10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 ______________________________________

Form 10-Q

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2018

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO

Commission file number: 001-15787

 ________________________________________

MetLife, Inc.

(Exact name of registrant as specified in its charter)

Delaware	13-4075851
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
200 Park Avenue, New York, N.Y.	10166-0188
(Address of principal executive offices)	(Zip Code)

(212) 578-9500

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	þ	Accelerated filer	¨
Non-accelerated filer (Do not check if a smaller reporting company)	¨	Smaller reporting company	¨
		Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨No þ

AtApril 30, 2018, 1,016,530,764 shares of the registrant’s common stock, $0.01 par value per share, were outstanding.

Table of Contents

		Page
Part I — Financial Information
Item 1.	Financial Statements (at March 31, 2018 (Unaudited) and December 31, 2017 and for the Three Months Ended March 31, 2018 and 2017 (Unaudited))
	Interim Condensed Consolidated Balance Sheets	3
	Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)	4
	Interim Condensed Consolidated Statements of Equity	5
	Interim Condensed Consolidated Statements of Cash Flows	6
	Notes to the Interim Condensed Consolidated Financial Statements:
	Note 1 — Business, Basis of Presentation and Summary of Significant Accounting Policies	7
	Note 2 — Segment Information	13
	Note 3 — Dispositions	18
	Note 4 — Insurance	24
	Note 5 — Closed Block	26
	Note 6 — Investments	29
	Note 7 — Derivatives	42
	Note 8 — Fair Value	57
	Note 9 — Equity	75
	Note 10 — Other Expenses	79
	Note 11 — Employee Benefit Plans	80
	Note 12 — Income Tax	80
	Note 13 — Earnings Per Common Share	81
	Note 14 — Contingencies, Commitments and Guarantees	82
	Note 15 — Subsequent Events	89
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	90
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	159
Item 4.	Controls and Procedures	160
Part II — Other Information
Item 1.	Legal Proceedings	160
Item 1A.	Risk Factors	161
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	161
Item 6.	Exhibits	162
Signatures		164

As used in this Form 10‑Q, “MetLife,” the “Company,” “we,” “our” and “us” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its subsidiaries and affiliates.

Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10‑Q, including Management’s Discussion and Analysis of Financial Condition and Results of Operations, may contain or incorporate by reference information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events. These statements can be identified by the fact that they do not relate strictly to historical or current facts. They use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “will be,” “will not,” and other words and terms of similar meaning, or are tied to future periods, in connection with a discussion of future financial performance. In particular, these include statements relating to future actions, prospective services or products, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, trends in operations and financial results.

Any or all forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining the actual future results of MetLife, Inc., its subsidiaries and affiliates. These statements are based on current expectations and the current economic environment. They involve a number of risks and uncertainties that are difficult to predict. These statements are not guarantees of future performance. Actual results could differ materially from those expressed or implied in the forward-looking statements. Risks, uncertainties, and other factors that might cause such differences include the risks, uncertainties and other factors identified in MetLife, Inc.’s filings with the U.S. Securities and Exchange Commission. These factors include: (1) adverse effects which may arise in connection with the material weaknesses in our internal control over financial reporting or our failure to promptly remediate them; (2) difficult conditions in the global capital markets; (3) increased volatility and disruption of the global capital and credit markets, which may affect our ability to meet liquidity needs and access capital, including through our credit facilities, generate fee income and market-related revenue and finance statutory reserve requirements and may require us to pledge collateral or make payments related to declines in value of specified assets, including assets supporting risks ceded to certain of our captive reinsurers or hedging arrangements associated with those risks; (4) exposure to global financial and capital market risks, including as a result of the United Kingdom’s notice of withdrawal from the European Union or other disruption in global political, security or economic conditions; (5) impact on us of comprehensive financial services regulation reform; (6) numerous rulemaking initiatives required or permitted by the Dodd-Frank Wall Street Reform and Consumer Protection Act which may impact how we conduct our business, including those compelling the liquidation of certain financial institutions; (7) regulatory, legislative or tax changes relating to our insurance, international, or other operations that may affect the cost of, or demand for, our products or services, or increase the cost or administrative burdens of providing benefits to employees; (8) adverse results or other consequences from litigation, arbitration or regulatory investigations; (9) potential liquidity and other risks resulting from our participation in a securities lending program and other transactions; (10) investment losses and defaults, and changes to investment valuations; (11) changes in assumptions related to investment valuations, deferred policy acquisition costs, deferred sales inducements, value of business acquired or goodwill; (12) impairments of goodwill and realized losses or market value impairments to illiquid assets; (13) defaults on our mortgage loans; (14) the defaults or deteriorating credit of other financial institutions that could adversely affect us; (15) economic, political, legal, currency and other risks relating to our international operations, including with respect to fluctuations of exchange rates; (16) downgrades in our claims paying ability, financial strength or credit ratings; (17) a deterioration in the experience of the closed block established in connection with the reorganization of Metropolitan Life Insurance Company; (18) availability and effectiveness of reinsurance, hedging or indemnification arrangements, as well as any default or failure of counterparties to perform; (19) differences between actual claims experience and underwriting and reserving assumptions; (20) ineffectiveness of risk management policies and procedures; (21) catastrophe losses; (22) increasing cost and limited market capacity for statutory life insurance reserve financings; (23) heightened competition, including with respect to pricing, entry of new competitors, consolidation of distributors, the development of new products by new and existing competitors, and for personnel; (24) exposure to losses related to variable annuity guarantee benefits, including from significant and sustained downturns or extreme volatility in equity markets, reduced interest rates, unanticipated policyholder behavior, mortality or longevity, and any adjustment for nonperformance risk; (25) our ability to address difficulties, unforeseen liabilities, asset impairments, or rating agency actions arising from (a) business acquisitions and integrating and managing the growth of such acquired businesses, (b) dispositions of businesses via sale, initial public offering, spin-off or otherwise, including failure to achieve projected operational benefit from such transactions and any restrictions, liabilities, losses or indemnification obligations arising from any transitional services or tax arrangements related to the separation of any business, or from the failure of such a separation to qualify for any intended tax-free treatment, (c) entry into joint ventures, or (d) legal entity reorganizations; (26) unanticipated or adverse developments that could adversely affect our achieving expected operational or other benefits from the separation of Brighthouse Financial, Inc. and its subsidiaries (“Brighthouse”); (27) our equity market exposure to Brighthouse Financial, Inc.; (28) liabilities, losses or indemnification obligations arising from our transitional services, investment management or tax arrangements or other agreements with Brighthouse; (29) failure of the separation of Brighthouse to qualify for intended tax-free treatment; (30) legal, regulatory and other restrictions affecting MetLife, Inc.’s ability to pay dividends and repurchase common stock; (31) MetLife, Inc.’s and its subsidiary holding companies’ primary reliance, as holding companies, on dividends from subsidiaries to meet free cash flow targets and debt payment obligations and the applicable regulatory restrictions on the ability of the subsidiaries to pay such dividends; (32) the possibility that MetLife, Inc.’s Board of Directors may influence the outcome of stockholder votes through the voting provisions of the MetLife Policyholder Trust; (33) changes in accounting standards, practices and/or policies; (34) increased expenses relating to pension and postretirement benefit plans, as well as health care and other employee benefits; (35) inability to protect our intellectual property rights or claims of infringement of the intellectual property rights of others; (36) difficulties in marketing and distributing products through our distribution channels; (37) provisions of laws and our incorporation documents that may delay, deter or prevent takeovers and corporate combinations involving MetLife; (38) the effects of business disruption or economic contraction due to disasters such as terrorist attacks, cyberattacks, other hostilities, or natural catastrophes, including any related impact on the value of our investment portfolio, our disaster recovery systems, cyber- or other information security systems and management continuity planning; (39) any failure to protect the confidentiality of client information; (40) the effectiveness of our programs and practices in avoiding giving our associates incentives to take excessive risks; (41) the impact of technological changes on our businesses; and (42) other risks and uncertainties described from time to time in MetLife, Inc.’s filings with the U.S. Securities and Exchange Commission.

MetLife, Inc. does not undertake any obligation to publicly correct or update any forward-looking statement if MetLife, Inc. later becomes aware that such statement is not likely to be achieved. Please consult any further disclosures MetLife, Inc. makes on related subjects in reports to the U.S. Securities and Exchange Commission.

Corporate Information

We announce financial and other information about MetLife to our investors through the MetLife Investor Relations web page at www.metlife.com, as well as U.S. Securities and Exchange Commission filings, news releases, public conference calls and webcasts. MetLife encourages investors to visit the Investor Relations web page from time to time, as information is updated and new information is posted. The information found on our website is not incorporated by reference into this Quarterly Report on Form 10-Q or in any other report or document we file with the U.S. Securities and Exchange Commission, and any references to our website are intended to be inactive textual references only.

Note Regarding Reliance on Statements in Our Contracts

See “Exhibits — Note Regarding Reliance on Statements in Our Contracts” for information regarding agreements included as exhibits to this Quarterly Report on Form 10-Q.

2

Part I — Financial Information

Item 1. Financial Statements

MetLife, Inc.

Interim Condensed Consolidated Balance Sheets

March 31, 2018 (Unaudited) and December 31, 2017

(In millions, except share and per share data)

	March 31, 2018			December 31, 2017
Assets
Investments:
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $287,099 and $286,069, respectively)	$	304,711		$	308,931
Equity securities, at estimated fair value	1,544			2,513
Contractholder-directed equity securities and fair value option securities, at estimated fair value (includes $6 and $6, respectively, relating to variable interest entities)	16,444			16,745
Mortgage loans (net of valuation allowances of $327 and $314, respectively; includes $438 and $520, respectively, under the fair value option)	71,055			68,731
Policy loans	9,744			9,669
Real estate and real estate joint ventures (includes $699 and $25, respectively, of real estate held-for-sale)	9,862			9,637
Other limited partnership interests	5,876			5,708
Short-term investments, principally at estimated fair value	5,121			4,870
Other invested assets (includes $123 and $125, respectively, relating to variable interest entities)	17,486			17,263
Total investments	441,843			444,067
Cash and cash equivalents, principally at estimated fair value (includes $7 and $12, respectively, relating to variable interest entities)	13,927			12,701
Accrued investment income	3,638			3,524
Premiums, reinsurance and other receivables (includes $2 and $3, respectively, relating to variable interest entities)	19,368			18,423
Deferred policy acquisition costs and value of business acquired	19,330			18,419
Goodwill	9,733			9,590
Other assets (includes $3 and $2, respectively, relating to variable interest entities)	8,387			8,167
Separate account assets	196,358			205,001
Total assets	$	712,584		$	719,892
Liabilities and Equity
Liabilities
Future policy benefits	$	180,348		$	177,974
Policyholder account balances	184,289			182,518
Other policy-related balances	16,023			15,515
Policyholder dividends payable	672			682
Policyholder dividend obligation	1,277			2,121
Payables for collateral under securities loaned and other transactions	26,151			25,723
Short-term debt	526			477
Long-term debt (includes $5 and $6, respectively, at estimated fair value, relating to variable interest entities)	15,707			15,686
Collateral financing arrangement	1,108			1,121
Junior subordinated debt securities	3,145			3,144
Current income tax payable	155			311
Deferred income tax liability	6,304			6,767
Other liabilities (includes $2 and $3, respectively, relating to variable interest entities)	24,013			23,982
Separate account liabilities	196,358			205,001
Total liabilities	656,076			661,022
Contingencies, Commitments and Guarantees (Note 14)
Equity
MetLife, Inc.’s stockholders’ equity:
Preferred stock, par value $0.01 per share; $2,600 and $2,100 aggregate liquidation preference, respectively	—			—
Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,170,644,215 and 1,168,710,101 shares issued, respectively; 1,024,117,183 and 1,043,588,396 shares outstanding, respectively	12			12
Additional paid-in capital	31,653			31,111
Retained earnings	26,453			26,527
Treasury stock, at cost; 146,527,032 and 125,121,705 shares, respectively	(7,442		)	(6,401		)
Accumulated other comprehensive income (loss)	5,634			7,427
Total MetLife, Inc.’s stockholders’ equity	56,310			58,676
Noncontrolling interests	198			194
Total equity	56,508			58,870
Total liabilities and equity	$	712,584		$	719,892

See accompanying notes to the interim condensed consolidated financial statements.

3

MetLife, Inc.

Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

For the Three Months Ended March 31, 2018 and 2017 (Unaudited)

(In millions, except per share data)

	Three Months Ended March 31,
	2018			2017
Revenues
Premiums	$	9,178		$	8,965
Universal life and investment-type product policy fees	1,392			1,360
Net investment income	3,745			4,421
Other revenues	474			342
Net investment gains (losses)	(333		)	88
Net derivative gains (losses)	349			(212		)
Total revenues	14,805			14,964
Expenses
Policyholder benefits and claims	8,718			8,863
Interest credited to policyholder account balances	769			1,451
Policyholder dividends	297			310
Other expenses	3,365			3,268
Total expenses	13,149			13,892
Income (loss) from continuing operations before provision for income tax	1,656			1,072
Provision for income tax expense (benefit)	399			120
Income (loss) from continuing operations, net of income tax	1,257			952
Income (loss) from discontinued operations, net of income tax	—			(76		)
Net income (loss)	1,257			876
Less: Net income (loss) attributable to noncontrolling interests	4			3
Net income (loss) attributable to MetLife, Inc.	1,253			873
Less: Preferred stock dividends	6			6
Net income (loss) available to MetLife, Inc.’s common shareholders	$	1,247		$	867
Comprehensive income (loss)	$	(1,448	)	$	1,907
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of income tax	4			4
Comprehensive income (loss) attributable to MetLife, Inc.	$	(1,452	)	$	1,903

Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders:
Basic	$	1.20	$	0.87
Diluted	$	1.19	$	0.86
Net income (loss) available to MetLife, Inc.’s common shareholders per common share:
Basic	$	1.20	$	0.80
Diluted	$	1.19	$	0.79
Cash dividends declared per common share	$	0.400	$	0.400

See accompanying notes to the interim condensed consolidated financial statements.

4

MetLife, Inc.

Interim Condensed Consolidated Statements of Equity

For the Three Months Ended March 31, 2018 and 2017 (Unaudited)

(In millions)

	Preferred Stock		Common Stock		Additional Paid-in Capital		Retained Earnings			Treasury Stock at Cost			Accumulated Other Comprehensive Income (Loss)			Total MetLife, Inc.’s Stockholders’ Equity			Noncontrolling Interests		Total Equity
Balance at December 31, 2017	$	—	$	12	$	31,111	$	26,527		$	(6,401	)	$	7,427		$	58,676		$	194	$	58,870
Cumulative effects of changes in accounting principles, net of income tax (Note 1)	—		—		—		(905		)	—			912			7			—		7
Balance at January 1, 2018	—		12		31,111		25,622			(6,401		)	8,339			58,683			194		58,877
Preferred stock issuance	—				494											494					494
Treasury stock acquired in connection with share repurchases										(1,041		)				(1,041		)			(1,041		)
Stock-based compensation					48											48					48
Dividends on preferred stock							(6		)							(6		)			(6		)
Dividends on common stock							(416		)							(416		)			(416		)
Change in equity of noncontrolling interests																—			—		—
Net income (loss)							1,253									1,253			4		1,257
Other comprehensive income (loss), net of income tax													(2,705		)	(2,705		)	—		(2,705		)
Balance at March 31, 2018	$	—	$	12	$	31,653	$	26,453		$	(7,442	)	$	5,634		$	56,310		$	198	$	56,508

	Preferred Stock		Common Stock		Additional Paid-in Capital		Retained Earnings			Treasury Stock at Cost			Accumulated Other Comprehensive Income (Loss)		Total MetLife, Inc.’s Stockholders’ Equity			Noncontrolling Interests		Total Equity
Balance at December 31, 2016, as previously reported	$	—	$	12	$	30,944	$	34,480		$	(3,474	)	$	5,347	$	67,309		$	171	$	67,480
Prior period revisions (Note 1)	—		—		—		203			—			19		222			—		222
Balance at December 31, 2016	—		12		30,944		34,683			(3,474		)	5,366		67,531			171		67,702
Treasury stock acquired in connection with share repurchases										(858		)			(858		)			(858		)
Stock-based compensation					46										46					46
Dividends on preferred stock							(6		)						(6		)			(6		)
Dividends on common stock							(437		)						(437		)			(437		)
Change in equity of noncontrolling interests															—			4		4
Net income (loss)							873								873			3		876
Other comprehensive income (loss), net of income tax													1,030		1,030			1		1,031
Balance at March 31, 2017	$	—	$	12	$	30,990	$	35,113		$	(4,332	)	$	6,396	$	68,179		$	179	$	68,358

See accompanying notes to the interim condensed consolidated financial statements.

5

MetLife, Inc.

Interim Condensed Consolidated Statements of Cash Flows

For the Three Months Ended March 31, 2018 and 2017

(Unaudited)

(In millions)

	Three Months Ended March 31,
	2018			2017
Net cash provided by (used in) operating activities	$	1,296		$	2,098
Cash flows from investing activities
Sales, maturities and repayments of:
Fixed maturity securities	26,053			23,086
Equity securities	187			188
Mortgage loans	2,076			1,776
Real estate and real estate joint ventures	128			39
Other limited partnership interests	139			461
Purchases of:
Fixed maturity securities	(24,220		)	(22,484		)
Equity securities	(51		)	(299		)
Mortgage loans	(4,024		)	(3,430		)
Real estate and real estate joint ventures	(242		)	(341		)
Other limited partnership interests	(260		)	(362		)
Cash received in connection with freestanding derivatives	1,974			2,515
Cash paid in connection with freestanding derivatives	(2,192		)	(3,372		)
Net change in policy loans	(25		)	(20		)
Net change in short-term investments	(160		)	(1,892		)
Net change in other invested assets	46			(43		)
Other, net	86			(98		)
Net cash provided by (used in) investing activities	(485		)	(4,276		)
Cash flows from financing activities
Policyholder account balances:
Deposits	24,861			21,271
Withdrawals	(24,447		)	(19,100		)
Net change in payables for collateral under securities loaned and other transactions	667			391
Long-term debt issued	14			—
Long-term debt repaid	(32		)	(4		)
Collateral financing arrangements repaid	(13		)	(12		)
Financing element on certain derivative instruments and other derivative related transactions, net	37			188
Treasury stock acquired in connection with share repurchases	(1,041		)	(858		)
Preferred stock issued, net of issuance costs	494			—
Dividends on preferred stock	(6		)	(6		)
Dividends on common stock	(416		)	(437		)
Other, net	100			66
Net cash provided by (used in) financing activities	218			1,499
Effect of change in foreign currency exchange rates on cash and cash equivalents balances	197			213
Change in cash and cash equivalents	1,226			(466		)
Cash and cash equivalents, beginning of period	12,701			17,877
Cash and cash equivalents, end of period	$	13,927		$	17,411
Cash and cash equivalents, of disposed subsidiary, beginning of period	$	—		$	5,226
Cash and cash equivalents, of disposed subsidiary, end of period	$	—		$	5,810
Cash and cash equivalents, from continuing operations, beginning of period	$	12,701		$	12,651
Cash and cash equivalents, from continuing operations, end of period	$	13,927		$	11,601

Supplemental disclosures of cash flow information
Net cash paid (received) for:
Interest	$	243	$	255
Income tax	$	146	$	109

See accompanying notes to the interim condensed consolidated financial statements.

6

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies

Business

“MetLife” and the “Company” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its subsidiaries and affiliates. MetLife is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management. MetLife is organized into five segments: U.S.; Asia; Latin America; Europe, the Middle East and Africa (“EMEA”); and MetLife Holdings.

Basis of Presentation

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates.

Consolidation

The accompanying interim condensed consolidated financial statements include the accounts of MetLife, Inc. and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated.

The Company uses the equity method of accounting for equity securities when it has significant influence or at least 20% interest and for real estate joint ventures and other limited partnership interests (“investees”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. Subsequent to the adoption of guidance relating to the recognition and measurement of financial instruments on January 1, 2018, the Company accounts for interests in unconsolidated entities that are not accounted for under the equity method, at estimated fair value. Such investments were previously accounted for under the cost method of accounting. See “— Adoption of New Accounting Pronouncements.”

Discontinued Operations

The results of operations of a component of the Company that has either been disposed of or is classified as held-for-sale are reported in discontinued operations if certain criteria are met. A disposal of a component is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results.

On August 4, 2017, MetLife, Inc. completed the separation of Brighthouse Financial, Inc. and its subsidiaries (“Brighthouse”) through a distribution of 96,776,670 shares of Brighthouse Financial, Inc. common stock to the MetLife, Inc. common shareholders (the “Separation”). The results of Brighthouse are reflected in MetLife, Inc.’s interim condensed consolidated financial statements as discontinued operations and, therefore, are presented as income (loss) from discontinued operations on the consolidated statements of operations and comprehensive income (loss). Prior period results have been revised to reflect discontinued operations. Intercompany transactions between the Company and Brighthouse prior to the Separation have been eliminated. Transactions between the Company and Brighthouse after the Separation are reflected in continuing operations for the Company. See Note 3 for information on discontinued operations and transactions with Brighthouse.

Reclassifications

Certain amounts in the prior year periods’ interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform to the 2018 presentation as discussed throughout the Notes to the Interim Condensed Consolidated Financial Statements.

7

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Revisions

As discussed in Note 1 of the Notes to the Consolidated Financial Statements included in MetLife, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Annual Report”), the Company made adjustments for group annuity reserves and assumed variable annuity guarantee reserves for which amounts previously reported have been immaterially restated. In addition, the Company has corrected other unrelated immaterial errors which were previously recorded in the periods the Company identified them.

A summary of the revisions to prior period net income (loss) available to MetLife, Inc.’s common shareholders is shown in the table below:

	Three Months Ended March 31,
	2017
	(In millions)
Assumed variable annuity guarantee reserves	$	14
Group annuity reserves	(9		)
Other revisions to continuing operations, net	63
Impact to income (loss) from continuing operations before provision for income tax	68
Provision for income tax expense (benefit)	24
Impact to income (loss) from continuing operations, net of income tax	44
Other revisions to discontinued operations, net of income tax	3
Impact to net income (loss) available to MetLife, Inc.’s common shareholders	$	47

8

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

The impact of the revisions is shown in the tables below:

	Three Months Ended March 31,
	2017
Interim Condensed Consolidated Statements of Operations  and Comprehensive Income (Loss)	As Previously Reported			Discontinued Operations (1)			Revisions			As Revised
	(In millions, except per share data)
Revenues
Other net investment gains (losses)	$	8		$	55		$	25		$	88
Net investment gains (losses)	$	8		$	55		$	25		$	88
Net derivatives gains (losses)	$	(926	)	$	700		$	14		$	(212	)
Total revenues	$	16,269		$	(1,344	)	$	39		$	14,964
Expenses
Policyholder benefits and claims	$	9,859		$	(1,002	)	$	6		$	8,863
Other expenses	$	3,564		$	(261	)	$	(35	)	$	3,268
Total expenses	$	15,452		$	(1,531	)	$	(29	)	$	13,892
Income (loss) from continuing operations before provision for income tax	$	817		$	187		$	68		$	1,072
Provision for income tax expense (benefit)	$	(12	)	$	108		$	24		$	120
Income (loss) from continuing operations, net of income tax	$	829		$	79		$	44		$	952
Income (loss) from discontinued operations, net of income tax	$	—		$	(79	)	$	3		$	(76	)
Net income (loss)	$	829		$	—		$	47		$	876
Net income (loss) attributable to MetLife, Inc.	$	826		$	—		$	47		$	873
Net income (loss) available to MetLife, Inc.’s common shareholders	$	820		$	—		$	47		$	867
Comprehensive income (loss)	$	1,879		$	—		$	28		$	1,907
Comprehensive income (loss) attributable to MetLife, Inc.	$	1,875		$	—		$	28		$	1,903
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders:
Basic	$	0.75		$	0.07		$	0.05		$	0.87
Diluted	$	0.75		$	0.07		$	0.04		$	0.86
Net income (loss) available to MetLife, Inc.’s common shareholders per common share:
Basic	$	0.75		$	—		$	0.05		$	0.80
Diluted	$	0.75		$	—		$	0.04		$	0.79

__________________

(1) See Note 3 for additional information on discontinued operations. Revisions include $5 million and $2 million of net investment gains (losses) and provision for income tax expense (benefit), respectively, related to discontinued operations.

9

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Interim Condensed Consolidated Statements of Equity	As Previously Reported		Revisions			As Revised
	(In millions)
Retained Earnings
Balance at December 31, 2016	$	34,480	$	203		$	34,683
Net income (loss)	$	826	$	47		$	873
Balance at March 31, 2017	$	34,863	$	250		$	35,113
Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2016	$	5,347	$	19		$	5,366
Other comprehensive income (loss), net of income tax	$	1,049	$	(19	)	$	1,030
Balance at March 31, 2017	$	6,396	$	—		$	6,396
Total MetLife, Inc.’s Stockholders’ Equity
Balance at December 31, 2016	$	67,309	$	222		$	67,531
Balance at March 31, 2017	$	67,929	$	250		$	68,179
Total Equity
Balance at December 31, 2016	$	67,480	$	222		$	67,702
Balance at March 31, 2017	$	68,108	$	250		$	68,358

The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2017 consolidated balance sheet data was derived from audited consolidated financial statements included in the 2017 Annual Report, which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2017 Annual Report.

Adoption of New Accounting Pronouncements

Effective January 1, 2018, the Company early adopted guidance relating to income taxes. The new guidance was applied in the period of adoption. Current GAAP guidance requires that the effect of a change in tax laws or rates on deferred tax liabilities or assets to be included in income from continuing operations in the reporting period that includes the enactment date, even if the related income tax effects were originally charged or credited directly to accumulated other comprehensive income (“AOCI”). The Company’s accounting policy for the release of stranded tax effects in AOCI is on an aggregate portfolio basis. The new guidance allows a reclassification of AOCI to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (“U.S. Tax Reform”). Due to U.S. Tax Reform and the change in corporate tax rates, at December 22, 2017, the Company reported stranded tax effects in AOCI related to unrealized gains and losses on available-for-sale (“AFS”) securities, cumulative foreign translation adjustments and deferred costs on pension benefit plans. With the adoption of the guidance, the Company released these stranded tax effects in AOCI resulting in a decrease to retained earnings as of January 1, 2018 of $1.2 billion with a corresponding increase to AOCI.

Effective January 1, 2018, the Company prospectively adopted guidance relating to stock compensation. The new guidance includes guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Accounting Standards Codification (“ASC”) Topic 718,Compensation - Stock Compensation. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

Effective January 1, 2018 the Company retrospectively adopted guidance on the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires that an employer that offers to its employees defined benefit pension or other postretirement benefit plans report the service cost component in the same line item or items as other compensation costs. The other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item is not used, the line item used in the income statement to present the other components of net periodic benefit cost must be disclosed. In addition, the guidance allows only the service cost component to be eligible for capitalization when applicable. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

10

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to de-recognition of nonfinancial assets. The new guidance clarifies the scope and accounting of a financial asset that meets the definition of an “in-substance nonfinancial asset” and defines the term, “in-substance nonfinancial asset.” The new guidance also adds guidance for partial sales of nonfinancial assets. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

Effective January 1, 2018, the Company retrospectively adopted guidance relating to restricted cash. The new guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As a result, the new guidance requires that amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance does not provide a definition of restricted cash or restricted cash equivalents. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to tax accounting for intra-entity transfers of assets. Prior guidance prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. The new guidance requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

Effective January 1, 2018, the Company retrospectively adopted guidance relating to cash flow statement presentation. The new guidance addresses diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to recognition and measurement of financial instruments. The guidance changes the current accounting guidance related to (i) the classification and measurement of certain equity investments, (ii) the presentation of changes in the fair value of financial liabilities measured under the fair value option (“FVO”) that are due to instrument-specific credit risk, and (iii) certain disclosures associated with the fair value of financial instruments. Effective January 1, 2018, there will no longer be a requirement to assess equity securities for impairment since such securities will be measured at fair value through net income. Additionally, there will no longer be a requirement to assess equity securities for embedded derivatives requiring bifurcation. The adoption of this guidance resulted in a $328 million, net of income tax, increase to retained earnings largely offset by a decrease to AOCI that was primarily attributable to $1.7 billion of equity securities previously classified and measured as equity securities AFS. At December 31, 2017, equity securities of $16.0 billion primarily associated with contractholder-directed investments are accounted for using the FVO and therefore were unaffected by the new guidance. The Company has included the required disclosures related to equity securities held at March 31, 2018 within Note 6.

Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to revenue recognition. The new guidance supersedes nearly all existing revenue recognition guidance under U.S. GAAP. However, it does not impact the accounting for insurance and investment contracts within the scope of ASC Topic 944,Financial Services - Insurance, leases, financial instruments and certain guarantees. For those contracts that are impacted, the new guidance requires an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled, in exchange for those goods or services. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

For the three months ended March 31, 2018, the Company identified $322 million of revenue streams within the scope of the guidance that are all included within other revenues on the interim condensed consolidated statements of operations and comprehensive income (loss). Such amount primarily consists of prepaid legal plans and administrative-only contracts within the U.S. segment of $129 million, distribution and administrative services fees within the MetLife Holdings segment of $58 million and fee-based investment management services within Corporate & Other of $71 million.

Substantially all of the revenue from these services is recognized over time as the applicable services are provided or are made available to the customers and control is transferred continuously. The consideration received for these services is variable and constrained to the amount not probable of a significant revenue reversal.

11

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Other

Effective January 16, 2018, the London Clearing House (“LCH”) amended its rulebook, resulting in the characterization of variation margin transfers as settlement payments, as opposed to adjustments to collateral. These amendments impacted the accounting treatment of the Company’s centrally cleared derivatives, for which the LCH serves as the central clearing party. As of the effective date, the application of the amended rulebook reduced gross derivative assets by $369 million, gross derivative liabilities by $203 million, accrued investment income by $14 million, collateral receivables recorded within premiums, reinsurance and other receivables by $184 million, and collateral payables recorded within payables for collateral under securities loaned and other transactions by $365 million. The application of the amended rulebook increased accrued investment expense recorded within other liabilities by $1 million.

Future Adoption of New Accounting Pronouncements

In August 2017, the Financial Accounting Standards Board (“FASB”) issued new guidance on hedging activities (Accounting Standards Update (“ASU”) 2017-12,Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities). The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years and should be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings. Early adoption is permitted. The new guidance simplifies the application of hedge accounting in certain situations and amends the hedge accounting model to enable entities to better portray the economics of their risk management activities in their financial statements. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

In March 2017, the FASB issued new guidance on purchased callable debt securities (ASU 2017-08, Receivables -Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities). The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years and should be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings. Early adoption is permitted. The ASU shortens the amortization period for certain callable debt securities held at a premium and requires the premium to be amortized to the earliest call date. However, the new guidance does not require an accounting change for securities held at a discount whose discount continues to be amortized to maturity. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

In January 2017, the FASB issued new guidance on goodwill impairment (ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment). The new guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The new guidance simplifies the current two-step goodwill impairment test by eliminating Step 2 of the test. See Note 11 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for a description of the two-step test. The new guidance requires a one-step impairment test in which an entity compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any. The Company expects the adoption of this new guidance will reduce the complexity involved with the evaluation of goodwill for impairment. The impact of the new guidance will depend on the outcomes of future goodwill impairment tests.

In June 2016, the FASB issued new guidance on measurement of credit losses on financial instruments (ASU 2016-13,Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments). The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This ASU replaces the incurred loss impairment methodology with one that reflects expected credit losses. The measurement of expected credit losses should be based on historical loss information, current conditions, and reasonable and supportable forecasts. The new guidance requires that an other-than-temporary impairment (“OTTI”)on a debt security will be recognized as an allowance going forward, such that improvements in expected future cash flows after an impairment will no longer be reflected as a prospective yield adjustment through net investment income, but rather a reversal of the previous impairment and recognized through realized investment gains and losses. The guidance also requires enhanced disclosures. The Company has assessed the asset classes impacted by the new guidance and is currently assessing the accounting and reporting system changes that will be required to comply with the new guidance. The Company believes that the most significant impact upon adoption will be to its mortgage loan investments. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

12

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

In February 2016, the FASB issued new guidance on leasing transactions (ASU 2016-02,Leases - Topic 842). The new guidance is effective for the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and requires a modified retrospective transition approach. Early adoption is permitted. The new guidance requires a lessee to recognize assets and liabilities for leases with lease terms of more than 12 months. Leases would be classified as finance or operating leases and both types of leases will be recognized on the balance sheet. Lessor accounting will remain largely unchanged from current guidance except for certain targeted changes. The new guidance will also require new qualitative and quantitative disclosures. The Company’s implementation efforts are primarily focused on the review of its existing lease contracts, identification of other contracts that may fall under the scope of the new guidance, and performing a gap analysis on the current state of lease-related activities compared with the future state of lease-related activities. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

2. Segment Information

MetLife is organized into five segments: U.S.; Asia; Latin America; EMEA; and MetLife Holdings. In addition, the Company reports certain of its results of operations in Corporate & Other.

U.S.

The U.S. segment offers a broad range of protection products and services aimed at serving the financial needs of customers throughout their lives. These products are sold to corporations and their respective employees, other institutions and their respective members, as well as individuals. The U.S. segment is organized into three businesses: Group Benefits, Retirement and Income Solutions and Property & Casualty.

• The Group Benefits business offers insurance products and services which include life, dental, group short- and long-term disability, individual disability, accidental death and dismemberment, vision and accident & health coverages, as well as prepaid legal plans. This business also sells administrative services-only arrangements to some employers.

• The Retirement and Income Solutions business offers a broad range of annuity and investment products, including stable value and pension risk transfer products, institutional income annuities, tort settlements, capital market investment products, as well as postretirement benefits and company-, bank- or trust-owned life insurance.

• The Property & Casualty business offers personal and commercial lines of property and casualty insurance, including private passenger automobile, homeowners’ and personal excess liability insurance. In addition, Property & Casualty offers small business owners property, liability and business interruption insurance.

Asia

The Asia segment offers a broad range of products to both individuals and corporations, as well as other institutions and their respective employees, which include whole and term life, endowments, universal and variable life, accident & health insurance and fixed and variable annuities.

Latin America

The Latin America segment offers a broad range of products to both individuals and corporations, as well as other institutions and their respective employees, which include life insurance, retirement and savings products, accident & health insurance and credit insurance.

EMEA

The EMEA segment offers a broad range of products to both individuals and corporations, as well as other institutions and their respective employees, which include life insurance, accident & health insurance, retirement and savings products and credit insurance.

MetLife Holdings

The MetLife Holdings segment consists of operations relating to products and businesses no longer actively marketed by the Company in the United States, such as variable, universal, term and whole life insurance, variable, fixed and index-linked annuities, long-term care insurance, as well as the assumed variable annuity guarantees from the Company’s former operating joint venture in Japan.

13

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

2. Segment Information (continued)

Corporate & Other

Corporate & Other contains the excess capital, as well as certain charges and activities, not allocated to the segments, including external integration and disposition costs, internal resource costs for associates committed to acquisitions and dispositions, enterprise-wide strategic initiative restructuring charges and various start-up businesses (including the investment management business through which the Company offers fee-based investment management services to institutional clients). Additionally, Corporate & Other includes run-off businesses such as the direct to consumer portion of the U.S. Direct business. Corporate & Other also includes interest expense related to the majority of the Company’s outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues. In addition, Corporate & Other includes the elimination of intersegment amounts, which generally relate to affiliated reinsurance and intersegment loans, which bear interest rates commensurate with related borrowings.

Financial Measures and Segment Accounting Policies

Adjusted earnings is used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings is also the Company’s GAAP measure of segment performance and is reported below. Adjusted earnings should not be viewed as a substitute for income (loss) from continuing operations, net of income tax. The Company believes the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business.

Adjusted earnings is defined as adjusted revenues less adjusted expenses, net of income tax.

The financial measures of adjusted revenues and adjusted expenses focus on the Company’s primary businesses principally by excluding the impact of market volatility, which could distort trends, and revenues and costs related to non-core products and certain entities required to be consolidated under GAAP. Also, these measures exclude results of discontinued operations under GAAP and other businesses that have been or will be sold or exited by MetLife but do not meet the discontinued operations criteria under GAAP and are referred to as divested businesses. Divested businesses also includes the net impact of transactions with exited businesses that have been eliminated in consolidation under GAAP and costs relating to businesses that have been or will be sold or exited by MetLife that do not meet the criteria to be included in results of discontinued operations under GAAP. Adjusted revenues also excludes net investment gains (losses) and net derivative gains (losses). Adjusted expenses also excludes goodwill impairments.

The following additional adjustments are made to revenues, in the line items indicated, in calculating adjusted revenues:

• Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuityguaranteed minimum income benefits (“GMIBs”) fees (“GMIB Fees”);

• Net investment income: (i) includes earned income on derivatives and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment, (ii) excludes post-tax adjusted earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iii) excludes certain amounts related to contractholder-directed unit-linked investments, (iv) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP and (v) includes distributions of profits from certain other limited partnerships that were previously accounted for under the cost method, but are now accounted for at estimated fair value, where the change in fair value is recognized in net investment gains (losses) for GAAP; and

• Other revenues are adjusted for settlements of foreign currency earnings hedges and excludes fees received in association with services provided under transition service agreements (“TSA fees”).

14

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

2. Segment Information (continued)

The following additional adjustments are made to expenses, in the line items indicated, in calculating adjusted expenses:

• Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative gains (losses), (ii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass-through adjustments, (iii) benefits and hedging costs related to GMIBs (“GMIB Costs”) and (iv) market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”);

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

• Amortization of deferred policy acquisition costs (“DAC”) andvalue 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;

• Amortization of negative VOBA excludes amounts related to Market Value Adjustments;

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

• Other expenses excludes costs related to: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements and (iii) acquisition, integration and other costs. Other expenses includes TSA fees.

Adjusted earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for during the measurement period under GAAP business combination accounting guidance.

The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax rate, which could differ from the Company’s effective tax rate. Additionally, the provision for income tax (expense) benefit also includes the impact related to the timing of certain tax credits, as well as certain tax reforms.

Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for thethree months endedMarch 31, 2018 and 2017. The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for adjusted earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below.

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 the Company’s business.

The Company’s economic capital model, coupled with considerations of local capital requirements, aligns segment allocated equity with emerging standards and consistent risk principles. The model applies statistics-based risk evaluation principles to the material risks to which the Company is exposed. These consistent risk principles include calibrating required economic capital shock factors to a specific confidence level and time horizon while applying an industry standard method for the inclusion of diversification benefits among risk types.The Company’s management is responsible for the ongoing production and enhancement of the economic capital model and reviews its approach periodically to ensure that it remains consistent with emerging industry practice standards.

Segment net investment income is 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, income (loss) from continuing operations, net of income tax, or adjusted earnings.

Net investment income is based upon the actual results of each segment’s specifically identifiable investment portfolios 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.

15

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

2. Segment Information (continued)

Three Months Ended March 31, 2018	U.S.			Asia			Latin America			EMEA			MetLife Holdings			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	5,217		$	1,748		$	699		$	551		$	950		$	13		$	9,178		$	—		$	9,178
Universal life and investment-type product policy fees	258			394			282			112			314			—			1,360			32			1,392
Net investment income	1,662			795			276			75			1,352			59			4,219			(474		)	3,745
Other revenues	204			15			8			16			67			81			391			83			474
Net investment gains (losses)	—			—			—			—			—			—			—			(333		)	(333		)
Net derivative gains (losses)	—			—			—			—			—			—			—			349			349
Total revenues	7,341			2,952			1,265			754			2,683			153			15,148			(343		)	14,805
Expenses
Policyholder benefits and claims and policyholder dividends	5,138			1,343			646			294			1,550			(3		)	8,968			47			9,015
Interest credited to policyholder account balances	407			351			98			25			236			—			1,117			(348		)	769
Capitalization of DAC	(106		)	(465		)	(94		)	(118		)	(10		)	(2		)	(795		)	(1		)	(796		)
Amortization of DAC and VOBA	115			314			60			106			100			2			697			(4		)	693
Amortization of negative VOBA	—			(15		)	—			(6		)	—			—			(21		)	(1		)	(22		)
Interest expense on debt	2			—			2			—			2			280			286			—			286
Other expenses	961			952			338			351			276			232			3,110			94			3,204
Total expenses	6,517			2,480			1,050			652			2,154			509			13,362			(213		)	13,149
Provision for income tax expense (benefit)	171			145			75			21			104			(159		)	357			42			399
Adjusted earnings	$	653		$	327		$	140		$	81		$	425		$	(197	)	1,429
Adjustments to:
Total revenues																			(343		)
Total expenses																			213
Provision for income tax (expense) benefit																			(42		)
Income (loss) from continuing operations, net of income tax																			$	1,257					$	1,257

16

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

2. Segment Information (continued)

Three Months Ended March 31, 2017	U.S.			Asia			Latin America			EMEA			MetLife Holdings			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	5,185		$	1,708		$	647		$	502		$	1,059		$	38		$	9,139		$	(174	)	$	8,965
Universal life and investment-type product policy fees	265			366			260			95			362			—			1,348			12			1,360
Net investment income	1,612			702			303			74			1,441			40			4,172			249			4,421
Other revenues	204			10			9			17			96			59			395			(53		)	342
Net investment gains (losses)	—			—			—			—			—			—			—			88			88
Net derivative gains (losses)	—			—			—			—			—			—			—			(212		)	(212		)
Total revenues	7,266			2,786			1,219			688			2,958			137			15,054			(90		)	14,964
Expenses
Policyholder benefits and claims and policyholder dividends	5,244			1,315			633			269			1,733			25			9,219			(46		)	9,173
Interest credited to policyholder account balances	351			321			82			24			257			1			1,036			415			1,451
Capitalization of DAC	(100		)	(420		)	(82		)	(92		)	(34		)	(1		)	(729		)	16			(713		)
Amortization of DAC and VOBA	114			291			78			87			74			1			645			18			663
Amortization of negative VOBA	—			(37		)	—			(3		)	—			—			(40		)	(3		)	(43		)
Interest expense on debt	2			—			1			—			15			277			295			(12		)	283
Other expenses	909			875			326			316			340			175			2,941			137			3,078
Total expenses	6,520			2,345			1,038			601			2,385			478			13,367			525			13,892
Provision for income tax expense (benefit)	249			146			38			12			186			(271		)	360			(240		)	120
Adjusted earnings	$	497		$	295		$	143		$	75		$	387		$	(70	)	1,327
Adjustments to:
Total revenues																			(90		)
Total expenses																			(525		)
Provision for income tax (expense) benefit																			240
Income (loss) from continuing operations, net of income tax																			$	952					$	952

17

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

2. Segment Information (continued)

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

	March 31, 2018		December 31, 2017
	(In millions)
U.S.	$	251,496	$	255,428
Asia	143,458		136,928
Latin America	78,638		79,670
EMEA	30,546		30,500
MetLife Holdings	175,817		183,160
Corporate & Other	32,629		34,206
Total	$	712,584	$	719,892

3. Dispositions

2018 Disposition

On February 20, 2018, the Company completed the sale of MetLife Afore, S.A. de C.V., its pension fund management business in Mexico. See Note 3 of the Notes to the Consolidated Financial Statement included in the 2017 Annual Report for further information.

2017 Separation of Brighthouse

On August 4, 2017, MetLife, Inc. completed the separation of Brighthouse. MetLife, Inc. retained the remaining ownership interest of 22,996,436 shares, or 19.2%, of Brighthouse Financial, Inc. common stock and recognized its investment in Brighthouse Financial, Inc. common stock based on the NASDAQ reported market price. The Company elected to record the investment under the FVO as an observable measure of estimated fair value that is aligned with the Company’s intent to divest of the retained shares as soon as practicable. Subsequent changes in estimated fair value of the investment are recorded to net investment gains (losses). The estimated fair value of the Brighthouse Financial, Inc. common stock held by the Company (“FVO Brighthouse Common Stock”) at March 31, 2018 and December 31, 2017 was $1.2 billion and $1.3 billion, respectively, reported within contractholder-directed equity securities and fair value option securities. In the first quarter of 2018, the Company recorded a $168 million mark-to-market loss on its retained investment in Brighthouse Financial, Inc. to net investment gains (losses).

The Company incurred pre-tax Separation-related transaction costs of $77 million for the three months ended March 31, 2017, primarily related to third party staffing costs. Separation-related transaction costs are recorded in other expenses and reported within continuing operations.

See Note 3 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for further information regarding the Separation, including Separation-related agreements and ongoing transactions with Brighthouse.

18

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

3. Dispositions (continued)

Agreements

Tax Agreements

Immediately prior to the Separation, MetLife entered into tax agreements with Brighthouse.

In accordance with the tax separation agreement, at both March 31, 2018 and December 31, 2017, the Company’s current income tax receivable and corresponding payable to Brighthouse, reported in other liabilities, were $726 million.

As part of the tax receivable agreement, MetLife Inc. has the right to receive future payments from Brighthouse for a tax asset that Brighthouse received as a result of restructuring prior to the Separation. Included in other assets at both March 31, 2018 and December 31, 2017, is a receivable from Brighthouse of $333 million related to these future payments.

Ongoing Transactions with Brighthouse

The Company considered all of its continuing involvement with Brighthouse in determining whether to deconsolidate and present Brighthouse results as discontinued operations, including the agreements entered into between MetLife and Brighthouse and the ongoing transactions described below.

The Company entered into reinsurance, committed facility, structured settlement, and contract administrative services transactions with Brighthouse in the normal course of business and such transactions will continue based upon business needs. In addition, prior to and in connection with the Separation, the Company entered into various other agreements with Brighthouse for services necessary for both the Company and Brighthouse to conduct their activities. Intercompany transactions prior to the Separation between the Company and Brighthouse are eliminated and excluded from the interim condensed consolidated statements of operations and comprehensive income (loss). Transactions between the Company and Brighthouse that continue after the Separation are included on the Company’s interim condensed consolidated statements of operations and comprehensive income (loss) and interim condensed consolidated balance sheets.

19

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

3. Dispositions (continued)

Reinsurance

The Company entered into reinsurance transactions with Brighthouse in the normal course of business and such transactions will continue based upon business needs. Information regarding the significant effects of reinsurance transactions with Brighthouse was as follows:

	Included on Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)			Excluded from Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
	Three Months Ended March 31,
	2018			2017
	(In millions)
Premiums
Reinsurance assumed	$	96		$	97
Reinsurance ceded	(3		)	(3		)
Net premiums	$	93		$	94
Universal life and investment-type product policy fees
Reinsurance assumed	$	1		$	(4	)
Reinsurance ceded	(24		)	(24		)
Net universal life and investment-type product policy fees	$	(23	)	$	(28	)
Policyholder benefits and claims
Reinsurance assumed	$	78		$	75
Reinsurance ceded	(10		)	(6		)
Net policyholder benefits and claims	$	68		$	69
Interest credited to policyholder account balances
Reinsurance assumed	$	4		$	4
Reinsurance ceded	(18		)	(18		)
Net interest credited to policyholder account balances	$	(14	)	$	(14	)
Other expenses
Reinsurance assumed	$	34		$	(30	)
Reinsurance ceded	(14		)	(21		)
Net other expenses	$	20		$	(51	)

20

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

3. Dispositions (continued)

Information regarding the significant effects of reinsurance transactions with Brighthouse included on the interim condensed consolidated balance sheets was as follows at:

	March 31, 2018					December 31, 2017
	Assumed		Ceded			Assumed		Ceded
	(In millions)
Assets
Premiums, reinsurance and other receivables	$	154	$	1,802		$	167	$	1,793
Deferred policy acquisition costs and value of business acquired	390		(40		)	384		(40		)
Total assets	$	544	$	1,762		$	551	$	1,753
Liabilities
Future policy benefits	$	1,788	$	—		$	1,734	$	—
Other policy-related balances	116		25			119		28
Other liabilities	1,447		25			1,458		19
Total liabilities	$	3,351	$	50		$	3,311	$	47

Investment Management

In connection with the Separation, the Company entered into investment management services agreements with Brighthouse. During the three months ended March 31, 2018, the Company recognized $29 million in other revenues for services provided under such investment management services agreements. Prior to the Separation, during the three months ended March 31, 2017, the Company charged Brighthouse $25 million, for services provided under the agreements, which were intercompany transactions and eliminated and excluded from the interim condensed consolidated statements of operations and comprehensive income (loss).

Committed Facility

MetLife Reinsurance Company of Vermont and MetLife, Inc. have a $2.9 billion committed facility which is used as collateral for certain affiliated reinsurance liabilities. At March 31, 2018, Brighthouse was a beneficiary of $2.4 billion of letters of credit issued under this committed facility and, in consideration, Brighthouse reimbursed MetLife, Inc. for a portion of the letter of credit fees. Prior to the Separation, the Company entered into the committed facility with Brighthouse in the normal course of business and such transactions will continue based upon business needs.

Transition Services

In connection with the Separation, the Company entered into a transition services agreement with Brighthouse for services necessary for Brighthouse to conduct its activities. During the three months ended March 31, 2018, the Company recognized $79 million as other revenue for transitional services provided under the agreement. Prior to the Separation, during the three months ended March 31, 2017, the Company charged Brighthouse $81 million, for services provided under the agreement, which were intercompany transactions and eliminated and excluded from the interim condensed consolidated statements of operations and comprehensive income (loss).

Other

The Company has existing assumed structured settlement claim obligations as an assignment company for Brighthouse. These liabilities are measured at the present value of the periodic claims to be provided and reported as other policy-related balances. The Company receives a fee for assuming these claim obligations and, as the assignee of the claim, is legally obligated to ensure periodic payments are made to the claimant. The Company purchased annuities from Brighthouse to fund these obligations and designates payments to be made directly to the claimant by Brighthouse as the annuity writer. The aggregate contract values of annuities funding structured settlement claims are recorded as an asset for which the Company has also recorded an unpaid claim obligation reported in other policy-related balances. Such aggregated contract values were $1.3 billion at both March 31, 2018 and December 31, 2017. The Company entered into these transactions with Brighthouse in the normal course of business and such transactions will continue based upon business needs.

21

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

3. Dispositions (continued)

The Company provides services necessary for Brighthouse to conduct its business, which primarily include contract administrative services for certain Brighthouse investment-type products. During the three months ended March 31, 2018, the Company recognized revenue of $32 million for administrative services provided to Brighthouse. Prior to the Separation, during the three months ended March 31, 2017, the Company provided administrative services to Brighthouse for $31 million, which were intercompany transactions and eliminated and excluded from the interim condensed consolidated statements of operations and comprehensive income (loss). The Company entered into these transactions with Brighthouse in the normal course of business and such transactions will continue based upon business needs.

In connection with the Separation, the Company entered into an employee matters agreement with Brighthouse to allocate obligations and responsibilities relating to employee compensation and benefit plans and other related matters. The employee matters agreement provides that MetLife will reimburse Brighthouse for certain pension benefit payments, retiree health and life benefit payments and deferred compensation payments. Included in other liabilities at both March 31, 2018 and December 31, 2017, is a payable to Brighthouse of $186 million related to these future payments.

At March 31, 2018, the Company had a receivable from Brighthouse of $87 million related to services provided and a payable to Brighthouse of $48 million related to services received. At December 31, 2017, the Company had a receivable from Brighthouse of $97 million related to services provided and a payable to Brighthouse of $50 million related to services received.

22

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

3. Dispositions (continued)

Discontinued Operations

The following table presents the amounts related to the operations of Brighthouse that have been reflected in discontinued operations:

	Three Months Ended March 31,
	2017
	(In millions)
Revenues
Premiums	$	350
Universal life and investment-type product policy fees	942
Net investment income	775
Other revenues	32
Total net investment gains (losses)	(50		)
Net derivative gains (losses)	(700		)
Total revenues	1,349
Expenses
Policyholder benefits and claims	1,002
Interest credited to policyholder account balances	261
Policyholder dividends	7
Goodwill impairment	—
Other expenses	261
Total expenses	1,531
Income (loss) from discontinued operations before provision for income tax	(182		)
Provision for income tax expense (benefit)	(106		)
Income (loss) from discontinued operations, net of income tax	$	(76	)

23

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

3. Dispositions (continued)

In the interim condensed consolidated statements of cash flows, the cash flows from discontinued operations are not separately classified. The following table presents selected financial information regarding cash flows of the discontinued operations.

	Three Months Ended March 31,
	2017
	(In millions)
Net cash provided by (used in):
Operating activities	$	302
Investing activities	$	16
Financing activities	$	266

4. Insurance

Guarantees

As discussed in Notes 1 and 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report, the Company issues directly and assumes through reinsurance variable annuity products with guaranteed minimum benefits. Guaranteed minimum accumulation benefits (“GMABs”) and the portions of both non-life-contingent guaranteed minimum withdrawal benefits (“GMWBs”) and the GMIBs that do not require annuitization are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 7.

The Company also issues other annuity contracts that apply a lower rate on funds deposited if the contractholder elects to surrender the contract for cash and a higher rate if the contractholder elects to annuitize. These guarantees include benefits that are payable in the event of death, maturity or at annuitization. Certain other annuity contracts contain guaranteed annuitization benefits that may be above what would be provided by the current account value of the contract. Additionally, the Company issues universal and variable life contracts where the Company contractually guarantees to the contractholder a secondary guarantee or a guaranteed paid-up benefit.

Information regarding the Company’s guarantee exposure, which includes direct and assumed business, but excludes offsets from hedging or ceded reinsurance, if any, was as follows at:

	March 31, 2018								December 31, 2017
	In the Event of Death				At Annuitization				In the Event of Death				At Annuitization
	(Dollars in millions)
Annuity Contracts:
Variable Annuity Guarantees:
Total account value (1), (2), (3)	$	64,728			$	25,169			$	66,724			$	26,223
Separate account value (1)	$	43,714			$	23,302			$	45,431			$	24,336
Net amount at risk (2)	$	1,587	(4	)	$	510	(5	)	$	1,238	(4	)	$	525	(5	)
Average attained age of contractholders	66 years				66 years				65 years				65 years
Other Annuity Guarantees:
Total account value (1), (3)	N/A				$	1,437			N/A				$	1,424
Net amount at risk	N/A				$	559	(6	)	N/A				$	569	(6	)
Average attained age of contractholders	N/A				50 years				N/A				50 years

24

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

4. Insurance (continued)

	March 31, 2018				December 31, 2017
	Secondary Guarantees		Paid-Up Guarantees		Secondary Guarantees		Paid-Up Guarantees
	(Dollars in millions)
Universal and Variable Life Contracts:
Total account value (1), (3)	$	9,089	$	3,171	$	9,036	$	3,207
Net amount at risk (7)	$	66,762	$	16,332	$	66,956	$	16,615
Average attained age of policyholders	57 years		63 years		56 years		63 years

__________________

(1) The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive.

(2) Includes amounts, which are not reported on the interim condensed consolidated balance sheets, from assumed variable annuity guarantees from the Company’s former operating joint venture in Japan.

(3) Includes the contractholder’s investments in the general account and separate account, if applicable.

(4) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death.

(5) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved.

(6) Defined as either the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date or the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. These amounts represent the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date.

(7) Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date.

25

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

4. Insurance (continued)

Liabilities for Unpaid Claims and Claim Expenses

Rollforward of Claims and Claim Adjustment Expenses

Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows:

	Three Months Ended March 31,
	2018			2017 (1)
	(In millions)
Balance, beginning of period	$	17,094		$	16,157
Less: Reinsurance recoverables	2,198			1,968
Net balance, beginning of period	14,896			14,189
Incurred related to:
Current period	6,504			6,637
Prior periods (2)	(148		)	(127		)
Total incurred	6,356			6,510
Paid related to:
Current period	(3,339		)	(3,723		)
Prior periods	(2,719		)	(2,604		)
Total paid	(6,058		)	(6,327		)
Net balance, end of period	15,194			14,372
Add: Reinsurance recoverables	2,237			2,123
Balance, end of period (included in future policy benefits and other policy-related balances)	$	17,431		$	16,495

__________________

(1) As discussed in Note 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report, at December 31, 2016, the Net balance decreased and the Reinsurance recoverables increased from those amounts previously reported. Additionally, at March 31, 2017, the Net balance decreased by $131 million and the Reinsurance recoverables increased by $144 million from those amounts previously reported in MetLife, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017. These adjustments to the Net balance and the Reinsurance recoverables, at both periods, are primarily to correct for improper classification of reinsurance recoverables.

(2) During both the three months ended March 31, 2018 and 2017, as a result of changes in estimates of insured events in the respective prior periods, the claims and claim adjustment expenses associated with prior periods decreased due to favorable claims experience.

5. Closed Block

On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company (“MLIC”) converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance approving MLIC’s plan of reorganization, as amended (the “Plan of Reorganization”). On the Demutualization Date, MLIC established a closed block for the benefit of holders of certain individual life insurance policies of MLIC.

Experience within the closed block, in particular mortality and investment yields, as well as realized and unrealized gains and losses, directly impact the policyholder dividend obligation. Amortization of the closed block DAC, which resides outside of the closed block, is based upon cumulative actual and expected earnings within the closed block. Accordingly, the Company’s net income continues to be sensitive to the actual performance of the closed block.

Closed block assets, liabilities, revenues and expenses are combined on a line-by-line basis with the assets, liabilities, revenues and expenses outside the closed block based on the nature of the particular item.

26

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

5. Closed Block (continued)

Information regarding the closed block liabilities and assets designated to the closed block was as follows at:

	March 31, 2018			December 31, 2017
	(In millions)
Closed Block Liabilities
Future policy benefits	$	40,285		$	40,463
Other policy-related balances	213			222
Policyholder dividends payable	462			437
Policyholder dividend obligation	1,277			2,121
Other liabilities	285			212
Total closed block liabilities	42,522			43,455
Assets Designated to the Closed Block
Investments:
Fixed maturity securities available-for-sale, at estimated fair value	26,815			27,904
Equity securities, at estimated fair value	68			70
Mortgage loans	6,040			5,878
Policy loans	4,532			4,548
Real estate and real estate joint ventures	595			613
Other invested assets	607			731
Total investments	38,657			39,744
Accrued investment income	475			477
Premiums, reinsurance and other receivables; cash and cash equivalents	208			14
Current income tax recoverable	40			35
Deferred income tax assets	23			36
Total assets designated to the closed block	39,403			40,306
Excess of closed block liabilities over assets designated to the closed block	3,119			3,149
Amounts included in AOCI:
Unrealized investment gains (losses), net of income tax	1,711			1,863
Unrealized gains (losses) on derivatives, net of income tax	(57		)	(7		)
Allocated to policyholder dividend obligation, net of income tax	(1,009		)	(1,379		)
Total amounts included in AOCI	645			477
Maximum future earnings to be recognized from closed block assets and liabilities	$	3,764		$	3,626

See Note 1 for discussion of new accounting guidance related to U.S. Tax Reform.

Information regarding the closed block policyholder dividend obligation was as follows:

	Three Months Ended March 31, 2018			Year Ended December 31, 2017
	(In millions)
Balance, beginning of period	$	2,121		$	1,931
Change in unrealized investment and derivative gains (losses)	(844		)	190
Balance, end of period	$	1,277		$	2,121

27

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

5. Closed Block (continued)

Information regarding the closed block revenues and expenses was as follows:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Revenues
Premiums	$	387		$	402
Net investment income	444			466
Net investment gains (losses)	(29		)	(8		)
Net derivative gains (losses)	(3		)	(8		)
Total revenues	799			852
Expenses
Policyholder benefits and claims	571			568
Policyholder dividends	244			250
Other expenses	29			32
Total expenses	844			850
Revenues, net of expenses before provision for income tax expense (benefit)	(45		)	2
Provision for income tax expense (benefit)	(10		)	—
Revenues, net of expenses and provision for income tax expense (benefit)	$	(35	)	$	2

MLIC charges the closed block with federal income taxes, state and local premium taxes and other state or local taxes, as well as investment management expenses relating to the closed block as provided in the Plan of Reorganization. MLIC also charges the closed block for expenses of maintaining the policies included in the closed block.

28

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

6. Investments

Fixed Maturity Securities Available-for-Sale

Fixed Maturity Securities Available-for-Sale by Sector

The following table presents the fixed maturity securities AFS by sector. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities. Included within fixed maturity securities AFS are structured securities including residential mortgage-backed securities (“RMBS”), asset-backed securities (“ABS”) and commercial mortgage-backed securities (“CMBS”) (collectively, “Structured Securities”).

	March 31, 2018											December 31, 2017
	Amortized Cost		Gross Unrealized							Estimated Fair Value		Amortized Cost		Gross Unrealized							Estimated Fair Value
			Gains		Temporary Losses		OTTI Losses (1)							Gains		Temporary Losses		OTTI Losses (1)
	(In millions)
Fixed maturity securities:
U.S. corporate	$	77,786	$	5,105	$	1,057	$	—		$	81,834	$	76,005	$	7,007	$	351	$	—		$	82,661
Foreign government	58,423		6,484		397		—			64,510		55,351		6,495		312		—			61,534
Foreign corporate	52,894		3,366		797		—			55,463		52,409		3,836		676		—			55,569
U.S. government and agency	40,989		3,395		557		—			43,827		43,446		4,227		279		—			47,394
RMBS	26,858		999		481		(35		)	27,411		27,846		1,145		233		(42		)	28,800
State and political subdivision	10,762		1,473		43		—			12,192		10,752		1,717		13		1			12,455
ABS	11,695		111		41		1			11,764		12,213		116		39		(1		)	12,291
CMBS	7,692		112		94		—			7,710		8,047		222		42		—			8,227
Total fixed maturity securities	$	287,099	$	21,045	$	3,467	$	(34	)	$	304,711	$	286,069	$	24,765	$	1,945	$	(42	)	$	308,931

__________________

(1) Noncredit OTTI losses included in AOCI in an unrealized gain position are 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 $24 million and $6 million, and unrealized gains (losses) of ($1) million and ($4) million, at March 31, 2018 and December 31, 2017, 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 March 31, 2018:

	Due in One Year or Less		Due After One Year Through Five Years		Due After Five Years Through Ten Years		Due After Ten Years		Structured Securities		Total Fixed Maturity Securities
	(In millions)
Amortized cost	$	12,620	$	60,639	$	61,373	$	106,222	$	46,245	$	287,099
Estimated fair value	$	12,674	$	62,809	$	63,919	$	118,424	$	46,885	$	304,711

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. Structured Securities are shown separately, as they are not due at a single maturity.

29

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

6. Investments (continued)

Continuous Gross Unrealized Losses for Fixed Maturity Securities AFS by Sector

The following table presents the estimated fair value and gross unrealized losses of fixed maturity 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 at:

	March 31, 2018								December 31, 2017
	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
	(Dollars in millions)
Fixed maturity securities:
U.S. corporate	$	20,465	$	642	$	4,426	$	415	$	5,604	$	92	$	4,115	$	259
Foreign government	4,510		137		3,297		260		4,234		83		3,251		229
Foreign corporate	8,932		259		5,835		538		4,422		99		6,802		577
U.S. government and agency	19,105		224		3,378		333		18,273		93		3,560		186
RMBS	10,855		237		3,713		209		6,359		50		4,159		141
State and political subdivision	774		24		302		19		182		2		346		12
ABS	2,593		15		551		27		1,695		7		729		31
CMBS	3,069		48		478		46		1,174		9		413		33
Total fixed maturity securities	$	70,303	$	1,586	$	21,980	$	1,847	$	41,943	$	435	$	23,375	$	1,468
Total number of securities in an unrealized loss position	5,111				1,887				2,598				1,955

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 2017 Annual Report, the Company performs a regular evaluation of all investment classes for impairment, including fixed maturity 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 concluded that these securities were not other-than-temporarily impaired at March 31, 2018. 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, collateral valuation, interest rates and 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 increased$1.5 billionduring thethree months endedMarch 31, 2018to$3.4 billion. The increase in gross unrealized losses for thethree months endedMarch 31, 2018was primarily attributable to widening credit spreads and increases in interest rates, partially offset by strengthening foreign currencies on non-functional currency denominated fixed maturity securities.

At March 31, 2018, $85 million of the total $3.4 billion of gross unrealized losses were from 28 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 $85 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, $40 million, or 47%, were related to gross unrealized losses on 11 investment grade fixed maturity securities. Unrealized losses on investment grade fixed maturity securities are principally related to widening credit spreads since purchase and, with respect to fixed-rate fixed maturity securities, rising interest rates since purchase.

30

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

6. Investments (continued)

Below Investment Grade Fixed Maturity Securities

Of the $85 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, $45 million, or 53%, were related to gross unrealized losses on 17 below investment grade fixed maturity securities. Unrealized losses on below investment grade fixed maturity securities are principally related to U.S. and foreign corporate securities (primarily industrial and utility securities) and CMBS and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainty including concerns over lower oil prices in the energy sector. Management evaluates U.S. and foreign corporate securities based on factors such as expected cash flows and the financial condition and near-term and long-term prospects of the issuers and evaluates CMBS based on actual and projected cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, 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 are summarized as follows at:

	March 31, 2018				December 31, 2017
	Estimated Fair Value		% of Total		Estimated Fair Value		% of Total
	(Dollars in millions)
Equity securities:
Common stock	$	1,046	67.7	%	$	2,035	81.0	%
Non-redeemable preferred stock	498		32.3		478		19.0
Total equity securities	$	1,544	100.0	%	$	2,513	100.0	%

In connection with the adoption of new guidance related to the recognition and measurement of financial instruments (see Note 1), effective January 1, 2018, the Company has reclassified its investment in common stock in regional banks of the Federal Home Loan Bank (“FHLB”) system from equity securities to other invested assets. These investments are carried at redemption value and are considered restricted investments until redeemed by the respective FHLB regional banks. The carrying value of these investments at December 31, 2017 was $791 million.

Contractholder-Directed Equity Securities and Fair Value Option Securities

Contractholder-directed equity securities and fair value option securities (collectively, “Unit-linked and FVO Securities”), are investments for which the FVO has been elected, or are otherwise required to be carried at estimated fair value, and include:

• contractholder-directed investments supporting unit-linked variable annuity type liabilities which do not qualify for presentation and reporting as separate account summary total assets and liabilities. These investments are primarily equity securities (including mutual funds) and, to a lesser extent, fixed maturity securities, short-term investments and cash and cash equivalents. The investment returns on these investments inure to contractholders and are offset by a corresponding change in policyholder account balances through interest credited to policyholder account balances (“Unit-linked investments”);

• FVO Brighthouse Common Stock (see Note 3);

• fixed maturity and equity securities held-for-investment by the general account to support asset and liability management strategies for certain insurance products and investments in certain separate accounts (“FVO general account securities”); and

• FVO securities held by consolidated securitization entities.

31

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

6. Investments (continued)

Mortgage Loans

Mortgage Loans by Portfolio Segment

Mortgage loans are summarized as follows at:

	March 31, 2018					December 31, 2017
	Carrying Value			% of Total		Carrying Value			% of Total
	(Dollars in millions)
Mortgage loans:
Commercial	$	46,690		65.7	%	$	44,375		64.6	%
Agricultural	13,098			18.4		13,014			18.9
Residential	11,156			15.7		11,136			16.2
Subtotal (1)	70,944			99.8		68,525			99.7
Valuation allowances	(327		)	(0.4	)	(314		)	(0.5	)
Subtotal mortgage loans, net	70,617			99.4		68,211			99.2
Residential — FVO	438			0.6		520			0.8
Total mortgage loans, net	$	71,055		100.0	%	$	68,731		100.0	%

__________________

(1) Purchases of mortgage loans, primarily residential mortgage loans, were$307 millionand$762 millionfor thethree months endedMarch 31, 2018and2017, respectively.

Information on commercial, agricultural and residential mortgage loans is presented in the tables below. Information on residential mortgage loans — FVO is presented in Note 8. The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis.

Mortgage Loans, Valuation Allowance and Impaired Loans by Portfolio Segment

Mortgage loans by portfolio segment, by method of evaluation of credit loss, impaired mortgage loans including those modified in a troubled debt restructuring, and the related valuation allowances, were as follows at:

	Evaluated Individually for Credit Losses										Evaluated Collectively for Credit Losses				Impaired Loans
	Impaired Loans with a Valuation Allowance						Impaired Loans without a Valuation Allowance
	Unpaid Principal Balance		Recorded Investment		Valuation Allowances		Unpaid Principal Balance		Recorded Investment		Recorded Investment		Valuation Allowances		Carrying Value
	(In millions)
March 31, 2018
Commercial	$	—	$	—	$	—	$	—	$	—	$	46,690	$	228	$	—
Agricultural	22		21		2		101		100		12,977		39		119
Residential	—		—		—		376		339		10,817		58		339
Total	$	22	$	21	$	2	$	477	$	439	$	70,484	$	325	$	458
December 31, 2017
Commercial	$	—	$	—	$	—	$	—	$	—	$	44,375	$	214	$	—
Agricultural	22		21		2		27		27		12,966		39		46
Residential	—		—		—		358		324		10,812		59		324
Total	$	22	$	21	$	2	$	385	$	351	$	68,153	$	312	$	370

The average recorded investment for impaired commercial, agricultural and residential mortgage loans was $0, $84 million and $331 million, respectively, for the three months endedMarch 31, 2018; and $12 million, $25 million and $253 million, respectively, for the three months endedMarch 31, 2017.

32

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

6. Investments (continued)

Valuation Allowance Rollforward by Portfolio Segment

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

	Three Months Ended March 31,
	2018										2017
	Commercial		Agricultural		Residential			Total			Commercial		Agricultural		Residential			Total
	(In millions)
Balance, beginning of period	$	214	$	41	$	59		$	314		$	202	$	39	$	63		$	304
Provision (release)	14		—		—			14			5		—		5			10
Charge-offs, net of recoveries	—		—		(1		)	(1		)	—		—		(4		)	(4		)
Balance, end of period	$	228	$	41	$	58		$	327		$	207	$	39	$	64		$	310

Credit Quality of Commercial Mortgage Loans

The credit quality of commercial mortgage loans was as follows at:

	Recorded Investment										Estimated Fair Value		% of Total
	Debt Service Coverage Ratios								% of Total
	> 1.20x		1.00x - 1.20x		< 1.00x		Total
	(Dollars in millions)
March 31, 2018
Loan-to-value ratios:
Less than 65%	$	39,705	$	1,023	$	186	$	40,914	87.6	%	$	41,327	87.9	%
65% to 75%	4,280		98		143		4,521		9.7		4,504		9.6
76% to 80%	265		210		126		601		1.3		574		1.2
Greater than 80%	401		176		77		654		1.4		613		1.3
Total	$	44,651	$	1,507	$	532	$	46,690	100.0	%	$	47,018	100.0	%
December 31, 2017
Loan-to-value ratios:
Less than 65%	$	37,073	$	1,483	$	201	$	38,757	87.4	%	$	39,528	87.7	%
65% to 75%	4,183		98		119		4,400		9.9		4,408		9.8
76% to 80%	235		210		57		502		1.1		476		1.0
Greater than 80%	401		168		147		716		1.6		672		1.5
Total	$	41,892	$	1,959	$	524	$	44,375	100.0	%	$	45,084	100.0	%

Credit Quality of Agricultural Mortgage Loans

The credit quality of agricultural mortgage loans was as follows at:

	March 31, 2018				December 31, 2017
	Recorded Investment		% of Total		Recorded Investment		% of Total
	(Dollars in millions)
Loan-to-value ratios:
Less than 65%	$	12,433	94.9	%	$	12,347	94.9	%
65% to 75%	616		4.7		618		4.7
76% to 80%	40		0.3		40		0.3
Greater than 80%	9		0.1		9		0.1
Total	$	13,098	100.0	%	$	13,014	100.0	%

33

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

6. Investments (continued)

The estimated fair value of agricultural mortgage loans was $13.0 billion and $13.1 billion at March 31, 2018 and December 31, 2017, respectively.

Credit Quality of Residential Mortgage Loans

The credit quality of residential mortgage loans was as follows at:

	March 31, 2018				December 31, 2017
	Recorded Investment		% of Total		Recorded Investment		% of Total
	(Dollars in millions)
Performance indicators:
Performing	$	10,748	96.3	%	$	10,622	95.4	%
Nonperforming	408		3.7		514		4.6
Total	$	11,156	100.0	%	$	11,136	100.0	%

The estimated fair value of residential mortgage loans was $11.8 billion and $11.6 billion at March 31, 2018 and December 31, 2017, respectively.

Past Due and Nonaccrual Mortgage Loans

The Company has a high quality, well performing mortgage loan portfolio, with 99% of all mortgage loans classified as performing at both March 31, 2018 and December 31, 2017. The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days. The past due and nonaccrual mortgage loans at recorded investment, prior to valuation allowances, by portfolio segment, were as follows at:

	Past Due				Greater than 90 Days Past Due and Still Accruing Interest				Nonaccrual
	March 31, 2018		December 31, 2017		March 31, 2018		December 31, 2017		March 31, 2018		December 31, 2017
	(In millions)
Commercial	$	1	$	—	$	—	$	—	$	1	$	—
Agricultural	219		134		114		125		106		36
Residential	408		514		42		33		366		481
Total	$	628	$	648	$	156	$	158	$	473	$	517

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 $6.3 billion and $6.2 billion at March 31, 2018 and December 31, 2017, respectively.

Net Unrealized Investment Gains (Losses)

Unrealized investment gains (losses) on fixed maturity securities AFS and equity securities and the effect on DAC, VOBA, deferred sales inducements (“DSI”), future policy benefits and the policyholder dividend obligation, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI.

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

	March 31, 2018			December 31, 2017
	(In millions)
Fixed maturity securities	$	17,545		$	22,645
Fixed maturity securities with noncredit OTTI losses included in AOCI	35			41
Total fixed maturity securities	17,580			22,686
Equity securities	—			421
Derivatives	936			1,453
Other	136			46
Subtotal	18,652			24,606
Amounts allocated from:
Future policy benefits	(138		)	(77		)
DAC, VOBA and DSI	(1,304		)	(1,768		)
Policyholder dividend obligation	(1,277		)	(2,121		)
Subtotal	(2,719		)	(3,966		)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	(5		)	(12		)
Deferred income tax benefit (expense)	(4,372		)	(6,958		)
Net unrealized investment gains (losses)	11,556			13,670
Net unrealized investment gains (losses) attributable to noncontrolling interests	(9		)	(8		)
Net unrealized investment gains (losses) attributable to MetLife, Inc.	$	11,547		$	13,662

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

	Three Months Ended March 31, 2018
	(In millions)
Balance, beginning of period	$	13,662
Cumulative effects of changes in accounting principles, net of income tax (Note 1)	1,258
Fixed maturity securities on which noncredit OTTI losses have been recognized	(6		)
Unrealized investment gains (losses) during the period	(5,523		)
Unrealized investment gains (losses) relating to:
Future policy benefits	(61		)
DAC, VOBA and DSI	464
Policyholder dividend obligation	844
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	7
Deferred income tax benefit (expense)	903
Net unrealized investment gains (losses)	11,548
Net unrealized investment gains (losses) attributable to noncontrolling interests	(1		)
Balance, end of period	$	11,547
Change in net unrealized investment gains (losses)	$	(2,114	)
Change in net unrealized investment gains (losses) attributable to noncontrolling interests	(1		)
Change in net unrealized investment gains (losses) attributable to MetLife, Inc.	$	(2,115	)

34

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

6. Investments (continued)

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 $30.7 billion and $27.5 billion at March 31, 2018 and December 31, 2017, respectively, and in fixed income securities of the South Korean government and its agencies with an estimated fair value of $6.4 billion and $6.5 billion at March 31, 2018 and December 31, 2017, respectively.

Securities Lending

Elements of the Company’s securities lending program are presented below at:

	March 31, 2018		December 31, 2017
	(In millions)
Securities on loan: (1)
Amortized cost	$	17,047	$	17,801
Estimated fair value	$	17,812	$	19,028
Cash collateral received from counterparties (2)	$	18,111	$	19,417
Security collateral received from counterparties (3)	$	41	$	19
Reinvestment portfolio — estimated fair value	$	18,149	$	19,508

__________________

(1) Included within fixed maturity securities.

(2) Included within payables for collateral under securities loaned and other transactions.

(3) Security collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the consolidated financial statements.

The cash collateral liability by loaned security type and remaining tenor of the agreements was as follows at:

	March 31, 2018								December 31, 2017
	Remaining Tenor of Securities Lending Agreements								Remaining Tenor of Securities Lending Agreements
	Open (1)		1 Month or Less		Over 1 to 6 Months		Total		Open (1)		1 Month or Less		Over 1 to 6 Months		Total
	(In millions)
Cash collateral liability by loaned security type:
U.S. government and agency	$	3,493	$	6,282	$	7,269	$	17,044	$	3,753	$	6,031	$	8,607	$	18,391
Foreign government	—		312		755		1,067		—		192		834		1,026
Total	$	3,493	$	6,594	$	8,024	$	18,111	$	3,753	$	6,223	$	9,441	$	19,417

__________________

(1) The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral.

If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized under normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at March 31, 2018 was $3.4 billion, all of which were U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement.

35

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

6. Investments (continued)

The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including U.S. government and agency securities, agency RMBS, ABS and U.S. corporate securities) and short-term investments, with 60% invested in U.S. government and agency securities, agency RMBS, short-term investments, cash equivalents or held in cash. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company.

Repurchase Agreements

Elements of the Company’s short-term repurchase agreements are presented below at:

	March 31, 2018		December 31, 2017
	(In millions)
Securities on loan: (1)
Amortized cost	$	2,796	$	994
Estimated fair value	$	2,927	$	1,141
Cash collateral received from counterparties (2)	$	2,861	$	1,102
Reinvestment portfolio — estimated fair value	$	2,854	$	1,102

__________________

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

(2) Included within payables for collateral under securities loaned and other transactions and other liabilities.

The cash collateral liability by loaned security type and remaining tenor of the agreements was as follows at:

	March 31, 2018						December 31, 2017
	Remaining Tenor of Repurchase Agreements						Remaining Tenor of Repurchase Agreements
	1 Month or Less		Over 1 to 6 Months		Total		1 Month or Less		Over 1 to 6 Months		Total
	(In millions)
Cash collateral liability by loaned security type:
U.S. government and agency	$	2,760	$	5	$	2,765	$	1,005	$	—	$	1,005
All other corporate and government	—		96		96		44		53		97
Total	$	2,760	$	101	$	2,861	$	1,049	$	53	$	1,102

The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including U.S. government and agency securities, agency RMBS, ABS and U.S. corporate securities) and short-term investments, with 64% invested in U.S. government and agency securities, agency RMBS, short-term investments, cash equivalents or held in cash. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company.

FHLB of Boston Advance Agreements

At March 31, 2018 and December 31, 2017, a subsidiary of the Company had pledged fixed maturity securities with an estimated fair value of $1.3 billion and $564 million, respectively, as collateral and received $800 million and $300 million, respectively, in cash advances under short-term advance agreements with the FHLB of Boston. The liability to return the cash advances is included within payables for collateral under securities loaned and other transactions. The estimated fair value of the reinvestment portfolio acquired with the cash advances was $804 million and $300 million at March 31, 2018 and December 31, 2017, respectively, and consisted primarily of U.S. government and agency fixed maturity securities and Structured Securities. The subsidiary is permitted to withdraw any portion of the pledged collateral over the minimum collateral requirement at any time, other than in the event of a default by the subsidiary.

36

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

6. Investments (continued)

The cash advance liability by loaned security type and remaining tenor of the agreements was as follows at:

	March 31, 2018								December 31, 2017
	Remaining Tenor of Advance Agreements								Remaining Tenor of Advance Agreements
	1 Month or Less		Over 1 to 6 Months		6 Months to 1 Year		Total		1 Month or Less		Over 1 to 6 Months		6 Months to 1 Year		Total
	(In millions)
Cash advance liability by loaned security type:
State and political subdivision	$	100	$	625	$	75	$	800	$	—	$	300	$	—	$	300

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 all asset classes, except mortgage loans, which are presented at carrying value, at:

	March 31, 2018		December 31, 2017
	(In millions)
Invested assets on deposit (regulatory deposits)	$	2,079	$	1,879
Invested assets held in trust (collateral financing arrangement and reinsurance agreements)	2,586		2,490
Invested assets pledged as collateral	25,198		24,174
Total invested assets on deposit, held in trust and pledged as collateral	$	29,863	$	28,543

The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report) and derivative transactions (see Note 7). Amounts in the table above include invested assets and cash and cash equivalents.

See “— Securities Lending” and “— Repurchase Agreements” for information regarding securities on loan, Note 5 for information regarding investments designated to the closed block and “— Equity Securities” for information on common stock holdings in regional banks of the FHLB system, which are considered restricted investments.

Variable Interest Entities

The Company has invested in legal entities 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.

Consolidated VIEs

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.

37

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

6. Investments (continued)

The following table presents the total assets and total liabilities relating to investment-related VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at:

	March 31, 2018				December 31, 2017
	Total Assets		Total Liabilities		Total Assets		Total Liabilities
	(In millions)
Renewable energy partnership (1)	$	109	$	1	$	116	$	3
Other investments	32		6		32		6
Total	$	141	$	7	$	148	$	9

__________________

(1) Assets of the renewable energy partnership primarily consisted of other invested assets.

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:

	March 31, 2018				December 31, 2017
	Carrying Amount		Maximum Exposure to Loss (1)		Carrying Amount		Maximum Exposure to Loss (1)
	(In millions)
Fixed maturity securities AFS:
Structured Securities (2)	$	45,555	$	45,555	$	47,614	$	47,614
U.S. and foreign corporate	1,355		1,355		1,560		1,560
Other limited partnership interests	4,941		9,187		4,834		8,543
Other invested assets	2,300		2,557		2,291		2,625
Other investments	41		46		82		87
Total	$	54,192	$	58,700	$	56,381	$	60,429

__________________

(1) The maximum exposure to loss relating to fixed maturity 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. 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 $113 million and $117 million at March 31, 2018 and December 31, 2017, 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 in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity.

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 both the three months endedMarch 31, 2018 and 2017.

38

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

6. Investments (continued)

Net Investment Income

The components of net investment income were as follows:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Investment income:
Fixed maturity securities	$	2,896		$	2,825
Equity securities	16			31
FVO general account securities (1)	6			29
Mortgage loans	792			736
Policy loans	124			127
Real estate and real estate joint ventures	168			153
Other limited partnership interests	207			240
Cash, cash equivalents and short-term investments	72			51
Operating joint ventures	13			2
Other	106			72
Subtotal	4,400			4,266
Less: Investment expenses	302			261
Subtotal, net	4,098			4,005
Unit-linked investments (1)	(353		)	416
Net investment income	$	3,745		$	4,421

__________________

(1) Changes in estimated fair value subsequent to purchase for investments still held as of the end of the respective periods included in net investment income were principally from Unit-linked investments, and were ($373) million and $340 million for the three months endedMarch 31, 2018 and 2017, respectively.

39

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

6. Investments (continued)

Net Investment Gains (Losses)

Components of Net Investment Gains (Losses)

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

	Three Months Ended March 31,
	2018			2017
	(In millions)
Total gains (losses) on fixed maturity securities:
OTTI losses on fixed maturity securities recognized in earnings	$	—		$	—
Fixed maturity securities — net gains (losses) on sales and disposals	(95		)	(2		)
Total gains (losses) on fixed maturity securities	(95		)	(2		)
Total gains (losses) on equity securities:
OTTI losses recognized — by security type:
Common stock	—			(7		)
Non-redeemable preferred stock	—			(1		)
Total OTTI losses on equity securities recognized in earnings	—			(8		)
Equity securities — net gains (losses) on sales and disposals	102			43
Change in estimated fair value of equity securities (1)	(133		)	—
Total gains (losses) on equity securities	(31		)	35
Mortgage loans	(21		)	(12		)
Real estate and real estate joint ventures	25			(3		)
Other limited partnership interests	—			(7		)
Other	(130		)	(26		)
Subtotal	(252		)	(15		)
Change in estimated fair value of other limited partnership interests and real estate joint ventures	(5		)	—
Non-investment portfolio gains (losses) (2)	(76		)	103
Subtotal	(81		)	103
Total net investment gains (losses)	$	(333	)	$	88

__________________

(1) Changes in estimated fair value subsequent to purchase for equity securities still held as of the end of the period included in net investment gains (losses) were ($37) million for the three months endedMarch 31, 2018. See Note 1.

(2) Non-investment portfolio gains (losses) for the three months endedMarch 31, 2018 includes a loss of $168 million which represents the change in estimated fair value of FVO Brighthouse Common Stock held by the Company. See Note 3.

Gains (losses) from foreign currency transactions included within net investment gains (losses) were$65 millionand$80 millionfor thethree months endedMarch 31, 2018and2017, respectively.

40

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

6. Investments (continued)

Sales or Disposals and Impairments of Fixed Maturity Securities AFS

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

	Three Months Ended March 31,
	2018			2017
	Fixed Maturity Securities
	(In millions)
Proceeds	$	19,070		$	14,461
Gross investment gains	$	106		$	142
Gross investment losses	(201		)	(144		)
OTTI losses	—			—
Net investment gains (losses)	$	(95	)	$	(2	)

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 March 31,
	2018			2017
	(In millions)
Balance, beginning of period	$	138		$	187
Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI	(9		)	(17		)
Increase in cash flows — accretion of previous credit loss OTTI	(1		)	—
Balance, end of period	$	128		$	170

41

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

7. Derivatives

Accounting for Derivatives

Freestanding Derivatives

Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement.

Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivative’s carrying value in other invested assets or other liabilities.

If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows:

Statement of Operations Presentation:	Derivative:
Policyholder benefits and claims	•	Economic hedges of variable annuity guarantees included in future policy benefits
Net investment income	•	Economic hedges of equity method investments in joint ventures
	•	Derivatives held within Unit-linked investments

Hedge Accounting

To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows:

• Fair value hedge (a hedge of the estimated fair value of a recognized asset or liability) - in net derivative gains (losses), consistent with the change in estimated fair value of the hedged item attributable to the designated risk being hedged.

• Cash flow hedge (a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability) - effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses).

• Net investment in a foreign operation hedge - effectiveness in OCI, consistent with the translation adjustment for the hedged net investment in the foreign operation; ineffectiveness in net derivative gains (losses).

The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. Accruals on derivatives in net investment hedges are recognized in OCI.

In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness and measurements of ineffectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income.

The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument.

42

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

7. Derivatives (continued)

When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item.

When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in net derivative gains (losses).

In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses).

Embedded Derivatives

The Company sells variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if:

• the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings;

• the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and

• a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument.

Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees.

See Note 8 for information about the fair value hierarchy for derivatives.

Derivative Strategies

The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. The Company uses a variety of strategies to manage these risks, including the use of derivatives.

Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps and structured interest rate swaps to synthetically replicate investment risks and returns which are not readily available in the cash markets.

43

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

7. Derivatives (continued)

Interest Rate Derivatives

The Company uses a variety of interest rate derivatives to reduce its exposure to changes in interest rates, including interest rate swaps, interest rate total return swaps, caps, floors, swaptions, futures and forwards.

Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). In an interest rate swap, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. The Company utilizes interest rate swaps in fair value, cash flow and nonqualifying hedging relationships.

The Company uses structured interest rate swaps to synthetically create investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and a cash instrument such as a U.S. government and agency, or other fixed maturity security. Structured interest rate swaps are included in interest rate swaps and are not designated as hedging instruments.

Interest rate total return swaps are swaps whereby the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and the London Interbank Offered Rate (“LIBOR”), calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by the counterparty at each due date. Interest rate total return swaps are used by the Company to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). The Company utilizes interest rate total return swaps in nonqualifying hedging relationships.

The Company purchases interest rate caps primarily to protect its floating rate liabilities against rises in interest rates above a specified level, and against interest rate exposure arising from mismatches between assets and liabilities, and interest rate floors primarily to protect its minimum rate guarantee liabilities against declines in interest rates below a specified level. In certain instances, the Company locks in the economic impact of existing purchased caps and floors by entering into offsetting written caps and floors. The Company utilizes interest rate caps and floors in nonqualifying hedging relationships.

In exchange-traded interest rate (Treasury and swap) futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of interest rate securities, to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts and to pledge initial margin based on futures exchange requirements. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded interest rate (Treasury and swap) futures are used primarily to hedge mismatches between the duration of assets in a portfolio and the duration of liabilities supported by those assets, to hedge against changes in value of securities the Company owns or anticipates acquiring, to hedge against changes in interest rates on anticipated liability issuances by replicating Treasury or swap curve performance, and to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded interest rate futures in nonqualifying hedging relationships.

Swaptions are used by the Company to hedge interest rate risk associated with the Company’s long-term liabilities and invested assets. A swaption is an option to enter into a swap with a forward starting effective date. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. The Company utilizes swaptions in nonqualifying hedging relationships. Swaptions are included in interest rate options.

The Company enters into interest rate forwards to buy and sell securities. The price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. The Company utilizes interest rate forwards in cash flow and nonqualifying hedging relationships.

A synthetic guaranteed interest contract (“GIC”) is a contract that simulates the performance of a traditional GIC through the use of financial instruments. Under a synthetic GIC, the contractholder owns the underlying assets. The Company guarantees a rate of return on those assets for a premium. Synthetic GICs are not designated as hedging instruments.

44

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

7. Derivatives (continued)

Foreign Currency Exchange Rate Derivatives

The Company uses foreign currency exchange rate derivatives, including foreign currency swaps, foreign currency forwards, currency options and exchange-traded currency futures, to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies. The Company also uses foreign currency derivatives to hedge the foreign currency exchange rate risk associated with certain of its net investments in foreign operations.

In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in fair value, cash flow and nonqualifying hedging relationships.

In a foreign currency forward transaction, the Company agrees with another party to deliver a specified amount of an identified currency at a specified future date. The price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company utilizes foreign currency forwards in fair value, net investment in foreign operations and nonqualifying hedging relationships.

The Company enters into currency options that give it the right, but not the obligation, to sell the foreign currency amount in exchange for a functional currency amount within a limited time at a contracted price. The contracts may also be net settled in cash, based on differentials in the foreign currency exchange rate and the strike price. The Company uses currency options to hedge against the foreign currency exposure inherent in certain of its variable annuity products. The Company also uses currency options as an economic hedge of foreign currency exposure related to the Company’s international subsidiaries. The Company utilizes currency options in net investment in foreign operations and nonqualifying hedging relationships.

To a lesser extent, the Company uses exchange-traded currency futures to hedge currency mismatches between assets and liabilities, and to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded currency futures in nonqualifying hedging relationships.

Credit Derivatives

The Company enters into purchased credit default swaps to hedge against credit-related changes in the value of its investments. In a credit default swap transaction, the Company agrees with another party to pay, at specified intervals, a premium to hedge credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the delivery of par quantities of the referenced investment equal to the specified swap notional amount in exchange for the payment of cash amounts by the counterparty equal to the par value of the investment surrendered. Credit events vary by type of issuer but typically include bankruptcy, failure to pay debt obligations and involuntary restructuring for corporate obligors, as well as repudiation, moratorium or governmental intervention for sovereign obligors. In each case, payout on a credit default swap is triggered only after the Credit Derivatives Determinations Committee of the International Swaps and Derivatives Association, Inc. (“ISDA”) deems that a credit event has occurred. The Company utilizes credit default swaps in nonqualifying hedging relationships.

The Company enters into written credit default swaps to synthetically create credit investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and one or more cash instruments, such as U.S. government and agency securities, or other fixed maturity securities. These credit default swaps are not designated as hedging instruments.

The Company enters into forwards to lock in the price to be paid for forward purchases of certain securities. The price is agreed upon at the time of the contract and payment for the contract is made at a specified future date. When the primary purpose of entering into these transactions is to hedge against the risk of changes in purchase price due to changes in credit spreads, the Company designates these transactions as credit forwards. The Company utilizes credit forwards in cash flow hedging relationships.

Equity Derivatives

The Company uses a variety of equity derivatives to reduce its exposure to equity market risk, including equity index options, equity variance swaps, exchange-traded equity futures and equity total return swaps.

45

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

7. Derivatives (continued)

Equity index options are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. To hedge against adverse changes in equity indices, the Company enters into contracts to sell the underlying equity index within a limited time at a contracted price. The contracts will be net settled in cash based on differentials in the indices at the time of exercise and the strike price. Certain of these contracts may also contain settlement provisions linked to interest rates. In certain instances, the Company may enter into a combination of transactions to hedge adverse changes in equity indices within a pre-determined range through the purchase and sale of options. The Company utilizes equity index options in nonqualifying hedging relationships.

Equity variance swaps are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. In an equity variance swap, the Company agrees with another party to exchange amounts in the future, based on changes in equity volatility over a defined period. The Company utilizes equity variance swaps in nonqualifying hedging relationships.

In exchange-traded equity futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of equity securities, to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts and to pledge initial margin based on futures exchange requirements. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded equity futures are used primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded equity futures in nonqualifying hedging relationships.

In an equity total return swap, the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and LIBOR, calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. The Company uses equity total return swaps to hedge its equity market guarantees in certain of its insurance products. Equity total return swaps can be used as hedges or to synthetically create investments. The Company utilizes equity total return swaps in nonqualifying hedging relationships.

46

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

7. Derivatives (continued)

Primary Risks Managed by Derivatives

The following table presents the primary underlying risk exposure, gross notional amount, and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at:

		March 31, 2018						December 31, 2017
	Primary Underlying Risk Exposure	Gross Notional Amount		Estimated Fair Value				Gross Notional Amount		Estimated Fair Value
				Assets		Liabilities				Assets		Liabilities
		(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges:
Interest rate swaps	Interest rate	$	2,521	$	2,111	$	2	$	3,843	$	2,289	$	3
Foreign currency swaps	Foreign currency exchange rate	1,146		65		36		1,116		50		18
Foreign currency forwards	Foreign currency exchange rate	3,477		97		4		3,253		2		37
Subtotal		7,144		2,273		42		8,212		2,341		58
Cash flow hedges:
Interest rate swaps	Interest rate	3,580		158		14		3,584		235		4
Interest rate forwards	Interest rate	3,143		—		218		3,332		—		128
Foreign currency swaps	Foreign currency exchange rate	33,236		1,210		1,778		32,152		1,142		1,665
Subtotal		39,959		1,368		2,010		39,068		1,377		1,797
Foreign operations hedges:
Foreign currency forwards	Foreign currency exchange rate	458		2		5		332		2		5
Currency options	Foreign currency exchange rate	8,587		19		263		9,408		44		163
Subtotal		9,045		21		268		9,740		46		168
Total qualifying hedges		56,148		3,662		2,320		57,020		3,764		2,023
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate swaps	Interest rate	52,610		1,597		279		60,485		2,203		576
Interest rate floors	Interest rate	7,201		66		—		7,201		92		—
Interest rate caps	Interest rate	46,020		221		2		53,079		78		2
Interest rate futures	Interest rate	2,991		2		3		4,366		2		4
Interest rate options	Interest rate	14,816		575		—		12,009		656		11
Interest rate forwards	Interest rate	217		—		51		217		—		42
Interest rate total return swaps	Interest rate	1,048		14		25		1,048		8		2
Synthetic GICs	Interest rate	11,720		—		—		11,318		—		—
Foreign currency swaps	Foreign currency exchange rate	10,773		580		461		9,902		693		506
Foreign currency forwards	Foreign currency exchange rate	13,803		295		67		12,238		79		190
Currency futures	Foreign currency exchange rate	900		—		8		846		2		—
Currency options	Foreign currency exchange rate	2,391		9		—		3,123		55		6
Credit default swaps — purchased	Credit	1,888		5		41		2,020		7		43
Credit default swaps — written	Credit	11,421		210		2		11,375		271		—
Equity futures	Equity market	3,088		7		19		4,005		18		4
Equity index options	Equity market	19,509		594		603		19,886		569		690
Equity variance swaps	Equity market	4,661		52		194		4,661		54		199
Equity total return swaps	Equity market	1,012		35		—		1,117		—		41
Total non-designated or nonqualifying derivatives		206,069		4,262		1,755		218,896		4,787		2,316
Total		$	262,217	$	7,924	$	4,075	$	275,916	$	8,551	$	4,339

47

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

7. Derivatives (continued)

Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both March 31, 2018 and December 31, 2017. The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and that generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules; (ii) derivatives that economically hedge insurance liabilities that contain mortality or morbidity risk and that generally do not qualify for hedge accounting because the lack of these risks in the derivatives cannot support an expectation of a highly effective hedging relationship; (iii) derivatives that economically hedge embedded derivatives that do not qualify for hedge accounting because the changes in estimated fair value of the embedded derivatives are already recorded in net income; and (iv) written credit default swaps and interest rate swaps that are used to synthetically create investments and that do not qualify for hedge accounting because they do not involve a hedging relationship. For these nonqualified derivatives, changes in market factors can lead to the recognition of fair value changes on the statement of operations without an offsetting gain or loss recognized in earnings for the item being hedged.

