(Mark One) | ||
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2011 | ||
OR
|
||
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
FOR THE TRANSITION PERIOD FROM TO |
Delaware
(State or other jurisdiction of incorporation or organization) |
13-4075851 (I.R.S. Employer Identification No.) |
|
200 Park Avenue, New York, N.Y.
(Address of principal executive offices) |
10166-0188 (Zip Code) |
Large accelerated filer
þ
|
Accelerated filer o | |
Non-accelerated filer
o (Do
not check if a smaller reporting company)
|
Smaller reporting company o |
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E-1 | ||||||||
EX-10.2 | ||||||||
EX-10.3 | ||||||||
EX-10.4 | ||||||||
EX-31.1 | ||||||||
EX-31.2 | ||||||||
EX-32.1 | ||||||||
EX-32.2 | ||||||||
EX-101 INSTANCE DOCUMENT | ||||||||
EX-101 SCHEMA DOCUMENT | ||||||||
EX-101 CALCULATION LINKBASE DOCUMENT | ||||||||
EX-101 LABELS LINKBASE DOCUMENT | ||||||||
EX-101 PRESENTATION LINKBASE DOCUMENT | ||||||||
EX-101 DEFINITION LINKBASE DOCUMENT |
2
3
| should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate; | |
| have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement; | |
| may apply standards of materiality in a way that is different from what may be viewed as material to investors; and | |
| were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments. |
4
Item 1. | Financial Statements |
September 30, 2011 | December 31, 2010 | |||||||
Assets
|
||||||||
Investments:
|
||||||||
Fixed maturity securities
available-for-sale,
at estimated fair value (amortized cost: $334,009 and $317,617,
respectively; includes $3,265 and $3,330, respectively, relating
to variable interest entities)
|
$ | 353,927 | $ | 324,797 | ||||
Equity securities
available-for-sale,
at estimated fair value (cost: $3,227 and $3,621, respectively)
|
3,118 | 3,602 | ||||||
Trading and other securities, at estimated fair value (includes
$415 and $463, respectively, of actively traded securities; and
$321 and $387, respectively, relating to variable interest
entities)
|
18,698 | 18,589 | ||||||
Mortgage loans:
|
||||||||
Held-for-investment,
principally at amortized cost (net of valuation allowances of
$529 and $664, respectively; includes $3,277 and $6,840,
respectively, at estimated fair value, relating to variable
interest entities)
|
59,209 | 58,976 | ||||||
Held-for-sale,
principally at estimated fair value
|
3,740 | 3,321 | ||||||
Mortgage loans, net
|
62,949 | 62,297 | ||||||
Policy loans
|
11,932 | 11,761 | ||||||
Real estate and real estate joint ventures (includes $12 and
$10, respectively, relating to variable interest entities)
|
8,197 | 8,030 | ||||||
Other limited partnership interests (includes $319 and $298,
respectively, relating to variable interest entities)
|
6,538 | 6,416 | ||||||
Short-term investments, principally at estimated fair value
|
15,913 | 9,384 | ||||||
Other invested assets, principally at estimated fair value
(includes $98 and $104, respectively, relating to variable
interest entities)
|
23,138 | 15,430 | ||||||
Total investments
|
504,410 | 460,306 | ||||||
Cash and cash equivalents, principally at estimated fair value
(includes $37 and $69, respectively, relating to variable
interest entities)
|
10,001 | 12,957 | ||||||
Accrued investment income (includes $17 and $34, respectively,
relating to variable interest entities)
|
4,793 | 4,328 | ||||||
Premiums, reinsurance and other receivables (includes $2 and $2,
respectively, relating to variable interest entities)
|
23,137 | 19,799 | ||||||
Deferred policy acquisition costs and value of business acquired
|
27,623 | 27,092 | ||||||
Goodwill
|
12,006 | 11,781 | ||||||
Other assets (includes $5 and $6, respectively, relating to
variable interest entities)
|
8,340 | 8,174 | ||||||
Assets of subsidiaries
held-for-sale
|
3,421 | 3,331 | ||||||
Separate account assets
|
191,499 | 183,138 | ||||||
Total assets
|
$ | 785,230 | $ | 730,906 | ||||
Liabilities and Equity
|
||||||||
Liabilities
|
||||||||
Future policy benefits
|
$ | 182,736 | $ | 170,912 | ||||
Policyholder account balances
|
217,764 | 210,757 | ||||||
Other policy-related balances
|
15,451 | 15,750 | ||||||
Policyholder dividends payable
|
871 | 830 | ||||||
Policyholder dividend obligation
|
2,782 | 876 | ||||||
Payables for collateral under securities loaned and other
transactions
|
34,933 | 27,272 | ||||||
Bank deposits
|
10,685 | 10,316 | ||||||
Short-term debt
|
451 | 306 | ||||||
Long-term debt (includes $3,158 and $6,902, respectively, at
estimated fair value, relating to variable interest entities)
|
24,753 | 27,586 | ||||||
Collateral financing arrangements
|
5,297 | 5,297 | ||||||
Junior subordinated debt securities
|
3,192 | 3,191 | ||||||
Current income tax payable
|
385 | 297 | ||||||
Deferred income tax liability
|
7,214 | 1,856 | ||||||
Other liabilities (includes $73 and $93, respectively, relating
to variable interest entities)
|
23,121 | 20,366 | ||||||
Liabilities of subsidiaries
held-for-sale
|
3,221 | 3,043 | ||||||
Separate account liabilities
|
191,499 | 183,138 | ||||||
Total liabilities
|
724,355 | 681,793 | ||||||
Contingencies, Commitments and Guarantees (Note 9)
|
||||||||
Redeemable noncontrolling interests in partially owned
consolidated subsidiaries
|
130 | 117 | ||||||
Equity
|
||||||||
MetLife, Inc.s stockholders equity:
|
||||||||
Preferred stock, par value $0.01 per share;
200,000,000 shares authorized:
|
||||||||
Preferred stock, 84,000,000 shares issued and outstanding;
$2,100 aggregate liquidation preference
|
1 | 1 | ||||||
Convertible preferred stock, 0 and 6,857,000 shares issued
and outstanding at September 30, 2011 and December 31,
2010, respectively
|
| | ||||||
Common stock, par value $0.01 per share;
3,000,000,000 shares authorized; 1,060,754,366 and
989,031,704 shares issued at September 30, 2011
and December 31, 2010, respectively; 1,057,560,479 and
985,837,817 shares outstanding at September 30, 2011
and
December 31, 2010, respectively |
11 | 10 | ||||||
Additional paid-in capital
|
26,744 | 26,423 | ||||||
Retained earnings
|
26,951 | 21,363 | ||||||
Treasury stock, at cost; 3,193,887 shares at
September 30, 2011 and December 31, 2010
|
(172 | ) | (172 | ) | ||||
Accumulated other comprehensive income (loss)
|
6,813 | 1,000 | ||||||
Total MetLife, Inc.s stockholders equity
|
60,348 | 48,625 | ||||||
Noncontrolling interests
|
397 | 371 | ||||||
Total equity
|
60,745 | 48,996 | ||||||
Total liabilities and equity
|
$ | 785,230 | $ | 730,906 | ||||
5
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues
|
||||||||||||||||
Premiums
|
$ | 9,342 | $ | 6,484 | $ | 27,190 | $ | 19,856 | ||||||||
Universal life and investment-type product policy fees
|
1,998 | 1,452 | 5,856 | 4,339 | ||||||||||||
Net investment income
|
4,257 | 4,364 | 14,669 | 12,745 | ||||||||||||
Other revenues
|
720 | 624 | 1,878 | 1,681 | ||||||||||||
Net investment gains (losses):
|
||||||||||||||||
Other-than-temporary
impairments on fixed maturity securities
|
(95 | ) | (143 | ) | (525 | ) | (538 | ) | ||||||||
Other-than-temporary
impairments on fixed maturity securities transferred to other
comprehensive income (loss)
|
(189 | ) | 24 | (5 | ) | 181 | ||||||||||
Other net investment gains (losses)
|
229 | (223 | ) | 221 | 33 | |||||||||||
Total net investment gains (losses)
|
(55 | ) | (342 | ) | (309 | ) | (324 | ) | ||||||||
Net derivative gains (losses)
|
4,196 | (244 | ) | 4,233 | 1,278 | |||||||||||
Total revenues
|
20,458 | 12,338 | 53,517 | 39,575 | ||||||||||||
Expenses
|
||||||||||||||||
Policyholder benefits and claims
|
9,017 | 7,309 | 26,367 | 21,703 | ||||||||||||
Interest credited to policyholder account balances
|
738 | 1,264 | 4,104 | 3,454 | ||||||||||||
Policyholder dividends
|
384 | 391 | 1,130 | 1,156 | ||||||||||||
Other expenses
|
5,013 | 2,989 | 13,410 | 9,330 | ||||||||||||
Total expenses
|
15,152 | 11,953 | 45,011 | 35,643 | ||||||||||||
Income (loss) from continuing operations before provision for
income tax
|
5,306 | 385 | 8,506 | 3,932 | ||||||||||||
Provision for income tax expense (benefit)
|
1,734 | 68 | 2,681 | 1,251 | ||||||||||||
Income (loss) from continuing operations, net of income tax
|
3,572 | 317 | 5,825 | 2,681 | ||||||||||||
Income (loss) from discontinued operations, net of income tax
|
4 | 3 | (6 | ) | 20 | |||||||||||
Net income (loss)
|
3,576 | 320 | 5,819 | 2,701 | ||||||||||||
Less: Net income (loss) attributable to noncontrolling interests
|
(6 | ) | 4 | (6 | ) | (7 | ) | |||||||||
Net income (loss) attributable to MetLife, Inc.
