||||||
FVO CSEs changes in estimated fair value:
|
||||||||||||||||
Commercial mortgage loans
|
(64 | ) | 114 | (39 | ) | 767 | ||||||||||
Securities
|
2 | (26 | ) | 1 | (47 | ) | ||||||||||
Long-term debt related to commercial mortgage loans
|
56 | (109 | ) | 48 | (744 | ) | ||||||||||
Long-term debt related to securities
|
(1 | ) | 37 | (8 | ) | 48 | ||||||||||
Other gains (losses) (1)
|
(43 | ) | (257 | ) | (130 | ) | (154 | ) | ||||||||
Subtotal FVO CSEs and other gains (losses)
|
(50 | ) | (241 | ) | (128 | ) | (130 | ) | ||||||||
Total net investment gains (losses)
|
$ | (55 | ) | $ | (342 | ) | $ | (309 | ) | $ | (324 | ) | ||||
(1) | Other gains (losses) for the three months and nine months ended September 30, 2011 includes a loss of $0 and $87 million, respectively, related to the sale of the Companys investment in MSI MetLife. See Note 2. Other gains (losses) for both the three months and nine months ended September 30, 2011 includes a loss of $65 million related to goodwill impairment. See Note 6. |
34
Three Months Ended September 30, | ||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
Fixed Maturity Securities | Equity Securities | Total | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Proceeds
|
$ | 19,368 | $ | 10,747 | $ | 169 | $ | 96 | $ | 19,537 | $ | 10,843 | ||||||||||||
Gross investment gains
|
$ | 252 | $ | 190 | $ | 9 | $ | 7 | $ | 261 | $ | 197 | ||||||||||||
Gross investment losses
|
(151 | ) | (136 | ) | (7 | ) | (7 | ) | (158 | ) | (143 | ) | ||||||||||||
Total OTTI losses recognized in earnings:
|
||||||||||||||||||||||||
Credit-related
|
(269 | ) | (107 | ) | | | (269 | ) | (107 | ) | ||||||||||||||
Other (1)
|
(15 | ) | (12 | ) | (5 | ) | (1 | ) | (20 | ) | (13 | ) | ||||||||||||
Total OTTI losses recognized in earnings
|
(284 | ) | (119 | ) | (5 | ) | (1 | ) | (289 | ) | (120 | ) | ||||||||||||
Net investment gains (losses)
|
$ | (183 | ) | $ | (65 | ) | $ | (3 | ) | $ | (1 | ) | $ | (186 | ) | $ | (66 | ) | ||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
Fixed Maturity Securities | Equity Securities | Total | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Proceeds
|
$ | 55,216 | $ | 32,585 | $ | 974 | $ | 539 | $ | 56,190 | $ | 33,124 | ||||||||||||
Gross investment gains
|
$ | 680 | $ | 568 | $ | 83 | $ | 114 | $ | 763 | $ | 682 | ||||||||||||
Gross investment losses
|
(601 | ) | (469 | ) | (62 | ) | (11 | ) | (663 | ) | (480 | ) | ||||||||||||
Total OTTI losses recognized in earnings:
|
||||||||||||||||||||||||
Credit-related
|
(382 | ) | (339 | ) | | | (382 | ) | (339 | ) | ||||||||||||||
Other (1)
|
(148 | ) | (18 | ) | (58 | ) | (3 | ) | (206 | ) | (21 | ) | ||||||||||||
Total OTTI losses recognized in earnings
|
(530 | ) | (357 | ) | (58 | ) | (3 | ) | (588 | ) | (360 | ) | ||||||||||||
Net investment gains (losses)
|
$ | (451 | ) | $ | (258 | ) | $ | (37 | ) | $ | 100 | $ | (488 | ) | $ | (158 | ) | |||||||
(1) | Other OTTI losses recognized in earnings include impairments on equity securities, impairments on 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 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. |
35
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Sector:
|
||||||||||||||||
U.S. and foreign corporate securities by industry:
|
||||||||||||||||
Finance
|
$ | 7 | $ | 54 | $ | 48 | $ | 82 | ||||||||
Consumer
|
6 | 8 | 35 | 31 | ||||||||||||
Communications
|
12 | 9 | 26 | 12 | ||||||||||||
Utility
|
6 | | 7 | 3 | ||||||||||||
Total U.S. and foreign corporate securities
|
31 | 71 | 116 | 128 | ||||||||||||
Foreign government securities
|
206 | | 295 | | ||||||||||||
RMBS
|
34 | 19 | 88 | 76 | ||||||||||||
ABS
|
8 | 26 | 23 | 89 | ||||||||||||
CMBS
|
5 | 3 | 8 | 64 | ||||||||||||
Total
|
$ | 284 | $ | 119 | $ | 530 | $ | 357 | ||||||||
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Sector:
|
||||||||||||||||
Non-redeemable preferred stock
|
$ | | $ | | $ | 38 | $ | | ||||||||
Common stock
|
5 | 1 | 20 | 3 | ||||||||||||
Total
|
$ | 5 | $ | 1 | $ | 58 | $ | 3 | ||||||||