Net Derivative Gains (Losses)

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

	Three Months Ended March 31,
	2018		2017
	(In millions)
Freestanding derivatives and hedging gains (losses) (1)	$	312	$	(369	)
Embedded derivatives gains (losses)	37		157
Total net derivative gains (losses)	$	349	$	(212	)

__________________

(1) Includes foreign currency transaction gains (losses) on hedged items in cash flow and nonqualifying hedging relationships, which are not presented elsewhere in this note.

The following table presents earned income on derivatives:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Qualifying hedges:
Net investment income	$	81		$	75
Interest credited to policyholder account balances	(23		)	(6		)
Other expenses	(2		)	(3		)
Nonqualifying hedges:
Net derivative gains (losses)	133			168
Policyholder benefits and claims	2			2
Total	$	191		$	236

48

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

7. Derivatives (continued)

Nonqualifying Derivatives and Derivatives for Purposes Other Than Hedging

The following table presents the amount and location of gains (losses) recognized in income for derivatives that were not designated or not qualifying as hedging instruments:

	Net Derivative Gains (Losses)			Net Investment Income (1)			Policyholder Benefits and Claims (2)
	(In millions)
Three Months Ended March 31, 2018
Interest rate derivatives	$	(235	)	$	4		$	(7	)
Foreign currency exchange rate derivatives	387			—			2
Credit derivatives — purchased	(3		)	—			—
Credit derivatives — written	(44		)	—			—
Equity derivatives	98			1			12
Total	$	203		$	5		$	7
Three Months Ended March 31, 2017
Interest rate derivatives	$	(390	)	$	2		$	2
Foreign currency exchange rate derivatives	363			—			—
Credit derivatives — purchased	(8		)	—			—
Credit derivatives — written	32			—			—
Equity derivatives	(354		)	(3		)	(72		)
Total	$	(357	)	$	(1	)	$	(70	)

__________________

(1) Changes in estimated fair value related to economic hedges of equity method investments in joint ventures and derivatives held within Unit-linked investments.

(2) Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits.

Fair Value Hedges

The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities; and (iii) foreign currency forwards to hedge the foreign currency fair value exposure of foreign currency denominated investments.

49

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

7. Derivatives (continued)

The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges within net derivative gains (losses). The following table presents the amount of such net derivative gains (losses):

Derivatives in Fair Value Hedging Relationships	Hedged Items in Fair Value Hedging Relationships	Net Derivative Gains (Losses) Recognized for Derivatives			Net Derivative Gains (Losses) Recognized for Hedged Items			Ineffectiveness Recognized in Net Derivative Gains (Losses)
		(In millions)
Three Months Ended March 31, 2018
Interest rate swaps:	Fixed maturity securities	$	3		$	(2	)	$	1
	Policyholder liabilities (1)	(213		)	212			(1		)
Foreign currency swaps:	Foreign-denominated fixed maturity securities and mortgage loans	(27		)	27			—
	Foreign-denominated policyholder account balances (2)	18			(18		)	—
Foreign currency forwards:	Foreign-denominated fixed maturity securities	179			(168		)	11
Total		$	(40	)	$	51		$	11
Three Months Ended March 31, 2017
Interest rate swaps:	Fixed maturity securities	$	1		$	(1	)	$	—
	Policyholder liabilities (1)	(51		)	50			(1		)
Foreign currency swaps:	Foreign-denominated fixed maturity securities	(3		)	3			—
	Foreign-denominated policyholder account balances (2)	1			2			3
Foreign currency forwards:	Foreign-denominated fixed maturity securities	45			(41		)	4
Total		$	(7	)	$	13		$	6

__________________

(1) Fixed rate liabilities reported in policyholder account balances or future policy benefits.

(2) Fixed rate or floating rate liabilities.

For the Company’s foreign currency forwards, the change in the estimated fair value of the derivative related to the changes in the difference between the spot price and the forward price is excluded from the assessment of hedge effectiveness. For all other derivatives, all components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. For the three months endedMarch 31, 2018 and 2017, the component of the change in estimated fair value of derivatives that was excluded from the assessment of hedge effectiveness was ($8) million and ($7) million, respectively.

50

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

7. Derivatives (continued)

Cash Flow Hedges

The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities; (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments; (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments; and (v) interest rate swaps and interest rate forwards to hedge forecasted fixed-rate borrowings.

In certain instances, the Company discontinued cash flow hedge accounting because the forecasted transactions were no longer probable of occurring. Because certain of the forecasted transactions also were not probable of occurring within two months of the anticipated date, the Company reclassified amounts from AOCI into net derivative gains (losses). These amounts were less than $1 million and $20 million for the three months endedMarch 31, 2018 and 2017, respectively.

At March 31, 2018 and December 31, 2017, the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions did not exceed four years and five years, respectively.

At March 31, 2018 and December 31, 2017, the balance in AOCI associated with cash flow hedges was $936 million and $1.5 billion, respectively. For the three months ended March 31, 2017, the amount of deferred gains (losses) in AOCI related to Brighthouse derivatives was ($19) million and the amount of income reclassified from AOCI into income (loss) from discontinued operations was $12 million.

The following table presents the effects of derivatives in cash flow hedging relationships on the interim condensed consolidated statements of operations and comprehensive income (loss) and the interim condensed consolidated statements of equity. The table excludes the effects of Brighthouse derivatives prior to the Separation.

Derivatives in Cash Flow Hedging Relationships	Amount of Gains (Losses) Deferred in AOCI on Derivatives			Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss)							Amount and Location of Gains (Losses) Recognized in Income (Loss) on Derivatives
	(Effective Portion)			(Effective Portion)							(Ineffective Portion)
				Net Derivative Gains (Losses)			Net Investment Income		Other Expenses		Net Derivative Gains (Losses)
	(In millions)
Three Months Ended March 31, 2018
Interest rate swaps	$	(173	)	$	16		$	3	$	—	$	(2	)
Interest rate forwards	(104		)	5			1		—		—
Foreign currency swaps	(75		)	139			—		1		1
Total	$	(352	)	$	160		$	4	$	1	$	(1	)
Three Months Ended March 31, 2017
Interest rate swaps	$	5		$	8		$	4	$	—	$	1
Interest rate forwards	44			(4		)	—		—		—
Foreign currency swaps	180			208			—		1		2
Total	$	229		$	212		$	4	$	1	$	3

All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

AtMarch 31, 2018, the Company expected to reclassify ($17)million of deferred net gains (losses) on derivatives in AOCI, included in the table above, to earnings within the next 12 months.

Hedges of Net Investments in Foreign Operations

The Company uses foreign currency exchange rate derivatives, which may include foreign currency forwards and currency options, to hedge portions of its net investments in foreign operations against adverse movements in exchange rates. The Company measures ineffectiveness on these derivatives based upon the change in forward rates.

51

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

7. Derivatives (continued)

When net investments in foreign operations are sold or substantially liquidated, the amounts in AOCI are reclassified to the statement of operations.

The following table presents the effects of derivatives in net investment hedging relationships on the interim condensed consolidated statements of operations and comprehensive income (loss) and the interim condensed consolidated statements of equity:

Derivatives in Net Investment Hedging Relationships (1)	Amount of Gains (Losses) Deferred in AOCI (Effective Portion)
	(In millions)
Three Months Ended March 31, 2018
Foreign currency forwards	$	(8	)
Currency options	(149		)
Total	$	(157	)
Three Months Ended March 31, 2017
Foreign currency forwards	$	(95	)
Currency options	(231		)
Total	$	(326	)

__________________

(1) There was no ineffectiveness recognized for the Company’s hedges of net investments in foreign operations. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

At March 31, 2018 and December 31, 2017, the cumulative foreign currency translation gain (loss) recorded in AOCI related to hedges of net investments in foreign operations was $152 million and $309 million, respectively.

Credit Derivatives

In connection with synthetically created credit investment transactions, the Company writes credit default swaps for which it receives a premium to insure credit risk. Such credit derivatives are included within the nonqualifying derivatives and derivatives for purposes other than hedging table. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation. The Company’s maximum amount at risk, assuming the value of all referenced credit obligations is zero, was $11.4 billion at both March 31, 2018 and December 31, 2017. The Company can terminate these contracts at any time through cash settlement with the counterparty at an amount equal to the then current estimated fair value of the credit default swaps. At March 31, 2018 and December 31, 2017, the Company would have received $208 million and $271 million, respectively, to terminate all of these contracts.

52

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

7. Derivatives (continued)

The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at:

	March 31, 2018					December 31, 2017
Rating Agency Designation of Referenced Credit Obligations (1)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)
	(Dollars in millions)
Aaa/Aa/A
Single name credit default swaps (3)	$	7	$	381	2.4	$	7	$	375	2.6
Credit default swaps referencing indices	40		2,267		2.5	44		2,268		2.7
Subtotal	47		2,648		2.5	51		2,643		2.7
Baa
Single name credit default swaps (3)	7		656		1.9	7		605		1.8
Credit default swaps referencing indices	132		7,747		5.2	183		7,662		5.0
Subtotal	139		8,403		5.0	190		8,267		4.8
Ba
Single name credit default swaps (3)	—		20		1.2	1		115		3.4
Credit default swaps referencing indices	—		—		—	—		—		—
Subtotal	—		20		1.2	1		115		3.4
B
Single name credit default swaps (3)	2		20		3.2	2		20		3.5
Credit default swaps referencing indices	20		330		5.2	27		330		5.0
Subtotal	22		350		5.1	29		350		4.9
Total	$	208	$	11,421	4.4	$	271	$	11,375	4.3

__________________

(1) The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), Standard & Poor’s Global Ratings (“S&P”) and Fitch Ratings. If no rating is available from a rating agency, then an internally developed rating is used.

(2) The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts.

(3) Single name credit default swaps may be referenced to the credit of corporations, foreign governments, or state and political subdivisions.

The Company has also entered into credit default swaps to purchase credit protection on certain of the referenced credit obligations in the table above. As a result, the maximum amount of potential future recoveries available to offset the $11.4 billion of future payments under credit default provisions at both March 31, 2018 and December 31, 2017 set forth in the table above were $16 million and $27 million at March 31, 2018 and December 31, 2017, respectively.

53

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

7. Derivatives (continued)

Credit Risk on Freestanding Derivatives

The Company may be exposed to credit-related losses in the event of nonperformance by its counterparties to derivatives. Generally, the current credit exposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements.

The Company manages its credit risk related to derivatives by entering into transactions with creditworthy counterparties and establishing and monitoring exposure limits. The Company’s OTC-bilateral derivative transactions are governed by ISDA Master Agreements which provide for legally enforceable set-off and close-out netting of exposures to specific counterparties in the event of early termination of a transaction, which includes, but is not limited to, events of default and bankruptcy. In the event of an early termination, the Company is permitted to set off receivables from the counterparty against payables to the same counterparty arising out of all included transactions. Substantially all of the Company’s ISDA Master Agreements also include Credit Support Annex provisions which require both the pledging and accepting of collateral in connection with its OTC-bilateral derivatives.

The Company’s OTC-cleared derivatives are effected through central clearing counterparties and its exchange-traded derivatives are effected through regulated exchanges. Such positions are marked to market and margined on a daily basis (both initial margin and variation margin), and the Company has minimal exposure to credit-related losses in the event of nonperformance by counterparties to such derivatives.

See Note 8 for a description of the impact of credit risk on the valuation of derivatives.

The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:

	March 31, 2018						December 31, 2017
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement	Assets			Liabilities			Assets			Liabilities
	(In millions)
Gross estimated fair value of derivatives:
OTC-bilateral (1)	$	7,733		$	3,948		$	7,955		$	4,059
OTC-cleared (1), (6)	230			47			649			223
Exchange-traded	9			30			22			8
Total gross estimated fair value of derivatives (1)	7,972			4,025			8,626			4,290
Amounts offset on the interim condensed consolidated balance sheets	—			—			—			—
Estimated fair value of derivatives presented on the interim condensed consolidated balance sheets (1), (6)	7,972			4,025			8,626			4,290
Gross amounts not offset on the interim condensed consolidated balance sheets:
Gross estimated fair value of derivatives: (2)
OTC-bilateral	(2,376		)	(2,376		)	(2,528		)	(2,528		)
OTC-cleared	(21		)	(21		)	(35		)	(35		)
Exchange-traded	(1		)	(1		)	(1		)	(1		)
Cash collateral: (3), (4)
OTC-bilateral	(4,082		)	—			(4,169		)	—
OTC-cleared	(194		)	(9		)	(584		)	(179		)
Exchange-traded	—			(21		)	—			(5		)
Securities collateral: (5)
OTC-bilateral	(981		)	(1,519		)	(1,004		)	(1,474		)
OTC-cleared	—			(17		)	—			(9		)
Exchange-traded	—			(8		)	—			(2		)
Net amount after application of master netting agreements and collateral	$	317		$	53		$	305		$	57

__________________

54

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

7. Derivatives (continued)

(1) At March 31, 2018 and December 31, 2017, derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $48 million and $75 million, respectively, and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of ($50) million and ($49) million, respectively.

(2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals.

(3) Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet.

(4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At March 31, 2018 and December 31, 2017, the Company received excess cash collateral of $204 million and $253 million, respectively, and provided excess cash collateral of $263 million and $272 million, respectively, which is not included in the table above due to the foregoing limitation.

(5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at March 31, 2018, none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At March 31, 2018 and December 31, 2017, the Company received excess securities collateral with an estimated fair value of $74 million and $108 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At March 31, 2018 and December 31, 2017, the Company provided excess securities collateral with an estimated fair value of $301 million and $305 million, respectively, for its OTC-bilateral derivatives, and $507 million and $522 million, respectively, for its OTC-cleared derivatives, and $77 million and $89 million, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation.

(6) Effective January 16, 2018, the LCH amended its rulebook, resulting in the characterization of variation margin transfers as settlement payments, as opposed to adjustments to collateral. See Note 1 for further information on the LCH amendments.

The Company’s collateral arrangements for its OTC-bilateral derivatives generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the collateral amount owed by that counterparty reaches a minimum transfer amount. A small number of these arrangements also include credit-contingent provisions that include a threshold above which collateral must be posted. Such agreements provide for a reduction of these thresholds (on a sliding scale that converges toward zero) in the event of downgrades in the credit ratings of MetLife, Inc. and/or the counterparty. In addition, substantially all of the Company’s netting agreements for derivatives contain provisions that require both the Company and the counterparty to maintain a specific investment grade credit rating from each of Moody’s and S&P. If a party’s credit or financial strength rating, as applicable, were to fall below that specific investment grade credit rating, that party would be in violation of these provisions, and the other party to the derivatives could terminate the transactions and demand immediate settlement and payment based on such party’s reasonable valuation of the derivatives.

The following table presents the estimated fair value of the Company’s OTC-bilateral derivatives that were in a net liability position after considering the effect of netting agreements, together with the estimated fair value and balance sheet location of the collateral pledged. The table also presents the incremental collateral that MetLife, Inc. would be required to provide if there was a one-notch downgrade in MetLife, Inc.’s senior unsecured debt rating at the reporting date or if the Company’s credit or financial strength rating, as applicable, at the reporting date sustained a downgrade to a level that triggered full overnight collateralization or termination of the derivative position. OTC-bilateral derivatives that are not subject to collateral agreements are excluded from this table.

55

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

7. Derivatives (continued)

	March 31, 2018						December 31, 2017
	Derivatives Subject to Credit- Contingent Provisions		Derivatives Not Subject to Credit- Contingent Provisions		Total		Derivatives Subject to Credit- Contingent Provisions		Derivatives Not Subject to Credit- Contingent Provisions		Total
	(In millions)
Estimated Fair Value of Derivatives in a Net Liability Position (1)	$	1,533	$	39	$	1,572	$	1,508	$	24	$	1,532
Estimated Fair Value of Collateral Provided:
Fixed maturity securities	$	1,734	$	50	$	1,784	$	1,675	$	26	$	1,701
Cash	$	—	$	—	$	—	$	—	$	—	$	—
Estimated Fair Value of Incremental Collateral Provided Upon:
One-notch downgrade in the Company’s credit or financial strength rating, as applicable	$	14	$	—	$	14	$	15	$	—	$	15
Downgrade in the Company’s credit or financial strength rating, as applicable, to a level that triggers full overnight collateralization or termination of the derivative position	$	15	$	—	$	15	$	20	$	—	$	20

__________________

(1) After taking into consideration the existence of netting agreements.

Embedded Derivatives

The Company issues certain products or purchases certain investments that contain embedded derivatives that are required to be separated from their host contracts and accounted for as freestanding derivatives. These host contracts principally include: variable annuities with guaranteed minimum benefits, including GMWBs, GMABs and certain GMIBs; ceded reinsurance of guaranteed minimum benefits related to certain GMIBs; assumed reinsurance of guaranteed minimum benefits related to GMWBs and GMABs; funding agreements with equity or bond indexed crediting rates; funds withheld on ceded reinsurance; fixed annuities with equity-indexed returns; and certain debt and equity securities.

The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at:

	Balance Sheet Location	March 31, 2018		December 31, 2017
		(In millions)
Embedded derivatives within asset host contracts:
Ceded guaranteed minimum benefits	Premiums, reinsurance and other receivables	$	157	$	144
Options embedded in debt or equity securities (1)	Investments	—		(132		)
Embedded derivatives within asset host contracts		$	157	$	12
Embedded derivatives within liability host contracts:
Direct guaranteed minimum benefits	Policyholder account balances	$	23	$	32
Assumed guaranteed minimum benefits	Policyholder account balances	392		291
Funds withheld on ceded reinsurance	Other liabilities	2		25
Fixed annuities with equity indexed returns	Policyholder account balances	68		70
Embedded derivatives within liability host contracts		$	485	$	418

__________________

(1) In connection with the adoption of new guidance related to the recognition and measurement of financial instruments (see Note 1), effective January 1, 2018, the Company is no longer required to bifurcate and account separately for derivatives embedded in equity securities. Beginning January 1, 2018, the entire change in fair value of equity securities is recognized as a component of net investment gains and losses.

56

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

7. Derivatives (continued)

The following table presents changes in estimated fair value related to embedded derivatives:

	Three Months Ended March 31,
	2018		2017
	(In millions)
Net derivative gains (losses) (1)	$	37	$	157

__________________

(1) The valuation of guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $20 million and ($52) million for the three months endedMarch 31, 2018 and 2017, respectively.

8. Fair Value

When developing estimated fair values, considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts.

Recurring Fair Value Measurements

The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below at:

57

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

8. Fair Value (continued)

	March 31, 2018
	Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	77,597	$	4,237	$	81,834
Foreign government	—		64,331		179		64,510
Foreign corporate	—		48,890		6,573		55,463
U.S. government and agency	22,873		20,954		—		43,827
RMBS	—		24,155		3,256		27,411
State and political subdivision	—		12,192		—		12,192
ABS	—		10,739		1,025		11,764
CMBS	—		7,409		301		7,710
Total fixed maturity securities	22,873		266,267		15,571		304,711
Equity securities	909		213		422		1,544
Unit-linked and FVO Securities (1)	13,705		2,453		286		16,444
Other limited partnership interests	—		—		194		194
Short-term investments (2)	2,845		990		615		4,450
Residential mortgage loans — FVO	—		—		438		438
Other investments	83		90		—		173
Derivative assets: (3)
Interest rate	2		4,728		14		4,744
Foreign currency exchange rate	—		2,120		157		2,277
Credit	—		180		35		215
Equity market	7		603		78		688
Total derivative assets	9		7,631		284		7,924
Embedded derivatives within asset host contracts (4)	—		—		157		157
Separate account assets (5)	88,618		106,511		1,229		196,358
Total assets	$	129,042	$	384,155	$	19,196	$	532,393
Liabilities
Derivative liabilities: (3)
Interest rate	$	3	$	348	$	243	$	594
Foreign currency exchange rate	8		2,585		29		2,622
Credit	—		43		—		43
Equity market	19		603		194		816
Total derivative liabilities	30		3,579		466		4,075
Embedded derivatives within liability host contracts (4)	—		—		485		485
Separate account liabilities (5)	—		12		5		17
Total liabilities	$	30	$	3,591	$	956	$	4,577

58

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

8. Fair Value (continued)

	December 31, 2017
	Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	78,171	$	4,490	$	82,661
Foreign government	—		61,325		209		61,534
Foreign corporate	—		48,840		6,729		55,569
U.S. government and agency	26,052		21,342		—		47,394
RMBS	—		25,339		3,461		28,800
State and political subdivision	—		12,455		—		12,455
ABS	—		11,204		1,087		12,291
CMBS	—		7,934		293		8,227
Total fixed maturity securities	26,052		266,610		16,269		308,931
Equity securities	1,104		981		428		2,513
Unit-linked and FVO Securities (1)	14,028		2,355		362		16,745
Short-term investments (2)	3,001		1,252		33		4,286
Residential mortgage loans — FVO	—		—		520		520
Other investments	81		84		—		165
Derivative assets: (3)
Interest rate	2		5,553		8		5,563
Foreign currency exchange rate	2		1,954		113		2,069
Credit	—		240		38		278
Equity market	18		548		75		641
Total derivative assets	22		8,295		234		8,551
Embedded derivatives within asset host contracts (4)	—		—		144		144
Separate account assets (5)	89,916		114,124		961		205,001
Total assets	$	134,204	$	393,701	$	18,951	$	546,856
Liabilities
Derivative liabilities: (3)
Interest rate	$	4	$	638	$	130	$	772
Foreign currency exchange rate	—		2,553		37		2,590
Credit	—		43		—		43
Equity market	4		731		199		934
Total derivative liabilities	8		3,965		366		4,339
Embedded derivatives within liability host contracts (4)	—		—		418		418
Separate account liabilities (5)	—		7		2		9
Total liabilities	$	8	$	3,972	$	786	$	4,766

__________________

(1) Unit-linked and FVO Securities were comprised of over 85% Unit-linked investments at both March 31, 2018 and December 31, 2017.

(2) Short-term investments as presented in the tables above differ from the amounts presented on the consolidated balance sheets because certain short-term investments are not measured at estimated fair value on a recurring basis.

59

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

8. Fair Value (continued)

(3) Derivative assets are presented within other invested assets on the interim condensed consolidated balance sheets and derivative liabilities are presented within other liabilities on the interim condensed consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the interim condensed consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables.

(4) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables and other invested assets on the interim condensed consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the interim condensed consolidated balance sheets. At March 31, 2018 and December 31, 2017, debt and equity securities also included embedded derivatives of $0 and ($132) million, respectively.

(5) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. Separate account liabilities presented in the tables above represent derivative liabilities.

The following describes the valuation methodologies used to measure assets and liabilities at fair value. The description includes the valuation techniques and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy.

Investments

Valuation Controls and Procedures

On behalf of the Company’s Chief Investment Officer and Chief Financial Officer (“CFO”), a pricing and valuation committee that is independent of the trading and investing functions and comprised of senior management, provides oversight of control systems and valuation policies for securities, mortgage loans and derivatives. On a quarterly basis, this committee reviews and approves new transaction types and markets, ensures that observable market prices and market-based parameters are used for valuation, wherever possible, and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. This committee also provides oversight of the selection of independent third-party pricing providers and the controls and procedures to evaluate third-party pricing. Periodically, the Chief Accounting Officer reports to the Audit Committee of MetLife, Inc.’s Board of Directors regarding compliance with fair value accounting standards.

The Company reviews its valuation methodologies on an ongoing basis and revises those methodologies when necessary based on changing market conditions. Assurance is gained on the overall reasonableness and consistent application of input assumptions, valuation methodologies and compliance with fair value accounting standards through controls designed to ensure valuations represent an exit price. Several controls are utilized, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, comparing fair value estimates to management’s knowledge of the current market, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. The Company ensures that prices received from independent brokers, also referred to herein as “consensus pricing,” represent a reasonable estimate of fair value by considering such pricing relative to the Company’s knowledge of the current market dynamics and current pricing for similar financial instruments. While independent non-binding broker quotations are utilized, they are not used for a significant portion of the portfolio. For example, fixed maturity securities priced using independent non-binding broker quotations represent less than 1% of the total estimated fair value of fixed maturity securities and 2% of the total estimated fair value of Level 3 fixed maturity securities at March 31, 2018.

60

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

8. Fair Value (continued)

The Company also applies a formal process to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained, or an internally developed valuation is prepared. Internally developed valuations of current estimated fair value, which reflect internal estimates of liquidity and nonperformance risks, compared with pricing received from the independent pricing services, did not produce material differences in the estimated fair values for the majority of the portfolio; accordingly, overrides were not material. This is, in part, because internal estimates of liquidity and nonperformance risks are generally based on available market evidence and estimates used by other market participants. In the absence of such market-based evidence, management’s best estimate is used.

Securities, Short-term Investments and Other Investments

When available, the estimated fair value of these financial instruments is based on quoted prices in active markets that are readily and regularly obtainable. Generally, these are the most liquid of the Company’s securities holdings and valuation of these securities does not involve management’s judgment.

When quoted prices in active markets are not available, the determination of estimated fair value is based on market standard valuation methodologies, giving priority to observable inputs. The significant inputs to the market standard valuation methodologies for certain types of securities with reasonable levels of price transparency are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. When observable inputs are not available, the market standard valuation methodologies rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs can be based in large part on management’s judgment or estimation and cannot be supported by reference to market activity. Even though these inputs are unobservable, management believes they are consistent with what other market participants would use when pricing such securities and are considered appropriate given the circumstances.

The estimated fair value of Unit-linked and FVO Securities and other investments is determined on a basis consistent with the methodologies described herein for securities.

Other Limited Partnership Interests

The estimated fair values of other limited partnership interests are generally based on the Company’s share of the net asset value (“NAV”) of the other limited partnership interests as provided on the financial statements of the investee. In certain circumstances, management may adjust the NAV when it has sufficient evidence to support applying such adjustments.

61

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

8. Fair Value (continued)

The valuation of most instruments listed below is determined using independent pricing sources, matrix pricing, discounted cash flow methodologies or other similar techniques that use either observable market inputs or unobservable inputs.

Instrument	Level 2 Observable Inputs			Level 3 Unobservable Inputs
Fixed maturity securities
U.S. corporate and Foreign corporate securities
	Valuation Approaches: Principally the market and income approaches.			Valuation Approaches: Principally the market approach.
	Key Inputs:			Key Inputs:
	•	quoted prices in markets that are not active		•	illiquidity premium
	•	benchmark yields; spreads off benchmark yields; new issuances; issuer rating		•	delta spread adjustments to reflect specific credit-related issues
	•	trades of identical or comparable securities; duration		•	credit spreads
	•	Privately-placed securities are valued using the additional key inputs:		•	quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2
		•	market yield curve; call provisions
		•	observable prices and spreads for similar public or private securities that incorporate the credit quality and industry sector of the issuer	•	independent non-binding broker quotations
		•	delta spread adjustments to reflect specific credit-related issues
Foreign government, U.S. government and agency and State and political subdivision securities
	Valuation Approaches: Principally the market approach.			Valuation Approaches: Principally the market approach.
	Key Inputs:			Key Inputs:
	•	quoted prices in markets that are not active		•	independent non-binding broker quotations
	•	benchmark U.S. Treasury yield or other yields		•	quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2
	•	the spread off the U.S. Treasury yield curve for the identical security
	•	issuer ratings and issuer spreads; broker-dealer quotes		•	credit spreads
	•	comparable securities that are actively traded
Structured Securities
	Valuation Approaches: Principally the market and income approaches.			Valuation Approaches: Principally the market and income approaches.
	Key Inputs:			Key Inputs:
	•	quoted prices in markets that are not active		•	credit spreads
	•	spreads for actively traded securities; spreads off benchmark yields		•	quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2
	•	expected prepayment speeds and volumes
	•	current and forecasted loss severity; ratings; geographic region		•	independent non-binding broker quotations
	•	weighted average coupon and weighted average maturity
	•	average delinquency rates; debt-service coverage ratios
	•	issuance-specific information, including, but not limited to:
		•	collateral type; structure of the security; vintage of the loans
		•	payment terms of the underlying assets
		•	payment priority within the tranche; deal performance

62

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

8. Fair Value (continued)

Instrument	Level 2 Observable Inputs		Level 3 Unobservable Inputs
Equity securities
	Valuation Approaches: Principally the market approach.		Valuation Approaches: Principally the market and income approaches.
	Key Input:		Key Inputs:
	•	quoted prices in markets that are not considered active	•	credit ratings; issuance structures
			•	quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2
			•	independent non-binding broker quotations
Unit-linked and FVO Securities, Short-term investments, Other limited partnership interests and Other investments
	•	Unit-linked and FVO Securities include mutual fund interests without readily determinable fair values given prices are not published publicly. Valuation of these mutual funds is based upon quoted prices or reported NAV provided by the fund managers, which were based on observable inputs.	•	Unit-linked and FVO Securities and short-term investments are of a similar nature and class to the fixed maturity and equity securities described above; accordingly, the valuation approaches and unobservable inputs used in their valuation are also similar to those described above.
	•	All other investments are of a similar nature and class to the fixed maturity and equity securities described above; accordingly, the valuation approaches and observable inputs used in their valuation are also similar to those described above.	•	Valuation approaches for other limited partnership interests are discussed below.
Residential mortgage loans — FVO
	•	N/A	Valuation Approaches: Principally the market approach.
			Valuation Techniques and Key Inputs: These investments are based primarily on matrix pricing or other similar techniques that utilize inputs from mortgage servicers that are unobservable or cannot be derived principally from, or corroborated by, observable market data.
Separate account assets and Separate account liabilities (1)
Mutual funds and hedge funds without readily determinable fair values as prices are not published publicly
	Key Input:		•	N/A
	•	quoted prices or reported NAV provided by the fund managers
Other limited partnership interests
	•	N/A	•	Valued giving consideration to the underlying holdings of the partnerships and adjusting, if appropriate.
			Key Inputs:
			•	liquidity; bid/ask spreads; performance record of the fund manager
			•	other relevant variables that may impact the exit value of the particular partnership interest

__________________

(1) Estimated fair value equals carrying value, based on the value of the underlying assets, including: mutual fund interests, fixed maturity securities, equity securities, derivatives, hedge funds, other limited partnership interests, short-term investments and cash and cash equivalents. Fixed maturity securities, equity securities, derivatives, short-term investments and cash and cash equivalents are similar in nature to the instruments described under “— Securities, Short-term Investments and Other Investments,” “— Other Limited Partnership Interests” and “— Derivatives — Freestanding Derivatives.”

63

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

8. Fair Value (continued)

Derivatives

The estimated fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives, or through the use of pricing models for OTC-bilateral and OTC-cleared derivatives. The determination of estimated fair value, when quoted market values are not available, is based on market standard valuation methodologies and inputs that management believes are consistent with what other market participants would use when pricing such instruments. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk, nonperformance risk, volatility, liquidity and changes in estimates and assumptions used in the pricing models. The valuation controls and procedures for derivatives are described in “— Investments.”

The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Certain OTC-bilateral and OTC-cleared derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments.

Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income.

The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period.

Freestanding Derivatives

Level 2 Valuation Approaches and Key Inputs:

This level includes all types of derivatives utilized by the Company with the exception of exchange-traded derivatives included within Level 1 and those derivatives with unobservable inputs as described in Level 3.

Level 3 Valuation Approaches and Key Inputs:

These valuation methodologies generally use the same inputs as described in the corresponding sections for Level 2 measurements of derivatives. However, these derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data.

64

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

8. Fair Value (continued)

Freestanding derivatives are principally valued using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models. Key inputs are as follows:

Instrument		Interest Rate		Foreign Currency Exchange Rate		Credit		Equity Market
Inputs common to Level 2 and Level 3 by instrument type	•	swap yield curves	•	swap yield curves	•	swap yield curves	•	swap yield curves
	•	basis curves	•	basis curves	•	credit curves	•	spot equity index levels
	•	interest rate volatility (1)	•	currency spot rates	•	recovery rates	•	dividend yield curves
			•	cross currency basis curves			•	equity volatility (1)
			•	currency volatility (1)
Level 3	•	swap yield curves (2)	•	swap yield curves (2)	•	swap yield curves (2)	•	dividend yield curves (2)
	•	basis curves (2)	•	basis curves (2)	•	credit curves (2)	•	equity volatility (1), (2)
	•	repurchase rates	•	cross currency basis curves (2)	•	credit spreads	•	correlation between model inputs (1)
			•	currency correlation	•	repurchase rates
			•	currency volatility (1)	•	independent non-binding broker quotations

__________________

(1) Option-based only.

(2) Extrapolation beyond the observable limits of the curve(s).

Embedded Derivatives

Embedded derivatives principally include certain direct, assumed and ceded variable annuity guarantees, equity or bond indexed crediting rates within certain funding agreements and annuity contracts, and those related to funds withheld on ceded reinsurance agreements. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income.

The Company issues certain variable annuity products with guaranteed minimum benefits. GMWBs, GMABs and certain GMIBs contain embedded derivatives, which are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets.

The Company’s actuarial department calculates the fair value of these embedded derivatives, which are estimated as the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations concerning policyholder behavior. The calculation is based on in-force business, and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates.

Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience.

The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife, Inc.’s debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuing insurance subsidiaries as compared to MetLife, Inc.

65

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

8. Fair Value (continued)

Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees. These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; changes in nonperformance risk; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income.

The Company ceded the risk associated with certain of the GMIBs previously described. These reinsurance agreements contain embedded derivatives which are included within premiums, reinsurance and other receivables on the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses) or policyholder benefits and claims depending on the statement of operations classification of the direct risk. The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer.

The estimated fair value of the embedded derivatives within funds withheld related to certain ceded reinsurance is determined based on the change in estimated fair value of the underlying assets held by the Company in a reference portfolio backing the funds withheld liability. The estimated fair value of the underlying assets is determined as described in “— Investments — Securities, Short-term Investments and Other Investments.” The estimated fair value of these embedded derivatives is included, along with their funds withheld hosts, in other liabilities on the consolidated balance sheets with changes in estimated fair value recorded in net derivative gains (losses). Changes in the credit spreads on the underlying assets, interest rates and market volatility may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income.

The estimated fair value of the embedded equity and bond indexed derivatives contained in certain funding agreements is determined using market standard swap valuation models and observable market inputs, including a nonperformance risk adjustment. The estimated fair value of these embedded derivatives are included, along with their funding agreements host, within policyholder account balances with changes in estimated fair value recorded in net derivative gains (losses). Changes in equity and bond indices, interest rates and the Company’s credit standing may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income.

The Company issues certain annuity contracts which allow the policyholder to participate in returns from equity indices. These equity indexed features are embedded derivatives which are measured at estimated fair value separately from the host fixed annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets.

The estimated fair value of the embedded equity indexed derivatives, based on the present value of future equity returns to the policyholder using actuarial and present value assumptions including expectations concerning policyholder behavior, is calculated by the Company’s actuarial department. The calculation is based on in-force business and uses standard capital market techniques, such as Black-Scholes, to calculate the value of the portion of the embedded derivative for which the terms are set. The portion of the embedded derivative covering the period beyond where terms are set is calculated as the present value of amounts expected to be spent to provide equity indexed returns in those periods. The valuation of these embedded derivatives also includes the establishment of a risk margin, as well as changes in nonperformance risk.

66

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

8. Fair Value (continued)

Embedded Derivatives Within Asset and Liability Host Contracts

Level 3 Valuation Approaches and Key Inputs:

Direct and assumed guaranteed minimum benefits

These embedded derivatives are principally valued using the income approach. Valuations are based on option pricing techniques, which utilize significant inputs that may include swap yield curves, currency exchange rates and implied volatilities. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include: the extrapolation beyond observable limits of the swap yield curves and implied volatilities, actuarial assumptions for policyholder behavior and mortality and the potential variability in policyholder behavior and mortality, nonperformance risk and cost of capital for purposes of calculating the risk margin.

Reinsurance ceded on certain guaranteed minimum benefits

These embedded derivatives are principally valued using the income approach. The valuation techniques and significant market standard unobservable inputs used in their valuation are similar to those described above in “— Direct and assumed guaranteed minimum benefits” and also include counterparty credit spreads.

Transfers between Levels

Overall, transfers between levels occur when there are changes in the observability of inputs and market activity. Transfers into or out of any level are assumed to occur at the beginning of the period.

Transfers between Levels 1 and 2:

There were no transfers between Levels 1 and 2 for assets and liabilities measured at estimated fair value and still held at March 31, 2018 and December 31, 2017.

Transfers into or out of Level 3:

Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable.

67

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

8. Fair Value (continued)

Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at:

					March 31, 2018				December 31, 2017				Impact of Increase in Input on Estimated Fair Value (2)
	Valuation Techniques		Significant Unobservable Inputs		Range			Weighted Average (1)	Range			Weighted Average (1)
Fixed maturity securities (3)
U.S. corporate and foreign corporate	•	Matrix pricing	•	Offered quotes (4)	89	-	139	107	83	-	142	110	Increase
	•	Market pricing	•	Quoted prices (4)	25	-	846	124	10	-	443	121	Increase
	•	Consensus pricing	•	Offered quotes (4)	97	-	104	102	97	-	104	101	Increase
RMBS	•	Market pricing	•	Quoted prices (4)	—	-	109	94	—	-	126	94	Increase (5)
ABS	•	Market pricing	•	Quoted prices (4)	3	-	117	100	5	-	117	100	Increase (5)
	•	Consensus pricing	•	Offered quotes (4)	99	-	102	100	100	-	103	100	Increase (5)
Derivatives
Interest rate	•	Present value techniques	•	Swap yield (6)	277	-	313		200	-	300		Increase (7)
			•	Repurchase rates (8)	(4)	-	6		(5)	-	5		Decrease (7)
Foreign currency exchange rate	•	Present value techniques	•	Swap yield (6)	(19)	-	328		(14)	-	309		Increase (7)
Credit	•	Present value techniques	•	Credit spreads (9)	97	-	100		—	-	—		Decrease (7)
	•	Consensus pricing	•	Offered quotes (10)
Equity market	•	Present value techniques or option pricing models	•	Volatility (11)	20%	-	31%		11%	-	31%		Increase (7)
			•	Correlation (12)	10%	-	30%		10%	-	30%
Embedded derivatives
Direct, assumed and ceded guaranteed minimum benefits	•	Option pricing techniques	•	Mortality rates:
				Ages 0 - 40	0%	-	0.21%		0%	-	0.21%		Decrease (13)
				Ages 41 - 60	0.03%	-	0.75%		0.03%	-	0.75%		Decrease (13)
				Ages 61 - 115	0.15%	-	100%		0.15%	-	100%		Decrease (13)
			•	Lapse rates:
				Durations 1 - 10	0.25%	-	100%		0.25%	-	100%		Decrease (14)
				Durations 11 - 20	2%	-	100%		2%	-	100%		Decrease (14)
				Durations 21 - 116	1.25%	-	100%		1.25%	-	100%		Decrease (14)
			•	Utilization rates	0%	-	25%		0%	-	25%		Increase (15)
			•	Withdrawal rates	0%	-	20%		0%	-	20%		(16)
			•	Long-term equity volatilities	9.04%	-	33%		8.25%	-	33%		Increase (17)
			•	Nonperformance risk spread	0.03%	-	1.75%		0.02%	-	1.32%		Decrease (18)

__________________

(1) The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities.

(2) The impact of a decrease in input would have the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions.

(3) Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations.

(4) Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par.

(5) Changes in the assumptions used for the probability of default are accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates.

68

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

8. Fair Value (continued)

(6) Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curves are utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.

(7) Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions.

(8) Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points.

(9) Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps.

(10) At both March 31, 2018 and December 31, 2017, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value.

(11) Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.

(12) Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations.

(13) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(14) Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(15) The utilization rate assumption estimates the percentage of contractholders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(16) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value.

(17) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(18) Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative.

69

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

8. Fair Value (continued)

The following is a summary of the valuation techniques and significant unobservable inputs used in the fair value measurement of assets and liabilities classified within Level 3 that are not included in the preceding table. Generally, all other classes of securities classified within Level 3, including those within separate account assets, and embedded derivatives within funds withheld related to certain ceded reinsurance, use the same valuation techniques and significant unobservable inputs as previously described for Level 3 securities. This includes matrix pricing and discounted cash flow methodologies, inputs such as quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2, as well as independent non-binding broker quotations. The residential mortgage loans — FVO are valued using independent non-binding broker quotations and internal models including matrix pricing and discounted cash flow methodologies using current interest rates. Other limited partnership interests valuations are generally based on the Company’s share of the NAV as provided on the financial statements of the investees. In certain circumstances, management may adjust the NAV when it has sufficient evidence to support applying such adjustments. The sensitivity of the estimated fair value to changes in the significant unobservable inputs for these other assets and liabilities is similar in nature to that described in the preceding table.

The following tables summarize the change of all assets (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3):

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	Corporate (1)			Foreign Government			Structured Securities			State and Political Subdivision			Equity Securities			Unit-linked and FVO Securities
	(In millions)
Three Months Ended March 31, 2018
Balance, beginning of period	$	11,219		$	209		$	4,841		$	—		$	428		$	362
Total realized/unrealized gains (losses) included in net income (loss) (2), (3)	7			1			23			—			(6		)	5
Total realized/unrealized gains (losses) included in AOCI	(68		)	(3		)	24			—			—			—
Purchases (4)	512			2			657			—			1			27
Sales (4)	(542		)	(2		)	(324		)	—			(1		)	(59		)
Issuances (4)	—			—			—			—			—			—
Settlements (4)	—			—			—			—			—			—
Transfers into Level 3 (5)	46			—			45			—			—			—
Transfers out of Level 3 (5)	(364		)	(28		)	(684		)	—			—			(49		)
Balance, end of period	$	10,810		$	179		$	4,582		$	—		$	422		$	286
Three Months Ended March 31, 2017
Balance, beginning of period	$	11,537		$	289		$	5,215		$	10		$	468		$	287
Total realized/unrealized gains (losses) included in net income (loss) (2), (3)	4			3			32			—			(10		)	7
Total realized/unrealized gains (losses) included in AOCI	231			6			48			—			22			—
Purchases (4)	941			12			1,020			—			1			69
Sales (4)	(418		)	(17		)	(400		)	—			(1		)	(17		)
Issuances (4)	—			—			—			—			—			—
Settlements (4)	—			—			—			—			—			—
Transfers into Level 3 (5)	79			4			23			—			—			2
Transfers out of Level 3 (5)	(1,406		)	(8		)	(233		)	(10		)	—			(13		)
Balance, end of period	$	10,968		$	289		$	5,705		$	—		$	480		$	335
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2018 (6)	$	1		$	1		$	21		$	—		$	—		$	4
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2017 (6)	$	4		$	2		$	24		$	—		$	(10	)	$	7

70

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

8. Fair Value (continued)

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Other Limited Partnership Interests			Short-term Investments			Residential Mortgage Loans — FVO			Net Derivatives (7)			Net Embedded Derivatives (8)			Separate Accounts (9)
	(In millions)
Three Months Ended March 31, 2018
Balance, beginning of period	$	—		$	33		$	520		$	(132	)	$	(274	)	$	959
Total realized/unrealized gains (losses) included in net income (loss) (2), (3)	(5		)	—			2			11			36			2
Total realized/unrealized gains (losses) included in AOCI	2			—			—			(104		)	(16		)	—
Purchases (4)	—			605			—			—			—			409
Sales (4)	(19		)	(3		)	(64		)	—			—			(124		)
Issuances (4)	—			—			—			—			—			1
Settlements (4)	—			—			(20		)	43			(74		)	(1		)
Transfers into Level 3 (5)	216			—			—			—			—			53
Transfers out of Level 3 (5)	—			(20		)	—			—			—			(75		)
Balance, end of period	$	194		$	615		$	438		$	(182	)	$	(328	)	$	1,224
Three Months Ended March 31, 2017
Balance, beginning of period	$	—		$	46		$	566		$	(562	)	$	(729	)	$	1,141
Total realized/unrealized gains (losses) included in net income (loss) (2), (3)	—			—			(3		)	33			169			(24		)
Total realized/unrealized gains (losses) included in AOCI	—			—			—			44			(59		)	—
Purchases (4)	—			776			135			—			—			136
Sales (4)	—			(3		)	(33		)	—			—			(42		)
Issuances (4)	—			—			—			(7		)	—			39
Settlements (4)	—			—			(26		)	95			(76		)	(33		)
Transfers into Level 3 (5)	—			—			—			—			—			69
Transfers out of Level 3 (5)	—			(40		)	—			—			—			(102		)
Balance, end of period	$	—		$	779		$	639		$	(397	)	$	(695	)	$	1,184
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2018 (6)	$	(5	)	$	—		$	(8	)	$	48		$	31		$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2017 (6)	$	—		$	—		$	(3	)	$	26		$	167		$	—

__________________

(1) Comprised of U.S. and foreign corporate securities.

(2) Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses), while changes in estimated fair value of residential mortgage loans — FVO are included in net investment income. Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

(3) Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.

(4) Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements.

(5) Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward.

(6) Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

71

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

8. Fair Value (continued)

(7) Freestanding derivative assets and liabilities are presented net for purposes of the rollforward.

(8) Embedded derivative assets and liabilities are presented net for purposes of the rollforward.

(9) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes are presented within net investment gains (losses). Separate account assets and liabilities are presented net for the purposes of the rollforward.

Fair Value Option

The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis. The following table presents information for residential mortgage loans, which are accounted for under the FVO and were initially measured at fair value.

	March 31, 2018			December 31, 2017
	(In millions)
Unpaid principal balance	$	544		$	650
Difference between estimated fair value and unpaid principal balance	(106		)	(130		)
Carrying value at estimated fair value	$	438		$	520
Loans in nonaccrual status	$	159		$	198
Loans more than 90 days past due	$	78		$	94
Loans in nonaccrual status or more than 90 days past due, or both — difference between aggregate estimated fair value and unpaid principal balance	$	(82	)	$	(102	)

72

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

8. Fair Value (continued)

Fair Value of Financial Instruments Carried at Other Than Fair Value

The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income, payables for collateral under securities loaned and other transactions, short-term debt and those short-term investments that are not securities, such as time deposits, and therefore are not included in the three level hierarchy table disclosed in the “— Recurring Fair Value Measurements” section. The estimated fair value of the excluded financial instruments, which are primarily classified in Level 2, approximates carrying value as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality. All remaining balance sheet amounts excluded from the tables below are not considered financial instruments subject to this disclosure.

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:

	March 31, 2018
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	70,617	$	—	$	—	$	71,845	$	71,845
Policy loans	$	9,744	$	—	$	341	$	11,082	$	11,423
Other invested assets	$	1,264	$	—	$	812	$	452	$	1,264
Premiums, reinsurance and other receivables	$	4,358	$	—	$	1,450	$	3,025	$	4,475
Other assets	$	345	$	—	$	175	$	199	$	374
Liabilities
Policyholder account balances	$	114,715	$	—	$	—	$	116,193	$	116,193
Long-term debt	$	15,696	$	—	$	16,973	$	—	$	16,973
Collateral financing arrangement	$	1,108	$	—	$	—	$	898	$	898
Junior subordinated debt securities	$	3,145	$	—	$	4,073	$	—	$	4,073
Other liabilities	$	3,810	$	—	$	2,113	$	2,252	$	4,365
Separate account liabilities	$	118,151	$	—	$	118,151	$	—	$	118,151

73

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

8. Fair Value (continued)

	December 31, 2017
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	68,211	$	—	$	—	$	69,797	$	69,797
Policy loans	$	9,669	$	—	$	336	$	11,176	$	11,512
Other limited partnership interests	$	219	$	—	$	—	$	216	$	216
Other invested assets	$	443	$	—	$	—	$	443	$	443
Premiums, reinsurance and other receivables	$	4,155	$	—	$	1,283	$	3,056	$	4,339
Other assets	$	285	$	—	$	189	$	139	$	328
Liabilities
Policyholder account balances	$	114,355	$	—	$	—	$	116,534	$	116,534
Long-term debt	$	15,675	$	—	$	17,773	$	—	$	17,773
Collateral financing arrangement	$	1,121	$	—	$	—	$	894	$	894
Junior subordinated debt securities	$	3,144	$	—	$	4,319	$	—	$	4,319
Other liabilities	$	3,208	$	—	$	1,496	$	2,345	$	3,841
Separate account liabilities	$	124,011	$	—	$	124,011	$	—	$	124,011

74

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

9. Equity

Preferred Stock

In March 2018, MetLife, Inc. issued 500,000 shares of 5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D (the “Series D preferred stock”) with a $0.01 par value per share and a liquidation preference of $1,000 per share for aggregate net proceeds of $494 million. In connection with the offering of the Series D preferred stock, MetLife, Inc. incurred approximately $6 million of issuance costs which have been recorded as a reduction of additional paid-in capital.

The Series D preferred stock ranks senior to MetLife, Inc.’s common stock with respect to the payment of dividends and distributions upon liquidation, dissolution or winding-up. Holders of the Series D preferred stock will be entitled to receive dividend payments only when, as and if declared by MetLife, Inc.’s Board of Directors or a duly authorized committee thereof. If dividends are declared on the Series D preferred stock for any dividend period, they will be calculated on a non-cumulative basis at a fixed rate per annum of 5.875% from the date of original issue to, but excluding, March 15, 2028 and at a floating rate per annum equal to three-month U.S. dollar LIBOR plus 2.959% on the related LIBOR determination date from and after March 15, 2028. Dividends for any dividend period will be payable, if declared, semi-annually in arrears on the 15th day of March and September of each year commencing on September 15, 2018 and ending on March 15, 2028, and thereafter quarterly in arrears on the 15th day of June, September, December, and March of each year.

Dividends on the Series D preferred stock will not be cumulative and will not be mandatory. Accordingly, if dividends are not declared on the Series D preferred stock for any dividend period, then any accrued dividends for that dividend period will cease to accrue and be payable. If a dividend is not declared before the dividend payment date for any dividend period, MetLife, Inc. will have no obligation to pay dividends accrued for such dividend period whether or not dividends on the Series D preferred stock are declared for any future dividend period. No dividends may be paid or declared on MetLife, Inc.’s common stock (or any other securities ranking junior to the Series D preferred stock) and MetLife, Inc. may not purchase, redeem, or otherwise acquire its common stock (or other such junior stock) unless the full dividends for the latest completed dividend period on all outstanding shares of Series D preferred stock, and any parity stock, have been declared and paid or provided for.

Holders of the Series D preferred stock do not have voting rights except in certain circumstances, including where the dividends have not been paid for an equivalent of six or more dividend payment periods whether or not those periods are consecutive. Under such circumstances, the holders of the Series D preferred stock have certain voting rights with respect to members of the Board of Directors of MetLife, Inc.

The Series D preferred stock is not subject to any mandatory redemption, sinking fund, retirement fund, purchase fund or similar provisions. MetLife, Inc. may, at its option, redeem the Series D preferred stock, (a) in whole but not in part, at any time prior to March 15, 2028, within 90 days after the occurrence of a “rating agency event,” at a redemption price equal to $1,020 per share of Series D preferred stock, plus an amount equal to any accrued and unpaid dividends per share that have accrued but not been declared and paid for the then-current dividend period to but excluding the redemption date and (b) (i) in whole but not in part, at any time prior to March, 15, 2028, within 90 days after the occurrence of a “regulatory capital event” or (ii) in whole or in part, from time to time, on or after March 15, 2028, in each case, at a redemption price equal to $1,000 per share of Series D preferred stock, plus an amount equal to any accrued and unpaid dividends per share that have accrued but not been declared and paid for the then-current dividend period to, but excluding, such redemption date. A “rating agency event” means that any nationally recognized statistical rating organization that then publishes a rating for MetLife, Inc. amends, clarifies or changes the criteria it uses to assign equity credit to securities like the Series D preferred stock, which results in the lowering of the equity credit assigned to the Series D preferred stock or shortens the length of time that the Series D preferred stock is assigned a particular level of equity credit. A “regulatory capital event” could occur as a result of a change or proposed change in capital adequacy rules (or the interpretation or application thereof) of any capital regulator, including but not limited to the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”), the Federal Insurance Office, the National Association of Insurance Commissioners or any state insurance regulator, as may then have group-wide oversight of MetLife, Inc.’s regulatory capital, from rules (or the interpretation or application thereof) in effect as of March 22, 2018, that would create a more than insubstantial risk, as determined by MetLife, Inc., that the Series D preferred stock would not be treated as “Tier 1 capital” or as capital with attributes similar to those of Tier 1 capital, except that a “regulatory capital event” will not include a change or proposed change (or the interpretation or application thereof) that would result in the adoption of any criterion substantially the same as the criteria in the capital adequacy rules of the Federal Reserve Board applicable to bank holding companies as of March 22, 2018.

75

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

9. Equity (continued)

Preferred stock authorized, issued and outstanding was as follows:

	March 31, 2018			December 31, 2017
Series	Shares Authorized	Shares Issued	Shares Outstanding	Shares Authorized	Shares Issued	Shares Outstanding
Floating Rate Non-Cumulative Preferred Stock, Series A	27,600,000	24,000,000	24,000,000	27,600,000	24,000,000	24,000,000
5.25% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C	1,500,000	1,500,000	1,500,000	1,500,000	1,500,000	1,500,000
5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D	500,000	500,000	500,000	—	—	—
Series A Junior Participating Preferred Stock	10,000,000	—	—	10,000,000	—	—
Not designated	160,400,000	—	—	160,900,000	—	—
Total	200,000,000	26,000,000	26,000,000	200,000,000	25,500,000	25,500,000

Common Stock

Duringthethree months endedMarch 31, 2018and 2017, MetLife, Inc. repurchased 21,405,327 shares and 16,038,791 shares of its common stock through open market purchases for $1.0 billion and $858 million, respectively.

On November 1, 2017, MetLife, Inc. announced that its Board of Directors authorized $2.0 billion of common stock repurchases. At March 31, 2018, MetLife, Inc. had $720 million remaining under this common stock repurchase authorization. Common stock repurchases are dependent upon several factors, including the Company’s capital position, liquidity, financial strength and credit ratings, general market conditions, the market price of MetLife, Inc.’s common stock compared to management’s assessment of the stock’s underlying value and applicable regulatory approvals, as well as other legal and accounting factors.

See Note 15 for information on subsequent common stock repurchases.

Stock-Based Compensation Plans

Performance Shares and Performance Units

Final Performance Shares are paid in shares of MetLife, Inc. common stock. Final Performance Units are payable in cash equal to the closing price of MetLife, Inc. common stock on a date following the last day of the three-year performance period. The performance factor for the January 1, 2015 – December 31, 2017 performance period was 46.3%, which was determined within a possible range from 0% to 175%. This factor has been applied to the 1,194,283 Performance Shares and 186,085 Performance Units associated with that performance period that vested on December 31, 2017. As a result, in the first quarter of 2018, MetLife, Inc. issued 552,953 shares of its common stock (less withholding for taxes and other items, as applicable), excluding shares that payees choose to defer, and MetLife, Inc. or its affiliates paid the cash value of 86,157 Performance Units (less withholding for taxes and other items, as applicable).

76

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

9. Equity (continued)

Accumulated Other Comprehensive Income (Loss)

Information regarding changes in the balances of each component of AOCI attributable to MetLife, Inc., was as follows:

	Three Months Ended March 31, 2018
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)			Unrealized Gains (Losses) on Derivatives			Foreign Currency Translation Adjustments			Defined Benefit Plans Adjustment			Total
	(In millions)
Balance, beginning of period	$	12,757		$	905		$	(4,390	)	$	(1,845	)	$	7,427
OCI before reclassifications	(3,811		)	(352		)	552			(4		)	(3,615		)
Deferred income tax benefit (expense)	835			58			3			1			897
AOCI before reclassifications, net of income tax	9,781			611			(3,835		)	(1,848		)	4,709
Amounts reclassified from AOCI	45			(165		)	—			31			(89		)
Deferred income tax benefit (expense)	(10		)	27			—			(7		)	10
Amounts reclassified from AOCI, net of income tax	35			(138		)	—			24			(79		)
Cumulative effects of changes in accounting principles	(425		)	—			—			—			(425		)
Deferred income tax benefit (expense), cumulative effects of changes in accounting principles	1,473			210			36			(382		)	1,337
Cumulative effects of changes in accounting principles, net of income tax (2)	1,048			210			36			(382		)	912
Sale of subsidiary (3)	—			—			92			—			92
Balance, end of period	$	10,864		$	683		$	(3,707	)	$	(2,206	)	$	5,634
	Three Months Ended March 31, 2017
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)			Unrealized Gains (Losses) on Derivatives			Foreign Currency Translation Adjustments			Defined Benefit Plans Adjustment			Total
	(In millions)
Balance, beginning of period	$	10,785		$	1,865		$	(5,312	)	$	(1,972	)	$	5,366
OCI before reclassifications	703			210			348			(20		)	1,241
Deferred income tax benefit (expense)	(273		)	(73		)	122			2			(222		)
AOCI before reclassifications, net of income tax	11,215			2,002			(4,842		)	(1,990		)	6,385
Amounts reclassified from AOCI	196			(229		)	—			44			11
Deferred income tax benefit (expense)	(75		)	80			—			(5		)	—
Amounts reclassified from AOCI, net of income tax	121			(149		)	—			39			11
Balance, end of period	$	11,336		$	1,853		$	(4,842	)	$	(1,951	)	$	6,396

__________________

(1) See Note 6 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation.

(2) See Note 1 for further information on adoption of new accounting pronouncements.

(3) See Note 3 for further information on the 2018 disposition.

77

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

9. Equity (continued)

Information regarding amounts reclassified out of each component of AOCI was as follows:

AOCI Components	Amounts Reclassified from AOCI						Consolidated Statements of Operations and Comprehensive Income (Loss) Locations
	Three Months Ended March 31,
	2018			2017
	(In millions)
Net unrealized investment gains (losses):
Net unrealized investment gains (losses)	$	(101	)	$	40		Net investment gains (losses)
Net unrealized investment gains (losses)	3			6			Net investment income
Net unrealized investment gains (losses)	53			(151		)	Net derivative gains (losses)
Net unrealized investment gains (losses)	—			(91		)	Discontinued operations
Net unrealized investment gains (losses), before income tax	(45		)	(196		)
Income tax (expense) benefit	10			75
Net unrealized investment gains (losses), net of income tax	(35		)	(121		)
Unrealized gains (losses) on derivatives - cash flow hedges:
Interest rate swaps	16			8			Net derivative gains (losses)
Interest rate swaps	3			4			Net investment income
Interest rate swaps	—			1			Discontinued operations
Interest rate forwards	5			(4		)	Net derivative gains (losses)
Interest rate forwards	1			—			Net investment income
Interest rate forwards	—			1			Discontinued operations
Foreign currency swaps	139			208			Net derivative gains (losses)
Foreign currency swaps	1			1			Other expenses
Foreign currency swaps	—			10			Discontinued operations
Gains (losses) on cash flow hedges, before income tax	165			229
Income tax (expense) benefit	(27		)	(80		)
Gains (losses) on cash flow hedges, net of income tax	138			149
Defined benefit plans adjustment: (1)
Amortization of net actuarial gains (losses)	(36		)	(49		)
Amortization of prior service (costs) credit	5			5
Amortization of defined benefit plan items, before income tax	(31		)	(44		)
Income tax (expense) benefit	7			5
Amortization of defined benefit plan items, net of income tax	(24		)	(39		)
Total reclassifications, net of income tax	$	79		$	(11	)

__________________

(1) These AOCI components are included in the computation of net periodic benefit costs. See Note 11.

78

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

10. Other Expenses

Information on other expenses was as follows:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Employee related costs	$	937		$	937
Third party staffing costs	380			362
General and administrative expenses	243			221
Pension, postretirement and postemployment benefit costs	49			79
Premium taxes, other taxes, and licenses & fees	179			175
Commissions and other variable expenses	1,416			1,304
Capitalization of DAC	(796		)	(713		)
Amortization of DAC and VOBA	693			663
Amortization of negative VOBA	(22		)	(43		)
Interest expense on debt	286			283
Total other expenses	$	3,365		$	3,268

Certain prior year amounts have been reclassified to conform to the current year presentation, which has been revised to align the expense categories with the Company’s businesses. The reclassifications did not result in a change to total other expenses.

See Note 3 for further information on Separation-related transaction costs.

Restructuring Charges

The Company commenced in 2016 a unit cost improvement program related to the Company’s refreshed enterprise strategy. This global strategy focuses on transforming the Company to become more digital, driving efficiencies and innovation to achieve competitive advantage, and simplified, decreasing the costs and risks associated with the Company’s highly complex industry to customers and shareholders. Restructuring charges related to this program are included in other expenses. As the expenses relate to an enterprise-wide initiative, they are reported in Corporate & Other. Such restructuring charges were as follows:

	Three Months Ended March 31,
	2018			2017
	Severance
	(In millions)
Balance, beginning of period	$	22		$	35
Restructuring charges	9			11
Cash payments	(12		)	(8		)
Balance, end of period	$	19		$	38
Total restructuring charges incurred since inception of initiative	$	82		$	46

Management anticipates further restructuring charges through the year ending December 31, 2019. However, such restructuring plans were not sufficiently developed to enable management to make an estimate of such restructuring charges at March 31, 2018.

79

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

11. Employee Benefit Plans

Pension and Other Postretirement Benefit Plans

Certain subsidiaries of MetLife, Inc. sponsor and/or administer various U.S. qualified and nonqualified defined benefit pension plans and other postretirement employee benefit plans covering employees who meet specified eligibility requirements. These subsidiaries also provide certain postemployment benefits and certain postretirement medical and life insurance benefits for U.S. retired employees.

The components of net periodic benefit costs, reported in other expenses, were as follows:

	Three Months Ended March 31,
	2018						2017
	Pension Benefits			Other Postretirement Benefits			Pension Benefits			Other Postretirement Benefits
	(In millions)
Service costs	$	60		$	1		$	61		$	1
Interest costs	96			11			106			19
Expected return on plan assets	(133		)	(18		)	(130		)	(18		)
Amortization of net actuarial (gains) losses	44			(8		)	49			—
Amortization of prior service costs (credit)	—			(5		)	—			(5		)
Net periodic benefit costs (credit)	$	67		$	(19	)	$	86		$	(3	)

12. Income Tax

On December 22, 2017, President Trump signed into law U.S. Tax Reform. U.S. Tax Reform includes numerous changes in tax law, including a permanent reduction in the U.S. federal corporate income tax rate from 35% to 21%, which took effect for taxable years beginning on or after January 1, 2018. U.S. Tax Reform moves the United States from a worldwide tax system to a participation exemption system by providing corporations a 100% dividends received deduction for dividends distributed by a controlled foreign corporation. To transition to that new system, U.S. Tax Reform imposed a one-time deemed repatriation tax on unremitted earnings and profits at a rate of 8.0% for illiquid assets and 15.5% for cash and cash equivalents.

In accordance with Staff Accounting Bulletin 118 issued by the U.S. Securities and Exchange Commission (“SEC”) in December 2017, the Company recorded provisional amounts for certain items for which the income tax accounting is not complete. For these items, the Company recorded a reasonable estimate of the tax effects of U.S. Tax Reform. The estimates will be reported as provisional amounts during a measurement period, which will not exceed one year from the date of enactment of U.S. Tax Reform. The Company may reflect adjustments to its provisional amounts upon obtaining, preparing, or analyzing additional information about facts and circumstances that existed as of the enactment date that, if known, would have affected the income tax effects initially reported as provisional amounts.

See Note 18 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for further information. As of March 31, 2018, no updates were made to the provisional amounts.

80

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

13. Earnings Per Common Share

The following table presents the weighted average shares, basic earnings per common share and diluted earnings per common share for each income category presented:

	Three Months Ended March 31,
	2018		2017
	(In millions, except per share data)
Weighted Average Shares:
Weighted average common stock outstanding for basic earnings per common share	1,035.9		1,090.4
Incremental common shares from assumed exercise or issuance of stock-based awards	8.5		8.3
Weighted average common stock outstanding for diluted earnings per common share	1,044.4		1,098.7
Income (Loss) from Continuing Operations:
Income (loss) from continuing operations, net of income tax	$	1,257	$	952
Less: Income (loss) from continuing operations, net of income tax, attributable to noncontrolling interests	4		3
Less: Preferred stock dividends	6		6
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders	$	1,247	$	943
Basic	$	1.20	$	0.87
Diluted	$	1.19	$	0.86
Income (Loss) from Discontinued Operations:
Income (loss) from discontinued operations, net of income tax	$	—	$	(76	)
Less: Income (loss) from discontinued operations, net of income tax, attributable to noncontrolling interests	—		—
Income (loss) from discontinued operations, net of income tax, available to MetLife, Inc.’s common shareholders	$	—	$	(76	)
Basic	$	—	$	(0.07	)
Diluted	$	—	$	(0.07	)
Net Income (Loss):
Net income (loss)	$	1,257	$	876
Less: Net income (loss) attributable to noncontrolling interests	4		3
Less: Preferred stock dividends	6		6
Net income (loss) available to MetLife, Inc.’s common shareholders	$	1,247	$	867
Basic	$	1.20	$	0.80
Diluted	$	1.19	$	0.79

81

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

14. Contingencies, Commitments and Guarantees

Contingencies

Litigation

The Company is a defendant in a large number of litigation matters. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience of the Company in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value.

Due to the vagaries of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time may normally be difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will view the relevant evidence and applicable law.

The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Liabilities have been established for a number of the matters noted below. It is possible that some of the matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be reasonably estimated at March 31, 2018. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known to management, management does not believe any such charges are likely to have a material effect on the Company’s financial position.

Matters as to Which an Estimate Can Be Made

For some of the matters disclosed below, the Company is able to estimate a reasonably possible range of loss. For such matters where a loss is believed to be reasonably possible, but not probable, the Company has not made an accrual. As of March 31, 2018, the Company estimates the aggregate range of reasonably possible losses in excess of amounts accrued for these matters to be $0 to $700 million.

Matters as to Which an Estimate Cannot Be Made

For other matters disclosed below, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews.

82

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

14. Contingencies, Commitments and Guarantees (continued)

Asbestos-Related Claims

MLIC is and has been a defendant in a large number of asbestos-related suits filed primarily in state courts. These suits principally allege that the plaintiff or plaintiffs suffered personal injury resulting from exposure to asbestos and seek both actual and punitive damages. MLIC has never engaged in the business of manufacturing, producing, distributing, or selling asbestos or asbestos-containing products nor has MLIC issued liability or workers’ compensation insurance to companies in the business of manufacturing, producing, distributing, or selling asbestos or asbestos-containing products. The lawsuits principally have focused on allegations with respect to certain research, publication and other activities of one or more of MLIC’s employees during the period from the 1920’s through approximately the 1950’s and allege that MLIC learned or should have learned of certain health risks posed by asbestos and, among other things, improperly publicized or failed to disclose those health risks. MLIC believes that it should not have legal liability in these cases. The outcome of most asbestos litigation matters, however, is uncertain and can be impacted by numerous variables, including differences in legal rulings in various jurisdictions, the nature of the alleged injury and factors unrelated to the ultimate legal merit of the claims asserted against MLIC. MLIC employs a number of resolution strategies to manage its asbestos loss exposure, including seeking resolution of pending litigation by judicial rulings and settling individual or groups of claims or lawsuits under appropriate circumstances.

Claims asserted against MLIC have included negligence, intentional tort and conspiracy concerning the health risks associated with asbestos. MLIC’s defenses (beyond denial of certain factual allegations) include that: (i) MLIC owed no duty to the plaintiffs— it had no special relationship with the plaintiffs and did not manufacture, produce, distribute, or sell the asbestos products that allegedly injured plaintiffs; (ii) plaintiffs did not rely on any actions of MLIC; (iii) MLIC’s conduct was not the cause of the plaintiffs’ injuries; (iv) plaintiffs’ exposure occurred after the dangers of asbestos were known; and (v) the applicable time with respect to filing suit has expired. During the course of the litigation, certain trial courts have granted motions dismissing claims against MLIC, while other trial courts have denied MLIC’s motions. There can be no assurance that MLIC will receive favorable decisions on motions in the future. While most cases brought to date have settled, MLIC intends to continue to defend aggressively against claims based on asbestos exposure, including defending claims at trials.

As reported in the 2017 Annual Report, MLIC received approximately 3,514 asbestos-related claims in 2017. During the three months endedMarch 31, 2018 and 2017, MLIC received approximately 823 and 1,104 new asbestos-related claims, respectively. See Note 20 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for historical information concerning asbestos claims and MLIC’s increase in its recorded liability at December 31, 2017. The number of asbestos cases that may be brought, the aggregate amount of any liability that MLIC may incur, and the total amount paid in settlements in any given year are uncertain and may vary significantly from year to year.

The ability of MLIC to estimate its ultimate asbestos exposure is subject to considerable uncertainty, and the conditions impacting its liability can be dynamic and subject to change. The availability of reliable data is limited and it is difficult to predict the numerous variables that can affect liability estimates, including the number of future claims, the cost to resolve claims, the disease mix and severity of disease in pending and future claims, the impact of the number of new claims filed in a particular jurisdiction and variations in the law in the jurisdictions in which claims are filed, the possible impact of tort reform efforts, the willingness of courts to allow plaintiffs to pursue claims against MLIC when exposure to asbestos took place after the dangers of asbestos exposure were well known, and the impact of any possible future adverse verdicts and their amounts.

The ability to make estimates regarding ultimate asbestos exposure declines significantly as the estimates relate to years further in the future. In the Company’s judgment, there is a future point after which losses cease to be probable and reasonably estimable. It is reasonably possible that the Company’s total exposure to asbestos claims may be materially greater than the asbestos liability currently accrued and that future charges to income may be necessary. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known by management, management does not believe any such charges are likely to have a material effect on the Company’s financial position.

83

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

14. Contingencies, Commitments and Guarantees (continued)

The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for asbestos-related claims. MLIC’s recorded asbestos liability is based on its estimation of the following elements, as informed by the facts presently known to it, its understanding of current law and its past experiences: (i) the probable and reasonably estimable liability for asbestos claims already asserted against MLIC, including claims settled but not yet paid; (ii) the probable and reasonably estimable liability for asbestos claims not yet asserted against MLIC, but which MLIC believes are reasonably probable of assertion; and (iii) the legal defense costs associated with the foregoing claims. Significant assumptions underlying MLIC’s analysis of the adequacy of its recorded liability with respect to asbestos litigation include: (i) the number of future claims; (ii) the cost to resolve claims; and (iii) the cost to defend claims.

MLIC reevaluates on a quarterly and annual basis its exposure from asbestos litigation, including studying its claims experience, reviewing external literature regarding asbestos claims experience in the United States, assessing relevant trends impacting asbestos liability and considering numerous variables that can affect its asbestos liability exposure on an overall or per claim basis. These variables include bankruptcies of other companies involved in asbestos litigation, legislative and judicial developments, the number of pending claims involving serious disease, the number of new claims filed against it and other defendants and the jurisdictions in which claims are pending. Based upon its regular reevaluation of its exposure from asbestos litigation, MLIC has updated its liability analysis for asbestos-related claims through March 31, 2018.

Regulatory Matters

The Company receives and responds to subpoenas or other inquiries seeking a broad range of information from state regulators, including state insurance commissioners; state attorneys general or other state governmental authorities; federal regulators, including the SEC; federal governmental authorities, including congressional committees; and the Financial Industry Regulatory Authority (“FINRA”), as well as from local and national regulators and government authorities in jurisdictions outside the United States where MetLife conducts business. The issues involved in information requests and regulatory matters vary widely. The Company cooperates in these inquiries.

In the Matter of Chemform, Inc. Site, Pompano Beach, Broward County, Florida

In July 2010, the Environmental Protection Agency (“EPA”) advised MLIC that it believed payments were due under two settlement agreements, known as “Administrative Orders on Consent,” that New England Mutual Life Insurance Company (“New England Mutual”) signed in 1989 and 1992 with respect to the cleanup of a Superfund site in Florida (the “Chemform Site”). The EPA originally contacted MLIC (as successor to New England Mutual) and a third party in 2001, and advised that they owed additional clean-up costs for the Chemform Site. The matter was not resolved at that time. In September 2012, the EPA, MLIC and the third party executed an Administrative Order on Consent under which MLIC and the third party agreed to be responsible for certain environmental testing at the Chemform Site. The EPA may seek additional costs if the environmental testing identifies issues. The EPA and MLIC have reached a settlement in principal on the EPA’s claim for past costs. The Company estimates that the aggregate cost to resolve this matter, including the settlement for claims of past costs and the costs of environmental testing, will not exceed $300 thousand.

Sales Practices Regulatory Matters

Regulatory authorities in a number of states and FINRA, and occasionally the SEC, have had investigations or inquiries relating to sales of individual life insurance policies or annuities or other products by MLIC and General American Life Insurance Company, as well as former subsidiaries of the Company that are part of Brighthouse as a result of the Separation, and a former broker-dealer subsidiary. These investigations often focus on the conduct of particular financial services representatives and the sale of unregistered or unsuitable products or the misuse of client assets. Over the past several years, these and a number of investigations by other regulatory authorities were resolved for monetary payments and certain other relief, including restitution payments. The Company may continue to resolve investigations in a similar manner. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for these sales practices-related investigations or inquiries.

84

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

14. Contingencies, Commitments and Guarantees (continued)

Unclaimed Property Litigation

City of Westland Police and Fire Retirement System v. MetLife, Inc., et al. (S.D.N.Y., filed January 12, 2012)

Seeking to represent a class of persons who purchased MetLife, Inc. common shares between February 2, 2010, and October 6, 2011, the plaintiff alleges that MetLife, Inc. and several current and former directors and executive officers of MetLife, Inc. violated the Securities Act of 1933, as well as the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 promulgated thereunder by issuing, or causing MetLife, Inc. to issue, materially false and misleading statements concerning MetLife, Inc.’s potential liability for millions of dollars in insurance benefits that should have been paid to beneficiaries or escheated to the states. Plaintiff seeks unspecified compensatory damages and other relief. On September 22, 2017, the Court granted plaintiff’s motion to certify its proposed class of persons who purchased or acquired MetLife, Inc. common stock in the Company’s August 3, 2010 offering or the Company’s March 4, 2011 offering. The defendants intend to defend this action vigorously.

Total Asset Recovery Services, LLC. v. MetLife, Inc., et al. (Supreme Court of the State of New York, County of New York, filed November 17, 2017)

Alleging that MetLife, Inc., MLIC, and several other insurance companies violated the New York False Claims Act (the “Act”) by filing false unclaimed property reports from 1986 to 2017 with New York to avoid having to escheat the proceeds of more than 25,000 life insurance policies, including policies for which the defendants escheated funds as part of their demutualizations in the late 1990s, Total Asset Recovery Services (“The Relator”) has brought an action under the qui tam provision of the Act on behalf of itself and New York. The Relator originally filed this action under seal in 2010, and the complaint was unsealed on December 19, 2017. The Relator seeks treble damages and other relief. The Company intends to defend this action vigorously.

Total Control Accounts Litigation

MLIC is a defendant in a lawsuit related to its use of retained asset accounts, known as Total Control Accounts (“TCA”), as a settlement option for death benefits.

Owens v. Metropolitan Life Insurance Company (N.D. Ga., filed April 17, 2014)

Plaintiff filed this class action lawsuit on behalf of all persons for whom MLIC established a TCA to pay death benefits under an Employee Retirement Income Security Act of 1974 (“ERISA”) plan. The action alleges that MLIC’s use of the TCA as the settlement option for life insurance benefits under some group life insurance policies violates MLIC’s fiduciary duties under ERISA. As damages, plaintiff seeks disgorgement of profits that MLIC realized on accounts owned by members of the class. In addition, plaintiff, on behalf of a subgroup of the class, seeks interest under Georgia’s delayed settlement interest statute, alleging that the use of the TCA as the settlement option did not constitute payment. On September 27, 2016, the court denied MLIC’s summary judgment motion in full and granted plaintiff’s partial summary judgment motion. On September 29, 2017, the court certified a nationwide class. The court also certified a Georgia subclass. The Company intends to defend this action vigorously.

Diversified Lending Group Litigation

Hartshorne v. MetLife, Inc., et al. (Los Angeles County Superior Court, filed March 25, 2015)

Plaintiffs named MetLife, Inc., MetLife Securities, Inc., and New England Life Insurance Company in 12 related lawsuits in California state court alleging various causes of action including multiple negligence and statutory claims relating to a Ponzi scheme involving the Diversified Lending Group. The Company settled with the last remaining plaintiff on or about May 2, 2018.

85

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

14. Contingencies, Commitments and Guarantees (continued)

Inquiries into Pension Benefits and Assumed Variable Annuity Guarantee Reserves and Related Litigation

The Company informed its primary state regulator, the New York Department of Financial Services (“NYDFS”), about its practices in connection with the payment of certain pension benefits to annuitants and related matters. The NYDFS is examining the issue. The Division of Enforcement of the SEC is also investigating this matter and several additional regulators, including, but not limited to, the Massachusetts Securities Division, have made inquiries into these practices, including as to related disclosures. It is possible that other jurisdictions may pursue similar investigations or inquiries. On January 29, 2018, the Company announced that in connection with a review of practices and procedures used to estimate reserves related to certain Retirement Income Solutions (“RIS”) group annuitants who have been unresponsive or missing over time, the Company had identified a material weakness in its internal control over financial reporting related to certain RIS group annuity reserves. In conjunction with the material weakness, the Company increased reserves by $510 million pre-tax to reinstate reserves previously released, and to reflect accrued interest and other related liabilities. See Note 1 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report.

The Company informed the SEC that as a result of its review of the calculation of reserves associated with certain variable annuity guarantees assumed from the former operating joint venture in Japan, the Company had identified a material weakness in its internal control over financial reporting related to these reserves. In conjunction with the material weakness, the Company decreased these reserves by $896 million pre-tax at December 31, 2017. See Note 1 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report. The Division of Enforcement of the SEC is investigating this matter and the Company has informed other regulators. It is possible that other regulators may pursue similar investigations or inquiries.

The Company is exposed to lawsuits and regulatory investigations, and could be exposed to additional legal actions relating to these matters. These may result in payments, including damages, fines, penalties, interest and other amounts assessed or awarded by courts or regulatory authorities under applicable escheat, tax, securities, ERISA, or other laws or regulations. The Company could incur significant costs in connection with these actions. The Company’s increase in reserves does not reflect, and the Company has not recorded an accrual for, any such potential amounts. An estimate of the possible loss or range of loss cannot be made at this time.

Parchmann v. MetLife, Inc., et. al. (E.D.N.Y., filed February 5, 2018)

Seeking to represent a class of persons who purchased MetLife, Inc. common stock from February 27, 2013 through January 29, 2018, the plaintiff alleges that MetLife, Inc., its Chief Executive Officer and Chairman of the Board, and its CFO violated Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder by issuing materially false and/or misleading statements because the defendants failed to disclose that MetLife’s practices and procedures used to estimate its reserves set aside for annuity and pension payments were inadequate, and that MetLife had inadequate internal control over financial reporting. The plaintiff seeks unspecified compensatory damages and other relief. The defendants intend to defend this action vigorously.

Demands

By letter dated March 28, 2018 to the MetLife, Inc. Board of Directors, a shareholder, Rosemarie R. Zavolta, has demanded that MetLife, Inc. take action against current and former Board members and executive officers for alleged breaches of fiduciary duty with respect to (i) the Company’s allegedly inadequate practices and procedures used to estimate the Company’s reserves for annuity and pension payments, (ii) the alleged lack of adequate internal controls over financial reporting, and (iii) the alleged dissemination of false, misleading and/or incomplete information related to these issues. Zavolta has demanded that the Board: (i) undertake or cause to be undertaken an independent internal investigation into management’s violations of New York law, Delaware law, and/or federal law; and (ii) if warranted commence a civil action against each member of management to recover for the benefit of the Company the amount of damages sustained by the Company as a result of their breaches of fiduciary duties alleged. The MetLife, Inc. Board of Directors has appointed a special committee to investigate these allegations.

86

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

14. Contingencies, Commitments and Guarantees (continued)

Other Litigation

Sun Life Assurance Company of Canada Indemnity Claim

In 2006, Sun Life Assurance Company of Canada (“Sun Life”), as successor to the purchaser of MLIC’s Canadian operations, filed a lawsuit in Toronto, seeking a declaration that MLIC remains liable for “market conduct claims” related to certain individual life insurance policies sold by MLIC that were subsequently transferred to Sun Life. In January 2010, the court found that Sun Life had given timely notice of its claim for indemnification but, because it found that Sun Life had not yet incurred an indemnifiable loss, granted MLIC’s motion for summary judgment. Both parties agreed to consider the indemnity claim through arbitration. In September 2010, Sun Life notified MLIC that a purported class action lawsuit was filed against Sun Life in Toronto alleging sales practices claims regarding the policies sold by MLIC and transferred to Sun Life. On August 30, 2011, Sun Life notified MLIC that another purported class action lawsuit was filed against Sun Life in Vancouver, BC alleging sales practices claims regarding certain of the same policies sold by MLIC and transferred to Sun Life. Sun Life contends that MLIC is obligated to indemnify Sun Life for some or all of the claims in these lawsuits. These sales practices cases against Sun Life are ongoing, and the Company is unable to estimate the reasonably possible loss or range of loss arising from this litigation.

Voshall v. Metropolitan Life Insurance Company (Superior Court of the State of California, County of Los Angeles, April 8, 2015)

Plaintiff filed this putative class action lawsuit on behalf of himself and all persons covered under a long-term group disability income insurance policy issued by MLIC to public entities in California between April 8, 2011 and April 8, 2015. Plaintiff alleges that MLIC improperly reduced benefits by including cost of living adjustments and employee paid contributions in the employer retirement benefits and other income that reduces the benefit payable under such policies. Plaintiff asserts causes of action for declaratory relief, violation of the California Business & Professions Code, breach of contract and breach of the implied covenant of good faith and fair dealing. The Company intends to defend this action vigorously.

Martin v. Metropolitan Life Insurance Company, (Superior Court of the State of California, County of Contra Costa, filed December 17, 2015)

Plaintiffs filed this putative class action lawsuit on behalf of themselves and all California persons who have been charged compound interest by MLIC in life insurance policy and/or premium loan balances within the last four years. Plaintiffs allege that MLIC has engaged in a pattern and practice of charging compound interest on life insurance policy and premium loans without the borrower authorizing such compounding, and that this constitutes an unlawful business practice under California law. Plaintiff asserts causes of action for declaratory relief, violation of California’s Unfair Competition Law and Usury Law, and unjust enrichment. Plaintiff seeks declaratory and injunctive relief, restitution of interest, and damages in an unspecified amount. On April 12, 2016, the court granted MLIC’s motion to dismiss. Plaintiffs have appealed this ruling to the United States Court of Appeals for the Ninth Circuit. The Company intends to defend this action vigorously.

Lau v. Metropolitan Life Insurance Company (S.D.N.Y. filed, December 3, 2015)

This putative class action lawsuit was filed by a single defined contribution plan participant on behalf of all ERISA plans whose assets were invested in MetLife’s “Group Annuity Contract Stable Value Funds” within the past six years. The suit alleges breaches of fiduciary duty under ERISA and challenges the “spread” with respect to the stable value fund group annuity products sold to retirement plans. The allegations focus on the methodology MetLife uses to establish and reset the crediting rate, the terms under which plan participants are permitted to transfer funds from a stable value option to another investment option, the procedures followed if an employer terminates a contract, and the level of disclosure provided. Plaintiff seeks declaratory and injunctive relief, as well as damages in an unspecified amount. The parties settled on January 2, 2018 and the court has dismissed the action.

87

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

14. Contingencies, Commitments and Guarantees (continued)

Newman v. Metropolitan Life Insurance Company (N.D. Ill., filed March 23, 2016)

Plaintiff filed this putative class action alleging causes of action for breach of contract, fraud, and violations of the Illinois Consumer Fraud and Deceptive Business Practices Act, based on MLIC’s class-wide increase in premiums charged for long-term care insurance policies. Plaintiff alleges a class consisting of herself and all persons over age 65 who selected a Reduced Pay at Age 65 payment feature and whose premium rates were increased after age 65. Plaintiff asserts that premiums could not be increased for these class members and/or that marketing material was misleading as to MLIC’s right to increase premiums. Plaintiff seeks unspecified compensatory, statutory and punitive damages, as well as recessionary and injunctive relief. On April 12, 2017, the court granted MLIC’s motion, dismissing the action with prejudice. Plaintiff appealed this ruling to the United States Court of Appeals for the Seventh Circuit (the “Seventh Circuit”) and on February 6, 2018, the Seventh Circuit reversed and remanded for further proceedings, ruling that Plaintiff is entitled to relief on her contract claim. Following MLIC’s petition for rehearing, the Seventh Circuit issued an amended opinion on March 22, 2018, holding that plaintiff’s claim survived MLIC’s motion to dismiss but finding that the policy is ambiguous as to MLIC’s right to raise plaintiff’s premiums. The Seventh Circuit held that on remand to the district court, the parties may introduce evidence to try to resolve this ambiguity.

Miller, et al. v. MetLife, Inc., et al. (C.D. Cal., filed April 7, 2017)

Plaintiffs filed this putative class action against MetLife, Inc. and MLIC in the U.S. District Court for the Central District of California, purporting to assert claims on behalf of all persons who replaced their MetLife Optional Term Life or Group Universal Life policy with a Group Variable Universal Life policy wherein MetLife allegedly charged smoker rates for certain non-smokers. Plaintiffs seek unspecified compensatory and punitive damages, as well as other relief. On September 25, 2017, plaintiffs dismissed the action and refiled the complaint in U.S. District Court for the Southern District of New York. On November 9, 2017, plaintiffs dismissed MetLife, Inc. without prejudice from the action. MLIC intends to defend this action vigorously.

Julian & McKinney v. Metropolitan Life Insurance Company (S.D.N.Y., filed February 9, 2017)

Plaintiffs filed this putative class and collective action on behalf of themselves and all current and former long-term disability (“LTD”) claims specialists between February 2011 and the present for alleged wage and hour violations under the Fair Labor Standards Act, the New York Labor Law, and the Connecticut Minimum Wage Act. The suit alleges that MetLife improperly reclassified the plaintiffs and similarly situated LTD claims specialists from non-exempt to exempt from overtime pay in November 2013. As a result, they and members of the putative class were no longer eligible for overtime pay even though they allege they continued to work more than 40 hours per week. On March 22, 2018, the Court conditionally certified the case as a collective action, requiring that notice be mailed to LTD claims specialists who worked for the Company from February 8, 2014 to the present. The Company intends to defend this action vigorously.

Sales Practices Claims

Over the past several years, the Company has faced numerous claims, including class action lawsuits, alleging improper marketing or sales of individual life insurance policies, annuities, mutual funds, other products or the misuse of client assets. Some of the current cases seek substantial damages, including punitive and treble damages and attorneys’ fees. The Company continues to defend vigorously against the claims in these matters. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters.

Summary

Putative or certified class action litigation and other litigation and claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, mortgage lending bank, employer, investor, investment advisor and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company’s compliance with applicable insurance and other laws and regulations.

88

MetLife, Inc.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) — (continued)

14. Contingencies, Commitments and Guarantees (continued)

It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to previously, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Although in light of these considerations it is possible that an adverse outcome in certain cases could have a material effect upon the Company’s financial position, based on information currently known by the Company’s management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company’s consolidated net income or cash flows in particular quarterly or annual periods.

Commitments

Mortgage Loan Commitments

The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $3.7 billion and $3.4 billion at March 31, 2018 and December 31, 2017, respectively.

Commitments to Fund Partnership Investments, Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments

The Company commits to fund partnership investments and to lend funds under bank credit facilities, bridge loans and private corporate bond investments. The amounts of these unfunded commitments were $6.1 billion at both March 31, 2018 and December 31, 2017.

Guarantees

In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation ranging from less than $1 million to $329 million, with a cumulative maximum of $775 million, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments.

In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future.

The Company has also minimum fund yield requirements on certain international pension funds in accordance with local laws. Since these guarantees are not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future.

The Company’s recorded liabilities were $7 million and $5 million at March 31, 2018 and December 31, 2017, respectively, for indemnities, guarantees and commitments.

15. Subsequent Events

Common Stock Repurchases

In the second quarter of 2018 through April 30, 2018, MetLife, Inc. repurchased 7,630,398 shares of its common stock in the open market for $350 million.

Common Stock Dividend

On April 24, 2018, the MetLife, Inc. Board of Directors declared a second quarter 2018 common stock dividend of $0.42 per share payable on June 13, 2018 to shareholders of record as of May 7, 2018. The Company estimates that the aggregate dividend payment will be $428 million.

89

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Index to Management’s Discussion and Analysis of Financial Condition and Results of Operations

	Page
Forward-Looking Statements and Other Financial Information	91
Executive Summary	91
Industry Trends	95
Summary of Critical Accounting Estimates	99
Economic Capital	99
Acquisitions and Dispositions	100
Results of Operations	101
Investments	118
Derivatives	133
Off-Balance Sheet Arrangements	135
Policyholder Liabilities	136
Liquidity and Capital Resources	144
Adoption of New Accounting Pronouncements	155
Future Adoption of New Accounting Pronouncements	155
Non-GAAP and Other Financial Disclosures	155
Subsequent Events	158

90

Forward-Looking Statements and Other Financial Information

For purposes of this discussion, “MetLife,” the “Company,” “we,” “our” and “us” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its subsidiaries and affiliates. This discussion should be read in conjunction with MetLife, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Annual Report”), the cautionary language regarding forward-looking statements included below, the “Risk Factors” set forth in Part II, Item 1A, and the additional risk factors referred to therein, “Quantitative and Qualitative Disclosures About Market Risk” and the Company’s interim condensed consolidated financial statements included elsewhere herein.

This Management’s Discussion and Analysis of Financial Condition and Results of Operations may contain or incorporate by reference information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events. These statements can be identified by the fact that they do not relate strictly to historical or current facts. They use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,”“will be,” “will not,”and other words and terms of similar meaning, or are tied to future periods, in connection with a discussion of future financial performance. In particular, these include statements relating to future actions, prospective services or products, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, trends in operations and financial results. Any or all forward-looking statements may turn out to be wrong. Actual results could differ materially from those expressed or implied in the forward-looking statements. See “Note Regarding Forward-Looking Statements.”

This Management’s Discussion and Analysis of Financial Condition and Results of Operations includes references to our performance measures, adjusted earnings and adjusted earnings available to common shareholders, that are not based on accounting principles generally accepted in the United States of America (“GAAP”). These measures are used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings is also our GAAP measure of segment performance. Adjusted earnings and other financial measures based on adjusted earnings are also the measures by which senior management’s and many other employees’ performance is evaluated for the purposes of determining their compensation under applicable compensation plans. Adjusted earnings and other financial measures based on adjusted earnings allow analysis of our performance relative to our business plan and facilitate comparisons to industry results. Forward-looking guidance provided on a non-GAAP basis cannot be reconciled to the most directly comparable GAAP measures on a forward-looking basis because net income may fluctuate significantly if net investment gains and losses and net derivative gains and losses move outside of estimated ranges. See “— Non-GAAP and Other Financial Disclosures” for definitions and a discussion of these measures, and “— Results of Operations” for reconciliations of historical non-GAAP financial measures to the most directly comparable GAAP measures.

Executive Summary

Overview

MetLife is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management. MetLife is organized into five segments: U.S.; Asia; Latin America; Europe, the Middle East and Africa (“EMEA”); and MetLife Holdings. In addition, the Company reports certain of its results of operations in Corporate & Other. See Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements for further information on the Company’s segments and Corporate & Other. Management continues to evaluate the Company’s segment performance and allocated resources and may adjust related measurements in the future to better reflect segment profitability.

Group Annuity Reserves, Assumed Variable Annuity Guarantee Reserves and Other Revisions

As discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Executive Summary — Overview — Group Annuity Reserves, Assumed Variable Annuity Guarantee Reserves and Other Revisions” included in the 2017 Annual Report, material weaknesses were identified in internal control over financial reporting relating to the review of practices and procedures used to estimate (i) the Company’s reserves related to certain Retirement and Income Solutions (“RIS”) group annuitants who have been unresponsive or missing over time and (ii) certain reserves associated with MetLife Holdings variable annuity guarantees assumed from a former operating joint venture in Japan. An update of the remediation plan to remove the material weaknesses is further described in “Controls and Procedures.” Also, see Note 1 of the Notes to the Interim Condensed Consolidated Financial Statements for prior period revisions related to the Company’s consolidated results, as well as “Risk Factors” disclosed in the 2017 Annual Report for further information.

91

U.S. Tax Reform

On December 22, 2017, President Trump signed into law H.R.1, commonly referred to as the Tax Cuts and Jobs Act of 2017 (“U.S. Tax Reform”). U.S. Tax Reform includes numerous changes in tax law, including a permanent reduction in the U.S. federal corporate income tax rate from 35% to 21%, which took effect for taxable years beginning on or after January 1, 2018, a participation exemption system which generally eliminates U.S. federal income tax on dividends received from foreign subsidiaries, and a number of other revenue raisers. 

 Given the complexities of U.S. Tax Reform, amounts recorded may change, possibly materially, due to, among other things, changes in interpretations and assumptions made by the Company, additional guidance that may be issued and actions that the Company may take. The Company continues to anticipate its 2018 effective tax rate to be in the range of 18% to 20%. See Notes 1 and 12 of the Notes to the Interim Condensed Consolidated Financial Statements for a further discussion of U.S. Tax Reform and the impact to the Company in the first quarter of 2018. 

Separation of Brighthouse

On August 4, 2017, MetLife, Inc. completed the separation of Brighthouse Financial, Inc. and its subsidiaries (“Brighthouse”) through a distribution of96,776,670shares of Brighthouse Financial, Inc. common stock to the MetLife, Inc. common shareholders (the “Separation”).MetLife, Inc. retained the remaining ownership interest of 22,996,436 shares, or 19.2%, of Brighthouse Financial, Inc.common stock outstanding. The Separation resulted in the elimination of the Brighthouse Financial segment. The results of Brighthouse are reflected in the Company’s interim condensed consolidated financial statements as discontinued operationsand, therefore, are presented as income (loss) from discontinued operations on the interim condensed consolidated statements of operations and comprehensive income (loss). Prior period results have been revised to reflect discontinued operations, which are reported in Corporate & Other. The reporting of discontinued operations had no impact on total consolidated assets or liabilities or on total consolidated net income (loss) for any of the periods presented.See Note 3 of the Notes to the Interim Condensed Consolidated Financial Statements for further information.

The Company intends to divest its shares of Brighthouse Financial, Inc. common stock as soon as practicable and is considering a variety of transactions to do so. These transactions may include an equity exchange offer, a direct sale of the shares, or an exchange involving debt securities. The Company expects to complete the divestiture prior to the end of 2018 and does not expect the structure of any such transaction to affect its plans to repurchase shares of MetLife, Inc. common stock in 2018. The structure and timing of any such transaction or repurchases may not permit shareholders to dispose of Company securities and acquire Brighthouse Financial, Inc. common stock in a tax-free exchange, and are dependent upon several factors, including our capital position, liquidity, financial strength and credit ratings, general market conditions, the price of securities compared to management’s assessment of underlying value, applicable regulatory approvals, as well as other legal and accounting factors.

92

Current Period Highlights

During the three months ended March 31, 2018, overall sales decreased slightly compared to the prior period reflecting declines in each of our segments despite growth in certain businesses, notably higher funding agreement issuances in our RIS business, continued growth in our voluntary business and increased sales of foreign currency-denominated life products in Japan. In addition, while positive net flows drove an increase in our investment portfolio, investment yields declined and interest credited rates were higher. Underwriting experience was favorable compared to the prior period. Net derivative gains (losses) improved primarily as a result of changes in key equity index levels, long-term U.S. interest rates and foreign currency exchange rates. An unfavorable change in net investment gains (losses) was primarily the result of a mark-to-market loss on our retained investment in Brighthouse Financial, Inc. common stock and a leveraged lease impairment.

The following represents segment level results and percentage contributions to total segment level adjusted earnings available to common shareholders for the three months ended March 31, 2018:

__________________

(1) Excludes Corporate & Other adjusted loss available to common shareholders of $203 million.

(2) Consistent with GAAP guidance for segment reporting, adjusted earnings is our GAAP measure of segment performance. See “— Non-GAAP and Other Financial Disclosures.”