|
3,582 | 316 | 5,825 | 2,708 | ||||||||||||
Less: Preferred stock dividends
|
30 | 30 | 91 | 91 | ||||||||||||
Preferred stock redemption premium
|
| | 146 | | ||||||||||||
Net income (loss) available to MetLife, Inc.s common
shareholders
|
$ | 3,552 | $ | 286 | $ | 5,588 | $ | 2,617 | ||||||||
Income (loss) from continuing operations, net of income tax,
available to MetLife, Inc.s common shareholders per common
share:
|
||||||||||||||||
Basic
|
$ | 3.35 | $ | 0.33 | $ | 5.29 | $ | 3.09 | ||||||||
Diluted
|
$ | 3.33 | $ | 0.32 | $ | 5.24 | $ | 3.07 | ||||||||
Net income (loss) available to MetLife, Inc.s common
shareholders per common share:
|
||||||||||||||||
Basic
|
$ | 3.35 | $ | 0.33 | $ | 5.28 | $ | 3.11 | ||||||||
Diluted
|
$ | 3.33 | $ | 0.32 | $ | 5.23 | $ | 3.09 | ||||||||
6
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net |
Foreign |
Defined |
Total |
|||||||||||||||||||||||||||||||||||||||||||||||||
Convertible |
Additional |
Treasury |
Unrealized |
Other-Than- |
Currency |
Benefit |
MetLife, Inc.s |
|||||||||||||||||||||||||||||||||||||||||||||
Preferred |
Preferred |
Common |
Paid-in |
Retained |
Stock |
Investment |
Temporary |
Translation |
Plans |
Stockholders |
Noncontrolling |
Total |
||||||||||||||||||||||||||||||||||||||||
Stock | Stock | Stock | Capital | Earnings | at Cost | Gains (Losses) | Impairments | Adjustments | Adjustment | Equity | Interests (1) | Equity | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2010
|
$ | 1 | $ | | $ | 10 | $ | 26,423 | $ | 21,363 | $ | (172 | ) | $ | 3,356 | $ | (366 | ) | $ | (541 | ) | $ | (1,449 | ) | $ | 48,625 | $ | 371 | $ | 48,996 | ||||||||||||||||||||||
Redemption of convertible preferred stock
|
| (2,805 | ) | (2,805 | ) | (2,805 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Preferred stock redemption premium
|
(146 | ) | (146 | ) | (146 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Common stock issuance newly issued shares
|
1 | 2,949 | 2,950 | 2,950 | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation
|
177 | 177 | 177 | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock
|
(91 | ) | (91 | ) | (91 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Change in equity of noncontrolling interests
|
48 | 48 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss)
|
5,825 | 5,825 | 1 | 5,826 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) on derivative instruments, net of
income tax
|
1,005 | 1,005 | 1,005 | |||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized investment gains (losses), net of related offsets and
income tax
|
4,503 | (51 | ) | 4,452 | (5 | ) | 4,447 | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of income tax
|
291 | 291 | (18 | ) | 273 | |||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit plans adjustment, net of income tax
|
65 | 65 | 65 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss)
|
5,813 | (23 | ) | 5,790 | ||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss)
|
11,638 | (22 | ) | 11,616 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2011
|
$ | 1 | $ | | $ | 11 | $ | 26,744 | $ | 26,951 | $ | (172 | ) | $ | 8,864 | $ | (417 | ) | $ | (250 | ) | $ | (1,384 | ) | $ | 60,348 | $ | 397 | $ | 60,745 | ||||||||||||||||||||||
(1) | Net income (loss) attributable to noncontrolling interests excludes gains (losses) of redeemable noncontrolling interests in partially owned consolidated subsidiaries of ($7) million. |
7
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net |
Foreign |
Defined |
Total |
|||||||||||||||||||||||||||||||||||||||||||||
Additional |
Treasury |
Unrealized |
Other-Than- |
Currency |
Benefit |
MetLife, Inc.s |
||||||||||||||||||||||||||||||||||||||||||
Preferred |
Common |
Paid-in |
Retained |
Stock |
Investment |
Temporary |
Translation |
Plans |
Stockholders |
Noncontrolling |
Total |
|||||||||||||||||||||||||||||||||||||
Stock | Stock | Capital | Earnings | at Cost | Gains (Losses) | Impairments | Adjustments | Adjustment | Equity | Interests | Equity | |||||||||||||||||||||||||||||||||||||
Balance at December 31, 2009
|
$ | 1 | $ | 8 | $ | 16,859 | $ | 19,501 | $ | (190 | ) | $ | (817 | ) | $ | (513 | ) | $ | (183 | ) | $ | (1,545 | ) | $ | 33,121 | $ | 377 | $ | 33,498 | |||||||||||||||||||
Cumulative effect of change in accounting principle, net of
income tax
|
(12 | ) | 31 | 11 | 30 | 30 | ||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2010
|
1 | 8 | 16,859 | 19,489 | (190 | ) | (786 | ) | (502 | ) | (183 | ) | (1,545 | ) | 33,151 | 377 | 33,528 | |||||||||||||||||||||||||||||||
Cumulative effect of change in accounting principle, net of
income tax
|
(10 | ) | 10 | | | |||||||||||||||||||||||||||||||||||||||||||
Common stock issuance newly issued shares
|
1 | 3,528 | 3,529 | 3,529 | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation
|
64 | 18 | 82 | 82 | ||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock
|
(91 | ) | (91 | ) | (91 | ) | ||||||||||||||||||||||||||||||||||||||||||
Change in equity of noncontrolling interests
|
(22 | ) | (22 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss):
|
||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss)
|
2,708 | 2,708 | (7 | ) | 2,701 | |||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss):
|
||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) on derivative instruments, net of
income tax
|
409 | 409 | 409 | |||||||||||||||||||||||||||||||||||||||||||||
Unrealized investment gains (losses), net of related offsets and
income tax
|
6,268 | 357 | 6,625 | (1 | ) | 6,624 | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of income tax
|
(92 | ) | (92 | ) | 7 | (85 | ) | |||||||||||||||||||||||||||||||||||||||||
Defined benefit plans adjustment, net of income tax
|
94 | 94 | 94 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss)
|
7,036 | 6 | 7,042 | |||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss)
|
9,744 | (1 | ) | 9,743 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2010
|
$ | 1 | $ | 9 | $ | 20,451 | $ | 22,096 | $ | (172 | ) | $ | 5,901 | $ | (145 | ) | $ | (275 | ) | $ | (1,451 | ) | $ | 46,415 | $ | 354 | $ | 46,769 | ||||||||||||||||||||
8
Nine Months |
||||||||
Ended |
||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
Net cash provided by operating activities
|
$ | 9,040 | $ | 5,193 | ||||
Cash flows from investing activities
|
||||||||
Sales, maturities and repayments of:
|
||||||||
Fixed maturity securities
|
81,918 | 55,618 | ||||||
Equity securities
|
1,342 | 1,002 | ||||||
Mortgage loans
|
8,784 | 4,474 | ||||||
Real estate and real estate joint ventures
|
856 | 135 | ||||||
Other limited partnership interests
|
852 | 311 | ||||||
Purchases of:
|
||||||||
Fixed maturity securities
|
(95,660 | ) | (69,997 | ) | ||||
Equity securities
|
(869 | ) | (638 | ) | ||||
Mortgage loans
|
(12,248 | ) | (5,888 | ) | ||||
Real estate and real estate joint ventures
|
(608 | ) | (474 | ) | ||||
Other limited partnership interests
|
(849 | ) | (745 | ) | ||||
Cash received in connection with freestanding derivatives
|
2,841 | 1,717 | ||||||
Cash paid in connection with freestanding derivatives
|
(3,102 | ) | (1,949 | ) | ||||
Sale of interest in joint venture
|
265 | | ||||||
Net change in policy loans
|
(84 | ) | (169 | ) | ||||
Net change in short-term investments
|
(6,508 | ) | (3,152 | ) | ||||
Net change in other invested assets
|
(175 | ) | 501 | |||||
Other, net
|
(104 | ) | (115 | ) | ||||
Net cash used in investing activities
|
(23,349 | ) | (19,369 | ) | ||||
Cash flows from financing activities
|
||||||||
Policyholder account balances:
|
||||||||
Deposits
|
69,911 | 53,709 | ||||||
Withdrawals
|
(67,001 | ) | (50,126 | ) | ||||
Net change in payables for collateral under securities loaned
and other transactions
|
7,661 | 7,695 | ||||||
Net change in bank deposits
|
296 | (959 | ) | |||||
Net change in short-term debt
|
145 | 1,145 | ||||||
Long-term debt issued
|
1,346 | 4,590 | ||||||
Long-term debt repaid
|
(1,192 | ) | (689 | ) | ||||
Cash received in connection with collateral financing
arrangements
|
100 | | ||||||
Debt issuance costs
|
(1 | ) | (14 | ) | ||||
Common stock issued, net of issuance costs
|
2,950 | 3,529 | ||||||
Stock options exercised
|
77 | 32 | ||||||
Redemption of convertible preferred stock
|
(2,805 | ) | | |||||
Preferred stock redemption premium
|
(146 | ) | | |||||
Dividends on preferred stock
|
(91 | ) | (91 | ) | ||||
Other, net
|
(68 | ) | (192 | ) | ||||
Net cash provided by financing activities
|
11,182 | 18,629 | ||||||
Effect of change in foreign currency exchange rates on cash and
cash equivalents balances
|
133 | (8 | ) | |||||
Change in cash and cash equivalents
|
(2,994 | ) | 4,445 | |||||
Cash and cash equivalents, beginning of period
|
13,046 | 10,112 | ||||||
Cash and cash equivalents, end of period
|
$ | 10,052 | $ | 14,557 | ||||
Cash and cash equivalents, subsidiaries
held-for-sale,
beginning of period
|
$ | 89 | $ | 88 | ||||
Cash and cash equivalents, subsidiaries
held-for-sale,
end of period
|
$ | 51 | $ | 78 | ||||
Cash and cash equivalents, from continuing operations, beginning
of period
|
$ | 12,957 | $ | 10,024 | ||||
Cash and cash equivalents, from continuing operations, end of
period
|
$ | 10,001 | $ | 14,479 | ||||
Supplemental disclosures of cash flow information:
|
||||||||
Net cash paid during the period for:
|
||||||||
Interest
|
$ | 1,184 | $ | 997 | ||||
Income tax
|
$ | 668 | $ | 109 | ||||
Non-cash transactions during the period:
|
||||||||
Real estate and real estate joint ventures acquired in
satisfaction of debt
|
$ | 106 | $ | 92 | ||||
9
1. | Business, Basis of Presentation and Summary of Significant Accounting Policies |
10
11
12
2. | Acquisitions and Dispositions |
13
| Fixed Annuities - This block of business provides a fixed rate of return to the policyholders. A decrease in market interest rates since the time of issuance was the primary driver that resulted in the fair value of the liabilities associated with this block being significantly greater than the initial policy reserves assumed at the Acquisition Date. | |
| Interest Sensitive Whole Life and Retirement Savings Products - These contracts contain guaranteed minimum benefit features. The recorded reserves for these guarantees increase ratably over the life of the policies in relation to future gross revenues. In contrast, the fair value of the guaranteed minimum benefit component of the initial policy reserves assumed represents the amount that would be required to be transferred to a market participant to assume the full liability at the acquisition date, implicitly incorporating market participant views as to all expected future cash flows. This results in a fair value significantly in excess of the initial guaranteed minimum benefit liability assumed at the Acquisition Date. |