Industry:
|
||||||||||||||||
Financial services industry perpetual hybrid
securities
|
$ | | $ | | $ | 38 | $ | | ||||||||
Other industries
|
5 | 1 | 20 | 3 | ||||||||||||
Total
|
$ | 5 | $ | 1 | $ | 58 | $ | 3 | ||||||||
36
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Balance, beginning of period
|
$ | 401 | $ | 491 | $ | 443 | $ | 581 | ||||||||
Additions:
|
||||||||||||||||
Initial impairments credit loss OTTI recognized on
securities not previously impaired
|
6 | 13 | 32 | 94 | ||||||||||||
Additional impairments credit loss OTTI recognized
on securities previously impaired
|
39 | 34 | 79 | 104 | ||||||||||||
Reductions:
|
||||||||||||||||
Due to sales (maturities, pay downs or prepayments) during the
period of securities previously impaired as credit loss OTTI
|
(8 | ) | (97 | ) | (63 | ) | (231 | ) | ||||||||
Due to securities de-recognized in connection with the adoption
of new guidance related to the consolidation of VIEs
|
| | | (100 | ) | |||||||||||
Due to securities impaired to net present value of expected
future cash flows
|
(1 | ) | | (45 | ) | | ||||||||||
Due to increases in cash flows accretion of previous
credit loss OTTI
|
| (2 | ) | (9 | ) | (9 | ) | |||||||||
Balance, end of period
|
$ | 437 | $ | 439 | $ | 437 | $ | 439 | ||||||||
37
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Investment income:
|
||||||||||||||||
Fixed maturity securities
|
$ | 3,770 | $ | 3,060 | $ | 11,244 | $ | 9,126 | ||||||||
Equity securities
|
28 | 19 | 106 | 83 | ||||||||||||
Trading and other securities Actively Traded
Securities and FVO general account securities (1)
|
(38 | ) | 45 | 6 | 56 | |||||||||||
Mortgage loans
|
806 | 713 | 2,331 | 2,081 | ||||||||||||
Policy loans
|
162 | 155 | 482 | 488 | ||||||||||||
Real estate and real estate joint ventures
|
213 | 131 | 557 | 300 | ||||||||||||
Other limited partnership interests
|
180 | 170 | 582 | 596 | ||||||||||||
Cash, cash equivalents and short-term investments
|
41 | 26 | 131 | 64 | ||||||||||||
International joint ventures (2)
|
7 | 19 | (3 | ) | (61 | ) | ||||||||||
Other
|
82 | (7 | ) | 151 | 181 | |||||||||||
Subtotal
|
5,251 | 4,331 | 15,587 | 12,914 | ||||||||||||
Less: Investment expenses
|
271 | 222 | 774 | 654 | ||||||||||||
Subtotal, net
|
4,980 | 4,109 | 14,813 | 12,260 | ||||||||||||
Trading and other securities FVO
contractholder-directed unit-linked investments (1)
|
(824 | ) | 149 | (437 | ) | 161 | ||||||||||
FVO CSEs:
|
||||||||||||||||
Commercial mortgage loans
|
95 | 102 | 286 | 312 | ||||||||||||
Securities
|
6 | 4 | 7 | 12 | ||||||||||||
Subtotal
|
(723 | ) | 255 | (144 | ) | 485 | ||||||||||
Net investment income
|
$ | 4,257 | $ | 4,364 | $ | 14,669 | $ | 12,745 | ||||||||
(1) | Changes in estimated fair value subsequent to purchase included in net investment income were: |
Trading and other securities Actively Traded
Securities and FVO general account securities
|
$ | (46 | ) | $ | 29 | $ | (25 | ) | $ | 16 | ||||||
Trading and other securities FVO
contractholder-directed unit-linked investments
|
$ | (873 | ) | $ | 124 | $ | (641 | ) | $ | 111 |
(2) | Amounts are presented net of changes in estimated fair value of derivatives related to economic hedges of the Companys investment in these equity method international joint venture investments that do not qualify for hedge accounting of $0 and ($23) million for the three months and nine months ended September 30, 2011, respectively, and ($12) million and $65 million for the three months and nine months ended September 30, 2010, respectively. |
38
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Securities on loan:
|
||||||||
Amortized cost
|
$ | 22,488 | $ | 23,715 | ||||
Estimated fair value
|
$ | 26,040 | $ | 24,230 | ||||
Aging of cash collateral liability:
|
||||||||
Open (1)
|
$ | 2,440 | $ | 2,752 | ||||
Less than thirty days
|
14,993 | 12,301 | ||||||
Thirty days or greater but less than sixty days
|
5,405 | 4,399 | ||||||
Sixty days or greater but less than ninety days
|
2,057 |