93

Three Months EndedMarch 31, 2018 Compared with the Three Months EndedMarch 31, 2017

			Consolidated Results - Highlights
			Net income (loss) available to MetLife, Inc.’s common shareholders up $380 million:
			•	Favorable change in net derivative gains (losses) of $561 million ($443 million, net of income tax)
			•	Favorable change in results from divested businesses of $316 million ($250 million, net of income tax)
			•	Unfavorable change in net investment gains (losses) of $421 million ($333 million, net of income tax)
			•	Unfavorable impact from U.S. Tax Reform of $54 million
(1) See “— Results of Operations — Consolidated Results” and “— Non-GAAP and Other Financial Disclosures” for reconciliations and definitions of non-GAAP financial measures.
Consolidated Results - Adjusted Earnings
Adjusted earnings available to common shareholders up $102 million:
•	The primary drivers of the increase in adjusted earnings were the favorable impact of U.S. Tax Reform, higher net investment income due to a larger asset base, favorable underwriting and lower expenses, partially offset by higher interest credited expenses, lower investment yields and other unfavorable tax items
•	Our results for the three months ended March 31, 2018 included the following:
	•	favorable impact from U.S. Tax Reform of $101 million
	•	favorable reserve adjustment of $62 million, net of income tax, relating to certain variable annuity guarantees assumed from a former joint venture in Japan
	•	a $34 million, net of income tax, increase in expenses associated with the Company’s previously announced unit cost initiative
•	Our results for the three months ended March 31, 2017 included the following:
	•	a $21 million, net of income tax, charge for expenses incurred related to a guaranty fund assessment for Penn Treaty Network America Insurance Company (“Penn Treaty”)
	•	favorable reserve adjustments of $34 million, net of income tax, resulting from modeling improvements in the reserving process in certain of our life businesses
	•	a $21 million, net of income tax, increase in expenses associated with the Company’s previously announced unit cost initiative

For a more in-depth discussion of our consolidated results, see “— Results of Operations — Consolidated Results” and “— Results of Operations — Consolidated Results — Adjusted Earnings.”

94

Other Key Information

Basis of Presentation

Discontinued Operations

As previously discussed, the results of Brighthouse are reflected in the Company’s consolidated financial statements as discontinued operations.Prior period results have been revised to reflect discontinued operations, which are reported in Corporate & Other. See “— Overview — Separation of Brighthouse” and Note 3 of the Notes to the Interim Condensed Consolidated Financial Statements for information on discontinued operations and transactions with Brighthouse.

Revisions

See “— Overview — Group Annuity Reserves, Assumed Variable Annuity Guarantee Reserves and Other Revisions” and Note 1 of the Notes to the Interim Condensed Consolidated Financial Statements for information regarding prior period revisions related to the Company’s consolidated results.

Industry Trends

The following information on industry trends should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends” in Part II, Item 7, of the 2017 Annual Report.

We continue to be impacted by the changing global financial and economic environment that has been affecting the industry.

Financial and Economic Environment

Our business and results of operations are materially affected by conditions in the global capital markets and the economy generally. Stressed conditions, volatility and disruptions in global capital markets, particular markets, or financial asset classes can have an adverse effect on us, in part because we have a large investment portfolio and our insurance liabilities and derivatives are sensitive to changing market factors. See “Risk Factors — Economic Environment and Capital Markets-Related Risks — We Are Exposed to Significant Global Financial and Capital Markets Risks Which May Adversely Affect Our Results of Operations, Financial Condition and Liquidity, and May Cause Our Net Investment Income to Vary from Period to Period” and “Risk Factors — Economic Environment and Capital Markets-Related Risks —Difficult Conditions in the Global Capital Markets and the Economy Generally May Materially Adversely Affect Our Business and Results of Operations” in the 2017 Annual Report.

We have market presence in numerous countries and, therefore, our business operations are exposed to risks posed by local and regional economic conditions. See “Risk Factors — Risks Related to Our Business — Our International Operations Face Political, Legal, Operational and Other Risks, Including Exposure to Local and Regional Economic Conditions, That Could Negatively Affect Those Operations or Our Profitability” in the 2017 Annual Report.

We are closely monitoring political and/or economic conditions in the United Kingdom (“U.K.”), Mexico, and South Korea that might contribute to global market volatility and impact our business operations, investment portfolio and derivatives. For example, events following the U.K.’s referendum on June 23, 2016 and the uncertainties, including foreign currency exchange risks, associated with its pending withdrawal from the European Union (“EU”), have contributed to market volatility, both in the U.S. and beyond. These factors could contribute to weakening Gross Domestic Product growth, primarily in the U.K. and, to a lesser degree, continental Europe. The magnitude and longevity of the potential negative economic impacts would depend on the detailed agreements reached by the U.K. and the EU as a result of the negotiations regarding future trade and other arrangements. See “— Investments — Current Environment — Selected Country Investments.”

95

Central banks around the world are using monetary policy to address regional economic conditions. For example, in the United States, citing a strengthening economy, the Board of Governors of the Federal Reserve System (“Federal Reserve Board”) has begun its balance sheet tapering and the Federal Reserve Board’s Federal Open Market Committee has continued to increase the federal funds rate, most recently in March 2018. While the European Central Bank has continued to expand its balance sheet via quantitative easing, it is doing so at a slower place and is expected to end quantitative easing by the end of 2018. In Japan, however, the Japanese government and the Bank of Japan are maintaining stimulus measures in order to boost inflation expectations and achieve sustainable economic growth in Japan. Such measures include the imposition of a negative rate on commercial bank deposits, continued government bond purchases and tax reform, including the lowering of the Japanese corporate tax rate and the delay until 2019 of an increase in the consumption tax to 10%. Going forward, Japan’s structural and demographic challenges may continue to limit its potential growth unless reforms that boost productivity are put into place. Japan’s high public sector debt levels are mitigated by low refinancing risks. Further actions by central banks in the future may affect interest rates and risk markets in the U.S., Europe, Japan and other developed and emerging economies, and may ultimately result in market volatility. We cannot predict with certainty the effect of these actions or the impact on our business operations, investment portfolio or derivatives. See “— Investments — Current Environment.”

Impact of a Sustained Low Interest Rate Environment

During periods of declining interest rates, we may have to invest insurance cash flows and reinvest the cash flows we received as interest or return of principal on our investments in lower yielding instruments. Moreover, borrowers may prepay or redeem the fixed income securities, mortgage loans and mortgage-backed securities in our investment portfolio with greater frequency in order to borrow at lower market rates. Therefore, some of our products expose us to the risk that a reduction in interest rates will reduce the difference between the amounts that we are required to credit on contracts in our general account and the rate of return we are able to earn on investments intended to support obligations under these contracts. This difference between interest earned and interest credited, or margin, is a key metric for the management of, and reporting for, many of our businesses.

Our expectations regarding future margins are an important component impacting the amortization of certain intangible assets such as deferred policy acquisition costs (“DAC”) and value of business acquired (“VOBA”). Significantly lower margins may cause us to accelerate the amortization, thereby reducing net income in the affected reporting period. Additionally, lower margins may also impact the recoverability of intangible assets such as goodwill, require the establishment of additional liabilities or trigger loss recognition events on certain policyholder liabilities. We review this long-term margin assumption, along with other assumptions, as part of our annual actuarial assumption review.

Some of our separate account products, including variable annuities, have certain minimum guarantee benefits. Declining interest rates increase the reserves we need to set up to protect the guarantee benefits, thereby reducing net income in the affected reporting period.

In formulating economic assumptions for its insurance contract assumptions, the Company uses projections that it makes regarding interest rates. Included in these assumptions is the projection that the 10-year Treasury rate will rise to 4.25% by 2027. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends — Low Interest Rate Scenario” included in the 2017 Annual Report for further information.

96

Competitive Pressures

The life insurance industry remains highly competitive. Product development is focused on differentiation leading to more intense competition with respect to product features and services. Several of the industry’s products can be quite homogeneous and subject to intense price competition. Cost reduction efforts are a priority for industry players, with benefits resulting in price adjustments to favor customers and reinvestment capacity. Larger companies have the ability to invest in brand equity, product development, technology optimization, risk management, and innovation, which are among the fundamentals for sustained profitable growth in the life insurance industry. Insurers are focused on their core businesses, specifically in markets where they can achieve scale. Financial strength and flexibility, and technology modernization are prerequisites for sustainable growth in the life insurance industry. Larger market participants tend to have the capacity to invest in analytics, distribution, and information technology and have the capability to engage with the new digital entrants. There is a shift in distribution from proprietary to third party models in mature markets, due to the lower cost structure. Evolving customer expectations are having a significant impact on the competitive environment as insurers strive to offer the superior customer service demanded by an increasingly sophisticated industry client base. We believe that the continued volatility of the financial markets and its impact on the capital position of many competitors will continue to strain the competitive environment. Legislative and other changes affecting the regulatory environment can also affect the competitive environment within the life insurance industry and within the broader financial services industry. See “— Industry Trends — Regulatory Developments,” as well as “Business — Regulation” in the 2017 Annual Report. We believe that the aforementioned factors have highlighted financial strength, technology efficiency, and organizational agility as the most significant differentiators and, as a result, we believe the Company is well positioned to compete in this environment.

Regulatory Developments

The following discussion on regulatory developments should be read in conjunction with “Business — Regulation” in the 2017 Annual Report, as amended or supplemented in our subsequently filed Quarterly Reports on Form 10-Q under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends — Regulatory Developments.”

In the United States, our life insurance companies are regulated primarily at the state level, with some products and services also subject to federal regulation. In addition, MetLife, Inc. and its U.S. insurance subsidiaries are subject to regulation under the insurance holding company laws of various U.S. jurisdictions. Furthermore, some of MetLife’s operations, products and services are subject to consumer protection laws, securities, broker-dealer and investment adviser regulations, environmental and unclaimed property laws and regulations, and to the Employee Retirement Income Security Act of 1974 (“ERISA”). See “— U.S. Regulation” below, as well as “Business — Regulation — U.S. Regulation,” “Risk Factors — Regulatory and Legal Risks — Our Insurance, Pensions and Brokerage Businesses Are Highly Regulated, and Changes in Regulation and in Supervisory and Enforcement Policies May Reduce Our Profitability and Limit Our Growth,” “Risk Factors — Risks Related to Our Business — Our Statutory Life Insurance Reserve Financings May Be Subject to Cost Increases and New Financings May Be Subject to Limited Market Capacity,” and “Risk Factors — Regulatory and Legal Risks — Changes in U.S. Federal, State Securities and State Insurance Laws and Regulations May Affect Our Operations and Our Profitability” included in the 2017 Annual Report.

Our international insurance operations are principally regulated by insurance regulatory authorities in the jurisdictions in which they are located or operate. In addition, our investment and pension companies outside of the U.S. are subject to oversight by the relevant securities, pension and other authorities of the jurisdictions in which the companies operate. Our non-U.S. insurance businesses are also subject to current and developing solvency regimes which impose various capital and other requirements. Additionally, we may be subject in the future to enhanced capital standards, supervision and additional requirements of other international and global regulatory initiatives. See “— International Regulation” below, as well as “Business — Regulation — International Regulation” and “Risk Factors — Regulatory and Legal Risks — Our Insurance, Pensions and Brokerage Businesses Are Highly Regulated, and Changes in Regulation and in Supervisory and Enforcement Policies May Reduce Our Profitability and Limit Our Growth,” included in the 2017 Annual Report.

U.S. Regulation

Insurance Regulation

Surplus and Capital; Risk-Based Capital

The National Association of Insurance Commissioners (“NAIC”) adopted for 2018 a Risk-Based Capital (“RBC”) revision for collateral pledged to support Federal Home Loan Bank (“FHLB”) advances, which we expect to have a modest positive impact on our RBC ratios, and a RBC charge for operational risk, which we expect to have an immaterial impact on our RBC ratios. The NAIC is also studying RBC revisions for bonds, real estate, and longevity risk, but it is premature to project the impact of any potential regulatory changes resulting from such studies.

97

New York Insurance Regulation 210

Insurance Regulation 210 went into effect in New York on March 19, 2018. Insurance Regulation 210 establishes standards for the determination and any readjustment of non-guaranteed elements (“NGEs”) that may vary at the insurer's discretion for life insurance policies and annuity contracts delivered or issued for delivery in New York State. Examples of NGEs include cost of insurance for universal life insurance policies, as well as interest crediting rates for annuities and universal life insurance policies. The regulation requires insurers to notify policyholders at least 60 days in advance of any change in NGEs that is adverse to policyholders and, with respect to life insurance, to notify the New York Department of Financial Services (“NYDFS”) at least 120 days prior to any such changes. Additionally, the regulation requires insurers to file annually with NYDFS to inform the NYDFS of any changes adverse to policyholders made in the prior year. The regulation generally prohibits insurers from increasing profit margins for in-force policies or adjusting NGEs in order to recoup past losses.

ERISA and Fiduciary Considerations

The Department of Labor (“DOL”) issued regulations, which became for the most part applicable on June 9, 2017, that substantially expanded the definition of “investment advice” and require that an impartial or “best interests” standard be met in providing such advice, thereby broadening the circumstances under which MetLife or its representatives, in providing investment advice with respect to ERISA plans, plan participants or Individual Retirement Accounts (“IRAs”), could be deemed a fiduciary under ERISA or the Internal Revenue Code of 1986, as amended. Several financial services industry groups have initiated litigation challenging the regulations on both procedural and substantive grounds. In particular, on March 15, 2018, the U.S. Court of Appeals for the Fifth Circuit (the “Fifth Circuit”) vacated the regulations (including related prohibited transaction exemptions), holding that the regulations were unreasonable, that the DOL lacked statutory authority to promulgate them, and that the DOL overreached its authority by doing so. This decision, which could take effect as early as May 7, 2018, if it is not further litigated, may alter whether and how some or all of the rules are applied to our business or the way in which predecessor prohibited transaction exemptions may be interpreted in the future.

On November 24, 2017, the NAIC issued an exposure draft of an expanded Suitability in Annuity Transactions Model Regulation, intended to result in the adoption of a “best interest” standard on a nationwide basis. The amendments to the regulation originally proposed are expected to be modified following the decision by the Fifth Circuit described above. In addition, on December 27, 2017, the NYDFS proposed revisions to Insurance Regulation 187, which not only incorporate the “best interest” standard, but also would expand the scope of the regulations to include sales of life insurance policies, as well as annuities, to consumers. The NYDFS’s proposed revisions to Insurance Regulation 187 were open for public comment until February 25, 2018, and on April 27, 2018, the NYDFS exposed an updated draft of the regulation for a 30-day comment period. Separately, on April 18, 2018, the SEC proposed and opened for public comment Regulation Best Interest, which would require broker-dealers to act in the best interest of “retail” customers including participants in ERISA-covered plans and IRAs when making a recommendation of any securities transaction or investment strategy involving securities. See “Risk Factors — Regulatory and Legal Risks — Our Insurance, Pensions and Brokerage Businesses Are Highly Regulated, and Changes in Regulation and in Supervisory and Enforcement Policies May Reduce Our Profitability and Limit Our Growth” included in the 2017 Annual Report.

International Regulation

In Chile, in September 2015, a Presidential Advisory Committee issued several recommendations to reform the pension system and, on August 10, 2017, Chilean President Bachelet submitted a pension reform proposal comprised of three legislative components: (i) a 5% additional contribution from employers; (ii) a public independent entity to manage the additional funds; and (iii) legislative text that modifies pension fund administrator regulations. After assuming office in March 2018, President Piñera announced that his government will introduce pension reform legislation during his first year in office. While the details of his pension reform proposal are still unknown, there is a risk that this reform may have an adverse effect on our business in Chile.

Other International and Global Regulatory Initiatives

The General Data Protection Regulation (“GDPR”), which is intended to establish uniform data privacy laws across the EU, is scheduled to become effective for all EU member states on May 25, 2018. GDPR is extraterritorial in that it applies to EU entities, as well as entities not established in the EU that offer goods or services to data subjects in the EU or monitor consumer behavior that takes place in the EU. Fines may be imposed for non-compliance with the requirements of the GDPR.

98

Summary of Critical Accounting Estimates

The preparation of financial statements in conformity with GAAP requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the Interim Condensed Consolidated Financial Statements. The most critical estimates include those used in determining:

(i) liabilities for future policy benefits and the accounting for reinsurance;

(ii) capitalization and amortization of DAC and the establishment and amortization of VOBA;

(iii) estimated fair values of investments in the absence of quoted market values;

(iv) investment impairments;

(v) estimated fair values of freestanding derivatives and the recognition and estimated fair value of embedded derivatives requiring bifurcation;

(vi) measurement of goodwill and related impairment;

(vii) measurement of employee benefit plan liabilities;

(viii) measurement of income taxes and the valuation of deferred tax assets; and

(ix) liabilities for litigation and regulatory matters.

In addition, the application of acquisition accounting requires the use of estimation techniques in determining the estimated fair values of assets acquired and liabilities assumed — the most significant of which relate to the aforementioned critical accounting estimates. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to our business and operations. Actual results could differ from these estimates.

The above critical accounting estimates are described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates” and Note 1 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report.

Economic Capital

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 our business.

Our economic capital model, coupled with considerations of local capital requirements, aligns segment allocated equity with emerging standards and consistent risk principles. The model applies statistics-based risk evaluation principles to the material risks to which the Company is exposed. These consistent risk principles include calibrating required economic capital shock factors to a specific confidence level and time horizon while applying an industry standard method for the inclusion of diversification benefits among risk types. Economic capital-based risk estimation is an evolving science and industry best practices have emerged and continue to evolve. Areas of evolving industry best practices include stochastic liability valuation techniques, alternative methodologies for the calculation of diversification benefits, and the quantification of appropriate shock levels. MetLife’s management is responsible for the ongoing production and enhancement of the economic capital model and reviews its approach periodically to ensure that it remains consistent with emerging industry practice standards.

Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact our consolidated net investment income, income (loss) from continuing operations, net of income tax, or adjusted earnings.

Net investment income is based upon the actual results of each segment’s specifically identifiable investment portfolios 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.

99

Acquisitions and Dispositions

2018 Disposition

See Note 3 of the Notes to the Interim Condensed Consolidated Financial Statements for information regarding the Company’s disposition of MetLife Afore, S.A. de C.V., its pension fund management business in Mexico.

2017 Separation of Brighthouse

See Note 3 of the Notes to the Interim Condensed Consolidated Financial Statements for information regarding the Separation.

100

Results of Operations

Consolidated Results

Business Overview. Overall sales for the three months ended March 31, 2018 decreased slightly compared to the prior period reflecting declines in each of our segments despite growth in certain businesses. In our U.S. segment, while sales were down in both the RIS and Group Benefits businesses, funding agreement issuances were higher in RIS and Group Benefits experienced continued growth in its voluntary products. In Asia, the sales decline was largely the result of strong prior period sales, which included one large group case in Australia. Sales were also lower in Korea and Hong Kong, however; sales of foreign currency-denominated life products in Japan continued to increase. Total sales for Latin America decreased as a result of lower sales of group accident & health, life and retirement products in Mexico, partially offset by higher accident & health sales in Chile. The closing of the wealth management product to new business in the U.K. in the third quarter of 2017 resulted in lower sales for EMEA. Higher sales in employee benefits in Egypt and credit life in Turkey were partially offset by lower employee benefits sales in the Gulf region. Revenues in our MetLife Holdings segment decreased as a result of the discontinuance of the marketing of life and annuity products in early 2017.

		Three Months Ended March 31,
		2018			2017
	(In millions)
Revenues
Premiums		$	9,178		$	8,965
Universal life and investment-type product policy fees		1,392			1,360
Net investment income		3,745			4,421
Other revenues		474			342
Net investment gains (losses)		(333		)	88
Net derivative gains (losses)		349			(212		)
Total revenues		14,805			14,964
Expenses
Policyholder benefits and claims and policyholder dividends		9,015			9,173
Interest credited to policyholder account balances		769			1,451
Capitalization of DAC		(796		)	(713		)
Amortization of DAC and VOBA		693			663
Amortization of negative VOBA		(22		)	(43		)
Interest expense on debt		286			283
Other expenses		3,204			3,078
Total expenses		13,149			13,892
Income (loss) from continuing operations before provision for income tax		1,656			1,072
Provision for income tax expense (benefit)		399			120
Income (loss) from continuing operations, net of income tax		1,257			952
Income (loss) from discontinued operations, net of income tax		—			(76		)
Net income (loss)		1,257			876
Less: Net income (loss) attributable to noncontrolling interests		4			3
Net income (loss) attributable to MetLife, Inc.		1,253			873
Less: Preferred stock dividends		6			6
Net income (loss) available to MetLife, Inc.’s common shareholders		$	1,247		$	867

101

Three Months EndedMarch 31, 2018 Compared with the Three Months EndedMarch 31, 2017

During the three months ended March 31, 2018, net income (loss) increased $381 million from the prior period, primarily driven by favorable changes in net derivative gains (losses) and results from our divested businesses, partially offset by an unfavorable change in net investment gains (losses) and the unfavorable impact of U.S. Tax Reform.

Management of Investment Portfolio and Hedging Market Risks with Derivatives.We manage our investment portfolio using disciplined asset/liability management (“ALM”) principles, focusing on cash flow and duration to support our current and future liabilities. Our intent is to match the timing and amount of liability cash outflows with invested assets that have cash inflows of comparable timing and amount, while optimizing risk-adjusted net investment income and risk-adjusted total return. Our investment portfolio is heavily weighted toward fixed income investments, with over 80% of our portfolio invested in fixed maturity securities and mortgage loans. These securities and loans have varying maturities and other characteristics which cause them to be generally well suited for matching the cash flow and duration of insurance liabilities. In addition, our general account investment portfolio includes, within contractholder-directed equity securities and fair value option securities (collectively, “Unit-linked and FVO Securities”), contractholder-directed equity securities supporting unit-linked variable annuity type liabilities (“Unit-linked investments”), which do not qualify as separate account assets. The returns on these Unit-linked investments, which can vary significantly from period to period, include changes in estimated fair value subsequent to purchase, inure to contractholders and are offset in earnings by a corresponding change in policyholder account balances through interest credited to policyholder account balances.

We purchase investments to support our insurance liabilities and not to generate net investment gains and losses. However, net investment gains and losses are incurred and can change significantly from period to period due to changes in external influences, including changes in market factors such as interest rates, foreign currency exchange rates, credit spreads and equity markets; counterparty specific factors such as financial performance, credit rating and collateral valuation; and internal factors such as portfolio rebalancing. Changes in these factors from period to period can significantly impact the levels of both impairments and realized gains and losses on investments sold.

We also use derivatives as an integral part of our management of the investment portfolio and insurance liabilities to hedge certain risks, including changes in interest rates, foreign currency exchange rates, credit spreads and equity market levels. We use freestanding interest rate, equity, credit and currency derivatives to hedge certain invested assets and insurance liabilities. A small portion of these hedges are designated and qualify as accounting hedges, which reduce volatility in earnings. For those hedges not designated as accounting hedges, changes in market factors lead to the recognition of fair value changes in net derivative gains (losses) generally without an offsetting gain or loss recognized in earnings for the item being hedged, which creates volatility in earnings. During 2017, we restructured certain derivative hedges to decrease volatility from nonqualified interest rate derivatives and to help meet prospective dividend and free cash flow objectives under varying interest rate scenarios. As part of this restructuring, we replaced certain nonqualified derivatives with derivatives that qualify for hedge accounting treatment. In addition, we also entered into replication transactions using interest rate swaps, which are accounted for at amortized cost under statutory guidelines and are nonqualified derivatives under GAAP. We actively evaluate market risk hedging needs and strategies to ensure our free cash flow and capital objectives are met under a range of market conditions. 

Certain variable annuity products with guaranteed minimum benefits contain embedded derivatives that are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value recorded in net derivative gains (losses). We use freestanding derivatives to hedge the market risks inherent in these variable annuity guarantees. Ongoing refinement of the strategy may be required to adapt to changing NAIC rules, which may become effective as early as January 1, 2019. The restructured hedge strategy is classified as a macro hedge program, included in the non-VA program derivatives section of the table below, to protect our overall statutory capital from significant adverse economic conditions. The valuation of these embedded derivatives includes a nonperformance risk adjustment, which is unhedged, and can be a significant driver of net derivative gains (losses) and volatility in earnings, but does not have an economic impact on us.

102

Net Derivative Gains (Losses).The variable annuity embedded derivatives and associated freestanding derivative hedges are collectively referred to as “VA program derivatives” in the following table. All other derivatives that are economic hedges of certain invested assets and insurance liabilities are referred to as “non-VA program derivatives” in the following table. The table below presents the impact on net derivative gains (losses) from non-VA program derivatives and VA program derivatives:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Non-VA program derivatives
Interest rate	$	(97	)	$	(168	)
Foreign currency exchange rate	287			125
Credit	(29		)	44
Equity	17			(1		)
Non-VA embedded derivatives	26			(40		)
Total non-VA program derivatives	204			(40		)
VA program derivatives
Market risks in embedded derivatives	(4		)	287
Nonperformance risk adjustment on embedded derivatives	20			(52		)
Other risks in embedded derivatives	(5		)	(38		)
Total embedded derivatives	11			197
Freestanding derivatives hedging embedded derivatives	134			(369		)
Total VA program derivatives	145			(172		)
Net derivative gains (losses)	$	349		$	(212	)

The favorable change in net derivative gains (losses) on non-VA program derivatives was $244 million ($193 million, net of income tax). This was primarily due to realized currency losses in the prior period on sales of foreign-denominated securities in non-qualified hedges. Due to asymmetrical accounting, currency gains or losses on the derivatives are recognized each period in net derivative gains (losses), whereas currency gains or losses since inception on the foreign-denominated securities are recognized in net derivative gains (losses) only at maturity or termination. Additionally, short-term interest rates increased more in the current period than in the prior period, favorably impacting interest rate caps. There was a change in the value of the underlying assets favorably impacting non-VA embedded derivatives related to funds withheld on a certain reinsurance agreement. These increases were partially offset by credit spreads mostly widening in the current period and narrowing in the prior period unfavorably impacting replications. Because certain of these hedging strategies are not designated or do not qualify as accounting hedges, the changes in the estimated fair value of these freestanding derivatives are recognized in net derivative gains (losses) without an offsetting gain or loss recognized in earnings for the item being hedged.

The favorable change in net derivative gains (losses) on VA program derivatives was $317 million ($250 million, net of income tax). This was due to a favorable change of $212 million ($167 million, net of income tax) in market risks in embedded derivatives, net of the impact of freestanding derivatives hedging those risks, a favorable change of $33 million ($26 million, net of income tax) in other risks in embedded derivatives, and a favorable change of $72 million, ($57 million, net of income tax) in the nonperformance risk adjustment on embedded derivatives. Other risks relate primarily to the impact of policyholder behavior and other non-market risks that generally cannot be hedged.

103

The foregoing $212 million ($167 million, net of income tax) favorable change reflects a $503 million ($397 million, net of income tax) favorable change in freestanding derivatives hedging market risks in embedded derivatives partially offset by a $291 million ($230 million, net of income tax) unfavorable change in market risks in embedded derivatives.

The primary changes in market factors are summarized as follows:

• Key equity index levels decreased in the current period and increased in the prior period, contributing to a favorable change in our freestanding derivatives and an unfavorable change in our embedded derivatives. For example, the S&P 500 Index decreased 1% in the current period and increased 6% in the prior period.

• Long-term U.S. interest rates increased more in the current period versus the prior period, contributing to a favorable change in our embedded derivatives. Our freestanding interest rate derivatives were favorably impacted by the restructuring of the VA hedging strategy. For example, the 30-year U.S. swap rate increased 28 basis points in the current period and increased 5 basis points in the prior period.

• Changes in foreign currency exchange rates contributed to a favorable change in our freestanding derivatives and an unfavorable change in our embedded derivatives related to the assumed variable annuity guarantees from our former operating joint venture in Japan. For example, the Japanese yen strengthened against the U.S. dollar by 6% in the current period and strengthened by 4% in the prior period.

The aforementioned $72 million ($57 million, net of income tax) favorable change in the nonperformance risk adjustment on embedded derivatives resulted from a favorable change of $49 million, before income tax, related to changes in our own credit spread, in addition to a favorable change of $23 million, before income tax, as a result of model changes and changes in capital market inputs, such as long-term interest rates and key equity index levels, on variable annuity guarantees.

When equity index levels decrease in isolation, the variable annuity guarantees become more valuable to policyholders, which results in an increase in the undiscounted embedded derivative liability. Discounting this unfavorable change by the risk adjusted rate yields a smaller loss than by discounting at the risk-free rate, thus creating a gain from including an adjustment for nonperformance risk.

When the risk-free interest rate decreases in isolation, discounting the embedded derivative liability produces a higher valuation of the liability than if the risk-free interest rate had remained constant. Discounting this unfavorable change by the risk adjusted rate yields a smaller loss than by discounting at the risk-free interest rate, thus creating a gain from including an adjustment for nonperformance risk.

When our own credit spread increases in isolation, discounting the embedded derivative liability produces a lower valuation of the liability than if our own credit spread had remained constant. As a result, a gain is created from including an adjustment for nonperformance risk. For each of these primary market drivers, the opposite effect occurs when they move in the opposite direction.

Net Investment Gains (Losses). The unfavorable change in net investment gains (losses) of $421 million ($333 million, net of income tax) primarily reflects mark-to-market losses on both our retained investment in Brighthouse Financial, Inc. common stock and our equity securities both of which are measured at fair value through net income, as well as a leveraged lease impairment and higher losses on sales of fixed maturity securities in the current period.

Divested Businesses. Income (loss) before provision for income tax related to the divested businesses, excluding net investment gains (losses) and net derivative gains (losses), increased $316 million ($250 million, net of income tax) to a loss of $2 million ($1 million, net of income tax) in the current period from a loss of $318 million ($251 million, net of income tax) in the prior period. Included in this increase was an increase in total revenues of $287 million, before income tax, and a decrease in total expenses of $29 million, before income tax. Divested businesses primarily include activity related to the Separation.

Discontinued Operations. Income (loss) from discontinued operations, net of income tax, increased $76 million for the three months ended March 31, 2018 from a loss of $76 million, net of income tax, for the comparable prior period. Income (loss) from discontinued operations reflects the results of our former Brighthouse Financial segment. For further information, see Note 3 of the Notes to the Interim Condensed Consolidated Financial Statements.

104

Taxes. Income tax expense for the three months ended March 31, 2018 was $399 million, or 24% of income (loss) from continuing operations before provision for income tax, compared with $120 million, or 11% of income (loss) from continuing operations before provision for income tax, for the three months ended March 31, 2017. The Company’s effective tax rates differ from the U.S. statutory rate of 21% typically due to non-taxable investment income, tax credits for low income housing, and foreign earnings taxed at different rates than the U.S. statutory rate. Our current period results include a tax charge of $17 million related to a tax adjustment in Chile and a $5 million tax charge in Colombia to establish a deferred tax liability due to a change in tax status. Our prior period results include a tax benefit of $9 million related to the settlement of an audit. The changes from U.S. Tax Reform resulted in a decrease in earnings of $54 million for the first quarter of 2018 compared to the prior period.

Adjusted Earnings. As more fully described in “— Non-GAAP and Other Financial Disclosures,” we use adjusted earnings, which does not equate to income (loss) from continuing operations, net of income tax, as determined in accordance with GAAP, to analyze our performance, evaluate segment performance, and allocate resources. We believe that the presentation of adjusted earnings and adjusted earnings available to common shareholders, as we measure it for management purposes, enhances the understanding of our performance by highlighting the results of operations and the underlying profitability drivers of the business. Adjusted earnings and other financial measures based on adjusted earnings allow analysis of our performance relative to our business plan and facilitate comparisons to industry results. Adjusted earnings and adjusted earnings available to common shareholders should not be viewed as substitutes for net income (loss) and net income (loss) available to MetLife, Inc.’s common shareholders, respectively. Adjusted earnings available to common shareholders increased $102 million, net of income tax, to $1.4 billion, net of income tax, for the three months ended March 31, 2018 from $1.3 billion, net of income tax, for the three months ended March 31, 2017.

105

Reconciliation of income (loss) from continuing operations, net of income tax, to adjusted earnings available to common shareholders

Three Months Ended March 31, 2018

	U.S.			Asia			Latin America			EMEA			MetLife Holdings			Corporate& Other			Total
	(In millions)
Net income (loss)	$	489		$	564		$	186		$	87		$	344		$	(413	)	$	1,257
Less: Income (loss) from discontinued operations, net of income tax	—			—			—			—			—			—			—
Income (loss) from continuing operations, net of income tax	$	489		$	564		$	186		$	87		$	344		$	(413	)	$	1,257
Less: Net investment gains (losses)	(110		)	78			3			(6		)	(106		)	(192		)	(333		)
Less: Net derivative gains (losses)	(54		)	259			149			1			34			(40		)	349
Less: Other adjustments to continuing operations (1)	(45		)	(8		)	(64		)	4			(31		)	(2		)	(146		)
Less: Provision for income tax (expense) benefit	45			(92		)	(42		)	7			22			18			(42		)
Adjusted earnings	$	653		$	327		$	140		$	81		$	425		(197		)	1,429
Less: Preferred stock dividends																6			6
Adjusted earnings available to common shareholders																$	(203	)	$	1,423

Three Months Ended March 31, 2017

	U.S.			Asia			Latin America			EMEA			MetLife Holdings			Corporate& Other			Total
	(In millions)
Net income (loss)	$	345		$	480		$	231		$	81		$	345		$	(606	)	$	876
Less: Income (loss) from discontinued operations, net of income tax	—			—			—			—			—			(76		)	(76		)
Income (loss) from continuing operations, net of income tax	$	345		$	480		$	231		$	81		$	345		$	(530	)	$	952
Less: Net investment gains (losses)	(18		)	117			12			2			21			(46		)	88
Less: Net derivative gains (losses)	(148		)	177			136			13			(4		)	(386		)	(212		)
Less: Other adjustments to continuing operations (1)	(66		)	(4		)	(29		)	5			(83		)	(314		)	(491		)
Less: Provision for income tax (expense) benefit	80			(105		)	(31		)	(14		)	24			286			240
Adjusted earnings	$	497		$	295		$	143		$	75		$	387		(70		)	1,327
Less: Preferred stock dividends																6			6
Adjusted earnings available to common shareholders																$	(76	)	$	1,321

__________________

(1) See definitions of adjusted revenues and adjusted expenses under “— Non-GAAP and Other Financial Disclosures” for the components of such adjustments and Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements for additional details on these adjustments by financial statement line item.

106

Reconciliation of revenues to adjusted revenues and expenses to adjusted expenses

Three Months Ended March 31, 2018

	U.S.			Asia			Latin America		EMEA			MetLife Holdings			Corporate& Other			Total
	(In millions)
Total revenues	$	7,123		$	3,203		$	1,417	$	462		$	2,595		$	5		$	14,805
Less: Net investment gains (losses)	(110		)	78			3		(6		)	(106		)	(192		)	(333		)
Less: Net derivative gains (losses)	(54		)	259			149		1			34			(40		)	349
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)	—			(4		)	—		(1		)	—			—			(5		)
Less: Other adjustments to revenues (1)	(54		)	(82		)	—		(286		)	(16		)	84			(354		)
Total adjusted revenues	$	7,341		$	2,952		$	1,265	$	754		$	2,683		$	153		$	15,148
Total expenses	$	6,508		$	2,402		$	1,114	$	361		$	2,169		$	595		$	13,149
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)	—			(7		)	—		(1		)	(6		)	—			(14		)
Less: Other adjustments to expenses (1)	(9		)	(71		)	64		(290		)	21			86			(199		)
Total adjusted expenses	$	6,517		$	2,480		$	1,050	$	652		$	2,154		$	509		$	13,362

Three Months Ended March 31, 2017

	U.S.			Asia		Latin America		EMEA		MetLife Holdings			Corporate& Other			Total
	(In millions)
Total revenues	$	7,034		$	3,103	$	1,398	$	1,059	$	2,942		$	(572	)	$	14,964
Less: Net investment gains (losses)	(18		)	117		12		2		21			(46		)	88
Less: Net derivative gains (losses)	(148		)	177		136		13		(4		)	(386		)	(212		)
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)	—			1		—		—		—			—			1
Less: Other adjustments to revenues (1)	(66		)	22		31		356		(33		)	(277		)	33
Total adjusted revenues	$	7,266		$	2,786	$	1,219	$	688	$	2,958		$	137		$	15,054
Total expenses	$	6,520		$	2,372	$	1,098	$	952	$	2,435		$	515		$	13,892
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)	—			1		—		—		(2		)	(1		)	(2		)
Less: Other adjustments to expenses (1)	—			26		60		351		52			38			527
Total adjusted expenses	$	6,520		$	2,345	$	1,038	$	601	$	2,385		$	478		$	13,367

__________________

(1) See definitions of adjusted revenues and adjusted expenses under “— Non-GAAP and Other Financial Disclosures” for the components of such adjustments and Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements for additional details on these adjustments by financial statement line item.

107

Consolidated Results —Adjusted Earnings

Three Months EndedMarch 31, 2018 Compared with the Three Months EndedMarch 31, 2017

Unless otherwise stated, all amounts discussed below are net of income tax.

Overview. The primary drivers of the increase in adjusted earnings were the favorable impact of U.S. Tax Reform, higher net investment income due to a larger asset base, favorable underwriting and lower expenses, partially offset by higher interest credited expenses, lower investment yields and other unfavorable tax items.

Foreign Currency. Changes in foreign currency exchange rates had a $35 million positive impact on adjusted earnings for the first quarter of 2018 compared to the prior period. Unless otherwise stated, all amounts discussed below are net of foreign currency fluctuations. Foreign currency fluctuations can result in significant variances in the financial statement line items.

U.S. Tax Reform. The changes from U.S. Tax Reform resulted in an increase in adjusted earnings of $101 million for the first quarter of 2018 compared to the prior period.

Business Growth. We benefited from positive net flows from many of our businesses, which increased our invested asset base. Growth in the investment portfolios of our U.S., Asia, and Latin America segments resulted in higher net investment income. However, this was offset by a corresponding increase in interest credited expense on certain insurance-related liabilities. In our U.S. segment, an increase in average premium per policy in our auto business, partially offset by a decrease in exposures, improved adjusted earnings. Business growth also drove an increase in commissions and other variable expenses, which were partially offset by higher DAC capitalization. The items discussed above resulted in a $38 million increase in adjusted earnings.

Market Factors. Market factors, including interest rate levels, variability in equity market returns, and foreign currency exchange rate fluctuations, continued to impact our results; however, certain impacts were mitigated by derivatives used to hedge these risks. Excluding the impact of changes in foreign currency exchange rates on reported net investment income in our non-U.S. segments and changes in inflation rates on our inflation-indexed investments, investment yields decreased. Investment yields were negatively affected by (i) lower yields on fixed maturity securities and fixed maturity and equity securities held-for-investment by the general account to support asset and liability management strategies for certain insurance products and investments in certain separate accounts (“FVO general account securities”), (ii) lower returns on private equities driven by a decrease in certain partnership distributions, and (iii) lower income on derivatives. These decreases were partially offset by higher yields on mortgage loans. Higher average interest credited rates drove an increase in interest credited expenses, primarily in our U.S. segment. In our MetLife Holdings segment, lower equity market performance in the current period drove a decrease in average separate account balances, resulting in lower asset-based fee income. The changes in market factors discussed above resulted in a $136 million decrease in adjusted earnings.

Underwriting and Other Insurance Adjustments.Favorable underwriting resulted in a$64 millionincrease in adjusted earnings primarily as a result of lower catastrophe losses, favorable mortality in our Latin America segment and favorable morbidity in our U.S. segment, partially offset by unfavorable claims experience in our Asia segment. Refinements to DAC and certain insurance-related liabilities, which were recorded in both periods across the majority of our segments, resulted in a$26 millionincrease in adjusted earnings. This includes a current period favorable reserve adjustment of $62 million in our MetLife Holdings segment relating to certain variable annuity guarantees assumed from a former joint venture in Japan. This also includes favorable refinements in the prior period of (i) a DAC adjustment related to certain participating whole life business assumed from Brighthouse; and (ii) a reserve adjustment resulting from modeling improvements in our life business reserving process.

Expenses and Taxes. A $50 million decrease in expenses included expenses incurred in the prior period related to the guaranty fund assessment for Penn Treaty, as well as declines in Separation-related costs and costs associated with enterprise-wide initiatives. Our effective tax rates differ from the U.S. statutory rate of 21% typically due to nontaxable investment income, tax credits for low income housing, and foreign earnings taxed at different rates than the U.S. statutory rate. Lower utilization of tax preferenced items and foreign tax rate differential decreased current period adjusted earnings by $39 million from the prior period. Our current period results include a tax charge of $17 million related to a tax adjustment in Chile and a $5 million tax charge in Colombia to establish a deferred tax liability due to a change in tax status. Our prior period results include a tax benefit of $9 million related to the settlement of an audit.

Other. Adjusted earnings decreased by $19 million as a result of continued annuities reinsurance activity with Brighthouse. This unfavorable impact was due to the prior period recapture and novation of assumed and ceded agreements covering certain variable annuity business.

108

Segment Results and Corporate & Other

U.S.

Business Overview.Sales decreased from the prior period, primarily driven by our RIS business, with lower sales of stable value, pension risk transfers, structured settlement and specialized benefit products. These decreases in sales were partially offset by an increase in funding agreement issuances. Changes in premiums for the RIS business were almost entirely offset by the related changes in policyholder benefits and claims. Sales declined slightly in the Group Benefits business compared to the prior period, as lower sales in our core insurance products were mostly offset by continued growth in our voluntary products. The increase in premiums, fees and other revenues from the impact of prior year sales was partially offset by the loss of a large dental contract in the second quarter of 2017. In our Property & Casualty business, sales increased over the prior period. The number of exposures decreased from the prior period, reflecting management actions to improve the quality of the business.

	Three Months Ended March 31,
	2018			2017
	(In millions)
Adjusted revenues
Premiums	$	5,217		$	5,185
Universal life and investment-type product policy fees	258			265
Net investment income	1,662			1,612
Other revenues	204			204
Total adjusted revenues	7,341			7,266
Adjusted expenses
Policyholder benefits and claims and policyholder dividends	5,138			5,244
Interest credited to policyholder account balances	407			351
Capitalization of DAC	(106		)	(100		)
Amortization of DAC and VOBA	115			114
Interest expense on debt	2			2
Other expenses	961			909
Total adjusted expenses	6,517			6,520
Provision for income tax expense (benefit)	171			249
Adjusted earnings	$	653		$	497

Three Months Ended March 31, 2018 Compared with the Three Months Ended March 31, 2017

Unless otherwise stated, all amounts discussed below are net of income tax.

U.S. Tax Reform. The changes from U.S. Tax Reform resulted in an increase in adjusted earnings of $101 million for the first quarter of 2018 compared to the prior period.

Business Growth. The impact of deposits, net flows from funding agreements and increased premiums resulted in higher average invested assets, improving net investment income. However, consistent with the growth in average invested assets from increased premiums and net flows, interest credited on long-duration contracts increased. An increase in average premium per policy in our auto business, partially offset by the decrease in exposures, improved adjusted earnings. Higher volume-related, direct and premium tax expenses were mostly offset by lower pension and post retirement expenses. This net increase in expenses, coupled with the increase due to the current period reinstatement of the annual health insurer fee under the Patient Protection and Affordable Care Act, were mostly offset by a corresponding increase in premiums, fees and other revenues. The combined impact of the items discussed above increased adjusted earnings by $49 million.

109

Market Factors. Market factors, including interest rate levels, variability in equity market returns and foreign currency exchange rate fluctuations, continued to impact our results; however, certain impacts were mitigated by derivatives used to hedge these risks. Investment yields decreased, primarily due to lower returns from private equities, driven by a decrease in certain partnership distributions, as well as a decrease in derivative income. These decreases in investment yields were partially offset by higher returns on fixed maturity securities, real estate joint ventures and mortgage loans. Higher average interest credited rates drove an increase in interest credited expenses; however, this was partially offset by an increase in adjusted earnings due to a decrease in the crediting rate on certain long-duration insurance contracts. The changes in market factors discussed above resulted in a $51 million decrease in adjusted earnings.

Underwriting and Other Insurance Adjustments. In our Property & Casualty business, catastrophe-related losses decreased $43 million in the current period, primarily due to the impact of severe storm activity in the prior period. Non-catastrophe claim costs increased $5 million, the result of higher severities in our auto business and higher frequencies in our homeowner business, partially offset by lower auto frequencies and homeowner severities. Favorable claims experience, primarily in our individual disability and accident & health businesses, resulted in a $17 million increase in adjusted earnings. Less favorable mortality results in the current period, mainly due to less favorable claim experience in our term life business, driven by the impact of a more severe flu season, were partially offset by lower incidence in our accidental death & dismemberment and universal life businesses, which resulted in a $7 million decrease in adjusted earnings. Favorable mortality in our specialized life insurance business was partially offset by less favorable mortality in our pension risk transfer business, increasing adjusted earnings by $7 million.

Asia

Business Overview. Sales decreased compared to the prior period primarily due to strong prior period sales which included one large group case in Australia. In addition, sales were lower in Korea and Hong Kong as a result of prior period sales in advance of regulatory changes that went into effect in the second quarter of 2017. In Japan, we continue to see an increase in sales of foreign currency-denominated life products.

	Three Months Ended March 31,
	2018			2017
	(In millions)
Adjusted revenues
Premiums	$	1,748		$	1,708
Universal life and investment-type product policy fees	394			366
Net investment income	795			702
Other revenues	15			10
Total adjusted revenues	2,952			2,786
Adjusted expenses
Policyholder benefits and claims and policyholder dividends	1,343			1,315
Interest credited to policyholder account balances	351			321
Capitalization of DAC	(465		)	(420		)
Amortization of DAC and VOBA	314			291
Amortization of negative VOBA	(15		)	(37		)
Other expenses	952			875
Total adjusted expenses	2,480			2,345
Provision for income tax expense (benefit)	145			146
Adjusted earnings	$	327		$	295

Three Months Ended March 31, 2018 Compared with the Three Months Ended March 31, 2017

Unless otherwise stated, all amounts discussed below are net of income tax.

Foreign Currency. Changes in foreign currency exchange rates increased adjusted earnings by $11 million for the first quarter of 2018 compared to the prior period, primarily due to the strengthening of the Japanese yen and Korean won against the U.S. dollar. Unless otherwise stated, all amounts discussed below are net of foreign currency fluctuations. Foreign currency fluctuations can result in significant variances in the financial statement line items.

110

U.S. Tax Reform.The changes from U.S. Tax Reform resulted in an increase in adjusted earnings of $11 million for the first quarter of 2018 compared to the prior period.

Business Growth. Asia’s premiums, fees and other revenues decreased from the prior period mainly due to a change in product mix from premium-based products to fee-based products, primarily from Yen protection products to foreign currency-denominated life products in Japan. The decrease in premiums from Yen protection products was partially offset by a related decline in policyholder benefits. Positive net flows in Japan and Korea resulted in higher average invested assets, which improved net investment income. The combined impact of the items discussed above improved adjusted earnings by $22 million.

Market Factors. Market factors, including interest rate levels and variability in equity market returns, continued to impact our results; however, certain impacts were mitigated by derivatives used to hedge these risks. Investment results were favorably impacted by increased derivative income, higher yields on mortgage loans and higher earnings from our joint venture in China. These increases were partially offset by lower returns on real estate investments due to a prior period lease termination fee and lower yields on fixed maturity securities in Korea and Bangladesh. The decline in fixed maturity yields was partially offset by the favorable impact of increased sales of foreign currency-denominated fixed annuities in Japan, primarily in its Australian dollar-denominated portfolio, which drove an increase in higher yielding foreign currency-denominated fixed maturity securities. The combined impact of the items discussed above increased adjusted earnings by $13 million.

Underwriting and Other Insurance Adjustments.Higher lapses and claims in Japan decreased adjusted earnings by $21 million. Refinements to certain insurance liabilities and other liabilities in the prior period resulted in a $15 million increase in adjusted earnings.

Expenses. Higher expenses, primarily driven by higher employee-related and project costs, reduced adjusted earnings by $15 million.

Latin America

Business Overview.Total sales for Latin America decreased compared to the prior period, driven by lower sales of group accident & health, life and retirement products in Mexico, partially offset by higher accident & health sales in Chile.

	Three Months Ended March 31,
	2018			2017
	(In millions)
Adjusted revenues
Premiums	$	699		$	647
Universal life and investment-type product policy fees	282			260
Net investment income	276			303
Other revenues	8			9
Total adjusted revenues	1,265			1,219
Adjusted expenses
Policyholder benefits and claims and policyholder dividends	646			633
Interest credited to policyholder account balances	98			82
Capitalization of DAC	(94		)	(82		)
Amortization of DAC and VOBA	60			78
Interest expense on debt	2			1
Other expenses	338			326
Total adjusted expenses	1,050			1,038
Provision for income tax expense (benefit)	75			38
Adjusted earnings	$	140		$	143

Three Months Ended March 31, 2018 Compared with the Three Months Ended March 31, 2017

Unless otherwise stated, all amounts discussed below are net of income tax.

111

Foreign Currency. Changes in foreign currency exchange rates increased adjusted earnings by $14 million for the first quarter of 2018 compared to the prior period mainly due to the strengthening of the Mexican and Chilean pesos against the U.S. dollar. Unless otherwise stated, all amounts discussed below are net of foreign currency fluctuations. Foreign currency fluctuations can result in significant variances in the financial statement line items.

U.S. Tax Reform. The changes from U.S. Tax Reform resulted in a decrease in adjusted earnings of $10 million for the first quarter of 2018 compared to the prior period.

Business Growth.Latin America experienced growth across several lines of business primarily within Chile. This growth resulted in increased premiums and policy fee income which was largely offset by related changes in policyholder benefits. Positive net flows, primarily from Mexico and Chile, resulted in an increase in average invested assets and generated higher net investment income. This was partially offset by an increase in interest credited expense on certain insurance liabilities. Business growth also drove an increase in commissions and other variable expenses, which were partially offset by higher DAC capitalization. The items discussed above resulted in a $9 million decrease in adjusted earnings.

Market Factors. Market factors, including interest rate levels and variability in equity market returns, continued to impact our results; however, certain impacts were mitigated by derivatives used to hedge these risks. Changes in market factors resulted in a $38 million decrease in adjusted earnings primarily due to lower investment yields. The decrease in investment yields was primarily driven by lower returns from FVO general account securities in Chile and lower yields on fixed income securities in Mexico and Chile. In addition, an increase in interest credited expenses contributed to the decline in adjusted earnings.

Underwriting and Other Insurance Adjustments. Favorable underwriting resulted in a $35 million increase to adjusted earnings primarily driven by lower claims experience in Mexico. In addition, refinements to certain insurance liabilities and other adjustments in both periods, primarily in Chile, Mexico and Brazil, resulted in a $5 million increase to adjusted earnings.

Expenses and Taxes. An $18 million decrease in expenses was primarily the result of reduction of a litigation reserve in Argentina. Our results for the current period include tax expenses of $20 million primarily driven by a $17 million tax charge related to a tax adjustment in Chile and a $5 million tax charge in Colombia to establish a deferred tax liability due to a change in tax status. Other tax items include a $10 million tax benefit as a result of changes in the valuation of the peso in Argentina in both periods offset by a prior period tax benefit of $9 million related to the settlement of an audit.

112

EMEA

Business Overview. Sales decreased slightly in the current period. Excluding the impact from the closure of the U.K. wealth management product to new business, sales have increased, driven by accident and health, life and credit business sales.

	Three Months Ended March 31,
	2018			2017
	(In millions)
Adjusted revenues
Premiums	$	551		$	502
Universal life and investment-type product policy fees	112			95
Net investment income	75			74
Other revenues	16			17
Total adjusted revenues	754			688
Adjusted expenses
Policyholder benefits and claims and policyholder dividends	294			269
Interest credited to policyholder account balances	25			24
Capitalization of DAC	(118		)	(92		)
Amortization of DAC and VOBA	106			87
Amortization of negative VOBA	(6		)	(3		)
Other expenses	351			316
Total adjusted expenses	652			601
Provision for income tax expense (benefit)	21			12
Adjusted earnings	$	81		$	75

Three Months Ended March 31, 2018 Compared with the Three Months Ended March 31, 2017

Unless otherwise stated, all amounts discussed below are net of income tax.

Foreign Currency. Changes in foreign currency exchange rates increased adjusted earnings by $10 million for the first quarter of 2018 as compared to the prior period, primarily driven by the weakening of the U.S. dollar against the euro, the Polish zloty, and the British pound. Unless otherwise stated, all amounts discussed below are net of foreign currency fluctuations. Foreign currency fluctuations can result in significant variances in the financial statement line items.

U.S. Tax Reform. The changes from U.S. Tax Reform resulted in a decrease in adjusted earnings of $7 million for the first quarter of 2018 compared to the prior period.

Business Growth. Growth from our accident & health and credit life businesses in Turkey and across several European markets increased adjusted earnings by $8 million.

Market Factors. Market factors, including interest rate levels and variability in equity market returns, continued to impact our results; however, certain impacts were mitigated by derivatives used to hedge these risks. A slight decrease in net investment income was driven by the sustained low interest rate environment, which drove lower investment yields on fixed maturity securities.

Underwriting. Unfavorable underwriting, primarily in our employee benefits business in the U.K. and in our ordinary life business in France, decreased adjusted earnings by $11 million.

Expenses. Adjusted earnings increased by $12 million due to expense discipline across the region, as well as enterprise-wide initiatives taken by the Company, notably the closing of the wealth management product to new business in the U.K. in the third quarter of 2017.

Other. A decrease in our invested asset base due to dividend payments impacted net investment income and decreased adjusted earnings by $4 million.

113

MetLife Holdings

Business Overview. The discontinuance of the marketing of life and annuity products in this segment in early 2017 resulted in lower revenues. This will continue to result in a declining DAC asset over time and we anticipate an average decline in premiums, fees and other revenues of approximately 5% per year from expected business run-off. A significant portion of our adjusted earnings is driven by separate account balances. Most directly, these balances determine asset-based fee income but they also impact DAC amortization and asset-based commissions. Separate account balances are driven by sales, movements in the market, surrenders, withdrawals, benefit payments, transfers and policy charges. Separate account balances decreased due to negative net flows, as benefits, surrenders and withdrawals exceeded sales and equity performance. Although we have discontinued selling our long-term care product, we continue to collect premiums and administer the existing block of business, which contributed to asset growth in the segment, and we expect the related reserves to grow as this block matures.

	Three Months Ended March 31,
	2018			2017
	(In millions)
Adjusted revenues
Premiums	$	950		$	1,059
Universal life and investment-type product policy fees	314			362
Net investment income	1,352			1,441
Other revenues	67			96
Total adjusted revenues	2,683			2,958
Adjusted expenses
Policyholder benefits and claims and policyholder dividends	1,550			1,733
Interest credited to policyholder account balances	236			257
Capitalization of DAC	(10		)	(34		)
Amortization of DAC and VOBA	100			74
Interest expense on debt	2			15
Other expenses	276			340
Total adjusted expenses	2,154			2,385
Provision for income tax expense (benefit)	104			186
Adjusted earnings	$	425		$	387

Three Months Ended March 31, 2018 Compared with the Three Months Ended March 31, 2017

Unless otherwise stated, all amounts discussed below are net of income tax.

U.S. Tax Reform. The changes from U.S. Tax Reform resulted in an increase in adjusted earnings of $73 million for the first quarter of 2018 compared to the prior period.

Business Growth. Lower net investment income, resulting from a reduced invested asset base, primarily in fixed maturity securities, decreased adjusted earnings. The reduced asset base is primarily the result of negative net flows in our deferred annuities business. These negative net flows also contributed to a decrease in average separate account balances and, consequently, asset-based fee income. Lower deferred annuity interest credited increased adjusted earnings. In our life business, a decrease in universal life sales resulted in lower fee income, net of DAC amortization, decreasing adjusted earnings. Interest credited decreased in our life business, partially offset by an increase in our long-term care business, resulting in a net increase to adjusted earnings. The combined impact of the items discussed above resulted in a $29 million decrease in adjusted earnings.

Market Factors.Market factors, including interest rate levels, variability in equity market returns, and foreign currency exchange rate fluctuations, continued to impact our results; however, certain impacts were mitigated by derivatives used to hedge these risks. Investment yields decreased primarily due to lower derivative income, as well as lower returns on fixed maturity securities and mortgage loans. These reductions in yields were partially offset by higher returns on real estate joint ventures. In our deferred annuity business, lower equity returns drove a decrease in average separate account balances which resulted in lower asset-based fee income. The changes in market factors discussed above resulted in a $46 million decrease in adjusted earnings.

114

Underwriting and Other Insurance Adjustments.Favorable claims experience in our long-term care business, as well as mortality gains on life-contingent annuities, partially offset by unfavorable mortality in our life business, resulted in a $7 million increase in adjusted earnings. Refinements to DAC and certain insurance-related liabilities that were recorded in both periods resulted in a $3 million increase in adjusted earnings. This includes a current period favorable reserve adjustment of $62 million relating to certain variable annuity guarantees assumed from a former joint venture in Japan. This also includes favorable refinements in the prior period of (i) a DAC adjustment related to certain participating whole life business assumed from Brighthouse; and (ii) a reserve adjustment resulting from modeling improvements in our life business reserving process.

Expenses.Adjusted earnings increased by $39 million as a result of lower expenses, primarily due to declines in Separation-related expenses.

Other.Adjusted earnings decreased by $19 million as a result of continued annuities reinsurance activity with Brighthouse. This unfavorable impact was due to the prior period recapture and novation of assumed and ceded agreements covering certain variable annuity business and continued reinsurance activity.

115

Corporate & Other

	Three Months Ended March 31,
	2018			2017
	(In millions)
Adjusted revenues
Premiums	$	13		$	38
Net investment income	59			40
Other revenues	81			59
Total adjusted revenues	153			137
Adjusted expenses
Policyholder benefits and claims and policyholder dividends	(3		)	25
Interest credited to policyholder account balances	—			1
Capitalization of DAC	(2		)	(1		)
Amortization of DAC and VOBA	2			1
Interest expense on debt	280			277
Other expenses	232			175
Total adjusted expenses	509			478
Provision for income tax expense (benefit)	(159		)	(271		)
Adjusted earnings	(197		)	(70		)
Less: Preferred stock dividends	6			6
Adjusted earnings available to common shareholders	$	(203	)	$	(76	)

The table below presents adjusted earnings available to common shareholders by source:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Other business activities	$	6		$	8
Other net investment income	57			69
Interest expense on debt	(293		)	(298		)
Corporate initiatives and projects	(39		)	(49		)
Other	(87		)	(71		)
Provision for income tax (expense) benefit and other tax-related items	159			271
Preferred stock dividends	(6		)	(6		)
Adjusted earnings available to common shareholders	$	(203	)	$	(76	)

Three Months Ended March 31, 2018 Compared with the Three Months Ended March 31, 2017

Unless otherwise stated, all amounts discussed below are net of income tax.

U.S. Tax Reform. The changes from U.S. Tax Reform resulted in a decrease in adjusted earnings of $67 million for the first quarter of 2018 compared to the prior period.

Other Net Investment Income. Higher returns on private equities were more than offset by lower returns on the remainder of the portfolio, resulting in a decrease of $9 million in other net investment income.

Corporate Initiatives and Projects. Expenses associated with corporate initiatives and projects decreased by $8 million, primarily due to lower costs associated with enterprise-wide initiatives, partially offset by higher expenses related to our unit cost initiative.

116

Provision for Income Tax (Expense) Benefit and Other Tax-Related Items. In addition to the impact of U.S. Tax Reform, Corporate & Other’s effective tax rate differs from the U.S. statutory rate of 21% typically due to benefits from the impact of certain permanent tax preferenced items, including non-taxable investment income, tax credits for investments in low income housing, and foreign earnings taxed at different rates than the U.S. statutory rate. Results for the current period were lower by $45 million due to decreased utilization of tax preferenced items.

Other. Adjusted earnings decreased as a result of a $32 million increase in litigation reserves and an $18 million increase in corporate-related expenses. These increases in expenses were partially offset by $21 million of expenses incurred in the prior period and taxed at the prior period rate related to the guaranty fund assessment for Penn Treaty and a $13 million decrease in employee-related expenses.

117

Investments

Investment Risks

Our primary investment objective is to optimize, net of income tax, risk-adjusted net investment income and risk-adjusted total return while ensuring that assets and liabilities are managed on a cash flow and duration basis. The Investments Department, led by the Chief Investment Officer, manages investment risks using a risk control framework comprised of policies, procedures and limits, as discussed further below. The Investments Risk Committee reviews and monitors investment risk limits and tolerances. We are exposed to the following primary sources of investment risks:

• credit risk, relating to the uncertainty associated with the continued ability of a given obligor to make timely payments of principal and interest;

• interest rate risk, relating to the market price and cash flow variability associated with changes in market interest rates. Changes in market interest rates will impact the net unrealized gain or loss position of our fixed income investment portfolio and the rates of return we receive on both new funds invested and reinvestment of existing funds;

• liquidity risk, relating to the diminished ability to sell certain investments, in times of strained market conditions;

• market valuation risk, relating to the variability in the estimated fair value of investments associated with changes in market factors such as credit spreads and equity market levels. A widening of credit spreads will adversely impact the net unrealized gain (loss) position of the fixed income investment portfolio, will increase losses associated with credit-based non-qualifying derivatives where we assume credit exposure, and, if credit spreads widen significantly or for an extended period of time, will likely result in higher other-than-temporary impairment (“OTTI”). Credit spread tightening will reduce net investment income associated with purchases of fixed maturity securities and will favorably impact the net unrealized gain (loss) position of the fixed income investment portfolio;

• currency risk, relating to the variability in currency exchange rates for foreign denominated investments. This risk relates to potential decreases in estimated fair value and net investment income resulting from changes in currency exchange rates versus the U.S. dollar. In general, the weakening of foreign currencies versus the U.S. dollar will adversely affect the estimated fair value of our foreign denominated investments; and

• real estate risk, relating to commercial, agricultural and residential real estate, and stemming from factors, which include, but are not limited to, market conditions, including the demand and supply of leasable commercial space, creditworthiness of borrowers and their tenants and joint venture partners, capital markets volatility and inherent interest rate movements.

We manage investment risk through in-house fundamental credit analysis of the underlying obligors, issuers, transaction structures and real estate properties. We also manage credit risk, market valuation risk and liquidity risk through industry and issuer diversification and asset allocation. Risk limits to promote diversification by asset sector, to avoid concentrations in any single issuer and to limit overall aggregate credit and equity risk exposure, as measured by our economic capital framework, are approved annually by the Investment Committee of MetLife, Inc. that oversees our investment portfolio. For real estate assets, we manage credit risk and market valuation risk through geographic, property type and product type diversification and asset allocation. We manage interest rate risk as part of our ALM strategies. These strategies include maintaining an investment portfolio with diversified maturities that has a weighted average duration that reflects the duration of our estimated liability cash flow profile, and utilizing product design, such as the use of market value adjustment features and surrender charges, to manage interest rate risk. We also manage interest rate risk through proactive monitoring and management of certain non-guaranteed elements of our products, such as the resetting of credited interest and dividend rates for policies that permit such adjustments. In addition to hedging with foreign currency derivatives, we manage currency risk by matching much of our foreign currency liabilities in our foreign subsidiaries with their respective foreign currency assets, thereby reducing our risk to foreign currency exchange rate fluctuation. We also use certain derivatives in the management of credit, interest rate and market valuation risk.

We use purchased credit default swaps to mitigate credit risk in our investment portfolio. Generally, we purchase credit protection by entering into credit default swaps referencing the issuers of specific assets we own. In certain cases, basis risk exists between these credit default swaps and the specific assets we own. For example, we may purchase credit protection on a macro basis to reduce exposure to specific industries or other portfolio concentrations. In such instances, the referenced entities and obligations under the credit default swaps may not be identical to the individual obligors or securities in our investment portfolio. In addition, our purchased credit default swaps may have shorter tenors than the underlying investments they are hedging. However, we dynamically hedge this risk through the rebalancing and rollover of our credit default swaps at their most liquid tenors. We believe that our purchased credit default swaps serve as effective economic hedges of our credit exposure.

118

We enter into market standard purchased and written credit default swap contracts. Payout under such contracts is triggered by certain credit events experienced by the referenced entities. For credit default swaps covering North American corporate issuers, credit events typically include bankruptcy and failure to pay on borrowed money. For European corporate issuers, credit events typically also include involuntary restructuring. With respect to credit default contracts on Western European sovereign debt, credit events typically include failure to pay debt obligations, repudiation, moratorium, or involuntary restructuring. In each case, payout on a credit default swap is triggered only after the Credit Derivatives Determinations Committee of the International Swaps and Derivatives Association determines that a credit event has occurred.

Current Environment

The global economy and markets continue to be affected by stress and volatility, which has adversely affected the financial services sector, in particular, and global capital markets. Political and economic instability has contributed to global market volatility which may have an impact on our investments.

As a global insurance company, we continue to be impacted by the changing global financial and economic environment, as well as the monetary policy of central banks around the world. Measures taken by central banks, including with respect to the level of interest rates, may have an impact on the pricing levels of risk-bearing investments and may adversely impact our business operations, investment portfolio and derivatives. The current environment continues to impact our net investment income, net investment gains (losses), net derivative gains (losses), level of unrealized gains (losses) within the various asset classes in our investment portfolio, and our level of investment in lower yielding cash equivalents, short-term investments and government securities. See “— Industry Trends — Financial and Economic Environment,” as well as “Risk Factors — Economic Environment and Capital Markets-Related Risks — We Are Exposed to Significant Global Financial and Capital Markets Risks Which May Adversely Affect Our Results of Operations, Financial Condition and Liquidity, and May Cause Our Net Investment Income to Vary from Period to Period” included in the 2017 Annual Report.

European Investments

We maintain general account investments in Europe to support our insurance operations and related policyholder liabilities in these countries and certain of our non-European operations invest in Europe for diversification. In Europe, we have proactively mitigated risk in both direct and indirect exposures by investing in a diversified portfolio of high quality investments with a focus on the higher-rated countries, including the U.K., Germany, France, the Netherlands, Poland, Sweden and Norway. The sovereign debt of these countries continues to maintain investment grade credit ratings from all major rating agencies. Our European fixed maturity and perpetual hybrid securities classified as non-redeemable preferred stock are invested in a diversified portfolio of primarily non-financial services securities. At March 31, 2018, our exposure to such securities in Europe totaled $37.9 billion, at estimated fair value, of which $8.7 billion was in sovereign fixed maturity securities. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Investments — Current Environment — European Investments” included in the 2017 Annual Report for further information.

Selected Country Investments

We have country specific exposure to volatility, as we maintain general account investments in the U.K., South Korea and Mexico to support our insurance operations and related policyholder liabilities in these countries. We also have exposure to volatility in these selected countries through our global portfolio diversification. Our exposure to sovereign fixed maturity securities and total fixed maturity securities of the U.K., South Korea and Mexico totaled $10.1 billion and $25.7 billion, at estimated fair value, respectively, at March 31, 2018.

We manage direct and indirect investment exposure in the selected countries through fundamental credit analysis and we continually monitor and adjust our level of investment exposure. We do not expect any adverse impact to our general account investments in these countries will have a material adverse effect on our results of operations or financial condition.

119

Investment Portfolio Results

The following yield table presents the yield and net investment income, as reported on an adjusted basis, for our investment portfolio for the periods indicated. We calculate yields using net investment income, as reported on an adjusted basis. Net investment income, as reported on an adjusted basis, includes the impact of changes in foreign currency exchange rates. This yield table presentation is consistent with how we measure our investment performance for management purposes, and we believe it enhances understanding of our investment portfolio results.

	For the Three Months Ended March 31,
	2018						2017
	Yield % (1)			Amount			Yield % (1)			Amount
	(Dollars in millions)
Fixed maturity securities (2), (3)	4.19		%	$	2,839		4.34		%	$	2,825
Mortgage loans (3)	4.53		%	792			4.47		%	736
Real estate and real estate joint ventures	3.39		%	83			3.20		%	73
Policy loans	5.12		%	124			5.33		%	127
Equity securities	3.79		%	16			4.90		%	31
Other limited partnership interests	15.10		%	219			18.58		%	240
Cash and short-term investments	1.87		%	46			1.42		%	33
Other invested assets				228						214
Investment income	4.50		%	4,347			4.65		%	4,279
Investment fees and expenses	(0.13	)	%	(128		)	(0.15	)	%	(134		)
Net investment income including divested businesses (4)	4.37		%	4,219			4.50		%	4,145
Less: net investment income from divested businesses (4)				—						(27		)
Net investment income, as reported on an adjusted basis (4)				$	4,219					$	4,172

__________________

(1) Yields are calculated as investment income as a percent of average quarterly asset carrying values. Investment income excludes recognized gains and losses. Asset carrying values exclude unrealized gains (losses), collateral received in connection with our securities lending program, annuities funding structured settlement claims, freestanding derivative assets, collateral received from derivative counterparties, the effects of consolidating certain variable interest entities (“VIEs”) under GAAP that are treated as consolidated securitization entities (“CSEs”), Unit-linked investments and FVO Brighthouse Common Stock. A yield is not presented for other invested assets, as it is not considered a meaningful measure of performance for this asset class.

(2) Investment income from fixed maturity securities includes amounts from FVO general account securities of $6 million and $29 million for the three months endedMarch 31, 2018 and 2017, respectively.

(3) Investment income from fixed maturity securities and mortgage loans includes prepayment fees.

(4) See Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements for further information, as well as the presentation of net investment income, as reported on an adjusted basis, compared to the most directly comparable GAAP financial measure. See “— Non-GAAP and Other Financial Disclosures” for discussion of divested businesses.

See “— Results of Operations — Consolidated Results — Three Months Ended March 31, 2018 Compared with the Three Months Ended March 31, 2017” for an analysis of the period over period changes in net investment income.

120

Fixed Maturity Securities AFS and Equity Securities

The following table presents fixed maturity securities AFS and equity securities by type (public or private) and information about perpetual and redeemable securities held at:

	March 31, 2018					December 31, 2017
	Estimated Fair Value			% of Total		Estimated Fair Value			% of Total
	(Dollars in millions)
Fixed maturity securities AFS
Publicly-traded	$	257,582		84.5	%	$	262,078		84.8	%
Privately-placed	47,129			15.5		46,853			15.2
Total fixed maturity securities AFS	$	304,711		100.0	%	$	308,931		100.0	%
Percentage of cash and invested assets	66.9		%			67.6		%
Equity securities
Publicly-traded	$	1,316		85.2	%	$	1,490		59.3	%
Privately-held	228			14.8		1,023			40.7
Total equity securities	$	1,544		100.0	%	$	2,513		100.0	%
Percentage of cash and invested assets	0.3		%			0.6		%
Perpetual securities included within fixed maturity AFS and equity securities	$	442				$	440
Redeemable preferred stock with a stated maturity included within fixed maturity securities AFS	$	573				$	884

Perpetual securities are included within fixed maturity securities available-for-sale (“AFS”) and equity securities. Upon acquisition, we classify perpetual securities that have attributes of both debt and equity as fixed maturity securities AFS if the securities have an interest rate step-up feature which, when combined with other qualitative factors, indicates that the securities have more debt-like characteristics; while those with more equity-like characteristics are classified as equity securities. Many of such securities, commonly referred to as “perpetual hybrid securities,” have been issued by non-U.S. financial institutions that are accorded the highest two capital treatment categories by their respective regulatory bodies (i.e. core capital, or “Tier 1 capital” and perpetual deferrable securities, or “Upper Tier 2 capital”).

Redeemable preferred stock with a stated maturity is included within fixed maturity securities AFS. These securities, which are commonly referred to as “capital securities,” primarily have cumulative interest deferral features and are primarily issued by U.S. financial institutions.

In connection with our investment management business, we manage a broad array of securities, limited partnership interests and liquid investments on behalf of institutional clients, which are unaffiliated investors. Assets under management, by sector, at estimated fair value, were as follows: investment grade corporate fixed maturity securities, including privately-placed, infrastructure and state and political subdivision, $66.9 billion and $66.6 billion at March 31, 2018 and December 31, 2017, respectively; structured finance fixed maturity securities, including residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”), $16.4 billion and $15.8 billion at March 31, 2018 and December 31, 2017, respectively; U.S. government and agency fixed maturity securities, $18.9 billion and $21.7 billion at March 31, 2018 and December 31, 2017, respectively; foreign government fixed maturity securities, $2.2 billion and $2.1 billion at March 31, 2018 and December 31, 2017, respectively; below investment grade corporate fixed maturity securities, including emerging market and high yield, $7.8 billion and $7.7 billion at March 31, 2018 and December 31, 2017, respectively; equity securities, $0.3 billion at both March 31, 2018 and December 31, 2017; other limited partnership interests, $1.7 billion at both March 31, 2018 and December 31, 2017; and cash equivalents and short-term investments, $2.6 billion and $3.0 billion at March 31, 2018 and December 31, 2017, respectively.

121

Also in connection with our investment management business, we manage index investment portfolios that track the return of industry fixed income and equity market indices such as the Bloomberg Barclay’s U.S. Aggregate Bond Index and Standard & Poor’s (“S&P”) 500^® Index. These assets had an estimated fair value of $28.0 billion and $28.5 billion at March 31, 2018 and December 31, 2017 respectively. Index investment portfolios included within separate account assets in our interim condensed consolidated financial statements were $14.8 billion and $14.9 billion at March 31, 2018 and December 31, 2017, respectively. Index investment portfolios managed on behalf of our institutional clients were $13.2 billion and $13.6 billion at March 31, 2018 and December 31, 2017, respectively and are not included in our interim condensed consolidated financial statements. Index investment portfolios managed on behalf of our institutional clients, by sector, at estimated fair value, were as follows: investment grade corporate fixed maturity securities and state and political subdivision securities, $775 million and $794 million at March 31, 2018 and December 31, 2017, respectively; structured securities, $823 million and $828 million at March 31, 2018 and December 31, 2017, respectively; U.S. government and agency fixed maturity securities, $1.1 billion at both March 31, 2018 and December 31, 2017; equity securities, $10.0 billion and $10.4 billion at March 31, 2018 and December 31, 2017, respectively; and cash equivalents and short-term investments, $474 million and $517 million at March 31, 2018 and December 31, 2017, respectively.

See also “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Investments — Fixed Maturity and Equity Securities AFS — Valuation of Securities” included in the 2017 Annual Report for further information on the processes used to value securities and the related controls.

Fair Value of Fixed Maturity Securities AFS and Equity Securities

Fixed maturity securities AFS and equity securities measured at estimated fair value on a recurring basis and their corresponding fair value pricing sources are as follows:

	March 31, 2018
	Fixed Maturity Securities				Equity Securities
	(Dollars in millions)
Level 1
Quoted prices in active markets for identical assets	$	22,873	7.5	%	$	909	58.9	%
Level 2
Independent pricing sources	263,548		86.5		118		7.6
Internal matrix pricing or discounted cash flow techniques	2,719		0.9		95		6.2
Significant other observable inputs	266,267		87.4		213		13.8
Level 3
Independent pricing sources	11,347		3.7		297		19.2
Internal matrix pricing or discounted cash flow techniques	3,953		1.3		123		8.0
Independent broker quotations	271		0.1		2		0.1
Significant unobservable inputs	15,571		5.1		422		27.3
Total estimated fair value	$	304,711	100.0	%	$	1,544	100.0	%

See Note 8 of the Notes to the Interim Condensed Consolidated Financial Statements for the fixed maturity securities AFS and equity securities fair value hierarchy.

122

The composition of fair value pricing sources for and significant changes in Level 3 securities at March 31, 2018 are as follows:

• The majority of the Level 3 fixed maturity securities AFS and equity securities were concentrated in three sectors: foreign and U.S. corporate securities and RMBS.

• Level 3 fixed maturity securities are priced principally through market standard valuation methodologies, independent pricing services and, to a much lesser extent, independent non-binding broker quotations using inputs that are not market observable or cannot be derived principally from or corroborated by observable market data. Level 3 fixed maturity securities consist of less liquid securities with very limited trading activity or where less price transparency exists around the inputs to the valuation methodologies. Level 3 fixed maturity securities include: sub-prime RMBS; certain below investment grade private securities; less liquid investment grade corporate securities (included in United States and foreign corporate securities) and less liquid ABS and foreign government securities.

• During the three months endedMarch 31, 2018, Level 3 fixed maturity securities decreased by $698 million, or 4%. The decrease was driven by transfers out of Level 3 in excess of transfers into Level 3, partially offset by purchases in excess of sales.

See Note 8 of the Notes to the Interim Condensed Consolidated Financial Statements for a rollforward of the fair value measurements for fixed maturity securities AFS and equity securities measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs; transfers into and/or out of Level 3; and further information about the valuation approaches and inputs by level by major classes of invested assets that affect the amounts reported above. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates — Estimated Fair Value of Investments” included in the 2017 Annual Report for further information on the estimates and assumptions that affect the amounts reported above.

Fixed Maturity Securities AFS

See Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements for information about fixed maturity securities AFS by sector, contractual maturities and continuous gross unrealized losses.

Fixed Maturity Securities Credit Quality — Ratings

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Investments — Fixed Maturity and Equity Securities AFS — Fixed Maturity Securities Credit Quality — Ratings” included in the 2017 Annual Report for a discussion of the credit quality ratings assigned by Nationally Recognized Statistical Rating Organizations (“NRSRO”), credit quality designations assigned by and methodologies used by the Securities Valuation Office of the NAIC for fixed maturity securities and the revised methodologies adopted by the NAIC for certain Structured Securities.

The following table presents total fixed maturity securities by NRSRO rating and the applicable NAIC designation from the NAIC published comparison of NRSRO ratings to NAIC designations, except for certain Structured Securities, which are presented using the revised NAIC methodologies, as well as the percentage, based on estimated fair value that each NAIC designation is comprised of at:

		March 31, 2018									December 31, 2017
NAIC Designation	NRSRO Rating	Amortized Cost		Unrealized Gain (Loss)			Estimated Fair Value		% of Total		Amortized Cost		Unrealized Gain (Loss)			Estimated Fair Value		% of Total
		(Dollars in millions)
1	Aaa/Aa/A	$	200,912	$	13,534		$	214,446	70.4	%	$	201,806	$	17,024		$	218,830	70.8	%
2	Baa	68,896		3,635			72,531		23.8		67,270		5,126			72,396		23.4
	Subtotal investment grade	269,808		17,169			286,977		94.2		269,076		22,150			291,226		94.2
3	Ba	11,165		386			11,551		3.8		11,155		556			11,711		3.8
4	B	5,263		69			5,332		1.7		5,004		151			5,155		1.7
5	Caa and lower	838		(11		)	827		0.3		824		9			833		0.3
6	In or near default	25		(1		)	24		—		10		(4		)	6		—
	Subtotal below investment  grade	17,291		443			17,734		5.8		16,993		712			17,705		5.8
	Total fixed maturity securities	$	287,099	$	17,612		$	304,711	100.0	%	$	286,069	$	22,862		$	308,931	100.0	%

123

The following tables present total fixed maturity securities, based on estimated fair value, by sector classification and by NRSRO rating and the applicable NAIC designations from the NAIC published comparison of NRSRO ratings to NAIC designations, except for certain Structured Securities, which are presented using the revised NAIC methodologies:

	Fixed Maturity Securities — by Sector & Credit Quality Rating
NAIC Designation:	1			2			3			4			5			6			Total Estimated Fair Value
NRSRO Rating:	Aaa/Aa/A			Baa			Ba			B			Caa and Lower			In or Near Default
	(Dollars in millions)
March 31, 2018
U.S. corporate	$	36,439		$	35,010		$	6,213		$	3,527		$	645		$	—		$	81,834
Foreign government	55,968			5,241			2,318			930			52			1			64,510
Foreign corporate	21,661			30,333			2,573			835			61			—			55,463
U.S. government and agency	43,410			417			—			—			—			—			43,827
RMBS	26,848			303			179			39			19			23			27,411
State and political subdivision	11,644			475			73			—			—			—			12,192
ABS	10,936			632			192			1			3			—			11,764
CMBS	7,540			120			3			—			47			—			7,710
Total fixed maturity securities	$	214,446		$	72,531		$	11,551		$	5,332		$	827		$	24		$	304,711
Percentage of total	70.4		%	23.8		%	3.8		%	1.7		%	0.3		%	—		%	100.0		%
December 31, 2017
U.S. corporate	$	37,305		$	35,096		$	6,153		$	3,387		$	717		$	3		$	82,661
Foreign government	53,027			5,135			2,376			947			49			—			61,534
Foreign corporate	21,925			30,214			2,616			759			55			—			55,569
U.S. government and agency	47,067			327			—			—			—			—			47,394
RMBS	28,209			297			224			61			9			—			28,800
State and political subdivision	11,921			454			78			—			—			2			12,455
ABS	11,311			760			215			1			3			1			12,291
CMBS	8,065			113			49			—			—			—			8,227
Total fixed maturity securities	$	218,830		$	72,396		$	11,711		$	5,155		$	833		$	6		$	308,931
Percentage of total	70.8		%	23.4		%	3.8		%	1.7		%	0.3		%	—		%	100.0		%

U.S. and Foreign Corporate Fixed Maturity Securities

We maintain a diversified portfolio of corporate fixed maturity securities across industries and issuers. This portfolio does not have any exposure to any single issuer in excess of 1% of total investments and the top 10 holdings comprised 1% of total investments at both March 31, 2018 and December 31, 2017. The tables below present our U.S. and foreign corporate securities holdings by industry at:

	March 31, 2018				December 31, 2017
	Estimated Fair Value		% of Total		Estimated Fair Value		% of Total
	(Dollars in millions)
Industrial	$	41,975	30.6	%	$	42,273	30.6	%
Consumer	31,020		22.6		31,419		22.7
Finance	29,932		21.8		29,884		21.6
Utility	21,861		15.9		21,773		15.8
Communications	10,805		7.9		11,072		8.0
Other	1,704		1.2		1,809		1.3
Total	$	137,297	100.0	%	$	138,230	100.0	%

124

Structured Securities 

We held $46.9 billion and $49.3 billion of Structured Securities, at estimated fair value, at March 31, 2018 and December 31, 2017, respectively, as presented in the RMBS, ABS and CMBS sections below.

RMBS

The table below presents our RMBS holdings at:

	March 31, 2018							December 31, 2017
	Estimated Fair Value		% of Total		Net Unrealized Gains (Losses)			Estimated Fair Value		% of Total		Net Unrealized Gains (Losses)
	(Dollars in millions)
By security type:
Collateralized mortgage obligations	$	14,832	54.1	%	$	748		$	15,388	53.4	%	$	913
Pass-through securities	12,579		45.9		(195		)	13,412		46.6		41
Total RMBS	$	27,411	100.0	%	$	553		$	28,800	100.0	%	$	954
By risk profile:
Agency	$	18,915	69.0	%	$	(119	)	$	20,010	69.5	%	$	274
Prime	1,143		4.2		66			1,209		4.2		73
Alt-A	4,060		14.8		367			4,182		14.5		372
Sub-prime	3,293		12.0		239			3,399		11.8		235
Total RMBS	$	27,411	100.0	%	$	553		$	28,800	100.0	%	$	954
Ratings profile:
Rated Aaa/AAA	$	19,373	70.7	%				$	20,465	71.1	%
Designated NAIC 1	$	26,848	97.9	%				$	28,209	97.9	%

See also “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Investments — Fixed Maturity and Equity Securities AFS — Structured Securities — RMBS” included in the 2017 Annual Report for further information about collateralized mortgage obligations and pass-through mortgage-backed securities, as well as agency, prime, alternative residential mortgage loan (“Alt-A”) and sub-prime RMBS.

Historically, we have managed our exposure to sub-prime RMBS holdings by focusing primarily on senior tranche securities, stress testing the portfolio with severe loss assumptions and closely monitoring the performance of the portfolio. Our sub-prime RMBS portfolio consists predominantly of securities that were purchased after 2012 at significant discounts to par value and discounts to the expected principal recovery value of these securities. The vast majority of these securities are investment grade under the NAIC designations (e.g., NAIC 1 and NAIC 2). The estimated fair value of our sub-prime RMBS holdings purchased since 2012 was $3.0 billion and $3.1 billion at March 31, 2018 and December 31, 2017, respectively, with unrealized gains (losses) of $211 million and $200 million at March 31, 2018 and December 31, 2017, respectively.

125

ABS

Our ABS holdings are diversified both by collateral type and by issuer. The following table presents our ABS holdings at:

	March 31, 2018									December 31, 2017
	Estimated Fair Value			% of Total			Net Unrealized Gains (Losses)			Estimated Fair Value		% of Total		Net Unrealized Gains (Losses)
	(Dollars in millions)
By collateral type:
Collateralized obligations	$	6,255	—	53.2	%	—	$	30		$	5,703	46.4	%	$	45
Credit card loans	784		—	6.7		—	(1		)	1,686		13.7		1
Student loans	1,325		—	11.3		—	14			1,266		10.3		(1		)
Automobile loans	1,000		—	8.5		—	(3		)	1,193		9.7		—
Foreign residential loans	953		—	8.1		—	20			965		7.9		20
Consumer loans	558			4.7			4			605		4.9		6
Other loans	889		—	7.5		—	5			873		7.1		7
Total	$	11,764		100.0	%		$	69		$	12,291	100.0	%	$	78
Ratings profile:
Rated Aaa/AAA	$	6,907		58.7	%					$	7,108	57.8	%
Designated NAIC 1	$	10,936		93.0	%					$	11,311	92.0	%

126

CMBS

Our CMBS holdings are diversified by vintage year. The following tables present our CMBS holdings by NRSRO rating and by vintage year at:

	March 31, 2018
	Aaa					Aa					A					Baa					Below Investment Grade					Total
	Amortized Cost		Estimated Fair Value			Amortized Cost		Estimated Fair Value			Amortized Cost		Estimated Fair Value			Amortized Cost		Estimated Fair Value			Amortized Cost		Estimated Fair Value			Amortized Cost		Estimated Fair Value
	(Dollars in millions)
2003 - 2010	$	113	$	119		$	17	$	18		$	8	$	8		$	15	$	15		$	—	$	—		$	153	$	160
2011	170		180			34		35			—		—			—		—			—		—			204		215
2012	257		263			243		244			231		235			6		7			—		—			737		749
2013	769		787			708		718			289		288			—		—			60		47			1,826		1,840
2014	486		486			506		506			129		129			—		—			—		—			1,121		1,121
2015	620		613			184		188			53		54			—		—			—		—			857		855
2016	299		292			67		64			41		41			69		70			—		—			476		467
2017	830		821			676		672			245		242			44		44			—		—			1,795		1,779
2018	296		296			136		137			91		91			—		—			—		—			523		524
Total	$	3,840	$	3,857		$	2,571	$	2,582		$	1,087	$	1,088		$	134	$	136		$	60	$	47		$	7,692	$	7,710
Ratings Distribution			50.0		%			33.5		%			14.1		%			1.8		%			0.6		%			100.0		%
	December 31, 2017
	Aaa					Aa					A					Baa					Below Investment Grade					Total
	Amortized Cost		Estimated Fair Value			Amortized Cost		Estimated Fair Value			Amortized Cost		Estimated Fair Value			Amortized Cost		Estimated Fair Value			Amortized Cost		Estimated Fair Value			Amortized Cost		Estimated Fair Value
	(Dollars in millions)
2003 - 2010	$	116	$	124		$	4	$	5		$	22	$	23		$	15	$	15		$	—	$	—		$	157	$	167
2011	170		184			34		35			—		—			—		—			—		—			204		219
2012	289		302			257		263			230		237			7		7			—		—			783		809
2013	787		835			717		748			285		292			60		45			—		—			1,849		1,920
2014	537		552			513		522			129		130			—		—			—		—			1,179		1,204
2015	1,122		1,140			191		196			117		120			—		—			—		—			1,430		1,456
2016	401		404			69		68			40		40			65		66								575		578
2017	898		899			685		687			246		246			41		42			—		—			1,870		1,874
Total	$	4,320	$	4,440		$	2,470	$	2,524		$	1,069	$	1,088		$	188	$	175		$	—	$	—		$	8,047	$	8,227
Ratings Distribution			54.0		%			30.7		%			13.2		%			2.1		%			—		%			100.0		%

The tables above reflect NRSRO ratings including Moody’s Investors Service, S&P, Fitch Ratings and Morningstar, Inc. CMBS designated NAIC 1 were 98% of total CMBS at both March 31, 2018 and December 31, 2017.

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

See Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements for information about the evaluation of fixed maturity securities AFS for OTTI and evaluation of temporarily impaired AFS securities.

OTTI Losses on Fixed Maturity Securities AFS Recognized in Earnings

See Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements for information about OTTI losses and gross gains and gross losses on fixed maturity securities AFS sold.

Overview of Fixed Maturity Security AFS OTTI Losses Recognized in Earnings

Impairments of fixed maturity securities AFS were less than $1 million for both the three months endedMarch 31, 2018 and 2017.

127

Future Impairments

Future OTTI on fixed maturity securities AFS will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), and changes in credit ratings, collateral valuation, interest rates and credit spreads. If economic fundamentals deteriorate or if there are adverse changes in the above factors, OTTI may be incurred in upcoming periods.

Contractholder-Directed Equity Securities and Fair Value Option Securities

Unit-linked and FVO Securities were $16.4 billion and $16.7 billion at estimated fair value, or 3.6% and 3.7% of cash and invested assets, at March 31, 2018 and December 31, 2017, respectively. Unit-linked and FVO Securities are primarily comprised of Unit-linked investments. See Notes 6 and 8 of the Notes to the Interim Condensed Consolidated Financial Statements for a description of our Unit-linked and FVO Securities portfolio, the Unit-linked and FVO Securities fair value hierarchy and a rollforward of the fair value measurements for Unit-linked and FVO Securities measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs.

Securities Lending

We participate in a securities lending program whereby securities are loaned to third parties, primarily brokerage firms and commercial banks. We obtain collateral, usually cash, in an amount generally equal to 102% of the estimated fair value of the securities loaned, which is obtained at the inception of a loan and maintained at a level greater than or equal to 100% for the duration of the loan. We monitor the estimated fair value of the securities loaned on a daily basis with additional collateral obtained as necessary throughout the duration of the loan. Securities loaned under such transactions may be sold or re-pledged by the transferee. We are liable to return to our counterparties the cash collateral under our control. Security collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the consolidated financial statements. These transactions are treated as financing arrangements and the associated cash collateral liability is recorded at the amount of the cash received.

See “— Liquidity and Capital Resources — The Company — Liquidity and Capital Uses — Securities Lending” and Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements for information regarding our securities lending program.

Repurchase Agreements

The Company participates in short-term repurchase agreements with unaffiliated financial institutions. Under these agreements, the Company lends fixed maturity securities and receives cash as collateral in an amount generally equal to 98% of the estimated fair value of the securities loaned at the inception of the transaction. The associated liability is recorded at the amount of cash received. The Company monitors the estimated fair value of the collateral and the securities loaned throughout the duration of the transaction and additional collateral is obtained as necessary. Securities loaned under such transactions may be sold or re-pledged by the transferee.

See Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements for additional information regarding our repurchase agreements.

FHLB of Boston Advance Agreements

A subsidiary of the Company participates in short-term advance agreements with the Federal Home Loan Bank (“FHLB”) of Boston. Under these agreements, the Company pledges fixed maturity securities and receives cash. The associated liability is recorded at the amount of cash received. The FHLB of Boston has minimum collateral requirements which vary depending on the type of collateral pledged. Securities pledged under such transactions may not be sold or re-pledged by the transferee.

See Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements for information regarding our FHLB of Boston advance agreement transactions.

128

Mortgage Loans

Our mortgage loans are principally collateralized by commercial, agricultural and residential properties. Mortgage loans and the related valuation allowances are summarized as follows at:

	March 31, 2018									December 31, 2017
		Recorded Investment		% of Total		Valuation Allowance		% of Recorded Investment		Recorded Investment		% of Total		Valuation Allowance		% of Recorded Investment
		(Dollars in millions)
Commercial		$	46,690	65.8	%	$	228	0.5	%	$	44,375	64.8	%	$	214	0.5	%
Agricultural		13,098		18.5		41		0.3	%	13,014		19.0		41		0.3	%
Residential		11,156		15.7		58		0.5	%	11,136		16.2		59		0.5	%
Total		$	70,944	100.0	%	$	327	0.5	%	$	68,525	100.0	%	$	314	0.5	%

The information presented in the tables herein exclude mortgage loans where we elected the FVO. Such amounts are presented in Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements. The carrying value of all mortgage loans, net of valuation allowance was 15.6% and 15.0% of cash and invested assets at March 31, 2018 and December 31, 2017, respectively.

We diversify our mortgage loan portfolio by both geographic region and property type to reduce the risk of concentration. Of our commercial and agricultural mortgage loan portfolios, 82% are collateralized by properties located in the United States, with the remaining 18% collateralized by properties located outside the United States, which includes 7% of properties located in the U.K., at March 31, 2018. The carrying values of our commercial and agricultural mortgage loans located in California, New York and Texas were19%, 11% and 7%, respectively, of total commercial and agricultural mortgage loans at March 31, 2018. Additionally, we manage risk when originating commercial and agricultural mortgage loans by generally lending up to 75% of the estimated fair value of the underlying real estate collateral.

We manage our residential mortgage loan portfolio in a similar manner to reduce risk of concentration, with 90% collateralized by properties located in the United States and the remaining 10% collateralized by properties located outside the United States at March 31, 2018. The carrying values of our residential mortgage loans located in California, Florida, and New York were 31%, 9%, and 6%, respectively, of total residential mortgage loans at March 31, 2018.

In connection with our investment management business, we manage commercial, agricultural and residential mortgage loans on behalf of institutional clients, which are unaffiliated investors. These commercial, agricultural and residential mortgage loans had an estimated fair value of $15.3 billion and $14.7 billion at March 31, 2018 and December 31, 2017, respectively. As these assets are managed on behalf of, and owned by, our institutional clients, they are not included in our interim condensed consolidated financial statements.

129

Commercial Mortgage Loans by Geographic Region and Property Type. Commercial mortgage loans are the largest component of the mortgage loan invested asset class. The tables below present the diversification across geographic regions and property types of commercial mortgage loans at:

	March 31, 2018				December 31, 2017
	Amount		% of Total		Amount		% of Total
	(Dollars in millions)
Region
Pacific	$	10,583	22.7	%	$	9,875	22.3	%
International	9,500		20.3		9,101		20.5
Middle Atlantic	7,467		16.0		7,231		16.3
South Atlantic	5,552		11.9		5,311		12.0
West South Central	3,664		7.8		3,819		8.6
East North Central	2,687		5.7		2,683		6.0
Mountain	1,355		2.9		1,188		2.7
New England	1,129		2.4		901		2.0
East South Central	963		2.1		840		1.9
West North Central	589		1.3		477		1.1
Multi-Region and Other	3,201		6.9		2,949		6.6
Total recorded investment	46,690		100.0	%	44,375		100.0	%
Less: valuation allowances	228				214
Carrying value, net of valuation allowances	$	46,462			$	44,161
Property Type
Office	$	23,474	50.3	%	$	22,602	50.9	%
Retail	8,247		17.7		8,032		18.1
Apartment	6,600		14.1		6,113		13.8
Hotel	3,797		8.1		3,620		8.2
Industrial	3,699		7.9		3,125		7.0
Other	873		1.9		883		2.0
Total recorded investment	46,690		100.0	%	44,375		100.0	%
Less: valuation allowances	228				214
Carrying value, net of valuation allowances	$	46,462			$	44,161

Mortgage Loan Credit Quality - Monitoring Process.We monitor our mortgage loan investments on an ongoing basis, including a review of loans that are current, past due, restructured and under foreclosure. See Note 6of the Notes to the Interim Condensed Consolidated Financial Statements for tables that present mortgage loans by credit quality indicator, past due and nonaccrual mortgage loans, as well as impaired mortgage loans. See “— Real Estate and Real Estate Joint Ventures” for real estate acquired through foreclosure.

We review our commercial mortgage loans on an ongoing basis. These reviews may include an analysis of the property financial statements and rent roll, lease rollover analysis, property inspections, market analysis, estimated valuations of the underlying collateral, loan-to-value ratios, debt service coverage ratios and tenant creditworthiness. The monitoring process focuses on higher risk loans, which include those that are classified as restructured, delinquent or in foreclosure, as well as loans with higher loan-to-value ratios and lower debt service coverage ratios. The monitoring process for agricultural mortgage loans is generally similar, with a focus on higher risk loans, such as loans with higher loan-to-value ratios, including reviews on a geographic and sector basis. We review our residential mortgage loans on an ongoing basis. See Note 8 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for information on our evaluation of residential mortgage loans and related valuation allowance methodology.