14
15
Three Months |
Nine Months |
|||||||
Ended |
Ended |
|||||||
September 30, | September 30, | |||||||
2011 | 2011 | |||||||
(In millions) | ||||||||
Balance, beginning of period
|
$ | 9 | $ | 10 | ||||
Restructuring charges
|
7 | 31 | ||||||
Cash payments
|
(7 | ) | (32 | ) | ||||
Balance, end of period
|
$ | 9 | $ | 9 | ||||
Restructuring charges incurred in current period
|
$ | 7 | $ | 31 | ||||
Total restructuring charges incurred since inception of plans
|
$ | 41 | $ | 41 | ||||
3. | Investments |
16
September 30, 2011 | ||||||||||||||||||||||||
Cost or |
Gross Unrealized |
Estimated |
||||||||||||||||||||||
Amortized |
Temporary |
OTTI |
Fair |
% of |
||||||||||||||||||||
Cost | Gains | Losses | Losses | Value | Total | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Fixed Maturity Securities:
|
||||||||||||||||||||||||
U.S. corporate securities
|
$ | 99,832 | $ | 8,219 | $ | 1,476 | $ | | $ | 106,575 | 30.1 | % | ||||||||||||
Foreign corporate securities (1)
|
61,013 | 3,616 | 1,108 | (1 | ) | 63,522 | 18.0 | |||||||||||||||||
Foreign government securities
|
50,243 | 2,936 | 220 | | 52,959 | 15.0 | ||||||||||||||||||
Residential mortgage-backed securities (RMBS)
|
40,799 | 2,383 | 698 | 591 | 41,893 | 11.8 | ||||||||||||||||||
U.S. Treasury and agency securities
|
36,159 | 5,686 | 11 | | 41,834 | 11.8 | ||||||||||||||||||
Commercial mortgage-backed securities (CMBS)
|
19,259 | 635 | 307 | 2 | 19,585 | 5.5 | ||||||||||||||||||
Asset-backed securities (ABS)
|
14,765 | 322 | 583 | 86 | 14,418 | 4.1 | ||||||||||||||||||
State and political subdivision securities
|
11,939 | 1,371 | 169 | | 13,141 | 3.7 | ||||||||||||||||||
Other fixed maturity securities
|
| | | | | | ||||||||||||||||||
Total fixed maturity securities (2), (3)
|
$ | 334,009 | $ | 25,168 | $ | 4,572 | $ | 678 | $ | 353,927 | 100.0 | % | ||||||||||||
Equity Securities:
|
||||||||||||||||||||||||
Common stock
|
$ | 2,173 | $ | 80 | $ | 42 | $ | | $ | 2,211 | 70.9 | % | ||||||||||||
Non-redeemable preferred stock (2)
|
1,054 | 39 | 186 | | 907 | 29.1 | ||||||||||||||||||
Total equity securities
|
$ | 3,227 | $ | 119 | $ | 228 | $ | | $ | 3,118 | 100.0 | % | ||||||||||||
December 31, 2010 | ||||||||||||||||||||||||
Cost or |
Gross Unrealized |
Estimated |
||||||||||||||||||||||
Amortized |
Temporary |
OTTI |
Fair |
% of |
||||||||||||||||||||
Cost | Gains | Losses | Losses | Value | Total | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Fixed Maturity Securities:
|
||||||||||||||||||||||||
U.S. corporate securities
|
$ | 88,905 | $ | 4,469 | $ | 1,602 | $ | | $ | 91,772 | 28.3 | % | ||||||||||||
Foreign corporate securities
|
65,487 | 3,326 | 925 | | 67,888 | 20.9 | ||||||||||||||||||
Foreign government securities
|
40,871 | 1,733 | 602 | | 42,002 | 12.9 | ||||||||||||||||||
RMBS
|
44,468 | 1,652 | 917 | 470 | 44,733 | 13.8 | ||||||||||||||||||
U.S. Treasury and agency securities
|
32,469 | 1,394 | 559 | | 33,304 | 10.2 | ||||||||||||||||||
CMBS
|
20,213 | 740 | 266 | 12 | 20,675 | 6.4 | ||||||||||||||||||
ABS
|
14,722 | 274 | 590 | 119 | 14,287 | 4.4 | ||||||||||||||||||
State and political subdivision securities
|
10,476 | 171 | 518 | | 10,129 | 3.1 | ||||||||||||||||||
Other fixed maturity securities
|
6 | 1 | | | 7 | | ||||||||||||||||||
Total fixed maturity securities (2), (3)
|
$ | 317,617 | $ | 13,760 | $ | 5,979 | $ | 601 | $ | 324,797 | 100.0 | % | ||||||||||||
Equity Securities:
|
||||||||||||||||||||||||
Common stock
|
$ | 2,059 | $ | 146 | $ | 12 | $ | | $ | 2,193 | 60.9 | % | ||||||||||||
Non-redeemable preferred stock (2)
|
1,562 | 76 | 229 | | 1,409 | 39.1 | ||||||||||||||||||
Total equity securities
|
$ | 3,621 | $ | 222 | $ | 241 | $ | | $ | 3,602 | 100.0 | % | ||||||||||||
(1) | OTTI losses as presented above represent the noncredit portion of OTTI losses that is included in accumulated other comprehensive income (loss). OTTI losses include both the initial recognition of noncredit losses, and the effects of subsequent increases and decreases in estimated fair value for those fixed maturity securities that were previously noncredit loss impaired. The noncredit loss component of OTTI losses for foreign corporate securities was in an unrealized gain (loss) position of $1 million at September 30, 2011 due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also Net Unrealized Investment Gains (Losses). |
17
(2) | Upon acquisition, the Company classifies perpetual securities that have attributes of both debt and equity as fixed maturity securities if the security has an interest rate step-up feature which, when combined with other qualitative factors, indicates that the security has more debt-like characteristics; while those with more equity-like characteristics are classified as equity securities within non-redeemable preferred stock. Many of such securities have been issued by non-U.S. financial institutions that are accorded Tier 1 and Upper Tier 2 capital treatment by their respective regulatory bodies and are commonly referred to as perpetual hybrid securities. The following table presents the perpetual hybrid securities held by the Company at: |
September 30, |
December 31, |
|||||||||||
2011 | 2010 | |||||||||||
Estimated |
Estimated |
|||||||||||
Classification |
Fair |
Fair |
||||||||||
Consolidated Balance Sheets | Sector Table | Primary Issuers | Value | Value | ||||||||
(In millions) | ||||||||||||
Fixed maturity securities
|
Foreign corporate securities | Non-U.S. financial institutions | $ | 632 | $ | 2,008 | ||||||
Fixed maturity securities
|
U.S. corporate securities | U.S. financial institutions | $ | 181 | $ | 83 | ||||||
Equity securities
|
Non-redeemable preferred stock | Non-U.S. financial institutions | $ | 481 | $ | 1,043 | ||||||
Equity securities
|
Non-redeemable preferred stock | U.S. financial institutions | $ | 381 | $ | 236 |
(3) | The Companys holdings in redeemable preferred stock with stated maturity dates, commonly referred to as capital securities, were primarily issued by U.S. financial institutions and have cumulative interest deferral features. The Company held $2.0 billion and $2.7 billion at estimated fair value of such securities at September 30, 2011 and December 31, 2010, respectively, which are included in the U.S. and foreign corporate securities sectors within fixed maturity securities. |
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Below investment grade or non-rated fixed maturity securities:
|
||||||||
Estimated fair value
|
$ | 24,494 | $ | 24,870 | ||||
Net unrealized gains (losses)
|
$ | (1,683 | ) | $ | (696 | ) | ||
Non-income producing fixed maturity securities:
|
||||||||
Estimated fair value
|
$ | 145 | $ | 130 | ||||
Net unrealized gains (losses)
|
$ | (54 | ) | $ | (23 | ) |
18
September 30, 2011 | December 31, 2010 | |||||||
Carrying Value (1) | ||||||||
(In millions) | ||||||||
Government and agency fixed maturity securities:
|
||||||||
United States
|
$ | 41,834 | $ | 33,304 | ||||
Japan
|
$ | 20,644 | $ | 15,591 | ||||
Mexico (2)
|
$ | | $ | 5,050 | ||||
U.S. Treasury and agency fixed-income securities included in:
|
||||||||
Short-term investments
|
$ | 13,565 | $ | 4,048 | ||||
Cash equivalents
|
$ | 2,847 | $ | 5,762 |
(1) | Represents estimated fair value for fixed maturity securities; amortized cost, which approximates estimated fair value or estimated fair value, if available, for short-term investments; and amortized cost, which approximates estimated fair value, for cash equivalents. | |
(2) | The Companys investment in Mexico government and agency fixed maturity securities at September 30, 2011 of $5,028 million is less than 10% of the Companys equity. |
19
September 30, 2011 | December 31, 2010 | |||||||||||||||
Estimated |
Estimated |
|||||||||||||||
Fair |
% of |
Fair |
% of |
|||||||||||||
Value | Total | Value | Total | |||||||||||||
(In millions) | (In millions) | |||||||||||||||
Corporate fixed maturity securities by sector:
|
||||||||||||||||
Foreign corporate fixed maturity securities (1)
|
$ | 63,522 | 37.3 | % | $ | 67,888 | 42.5 | % | ||||||||
U.S. corporate fixed maturity securities by industry:
|
||||||||||||||||
Industrial
|
27,245 | 16.0 | 22,070 | 13.8 | ||||||||||||
Consumer
|
26,414 | 15.5 | 21,482 | 13.5 | ||||||||||||
Finance
|
21,864 | 12.9 | 20,785 | 13.0 | ||||||||||||
Utility
|
19,152 | 11.3 | 16,902 | 10.6 | ||||||||||||
Communications
|
8,318 | 4.9 | 7,335 | 4.6 | ||||||||||||
Other
|
3,582 | 2.1 | 3,198 | 2.0 | ||||||||||||
Total
|
$ | 170,097 | 100.0 | % | $ | 159,660 | 100.0 | % | ||||||||
(1) | Includes U.S. dollar-denominated debt obligations of foreign obligors and other foreign fixed maturity securities. |
September 30, 2011 | December 31, 2010 | |||||||||||||||
Estimated |
Estimated |
|||||||||||||||
Fair |
% of Total |
Fair |
% of Total |
|||||||||||||
Value | Investments | Value | Investments | |||||||||||||
(In millions) | (In millions) | |||||||||||||||
Concentrations within corporate fixed maturity securities:
|
||||||||||||||||
Largest exposure to a single issuer
|
$ | 1,883 | 0.4 | % | $ | 2,291 | 0.5 | % | ||||||||
Holdings in ten issuers with the largest exposures
|
$ | 11,955 | 2.4 | % | $ | 14,247 | 3.1 | % |
20
September 30, 2011 | December 31, 2010 | |||||||||||||||
Estimated |
Estimated |
|||||||||||||||
Fair |
% of |
Fair |
% of |
|||||||||||||
Value | Total | Value | Total | |||||||||||||
(In millions) | (In millions) | |||||||||||||||
By security type:
|
||||||||||||||||
Collateralized mortgage obligations
|
$ | 22,903 | 54.7 | % | $ | 22,303 | 49.9 | % | ||||||||
Pass-through securities
|
18,990 | 45.3 | 22,430 | 50.1 | ||||||||||||
Total RMBS
|
$ | 41,893 | 100.0 | % | $ | 44,733 | 100.0 | % | ||||||||
By risk profile:
|
||||||||||||||||
Agency
|
$ | 31,386 | 74.9 | % | $ | 34,254 | 76.6 | % | ||||||||
Prime
|
5,935 | 14.2 | 6,258 | 14.0 | ||||||||||||
Alternative residential mortgage loans
|
4,572 | 10.9 | 4,221 | 9.4 | ||||||||||||
Total RMBS
|
$ | 41,893 | 100.0 | % | $ | 44,733 | 100.0 | % | ||||||||
Rated Aaa/AAA
|
$ | 32,452 | 77.5 | % | $ | 36,085 | 80.7 | % | ||||||||
Rated NAIC 1
|
$ | 36,543 | 87.2 | % | $ | 38,984 | 87.1 | % | ||||||||
September 30, 2011 | December 31, 2010 | |||||||||||||||
Estimated |
Estimated |
|||||||||||||||
Fair |
% of |
Fair |
% of |
|||||||||||||
Value | Total | Value | Total | |||||||||||||