130

Loan-to-value ratios and debt service coverage ratios are common measures in the assessment of the quality of commercial mortgage loans. Loan-to-value ratios are a common measure in the assessment of the quality of agricultural mortgage loans. Loan-to-value ratios compare the amount of the loan to the estimated fair value of the underlying collateral. A loan-to-value ratio greater than 100% indicates that the loan amount is greater than the collateral value. A loan-to-value ratio of less than 100% indicates an excess of collateral value over the loan amount. Generally, the higher the loan-to-value ratio, the higher the risk of experiencing a credit loss. The debt service coverage ratio compares a property’s net operating income to amounts needed to service the principal and interest due under the loan. Generally, the lower the debt service coverage ratio, the higher the risk of experiencing a credit loss. For our commercial mortgage loans, our average loan-to-value ratio was 54% at both March 31, 2018 and December 31, 2017 and our average debt service coverage ratio was 2.7x for both March 31, 2018 and December 31, 2017. The debt service coverage ratio, as well as the values utilized in calculating the ratio, is updated annually, on a rolling basis, with a portion of the portfolio updated each quarter. In addition, the loan-to-value ratio is routinely updated for all but the lowest risk loans as part of our ongoing review of our commercial mortgage loan portfolio. For our agricultural mortgage loans, our average loan-to-value ratio was 45% and 44% at March 31, 2018 and December 31, 2017, respectively. The values utilized in calculating the agricultural mortgage loan loan-to-value ratio are developed in connection with the ongoing review of the agricultural loan portfolio and are routinely updated.

Mortgage Loan Valuation Allowances. Our valuation allowances are established both on a loan specific basis for those loans considered impaired where a property specific or market specific risk has been identified that could likely result in a future loss, as well as for pools of loans with similar risk characteristics where a property specific or market specific risk has not been identified, but for which we expect to incur a loss. Accordingly, a valuation allowance is provided to absorb these estimated probable credit losses.

The determination of the amount of valuation allowances is based upon our periodic evaluation and assessment of known and inherent risks associated with our loan portfolios. Such evaluations and assessments are based upon several factors, including our experience for loan losses, defaults and loss severity, and loss expectations for loans with similar risk characteristics. These evaluations and assessments are revised as conditions change and new information becomes available, which can cause the valuation allowances to increase or decrease over time as such evaluations are revised. Negative credit migration, including an actual or expected increase in the level of problem loans, will result in an increase in the valuation allowance. Positive credit migration, including an actual or expected decrease in the level of problem loans, will result in a decrease in the valuation allowance.

See Notes 6 and 8 of the Notes to the Interim Condensed Consolidated Financial Statements for information about how valuation allowances are established and monitored, activity in and balances of the valuation allowance, and the estimated fair value of impaired mortgage loans and related impairments included within net investment gains (losses) as of and for the three months endedMarch 31, 2018 and 2017.

Real Estate and Real Estate Joint Ventures

Real estate and real estate joint ventures is comprised of wholly-owned real estate and joint ventures with interests in single property income-producing real estate, and to a lesser extent joint ventures with interests in multi-property projects with varying strategies ranging from the development of properties to the operation of income-producing properties, as well as a runoff portfolio of real estate private equity funds. We diversify our real estate investments by both geographic region and property type to reduce risk of concentration. The carrying values of real estate and real estate joint ventures were $9.9 billion and $9.6 billion, or 2.2% and 2.1% of cash and invested assets, including properties acquired through foreclosure of $47 million and $48 million at March 31, 2018 and December 31, 2017, respectively. The estimated fair value of our real estate investments was $15.3 billion and $14.9 billion at March 31, 2018 and December 31, 2017, respectively. The total gross market value of such real estate investments was $19.4 billion and $19.1 billion at March 31, 2018 and December 31, 2017, respectively. Gross market value is the total fair value of these investments regardless of encumbering debt.

In connection with our investment management business, we manage commercial real estate investments on behalf of institutional clients, which are unaffiliated investors. These commercial real estate investments under management for unaffiliated investors had an estimated fair value of $5.4 billion and $5.2 billion at March 31, 2018 and December 31, 2017, respectively. The total gross market value of commercial real estate investments under management for unaffiliated investors was $7.4 billion and $6.7 billion at March 31, 2018 and December 31, 2017, respectively. As these assets are managed on behalf of, and owned by, our institutional clients, they are not included in our consolidated financial statements.

131

Other Limited Partnership Interests

Other limited partnership interests are comprised of private equity funds and hedge funds. The carrying value of other limited partnership interests was $5.9 billion, or 1.3% of cash and invested assets, and $5.7 billion, or 1.3% of cash and invested assets, at March 31, 2018 and December 31, 2017, respectively, which included $637 million and $643 million of hedge funds, at March 31, 2018 and December 31, 2017, respectively. Cash distributions on these investments are generated from investment gains, operating income from the underlying investments of the funds and liquidation of the underlying investments of the funds. We estimate that the underlying investments of the funds will be liquidated over the next two to 10 years.

Other Invested Assets

The following table presents the carrying value of our other invested assets by type at:

	March 31, 2018					December 31, 2017
	Carrying Value			% of Total		Carrying Value			% of Total
	(Dollars in millions)
Freestanding derivatives with positive estimated fair values	$	7,924		45.3	%	$	8,551		49.5	%
Tax credit and renewable energy partnerships	3,195			18.3		3,167			18.3
Direct financing leases	1,375			7.9		1,323			7.7
Annuities funding structured settlement claims (1)	1,283			7.3		1,284			7.4
Leveraged leases, net of non-recourse debt	1,139			6.5		1,278			7.4
Federal Home Loan Bank common stock (2)	812			4.7		—			—
Operating joint ventures	612			3.5		539			3.1
Funds withheld	300			1.7		298			1.7
Other	846			4.8		823			4.8
Total	$	17,486		100.0	%	$	17,263		100.0	%
Percentage of cash and invested assets	3.8		%			3.8		%

__________________

(1) See Note 3 of the Notes to the Interim Condensed Consolidated Financial Statements.

(2) See Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements.

132

Derivatives

Derivative Risks

We are exposed to various risks relating to our ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. We use a variety of strategies to manage these risks, including the use of derivatives. See Note 7 of the Notes to the Interim Condensed Consolidated Financial Statements for: 

• A comprehensive description of the nature of our derivatives, including the strategies for which derivatives are used in managing various risks.

• Information about the gross notional amount, estimated fair value, and primary underlying risk exposure of our derivatives by type of hedge designation, excluding embedded derivatives held at March 31, 2018 and December 31, 2017.

• The statement of operations effects of derivatives in net investments in foreign operations, cash flow, fair value, or nonqualifying hedge relationships for the three months endedMarch 31, 2018 and 2017.

See “Quantitative and Qualitative Disclosures About Market Risk — Management of Market Risk Exposures — Hedging Activities” included in the 2017 Annual Report for more information about our use of derivatives by major hedge program.

Fair Value Hierarchy

See Note 8 of the Notes to the Interim Condensed Consolidated Financial Statements for derivatives measured at estimated fair value on a recurring basis and their corresponding fair value hierarchy.

The valuation of Level 3 derivatives involves the use of significant unobservable inputs and generally requires a higher degree of management judgment or estimation than the valuations of Level 1 and Level 2 derivatives. Although Level 3 inputs are unobservable, management believes they are consistent with what other market participants would use when pricing such instruments and are considered appropriate given the circumstances. The use of different inputs or methodologies could have a material effect on the estimated fair value of Level 3 derivatives and could materially affect net income.

Derivatives categorized as Level 3 at March 31, 2018 include: interest rate forwards with maturities which extend beyond the observable portion of the yield curve; interest rate total return swaps with unobservable repurchase rates; foreign currency swaps and forwards with certain unobservable inputs, including the unobservable portion of the yield curve; credit default swaps priced using unobservable credit spreads, or that are priced through independent broker quotations; equity variance swaps with unobservable volatility inputs; and equity index options with unobservable correlation inputs. At March 31, 2018, less than 1% of the estimated fair value of our derivatives was priced through independent broker quotations.

See Note 8 of the Notes to the Interim Condensed Consolidated Financial Statements for a rollforward of the fair value measurements for derivatives measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs.

The gain (loss) on Level 3 derivatives primarily relates to interest rate total return swaps with unobservable repurchase rates, certain purchased equity index options that are valued using models dependent on an unobservable market correlation input, equity variance swaps that are valued using observable equity volatility data plus an unobservable equity variance spread and foreign currency swaps and forwards that are valued using an unobservable portion of the swap yield curves. Other significant inputs, which are observable, include equity index levels, equity volatility and the swap yield curves. We validate the reasonableness of these inputs by valuing the positions using internal models and comparing the results to broker quotations.

133

The gain (loss) on Level 3 derivatives, percentage of gain (loss) attributable to observable and unobservable inputs, and the primary drivers of observable gain (loss) are summarized as follows:

	Three Months Ended March 31, 2018
Gain (loss) recognized in net income (loss)	$11 million
Percentage of gain (loss) attributable to observable inputs	13%
Primary drivers of observable gain (loss)	Increases in certain equity volatility levels and decreases in certain equity index levels on equity derivatives; partially offset by increase in interest rate on interest rate total return swaps.
Percentage of gain (loss) attributable to unobservable inputs	87%

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates — Derivatives” included in the 2017 Annual Report for further information on the estimates and assumptions that affect derivatives.

Credit Risk

See Note 7 of the Notes to the Interim Condensed Consolidated Financial Statements for information about how we manage credit risk related to derivatives and for the estimated fair value of our net derivative assets and net derivative liabilities after the application of master netting agreements and collateral.

Our policy is not to offset the fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. This policy applies to the recognition of derivatives on the consolidated balance sheets, and does not affect our legal right of offset.

Credit Derivatives

The following table presents the gross notional amount and estimated fair value of credit default swaps at:

	March 31, 2018					December 31, 2017
Credit Default Swaps	Gross Notional Amount		Estimated Fair Value			Gross Notional Amount		Estimated Fair Value
	(In millions)
Purchased	$	1,888	$	(36	)	$	2,020	$	(36	)
Written	11,421		208			11,375		271
Total	$	13,309	$	172		$	13,395	$	235

The following table presents the gross gains, gross losses and net gains (losses) recognized in net derivative gains (losses) for credit default swaps as follows:

	Three Months Ended March 31,
	2018								2017
Credit Default Swaps	Gross Gains		Gross Losses			Net Gains (Losses)			Gross Gains		Gross Losses			Net Gains (Losses)
	(In millions)
Purchased (1)	$	1	$	(4	)	$	(3	)	$	8	$	(16	)	$	(8	)
Written (1)	1		(45		)	(44		)	37		(5		)	32
Total	$	2	$	(49	)	$	(47	)	$	45	$	(21	)	$	24

__________________

(1) Gains (losses) do not include earned income (expense) on credit default swaps.

134

The favorable change in net gains (losses) on purchased credit default swaps of $5 million for the three months ended March 31, 2018 compared to the three months ended March 31, 2017 was due to certain credit spreads on credit default swaps hedging certain bonds, narrowing less in the current period compared to the prior period. The unfavorable change in net gains (losses) on written credit default swaps of ($76) million for the three months ended March 31, 2018 compared to the three months ended March 31, 2017 was due to certain credit spreads on certain credit default swaps used as replications widening in the current period as compared to the prior period.

The maximum amount at risk related to our written credit default swaps is equal to the corresponding gross notional amount. In a replication transaction, we pair an asset on our balance sheet with a written credit default swap to synthetically replicate a corporate bond, a core asset holding of life insurance companies. Replications are entered into in accordance with the guidelines approved by state insurance regulators and the NAIC and are an important tool in managing the overall corporate credit risk within the Company. In order to match our long-dated insurance liabilities, we seek to buy long-dated corporate bonds. In some instances, these may not be readily available in the market, or they may be issued by corporations to which we already have significant corporate credit exposure. For example, by purchasing Treasury bonds (or other high-quality assets) and associating them with written credit default swaps on the desired corporate credit name, we can replicate the desired bond exposures and meet our ALM needs. In addition, given the shorter tenor of the credit default swaps (generally five-year tenors) versus a long dated corporate bond, we have more flexibility in managing our credit exposures.

Embedded Derivatives

See Note 8 of the Notes to the Interim Condensed Consolidated Financial Statements for information about embedded derivatives measured at estimated fair value on a recurring basis and their corresponding fair value hierarchy.

See Note 8 of the Notes to the Interim Condensed Consolidated Financial Statements for a rollforward of the fair value measurements for embedded derivatives measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs.

See Note 7 of the Notes to the Interim Condensed Consolidated Financial Statements for information about the nonperformance risk adjustment included in the valuation of guaranteed minimum benefits accounted for as embedded derivatives.

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates — Derivatives” included in the 2017 Annual Report for further information on the estimates and assumptions that affect embedded derivatives.

Off-Balance Sheet Arrangements

Credit and Committed Facilities

We maintain an unsecured revolving credit facility and certain committed facilities with various financial institutions. See “— Liquidity and Capital Resources — The Company — Liquidity and Capital Sources — Global Funding Sources — Credit and Committed Facilities” for further descriptions of such arrangements. For the classification of expenses on such revolving credit and committed facilities and the nature of the associated liability for letters of credit issued and drawdowns on these facilities, see Note 12 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report.

Collateral for Securities Lending, Third-Party Custodian Administered Repurchase Programs and Derivatives

We participate in a securities lending program in the normal course of business for the purpose of enhancing the total return on our investment portfolio. Periodically, we receive non-cash collateral for securities lending from counterparties, which cannot be sold or re-pledged, and which has not been recorded on our consolidated balance sheets. The amount of this collateral was $41 million and $19 million at estimated fair value at March 31, 2018 and December 31, 2017, respectively. See Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements and “— Investments — Securities Lending,” as well as “Summary of Significant Accounting Policies — Investments — Securities Lending Program” in Note 1 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for a discussion of our securities lending program, the classification of revenues and expenses, and the nature of the secured financing arrangement and associated liability.

We also participate in third-party custodian administered repurchase programs for the purpose of enhancing the total return on our investment portfolio. We loan certain of our fixed maturity securities to financial institutions and, in exchange, non-cash collateral is put on deposit by the financial institutions on our behalf with third-party custodians. The estimated fair value of securities loaned in connection with these transactions was $169 million and $182 million at March 31, 2018 and December 31, 2017, respectively. Non-cash collateral on deposit with third-party custodians on our behalf was $179 million and $194 million at March 31, 2018 and December 31, 2017, respectively, which cannot be sold or re-pledged, and which has not been recorded on our consolidated balance sheets.

135

We enter into derivatives to manage various risks relating to our ongoing business operations. We have non-cash collateral from counterparties for derivatives, which can be sold or re-pledged subject to certain constraints, and which has not been recorded on our consolidated balance sheets. The amount of this non-cash collateral was $1.1 billion for both March 31, 2018 and December 31, 2017. See “— Liquidity and Capital Resources — The Company — Liquidity and Capital Uses — Pledged Collateral” and Note 7 of the Notes to the Interim Condensed Consolidated Financial Statements for information regarding the earned income on and the gross notional amount, estimated fair value of assets and liabilities and primary underlying risk exposure of our derivatives.

Lease Commitments

As lessee, we have entered into various lease and sublease agreements for office space, information technology and other equipment. Our commitments under such lease agreements are included within the contractual obligations table. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — The Company — Contractual Obligations” and Note 20 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report.

Guarantees

See “Guarantees” in Note 14 of the Notes to the Interim Condensed Consolidated Financial Statements.

Other

We enter into the following additional commitments in the normal course of business for the purpose of enhancing the total return on our investment portfolio: mortgage loan commitments and commitments to fund partnerships, bank credit facilities, bridge loans and private corporate bond investments. See “Net Investment Income” and “Net Investment Gains (Losses)” in Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements for information on the investment income, investment expense, and gains and losses from such investments. See also “— Investments — Fixed Maturity Securities AFS” and “— Investments — Mortgage Loans” for information on our investments in fixed maturity securities and mortgage loans. See “— Investments — Real Estate and Real Estate Joint Ventures” and “— Investments — Other Limited Partnership Interests” for information on our partnership investments.

Other than the commitments disclosed in Note 14 of the Notes to the Interim Condensed Consolidated Financial Statements, there are no other material obligations or liabilities arising from the commitments to fund mortgage loans, partnerships, bank credit facilities, bridge loans, and private corporate bond investments.

Policyholder Liabilities

We establish, and carry as liabilities, actuarially determined amounts that are calculated to meet policy obligations or to provide for future annuity payments. Amounts for actuarial liabilities are computed and reported on the interim condensed consolidated financial statements in conformity with GAAP. For more details on Policyholder Liabilities, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates” included in the 2017 Annual Report.

Due to the nature of the underlying risks and the uncertainty associated with the determination of actuarial liabilities, we cannot precisely determine the amounts that will ultimately be paid with respect to these actuarial liabilities, and the ultimate amounts may vary from the estimated amounts, particularly when payments may not occur until well into the future.

We periodically review our estimates of actuarial liabilities for future benefits and compare them with our actual experience. We revise estimates, to the extent permitted or required under GAAP, if we determine that future expected experience differs from assumptions used in the development of actuarial liabilities. We charge or credit changes in our liabilities to expenses in the period the liabilities are established or re-estimated. If the liabilities originally established for future benefit payments prove inadequate, we must increase them. Such an increase could adversely affect our earnings and have a material adverse effect on our business, results of operations and financial condition.

We have experienced, and will likely in the future experience, catastrophe losses and possibly acts of terrorism, as well as turbulent financial markets that may have an adverse impact on our business, results of operations and financial condition. Due to their nature, we cannot predict the incidence, timing, severity or amount of losses from catastrophes and acts of terrorism, but we make broad use of catastrophic and non-catastrophic reinsurance to manage risk from these perils. We also use hedging, reinsurance and other risk management activities to mitigate financial market volatility.

136

Insurance regulators in many of the non-U.S. jurisdictions in which we operate require certain MetLife entities to prepare a sufficiency analysis of the reserves presented in the locally required regulatory financial statements, and to submit that analysis to the regulatory authorities.

See “— Industry Trends — Regulatory Developments” and “Business — Regulation — U.S. Regulation — Insurance Regulation — Policy and Contract Reserve Adequacy Analysis” and “Business — Regulation — International Regulation” included in the 2017 Annual Report for further information.

Future Policy Benefits

We establish liabilities for amounts payable under insurance policies. See Notes 1 and 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for additional information. See also “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends — Impact of a Sustained Low Interest Rate Environment — Low Interest Rate Scenario” included in the 2017 Annual Report and “— Variable Annuity Guarantees.” A discussion of future policy benefits by segment (as well as Corporate & Other) follows.

U.S.

Amounts payable under insurance policies for this segment are comprised of group insurance and annuities, as well as property & casualty policies. For group insurance, future policyholder benefits are comprised mainly of liabilities for disabled lives under disability waiver of premium policy provisions, liabilities for survivor income benefit insurance, active life policies and premium stabilization and other contingency liabilities held under life insurance contracts. For group annuity contracts, future policyholder benefits are primarily related to payout annuities, including pension risk transfers, structured settlement annuities and institutional income annuities. There is no interest rate crediting flexibility on these liabilities. As a result, a sustained low interest rate environment could negatively impact earnings; however, we mitigate our risks by applying various ALM strategies, including the use of various interest rate derivative positions. The components of future policy benefits related to our property & casualty policies are liabilities for unpaid claims, estimated based upon assumptions such as rates of claim frequencies, levels of severities, inflation, judicial trends, legislative changes or regulatory decisions. Assumptions are based upon our historical experience and analysis of historical development patterns of the relationship of loss adjustment expenses to losses for each line of business, and we consider the effects of current developments, anticipated trends and risk management programs, reduced for anticipated salvage and subrogation.

Asia

Future policy benefits for this segment are held primarily for traditional life, endowment, annuity and accident & health contracts. They are also held for total return pass-through provisions included in certain universal life and savings products. They include certain liabilities for variable annuity and variable life guarantees of minimum death benefits, and longevity guarantees. Factors impacting these liabilities include sustained periods of lower yields than rates established at policy issuance, lower than expected asset reinvestment rates, market volatility, actual lapses resulting in lower than expected income, and actual mortality or morbidity resulting in higher than expected benefit payments. We mitigate our risks by applying various ALM strategies.

Latin America

Future policy benefits for this segment are held primarily for immediate annuities in Chile, Argentina and Mexico and traditional life contracts mainly in Mexico, Brazil and Colombia. There are also liabilities held for total return pass-through provisions included in certain universal life and savings products in Mexico. Factors impacting these liabilities include sustained periods of lower yields than rates established at policy issuance, lower than expected asset reinvestment rates, and mortality and lapses different than expected. We mitigate our risks by applying various ALM strategies.

EMEA

Future policy benefits for this segment include unearned premium reserves for group life and credit insurance contracts. Future policy benefits are also held for traditional life, endowment and annuity contracts with significant mortality risk and accident & health contracts. Factors impacting these liabilities include lower than expected asset reinvestment rates, market volatility, actual lapses resulting in lower than expected income, and actual mortality or morbidity resulting in higher than expected benefit payments. We mitigate our risks by having premiums which are adjustable or cancellable in some cases, and by applying various ALM strategies.

137

MetLife Holdings

Future policy benefits for the life business are comprised mainly of liabilities for traditional life insurance contracts. In order to manage risk, we have often reinsured a portion of the mortality risk on life insurance policies. We routinely evaluate our reinsurance programs which may result in increases or decreases to existing coverage. We have entered into various interest rate derivative positions to mitigate the risk that investment of premiums received and reinvestment of maturing assets over the life of the policy will be at rates below those assumed in the original pricing of these contracts. For the annuities business, future policy benefits are comprised mainly of liabilities for life-contingent income annuities, and liabilities for the variable annuity guaranteed minimum benefits which are accounted for as insurance. Other future policyholder benefits are comprised mainly of liabilities for disabled lives under disability waiver of premium policy provisions, and active life policies. In addition, for our other products, future policyholder benefits related to the reinsurance of our former Japan joint venture are comprised of liabilities for the variable annuity guaranteed minimum benefits which are accounted for as insurance.

Corporate & Other

Future policy benefits primarily include liabilities for other reinsurance business. Additionally, future policy benefits include liabilities for the U.S direct business sold directly to consumers.

Policyholder Account Balances

Policyholder account balances are generally equal to the account value, which includes accrued interest credited, but excludes the impact of any applicable charge that may be incurred upon surrender. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends — Impact of a Sustained Low Interest Rate Environment — Low Interest Rate Scenario” included in the 2017 Annual Report and “— Variable Annuity Guarantees.” See also Notes 1 and 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for additional information. A discussion of policyholder account balances by segment follows.

U.S.

Policyholder account balances in this segment are comprised of funding agreements, retained asset accounts, universal life policies, the fixed account of variable life insurance policies and specialized life insurance products for benefit programs.

Group Benefits

Policyholder account balances in this business are held for retained asset accounts, universal life policies, the fixed account of variable life insurance policies and specialized life insurance products for benefit programs. Policyholder account balances are credited interest at a rate we determine, which is influenced by current market rates. A sustained low interest rate environment could negatively impact earnings as a result of the minimum credited rate guarantees present in most of these policyholder account balances. We have various interest rate derivative positions to partially mitigate the risks associated with such a scenario.

The table below presents the breakdown of account value subject to minimum guaranteed crediting rates for Group Benefits:

	March 31, 2018
Guaranteed Minimum Crediting Rate	Account Value (1)		Account Value at Guarantee (1)
	(In millions)
Greater than 0% but less than 2%	$	4,812	$	4,692
Equal to or greater than 2% but less than 4%	$	1,814	$	1,814
Equal to or greater than 4%	$	737	$	711

__________________

(1)These amounts are not adjusted for policy loans.

138

Retirement and Income Solutions

Policyholder account balances in this business are primarily comprised of funding agreements. Interest crediting rates vary by type of contract, and can be fixed or variable. Variable interest crediting rates are generally tied to an external index, most commonly (1-month or 3-month) LIBOR. We are exposed to interest rate risks, as well as foreign currency exchange rate risk, when guaranteeing payment of interest and return of principal at the contractual maturity date. We may invest in floating rate assets or enter into receive-floating interest rate swaps, also tied to external indices, as well as interest rate caps, to mitigate the impact of changes in market interest rates. We also mitigate our risks by applying various ALM strategies and seek to hedge all foreign currency exchange rate risk through the use of foreign currency hedges, including cross currency swaps.

Asia

Policyholder account balances in this segment are held largely for fixed income retirement and savings plans, fixed deferred annuities, interest sensitive whole life products, universal life and, to a lesser degree, liability amounts for unit-linked-type funds that do not meet the GAAP definition of separate accounts. Also included are certain liabilities for retirement and savings products sold in certain countries in Asia that generally are sold with minimum credited rate guarantees. Liabilities for guarantees on certain variable annuities in Asia are accounted for as embedded derivatives and recorded at estimated fair value and are also included within policyholder account balances. These liabilities are generally impacted by sustained periods of low interest rates, where there are interest rate guarantees. We mitigate our risks by applying various ALM strategies and with reinsurance. Liabilities for unit-linked-type funds are impacted by changes in the fair value of the associated underlying investments, as the return on assets is generally passed directly to the policyholder.

The table below presents the breakdown of account value subject to minimum guaranteed crediting rates for Asia:

	March 31, 2018
Guaranteed Minimum Crediting Rate	Account Value (1)		Account Value at Guarantee (1)
	(In millions)
Annuities
Greater than 0% but less than 2%	$	23,122	$	2,711
Equal to or greater than 2% but less than 4%	$	1,263	$	425
Equal to or greater than 4%	$	2	$	2
Life & Other
Greater than 0% but less than 2%	$	9,770	$	9,466
Equal to or greater than 2% but less than 4%	$	22,840	$	9,299
Equal to or greater than 4%	$	278	$	278

__________________

(1) These amounts are not adjusted for policy loans.

Latin America

Policyholder account balances in this segment are held largely for investment-type products and universal life products in Mexico and Chile, and deferred annuities in Brazil. Some of the deferred annuities in Brazil are unit-linked-type funds that do not meet the GAAP definition of separate accounts. The rest of the deferred annuities have minimum credited rate guarantees, and these liabilities and the universal life liabilities are generally impacted by sustained periods of low interest rates. Liabilities for unit-linked-type funds are impacted by changes in the fair value of the associated investments, as the return on assets is generally passed directly to the policyholder.

EMEA

Policyholder account balances in this segment are held mostly for universal life, deferred annuity, pension products, and unit-linked-type funds that do not meet the GAAP definition of separate accounts. They are also held for endowment products without significant mortality risk. Where there are interest rate guarantees, these liabilities are generally impacted by sustained periods of low interest rates. We mitigate our risks by applying various ALM strategies. Liabilities for unit-linked-type funds are impacted by changes in the fair value of the associated investments, as the return on assets is generally passed directly to the policyholder.

139

MetLife Holdings

Life policyholder account balances are held for retained asset accounts, universal life policies, the fixed account of variable life insurance policies, and funding agreements. For annuities, policyholder account balances are held for fixed deferred annuities, the fixed account portion of variable annuities, non-life contingent income annuities, and embedded derivatives related to variable annuity guarantees. Interest is credited to the policyholder’s account at interest rates we determine which are influenced by current market rates, subject to specified minimums. A sustained low interest rate environment could negatively impact earnings as a result of the minimum credited rate guarantees present in most of these policyholder account balances. We have various interest rate derivative positions to partially mitigate the risks associated with such a scenario. Additionally, for our other products, policyholder account balances are held for variable annuity guarantees assumed from a former operating joint venture in Japan that are accounted for as embedded derivatives.

The table below presents the breakdown of account value subject to minimum guaranteed crediting rates for the MetLife Holdings segment:

	March 31, 2018
Guaranteed Minimum Crediting Rate	Account Value (1)		Account Value at Guarantee (1)
	(In millions)
Greater than 0% but less than 2%	$	1,662	$	1,566
Equal to or greater than 2% but less than 4%	$	19,312	$	16,731
Equal to or greater than 4%	$	8,336	$	5,632

__________________

(1) These amounts are not adjusted for policy loans.

Variable Annuity Guarantees

We issue, directly and through assumed business, certain variable annuity products with guaranteed minimum benefits that provide the policyholder a minimum return based on their initial deposit (i.e., the benefit base) less withdrawals. In some cases, the benefit base may be increased by additional deposits, bonus amounts, accruals or optional market value resets. See Notes 1 and 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report, as well as Note 4 of the Notes to the Interim Condensed Consolidated Financial Statements, for additional information.

Certain guarantees, including portions thereof, have insurance liabilities established that are included in future policy benefits. Guarantees accounted for in this manner include guaranteed minimum death benefits (“GMDBs”), the life-contingent portion of certain guaranteed minimum withdrawal benefits (“GMWBs”), and the non-life contingent portions of both GMWBs and guaranteed minimum income benefits (“GMIBs”) that require annuitization. These liabilities are accrued over the life of the contract in proportion to actual and future expected policy assessments based on the level of guaranteed minimum benefits generated using multiple scenarios of separate account returns. The scenarios are based on best estimate assumptions consistent with those used to amortize DAC. When current estimates of future benefits exceed those previously projected or when current estimates of future assessments are lower than those previously projected, liabilities will increase, resulting in a current period charge to net income. The opposite result occurs when the current estimates of future benefits are lower than those previously projected or when current estimates of future assessments exceed those previously projected. At the end of each reporting period, we update the actual amount of business remaining in-force, which impacts expected future assessments and the projection of estimated future benefits resulting in a current period charge or increase to earnings.

Certain guarantees, including portions thereof, accounted for as embedded derivatives, are recorded at estimated fair value and included in policyholder account balances. Guarantees accounted for as embedded derivatives include guaranteed minimum accumulation benefits (“GMABs”), and the non-life contingent portions of both GMWBs and GMIBs that do not require annuitization. The estimated fair values of guarantees accounted for as embedded derivatives are determined based on the present value of projected future benefits minus the present value of projected future fees. The projections of future benefits and future fees require capital market and actuarial assumptions including expectations concerning policyholder behavior. A risk neutral valuation methodology is used to project the cash flows from the guarantees under multiple capital market scenarios to determine an economic liability. The reported estimated fair value is then determined by taking the present value of these risk-free generated cash flows using a discount rate that incorporates a spread over the risk-free rate to reflect our nonperformance risk and adding a risk margin. For more information on the determination of estimated fair value, see Note 8 of the Notes to the Interim Condensed Consolidated Financial Statements.

140

The table below presents the carrying value for guarantees at: 

	Future Policy Benefits				Policyholder Account Balances
	March 31, 2018		December 31, 2017		March 31, 2018			December 31, 2017
	(In millions)
Asia
GMDB	$	44	$	38	$	—		$	—
GMAB	—		—		17			19
GMWB	94		92		207			182
EMEA
GMDB	—		1		—			—
GMAB	—		—		15			15
GMWB	35		42		(81		)	(90		)
MetLife Holdings
GMDB	318		304		—			—
GMIB	593		581		(151		)	(125		)
GMAB	—		—		2			—
GMWB	105		183		406			322
Total	$	1,189	$	1,241	$	415		$	323

The carrying amounts for guarantees included in policyholder account balances above include nonperformance risk adjustments of $150 million and $130 million at March 31, 2018 and December 31, 2017, respectively. These nonperformance risk adjustments represent the impact of including a credit spread when discounting the underlying risk neutral cash flows to determine the estimated fair values. The nonperformance risk adjustment does not have an economic impact on us as it cannot be monetized given the nature of these policyholder liabilities. The change in valuation arising from the nonperformance risk adjustment is not hedged.

The carrying values of these guarantees can change significantly during periods of sizable and sustained shifts in equity market performance, equity volatility, interest rates or foreign currency exchange rates. Carrying values are also impacted by our assumptions around mortality, separate account returns and policyholder behavior, including lapse rates.

As discussed below, we use a combination of product design, hedging strategies, reinsurance, and other risk management actions to mitigate the risks related to these benefits. Within each type of guarantee, there is a range of product offerings reflecting the changing nature of these products over time. Changes in product features and terms are in part driven by customer demand but, more importantly, reflect our risk management practices of continuously evaluating the guaranteed benefits and their associated asset-liability matching. Recently, we have been diversifying the concentration of income benefits in the portfolio of the Company’s annuities business by focusing on withdrawal benefits, variable annuities without living benefits and index-linked annuities.

The sections below provide further detail by total account value for certain of our most popular guarantees. Total account values include amounts not reported on the consolidated balance sheets from assumed business, Unit-linked investments which do not qualify for presentation as separate account assets, and amounts included in our general account. The total account values and the net amounts at risk include direct and assumed business, but exclude offsets from hedging or ceded reinsurance, if any.

141

GMDBs

We offer a range of GMDBs to our contractholders. The table below presents GMDBs, by benefit type, at March 31, 2018:

	Total Account Value (1)
	Asia & EMEA		MetLife Holdings
	(In millions)
Return of premium or five to seven year step-up	$	7,759	$	53,065
Annual step-up	—		3,577
Roll-up and step-up combination	—		6,327
Total	$	7,759	$	62,969

__________________

(1) Total account value excludes $306 million for contracts with no GMDBs. Further, many of our annuity contracts offer more than one type of guarantee such that GMDB amounts listed above are not mutually exclusive to the amounts in the living benefit guarantees table below.

Based on total account value, less than 19% of our GMDBs included enhanced death benefits such as the annual step-up or roll-up and step-up combination products. We expect the above GMDB risk profile to be relatively consistent for the foreseeable future.

Living Benefit Guarantees

The table below presents our living benefit guarantees based on total account values at March 31, 2018:

	Total Account Value (1)
	Asia & EMEA		MetLife Holdings
	(In millions)
GMIB	$	—	$	24,206
GMWB - non-life contingent (2)	2,355		3,181
GMWB - life-contingent	3,689		10,967
GMAB	1,223		535
Total	$	7,267	$	38,889

__________________

(1) Total account value excludes $24.4 billion for contracts with no living benefit guarantees. Further, many of our annuity contracts offer more than one type of guarantee such that living benefit guarantee amounts listed above are not mutually exclusive of the amounts in the GMDBs table above.

(2) The Asia and EMEA segments include the non-life contingent portion of the GMWB total account value of $963 million with a guarantee at annuitization.

In terms of total account value, GMIBs are our most significant living benefit guarantee. Our primary risk management strategy for our GMIB products is our derivatives hedging program as discussed below. Additionally, we have engaged in certain reinsurance agreements covering some of our GMIB business. As part of our overall risk management approach for living benefit guarantees, we continually monitor the reinsurance markets for the right opportunity to purchase additional coverage for our GMIB business.

142

The table below presents our GMIB associated total account values, by their guaranteed payout basis, at March 31, 2018:

	Total Account Value
	(In millions)
7-year setback, 2.5% interest rate	$	6,387
7-year setback, 1.5% interest rate	1,048
10-year setback, 1.5% interest rate	5,296
10-year mortality projection, 10-year setback, 1.0% interest rate	9,765
10-year mortality projection, 10-year setback, 0.5% interest rate	1,710
	$	24,206

The annuitization interest rates on GMIBs have been decreased from 2.5% to 0.5% over time, partially in response to the low interest rate environment, accompanied by an increase in the setback period from seven years to 10 years and the introduction of a 10-year mortality projection.

Additionally, 40% of the $24.2 billion of GMIB total account value has been invested in managed volatility funds as of March 31, 2018. These funds seek to manage volatility by adjusting the fund holdings within certain guidelines based on capital market movements. Such activity reduces the overall risk of the underlying funds while maintaining their growth opportunities. These risk mitigation techniques reduce or eliminate the need for us to manage the funds’ volatility through hedging or reinsurance.

Our GMIB products typically have a waiting period of 10 years to be eligible for annuitization. As of March 31, 2018, only 16% of our contracts with GMIBs were eligible for annuitization. The remaining contracts are not eligible for annuitization for an average of five years.

Once eligible for annuitization, contractholders would be expected to annuitize only if their contracts were in-the-money. We calculate in-the-moneyness with respect to GMIBs consistent with net amount at risk as discussed in Note 4 of the Notes to the Interim Condensed Consolidated Financial Statements, by comparing the contractholders’ income benefits based on total account values and current annuity rates versus the guaranteed income benefits. The net amount at risk was $510 million at March 31, 2018, of which $307 million was related to GMIB guarantees. For those contracts with GMIB, the table below presents details of contracts that are in-the-money and out-of-the-money at March 31, 2018:

	In-the- Moneyness	Total Account Value		% of Total
	(In millions)
In-the-money	30% +	$	284	1	%
	20% to 30%	201		1	%
	10% to 20%	421		2	%
	0% to 10%	826		3	%
		1,732
Out-of-the-money	-10% to 0%	1,861		8	%
	-20% to -10%	3,317		14	%
	-20% +	17,296		72	%
		22,474
Total GMIBs		$	24,206

143

Derivatives Hedging Variable Annuity Guarantees

Our risk mitigating hedging strategy uses various over-the-counter and exchange traded derivatives. The table below presents the gross notional amount, estimated fair value and primary underlying risk exposure of the derivatives hedging our variable annuity guarantees:

	Instrument Type	March 31, 2018						December 31, 2017
Primary Underlying Risk Exposure		Gross Notional Amount		Estimated Fair Value				Gross Notional Amount		Estimated Fair Value
				Assets		Liabilities				Assets		Liabilities
		(In millions)
Interest rate	Interest rate swaps	$	8,185	$	58	$	11	$	16,080	$	433	$	22
	Interest rate futures	1,966		1		3		3,060		1		4
	Interest rate options	2,180		383		—		10,173		486		11
Foreign currency exchange rate	Foreign currency forwards	2,871		54		7		2,288		5		36
Equity market	Equity futures	2,884		5		19		3,781		17		4
	Equity index options	9,653		399		603		9,546		383		690
	Equity variance swaps	4,661		52		194		4,661		54		199
	Equity total return swaps	1,012		35		—		1,117		—		41
	Total	$	33,412	$	987	$	837	$	50,706	$	1,379	$	1,007

The change in estimated fair values of our derivatives is recorded in policyholder benefits and claims if such derivatives are hedging guarantees included in future policy benefits, and in net derivative gains (losses) if such derivatives are hedging guarantees included in policyholder account balances.

Our hedging strategy involves the significant use of static longer-term derivative instruments to avoid the need to execute transactions during periods of market disruption or higher volatility. We continually monitor the capital markets for opportunities to adjust our liability coverage, as appropriate. Futures are also used to dynamically adjust the daily coverage levels as markets and liability exposures fluctuate.

We remain liable for the guaranteed benefits in the event that reinsurers or derivative counterparties are unable or unwilling to pay. Certain of our reinsurance agreements and substantially all derivative positions are collateralized and derivatives positions are subject to master netting agreements, both of which significantly reduce the exposure to counterparty risk. In addition, we are subject to the risk that hedging and other risk management actions prove ineffective or that unanticipated policyholder behavior or mortality, combined with adverse market events, produces economic losses beyond the scope of the risk management techniques employed.

Liquidity and Capital Resources

Overview

Our business and results of operations are materially affected by conditions in the global capital markets and the economy generally. Stressed conditions, volatility and disruptions in global capital markets, particular markets, or financial asset classes can have an adverse effect on us, in part because we have a large investment portfolio and our insurance liabilities and derivatives are sensitive to changing market factors. Changing conditions in the global capital markets and the economy may affect our financing costs and market interest for our debt or equity securities. For further information regarding market factors that could affect our ability to meet liquidity and capital needs, see “— Industry Trends” and “— Investments — Current Environment.”

Liquidity Management

Based upon the strength of our franchise, diversification of our businesses, strong financial fundamentals and the substantial funding sources available to us as described herein, we continue to believe we have access to ample liquidity to meet business requirements under current market conditions and reasonably possible stress scenarios. We continuously monitor and adjust our liquidity and capital plans for MetLife, Inc. and its subsidiaries in light of market conditions, as well as changing needs and opportunities.

144

Short-term Liquidity

We maintain a substantial short-term liquidity position, which was $11.3 billion and $10.0 billion at March 31, 2018 and December 31, 2017, respectively. Short-term liquidity includes cash and cash equivalents and short-term investments, excluding assets that are pledged or otherwise committed, including amounts received in connection with securities lending, repurchase agreements, derivatives, and secured borrowings, as well as amounts held in the closed block.

Liquid Assets

An integral part of our liquidity management includes managing our level of liquid assets, which was $205.6 billion and $209.1 billion at March 31, 2018 and December 31, 2017, respectively. Liquid assets include cash and cash equivalents, short-term investments and publicly-traded securities, excluding assets that are pledged or otherwise committed. Assets pledged or otherwise committed include amounts received in connection with securities lending, repurchase agreements, derivatives, regulatory deposits, the collateral financing arrangement, funding agreements and secured borrowings, as well as amounts held in the closed block.

Capital Management

We have established several senior management committees as part of our capital management process. These committees, including the Capital Management Committee and the Enterprise Risk Committee (“ERC”), regularly review actual and projected capital levels (under a variety of scenarios including stress scenarios) and our annual capital plan in accordance with our capital policy. The Capital Management Committee is comprised of members of senior management, including MetLife, Inc.’s Chief Financial Officer (“CFO”), Treasurer, and Chief Risk Officer (“CRO”). The ERC is also comprised of members of senior management, including MetLife, Inc.’s CFO, CRO and Chief Investment Officer.

Our Board of Directors and senior management are directly involved in the development and maintenance of our capital policy. The capital policy sets forth, among other things, minimum and target capital levels and the governance of the capital management process. All capital actions, including proposed changes to the annual capital plan, capital targets or capital policy, are reviewed by the Finance and Risk Committee of the Board of Directors prior to obtaining full Board of Directors approval. The Board of Directors approves the capital policy and the annual capital plan and authorizes capital actions, as required.

See “Risk Factors — Capital-Related Risks — Legal and Regulatory Restrictions and Uncertainty and Restrictions Under the Terms of Certain of Our Securities May Prevent Us from Repurchasing Our Stock and Paying Dividends at the Level We Wish” and Note 15 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for information regarding restrictions on payment of dividends and stock repurchases. See also “— The Company — Liquidity and Capital Uses — Common Stock Repurchases” for information regarding MetLife, Inc.’s common stock repurchase authorization.

The Company

Liquidity

Liquidity refers to the ability to generate adequate amounts of cash to meet our needs. In the event of significant cash requirements beyond anticipated liquidity needs, we have various alternatives available depending on market conditions and the amount and timing of the liquidity need. These available alternatives include cash flows from operations, sales of liquid assets, global funding sources including commercial paper and various credit and committed facilities.

Capital

We manage our capital position to maintain our financial strength and credit ratings. Our capital position is supported by our ability to generate strong cash flows within our operating companies and borrow funds at competitive rates, as well as by our demonstrated ability to raise additional capital to meet operating and growth needs despite adverse market and economic conditions.

145

Summary of the Company’s Primary Sources and Uses of Liquidity and Capital

Our primary sources and uses of liquidity and capital are summarized as follows:

	Three Months Ended March 31,
	2018		2017
	(In millions)
Sources:
Operating activities, net	$	1,296	$	2,098
Changes in policyholder account balances, net	414		2,171
Changes in payables for collateral under securities loaned and other transactions, net	667		391
Long-term debt issued	14		—
Financing element on certain derivative instruments and other derivative related transactions, net	37		188
Preferred stock issued, net of issuance costs	494		—
Other, net	100		66
Effect of change in foreign currency exchange rates on cash and cash equivalents	197		213
Total sources	3,219		5,127
Uses:
Investing activities, net	485		4,276
Long-term debt repaid	32		4
Collateral financing arrangement repaid	13		12
Treasury stock acquired in connection with share repurchases	1,041		858
Dividends on preferred stock	6		6
Dividends on common stock	416		437
Total uses	1,993		5,593
Net increase (decrease) in cash and cash equivalents	$	1,226	$	(466	)

Cash Flows from Operations

The principal cash inflows from our insurance activities come from insurance premiums, net investment income, annuity considerations and deposit funds. The principal cash outflows are the result of various life insurance, property & casualty, annuity and pension products, operating expenses and income tax, as well as interest expense. A primary liquidity concern with respect to these cash flows is the risk of early contractholder and policyholder withdrawal. The cash flows from discontinued operations are not separately classified, but generally arise from the same activities described above.

Cash Flows from Investments

The principal cash inflows from our investment activities come from repayments of principal, proceeds from maturities and sales of investments and settlements of freestanding derivatives. The principal cash outflows relate to purchases of investments, issuances of policy loans and settlements of freestanding derivatives. Additional cash outflows relate to purchases of businesses. We typically have a net cash outflow from investing activities because cash inflows from insurance operations are reinvested in accordance with our ALM discipline to fund insurance liabilities. We closely monitor and manage these risks through our comprehensive investment risk management process. The primary liquidity concerns with respect to these cash flows are the risk of default by debtors and market disruption. The cash flows from discontinued operations are not separately classified, but generally arise from the same activities described above.

146

Cash Flows from Financing

The principal cash inflows from our financing activities come from issuances of debt and other securities, deposits of funds associated with policyholder account balances and lending of securities. The principal cash outflows come from repayments of debt and collateral financing arrangements, payments of dividends on and repurchases of MetLife, Inc.’s securities, withdrawals associated with policyholder account balances and the return of securities on loan. The primary liquidity concerns with respect to these cash flows are market disruption and the risk of early contractholder and policyholder withdrawal. The cash flows from discontinued operations are not separately classified, but generally arise from the same activities described above.

Liquidity and Capital Sources

In addition to the general description of liquidity and capital sources in “— Summary of the Company’s Primary Sources and Uses of Liquidity and Capital,” the following additional information is provided regarding our primary sources of liquidity and capital. See Note 3 of the Notes to the Interim Condensed Consolidated Financial Statements for information regarding financing transactions related to the Separation.

Global Funding Sources

Liquidity is provided by a variety of global funding sources, including funding agreements, credit and committed facilities and commercial paper. Capital is provided by a variety of global funding sources, including short-term and long-term debt, the collateral financing arrangement, junior subordinated debt securities, preferred securities, equity securities and equity-linked securities. The diversity of our global funding sources enhances our funding flexibility, limits dependence on any one market or source of funds and generally lowers the cost of funds. Our primary global funding sources include:

Preferred Stock

In March 2018, MetLife, Inc. issued 500,000 shares of 5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D (the “Series D preferred stock”) with a $0.01 par value per share and a liquidation preference of $1,000 per share, for aggregate proceeds of $494 million. See Note 9 of the Notes to the Interim Condensed Consolidated Financial Statements for further information.

Common Stock

During the three months endedMarch 31, 2018 and 2017, MetLife, Inc. issued 1,934,114 and 1,840,900 new shares of its common stock, respectively, for $74 million and $66 million, respectively, to satisfy various stock option exercises and other stock-based awards.

Commercial Paper, Reported in Short-term Debt

MetLife, Inc. and MetLife Funding, Inc. (“MetLife Funding”), a subsidiary of Metropolitan Life Insurance Company (“MLIC”), each have a commercial paper program that is supported by our unsecured revolving credit facility (see “— Credit and Committed Facilities”). MetLife Funding raises cash from its commercial paper program and uses the proceeds to extend loans through MetLife Credit Corp., another subsidiary of MLIC, to affiliates in order to enhance the financial flexibility and liquidity of these companies.

Federal Home Loan Bank Funding Agreements, Reported in Policyholder Account Balances

Certain of our domestic insurance subsidiaries are members of a regional FHLB. During the three months endedMarch 31, 2018 and 2017, we issued $6.5 billion and $4.4 billion, respectively, and repaid $6.5 billion and $4.4 billion, respectively, under funding agreements with certain regional FHLBs. At both March 31, 2018 and December 31, 2017, total obligations outstanding under these funding agreements were $15.3 billion. See Note 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report.

Federal Home Loan Bank Advance Agreements, Reported in Payables for Collateral Under Securities Loaned and Other Transactions

During the three months endedMarch 31, 2018, we issued $800 million and repaid $300 million, under advance agreements with a regional FHLB. There were no such transactions during the three months endedMarch 31, 2017. At March 31, 2018 and December 31, 2017, total obligations outstanding under these advance agreements were $800 million and $300 million, respectively. See Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements.

147

Special Purpose Entity Funding Agreements, Reported in Policyholder Account Balances

We issue fixed and floating rate funding agreements, which are denominated in either U.S. dollars or foreign currencies, to certain special purpose entities (“SPEs”) that have issued either debt securities or commercial paper for which payment of interest and principal is secured by such funding agreements. During the three months endedMarch 31, 2018 and 2017, we issued $12.9 billion and $10.3 billion, respectively, and repaid $13.9 billion and $9.5 billion, respectively, under such funding agreements. At March 31, 2018 and December 31, 2017, total obligations outstanding under these funding agreements were $33.6 billion and $34.2 billion, respectively. See Note 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report.

Federal Agricultural Mortgage Corporation Funding Agreements, Reported in Policyholder Account Balances

We have issued funding agreements to a subsidiary of the Federal Agricultural Mortgage Corporation (“Farmer Mac”), as well as to certain SPEs that have issued debt securities for which payment of interest and principal is secured by such funding agreements, and such debt securities are also guaranteed as to payment of interest and principal by Farmer Mac. The obligations under all such funding agreements are secured by a pledge of certain eligible agricultural mortgage loans. During the three months endedMarch 31, 2018 and 2017, we issued $125 million and $0, respectively, and repaid $125 million and $0, respectively, under such funding agreements. At both March 31, 2018 and December 31, 2017, total obligations outstanding under these funding agreements were $2.6 billion. See Note 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report.

Credit and Committed Facilities

At March 31, 2018, we maintained a $3.0 billion unsecured revolving credit facility and certain committed facilities aggregating $3.5 billion. When drawn upon, these facilities bear interest at varying rates in accordance with the respective agreements.

The unsecured revolving credit facility is used for general corporate purposes, to support the borrowers’ commercial paper programs and for the issuance of letters of credit. At March 31, 2018, we had outstanding $312 million in letters of credit and no drawdowns against this facility. Remaining availability was $2.7 billion at March 31, 2018.

The committed facilities are used as collateral for certain of our affiliated reinsurance liabilities. At March 31, 2018, we had outstanding $3.0 billion in letters of credit and no drawdowns against these facilities. Remaining availability was $541 million at March 31, 2018. At March 31, 2018, Brighthouse was a beneficiary of $2.4 billion of letters of credit issued under a certain facility. See Note 3 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report.

See Note 12 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for further information about these facilities.

We have no reason to believe that our lending counterparties will be unable to fulfill their respective contractual obligations under these facilities. As commitments under our credit and committed facilities may expire unused, these amounts do not necessarily reflect our future cash funding requirements.

Outstanding Debt Under Global Funding Sources

The following table summarizes our outstanding debt, excluding long-term debt relating to CSEs, at:

	March 31, 2018		December 31, 2017
	(In millions)
Short-term debt (1)	$	526	$	477
Long-term debt (2)	$	15,702	$	15,680
Collateral financing arrangement	$	1,108	$	1,121
Junior subordinated debt securities	$	3,145	$	3,144

__________________

(1) Includes $426 million and $377 million of debt that is non-recourse to MetLife, Inc. and MLIC, subject to customary exceptions, at March 31, 2018 and December 31, 2017, respectively. Certain subsidiaries have pledged assets to secure this debt.

148

(2) Includes $506 million and $523 million of debt that is non-recourse to MetLife, Inc. and MLIC, subject to customary exceptions, at March 31, 2018 and December 31, 2017, respectively. Certain investment subsidiaries have pledged assets to secure this debt.

Debt and Facility Covenants

Certain of our debt instruments and committed facilities, as well as our unsecured revolving credit facility, contain various administrative, reporting, legal and financial covenants. We believe we were in compliance with all applicable financial covenants at March 31, 2018.

Liquidity and Capital Uses

In addition to the general description of liquidity and capital uses in “— Summary of the Company’s Primary Sources and Uses of Liquidity and Capital,” the following additional information is provided regarding our primary uses of liquidity and capital.

Common Stock Repurchases

On November 1, 2017, MetLife, Inc. announced that its Board of Directors authorized $2.0 billion of common stock repurchases. Under this authorization, MetLife, Inc. may purchase its common stock from the MetLife Policyholder Trust, in the open market (including pursuant to the terms of a pre-set trading plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934 (“Exchange Act”)) and in privately negotiated transactions.

During the three months endedMarch 31, 2018 and 2017, MetLife, Inc. repurchased 21,405,327 shares and 16,038,791 shares, respectively, of common stock in open market purchases for $1.0 billion and $858 million, respectively. At March 31, 2018, MetLife, Inc. had $720 million remaining under the common stock repurchase authorization.

Common stock repurchases are dependent upon several factors, including our capital position, liquidity, financial strength and credit ratings, general market conditions, the market price of MetLife, Inc.’s common stock compared to management’s assessment of the stock’s underlying value and applicable regulatory approvals, as well as other legal and accounting factors. See “Business — Regulation,” “Risk Factors — Capital-Related Risks — Legal and Regulatory Restrictions and Uncertainty and Restrictions Under the Terms of Certain of Our Securities May Prevent Us from Repurchasing Our Stock and Paying Dividends at the Level We Wish” and Note 15 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report.

Dividends

Preferred Stock Dividends

The declaration, record and payment dates, as well as per share and aggregate dividend amounts, for MetLife, Inc.’s preferred stock were as follows for the three months endedMarch 31, 2018 and 2017:

Declaration Date	Record Date	Payment Date	Preferred Stock Dividend
			Series A Per  Share		Series A Aggregate		Series C Per Share		Series C Aggregate		Series D Per Share		Series D Aggregate
			(In millions, except per share data)
March 5, 2018	February 28, 2018	March 15, 2018	$	0.250	$	6	$	—	$	—	$	—	$	—
March 6, 2017	February 28, 2017	March 15, 2017	$	0.250	$	6	$	—	$	—	$	—	$	—

Dividends are paid quarterly on MetLife, Inc.’s Floating Rate Non-Cumulative Preferred Stock, Series A. Dividends are paid semi-annually on MetLife, Inc.’s 5.25% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C, commencing December 15, 2015 and ending June 15, 2020 and, thereafter, will be paid quarterly. Dividends will be paid semi-annually on MetLife, Inc.’s 5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D, commencing September 15, 2018 and ending March 15, 2028 and, thereafter, will be paid quarterly.

149

Common Stock Dividends

The declaration, record and payment dates, as well as per share and aggregate dividend amounts, for MetLife, Inc.’s common stock were as follows for the three months endedMarch 31, 2018 and 2017:

Declaration Date	Record Date	Payment Date	Common Stock Dividend
			Per Share		Aggregate
			(In millions, except per share data)
January 5, 2018	February 5, 2018	March 13, 2018	$	0.400	$	416
January 6, 2017	February 6, 2017	March 13, 2017	$	0.400	$	437

The declaration and payment of common stock dividends is subject to the discretion of our Board of Directors, and will depend on MetLife, Inc.’s financial condition, results of operations, cash requirements, future prospects, regulatory restrictions on the payment of dividends by MetLife, Inc.’s insurance subsidiaries and other factors deemed relevant by the Board. See Note 15 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for additional information. See also Note 15 of the Notes to the Interim Condensed Consolidated Financial Statements for information regarding a common stock dividend declared subsequent to March 31, 2018.

Dividend Restrictions

The payment of dividends is also subject to restrictions under the terms of our preferred stock and junior subordinated debentures in situations where we may be experiencing financial stress. See “Risk Factors — Capital-Related Risks — Legal and Regulatory Restrictions and Uncertainty and Restrictions Under the Terms of Certain of Our Securities May Prevent Us from Repurchasing Our Stock and Paying Dividends at the Level We Wish” and Note 15 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report. If additional capital requirements are imposed on MetLife, Inc. as a global systemically important insurer (“G-SII”), its ability to pay dividends could be reduced. See “Business — Regulation — International Regulation — Other International and Global Regulatory Initiatives” in the 2017 Annual Report.

Debt and Collateral Financing Arrangement Repayments

During the three months endedMarch 31, 2018 and 2017, following regulatory approval, MetLife Reinsurance Company of Charleston, a wholly-owned subsidiary of MetLife, Inc., repurchased and canceled $13 million and $12 million, respectively, in aggregate principal amount of its surplus notes, which were reported in collateral financing arrangement on the consolidated balance sheets.

Debt Repurchases

We may from time to time seek to retire or purchase our outstanding debt through cash purchases and/or exchanges for other securities, in open market purchases, privately negotiated transactions or otherwise. Any such repurchases or exchanges will be dependent upon several factors, including our liquidity requirements, contractual restrictions, general market conditions, and applicable regulatory, legal and accounting factors. Whether or not to repurchase any debt and the size and timing of any such repurchases will be determined at our discretion.

Support Agreements

MetLife, Inc. and several of its subsidiaries (each, an “Obligor”) are parties to various capital support commitments and guarantees with subsidiaries. Under these arrangements, each Obligor has agreed to cause the applicable entity to meet specified capital and surplus levels or has guaranteed certain contractual obligations. We anticipate that in the event these arrangements place demands upon us, there will be sufficient liquidity and capital to enable us to meet such demands. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — MetLife, Inc. — Liquidity and Capital Uses — Support Agreements” included in the 2017 Annual Report.

150

Insurance Liabilities

Liabilities arising from our insurance activities primarily relate to benefit payments under various life insurance, property & casualty, annuity and group pension products, as well as payments for policy surrenders, withdrawals and loans. For annuity or deposit type products, surrender or lapse behavior differs somewhat by segment. In the MetLife Holdings segment, which includes individual annuities, lapses and surrenders tend to occur in the normal course of business. During the three months endedMarch 31, 2018 and 2017, general account surrenders and withdrawals from annuity products were $450 million and $358 million, respectively. In the Retirement and Income Solutions business within the U.S. segment, which includes pension risk transfers, bank-owned life insurance and other fixed annuity contracts, as well as funding agreements and other capital market products, most of the products offered have fixed maturities or fairly predictable surrenders or withdrawals. With regard to the Retirement and Income Solutions business products that provide customers with limited rights to accelerate payments, at March 31, 2018 there were funding agreements totaling $166 million that could be put back to the Company.

Pledged Collateral

We pledge collateral to, and have collateral pledged to us by, counterparties in connection with our derivatives. At March 31, 2018 and December 31, 2017, we had received pledged cash collateral from counterparties of $4.5 billion and $5.0 billion, respectively. At March 31, 2018 and December 31, 2017, we had pledged cash collateral to counterparties of $293 million and $456 million, respectively. With respect to derivative contracts between two counterparties which are in a net liability position and have credit contingent provisions, a one-notch downgrade in the Company’s credit or financial strength rating, as applicable, would have required $14 million of additional collateral be provided to our counterparties as of March 31, 2018. See Note 7 of the Notes to the Interim Condensed Consolidated Financial Statements for additional information about collateral pledged to us, collateral we pledge and derivatives subject to credit contingent provisions.

We pledge collateral and have had collateral pledged to us, and may be required from time to time to pledge additional collateral or be entitled to have additional collateral pledged to us, in connection with the collateral financing arrangement related to the reinsurance of closed block liabilities.

We pledge collateral from time to time in connection with funding agreements and advance agreements. See Note 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report and Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements.

Securities Lending

We participate in a securities lending program whereby securities are loaned to third parties, primarily brokerage firms and commercial banks. We obtain collateral, usually cash, from the borrower, which must be returned to the borrower when the loaned securities are returned to us. Under our securities lending program, we were liable for cash collateral under our control of $18.1 billion and $19.4 billion at March 31, 2018 and December 31, 2017, respectively. Of these amounts, $3.5 billion and $3.8 billion at March 31, 2018 and December 31, 2017, respectively, were on open, meaning that the related loaned security could be returned to us on the next business day, requiring the immediate return of cash collateral we hold. The estimated fair value of the securities on loan related to the cash collateral on open at March 31, 2018 was $3.4 billion, all of which were U.S. government and agency securities which, if put to us, could be immediately sold to satisfy the cash requirement. See Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements.

Repurchase Agreements

We participate in short-term repurchase agreements whereby securities are loaned to unaffiliated financial institutions. We obtain collateral, usually cash, from the borrower, which must be returned to the borrower when the loaned securities are returned to us. Under these repurchase agreements, we were liable for cash collateral under our control of $2.9 billion and $1.1 billion at March 31, 2018 and December 31, 2017, respectively. The estimated fair value of the securities on loan at March 31, 2018 was $2.9 billion which were primarily U.S. government and agency securities which, if put to us, could be immediately sold to satisfy the cash requirement. See Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements.

151

Litigation

Putative or certified class action litigation and other litigation, and claims and assessments against us, in addition to those discussed elsewhere herein and those otherwise provided for on the consolidated financial statements, have arisen in the course of our business, including, but not limited to, in connection with our activities as an insurer, employer, investor, investment advisor, taxpayer and, formerly, a mortgage lending bank. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning our compliance with applicable insurance and other laws and regulations. See Note 14 of the Notes to the Interim Condensed Consolidated Financial Statements.

We establish liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. For material matters where a loss is believed to be reasonably possible but not probable, no accrual is made but we disclose the nature of the contingency and an aggregate estimate of the reasonably possible range of loss in excess of amounts accrued, when such an estimate can be made. It is not possible to predict or determine the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to herein, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Although in light of these considerations, it is possible that an adverse outcome in certain cases could have a material adverse effect upon our financial position, based on information currently known by us, in our opinion, the outcome of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material adverse effect on our consolidated net income or cash flows in particular quarterly or annual periods.

Contractual Obligations

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — The Company — Contractual Obligations” included in the 2017 Annual Report for additional information regarding the Company’s contractual obligations.

MetLife, Inc.

Liquidity and Capital Management

Liquidity and capital are managed to preserve stable, reliable and cost-effective sources of cash to meet all current and future financial obligations and are provided by a variety of sources, including a portfolio of liquid assets, a diversified mix of short- and long-term funding sources from the wholesale financial markets and the ability to borrow through credit and committed facilities. Liquidity is monitored through the use of internal liquidity risk metrics, including the composition and level of the liquid asset portfolio, timing differences in short-term cash flow obligations, access to the financial markets for capital and debt transactions and exposure to contingent draws on MetLife, Inc.’s liquidity. MetLife, Inc. is an active participant in the global financial markets through which it obtains a significant amount of funding. These markets, which serve as cost-effective sources of funds, are critical components of MetLife, Inc.’s liquidity and capital management. Decisions to access these markets are based upon relative costs, prospective views of balance sheet growth and a targeted liquidity profile and capital structure. A disruption in the financial markets could limit MetLife, Inc.’s access to liquidity.

MetLife, Inc.’s ability to maintain regular access to competitively priced wholesale funds is fostered by its current credit ratings from the major credit rating agencies. We view our capital ratios, credit quality, stable and diverse earnings streams, diversity of liquidity sources and our liquidity monitoring procedures as critical to retaining such credit ratings.

Liquidity

For a summary of MetLife, Inc.’s liquidity, see “— The Company — Liquidity.”

Capital

For a summary of MetLife, Inc.’s capital, see “— The Company — Capital.” For further information regarding potential capital restrictions and limitations on MetLife, Inc. as a G-SII, see “Business — Regulation — International Regulation — Other International and Global Regulatory Initiatives” included in the 2017 Annual Report. See also “— The Company — Liquidity and Capital Uses — Common Stock Repurchases” for information regarding MetLife, Inc.’s common stock repurchases.

152

Liquid Assets

At March 31, 2018 and December 31, 2017, MetLife, Inc. and other MetLife holding companies had $5.1 billion and $5.7 billion, respectively, in liquid assets. Of these amounts, $3.8 billion and $4.1 billion were held by MetLife, Inc. and $1.3 billion and $1.6 billion were held by other MetLife holding companies at March 31, 2018 and December 31, 2017, respectively. Liquid assets include cash and cash equivalents, short-term investments and publicly-traded securities excluding assets that are pledged or otherwise committed. Assets pledged or otherwise committed include amounts received in connection with derivatives and a collateral financing arrangement.

Liquid assets held in non-U.S. holding companies are generated in part through dividends from non-U.S. insurance operations. Such dividends are subject to local insurance regulatory requirements, as discussed in “— Liquidity and Capital Sources — Dividends from Subsidiaries.” The cumulative earnings of certain active non-U.S. operations have historically been reinvested indefinitely in such non-U.S. operations. Following a post-Separation review of our capital needs in the third quarter of 2017, we expect to repatriate approximately $3.0 billion of pre-2017 earnings in the future. See Note 18 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for information on the taxation of such cumulative earnings. The Company repatriated $2.6 billion in the fourth quarter of 2017 and intends to repatriate the remaining amount in 2018. As a result of U.S. Tax Reform, we expect to repatriate future foreign earnings back to the U.S. with minimal or no additional U.S. tax. See also Note 12 of the Notes to the Interim Condensed Consolidated Financial Statements.

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — MetLife, Inc. — Liquid Assets” included in the 2017 Annual Report for additional information on the sources and uses of liquid assets, as well as sources and uses of liquid assets included in free cash flow for MetLife, Inc. and other MetLife holding companies.

Liquidity and Capital Sources

In addition to the description of liquidity and capital sources in “— The Company — Summary of the Company’s Primary Sources and Uses of Liquidity and Capital” and “— The Company — Liquidity and Capital Sources,” the following additional information is provided regarding MetLife, Inc.’s primary sources of liquidity and capital.

Dividends from Subsidiaries

MetLife, Inc. relies, in part, on dividends from its subsidiaries to meet its cash requirements. MetLife, Inc.’s insurance subsidiaries are subject to regulatory restrictions on the payment of dividends imposed by the regulators of their respective domiciles. The dividend limitation for U.S. insurance subsidiaries is generally based on the surplus to policyholders at the end of the immediately preceding calendar year and statutory net gain from operations for the immediately preceding calendar year. Statutory accounting practices, as prescribed by insurance regulators of various states in which we conduct business, differ in certain respects from accounting principles used in financial statements prepared in conformity with GAAP. The significant differences relate to the treatment of DAC, certain deferred income tax, required investment liabilities, statutory reserve calculation assumptions, goodwill and surplus notes.

The table below sets forth the dividends permitted to be paid in 2018 by MetLife, Inc.’s primary insurance subsidiaries without insurance regulatory approval and the respective dividends paid during the three months endedMarch 31, 2018:

Company	Paid		Permitted w/o Approval (1)
	(In millions)
Metropolitan Life Insurance Company	$	1,000	$	3,075
Metropolitan Property and Casualty Insurance Company	$	—	$	125
General American Life Insurance Company	$	—	$	118
Metropolitan Tower Life Insurance Company	$	—	$	73
American Life Insurance Company	$	—	$	—

__________________

(1) Reflects dividend amounts that may be paid during 2018 without prior regulatory approval. However, because dividend tests may be based on dividends previously paid over rolling 12-month periods, if paid before a specified date during 2018, some or all of such dividends may require regulatory approval.

In addition to the amounts presented in the table above, for the three months ended March 31, 2018, MetLife, Inc. received cash of $20 million, representing a return of capital from a subsidiary.

153

The dividend capacity of our non-U.S. operations is subject to similar restrictions established by the local regulators. The non-U.S. regulatory regimes also commonly limit dividend payments to the parent company to a portion of the subsidiary’s prior year statutory income, as determined by the local accounting principles. The regulators of our non-U.S. operations, including Japan’s Financial Services Agency, may also limit or not permit profit repatriations or other transfers of funds to the U.S. if such transfers are deemed to be detrimental to the solvency or financial strength of the non-U.S. operations, or for other reasons. Most of our non-U.S. subsidiaries are second tier subsidiaries which are owned by various non-U.S. holding companies. The capital and rating considerations applicable to our first tier subsidiaries may also impact the dividend flow into MetLife, Inc.

We proactively manage target and excess capital levels and dividend flows and forecast local capital positions as part of the financial planning cycle. The dividend capacity of certain U.S. and non-U.S. subsidiaries is also subject to business targets in excess of the minimum capital necessary to maintain the desired rating or level of financial strength in the relevant market. See “Risk Factors — Capital-Related Risks — As a Holding Company, MetLife, Inc. Depends on the Ability of Its Subsidiaries to Pay Dividends, a Major Component of Holding Company Free Cash Flow” included in the 2017 Annual Report and Note 15 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report.

Short-term Debt

MetLife, Inc. maintains a commercial paper program, the proceeds of which can be used to finance the general liquidity needs of MetLife, Inc. and its subsidiaries. MetLife, Inc. had no short-term debt outstanding at either March 31, 2018 or December 31, 2017.

Preferred Stock

For information on MetLife, Inc.’s preferred stock, see “— The Company — Liquidity and Capital Sources — Global Funding Sources — Preferred Stock” and “— The Company — Liquidity and Capital Uses — Dividends — Preferred Stock Dividends.”

Redenomination of Affiliated Long-term Debt

In March 2018, three senior notes previously issued by MetLife, Inc. to MLIC were redenominated to Japanese yen. A $500 million senior note was redenominated to a new 53.3 billion Japanese yen senior note to MLIC. The 53.3 billion Japanese yen senior note matures in June 2019 and bears interest at a rate per annum of 1.45%, payable semi-annually. A $250 million senior note was redenominated to a new 26.5 billion Japanese yen senior note to MLIC. The 26.5 billion Japanese yen senior note matures in October 2019 and bears interest at a rate per annum of 1.72%, payable semi-annually. A $250 million senior note was also redenominated to a new 26.5 billion Japanese yen senior note to MLIC. The 26.5 billion Japanese yen senior note matures in September 2020 and bears interest at a rate per annum of 0.82%, payable semi-annually.

In April 2018, a $500 million senior note previously issued by MetLife, Inc. to various subsidiaries was redenominated to a new 53.7 billion Japanese yen senior note. The 53.7 billion Japanese yen senior note matures in July 2021 and bears interest at a rate per annum of 2.97%, payable semi-annually.

Credit and Committed Facilities

The committed facilities are used as collateral for certain of the Company’s affiliated reinsurance liabilities. MetLife, Inc. maintains a committed facility which had a capacity of $200 million at March 31, 2018. At March 31, 2018, MetLife, Inc. had outstanding under this facility $200 million in letters of credit, no drawdowns outstanding and no remaining availability. In addition, MetLife, Inc. is a party and/or guarantor to committed facilities of certain of its subsidiaries, which aggregated $3.3 billion at March 31, 2018.

See “— The Company — Liquidity and Capital Sources — Global Funding Sources — Credit and Committed Facilities” for further information regarding the unsecured revolving credit facility and these committed facilities.

Long-term Debt Outstanding

The following table summarizes the outstanding long-term debt of MetLife, Inc. at:

	March 31, 2018		December 31, 2017
	(In millions)
Long-term debt — unaffiliated	$	14,638	$	14,599
Long-term debt — affiliated	$	2,000	$	2,000
Junior subordinated debt securities	$	2,454	$	2,454

154

Debt and Facility Covenants

Certain of MetLife, Inc.’s debt instruments and committed facilities, as well as its unsecured revolving credit facility, contain various administrative, reporting, legal and financial covenants. MetLife, Inc. believes it was in compliance with all applicable financial covenants at March 31, 2018.

Liquidity and Capital Uses

The primary uses of liquidity of MetLife, Inc. include debt service, cash dividends on common and preferred stock, capital contributions to subsidiaries, common and preferred stock repurchases, payment of general operating expenses and acquisitions. Based on our analysis and comparison of our current and future cash inflows from the dividends we receive from subsidiaries that are permitted to be paid without prior insurance regulatory approval, our investment portfolio and other cash flows and anticipated access to the capital markets, we believe there will be sufficient liquidity and capital to enable MetLife, Inc. to make payments on debt, pay cash dividends on its common and preferred stock, contribute capital to its subsidiaries, repurchase its common stock, pay all general operating expenses and meet its cash needs.

In addition to the description of liquidity and capital uses in “— The Company — Liquidity and Capital Uses,” the following additional information is provided regarding MetLife, Inc.’s primary uses of liquidity and capital.

Affiliated Capital and Debt Transactions

During the three months endedMarch 31, 2018 and 2017, MetLife, Inc. invested a net amount of $4 million and $31 million, respectively, in various subsidiaries.

MetLife, Inc. lends funds, as necessary, to its subsidiaries and affiliates, some of which are regulated, to meet their capital requirements. MetLife, Inc. had loans to subsidiaries outstanding of $100 million at both March 31, 2018 and December 31, 2017.

Support Agreements

MetLife, Inc. is party to various capital support commitments and guarantees with certain of its subsidiaries. Under these arrangements, MetLife, Inc. has agreed to cause each such entity to meet specified capital and surplus levels or has guaranteed certain contractual obligations. See “— The Company — Liquidity and Capital Uses — Support Agreements.”

Adoption of New Accounting Pronouncements

See Note 1 of the Notes to the Interim Condensed Consolidated Financial Statements.

Future Adoption of New Accounting Pronouncements

See Note 1 of the Notes to the Interim Condensed Consolidated Financial Statements.

Non-GAAP and Other Financial Disclosures

In this report, the Company presents certain measures of its performance that are not calculated in accordance with GAAP. We believe that these non-GAAP financial measures enhance the understanding of our performance by highlighting the results of operations and the underlying profitability drivers of our business.

The following non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP:

Non-GAAP financial measures:		Comparable GAAP financial measures:
(i)	adjusted revenues	(i)	revenues
(ii)	adjusted expenses	(ii)	expenses
(iii)	adjusted earnings	(iii)	income (loss) from continuing operations, net of income tax
(iv)	adjusted earnings available to common shareholders	(iv)	net income (loss) available to MetLife, Inc.’s common shareholders

155

Reconciliations of these non-GAAP measures to the most directly comparable historical GAAP measures are included in the results of operations, see “— Results of Operations.” Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are not accessible on a forward-looking basis because we believe it is not possible without unreasonable efforts to provide other than a range of net investment gains and losses and net derivative gains and losses, which can fluctuate significantly within or outside the range and from period to period and may have a material impact on net income. These “adjusted” non-GAAP financial measures were formerly referred to as “operating” non-GAAP financial measures.

Our definitions of the various non-GAAP and other financial measures discussed in this report may differ from those used by other companies:

Adjusted earnings and related measures:

• adjusted earnings; and

• adjusted earnings available to common shareholders.

These measures are used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings is also our GAAP measure of segment performance. Adjusted earnings and other financial measures based on adjusted earnings are also the measures by which senior management’s and many other employees’ performance is evaluated for the purposes of determining their compensation under applicable compensation plans. Adjusted earnings and other financial measures based on adjusted earnings allow analysis of our performance relative to our business plan and facilitate comparisons to industry results.

Adjusted earnings is defined as adjusted revenues less adjusted expenses, net of income tax. Adjusted earnings available to common shareholders is defined as adjusted earnings less preferred stock dividends.

Adjusted revenues and adjusted expenses

These financial measures focus on our primary businesses principally by excluding the impact of market volatility, which could distort trends, and revenues and costs related to non-core products and certain entities required to be consolidated under GAAP. Also, these measures exclude results of discontinued operations under GAAP and other businesses that have been or will be sold or exited by MetLife but do not meet the discontinued operations criteria under GAAP and are referred to as divested businesses. Divested businesses also includes the net impact of transactions with exited businesses that have been eliminated in consolidation under GAAP and costs relating to businesses that have been or will be sold or exited by MetLife that do not meet the criteria to be included in results of discontinued operations under GAAP. Adjusted revenues also excludes net investment gains (losses) and net derivative gains (losses). Adjusted expenses also excludes goodwill impairments.

The following additional adjustments are made to revenues, in the line items indicated, in calculating adjusted revenues:

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

• Net investment income: (i) includes earned income on derivatives and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment, (ii) excludes post-tax adjusted earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iii) excludes certain amounts related to contractholder-directed unit-linked investments, (iv) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP and (v) includes distributions of profits from certain other limited partnerships that were previously accounted for under the cost method, but are now accounted for at estimated fair value, where the change in fair value is recognized in net investment gains (losses) for GAAP; and

• Other revenues are adjusted for settlements of foreign currency earnings hedges and excludes fees received in association with services provided under transition service agreements (“TSA fees”).

156

The following additional adjustments are made to expenses, in the line items indicated, in calculating adjusted expenses:

• Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative gains (losses), (ii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass through adjustments, (iii) benefits and hedging costs related to GMIBs (“GMIB Costs”), and (iv) market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”);

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

• Amortization of DAC and 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;

• Amortization of negative VOBA excludes amounts related to Market Value Adjustments;

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

• Other expenses excludes costs related to: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements, and (iii) acquisition, integration and other costs. Other expenses includes TSA fees.

Adjusted earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for during the measurement period under GAAP business combination accounting guidance.

The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax rate, which could differ from the Company’s effective tax rate. Additionally, the provision for income tax (expense) benefit also includes the impact related to the timing of certain tax credits, as well as certain tax reforms.

Return on equity, allocated equity and related measures:

• MetLife, Inc.’s common stockholders’ equity, excluding accumulated other comprehensive income (“AOCI”) other than foreign currency translation adjustments (“FCTA”), is defined as MetLife, Inc.’s common stockholders’ equity, excluding the net unrealized investment gains (losses) and defined benefit plans adjustment components of AOCI, net of income tax.

• Adjusted ROE is defined as adjusted earnings available to common shareholders, divided by average GAAP common stockholders’ equity.

• Adjusted ROE, excluding AOCI other than FCTA, is defined as adjusted earnings available to common shareholders divided by average GAAP common stockholders’ equity, excluding AOCI other than FCTA.

• Allocated equity is the portion of MetLife, Inc.’s common stockholders’ equity that management allocates to each of its segments and sub-segments based on local capital requirements and economic capital. See “— Economic Capital.” Allocated equity excludes the impact of AOCI other than FCTA.

The above measures represent a level of equity consistent with the view that, in the ordinary course of business, we do not plan to sell most investments for the sole purpose of realizing gains or losses. Also refer to the utilization of adjusted earnings and other financial measures based on adjusted earnings mentioned above.

157

The following additional information is relevant to an understanding of our performance results:

• The impact of changes in our foreign currency exchange rates is calculated using the average foreign currency exchange rates for the current period and is applied to each of the comparable periods (“Constant Currency Basis”).

• We sometimes refer to sales activity for various products. These sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity. Further, sales statistics for our Latin America, Asia and EMEA segments are on a Constant Currency Basis.

• Asymmetrical and non-economic accounting refers to: (i) the portion of net derivative gains (losses) on embedded derivatives attributable to the inclusion of our credit spreads in the liability valuations, (ii) hedging activity that generates net derivative gains (losses) and creates fluctuations in net income because hedge accounting cannot be achieved and the item being hedged does not a have an offsetting gain or loss recognized in earnings, (iii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass through adjustments, and (iv) impact of changes in foreign currency exchange rates on the re-measurement of foreign denominated unhedged funding agreements and financing transactions to the U.S. dollar and the re-measurement of certain liabilities from non-functional currencies to functional currencies. We believe that excluding the impact of asymmetrical and non-economic accounting from total GAAP results enhances investor understanding of our performance by disclosing how these accounting practices affect reported GAAP results.

• The Company uses a measure of free cash flow to facilitate an understanding of its ability to generate cash for reinvestment into its businesses or use in non-mandatory capital actions. The Company defines free cash flow as the sum of cash available at MetLife’s holding companies from dividends from operating subsidiaries, expenses and other net flows of the holding companies (including capital contributions to subsidiaries), and net contributions from debt to be at or below target leverage ratios. This measure of free cash flow is prior to capital actions, such as common stock dividends and repurchases, debt reduction and mergers and acquisitions. Free cash flow should not be viewed as a substitute for net cash provided by (used in) operating activities calculated in accordance with GAAP. The free cash flow ratio is typically expressed as a percentage of annual adjusted earnings available to common shareholders.

Subsequent Events

See Note 15 of the Notes to the Interim Condensed Consolidated Financial Statements.

158

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We regularly analyze our exposure to interest rate, equity market price and foreign currency exchange rate risks. As a result of that analysis, we have determined that the estimated fair values of certain assets and liabilities are materially exposed to changes in interest rates, foreign currency exchange rates and changes in the equity markets. We have exposure to market risk through our insurance operations and investment activities. We use a variety of strategies to manage interest rate, foreign currency exchange rate and equity market risk, including the use of derivatives. A description of our market risk exposures may be found under “Quantitative and Qualitative Disclosures About Market Risk” in Part II, Item 7A, of the 2017 Annual Report.

159

Item 4. Controls and Procedures

Based on the Company’s internal review, MetLife, Inc.’s Chief Executive Officer (“CEO”) and former CFO identified material weaknesses in the design and operation of its internal control over financial reporting. Management concluded that the Company has not maintained effective controls over (i) the administrative and accounting practices relating to certain RIS group annuity reserves and the timely communication and escalation of issues regarding those reserves throughout the Company, and (ii) controls over the calculation of reserves relating to variable annuity guarantees issued by a former operating joint venture in Japan and reinsured by the Company and included within MetLife Holdings. Management identified errors in reserve balances in connection with these material weaknesses. For more information on these reserve adjustments, see Note 1 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report. These material weaknesses remain unremediated as of March 31, 2018.

Evaluation of Disclosure Controls and Procedures

Management, including the CEO and current CFO, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Exchange Act as of March 31, 2018. Solely because of the material weaknesses in internal control over financial reporting reported in the 2017 Annual Report, our CEO and current CFO concluded that as of March 31, 2018, our disclosure controls and procedures were not effective.

Remediation Status of Reported Material Weaknesses

Management is executing its plan to remediate the material weaknesses and has developed Steering Committees, project teams and working groups to lead the remediation efforts. To date, management has performed the following:

RIS Group Annuity Reserves:

• Implemented immediate changes to improve its administrative and accounting procedures and search practices to identify, contact, and record responses from “unresponsive and missing” plan annuitants and to otherwise locate missing annuitants;

• Instituted additional procedures to help address the timely communication and escalation of issues throughout the Company; and

• Engaged third party advisors who have commenced procedures associated with the comprehensive examination and analysis of the facts and circumstances giving rise to the material weakness, under the supervision of MetLife, Inc.’s Chief Risk Officer.

MetLife Holdings Assumed Variable Annuity Guarantee Reserves:

• Implemented immediate changes to the data flows and input controls into the valuation process. These changes included enhanced reconciliations and analytics.

• Engaged third party advisors who have commenced procedures associated with the comprehensive examination and analysis of the facts and circumstances giving rise to the material weakness, under the supervision of the Chief Auditor.

Management believes the remediation steps outlined above will further strengthen our internal control over financial reporting. Management will test the ongoing operating effectiveness of all new controls subsequent to implementation and consider the material weaknesses remediated after the applicable controls operate effectively for a sufficient period of time. The Company will continue to evaluate, update and improve its internal control over financial reporting as management executes on its remediation plans.

Changes in Internal Control Over Financial Reporting

There were no changes to the Company’s internal control over financial reporting as defined in Exchange Act Rules 13a-15(d) and 15d-15(d) that occurred during the quarter ended March 31, 2018 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Part II — Other Information

Item 1. Legal Proceedings

See Note 14 of the Notes to the Interim Condensed Consolidated Financial Statements.

160

Item 1A. Risk Factors

The following should be read in conjunction with, and supplements and amends, the factors that may affect the Company’s business or operations described under “Risk Factors” in Part I, Item 1A, of the 2017 Annual Report, as amended or supplemented in our subsequently filed Quarterly Reports on Form 10-Q under Item 1A. Risk Factors. Other than as so amended or supplemented and as described in this Item 1A, there have been no other material changes to our risk factors from the risk factors previously disclosed in the 2017 Annual Report.

Capital-Related Risks

The following updates and replaces the similar paragraph of the risk factor entitled “Legal and Regulatory Restrictions and Uncertainty and Restrictions Under the Terms of Certain of Our Securities May Prevent Us from Repurchasing Our Stock and Paying Dividends at the Levels We Wish” included in the 2017 Annual Report.

Legal and Regulatory Restrictions and Uncertainty and Restrictions Under the Terms of Certain of Our Securities May Prevent Us from Repurchasing Our Stock and Paying Dividends at the Level We Wish

***

Trigger Events for the Restrictions on the Payment of Dividends on Our Preferred Stock and Restrictions on the Payment of Interest on Our Junior Subordinated Debentures

In addition, MetLife’s Floating Rate Non-Cumulative Preferred Stock, Series A, and 5.25% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C, and its junior subordinated debentures contain provisions that would suspend the payment of preferred stock dividends and interest on junior subordinated debentures if MetLife, Inc. fails to meet certain tests (“Trigger Events”). In such cases, and subject to the terms of the instruments, MetLife, Inc. could make payments up to the amount of net proceeds from sales of (i) common stock during the 90 days preceding the dividend declaration date or (ii) common stock or certain kinds of warrants to purchase common stock generally during the 180 days prior to the interest payment date (the “New Equity Proceeds”). If the New Equity Proceeds were insufficient to make such payments, the “dividend stopper” provisions would come into effect and we would be unable to repurchase or pay dividends on our common stock.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

Purchases of MetLife, Inc. common stock made by or on behalf of MetLife, Inc. or its affiliates during the quarter ended March 31, 2018 are set forth below:

Period	Total Number of Shares Purchased (1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2)
January 1 — January 31, 2018	7,299,195	$	52.29	7,297,248	$	1,380,342,336
February 1 — February 28, 2018	4,104,418	$	47.18	4,104,418	$	1,186,692,878
March 1 — March 31, 2018	10,003,732	$	46.62	10,003,661	$	720,341,388

__________________

(1) Except for the foregoing, there were no shares of MetLife, Inc. common stock repurchased by MetLife, Inc. During the periods January 1 through January 31, 2018, February 1 through February 28, 2018 and March 1 through March 31, 2018, separate account index funds purchased 1,947 shares, 0 shares and 71 shares, respectively, of MetLife, Inc. common stock on the open market in nondiscretionary transactions.

(2) On November 1, 2017, MetLife, Inc. announced that its Board of Directors authorized $2.0 billion of common stock repurchases. At March 31, 2018, MetLife, Inc. had $720 million of common stock repurchases remaining under this authorization. For more information on common stock repurchases, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — The Company — Liquidity and Capital Uses — Common Stock Repurchases,” and Note 15 of the Notes to the Interim Condensed Consolidated Financial Statements. See also “Risk Factors — Capital-Related Risks — Legal and Regulatory Restrictions and Uncertainty and Restrictions Under the Terms of Certain of Our Securities May Prevent Us from Repurchasing Our Stock and Paying Dividends at the Level We Wish” and Note 15 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report.

161

Item 6. Exhibits

(Note Regarding Reliance on Statements in Our Contracts:In reviewing the agreements included as exhibits to this Quarterly Report on Form 10-Q, please remember that they are included to provide you with information regarding their terms and are not intended to provide any other factual or disclosure information about MetLife, Inc., its subsidiaries or affiliates, or the other parties to the agreements. The agreements contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and (i) 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; (ii) 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; (iii) may apply standards of materiality in a way that is different from what may be viewed as material to investors; and (iv) 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. Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time. Additional information about MetLife, Inc., its subsidiaries and affiliates may be found elsewhere in this Quarterly Report on Form 10-Q and MetLife, Inc.’s other public filings, which are available without charge through the U.S. Securities and Exchange Commission website at www.sec.gov.)

		Incorporated by Reference
Exhibit No.	Description	Form	File Number	Exhibit	Filing Date	Filed or Furnished Herewith
3.1	Amended and Restated Certificate of Incorporation of MetLife, Inc.	10-K	001-15787	3.1	March 1, 2017
3.2	Certificate of Designation, Preferences and Rights of Series A Junior Participating Preferred Stock of MetLife, Inc., filed with the Secretary of State of Delaware on April 7, 2000.	10-K	001-15787	3.2	March 1, 2017
3.3	Certificate of Designations of Floating Rate Non-Cumulative Preferred Stock, Series A, of MetLife, Inc., filed with the Secretary of State of Delaware on June 10, 2005.	10-K	001-15787	3.3	March 1, 2017
3.4	Certificate of Amendment of Amended and Restated Certificate of Incorporation of MetLife, Inc., dated April 29, 2011.	10-K	001-15787	3.4	March 1, 2017
3.5	Certificate of Retirement of Series B Contingent Convertible Junior Participating Non-Cumulative Perpetual Preferred Stock of MetLife, Inc., filed with the Secretary of State of Delaware on November 5, 2013.	10-Q	001-15787	3.6	November 7, 2013
3.6	Certificate of Amendment of Amended and Restated Certificate of Incorporation of MetLife, Inc., dated April 29, 2015.	8-K	001-15787	3.1	April 30, 2015
3.7	Certificate of Designations of 5.250% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C, of MetLife, Inc., filed with the Secretary of State of Delaware on May 28, 2015.	8-K	001-15787	3.1	May 28, 2015
3.8	Certificate of Elimination of 6.500% Non-Cumulative Preferred Stock, Series B, of MetLife, Inc., filed with the Secretary of State of Delaware on November 3, 2015.	10-Q	001-15787	3.7	November 5, 2015
3.9	Certificate of Amendment of Amended and Restated Certificate of Incorporation of MetLife, Inc., dated October 23, 2017.	8-K	001-15787	3.1	October 24, 2017
3.10	Certificate of Designations of 5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D, of MetLife, Inc., filed with the Secretary of State of Delaware on March 21, 2018.	8-K	001-15787	3.1	March 22, 2018
10.1	Form of Performance Share Agreement, effective February 27, 2018.*	8-K	001-15787	10.1	February 20, 2018
10.2	Form of Performance Unit Agreement, effective February 27, 2018.*	8-K	001-15787	10.2	February 20, 2018
10.3	Form of Restricted Stock Unit Agreement (Ratable Period of Restriction Ends in Thirds), effective February 27, 2018.*	8-K	001-15787	10.3	February 20, 2018

162

		Incorporated by Reference
Exhibit No.	Description	Form	File Number	Exhibit	Filing Date	Filed or Furnished Herewith
10.4	Form of Restricted Stock Unit Agreement (Three-Year “Cliff” Period of Restriction), effective February 27, 2018.*	8-K	001-15787	10.4	February 20, 2018
10.5	Form of Restricted Unit Agreement (Ratable Period of Restriction Ends in Thirds), effective February 27, 2018.*	8-K	001-15787	10.5	February 20, 2018
10.6	Form of Restricted Unit Agreement (Three-Year “Cliff” Period of Restriction), effective February 27, 2018.*	8-K	001-15787	10.6	February 20, 2018
10.7	Award Agreement Supplement, effective February 27, 2018.*	8-K	001-15787	10.7	February 20, 2018
10.8	Amendment Number 5 to the Metropolitan Life Auxiliary Savings and Investment Plan (Amended and Restated January 1, 2015).*					X
10.9	Amendment Number 6 to the MetLife Auxiliary Pension Plan (as amended and restated, effective January 1, 2008), dated March 5, 2018 (effective March 15, 2018).*					X
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.					X
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.					X
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.					X
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.					X
101.INS	XBRL Instance Document.					X
101.SCH	XBRL Taxonomy Extension Schema Document.					X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.					X
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.					X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.					X
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.					X

______________

*Indicates management contracts or compensatory plans or arrangements.

163

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

METLIFE, INC.
By:	/s/ William O’Donnell
	Name:  William O’Donnell Title:    Executive Vice President              and Chief Accounting Officer              (Authorized Signatory and Principal               Accounting Officer)

Date: May 7, 2018

164

EX-10.8

Exhibit 10.8

AMENDMENT NUMBER 5 TO THE
METROPOLITAN LIFE AUXILIARY SAVINGS AND INVESTMENT PLAN
(RESTATED JANUARY 1, 2015)

The Metropolitan Life Auxiliary Savings and Investment Plan (the “Plan”) is hereby amended, effective as of March 15, 2018, as follows:

Section 2.14 shall be replaced with the following:

“Plan” means the MetLife Auxiliary Match Plan.

IN WITNESS WHEREOF, Metropolitan Life Insurance Company has caused this Amendment to be executed on the 5th day of March, 2018, by the duly authorized individual below.

METROPOLITAN LIFE INSURANCE COMPANY

By:     /s/ Andrew J. Bernstein        

Print Name:     Andrew Bernstein        

Title:         Vice President         

Witnessed by:     /s/ Danielle Hodorowski    

EX-10.9

Exhibit 10.9

AMENDMENT NUMBER 6 TO THE
MET LIFE AUXILIARY PENSION PLAN
(RESTATED JANUARY 1, 2008)

The MetLife Auxiliary Pension Plan (the “Plan”) is hereby amended, effective as of March 15, 2018, by replacing the preamble to the Plan with the following:

“Metropolitan Life Insurance Company ("Company") hereby amends and restates the

MetLife Auxiliary Pension Plan ("Plan") effective June 30, 2006. Effective March 15, 2018, the Plan is renamed the MetLife Auxiliary Retirement Plan.

Part I

Part I of this Plan document contains the provisions of the Plan that govern 409A

Benefits as defined in Article 4.l(a) of Part I. All references to "409A" or "Section

409A" in this Plan are references to Section 409A of the Internal Revenue Code and the

regulations thereunder.”

IN WITNESS WHEREOF, the Company has caused this Amendment to be adopted in its name and behalf this 5th day of March,2018, by its officer thereunto duly authorized.

METROPOLITAN LIFE INSURANCE COMPANY

By:___/s/ Andrew J. Bernstein___________________

Andrew J. Bernstein

Administrator

ATTEST:__/s/ Danielle Hodorowski_______________

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Steven A. Kandarian, certify that:

1. I have reviewed this quarterly report on Form 10-Q of MetLife, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:     May 7, 2018

/s/ Steven A. Kandarian

Steven A. Kandarian

Chairman of the Board, President and

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, John McCallion, certify that:

1. I have reviewed this quarterly report on Form 10-Q of MetLife, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:     May 7, 2018

/s/ John McCallion

John McCallion

Executive Vice President and

Chief Financial Officer

EX-32.1

Exhibit 32.1

SECTION 906 CERTIFICATION

CERTIFICATION PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE

UNITED STATES CODE

I, Steven A. Kandarian, certify that (i) MetLife, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 (the “Form 10-Q”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of MetLife, Inc.

Date:     May 7, 2018

/s/ Steven A. Kandarian

Steven A. Kandarian

Chairman of the Board, President and

Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to MetLife, Inc. and will be retained by MetLife, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

SECTION 906 CERTIFICATION

CERTIFICATION PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE

UNITED STATES CODE

I, John McCallion, certify that (i) MetLife, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 (the “Form 10-Q”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of MetLife, Inc.