(In millions) | (In millions) | |||||||||||||||
Vintage Year:
|
||||||||||||||||
2005 & Prior
|
$ | 1,632 | 35.7 | % | $ | 1,576 | 37.3 | % | ||||||||
2006
|
1,294 | 28.3 | 1,013 | 24.0 | ||||||||||||
2007
|
997 | 21.8 | 922 | 21.8 | ||||||||||||
2008
|
| | 7 | 0.2 | ||||||||||||
2009 (1)
|
615 | 13.5 | 671 | 15.9 | ||||||||||||
2010 (1)
|
34 | 0.7 | 32 | 0.8 | ||||||||||||
2011
|
| | | | ||||||||||||
Total
|
$ | 4,572 | 100.0 | % | $ | 4,221 | 100.0 | % | ||||||||
(1) | All of the Companys Alt-A RMBS holdings in the 2009 and 2010 vintage years are resecuritization of real estate mortgage investment conduit (Re-REMIC) Alt-A RMBS that were purchased in 2009 and 2010 and are comprised of original issue vintage year 2005 through 2007 Alt-A RMBS. All of the Companys Re-REMIC Alt-A RMBS holdings are NAIC 1 rated. |
21
September 30, 2011 | December 31, 2010 | |||||||||||||||
% of |
% of |
|||||||||||||||
Amount | Total | Amount | Total | |||||||||||||
(In millions) | (In millions) | |||||||||||||||
Net unrealized gains (losses)
|
$ | (824 | ) | $ | (670 | ) | ||||||||||
Rated Aa/AA or better
|
12.7 | % | 15.9 | % | ||||||||||||
Rated NAIC 1
|
47.1 | % | 39.5 | % | ||||||||||||
Distribution of holdings at estimated fair
value by collateral type:
|
||||||||||||||||
Fixed rate mortgage loans collateral
|
92.7 | % | 90.7 | % | ||||||||||||
Hybrid adjustable rate mortgage loans collateral
|
7.3 | 9.3 | ||||||||||||||
Total Alt-A RMBS
|
100.0 | % | 100.0 | % | ||||||||||||
September 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||
Below |
||||||||||||||||||||||||||||||||||||||||||||||||
Investment |
||||||||||||||||||||||||||||||||||||||||||||||||
Aaa | Aa | A | Baa | Grade | Total | |||||||||||||||||||||||||||||||||||||||||||
Estimated |
Estimated |
Estimated |
Estimated |
Estimated |
Estimated |
|||||||||||||||||||||||||||||||||||||||||||
Amortized |
Fair |
Amortized |
Fair |
Amortized |
Fair |
Amortized |
Fair |
Amortized |
Fair |
Amortized |
Fair |
|||||||||||||||||||||||||||||||||||||
Cost | Value | Cost | Value | Cost | Value | Cost | Value | Cost | Value | Cost | Value | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
2003 & Prior
|
$ | 5,936 | 6,040 | 178 | 176 | 105 | 101 | 58 | 55 | 21 | 20 | $ | 6,298 | $ | 6,392 | |||||||||||||||||||||||||||||||||
2004
|
3,698 | 3,823 | 447 | 455 | 134 | 126 | 92 | 89 | 33 | 26 | 4,404 | 4,519 | ||||||||||||||||||||||||||||||||||||
2005
|
3,117 | 3,316 | 400 | 401 | 324 | 311 | 168 | 153 | 37 | 26 | 4,046 | 4,207 | ||||||||||||||||||||||||||||||||||||
2006
|
1,733 | 1,813 | 229 | 217 | 91 | 87 | 147 | 135 | 157 | 137 | 2,357 | 2,389 | ||||||||||||||||||||||||||||||||||||
2007
|
700 | 714 | 439 | 362 | 163 | 137 | 39 | 38 | 126 | 117 | 1,467 | 1,368 | ||||||||||||||||||||||||||||||||||||
2008
|
| | | | | | | | 24 | 29 | 24 | 29 | ||||||||||||||||||||||||||||||||||||
2009
|
2 | 2 | | | | | | | | | 2 | 2 | ||||||||||||||||||||||||||||||||||||
2010
|
2 | 3 | | | 60 | 66 | | | | | 62 | 69 | ||||||||||||||||||||||||||||||||||||
2011
|
505 | 513 | | | 94 | 97 | | | | | 599 | 610 | ||||||||||||||||||||||||||||||||||||
Total
|
$ | 15,693 | $ | 16,224 | $ | 1,693 | $ | 1,611 | $ | 971 | $ | 925 | $ | 504 | $ | 470 | $ | 398 | $ | 355 | $ | 19,259 | $ | 19,585 | ||||||||||||||||||||||||
Ratings Distribution
|
82.8 | % | 8.3 | % | 4.7 | % | 2.4 | % | 1.8 | % | 100.0 | % | ||||||||||||||||||||||||||||||||||||
December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||
Below |
||||||||||||||||||||||||||||||||||||||||||||||||
Investment |
||||||||||||||||||||||||||||||||||||||||||||||||
Aaa | Aa | A | Baa | Grade | Total | |||||||||||||||||||||||||||||||||||||||||||
Estimated |
Estimated |
Estimated |
Estimated |
Estimated |
Estimated |
|||||||||||||||||||||||||||||||||||||||||||
Amortized |
Fair |
Amortized |
Fair |
Amortized |
Fair |
Amortized |
Fair |
Amortized |
Fair |
Amortized |
Fair |
|||||||||||||||||||||||||||||||||||||
Cost | Value | Cost | Value | Cost | Value | Cost | Value | Cost | Value | Cost | Value | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
2003 & Prior
|
$ | 7,411 | $ | 7,640 | $ | 282 | $ | 282 | $ | 228 | $ | 227 | $ | 74 | $ | 71 | $ | 28 | $ | 24 | $ | 8,023 | $ | 8,244 | ||||||||||||||||||||||||
2004
|
3,489 | 3,620 | 277 | 273 | 216 | 209 | 181 | 175 | 91 | 68 | 4,254 | 4,345 | ||||||||||||||||||||||||||||||||||||
2005
|
3,113 | 3,292 | 322 | 324 | 286 | 280 | 263 | 255 | 73 | 66 | 4,057 | 4,217 | ||||||||||||||||||||||||||||||||||||
2006
|
1,463 | 1,545 | 159 | 160 | 168 | 168 | 385 | 398 | 166 | 156 | 2,341 | 2,427 | ||||||||||||||||||||||||||||||||||||
2007
|
840 | 791 | 344 | 298 | 96 | 95 | 119 | 108 | 122 | 133 | 1,521 | 1,425 | ||||||||||||||||||||||||||||||||||||
2008
|
2 | 2 | | | | | | | | | 2 | 2 | ||||||||||||||||||||||||||||||||||||
2009
|
3 | 3 | | | | | | | | | 3 | 3 | ||||||||||||||||||||||||||||||||||||
2010
|
8 | 8 | | | 4 | 4 | | | | | 12 | 12 | ||||||||||||||||||||||||||||||||||||
Total
|
$ | 16,329 | $ | 16,901 | $ | 1,384 | $ | 1,337 | $ | 998 | $ | 983 | $ | 1,022 | $ | 1,007 | $ | 480 | $ | 447 | $ | 20,213 | $ | 20,675 | ||||||||||||||||||||||||
Ratings Distribution
|
81.7 | % | 6.4 | % | 4.8 | % | 4.9 | % | 2.2 | % | 100.0 | % | ||||||||||||||||||||||||||||||||||||
22
September 30, 2011 | December 31, 2010 | |||||||
NAIC 1
|
94.3 | % | 93.7 | % | ||||
NAIC 2
|
4.1 | % | 3.2 | % | ||||
NAIC 3
|
0.5 | % | 1.8 | % | ||||
NAIC 4
|
0.7 | % | 1.0 | % | ||||
NAIC 5
|
| % | 0.3 | % | ||||
NAIC 6
|
0.4 | % | | % |
September 30, 2011 | December 31, 2010 | |||||||||||||||
Estimated |
Estimated |
|||||||||||||||
Fair |
% of |
Fair |
% of |
|||||||||||||
Value | Total | Value | Total | |||||||||||||
(In millions) | (In millions) | |||||||||||||||
By collateral type:
|
||||||||||||||||
Credit card loans
|
$ | 4,444 | 30.8 | % | $ | 6,027 | 42.2 | % | ||||||||
Student loans
|
2,645 | 18.4 | 2,416 | 16.9 | ||||||||||||
Collateralized debt obligations
|
2,578 | 17.9 | 1,798 | 12.6 | ||||||||||||
Automobile loans
|
1,039 | 7.2 | 605 | 4.2 | ||||||||||||
RMBS backed by
sub-prime
mortgage loans
|
997 | 6.9 | 1,119 | 7.8 | ||||||||||||
Other loans
|
2,715 | 18.8 | 2,322 | 16.3 | ||||||||||||
Total
|
$ | 14,418 | 100.0 | % | $ | 14,287 | 100.0 | % | ||||||||
Rated Aaa/AAA
|
$ | 9,250 | 64.2 | % | $ | 10,411 | 72.9 | % | ||||||||
Rated NAIC 1
|
$ | 13,324 | 92.4 | % | $ | 13,133 | 91.9 | % | ||||||||
23
September 30, 2011 | December 31, 2010 | |||||||||||||||
Estimated |
Estimated |
|||||||||||||||
Amortized |
Fair |
Amortized |
Fair |
|||||||||||||
Cost | Value | Cost | Value | |||||||||||||
(In millions) | ||||||||||||||||
Due in one year or less
|
$ | 13,713 | $ | 13,813 | $ | 8,580 | $ | 8,702 | ||||||||
Due after one year through five years
|
68,498 | 70,234 | 65,143 | 66,796 | ||||||||||||
Due after five years through ten years
|
83,338 | 88,497 | 76,508 | 79,571 | ||||||||||||
Due after ten years
|
93,637 | 105,487 | 87,983 | 90,033 | ||||||||||||
Subtotal
|
259,186 | 278,031 | 238,214 | 245,102 | ||||||||||||
RMBS, CMBS and ABS
|
74,823 | 75,896 | 79,403 | 79,695 | ||||||||||||
Total fixed maturity securities
|
$ | 334,009 | $ | 353,927 | $ | 317,617 | $ | 324,797 | ||||||||
24
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Fixed maturity securities
|
$ | 20,703 | $ | 7,817 | ||||
Fixed maturity securities with noncredit OTTI losses in
accumulated other comprehensive income (loss)
|
(678 | ) | (601 | ) | ||||
Total fixed maturity securities
|
20,025 | 7,216 | ||||||
Equity securities
|
(95 | ) | (3 | ) | ||||
Derivatives
|
1,486 | (59 | ) | |||||
Other
|
63 | 42 | ||||||
Subtotal
|
21,479 | 7,196 | ||||||
Amounts allocated from:
|
||||||||
Insurance liability loss recognition
|
(3,946 | ) | (672 | ) | ||||
DAC and VOBA related to noncredit OTTI losses recognized in
accumulated other comprehensive income (loss)
|
41 | 38 | ||||||
DAC and VOBA
|
(2,070 | ) | (1,205 | ) | ||||
Policyholder dividend obligation
|
(2,782 | ) | (876 | ) | ||||
Subtotal
|
(8,757 | ) | (2,715 | ) | ||||
Deferred income tax benefit (expense) related to noncredit OTTI
losses recognized in accumulated other comprehensive income
(loss)
|
220 | 197 | ||||||
Deferred income tax benefit (expense)
|
(4,504 | ) | (1,692 | ) | ||||
Net unrealized investment gains (losses)
|
8,438 | 2,986 | ||||||
Net unrealized investment gains (losses) attributable to
noncontrolling interests
|
9 | 4 | ||||||
Net unrealized investment gains (losses) attributable to
MetLife, Inc.
|
$ | 8,447 | $ | 2,990 | ||||
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Balance, beginning of period
|
$ | (601 | ) | $ | (859 | ) | ||
Noncredit OTTI losses recognized (1)
|
5 | (212 | ) | |||||
Transferred to retained earnings (2)
|
| 16 | ||||||
Securities sold with previous noncredit OTTI loss
|
99 | 137 | ||||||
Subsequent changes in estimated fair value
|
(181 | ) | 317 | |||||
Balance, end of period
|
$ | (678 | ) | $ | (601 | ) | ||
(1) | Noncredit OTTI losses recognized, net of DAC, were $6 million and ($202) million for the periods ended September 30, 2011 and December 31, 2010, respectively. |
25
(2) | Amounts transferred to retained earnings were in connection with the adoption of guidance related to the consolidation of VIEs as described in Note 1 of the Notes to the Consolidated Financial Statements included in the 2010 Annual Report. |
Nine Months |
||||
Ended |
||||
September 30, 2011 | ||||
(In millions) | ||||
Balance, beginning of period
|
$ | 2,990 | ||
Fixed maturity securities on which noncredit OTTI losses have
been recognized
|
(77 | ) | ||
Unrealized investment gains (losses) during the period
|
14,360 | |||
Unrealized investment gains (losses) relating to:
|
||||
Insurance liability gain (loss) recognition
|
(3,274 | ) | ||
DAC and VOBA related to noncredit OTTI losses recognized in
accumulated other comprehensive income (loss)
|
3 | |||
DAC and VOBA
|
(865 | ) | ||
Policyholder dividend obligation
|
(1,906 | ) | ||
Deferred income tax benefit (expense) related to noncredit OTTI
losses recognized in accumulated other comprehensive income
(loss)
|
23 | |||
Deferred income tax benefit (expense)
|
(2,812 | ) | ||
Net unrealized investment gains (losses)
|
8,442 | |||
Net unrealized investment gains (losses) attributable to
noncontrolling interests
|
5 | |||
Balance, end of period
|
$ | 8,447 | ||
Change in net unrealized investment gains (losses)
|
$ | 5,452 | ||
Change in net unrealized investment gains (losses) attributable
to noncontrolling interests
|
5 | |||
Change in net unrealized investment gains (losses) attributable
to MetLife, Inc.