Date:     May 7, 2018

/s/ John McCallion

John McCallion

Executive Vice President and

Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to MetLife, Inc. and will be retained by MetLife, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - USD ($) $ in Billions	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018	Jun. 30, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	METLIFE INC
Entity Central Index Key	0001099219
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 52.1
Entity Common Stock, Shares Outstanding		1,016,530,764

XML

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Investments:
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $287,099 and $286,069, respectively)	$ 304,711	$ 308,931
Equity securities, at estimated fair value	1,544	2,513
Contractholder-directed equity securities and fair value option securities, at estimated fair value (includes $6 and $6, respectively, relating to variable interest entities)	16,444	16,745
Mortgage loans (net of valuation allowances of $327 and $314, respectively; includes $438 and $520, respectively, under the fair value option)	71,055	68,731
Policy loans	9,744	9,669
Real estate and real estate joint ventures (includes $699 and $25, respectively, of real estate held-for-sale)	9,862	9,637
Other limited partnership interests	5,876	5,708
Short-term investments, principally at estimated fair value	5,121	4,870
Other invested assets (includes $123 and $125, respectively, relating to variable interest entities)	17,486	17,263
Total investments	441,843	444,067
Cash and cash equivalents, principally at estimated fair value (includes $7 and $12, respectively, relating to variable interest entities)	13,927	12,701
Accrued investment income	3,638	3,524
Premiums, reinsurance and other receivables (includes $2 and $3, respectively, relating to variable interest entities)	19,368	18,423
Deferred policy acquisition costs and value of business acquired	19,330	18,419
Goodwill	9,733	9,590
Other assets (includes $3 and $2, respectively, relating to variable interest entities)	8,387	8,167
Separate account assets	196,358	205,001
Total assets	712,584	719,892
Liabilities
Future policy benefits	180,348	177,974
Policyholder account balances	184,289	182,518
Other policy-related balances	16,023	15,515
Policyholder dividends payable	672	682
Policyholder dividend obligation	1,277	2,121
Payables for collateral under securities loaned and other transactions	26,151	25,723
Short-term debt	526	477
Long-term debt (includes $5 and $6, respectively, at estimated fair value, relating to variable interest entities)	15,707	15,686
Collateral financing arrangement	1,108	1,121
Junior subordinated debt securities	3,145	3,144
Current income tax payable	155	311
Deferred income tax liability	6,304	6,767
Other liabilities (includes $2 and $3, respectively, relating to variable interest entities)	24,013	23,982
Separate account liabilities	196,358	205,001
Total liabilities	656,076	661,022
Contingencies, Commitments and Guarantees (Note 14)
MetLife, Inc.’s stockholders’ equity:
Preferred stock, par value $0.01 per share; $2,600 and $2,100 aggregate liquidation preference, respectively	0	0
Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,170,644,215 and 1,168,710,101 shares issued, respectively; 1,024,117,183 and 1,043,588,396 shares outstanding, respectively	12	12
Additional paid-in capital	31,653	31,111
Retained earnings	26,453	26,527
Treasury stock, at cost; 146,527,032 and 125,121,705 shares, respectively	(7,442)	(6,401)
Accumulated other comprehensive income (loss)	5,634	7,427
Total MetLife, Inc.’s stockholders’ equity	56,310	58,676
Noncontrolling interests	198	194
Total equity	56,508	58,870
Total liabilities and equity	$ 712,584	$ 719,892

XML

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Assets
Amortized cost of fixed maturity securities available-for-sale	$ 287,099	$ 286,069
Contractholder-directed equity securities and fair value option securities relating to variable interest entities	16,444	16,745
Mortgage loans valuation allowances	327	314
Mortgage Loans on Real Estate	71,055	68,731
Real estate held-for-sale	699	25
Other invested assets relating to variable interest entities	17,486	17,263
Cash and cash equivalents relating to variable interest entities	13,927	12,701
Premiums, reinsurance and other receivables relating to variable interest entities	19,368	18,423
Other assets relating to variable interest entities	8,387	8,167
Liabilities
Long-term debt, at estimated fair value, relating to variable interest entities	15,707	15,686
Other liabilities relating to variable interest entities	$ 24,013	$ 23,982
MetLife, Inc.’s stockholders’ equity:
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, aggregate liquidation preference	2,600	2,100
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	3,000,000,000	3,000,000,000
Common stock, shares issued	1,170,644,215	1,168,710,101
Common stock, shares outstanding	1,024,117,183	1,043,588,396
Treasury stock, shares	146,527,032	125,121,705
Residential mortgage loans - FVO
Assets
Mortgage Loans on Real Estate	$ 438	$ 520
Variable interest entities
Assets
Contractholder-directed equity securities and fair value option securities relating to variable interest entities	6	6
Other invested assets relating to variable interest entities	123	125
Cash and cash equivalents relating to variable interest entities	7	12
Premiums, reinsurance and other receivables relating to variable interest entities	2	3
Other assets relating to variable interest entities	3	2
Liabilities
Long-term debt, at estimated fair value, relating to variable interest entities	5	6
Other liabilities relating to variable interest entities	$ 2	$ 3

XML

Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues
Premiums	$ 9,178	$ 8,965
Universal life and investment-type product policy fees	1,392	1,360
Net investment income	3,745	4,421
Other revenues	474	342
Net investment gains (losses)	(333)	88
Net derivative gains (losses)	349	(212)
Total revenues	14,805	14,964
Expenses
Policyholder benefits and claims	8,718	8,863
Interest credited to policyholder account balances	769	1,451
Policyholder dividends	297	310
Other expenses	3,365	3,268
Total expenses	13,149	13,892
Income (loss) from continuing operations before provision for income tax	1,656	1,072
Provision for income tax expense (benefit)	399	120
Income (loss) from continuing operations, net of income tax	1,257	952
Income (loss) from discontinued operations, net of income tax	0	(76)
Net income (loss)	1,257	876
Less: Net income (loss) attributable to noncontrolling interests	4	3
Net income (loss) attributable to MetLife, Inc.	1,253	873
Less: Preferred stock dividends	6	6
Net income (loss) available to MetLife, Inc.’s common shareholders	1,247	867
Comprehensive income (loss)	(1,448)	1,907
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of income tax	4	4
Comprehensive income (loss) attributable to MetLife, Inc.	$ (1,452)	$ 1,903
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc's common shareholders per common share:
Basic	$ 1.20	$ 0.87
Diluted	1.19	0.86
Net income (loss) available to MetLife, Inc.’s common shareholders per common share:
Basic	1.20	0.80
Diluted	1.19	0.79
Cash dividends declared per common share	$ 0.400	$ 0.400

XML

Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock at Cost	Accumulated Other Comprehensive Income (Loss)	Total MetLife, Inc.'s Stockholders' Equity	Noncontrolling Interests
Beginning Balance (Scenario, Previously Reported) at Dec. 31, 2016	$ 67,480	$ 0	$ 12	$ 30,944	$ 34,480	$ (3,474)	$ 5,347	$ 67,309	$ 171
Beginning Balance (Restatement Adjustment)	222	0	0	0	203	0	19	222	0
Beginning Balance at Dec. 31, 2016	67,702	0	12	30,944	34,683	(3,474)	5,366	67,531	171
Treasury stock acquired in connection with share repurchases	(858)					(858)		(858)
Stock-based compensation	46			46				46
Dividends on preferred stock	(6)				(6)			(6)
Dividends on common stock	(437)				(437)			(437)
Change in equity of noncontrolling interests	4							0	4
Net income (loss)	876				873			873	3
Other comprehensive income (loss), net of income tax | Scenario, Previously Reported							1,049
Other comprehensive income (loss), net of income tax | Restatement Adjustment							(19)
Other comprehensive income (loss), net of income tax	1,031						1,030	1,030	1
Ending Balance (Scenario, Previously Reported) at Mar. 31, 2017	68,108
Ending Balance (Restatement Adjustment)	250
Ending Balance at Mar. 31, 2017	68,358	0	12	30,990	35,113	(4,332)	6,396	68,179	179
Cumulative effects of changes in accounting principles, net of income tax (Note 1)	7	0	0	0	(905)	0	912	7	0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	58,877	0	12	31,111	25,622	(6,401)	8,339	58,683	194
Beginning Balance at Dec. 31, 2017	58,870	0	12	31,111	26,527	(6,401)	7,427	58,676	194
Preferred stock issuance	494	0		494				494
Treasury stock acquired in connection with share repurchases	(1,041)					(1,041)		(1,041)
Stock-based compensation	48			48				48
Dividends on preferred stock	(6)				(6)			(6)
Dividends on common stock	(416)				(416)			(416)
Change in equity of noncontrolling interests	0							0	0
Net income (loss)	1,257				1,253			1,253	4
Other comprehensive income (loss), net of income tax	(2,705)						(2,705)	(2,705)	0
Ending Balance at Mar. 31, 2018	$ 56,508	$ 0	$ 12	$ 31,653	$ 26,453	$ (7,442)	$ 5,634	$ 56,310	$ 198

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Cash Flows [Abstract]
Net cash provided by (used in) operating activities	$ 1,296	$ 2,098
Cash flows from investing activities
Sales, maturities and repayments of fixed maturity securities	26,053	23,086
Sales, maturities and repayments of equity securities	187	188
Sales, maturities and repayments of mortgage loans	2,076	1,776
Sales, maturities and repayments of real estate and real estate joint ventures	128	39
Sales, maturities and repayments of other limited partnership interests	139	461
Purchases of fixed maturity securities	(24,220)	(22,484)
Purchases of equity securities	(51)	(299)
Purchases of mortgage loans	(4,024)	(3,430)
Purchases of real estate and real estate joint ventures	(242)	(341)
Purchases of other limited partnership interests	(260)	(362)
Cash received in connection with freestanding derivatives	1,974	2,515
Cash paid in connection with freestanding derivatives	(2,192)	(3,372)
Net change in policy loans	(25)	(20)
Net change in short-term investments	(160)	(1,892)
Net change in other invested assets	46	(43)
Other, net	86	(98)
Net cash provided by (used in) investing activities	(485)	(4,276)
Cash flows from financing activities
Policyholder account balances: Deposits	24,861	21,271
Policyholder account balances: Withdrawals	(24,447)	(19,100)
Net change in payables for collateral under securities loaned and other transactions	667	391
Long-term debt issued	14	0
Long-term debt repaid	(32)	(4)
Collateral financing arrangements repaid	(13)	(12)
Financing element on certain derivative instruments and other derivative related transactions, net	37	188
Treasury stock acquired in connection with share repurchases	(1,041)	(858)
Preferred stock issued, net of issuance costs	494	0
Dividends on preferred stock	(6)	(6)
Dividends on common stock	(416)	(437)
Other, net	100	66
Net cash provided by (used in) financing activities	218	1,499
Effect of change in foreign currency exchange rates on cash and cash equivalents balances	197	213
Change in cash and cash equivalents	1,226	(466)
Cash and cash equivalents, beginning of period	12,701	17,877
Cash and cash equivalents, end of period	13,927	17,411
Cash and cash equivalents, of disposed subsidiary, beginning of period	0	5,226
Cash and cash equivalents, of disposed subsidiary, end of period	0	5,810
Cash and cash equivalents, from continuing operations, beginning of period	12,701	12,651
Cash and cash equivalents, from continuing operations, end of period	13,927	11,601
Supplemental disclosures of cash flow information:
Net cash paid for Interest	243	255
Net cash paid (received) for Income tax	$ 146	$ 109

XML

Business, Basis of Presentation and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business, Basis of Presentation and Summary of Significant Accounting Policies

1. Business, Basis of Presentation and Summary of Significant Accounting Policies

Business

“MetLife” and the “Company” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its subsidiaries and affiliates. MetLife is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management. MetLife is organized into five segments: U.S.; Asia; Latin America; Europe, the Middle East and Africa (“EMEA”); and MetLife Holdings.

Basis of Presentation

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates.

Consolidation

The accompanying interim condensed consolidated financial statements include the accounts of MetLife, Inc. and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated.

The Company uses the equity method of accounting for equity securities when it has significant influence or at least 20% interest and for real estate joint ventures and other limited partnership interests (“investees”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. Subsequent to the adoption of guidance relating to the recognition and measurement of financial instruments on January 1, 2018, the Company accounts for interests in unconsolidated entities that are not accounted for under the equity method, at estimated fair value. Such investments were previously accounted for under the cost method of accounting. See “— Adoption of New Accounting Pronouncements.”

Discontinued Operations

The results of operations of a component of the Company that has either been disposed of or is classified as held-for-sale are reported in discontinued operations if certain criteria are met. A disposal of a component is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results.

On August 4, 2017, MetLife, Inc. completed the separation of Brighthouse Financial, Inc. and its subsidiaries (“Brighthouse”) through a distribution of 96,776,670 shares of Brighthouse Financial, Inc. common stock to the MetLife, Inc. common shareholders (the “Separation”). The results of Brighthouse are reflected in MetLife, Inc.’s interim condensed consolidated financial statements as discontinued operations and, therefore, are presented as income (loss) from discontinued operations on the consolidated statements of operations and comprehensive income (loss). Prior period results have been revised to reflect discontinued operations. Intercompany transactions between the Company and Brighthouse prior to the Separation have been eliminated. Transactions between the Company and Brighthouse after the Separation are reflected in continuing operations for the Company. See Note 3 for information on discontinued operations and transactions with Brighthouse.

Reclassifications

Certain amounts in the prior year periods’ interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform to the 2018 presentation as discussed throughout the Notes to the Interim Condensed Consolidated Financial Statements.

Revisions

As discussed in Note 1 of the Notes to the Consolidated Financial Statements included in MetLife, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Annual Report”), the Company made adjustments for group annuity reserves and assumed variable annuity guarantee reserves for which amounts previously reported have been immaterially restated. In addition, the Company has corrected other unrelated immaterial errors which were previously recorded in the periods the Company identified them.

A summary of the revisions to prior period net income (loss) available to MetLife, Inc.’s common shareholders is shown in the table below:

	Three Months Ended March 31,
	2017
	(In millions)
Assumed variable annuity guarantee reserves	$	14
Group annuity reserves	(9		)
Other revisions to continuing operations, net	63
Impact to income (loss) from continuing operations before provision for income tax	68
Provision for income tax expense (benefit)	24
Impact to income (loss) from continuing operations, net of income tax	44
Other revisions to discontinued operations, net of income tax	3
Impact to net income (loss) available to MetLife, Inc.’s common shareholders	$	47

The impact of the revisions is shown in the tables below:

	Three Months Ended March 31,
	2017
Interim Condensed Consolidated Statements of Operations  and Comprehensive Income (Loss)	As Previously Reported			Discontinued Operations (1)			Revisions			As Revised
	(In millions, except per share data)
Revenues
Other net investment gains (losses)	$	8		$	55		$	25		$	88
Net investment gains (losses)	$	8		$	55		$	25		$	88
Net derivatives gains (losses)	$	(926	)	$	700		$	14		$	(212	)
Total revenues	$	16,269		$	(1,344	)	$	39		$	14,964
Expenses
Policyholder benefits and claims	$	9,859		$	(1,002	)	$	6		$	8,863
Other expenses	$	3,564		$	(261	)	$	(35	)	$	3,268
Total expenses	$	15,452		$	(1,531	)	$	(29	)	$	13,892
Income (loss) from continuing operations before provision for income tax	$	817		$	187		$	68		$	1,072
Provision for income tax expense (benefit)	$	(12	)	$	108		$	24		$	120
Income (loss) from continuing operations, net of income tax	$	829		$	79		$	44		$	952
Income (loss) from discontinued operations, net of income tax	$	—		$	(79	)	$	3		$	(76	)
Net income (loss)	$	829		$	—		$	47		$	876
Net income (loss) attributable to MetLife, Inc.	$	826		$	—		$	47		$	873
Net income (loss) available to MetLife, Inc.’s common shareholders	$	820		$	—		$	47		$	867
Comprehensive income (loss)	$	1,879		$	—		$	28		$	1,907
Comprehensive income (loss) attributable to MetLife, Inc.	$	1,875		$	—		$	28		$	1,903
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders:
Basic	$	0.75		$	0.07		$	0.05		$	0.87
Diluted	$	0.75		$	0.07		$	0.04		$	0.86
Net income (loss) available to MetLife, Inc.’s common shareholders per common share:
Basic	$	0.75		$	—		$	0.05		$	0.80
Diluted	$	0.75		$	—		$	0.04		$	0.79

__________________

(1) See Note 3 for additional information on discontinued operations. Revisions include $5 million and $2 million of net investment gains (losses) and provision for income tax expense (benefit), respectively, related to discontinued operations.

Interim Condensed Consolidated Statements of Equity	As Previously Reported		Revisions			As Revised
	(In millions)
Retained Earnings
Balance at December 31, 2016	$	34,480	$	203		$	34,683
Net income (loss)	$	826	$	47		$	873
Balance at March 31, 2017	$	34,863	$	250		$	35,113
Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2016	$	5,347	$	19		$	5,366
Other comprehensive income (loss), net of income tax	$	1,049	$	(19	)	$	1,030
Balance at March 31, 2017	$	6,396	$	—		$	6,396
Total MetLife, Inc.’s Stockholders’ Equity
Balance at December 31, 2016	$	67,309	$	222		$	67,531
Balance at March 31, 2017	$	67,929	$	250		$	68,179
Total Equity
Balance at December 31, 2016	$	67,480	$	222		$	67,702
Balance at March 31, 2017	$	68,108	$	250		$	68,358

The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2017 consolidated balance sheet data was derived from audited consolidated financial statements included in the 2017 Annual Report, which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2017 Annual Report.

Adoption of New Accounting Pronouncements

Effective January 1, 2018, the Company early adopted guidance relating to income taxes. The new guidance was applied in the period of adoption. Current GAAP guidance requires that the effect of a change in tax laws or rates on deferred tax liabilities or assets to be included in income from continuing operations in the reporting period that includes the enactment date, even if the related income tax effects were originally charged or credited directly to accumulated other comprehensive income (“AOCI”). The Company’s accounting policy for the release of stranded tax effects in AOCI is on an aggregate portfolio basis. The new guidance allows a reclassification of AOCI to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (“U.S. Tax Reform”). Due to U.S. Tax Reform and the change in corporate tax rates, at December 22, 2017, the Company reported stranded tax effects in AOCI related to unrealized gains and losses on available-for-sale (“AFS”) securities, cumulative foreign translation adjustments and deferred costs on pension benefit plans. With the adoption of the guidance, the Company released these stranded tax effects in AOCI resulting in a decrease to retained earnings as of January 1, 2018 of $1.2 billion with a corresponding increase to AOCI.

Effective January 1, 2018, the Company prospectively adopted guidance relating to stock compensation. The new guidance includes guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Accounting Standards Codification (“ASC”) Topic 718,Compensation - Stock Compensation. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

Effective January 1, 2018 the Company retrospectively adopted guidance on the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires that an employer that offers to its employees defined benefit pension or other postretirement benefit plans report the service cost component in the same line item or items as other compensation costs. The other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item is not used, the line item used in the income statement to present the other components of net periodic benefit cost must be disclosed. In addition, the guidance allows only the service cost component to be eligible for capitalization when applicable. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to de-recognition of nonfinancial assets. The new guidance clarifies the scope and accounting of a financial asset that meets the definition of an “in-substance nonfinancial asset” and defines the term, “in-substance nonfinancial asset.” The new guidance also adds guidance for partial sales of nonfinancial assets. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

Effective January 1, 2018, the Company retrospectively adopted guidance relating to restricted cash. The new guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As a result, the new guidance requires that amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance does not provide a definition of restricted cash or restricted cash equivalents. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to tax accounting for intra-entity transfers of assets. Prior guidance prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. The new guidance requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

Effective January 1, 2018, the Company retrospectively adopted guidance relating to cash flow statement presentation. The new guidance addresses diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to recognition and measurement of financial instruments. The guidance changes the current accounting guidance related to (i) the classification and measurement of certain equity investments, (ii) the presentation of changes in the fair value of financial liabilities measured under the fair value option (“FVO”) that are due to instrument-specific credit risk, and (iii) certain disclosures associated with the fair value of financial instruments. Effective January 1, 2018, there will no longer be a requirement to assess equity securities for impairment since such securities will be measured at fair value through net income. Additionally, there will no longer be a requirement to assess equity securities for embedded derivatives requiring bifurcation. The adoption of this guidance resulted in a $328 million, net of income tax, increase to retained earnings largely offset by a decrease to AOCI that was primarily attributable to $1.7 billion of equity securities previously classified and measured as equity securities AFS. At December 31, 2017, equity securities of $16.0 billion primarily associated with contractholder-directed investments are accounted for using the FVO and therefore were unaffected by the new guidance. The Company has included the required disclosures related to equity securities held at March 31, 2018 within Note 6.

Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to revenue recognition. The new guidance supersedes nearly all existing revenue recognition guidance under U.S. GAAP. However, it does not impact the accounting for insurance and investment contracts within the scope of ASC Topic 944,Financial Services - Insurance, leases, financial instruments and certain guarantees. For those contracts that are impacted, the new guidance requires an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled, in exchange for those goods or services. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

For the three months ended March 31, 2018, the Company identified $322 million of revenue streams within the scope of the guidance that are all included within other revenues on the interim condensed consolidated statements of operations and comprehensive income (loss). Such amount primarily consists of prepaid legal plans and administrative-only contracts within the U.S. segment of $129 million, distribution and administrative services fees within the MetLife Holdings segment of $58 million and fee-based investment management services within Corporate & Other of $71 million.

Substantially all of the revenue from these services is recognized over time as the applicable services are provided or are made available to the customers and control is transferred continuously. The consideration received for these services is variable and constrained to the amount not probable of a significant revenue reversal.

Other

Effective January 16, 2018, the London Clearing House (“LCH”) amended its rulebook, resulting in the characterization of variation margin transfers as settlement payments, as opposed to adjustments to collateral. These amendments impacted the accounting treatment of the Company’s centrally cleared derivatives, for which the LCH serves as the central clearing party. As of the effective date, the application of the amended rulebook reduced gross derivative assets by $369 million, gross derivative liabilities by $203 million, accrued investment income by $14 million, collateral receivables recorded within premiums, reinsurance and other receivables by $184 million, and collateral payables recorded within payables for collateral under securities loaned and other transactions by $365 million. The application of the amended rulebook increased accrued investment expense recorded within other liabilities by $1 million.

Future Adoption of New Accounting Pronouncements

In August 2017, the Financial Accounting Standards Board (“FASB”) issued new guidance on hedging activities (Accounting Standards Update (“ASU”) 2017-12,Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities). The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years and should be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings. Early adoption is permitted. The new guidance simplifies the application of hedge accounting in certain situations and amends the hedge accounting model to enable entities to better portray the economics of their risk management activities in their financial statements. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

In March 2017, the FASB issued new guidance on purchased callable debt securities (ASU 2017-08, Receivables -Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities). The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years and should be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings. Early adoption is permitted. The ASU shortens the amortization period for certain callable debt securities held at a premium and requires the premium to be amortized to the earliest call date. However, the new guidance does not require an accounting change for securities held at a discount whose discount continues to be amortized to maturity. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

In January 2017, the FASB issued new guidance on goodwill impairment (ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment). The new guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The new guidance simplifies the current two-step goodwill impairment test by eliminating Step 2 of the test. See Note 11 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for a description of the two-step test. The new guidance requires a one-step impairment test in which an entity compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any. The Company expects the adoption of this new guidance will reduce the complexity involved with the evaluation of goodwill for impairment. The impact of the new guidance will depend on the outcomes of future goodwill impairment tests.

In June 2016, the FASB issued new guidance on measurement of credit losses on financial instruments (ASU 2016-13,Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments). The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This ASU replaces the incurred loss impairment methodology with one that reflects expected credit losses. The measurement of expected credit losses should be based on historical loss information, current conditions, and reasonable and supportable forecasts. The new guidance requires that an other-than-temporary impairment (“OTTI”)on a debt security will be recognized as an allowance going forward, such that improvements in expected future cash flows after an impairment will no longer be reflected as a prospective yield adjustment through net investment income, but rather a reversal of the previous impairment and recognized through realized investment gains and losses. The guidance also requires enhanced disclosures. The Company has assessed the asset classes impacted by the new guidance and is currently assessing the accounting and reporting system changes that will be required to comply with the new guidance. The Company believes that the most significant impact upon adoption will be to its mortgage loan investments. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

In February 2016, the FASB issued new guidance on leasing transactions (ASU 2016-02,Leases - Topic 842). The new guidance is effective for the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and requires a modified retrospective transition approach. Early adoption is permitted. The new guidance requires a lessee to recognize assets and liabilities for leases with lease terms of more than 12 months. Leases would be classified as finance or operating leases and both types of leases will be recognized on the balance sheet. Lessor accounting will remain largely unchanged from current guidance except for certain targeted changes. The new guidance will also require new qualitative and quantitative disclosures. The Company’s implementation efforts are primarily focused on the review of its existing lease contracts, identification of other contracts that may fall under the scope of the new guidance, and performing a gap analysis on the current state of lease-related activities compared with the future state of lease-related activities. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

XML

Segment Information

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Segment Information

2. Segment Information

MetLife is organized into five segments: U.S.; Asia; Latin America; EMEA; and MetLife Holdings. In addition, the Company reports certain of its results of operations in Corporate & Other.

U.S.

The U.S. segment offers a broad range of protection products and services aimed at serving the financial needs of customers throughout their lives. These products are sold to corporations and their respective employees, other institutions and their respective members, as well as individuals. The U.S. segment is organized into three businesses: Group Benefits, Retirement and Income Solutions and Property & Casualty.

• The Group Benefits business offers insurance products and services which include life, dental, group short- and long-term disability, individual disability, accidental death and dismemberment, vision and accident & health coverages, as well as prepaid legal plans. This business also sells administrative services-only arrangements to some employers.

• The Retirement and Income Solutions business offers a broad range of annuity and investment products, including stable value and pension risk transfer products, institutional income annuities, tort settlements, capital market investment products, as well as postretirement benefits and company-, bank- or trust-owned life insurance.

• The Property & Casualty business offers personal and commercial lines of property and casualty insurance, including private passenger automobile, homeowners’ and personal excess liability insurance. In addition, Property & Casualty offers small business owners property, liability and business interruption insurance.

Asia

The Asia segment offers a broad range of products to both individuals and corporations, as well as other institutions and their respective employees, which include whole and term life, endowments, universal and variable life, accident & health insurance and fixed and variable annuities.

Latin America

The Latin America segment offers a broad range of products to both individuals and corporations, as well as other institutions and their respective employees, which include life insurance, retirement and savings products, accident & health insurance and credit insurance.

EMEA

The EMEA segment offers a broad range of products to both individuals and corporations, as well as other institutions and their respective employees, which include life insurance, accident & health insurance, retirement and savings products and credit insurance.

MetLife Holdings

The MetLife Holdings segment consists of operations relating to products and businesses no longer actively marketed by the Company in the United States, such as variable, universal, term and whole life insurance, variable, fixed and index-linked annuities, long-term care insurance, as well as the assumed variable annuity guarantees from the Company’s former operating joint venture in Japan.

Corporate & Other

Corporate & Other contains the excess capital, as well as certain charges and activities, not allocated to the segments, including external integration and disposition costs, internal resource costs for associates committed to acquisitions and dispositions, enterprise-wide strategic initiative restructuring charges and various start-up businesses (including the investment management business through which the Company offers fee-based investment management services to institutional clients). Additionally, Corporate & Other includes run-off businesses such as the direct to consumer portion of the U.S. Direct business. Corporate & Other also includes interest expense related to the majority of the Company’s outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues. In addition, Corporate & Other includes the elimination of intersegment amounts, which generally relate to affiliated reinsurance and intersegment loans, which bear interest rates commensurate with related borrowings.

Financial Measures and Segment Accounting Policies

Adjusted earnings is used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings is also the Company’s GAAP measure of segment performance and is reported below. Adjusted earnings should not be viewed as a substitute for income (loss) from continuing operations, net of income tax. The Company believes the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business.

Adjusted earnings is defined as adjusted revenues less adjusted expenses, net of income tax.

The financial measures of adjusted revenues and adjusted expenses focus on the Company’s primary businesses principally by excluding the impact of market volatility, which could distort trends, and revenues and costs related to non-core products and certain entities required to be consolidated under GAAP. Also, these measures exclude results of discontinued operations under GAAP and other businesses that have been or will be sold or exited by MetLife but do not meet the discontinued operations criteria under GAAP and are referred to as divested businesses. Divested businesses also includes the net impact of transactions with exited businesses that have been eliminated in consolidation under GAAP and costs relating to businesses that have been or will be sold or exited by MetLife that do not meet the criteria to be included in results of discontinued operations under GAAP. Adjusted revenues also excludes net investment gains (losses) and net derivative gains (losses). Adjusted expenses also excludes goodwill impairments.

The following additional adjustments are made to revenues, in the line items indicated, in calculating adjusted revenues:

• Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuityguaranteed minimum income benefits (“GMIBs”) fees (“GMIB Fees”);

• Net investment income: (i) includes earned income on derivatives and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment, (ii) excludes post-tax adjusted earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iii) excludes certain amounts related to contractholder-directed unit-linked investments, (iv) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP and (v) includes distributions of profits from certain other limited partnerships that were previously accounted for under the cost method, but are now accounted for at estimated fair value, where the change in fair value is recognized in net investment gains (losses) for GAAP; and

• Other revenues are adjusted for settlements of foreign currency earnings hedges and excludes fees received in association with services provided under transition service agreements (“TSA fees”).

The following additional adjustments are made to expenses, in the line items indicated, in calculating adjusted expenses:

• Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative gains (losses), (ii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass-through adjustments, (iii) benefits and hedging costs related to GMIBs (“GMIB Costs”) and (iv) market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”);

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

• Amortization of deferred policy acquisition costs (“DAC”) andvalue 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;

• Amortization of negative VOBA excludes amounts related to Market Value Adjustments;

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

• Other expenses excludes costs related to: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements and (iii) acquisition, integration and other costs. Other expenses includes TSA fees.

Adjusted earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for during the measurement period under GAAP business combination accounting guidance.

The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax rate, which could differ from the Company’s effective tax rate. Additionally, the provision for income tax (expense) benefit also includes the impact related to the timing of certain tax credits, as well as certain tax reforms.

Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for thethree months endedMarch 31, 2018 and 2017. The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for adjusted earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below.

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 the Company’s business.

The Company’s economic capital model, coupled with considerations of local capital requirements, aligns segment allocated equity with emerging standards and consistent risk principles. The model applies statistics-based risk evaluation principles to the material risks to which the Company is exposed. These consistent risk principles include calibrating required economic capital shock factors to a specific confidence level and time horizon while applying an industry standard method for the inclusion of diversification benefits among risk types.The Company’s management is responsible for the ongoing production and enhancement of the economic capital model and reviews its approach periodically to ensure that it remains consistent with emerging industry practice standards.

Segment net investment income is 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, income (loss) from continuing operations, net of income tax, or adjusted earnings.

Net investment income is based upon the actual results of each segment’s specifically identifiable investment portfolios 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.

Three Months Ended March 31, 2018	U.S.			Asia			Latin America			EMEA			MetLife Holdings			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	5,217		$	1,748		$	699		$	551		$	950		$	13		$	9,178		$	—		$	9,178
Universal life and investment-type product policy fees	258			394			282			112			314			—			1,360			32			1,392
Net investment income	1,662			795			276			75			1,352			59			4,219			(474		)	3,745
Other revenues	204			15			8			16			67			81			391			83			474
Net investment gains (losses)	—			—			—			—			—			—			—			(333		)	(333		)
Net derivative gains (losses)	—			—			—			—			—			—			—			349			349
Total revenues	7,341			2,952			1,265			754			2,683			153			15,148			(343		)	14,805
Expenses
Policyholder benefits and claims and policyholder dividends	5,138			1,343			646			294			1,550			(3		)	8,968			47			9,015
Interest credited to policyholder account balances	407			351			98			25			236			—			1,117			(348		)	769
Capitalization of DAC	(106		)	(465		)	(94		)	(118		)	(10		)	(2		)	(795		)	(1		)	(796		)
Amortization of DAC and VOBA	115			314			60			106			100			2			697			(4		)	693
Amortization of negative VOBA	—			(15		)	—			(6		)	—			—			(21		)	(1		)	(22		)
Interest expense on debt	2			—			2			—			2			280			286			—			286
Other expenses	961			952			338			351			276			232			3,110			94			3,204
Total expenses	6,517			2,480			1,050			652			2,154			509			13,362			(213		)	13,149
Provision for income tax expense (benefit)	171			145			75			21			104			(159		)	357			42			399
Adjusted earnings	$	653		$	327		$	140		$	81		$	425		$	(197	)	1,429
Adjustments to:
Total revenues																			(343		)
Total expenses																			213
Provision for income tax (expense) benefit																			(42		)
Income (loss) from continuing operations, net of income tax																			$	1,257					$	1,257

Three Months Ended March 31, 2017	U.S.			Asia			Latin America			EMEA			MetLife Holdings			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	5,185		$	1,708		$	647		$	502		$	1,059		$	38		$	9,139		$	(174	)	$	8,965
Universal life and investment-type product policy fees	265			366			260			95			362			—			1,348			12			1,360
Net investment income	1,612			702			303			74			1,441			40			4,172			249			4,421
Other revenues	204			10			9			17			96			59			395			(53		)	342
Net investment gains (losses)	—			—			—			—			—			—			—			88			88
Net derivative gains (losses)	—			—			—			—			—			—			—			(212		)	(212		)
Total revenues	7,266			2,786			1,219			688			2,958			137			15,054			(90		)	14,964
Expenses
Policyholder benefits and claims and policyholder dividends	5,244			1,315			633			269			1,733			25			9,219			(46		)	9,173
Interest credited to policyholder account balances	351			321			82			24			257			1			1,036			415			1,451
Capitalization of DAC	(100		)	(420		)	(82		)	(92		)	(34		)	(1		)	(729		)	16			(713		)
Amortization of DAC and VOBA	114			291			78			87			74			1			645			18			663
Amortization of negative VOBA	—			(37		)	—			(3		)	—			—			(40		)	(3		)	(43		)
Interest expense on debt	2			—			1			—			15			277			295			(12		)	283
Other expenses	909			875			326			316			340			175			2,941			137			3,078
Total expenses	6,520			2,345			1,038			601			2,385			478			13,367			525			13,892
Provision for income tax expense (benefit)	249			146			38			12			186			(271		)	360			(240		)	120
Adjusted earnings	$	497		$	295		$	143		$	75		$	387		$	(70	)	1,327
Adjustments to:
Total revenues																			(90		)
Total expenses																			(525		)
Provision for income tax (expense) benefit																			240
Income (loss) from continuing operations, net of income tax																			$	952					$	952

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

	March 31, 2018		December 31, 2017
	(In millions)
U.S.	$	251,496	$	255,428
Asia	143,458		136,928
Latin America	78,638		79,670
EMEA	30,546		30,500
MetLife Holdings	175,817		183,160
Corporate & Other	32,629		34,206
Total	$	712,584	$	719,892

XML

Dispositions

3 Months Ended

Mar. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure

3. Dispositions

2018 Disposition

On February 20, 2018, the Company completed the sale of MetLife Afore, S.A. de C.V., its pension fund management business in Mexico. See Note 3 of the Notes to the Consolidated Financial Statement included in the 2017 Annual Report for further information.

2017 Separation of Brighthouse

On August 4, 2017, MetLife, Inc. completed the separation of Brighthouse. MetLife, Inc. retained the remaining ownership interest of 22,996,436 shares, or 19.2%, of Brighthouse Financial, Inc. common stock and recognized its investment in Brighthouse Financial, Inc. common stock based on the NASDAQ reported market price. The Company elected to record the investment under the FVO as an observable measure of estimated fair value that is aligned with the Company’s intent to divest of the retained shares as soon as practicable. Subsequent changes in estimated fair value of the investment are recorded to net investment gains (losses). The estimated fair value of the Brighthouse Financial, Inc. common stock held by the Company (“FVO Brighthouse Common Stock”) at March 31, 2018 and December 31, 2017 was $1.2 billion and $1.3 billion, respectively, reported within contractholder-directed equity securities and fair value option securities. In the first quarter of 2018, the Company recorded a $168 million mark-to-market loss on its retained investment in Brighthouse Financial, Inc. to net investment gains (losses).

The Company incurred pre-tax Separation-related transaction costs of $77 million for the three months ended March 31, 2017, primarily related to third party staffing costs. Separation-related transaction costs are recorded in other expenses and reported within continuing operations.

See Note 3 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for further information regarding the Separation, including Separation-related agreements and ongoing transactions with Brighthouse.

Agreements

Tax Agreements

Immediately prior to the Separation, MetLife entered into tax agreements with Brighthouse.

In accordance with the tax separation agreement, at both March 31, 2018 and December 31, 2017, the Company’s current income tax receivable and corresponding payable to Brighthouse, reported in other liabilities, were $726 million.

As part of the tax receivable agreement, MetLife Inc. has the right to receive future payments from Brighthouse for a tax asset that Brighthouse received as a result of restructuring prior to the Separation. Included in other assets at both March 31, 2018 and December 31, 2017, is a receivable from Brighthouse of $333 million related to these future payments.

Ongoing Transactions with Brighthouse

The Company considered all of its continuing involvement with Brighthouse in determining whether to deconsolidate and present Brighthouse results as discontinued operations, including the agreements entered into between MetLife and Brighthouse and the ongoing transactions described below.

The Company entered into reinsurance, committed facility, structured settlement, and contract administrative services transactions with Brighthouse in the normal course of business and such transactions will continue based upon business needs. In addition, prior to and in connection with the Separation, the Company entered into various other agreements with Brighthouse for services necessary for both the Company and Brighthouse to conduct their activities. Intercompany transactions prior to the Separation between the Company and Brighthouse are eliminated and excluded from the interim condensed consolidated statements of operations and comprehensive income (loss). Transactions between the Company and Brighthouse that continue after the Separation are included on the Company’s interim condensed consolidated statements of operations and comprehensive income (loss) and interim condensed consolidated balance sheets.

Reinsurance

The Company entered into reinsurance transactions with Brighthouse in the normal course of business and such transactions will continue based upon business needs. Information regarding the significant effects of reinsurance transactions with Brighthouse was as follows:

	Included on Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)			Excluded from Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
	Three Months Ended March 31,
	2018			2017
	(In millions)
Premiums
Reinsurance assumed	$	96		$	97
Reinsurance ceded	(3		)	(3		)
Net premiums	$	93		$	94
Universal life and investment-type product policy fees
Reinsurance assumed	$	1		$	(4	)
Reinsurance ceded	(24		)	(24		)
Net universal life and investment-type product policy fees	$	(23	)	$	(28	)
Policyholder benefits and claims
Reinsurance assumed	$	78		$	75
Reinsurance ceded	(10		)	(6		)
Net policyholder benefits and claims	$	68		$	69
Interest credited to policyholder account balances
Reinsurance assumed	$	4		$	4
Reinsurance ceded	(18		)	(18		)
Net interest credited to policyholder account balances	$	(14	)	$	(14	)
Other expenses
Reinsurance assumed	$	34		$	(30	)
Reinsurance ceded	(14		)	(21		)
Net other expenses	$	20		$	(51	)

Information regarding the significant effects of reinsurance transactions with Brighthouse included on the interim condensed consolidated balance sheets was as follows at:

	March 31, 2018					December 31, 2017
	Assumed		Ceded			Assumed		Ceded
	(In millions)
Assets
Premiums, reinsurance and other receivables	$	154	$	1,802		$	167	$	1,793
Deferred policy acquisition costs and value of business acquired	390		(40		)	384		(40		)
Total assets	$	544	$	1,762		$	551	$	1,753
Liabilities
Future policy benefits	$	1,788	$	—		$	1,734	$	—
Other policy-related balances	116		25			119		28
Other liabilities	1,447		25			1,458		19
Total liabilities	$	3,351	$	50		$	3,311	$	47

Investment Management

In connection with the Separation, the Company entered into investment management services agreements with Brighthouse. During the three months ended March 31, 2018, the Company recognized $29 million in other revenues for services provided under such investment management services agreements. Prior to the Separation, during the three months ended March 31, 2017, the Company charged Brighthouse $25 million, for services provided under the agreements, which were intercompany transactions and eliminated and excluded from the interim condensed consolidated statements of operations and comprehensive income (loss).

MetLife Reinsurance Company of Vermont and MetLife, Inc. have a $2.9 billion committed facility which is used as collateral for certain affiliated reinsurance liabilities. At March 31, 2018, Brighthouse was a beneficiary of $2.4 billion of letters of credit issued under this committed facility and, in consideration, Brighthouse reimbursed MetLife, Inc. for a portion of the letter of credit fees. Prior to the Separation, the Company entered into the committed facility with Brighthouse in the normal course of business and such transactions will continue based upon business needs.

Transition Services

In connection with the Separation, the Company entered into a transition services agreement with Brighthouse for services necessary for Brighthouse to conduct its activities. During the three months ended March 31, 2018, the Company recognized $79 million as other revenue for transitional services provided under the agreement. Prior to the Separation, during the three months ended March 31, 2017, the Company charged Brighthouse $81 million, for services provided under the agreement, which were intercompany transactions and eliminated and excluded from the interim condensed consolidated statements of operations and comprehensive income (loss).

Other

The Company has existing assumed structured settlement claim obligations as an assignment company for Brighthouse. These liabilities are measured at the present value of the periodic claims to be provided and reported as other policy-related balances. The Company receives a fee for assuming these claim obligations and, as the assignee of the claim, is legally obligated to ensure periodic payments are made to the claimant. The Company purchased annuities from Brighthouse to fund these obligations and designates payments to be made directly to the claimant by Brighthouse as the annuity writer. The aggregate contract values of annuities funding structured settlement claims are recorded as an asset for which the Company has also recorded an unpaid claim obligation reported in other policy-related balances. Such aggregated contract values were $1.3 billion at both March 31, 2018 and December 31, 2017. The Company entered into these transactions with Brighthouse in the normal course of business and such transactions will continue based upon business needs.

The Company provides services necessary for Brighthouse to conduct its business, which primarily include contract administrative services for certain Brighthouse investment-type products. During the three months ended March 31, 2018, the Company recognized revenue of $32 million for administrative services provided to Brighthouse. Prior to the Separation, during the three months ended March 31, 2017, the Company provided administrative services to Brighthouse for $31 million, which were intercompany transactions and eliminated and excluded from the interim condensed consolidated statements of operations and comprehensive income (loss). The Company entered into these transactions with Brighthouse in the normal course of business and such transactions will continue based upon business needs.

In connection with the Separation, the Company entered into an employee matters agreement with Brighthouse to allocate obligations and responsibilities relating to employee compensation and benefit plans and other related matters. The employee matters agreement provides that MetLife will reimburse Brighthouse for certain pension benefit payments, retiree health and life benefit payments and deferred compensation payments. Included in other liabilities at both March 31, 2018 and December 31, 2017, is a payable to Brighthouse of $186 million related to these future payments.

At March 31, 2018, the Company had a receivable from Brighthouse of $87 million related to services provided and a payable to Brighthouse of $48 million related to services received. At December 31, 2017, the Company had a receivable from Brighthouse of $97 million related to services provided and a payable to Brighthouse of $50 million related to services received.

Discontinued Operations

The following table presents the amounts related to the operations of Brighthouse that have been reflected in discontinued operations:

	Three Months Ended March 31,
	2017
	(In millions)
Revenues
Premiums	$	350
Universal life and investment-type product policy fees	942
Net investment income	775
Other revenues	32
Total net investment gains (losses)	(50		)
Net derivative gains (losses)	(700		)
Total revenues	1,349
Expenses
Policyholder benefits and claims	1,002
Interest credited to policyholder account balances	261
Policyholder dividends	7
Goodwill impairment	—
Other expenses	261
Total expenses	1,531
Income (loss) from discontinued operations before provision for income tax	(182		)
Provision for income tax expense (benefit)	(106		)
Income (loss) from discontinued operations, net of income tax	$	(76	)

In the interim condensed consolidated statements of cash flows, the cash flows from discontinued operations are not separately classified. The following table presents selected financial information regarding cash flows of the discontinued operations.

	Three Months Ended March 31,
	2017
	(In millions)
Net cash provided by (used in):
Operating activities	$	302
Investing activities	$	16
Financing activities	$	266

XML

Insurance

3 Months Ended

Mar. 31, 2018

Insurance [Abstract]

Insurance

4. Insurance

Guarantees

As discussed in Notes 1 and 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report, the Company issues directly and assumes through reinsurance variable annuity products with guaranteed minimum benefits. Guaranteed minimum accumulation benefits (“GMABs”) and the portions of both non-life-contingent guaranteed minimum withdrawal benefits (“GMWBs”) and the GMIBs that do not require annuitization are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 7.

The Company also issues other annuity contracts that apply a lower rate on funds deposited if the contractholder elects to surrender the contract for cash and a higher rate if the contractholder elects to annuitize. These guarantees include benefits that are payable in the event of death, maturity or at annuitization. Certain other annuity contracts contain guaranteed annuitization benefits that may be above what would be provided by the current account value of the contract. Additionally, the Company issues universal and variable life contracts where the Company contractually guarantees to the contractholder a secondary guarantee or a guaranteed paid-up benefit.

Information regarding the Company’s guarantee exposure, which includes direct and assumed business, but excludes offsets from hedging or ceded reinsurance, if any, was as follows at:

	March 31, 2018								December 31, 2017
	In the Event of Death				At Annuitization				In the Event of Death				At Annuitization
	(Dollars in millions)
Annuity Contracts:
Variable Annuity Guarantees:
Total account value (1), (2), (3)	$	64,728			$	25,169			$	66,724			$	26,223
Separate account value (1)	$	43,714			$	23,302			$	45,431			$	24,336
Net amount at risk (2)	$	1,587	(4	)	$	510	(5	)	$	1,238	(4	)	$	525	(5	)
Average attained age of contractholders	66 years				66 years				65 years				65 years
Other Annuity Guarantees:
Total account value (1), (3)	N/A				$	1,437			N/A				$	1,424
Net amount at risk	N/A				$	559	(6	)	N/A				$	569	(6	)
Average attained age of contractholders	N/A				50 years				N/A				50 years

	March 31, 2018				December 31, 2017
	Secondary Guarantees		Paid-Up Guarantees		Secondary Guarantees		Paid-Up Guarantees
	(Dollars in millions)
Universal and Variable Life Contracts:
Total account value (1), (3)	$	9,089	$	3,171	$	9,036	$	3,207
Net amount at risk (7)	$	66,762	$	16,332	$	66,956	$	16,615
Average attained age of policyholders	57 years		63 years		56 years		63 years

__________________

(1) The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive.

(2) Includes amounts, which are not reported on the interim condensed consolidated balance sheets, from assumed variable annuity guarantees from the Company’s former operating joint venture in Japan.

(3) Includes the contractholder’s investments in the general account and separate account, if applicable.

(4) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death.

(5) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved.

(6) Defined as either the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date or the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. These amounts represent the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date.

(7) Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date.

Liabilities for Unpaid Claims and Claim Expenses

Rollforward of Claims and Claim Adjustment Expenses

Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows:

	Three Months Ended March 31,
	2018			2017 (1)
	(In millions)
Balance, beginning of period	$	17,094		$	16,157
Less: Reinsurance recoverables	2,198			1,968
Net balance, beginning of period	14,896			14,189
Incurred related to:
Current period	6,504			6,637
Prior periods (2)	(148		)	(127		)
Total incurred	6,356			6,510
Paid related to:
Current period	(3,339		)	(3,723		)
Prior periods	(2,719		)	(2,604		)
Total paid	(6,058		)	(6,327		)
Net balance, end of period	15,194			14,372
Add: Reinsurance recoverables	2,237			2,123
Balance, end of period (included in future policy benefits and other policy-related balances)	$	17,431		$	16,495

__________________

(1) As discussed in Note 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report, at December 31, 2016, the Net balance decreased and the Reinsurance recoverables increased from those amounts previously reported. Additionally, at March 31, 2017, the Net balance decreased by $131 million and the Reinsurance recoverables increased by $144 million from those amounts previously reported in MetLife, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017. These adjustments to the Net balance and the Reinsurance recoverables, at both periods, are primarily to correct for improper classification of reinsurance recoverables.

(2) During both the three months ended March 31, 2018 and 2017, as a result of changes in estimates of insured events in the respective prior periods, the claims and claim adjustment expenses associated with prior periods decreased due to favorable claims experience.

XML

Closed Block

3 Months Ended

Mar. 31, 2018

Closed Block Disclosure [Abstract]

Closed Block

5. Closed Block

On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company (“MLIC”) converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance approving MLIC’s plan of reorganization, as amended (the “Plan of Reorganization”). On the Demutualization Date, MLIC established a closed block for the benefit of holders of certain individual life insurance policies of MLIC.

Experience within the closed block, in particular mortality and investment yields, as well as realized and unrealized gains and losses, directly impact the policyholder dividend obligation. Amortization of the closed block DAC, which resides outside of the closed block, is based upon cumulative actual and expected earnings within the closed block. Accordingly, the Company’s net income continues to be sensitive to the actual performance of the closed block.

Closed block assets, liabilities, revenues and expenses are combined on a line-by-line basis with the assets, liabilities, revenues and expenses outside the closed block based on the nature of the particular item.

Information regarding the closed block liabilities and assets designated to the closed block was as follows at:

	March 31, 2018			December 31, 2017
	(In millions)
Closed Block Liabilities
Future policy benefits	$	40,285		$	40,463
Other policy-related balances	213			222
Policyholder dividends payable	462			437
Policyholder dividend obligation	1,277			2,121
Other liabilities	285			212
Total closed block liabilities	42,522			43,455
Assets Designated to the Closed Block
Investments:
Fixed maturity securities available-for-sale, at estimated fair value	26,815			27,904
Equity securities, at estimated fair value	68			70
Mortgage loans	6,040			5,878
Policy loans	4,532			4,548
Real estate and real estate joint ventures	595			613
Other invested assets	607			731
Total investments	38,657			39,744
Accrued investment income	475			477
Premiums, reinsurance and other receivables; cash and cash equivalents	208			14
Current income tax recoverable	40			35
Deferred income tax assets	23			36
Total assets designated to the closed block	39,403			40,306
Excess of closed block liabilities over assets designated to the closed block	3,119			3,149
Amounts included in AOCI:
Unrealized investment gains (losses), net of income tax	1,711			1,863
Unrealized gains (losses) on derivatives, net of income tax	(57		)	(7		)
Allocated to policyholder dividend obligation, net of income tax	(1,009		)	(1,379		)
Total amounts included in AOCI	645			477
Maximum future earnings to be recognized from closed block assets and liabilities	$	3,764		$	3,626

See Note 1 for discussion of new accounting guidance related to U.S. Tax Reform.

Information regarding the closed block policyholder dividend obligation was as follows:

	Three Months Ended March 31, 2018			Year Ended December 31, 2017
	(In millions)
Balance, beginning of period	$	2,121		$	1,931
Change in unrealized investment and derivative gains (losses)	(844		)	190
Balance, end of period	$	1,277		$	2,121

Information regarding the closed block revenues and expenses was as follows:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Revenues
Premiums	$	387		$	402
Net investment income	444			466
Net investment gains (losses)	(29		)	(8		)
Net derivative gains (losses)	(3		)	(8		)
Total revenues	799			852
Expenses
Policyholder benefits and claims	571			568
Policyholder dividends	244			250
Other expenses	29			32
Total expenses	844			850
Revenues, net of expenses before provision for income tax expense (benefit)	(45		)	2
Provision for income tax expense (benefit)	(10		)	—
Revenues, net of expenses and provision for income tax expense (benefit)	$	(35	)	$	2

MLIC charges the closed block with federal income taxes, state and local premium taxes and other state or local taxes, as well as investment management expenses relating to the closed block as provided in the Plan of Reorganization. MLIC also charges the closed block for expenses of maintaining the policies included in the closed block.

XML

Investments

3 Months Ended

Mar. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Investments

6. Investments

Fixed Maturity Securities Available-for-Sale

Fixed Maturity Securities Available-for-Sale by Sector

The following table presents the fixed maturity securities AFS by sector. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities. Included within fixed maturity securities AFS are structured securities including residential mortgage-backed securities (“RMBS”), asset-backed securities (“ABS”) and commercial mortgage-backed securities (“CMBS”) (collectively, “Structured Securities”).

	March 31, 2018											December 31, 2017
	Amortized Cost		Gross Unrealized							Estimated Fair Value		Amortized Cost		Gross Unrealized							Estimated Fair Value
			Gains		Temporary Losses		OTTI Losses (1)							Gains		Temporary Losses		OTTI Losses (1)
	(In millions)
Fixed maturity securities:
U.S. corporate	$	77,786	$	5,105	$	1,057	$	—		$	81,834	$	76,005	$	7,007	$	351	$	—		$	82,661
Foreign government	58,423		6,484		397		—			64,510		55,351		6,495		312		—			61,534
Foreign corporate	52,894		3,366		797		—			55,463		52,409		3,836		676		—			55,569
U.S. government and agency	40,989		3,395		557		—			43,827		43,446		4,227		279		—			47,394
RMBS	26,858		999		481		(35		)	27,411		27,846		1,145		233		(42		)	28,800
State and political subdivision	10,762		1,473		43		—			12,192		10,752		1,717		13		1			12,455
ABS	11,695		111		41		1			11,764		12,213		116		39		(1		)	12,291
CMBS	7,692		112		94		—			7,710		8,047		222		42		—			8,227
Total fixed maturity securities	$	287,099	$	21,045	$	3,467	$	(34	)	$	304,711	$	286,069	$	24,765	$	1,945	$	(42	)	$	308,931

__________________

(1) Noncredit OTTI losses included in AOCI in an unrealized gain position are 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 $24 million and $6 million, and unrealized gains (losses) of ($1) million and ($4) million, at March 31, 2018 and December 31, 2017, 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 March 31, 2018:

	Due in One Year or Less		Due After One Year Through Five Years		Due After Five Years Through Ten Years		Due After Ten Years		Structured Securities		Total Fixed Maturity Securities
	(In millions)
Amortized cost	$	12,620	$	60,639	$	61,373	$	106,222	$	46,245	$	287,099
Estimated fair value	$	12,674	$	62,809	$	63,919	$	118,424	$	46,885	$	304,711

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. Structured Securities are shown separately, as they are not due at a single maturity.

Continuous Gross Unrealized Losses for Fixed Maturity Securities AFS by Sector

The following table presents the estimated fair value and gross unrealized losses of fixed maturity 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 at:

	March 31, 2018								December 31, 2017
	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
	(Dollars in millions)
Fixed maturity securities:
U.S. corporate	$	20,465	$	642	$	4,426	$	415	$	5,604	$	92	$	4,115	$	259
Foreign government	4,510		137		3,297		260		4,234		83		3,251		229
Foreign corporate	8,932		259		5,835		538		4,422		99		6,802		577
U.S. government and agency	19,105		224		3,378		333		18,273		93		3,560		186
RMBS	10,855		237		3,713		209		6,359		50		4,159		141
State and political subdivision	774		24		302		19		182		2		346		12
ABS	2,593		15		551		27		1,695		7		729		31
CMBS	3,069		48		478		46		1,174		9		413		33
Total fixed maturity securities	$	70,303	$	1,586	$	21,980	$	1,847	$	41,943	$	435	$	23,375	$	1,468
Total number of securities in an unrealized loss position	5,111				1,887				2,598				1,955

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 2017 Annual Report, the Company performs a regular evaluation of all investment classes for impairment, including fixed maturity 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 concluded that these securities were not other-than-temporarily impaired at March 31, 2018. 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, collateral valuation, interest rates and 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 increased$1.5 billionduring thethree months endedMarch 31, 2018to$3.4 billion. The increase in gross unrealized losses for thethree months endedMarch 31, 2018was primarily attributable to widening credit spreads and increases in interest rates, partially offset by strengthening foreign currencies on non-functional currency denominated fixed maturity securities.

At March 31, 2018, $85 million of the total $3.4 billion of gross unrealized losses were from 28 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 $85 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, $40 million, or 47%, were related to gross unrealized losses on 11 investment grade fixed maturity securities. Unrealized losses on investment grade fixed maturity securities are principally related to widening credit spreads since purchase and, with respect to fixed-rate fixed maturity securities, rising interest rates since purchase.

Below Investment Grade Fixed Maturity Securities

Of the $85 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, $45 million, or 53%, were related to gross unrealized losses on 17 below investment grade fixed maturity securities. Unrealized losses on below investment grade fixed maturity securities are principally related to U.S. and foreign corporate securities (primarily industrial and utility securities) and CMBS and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainty including concerns over lower oil prices in the energy sector. Management evaluates U.S. and foreign corporate securities based on factors such as expected cash flows and the financial condition and near-term and long-term prospects of the issuers and evaluates CMBS based on actual and projected cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, 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 are summarized as follows at:

	March 31, 2018				December 31, 2017
	Estimated Fair Value		% of Total		Estimated Fair Value		% of Total
	(Dollars in millions)
Equity securities:
Common stock	$	1,046	67.7	%	$	2,035	81.0	%
Non-redeemable preferred stock	498		32.3		478		19.0
Total equity securities	$	1,544	100.0	%	$	2,513	100.0	%

In connection with the adoption of new guidance related to the recognition and measurement of financial instruments (see Note 1), effective January 1, 2018, the Company has reclassified its investment in common stock in regional banks of the Federal Home Loan Bank (“FHLB”) system from equity securities to other invested assets. These investments are carried at redemption value and are considered restricted investments until redeemed by the respective FHLB regional banks. The carrying value of these investments at December 31, 2017 was $791 million.

Contractholder-Directed Equity Securities and Fair Value Option Securities

Contractholder-directed equity securities and fair value option securities (collectively, “Unit-linked and FVO Securities”), are investments for which the FVO has been elected, or are otherwise required to be carried at estimated fair value, and include:

• contractholder-directed investments supporting unit-linked variable annuity type liabilities which do not qualify for presentation and reporting as separate account summary total assets and liabilities. These investments are primarily equity securities (including mutual funds) and, to a lesser extent, fixed maturity securities, short-term investments and cash and cash equivalents. The investment returns on these investments inure to contractholders and are offset by a corresponding change in policyholder account balances through interest credited to policyholder account balances (“Unit-linked investments”);

• FVO Brighthouse Common Stock (see Note 3);

• fixed maturity and equity securities held-for-investment by the general account to support asset and liability management strategies for certain insurance products and investments in certain separate accounts (“FVO general account securities”); and

• FVO securities held by consolidated securitization entities.

Mortgage Loans

Mortgage Loans by Portfolio Segment

Mortgage loans are summarized as follows at:

	March 31, 2018					December 31, 2017
	Carrying Value			% of Total		Carrying Value			% of Total
	(Dollars in millions)
Mortgage loans:
Commercial	$	46,690		65.7	%	$	44,375		64.6	%
Agricultural	13,098			18.4		13,014			18.9
Residential	11,156			15.7		11,136			16.2
Subtotal (1)	70,944			99.8		68,525			99.7
Valuation allowances	(327		)	(0.4	)	(314		)	(0.5	)
Subtotal mortgage loans, net	70,617			99.4		68,211			99.2
Residential — FVO	438			0.6		520			0.8
Total mortgage loans, net	$	71,055		100.0	%	$	68,731		100.0	%

__________________

(1) Purchases of mortgage loans, primarily residential mortgage loans, were$307 millionand$762 millionfor thethree months endedMarch 31, 2018and2017, respectively.

Information on commercial, agricultural and residential mortgage loans is presented in the tables below. Information on residential mortgage loans — FVO is presented in Note 8. The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis.

Mortgage Loans, Valuation Allowance and Impaired Loans by Portfolio Segment

Mortgage loans by portfolio segment, by method of evaluation of credit loss, impaired mortgage loans including those modified in a troubled debt restructuring, and the related valuation allowances, were as follows at:

	Evaluated Individually for Credit Losses										Evaluated Collectively for Credit Losses				Impaired Loans
	Impaired Loans with a Valuation Allowance						Impaired Loans without a Valuation Allowance
	Unpaid Principal Balance		Recorded Investment		Valuation Allowances		Unpaid Principal Balance		Recorded Investment		Recorded Investment		Valuation Allowances		Carrying Value
	(In millions)
March 31, 2018
Commercial	$	—	$	—	$	—	$	—	$	—	$	46,690	$	228	$	—
Agricultural	22		21		2		101		100		12,977		39		119
Residential	—		—		—		376		339		10,817		58		339
Total	$	22	$	21	$	2	$	477	$	439	$	70,484	$	325	$	458
December 31, 2017
Commercial	$	—	$	—	$	—	$	—	$	—	$	44,375	$	214	$	—
Agricultural	22		21		2		27		27		12,966		39		46
Residential	—		—		—		358		324		10,812		59		324
Total	$	22	$	21	$	2	$	385	$	351	$	68,153	$	312	$	370

The average recorded investment for impaired commercial, agricultural and residential mortgage loans was $0, $84 million and $331 million, respectively, for the three months endedMarch 31, 2018; and $12 million, $25 million and $253 million, respectively, for the three months endedMarch 31, 2017.

Valuation Allowance Rollforward by Portfolio Segment

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

	Three Months Ended March 31,
	2018										2017
	Commercial		Agricultural		Residential			Total			Commercial		Agricultural		Residential			Total
	(In millions)
Balance, beginning of period	$	214	$	41	$	59		$	314		$	202	$	39	$	63		$	304
Provision (release)	14		—		—			14			5		—		5			10
Charge-offs, net of recoveries	—		—		(1		)	(1		)	—		—		(4		)	(4		)
Balance, end of period	$	228	$	41	$	58		$	327		$	207	$	39	$	64		$	310

Credit Quality of Commercial Mortgage Loans

The credit quality of commercial mortgage loans was as follows at:

	Recorded Investment										Estimated Fair Value		% of Total
	Debt Service Coverage Ratios								% of Total
	> 1.20x		1.00x - 1.20x		< 1.00x		Total
	(Dollars in millions)
March 31, 2018
Loan-to-value ratios:
Less than 65%	$	39,705	$	1,023	$	186	$	40,914	87.6	%	$	41,327	87.9	%
65% to 75%	4,280		98		143		4,521		9.7		4,504		9.6
76% to 80%	265		210		126		601		1.3		574		1.2
Greater than 80%	401		176		77		654		1.4		613		1.3
Total	$	44,651	$	1,507	$	532	$	46,690	100.0	%	$	47,018	100.0	%
December 31, 2017
Loan-to-value ratios:
Less than 65%	$	37,073	$	1,483	$	201	$	38,757	87.4	%	$	39,528	87.7	%
65% to 75%	4,183		98		119		4,400		9.9		4,408		9.8
76% to 80%	235		210		57		502		1.1		476		1.0
Greater than 80%	401		168		147		716		1.6		672		1.5
Total	$	41,892	$	1,959	$	524	$	44,375	100.0	%	$	45,084	100.0	%

Credit Quality of Agricultural Mortgage Loans

The credit quality of agricultural mortgage loans was as follows at:

	March 31, 2018				December 31, 2017
	Recorded Investment		% of Total		Recorded Investment		% of Total
	(Dollars in millions)
Loan-to-value ratios:
Less than 65%	$	12,433	94.9	%	$	12,347	94.9	%
65% to 75%	616		4.7		618		4.7
76% to 80%	40		0.3		40		0.3
Greater than 80%	9		0.1		9		0.1
Total	$	13,098	100.0	%	$	13,014	100.0	%

The estimated fair value of agricultural mortgage loans was $13.0 billion and $13.1 billion at March 31, 2018 and December 31, 2017, respectively.

Credit Quality of Residential Mortgage Loans

The credit quality of residential mortgage loans was as follows at:

	March 31, 2018				December 31, 2017
	Recorded Investment		% of Total		Recorded Investment		% of Total
	(Dollars in millions)
Performance indicators:
Performing	$	10,748	96.3	%	$	10,622	95.4	%
Nonperforming	408		3.7		514		4.6
Total	$	11,156	100.0	%	$	11,136	100.0	%

The estimated fair value of residential mortgage loans was $11.8 billion and $11.6 billion at March 31, 2018 and December 31, 2017, respectively.

Past Due and Nonaccrual Mortgage Loans

The Company has a high quality, well performing mortgage loan portfolio, with 99% of all mortgage loans classified as performing at both March 31, 2018 and December 31, 2017. The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days. The past due and nonaccrual mortgage loans at recorded investment, prior to valuation allowances, by portfolio segment, were as follows at:

	Past Due				Greater than 90 Days Past Due and Still Accruing Interest				Nonaccrual
	March 31, 2018		December 31, 2017		March 31, 2018		December 31, 2017		March 31, 2018		December 31, 2017
	(In millions)
Commercial	$	1	$	—	$	—	$	—	$	1	$	—
Agricultural	219		134		114		125		106		36
Residential	408		514		42		33		366		481
Total	$	628	$	648	$	156	$	158	$	473	$	517

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 $6.3 billion and $6.2 billion at March 31, 2018 and December 31, 2017, respectively.

Net Unrealized Investment Gains (Losses)

Unrealized investment gains (losses) on fixed maturity securities AFS and equity securities and the effect on DAC, VOBA, deferred sales inducements (“DSI”), future policy benefits and the policyholder dividend obligation, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI.

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

	March 31, 2018			December 31, 2017
	(In millions)
Fixed maturity securities	$	17,545		$	22,645
Fixed maturity securities with noncredit OTTI losses included in AOCI	35			41
Total fixed maturity securities	17,580			22,686
Equity securities	—			421
Derivatives	936			1,453
Other	136			46
Subtotal	18,652			24,606
Amounts allocated from:
Future policy benefits	(138		)	(77		)
DAC, VOBA and DSI	(1,304		)	(1,768		)
Policyholder dividend obligation	(1,277		)	(2,121		)
Subtotal	(2,719		)	(3,966		)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	(5		)	(12		)
Deferred income tax benefit (expense)	(4,372		)	(6,958		)
Net unrealized investment gains (losses)	11,556			13,670
Net unrealized investment gains (losses) attributable to noncontrolling interests	(9		)	(8		)
Net unrealized investment gains (losses) attributable to MetLife, Inc.	$	11,547		$	13,662

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

	Three Months Ended March 31, 2018
	(In millions)
Balance, beginning of period	$	13,662
Cumulative effects of changes in accounting principles, net of income tax (Note 1)	1,258
Fixed maturity securities on which noncredit OTTI losses have been recognized	(6		)
Unrealized investment gains (losses) during the period	(5,523		)
Unrealized investment gains (losses) relating to:
Future policy benefits	(61		)
DAC, VOBA and DSI	464
Policyholder dividend obligation	844
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	7
Deferred income tax benefit (expense)	903
Net unrealized investment gains (losses)	11,548
Net unrealized investment gains (losses) attributable to noncontrolling interests	(1		)
Balance, end of period	$	11,547
Change in net unrealized investment gains (losses)	$	(2,114	)
Change in net unrealized investment gains (losses) attributable to noncontrolling interests	(1		)
Change in net unrealized investment gains (losses) attributable to MetLife, Inc.	$	(2,115	)

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 $30.7 billion and $27.5 billion at March 31, 2018 and December 31, 2017, respectively, and in fixed income securities of the South Korean government and its agencies with an estimated fair value of $6.4 billion and $6.5 billion at March 31, 2018 and December 31, 2017, respectively.

Securities Lending

Elements of the Company’s securities lending program are presented below at:

	March 31, 2018		December 31, 2017
	(In millions)
Securities on loan: (1)
Amortized cost	$	17,047	$	17,801
Estimated fair value	$	17,812	$	19,028
Cash collateral received from counterparties (2)	$	18,111	$	19,417
Security collateral received from counterparties (3)	$	41	$	19
Reinvestment portfolio — estimated fair value	$	18,149	$	19,508

__________________

(1) Included within fixed maturity securities.

(2) Included within payables for collateral under securities loaned and other transactions.

(3) Security collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the consolidated financial statements.

The cash collateral liability by loaned security type and remaining tenor of the agreements was as follows at:

	March 31, 2018								December 31, 2017
	Remaining Tenor of Securities Lending Agreements								Remaining Tenor of Securities Lending Agreements
	Open (1)		1 Month or Less		Over 1 to 6 Months		Total		Open (1)		1 Month or Less		Over 1 to 6 Months		Total
	(In millions)
Cash collateral liability by loaned security type:
U.S. government and agency	$	3,493	$	6,282	$	7,269	$	17,044	$	3,753	$	6,031	$	8,607	$	18,391
Foreign government	—		312		755		1,067		—		192		834		1,026
Total	$	3,493	$	6,594	$	8,024	$	18,111	$	3,753	$	6,223	$	9,441	$	19,417

__________________

(1) The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral.

If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized under normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at March 31, 2018 was $3.4 billion, all of which were U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement.

The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including U.S. government and agency securities, agency RMBS, ABS and U.S. corporate securities) and short-term investments, with 60% invested in U.S. government and agency securities, agency RMBS, short-term investments, cash equivalents or held in cash. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company.

Repurchase Agreements

Elements of the Company’s short-term repurchase agreements are presented below at:

	March 31, 2018		December 31, 2017
	(In millions)
Securities on loan: (1)
Amortized cost	$	2,796	$	994
Estimated fair value	$	2,927	$	1,141
Cash collateral received from counterparties (2)	$	2,861	$	1,102
Reinvestment portfolio — estimated fair value	$	2,854	$	1,102

__________________

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

(2) Included within payables for collateral under securities loaned and other transactions and other liabilities.

The cash collateral liability by loaned security type and remaining tenor of the agreements was as follows at:

	March 31, 2018						December 31, 2017
	Remaining Tenor of Repurchase Agreements						Remaining Tenor of Repurchase Agreements
	1 Month or Less		Over 1 to 6 Months		Total		1 Month or Less		Over 1 to 6 Months		Total
	(In millions)
Cash collateral liability by loaned security type:
U.S. government and agency	$	2,760	$	5	$	2,765	$	1,005	$	—	$	1,005
All other corporate and government	—		96		96		44		53		97
Total	$	2,760	$	101	$	2,861	$	1,049	$	53	$	1,102

The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including U.S. government and agency securities, agency RMBS, ABS and U.S. corporate securities) and short-term investments, with 64% invested in U.S. government and agency securities, agency RMBS, short-term investments, cash equivalents or held in cash. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company.

FHLB of Boston Advance Agreements

At March 31, 2018 and December 31, 2017, a subsidiary of the Company had pledged fixed maturity securities with an estimated fair value of $1.3 billion and $564 million, respectively, as collateral and received $800 million and $300 million, respectively, in cash advances under short-term advance agreements with the FHLB of Boston. The liability to return the cash advances is included within payables for collateral under securities loaned and other transactions. The estimated fair value of the reinvestment portfolio acquired with the cash advances was $804 million and $300 million at March 31, 2018 and December 31, 2017, respectively, and consisted primarily of U.S. government and agency fixed maturity securities and Structured Securities. The subsidiary is permitted to withdraw any portion of the pledged collateral over the minimum collateral requirement at any time, other than in the event of a default by the subsidiary.

The cash advance liability by loaned security type and remaining tenor of the agreements was as follows at:

	March 31, 2018								December 31, 2017
	Remaining Tenor of Advance Agreements								Remaining Tenor of Advance Agreements
	1 Month or Less		Over 1 to 6 Months		6 Months to 1 Year		Total		1 Month or Less		Over 1 to 6 Months		6 Months to 1 Year		Total
	(In millions)
Cash advance liability by loaned security type:
State and political subdivision	$	100	$	625	$	75	$	800	$	—	$	300	$	—	$	300

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 all asset classes, except mortgage loans, which are presented at carrying value, at:

	March 31, 2018		December 31, 2017
	(In millions)
Invested assets on deposit (regulatory deposits)	$	2,079	$	1,879
Invested assets held in trust (collateral financing arrangement and reinsurance agreements)	2,586		2,490
Invested assets pledged as collateral	25,198		24,174
Total invested assets on deposit, held in trust and pledged as collateral	$	29,863	$	28,543

The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report) and derivative transactions (see Note 7). Amounts in the table above include invested assets and cash and cash equivalents.

See “— Securities Lending” and “— Repurchase Agreements” for information regarding securities on loan, Note 5 for information regarding investments designated to the closed block and “— Equity Securities” for information on common stock holdings in regional banks of the FHLB system, which are considered restricted investments.

Variable Interest Entities

The Company has invested in legal entities 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.

Consolidated VIEs

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.

The following table presents the total assets and total liabilities relating to investment-related VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at:

	March 31, 2018				December 31, 2017
	Total Assets		Total Liabilities		Total Assets		Total Liabilities
	(In millions)
Renewable energy partnership (1)	$	109	$	1	$	116	$	3
Other investments	32		6		32		6
Total	$	141	$	7	$	148	$	9

__________________

(1) Assets of the renewable energy partnership primarily consisted of other invested assets.

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:

	March 31, 2018				December 31, 2017
	Carrying Amount		Maximum Exposure to Loss (1)		Carrying Amount		Maximum Exposure to Loss (1)
	(In millions)
Fixed maturity securities AFS:
Structured Securities (2)	$	45,555	$	45,555	$	47,614	$	47,614
U.S. and foreign corporate	1,355		1,355		1,560		1,560
Other limited partnership interests	4,941		9,187		4,834		8,543
Other invested assets	2,300		2,557		2,291		2,625
Other investments	41		46		82		87
Total	$	54,192	$	58,700	$	56,381	$	60,429

__________________

(1) The maximum exposure to loss relating to fixed maturity 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. 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 $113 million and $117 million at March 31, 2018 and December 31, 2017, 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 in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity.

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 both the three months endedMarch 31, 2018 and 2017.

Net Investment Income

The components of net investment income were as follows:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Investment income:
Fixed maturity securities	$	2,896		$	2,825
Equity securities	16			31
FVO general account securities (1)	6			29
Mortgage loans	792			736
Policy loans	124			127
Real estate and real estate joint ventures	168			153
Other limited partnership interests	207			240
Cash, cash equivalents and short-term investments	72			51
Operating joint ventures	13			2
Other	106			72
Subtotal	4,400			4,266
Less: Investment expenses	302			261
Subtotal, net	4,098			4,005
Unit-linked investments (1)	(353		)	416
Net investment income	$	3,745		$	4,421

__________________

(1) Changes in estimated fair value subsequent to purchase for investments still held as of the end of the respective periods included in net investment income were principally from Unit-linked investments, and were ($373) million and $340 million for the three months endedMarch 31, 2018 and 2017, respectively.

Net Investment Gains (Losses)

Components of Net Investment Gains (Losses)

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

	Three Months Ended March 31,
	2018			2017
	(In millions)
Total gains (losses) on fixed maturity securities:
OTTI losses on fixed maturity securities recognized in earnings	$	—		$	—
Fixed maturity securities — net gains (losses) on sales and disposals	(95		)	(2		)
Total gains (losses) on fixed maturity securities	(95		)	(2		)
Total gains (losses) on equity securities:
OTTI losses recognized — by security type:
Common stock	—			(7		)
Non-redeemable preferred stock	—			(1		)
Total OTTI losses on equity securities recognized in earnings	—			(8		)
Equity securities — net gains (losses) on sales and disposals	102			43
Change in estimated fair value of equity securities (1)	(133		)	—
Total gains (losses) on equity securities	(31		)	35
Mortgage loans	(21		)	(12		)
Real estate and real estate joint ventures	25			(3		)
Other limited partnership interests	—			(7		)
Other	(130		)	(26		)
Subtotal	(252		)	(15		)
Change in estimated fair value of other limited partnership interests and real estate joint ventures	(5		)	—
Non-investment portfolio gains (losses) (2)	(76		)	103
Subtotal	(81		)	103
Total net investment gains (losses)	$	(333	)	$	88

__________________

(1) Changes in estimated fair value subsequent to purchase for equity securities still held as of the end of the period included in net investment gains (losses) were ($37) million for the three months endedMarch 31, 2018. See Note 1.

(2) Non-investment portfolio gains (losses) for the three months endedMarch 31, 2018 includes a loss of $168 million which represents the change in estimated fair value of FVO Brighthouse Common Stock held by the Company. See Note 3.

Gains (losses) from foreign currency transactions included within net investment gains (losses) were$65 millionand$80 millionfor thethree months endedMarch 31, 2018and2017, respectively.

Sales or Disposals and Impairments of Fixed Maturity Securities AFS

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

	Three Months Ended March 31,
	2018			2017
	Fixed Maturity Securities
	(In millions)
Proceeds	$	19,070		$	14,461
Gross investment gains	$	106		$	142
Gross investment losses	(201		)	(144		)
OTTI losses	—			—
Net investment gains (losses)	$	(95	)	$	(2	)

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 March 31,
	2018			2017
	(In millions)
Balance, beginning of period	$	138		$	187
Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI	(9		)	(17		)
Increase in cash flows — accretion of previous credit loss OTTI	(1		)	—
Balance, end of period	$	128		$	170

XML

Derivatives

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

7. Derivatives

Accounting for Derivatives

Freestanding Derivatives

Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement.

Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivative’s carrying value in other invested assets or other liabilities.

If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows:

Statement of Operations Presentation:	Derivative:
Policyholder benefits and claims	•	Economic hedges of variable annuity guarantees included in future policy benefits
Net investment income	•	Economic hedges of equity method investments in joint ventures
	•	Derivatives held within Unit-linked investments

Hedge Accounting

To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows:

• Fair value hedge (a hedge of the estimated fair value of a recognized asset or liability) - in net derivative gains (losses), consistent with the change in estimated fair value of the hedged item attributable to the designated risk being hedged.

• Cash flow hedge (a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability) - effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses).

• Net investment in a foreign operation hedge - effectiveness in OCI, consistent with the translation adjustment for the hedged net investment in the foreign operation; ineffectiveness in net derivative gains (losses).

The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. Accruals on derivatives in net investment hedges are recognized in OCI.

In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness and measurements of ineffectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income.

The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument.

When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item.

When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in net derivative gains (losses).

In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses).

Embedded Derivatives

The Company sells variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if:

• the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings;

• the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and

• a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument.

Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees.

See Note 8 for information about the fair value hierarchy for derivatives.

Derivative Strategies

The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. The Company uses a variety of strategies to manage these risks, including the use of derivatives.

Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps and structured interest rate swaps to synthetically replicate investment risks and returns which are not readily available in the cash markets.

Interest Rate Derivatives

The Company uses a variety of interest rate derivatives to reduce its exposure to changes in interest rates, including interest rate swaps, interest rate total return swaps, caps, floors, swaptions, futures and forwards.

Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). In an interest rate swap, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. The Company utilizes interest rate swaps in fair value, cash flow and nonqualifying hedging relationships.

The Company uses structured interest rate swaps to synthetically create investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and a cash instrument such as a U.S. government and agency, or other fixed maturity security. Structured interest rate swaps are included in interest rate swaps and are not designated as hedging instruments.

Interest rate total return swaps are swaps whereby the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and the London Interbank Offered Rate (“LIBOR”), calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by the counterparty at each due date. Interest rate total return swaps are used by the Company to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). The Company utilizes interest rate total return swaps in nonqualifying hedging relationships.

The Company purchases interest rate caps primarily to protect its floating rate liabilities against rises in interest rates above a specified level, and against interest rate exposure arising from mismatches between assets and liabilities, and interest rate floors primarily to protect its minimum rate guarantee liabilities against declines in interest rates below a specified level. In certain instances, the Company locks in the economic impact of existing purchased caps and floors by entering into offsetting written caps and floors. The Company utilizes interest rate caps and floors in nonqualifying hedging relationships.

In exchange-traded interest rate (Treasury and swap) futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of interest rate securities, to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts and to pledge initial margin based on futures exchange requirements. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded interest rate (Treasury and swap) futures are used primarily to hedge mismatches between the duration of assets in a portfolio and the duration of liabilities supported by those assets, to hedge against changes in value of securities the Company owns or anticipates acquiring, to hedge against changes in interest rates on anticipated liability issuances by replicating Treasury or swap curve performance, and to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded interest rate futures in nonqualifying hedging relationships.

Swaptions are used by the Company to hedge interest rate risk associated with the Company’s long-term liabilities and invested assets. A swaption is an option to enter into a swap with a forward starting effective date. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. The Company utilizes swaptions in nonqualifying hedging relationships. Swaptions are included in interest rate options.

The Company enters into interest rate forwards to buy and sell securities. The price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. The Company utilizes interest rate forwards in cash flow and nonqualifying hedging relationships.

A synthetic guaranteed interest contract (“GIC”) is a contract that simulates the performance of a traditional GIC through the use of financial instruments. Under a synthetic GIC, the contractholder owns the underlying assets. The Company guarantees a rate of return on those assets for a premium. Synthetic GICs are not designated as hedging instruments.

Foreign Currency Exchange Rate Derivatives

The Company uses foreign currency exchange rate derivatives, including foreign currency swaps, foreign currency forwards, currency options and exchange-traded currency futures, to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies. The Company also uses foreign currency derivatives to hedge the foreign currency exchange rate risk associated with certain of its net investments in foreign operations.

In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in fair value, cash flow and nonqualifying hedging relationships.

In a foreign currency forward transaction, the Company agrees with another party to deliver a specified amount of an identified currency at a specified future date. The price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company utilizes foreign currency forwards in fair value, net investment in foreign operations and nonqualifying hedging relationships.

The Company enters into currency options that give it the right, but not the obligation, to sell the foreign currency amount in exchange for a functional currency amount within a limited time at a contracted price. The contracts may also be net settled in cash, based on differentials in the foreign currency exchange rate and the strike price. The Company uses currency options to hedge against the foreign currency exposure inherent in certain of its variable annuity products. The Company also uses currency options as an economic hedge of foreign currency exposure related to the Company’s international subsidiaries. The Company utilizes currency options in net investment in foreign operations and nonqualifying hedging relationships.

To a lesser extent, the Company uses exchange-traded currency futures to hedge currency mismatches between assets and liabilities, and to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded currency futures in nonqualifying hedging relationships.

Credit Derivatives

The Company enters into purchased credit default swaps to hedge against credit-related changes in the value of its investments. In a credit default swap transaction, the Company agrees with another party to pay, at specified intervals, a premium to hedge credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the delivery of par quantities of the referenced investment equal to the specified swap notional amount in exchange for the payment of cash amounts by the counterparty equal to the par value of the investment surrendered. Credit events vary by type of issuer but typically include bankruptcy, failure to pay debt obligations and involuntary restructuring for corporate obligors, as well as repudiation, moratorium or governmental intervention for sovereign obligors. In each case, payout on a credit default swap is triggered only after the Credit Derivatives Determinations Committee of the International Swaps and Derivatives Association, Inc. (“ISDA”) deems that a credit event has occurred. The Company utilizes credit default swaps in nonqualifying hedging relationships.

The Company enters into written credit default swaps to synthetically create credit investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and one or more cash instruments, such as U.S. government and agency securities, or other fixed maturity securities. These credit default swaps are not designated as hedging instruments.

The Company enters into forwards to lock in the price to be paid for forward purchases of certain securities. The price is agreed upon at the time of the contract and payment for the contract is made at a specified future date. When the primary purpose of entering into these transactions is to hedge against the risk of changes in purchase price due to changes in credit spreads, the Company designates these transactions as credit forwards. The Company utilizes credit forwards in cash flow hedging relationships.

Equity Derivatives

The Company uses a variety of equity derivatives to reduce its exposure to equity market risk, including equity index options, equity variance swaps, exchange-traded equity futures and equity total return swaps.

Equity index options are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. To hedge against adverse changes in equity indices, the Company enters into contracts to sell the underlying equity index within a limited time at a contracted price. The contracts will be net settled in cash based on differentials in the indices at the time of exercise and the strike price. Certain of these contracts may also contain settlement provisions linked to interest rates. In certain instances, the Company may enter into a combination of transactions to hedge adverse changes in equity indices within a pre-determined range through the purchase and sale of options. The Company utilizes equity index options in nonqualifying hedging relationships.

Equity variance swaps are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. In an equity variance swap, the Company agrees with another party to exchange amounts in the future, based on changes in equity volatility over a defined period. The Company utilizes equity variance swaps in nonqualifying hedging relationships.

In exchange-traded equity futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of equity securities, to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts and to pledge initial margin based on futures exchange requirements. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded equity futures are used primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded equity futures in nonqualifying hedging relationships.

In an equity total return swap, the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and LIBOR, calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. The Company uses equity total return swaps to hedge its equity market guarantees in certain of its insurance products. Equity total return swaps can be used as hedges or to synthetically create investments. The Company utilizes equity total return swaps in nonqualifying hedging relationships.

Primary Risks Managed by Derivatives

The following table presents the primary underlying risk exposure, gross notional amount, and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at:

		March 31, 2018						December 31, 2017
	Primary Underlying Risk Exposure	Gross Notional Amount		Estimated Fair Value				Gross Notional Amount		Estimated Fair Value
				Assets		Liabilities				Assets		Liabilities
		(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges:
Interest rate swaps	Interest rate	$	2,521	$	2,111	$	2	$	3,843	$	2,289	$	3
Foreign currency swaps	Foreign currency exchange rate	1,146		65		36		1,116		50		18
Foreign currency forwards	Foreign currency exchange rate	3,477		97		4		3,253		2		37
Subtotal		7,144		2,273		42		8,212		2,341		58
Cash flow hedges:
Interest rate swaps	Interest rate	3,580		158		14		3,584		235		4
Interest rate forwards	Interest rate	3,143		—		218		3,332		—		128
Foreign currency swaps	Foreign currency exchange rate	33,236		1,210		1,778		32,152		1,142		1,665
Subtotal		39,959		1,368		2,010		39,068		1,377		1,797
Foreign operations hedges:
Foreign currency forwards	Foreign currency exchange rate	458		2		5		332		2		5
Currency options	Foreign currency exchange rate	8,587		19		263		9,408		44		163
Subtotal		9,045		21		268		9,740		46		168
Total qualifying hedges		56,148		3,662		2,320		57,020		3,764		2,023
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate swaps	Interest rate	52,610		1,597		279		60,485		2,203		576
Interest rate floors	Interest rate	7,201		66		—		7,201		92		—
Interest rate caps	Interest rate	46,020		221		2		53,079		78		2
Interest rate futures	Interest rate	2,991		2		3		4,366		2		4
Interest rate options	Interest rate	14,816		575		—		12,009		656		11
Interest rate forwards	Interest rate	217		—		51		217		—		42
Interest rate total return swaps	Interest rate	1,048		14		25		1,048		8		2
Synthetic GICs	Interest rate	11,720		—		—		11,318		—		—
Foreign currency swaps	Foreign currency exchange rate	10,773		580		461		9,902		693		506
Foreign currency forwards	Foreign currency exchange rate	13,803		295		67		12,238		79		190
Currency futures	Foreign currency exchange rate	900		—		8		846		2		—
Currency options	Foreign currency exchange rate	2,391		9		—		3,123		55		6
Credit default swaps — purchased	Credit	1,888		5		41		2,020		7		43
Credit default swaps — written	Credit	11,421		210		2		11,375		271		—
Equity futures	Equity market	3,088		7		19		4,005		18		4
Equity index options	Equity market	19,509		594		603		19,886		569		690
Equity variance swaps	Equity market	4,661		52		194		4,661		54		199
Equity total return swaps	Equity market	1,012		35		—		1,117		—		41
Total non-designated or nonqualifying derivatives		206,069		4,262		1,755		218,896		4,787		2,316
Total		$	262,217	$	7,924	$	4,075	$	275,916	$	8,551	$	4,339

Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both March 31, 2018 and December 31, 2017. The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and that generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules; (ii) derivatives that economically hedge insurance liabilities that contain mortality or morbidity risk and that generally do not qualify for hedge accounting because the lack of these risks in the derivatives cannot support an expectation of a highly effective hedging relationship; (iii) derivatives that economically hedge embedded derivatives that do not qualify for hedge accounting because the changes in estimated fair value of the embedded derivatives are already recorded in net income; and (iv) written credit default swaps and interest rate swaps that are used to synthetically create investments and that do not qualify for hedge accounting because they do not involve a hedging relationship. For these nonqualified derivatives, changes in market factors can lead to the recognition of fair value changes on the statement of operations without an offsetting gain or loss recognized in earnings for the item being hedged.

Net Derivative Gains (Losses)

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

	Three Months Ended March 31,
	2018		2017
	(In millions)
Freestanding derivatives and hedging gains (losses) (1)	$	312	$	(369	)
Embedded derivatives gains (losses)	37		157
Total net derivative gains (losses)	$	349	$	(212	)

__________________

(1) Includes foreign currency transaction gains (losses) on hedged items in cash flow and nonqualifying hedging relationships, which are not presented elsewhere in this note.

The following table presents earned income on derivatives:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Qualifying hedges:
Net investment income	$	81		$	75
Interest credited to policyholder account balances	(23		)	(6		)
Other expenses	(2		)	(3		)
Nonqualifying hedges:
Net derivative gains (losses)	133			168
Policyholder benefits and claims	2			2
Total	$	191		$	236

Nonqualifying Derivatives and Derivatives for Purposes Other Than Hedging

The following table presents the amount and location of gains (losses) recognized in income for derivatives that were not designated or not qualifying as hedging instruments:

	Net Derivative Gains (Losses)			Net Investment Income (1)			Policyholder Benefits and Claims (2)
	(In millions)
Three Months Ended March 31, 2018
Interest rate derivatives	$	(235	)	$	4		$	(7	)
Foreign currency exchange rate derivatives	387			—			2
Credit derivatives — purchased	(3		)	—			—
Credit derivatives — written	(44		)	—			—
Equity derivatives	98			1			12
Total	$	203		$	5		$	7
Three Months Ended March 31, 2017
Interest rate derivatives	$	(390	)	$	2		$	2
Foreign currency exchange rate derivatives	363			—			—
Credit derivatives — purchased	(8		)	—			—
Credit derivatives — written	32			—			—
Equity derivatives	(354		)	(3		)	(72		)
Total	$	(357	)	$	(1	)	$	(70	)

__________________

(1) Changes in estimated fair value related to economic hedges of equity method investments in joint ventures and derivatives held within Unit-linked investments.

(2) Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits.

Fair Value Hedges

The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities; and (iii) foreign currency forwards to hedge the foreign currency fair value exposure of foreign currency denominated investments.

The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges within net derivative gains (losses). The following table presents the amount of such net derivative gains (losses):

Derivatives in Fair Value Hedging Relationships	Hedged Items in Fair Value Hedging Relationships	Net Derivative Gains (Losses) Recognized for Derivatives			Net Derivative Gains (Losses) Recognized for Hedged Items			Ineffectiveness Recognized in Net Derivative Gains (Losses)
		(In millions)
Three Months Ended March 31, 2018
Interest rate swaps:	Fixed maturity securities	$	3		$	(2	)	$	1
	Policyholder liabilities (1)	(213		)	212			(1		)
Foreign currency swaps:	Foreign-denominated fixed maturity securities and mortgage loans	(27		)	27			—
	Foreign-denominated policyholder account balances (2)	18			(18		)	—
Foreign currency forwards:	Foreign-denominated fixed maturity securities	179			(168		)	11
Total		$	(40	)	$	51		$	11
Three Months Ended March 31, 2017
Interest rate swaps:	Fixed maturity securities	$	1		$	(1	)	$	—
	Policyholder liabilities (1)	(51		)	50			(1		)
Foreign currency swaps:	Foreign-denominated fixed maturity securities	(3		)	3			—
	Foreign-denominated policyholder account balances (2)	1			2			3
Foreign currency forwards:	Foreign-denominated fixed maturity securities	45			(41		)	4
Total		$	(7	)	$	13		$	6

__________________

(1) Fixed rate liabilities reported in policyholder account balances or future policy benefits.

(2) Fixed rate or floating rate liabilities.

For the Company’s foreign currency forwards, the change in the estimated fair value of the derivative related to the changes in the difference between the spot price and the forward price is excluded from the assessment of hedge effectiveness. For all other derivatives, all components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. For the three months endedMarch 31, 2018 and 2017, the component of the change in estimated fair value of derivatives that was excluded from the assessment of hedge effectiveness was ($8) million and ($7) million, respectively.

Cash Flow Hedges

The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities; (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments; (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments; and (v) interest rate swaps and interest rate forwards to hedge forecasted fixed-rate borrowings.

In certain instances, the Company discontinued cash flow hedge accounting because the forecasted transactions were no longer probable of occurring. Because certain of the forecasted transactions also were not probable of occurring within two months of the anticipated date, the Company reclassified amounts from AOCI into net derivative gains (losses). These amounts were less than $1 million and $20 million for the three months endedMarch 31, 2018 and 2017, respectively.

At March 31, 2018 and December 31, 2017, the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions did not exceed four years and five years, respectively.

At March 31, 2018 and December 31, 2017, the balance in AOCI associated with cash flow hedges was $936 million and $1.5 billion, respectively. For the three months ended March 31, 2017, the amount of deferred gains (losses) in AOCI related to Brighthouse derivatives was ($19) million and the amount of income reclassified from AOCI into income (loss) from discontinued operations was $12 million.

The following table presents the effects of derivatives in cash flow hedging relationships on the interim condensed consolidated statements of operations and comprehensive income (loss) and the interim condensed consolidated statements of equity. The table excludes the effects of Brighthouse derivatives prior to the Separation.

Derivatives in Cash Flow Hedging Relationships	Amount of Gains (Losses) Deferred in AOCI on Derivatives			Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss)							Amount and Location of Gains (Losses) Recognized in Income (Loss) on Derivatives
	(Effective Portion)			(Effective Portion)							(Ineffective Portion)
				Net Derivative Gains (Losses)			Net Investment Income		Other Expenses		Net Derivative Gains (Losses)
	(In millions)
Three Months Ended March 31, 2018
Interest rate swaps	$	(173	)	$	16		$	3	$	—	$	(2	)
Interest rate forwards	(104		)	5			1		—		—
Foreign currency swaps	(75		)	139			—		1		1
Total	$	(352	)	$	160		$	4	$	1	$	(1	)
Three Months Ended March 31, 2017
Interest rate swaps	$	5		$	8		$	4	$	—	$	1
Interest rate forwards	44			(4		)	—		—		—
Foreign currency swaps	180			208			—		1		2
Total	$	229		$	212		$	4	$	1	$	3

All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

AtMarch 31, 2018, the Company expected to reclassify ($17)million of deferred net gains (losses) on derivatives in AOCI, included in the table above, to earnings within the next 12 months.

Hedges of Net Investments in Foreign Operations

The Company uses foreign currency exchange rate derivatives, which may include foreign currency forwards and currency options, to hedge portions of its net investments in foreign operations against adverse movements in exchange rates. The Company measures ineffectiveness on these derivatives based upon the change in forward rates.

When net investments in foreign operations are sold or substantially liquidated, the amounts in AOCI are reclassified to the statement of operations.

The following table presents the effects of derivatives in net investment hedging relationships on the interim condensed consolidated statements of operations and comprehensive income (loss) and the interim condensed consolidated statements of equity:

Derivatives in Net Investment Hedging Relationships (1)	Amount of Gains (Losses) Deferred in AOCI (Effective Portion)
	(In millions)
Three Months Ended March 31, 2018
Foreign currency forwards	$	(8	)
Currency options	(149		)
Total	$	(157	)
Three Months Ended March 31, 2017
Foreign currency forwards	$	(95	)
Currency options	(231		)
Total	$	(326	)

__________________

(1) There was no ineffectiveness recognized for the Company’s hedges of net investments in foreign operations. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

At March 31, 2018 and December 31, 2017, the cumulative foreign currency translation gain (loss) recorded in AOCI related to hedges of net investments in foreign operations was $152 million and $309 million, respectively.

Credit Derivatives

In connection with synthetically created credit investment transactions, the Company writes credit default swaps for which it receives a premium to insure credit risk. Such credit derivatives are included within the nonqualifying derivatives and derivatives for purposes other than hedging table. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation. The Company’s maximum amount at risk, assuming the value of all referenced credit obligations is zero, was $11.4 billion at both March 31, 2018 and December 31, 2017. The Company can terminate these contracts at any time through cash settlement with the counterparty at an amount equal to the then current estimated fair value of the credit default swaps. At March 31, 2018 and December 31, 2017, the Company would have received $208 million and $271 million, respectively, to terminate all of these contracts.

The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at:

	March 31, 2018					December 31, 2017
Rating Agency Designation of Referenced Credit Obligations (1)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)
	(Dollars in millions)
Aaa/Aa/A
Single name credit default swaps (3)	$	7	$	381	2.4	$	7	$	375	2.6
Credit default swaps referencing indices	40		2,267		2.5	44		2,268		2.7
Subtotal	47		2,648		2.5	51		2,643		2.7
Baa
Single name credit default swaps (3)	7		656		1.9	7		605		1.8
Credit default swaps referencing indices	132		7,747		5.2	183		7,662		5.0
Subtotal	139		8,403		5.0	190		8,267		4.8
Ba
Single name credit default swaps (3)	—		20		1.2	1		115		3.4
Credit default swaps referencing indices	—		—		—	—		—		—
Subtotal	—		20		1.2	1		115		3.4
B
Single name credit default swaps (3)	2		20		3.2	2		20		3.5
Credit default swaps referencing indices	20		330		5.2	27		330		5.0
Subtotal	22		350		5.1	29		350		4.9
Total	$	208	$	11,421	4.4	$	271	$	11,375	4.3

__________________

(1) The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), Standard & Poor’s Global Ratings (“S&P”) and Fitch Ratings. If no rating is available from a rating agency, then an internally developed rating is used.

(2) The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts.

(3) Single name credit default swaps may be referenced to the credit of corporations, foreign governments, or state and political subdivisions.

The Company has also entered into credit default swaps to purchase credit protection on certain of the referenced credit obligations in the table above. As a result, the maximum amount of potential future recoveries available to offset the $11.4 billion of future payments under credit default provisions at both March 31, 2018 and December 31, 2017 set forth in the table above were $16 million and $27 million at March 31, 2018 and December 31, 2017, respectively.

Credit Risk on Freestanding Derivatives

The Company may be exposed to credit-related losses in the event of nonperformance by its counterparties to derivatives. Generally, the current credit exposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements.

The Company manages its credit risk related to derivatives by entering into transactions with creditworthy counterparties and establishing and monitoring exposure limits. The Company’s OTC-bilateral derivative transactions are governed by ISDA Master Agreements which provide for legally enforceable set-off and close-out netting of exposures to specific counterparties in the event of early termination of a transaction, which includes, but is not limited to, events of default and bankruptcy. In the event of an early termination, the Company is permitted to set off receivables from the counterparty against payables to the same counterparty arising out of all included transactions. Substantially all of the Company’s ISDA Master Agreements also include Credit Support Annex provisions which require both the pledging and accepting of collateral in connection with its OTC-bilateral derivatives.