|
$ | 5,457 | ||
26
September 30, 2011 | ||||||||||||||||||||||||
Equal to or Greater |
||||||||||||||||||||||||
Less than 12 Months | than 12 Months | Total | ||||||||||||||||||||||
Estimated |
Gross |
Estimated |
Gross |
Estimated |
Gross |
|||||||||||||||||||
Fair |
Unrealized |
Fair |
Unrealized |
Fair |
Unrealized |
|||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
(In millions, except number of securities) | ||||||||||||||||||||||||
Fixed Maturity Securities:
|
||||||||||||||||||||||||
U.S. corporate securities
|
$ | 18,303 | $ | 597 | $ | 4,981 | $ | 879 | $ | 23,284 | $ | 1,476 | ||||||||||||
Foreign corporate securities
|
16,560 | 846 | 1,480 | 261 | 18,040 | 1,107 | ||||||||||||||||||
Foreign government securities
|
8,092 | 208 | 158 | 12 | 8,250 | 220 | ||||||||||||||||||
RMBS
|
3,761 | 324 | 4,501 | 965 | 8,262 | 1,289 | ||||||||||||||||||
U.S. Treasury and agency securities
|
8,937 | 9 | 39 | 2 | 8,976 | 11 | ||||||||||||||||||
CMBS
|
4,974 | 200 | 620 | 109 | 5,594 | 309 | ||||||||||||||||||
ABS
|
4,670 | 189 | 2,087 | 480 | 6,757 | 669 | ||||||||||||||||||
State and political subdivision securities
|
416 | 6 | 981 | 163 | 1,397 | 169 | ||||||||||||||||||
Other fixed maturity securities
|
| | | | | | ||||||||||||||||||
Total fixed maturity securities
|
$ | 65,713 | $ | 2,379 | $ | 14,847 | $ | 2,871 | $ | 80,560 | $ | 5,250 | ||||||||||||
Equity Securities:
|
||||||||||||||||||||||||
Common stock
|
$ | 416 | $ | 41 | $ | 23 | $ | 1 | $ | 439 | $ | 42 | ||||||||||||
Non-redeemable preferred stock
|
227 | 30 | 386 | 156 | 613 | 186 | ||||||||||||||||||
Total equity securities
|
$ | 643 | $ | 71 | $ | 409 | $ | 157 | $ | 1,052 | $ | 228 | ||||||||||||
Total number of securities in an unrealized loss position
|
4,414 | 1,340 | ||||||||||||||||||||||
27
December 31, 2010 | ||||||||||||||||||||||||
Equal to or Greater |
||||||||||||||||||||||||
Less than 12 Months | than 12 Months | Total | ||||||||||||||||||||||
Estimated |
Gross |
Estimated |
Gross |
Estimated |
Gross |
|||||||||||||||||||
Fair |
Unrealized |
Fair |
Unrealized |
Fair |
Unrealized |
|||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
(In millions, except number of securities) | ||||||||||||||||||||||||
Fixed Maturity Securities:
|
||||||||||||||||||||||||
U.S. corporate securities
|
$ | 22,954 | $ | 447 | $ | 8,319 | $ | 1,155 | $ | 31,273 | $ | 1,602 | ||||||||||||
Foreign corporate securities
|
22,415 | 410 | 3,976 | 515 | 26,391 | 925 | ||||||||||||||||||
Foreign government securities
|
26,659 | 585 | 189 | 17 | 26,848 | 602 | ||||||||||||||||||
RMBS
|
7,588 | 212 | 6,700 | 1,175 | 14,288 | 1,387 | ||||||||||||||||||
U.S. Treasury and agency securities
|
13,401 | 530 | 118 | 29 | 13,519 | 559 | ||||||||||||||||||
CMBS
|
3,787 | 29 | 1,363 | 249 | 5,150 | 278 | ||||||||||||||||||
ABS
|
2,713 | 42 | 3,026 | 667 | 5,739 | 709 | ||||||||||||||||||
State and political subdivision securities
|
5,061 | 246 | 988 | 272 | 6,049 | 518 | ||||||||||||||||||
Other fixed maturity securities
|
1 | | | | 1 | | ||||||||||||||||||
Total fixed maturity securities
|
$ | 104,579 | $ | 2,501 | $ | 24,679 | $ | 4,079 | $ | 129,258 | $ | 6,580 | ||||||||||||
Equity Securities:
|
||||||||||||||||||||||||
Common stock
|
$ | 89 | $ | 12 | $ | 1 | $ | | $ | 90 | $ | 12 | ||||||||||||
Non-redeemable preferred stock
|
191 | 9 | 824 | 220 | 1,015 | 229 | ||||||||||||||||||
Total equity securities
|
$ | 280 | $ | 21 | $ | 825 | $ | 220 | $ | 1,105 | $ | 241 | ||||||||||||
Total number of securities in an unrealized loss position
|
5,609 | 1,704 | ||||||||||||||||||||||
28
September 30, 2011 | ||||||||||||||||||||||||
Cost or Amortized Cost | Gross Unrealized Losses | Number of Securities | ||||||||||||||||||||||
Less than |
20% or |
Less than |
20% or |
Less than |
20% or |
|||||||||||||||||||
20% | more | 20% | more | 20% | more | |||||||||||||||||||
(In millions, except number of securities) | ||||||||||||||||||||||||
Fixed Maturity Securities:
|
||||||||||||||||||||||||
Less than six months
|
$ | 50,785 | $ | 5,026 | $ | 1,365 | $ | 1,377 | 2,871 | 290 | ||||||||||||||
Six months or greater but less than nine months
|
1,747 | 349 | 68 | 106 | 200 | 23 | ||||||||||||||||||
Nine months or greater but less than twelve months
|
13,543 | 147 | 367 | 41 | 1,126 | 9 | ||||||||||||||||||
Twelve months or greater
|
11,858 | 2,355 | 1,018 | 908 | 971 | 181 | ||||||||||||||||||
Total
|
$ | 77,933 | $ | 7,877 | $ | 2,818 | $ | 2,432 | ||||||||||||||||
Percentage of amortized cost
|
4 | % | 31 | % | ||||||||||||||||||||
Equity Securities:
|
||||||||||||||||||||||||
Less than six months
|
$ | 571 | $ | 304 | $ | 36 | $ | 89 | 168 | 54 | ||||||||||||||
Six months or greater but less than nine months
|
10 | | 1 | | 7 | 3 | ||||||||||||||||||
Nine months or greater but less than twelve months
|
46 | 1 | 4 | 1 | 14 | 9 | ||||||||||||||||||
Twelve months or greater
|
125 | 223 | 12 | 85 | 11 | 13 | ||||||||||||||||||
Total
|
$ | 752 | $ | 528 | $ | 53 | $ | 175 | ||||||||||||||||
Percentage of cost
|
7 | % | 33 | % | ||||||||||||||||||||
29
December 31, 2010 | ||||||||||||||||||||||||
Cost or Amortized Cost | Gross Unrealized Losses | Number of Securities | ||||||||||||||||||||||
Less than |
20% or |
Less than |
20% or |
Less than |
20% or |
|||||||||||||||||||
20% | more | 20% | more | 20% | more | |||||||||||||||||||
(In millions, except number of securities) | ||||||||||||||||||||||||
Fixed Maturity Securities:
|
||||||||||||||||||||||||
Less than six months
|
$ | 105,301 | $ | 1,403 | $ | 2,348 | $ | 368 | 5,320 | 121 | ||||||||||||||
Six months or greater but less than nine months
|
1,125 | 376 | 29 | 102 | 104 | 29 | ||||||||||||||||||
Nine months or greater but less than twelve months
|
371 | 89 | 28 | 27 | 50 | 9 | ||||||||||||||||||
Twelve months or greater
|
21,627 | 5,546 | 1,863 | 1,815 | 1,245 | 311 | ||||||||||||||||||
Total
|
$ | 128,424 | $ | 7,414 | $ | 4,268 | $ | 2,312 | ||||||||||||||||
Percentage of amortized cost
|
3 | % | 31 | % | ||||||||||||||||||||
Equity Securities:
|
||||||||||||||||||||||||
Less than six months
|
$ | 247 | $ | 94 | $ | 10 | $ | 22 | 106 | 33 | ||||||||||||||
Six months or greater but less than nine months
|
29 | 65 | 5 | 16 | 3 | 2 | ||||||||||||||||||
Nine months or greater but less than twelve months
|
6 | 47 | | 16 | 3 | 2 | ||||||||||||||||||
Twelve months or greater
|
518 | 340 | 56 | 116 | 35 | 14 | ||||||||||||||||||
Total
|
$ | 800 | $ | 546 | $ | 71 | $ | 170 | ||||||||||||||||
Percentage of cost
|
9 | % | 31 | % | ||||||||||||||||||||
30
September 30, 2011 | December 31, 2010 | |||||||
Sector:
|
||||||||
U.S. corporate securities
|
27 | % | 23 | % | ||||
RMBS
|
24 | 20 | ||||||
Foreign corporate securities
|
20 | 14 | ||||||
ABS
|
12 | 10 | ||||||
CMBS
|
6 | 4 | ||||||
Foreign government securities
|
4 | 9 | ||||||
State and political subdivision securities
|
3 | 8 | ||||||
U.S. Treasury and agency securities
|
| 8 | ||||||
Other
|
4 | 4 | ||||||
Total
|
100 | % | 100 | % | ||||
Industry:
|
||||||||
Mortgage-backed
|
30 | % | 24 | % | ||||
Finance
|
25 | 21 | ||||||
Asset-backed
|
12 | 10 | ||||||
Utility
|
8 | 5 | ||||||
Consumer
|
7 | 4 | ||||||
Foreign government securities
|
4 | 9 | ||||||
Communications
|
4 | 2 | ||||||
State and political subdivision securities
|
3 | 8 | ||||||
Industrial
|
3 | 2 | ||||||
U.S. Treasury and agency securities
|
| 8 | ||||||
Other
|
4 | 7 | ||||||
Total
|
100 | % | 100 | % | ||||
31
September 30, 2011 | December 31, 2010 | |||||||||||||||
Fixed Maturity |
Equity |
Fixed Maturity |
Equity |
|||||||||||||
Securities | Securities | Securities | Securities | |||||||||||||
(In millions, except number of securities) | ||||||||||||||||
Number of securities
|
86 | 5 | 107 | 6 | ||||||||||||
Total gross unrealized losses
|
$ | 1,612 | $ | 79 | $ | 2,014 | $ | 103 | ||||||||
Percentage of total gross unrealized losses
|
31 | % | 34 | % | 31 | % | 43 | % |
Non-Redeemable Preferred Stock | ||||||||||||||||||||||||||||||||
All Types of |
||||||||||||||||||||||||||||||||
All Equity |
Non-Redeemable |
Investment Grade | ||||||||||||||||||||||||||||||
Securities | Preferred Stock | All Industries | Financial Services Industry | |||||||||||||||||||||||||||||
Gross |
Gross |
% of All |
Gross |
% of All |
Gross |
% A |
||||||||||||||||||||||||||
Unrealized |
Unrealized |
Equity |
Unrealized |
Non-Redeemable |
Unrealized |
% of All |
Rated or |
|||||||||||||||||||||||||
Losses | Losses | Securities | Losses | Preferred Stock | Losses | Industries | Better | |||||||||||||||||||||||||
(In millions) | (In millions) | (In millions) | ||||||||||||||||||||||||||||||
Less than six months
|
$ | 89 | $ | 67 | 75 | % | $ | 52 | 78 | % | $ | 52 | 100 | % | 52 | % | ||||||||||||||||
Six months or greater but less than twelve months
|
1 | | | % | | | % | | | % | | % | ||||||||||||||||||||
Twelve months or greater
|
85 | 85 | 100 | % | 85 | 100 | % | 85 | 100 | % | 72 | % | ||||||||||||||||||||
All equity securities with gross unrealized losses of 20% or more
|
$ | 175 | $ | 152 | 87 | % | $ | 137 | 90 | % | $ | 137 | 100 | % | 64 | % | ||||||||||||||||
32
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Actively Traded Securities
|
$ | 415 | $ | 463 | ||||
FVO general account securities
|
269 | 131 | ||||||
FVO contractholder-directed unit-linked investments
|
17,874 | 17,794 | ||||||
FVO securities held by CSEs
|
140 | 201 | ||||||
Total trading and other securities at estimated fair
value
|
$ | 18,698 | $ | 18,589 | ||||
Actively Traded Securities at estimated fair value
|
$ | 415 | $ | 463 | ||||
Short sale agreement liabilities at estimated fair
value
|
(67 | ) | (46 | ) | ||||
Net long/short position at estimated fair value
|
$ | 348 | $ | 417 | ||||
Investments pledged to secure short sale agreement liabilities
|
$ | 467 | $ | 465 | ||||
33
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Total gains (losses) on fixed maturity securities:
|
||||||||||||||||
Total OTTI losses recognized
|
$ | (95 | ) | $ | (143 | ) | $ | (525 | ) | $ | (538 | ) | ||||
Less: Noncredit portion of OTTI losses transferred to and
recognized in other comprehensive income (loss)
|
(189 | ) | 24 | (5 | ) | 181 | ||||||||||
Net OTTI losses on fixed maturity securities recognized in
earnings
|
(284 | ) | (119 | ) | (530 | ) | (357 | ) | ||||||||
Fixed maturity securities net gains (losses) on
sales and disposals
|
101 | 54 | 79 | 99 | ||||||||||||
Total gains (losses) on fixed maturity securities
|
(183 | ) | (65 | ) | (451 | ) | (258 | ) | ||||||||
Other net investment gains (losses):
|
||||||||||||||||
Equity securities
|
(3 | ) | (1 | ) | (37 | ) | 100 | |||||||||
Trading and other securities FVO general account
securities changes in estimated fair value
|
(3 | ) | | (3 | ) | | ||||||||||
Mortgage loans
|
45 | 37 | 160 | 20 | ||||||||||||
Real estate and real estate joint ventures
|
139 | (1 | ) | 144 | (50 | ) | ||||||||||
Other limited partnership interests
|
| (4 | ) | 8 | (15 | ) | ||||||||||
Other investment portfolio gains (losses)
|
| (67 | ) | (2 | ) | 9 | ||||||||||
Subtotal investment portfolio gains (losses)
|
(5 | ) | (101 | ) | (181 | ) | (194 | ) | ||||||||
FVO CSEs changes in estimated fair value:
|
||||||||||||||||
Commercial mortgage loans
|
(64 | ) | 114 | (39 | ) | 767 | ||||||||||
Securities
|
2 | (26 | ) | 1 | (47 | ) | ||||||||||
Long-term debt related to commercial mortgage loans
|
56 | (109 | ) | 48 | (744 | ) | ||||||||||
Long-term debt related to securities
|
(1 | ) | 37 | (8 | ) | 48 | ||||||||||
Other gains (losses) (1)
|
(43 | ) | (257 | ) | (130 | ) | (154 | ) | ||||||||
Subtotal FVO CSEs and other gains (losses)
|
(50 | ) | (241 | ) | (128 | ) | (130 | ) | ||||||||
Total net investment gains (losses)
|
$ | (55 | ) | $ | (342 | ) | $ | (309 | ) | $ | (324 | ) | ||||
(1) | Other gains (losses) for the three months and nine months ended September 30, 2011 includes a loss of $0 and $87 million, respectively, related to the sale of the Companys investment in MSI MetLife. See Note 2. Other gains (losses) for both the three months and nine months ended September 30, 2011 includes a loss of $65 million related to goodwill impairment. See Note 6. |
34
Three Months Ended September 30, | ||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
Fixed Maturity Securities | Equity Securities | Total | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Proceeds
|
$ | 19,368 | $ | 10,747 | $ | 169 | $ | 96 | $ | 19,537 | $ | 10,843 | ||||||||||||
Gross investment gains
|
$ | 252 | $ | 190 | $ | 9 | $ | 7 | $ | 261 | $ | 197 | ||||||||||||
Gross investment losses
|
(151 | ) | (136 | ) | (7 | ) | (7 | ) | (158 | ) | (143 | ) | ||||||||||||
Total OTTI losses recognized in earnings:
|
||||||||||||||||||||||||
Credit-related
|
(269 | ) | (107 | ) | | | (269 | ) | (107 | ) | ||||||||||||||
Other (1)
|
(15 | ) | (12 | ) | (5 | ) | (1 | ) | (20 | ) | (13 | ) | ||||||||||||
Total OTTI losses recognized in earnings
|
(284 | ) | (119 | ) | (5 | ) | (1 | ) | (289 | ) | (120 | ) | ||||||||||||
Net investment gains (losses)
|
$ | (183 | ) | $ | (65 | ) | $ | (3 | ) | $ | (1 | ) | $ | (186 | ) | $ | (66 | ) | ||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
Fixed Maturity Securities | Equity Securities | Total | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Proceeds
|
$ | 55,216 | $ | 32,585 | $ | 974 | $ | 539 | $ | 56,190 | $ | 33,124 | ||||||||||||
Gross investment gains
|
$ | 680 | $ | 568 | $ | 83 | $ | 114 | $ | 763 | $ | 682 | ||||||||||||
Gross investment losses
|
(601 | ) | (469 | ) | (62 | ) | (11 | ) | (663 | ) | (480 | ) | ||||||||||||
Total OTTI losses recognized in earnings:
|
||||||||||||||||||||||||
Credit-related
|
(382 | ) | (339 | ) | | | (382 | ) | (339 | ) | ||||||||||||||
Other (1)
|
(148 | ) | (18 | ) | (58 | ) | (3 | ) | (206 | ) | (21 | ) | ||||||||||||
Total OTTI losses recognized in earnings
|
(530 | ) | (357 | ) | (58 | ) | (3 | ) | (588 | ) | (360 | ) | ||||||||||||
Net investment gains (losses)
|
$ | (451 | ) | $ | (258 | ) | $ | (37 | ) | $ | 100 | $ | (488 | ) | $ | (158 | ) | |||||||
(1) | Other OTTI losses recognized in earnings include impairments on equity securities, impairments on perpetual hybrid securities classified within fixed maturity securities where the primary reason for the impairment was the severity and/or the duration of an unrealized loss position and fixed maturity securities where there is an intent to sell or it is more likely than not that the Company will be required to sell the security before recovery of the decline in estimated fair value. |
35
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Sector:
|
||||||||||||||||
U.S. and foreign corporate securities by industry:
|
||||||||||||||||
Finance
|
$ | 7 | $ | 54 | $ | 48 | $ | 82 | ||||||||
Consumer
|
6 | 8 | 35 | 31 | ||||||||||||
Communications
|
12 | 9 | 26 | 12 | ||||||||||||
Utility
|
6 | | 7 | 3 | ||||||||||||
Total U.S. and foreign corporate securities
|
31 | 71 | 116 | 128 | ||||||||||||
Foreign government securities
|
206 | | 295 | | ||||||||||||
RMBS
|
34 | 19 | 88 | 76 | ||||||||||||
ABS
|
8 | 26 | 23 | 89 | ||||||||||||
CMBS
|
5 | 3 | 8 | 64 | ||||||||||||
Total
|
$ | 284 | $ | 119 | $ | 530 | $ | 357 | ||||||||
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Sector:
|
||||||||||||||||
Non-redeemable preferred stock
|
$ | | $ | | $ | 38 | $ | | ||||||||
Common stock
|
5 | 1 | 20 | 3 | ||||||||||||
Total
|
$ | 5 | $ | 1 | $ | 58 | $ | 3 | ||||||||
Industry:
|
||||||||||||||||
Financial services industry perpetual hybrid
securities
|
$ | | $ | | $ | 38 | $ | | ||||||||
Other industries
|
5 | 1 | 20 | 3 | ||||||||||||
Total
|
$ | 5 | $ | 1 | $ | 58 | $ | 3 | ||||||||
36
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Balance, beginning of period
|
$ | 401 | $ | 491 | $ | 443 | $ | 581 | ||||||||
Additions:
|
||||||||||||||||
Initial impairments credit loss OTTI recognized on
securities not previously impaired
|
6 | 13 | 32 | 94 | ||||||||||||
Additional impairments credit loss OTTI recognized
on securities previously impaired
|
39 | 34 | 79 | 104 | ||||||||||||
Reductions:
|
||||||||||||||||
Due to sales (maturities, pay downs or prepayments) during the
period of securities previously impaired as credit loss OTTI
|
(8 | ) | (97 | ) | (63 | ) | (231 | ) | ||||||||
Due to securities de-recognized in connection with the adoption
of new guidance related to the consolidation of VIEs
|
| | | (100 | ) | |||||||||||
Due to securities impaired to net present value of expected
future cash flows
|
(1 | ) | | (45 | ) | | ||||||||||
Due to increases in cash flows accretion of previous
credit loss OTTI
|
| (2 | ) | (9 | ) | (9 | ) | |||||||||
Balance, end of period
|
$ | 437 | $ | 439 | $ | 437 | $ | 439 | ||||||||
37
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Investment income:
|
||||||||||||||||
Fixed maturity securities
|
$ | 3,770 | $ | 3,060 | $ | 11,244 | $ | 9,126 | ||||||||
Equity securities
|
28 | 19 | 106 | 83 | ||||||||||||
Trading and other securities Actively Traded
Securities and FVO general account securities (1)
|
(38 | ) | 45 | 6 | 56 | |||||||||||
Mortgage loans
|
806 | 713 | 2,331 | 2,081 | ||||||||||||
Policy loans
|
162 | 155 | 482 | 488 | ||||||||||||
Real estate and real estate joint ventures
|
213 | 131 | 557 | 300 | ||||||||||||
Other limited partnership interests
|
180 | 170 | 582 | 596 | ||||||||||||
Cash, cash equivalents and short-term investments
|
41 | 26 | 131 | 64 | ||||||||||||
International joint ventures (2)
|
7 | 19 | (3 | ) | (61 | ) | ||||||||||
Other
|
82 | (7 | ) | 151 | 181 | |||||||||||
Subtotal
|
5,251 | 4,331 | 15,587 | 12,914 | ||||||||||||
Less: Investment expenses
|
271 | 222 | 774 | 654 | ||||||||||||
Subtotal, net
|
4,980 | 4,109 | 14,813 | 12,260 | ||||||||||||
Trading and other securities FVO
contractholder-directed unit-linked investments (1)
|
(824 | ) | 149 | (437 | ) | 161 | ||||||||||
FVO CSEs:
|
||||||||||||||||
Commercial mortgage loans
|
95 | 102 | 286 | 312 | ||||||||||||
Securities
|
6 | 4 | 7 | 12 | ||||||||||||
Subtotal
|
(723 | ) | 255 | (144 | ) | 485 | ||||||||||
Net investment income
|
$ | 4,257 | $ | 4,364 | $ | 14,669 | $ | 12,745 | ||||||||
(1) | Changes in estimated fair value subsequent to purchase included in net investment income were: |
Trading and other securities Actively Traded
Securities and FVO general account securities
|
$ | (46 | ) | $ | 29 | $ | (25 | ) | $ | 16 | ||||||
Trading and other securities FVO
contractholder-directed unit-linked investments
|
$ | (873 | ) | $ | 124 | $ | (641 | ) | $ | 111 |
(2) | Amounts are presented net of changes in estimated fair value of derivatives related to economic hedges of the Companys investment in these equity method international joint venture investments that do not qualify for hedge accounting of $0 and ($23) million for the three months and nine months ended September 30, 2011, respectively, and ($12) million and $65 million for the three months and nine months ended September 30, 2010, respectively. |
38
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Securities on loan:
|
||||||||
Amortized cost
|
$ | 22,488 | $ | 23,715 | ||||
Estimated fair value
|
$ | 26,040 | $ | 24,230 | ||||
Aging of cash collateral liability:
|
||||||||
Open (1)
|
$ | 2,440 | $ | 2,752 | ||||
Less than thirty days
|
14,993 | 12,301 | ||||||
Thirty days or greater but less than sixty days
|
5,405 | 4,399 | ||||||
Sixty days or greater but less than ninety days
|
2,057 | 2,291 | ||||||
Ninety days or greater
|
908 | 2,904 | ||||||
Total cash collateral liability
|
$ | 25,803 | $ | 24,647 | ||||
Security collateral on deposit from counterparties
|
$ | 613 | $ | | ||||
Reinvestment portfolio estimated fair value
|
$ | 25,520 | $ | 24,177 | ||||
(1) | Open meaning that the related loaned security could be returned to the Company on the next business day, requiring the Company to immediately return the cash collateral. |
39
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Invested assets on deposit:
|
||||||||
Regulatory agencies
|
$ | 2,050 | $ | 2,110 | ||||
Invested assets held in trust:
|
||||||||
Collateral financing arrangements
|
5,342 | 5,340 | ||||||
Reinsurance arrangements
|
4,885 | 3,090 | ||||||
Invested assets pledged as collateral:
|
||||||||
Funding agreements and advances Federal Home Loan
Bank (FHLB) of New York
|
21,385 | 21,975 | ||||||
Funding agreements Federal Agricultural Mortgage
Corporation
|
3,160 | 3,159 | ||||||
Funding agreements FHLB of Des Moines
|
904 | | ||||||
Funding agreements FHLB of Boston
|
529 | 211 | ||||||
Federal Reserve Bank of New York
|
1,686 | 1,822 | ||||||