The Company’s OTC-cleared derivatives are effected through central clearing counterparties and its exchange-traded derivatives are effected through regulated exchanges. Such positions are marked to market and margined on a daily basis (both initial margin and variation margin), and the Company has minimal exposure to credit-related losses in the event of nonperformance by counterparties to such derivatives.

See Note 8 for a description of the impact of credit risk on the valuation of derivatives.

The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:

	March 31, 2018						December 31, 2017
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement	Assets			Liabilities			Assets			Liabilities
	(In millions)
Gross estimated fair value of derivatives:
OTC-bilateral (1)	$	7,733		$	3,948		$	7,955		$	4,059
OTC-cleared (1), (6)	230			47			649			223
Exchange-traded	9			30			22			8
Total gross estimated fair value of derivatives (1)	7,972			4,025			8,626			4,290
Amounts offset on the interim condensed consolidated balance sheets	—			—			—			—
Estimated fair value of derivatives presented on the interim condensed consolidated balance sheets (1), (6)	7,972			4,025			8,626			4,290
Gross amounts not offset on the interim condensed consolidated balance sheets:
Gross estimated fair value of derivatives: (2)
OTC-bilateral	(2,376		)	(2,376		)	(2,528		)	(2,528		)
OTC-cleared	(21		)	(21		)	(35		)	(35		)
Exchange-traded	(1		)	(1		)	(1		)	(1		)
Cash collateral: (3), (4)
OTC-bilateral	(4,082		)	—			(4,169		)	—
OTC-cleared	(194		)	(9		)	(584		)	(179		)
Exchange-traded	—			(21		)	—			(5		)
Securities collateral: (5)
OTC-bilateral	(981		)	(1,519		)	(1,004		)	(1,474		)
OTC-cleared	—			(17		)	—			(9		)
Exchange-traded	—			(8		)	—			(2		)
Net amount after application of master netting agreements and collateral	$	317		$	53		$	305		$	57

__________________

(1) At March 31, 2018 and December 31, 2017, derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $48 million and $75 million, respectively, and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of ($50) million and ($49) million, respectively.

(2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals.

(3) Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet.

(4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At March 31, 2018 and December 31, 2017, the Company received excess cash collateral of $204 million and $253 million, respectively, and provided excess cash collateral of $263 million and $272 million, respectively, which is not included in the table above due to the foregoing limitation.

(5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at March 31, 2018, none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At March 31, 2018 and December 31, 2017, the Company received excess securities collateral with an estimated fair value of $74 million and $108 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At March 31, 2018 and December 31, 2017, the Company provided excess securities collateral with an estimated fair value of $301 million and $305 million, respectively, for its OTC-bilateral derivatives, and $507 million and $522 million, respectively, for its OTC-cleared derivatives, and $77 million and $89 million, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation.

(6) Effective January 16, 2018, the LCH amended its rulebook, resulting in the characterization of variation margin transfers as settlement payments, as opposed to adjustments to collateral. See Note 1 for further information on the LCH amendments.

The Company’s collateral arrangements for its OTC-bilateral derivatives generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the collateral amount owed by that counterparty reaches a minimum transfer amount. A small number of these arrangements also include credit-contingent provisions that include a threshold above which collateral must be posted. Such agreements provide for a reduction of these thresholds (on a sliding scale that converges toward zero) in the event of downgrades in the credit ratings of MetLife, Inc. and/or the counterparty. In addition, substantially all of the Company’s netting agreements for derivatives contain provisions that require both the Company and the counterparty to maintain a specific investment grade credit rating from each of Moody’s and S&P. If a party’s credit or financial strength rating, as applicable, were to fall below that specific investment grade credit rating, that party would be in violation of these provisions, and the other party to the derivatives could terminate the transactions and demand immediate settlement and payment based on such party’s reasonable valuation of the derivatives.

The following table presents the estimated fair value of the Company’s OTC-bilateral derivatives that were in a net liability position after considering the effect of netting agreements, together with the estimated fair value and balance sheet location of the collateral pledged. The table also presents the incremental collateral that MetLife, Inc. would be required to provide if there was a one-notch downgrade in MetLife, Inc.’s senior unsecured debt rating at the reporting date or if the Company’s credit or financial strength rating, as applicable, at the reporting date sustained a downgrade to a level that triggered full overnight collateralization or termination of the derivative position. OTC-bilateral derivatives that are not subject to collateral agreements are excluded from this table.

	March 31, 2018						December 31, 2017
	Derivatives Subject to Credit- Contingent Provisions		Derivatives Not Subject to Credit- Contingent Provisions		Total		Derivatives Subject to Credit- Contingent Provisions		Derivatives Not Subject to Credit- Contingent Provisions		Total
	(In millions)
Estimated Fair Value of Derivatives in a Net Liability Position (1)	$	1,533	$	39	$	1,572	$	1,508	$	24	$	1,532
Estimated Fair Value of Collateral Provided:
Fixed maturity securities	$	1,734	$	50	$	1,784	$	1,675	$	26	$	1,701
Cash	$	—	$	—	$	—	$	—	$	—	$	—
Estimated Fair Value of Incremental Collateral Provided Upon:
One-notch downgrade in the Company’s credit or financial strength rating, as applicable	$	14	$	—	$	14	$	15	$	—	$	15
Downgrade in the Company’s credit or financial strength rating, as applicable, to a level that triggers full overnight collateralization or termination of the derivative position	$	15	$	—	$	15	$	20	$	—	$	20

__________________

(1) After taking into consideration the existence of netting agreements.

Embedded Derivatives

The Company issues certain products or purchases certain investments that contain embedded derivatives that are required to be separated from their host contracts and accounted for as freestanding derivatives. These host contracts principally include: variable annuities with guaranteed minimum benefits, including GMWBs, GMABs and certain GMIBs; ceded reinsurance of guaranteed minimum benefits related to certain GMIBs; assumed reinsurance of guaranteed minimum benefits related to GMWBs and GMABs; funding agreements with equity or bond indexed crediting rates; funds withheld on ceded reinsurance; fixed annuities with equity-indexed returns; and certain debt and equity securities.

The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at:

	Balance Sheet Location	March 31, 2018		December 31, 2017
		(In millions)
Embedded derivatives within asset host contracts:
Ceded guaranteed minimum benefits	Premiums, reinsurance and other receivables	$	157	$	144
Options embedded in debt or equity securities (1)	Investments	—		(132		)
Embedded derivatives within asset host contracts		$	157	$	12
Embedded derivatives within liability host contracts:
Direct guaranteed minimum benefits	Policyholder account balances	$	23	$	32
Assumed guaranteed minimum benefits	Policyholder account balances	392		291
Funds withheld on ceded reinsurance	Other liabilities	2		25
Fixed annuities with equity indexed returns	Policyholder account balances	68		70
Embedded derivatives within liability host contracts		$	485	$	418

__________________

(1) In connection with the adoption of new guidance related to the recognition and measurement of financial instruments (see Note 1), effective January 1, 2018, the Company is no longer required to bifurcate and account separately for derivatives embedded in equity securities. Beginning January 1, 2018, the entire change in fair value of equity securities is recognized as a component of net investment gains and losses.

The following table presents changes in estimated fair value related to embedded derivatives:

	Three Months Ended March 31,
	2018		2017
	(In millions)
Net derivative gains (losses) (1)	$	37	$	157

__________________

(1) The valuation of guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $20 million and ($52) million for the three months endedMarch 31, 2018 and 2017, respectively.

XML

Fair Value

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value

8. Fair Value

onsiderable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts.

Recurring Fair Value Measurements

The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below at:

	March 31, 2018
	Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	77,597	$	4,237	$	81,834
Foreign government	—		64,331		179		64,510
Foreign corporate	—		48,890		6,573		55,463
U.S. government and agency	22,873		20,954		—		43,827
RMBS	—		24,155		3,256		27,411
State and political subdivision	—		12,192		—		12,192
ABS	—		10,739		1,025		11,764
CMBS	—		7,409		301		7,710
Total fixed maturity securities	22,873		266,267		15,571		304,711
Equity securities	909		213		422		1,544
Unit-linked and FVO Securities (1)	13,705		2,453		286		16,444
Other limited partnership interests	—		—		194		194
Short-term investments (2)	2,845		990		615		4,450
Residential mortgage loans — FVO	—		—		438		438
Other investments	83		90		—		173
Derivative assets: (3)
Interest rate	2		4,728		14		4,744
Foreign currency exchange rate	—		2,120		157		2,277
Credit	—		180		35		215
Equity market	7		603		78		688
Total derivative assets	9		7,631		284		7,924
Embedded derivatives within asset host contracts (4)	—		—		157		157
Separate account assets (5)	88,618		106,511		1,229		196,358
Total assets	$	129,042	$	384,155	$	19,196	$	532,393
Liabilities
Derivative liabilities: (3)
Interest rate	$	3	$	348	$	243	$	594
Foreign currency exchange rate	8		2,585		29		2,622
Credit	—		43		—		43
Equity market	19		603		194		816
Total derivative liabilities	30		3,579		466		4,075
Embedded derivatives within liability host contracts (4)	—		—		485		485
Separate account liabilities (5)	—		12		5		17
Total liabilities	$	30	$	3,591	$	956	$	4,577

	December 31, 2017
	Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	78,171	$	4,490	$	82,661
Foreign government	—		61,325		209		61,534
Foreign corporate	—		48,840		6,729		55,569
U.S. government and agency	26,052		21,342		—		47,394
RMBS	—		25,339		3,461		28,800
State and political subdivision	—		12,455		—		12,455
ABS	—		11,204		1,087		12,291
CMBS	—		7,934		293		8,227
Total fixed maturity securities	26,052		266,610		16,269		308,931
Equity securities	1,104		981		428		2,513
Unit-linked and FVO Securities (1)	14,028		2,355		362		16,745
Short-term investments (2)	3,001		1,252		33		4,286
Residential mortgage loans — FVO	—		—		520		520
Other investments	81		84		—		165
Derivative assets: (3)
Interest rate	2		5,553		8		5,563
Foreign currency exchange rate	2		1,954		113		2,069
Credit	—		240		38		278
Equity market	18		548		75		641
Total derivative assets	22		8,295		234		8,551
Embedded derivatives within asset host contracts (4)	—		—		144		144
Separate account assets (5)	89,916		114,124		961		205,001
Total assets	$	134,204	$	393,701	$	18,951	$	546,856
Liabilities
Derivative liabilities: (3)
Interest rate	$	4	$	638	$	130	$	772
Foreign currency exchange rate	—		2,553		37		2,590
Credit	—		43		—		43
Equity market	4		731		199		934
Total derivative liabilities	8		3,965		366		4,339
Embedded derivatives within liability host contracts (4)	—		—		418		418
Separate account liabilities (5)	—		7		2		9
Total liabilities	$	8	$	3,972	$	786	$	4,766

__________________

(1) Unit-linked and FVO Securities were comprised of over 85% Unit-linked investments at both March 31, 2018 and December 31, 2017.

(2) Short-term investments as presented in the tables above differ from the amounts presented on the consolidated balance sheets because certain short-term investments are not measured at estimated fair value on a recurring basis.

(3) Derivative assets are presented within other invested assets on the interim condensed consolidated balance sheets and derivative liabilities are presented within other liabilities on the interim condensed consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the interim condensed consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables.

(4) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables and other invested assets on the interim condensed consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the interim condensed consolidated balance sheets. At March 31, 2018 and December 31, 2017, debt and equity securities also included embedded derivatives of $0 and ($132) million, respectively.

(5) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. Separate account liabilities presented in the tables above represent derivative liabilities.

The following describes the valuation methodologies used to measure assets and liabilities at fair value. The description includes the valuation techniques and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy.

Investments

Valuation Controls and Procedures

On behalf of the Company’s Chief Investment Officer and Chief Financial Officer (“CFO”), a pricing and valuation committee that is independent of the trading and investing functions and comprised of senior management, provides oversight of control systems and valuation policies for securities, mortgage loans and derivatives. On a quarterly basis, this committee reviews and approves new transaction types and markets, ensures that observable market prices and market-based parameters are used for valuation, wherever possible, and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. This committee also provides oversight of the selection of independent third-party pricing providers and the controls and procedures to evaluate third-party pricing. Periodically, the Chief Accounting Officer reports to the Audit Committee of MetLife, Inc.’s Board of Directors regarding compliance with fair value accounting standards.

The Company reviews its valuation methodologies on an ongoing basis and revises those methodologies when necessary based on changing market conditions. Assurance is gained on the overall reasonableness and consistent application of input assumptions, valuation methodologies and compliance with fair value accounting standards through controls designed to ensure valuations represent an exit price. Several controls are utilized, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, comparing fair value estimates to management’s knowledge of the current market, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. The Company ensures that prices received from independent brokers, also referred to herein as “consensus pricing,” represent a reasonable estimate of fair value by considering such pricing relative to the Company’s knowledge of the current market dynamics and current pricing for similar financial instruments. While independent non-binding broker quotations are utilized, they are not used for a significant portion of the portfolio. For example, fixed maturity securities priced using independent non-binding broker quotations represent less than 1% of the total estimated fair value of fixed maturity securities and 2% of the total estimated fair value of Level 3 fixed maturity securities at March 31, 2018.

The Company also applies a formal process to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained, or an internally developed valuation is prepared. Internally developed valuations of current estimated fair value, which reflect internal estimates of liquidity and nonperformance risks, compared with pricing received from the independent pricing services, did not produce material differences in the estimated fair values for the majority of the portfolio; accordingly, overrides were not material. This is, in part, because internal estimates of liquidity and nonperformance risks are generally based on available market evidence and estimates used by other market participants. In the absence of such market-based evidence, management’s best estimate is used.

Securities, Short-term Investments and Other Investments

When available, the estimated fair value of these financial instruments is based on quoted prices in active markets that are readily and regularly obtainable. Generally, these are the most liquid of the Company’s securities holdings and valuation of these securities does not involve management’s judgment.

When quoted prices in active markets are not available, the determination of estimated fair value is based on market standard valuation methodologies, giving priority to observable inputs. The significant inputs to the market standard valuation methodologies for certain types of securities with reasonable levels of price transparency are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. When observable inputs are not available, the market standard valuation methodologies rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs can be based in large part on management’s judgment or estimation and cannot be supported by reference to market activity. Even though these inputs are unobservable, management believes they are consistent with what other market participants would use when pricing such securities and are considered appropriate given the circumstances.

The estimated fair value of Unit-linked and FVO Securities and other investments is determined on a basis consistent with the methodologies described herein for securities.

Other Limited Partnership Interests

The estimated fair values of other limited partnership interests are generally based on the Company’s share of the net asset value (“NAV”) of the other limited partnership interests as provided on the financial statements of the investee. In certain circumstances, management may adjust the NAV when it has sufficient evidence to support applying such adjustments.

The valuation of most instruments listed below is determined using independent pricing sources, matrix pricing, discounted cash flow methodologies or other similar techniques that use either observable market inputs or unobservable inputs.

Instrument	Level 2 Observable Inputs			Level 3 Unobservable Inputs
Fixed maturity securities
U.S. corporate and Foreign corporate securities
	Valuation Approaches: Principally the market and income approaches.			Valuation Approaches: Principally the market approach.
	Key Inputs:			Key Inputs:
	•	quoted prices in markets that are not active		•	illiquidity premium
	•	benchmark yields; spreads off benchmark yields; new issuances; issuer rating		•	delta spread adjustments to reflect specific credit-related issues
	•	trades of identical or comparable securities; duration		•	credit spreads
	•	Privately-placed securities are valued using the additional key inputs:		•	quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2
		•	market yield curve; call provisions
		•	observable prices and spreads for similar public or private securities that incorporate the credit quality and industry sector of the issuer	•	independent non-binding broker quotations
		•	delta spread adjustments to reflect specific credit-related issues
Foreign government, U.S. government and agency and State and political subdivision securities
	Valuation Approaches: Principally the market approach.			Valuation Approaches: Principally the market approach.
	Key Inputs:			Key Inputs:
	•	quoted prices in markets that are not active		•	independent non-binding broker quotations
	•	benchmark U.S. Treasury yield or other yields		•	quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2
	•	the spread off the U.S. Treasury yield curve for the identical security
	•	issuer ratings and issuer spreads; broker-dealer quotes		•	credit spreads
	•	comparable securities that are actively traded
Structured Securities
	Valuation Approaches: Principally the market and income approaches.			Valuation Approaches: Principally the market and income approaches.
	Key Inputs:			Key Inputs:
	•	quoted prices in markets that are not active		•	credit spreads
	•	spreads for actively traded securities; spreads off benchmark yields		•	quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2
	•	expected prepayment speeds and volumes
	•	current and forecasted loss severity; ratings; geographic region		•	independent non-binding broker quotations
	•	weighted average coupon and weighted average maturity
	•	average delinquency rates; debt-service coverage ratios
	•	issuance-specific information, including, but not limited to:
		•	collateral type; structure of the security; vintage of the loans
		•	payment terms of the underlying assets
		•	payment priority within the tranche; deal performance

Instrument	Level 2 Observable Inputs		Level 3 Unobservable Inputs
Equity securities
	Valuation Approaches: Principally the market approach.		Valuation Approaches: Principally the market and income approaches.
	Key Input:		Key Inputs:
	•	quoted prices in markets that are not considered active	•	credit ratings; issuance structures
			•	quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2
			•	independent non-binding broker quotations
Unit-linked and FVO Securities, Short-term investments, Other limited partnership interests and Other investments
	•	Unit-linked and FVO Securities include mutual fund interests without readily determinable fair values given prices are not published publicly. Valuation of these mutual funds is based upon quoted prices or reported NAV provided by the fund managers, which were based on observable inputs.	•	Unit-linked and FVO Securities and short-term investments are of a similar nature and class to the fixed maturity and equity securities described above; accordingly, the valuation approaches and unobservable inputs used in their valuation are also similar to those described above.
	•	All other investments are of a similar nature and class to the fixed maturity and equity securities described above; accordingly, the valuation approaches and observable inputs used in their valuation are also similar to those described above.	•	Valuation approaches for other limited partnership interests are discussed below.
Residential mortgage loans — FVO
	•	N/A	Valuation Approaches: Principally the market approach.
			Valuation Techniques and Key Inputs: These investments are based primarily on matrix pricing or other similar techniques that utilize inputs from mortgage servicers that are unobservable or cannot be derived principally from, or corroborated by, observable market data.
Separate account assets and Separate account liabilities (1)
Mutual funds and hedge funds without readily determinable fair values as prices are not published publicly
	Key Input:		•	N/A
	•	quoted prices or reported NAV provided by the fund managers
Other limited partnership interests
	•	N/A	•	Valued giving consideration to the underlying holdings of the partnerships and adjusting, if appropriate.
			Key Inputs:
			•	liquidity; bid/ask spreads; performance record of the fund manager
			•	other relevant variables that may impact the exit value of the particular partnership interest

__________________

(1) Estimated fair value equals carrying value, based on the value of the underlying assets, including: mutual fund interests, fixed maturity securities, equity securities, derivatives, hedge funds, other limited partnership interests, short-term investments and cash and cash equivalents. Fixed maturity securities, equity securities, derivatives, short-term investments and cash and cash equivalents are similar in nature to the instruments described under “— Securities, Short-term Investments and Other Investments,” “— Other Limited Partnership Interests” and “— Derivatives — Freestanding Derivatives.”

Derivatives

The estimated fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives, or through the use of pricing models for OTC-bilateral and OTC-cleared derivatives. The determination of estimated fair value, when quoted market values are not available, is based on market standard valuation methodologies and inputs that management believes are consistent with what other market participants would use when pricing such instruments. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk, nonperformance risk, volatility, liquidity and changes in estimates and assumptions used in the pricing models. The valuation controls and procedures for derivatives are described in “— Investments.”

The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Certain OTC-bilateral and OTC-cleared derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments.

Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income.

The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period.

Freestanding Derivatives

Level 2 Valuation Approaches and Key Inputs:

This level includes all types of derivatives utilized by the Company with the exception of exchange-traded derivatives included within Level 1 and those derivatives with unobservable inputs as described in Level 3.

Level 3 Valuation Approaches and Key Inputs:

These valuation methodologies generally use the same inputs as described in the corresponding sections for Level 2 measurements of derivatives. However, these derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data.

Freestanding derivatives are principally valued using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models. Key inputs are as follows:

Instrument		Interest Rate		Foreign Currency Exchange Rate		Credit		Equity Market
Inputs common to Level 2 and Level 3 by instrument type	•	swap yield curves	•	swap yield curves	•	swap yield curves	•	swap yield curves
	•	basis curves	•	basis curves	•	credit curves	•	spot equity index levels
	•	interest rate volatility (1)	•	currency spot rates	•	recovery rates	•	dividend yield curves
			•	cross currency basis curves			•	equity volatility (1)
			•	currency volatility (1)
Level 3	•	swap yield curves (2)	•	swap yield curves (2)	•	swap yield curves (2)	•	dividend yield curves (2)
	•	basis curves (2)	•	basis curves (2)	•	credit curves (2)	•	equity volatility (1), (2)
	•	repurchase rates	•	cross currency basis curves (2)	•	credit spreads	•	correlation between model inputs (1)
			•	currency correlation	•	repurchase rates
			•	currency volatility (1)	•	independent non-binding broker quotations

__________________

(1) Option-based only.

(2) Extrapolation beyond the observable limits of the curve(s).

Embedded Derivatives

Embedded derivatives principally include certain direct, assumed and ceded variable annuity guarantees, equity or bond indexed crediting rates within certain funding agreements and annuity contracts, and those related to funds withheld on ceded reinsurance agreements. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income.

The Company issues certain variable annuity products with guaranteed minimum benefits. GMWBs, GMABs and certain GMIBs contain embedded derivatives, which are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets.

The Company’s actuarial department calculates the fair value of these embedded derivatives, which are estimated as the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations concerning policyholder behavior. The calculation is based on in-force business, and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates.

Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience.

The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife, Inc.’s debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuing insurance subsidiaries as compared to MetLife, Inc.

Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees. These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; changes in nonperformance risk; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income.

The Company ceded the risk associated with certain of the GMIBs previously described. These reinsurance agreements contain embedded derivatives which are included within premiums, reinsurance and other receivables on the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses) or policyholder benefits and claims depending on the statement of operations classification of the direct risk. The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer.

The estimated fair value of the embedded derivatives within funds withheld related to certain ceded reinsurance is determined based on the change in estimated fair value of the underlying assets held by the Company in a reference portfolio backing the funds withheld liability. The estimated fair value of the underlying assets is determined as described in “— Investments — Securities, Short-term Investments and Other Investments.” The estimated fair value of these embedded derivatives is included, along with their funds withheld hosts, in other liabilities on the consolidated balance sheets with changes in estimated fair value recorded in net derivative gains (losses). Changes in the credit spreads on the underlying assets, interest rates and market volatility may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income.

The estimated fair value of the embedded equity and bond indexed derivatives contained in certain funding agreements is determined using market standard swap valuation models and observable market inputs, including a nonperformance risk adjustment. The estimated fair value of these embedded derivatives are included, along with their funding agreements host, within policyholder account balances with changes in estimated fair value recorded in net derivative gains (losses). Changes in equity and bond indices, interest rates and the Company’s credit standing may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income.

The Company issues certain annuity contracts which allow the policyholder to participate in returns from equity indices. These equity indexed features are embedded derivatives which are measured at estimated fair value separately from the host fixed annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets.

The estimated fair value of the embedded equity indexed derivatives, based on the present value of future equity returns to the policyholder using actuarial and present value assumptions including expectations concerning policyholder behavior, is calculated by the Company’s actuarial department. The calculation is based on in-force business and uses standard capital market techniques, such as Black-Scholes, to calculate the value of the portion of the embedded derivative for which the terms are set. The portion of the embedded derivative covering the period beyond where terms are set is calculated as the present value of amounts expected to be spent to provide equity indexed returns in those periods. The valuation of these embedded derivatives also includes the establishment of a risk margin, as well as changes in nonperformance risk.

Embedded Derivatives Within Asset and Liability Host Contracts

Level 3 Valuation Approaches and Key Inputs:

Direct and assumed guaranteed minimum benefits

These embedded derivatives are principally valued using the income approach. Valuations are based on option pricing techniques, which utilize significant inputs that may include swap yield curves, currency exchange rates and implied volatilities. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include: the extrapolation beyond observable limits of the swap yield curves and implied volatilities, actuarial assumptions for policyholder behavior and mortality and the potential variability in policyholder behavior and mortality, nonperformance risk and cost of capital for purposes of calculating the risk margin.

Reinsurance ceded on certain guaranteed minimum benefits

These embedded derivatives are principally valued using the income approach. The valuation techniques and significant market standard unobservable inputs used in their valuation are similar to those described above in “— Direct and assumed guaranteed minimum benefits” and also include counterparty credit spreads.

Transfers between Levels

Overall, transfers between levels occur when there are changes in the observability of inputs and market activity. Transfers into or out of any level are assumed to occur at the beginning of the period.

Transfers between Levels 1 and 2:

There were no transfers between Levels 1 and 2 for assets and liabilities measured at estimated fair value and still held at March 31, 2018 and December 31, 2017.

Transfers into or out of Level 3:

Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable.

Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at:

					March 31, 2018				December 31, 2017				Impact of Increase in Input on Estimated Fair Value (2)
	Valuation Techniques		Significant Unobservable Inputs		Range			Weighted Average (1)	Range			Weighted Average (1)
Fixed maturity securities (3)
U.S. corporate and foreign corporate	•	Matrix pricing	•	Offered quotes (4)	89	-	139	107	83	-	142	110	Increase
	•	Market pricing	•	Quoted prices (4)	25	-	846	124	10	-	443	121	Increase
	•	Consensus pricing	•	Offered quotes (4)	97	-	104	102	97	-	104	101	Increase
RMBS	•	Market pricing	•	Quoted prices (4)	—	-	109	94	—	-	126	94	Increase (5)
ABS	•	Market pricing	•	Quoted prices (4)	3	-	117	100	5	-	117	100	Increase (5)
	•	Consensus pricing	•	Offered quotes (4)	99	-	102	100	100	-	103	100	Increase (5)
Derivatives
Interest rate	•	Present value techniques	•	Swap yield (6)	277	-	313		200	-	300		Increase (7)
			•	Repurchase rates (8)	(4)	-	6		(5)	-	5		Decrease (7)
Foreign currency exchange rate	•	Present value techniques	•	Swap yield (6)	(19)	-	328		(14)	-	309		Increase (7)
Credit	•	Present value techniques	•	Credit spreads (9)	97	-	100		—	-	—		Decrease (7)
	•	Consensus pricing	•	Offered quotes (10)
Equity market	•	Present value techniques or option pricing models	•	Volatility (11)	20%	-	31%		11%	-	31%		Increase (7)
			•	Correlation (12)	10%	-	30%		10%	-	30%
Embedded derivatives
Direct, assumed and ceded guaranteed minimum benefits	•	Option pricing techniques	•	Mortality rates:
				Ages 0 - 40	0%	-	0.21%		0%	-	0.21%		Decrease (13)
				Ages 41 - 60	0.03%	-	0.75%		0.03%	-	0.75%		Decrease (13)
				Ages 61 - 115	0.15%	-	100%		0.15%	-	100%		Decrease (13)
			•	Lapse rates:
				Durations 1 - 10	0.25%	-	100%		0.25%	-	100%		Decrease (14)
				Durations 11 - 20	2%	-	100%		2%	-	100%		Decrease (14)
				Durations 21 - 116	1.25%	-	100%		1.25%	-	100%		Decrease (14)
			•	Utilization rates	0%	-	25%		0%	-	25%		Increase (15)
			•	Withdrawal rates	0%	-	20%		0%	-	20%		(16)
			•	Long-term equity volatilities	9.04%	-	33%		8.25%	-	33%		Increase (17)
			•	Nonperformance risk spread	0.03%	-	1.75%		0.02%	-	1.32%		Decrease (18)

__________________

(1) The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities.

(2) The impact of a decrease in input would have the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions.

(3) Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations.

(4) Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par.

(5) Changes in the assumptions used for the probability of default are accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates.

(6) Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curves are utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.

(7) Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions.

(8) Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points.

(9) Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps.

(10) At both March 31, 2018 and December 31, 2017, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value.

(11) Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.

(12) Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations.

(13) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(14) Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(15) The utilization rate assumption estimates the percentage of contractholders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(16) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value.

(17) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(18) Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative.

The following is a summary of the valuation techniques and significant unobservable inputs used in the fair value measurement of assets and liabilities classified within Level 3 that are not included in the preceding table. Generally, all other classes of securities classified within Level 3, including those within separate account assets, and embedded derivatives within funds withheld related to certain ceded reinsurance, use the same valuation techniques and significant unobservable inputs as previously described for Level 3 securities. This includes matrix pricing and discounted cash flow methodologies, inputs such as quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2, as well as independent non-binding broker quotations. The residential mortgage loans — FVO are valued using independent non-binding broker quotations and internal models including matrix pricing and discounted cash flow methodologies using current interest rates. Other limited partnership interests valuations are generally based on the Company’s share of the NAV as provided on the financial statements of the investees. In certain circumstances, management may adjust the NAV when it has sufficient evidence to support applying such adjustments. The sensitivity of the estimated fair value to changes in the significant unobservable inputs for these other assets and liabilities is similar in nature to that described in the preceding table.

The following tables summarize the change of all assets (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3):

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	Corporate (1)			Foreign Government			Structured Securities			State and Political Subdivision			Equity Securities			Unit-linked and FVO Securities
	(In millions)
Three Months Ended March 31, 2018
Balance, beginning of period	$	11,219		$	209		$	4,841		$	—		$	428		$	362
Total realized/unrealized gains (losses) included in net income (loss) (2), (3)	7			1			23			—			(6		)	5
Total realized/unrealized gains (losses) included in AOCI	(68		)	(3		)	24			—			—			—
Purchases (4)	512			2			657			—			1			27
Sales (4)	(542		)	(2		)	(324		)	—			(1		)	(59		)
Issuances (4)	—			—			—			—			—			—
Settlements (4)	—			—			—			—			—			—
Transfers into Level 3 (5)	46			—			45			—			—			—
Transfers out of Level 3 (5)	(364		)	(28		)	(684		)	—			—			(49		)
Balance, end of period	$	10,810		$	179		$	4,582		$	—		$	422		$	286
Three Months Ended March 31, 2017
Balance, beginning of period	$	11,537		$	289		$	5,215		$	10		$	468		$	287
Total realized/unrealized gains (losses) included in net income (loss) (2), (3)	4			3			32			—			(10		)	7
Total realized/unrealized gains (losses) included in AOCI	231			6			48			—			22			—
Purchases (4)	941			12			1,020			—			1			69
Sales (4)	(418		)	(17		)	(400		)	—			(1		)	(17		)
Issuances (4)	—			—			—			—			—			—
Settlements (4)	—			—			—			—			—			—
Transfers into Level 3 (5)	79			4			23			—			—			2
Transfers out of Level 3 (5)	(1,406		)	(8		)	(233		)	(10		)	—			(13		)
Balance, end of period	$	10,968		$	289		$	5,705		$	—		$	480		$	335
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2018 (6)	$	1		$	1		$	21		$	—		$	—		$	4
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2017 (6)	$	4		$	2		$	24		$	—		$	(10	)	$	7

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Other Limited Partnership Interests			Short-term Investments			Residential Mortgage Loans — FVO			Net Derivatives (7)			Net Embedded Derivatives (8)			Separate Accounts (9)
	(In millions)
Three Months Ended March 31, 2018
Balance, beginning of period	$	—		$	33		$	520		$	(132	)	$	(274	)	$	959
Total realized/unrealized gains (losses) included in net income (loss) (2), (3)	(5		)	—			2			11			36			2
Total realized/unrealized gains (losses) included in AOCI	2			—			—			(104		)	(16		)	—
Purchases (4)	—			605			—			—			—			409
Sales (4)	(19		)	(3		)	(64		)	—			—			(124		)
Issuances (4)	—			—			—			—			—			1
Settlements (4)	—			—			(20		)	43			(74		)	(1		)
Transfers into Level 3 (5)	216			—			—			—			—			53
Transfers out of Level 3 (5)	—			(20		)	—			—			—			(75		)
Balance, end of period	$	194		$	615		$	438		$	(182	)	$	(328	)	$	1,224
Three Months Ended March 31, 2017
Balance, beginning of period	$	—		$	46		$	566		$	(562	)	$	(729	)	$	1,141
Total realized/unrealized gains (losses) included in net income (loss) (2), (3)	—			—			(3		)	33			169			(24		)
Total realized/unrealized gains (losses) included in AOCI	—			—			—			44			(59		)	—
Purchases (4)	—			776			135			—			—			136
Sales (4)	—			(3		)	(33		)	—			—			(42		)
Issuances (4)	—			—			—			(7		)	—			39
Settlements (4)	—			—			(26		)	95			(76		)	(33		)
Transfers into Level 3 (5)	—			—			—			—			—			69
Transfers out of Level 3 (5)	—			(40		)	—			—			—			(102		)
Balance, end of period	$	—		$	779		$	639		$	(397	)	$	(695	)	$	1,184
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2018 (6)	$	(5	)	$	—		$	(8	)	$	48		$	31		$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2017 (6)	$	—		$	—		$	(3	)	$	26		$	167		$	—

__________________

(1) Comprised of U.S. and foreign corporate securities.

(2) Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses), while changes in estimated fair value of residential mortgage loans — FVO are included in net investment income. Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

(3) Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.

(4) Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements.

(5) Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward.

(6) Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

(7) Freestanding derivative assets and liabilities are presented net for purposes of the rollforward.

(8) Embedded derivative assets and liabilities are presented net for purposes of the rollforward.

(9) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes are presented within net investment gains (losses). Separate account assets and liabilities are presented net for the purposes of the rollforward.

Fair Value Option

The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis. The following table presents information for residential mortgage loans, which are accounted for under the FVO and were initially measured at fair value.

	March 31, 2018			December 31, 2017
	(In millions)
Unpaid principal balance	$	544		$	650
Difference between estimated fair value and unpaid principal balance	(106		)	(130		)
Carrying value at estimated fair value	$	438		$	520
Loans in nonaccrual status	$	159		$	198
Loans more than 90 days past due	$	78		$	94
Loans in nonaccrual status or more than 90 days past due, or both — difference between aggregate estimated fair value and unpaid principal balance	$	(82	)	$	(102	)

Fair Value of Financial Instruments Carried at Other Than Fair Value

The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income, payables for collateral under securities loaned and other transactions, short-term debt and those short-term investments that are not securities, such as time deposits, and therefore are not included in the three level hierarchy table disclosed in the “— Recurring Fair Value Measurements” section. The estimated fair value of the excluded financial instruments, which are primarily classified in Level 2, approximates carrying value as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality. All remaining balance sheet amounts excluded from the tables below are not considered financial instruments subject to this disclosure.

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:

	March 31, 2018
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	70,617	$	—	$	—	$	71,845	$	71,845
Policy loans	$	9,744	$	—	$	341	$	11,082	$	11,423
Other invested assets	$	1,264	$	—	$	812	$	452	$	1,264
Premiums, reinsurance and other receivables	$	4,358	$	—	$	1,450	$	3,025	$	4,475
Other assets	$	345	$	—	$	175	$	199	$	374
Liabilities
Policyholder account balances	$	114,715	$	—	$	—	$	116,193	$	116,193
Long-term debt	$	15,696	$	—	$	16,973	$	—	$	16,973
Collateral financing arrangement	$	1,108	$	—	$	—	$	898	$	898
Junior subordinated debt securities	$	3,145	$	—	$	4,073	$	—	$	4,073
Other liabilities	$	3,810	$	—	$	2,113	$	2,252	$	4,365
Separate account liabilities	$	118,151	$	—	$	118,151	$	—	$	118,151

	December 31, 2017
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	68,211	$	—	$	—	$	69,797	$	69,797
Policy loans	$	9,669	$	—	$	336	$	11,176	$	11,512
Other limited partnership interests	$	219	$	—	$	—	$	216	$	216
Other invested assets	$	443	$	—	$	—	$	443	$	443
Premiums, reinsurance and other receivables	$	4,155	$	—	$	1,283	$	3,056	$	4,339
Other assets	$	285	$	—	$	189	$	139	$	328
Liabilities
Policyholder account balances	$	114,355	$	—	$	—	$	116,534	$	116,534
Long-term debt	$	15,675	$	—	$	17,773	$	—	$	17,773
Collateral financing arrangement	$	1,121	$	—	$	—	$	894	$	894
Junior subordinated debt securities	$	3,144	$	—	$	4,319	$	—	$	4,319
Other liabilities	$	3,208	$	—	$	1,496	$	2,345	$	3,841
Separate account liabilities	$	124,011	$	—	$	124,011	$	—	$	124,011

XML

Junior Subordinated Debt Securities

3 Months Ended

Mar. 31, 2018

Junior Subordinated Notes [Abstract]

Junior Subordinated Debt Securities [Text Block]

9. Junior Subordinated Debt Securities

On February 10, 2017, MetLife, Inc. exchanged $750 million aggregate principal amount of its 9.250% Fixed-to-Floating Rate Junior Subordinated Debentures due 2068 for $750 million aggregate liquidation preference of the 9.250% Fixed-to-Floating Rate Exchangeable Surplus Trust Securities of MetLife Capital Trust X (the “Trust”). As a result of the exchange, MetLife, Inc. became the sole beneficial owner of the Trust, a special purpose entity which issued the exchangeable surplus trust securities to third-party investors. On March 23, 2017, MetLife, Inc. dissolved the Trust.

XML

Equity

3 Months Ended

Mar. 31, 2018

Equity [Abstract]

Equity

. Equity

Preferred Stock

In March 2018, MetLife, Inc. issued 500,000 shares of 5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D (the “Series D preferred stock”) with a $0.01 par value per share and a liquidation preference of $1,000 per share for aggregate net proceeds of $494 million. In connection with the offering of the Series D preferred stock, MetLife, Inc. incurred approximately $6 million of issuance costs which have been recorded as a reduction of additional paid-in capital.

The Series D preferred stock ranks senior to MetLife, Inc.’s common stock with respect to the payment of dividends and distributions upon liquidation, dissolution or winding-up. Holders of the Series D preferred stock will be entitled to receive dividend payments only when, as and if declared by MetLife, Inc.’s Board of Directors or a duly authorized committee thereof. If dividends are declared on the Series D preferred stock for any dividend period, they will be calculated on a non-cumulative basis at a fixed rate per annum of 5.875% from the date of original issue to, but excluding, March 15, 2028 and at a floating rate per annum equal to three-month U.S. dollar LIBOR plus 2.959% on the related LIBOR determination date from and after March 15, 2028. Dividends for any dividend period will be payable, if declared, semi-annually in arrears on the 15th day of March and September of each year commencing on September 15, 2018 and ending on March 15, 2028, and thereafter quarterly in arrears on the 15th day of June, September, December, and March of each year.

Dividends on the Series D preferred stock will not be cumulative and will not be mandatory. Accordingly, if dividends are not declared on the Series D preferred stock for any dividend period, then any accrued dividends for that dividend period will cease to accrue and be payable. If a dividend is not declared before the dividend payment date for any dividend period, MetLife, Inc. will have no obligation to pay dividends accrued for such dividend period whether or not dividends on the Series D preferred stock are declared for any future dividend period. No dividends may be paid or declared on MetLife, Inc.’s common stock (or any other securities ranking junior to the Series D preferred stock) and MetLife, Inc. may not purchase, redeem, or otherwise acquire its common stock (or other such junior stock) unless the full dividends for the latest completed dividend period on all outstanding shares of Series D preferred stock, and any parity stock, have been declared and paid or provided for.

Holders of the Series D preferred stock do not have voting rights except in certain circumstances, including where the dividends have not been paid for an equivalent of six or more dividend payment periods whether or not those periods are consecutive. Under such circumstances, the holders of the Series D preferred stock have certain voting rights with respect to members of the Board of Directors of MetLife, Inc.

The Series D preferred stock is not subject to any mandatory redemption, sinking fund, retirement fund, purchase fund or similar provisions. MetLife, Inc. may, at its option, redeem the Series D preferred stock, (a) in whole but not in part, at any time prior to March 15, 2028, within 90 days after the occurrence of a “rating agency event,” at a redemption price equal to $1,020 per share of Series D preferred stock, plus an amount equal to any accrued and unpaid dividends per share that have accrued but not been declared and paid for the then-current dividend period to but excluding the redemption date and (b) (i) in whole but not in part, at any time prior to March, 15, 2028, within 90 days after the occurrence of a “regulatory capital event” or (ii) in whole or in part, from time to time, on or after March 15, 2028, in each case, at a redemption price equal to $1,000 per share of Series D preferred stock, plus an amount equal to any accrued and unpaid dividends per share that have accrued but not been declared and paid for the then-current dividend period to, but excluding, such redemption date. A “rating agency event” means that any nationally recognized statistical rating organization that then publishes a rating for MetLife, Inc. amends, clarifies or changes the criteria it uses to assign equity credit to securities like the Series D preferred stock, which results in the lowering of the equity credit assigned to the Series D preferred stock or shortens the length of time that the Series D preferred stock is assigned a particular level of equity credit. A “regulatory capital event” could occur as a result of a change or proposed change in capital adequacy rules (or the interpretation or application thereof) of any capital regulator, including but not limited to the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”), the Federal Insurance Office, the National Association of Insurance Commissioners or any state insurance regulator, as may then have group-wide oversight of MetLife, Inc.’s regulatory capital, from rules (or the interpretation or application thereof) in effect as of March 22, 2018, that would create a more than insubstantial risk, as determined by MetLife, Inc., that the Series D preferred stock would not be treated as “Tier 1 capital” or as capital with attributes similar to those of Tier 1 capital, except that a “regulatory capital event” will not include a change or proposed change (or the interpretation or application thereof) that would result in the adoption of any criterion substantially the same as the criteria in the capital adequacy rules of the Federal Reserve Board applicable to bank holding companies as of March 22, 2018.

Preferred stock authorized, issued and outstanding was as follows:

	March 31, 2018			December 31, 2017
Series	Shares Authorized	Shares Issued	Shares Outstanding	Shares Authorized	Shares Issued	Shares Outstanding
Floating Rate Non-Cumulative Preferred Stock, Series A	27,600,000	24,000,000	24,000,000	27,600,000	24,000,000	24,000,000
5.25% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C	1,500,000	1,500,000	1,500,000	1,500,000	1,500,000	1,500,000
5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D	500,000	500,000	500,000	—	—	—
Series A Junior Participating Preferred Stock	10,000,000	—	—	10,000,000	—	—
Not designated	160,400,000	—	—	160,900,000	—	—
Total	200,000,000	26,000,000	26,000,000	200,000,000	25,500,000	25,500,000

Common Stock

Duringthethree months endedMarch 31, 2018and 2017, MetLife, Inc. repurchased 21,405,327 shares and 16,038,791 shares of its common stock through open market purchases for $1.0 billion and $858 million, respectively.

On November 1, 2017, MetLife, Inc. announced that its Board of Directors authorized $2.0 billion of common stock repurchases. At March 31, 2018, MetLife, Inc. had $720 million remaining under this common stock repurchase authorization. Common stock repurchases are dependent upon several factors, including the Company’s capital position, liquidity, financial strength and credit ratings, general market conditions, the market price of MetLife, Inc.’s common stock compared to management’s assessment of the stock’s underlying value and applicable regulatory approvals, as well as other legal and accounting factors.

See Note 15 for information on subsequent common stock repurchases.

Stock-Based Compensation Plans

Performance Shares and Performance Units

Final Performance Shares are paid in shares of MetLife, Inc. common stock. Final Performance Units are payable in cash equal to the closing price of MetLife, Inc. common stock on a date following the last day of the three-year performance period. The performance factor for the January 1, 2015 – December 31, 2017 performance period was 46.3%, which was determined within a possible range from 0% to 175%. This factor has been applied to the 1,194,283 Performance Shares and 186,085 Performance Units associated with that performance period that vested on December 31, 2017. As a result, in the first quarter of 2018, MetLife, Inc. issued 552,953 shares of its common stock (less withholding for taxes and other items, as applicable), excluding shares that payees choose to defer, and MetLife, Inc. or its affiliates paid the cash value of 86,157 Performance Units (less withholding for taxes and other items, as applicable).

Accumulated Other Comprehensive Income (Loss)

Information regarding changes in the balances of each component of AOCI attributable to MetLife, Inc., was as follows:

	Three Months Ended March 31, 2018
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)			Unrealized Gains (Losses) on Derivatives			Foreign Currency Translation Adjustments			Defined Benefit Plans Adjustment			Total
	(In millions)
Balance, beginning of period	$	12,757		$	905		$	(4,390	)	$	(1,845	)	$	7,427
OCI before reclassifications	(3,811		)	(352		)	552			(4		)	(3,615		)
Deferred income tax benefit (expense)	835			58			3			1			897
AOCI before reclassifications, net of income tax	9,781			611			(3,835		)	(1,848		)	4,709
Amounts reclassified from AOCI	45			(165		)	—			31			(89		)
Deferred income tax benefit (expense)	(10		)	27			—			(7		)	10
Amounts reclassified from AOCI, net of income tax	35			(138		)	—			24			(79		)
Cumulative effects of changes in accounting principles	(425		)	—			—			—			(425		)
Deferred income tax benefit (expense), cumulative effects of changes in accounting principles	1,473			210			36			(382		)	1,337
Cumulative effects of changes in accounting principles, net of income tax (2)	1,048			210			36			(382		)	912
Sale of subsidiary (3)	—			—			92			—			92
Balance, end of period	$	10,864		$	683		$	(3,707	)	$	(2,206	)	$	5,634
	Three Months Ended March 31, 2017
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)			Unrealized Gains (Losses) on Derivatives			Foreign Currency Translation Adjustments			Defined Benefit Plans Adjustment			Total
	(In millions)
Balance, beginning of period	$	10,785		$	1,865		$	(5,312	)	$	(1,972	)	$	5,366
OCI before reclassifications	703			210			348			(20		)	1,241
Deferred income tax benefit (expense)	(273		)	(73		)	122			2			(222		)
AOCI before reclassifications, net of income tax	11,215			2,002			(4,842		)	(1,990		)	6,385
Amounts reclassified from AOCI	196			(229		)	—			44			11
Deferred income tax benefit (expense)	(75		)	80			—			(5		)	—
Amounts reclassified from AOCI, net of income tax	121			(149		)	—			39			11
Balance, end of period	$	11,336		$	1,853		$	(4,842	)	$	(1,951	)	$	6,396

__________________

(1) See Note 6 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation.

(2) See Note 1 for further information on adoption of new accounting pronouncements.

(3) See Note 3 for further information on the 2018 disposition.

Information regarding amounts reclassified out of each component of AOCI was as follows:

AOCI Components	Amounts Reclassified from AOCI						Consolidated Statements of Operations and Comprehensive Income (Loss) Locations
	Three Months Ended March 31,
	2018			2017
	(In millions)
Net unrealized investment gains (losses):
Net unrealized investment gains (losses)	$	(101	)	$	40		Net investment gains (losses)
Net unrealized investment gains (losses)	3			6			Net investment income
Net unrealized investment gains (losses)	53			(151		)	Net derivative gains (losses)
Net unrealized investment gains (losses)	—			(91		)	Discontinued operations
Net unrealized investment gains (losses), before income tax	(45		)	(196		)
Income tax (expense) benefit	10			75
Net unrealized investment gains (losses), net of income tax	(35		)	(121		)
Unrealized gains (losses) on derivatives - cash flow hedges:
Interest rate swaps	16			8			Net derivative gains (losses)
Interest rate swaps	3			4			Net investment income
Interest rate swaps	—			1			Discontinued operations
Interest rate forwards	5			(4		)	Net derivative gains (losses)
Interest rate forwards	1			—			Net investment income
Interest rate forwards	—			1			Discontinued operations
Foreign currency swaps	139			208			Net derivative gains (losses)
Foreign currency swaps	1			1			Other expenses
Foreign currency swaps	—			10			Discontinued operations
Gains (losses) on cash flow hedges, before income tax	165			229
Income tax (expense) benefit	(27		)	(80		)
Gains (losses) on cash flow hedges, net of income tax	138			149
Defined benefit plans adjustment: (1)
Amortization of net actuarial gains (losses)	(36		)	(49		)
Amortization of prior service (costs) credit	5			5
Amortization of defined benefit plan items, before income tax	(31		)	(44		)
Income tax (expense) benefit	7			5
Amortization of defined benefit plan items, net of income tax	(24		)	(39		)
Total reclassifications, net of income tax	$	79		$	(11	)

__________________

(1) These AOCI components are included in the computation of net periodic benefit costs. See Note 11.

XML

Other Expenses

3 Months Ended

Mar. 31, 2018

Other Income and Expenses [Abstract]

Other Expenses

10. Other Expenses

Information on other expenses was as follows:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Employee related costs	$	937		$	937
Third party staffing costs	380			362
General and administrative expenses	243			221
Pension, postretirement and postemployment benefit costs	49			79
Premium taxes, other taxes, and licenses & fees	179			175
Commissions and other variable expenses	1,416			1,304
Capitalization of DAC	(796		)	(713		)
Amortization of DAC and VOBA	693			663
Amortization of negative VOBA	(22		)	(43		)
Interest expense on debt	286			283
Total other expenses	$	3,365		$	3,268

Certain prior year amounts have been reclassified to conform to the current year presentation, which has been revised to align the expense categories with the Company’s businesses. The reclassifications did not result in a change to total other expenses.

See Note 3 for further information on Separation-related transaction costs.

Restructuring Charges

The Company commenced in 2016 a unit cost improvement program related to the Company’s refreshed enterprise strategy. This global strategy focuses on transforming the Company to become more digital, driving efficiencies and innovation to achieve competitive advantage, and simplified, decreasing the costs and risks associated with the Company’s highly complex industry to customers and shareholders. Restructuring charges related to this program are included in other expenses. As the expenses relate to an enterprise-wide initiative, they are reported in Corporate & Other. Such restructuring charges were as follows:

	Three Months Ended March 31,
	2018			2017
	Severance
	(In millions)
Balance, beginning of period	$	22		$	35
Restructuring charges	9			11
Cash payments	(12		)	(8		)
Balance, end of period	$	19		$	38
Total restructuring charges incurred since inception of initiative	$	82		$	46

Management anticipates further restructuring charges through the year ending December 31, 2019. However, such restructuring plans were not sufficiently developed to enable management to make an estimate of such restructuring charges at March 31, 2018.

XML

Employee Benefit Plans

3 Months Ended

Mar. 31, 2018

Retirement Benefits [Abstract]

Employee Benefit Plans

11. Employee Benefit Plans

Pension and Other Postretirement Benefit Plans

Certain subsidiaries of MetLife, Inc. sponsor and/or administer various U.S. qualified and nonqualified defined benefit pension plans and other postretirement employee benefit plans covering employees who meet specified eligibility requirements. These subsidiaries also provide certain postemployment benefits and certain postretirement medical and life insurance benefits for U.S. retired employees.

The components of net periodic benefit costs, reported in other expenses, were as follows:

	Three Months Ended March 31,
	2018						2017
	Pension Benefits			Other Postretirement Benefits			Pension Benefits			Other Postretirement Benefits
	(In millions)
Service costs	$	60		$	1		$	61		$	1
Interest costs	96			11			106			19
Expected return on plan assets	(133		)	(18		)	(130		)	(18		)
Amortization of net actuarial (gains) losses	44			(8		)	49			—
Amortization of prior service costs (credit)	—			(5		)	—			(5		)
Net periodic benefit costs (credit)	$	67		$	(19	)	$	86		$	(3	)

XML

Income Tax

3 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

Income Tax

12. Income Tax

On December 22, 2017, President Trump signed into law U.S. Tax Reform. U.S. Tax Reform includes numerous changes in tax law, including a permanent reduction in the U.S. federal corporate income tax rate from 35% to 21%, which took effect for taxable years beginning on or after January 1, 2018. U.S. Tax Reform moves the United States from a worldwide tax system to a participation exemption system by providing corporations a 100% dividends received deduction for dividends distributed by a controlled foreign corporation. To transition to that new system, U.S. Tax Reform imposed a one-time deemed repatriation tax on unremitted earnings and profits at a rate of 8.0% for illiquid assets and 15.5% for cash and cash equivalents.

In accordance with Staff Accounting Bulletin 118 issued by the U.S. Securities and Exchange Commission (“SEC”) in December 2017, the Company recorded provisional amounts for certain items for which the income tax accounting is not complete. For these items, the Company recorded a reasonable estimate of the tax effects of U.S. Tax Reform. The estimates will be reported as provisional amounts during a measurement period, which will not exceed one year from the date of enactment of U.S. Tax Reform. The Company may reflect adjustments to its provisional amounts upon obtaining, preparing, or analyzing additional information about facts and circumstances that existed as of the enactment date that, if known, would have affected the income tax effects initially reported as provisional amounts.

See Note 18 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for further information. As of March 31, 2018, no updates were made to the provisional amounts.

XML

Earnings Per Common Share

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Earnings Per Common Share

13. Earnings Per Common Share

The following table presents the weighted average shares, basic earnings per common share and diluted earnings per common share for each income category presented:

	Three Months Ended March 31,
	2018		2017
	(In millions, except per share data)
Weighted Average Shares:
Weighted average common stock outstanding for basic earnings per common share	1,035.9		1,090.4
Incremental common shares from assumed exercise or issuance of stock-based awards	8.5		8.3
Weighted average common stock outstanding for diluted earnings per common share	1,044.4		1,098.7
Income (Loss) from Continuing Operations:
Income (loss) from continuing operations, net of income tax	$	1,257	$	952
Less: Income (loss) from continuing operations, net of income tax, attributable to noncontrolling interests	4		3
Less: Preferred stock dividends	6		6
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders	$	1,247	$	943
Basic	$	1.20	$	0.87
Diluted	$	1.19	$	0.86
Income (Loss) from Discontinued Operations:
Income (loss) from discontinued operations, net of income tax	$	—	$	(76	)
Less: Income (loss) from discontinued operations, net of income tax, attributable to noncontrolling interests	—		—
Income (loss) from discontinued operations, net of income tax, available to MetLife, Inc.’s common shareholders	$	—	$	(76	)
Basic	$	—	$	(0.07	)
Diluted	$	—	$	(0.07	)
Net Income (Loss):
Net income (loss)	$	1,257	$	876
Less: Net income (loss) attributable to noncontrolling interests	4		3
Less: Preferred stock dividends	6		6
Net income (loss) available to MetLife, Inc.’s common shareholders	$	1,247	$	867
Basic	$	1.20	$	0.80
Diluted	$	1.19	$	0.79

XML

Contingencies, Commitments and Guarantees

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Contingencies, Commitments and Guarantees

14. Contingencies, Commitments and Guarantees

Contingencies

Litigation

The Company is a defendant in a large number of litigation matters. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience of the Company in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value.

Due to the vagaries of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time may normally be difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will view the relevant evidence and applicable law.

The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Liabilities have been established for a number of the matters noted below. It is possible that some of the matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be reasonably estimated at March 31, 2018. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known to management, management does not believe any such charges are likely to have a material effect on the Company’s financial position.

Matters as to Which an Estimate Can Be Made

For some of the matters disclosed below, the Company is able to estimate a reasonably possible range of loss. For such matters where a loss is believed to be reasonably possible, but not probable, the Company has not made an accrual. As of March 31, 2018, the Company estimates the aggregate range of reasonably possible losses in excess of amounts accrued for these matters to be $0 to $700 million.

Matters as to Which an Estimate Cannot Be Made

For other matters disclosed below, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews.

Asbestos-Related Claims

MLIC is and has been a defendant in a large number of asbestos-related suits filed primarily in state courts. These suits principally allege that the plaintiff or plaintiffs suffered personal injury resulting from exposure to asbestos and seek both actual and punitive damages. MLIC has never engaged in the business of manufacturing, producing, distributing, or selling asbestos or asbestos-containing products nor has MLIC issued liability or workers’ compensation insurance to companies in the business of manufacturing, producing, distributing, or selling asbestos or asbestos-containing products. The lawsuits principally have focused on allegations with respect to certain research, publication and other activities of one or more of MLIC’s employees during the period from the 1920’s through approximately the 1950’s and allege that MLIC learned or should have learned of certain health risks posed by asbestos and, among other things, improperly publicized or failed to disclose those health risks. MLIC believes that it should not have legal liability in these cases. The outcome of most asbestos litigation matters, however, is uncertain and can be impacted by numerous variables, including differences in legal rulings in various jurisdictions, the nature of the alleged injury and factors unrelated to the ultimate legal merit of the claims asserted against MLIC. MLIC employs a number of resolution strategies to manage its asbestos loss exposure, including seeking resolution of pending litigation by judicial rulings and settling individual or groups of claims or lawsuits under appropriate circumstances.

Claims asserted against MLIC have included negligence, intentional tort and conspiracy concerning the health risks associated with asbestos. MLIC’s defenses (beyond denial of certain factual allegations) include that: (i) MLIC owed no duty to the plaintiffs— it had no special relationship with the plaintiffs and did not manufacture, produce, distribute, or sell the asbestos products that allegedly injured plaintiffs; (ii) plaintiffs did not rely on any actions of MLIC; (iii) MLIC’s conduct was not the cause of the plaintiffs’ injuries; (iv) plaintiffs’ exposure occurred after the dangers of asbestos were known; and (v) the applicable time with respect to filing suit has expired. During the course of the litigation, certain trial courts have granted motions dismissing claims against MLIC, while other trial courts have denied MLIC’s motions. There can be no assurance that MLIC will receive favorable decisions on motions in the future. While most cases brought to date have settled, MLIC intends to continue to defend aggressively against claims based on asbestos exposure, including defending claims at trials.

As reported in the 2017 Annual Report, MLIC received approximately 3,514 asbestos-related claims in 2017. During the three months endedMarch 31, 2018 and 2017, MLIC received approximately 823 and 1,104 new asbestos-related claims, respectively. See Note 20 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for historical information concerning asbestos claims and MLIC’s increase in its recorded liability at December 31, 2017. The number of asbestos cases that may be brought, the aggregate amount of any liability that MLIC may incur, and the total amount paid in settlements in any given year are uncertain and may vary significantly from year to year.

The ability of MLIC to estimate its ultimate asbestos exposure is subject to considerable uncertainty, and the conditions impacting its liability can be dynamic and subject to change. The availability of reliable data is limited and it is difficult to predict the numerous variables that can affect liability estimates, including the number of future claims, the cost to resolve claims, the disease mix and severity of disease in pending and future claims, the impact of the number of new claims filed in a particular jurisdiction and variations in the law in the jurisdictions in which claims are filed, the possible impact of tort reform efforts, the willingness of courts to allow plaintiffs to pursue claims against MLIC when exposure to asbestos took place after the dangers of asbestos exposure were well known, and the impact of any possible future adverse verdicts and their amounts.

The ability to make estimates regarding ultimate asbestos exposure declines significantly as the estimates relate to years further in the future. In the Company’s judgment, there is a future point after which losses cease to be probable and reasonably estimable. It is reasonably possible that the Company’s total exposure to asbestos claims may be materially greater than the asbestos liability currently accrued and that future charges to income may be necessary. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known by management, management does not believe any such charges are likely to have a material effect on the Company’s financial position.

The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for asbestos-related claims. MLIC’s recorded asbestos liability is based on its estimation of the following elements, as informed by the facts presently known to it, its understanding of current law and its past experiences: (i) the probable and reasonably estimable liability for asbestos claims already asserted against MLIC, including claims settled but not yet paid; (ii) the probable and reasonably estimable liability for asbestos claims not yet asserted against MLIC, but which MLIC believes are reasonably probable of assertion; and (iii) the legal defense costs associated with the foregoing claims. Significant assumptions underlying MLIC’s analysis of the adequacy of its recorded liability with respect to asbestos litigation include: (i) the number of future claims; (ii) the cost to resolve claims; and (iii) the cost to defend claims.

MLIC reevaluates on a quarterly and annual basis its exposure from asbestos litigation, including studying its claims experience, reviewing external literature regarding asbestos claims experience in the United States, assessing relevant trends impacting asbestos liability and considering numerous variables that can affect its asbestos liability exposure on an overall or per claim basis. These variables include bankruptcies of other companies involved in asbestos litigation, legislative and judicial developments, the number of pending claims involving serious disease, the number of new claims filed against it and other defendants and the jurisdictions in which claims are pending. Based upon its regular reevaluation of its exposure from asbestos litigation, MLIC has updated its liability analysis for asbestos-related claims through March 31, 2018.

Regulatory Matters

The Company receives and responds to subpoenas or other inquiries seeking a broad range of information from state regulators, including state insurance commissioners; state attorneys general or other state governmental authorities; federal regulators, including the SEC; federal governmental authorities, including congressional committees; and the Financial Industry Regulatory Authority (“FINRA”), as well as from local and national regulators and government authorities in jurisdictions outside the United States where MetLife conducts business. The issues involved in information requests and regulatory matters vary widely. The Company cooperates in these inquiries.

In the Matter of Chemform, Inc. Site, Pompano Beach, Broward County, Florida

In July 2010, the Environmental Protection Agency (“EPA”) advised MLIC that it believed payments were due under two settlement agreements, known as “Administrative Orders on Consent,” that New England Mutual Life Insurance Company (“New England Mutual”) signed in 1989 and 1992 with respect to the cleanup of a Superfund site in Florida (the “Chemform Site”). The EPA originally contacted MLIC (as successor to New England Mutual) and a third party in 2001, and advised that they owed additional clean-up costs for the Chemform Site. The matter was not resolved at that time. In September 2012, the EPA, MLIC and the third party executed an Administrative Order on Consent under which MLIC and the third party agreed to be responsible for certain environmental testing at the Chemform Site. The EPA may seek additional costs if the environmental testing identifies issues. The EPA and MLIC have reached a settlement in principal on the EPA’s claim for past costs. The Company estimates that the aggregate cost to resolve this matter, including the settlement for claims of past costs and the costs of environmental testing, will not exceed $300 thousand.

Sales Practices Regulatory Matters

Regulatory authorities in a number of states and FINRA, and occasionally the SEC, have had investigations or inquiries relating to sales of individual life insurance policies or annuities or other products by MLIC and General American Life Insurance Company, as well as former subsidiaries of the Company that are part of Brighthouse as a result of the Separation, and a former broker-dealer subsidiary. These investigations often focus on the conduct of particular financial services representatives and the sale of unregistered or unsuitable products or the misuse of client assets. Over the past several years, these and a number of investigations by other regulatory authorities were resolved for monetary payments and certain other relief, including restitution payments. The Company may continue to resolve investigations in a similar manner. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for these sales practices-related investigations or inquiries.

Unclaimed Property Litigation

City of Westland Police and Fire Retirement System v. MetLife, Inc., et al. (S.D.N.Y., filed January 12, 2012)

Seeking to represent a class of persons who purchased MetLife, Inc. common shares between February 2, 2010, and October 6, 2011, the plaintiff alleges that MetLife, Inc. and several current and former directors and executive officers of MetLife, Inc. violated the Securities Act of 1933, as well as the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 promulgated thereunder by issuing, or causing MetLife, Inc. to issue, materially false and misleading statements concerning MetLife, Inc.’s potential liability for millions of dollars in insurance benefits that should have been paid to beneficiaries or escheated to the states. Plaintiff seeks unspecified compensatory damages and other relief. On September 22, 2017, the Court granted plaintiff’s motion to certify its proposed class of persons who purchased or acquired MetLife, Inc. common stock in the Company’s August 3, 2010 offering or the Company’s March 4, 2011 offering. The defendants intend to defend this action vigorously.

Total Asset Recovery Services, LLC. v. MetLife, Inc., et al. (Supreme Court of the State of New York, County of New York, filed November 17, 2017)

Alleging that MetLife, Inc., MLIC, and several other insurance companies violated the New York False Claims Act (the “Act”) by filing false unclaimed property reports from 1986 to 2017 with New York to avoid having to escheat the proceeds of more than 25,000 life insurance policies, including policies for which the defendants escheated funds as part of their demutualizations in the late 1990s, Total Asset Recovery Services (“The Relator”) has brought an action under the qui tam provision of the Act on behalf of itself and New York. The Relator originally filed this action under seal in 2010, and the complaint was unsealed on December 19, 2017. The Relator seeks treble damages and other relief. The Company intends to defend this action vigorously.

Total Control Accounts Litigation

MLIC is a defendant in a lawsuit related to its use of retained asset accounts, known as Total Control Accounts (“TCA”), as a settlement option for death benefits.

Owens v. Metropolitan Life Insurance Company (N.D. Ga., filed April 17, 2014)

Plaintiff filed this class action lawsuit on behalf of all persons for whom MLIC established a TCA to pay death benefits under an Employee Retirement Income Security Act of 1974 (“ERISA”) plan. The action alleges that MLIC’s use of the TCA as the settlement option for life insurance benefits under some group life insurance policies violates MLIC’s fiduciary duties under ERISA. As damages, plaintiff seeks disgorgement of profits that MLIC realized on accounts owned by members of the class. In addition, plaintiff, on behalf of a subgroup of the class, seeks interest under Georgia’s delayed settlement interest statute, alleging that the use of the TCA as the settlement option did not constitute payment. On September 27, 2016, the court denied MLIC’s summary judgment motion in full and granted plaintiff’s partial summary judgment motion. On September 29, 2017, the court certified a nationwide class. The court also certified a Georgia subclass. The Company intends to defend this action vigorously.

Diversified Lending Group Litigation

Hartshorne v. MetLife, Inc., et al. (Los Angeles County Superior Court, filed March 25, 2015)

Plaintiffs named MetLife, Inc., MetLife Securities, Inc., and New England Life Insurance Company in 12 related lawsuits in California state court alleging various causes of action including multiple negligence and statutory claims relating to a Ponzi scheme involving the Diversified Lending Group. The Company settled with the last remaining plaintiff on or about May 2, 2018.

Inquiries into Pension Benefits and Assumed Variable Annuity Guarantee Reserves and Related Litigation

The Company informed its primary state regulator, the New York Department of Financial Services (“NYDFS”), about its practices in connection with the payment of certain pension benefits to annuitants and related matters. The NYDFS is examining the issue. The Division of Enforcement of the SEC is also investigating this matter and several additional regulators, including, but not limited to, the Massachusetts Securities Division, have made inquiries into these practices, including as to related disclosures. It is possible that other jurisdictions may pursue similar investigations or inquiries. On January 29, 2018, the Company announced that in connection with a review of practices and procedures used to estimate reserves related to certain Retirement Income Solutions (“RIS”) group annuitants who have been unresponsive or missing over time, the Company had identified a material weakness in its internal control over financial reporting related to certain RIS group annuity reserves. In conjunction with the material weakness, the Company increased reserves by $510 million pre-tax to reinstate reserves previously released, and to reflect accrued interest and other related liabilities. See Note 1 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report.

The Company informed the SEC that as a result of its review of the calculation of reserves associated with certain variable annuity guarantees assumed from the former operating joint venture in Japan, the Company had identified a material weakness in its internal control over financial reporting related to these reserves. In conjunction with the material weakness, the Company decreased these reserves by $896 million pre-tax at December 31, 2017. See Note 1 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report. The Division of Enforcement of the SEC is investigating this matter and the Company has informed other regulators. It is possible that other regulators may pursue similar investigations or inquiries.

The Company is exposed to lawsuits and regulatory investigations, and could be exposed to additional legal actions relating to these matters. These may result in payments, including damages, fines, penalties, interest and other amounts assessed or awarded by courts or regulatory authorities under applicable escheat, tax, securities, ERISA, or other laws or regulations. The Company could incur significant costs in connection with these actions. The Company’s increase in reserves does not reflect, and the Company has not recorded an accrual for, any such potential amounts. An estimate of the possible loss or range of loss cannot be made at this time.

Parchmann v. MetLife, Inc., et. al. (E.D.N.Y., filed February 5, 2018)

Seeking to represent a class of persons who purchased MetLife, Inc. common stock from February 27, 2013 through January 29, 2018, the plaintiff alleges that MetLife, Inc., its Chief Executive Officer and Chairman of the Board, and its CFO violated Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder by issuing materially false and/or misleading statements because the defendants failed to disclose that MetLife’s practices and procedures used to estimate its reserves set aside for annuity and pension payments were inadequate, and that MetLife had inadequate internal control over financial reporting. The plaintiff seeks unspecified compensatory damages and other relief. The defendants intend to defend this action vigorously.

Demands

By letter dated March 28, 2018 to the MetLife, Inc. Board of Directors, a shareholder, Rosemarie R. Zavolta, has demanded that MetLife, Inc. take action against current and former Board members and executive officers for alleged breaches of fiduciary duty with respect to (i) the Company’s allegedly inadequate practices and procedures used to estimate the Company’s reserves for annuity and pension payments, (ii) the alleged lack of adequate internal controls over financial reporting, and (iii) the alleged dissemination of false, misleading and/or incomplete information related to these issues. Zavolta has demanded that the Board: (i) undertake or cause to be undertaken an independent internal investigation into management’s violations of New York law, Delaware law, and/or federal law; and (ii) if warranted commence a civil action against each member of management to recover for the benefit of the Company the amount of damages sustained by the Company as a result of their breaches of fiduciary duties alleged. The MetLife, Inc. Board of Directors has appointed a special committee to investigate these allegations.

Other Litigation

Sun Life Assurance Company of Canada Indemnity Claim

In 2006, Sun Life Assurance Company of Canada (“Sun Life”), as successor to the purchaser of MLIC’s Canadian operations, filed a lawsuit in Toronto, seeking a declaration that MLIC remains liable for “market conduct claims” related to certain individual life insurance policies sold by MLIC that were subsequently transferred to Sun Life. In January 2010, the court found that Sun Life had given timely notice of its claim for indemnification but, because it found that Sun Life had not yet incurred an indemnifiable loss, granted MLIC’s motion for summary judgment. Both parties agreed to consider the indemnity claim through arbitration. In September 2010, Sun Life notified MLIC that a purported class action lawsuit was filed against Sun Life in Toronto alleging sales practices claims regarding the policies sold by MLIC and transferred to Sun Life. On August 30, 2011, Sun Life notified MLIC that another purported class action lawsuit was filed against Sun Life in Vancouver, BC alleging sales practices claims regarding certain of the same policies sold by MLIC and transferred to Sun Life. Sun Life contends that MLIC is obligated to indemnify Sun Life for some or all of the claims in these lawsuits. These sales practices cases against Sun Life are ongoing, and the Company is unable to estimate the reasonably possible loss or range of loss arising from this litigation.

Voshall v. Metropolitan Life Insurance Company (Superior Court of the State of California, County of Los Angeles, April 8, 2015)

Plaintiff filed this putative class action lawsuit on behalf of himself and all persons covered under a long-term group disability income insurance policy issued by MLIC to public entities in California between April 8, 2011 and April 8, 2015. Plaintiff alleges that MLIC improperly reduced benefits by including cost of living adjustments and employee paid contributions in the employer retirement benefits and other income that reduces the benefit payable under such policies. Plaintiff asserts causes of action for declaratory relief, violation of the California Business & Professions Code, breach of contract and breach of the implied covenant of good faith and fair dealing. The Company intends to defend this action vigorously.

Martin v. Metropolitan Life Insurance Company, (Superior Court of the State of California, County of Contra Costa, filed December 17, 2015)

Plaintiffs filed this putative class action lawsuit on behalf of themselves and all California persons who have been charged compound interest by MLIC in life insurance policy and/or premium loan balances within the last four years. Plaintiffs allege that MLIC has engaged in a pattern and practice of charging compound interest on life insurance policy and premium loans without the borrower authorizing such compounding, and that this constitutes an unlawful business practice under California law. Plaintiff asserts causes of action for declaratory relief, violation of California’s Unfair Competition Law and Usury Law, and unjust enrichment. Plaintiff seeks declaratory and injunctive relief, restitution of interest, and damages in an unspecified amount. On April 12, 2016, the court granted MLIC’s motion to dismiss. Plaintiffs have appealed this ruling to the United States Court of Appeals for the Ninth Circuit. The Company intends to defend this action vigorously.

Lau v. Metropolitan Life Insurance Company (S.D.N.Y. filed, December 3, 2015)

This putative class action lawsuit was filed by a single defined contribution plan participant on behalf of all ERISA plans whose assets were invested in MetLife’s “Group Annuity Contract Stable Value Funds” within the past six years. The suit alleges breaches of fiduciary duty under ERISA and challenges the “spread” with respect to the stable value fund group annuity products sold to retirement plans. The allegations focus on the methodology MetLife uses to establish and reset the crediting rate, the terms under which plan participants are permitted to transfer funds from a stable value option to another investment option, the procedures followed if an employer terminates a contract, and the level of disclosure provided. Plaintiff seeks declaratory and injunctive relief, as well as damages in an unspecified amount. The parties settled on January 2, 2018 and the court has dismissed the action.

Newman v. Metropolitan Life Insurance Company (N.D. Ill., filed March 23, 2016)

Plaintiff filed this putative class action alleging causes of action for breach of contract, fraud, and violations of the Illinois Consumer Fraud and Deceptive Business Practices Act, based on MLIC’s class-wide increase in premiums charged for long-term care insurance policies. Plaintiff alleges a class consisting of herself and all persons over age 65 who selected a Reduced Pay at Age 65 payment feature and whose premium rates were increased after age 65. Plaintiff asserts that premiums could not be increased for these class members and/or that marketing material was misleading as to MLIC’s right to increase premiums. Plaintiff seeks unspecified compensatory, statutory and punitive damages, as well as recessionary and injunctive relief. On April 12, 2017, the court granted MLIC’s motion, dismissing the action with prejudice. Plaintiff appealed this ruling to the United States Court of Appeals for the Seventh Circuit (the “Seventh Circuit”) and on February 6, 2018, the Seventh Circuit reversed and remanded for further proceedings, ruling that Plaintiff is entitled to relief on her contract claim. Following MLIC’s petition for rehearing, the Seventh Circuit issued an amended opinion on March 22, 2018, holding that plaintiff’s claim survived MLIC’s motion to dismiss but finding that the policy is ambiguous as to MLIC’s right to raise plaintiff’s premiums. The Seventh Circuit held that on remand to the district court, the parties may introduce evidence to try to resolve this ambiguity.

Miller, et al. v. MetLife, Inc., et al. (C.D. Cal., filed April 7, 2017)

Plaintiffs filed this putative class action against MetLife, Inc. and MLIC in the U.S. District Court for the Central District of California, purporting to assert claims on behalf of all persons who replaced their MetLife Optional Term Life or Group Universal Life policy with a Group Variable Universal Life policy wherein MetLife allegedly charged smoker rates for certain non-smokers. Plaintiffs seek unspecified compensatory and punitive damages, as well as other relief. On September 25, 2017, plaintiffs dismissed the action and refiled the complaint in U.S. District Court for the Southern District of New York. On November 9, 2017, plaintiffs dismissed MetLife, Inc. without prejudice from the action. MLIC intends to defend this action vigorously.

Julian & McKinney v. Metropolitan Life Insurance Company (S.D.N.Y., filed February 9, 2017)

Plaintiffs filed this putative class and collective action on behalf of themselves and all current and former long-term disability (“LTD”) claims specialists between February 2011 and the present for alleged wage and hour violations under the Fair Labor Standards Act, the New York Labor Law, and the Connecticut Minimum Wage Act. The suit alleges that MetLife improperly reclassified the plaintiffs and similarly situated LTD claims specialists from non-exempt to exempt from overtime pay in November 2013. As a result, they and members of the putative class were no longer eligible for overtime pay even though they allege they continued to work more than 40 hours per week. On March 22, 2018, the Court conditionally certified the case as a collective action, requiring that notice be mailed to LTD claims specialists who worked for the Company from February 8, 2014 to the present. The Company intends to defend this action vigorously.

Sales Practices Claims

Over the past several years, the Company has faced numerous claims, including class action lawsuits, alleging improper marketing or sales of individual life insurance policies, annuities, mutual funds, other products or the misuse of client assets. Some of the current cases seek substantial damages, including punitive and treble damages and attorneys’ fees. The Company continues to defend vigorously against the claims in these matters. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters.

Summary

Putative or certified class action litigation and other litigation and claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, mortgage lending bank, employer, investor, investment advisor and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company’s compliance with applicable insurance and other laws and regulations.

It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to previously, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Although in light of these considerations it is possible that an adverse outcome in certain cases could have a material effect upon the Company’s financial position, based on information currently known by the Company’s management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company’s consolidated net income or cash flows in particular quarterly or annual periods.

Commitments

Mortgage Loan Commitments

The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $3.7 billion and $3.4 billion at March 31, 2018 and December 31, 2017, respectively.

Commitments to Fund Partnership Investments, Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments

The Company commits to fund partnership investments and to lend funds under bank credit facilities, bridge loans and private corporate bond investments. The amounts of these unfunded commitments were $6.1 billion at both March 31, 2018 and December 31, 2017.

Guarantees

In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation ranging from less than $1 million to $329 million, with a cumulative maximum of $775 million, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments.

In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future.

The Company has also minimum fund yield requirements on certain international pension funds in accordance with local laws. Since these guarantees are not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future.

The Company’s recorded liabilities were $7 million and $5 million at March 31, 2018 and December 31, 2017, respectively, for indemnities, guarantees and commitments.

XML

Subsequent Events

3 Months Ended

Mar. 31, 2018

Subsequent Events [Abstract]

Subsequent Event

15. Subsequent Events

Common Stock Repurchases

In the second quarter of 2018 through April 30, 2018, MetLife, Inc. repurchased 7,630,398 shares of its common stock in the open market for $350 million.

Common Stock Dividend

On April 24, 2018, the MetLife, Inc. Board of Directors declared a second quarter 2018 common stock dividend of $0.42 per share payable on June 13, 2018 to shareholders of record as of May 7, 2018. The Company estimates that the aggregate dividend payment will be $428 million.

XML

Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates.

Consolidation of Subsidiaries

Consolidation

The accompanying interim condensed consolidated financial statements include the accounts of MetLife, Inc. and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated.

The Company uses the equity method of accounting for equity securities when it has significant influence or at least 20% interest and for real estate joint ventures and other limited partnership interests (“investees”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. Subsequent to the adoption of guidance relating to the recognition and measurement of financial instruments on January 1, 2018, the Company accounts for interests in unconsolidated entities that are not accounted for under the equity method, at estimated fair value. Such investments were previously accounted for under the cost method of accounting. See “— Adoption of New Accounting Pronouncements.”

The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2017 consolidated balance sheet data was derived from audited consolidated financial statements included in the 2017 Annual Report, which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2017 Annual Report.

Closed block assets, liabilities, revenues and expenses are combined on a line-by-line basis with the assets, liabilities, revenues and expenses outside the closed block based on the nature of the particular item.

Discontinued Operations

Discontinued Operations

The results of operations of a component of the Company that has either been disposed of or is classified as held-for-sale are reported in discontinued operations if certain criteria are met. A disposal of a component is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results.

On August 4, 2017, MetLife, Inc. completed the separation of Brighthouse Financial, Inc. and its subsidiaries (“Brighthouse”) through a distribution of 96,776,670 shares of Brighthouse Financial, Inc. common stock to the MetLife, Inc. common shareholders (the “Separation”). The results of Brighthouse are reflected in MetLife, Inc.’s interim condensed consolidated financial statements as discontinued operations and, therefore, are presented as income (loss) from discontinued operations on the consolidated statements of operations and comprehensive income (loss). Prior period results have been revised to reflect discontinued operations. Intercompany transactions between the Company and Brighthouse prior to the Separation have been eliminated. Transactions between the Company and Brighthouse after the Separation are reflected in continuing operations for the Company. See Note 3 for information on discontinued operations and transactions with Brighthouse.

Investments

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. Structured Securities are shown separately, as they are not due at a single maturity.

Maturities of Fixed Maturity Securities

The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days.

Past Due and Nonaccrual Mortgage Loans

Variable Interest Entities

The Company has invested in legal entities 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.

Derivatives

Freestanding Derivatives

Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement.

Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivative’s carrying value in other invested assets or other liabilities.

If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows:

Statement of Operations Presentation:	Derivative:
Policyholder benefits and claims	•	Economic hedges of variable annuity guarantees included in future policy benefits
Net investment income	•	Economic hedges of equity method investments in joint ventures
	•	Derivatives held within Unit-linked investments

Hedge Accounting

To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows:

• Fair value hedge (a hedge of the estimated fair value of a recognized asset or liability) - in net derivative gains (losses), consistent with the change in estimated fair value of the hedged item attributable to the designated risk being hedged.

• Cash flow hedge (a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability) - effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses).

• Net investment in a foreign operation hedge - effectiveness in OCI, consistent with the translation adjustment for the hedged net investment in the foreign operation; ineffectiveness in net derivative gains (losses).

The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. Accruals on derivatives in net investment hedges are recognized in OCI.

In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness and measurements of ineffectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income.

The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument.

When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item.

When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in net derivative gains (losses).

In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses).

Embedded Derivatives

The Company sells variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if:

• the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings;

• the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and

• a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument.

Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees.

Derivative Strategies

The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. The Company uses a variety of strategies to manage these risks, including the use of derivatives.

Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps and structured interest rate swaps to synthetically replicate investment risks and returns which are not readily available in the cash markets.

The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities; and (iii) foreign currency forwards to hedge the foreign currency fair value exposure of foreign currency denominated investments.

The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities; (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments; (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments; and (v) interest rate swaps and interest rate forwards to hedge forecasted fixed-rate borrowings.

The Company uses foreign currency exchange rate derivatives, which may include foreign currency forwards and currency options, to hedge portions of its net investments in foreign operations against adverse movements in exchange rates. The Company measures ineffectiveness on these derivatives based upon the change in forward rates.

When net investments in foreign operations are sold or substantially liquidated, the amounts in AOCI are reclassified to the statement of operations.

The Company may be exposed to credit-related losses in the event of nonperformance by its counterparties to derivatives. Generally, the current credit exposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements.

Employee Benefit Plans

Certain subsidiaries of MetLife, Inc. sponsor and/or administer various U.S. qualified and nonqualified defined benefit pension plans and other postretirement employee benefit plans covering employees who meet specified eligibility requirements. These subsidiaries also provide certain postemployment benefits and certain postretirement medical and life insurance benefits for U.S. retired employees.

Closed Block

On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company (“MLIC”) converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance approving MLIC’s plan of reorganization, as amended (the “Plan of Reorganization”). On the Demutualization Date, MLIC established a closed block for the benefit of holders of certain individual life insurance policies of MLIC.

Experience within the closed block, in particular mortality and investment yields, as well as realized and unrealized gains and losses, directly impact the policyholder dividend obligation. Amortization of the closed block DAC, which resides outside of the closed block, is based upon cumulative actual and expected earnings within the closed block. Accordingly, the Company’s net income continues to be sensitive to the actual performance of the closed block.

New Accounting Pronouncements

Adoption of New Accounting Pronouncements

Effective January 1, 2018, the Company early adopted guidance relating to income taxes. The new guidance was applied in the period of adoption. Current GAAP guidance requires that the effect of a change in tax laws or rates on deferred tax liabilities or assets to be included in income from continuing operations in the reporting period that includes the enactment date, even if the related income tax effects were originally charged or credited directly to accumulated other comprehensive income (“AOCI”). The Company’s accounting policy for the release of stranded tax effects in AOCI is on an aggregate portfolio basis. The new guidance allows a reclassification of AOCI to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (“U.S. Tax Reform”). Due to U.S. Tax Reform and the change in corporate tax rates, at December 22, 2017, the Company reported stranded tax effects in AOCI related to unrealized gains and losses on available-for-sale (“AFS”) securities, cumulative foreign translation adjustments and deferred costs on pension benefit plans. With the adoption of the guidance, the Company released these stranded tax effects in AOCI resulting in a decrease to retained earnings as of January 1, 2018 of $1.2 billion with a corresponding increase to AOCI.

Effective January 1, 2018, the Company prospectively adopted guidance relating to stock compensation. The new guidance includes guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Accounting Standards Codification (“ASC”) Topic 718,Compensation - Stock Compensation. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

Effective January 1, 2018 the Company retrospectively adopted guidance on the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires that an employer that offers to its employees defined benefit pension or other postretirement benefit plans report the service cost component in the same line item or items as other compensation costs. The other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item is not used, the line item used in the income statement to present the other components of net periodic benefit cost must be disclosed. In addition, the guidance allows only the service cost component to be eligible for capitalization when applicable. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to de-recognition of nonfinancial assets. The new guidance clarifies the scope and accounting of a financial asset that meets the definition of an “in-substance nonfinancial asset” and defines the term, “in-substance nonfinancial asset.” The new guidance also adds guidance for partial sales of nonfinancial assets. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

Effective January 1, 2018, the Company retrospectively adopted guidance relating to restricted cash. The new guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As a result, the new guidance requires that amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance does not provide a definition of restricted cash or restricted cash equivalents. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to tax accounting for intra-entity transfers of assets. Prior guidance prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. The new guidance requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

Effective January 1, 2018, the Company retrospectively adopted guidance relating to cash flow statement presentation. The new guidance addresses diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to recognition and measurement of financial instruments. The guidance changes the current accounting guidance related to (i) the classification and measurement of certain equity investments, (ii) the presentation of changes in the fair value of financial liabilities measured under the fair value option (“FVO”) that are due to instrument-specific credit risk, and (iii) certain disclosures associated with the fair value of financial instruments. Effective January 1, 2018, there will no longer be a requirement to assess equity securities for impairment since such securities will be measured at fair value through net income. Additionally, there will no longer be a requirement to assess equity securities for embedded derivatives requiring bifurcation. The adoption of this guidance resulted in a $328 million, net of income tax, increase to retained earnings largely offset by a decrease to AOCI that was primarily attributable to $1.7 billion of equity securities previously classified and measured as equity securities AFS. At December 31, 2017, equity securities of $16.0 billion primarily associated with contractholder-directed investments are accounted for using the FVO and therefore were unaffected by the new guidance. The Company has included the required disclosures related to equity securities held at March 31, 2018 within Note 6.

Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to revenue recognition. The new guidance supersedes nearly all existing revenue recognition guidance under U.S. GAAP. However, it does not impact the accounting for insurance and investment contracts within the scope of ASC Topic 944,Financial Services - Insurance, leases, financial instruments and certain guarantees. For those contracts that are impacted, the new guidance requires an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled, in exchange for those goods or services. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

For the three months ended March 31, 2018, the Company identified $322 million of revenue streams within the scope of the guidance that are all included within other revenues on the interim condensed consolidated statements of operations and comprehensive income (loss). Such amount primarily consists of prepaid legal plans and administrative-only contracts within the U.S. segment of $129 million, distribution and administrative services fees within the MetLife Holdings segment of $58 million and fee-based investment management services within Corporate & Other of $71 million.

Other Revenues

Substantially all of the revenue from these services is recognized over time as the applicable services are provided or are made available to the customers and control is transferred continuously. The consideration received for these services is variable and constrained to the amount not probable of a significant revenue reversal.

XML

Business, Basis of Presentation and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Prior Period Adjustments [Table Text Block]

A summary of the revisions to prior period net income (loss) available to MetLife, Inc.’s common shareholders is shown in the table below:

	Three Months Ended March 31,
	2017
	(In millions)
Assumed variable annuity guarantee reserves	$	14
Group annuity reserves	(9		)
Other revisions to continuing operations, net	63
Impact to income (loss) from continuing operations before provision for income tax	68
Provision for income tax expense (benefit)	24
Impact to income (loss) from continuing operations, net of income tax	44
Other revisions to discontinued operations, net of income tax	3
Impact to net income (loss) available to MetLife, Inc.’s common shareholders	$	47

The impact of the revisions is shown in the tables below:

	Three Months Ended March 31,
	2017
Interim Condensed Consolidated Statements of Operations  and Comprehensive Income (Loss)	As Previously Reported			Discontinued Operations (1)			Revisions			As Revised
	(In millions, except per share data)
Revenues
Other net investment gains (losses)	$	8		$	55		$	25		$	88
Net investment gains (losses)	$	8		$	55		$	25		$	88
Net derivatives gains (losses)	$	(926	)	$	700		$	14		$	(212	)
Total revenues	$	16,269		$	(1,344	)	$	39		$	14,964
Expenses
Policyholder benefits and claims	$	9,859		$	(1,002	)	$	6		$	8,863
Other expenses	$	3,564		$	(261	)	$	(35	)	$	3,268
Total expenses	$	15,452		$	(1,531	)	$	(29	)	$	13,892
Income (loss) from continuing operations before provision for income tax	$	817		$	187		$	68		$	1,072
Provision for income tax expense (benefit)	$	(12	)	$	108		$	24		$	120
Income (loss) from continuing operations, net of income tax	$	829		$	79		$	44		$	952
Income (loss) from discontinued operations, net of income tax	$	—		$	(79	)	$	3		$	(76	)
Net income (loss)	$	829		$	—		$	47		$	876
Net income (loss) attributable to MetLife, Inc.	$	826		$	—		$	47		$	873
Net income (loss) available to MetLife, Inc.’s common shareholders	$	820		$	—		$	47		$	867
Comprehensive income (loss)	$	1,879		$	—		$	28		$	1,907
Comprehensive income (loss) attributable to MetLife, Inc.	$	1,875		$	—		$	28		$	1,903
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders:
Basic	$	0.75		$	0.07		$	0.05		$	0.87
Diluted	$	0.75		$	0.07		$	0.04		$	0.86
Net income (loss) available to MetLife, Inc.’s common shareholders per common share:
Basic	$	0.75		$	—		$	0.05		$	0.80
Diluted	$	0.75		$	—		$	0.04		$	0.79

__________________

(1) See Note 3 for additional information on discontinued operations. Revisions include $5 million and $2 million of net investment gains (losses) and provision for income tax expense (benefit), respectively, related to discontinued operations.

Interim Condensed Consolidated Statements of Equity	As Previously Reported		Revisions			As Revised
	(In millions)
Retained Earnings
Balance at December 31, 2016	$	34,480	$	203		$	34,683
Net income (loss)	$	826	$	47		$	873
Balance at March 31, 2017	$	34,863	$	250		$	35,113
Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2016	$	5,347	$	19		$	5,366
Other comprehensive income (loss), net of income tax	$	1,049	$	(19	)	$	1,030
Balance at March 31, 2017	$	6,396	$	—		$	6,396
Total MetLife, Inc.’s Stockholders’ Equity
Balance at December 31, 2016	$	67,309	$	222		$	67,531
Balance at March 31, 2017	$	67,929	$	250		$	68,179
Total Equity
Balance at December 31, 2016	$	67,480	$	222		$	67,702
Balance at March 31, 2017	$	68,108	$	250		$	68,358

XML

Segment Information (Tables)

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Segment Reporting Information, by Segment

Three Months Ended March 31, 2018	U.S.			Asia			Latin America			EMEA			MetLife Holdings			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	5,217		$	1,748		$	699		$	551		$	950		$	13		$	9,178		$	—		$	9,178
Universal life and investment-type product policy fees	258			394			282			112			314			—			1,360			32			1,392
Net investment income	1,662			795			276			75			1,352			59			4,219			(474		)	3,745
Other revenues	204			15			8			16			67			81			391			83			474
Net investment gains (losses)	—			—			—			—			—			—			—			(333		)	(333		)
Net derivative gains (losses)	—			—			—			—			—			—			—			349			349
Total revenues	7,341			2,952			1,265			754			2,683			153			15,148			(343		)	14,805
Expenses
Policyholder benefits and claims and policyholder dividends	5,138			1,343			646			294			1,550			(3		)	8,968			47			9,015
Interest credited to policyholder account balances	407			351			98			25			236			—			1,117			(348		)	769
Capitalization of DAC	(106		)	(465		)	(94		)	(118		)	(10		)	(2		)	(795		)	(1		)	(796		)
Amortization of DAC and VOBA	115			314			60			106			100			2			697			(4		)	693
Amortization of negative VOBA	—			(15		)	—			(6		)	—			—			(21		)	(1		)	(22		)
Interest expense on debt	2			—			2			—			2			280			286			—			286
Other expenses	961			952			338			351			276			232			3,110			94			3,204
Total expenses	6,517			2,480			1,050			652			2,154			509			13,362			(213		)	13,149
Provision for income tax expense (benefit)	171			145			75			21			104			(159		)	357			42			399
Adjusted earnings	$	653		$	327		$	140		$	81		$	425		$	(197	)	1,429
Adjustments to:
Total revenues																			(343		)
Total expenses																			213
Provision for income tax (expense) benefit																			(42		)
Income (loss) from continuing operations, net of income tax																			$	1,257					$	1,257

Three Months Ended March 31, 2017	U.S.			Asia			Latin America			EMEA			MetLife Holdings			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	5,185		$	1,708		$	647		$	502		$	1,059		$	38		$	9,139		$	(174	)	$	8,965
Universal life and investment-type product policy fees	265			366			260			95			362			—			1,348			12			1,360
Net investment income	1,612			702			303			74			1,441			40			4,172			249			4,421
Other revenues	204			10			9			17			96			59			395			(53		)	342
Net investment gains (losses)	—			—			—			—			—			—			—			88			88
Net derivative gains (losses)	—			—			—			—			—			—			—			(212		)	(212		)
Total revenues	7,266			2,786			1,219			688			2,958			137			15,054			(90		)	14,964
Expenses
Policyholder benefits and claims and policyholder dividends	5,244			1,315			633			269			1,733			25			9,219			(46		)	9,173
Interest credited to policyholder account balances	351			321			82			24			257			1			1,036			415			1,451
Capitalization of DAC	(100		)	(420		)	(82		)	(92		)	(34		)	(1		)	(729		)	16			(713		)
Amortization of DAC and VOBA	114			291			78			87			74			1			645			18			663
Amortization of negative VOBA	—			(37		)	—			(3		)	—			—			(40		)	(3		)	(43		)
Interest expense on debt	2			—			1			—			15			277			295			(12		)	283
Other expenses	909			875			326			316			340			175			2,941			137			3,078
Total expenses	6,520			2,345			1,038			601			2,385			478			13,367			525			13,892
Provision for income tax expense (benefit)	249			146			38			12			186			(271		)	360			(240		)	120
Adjusted earnings	$	497		$	295		$	143		$	75		$	387		$	(70	)	1,327
Adjustments to:
Total revenues																			(90		)
Total expenses																			(525		)
Provision for income tax (expense) benefit																			240
Income (loss) from continuing operations, net of income tax																			$	952					$	952

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

	March 31, 2018		December 31, 2017
	(In millions)
U.S.	$	251,496	$	255,428
Asia	143,458		136,928
Latin America	78,638		79,670
EMEA	30,546		30,500
MetLife Holdings	175,817		183,160
Corporate & Other	32,629		34,206
Total	$	712,584	$	719,892

XML

Dispositions (Tables)

3 Months Ended

Mar. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

Effects of Reinsurance [Table Text Block]

Information regarding the significant effects of reinsurance transactions with Brighthouse was as follows:

	Included on Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)			Excluded from Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
	Three Months Ended March 31,
	2018			2017
	(In millions)
Premiums
Reinsurance assumed	$	96		$	97
Reinsurance ceded	(3		)	(3		)
Net premiums	$	93		$	94
Universal life and investment-type product policy fees
Reinsurance assumed	$	1		$	(4	)
Reinsurance ceded	(24		)	(24		)
Net universal life and investment-type product policy fees	$	(23	)	$	(28	)
Policyholder benefits and claims
Reinsurance assumed	$	78		$	75
Reinsurance ceded	(10		)	(6		)
Net policyholder benefits and claims	$	68		$	69
Interest credited to policyholder account balances
Reinsurance assumed	$	4		$	4
Reinsurance ceded	(18		)	(18		)
Net interest credited to policyholder account balances	$	(14	)	$	(14	)
Other expenses
Reinsurance assumed	$	34		$	(30	)
Reinsurance ceded	(14		)	(21		)
Net other expenses	$	20		$	(51	)

Information regarding the significant effects of reinsurance transactions with Brighthouse included on the interim condensed consolidated balance sheets was as follows at:

	March 31, 2018					December 31, 2017
	Assumed		Ceded			Assumed		Ceded
	(In millions)
Assets
Premiums, reinsurance and other receivables	$	154	$	1,802		$	167	$	1,793
Deferred policy acquisition costs and value of business acquired	390		(40		)	384		(40		)
Total assets	$	544	$	1,762		$	551	$	1,753
Liabilities
Future policy benefits	$	1,788	$	—		$	1,734	$	—
Other policy-related balances	116		25			119		28
Other liabilities	1,447		25			1,458		19
Total liabilities	$	3,351	$	50		$	3,311	$	47

Disposal Groups, Including Discontinued Operations [Table Text Block]

	Three Months Ended March 31,
	2017
	(In millions)
Revenues
Premiums	$	350
Universal life and investment-type product policy fees	942
Net investment income	775
Other revenues	32
Total net investment gains (losses)	(50		)
Net derivative gains (losses)	(700		)
Total revenues	1,349
Expenses
Policyholder benefits and claims	1,002
Interest credited to policyholder account balances	261
Policyholder dividends	7
Goodwill impairment	—
Other expenses	261
Total expenses	1,531
Income (loss) from discontinued operations before provision for income tax	(182		)
Provision for income tax expense (benefit)	(106		)
Income (loss) from discontinued operations, net of income tax	$	(76	)

In the interim condensed consolidated statements of cash flows, the cash flows from discontinued operations are not separately classified. The following table presents selected financial information regarding cash flows of the discontinued operations.