Collateral financing arrangements
|
273 | 112 | ||||||
Derivative transactions
|
1,029 | 1,726 | ||||||
Short sale agreements
|
467 | 465 | ||||||
Total invested assets on deposit, held in trust and pledged as
collateral
|
$ | 41,710 | $ | 40,010 | ||||
40
September 30, 2011 | December 31, 2010 | |||||||||||||||
Carrying |
% of |
Carrying |
% of |
|||||||||||||
Value | Total | Value | Total | |||||||||||||
(In millions) | (In millions) | |||||||||||||||
Mortgage loans
held-for-investment:
|
||||||||||||||||
Commercial
|
$ | 40,120 | 63.8 | % | $ | 37,818 | 60.7 | % | ||||||||
Agricultural
|
12,967 | 20.6 | 12,751 | 20.4 | ||||||||||||
Residential
|
3,424 | 5.4 | 2,231 | 3.7 | ||||||||||||
Subtotal
|
56,511 | 89.8 | 52,800 | 84.8 | ||||||||||||
Valuation allowances
|
(529 | ) | (0.8 | ) | (664 | ) | (1.1 | ) | ||||||||
Subtotal mortgage loans
held-for-investment,
net
|
55,982 | 89.0 | 52,136 | 83.7 | ||||||||||||
Commercial mortgage loans held by CSEs FVO
|
3,227 | 5.1 | 6,840 | 11.0 | ||||||||||||
Total mortgage loans
held-for-investment,
net
|
59,209 | 94.1 | 58,976 | 94.7 | ||||||||||||
Mortgage loans
held-for-sale:
|
||||||||||||||||
Residential FVO
|
2,590 | 4.1 | 2,510 | 4.0 | ||||||||||||
Mortgage loans lower of amortized cost or estimated
fair value
|
1,150 | 1.8 | 811 | 1.3 | ||||||||||||
Total mortgage loans
held-for-sale
|
3,740 | 5.9 | 3,321 | 5.3 | ||||||||||||
Total mortgage loans, net
|
$ | 62,949 | 100.0 | % | $ | 62,297 | 100.0 | % | ||||||||
41
Commercial | Agricultural | Residential | Total | |||||||||||||
(In millions) | ||||||||||||||||
September 30, 2011:
|
||||||||||||||||
Mortgage loans:
|
||||||||||||||||
Evaluated individually for credit losses
|
$ | 211 | $ | 150 | $ | 7 | $ | 368 | ||||||||
Evaluated collectively for credit losses
|
39,909 | 12,817 | 3,417 | 56,143 | ||||||||||||
Total mortgage loans
|
40,120 | 12,967 | 3,424 | 56,511 | ||||||||||||
Valuation allowances:
|
||||||||||||||||
Specific credit losses
|
70 | 46 | 1 | 117 | ||||||||||||
Non-specifically identified credit losses
|
358 | 36 | 18 | 412 | ||||||||||||
Total valuation allowances
|
428 | 82 | 19 | 529 | ||||||||||||
Mortgage loans, net of valuation allowance
|
$ | 39,692 | $ | 12,885 | $ | 3,405 | $ | 55,982 | ||||||||
December 31, 2010:
|
||||||||||||||||
Mortgage loans:
|
||||||||||||||||
Evaluated individually for credit losses
|
$ | 120 | $ | 146 | $ | 13 | $ | 279 | ||||||||
Evaluated collectively for credit losses
|
37,698 | 12,605 | 2,218 | 52,521 | ||||||||||||
Total mortgage loans
|
37,818 | 12,751 | 2,231 | 52,800 | ||||||||||||
Valuation allowances:
|
||||||||||||||||
Specific credit losses
|
36 | 52 | | 88 | ||||||||||||
Non-specifically identified credit losses
|
526 | 36 | 14 | 576 | ||||||||||||
Total valuation allowances
|
562 | 88 | 14 | 664 | ||||||||||||
Mortgage loans, net of valuation allowance
|
$ | 37,256 | $ | 12,663 | $ | 2,217 | $ | 52,136 | ||||||||
42
Mortgage Loan Valuation Allowances | ||||||||||||||||
Commercial | Agricultural | Residential | Total | |||||||||||||
(In millions) | ||||||||||||||||
For the Three Months Ended September 30, 2011:
|
||||||||||||||||
Balance, beginning of period
|
$ | 469 | $ | 79 | $ | 18 | $ | 566 | ||||||||
Provision (release)
|
(41 | ) | 3 | 2 | (36 | ) | ||||||||||
Charge-offs, net of recoveries
|
| | (1 | ) | (1 | ) | ||||||||||
Balance, end of period
|
$ | 428 | $ | 82 | $ | 19 | $ | 529 | ||||||||
For the Three Months Ended September 30, 2010:
|
||||||||||||||||
Balance, beginning of period
|
$ | 621 | $ | 96 | $ | 17 | $ | 734 | ||||||||
Provision (release)
|
(27 | ) | 1 | 3 | (23 | ) | ||||||||||
Charge-offs, net of recoveries
|
(21 | ) | (21 | ) | (3 | ) | (45 | ) | ||||||||
Balance, end of period
|
$ | 573 | $ | 76 | $ | 17 | $ | 666 | ||||||||
For the Nine Months Ended September 30, 2011:
|
||||||||||||||||
Balance, beginning of period
|
$ | 562 | $ | 88 | $ | 14 | $ | 664 | ||||||||
Provision (release)
|
(134 | ) | (3 | ) | 7 | (130 | ) | |||||||||
Charge-offs, net of recoveries
|
| (3 | ) | (2 | ) | (5 | ) | |||||||||
Balance, end of period
|
$ | 428 | $ | 82 | $ | 19 | $ | 529 | ||||||||
For the Nine Months Ended September 30, 2010:
|
||||||||||||||||
Balance, beginning of period
|
$ | 589 | $ | 115 | $ | 17 | $ | 721 | ||||||||
Provision (release)
|
6 | | 5 | 11 | ||||||||||||
Charge-offs, net of recoveries
|
(22 | ) | (39 | ) | (5 | ) | (66 | ) | ||||||||
Balance, end of period
|
$ | 573 | $ | 76 | $ | 17 | $ | 666 | ||||||||
43
Commercial | ||||||||||||||||||||||||||||
Recorded Investment | ||||||||||||||||||||||||||||
Debt Service Coverage Ratios |
Estimated |
|||||||||||||||||||||||||||
> 1.20x | 1.00x - 1.20x | < 1.00x | Total | % of Total | Fair Value | % of Total | ||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||
September 30, 2011:
|
||||||||||||||||||||||||||||
Loan-to-value
ratios:
|
||||||||||||||||||||||||||||
Less than 65%
|
$ | 22,293 | $ | 438 | $ | 565 | $ | 23,296 | 58.1 | % | $ | 24,587 | 59.2 | % | ||||||||||||||
65% to 75%
|
9,243 | 426 | 383 | 10,052 | 25.0 | 10,404 | 25.1 | |||||||||||||||||||||
76% to 80%
|
1,848 | 251 | 156 | 2,255 | 5.6 | 2,301 | 5.6 | |||||||||||||||||||||
Greater than 80%
|
3,070 | 922 | 525 | 4,517 | 11.3 | 4,183 | 10.1 | |||||||||||||||||||||
Total
|
$ | 36,454 | $ | 2,037 | $ | 1,629 | $ | 40,120 | 100.0 | % | $ | 41,475 | 100.0 | % | ||||||||||||||
December 31, 2010:
|
||||||||||||||||||||||||||||
Loan-to-value
ratios:
|
||||||||||||||||||||||||||||
Less than 65%
|
$ | 16,663 | $ | 125 | $ | 483 | $ | 17,271 | 45.7 | % | $ | 18,183 | 46.9 | % | ||||||||||||||
65% to 75%
|
9,022 | 765 | 513 | 10,300 | 27.2 | 10,685 | 27.6 | |||||||||||||||||||||
76% to 80%
|
3,033 | 304 | 135 | 3,472 | 9.2 | 3,535 | 9.1 | |||||||||||||||||||||
Greater than 80%
|
4,155 | 1,813 | 807 | 6,775 | 17.9 | 6,374 | 16.4 | |||||||||||||||||||||
Total
|
$ | 32,873 | $ | 3,007 | $ | 1,938 | $ | 37,818 | 100.0 | % | $ | 38,777 | 100.0 | % | ||||||||||||||
Agricultural | ||||||||||||||||
September 30, 2011 | December 31, 2010 | |||||||||||||||
Recorded Investment | % of Total | Recorded Investment | % of Total | |||||||||||||
(In millions) | (In millions) | |||||||||||||||
Loan-to-value
ratios:
|
||||||||||||||||
Less than 65%
|
$ | 11,818 | 91.1 | % | $ | 11,483 | 90.1 | % | ||||||||
65% to 75%
|
740 | 5.7 | 885 | 6.9 | ||||||||||||
76% to 80%
|
19 | 0.2 | 48 | 0.4 | ||||||||||||
Greater than 80%
|
390 | 3.0 | 335 | 2.6 | ||||||||||||
Total
|
$ | 12,967 | 100.0 | % | $ | 12,751 | 100.0 | % | ||||||||
44
Residential | ||||||||||||||||
September 30, 2011 | December 31, 2010 | |||||||||||||||
Recorded Investment | % of Total | Recorded Investment | % of Total | |||||||||||||
(In millions) | (In millions) | |||||||||||||||
Performance indicators:
|
||||||||||||||||
Performing
|
$ | 3,399 | 99.3 | % | $ | 2,149 | 96.3 | % | ||||||||
Nonperforming
|
25 | 0.7 | 82 | 3.7 | ||||||||||||
Total
|
$ | 3,424 | 100.0 | % | $ | 2,231 | 100.0 | % | ||||||||
Greater than 90 Days Past Due |
||||||||||||||||||||||||
Past Due | Still Accruing Interest | Nonaccrual Status | ||||||||||||||||||||||
September 30, 2011 | December 31, 2010 | September 30, 2011 | December 31, 2010 | September 30, 2011 | December 31, 2010 | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Commercial
|
$ | 155 | $ | 58 | $ | 115 | $ | 1 | $ | 60 | $ | 7 | ||||||||||||
Agricultural
|
141 | 159 | 7 | 13 | 165 | 177 | ||||||||||||||||||
Residential
|
33 | 79 | 8 | 11 | 23 | 25 | ||||||||||||||||||
Total
|
$ | 329 | $ | 296 | $ | 130 | $ | 25 | $ | 248 | $ | 209 | ||||||||||||
45
Impaired Mortgage Loans | ||||||||||||||||||||||||||||||||
Loans without |
||||||||||||||||||||||||||||||||
Loans with a Valuation Allowance | a Valuation Allowance | All Impaired Loans | ||||||||||||||||||||||||||||||
Unpaid |
Unpaid |
Unpaid |
||||||||||||||||||||||||||||||
Principal |
Recorded |
Valuation |
Carrying |
Principal |
Recorded |
Principal |
Carrying |
|||||||||||||||||||||||||
Balance (1) | Investment | Allowances | Value | Balance (1) | Investment | Balance (1) | Value | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
September 30, 2011:
|
||||||||||||||||||||||||||||||||
Commercial
|
$ | 211 | $ | 211 | $ | 70 | $ | 141 | $ | 240 | $ | 228 | $ | 451 | $ | 369 | ||||||||||||||||
Agricultural
|
150 | 150 | 46 | 104 | 84 | 81 | 234 | 185 | ||||||||||||||||||||||||
Residential
|
7 | 7 | 1 | 6 | 14 | 14 | 21 | 20 | ||||||||||||||||||||||||
Total
|
$ | 368 | $ | 368 | $ | 117 | $ | 251 | $ | 338 | $ | 323 | $ | 706 | $ | 574 | ||||||||||||||||
December 31, 2010:
|
||||||||||||||||||||||||||||||||
Commercial
|
$ | 120 | $ | 120 | $ | 36 | $ | 84 | $ | 99 | $ | 87 | $ | 219 | $ | 171 | ||||||||||||||||
Agricultural
|
146 | 146 | 52 | 94 | 123 | 119 | 269 | 213 | ||||||||||||||||||||||||
Residential
|
3 | 3 | | 3 | 16 | 16 | 19 | 19 | ||||||||||||||||||||||||
Total
|
$ | 269 | $ | 269 | $ | 88 | $ | 181 | $ | 238 | $ | 222 | $ | 507 | $ | 403 | ||||||||||||||||
(1) | Unpaid principal balance is generally prior to any charge-offs. |
46
Impaired Mortgage Loans | ||||||||||||
Average Investment | Interest Income Recognized | |||||||||||
Cash Basis | Accrual Basis | |||||||||||
(In millions) | ||||||||||||
For the Three Months Ended September 30, 2011:
|
||||||||||||
Commercial
|
$ | 330 | $ | | $ | | ||||||
Agricultural
|
229 | 1 | | |||||||||
Residential
|
17 | | | |||||||||
Total
|
$ | 576 | $ | 1 | $ | | ||||||
For the Three Months Ended September 30, 2010:
|
||||||||||||
Commercial
|
$ | 148 | $ | | $ | | ||||||
Agricultural
|
286 | | 1 | |||||||||
Residential
|
18 | | | |||||||||
Total
|
$ | 452 | $ | | $ | 1 | ||||||
For the Nine Months Ended September 30, 2011:
|
||||||||||||
Commercial
|
$ | 308 | $ | 1 | $ | | ||||||
Agricultural
|
258 | 3 | 1 | |||||||||
Residential
|
26 | | | |||||||||
Total
|
$ | 592 | $ | 4 | $ | 1 | ||||||
For the Nine Months Ended September 30, 2010:
|
||||||||||||
Commercial
|
$ | 147 | $ | 4 | $ | 1 | ||||||
Agricultural
|
288 | 3 | 1 | |||||||||
Residential
|
15 | | | |||||||||
Total
|
$ | 450 | $ | 7 | $ | 2 | ||||||
47
Mortgage Loans Modified in a Troubled Debt |
||||||||||||
Restructuring | ||||||||||||
September 30,2011 | ||||||||||||
Number of |
||||||||||||
Mortgage |
Carrying Value after Specific |
|||||||||||
Loans | Valuation Allowance | |||||||||||
Pre- |