	Three Months Ended March 31,
	2017
	(In millions)
Net cash provided by (used in):
Operating activities	$	302
Investing activities	$	16
Financing activities	$	266

XML

Insurance (Tables)

3 Months Ended

Mar. 31, 2018

Insurance [Abstract]

Guarantees related to Annuity, Universal and Variable Life Contracts

Information regarding the Company’s guarantee exposure, which includes direct and assumed business, but excludes offsets from hedging or ceded reinsurance, if any, was as follows at:

	March 31, 2018								December 31, 2017
	In the Event of Death				At Annuitization				In the Event of Death				At Annuitization
	(Dollars in millions)
Annuity Contracts:
Variable Annuity Guarantees:
Total account value (1), (2), (3)	$	64,728			$	25,169			$	66,724			$	26,223
Separate account value (1)	$	43,714			$	23,302			$	45,431			$	24,336
Net amount at risk (2)	$	1,587	(4	)	$	510	(5	)	$	1,238	(4	)	$	525	(5	)
Average attained age of contractholders	66 years				66 years				65 years				65 years
Other Annuity Guarantees:
Total account value (1), (3)	N/A				$	1,437			N/A				$	1,424
Net amount at risk	N/A				$	559	(6	)	N/A				$	569	(6	)
Average attained age of contractholders	N/A				50 years				N/A				50 years

	March 31, 2018				December 31, 2017
	Secondary Guarantees		Paid-Up Guarantees		Secondary Guarantees		Paid-Up Guarantees
	(Dollars in millions)
Universal and Variable Life Contracts:
Total account value (1), (3)	$	9,089	$	3,171	$	9,036	$	3,207
Net amount at risk (7)	$	66,762	$	16,332	$	66,956	$	16,615
Average attained age of policyholders	57 years		63 years		56 years		63 years

__________________

(1) The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive.

(2) Includes amounts, which are not reported on the interim condensed consolidated balance sheets, from assumed variable annuity guarantees from the Company’s former operating joint venture in Japan.

(3) Includes the contractholder’s investments in the general account and separate account, if applicable.

(4) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death.

(5) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved.

(6) Defined as either the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date or the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. These amounts represent the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date.

(7) Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date.

Liabilities for Unpaid Claims and Claim Expenses

Rollforward of Claims and Claim Adjustment Expenses

Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows:

	Three Months Ended March 31,
	2018			2017 (1)
	(In millions)
Balance, beginning of period	$	17,094		$	16,157
Less: Reinsurance recoverables	2,198			1,968
Net balance, beginning of period	14,896			14,189
Incurred related to:
Current period	6,504			6,637
Prior periods (2)	(148		)	(127		)
Total incurred	6,356			6,510
Paid related to:
Current period	(3,339		)	(3,723		)
Prior periods	(2,719		)	(2,604		)
Total paid	(6,058		)	(6,327		)
Net balance, end of period	15,194			14,372
Add: Reinsurance recoverables	2,237			2,123
Balance, end of period (included in future policy benefits and other policy-related balances)	$	17,431		$	16,495

__________________

(1) As discussed in Note 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report, at December 31, 2016, the Net balance decreased and the Reinsurance recoverables increased from those amounts previously reported. Additionally, at March 31, 2017, the Net balance decreased by $131 million and the Reinsurance recoverables increased by $144 million from those amounts previously reported in MetLife, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017. These adjustments to the Net balance and the Reinsurance recoverables, at both periods, are primarily to correct for improper classification of reinsurance recoverables.

(2) During both the three months ended March 31, 2018 and 2017, as a result of changes in estimates of insured events in the respective prior periods, the claims and claim adjustment expenses associated with prior periods decreased due to favorable claims experience.

XML

Closed Block (Tables)

3 Months Ended

Mar. 31, 2018

Closed Block Disclosure [Abstract]

Closed block liabilities and assets

Information regarding the closed block liabilities and assets designated to the closed block was as follows at:

	March 31, 2018			December 31, 2017
	(In millions)
Closed Block Liabilities
Future policy benefits	$	40,285		$	40,463
Other policy-related balances	213			222
Policyholder dividends payable	462			437
Policyholder dividend obligation	1,277			2,121
Other liabilities	285			212
Total closed block liabilities	42,522			43,455
Assets Designated to the Closed Block
Investments:
Fixed maturity securities available-for-sale, at estimated fair value	26,815			27,904
Equity securities, at estimated fair value	68			70
Mortgage loans	6,040			5,878
Policy loans	4,532			4,548
Real estate and real estate joint ventures	595			613
Other invested assets	607			731
Total investments	38,657			39,744
Accrued investment income	475			477
Premiums, reinsurance and other receivables; cash and cash equivalents	208			14
Current income tax recoverable	40			35
Deferred income tax assets	23			36
Total assets designated to the closed block	39,403			40,306
Excess of closed block liabilities over assets designated to the closed block	3,119			3,149
Amounts included in AOCI:
Unrealized investment gains (losses), net of income tax	1,711			1,863
Unrealized gains (losses) on derivatives, net of income tax	(57		)	(7		)
Allocated to policyholder dividend obligation, net of income tax	(1,009		)	(1,379		)
Total amounts included in AOCI	645			477
Maximum future earnings to be recognized from closed block assets and liabilities	$	3,764		$	3,626

Closed block policyholder dividend obligation

Information regarding the closed block policyholder dividend obligation was as follows:

	Three Months Ended March 31, 2018			Year Ended December 31, 2017
	(In millions)
Balance, beginning of period	$	2,121		$	1,931
Change in unrealized investment and derivative gains (losses)	(844		)	190
Balance, end of period	$	1,277		$	2,121

Closed block revenues and expenses

Information regarding the closed block revenues and expenses was as follows:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Revenues
Premiums	$	387		$	402
Net investment income	444			466
Net investment gains (losses)	(29		)	(8		)
Net derivative gains (losses)	(3		)	(8		)
Total revenues	799			852
Expenses
Policyholder benefits and claims	571			568
Policyholder dividends	244			250
Other expenses	29			32
Total expenses	844			850
Revenues, net of expenses before provision for income tax expense (benefit)	(45		)	2
Provision for income tax expense (benefit)	(10		)	—
Revenues, net of expenses and provision for income tax expense (benefit)	$	(35	)	$	2

XML

Investments (Tables)

3 Months Ended

Mar. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Fixed Maturity and Equity Securities Available-for-Sale

The following table presents the fixed maturity securities AFS by sector. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities. Included within fixed maturity securities AFS are structured securities including residential mortgage-backed securities (“RMBS”), asset-backed securities (“ABS”) and commercial mortgage-backed securities (“CMBS”) (collectively, “Structured Securities”).

	March 31, 2018											December 31, 2017
	Amortized Cost		Gross Unrealized							Estimated Fair Value		Amortized Cost		Gross Unrealized							Estimated Fair Value
			Gains		Temporary Losses		OTTI Losses (1)							Gains		Temporary Losses		OTTI Losses (1)
	(In millions)
Fixed maturity securities:
U.S. corporate	$	77,786	$	5,105	$	1,057	$	—		$	81,834	$	76,005	$	7,007	$	351	$	—		$	82,661
Foreign government	58,423		6,484		397		—			64,510		55,351		6,495		312		—			61,534
Foreign corporate	52,894		3,366		797		—			55,463		52,409		3,836		676		—			55,569
U.S. government and agency	40,989		3,395		557		—			43,827		43,446		4,227		279		—			47,394
RMBS	26,858		999		481		(35		)	27,411		27,846		1,145		233		(42		)	28,800
State and political subdivision	10,762		1,473		43		—			12,192		10,752		1,717		13		1			12,455
ABS	11,695		111		41		1			11,764		12,213		116		39		(1		)	12,291
CMBS	7,692		112		94		—			7,710		8,047		222		42		—			8,227
Total fixed maturity securities	$	287,099	$	21,045	$	3,467	$	(34	)	$	304,711	$	286,069	$	24,765	$	1,945	$	(42	)	$	308,931

__________________

(1) Noncredit OTTI losses included in AOCI in an unrealized gain position are due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).”

	March 31, 2018				December 31, 2017
	Estimated Fair Value		% of Total		Estimated Fair Value		% of Total
	(Dollars in millions)
Equity securities:
Common stock	$	1,046	67.7	%	$	2,035	81.0	%
Non-redeemable preferred stock	498		32.3		478		19.0
Total equity securities	$	1,544	100.0	%	$	2,513	100.0	%

Available-for-sale fixed maturity securities by contractual maturity date

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at March 31, 2018:

	Due in One Year or Less		Due After One Year Through Five Years		Due After Five Years Through Ten Years		Due After Ten Years		Structured Securities		Total Fixed Maturity Securities
	(In millions)
Amortized cost	$	12,620	$	60,639	$	61,373	$	106,222	$	46,245	$	287,099
Estimated fair value	$	12,674	$	62,809	$	63,919	$	118,424	$	46,885	$	304,711

Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale

The following table presents the estimated fair value and gross unrealized losses of fixed maturity 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 at:

	March 31, 2018								December 31, 2017
	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
	(Dollars in millions)
Fixed maturity securities:
U.S. corporate	$	20,465	$	642	$	4,426	$	415	$	5,604	$	92	$	4,115	$	259
Foreign government	4,510		137		3,297		260		4,234		83		3,251		229
Foreign corporate	8,932		259		5,835		538		4,422		99		6,802		577
U.S. government and agency	19,105		224		3,378		333		18,273		93		3,560		186
RMBS	10,855		237		3,713		209		6,359		50		4,159		141
State and political subdivision	774		24		302		19		182		2		346		12
ABS	2,593		15		551		27		1,695		7		729		31
CMBS	3,069		48		478		46		1,174		9		413		33
Total fixed maturity securities	$	70,303	$	1,586	$	21,980	$	1,847	$	41,943	$	435	$	23,375	$	1,468
Total number of securities in an unrealized loss position	5,111				1,887				2,598				1,955

Disclosure of Mortgage Loans Net of Valuation Allowance

Mortgage loans are summarized as follows at:

	March 31, 2018					December 31, 2017
	Carrying Value			% of Total		Carrying Value			% of Total
	(Dollars in millions)
Mortgage loans:
Commercial	$	46,690		65.7	%	$	44,375		64.6	%
Agricultural	13,098			18.4		13,014			18.9
Residential	11,156			15.7		11,136			16.2
Subtotal (1)	70,944			99.8		68,525			99.7
Valuation allowances	(327		)	(0.4	)	(314		)	(0.5	)
Subtotal mortgage loans, net	70,617			99.4		68,211			99.2
Residential — FVO	438			0.6		520			0.8
Total mortgage loans, net	$	71,055		100.0	%	$	68,731		100.0	%

__________________

(1) Purchases of mortgage loans, primarily residential mortgage loans, were$307 millionand$762 millionfor thethree months endedMarch 31, 2018and2017, respectively.

Disclosure of mortgage loans held-for-investment and valuation allowances by method of evaluation for credit loss

Mortgage loans by portfolio segment, by method of evaluation of credit loss, impaired mortgage loans including those modified in a troubled debt restructuring, and the related valuation allowances, were as follows at:

	Evaluated Individually for Credit Losses										Evaluated Collectively for Credit Losses				Impaired Loans
	Impaired Loans with a Valuation Allowance						Impaired Loans without a Valuation Allowance
	Unpaid Principal Balance		Recorded Investment		Valuation Allowances		Unpaid Principal Balance		Recorded Investment		Recorded Investment		Valuation Allowances		Carrying Value
	(In millions)
March 31, 2018
Commercial	$	—	$	—	$	—	$	—	$	—	$	46,690	$	228	$	—
Agricultural	22		21		2		101		100		12,977		39		119
Residential	—		—		—		376		339		10,817		58		339
Total	$	22	$	21	$	2	$	477	$	439	$	70,484	$	325	$	458
December 31, 2017
Commercial	$	—	$	—	$	—	$	—	$	—	$	44,375	$	214	$	—
Agricultural	22		21		2		27		27		12,966		39		46
Residential	—		—		—		358		324		10,812		59		324
Total	$	22	$	21	$	2	$	385	$	351	$	68,153	$	312	$	370

Allowance for Loan and Lease Losses, Provision for Loss, Net

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

	Three Months Ended March 31,
	2018										2017
	Commercial		Agricultural		Residential			Total			Commercial		Agricultural		Residential			Total
	(In millions)
Balance, beginning of period	$	214	$	41	$	59		$	314		$	202	$	39	$	63		$	304
Provision (release)	14		—		—			14			5		—		5			10
Charge-offs, net of recoveries	—		—		(1		)	(1		)	—		—		(4		)	(4		)
Balance, end of period	$	228	$	41	$	58		$	327		$	207	$	39	$	64		$	310

Schedule of Financing Receivables, Non Accrual Status

The past due and nonaccrual mortgage loans at recorded investment, prior to valuation allowances, by portfolio segment, were as follows at:

	Past Due				Greater than 90 Days Past Due and Still Accruing Interest				Nonaccrual
	March 31, 2018		December 31, 2017		March 31, 2018		December 31, 2017		March 31, 2018		December 31, 2017
	(In millions)
Commercial	$	1	$	—	$	—	$	—	$	1	$	—
Agricultural	219		134		114		125		106		36
Residential	408		514		42		33		366		481
Total	$	628	$	648	$	156	$	158	$	473	$	517

Components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss)

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

	March 31, 2018			December 31, 2017
	(In millions)
Fixed maturity securities	$	17,545		$	22,645
Fixed maturity securities with noncredit OTTI losses included in AOCI	35			41
Total fixed maturity securities	17,580			22,686
Equity securities	—			421
Derivatives	936			1,453
Other	136			46
Subtotal	18,652			24,606
Amounts allocated from:
Future policy benefits	(138		)	(77		)
DAC, VOBA and DSI	(1,304		)	(1,768		)
Policyholder dividend obligation	(1,277		)	(2,121		)
Subtotal	(2,719		)	(3,966		)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	(5		)	(12		)
Deferred income tax benefit (expense)	(4,372		)	(6,958		)
Net unrealized investment gains (losses)	11,556			13,670
Net unrealized investment gains (losses) attributable to noncontrolling interests	(9		)	(8		)
Net unrealized investment gains (losses) attributable to MetLife, Inc.	$	11,547		$	13,662

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

	Three Months Ended March 31, 2018
	(In millions)
Balance, beginning of period	$	13,662
Cumulative effects of changes in accounting principles, net of income tax (Note 1)	1,258
Fixed maturity securities on which noncredit OTTI losses have been recognized	(6		)
Unrealized investment gains (losses) during the period	(5,523		)
Unrealized investment gains (losses) relating to:
Future policy benefits	(61		)
DAC, VOBA and DSI	464
Policyholder dividend obligation	844
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	7
Deferred income tax benefit (expense)	903
Net unrealized investment gains (losses)	11,548
Net unrealized investment gains (losses) attributable to noncontrolling interests	(1		)
Balance, end of period	$	11,547
Change in net unrealized investment gains (losses)	$	(2,114	)
Change in net unrealized investment gains (losses) attributable to noncontrolling interests	(1		)
Change in net unrealized investment gains (losses) attributable to MetLife, Inc.	$	(2,115	)

Securities Lending

Elements of the Company’s securities lending program are presented below at:

	March 31, 2018		December 31, 2017
	(In millions)
Securities on loan: (1)
Amortized cost	$	17,047	$	17,801
Estimated fair value	$	17,812	$	19,028
Cash collateral received from counterparties (2)	$	18,111	$	19,417
Security collateral received from counterparties (3)	$	41	$	19
Reinvestment portfolio — estimated fair value	$	18,149	$	19,508

__________________

(1) Included within fixed maturity securities.

(2) Included within payables for collateral under securities loaned and other transactions.

(3) Security collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the consolidated financial statements.

The cash collateral liability by loaned security type and remaining tenor of the agreements was as follows at:

	March 31, 2018								December 31, 2017
	Remaining Tenor of Securities Lending Agreements								Remaining Tenor of Securities Lending Agreements
	Open (1)		1 Month or Less		Over 1 to 6 Months		Total		Open (1)		1 Month or Less		Over 1 to 6 Months		Total
	(In millions)
Cash collateral liability by loaned security type:
U.S. government and agency	$	3,493	$	6,282	$	7,269	$	17,044	$	3,753	$	6,031	$	8,607	$	18,391
Foreign government	—		312		755		1,067		—		192		834		1,026
Total	$	3,493	$	6,594	$	8,024	$	18,111	$	3,753	$	6,223	$	9,441	$	19,417

__________________

(1) The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral.

Repurchase Agreements

Elements of the Company’s short-term repurchase agreements are presented below at:

	March 31, 2018		December 31, 2017
	(In millions)
Securities on loan: (1)
Amortized cost	$	2,796	$	994
Estimated fair value	$	2,927	$	1,141
Cash collateral received from counterparties (2)	$	2,861	$	1,102
Reinvestment portfolio — estimated fair value	$	2,854	$	1,102

__________________

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

(2) Included within payables for collateral under securities loaned and other transactions and other liabilities.

The cash collateral liability by loaned security type and remaining tenor of the agreements was as follows at:

	March 31, 2018						December 31, 2017
	Remaining Tenor of Repurchase Agreements						Remaining Tenor of Repurchase Agreements
	1 Month or Less		Over 1 to 6 Months		Total		1 Month or Less		Over 1 to 6 Months		Total
	(In millions)
Cash collateral liability by loaned security type:
U.S. government and agency	$	2,760	$	5	$	2,765	$	1,005	$	—	$	1,005
All other corporate and government	—		96		96		44		53		97
Total	$	2,760	$	101	$	2,861	$	1,049	$	53	$	1,102

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 all asset classes, except mortgage loans, which are presented at carrying value, at:

	March 31, 2018		December 31, 2017
	(In millions)
Invested assets on deposit (regulatory deposits)	$	2,079	$	1,879
Invested assets held in trust (collateral financing arrangement and reinsurance agreements)	2,586		2,490
Invested assets pledged as collateral	25,198		24,174
Total invested assets on deposit, held in trust and pledged as collateral	$	29,863	$	28,543

The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report) and derivative transactions (see Note 7).

The Components of Net Investment Income

The components of net investment income were as follows:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Investment income:
Fixed maturity securities	$	2,896		$	2,825
Equity securities	16			31
FVO general account securities (1)	6			29
Mortgage loans	792			736
Policy loans	124			127
Real estate and real estate joint ventures	168			153
Other limited partnership interests	207			240
Cash, cash equivalents and short-term investments	72			51
Operating joint ventures	13			2
Other	106			72
Subtotal	4,400			4,266
Less: Investment expenses	302			261
Subtotal, net	4,098			4,005
Unit-linked investments (1)	(353		)	416
Net investment income	$	3,745		$	4,421

__________________

(1) Changes in estimated fair value subsequent to purchase for investments still held as of the end of the respective periods included in net investment income were principally from Unit-linked investments, and were ($373) million and $340 million for the three months endedMarch 31, 2018 and 2017, respectively.

The components of net investment gains (losses)

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

	Three Months Ended March 31,
	2018			2017
	(In millions)
Total gains (losses) on fixed maturity securities:
OTTI losses on fixed maturity securities recognized in earnings	$	—		$	—
Fixed maturity securities — net gains (losses) on sales and disposals	(95		)	(2		)
Total gains (losses) on fixed maturity securities	(95		)	(2		)
Total gains (losses) on equity securities:
OTTI losses recognized — by security type:
Common stock	—			(7		)
Non-redeemable preferred stock	—			(1		)
Total OTTI losses on equity securities recognized in earnings	—			(8		)
Equity securities — net gains (losses) on sales and disposals	102			43
Change in estimated fair value of equity securities (1)	(133		)	—
Total gains (losses) on equity securities	(31		)	35
Mortgage loans	(21		)	(12		)
Real estate and real estate joint ventures	25			(3		)
Other limited partnership interests	—			(7		)
Other	(130		)	(26		)
Subtotal	(252		)	(15		)
Change in estimated fair value of other limited partnership interests and real estate joint ventures	(5		)	—
Non-investment portfolio gains (losses) (2)	(76		)	103
Subtotal	(81		)	103
Total net investment gains (losses)	$	(333	)	$	88

__________________

(1) Changes in estimated fair value subsequent to purchase for equity securities still held as of the end of the period included in net investment gains (losses) were ($37) million for the three months endedMarch 31, 2018. See Note 1.

(2) Non-investment portfolio gains (losses) for the three months endedMarch 31, 2018 includes a loss of $168 million which represents the change in estimated fair value of FVO Brighthouse Common Stock held by the Company. See Note 3.

Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains and losses

Proceeds from sales or disposals of fixed maturity securities AFS and the components of fixed maturity securities AFS net investment gains (losses) were as shown in the table below:

	Three Months Ended March 31,
	2018			2017
	Fixed Maturity Securities
	(In millions)
Proceeds	$	19,070		$	14,461
Gross investment gains	$	106		$	142
Gross investment losses	(201		)	(144		)
OTTI losses	—			—
Net investment gains (losses)	$	(95	)	$	(2	)

Rollforward of the Cumulative Credit Loss Component of OTTI income (loss)

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 March 31,
	2018			2017
	(In millions)
Balance, beginning of period	$	138		$	187
Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI	(9		)	(17		)
Increase in cash flows — accretion of previous credit loss OTTI	(1		)	—
Balance, end of period	$	128		$	170

Variable Interest Entity, Primary Beneficiary [Member]

Variable Interest Entity [Line Items]

Schedule of Variable Interest Entities [Table Text Block]

The following table presents the total assets and total liabilities relating to investment-related VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at:

	March 31, 2018				December 31, 2017
	Total Assets		Total Liabilities		Total Assets		Total Liabilities
	(In millions)
Renewable energy partnership (1)	$	109	$	1	$	116	$	3
Other investments	32		6		32		6
Total	$	141	$	7	$	148	$	9

__________________

(1) Assets of the renewable energy partnership primarily consisted of other invested assets.

Variable Interest Entity, Not Primary Beneficiary [Member]

Variable Interest Entity [Line Items]

Schedule of Variable Interest Entities [Table Text Block]

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:

	March 31, 2018				December 31, 2017
	Carrying Amount		Maximum Exposure to Loss (1)		Carrying Amount		Maximum Exposure to Loss (1)
	(In millions)
Fixed maturity securities AFS:
Structured Securities (2)	$	45,555	$	45,555	$	47,614	$	47,614
U.S. and foreign corporate	1,355		1,355		1,560		1,560
Other limited partnership interests	4,941		9,187		4,834		8,543
Other invested assets	2,300		2,557		2,291		2,625
Other investments	41		46		82		87
Total	$	54,192	$	58,700	$	56,381	$	60,429

__________________

(1) The maximum exposure to loss relating to fixed maturity 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. 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 $113 million and $117 million at March 31, 2018 and December 31, 2017, 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 in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity.

Commercial

Mortgage Loans on Real Estate [Line Items]

Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories

The credit quality of commercial mortgage loans was as follows at:

	Recorded Investment										Estimated Fair Value		% of Total
	Debt Service Coverage Ratios								% of Total
	> 1.20x		1.00x - 1.20x		< 1.00x		Total
	(Dollars in millions)
March 31, 2018
Loan-to-value ratios:
Less than 65%	$	39,705	$	1,023	$	186	$	40,914	87.6	%	$	41,327	87.9	%
65% to 75%	4,280		98		143		4,521		9.7		4,504		9.6
76% to 80%	265		210		126		601		1.3		574		1.2
Greater than 80%	401		176		77		654		1.4		613		1.3
Total	$	44,651	$	1,507	$	532	$	46,690	100.0	%	$	47,018	100.0	%
December 31, 2017
Loan-to-value ratios:
Less than 65%	$	37,073	$	1,483	$	201	$	38,757	87.4	%	$	39,528	87.7	%
65% to 75%	4,183		98		119		4,400		9.9		4,408		9.8
76% to 80%	235		210		57		502		1.1		476		1.0
Greater than 80%	401		168		147		716		1.6		672		1.5
Total	$	41,892	$	1,959	$	524	$	44,375	100.0	%	$	45,084	100.0	%

Agricultural

Mortgage Loans on Real Estate [Line Items]

Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories

The credit quality of agricultural mortgage loans was as follows at:

	March 31, 2018				December 31, 2017
	Recorded Investment		% of Total		Recorded Investment		% of Total
	(Dollars in millions)
Loan-to-value ratios:
Less than 65%	$	12,433	94.9	%	$	12,347	94.9	%
65% to 75%	616		4.7		618		4.7
76% to 80%	40		0.3		40		0.3
Greater than 80%	9		0.1		9		0.1
Total	$	13,098	100.0	%	$	13,014	100.0	%

Residential

Mortgage Loans on Real Estate [Line Items]

Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories

The credit quality of residential mortgage loans was as follows at:

	March 31, 2018				December 31, 2017
	Recorded Investment		% of Total		Recorded Investment		% of Total
	(Dollars in millions)
Performance indicators:
Performing	$	10,748	96.3	%	$	10,622	95.4	%
Nonperforming	408		3.7		514		4.6
Total	$	11,156	100.0	%	$	11,136	100.0	%

XML

Derivatives (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location

The following table presents the primary underlying risk exposure, gross notional amount, and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at:

		March 31, 2018						December 31, 2017
	Primary Underlying Risk Exposure	Gross Notional Amount		Estimated Fair Value				Gross Notional Amount		Estimated Fair Value
				Assets		Liabilities				Assets		Liabilities
		(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges:
Interest rate swaps	Interest rate	$	2,521	$	2,111	$	2	$	3,843	$	2,289	$	3
Foreign currency swaps	Foreign currency exchange rate	1,146		65		36		1,116		50		18
Foreign currency forwards	Foreign currency exchange rate	3,477		97		4		3,253		2		37
Subtotal		7,144		2,273		42		8,212		2,341		58
Cash flow hedges:
Interest rate swaps	Interest rate	3,580		158		14		3,584		235		4
Interest rate forwards	Interest rate	3,143		—		218		3,332		—		128
Foreign currency swaps	Foreign currency exchange rate	33,236		1,210		1,778		32,152		1,142		1,665
Subtotal		39,959		1,368		2,010		39,068		1,377		1,797
Foreign operations hedges:
Foreign currency forwards	Foreign currency exchange rate	458		2		5		332		2		5
Currency options	Foreign currency exchange rate	8,587		19		263		9,408		44		163
Subtotal		9,045		21		268		9,740		46		168
Total qualifying hedges		56,148		3,662		2,320		57,020		3,764		2,023
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate swaps	Interest rate	52,610		1,597		279		60,485		2,203		576
Interest rate floors	Interest rate	7,201		66		—		7,201		92		—
Interest rate caps	Interest rate	46,020		221		2		53,079		78		2
Interest rate futures	Interest rate	2,991		2		3		4,366		2		4
Interest rate options	Interest rate	14,816		575		—		12,009		656		11
Interest rate forwards	Interest rate	217		—		51		217		—		42
Interest rate total return swaps	Interest rate	1,048		14		25		1,048		8		2
Synthetic GICs	Interest rate	11,720		—		—		11,318		—		—
Foreign currency swaps	Foreign currency exchange rate	10,773		580		461		9,902		693		506
Foreign currency forwards	Foreign currency exchange rate	13,803		295		67		12,238		79		190
Currency futures	Foreign currency exchange rate	900		—		8		846		2		—
Currency options	Foreign currency exchange rate	2,391		9		—		3,123		55		6
Credit default swaps — purchased	Credit	1,888		5		41		2,020		7		43
Credit default swaps — written	Credit	11,421		210		2		11,375		271		—
Equity futures	Equity market	3,088		7		19		4,005		18		4
Equity index options	Equity market	19,509		594		603		19,886		569		690
Equity variance swaps	Equity market	4,661		52		194		4,661		54		199
Equity total return swaps	Equity market	1,012		35		—		1,117		—		41
Total non-designated or nonqualifying derivatives		206,069		4,262		1,755		218,896		4,787		2,316
Total		$	262,217	$	7,924	$	4,075	$	275,916	$	8,551	$	4,339

The following table presents earned income on derivatives:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Qualifying hedges:
Net investment income	$	81		$	75
Interest credited to policyholder account balances	(23		)	(6		)
Other expenses	(2		)	(3		)
Nonqualifying hedges:
Net derivative gains (losses)	133			168
Policyholder benefits and claims	2			2
Total	$	191		$	236

Components of Net Derivatives Gains (Losses)

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

	Three Months Ended March 31,
	2018		2017
	(In millions)
Freestanding derivatives and hedging gains (losses) (1)	$	312	$	(369	)
Embedded derivatives gains (losses)	37		157
Total net derivative gains (losses)	$	349	$	(212	)

__________________

(1) Includes foreign currency transaction gains (losses) on hedged items in cash flow and nonqualifying hedging relationships, which are not presented elsewhere in this note.

Amount and location of gains (losses) recognized in income for derivatives that are not designated or qualifying as hedging instruments

The following table presents the amount and location of gains (losses) recognized in income for derivatives that were not designated or not qualifying as hedging instruments:

	Net Derivative Gains (Losses)			Net Investment Income (1)			Policyholder Benefits and Claims (2)
	(In millions)
Three Months Ended March 31, 2018
Interest rate derivatives	$	(235	)	$	4		$	(7	)
Foreign currency exchange rate derivatives	387			—			2
Credit derivatives — purchased	(3		)	—			—
Credit derivatives — written	(44		)	—			—
Equity derivatives	98			1			12
Total	$	203		$	5		$	7
Three Months Ended March 31, 2017
Interest rate derivatives	$	(390	)	$	2		$	2
Foreign currency exchange rate derivatives	363			—			—
Credit derivatives — purchased	(8		)	—			—
Credit derivatives — written	32			—			—
Equity derivatives	(354		)	(3		)	(72		)
Total	$	(357	)	$	(1	)	$	(70	)

__________________

(1) Changes in estimated fair value related to economic hedges of equity method investments in joint ventures and derivatives held within Unit-linked investments.

(2) Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits.

Net derivatives gains (losses) recognized on fair value derivatives and the related hedged items

The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges within net derivative gains (losses). The following table presents the amount of such net derivative gains (losses):

Derivatives in Fair Value Hedging Relationships	Hedged Items in Fair Value Hedging Relationships	Net Derivative Gains (Losses) Recognized for Derivatives			Net Derivative Gains (Losses) Recognized for Hedged Items			Ineffectiveness Recognized in Net Derivative Gains (Losses)
		(In millions)
Three Months Ended March 31, 2018
Interest rate swaps:	Fixed maturity securities	$	3		$	(2	)	$	1
	Policyholder liabilities (1)	(213		)	212			(1		)
Foreign currency swaps:	Foreign-denominated fixed maturity securities and mortgage loans	(27		)	27			—
	Foreign-denominated policyholder account balances (2)	18			(18		)	—
Foreign currency forwards:	Foreign-denominated fixed maturity securities	179			(168		)	11
Total		$	(40	)	$	51		$	11
Three Months Ended March 31, 2017
Interest rate swaps:	Fixed maturity securities	$	1		$	(1	)	$	—
	Policyholder liabilities (1)	(51		)	50			(1		)
Foreign currency swaps:	Foreign-denominated fixed maturity securities	(3		)	3			—
	Foreign-denominated policyholder account balances (2)	1			2			3
Foreign currency forwards:	Foreign-denominated fixed maturity securities	45			(41		)	4
Total		$	(7	)	$	13		$	6

__________________

(1) Fixed rate liabilities reported in policyholder account balances or future policy benefits.

(2) Fixed rate or floating rate liabilities.

Derivatives and Non-Derivative Hedging Instruments in Net Investment Hedging Relationships

The following table presents the effects of derivatives in net investment hedging relationships on the interim condensed consolidated statements of operations and comprehensive income (loss) and the interim condensed consolidated statements of equity:

Derivatives in Net Investment Hedging Relationships (1)	Amount of Gains (Losses) Deferred in AOCI (Effective Portion)
	(In millions)
Three Months Ended March 31, 2018
Foreign currency forwards	$	(8	)
Currency options	(149		)
Total	$	(157	)
Three Months Ended March 31, 2017
Foreign currency forwards	$	(95	)
Currency options	(231		)
Total	$	(326	)

__________________

(1) There was no ineffectiveness recognized for the Company’s hedges of net investments in foreign operations. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

Schedule of estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps

The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at:

	March 31, 2018					December 31, 2017
Rating Agency Designation of Referenced Credit Obligations (1)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)
	(Dollars in millions)
Aaa/Aa/A
Single name credit default swaps (3)	$	7	$	381	2.4	$	7	$	375	2.6
Credit default swaps referencing indices	40		2,267		2.5	44		2,268		2.7
Subtotal	47		2,648		2.5	51		2,643		2.7
Baa
Single name credit default swaps (3)	7		656		1.9	7		605		1.8
Credit default swaps referencing indices	132		7,747		5.2	183		7,662		5.0
Subtotal	139		8,403		5.0	190		8,267		4.8
Ba
Single name credit default swaps (3)	—		20		1.2	1		115		3.4
Credit default swaps referencing indices	—		—		—	—		—		—
Subtotal	—		20		1.2	1		115		3.4
B
Single name credit default swaps (3)	2		20		3.2	2		20		3.5
Credit default swaps referencing indices	20		330		5.2	27		330		5.0
Subtotal	22		350		5.1	29		350		4.9
Total	$	208	$	11,421	4.4	$	271	$	11,375	4.3

__________________

(1) The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), Standard & Poor’s Global Ratings (“S&P”) and Fitch Ratings. If no rating is available from a rating agency, then an internally developed rating is used.

(2) The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts.

(3) Single name credit default swaps may be referenced to the credit of corporations, foreign governments, or state and political subdivisions.

Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral

Credit Risk on Freestanding Derivatives

The Company may be exposed to credit-related losses in the event of nonperformance by its counterparties to derivatives. Generally, the current credit exposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements.

The Company manages its credit risk related to derivatives by entering into transactions with creditworthy counterparties and establishing and monitoring exposure limits. The Company’s OTC-bilateral derivative transactions are governed by ISDA Master Agreements which provide for legally enforceable set-off and close-out netting of exposures to specific counterparties in the event of early termination of a transaction, which includes, but is not limited to, events of default and bankruptcy. In the event of an early termination, the Company is permitted to set off receivables from the counterparty against payables to the same counterparty arising out of all included transactions. Substantially all of the Company’s ISDA Master Agreements also include Credit Support Annex provisions which require both the pledging and accepting of collateral in connection with its OTC-bilateral derivatives.

The Company’s OTC-cleared derivatives are effected through central clearing counterparties and its exchange-traded derivatives are effected through regulated exchanges. Such positions are marked to market and margined on a daily basis (both initial margin and variation margin), and the Company has minimal exposure to credit-related losses in the event of nonperformance by counterparties to such derivatives.

See Note 8 for a description of the impact of credit risk on the valuation of derivatives.

The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:

	March 31, 2018						December 31, 2017
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement	Assets			Liabilities			Assets			Liabilities
	(In millions)
Gross estimated fair value of derivatives:
OTC-bilateral (1)	$	7,733		$	3,948		$	7,955		$	4,059
OTC-cleared (1), (6)	230			47			649			223
Exchange-traded	9			30			22			8
Total gross estimated fair value of derivatives (1)	7,972			4,025			8,626			4,290
Amounts offset on the interim condensed consolidated balance sheets	—			—			—			—
Estimated fair value of derivatives presented on the interim condensed consolidated balance sheets (1), (6)	7,972			4,025			8,626			4,290
Gross amounts not offset on the interim condensed consolidated balance sheets:
Gross estimated fair value of derivatives: (2)
OTC-bilateral	(2,376		)	(2,376		)	(2,528		)	(2,528		)
OTC-cleared	(21		)	(21		)	(35		)	(35		)
Exchange-traded	(1		)	(1		)	(1		)	(1		)
Cash collateral: (3), (4)
OTC-bilateral	(4,082		)	—			(4,169		)	—
OTC-cleared	(194		)	(9		)	(584		)	(179		)
Exchange-traded	—			(21		)	—			(5		)
Securities collateral: (5)
OTC-bilateral	(981		)	(1,519		)	(1,004		)	(1,474		)
OTC-cleared	—			(17		)	—			(9		)
Exchange-traded	—			(8		)	—			(2		)
Net amount after application of master netting agreements and collateral	$	317		$	53		$	305		$	57

__________________

(1) At March 31, 2018 and December 31, 2017, derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $48 million and $75 million, respectively, and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of ($50) million and ($49) million, respectively.

(2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals.

(3) Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet.

(4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At March 31, 2018 and December 31, 2017, the Company received excess cash collateral of $204 million and $253 million, respectively, and provided excess cash collateral of $263 million and $272 million, respectively, which is not included in the table above due to the foregoing limitation.

(5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at March 31, 2018, none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At March 31, 2018 and December 31, 2017, the Company received excess securities collateral with an estimated fair value of $74 million and $108 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At March 31, 2018 and December 31, 2017, the Company provided excess securities collateral with an estimated fair value of $301 million and $305 million, respectively, for its OTC-bilateral derivatives, and $507 million and $522 million, respectively, for its OTC-cleared derivatives, and $77 million and $89 million, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation.

(6) Effective January 16, 2018, the LCH amended its rulebook, resulting in the characterization of variation margin transfers as settlement payments, as opposed to adjustments to collateral. See Note 1 for further information on the LCH amendments.

Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral

The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:

	March 31, 2018						December 31, 2017
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement	Assets			Liabilities			Assets			Liabilities
	(In millions)
Gross estimated fair value of derivatives:
OTC-bilateral (1)	$	7,733		$	3,948		$	7,955		$	4,059
OTC-cleared (1), (6)	230			47			649			223
Exchange-traded	9			30			22			8
Total gross estimated fair value of derivatives (1)	7,972			4,025			8,626			4,290
Amounts offset on the interim condensed consolidated balance sheets	—			—			—			—
Estimated fair value of derivatives presented on the interim condensed consolidated balance sheets (1), (6)	7,972			4,025			8,626			4,290
Gross amounts not offset on the interim condensed consolidated balance sheets:
Gross estimated fair value of derivatives: (2)
OTC-bilateral	(2,376		)	(2,376		)	(2,528		)	(2,528		)
OTC-cleared	(21		)	(21		)	(35		)	(35		)
Exchange-traded	(1		)	(1		)	(1		)	(1		)
Cash collateral: (3), (4)
OTC-bilateral	(4,082		)	—			(4,169		)	—
OTC-cleared	(194		)	(9		)	(584		)	(179		)
Exchange-traded	—			(21		)	—			(5		)
Securities collateral: (5)
OTC-bilateral	(981		)	(1,519		)	(1,004		)	(1,474		)
OTC-cleared	—			(17		)	—			(9		)
Exchange-traded	—			(8		)	—			(2		)
Net amount after application of master netting agreements and collateral	$	317		$	53		$	305		$	57

__________________

(1) At March 31, 2018 and December 31, 2017, derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $48 million and $75 million, respectively, and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of ($50) million and ($49) million, respectively.

(2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals.

(3) Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet.

(4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At March 31, 2018 and December 31, 2017, the Company received excess cash collateral of $204 million and $253 million, respectively, and provided excess cash collateral of $263 million and $272 million, respectively, which is not included in the table above due to the foregoing limitation.

(5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at March 31, 2018, none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At March 31, 2018 and December 31, 2017, the Company received excess securities collateral with an estimated fair value of $74 million and $108 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At March 31, 2018 and December 31, 2017, the Company provided excess securities collateral with an estimated fair value of $301 million and $305 million, respectively, for its OTC-bilateral derivatives, and $507 million and $522 million, respectively, for its OTC-cleared derivatives, and $77 million and $89 million, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation.

(6) Effective January 16, 2018, the LCH amended its rulebook, resulting in the characterization of variation margin transfers as settlement payments, as opposed to adjustments to collateral. See Note 1 for further information on the LCH amendments.

Derivative Instruments, Gain (Loss) [Line Items]

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following table presents the effects of derivatives in cash flow hedging relationships on the interim condensed consolidated statements of operations and comprehensive income (loss) and the interim condensed consolidated statements of equity. The table excludes the effects of Brighthouse derivatives prior to the Separation.

Derivatives in Cash Flow Hedging Relationships	Amount of Gains (Losses) Deferred in AOCI on Derivatives			Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss)							Amount and Location of Gains (Losses) Recognized in Income (Loss) on Derivatives
	(Effective Portion)			(Effective Portion)							(Ineffective Portion)
				Net Derivative Gains (Losses)			Net Investment Income		Other Expenses		Net Derivative Gains (Losses)
	(In millions)
Three Months Ended March 31, 2018
Interest rate swaps	$	(173	)	$	16		$	3	$	—	$	(2	)
Interest rate forwards	(104		)	5			1		—		—
Foreign currency swaps	(75		)	139			—		1		1
Total	$	(352	)	$	160		$	4	$	1	$	(1	)
Three Months Ended March 31, 2017
Interest rate swaps	$	5		$	8		$	4	$	—	$	1
Interest rate forwards	44			(4		)	—		—		—
Foreign currency swaps	180			208			—		1		2
Total	$	229		$	212		$	4	$	1	$	3

Schedule of Derivative Instruments

The following table presents the estimated fair value of the Company’s OTC-bilateral derivatives that were in a net liability position after considering the effect of netting agreements, together with the estimated fair value and balance sheet location of the collateral pledged. The table also presents the incremental collateral that MetLife, Inc. would be required to provide if there was a one-notch downgrade in MetLife, Inc.’s senior unsecured debt rating at the reporting date or if the Company’s credit or financial strength rating, as applicable, at the reporting date sustained a downgrade to a level that triggered full overnight collateralization or termination of the derivative position. OTC-bilateral derivatives that are not subject to collateral agreements are excluded from this table.

	March 31, 2018						December 31, 2017
	Derivatives Subject to Credit- Contingent Provisions		Derivatives Not Subject to Credit- Contingent Provisions		Total		Derivatives Subject to Credit- Contingent Provisions		Derivatives Not Subject to Credit- Contingent Provisions		Total
	(In millions)
Estimated Fair Value of Derivatives in a Net Liability Position (1)	$	1,533	$	39	$	1,572	$	1,508	$	24	$	1,532
Estimated Fair Value of Collateral Provided:
Fixed maturity securities	$	1,734	$	50	$	1,784	$	1,675	$	26	$	1,701
Cash	$	—	$	—	$	—	$	—	$	—	$	—
Estimated Fair Value of Incremental Collateral Provided Upon:
One-notch downgrade in the Company’s credit or financial strength rating, as applicable	$	14	$	—	$	14	$	15	$	—	$	15
Downgrade in the Company’s credit or financial strength rating, as applicable, to a level that triggers full overnight collateralization or termination of the derivative position	$	15	$	—	$	15	$	20	$	—	$	20

__________________

(1) After taking into consideration the existence of netting agreements.

Embedded Derivative Financial Instruments [Member]

Derivative Instruments, Gain (Loss) [Line Items]

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following table presents changes in estimated fair value related to embedded derivatives:

	Three Months Ended March 31,
	2018		2017
	(In millions)
Net derivative gains (losses) (1)	$	37	$	157

__________________

(1) The valuation of guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $20 million and ($52) million for the three months endedMarch 31, 2018 and 2017, resp

Schedule of Derivative Instruments

The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at:

	Balance Sheet Location	March 31, 2018		December 31, 2017
		(In millions)
Embedded derivatives within asset host contracts:
Ceded guaranteed minimum benefits	Premiums, reinsurance and other receivables	$	157	$	144
Options embedded in debt or equity securities (1)	Investments	—		(132		)
Embedded derivatives within asset host contracts		$	157	$	12
Embedded derivatives within liability host contracts:
Direct guaranteed minimum benefits	Policyholder account balances	$	23	$	32
Assumed guaranteed minimum benefits	Policyholder account balances	392		291
Funds withheld on ceded reinsurance	Other liabilities	2		25
Fixed annuities with equity indexed returns	Policyholder account balances	68		70
Embedded derivatives within liability host contracts		$	485	$	418

XML

Fair Value (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Recurring Fair Value Measurements

The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below at:

	March 31, 2018
	Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	77,597	$	4,237	$	81,834
Foreign government	—		64,331		179		64,510
Foreign corporate	—		48,890		6,573		55,463
U.S. government and agency	22,873		20,954		—		43,827
RMBS	—		24,155		3,256		27,411
State and political subdivision	—		12,192		—		12,192
ABS	—		10,739		1,025		11,764
CMBS	—		7,409		301		7,710
Total fixed maturity securities	22,873		266,267		15,571		304,711
Equity securities	909		213		422		1,544
Unit-linked and FVO Securities (1)	13,705		2,453		286		16,444
Other limited partnership interests	—		—		194		194
Short-term investments (2)	2,845		990		615		4,450
Residential mortgage loans — FVO	—		—		438		438
Other investments	83		90		—		173
Derivative assets: (3)
Interest rate	2		4,728		14		4,744
Foreign currency exchange rate	—		2,120		157		2,277
Credit	—		180		35		215
Equity market	7		603		78		688
Total derivative assets	9		7,631		284		7,924
Embedded derivatives within asset host contracts (4)	—		—		157		157
Separate account assets (5)	88,618		106,511		1,229		196,358
Total assets	$	129,042	$	384,155	$	19,196	$	532,393
Liabilities
Derivative liabilities: (3)
Interest rate	$	3	$	348	$	243	$	594
Foreign currency exchange rate	8		2,585		29		2,622
Credit	—		43		—		43
Equity market	19		603		194		816
Total derivative liabilities	30		3,579		466		4,075
Embedded derivatives within liability host contracts (4)	—		—		485		485
Separate account liabilities (5)	—		12		5		17
Total liabilities	$	30	$	3,591	$	956	$	4,577

	December 31, 2017
	Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	78,171	$	4,490	$	82,661
Foreign government	—		61,325		209		61,534
Foreign corporate	—		48,840		6,729		55,569
U.S. government and agency	26,052		21,342		—		47,394
RMBS	—		25,339		3,461		28,800
State and political subdivision	—		12,455		—		12,455
ABS	—		11,204		1,087		12,291
CMBS	—		7,934		293		8,227
Total fixed maturity securities	26,052		266,610		16,269		308,931
Equity securities	1,104		981		428		2,513
Unit-linked and FVO Securities (1)	14,028		2,355		362		16,745
Short-term investments (2)	3,001		1,252		33		4,286
Residential mortgage loans — FVO	—		—		520		520
Other investments	81		84		—		165
Derivative assets: (3)
Interest rate	2		5,553		8		5,563
Foreign currency exchange rate	2		1,954		113		2,069
Credit	—		240		38		278
Equity market	18		548		75		641
Total derivative assets	22		8,295		234		8,551
Embedded derivatives within asset host contracts (4)	—		—		144		144
Separate account assets (5)	89,916		114,124		961		205,001
Total assets	$	134,204	$	393,701	$	18,951	$	546,856
Liabilities
Derivative liabilities: (3)
Interest rate	$	4	$	638	$	130	$	772
Foreign currency exchange rate	—		2,553		37		2,590
Credit	—		43		—		43
Equity market	4		731		199		934
Total derivative liabilities	8		3,965		366		4,339
Embedded derivatives within liability host contracts (4)	—		—		418		418
Separate account liabilities (5)	—		7		2		9
Total liabilities	$	8	$	3,972	$	786	$	4,766

__________________

(1) Unit-linked and FVO Securities were comprised of over 85% Unit-linked investments at both March 31, 2018 and December 31, 2017.

(2) Short-term investments as presented in the tables above differ from the amounts presented on the consolidated balance sheets because certain short-term investments are not measured at estimated fair value on a recurring basis.

(3) Derivative assets are presented within other invested assets on the interim condensed consolidated balance sheets and derivative liabilities are presented within other liabilities on the interim condensed consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the interim condensed consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables.

(4) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables and other invested assets on the interim condensed consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the interim condensed consolidated balance sheets. At March 31, 2018 and December 31, 2017, debt and equity securities also included embedded derivatives of $0 and ($132) million, respectively.

(5) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. Separate account liabilities presented in the tables above represent derivative liabilities.

Fair Value Inputs, Quantitative Information

The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at:

					March 31, 2018				December 31, 2017				Impact of Increase in Input on Estimated Fair Value (2)
	Valuation Techniques		Significant Unobservable Inputs		Range			Weighted Average (1)	Range			Weighted Average (1)
Fixed maturity securities (3)
U.S. corporate and foreign corporate	•	Matrix pricing	•	Offered quotes (4)	89	-	139	107	83	-	142	110	Increase
	•	Market pricing	•	Quoted prices (4)	25	-	846	124	10	-	443	121	Increase
	•	Consensus pricing	•	Offered quotes (4)	97	-	104	102	97	-	104	101	Increase
RMBS	•	Market pricing	•	Quoted prices (4)	—	-	109	94	—	-	126	94	Increase (5)
ABS	•	Market pricing	•	Quoted prices (4)	3	-	117	100	5	-	117	100	Increase (5)
	•	Consensus pricing	•	Offered quotes (4)	99	-	102	100	100	-	103	100	Increase (5)
Derivatives
Interest rate	•	Present value techniques	•	Swap yield (6)	277	-	313		200	-	300		Increase (7)
			•	Repurchase rates (8)	(4)	-	6		(5)	-	5		Decrease (7)
Foreign currency exchange rate	•	Present value techniques	•	Swap yield (6)	(19)	-	328		(14)	-	309		Increase (7)
Credit	•	Present value techniques	•	Credit spreads (9)	97	-	100		—	-	—		Decrease (7)
	•	Consensus pricing	•	Offered quotes (10)
Equity market	•	Present value techniques or option pricing models	•	Volatility (11)	20%	-	31%		11%	-	31%		Increase (7)
			•	Correlation (12)	10%	-	30%		10%	-	30%
Embedded derivatives
Direct, assumed and ceded guaranteed minimum benefits	•	Option pricing techniques	•	Mortality rates:
				Ages 0 - 40	0%	-	0.21%		0%	-	0.21%		Decrease (13)
				Ages 41 - 60	0.03%	-	0.75%		0.03%	-	0.75%		Decrease (13)
				Ages 61 - 115	0.15%	-	100%		0.15%	-	100%		Decrease (13)
			•	Lapse rates:
				Durations 1 - 10	0.25%	-	100%		0.25%	-	100%		Decrease (14)
				Durations 11 - 20	2%	-	100%		2%	-	100%		Decrease (14)
				Durations 21 - 116	1.25%	-	100%		1.25%	-	100%		Decrease (14)
			•	Utilization rates	0%	-	25%		0%	-	25%		Increase (15)
			•	Withdrawal rates	0%	-	20%		0%	-	20%		(16)
			•	Long-term equity volatilities	9.04%	-	33%		8.25%	-	33%		Increase (17)
			•	Nonperformance risk spread	0.03%	-	1.75%		0.02%	-	1.32%		Decrease (18)

__________________

(1) The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities.

(2) The impact of a decrease in input would have the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions.

(3) Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations.

(4) Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par.

(5) Changes in the assumptions used for the probability of default are accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates.

(6) Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curves are utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.

(7) Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions.

(8) Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points.

(9) Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps.

(10) At both March 31, 2018 and December 31, 2017, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value.

(11) Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.

(12) Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations.

(13) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(14) Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(15) The utilization rate assumption estimates the percentage of contractholders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(16) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value.

(17) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(18) Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative.

Fair Value Inputs, Quantitative Information

The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at:

					March 31, 2018				December 31, 2017				Impact of Increase in Input on Estimated Fair Value (2)
	Valuation Techniques		Significant Unobservable Inputs		Range			Weighted Average (1)	Range			Weighted Average (1)
Fixed maturity securities (3)
U.S. corporate and foreign corporate	•	Matrix pricing	•	Offered quotes (4)	89	-	139	107	83	-	142	110	Increase
	•	Market pricing	•	Quoted prices (4)	25	-	846	124	10	-	443	121	Increase
	•	Consensus pricing	•	Offered quotes (4)	97	-	104	102	97	-	104	101	Increase
RMBS	•	Market pricing	•	Quoted prices (4)	—	-	109	94	—	-	126	94	Increase (5)
ABS	•	Market pricing	•	Quoted prices (4)	3	-	117	100	5	-	117	100	Increase (5)
	•	Consensus pricing	•	Offered quotes (4)	99	-	102	100	100	-	103	100	Increase (5)
Derivatives
Interest rate	•	Present value techniques	•	Swap yield (6)	277	-	313		200	-	300		Increase (7)
			•	Repurchase rates (8)	(4)	-	6		(5)	-	5		Decrease (7)
Foreign currency exchange rate	•	Present value techniques	•	Swap yield (6)	(19)	-	328		(14)	-	309		Increase (7)
Credit	•	Present value techniques	•	Credit spreads (9)	97	-	100		—	-	—		Decrease (7)
	•	Consensus pricing	•	Offered quotes (10)
Equity market	•	Present value techniques or option pricing models	•	Volatility (11)	20%	-	31%		11%	-	31%		Increase (7)
			•	Correlation (12)	10%	-	30%		10%	-	30%
Embedded derivatives
Direct, assumed and ceded guaranteed minimum benefits	•	Option pricing techniques	•	Mortality rates:
				Ages 0 - 40	0%	-	0.21%		0%	-	0.21%		Decrease (13)
				Ages 41 - 60	0.03%	-	0.75%		0.03%	-	0.75%		Decrease (13)
				Ages 61 - 115	0.15%	-	100%		0.15%	-	100%		Decrease (13)
			•	Lapse rates:
				Durations 1 - 10	0.25%	-	100%		0.25%	-	100%		Decrease (14)
				Durations 11 - 20	2%	-	100%		2%	-	100%		Decrease (14)
				Durations 21 - 116	1.25%	-	100%		1.25%	-	100%		Decrease (14)
			•	Utilization rates	0%	-	25%		0%	-	25%		Increase (15)
			•	Withdrawal rates	0%	-	20%		0%	-	20%		(16)
			•	Long-term equity volatilities	9.04%	-	33%		8.25%	-	33%		Increase (17)
			•	Nonperformance risk spread	0.03%	-	1.75%		0.02%	-	1.32%		Decrease (18)

__________________

(1) The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities.

(2) The impact of a decrease in input would have the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions.

(3) Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations.

(4) Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par.

(5) Changes in the assumptions used for the probability of default are accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates.

(6) Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curves are utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.

(7) Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions.

(8) Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points.

(9) Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps.

(10) At both March 31, 2018 and December 31, 2017, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value.

(11) Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.

(12) Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations.

(13) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(14) Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(15) The utilization rate assumption estimates the percentage of contractholders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(16) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value.

(17) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(18) Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative.

Fair Value, Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables summarize the change of all assets (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3):

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	Corporate (1)			Foreign Government			Structured Securities			State and Political Subdivision			Equity Securities			Unit-linked and FVO Securities
	(In millions)
Three Months Ended March 31, 2018
Balance, beginning of period	$	11,219		$	209		$	4,841		$	—		$	428		$	362
Total realized/unrealized gains (losses) included in net income (loss) (2), (3)	7			1			23			—			(6		)	5
Total realized/unrealized gains (losses) included in AOCI	(68		)	(3		)	24			—			—			—
Purchases (4)	512			2			657			—			1			27
Sales (4)	(542		)	(2		)	(324		)	—			(1		)	(59		)
Issuances (4)	—			—			—			—			—			—
Settlements (4)	—			—			—			—			—			—
Transfers into Level 3 (5)	46			—			45			—			—			—
Transfers out of Level 3 (5)	(364		)	(28		)	(684		)	—			—			(49		)
Balance, end of period	$	10,810		$	179		$	4,582		$	—		$	422		$	286
Three Months Ended March 31, 2017
Balance, beginning of period	$	11,537		$	289		$	5,215		$	10		$	468		$	287
Total realized/unrealized gains (losses) included in net income (loss) (2), (3)	4			3			32			—			(10		)	7
Total realized/unrealized gains (losses) included in AOCI	231			6			48			—			22			—
Purchases (4)	941			12			1,020			—			1			69
Sales (4)	(418		)	(17		)	(400		)	—			(1		)	(17		)
Issuances (4)	—			—			—			—			—			—
Settlements (4)	—			—			—			—			—			—
Transfers into Level 3 (5)	79			4			23			—			—			2
Transfers out of Level 3 (5)	(1,406		)	(8		)	(233		)	(10		)	—			(13		)
Balance, end of period	$	10,968		$	289		$	5,705		$	—		$	480		$	335
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2018 (6)	$	1		$	1		$	21		$	—		$	—		$	4
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2017 (6)	$	4		$	2		$	24		$	—		$	(10	)	$	7

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Other Limited Partnership Interests			Short-term Investments			Residential Mortgage Loans — FVO			Net Derivatives (7)			Net Embedded Derivatives (8)			Separate Accounts (9)
	(In millions)
Three Months Ended March 31, 2018
Balance, beginning of period	$	—		$	33		$	520		$	(132	)	$	(274	)	$	959
Total realized/unrealized gains (losses) included in net income (loss) (2), (3)	(5		)	—			2			11			36			2
Total realized/unrealized gains (losses) included in AOCI	2			—			—			(104		)	(16		)	—
Purchases (4)	—			605			—			—			—			409
Sales (4)	(19		)	(3		)	(64		)	—			—			(124		)
Issuances (4)	—			—			—			—			—			1
Settlements (4)	—			—			(20		)	43			(74		)	(1		)
Transfers into Level 3 (5)	216			—			—			—			—			53
Transfers out of Level 3 (5)	—			(20		)	—			—			—			(75		)
Balance, end of period	$	194		$	615		$	438		$	(182	)	$	(328	)	$	1,224
Three Months Ended March 31, 2017
Balance, beginning of period	$	—		$	46		$	566		$	(562	)	$	(729	)	$	1,141
Total realized/unrealized gains (losses) included in net income (loss) (2), (3)	—			—			(3		)	33			169			(24		)
Total realized/unrealized gains (losses) included in AOCI	—			—			—			44			(59		)	—
Purchases (4)	—			776			135			—			—			136
Sales (4)	—			(3		)	(33		)	—			—			(42		)
Issuances (4)	—			—			—			(7		)	—			39
Settlements (4)	—			—			(26		)	95			(76		)	(33		)
Transfers into Level 3 (5)	—			—			—			—			—			69
Transfers out of Level 3 (5)	—			(40		)	—			—			—			(102		)
Balance, end of period	$	—		$	779		$	639		$	(397	)	$	(695	)	$	1,184
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2018 (6)	$	(5	)	$	—		$	(8	)	$	48		$	31		$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2017 (6)	$	—		$	—		$	(3	)	$	26		$	167		$	—

__________________

(1) Comprised of U.S. and foreign corporate securities.

(2) Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses), while changes in estimated fair value of residential mortgage loans — FVO are included in net investment income. Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

(3) Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.

(4) Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements.

(5) Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward.

(6) Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

(7) Freestanding derivative assets and liabilities are presented net for purposes of the rollforward.

(8) Embedded derivative assets and liabilities are presented net for purposes of the rollforward.

(9) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes are presented within net investment gains (losses). Separate account assets and liabilities are presented net for the purposes of the rollforward.

Fair Value Option

Fair Value Option

The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis. The following table presents information for residential mortgage loans, which are accounted for under the FVO and were initially measured at fair value.

	March 31, 2018			December 31, 2017
	(In millions)
Unpaid principal balance	$	544		$	650
Difference between estimated fair value and unpaid principal balance	(106		)	(130		)
Carrying value at estimated fair value	$	438		$	520
Loans in nonaccrual status	$	159		$	198
Loans more than 90 days past due	$	78		$	94
Loans in nonaccrual status or more than 90 days past due, or both — difference between aggregate estimated fair value and unpaid principal balance	$	(82	)	$	(102	)

Fair Value of Financial Instruments Carried at Other Than Fair Value

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:

	March 31, 2018
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	70,617	$	—	$	—	$	71,845	$	71,845
Policy loans	$	9,744	$	—	$	341	$	11,082	$	11,423
Other invested assets	$	1,264	$	—	$	812	$	452	$	1,264
Premiums, reinsurance and other receivables	$	4,358	$	—	$	1,450	$	3,025	$	4,475
Other assets	$	345	$	—	$	175	$	199	$	374
Liabilities
Policyholder account balances	$	114,715	$	—	$	—	$	116,193	$	116,193
Long-term debt	$	15,696	$	—	$	16,973	$	—	$	16,973
Collateral financing arrangement	$	1,108	$	—	$	—	$	898	$	898
Junior subordinated debt securities	$	3,145	$	—	$	4,073	$	—	$	4,073
Other liabilities	$	3,810	$	—	$	2,113	$	2,252	$	4,365
Separate account liabilities	$	118,151	$	—	$	118,151	$	—	$	118,151

	December 31, 2017
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	68,211	$	—	$	—	$	69,797	$	69,797
Policy loans	$	9,669	$	—	$	336	$	11,176	$	11,512
Other limited partnership interests	$	219	$	—	$	—	$	216	$	216
Other invested assets	$	443	$	—	$	—	$	443	$	443
Premiums, reinsurance and other receivables	$	4,155	$	—	$	1,283	$	3,056	$	4,339
Other assets	$	285	$	—	$	189	$	139	$	328
Liabilities
Policyholder account balances	$	114,355	$	—	$	—	$	116,534	$	116,534
Long-term debt	$	15,675	$	—	$	17,773	$	—	$	17,773
Collateral financing arrangement	$	1,121	$	—	$	—	$	894	$	894
Junior subordinated debt securities	$	3,144	$	—	$	4,319	$	—	$	4,319
Other liabilities	$	3,208	$	—	$	1,496	$	2,345	$	3,841
Separate account liabilities	$	124,011	$	—	$	124,011	$	—	$	124,011

XML

Equity (Tables)

3 Months Ended

Mar. 31, 2018

Equity [Abstract]

Schedule of Stock by Class

Preferred stock authorized, issued and outstanding was as follows:

	March 31, 2018			December 31, 2017
Series	Shares Authorized	Shares Issued	Shares Outstanding	Shares Authorized	Shares Issued	Shares Outstanding
Floating Rate Non-Cumulative Preferred Stock, Series A	27,600,000	24,000,000	24,000,000	27,600,000	24,000,000	24,000,000
5.25% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C	1,500,000	1,500,000	1,500,000	1,500,000	1,500,000	1,500,000
5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D	500,000	500,000	500,000	—	—	—
Series A Junior Participating Preferred Stock	10,000,000	—	—	10,000,000	—	—
Not designated	160,400,000	—	—	160,900,000	—	—
Total	200,000,000	26,000,000	26,000,000	200,000,000	25,500,000	25,500,000

Components of Accumulated Other Comprehensive Income (Loss)

Information regarding changes in the balances of each component of AOCI attributable to MetLife, Inc., was as follows:

	Three Months Ended March 31, 2018
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)			Unrealized Gains (Losses) on Derivatives			Foreign Currency Translation Adjustments			Defined Benefit Plans Adjustment			Total
	(In millions)
Balance, beginning of period	$	12,757		$	905		$	(4,390	)	$	(1,845	)	$	7,427
OCI before reclassifications	(3,811		)	(352		)	552			(4		)	(3,615		)
Deferred income tax benefit (expense)	835			58			3			1			897
AOCI before reclassifications, net of income tax	9,781			611			(3,835		)	(1,848		)	4,709
Amounts reclassified from AOCI	45			(165		)	—			31			(89		)
Deferred income tax benefit (expense)	(10		)	27			—			(7		)	10
Amounts reclassified from AOCI, net of income tax	35			(138		)	—			24			(79		)
Cumulative effects of changes in accounting principles	(425		)	—			—			—			(425		)
Deferred income tax benefit (expense), cumulative effects of changes in accounting principles	1,473			210			36			(382		)	1,337
Cumulative effects of changes in accounting principles, net of income tax (2)	1,048			210			36			(382		)	912
Sale of subsidiary (3)	—			—			92			—			92
Balance, end of period	$	10,864		$	683		$	(3,707	)	$	(2,206	)	$	5,634
	Three Months Ended March 31, 2017
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)			Unrealized Gains (Losses) on Derivatives			Foreign Currency Translation Adjustments			Defined Benefit Plans Adjustment			Total
	(In millions)
Balance, beginning of period	$	10,785		$	1,865		$	(5,312	)	$	(1,972	)	$	5,366
OCI before reclassifications	703			210			348			(20		)	1,241
Deferred income tax benefit (expense)	(273		)	(73		)	122			2			(222		)
AOCI before reclassifications, net of income tax	11,215			2,002			(4,842		)	(1,990		)	6,385
Amounts reclassified from AOCI	196			(229		)	—			44			11
Deferred income tax benefit (expense)	(75		)	80			—			(5		)	—
Amounts reclassified from AOCI, net of income tax	121			(149		)	—			39			11
Balance, end of period	$	11,336		$	1,853		$	(4,842	)	$	(1,951	)	$	6,396

__________________

(1) See Note 6 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation.

(2) See Note 1 for further information on adoption of new accounting pronouncements.

(3) See Note 3 for further information on the 2018 disposition.

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Information regarding amounts reclassified out of each component of AOCI was as follows:

AOCI Components	Amounts Reclassified from AOCI						Consolidated Statements of Operations and Comprehensive Income (Loss) Locations
	Three Months Ended March 31,
	2018			2017
	(In millions)
Net unrealized investment gains (losses):
Net unrealized investment gains (losses)	$	(101	)	$	40		Net investment gains (losses)
Net unrealized investment gains (losses)	3			6			Net investment income
Net unrealized investment gains (losses)	53			(151		)	Net derivative gains (losses)
Net unrealized investment gains (losses)	—			(91		)	Discontinued operations
Net unrealized investment gains (losses), before income tax	(45		)	(196		)
Income tax (expense) benefit	10			75
Net unrealized investment gains (losses), net of income tax	(35		)	(121		)
Unrealized gains (losses) on derivatives - cash flow hedges:
Interest rate swaps	16			8			Net derivative gains (losses)
Interest rate swaps	3			4			Net investment income
Interest rate swaps	—			1			Discontinued operations
Interest rate forwards	5			(4		)	Net derivative gains (losses)
Interest rate forwards	1			—			Net investment income
Interest rate forwards	—			1			Discontinued operations
Foreign currency swaps	139			208			Net derivative gains (losses)
Foreign currency swaps	1			1			Other expenses
Foreign currency swaps	—			10			Discontinued operations
Gains (losses) on cash flow hedges, before income tax	165			229
Income tax (expense) benefit	(27		)	(80		)
Gains (losses) on cash flow hedges, net of income tax	138			149
Defined benefit plans adjustment: (1)
Amortization of net actuarial gains (losses)	(36		)	(49		)
Amortization of prior service (costs) credit	5			5
Amortization of defined benefit plan items, before income tax	(31		)	(44		)
Income tax (expense) benefit	7			5
Amortization of defined benefit plan items, net of income tax	(24		)	(39		)
Total reclassifications, net of income tax	$	79		$	(11	)

__________________

(1) These AOCI components are included in the computation of net periodic benefit costs. See Note 11.

XML

Other Expenses (Tables)

3 Months Ended

Mar. 31, 2018

Other Income and Expenses [Abstract]

Other Expenses

Information on other expenses was as follows:

	Three Months Ended March 31,
	2018			2017
	(In millions)
Employee related costs	$	937		$	937
Third party staffing costs	380			362
General and administrative expenses	243			221
Pension, postretirement and postemployment benefit costs	49			79
Premium taxes, other taxes, and licenses & fees	179			175
Commissions and other variable expenses	1,416			1,304
Capitalization of DAC	(796		)	(713		)
Amortization of DAC and VOBA	693			663
Amortization of negative VOBA	(22		)	(43		)
Interest expense on debt	286			283
Total other expenses	$	3,365		$	3,268

Certain prior year amounts have been reclassified to conform to the current year presentation, which has been revised to align the expense categories with the Company’s businesses. The reclassifications did not result in a change to total other expenses.

See Note 3 for further information on Separation-related transaction costs.

Restructuring charges

The Company commenced in 2016 a unit cost improvement program related to the Company’s refreshed enterprise strategy. This global strategy focuses on transforming the Company to become more digital, driving efficiencies and innovation to achieve competitive advantage, and simplified, decreasing the costs and risks associated with the Company’s highly complex industry to customers and shareholders. Restructuring charges related to this program are included in other expenses. As the expenses relate to an enterprise-wide initiative, they are reported in Corporate & Other. Such restructuring charges were as follows:

	Three Months Ended March 31,
	2018			2017
	Severance
	(In millions)
Balance, beginning of period	$	22		$	35
Restructuring charges	9			11
Cash payments	(12		)	(8		)
Balance, end of period	$	19		$	38
Total restructuring charges incurred since inception of initiative	$	82		$	46

XML

Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2018

Retirement Benefits [Abstract]

Net periodic benefit costs

The components of net periodic benefit costs, reported in other expenses, were as follows:

	Three Months Ended March 31,
	2018						2017
	Pension Benefits			Other Postretirement Benefits			Pension Benefits			Other Postretirement Benefits
	(In millions)
Service costs	$	60		$	1		$	61		$	1
Interest costs	96			11			106			19
Expected return on plan assets	(133		)	(18		)	(130		)	(18		)
Amortization of net actuarial (gains) losses	44			(8		)	49			—
Amortization of prior service costs (credit)	—			(5		)	—			(5		)
Net periodic benefit costs (credit)	$	67		$	(19	)	$	86		$	(3	)

XML

Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Earnings Per Common Share

The following table presents the weighted average shares, basic earnings per common share and diluted earnings per common share for each income category presented:

	Three Months Ended March 31,
	2018		2017
	(In millions, except per share data)
Weighted Average Shares:
Weighted average common stock outstanding for basic earnings per common share	1,035.9		1,090.4
Incremental common shares from assumed exercise or issuance of stock-based awards	8.5		8.3
Weighted average common stock outstanding for diluted earnings per common share	1,044.4		1,098.7
Income (Loss) from Continuing Operations:
Income (loss) from continuing operations, net of income tax	$	1,257	$	952
Less: Income (loss) from continuing operations, net of income tax, attributable to noncontrolling interests	4		3
Less: Preferred stock dividends	6		6
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders	$	1,247	$	943
Basic	$	1.20	$	0.87
Diluted	$	1.19	$	0.86
Income (Loss) from Discontinued Operations:
Income (loss) from discontinued operations, net of income tax	$	—	$	(76	)
Less: Income (loss) from discontinued operations, net of income tax, attributable to noncontrolling interests	—		—
Income (loss) from discontinued operations, net of income tax, available to MetLife, Inc.’s common shareholders	$	—	$	(76	)
Basic	$	—	$	(0.07	)
Diluted	$	—	$	(0.07	)
Net Income (Loss):
Net income (loss)	$	1,257	$	876
Less: Net income (loss) attributable to noncontrolling interests	4		3
Less: Preferred stock dividends	6		6
Net income (loss) available to MetLife, Inc.’s common shareholders	$	1,247	$	867
Basic	$	1.20	$	0.80
Diluted	$	1.19	$	0.79

XML

Business, Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details)	3 Months Ended
	Mar. 31, 2018 Segment	Aug. 04, 2017 shares
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of segments | Segment	5
Brighthouse Financial, Inc | Impact of Separation [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Common Stock, Shares, Issued | shares		96,776,670

XML

Business, Basis of Presentation and Summary of Significant Accounting Policies - Restatement Adjustments (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Assumed variable annuity guarantee reserves			$ 896
Reserves for Group Annuity products			510
Income Statement Related Disclosures [Abstract]
Other net investment gains (losses)		$ 88
Net investment gains (losses)	$ (333)	88
Net derivative gains (losses)	349	(212)
Revenues	14,805	14,964
Policyholder benefits and claims	8,718	8,863
Other expenses	3,365	3,268
Total expenses	13,149	13,892
Income (loss) from continuing operations before provision for income tax	1,656	1,072
Provision for income tax expense (benefit)	399	120
Income (loss) from continuing operations, net of income tax	1,257	952
Income (loss) from discontinued operations, net of income tax	0	(76)
Net income (loss)	1,257	876
Net income (loss) attributable to MetLife, Inc.	1,253	873
Net Income (Loss) Available to Common Stockholders, Basic	1,247	867
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	(1,448)	1,907
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ (1,452)	$ 1,903
Income (loss) from continuing operations, net of tax - Basic	$ 1.20	$ 0.87
Income (loss) from continuing operations, net of tax - Diluted	1.19	0.86
Income (loss) per common share - Basic	1.20	0.80
Income (loss) per common share - Diluted	$ 1.19	$ 0.79
Statement of Stockholders' Equity [Abstract]
Retained Earnings (Accumulated Deficit)	$ 26,453	$ 35,113	26,527	$ 34,683
Net income (loss)	1,253	873
Accumulated Other Comprehensive Income (Loss), Net of Tax	5,634	6,396	7,427	5,366
Other Comprehensive Income (Loss), Net of Tax	(2,705)	1,031
Stockholders' Equity Attributable to Parent	56,310	68,179	58,676	67,531
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	56,508	68,358	58,870	67,702
Discontinued Operations
Income Statement Related Disclosures [Abstract]
Net investment gains (losses)		5
Provision for income tax expense (benefit)		2
Scenario, Previously Reported
Income Statement Related Disclosures [Abstract]
Other net investment gains (losses)		8
Net investment gains (losses)		8
Net derivative gains (losses)		(926)
Revenues		16,269
Policyholder benefits and claims		9,859
Other expenses		3,564
Total expenses		15,452
Income (loss) from continuing operations before provision for income tax		817
Provision for income tax expense (benefit)		(12)
Income (loss) from continuing operations, net of income tax		829
Income (loss) from discontinued operations, net of income tax		0
Net income (loss)		829
Net income (loss) attributable to MetLife, Inc.		826
Net Income (Loss) Available to Common Stockholders, Basic		820
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest		1,879
Comprehensive Income (Loss), Net of Tax, Attributable to Parent		$ 1,875
Income (loss) from continuing operations, net of tax - Basic		$ 0.75
Income (loss) from continuing operations, net of tax - Diluted		0.75
Income (loss) per common share - Basic		0.75
Income (loss) per common share - Diluted		$ 0.75
Statement of Stockholders' Equity [Abstract]
Retained Earnings (Accumulated Deficit)		$ 34,863		34,480
Net income (loss)		826
Stockholders' Equity Attributable to Parent		67,929		67,309
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		68,108		67,480
Restatement Adjustment
Income Statement Related Disclosures [Abstract]
Other net investment gains (losses)		25
Net investment gains (losses)		25
Net derivative gains (losses)		14
Revenues		39
Policyholder benefits and claims		6
Other expenses		(35)
Total expenses		(29)
Income (loss) from continuing operations before provision for income tax		68
Provision for income tax expense (benefit)		24
Income (loss) from continuing operations, net of income tax		44
Income (loss) from discontinued operations, net of income tax		3
Net income (loss)		47
Net income (loss) attributable to MetLife, Inc.		47
Net Income (Loss) Available to Common Stockholders, Basic		47
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest		28
Comprehensive Income (Loss), Net of Tax, Attributable to Parent		$ 28
Income (loss) from continuing operations, net of tax - Basic		$ 0.05
Income (loss) from continuing operations, net of tax - Diluted		0.04
Income (loss) per common share - Basic		0.05
Income (loss) per common share - Diluted		$ 0.04
Statement of Stockholders' Equity [Abstract]
Retained Earnings (Accumulated Deficit)		$ 250		203
Net income (loss)		47
Stockholders' Equity Attributable to Parent		250		222
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		250		222
Restatement Adjustment | Discontinued Operations
Income Statement Related Disclosures [Abstract]
Other net investment gains (losses)		55
Net investment gains (losses)		55
Net derivative gains (losses)		700
Revenues		(1,344)
Policyholder benefits and claims		(1,002)
Other expenses		(261)
Total expenses		(1,531)
Income (loss) from continuing operations before provision for income tax		187
Provision for income tax expense (benefit)		108
Income (loss) from continuing operations, net of income tax		79
Income (loss) from discontinued operations, net of income tax		(79)
Net income (loss)		0
Net income (loss) attributable to MetLife, Inc.		0
Net Income (Loss) Available to Common Stockholders, Basic		0
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest		0
Comprehensive Income (Loss), Net of Tax, Attributable to Parent		$ 0
Income (loss) from continuing operations, net of tax - Basic		$ 0.07
Income (loss) from continuing operations, net of tax - Diluted		0.07
Income (loss) per common share - Basic		0.00
Income (loss) per common share - Diluted		$ 0.00
Statement of Stockholders' Equity [Abstract]
Net income (loss)		$ 0
AOCI Attributable to Parent
Statement of Stockholders' Equity [Abstract]
Accumulated Other Comprehensive Income (Loss), Net of Tax		6,396		5,366
Other Comprehensive Income (Loss), Net of Tax	(2,705)	1,030
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 5,634	6,396	$ 7,427	5,366
AOCI Attributable to Parent | Scenario, Previously Reported
Statement of Stockholders' Equity [Abstract]
Accumulated Other Comprehensive Income (Loss), Net of Tax		6,396		5,347
Other Comprehensive Income (Loss), Net of Tax		1,049
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest				5,347
AOCI Attributable to Parent | Restatement Adjustment
Statement of Stockholders' Equity [Abstract]
Accumulated Other Comprehensive Income (Loss), Net of Tax		0		19
Other Comprehensive Income (Loss), Net of Tax		(19)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest				$ 19
Restatement impact in Net Income (loss)
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Assumed variable annuity guarantee reserves		14
Reserves for Group Annuity products		(9)
Other revisions to continuing operations, net		63
Income Statement Related Disclosures [Abstract]
Income (loss) from continuing operations before provision for income tax		68
Provision for income tax expense (benefit)		24
Income (loss) from continuing operations, net of income tax		44
Income (loss) from discontinued operations, net of income tax		3
Net Income (Loss) Available to Common Stockholders, Basic		$ 47

XML

Business, Basis of Presentation and Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained Earnings (Accumulated Deficit)	$ 26,453	$ 35,113		$ 26,527	$ 34,683
Accumulated Other Comprehensive Income (Loss), Net of Tax	5,634	6,396		7,427	$ 5,366
Equity securities	1,544			2,513
Fair Value Option And Trading Securities	16,444			16,745
Other revenues	474	$ 342
Derivative assets	7,924			8,551
Derivative liabilities	4,075			4,339
Accrued Investment Income Receivable	3,638			3,524
Premiums and Other Receivables, Net	19,368			18,423
Payables For Collateral Under Securities Loaned And Other Transactions	26,151			25,723
Other Liabilities	24,013			$ 23,982
Adjustments for New Accounting Pronouncement
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained Earnings (Accumulated Deficit)			$ (1,200)
Accumulated Other Comprehensive Income (Loss), Net of Tax			1,200
Accounting Standards Update 2016-01
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained Earnings (Accumulated Deficit)			328
Equity securities			1,700
Fair Value Option And Trading Securities			$ 16,000
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other revenues	322
LCH update impact
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Derivative assets	(369)
Derivative liabilities	(203)
Accrued Investment Income Receivable	(14)
Premiums and Other Receivables, Net	(184)
Payables For Collateral Under Securities Loaned And Other Transactions	(365)
Other Liabilities	1
U.S. | Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid legal plans and administrative-only contracts	129
MetLife Holdings | Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Distribution and Servicing Fees	58
Corporate & Other | Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Fee-based investment management service revenue	$ 71

XML

Segment Information (Earnings) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues
Premiums	$ 9,178	$ 8,965
Universal life and investment-type product policy fees	1,392	1,360
Net investment income	3,745	4,421
Other revenues	474	342
Net investment gains (losses)	(333)	88
Net derivative gains (losses)	349	(212)
Total revenues	14,805	14,964
Expenses
Policyholder benefits and claims and policyholder dividends	9,015	9,173
Interest credited to policyholder account balances	769	1,451
Capitalization of DAC	(796)	(713)
Amortization of DAC and VOBA	693	663
Amortization of negative VOBA	(22)	(43)
Interest expense on debt	286	283
Other expenses	3,204	3,078
Total expenses	13,149	13,892
Provision for income tax expense (benefit)	399	120
Income (loss) from continuing operations, net of income tax	1,257	952
Operating Segments
Revenues
Premiums	9,178	9,139
Universal life and investment-type product policy fees	1,360	1,348
Net investment income	4,219	4,172
Other revenues	391	395
Net investment gains (losses)	0	0
Net derivative gains (losses)	0	0
Total revenues	15,148	15,054
Expenses
Policyholder benefits and claims and policyholder dividends	8,968	9,219
Interest credited to policyholder account balances	1,117	1,036
Capitalization of DAC	(795)	(729)
Amortization of DAC and VOBA	697	645
Amortization of negative VOBA	(21)	(40)
Interest expense on debt	286	295
Other expenses	3,110	2,941
Total expenses	13,362	13,367
Provision for income tax expense (benefit)	357	360
Adjusted earnings	1,429	1,327
Operating Segments | U.S.
Revenues
Premiums	5,217	5,185
Universal life and investment-type product policy fees	258	265
Net investment income	1,662	1,612
Other revenues	204	204
Net investment gains (losses)	0	0
Net derivative gains (losses)	0	0
Total revenues	7,341	7,266
Expenses
Policyholder benefits and claims and policyholder dividends	5,138	5,244
Interest credited to policyholder account balances	407	351
Capitalization of DAC	(106)	(100)
Amortization of DAC and VOBA	115	114
Amortization of negative VOBA	0	0
Interest expense on debt	2	2
Other expenses	961	909
Total expenses	6,517	6,520
Provision for income tax expense (benefit)	171	249
Adjusted earnings	653	497
Operating Segments | Asia
Revenues
Premiums	1,748	1,708
Universal life and investment-type product policy fees	394	366
Net investment income	795	702
Other revenues	15	10
Net investment gains (losses)	0	0
Net derivative gains (losses)	0	0
Total revenues	2,952	2,786
Expenses
Policyholder benefits and claims and policyholder dividends	1,343	1,315
Interest credited to policyholder account balances	351	321
Capitalization of DAC	(465)	(420)
Amortization of DAC and VOBA	314	291
Amortization of negative VOBA	(15)	(37)
Interest expense on debt	0	0
Other expenses	952	875
Total expenses	2,480	2,345
Provision for income tax expense (benefit)	145	146
Adjusted earnings	327	295
Operating Segments | Latin America
Revenues
Premiums	699	647
Universal life and investment-type product policy fees	282	260
Net investment income	276	303
Other revenues	8	9
Net investment gains (losses)	0	0
Net derivative gains (losses)	0	0
Total revenues	1,265	1,219
Expenses
Policyholder benefits and claims and policyholder dividends	646	633
Interest credited to policyholder account balances	98	82
Capitalization of DAC	(94)	(82)
Amortization of DAC and VOBA	60	78
Amortization of negative VOBA	0	0
Interest expense on debt	2	1
Other expenses	338	326
Total expenses	1,050	1,038
Provision for income tax expense (benefit)	75	38
Adjusted earnings	140	143
Operating Segments | EMEA
Revenues
Premiums	551	502
Universal life and investment-type product policy fees	112	95
Net investment income	75	74
Other revenues	16	17
Net investment gains (losses)	0	0
Net derivative gains (losses)	0	0
Total revenues	754	688
Expenses
Policyholder benefits and claims and policyholder dividends	294	269
Interest credited to policyholder account balances	25	24
Capitalization of DAC	(118)	(92)
Amortization of DAC and VOBA	106	87
Amortization of negative VOBA	(6)	(3)
Interest expense on debt	0	0
Other expenses	351	316
Total expenses	652	601
Provision for income tax expense (benefit)	21	12
Adjusted earnings	81	75
Operating Segments | MetLife Holdings
Revenues
Premiums	950	1,059
Universal life and investment-type product policy fees	314	362
Net investment income	1,352	1,441
Other revenues	67	96
Net investment gains (losses)	0	0
Net derivative gains (losses)	0	0
Total revenues	2,683	2,958
Expenses
Policyholder benefits and claims and policyholder dividends	1,550	1,733
Interest credited to policyholder account balances	236	257
Capitalization of DAC	(10)	(34)
Amortization of DAC and VOBA	100	74
Amortization of negative VOBA	0	0
Interest expense on debt	2	15
Other expenses	276	340
Total expenses	2,154	2,385
Provision for income tax expense (benefit)	104	186
Adjusted earnings	425	387
Operating Segments | Corporate & Other
Revenues
Premiums	13	38
Universal life and investment-type product policy fees	0	0
Net investment income	59	40
Other revenues	81	59
Net investment gains (losses)	0	0
Net derivative gains (losses)	0	0
Total revenues	153	137
Expenses
Policyholder benefits and claims and policyholder dividends	(3)	25
Interest credited to policyholder account balances	0	1
Capitalization of DAC	(2)	(1)
Amortization of DAC and VOBA	2	1
Amortization of negative VOBA	0	0
Interest expense on debt	280	277
Other expenses	232	175
Total expenses	509	478
Provision for income tax expense (benefit)	(159)	(271)
Adjusted earnings	(197)	(70)
Significant Reconciling Items
Revenues
Premiums	0	(174)
Universal life and investment-type product policy fees	32	12
Net investment income	(474)	249
Other revenues	83	(53)
Net investment gains (losses)	(333)	88
Net derivative gains (losses)	349	(212)
Total revenues	(343)	(90)
Expenses
Policyholder benefits and claims and policyholder dividends	47	(46)
Interest credited to policyholder account balances	(348)	415
Capitalization of DAC	(1)	16
Amortization of DAC and VOBA	(4)	18
Amortization of negative VOBA	(1)	(3)
Interest expense on debt	0	(12)
Other expenses	94	137
Total expenses	(213)	525
Provision for income tax expense (benefit)	$ 42	$ (240)

XML

Segment Information (Total Assets) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Total assets	$ 712,584	$ 719,892
U.S.
Segment Reporting Information [Line Items]
Total assets	251,496	255,428
Asia
Segment Reporting Information [Line Items]
Total assets	143,458	136,928
Latin America
Segment Reporting Information [Line Items]
Total assets	78,638	79,670
EMEA
Segment Reporting Information [Line Items]
Total assets	30,546	30,500
MetLife Holdings
Segment Reporting Information [Line Items]
Total assets	175,817	183,160
Corporate & Other
Segment Reporting Information [Line Items]
Total assets	$ 32,629	$ 34,206

XML

Segment Information (Narrative) (Details)	3 Months Ended
	Mar. 31, 2018 Segment
Segment Reporting [Abstract]
Number of segments	5

XML

Separation of Brighthouse (Details) - USD ($) $ in Millions		3 Months Ended
	Aug. 04, 2017	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net investment gains (losses)		$ (333)	$ 88
Brighthouse Financial, Inc
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Common Stock, Shares, Owned by MetLife, INC.	22,996,436
Discontinued Operation, Equity Method Investment Retained after Disposal, Ownership Interest after Disposal	19.20%
Equity Method Investment, Quoted Market Value		1,200		$ 1,300
Net investment gains (losses)		$ (168)
Discontinued Operation, Separation Costs			$ 77

XML

Separation of Brighthouse (Agreements) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Related Party Transaction [Line Items]
Other Assets	$ 8,387	$ 8,167
Brighthouse Financial, Inc
Related Party Transaction [Line Items]
Income Taxes Receivable	726	726
Payable to Brighthouse	(726)	(726)
Other Assets	$ 333	$ 333

XML

Separation of Brighthouse (Effects of Affiliated Reinsurance on Statements of Operations) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Premiums Earned, Net [Abstract]
Premiums Earned, Net	$ 9,178	$ 8,965
Fees and Commissions [Abstract]
Insurance Commissions and Fees	1,392	1,360
Policyholder Benefits and Claims Incurred, Net [Abstract]
Policyholder benefits and claims	8,718	8,863
Interest Credited To Policyholder Account Balances [Abstract]
Interest Credited to Policyholders Account Balances	769	1,451
Other Expenses
Operating Expenses	3,365	3,268
Affiliated Entity [Member] | Assumed Reinsurance [Member]
Premiums Earned, Net [Abstract]
Assumed Premiums Earned	70
Fees and Commissions [Abstract]
Assumed Insurance Commissions And Fees	(1)
Policyholder Benefits and Claims Incurred, Net [Abstract]
Policyholder Benefits and Claims Incurred, Assumed	55
Interest Credited To Policyholder Account Balances [Abstract]
Assumed Interest Credited To Policyholders Account Balances	3
Other Expenses
Assumed Operating Expenses	6
Affiliated Entity [Member] | Ceded Reinsurance [Member]
Premiums Earned, Net [Abstract]
Ceded Premiums Earned	(2)
Fees and Commissions [Abstract]
Ceded Insurance Commissions And Fees	(22)
Policyholder Benefits and Claims Incurred, Net [Abstract]
Policyholder Benefits and Claims Incurred, Ceded	(6)
Interest Credited To Policyholder Account Balances [Abstract]
Ceded Interest Credited To Policyholders Account Balances	(12)
Other Expenses
Ceded Operating Expenses	(7)
Affiliated Entity [Member] | Reinsurance [Member]
Premiums Earned, Net [Abstract]
Premiums Earned, Net	68
Fees and Commissions [Abstract]
Insurance Commissions and Fees	(23)
Policyholder Benefits and Claims Incurred, Net [Abstract]
Policyholder benefits and claims	49
Interest Credited To Policyholder Account Balances [Abstract]
Interest Credited to Policyholders Account Balances	(9)
Other Expenses
Operating Expenses	(1)
Brighthouse Financial, Inc | Assumed Reinsurance [Member]
Premiums Earned, Net [Abstract]
Assumed Premiums Earned	96	97
Fees and Commissions [Abstract]
Assumed Insurance Commissions And Fees	1	(4)
Policyholder Benefits and Claims Incurred, Net [Abstract]
Policyholder Benefits and Claims Incurred, Assumed	78	75
Interest Credited To Policyholder Account Balances [Abstract]
Assumed Interest Credited To Policyholders Account Balances	4	4
Other Expenses
Assumed Operating Expenses	34	(30)
Brighthouse Financial, Inc | Ceded Reinsurance [Member]
Premiums Earned, Net [Abstract]
Ceded Premiums Earned	(3)	(3)
Fees and Commissions [Abstract]
Ceded Insurance Commissions And Fees	(24)	(24)
Policyholder Benefits and Claims Incurred, Net [Abstract]
Policyholder Benefits and Claims Incurred, Ceded	(10)	(6)
Interest Credited To Policyholder Account Balances [Abstract]
Ceded Interest Credited To Policyholders Account Balances	(18)	(18)
Other Expenses
Ceded Operating Expenses	(14)	(21)
Brighthouse Financial, Inc | Reinsurance [Member]
Premiums Earned, Net [Abstract]
Premiums Earned, Net	93	94
Fees and Commissions [Abstract]
Insurance Commissions and Fees	(23)	(28)
Policyholder Benefits and Claims Incurred, Net [Abstract]
Policyholder benefits and claims	68	69
Interest Credited To Policyholder Account Balances [Abstract]
Interest Credited to Policyholders Account Balances	(14)	(14)
Other Expenses
Operating Expenses	$ 20	$ (51)

XML

Separation of Brighthouse (Effects of Affiliated Reinsurance on Balance Sheets) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Assets [Abstract]
Premiums, reinsurance and other receivables relating to variable interest entities	$ 19,368	$ 18,423
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net	19,330	18,419
Liabilities [Abstract]
Liability for Future Policy Benefits	180,348	177,974
Other Policy-Related Balances	16,023	15,515
Other Liabilities	24,013	23,982
Assumed Reinsurance [Member] | Affiliated Entity [Member]
Assets [Abstract]
Premiums, reinsurance and other receivables relating to variable interest entities	154	167
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net	390	384
Reinsurance Assets	544	551
Liabilities [Abstract]
Liability for Future Policy Benefits	1,788	1,734
Other Policy-Related Balances	116	119
Other Liabilities	1,447	1,458
Reinsurance Liabilities	3,351	3,311
Ceded Reinsurance [Member] | Affiliated Entity [Member]
Assets [Abstract]
Premiums, reinsurance and other receivables relating to variable interest entities	1,802	1,793
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net	(40)	(40)
Reinsurance Assets	1,762	1,753
Liabilities [Abstract]
Liability for Future Policy Benefits	0	0
Other Policy-Related Balances	25	28
Other Liabilities	25	19
Reinsurance Liabilities	$ 50	$ 47

XML

Separation of Brighthouse (Additional Trans with Brighthouse - Investment and Debt) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Line of Credit Facility [Line Items]
Discontinued Operation after Disposal, Revenue	$ 29
Brighthouse Financial, Inc
Line of Credit Facility [Line Items]
Revenue from Related Parties		$ 25
Brighthouse Financial, Inc | Committed Credit Facility Six [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	2,900
Letters of Credit Outstanding, Amount	$ 2,400

XML

Separation of Brighthouse (Service Agreements and Other) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Related Party Transaction [Line Items]
Discontinued Operation after Disposal, Revenue	$ 29
Other Policy-Related Balances	16,023		$ 15,515
Insurance Commissions and Fees	1,392	$ 1,360
Brighthouse Financial, Inc
Related Party Transaction [Line Items]
Discontinued Operation after Disposal, Revenue	79
Revenue from Related Parties		81
Other Policy-Related Balances	1,300		1,300
Insurance Commissions and Fees	32	$ 31
Employee matters agreement, impact of Separation	186		186
Related Party Transaction, Due from (to) Related Party	87		97
Related Party Transaction, Payable to affiliate	$ 48		$ 50

XML

Separation of Brighthouse (Income Statement) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax	$ (182)
Discontinued Operation, Tax Effect of Discontinued Operation	(106)
Income (loss) from discontinued operations before loss on disposal of discontinued operations, net of income tax	(76)
Brighthouse Financial, Inc
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Other Income	32
Disposal Group, Including Discontinued Operation, Revenue	1,349
Disposal Group, Including Discontinued Operation, Other Expense	261
Disposal Group, Including Discontinued Operation, Operating Expenses	1,531
Brighthouse Financial, Inc | Premiums
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Revenue	350
Brighthouse Financial, Inc | Universal life and investment-type product policy fees
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Revenue	942
Brighthouse Financial, Inc | Net investment income
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Revenue	775
Brighthouse Financial, Inc | Gain (Loss) on Investments
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Revenue	(50)
Brighthouse Financial, Inc | Gain (Loss) on Derivative Instruments
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Revenue	(700)
Brighthouse Financial, Inc | Policyholder benefits and claims
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Operating Expenses	1,002
Brighthouse Financial, Inc | Interest credited to policyholder account balances
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Operating Expenses	261
Brighthouse Financial, Inc | Policyholder dividend expense
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Operating Expenses	7
Brighthouse Financial, Inc | Goodwill impairment
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Operating Expenses	$ 0

XML

Separation of Brighthouse (Cash flows) (Details) - Brighthouse Financial, Inc $ in Millions	3 Months Ended
	Mar. 31, 2017 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Operating activities	$ 302
Investing activities	16
Financing activities	$ 266

XML

Insurance (Guarantees Related to Annuity Contracts) (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Variable Annuity Guarantees: | Guaranteed Death Benefits
Net Amount at Risk by Product and Guarantee [Line Items]
Total account value	$ 64,728	$ 66,724
Separate account value (1)	43,714	45,431
Net amount at risk	$ 1,587	$ 1,238
Average attained age of contractholders	66 years	65 years
Variable Annuity Guarantees: | Guaranteed Annuitization Benefits
Net Amount at Risk by Product and Guarantee [Line Items]
Total account value	$ 25,169	$ 26,223
Separate account value (1)	23,302	24,336
Net amount at risk	$ 510	$ 525
Average attained age of contractholders	66 years	65 years
Other Annuity Guarantees: | Guaranteed Annuitization Benefits
Net Amount at Risk by Product and Guarantee [Line Items]
Total account value	$ 1,437	$ 1,424
Net amount at risk	$ 559	$ 569
Average attained age of contractholders	50 years	50 years

XML

Insurance (Guarantees Related to Universal and Variable Life Contracts) (Details) - Universal and Variable Life Contracts - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Secondary Guarantees
Net Amount at Risk by Product and Guarantee [Line Items]
Total account value (1), (3)	$ 9,089	$ 9,036
Net amount at risk (7)	$ 66,762	$ 66,956
Average attained age of policyholders	57 years	56 years
Paid-Up Guarantees
Net Amount at Risk by Product and Guarantee [Line Items]
Total account value (1), (3)	$ 3,171	$ 3,207
Net amount at risk (7)	$ 16,332	$ 16,615
Average attained age of policyholders	63 years	63 years

XML

Insurance (Rollforward of Unpaid Claims) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Liability for Claims and Claims Adjustment Expense [Line Items]
Balance, beginning of period	$ 17,094	$ 16,157
Less: Reinsurance Recoverables	2,198	1,968
Net balance, beginning of period	14,896	14,189
Incurred related to:
Current period	6,504	6,637
Prior periods (2)	(148)	(127)
Total incurred	6,356	6,510
Paid related to:
Current period	(3,339)	(3,723)
Prior periods	(2,719)	(2,604)
Total paid	(6,058)	(6,327)
Net balance, end of period	15,194	14,372
Add: Reinsurance Recoverables	2,237	2,123
Balance, end of period (included in future policy benefits and other policy-related balances)	$ 17,431	16,495
Restatement Adjustment
Paid related to:
Net balance, end of period		(131)
Add: Reinsurance Recoverables		$ 144

XML

Closed Block (Liabilities and Assets) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Closed Block Liabilities
Future policy benefits	$ 40,285	$ 40,463
Other policy-related balances	213	222
Policyholder dividends payable	462	437
Policyholder dividend obligation	1,277	2,121	$ 1,931
Other liabilities	285	212
Total closed block liabilities	42,522	43,455
Assets Designated to the Closed Block
Fixed maturity securities available-for-sale, at estimated fair value	26,815	27,904
Equity securities, at estimated fair value	68	70
Mortgage loans	6,040	5,878
Policy loans	4,532	4,548
Real estate and real estate joint ventures	595	613
Other invested assets	607	731
Total investments	38,657	39,744
Accrued investment income	475	477
Premiums, reinsurance and other receivables; cash and cash equivalents designated to the closed block	208	14
Current income tax recoverable	40	35
Deferred income tax assets	23	36
Total assets designated to the closed block	39,403	40,306
Excess of closed block liabilities over assets designated to the closed block	3,119	3,149
Amounts included in AOCI:
Unrealized investment gains (losses), net of income tax	1,711	1,863
Unrealized gains (losses) on derivatives, net of income tax	(57)	(7)
Allocated to policyholder dividend obligation, net of income tax	(1,009)	(1,379)
Total amounts included in AOCI	645	477
Maximum future earnings to be recognized from closed block assets and liabilities	$ 3,764	$ 3,626

XML

Closed Block (Policyholder Dividend Obligation) (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Closed block policyholder dividend obligation
Balance, beginning of period	$ 2,121	$ 1,931
Change in unrealized investment and derivative gains (losses)	(844)	190
Balance, end of period	$ 1,277	$ 2,121

XML

Closed Block (Revenues and Expenses) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues
Premiums	$ 387	$ 402
Net investment income	444	466
Net investment gains (losses)	(29)	(8)
Net derivative gains (losses)	(3)	(8)
Total revenues	799	852
Expenses
Policyholder benefits and claims	571	568
Policyholder dividends	244	250
Other expenses	29	32
Total expenses	844	850
Revenues, net of expenses before provision for income tax expense (benefit)	(45)	2
Provision for income tax expense (benefit)	(10)	0
Revenues, net of expenses and provision for income tax expense (benefit)	$ (35)	$ 2

XML

Investments (Fixed Maturity and Equity Securities Available-For-Sale by Sector) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Available-for-sale Securities [Abstract]
Cost or Amortized Cost	$ 287,099	$ 286,069
Gross Unrealized OTTI Loss	35	41
Available-for-sale Securities, Debt Securities	304,711	308,931
Equity securities	$ 1,544	$ 2,513
Percentage of Available-for-sale Equity Securities	100.00%	100.00%
Fixed Maturity Securities
Available-for-sale Securities [Abstract]
Gross Unrealized Gain	$ 21,045	$ 24,765
Gross Unrealized Temporary Loss	3,467	1,945
Gross Unrealized OTTI Loss	(34)	(42)
U.S. corporate
Available-for-sale Securities [Abstract]
Cost or Amortized Cost	77,786	76,005
Gross Unrealized Gain	5,105	7,007
Gross Unrealized Temporary Loss	1,057	351
Gross Unrealized OTTI Loss	0	0
Available-for-sale Securities, Debt Securities	81,834	82,661
U.S. government and agency
Available-for-sale Securities [Abstract]
Cost or Amortized Cost	40,989	43,446
Gross Unrealized Gain	3,395	4,227
Gross Unrealized Temporary Loss	557	279
Gross Unrealized OTTI Loss	0	0
Available-for-sale Securities, Debt Securities	43,827	47,394
Foreign government
Available-for-sale Securities [Abstract]
Cost or Amortized Cost	58,423	55,351
Gross Unrealized Gain	6,484	6,495
Gross Unrealized Temporary Loss	397	312
Gross Unrealized OTTI Loss	0	0
Available-for-sale Securities, Debt Securities	64,510	61,534
Foreign corporate
Available-for-sale Securities [Abstract]
Cost or Amortized Cost	52,894	52,409
Gross Unrealized Gain	3,366	3,836
Gross Unrealized Temporary Loss	797	676
Gross Unrealized OTTI Loss	0	0
Available-for-sale Securities, Debt Securities	55,463	55,569
RMBS
Available-for-sale Securities [Abstract]
Cost or Amortized Cost	26,858	27,846
Gross Unrealized Gain	999	1,145
Gross Unrealized Temporary Loss	481	233
Gross Unrealized OTTI Loss	(35)	(42)
Available-for-sale Securities, Debt Securities	27,411	28,800
State and political subdivision
Available-for-sale Securities [Abstract]
Cost or Amortized Cost	10,762	10,752
Gross Unrealized Gain	1,473	1,717
Gross Unrealized Temporary Loss	43	13
Gross Unrealized OTTI Loss	0	1
Available-for-sale Securities, Debt Securities	12,192	12,455
ABS
Available-for-sale Securities [Abstract]
Cost or Amortized Cost	11,695	12,213
Gross Unrealized Gain	111	116
Gross Unrealized Temporary Loss	41	39
Gross Unrealized OTTI Loss	1	(1)
Available-for-sale Securities, Debt Securities	11,764	12,291
CMBS
Available-for-sale Securities [Abstract]
Cost or Amortized Cost	7,692	8,047
Gross Unrealized Gain	112	222
Gross Unrealized Temporary Loss	94	42
Gross Unrealized OTTI Loss	0	0
Available-for-sale Securities, Debt Securities	7,710	8,227
Equity Securities
Available-for-sale Securities [Abstract]
Equity securities	1,544	2,513
Common Stock
Available-for-sale Securities [Abstract]
Equity securities	$ 1,046	$ 2,035
Percentage of Available-for-sale Equity Securities	67.70%	81.00%
Non-redeemable preferred stock
Available-for-sale Securities [Abstract]
Equity securities	$ 498	$ 478
Percentage of Available-for-sale Equity Securities	32.30%	19.00%

XML

Investments (Maturities of Fixed Maturity Securities) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Available-for-sale Securities, Debt Maturities [Abstract]
Amortized Cost, Due in one year or less	$ 12,620
Amortized Cost, Due after one year through five years	60,639
Amortized Cost, Due after five years through ten years	61,373
Amortized Cost, Due after ten years	106,222
Amortized Cost, Structured Securities	46,245
Amortized Cost, Subtotal	287,099	$ 286,069
Estimated Fair Value, Due in one year or less	12,674
Estimated Fair Value, Due after one year through five years	62,809
Estimated Fair Value, Due after five years through ten years	63,919
Estimated Fair Value, Due after ten years	118,424
Estimated Fair Value, Structured Securities	46,885
Available-for-sale Securities, Debt Securities	$ 304,711	$ 308,931

XML

Investments (Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities Available-For-Sale) (Details) $ in Millions	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Total number of securities in an unrealized loss position less than 12 months	5,111	2,598
Total number of securities in an unrealized loss position equal to or greater than 12 months	1,887	1,955
Fixed Maturity Securities
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Less than 12 months Estimated Fair Value	$ 70,303	$ 41,943
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	1,586	435
Equal to or Greater than 12 Months Estimated Fair Value	21,980	23,375
Equal to or Greater than 12 Months Gross Unrealized Loss	1,847	1,468
U.S. corporate
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Less than 12 months Estimated Fair Value	20,465	5,604
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	642	92
Equal to or Greater than 12 Months Estimated Fair Value	4,426	4,115
Equal to or Greater than 12 Months Gross Unrealized Loss	415	259
U.S. government and agency
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Less than 12 months Estimated Fair Value	19,105	18,273
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	224	93
Equal to or Greater than 12 Months Estimated Fair Value	3,378	3,560
Equal to or Greater than 12 Months Gross Unrealized Loss	333	186
Foreign government
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Less than 12 months Estimated Fair Value	4,510	4,234
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	137	83
Equal to or Greater than 12 Months Estimated Fair Value	3,297	3,251
Equal to or Greater than 12 Months Gross Unrealized Loss	260	229
Foreign corporate
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Less than 12 months Estimated Fair Value	8,932	4,422
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	259	99
Equal to or Greater than 12 Months Estimated Fair Value	5,835	6,802
Equal to or Greater than 12 Months Gross Unrealized Loss	538	577
RMBS
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Less than 12 months Estimated Fair Value	10,855	6,359
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	237	50
Equal to or Greater than 12 Months Estimated Fair Value	3,713	4,159
Equal to or Greater than 12 Months Gross Unrealized Loss	209	141
State and political subdivision
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Less than 12 months Estimated Fair Value	774	182
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	24	2
Equal to or Greater than 12 Months Estimated Fair Value	302	346
Equal to or Greater than 12 Months Gross Unrealized Loss	19	12
ABS
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Less than 12 months Estimated Fair Value	2,593	1,695
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	15	7
Equal to or Greater than 12 Months Estimated Fair Value	551	729
Equal to or Greater than 12 Months Gross Unrealized Loss	27	31
CMBS
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Less than 12 months Estimated Fair Value	3,069	1,174
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	48	9
Equal to or Greater than 12 Months Estimated Fair Value	478	413
Equal to or Greater than 12 Months Gross Unrealized Loss	$ 46	$ 33

XML

Investments (Mortgage Loans by Portfolio Segment) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Company-held mortgage loans held-for-investment, net
Commercial mortgage loans	$ 46,690	$ 44,375
Percentage of loans receivable on commercial mortgage loans	65.70%	64.60%
Agricultural mortgage loans	$ 13,098	$ 13,014
Percentage of loans receivable on agricultural mortgage loans	18.40%	18.90%
Residential mortgage loans	$ 11,156	$ 11,136
Percentage of loans receivable on residential mortgage loans	15.70%	16.20%
Subtotal	$ 70,944	$ 68,525
Percentage of loans receivable on subtotal	99.80%	99.70%
Valuation allowances	$ (327)	$ (314)	$ (310)	$ (304)
Percentage of loans receivable on valuation allowances	(0.40%)	(0.50%)
Subtotal mortgage loans, net	$ 70,617	$ 68,211
Percentage of loans receivable on subtotal mortgage loans held-for-investment, net	99.40%	99.20%
Percentage of residential mortgage loans - FVO	0.60%	0.80%
Total mortgage loans, net	$ 71,055	$ 68,731
Percentage of loans held for sale on total mortgage loans, net	100.00%	100.00%
Residential — FVO
Company-held mortgage loans held-for-investment, net
Total mortgage loans, net	$ 438	$ 520

XML

Investments (Mortgage Loans and Valuation Allowance by Portfolio Segment) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Mortgage Loans on Real Estate [Line Items]
Unpaid Principal Balance	$ 22	$ 22
Recorded Investment	21	21
Valuation Allowances	2	2
Unpaid Principal Balance	477	385
Recorded Investment	439	351
Recorded Investment	70,484	68,153
Valuation Allowances	325	312
Carrying Value	458	370
Commercial
Mortgage Loans on Real Estate [Line Items]
Unpaid Principal Balance	0	0
Recorded Investment	0	0
Valuation Allowances	0	0
Unpaid Principal Balance	0	0
Recorded Investment	0	0
Recorded Investment	46,690	44,375
Valuation Allowances	228	214
Carrying Value	0	0
Agricultural
Mortgage Loans on Real Estate [Line Items]
Unpaid Principal Balance	22	22
Recorded Investment	21	21
Valuation Allowances	2	2
Unpaid Principal Balance	101	27
Recorded Investment	100	27
Recorded Investment	12,977	12,966
Valuation Allowances	39	39
Carrying Value	119	46
Residential
Mortgage Loans on Real Estate [Line Items]
Unpaid Principal Balance	0	0
Recorded Investment	0	0
Valuation Allowances	0	0
Unpaid Principal Balance	376	358
Recorded Investment	339	324
Recorded Investment	10,817	10,812
Valuation Allowances	58	59
Carrying Value	$ 339	$ 324

XML

Investments (Valuation Allowance Rollforward by Portfolio Segment) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Mortgage Loans on Real Estate [Line Items]
Balance, beginning of period	$ 314	$ 304
Provision (release)	14	10
Charge-offs, net of recoveries	(1)	(4)
Balance, end of period	327	310
Commercial
Mortgage Loans on Real Estate [Line Items]
Balance, beginning of period	214	202
Provision (release)	14	5
Charge-offs, net of recoveries	0	0
Balance, end of period	228	207
Agricultural
Mortgage Loans on Real Estate [Line Items]
Balance, beginning of period	41	39
Provision (release)	0	0
Charge-offs, net of recoveries	0	0
Balance, end of period	41	39
Residential
Mortgage Loans on Real Estate [Line Items]
Balance, beginning of period	59	63
Provision (release)	0	5
Charge-offs, net of recoveries	(1)	(4)
Balance, end of period	$ 58	$ 64

XML

Investments (Credit Quality of Commercial Mortgage Loans) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	$ 46,690	$ 44,375
% of Total	100.00%	100.00%
Estimated Fair Value	$ 47,018	$ 45,084
% of Total	100.00%	100.00%
Less than 65%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	$ 40,914	$ 38,757
% of Total	87.60%	87.40%
Estimated Fair Value	$ 41,327	$ 39,528
% of Total	87.90%	87.70%
65% to 75%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	$ 4,521	$ 4,400
% of Total	9.70%	9.90%
Estimated Fair Value	$ 4,504	$ 4,408
% of Total	9.60%	9.80%
76% to 80%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	$ 601	$ 502
% of Total	1.30%	1.10%
Estimated Fair Value	$ 574	$ 476
% of Total	1.20%	1.00%
Greater than 80%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	$ 654	$ 716
% of Total	1.40%	1.60%
Estimated Fair Value	$ 613	$ 672
% of Total	1.30%	1.50%
Greater than 1.20x
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	$ 44,651	$ 41,892
Greater than 1.20x | Less than 65%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	39,705	37,073
Greater than 1.20x | 65% to 75%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	4,280	4,183
Greater than 1.20x | 76% to 80%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	265	235
Greater than 1.20x | Greater than 80%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	401	401
1.00x - 1.20x
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	1,507	1,959
1.00x - 1.20x | Less than 65%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	1,023	1,483
1.00x - 1.20x | 65% to 75%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	98	98
1.00x - 1.20x | 76% to 80%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	210	210
1.00x - 1.20x | Greater than 80%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	176	168
Less than 1.00x
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	532	524
Less than 1.00x | Less than 65%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	186	201
Less than 1.00x | 65% to 75%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	143	119
Less than 1.00x | 76% to 80%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	126	57
Less than 1.00x | Greater than 80%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	$ 77	$ 147

XML

Investments (Credit Quality of Agricultural and Residential Mortgage Loans) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Agricultural Mortgage Loans - by Credit Quality Indicator:
Recorded Investment	$ 13,098	$ 13,014
% of Total	100.00%	100.00%
Residential Mortgage Loans - by Credit Quality Indicator:
Recorded Investment	$ 11,156	$ 11,136
% of Total	100.00%	100.00%
Less than 65%
Agricultural Mortgage Loans - by Credit Quality Indicator:
Recorded Investment	$ 12,433	$ 12,347
% of Total	94.90%	94.90%
65% to 75%
Agricultural Mortgage Loans - by Credit Quality Indicator:
Recorded Investment	$ 616	$ 618
% of Total	4.70%	4.70%
76% to 80%
Agricultural Mortgage Loans - by Credit Quality Indicator:
Recorded Investment	$ 40	$ 40
% of Total	0.30%	0.30%
Greater than 80%
Agricultural Mortgage Loans - by Credit Quality Indicator:
Recorded Investment	$ 9	$ 9
% of Total	0.10%	0.10%
Performing
Residential Mortgage Loans - by Credit Quality Indicator:
Recorded Investment	$ 10,748	$ 10,622
% of Total	96.30%	95.40%
Nonperforming
Residential Mortgage Loans - by Credit Quality Indicator:
Recorded Investment	$ 408	$ 514
% of Total	3.70%	4.60%

XML

Investments (Past Due and Interest Accrual Status of Mortgage Loans) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Aging [Abstract]
Past Due	$ 628	$ 648
Loans and Leases Receivable, Nonperforming, Accrual of Interest	156	158
Nonaccrual Status	473	517
Commercial
Financing Receivable, Recorded Investment, Aging [Abstract]
Past Due	1	0
Loans and Leases Receivable, Nonperforming, Accrual of Interest	0	0
Nonaccrual Status	1	0
Agricultural
Financing Receivable, Recorded Investment, Aging [Abstract]
Past Due	219	134
Loans and Leases Receivable, Nonperforming, Accrual of Interest	114	125
Nonaccrual Status	106	36
Residential
Financing Receivable, Recorded Investment, Aging [Abstract]
Past Due	408	514
Loans and Leases Receivable, Nonperforming, Accrual of Interest	42	33
Nonaccrual Status	$ 366	$ 481

XML

Investments (Net Unrealized Investment Gains Losses) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Components of net unrealized investment gains (losses) included in accumulated other comprehensive loss
Fixed maturity securities	$ 17,545	$ 22,645
Fixed maturity securities with noncredit OTTI losses included in AOCI	35	41
Total fixed maturity securities	17,580	22,686
Equity securities	0	421
Derivatives	936	1,453
Other	136	46
Subtotal	18,652	24,606
Future policy benefits	(138)	(77)
DAC, VOBA and DSI	(1,304)	(1,768)
Policyholder dividend obligation	(1,277)	(2,121)
Subtotal	(2,719)	(3,966)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	(5)	(12)
Deferred income tax benefit (expense)	(4,372)	(6,958)
Net unrealized investment gains (losses)	11,556	13,670
Net unrealized investment gains (losses) attributable to noncontrolling interests	(9)	(8)
Net unrealized investment gains (losses) attributable to MetLife, Inc.	$ 11,547	$ 13,662

XML

Investments (Changes in Net Unrealized Investment Gains Losses) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Changes In Net Unrealized Investment Gains Losses Included In Accumulated Other Comprehensive Loss [Abstract]
Balance, beginning of period	$ 13,662
Changes In Net Unrealized Investment Gains Losses Related To Cumulative Effects Of Changes In Accounting Principles, Net Of Income Tax	1,258
Fixed maturity securities on which noncredit OTTI losses have been recognized	(6)
Unrealized investment gains (losses) during the period	(5,523)
Unrealized investment gains (losses) relating to:
Future policy benefits	(61)
DAC, VOBA and DSI	464
Policyholder dividend obligation	844
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	7
Deferred income tax benefit (expense)	903
Net unrealized investment gains (losses)	11,548
Net unrealized investment gains (losses) attributable to noncontrolling interests	(1)
Balance, end of period	11,547
Change in net unrealized investment gains (losses)	(2,114)
Change in net unrealized investment gains (losses) attributable to noncontrolling interests	(1)
Change in net unrealized investment gains (losses) attributable to MetLife, Inc.	$ (2,115)

XML

Investments (Securities Lending) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Securities Financing Transaction [Line Items]
Cash collateral on deposit from counterparties	$ 18,111	$ 19,417
Security collateral on deposit from counterparties	41	19
Reinvestment portfolio — estimated fair value	18,149	19,508
Amortized cost
Securities Financing Transaction [Line Items]
Securities loaned	17,047	17,801
Estimated fair value
Securities Financing Transaction [Line Items]
Securities loaned	$ 17,812	$ 19,028

XML

Investments (Securities Lending Remaining Tenor) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Securities Financing Transaction [Line Items]
Total	$ 18,111	$ 19,417
U.S. government and agency
Securities Financing Transaction [Line Items]
Total	17,044	18,391
Foreign government
Securities Financing Transaction [Line Items]
Total	1,067	1,026
Maturity Overnight
Securities Financing Transaction [Line Items]
Total	3,493	3,753
Maturity Overnight | U.S. government and agency
Securities Financing Transaction [Line Items]
Total	3,493	3,753
Maturity Overnight | Foreign government
Securities Financing Transaction [Line Items]
Total	0	0
Maturity Less than 30 Days
Securities Financing Transaction [Line Items]
Total	6,594	6,223
Maturity Less than 30 Days | U.S. government and agency
Securities Financing Transaction [Line Items]
Total	6,282	6,031
Maturity Less than 30 Days | Foreign government
Securities Financing Transaction [Line Items]
Total	312	192
Maturity 30 to 180 Days [Member]
Securities Financing Transaction [Line Items]
Total	8,024	9,441
Maturity 30 to 180 Days [Member] | U.S. government and agency
Securities Financing Transaction [Line Items]
Total	7,269	8,607
Maturity 30 to 180 Days [Member] | Foreign government
Securities Financing Transaction [Line Items]
Total	$ 755	$ 834

XML

Investments (Repurchase Agreements - Securities Lending) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Securities Financing Transaction [Line Items]
Cash collateral on deposit from counterparties	$ 18,111	$ 19,417
Reinvestment portfolio — estimated fair value	18,149	19,508
Repurchase Agreements [Member]
Securities Financing Transaction [Line Items]
Cash collateral on deposit from counterparties	2,861	1,102
Reinvestment portfolio — estimated fair value	2,854	1,102
Repurchase Agreements [Member] | Amortized cost
Securities Financing Transaction [Line Items]
Securities Sold under Agreements to Repurchase	2,796	994
Repurchase Agreements [Member] | Estimated fair value
Securities Financing Transaction [Line Items]
Securities Sold under Agreements to Repurchase	$ 2,927	$ 1,141

XML

Investments (Repurchase Agreements - Securities Lending Remaining Tenor) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Securities Financing Transaction [Line Items]
Total	$ 18,111	$ 19,417
Repurchase Agreements [Member]
Securities Financing Transaction [Line Items]
Total	2,861	1,102
U.S. government and agency
Securities Financing Transaction [Line Items]
Total	17,044	18,391
U.S. government and agency | Repurchase Agreements [Member]
Securities Financing Transaction [Line Items]
Total	2,765	1,005
Other Debt Obligations [Member] | Repurchase Agreements [Member]
Securities Financing Transaction [Line Items]
Total	96	97
Maturity Less than 30 Days
Securities Financing Transaction [Line Items]
Total	6,594	6,223
Maturity Less than 30 Days | Repurchase Agreements [Member]
Securities Financing Transaction [Line Items]
Total	2,760	1,049
Maturity Less than 30 Days | U.S. government and agency
Securities Financing Transaction [Line Items]
Total	6,282	6,031
Maturity Less than 30 Days | U.S. government and agency | Repurchase Agreements [Member]
Securities Financing Transaction [Line Items]
Total	2,760	1,005
Maturity Less than 30 Days | Other Debt Obligations [Member] | Repurchase Agreements [Member]
Securities Financing Transaction [Line Items]
Total	0	44
Maturity 30 to 180 Days [Member]
Securities Financing Transaction [Line Items]
Total	8,024	9,441
Maturity 30 to 180 Days [Member] | Repurchase Agreements [Member]
Securities Financing Transaction [Line Items]
Total	101	53
Maturity 30 to 180 Days [Member] | U.S. government and agency
Securities Financing Transaction [Line Items]
Total	7,269	8,607
Maturity 30 to 180 Days [Member] | U.S. government and agency | Repurchase Agreements [Member]
Securities Financing Transaction [Line Items]
Total	5	0
Maturity 30 to 180 Days [Member] | Other Debt Obligations [Member] | Repurchase Agreements [Member]
Securities Financing Transaction [Line Items]
Total	$ 96	$ 53

XML

Investments Investments (FHLB Boston Advance Agreements Remaining Tenor) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances	$ 800	$ 300
Foreign Government Debt Securities [Member] | Maturity 30 to 180 Days [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances	625	300
Foreign Government Debt Securities [Member] | Maturity 180 to 360 Days [Member] [Domain]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances	75	0
Foreign Government Debt Securities [Member] | Maturity Less than 30 Days [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances	$ 100	$ 0

XML

Investments (Invested Assets on Deposit, Held In Trust and Pledged as Collateral) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Invested assets on deposit (regulatory deposits)	$ 2,079	$ 1,879
Invested assets held in trust (collateral financing arrangement and reinsurance agreements)	2,586	2,490
Invested assets pledged as collateral	25,198	24,174
Total invested assets on deposit, held in trust and pledged as collateral	$ 29,863	$ 28,543

XML

Investments (Consolidated Variable Interest Entities) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Variable Interest Entity [Line Items]
Total Assets	$ 141	$ 148
Total Liabilities	7	9
Partnership [Member]
Variable Interest Entity [Line Items]
Total Assets	109	116
Total Liabilities	1	3
Other
Variable Interest Entity [Line Items]
Total Assets	32	32
Total Liabilities	$ 6	$ 6

XML

Investments (Unconsolidated Variable Interest Entities) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Variable Interest Entity [Line Items]
Carrying Amount Asset	$ 54,192	$ 56,381
Carrying Amount Liability	58,700	60,429
Other limited partnership interests
Variable Interest Entity [Line Items]
Carrying Amount Asset	4,941	4,834
Carrying Amount Liability	9,187	8,543
Other invested assets
Variable Interest Entity [Line Items]
Carrying Amount Asset	2,300	2,291
Carrying Amount Liability	2,557	2,625
Other
Variable Interest Entity [Line Items]
Carrying Amount Asset	41	82
Carrying Amount Liability	46	87
Structured securities (RMBS, CMBS, and ABS)
Variable Interest Entity [Line Items]
Carrying Amount Asset	45,555	47,614
Carrying Amount Liability	45,555	47,614
U.S. corporate and foreign corporate securities
Variable Interest Entity [Line Items]
Carrying Amount Asset	1,355	1,560
Carrying Amount Liability	$ 1,355	$ 1,560

XML

Investments (Net Investment Income) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net Investment Income [Line Items]
Less: Investment expenses	$ 302	$ 261
Subtotal	3,745	4,421
Securities Investment
Net Investment Income [Line Items]
Subtotal	4,400	4,266
Subtotal	4,098	4,005
Fixed maturity securities
Net Investment Income [Line Items]
Subtotal	2,896	2,825
Equity Securities
Net Investment Income [Line Items]
Subtotal	16	31
Actively traded securities and FVO general account securities
Net Investment Income [Line Items]
Subtotal	6	29
Mortgage loans
Net Investment Income [Line Items]
Subtotal	792	736
Policy loans
Net Investment Income [Line Items]
Subtotal	124	127
Real estate and real estate joint ventures
Net Investment Income [Line Items]
Subtotal	168	153
Other limited partnership interests
Net Investment Income [Line Items]
Subtotal	207	240
Cash, cash equivalents and short-term investments
Net Investment Income [Line Items]
Subtotal	72	51
Operating joint ventures
Net Investment Income [Line Items]
Subtotal	13	2
Other
Net Investment Income [Line Items]
Subtotal	106	72
FVO contractholder-directed unit-linked investments
Net Investment Income [Line Items]
Subtotal	$ (353)	$ 416

XML

Investments (Components of Net Investment Gains Losses) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Changes In Estimated Fair Value Subsequent To Purchase For Equity Securities	$ (37)
Marketable Securities, Gain (Loss) [Abstract]
Fixed maturity securities — net gains (losses) on sales and disposals	(95)	$ (2)
Equity securities — net gains (losses) on sales and disposals	102	43
Change In Estimated Fair Value Of Equity Securities	(133)	0
Other net investment gains (losses):
Mortgage loans	(21)	(12)
Real estate and real estate joint ventures	25	(3)
Other limited partnership interests	0	(7)
Other	(130)	(26)
Subtotal	(252)	(15)
FVO CSEs - changes in estimated fair value subsequent to consolidation:
Change In Estimated Fair Value Of Other Limited Partnership Interests And Real Estate Joint Ventures	(5)	0
Non-investment portfolio gains (losses) (2)	(76)	103
Subtotal	(81)	103
Total net investment gains (losses)	(333)	88
Fixed Maturity Securities
Marketable Securities, Gain (Loss) [Abstract]
Total OTTI losses recognized in earnings	0	0
Net investment gains (losses)	(95)	(2)
Equity Securities
Marketable Securities, Gain (Loss) [Abstract]
Total OTTI losses recognized in earnings	0	(8)
Net investment gains (losses)	(31)	35
Nonredeemable Preferred Stock [Member]
Marketable Securities, Gain (Loss) [Abstract]
Total OTTI losses recognized in earnings	0	(1)
Common Stock
Marketable Securities, Gain (Loss) [Abstract]
Total OTTI losses recognized in earnings	$ 0	$ (7)

XML

Investments (Sales or Disposals and Impairments of Fixed Maturity and Equity Securities) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Fixed Maturity Securities
Components of Sales or Disposals of Fixed Maturity and Equity Securities
Proceeds	$ 19,070	$ 14,461
Gross investment gains	106	142
Gross investment losses	(201)	(144)
Total OTTI losses recognized in earnings:
Total OTTI losses recognized in earnings	0	0
Net investment gains (losses)	(95)	(2)
Equity Securities
Total OTTI losses recognized in earnings:
Total OTTI losses recognized in earnings	0	(8)
Net investment gains (losses)	$ (31)	$ 35

XML

Investments (Credit Loss Rollforward) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Cash Flows	$ (1)	$ 0
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Balance, beginning of period	138	187
Reduction:
Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI	(9)	(17)
Balance, end of period	$ 128	$ 170

XML

Investments (Fixed Maturity and Equity Securities Available-For-Sale - Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Federal Home Loan Bank Stock		$ 791
Summary of Certain Fixed Maturity Securities
Gross Unrealized OTTI Loss	$ (35)	(41)
Available-for-sale Securities, Debt Securities	304,711	308,931
CMBS
Summary of Certain Fixed Maturity Securities
Gross Unrealized OTTI Loss	0	0
Available-for-sale Securities, Debt Securities	7,710	8,227
Non-income producing fixed maturity securities
Summary of Certain Fixed Maturity Securities
Available-for-sale Securities, Debt Securities	24	6
Gross Unrealized Gain	$ (1)	$ (4)

XML

Investments (Evaluation of Available-For-Sale Securities for OTTI and Evaluating Temporarily Impaired AFS Securities - Narrative) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($) Contracts	Dec. 31, 2017 USD ($)
Schedule of Available-for-sale Securities [Line Items]
Equity securities available-for-sale with gross unrealized loss of equal to or greater than stated percentage	20.00%
Fixed Maturity Securities
Schedule of Available-for-sale Securities [Line Items]
Change in Gross Unrealized Temporary Loss	$ (1,500)
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	3,400
Gross Unrealized Temporary Loss	1,847	$ 1,468
20% or more | Six months or greater | Fixed Maturity Securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	$ 85
Number of Securities | Contracts	28
External Credit Rating, Non Investment Grade | 20% or more | Six months or greater | Fixed Maturity Securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	$ 45
Number of Securities | Contracts	17
Percentage of gross unrealized loss	53.00%
External Credit Rating, Investment Grade | 20% or more | Six months or greater | Fixed Maturity Securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	$ 40
Number of Securities | Contracts	11
Percentage of gross unrealized loss	47.00%

XML

Investments (Mortgage Loans - Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Mortgage Loans on Real Estate [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses	$ 1	$ 4
Financing Receivable, Significant Purchases	$ 307	762
Percentage of Mortgage Loans Classified as Performing	99.00%		99.00%
Commercial
Mortgage Loans on Real Estate [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses	$ 0	0
Impaired Financing Receivable, Average Recorded Investment	0	12
Agricultural
Mortgage Loans on Real Estate [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses	0	0
Impaired Financing Receivable, Average Recorded Investment	84	25
Estimated fair value of mortgage loans held-for-investment	13,000		$ 13,100
Residential
Mortgage Loans on Real Estate [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses	1	4
Impaired Financing Receivable, Average Recorded Investment	331	$ 253
Estimated fair value of mortgage loans held-for-investment	$ 11,800		$ 11,600

XML

Investments (Cash Equivalents - Narrative) (Details) - USD ($) $ in Billions	Mar. 31, 2018	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Cash equivalents	$ 6.3	$ 6.2

XML

Investments (Concentrations of Credit Risk - Narrative) (Details) - USD ($) $ in Billions	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Securities holdings exposure in single issuer greater than stated percentage of Company's equity	10.00%	10.00%
Foreign government | Japan
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Government and agency fixed maturity securities	$ 30.7	$ 27.5
Foreign government | KOREA, REPUBLIC OF
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Government and agency fixed maturity securities	$ 6.4	$ 6.5

XML

Investments (Securities Lending Remaining Tenor - Narrative) (Details) - Estimated fair value $ in Billions	Mar. 31, 2018 USD ($)
Securities Financing Transaction [Line Items]
Cash collateral on deposit from counterparties	$ 3.4
Securities Investment
Securities Financing Transaction [Line Items]
Percentage of Reinvestment Portfolio in Fixed Maturity Securities	60.00%

XML

Investments (Repurchase Agreements - Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Securities Financing Transaction [Line Items]
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged	$ 1,300	$ 564
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances	$ 800	300
Repurchase Agreements [Member]
Securities Financing Transaction [Line Items]
Percentage of Reinvestment Portfolio in Fixed Maturity Securities	64.00%
U.S. government and agency
Securities Financing Transaction [Line Items]
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances	$ 804	$ 300

XML

Investments (Variable Interest Entities - Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Tax credits guaranteed by third parties that reduce maximum exposure to loss related to other invested assets	$ 113	$ 117

XML

Investments (Net Investment Income - Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Net Investment Income [Line Items]
Fair Value Option And Trading Securities	$ 16,444		$ 16,745
FVO contractholder-directed unit-linked investments
Net Investment Income [Line Items]
Changes in estimated fair value included in net investment income	$ (373)	$ 340

XML

Investments (Net Investment Gains Losses - Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Gains (losses) from foreign currency transactions	$ 65	$ 80
Gain (Loss) on Sales of Loans, Net	(21)	(12)
Non-investment portfolio gains (losses) (2)	(76)	103
Gain (Loss) on Sale of Debt Investments	(95)	$ (2)
FVO Common Stock [Member] | Brighthouse Financial, Inc
Schedule of Available-for-sale Securities [Line Items]
Non-investment portfolio gains (losses) (2)	$ 168

XML

Derivatives (Primary Risks) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Gross Notional Amount	$ 262,217	$ 275,916
Estimated Fair Value Assets	7,924	8,551
Estimated Fair Value Liabilities	4,075	4,339
Derivatives Designated as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Gross Notional Amount	56,148	57,020
Estimated Fair Value Assets	3,662	3,764
Estimated Fair Value Liabilities	2,320	2,023
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member]
Derivatives, Fair Value [Line Items]
Gross Notional Amount	7,144	8,212
Estimated Fair Value Assets	2,273	2,341
Estimated Fair Value Liabilities	42	58
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member] | Interest rate swaps
Derivatives, Fair Value [Line Items]
Gross Notional Amount	2,521	3,843
Estimated Fair Value Assets	2,111	2,289
Estimated Fair Value Liabilities	2	3
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member] | Foreign currency swaps
Derivatives, Fair Value [Line Items]
Gross Notional Amount	1,146	1,116
Estimated Fair Value Assets	65	50
Estimated Fair Value Liabilities	36	18
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member] | Foreign currency forwards
Derivatives, Fair Value [Line Items]
Gross Notional Amount	3,477	3,253
Estimated Fair Value Assets	97	2
Estimated Fair Value Liabilities	4	37
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member]
Derivatives, Fair Value [Line Items]
Gross Notional Amount	39,959	39,068
Estimated Fair Value Assets	1,368	1,377
Estimated Fair Value Liabilities	2,010	1,797
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | Interest rate swaps
Derivatives, Fair Value [Line Items]
Gross Notional Amount	3,580	3,584
Estimated Fair Value Assets	158	235
Estimated Fair Value Liabilities	14	4
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | Interest rate forwards
Derivatives, Fair Value [Line Items]
Gross Notional Amount	3,143	3,332
Estimated Fair Value Assets	0	0
Estimated Fair Value Liabilities	218	128
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | Foreign currency swaps
Derivatives, Fair Value [Line Items]
Gross Notional Amount	33,236	32,152
Estimated Fair Value Assets	1,210	1,142
Estimated Fair Value Liabilities	1,778	1,665
Derivatives Designated as Hedging Instruments: | Foreign Operations Hedges [Member]
Derivatives, Fair Value [Line Items]
Gross Notional Amount	9,045	9,740
Estimated Fair Value Assets	21	46
Estimated Fair Value Liabilities	268	168
Derivatives Designated as Hedging Instruments: | Foreign Operations Hedges [Member] | Foreign currency forwards
Derivatives, Fair Value [Line Items]
Gross Notional Amount	458	332
Estimated Fair Value Assets	2	2
Estimated Fair Value Liabilities	5	5
Derivatives Designated as Hedging Instruments: | Foreign Operations Hedges [Member] | Currency options
Derivatives, Fair Value [Line Items]
Gross Notional Amount	8,587	9,408
Estimated Fair Value Assets	19	44
Estimated Fair Value Liabilities	263	163
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Gross Notional Amount	206,069	218,896
Estimated Fair Value Assets	4,262	4,787
Estimated Fair Value Liabilities	1,755	2,316
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate swaps
Derivatives, Fair Value [Line Items]
Gross Notional Amount	52,610	60,485
Estimated Fair Value Assets	1,597	2,203
Estimated Fair Value Liabilities	279	576
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate forwards
Derivatives, Fair Value [Line Items]
Gross Notional Amount	217	217
Estimated Fair Value Assets	0	0
Estimated Fair Value Liabilities	51	42
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate floors
Derivatives, Fair Value [Line Items]
Gross Notional Amount	7,201	7,201
Estimated Fair Value Assets	66	92
Estimated Fair Value Liabilities	0	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate caps
Derivatives, Fair Value [Line Items]
Gross Notional Amount	46,020	53,079
Estimated Fair Value Assets	221	78
Estimated Fair Value Liabilities	2	2
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate futures
Derivatives, Fair Value [Line Items]
Gross Notional Amount	2,991	4,366
Estimated Fair Value Assets	2	2
Estimated Fair Value Liabilities	3	4
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate options
Derivatives, Fair Value [Line Items]
Gross Notional Amount	14,816	12,009
Estimated Fair Value Assets	575	656
Estimated Fair Value Liabilities	0	11
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity total return swaps
Derivatives, Fair Value [Line Items]
Gross Notional Amount	1,048	1,048
Estimated Fair Value Assets	14	8
Estimated Fair Value Liabilities	25	2
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Synthetic GICs
Derivatives, Fair Value [Line Items]
Gross Notional Amount	11,720	11,318
Estimated Fair Value Assets	0	0
Estimated Fair Value Liabilities	0	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Foreign currency swaps
Derivatives, Fair Value [Line Items]
Gross Notional Amount	10,773	9,902
Estimated Fair Value Assets	580	693
Estimated Fair Value Liabilities	461	506
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Foreign currency forwards
Derivatives, Fair Value [Line Items]
Gross Notional Amount	13,803	12,238
Estimated Fair Value Assets	295	79
Estimated Fair Value Liabilities	67	190
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Currency futures
Derivatives, Fair Value [Line Items]
Gross Notional Amount	900	846
Estimated Fair Value Assets	0	2
Estimated Fair Value Liabilities	8	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Currency options
Derivatives, Fair Value [Line Items]
Gross Notional Amount	2,391	3,123
Estimated Fair Value Assets	9	55
Estimated Fair Value Liabilities	0	6
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Credit default swaps — purchased
Derivatives, Fair Value [Line Items]
Gross Notional Amount	1,888	2,020
Estimated Fair Value Assets	5	7
Estimated Fair Value Liabilities	41	43
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Credit default swaps — written
Derivatives, Fair Value [Line Items]
Gross Notional Amount	11,421	11,375
Estimated Fair Value Assets	210	271
Estimated Fair Value Liabilities	2	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity futures
Derivatives, Fair Value [Line Items]
Gross Notional Amount	3,088	4,005
Estimated Fair Value Assets	7	18
Estimated Fair Value Liabilities	19	4
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity index options
Derivatives, Fair Value [Line Items]
Gross Notional Amount	19,509	19,886
Estimated Fair Value Assets	594	569
Estimated Fair Value Liabilities	603	690
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity variance swaps
Derivatives, Fair Value [Line Items]
Gross Notional Amount	4,661	4,661
Estimated Fair Value Assets	52	54
Estimated Fair Value Liabilities	194	199
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity total return swaps
Derivatives, Fair Value [Line Items]
Gross Notional Amount	1,012	1,117
Estimated Fair Value Assets	35	0
Estimated Fair Value Liabilities	$ 0	$ 41

XML

Derivatives (Net Derivative Gains Losses) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Components of Net Derivatives Gains (Losses)
Derivatives and hedging gains (losses)	$ 312	$ (369)
Embedded derivatives gains (losses)	37	157
Total net derivative gains (losses)	$ 349	$ (212)

XML

Derivatives (Earned Income On Derivatives) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Interest Income (Expense), Nonoperating, Net	$ 191	$ 236
Derivatives Designated as Hedging Instruments: | Net investment income
Derivative Instruments, Gain (Loss) [Line Items]
Interest Income (Expense), Nonoperating, Net	81	75
Derivatives Designated as Hedging Instruments: | Interest credited to policyholder account balances
Derivative Instruments, Gain (Loss) [Line Items]
Interest Income (Expense), Nonoperating, Net	(23)	(6)
Derivatives Designated as Hedging Instruments: | Other expenses
Derivative Instruments, Gain (Loss) [Line Items]
Interest Income (Expense), Nonoperating, Net	(2)	(3)
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Interest Income (Expense), Nonoperating, Net	133	168
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder benefits and claims
Derivative Instruments, Gain (Loss) [Line Items]
Interest Income (Expense), Nonoperating, Net	$ 2	$ 2

XML

Derivatives (Gains Losses Recognized in Income Not Designated or Qualifying) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	$ (40)	$ (7)
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	203	(357)
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses) | Interest rate derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	(235)	(390)
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses) | Foreign currency exchange rate derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	387	363
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses) | Credit derivatives — purchased
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	(3)	(8)
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses) | Credit derivatives — written
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	(44)	32
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses) | Equity derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	98	(354)
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net investment income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	5	(1)
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net investment income | Interest rate derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	4	2
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net investment income | Foreign currency exchange rate derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	0	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net investment income | Credit derivatives — purchased
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	0	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net investment income | Credit derivatives — written
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	0	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net investment income | Equity derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	1	(3)
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder benefits and claims
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	7	(70)
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder benefits and claims | Interest rate derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	(7)	2
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder benefits and claims | Foreign currency exchange rate derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	2	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder benefits and claims | Credit derivatives — purchased
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	0	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder benefits and claims | Credit derivatives — written
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	0	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder benefits and claims | Equity derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss) on Derivative, Net	$ 12	$ (72)

XML

Derivatives (Fair Value Hedges) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Components Excluded from Assessment of Foreign Currency Fair Value Hedge Effectiveness	$ (8)	$ (7)
Net Derivative Gains (Losses) Recognized for Derivatives	(40)	(7)
Net Derivative Gains (Losses) Recognized for Hedged Items	51	13
Ineffectiveness Recognized in Net Derivative Gains (Losses)	11	6
Interest rate swaps | Fixed Maturity Securities
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	3	1
Net Derivative Gains (Losses) Recognized for Hedged Items	(2)	(1)
Ineffectiveness Recognized in Net Derivative Gains (Losses)	1	0
Interest rate swaps | Policyholder account balances
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	(213)	(51)
Net Derivative Gains (Losses) Recognized for Hedged Items	212	50
Ineffectiveness Recognized in Net Derivative Gains (Losses)	(1)	(1)
Foreign currency swaps | Foreign-denominated fixed maturity securities and mortgage loans
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	(27)	(3)
Net Derivative Gains (Losses) Recognized for Hedged Items	27	3
Ineffectiveness Recognized in Net Derivative Gains (Losses)	0	0
Foreign currency swaps | Foreign-denominated policyholder account balances [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	18	1
Net Derivative Gains (Losses) Recognized for Hedged Items	(18)	2
Ineffectiveness Recognized in Net Derivative Gains (Losses)	0	3
Foreign currency forwards | Foreign-denominated fixed maturity securities and mortgage loans
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	179	45
Net Derivative Gains (Losses) Recognized for Hedged Items	(168)	(41)
Ineffectiveness Recognized in Net Derivative Gains (Losses)	$ 11	$ 4

XML

Derivatives (Cash Flow Hedges) (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Credit Derivative, Maximum Exposure, Undiscounted	$ 11,421		$ 11,375
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net	$ 1	$ 20
Maximum Length of Time Hedged in Cash Flow Hedge	4 years		5 years
Accumulated Other Comprehensive Income Loss	$ 900		$ 1,500
Cash Flow Hedges [Member]
Derivatives in cash flow hedging relationships
Amount of Gains (Losses) Deferred in AOCI (Effective Portion)	(352)	229
Cash Flow Hedges [Member] | Interest rate swaps
Derivatives in cash flow hedging relationships
Amount of Gains (Losses) Deferred in AOCI (Effective Portion)	(173)	5
Cash Flow Hedges [Member] | Foreign currency swaps
Derivatives in cash flow hedging relationships
Amount of Gains (Losses) Deferred in AOCI (Effective Portion)	(75)	180
Cash Flow Hedges [Member] | Credit forwards [Member]
Derivatives in cash flow hedging relationships
Amount of Gains (Losses) Deferred in AOCI (Effective Portion)	0	0
Cash Flow Hedges [Member] | Interest rate forwards
Derivatives in cash flow hedging relationships
Amount of Gains (Losses) Deferred in AOCI (Effective Portion)	(104)	44
Cash Flow Hedges [Member] | Net derivative gains (losses)
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)	160	212
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	(1)	3
Cash Flow Hedges [Member] | Net derivative gains (losses) | Interest rate swaps
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)	16	8
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	(2)	1
Cash Flow Hedges [Member] | Net derivative gains (losses) | Foreign currency swaps
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)	139	208
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	1	2
Cash Flow Hedges [Member] | Net derivative gains (losses) | Credit forwards [Member]
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)	0	0
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	0	0
Cash Flow Hedges [Member] | Net derivative gains (losses) | Interest rate forwards
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)	5	(4)
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	0	0
Cash Flow Hedges [Member] | Net Investment Income
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)	4	4
Cash Flow Hedges [Member] | Net Investment Income | Interest rate swaps
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)	3	4
Cash Flow Hedges [Member] | Net Investment Income | Foreign currency swaps
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)	0	0
Cash Flow Hedges [Member] | Net Investment Income | Credit forwards [Member]
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)	0	0
Cash Flow Hedges [Member] | Net Investment Income | Interest rate forwards
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)	1	0
Cash Flow Hedges [Member] | Other expenses
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)	1	1
Cash Flow Hedges [Member] | Other expenses | Interest rate swaps
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)	0	0
Cash Flow Hedges [Member] | Other expenses | Foreign currency swaps
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)	1	1
Cash Flow Hedges [Member] | Other expenses | Credit forwards [Member]
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)	0	0
Cash Flow Hedges [Member] | Other expenses | Interest rate forwards
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)	0	0
Discontinued Operations | Brighthouse Financial, Inc | Cash Flow Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Reduction of Deferred Gains within AOCI		(19)
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)	$ 0	$ 12

XML

Derivatives (Hedges of Net Investments in Foreign Operations) (Details) - Foreign Operations Hedges [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gains (Losses) Deferred in AOCI (Effective Portion)	$ (157)	$ (326)
Foreign currency forwards
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gains (Losses) Deferred in AOCI (Effective Portion)	(8)	(95)
Currency options
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gains (Losses) Deferred in AOCI (Effective Portion)	$ (149)	$ (231)

XML

Derivatives (Credit Derivatives) (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 208	$ 271
Maximum Amount of Future Payments under Credit Default Swaps	$ 11,421	$ 11,375
Weighted Average Years to Maturity	4 years 5 months	4 years 4 months
Aaa/Aa/A
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 47	$ 51
Maximum Amount of Future Payments under Credit Default Swaps	$ 2,648	$ 2,643
Weighted Average Years to Maturity	2 years 6 months	2 years 8 months
Aaa/Aa/A | Single name credit default swaps (3)
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 7	$ 7
Maximum Amount of Future Payments under Credit Default Swaps	$ 381	$ 375
Weighted Average Years to Maturity	2 years 5 months	2 years 7 months
Aaa/Aa/A | Credit default swaps referencing indices
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 40	$ 44
Maximum Amount of Future Payments under Credit Default Swaps	$ 2,267	$ 2,268
Weighted Average Years to Maturity	2 years 6 months	2 years 8 months
Baa
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 139	$ 190
Maximum Amount of Future Payments under Credit Default Swaps	$ 8,403	$ 8,267
Weighted Average Years to Maturity	5 years	4 years 10 months
Baa | Single name credit default swaps (3)
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 7	$ 7
Maximum Amount of Future Payments under Credit Default Swaps	$ 656	$ 605
Weighted Average Years to Maturity	1 year 11 months	1 year 10 months
Baa | Credit default swaps referencing indices
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 132	$ 183
Maximum Amount of Future Payments under Credit Default Swaps	$ 7,747	$ 7,662
Weighted Average Years to Maturity	5 years 2 months	5 years
Ba
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 0	$ 1
Maximum Amount of Future Payments under Credit Default Swaps	$ 20	$ 115
Weighted Average Years to Maturity	1 year 2 months	3 years 5 months
Ba | Single name credit default swaps (3)
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 0	$ 1
Maximum Amount of Future Payments under Credit Default Swaps	$ 20	$ 115
Weighted Average Years to Maturity	1 year 2 months	3 years 5 months
Ba | Credit default swaps referencing indices
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 0	$ 0
Maximum Amount of Future Payments under Credit Default Swaps	$ 0	$ 0
Weighted Average Years to Maturity	0 years	0 years
B
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 22	$ 29
Maximum Amount of Future Payments under Credit Default Swaps	$ 350	$ 350
Weighted Average Years to Maturity	5 years 1 month	4 years 11 months
B | Single name credit default swaps (3)
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 2	$ 2
Maximum Amount of Future Payments under Credit Default Swaps	$ 20	$ 20
Weighted Average Years to Maturity	3 years 2 months	3 years 6 months
B | Credit default swaps referencing indices
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 20	$ 27
Maximum Amount of Future Payments under Credit Default Swaps	$ 330	$ 330
Weighted Average Years to Maturity	5 years 2 months	5 years

XML

Derivatives (Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Offsetting Assets [Line Items]
Gross estimated fair value of derivative assets	$ 7,972	$ 8,626
Gross estimated fair value of derivative liabilities	4,025	4,290
Amounts offset in the consolidated balance sheet, Assets	0	0
Amounts offset in the consolidated balance sheet, Liabilities	0	0
Estimated fair value of derivative assets presented in the consolidated balance sheets	7,972	8,626
Estimated fair value of derivative liabilities presented in the consolidated balance sheets	4,025	4,290
Net amount of derivative assets after application of master netting agreements and cash collateral	317	305
Net amount of derivative liabilities after application of master netting agreements and cash collateral	53	57
Over the Counter [Member]
Offsetting Assets [Line Items]
Gross estimated fair value of derivative assets	7,733	7,955
Gross estimated fair value of derivative liabilities	3,948	4,059
Gross estimated fair value of derivative assets	(2,376)	(2,528)
Gross estimated fair value of derivative liabilities	(2,376)	(2,528)
Cash collateral on derivative assets	(4,082)	(4,169)
Cash collateral on derivative liabilities	0	0
Securities collateral on derivative assets	(981)	(1,004)
Securities collateral on derivative liabilities	(1,519)	(1,474)
Cleared [Member]
Offsetting Assets [Line Items]
Gross estimated fair value of derivative assets	230	649
Gross estimated fair value of derivative liabilities	47	223
Gross estimated fair value of derivative assets	(21)	(35)
Gross estimated fair value of derivative liabilities	(21)	(35)
Cash collateral on derivative assets	(194)	(584)
Cash collateral on derivative liabilities	(9)	(179)
Securities collateral on derivative assets	0	0
Securities collateral on derivative liabilities	(17)	(9)
Exchange-traded
Offsetting Assets [Line Items]
Gross estimated fair value of derivative assets	9	22
Gross estimated fair value of derivative liabilities	30	8
Gross estimated fair value of derivative assets	(1)	(1)
Gross estimated fair value of derivative liabilities	(1)	(1)
Cash collateral on derivative assets	0	0
Cash collateral on derivative liabilities	(21)	(5)
Securities collateral on derivative assets	0	0
Securities collateral on derivative liabilities	$ (8)	$ (2)

XML

Derivatives (Credit Risk on Freestanding Derivatives) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Credit Derivatives [Line Items]
Estimated Fair Value of Derivatives in a Net Liability Position (1)	$ 1,572	$ 1,532
Estimated Fair Value Of Incremental Collateral Provided Upon A One Notch Downgrade In The Company's Credit Rating	14	15
Estimated Fair Value Of Incremental Collateral Provided Upon A Downgrade In The Company's Credit Rating to a Level that Triggers Full Overnight Collateralization or Termination of the Derivative Position	15	20
Fixed maturity securities
Credit Derivatives [Line Items]
Estimated Fair Value of Collateral Provided:	1,784	1,701
Cash
Credit Derivatives [Line Items]
Estimated Fair Value of Collateral Provided:	0	0
Derivatives Subject to Credit- Contingent Provisions
Credit Derivatives [Line Items]
Estimated Fair Value of Derivatives in a Net Liability Position (1)	1,533	1,508
Estimated Fair Value Of Incremental Collateral Provided Upon A One Notch Downgrade In The Company's Credit Rating	14	15
Estimated Fair Value Of Incremental Collateral Provided Upon A Downgrade In The Company's Credit Rating to a Level that Triggers Full Overnight Collateralization or Termination of the Derivative Position	15	20
Derivatives Subject to Credit- Contingent Provisions | Fixed maturity securities
Credit Derivatives [Line Items]
Estimated Fair Value of Collateral Provided:	1,734	1,675
Derivatives Subject to Credit- Contingent Provisions | Cash
Credit Derivatives [Line Items]
Estimated Fair Value of Collateral Provided:	0	0
Derivatives Not Subject to Credit- Contingent Provisions
Credit Derivatives [Line Items]
Estimated Fair Value of Derivatives in a Net Liability Position (1)	39	24
Estimated Fair Value Of Incremental Collateral Provided Upon A One Notch Downgrade In The Company's Credit Rating	0	0
Estimated Fair Value Of Incremental Collateral Provided Upon A Downgrade In The Company's Credit Rating to a Level that Triggers Full Overnight Collateralization or Termination of the Derivative Position	0	0
Derivatives Not Subject to Credit- Contingent Provisions | Fixed maturity securities
Credit Derivatives [Line Items]
Estimated Fair Value of Collateral Provided:	50	26
Derivatives Not Subject to Credit- Contingent Provisions | Cash
Credit Derivatives [Line Items]
Estimated Fair Value of Collateral Provided:	$ 0	$ 0

XML

Derivatives (Embedded Derivatives) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract]
Embedded derivatives within asset host contracts	$ 157	$ 12
Embedded derivatives within liability host contracts	485	418
Ceded guaranteed minimum benefits | Premiums, reinsurance and other receivables
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract]
Embedded derivatives within asset host contracts	157	144
Direct guaranteed minimum benefits | Policyholder account balances
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract]
Embedded derivatives within liability host contracts	23	32
Assumed guaranteed minimum benefits | Policyholder account balances
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract]
Embedded derivatives within liability host contracts	392	291
Funds withheld on ceded reinsurance | Other liabilities
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract]
Embedded derivatives within liability host contracts	2	25
Fixed annuities with equity indexed returns | Policyholder account balances
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract]
Embedded derivatives within liability host contracts	68	70
Options embedded in debt or equity securities [Member] | Other
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract]
Embedded derivatives within asset host contracts	$ 0	$ (132)

XML

Derivatives (Changes in Estimated Fair Value Related to Embedded Derivatives) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives gains (losses)	$ 37	$ 157
Net derivative gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives gains (losses)	$ 37	$ 157

XML

Derivatives (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Maximum Amount of Future Payments under Credit Default Swaps	$ 11,421		$ 11,375
Estimated Fair Value of Credit Default Swaps	208		271
Estimated Fair Value Assets	7,924		8,551
Estimated Fair Value Liabilities	4,075		4,339
Excess securities collateral received on derivatives	204		$ 253
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives gains (losses)	37	$ 157
Derivative Instrument Detail [Abstract]
Change in fair value of derivatives excluded from the assessment of hedge effectiveness	(8)	(7)
Net amounts reclassified into net derivatives gains (losses) on discontinued cash flow hedges	$ 1	20
Hedging exposure to variability in future cash flows for specific length of time	4 years		5 years
Accumulated Other Comprehensive Income Loss	$ 900		$ 1,500
Deferred net gains (losses) expected to be reclassified to earnings	0
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)	$ 0	$ 0
Immateriality of cash flow effectiveness	0	0
Cumulative foreign currency translation gain (loss) recorded in accumulated other comprehensive income (loss) for net investment in foreign operations hedges	$ 152		309
Potential future recoveries available to offset maximum amount of future payments under credit default swaps	16		27
Excess securities collateral provided on derivatives	263		272
Securities collateral received which the company is permitted to sell or repledge, amount that has been sold or repledged	0
Nonperformance Risk [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives gains (losses)	20	$ (52)
Over the Counter [Member]
Derivatives, Fair Value [Line Items]
Excess securities collateral received on derivatives	(74)		(108)
Excess securities collateral provided on derivatives	(301)		(305)
Cash collateral on derivative assets	(4,082)		(4,169)
Exchange-traded
Derivatives, Fair Value [Line Items]
Excess securities collateral received on derivatives	(507)		(522)
Excess securities collateral provided on derivatives	(77)		(89)
Cash collateral on derivative assets	0		0
Cash Flow Hedging [Member] | Discontinued Operations | Brighthouse Financial, Inc
Derivative Instrument Detail [Abstract]
Reduction of Deferred Gains within AOCI		(19)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	0	$ 12
Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Estimated Fair Value Assets	48		75
Estimated Fair Value Liabilities	$ (50)		$ (49)

XML

Fair Value (Recurring Fair Value Measurements) (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Assets [Abstract]
Available-for-sale Securities, Debt Securities	$ 304,711,000,000	$ 308,931,000,000
Available-for-sale Securities, Equity Securities	1,544,000,000	2,513,000,000
Fair Value Option And Trading Securities	16,444,000,000	16,745,000,000
Short-term investments	5,121,000,000	4,870,000,000
Mortgage loans at estimated fair value	71,055,000,000	68,731,000,000
Derivative assets	7,924,000,000	8,551,000,000
Embedded derivatives within asset host contracts	157,000,000	12,000,000
Separate account assets	196,358,000,000	205,001,000,000
Liabilities [Abstract]
Derivative liabilities	4,075,000,000	4,339,000,000
Embedded derivatives within liability host contracts	485,000,000	418,000,000
Separate account liabilities	196,358,000,000	205,001,000,000
Net Embedded Derivatives
Assets [Abstract]
Available-for-sale Securities	0	(132,000,000)
Residential mortgage loans - FVO
Assets [Abstract]
Mortgage loans at estimated fair value	438,000,000	520,000,000
Fair Value Option Contractholder Directed Unit Linked Investments [Member] | Minimum
Assets [Abstract]
Fair Value Option And Trading Securities	0.85	0.85
Recurring
Assets [Abstract]
Available-for-sale Securities, Debt Securities	304,711,000,000	308,931,000,000
Available-for-sale Securities, Equity Securities	1,544,000,000	2,513,000,000
Fair Value Option And Trading Securities	16,444,000,000	16,745,000,000
Other limited partnership interests	194,000,000
Short-term investments	4,450,000,000	4,286,000,000
Other investments	173,000,000	165,000,000
Derivative assets	7,924,000,000	8,551,000,000
Embedded derivatives within asset host contracts	157,000,000	144,000,000
Separate account assets	196,358,000,000	205,001,000,000
Total assets	532,393,000,000	546,856,000,000
Liabilities [Abstract]
Derivative liabilities	4,075,000,000	4,339,000,000
Embedded derivatives within liability host contracts	485,000,000	418,000,000
Total liabilities	4,577,000,000	4,766,000,000
Recurring | Interest rate contracts
Assets [Abstract]
Derivative assets	4,744,000,000	5,563,000,000
Liabilities [Abstract]
Derivative liabilities	594,000,000	772,000,000
Recurring | Foreign currency exchange rate contracts
Assets [Abstract]
Derivative assets	2,277,000,000	2,069,000,000
Liabilities [Abstract]
Derivative liabilities	2,622,000,000	2,590,000,000
Recurring | Credit contracts
Assets [Abstract]
Derivative assets	215,000,000	278,000,000
Liabilities [Abstract]
Derivative liabilities	43,000,000	43,000,000
Recurring | Equity market contracts
Assets [Abstract]
Derivative assets	688,000,000	641,000,000
Liabilities [Abstract]
Derivative liabilities	816,000,000	934,000,000
Recurring | Derivative Liabilities Within Separate Accounts [Member]
Liabilities [Abstract]
Separate account liabilities	17,000,000	9,000,000
Recurring | Residential mortgage loans - FVO
Assets [Abstract]
Mortgage loans at estimated fair value	438,000,000	520,000,000
Recurring | U.S. corporate
Assets [Abstract]
Available-for-sale Securities, Debt Securities	81,834,000,000	82,661,000,000
Recurring | Foreign government
Assets [Abstract]
Available-for-sale Securities, Debt Securities	64,510,000,000	61,534,000,000
Recurring | Foreign corporate
Assets [Abstract]
Available-for-sale Securities, Debt Securities	55,463,000,000	55,569,000,000
Recurring | U.S. government and agency
Assets [Abstract]
Available-for-sale Securities, Debt Securities	43,827,000,000	47,394,000,000
Recurring | RMBS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	27,411,000,000	28,800,000,000
Recurring | State and political subdivision
Assets [Abstract]
Available-for-sale Securities, Debt Securities	12,192,000,000	12,455,000,000
Recurring | ABS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	11,764,000,000	12,291,000,000
Recurring | CMBS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	7,710,000,000	8,227,000,000
Recurring | Level 1
Assets [Abstract]
Available-for-sale Securities, Debt Securities	22,873,000,000	26,052,000,000
Available-for-sale Securities, Equity Securities	909,000,000	1,104,000,000
Fair Value Option And Trading Securities	13,705,000,000	14,028,000,000
Other limited partnership interests	0
Short-term investments	2,845,000,000	3,001,000,000
Other investments	83,000,000	81,000,000
Derivative assets	9,000,000	22,000,000
Embedded derivatives within asset host contracts	0	0
Separate account assets	88,618,000,000	89,916,000,000
Total assets	129,042,000,000	134,204,000,000
Liabilities [Abstract]
Derivative liabilities	30,000,000	8,000,000
Embedded derivatives within liability host contracts	0	0
Total liabilities	30,000,000	8,000,000
Recurring | Level 1 | Interest rate contracts
Assets [Abstract]
Derivative assets	2,000,000	2,000,000
Liabilities [Abstract]
Derivative liabilities	3,000,000	4,000,000
Recurring | Level 1 | Foreign currency exchange rate contracts
Assets [Abstract]
Derivative assets	0	2,000,000
Liabilities [Abstract]
Derivative liabilities	8,000,000	0
Recurring | Level 1 | Credit contracts
Assets [Abstract]
Derivative assets	0	0
Liabilities [Abstract]
Derivative liabilities	0	0
Recurring | Level 1 | Equity market contracts
Assets [Abstract]
Derivative assets	7,000,000	18,000,000
Liabilities [Abstract]
Derivative liabilities	19,000,000	4,000,000
Recurring | Level 1 | Derivative Liabilities Within Separate Accounts [Member]
Liabilities [Abstract]
Separate account liabilities	0	0
Recurring | Level 1 | Residential mortgage loans - FVO
Assets [Abstract]
Mortgage loans at estimated fair value	0	0
Recurring | Level 1 | U.S. corporate
Assets [Abstract]
Available-for-sale Securities, Debt Securities	0	0
Recurring | Level 1 | Foreign government
Assets [Abstract]
Available-for-sale Securities, Debt Securities	0	0
Recurring | Level 1 | Foreign corporate
Assets [Abstract]
Available-for-sale Securities, Debt Securities	0	0
Recurring | Level 1 | U.S. government and agency
Assets [Abstract]
Available-for-sale Securities, Debt Securities	22,873,000,000	26,052,000,000
Recurring | Level 1 | RMBS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	0	0
Recurring | Level 1 | State and political subdivision
Assets [Abstract]
Available-for-sale Securities, Debt Securities	0	0
Recurring | Level 1 | ABS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	0	0
Recurring | Level 1 | CMBS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	0	0
Recurring | Level 2
Assets [Abstract]
Available-for-sale Securities, Debt Securities	266,267,000,000	266,610,000,000
Available-for-sale Securities, Equity Securities	213,000,000	981,000,000
Fair Value Option And Trading Securities	2,453,000,000	2,355,000,000
Other limited partnership interests	0
Short-term investments	990,000,000	1,252,000,000
Other investments	90,000,000	84,000,000
Derivative assets	7,631,000,000	8,295,000,000
Embedded derivatives within asset host contracts	0	0
Separate account assets	106,511,000,000	114,124,000,000
Total assets	384,155,000,000	393,701,000,000
Liabilities [Abstract]
Derivative liabilities	3,579,000,000	3,965,000,000
Embedded derivatives within liability host contracts	0	0
Total liabilities	3,591,000,000	3,972,000,000
Recurring | Level 2 | Interest rate contracts
Assets [Abstract]
Derivative assets	4,728,000,000	5,553,000,000
Liabilities [Abstract]
Derivative liabilities	348,000,000	638,000,000
Recurring | Level 2 | Foreign currency exchange rate contracts
Assets [Abstract]
Derivative assets	2,120,000,000	1,954,000,000
Liabilities [Abstract]
Derivative liabilities	2,585,000,000	2,553,000,000
Recurring | Level 2 | Credit contracts
Assets [Abstract]
Derivative assets	180,000,000	240,000,000
Liabilities [Abstract]
Derivative liabilities	43,000,000	43,000,000
Recurring | Level 2 | Equity market contracts
Assets [Abstract]
Derivative assets	603,000,000	548,000,000
Liabilities [Abstract]
Derivative liabilities	603,000,000	731,000,000
Recurring | Level 2 | Derivative Liabilities Within Separate Accounts [Member]
Liabilities [Abstract]
Separate account liabilities	12,000,000	7,000,000
Recurring | Level 2 | Residential mortgage loans - FVO
Assets [Abstract]
Mortgage loans at estimated fair value	0	0
Recurring | Level 2 | U.S. corporate
Assets [Abstract]
Available-for-sale Securities, Debt Securities	77,597,000,000	78,171,000,000
Recurring | Level 2 | Foreign government
Assets [Abstract]
Available-for-sale Securities, Debt Securities	64,331,000,000	61,325,000,000
Recurring | Level 2 | Foreign corporate
Assets [Abstract]
Available-for-sale Securities, Debt Securities	48,890,000,000	48,840,000,000
Recurring | Level 2 | U.S. government and agency
Assets [Abstract]
Available-for-sale Securities, Debt Securities	20,954,000,000	21,342,000,000
Recurring | Level 2 | RMBS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	24,155,000,000	25,339,000,000
Recurring | Level 2 | State and political subdivision
Assets [Abstract]
Available-for-sale Securities, Debt Securities	12,192,000,000	12,455,000,000
Recurring | Level 2 | ABS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	10,739,000,000	11,204,000,000
Recurring | Level 2 | CMBS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	7,409,000,000	7,934,000,000
Recurring | Level 3
Assets [Abstract]
Available-for-sale Securities, Debt Securities	15,571,000,000	16,269,000,000
Available-for-sale Securities, Equity Securities	422,000,000	428,000,000
Fair Value Option And Trading Securities	286,000,000	362,000,000
Other limited partnership interests	194,000,000
Short-term investments	615,000,000	33,000,000
Other investments	0	0
Derivative assets	284,000,000	234,000,000
Embedded derivatives within asset host contracts	157,000,000	144,000,000
Separate account assets	1,229,000,000	961,000,000
Total assets	19,196,000,000	18,951,000,000
Liabilities [Abstract]
Derivative liabilities	466,000,000	366,000,000
Embedded derivatives within liability host contracts	485,000,000	418,000,000
Total liabilities	956,000,000	786,000,000
Recurring | Level 3 | Interest rate contracts
Assets [Abstract]
Derivative assets	14,000,000	8,000,000
Liabilities [Abstract]
Derivative liabilities	243,000,000	130,000,000
Recurring | Level 3 | Foreign currency exchange rate contracts
Assets [Abstract]
Derivative assets	157,000,000	113,000,000
Liabilities [Abstract]
Derivative liabilities	29,000,000	37,000,000
Recurring | Level 3 | Credit contracts
Assets [Abstract]
Derivative assets	35,000,000	38,000,000
Liabilities [Abstract]
Derivative liabilities	0	0
Recurring | Level 3 | Equity market contracts
Assets [Abstract]
Derivative assets	78,000,000	75,000,000
Liabilities [Abstract]
Derivative liabilities	194,000,000	199,000,000
Recurring | Level 3 | Derivative Liabilities Within Separate Accounts [Member]
Liabilities [Abstract]
Separate account liabilities	5,000,000	2,000,000
Recurring | Level 3 | Residential mortgage loans - FVO
Assets [Abstract]
Mortgage loans at estimated fair value	438,000,000	520,000,000
Recurring | Level 3 | U.S. corporate
Assets [Abstract]
Available-for-sale Securities, Debt Securities	4,237,000,000	4,490,000,000
Recurring | Level 3 | Foreign government
Assets [Abstract]
Available-for-sale Securities, Debt Securities	179,000,000	209,000,000
Recurring | Level 3 | Foreign corporate
Assets [Abstract]
Available-for-sale Securities, Debt Securities	6,573,000,000	6,729,000,000
Recurring | Level 3 | U.S. government and agency
Assets [Abstract]
Available-for-sale Securities, Debt Securities	0	0
Recurring | Level 3 | RMBS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	3,256,000,000	3,461,000,000
Recurring | Level 3 | State and political subdivision
Assets [Abstract]
Available-for-sale Securities, Debt Securities	0	0
Recurring | Level 3 | ABS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	1,025,000,000	1,087,000,000
Recurring | Level 3 | CMBS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	$ 301,000,000	$ 293,000,000

XML

Fair Value (Transfers Between Levels) (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Assets And Liabilities Transferred Between Levels 1 And Levels 2	$ 0	$ 0

XML

Fair Value (Quantitative Information) (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Interest rate contracts | Minimum | Income Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Swap yield	2.77%	2.00%
Repurchase Rate	(0.04%)	(0.05%)
Interest rate contracts | Maximum | Income Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Swap yield	3.13%	3.00%
Repurchase Rate	0.06%	0.05%
Foreign currency exchange rate contracts | Minimum | Income Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Swap yield	(0.19%)	(0.14%)
Foreign currency exchange rate contracts | Maximum | Income Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Swap yield	3.28%	3.09%
Credit contracts | Minimum | Income Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Credit spreads	0.97%	0.00%
Credit contracts | Maximum | Income Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Credit spreads	1.00%	0.00%
Equity market contracts | Minimum | Income Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Volatility	20.00%	11.00%
Correlation	10.00%	10.00%
Equity market contracts | Maximum | Income Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Volatility	31.00%	31.00%
Correlation	30.00%	30.00%
Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Utilization rates	0.00%	0.00%
Withdrawal rates	0.00%	0.00%
Long-term equity volatilities	9.04%	8.25%
Nonperformance risk spread	0.03%	0.02%
Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Durations 1 - 10
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Lapse Rate	0.25%	0.25%
Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Durations 11 - 20
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Lapse Rate	2.00%	2.00%
Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Durations 21 - 116
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Lapse Rate	1.25%	1.25%
Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Ages 0 - 40
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Mortality Rate	0.00%	0.00%
Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Ages 41 - 60
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Mortality Rate	0.03%	0.03%
Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Ages 61 - 115
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Mortality Rate	0.15%	0.15%
Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Utilization rates	25.00%	25.00%
Withdrawal rates	20.00%	20.00%
Long-term equity volatilities	33.00%	33.00%
Nonperformance risk spread	1.75%	1.32%
Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Durations 1 - 10
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Lapse Rate	100.00%	100.00%
Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Durations 11 - 20
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Lapse Rate	100.00%	100.00%
Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Durations 21 - 116
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Lapse Rate	100.00%	100.00%
Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Ages 0 - 40
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Mortality Rate	0.21%	0.21%
Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Ages 41 - 60
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Mortality Rate	0.75%	0.75%
Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Ages 61 - 115
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Mortality Rate	100.00%	100.00%
U.S. corporate and foreign corporate securities | Minimum | Market Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Matrix Pricing - Offered quotes	$ 89	$ 83
Quoted prices	25	10
Offered quotes	97	97
U.S. corporate and foreign corporate securities | Maximum | Market Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Matrix Pricing - Offered quotes	139	142
Quoted prices	846	443
Offered quotes	104	104
U.S. corporate and foreign corporate securities | Weighted Average | Market Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Matrix Pricing - Offered quotes	107	110
Quoted prices	124	121
Offered quotes	102	101
RMBS | Minimum | Market Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Quoted prices	0	0
RMBS | Maximum | Market Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Quoted prices	109	126
RMBS | Weighted Average | Market Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Quoted prices	94	94
ABS | Minimum | Market Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Quoted prices	3	5
Offered quotes	99	100
ABS | Maximum | Market Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Quoted prices	117	117
Offered quotes	102	103
ABS | Weighted Average | Market Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Quoted prices	100	100
Offered quotes	$ 100	$ 100

XML

Fair Value (Unobservable Input Reconciliation) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Residential mortgage loans - FVO
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	$ 520	$ 566
Total realized/unrealized gains (losses) included in net income (loss)	2	(3)
Total realized/unrealized gains (losses) included in AOCI	0	0
Purchases	0	135
Sales	(64)	(33)
Issuances	0	0
Settlements	(20)	(26)
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Balance, end of period	438	639
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	(8)	(3)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	(8)	(3)
Net Derivatives
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	48	26
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Balance, beginning of period	(132)	(562)
Total realized/unrealized gains (losses) included in net income (loss)	11	33
Total realized/unrealized gains (losses) included in AOCI	(104)	44
Purchases	0	0
Sales	0	0
Issuances	0	(7)
Settlements	43	95
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Balance, end of period	(182)	(397)
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	48	26
Net Embedded Derivatives
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	31	167
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Balance, beginning of period	(274)	(729)
Total realized/unrealized gains (losses) included in net income (loss)	36	169
Total realized/unrealized gains (losses) included in AOCI	(16)	(59)
Purchases	0	0
Sales	0	0
Issuances	0	0
Settlements	(74)	(76)
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Balance, end of period	(328)	(695)
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	31	167
Corporate fixed maturity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	11,219	11,537
Total realized/unrealized gains (losses) included in net income (loss)	7	4
Total realized/unrealized gains (losses) included in AOCI	(68)	231
Purchases	512	941
Sales	(542)	(418)
Issuances	0	0
Settlements	0	0
Transfers into Level 3	46	79
Transfers out of Level 3	(364)	(1,406)
Balance, end of period	10,810	10,968
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	1	4
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	1	4
Foreign government
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	209	289
Total realized/unrealized gains (losses) included in net income (loss)	1	3
Total realized/unrealized gains (losses) included in AOCI	(3)	6
Purchases	2	12
Sales	(2)	(17)
Issuances	0	0
Settlements	0	0
Transfers into Level 3	0	4
Transfers out of Level 3	(28)	(8)
Balance, end of period	179	289
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	1	2
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	1	2
Structured Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	4,841	5,215
Total realized/unrealized gains (losses) included in net income (loss)	23	32
Total realized/unrealized gains (losses) included in AOCI	24	48
Purchases	657	1,020
Sales	(324)	(400)
Issuances	0	0
Settlements	0	0
Transfers into Level 3	45	23
Transfers out of Level 3	(684)	(233)
Balance, end of period	4,582	5,705
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	21	24
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	21	24
State and political subdivision
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	0	10
Total realized/unrealized gains (losses) included in net income (loss)	0	0
Total realized/unrealized gains (losses) included in AOCI	0	0
Purchases	0	0
Sales	0	0
Issuances	0	0
Settlements	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	(10)
Balance, end of period	0	0
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	0	0
Equity Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	428	468
Total realized/unrealized gains (losses) included in net income (loss)	(6)	(10)
Total realized/unrealized gains (losses) included in AOCI	0	22
Purchases	1	1
Sales	(1)	(1)
Issuances	0	0
Settlements	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Balance, end of period	422	480
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	0	(10)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	0	(10)
FVO Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	362	287
Total realized/unrealized gains (losses) included in net income (loss)	5	7
Total realized/unrealized gains (losses) included in AOCI	0	0
Purchases	27	69
Sales	(59)	(17)
Issuances	0	0
Settlements	0	0
Transfers into Level 3	0	2
Transfers out of Level 3	(49)	(13)
Balance, end of period	286	335
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	4	7
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	4	7
Other limited partnership interests
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	0	0
Total realized/unrealized gains (losses) included in net income (loss)	(5)	0
Total realized/unrealized gains (losses) included in AOCI	2	0
Purchases	0	0
Sales	(19)	0
Issuances	0	0
Settlements	0	0
Transfers into Level 3	216	0
Transfers out of Level 3	0	0
Balance, end of period	194	0
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	(5)	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	(5)	0
Short-term Investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	33	46
Total realized/unrealized gains (losses) included in net income (loss)	0	0
Total realized/unrealized gains (losses) included in AOCI	0	0
Purchases	605	776
Sales	(3)	(3)
Issuances	0	0
Settlements	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	(20)	(40)
Balance, end of period	615	779
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	0	0
Separate Accounts
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	959	1,141
Total realized/unrealized gains (losses) included in net income (loss)	2	(24)
Total realized/unrealized gains (losses) included in AOCI	0	0
Purchases	409	136
Sales	(124)	(42)
Issuances	1	39
Settlements	(1)	(33)
Transfers into Level 3	53	69
Transfers out of Level 3	(75)	(102)
Balance, end of period	1,224	1,184
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period	$ 0	$ 0

XML

Fair Value (Fair Value Option for Residential Mortgage Loans) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Option, Quantitative Disclosures [Line Items]
Carrying value at estimated fair value	$ 71,055	$ 68,731
Residential mortgage loans - FVO
Fair Value, Option, Quantitative Disclosures [Line Items]
Unpaid principal balance	544	650
Difference between estimated fair value and unpaid principal balance	(106)	(130)
Carrying value at estimated fair value	438	520
Loans in nonaccrual status	159	198
Loans more than 90 Days past due	78	94
Loans in nonaccrual status or more than 90 days past due, or both	$ (82)	$ (102)

XML

Fair Value (Financial Instruments Carried at Other Than Fair Value) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Assets
Policy loans	$ 9,744	$ 9,669
Liabilities
Collateral financing arrangement	1,108	1,121
Junior subordinated debt securities	3,145	3,144
Separate account liabilities	196,358	205,001
Carrying Value
Assets
Mortgage loans	70,617	68,211
Policy loans	9,744	9,669
Other limited partnership interests		219
Other invested assets	1,264	443
Premiums, reinsurance and other receivables	4,358	4,155
Other assets	345	285
Liabilities
Policyholder account balances	114,715	114,355
Long-term debt	15,696	15,675
Collateral financing arrangement	1,108	1,121
Junior subordinated debt securities	3,145	3,144
Other liabilities	3,810	3,208
Separate account liabilities	118,151	124,011
Estimated Fair Value
Assets
Mortgage loans	71,845	69,797
Policy loans	11,423	11,512
Other limited partnership interests		216
Other invested assets	1,264	443
Premiums, reinsurance and other receivables	4,475	4,339
Other assets	374	328
Liabilities
Policyholder account balances	116,193	116,534
Long-term debt	16,973	17,773
Collateral financing arrangement	898	894
Junior subordinated debt securities	4,073	4,319
Other liabilities	4,365	3,841
Separate account liabilities	118,151	124,011
Estimated Fair Value | Level 1
Assets
Mortgage loans	0	0
Policy loans	0	0
Other limited partnership interests		0
Other invested assets	0	0
Premiums, reinsurance and other receivables	0	0
Other assets	0	0
Liabilities
Policyholder account balances	0	0
Long-term debt	0	0
Collateral financing arrangement	0	0
Junior subordinated debt securities	0	0
Other liabilities	0	0
Separate account liabilities	0	0
Estimated Fair Value | Level 2
Assets
Mortgage loans	0	0
Policy loans	341	336
Other limited partnership interests		0
Other invested assets	812	0
Premiums, reinsurance and other receivables	1,450	1,283
Other assets	175	189
Liabilities
Policyholder account balances	0	0
Long-term debt	16,973	17,773
Collateral financing arrangement	0	0
Junior subordinated debt securities	4,073	4,319
Other liabilities	2,113	1,496
Separate account liabilities	118,151	124,011
Estimated Fair Value | Level 3
Assets
Mortgage loans	71,845	69,797
Policy loans	11,082	11,176
Other limited partnership interests		216
Other invested assets	452	443
Premiums, reinsurance and other receivables	3,025	3,056
Other assets	199	139
Liabilities
Policyholder account balances	116,193	116,534
Long-term debt	0	0
Collateral financing arrangement	898	894
Junior subordinated debt securities	0	0
Other liabilities	2,252	2,345
Separate account liabilities	$ 0	$ 0

XML

Junior Subordinated Debt Securities (Details) - Junior Subordinated Debt Instrument Two [Member] $ in Millions	Feb. 10, 2017 USD ($)
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 750
Debt Instrument, Interest Rate, Stated Percentage	9.25%

XML

Equity (Preferred Stock) (Details) - shares	Mar. 31, 2018	Dec. 31, 2017
Class of Stock [Line Items]
Preferred Stock, Shares Authorized	200,000,000	200,000,000
Preferred Stock, Shares Issued	26,000,000	25,500,000
Preferred Stock, Shares Outstanding	26,000,000	25,500,000
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Preferred Stock, Shares Authorized	27,600,000	27,600,000
Preferred Stock, Shares Issued	24,000,000	24,000,000
Preferred Stock, Shares Outstanding	24,000,000	24,000,000
Series C Preferred Stock
Class of Stock [Line Items]
Preferred Stock, Shares Authorized	1,500,000	1,500,000
Preferred Stock, Shares Issued	1,500,000	1,500,000
Preferred Stock, Shares Outstanding	1,500,000	1,500,000
Series D Preferred Stock [Member]
Class of Stock [Line Items]
Preferred Stock, Shares Authorized	500,000	0
Preferred Stock, Shares Issued	500,000	0
Preferred Stock, Shares Outstanding	500,000	0
Series A Junior Preferred Stock
Class of Stock [Line Items]
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Not Designated Preferred Stock
Class of Stock [Line Items]
Preferred Stock, Shares Authorized	160,400,000	160,900,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0

XML

Equity (Preferred Stock - Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Nov. 01, 2017
Class of Stock [Line Items]
Stock Repurchase Program, Authorized Amount				$ 2,000
Preferred Stock, Shares Issued	26,000,000		25,500,000
Preferred Stock, Par or Stated Value Per Share	$ 0.01		$ 0.01
Preferred Stock, Liquidation Preference Per Share	$ 2,600		$ 2,100
Proceeds from Issuance of Preferred Stock and Preference Stock	$ 494	$ 0
Series D Preferred Stock [Member]
Class of Stock [Line Items]
Preferred Stock, Shares Issued	500,000		0
Preferred Stock, Dividend Payment Rate, Variable	5.875% Fixed-to-Floating Rate
Preferred Stock, Par or Stated Value Per Share	$ 0.01
Preferred Stock, Liquidation Preference Per Share	$ 1,000
Proceeds from Issuance of Preferred Stock and Preference Stock	$ 494
Payments of Stock Issuance Costs	$ 6
Fixed Rate [Member] | Series D Preferred Stock [Member]
Class of Stock [Line Items]
Preferred Stock, Dividend Payment Rate, Variable	0.05875
Variable Rate [Member] | Series D Preferred Stock [Member]
Class of Stock [Line Items]
Preferred Stock, Dividend Payment Rate, Variable	LIBOR plus 2.959%
RatingAgency [Member] | Series D Preferred Stock [Member]
Class of Stock [Line Items]
Preferred Stock, Liquidation Preference Per Share	$ 1,020

XML

Equity (Common Stock - Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Equity [Abstract]
Treasury Stock, Shares, Acquired	21,405,327	16,038,791
Treasury Stock, Value, Acquired, Cost Method	$ 1,041	$ 858
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 720

XML

Equity (Stock-Based Compensation Plans - Narrative) (Details) - shares	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Minimum
Equity - Stock-based Compensation Plans [Line Items]
Future Performance Factor		0.00%
Maximum
Equity - Stock-based Compensation Plans [Line Items]
Future Performance Factor		175.00%
Performance Shares
Equity - Stock-based Compensation Plans [Line Items]
Performance Factor		46.30%
Vested in period		1,194,283
Issued in period	552,953
Performance Units
Equity - Stock-based Compensation Plans [Line Items]
Vested in period		186,085
Paid in period	86,157

XML

Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	$ 7,427	$ 5,366
OCI before reclassifications	(3,615)	1,241
Deferred income tax benefit (expense)	897	(222)
AOCI before reclassifications, net of income tax	4,709	6,385
Amounts reclassified from AOCI	(89)	11
Deferred income tax benefit (expense)	10	0
Amounts reclassified from AOCI, net of income tax	(79)	11
Balance, end of period	5,634	6,396
Unrealized Investment Gains (Losses), Net of Related Offsets
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	12,757	10,785
OCI before reclassifications	(3,811)	703
Deferred income tax benefit (expense)	835	(273)
AOCI before reclassifications, net of income tax	9,781	11,215
Amounts reclassified from AOCI	45	196
Deferred income tax benefit (expense)	(10)	(75)
Amounts reclassified from AOCI, net of income tax	35	121
Balance, end of period	10,864	11,336
Unrealized Gains (Losses) on Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	905	1,865
OCI before reclassifications	(352)	210
Deferred income tax benefit (expense)	58	(73)
AOCI before reclassifications, net of income tax	611	2,002
Amounts reclassified from AOCI	(165)	(229)
Deferred income tax benefit (expense)	27	80
Amounts reclassified from AOCI, net of income tax	(138)	(149)
Balance, end of period	683	1,853
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(4,390)	(5,312)
OCI before reclassifications	552	348
Deferred income tax benefit (expense)	3	122
AOCI before reclassifications, net of income tax	(3,835)	(4,842)
Amounts reclassified from AOCI	0	0
Deferred income tax benefit (expense)	0	0
Amounts reclassified from AOCI, net of income tax	0	0
Balance, end of period	(3,707)	(4,842)
Defined Benefit Plans Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(1,845)	(1,972)
OCI before reclassifications	(4)	(20)
Deferred income tax benefit (expense)	1	2
AOCI before reclassifications, net of income tax	(1,848)	(1,990)
Amounts reclassified from AOCI	31	44
Deferred income tax benefit (expense)	(7)	(5)
Amounts reclassified from AOCI, net of income tax	24	39
Balance, end of period	(2,206)	$ (1,951)
Accounting Standards Update 2016-01
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from AOCI	(425)
Deferred income tax benefit (expense)	1,337
Amounts reclassified from AOCI, net of income tax	912
Accounting Standards Update 2016-01 | Unrealized Investment Gains (Losses), Net of Related Offsets
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from AOCI	(425)
Deferred income tax benefit (expense)	1,473
Amounts reclassified from AOCI, net of income tax	1,048
Accounting Standards Update 2016-01 | Unrealized Gains (Losses) on Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from AOCI	0
Deferred income tax benefit (expense)	210
Amounts reclassified from AOCI, net of income tax	210
Accounting Standards Update 2016-01 | Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from AOCI	0
Deferred income tax benefit (expense)	36
Amounts reclassified from AOCI, net of income tax	36
Accounting Standards Update 2016-01 | Defined Benefit Plans Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from AOCI	0
Deferred income tax benefit (expense)	(382)
Amounts reclassified from AOCI, net of income tax	(382)
MetLife Afore [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from AOCI, net of income tax	92
MetLife Afore [Member] | Unrealized Investment Gains (Losses), Net of Related Offsets
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from AOCI, net of income tax	0
MetLife Afore [Member] | Unrealized Gains (Losses) on Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from AOCI, net of income tax	0
MetLife Afore [Member] | Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from AOCI, net of income tax	92
MetLife Afore [Member] | Defined Benefit Plans Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from AOCI, net of income tax	$ 0

XML

Equity (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment gains (losses)	$ (333)	$ 88
Net investment income	3,745	4,421
Net derivative gains (losses)	349	(212)
Income (loss) from discontinued operations, net of income tax	0	(76)
Other expenses	(3,365)	(3,268)
Income (loss) from continuing operations before provision for income tax	1,656	1,072
Provision for income tax expense (benefit)	(399)	(120)
Net income (loss)	1,257	876
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income (loss)	79	(11)
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Investment Gains (Losses), Net of Related Offsets
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment gains (losses)	(101)	40
Net investment income	3	6
Net derivative gains (losses)	53	(151)
Income (loss) from continuing operations before provision for income tax	(45)	(196)
Provision for income tax expense (benefit)	10	75
Net income (loss)	(35)	(121)
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) from continuing operations before provision for income tax	165	229
Provision for income tax expense (benefit)	(27)	(80)
Net income (loss)	138	149
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Interest rate swaps
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment income	3	4
Net derivative gains (losses)	16	8
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Interest rate forwards
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment income	1	0
Net derivative gains (losses)	5	(4)
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Foreign currency swaps
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net derivative gains (losses)	139	208
Other expenses	1	1
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Plans Adjustment
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of net actuarial gains (losses)	(36)	(49)
Amortization of prior service (costs) credit	5	5
Income (loss) from continuing operations before provision for income tax	(31)	(44)
Provision for income tax expense (benefit)	7	5
Net income (loss)	(24)	(39)
Brighthouse Financial, Inc
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment gains (losses)	(168)
Brighthouse Financial, Inc | Reclassification out of Accumulated Other Comprehensive Income | Unrealized Investment Gains (Losses), Net of Related Offsets
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) from discontinued operations, net of income tax	0	(91)
Brighthouse Financial, Inc | Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Interest rate swaps
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) from discontinued operations, net of income tax	0	1
Brighthouse Financial, Inc | Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Interest rate forwards
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) from discontinued operations, net of income tax	0	1
Brighthouse Financial, Inc | Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Foreign currency swaps
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) from discontinued operations, net of income tax	$ 0	$ 10

XML

Other Expenses (Other Expenses) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Other Income and Expenses [Abstract]
Employee related costs	$ 937	$ 937
Third party staffing costs	380	362
General and administrative expenses	243	221
Pension, postretirement and postemployment benefit costs	49	79
Premium taxes, other taxes, and licenses & fees	179	175
Commissions and other variable expenses	1,416	1,304
Capitalization of DAC	(796)	(713)
Amortization of DAC and VOBA	693	663
Amortization of negative VOBA	(22)	(43)
Interest expense on debt	286	283
Total other expenses	$ 3,365	$ 3,268

XML

Other Expenses (Restructuring Charges) (Details) - Unit Cost Initiative - Other expenses - Severance - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Restructuring Cost and Reserve [Line Items]
Balance, beginning of period	$ 22	$ 35
Restructuring charges	9	11
Cash payments	(12)	(8)
Balance, end of period	19	38
Total restructuring charges incurred since inception of initiative	$ 82	$ 46

XML

Employee Benefit Plans (Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Pension Benefits
Net periodic benefit costs [Abstract]
Service costs	$ 60	$ 61
Interest costs	96	106
Expected return on plan assets	(133)	(130)
Amortization of net actuarial (gains) losses	44	49
Amortization of prior service costs (credit)	0	0
Net periodic benefit costs (credit)	67	86
Other Postretirement Benefits
Net periodic benefit costs [Abstract]
Service costs	1	1
Interest costs	11	19
Expected return on plan assets	(18)	(18)
Amortization of net actuarial (gains) losses	(8)	0
Amortization of prior service costs (credit)	(5)	(5)
Net periodic benefit costs (credit)	$ (19)	$ (3)

XML

Income Tax (Narrative) (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Federal corporate income tax rate	21.00%	35.00%
Other Assets
Transition tax rate		8.00%
Cash and Cash Equivalents
Transition tax rate		15.50%

XML

Earnings Per Common Share (Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Weighted Average Shares:
Weighted average common stock outstanding for basic earnings per common share	1,035.9	1,090.4
Incremental common shares from assumed exercise or issuance of stock-based awards	8.5	8.3
Weighted average common stock outstanding for diluted earnings per common share	1,044.4	1,098.7
Income (Loss) from Continuing Operations:
Income (loss) from continuing operations, net of income tax	$ 1,257	$ 952
Less: Income (loss) from continuing operations, net of income tax, attributable to noncontrolling interests	4	3
Less: Preferred stock dividends	6	6
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.'s common shareholders	$ 1,247	$ 943
Basic	$ 1.20	$ 0.87
Diluted	$ 1.19	$ 0.86
Income (Loss) from Discontinued Operations:
Income (loss) from discontinued operations, net of income tax	$ 0	$ (76)
Less: Income (loss) from discontinued operations, net of income tax, attributable to noncontrolling interests	0	0
Income (loss) from discontinued operations, net of income tax, available to MetLife, Inc.’s common shareholders	$ 0	$ (76)
Basic	$ 0.00	$ (0.07)
Diluted	$ 0.00	$ (0.07)
Net Income (Loss):
Net income (loss)	$ 1,257	$ 876
Less: Net income (loss) attributable to noncontrolling interests	4	3
Less: Preferred stock dividends	6	6
Net income (loss) available to MetLife, Inc.’s common shareholders	$ 1,247	$ 867
Basic	$ 1.20	$ 0.80
Diluted	$ 1.19	$ 0.79

XML

Contingencies, Commitments and Guarantees (Contingencies - Narrative) (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018 USD ($) Claims	Mar. 31, 2017 Claims	Dec. 31, 2017 USD ($) Claims
Loss Contingencies
Reserves for Group Annuity products			$ 510,000
Assumed variable annuity guarantee reserves			$ 896,000
Minimum
Loss Contingencies
Loss Contingency, Range of Possible Loss, Portion Not Accrued	$ 0
Maximum
Loss Contingencies
Loss Contingency, Range of Possible Loss, Portion Not Accrued	$ 700,000
Asbestos Related Claims
Loss Contingencies
Asbestos-Related Claims | Claims	823	1,104	3,514
Superfund Site Settlement Agreements
Loss Contingencies
Number of regulatory matters and other claims | Claims	2
Superfund Site Settlement Agreements | Maximum
Loss Contingencies
Maximum estimate of aggregate costs to resolve matter	$ 300

XML

Contingencies, Commitments and Guarantees (Commitments and Guarantees - Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Liabilities for indemnities, guarantees and commitments	$ 7	$ 5
Cumulative maximum indemnities and guarantees contractual limitation	775
Minimum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Indemnities and guarantees contractual limitation range	1
Maximum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Indemnities and guarantees contractual limitation range	329
Mortgage Loan Commitments
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	3,700	3,400
Commitments to Fund Partnership Investments, Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	$ 6,100	$ 6,100

XML

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Mar. 31, 2017
Subsequent Event [Line Items]
Treasury Stock, Shares, Acquired		21,405,327	16,038,791
Treasury Stock, Value, Acquired, Cost Method		$ 1,041	$ 858
Estimated aggregate dividend payment		$ 416	$ 437
Subsequent Event [Member]
Subsequent Event [Line Items]
Treasury Stock, Shares, Acquired	7,630,398
Treasury Stock, Value, Acquired, Cost Method	$ 350
Approved dividend, amount per share	$ 0.42
Estimated aggregate dividend payment	$ 428