Post- |
|||||||||||
Modification | Modification | |||||||||||
(In millions) | ||||||||||||
Commercial
|
5 | $ | 147 | $ | 109 | |||||||
Agricultural
|
9 | 36 | 37 | |||||||||
Residential
|
3 | 1 | 1 | |||||||||
Total
|
17 | $ | 184 | $ | 147 | |||||||
Fixed Maturity Securities | Mortgage Loans | |||||||||||||||
September 30, 2011 | December 31, 2010 | September 30, 2011 | December 31, 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Outstanding principal and interest balance (1)
|
$ | 3,685 | $ | 1,548 | $ | 542 | $ | 504 | ||||||||
Carrying value (2)
|
$ | 2,536 | $ | 1,050 | $ | 225 | $ | 195 |
(1) | Represents the contractually required payments which is the sum of contractual principal, whether or not currently due, and accrued interest. |
48
(2) | Estimated fair value plus accrued interest for fixed maturity securities and amortized cost, plus accrued interest, less any valuation allowances, for mortgage loans. |
Fixed Maturity Securities | Mortgage Loans | |||||||||||||||
Nine Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Contractually required payments (including interest)
|
$ | 3,528 | $ | 1,544 | $ | | $ | | ||||||||
Cash flows expected to be collected (1)
|
$ | 3,275 | $ | 1,479 | $ | | $ | | ||||||||
Fair value of investments acquired
|
$ | 1,816 | $ | 889 | $ | | $ | |
(1) | Represents undiscounted principal and interest cash flow expectations at the date of acquisition. |
Fixed Maturity Securities | Mortgage Loans | |||||||||||||||||||||||||||||||
Three Months |
Nine Months |
Three Months |
Nine Months |
|||||||||||||||||||||||||||||
Ended |
Ended |
Ended |
Ended |
|||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Accretable yield, beginning of period
|
$ | 1,891 | $ | 369 | $ | 541 | $ | | $ | 258 | $ | | $ | 170 | $ | | ||||||||||||||||
Investments purchased
|
238 | 202 | 1,459 | 590 | | | | | ||||||||||||||||||||||||
Accretion recognized in net investment income
|
(23 | ) | (27 | ) | (72 | ) | (34 | ) | (6 | ) | | (38 | ) | | ||||||||||||||||||
Disposals
|
| | (69 | ) | | | | | | |||||||||||||||||||||||
Reclassification (to) from nonaccretable difference
|
68 | (41 | ) | 315 | (53 | ) | 17 | | 137 | | ||||||||||||||||||||||
Accretable yield, end of period
|
$ | 2,174 | $ | 503 | $ | 2,174 | $ | 503 | $ | 269 | $ | | $ | 269 | $ | | ||||||||||||||||
49
September 30, 2011 | December 31, 2010 | |||||||||||||||
Total |
Total |
Total |
Total |
|||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||
(In millions) | ||||||||||||||||
Consolidated securitization entities (1)
|
$ | 3,397 | $ | 3,204 | $ | 7,114 | $ | 6,892 | ||||||||
MRSC collateral financing arrangement (2)
|
3,317 | | 3,333 | | ||||||||||||
Other limited partnership interests
|
343 | 7 | 319 | 85 | ||||||||||||
Trading and other securities
|
181 | | 186 | | ||||||||||||
Other invested assets
|
102 | 1 | 108 | 1 | ||||||||||||
Real estate joint ventures
|
13 | 19 | 20 | 17 | ||||||||||||
Total
|
$ | 7,353 | $ | 3,231 | $ | 11,080 | $ | 6,995 | ||||||||
(1) | The Company consolidates former qualified special purpose entities (QSPEs) that are structured as CMBS and former QSPEs that are structured as collateralized debt obligations. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company or any of its subsidiaries or affiliates liable for any principal or interest shortfalls should any arise. The Companys exposure was limited to that of its remaining investment in the former QSPEs of $170 million and $201 million at estimated fair value at September 30, 2011 and December 31, 2010, respectively. The long-term debt referred to below bears interest at primarily fixed rates ranging from 2.25% to 5.57%, payable primarily on a monthly basis and is expected to be repaid over the next six years. Interest expense related to these obligations, included in other expenses, was $97 million and $281 million for the three months and nine months ended September 30, 2011, respectively, and $103 million and $312 million for the three months and nine months ended September 30, 2010, respectively. The Company sold certain of these CMBS investments in the third quarter of 2011, resulting in the |
50
deconsolidation of such entities and their related mortgage loans held-for-investment and long-term debt. The assets and liabilities of these CSEs, at estimated fair value, were as follows at: |
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Assets:
|
||||||||
Mortgage loans
held-for-investment
(commercial mortgage loans)
|
$ | 3,227 | $ | 6,840 | ||||
Trading and other securities
|
140 | 201 | ||||||
Accrued investment income
|
17 | 34 | ||||||
Cash and cash equivalents
|
13 | 39 | ||||||
Total assets
|
$ | 3,397 | $ | 7,114 | ||||
Liabilities:
|
||||||||
Long-term debt
|
$ | 3,157 | $ | 6,820 | ||||
Other liabilities
|
47 | 72 | ||||||
Total liabilities
|
$ | 3,204 | $ | 6,892 | ||||
(2) | See Note 12 of the Notes to the Consolidated Financial Statements included in the 2010 Annual Report for a description of the MetLife Reinsurance Company of South Carolina (MRSC) collateral financing arrangement. These assets consist of the following, at estimated fair value, at: |
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Fixed maturity securities
available-for-sale:
|
||||||||
ABS
|
$ | 1,391 | $ | 1,333 | ||||
U.S. corporate securities
|
787 | 893 | ||||||
RMBS
|
522 | 547 | ||||||
CMBS
|
399 | 383 | ||||||
Foreign corporate securities
|
126 | 139 | ||||||
State and political subdivision securities
|
40 | 30 | ||||||
Foreign government securities
|
| 5 | ||||||
Mortgage loans
|
50 | | ||||||
Cash and cash equivalents
|
2 | 3 | ||||||
Total
|
$ | 3,317 | $ | 3,333 | ||||
51
September 30, 2011 | December 31, 2010 | |||||||||||||||
Maximum |
Maximum |
|||||||||||||||
Carrying |
Exposure |
Carrying |
Exposure |
|||||||||||||
Amount | to Loss (1) | Amount | to Loss (1) | |||||||||||||
(In millions) | ||||||||||||||||
Fixed maturity securities
available-for-sale:
|
||||||||||||||||
RMBS (2)
|
$ | 41,893 | $ | 41,893 | $ | 44,733 | $ | 44,733 | ||||||||
CMBS (2)
|
19,585 | 19,585 | 20,675 | 20,675 | ||||||||||||
ABS (2)
|
14,418 | 14,418 | 14,287 | 14,287 | ||||||||||||
U.S. corporate securities
|
2,978 | 2,978 | 2,435 | 2,435 | ||||||||||||
Foreign corporate securities
|
2,252 | 2,252 | 2,950 | 2,950 | ||||||||||||
Other limited partnership interests
|
4,419 | 6,166 | 4,383 | 6,479 | ||||||||||||
Trading and other securities
|
737 | 737 | 789 | 789 | ||||||||||||
Other invested assets
|
624 | 1,206 | 576 | 773 | ||||||||||||
Mortgage loans
|
513 | 513 | 350 | 350 | ||||||||||||
Real estate joint ventures
|
65 | 83 | 40 | 108 | ||||||||||||
Total
|
$ | 87,484 | $ | 89,831 | $ | 91,218 | $ | 93,579 | ||||||||
(1) | The maximum exposure to loss relating to the fixed maturity and trading and other securities is equal to the carrying amounts or carrying amounts of retained interests. The maximum exposure to loss relating to the other limited partnership interests and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments of the Company. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. The maximum exposure to loss relating to mortgage loans is equal to the carrying amounts plus any unfunded commitments of the Company. For certain of its investments in other invested assets, the Companys return is in the form of income tax credits which are guaranteed by a creditworthy third party. 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 $281 million and $231 million at September 30, 2011 and December 31, 2010, respectively. | |
(2) | For these variable interests, the Companys involvement is limited to that of a passive investor. |
4. | Derivative Financial Instruments |
52
53
54
September 30, 2011 | December 31, 2010 | |||||||||||||||||||||||||
Estimated Fair |
Estimated Fair |
|||||||||||||||||||||||||
Primary Underlying |
Notional |
Value (1) |
Notional |
Value (1) | ||||||||||||||||||||||
Risk Exposure | Instrument Type | Amount | Assets | Liabilities | Amount | Assets | Liabilities | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Interest rate
|
Interest rate swaps | $ | 72,828 | $ | 7,717 | $ | 2,092 | $ | 54,803 | $ | 2,654 | $ | 1,516 | |||||||||||||
Interest rate floors | 23,866 | 1,231 | 165 | 23,866 | 630 | 66 | ||||||||||||||||||||
Interest rate caps | 38,727 | 70 | | 35,412 | 176 | 1 | ||||||||||||||||||||
Interest rate futures | 15,429 | 16 | 28 | 9,385 | 43 | 17 | ||||||||||||||||||||
Interest rate options | 18,088 | 1,100 | 20 | 8,761 | 144 | 23 | ||||||||||||||||||||
Interest rate forwards | 16,812 | 300 | 94 | 10,374 | 106 | 135 | ||||||||||||||||||||
Synthetic GICs | 4,420 | | | 4,397 | | | ||||||||||||||||||||
Foreign currency
|
Foreign currency swaps | 16,823 | 1,311 | 1,042 | 17,626 | 1,616 | 1,282 | |||||||||||||||||||
Foreign currency forwards | 10,029 | 361 | 54 | 10,443 | 119 | 91 | ||||||||||||||||||||
Currency futures | 633 | 1 | 1 | 493 | 2 | | ||||||||||||||||||||
Currency options | 2,502 | 13 | | 5,426 | 50 | | ||||||||||||||||||||
Non-derivative hedging instruments (2) | | | | 169 | | 185 | ||||||||||||||||||||
Credit
|
Credit default swaps | 13,450 | 383 | 173 | 10,957 | 173 | 104 | |||||||||||||||||||
Credit forwards | 20 | 3 | | 90 | 2 | 3 | ||||||||||||||||||||
Equity market
|
Equity futures | 6,845 | 163 | 19 | 8,794 | 21 | 9 | |||||||||||||||||||
Equity options | 17,413 | 3,207 | 204 | 33,688 | 1,843 | 1,197 | ||||||||||||||||||||
Variance swaps | 19,394 | 377 | 67 | 18,022 | 198 | 118 | ||||||||||||||||||||
Total rate of return swaps | 1,612 | 31 | | 1,547 | | | ||||||||||||||||||||
Total | $ | 278,891 | $ | 16,284 | $ | 3,959 | $ | 254,253 | $ | 7,777 | $ | 4,747 | ||||||||||||||
(1) | The estimated fair value of all derivatives in an asset position is reported within other invested assets in the consolidated balance sheets and the estimated fair value of all derivatives in a liability position is reported within other liabilities in the consolidated balance sheets. | |
(2) | The estimated fair value of non-derivative hedging instruments represents the amortized cost of the instruments, as adjusted for foreign currency transaction gains or losses. Non-derivative hedging instruments are reported within policyholder account balances in the consolidated balance sheets. |
55
56
57
58
September 30, 2011 | December 31, 2010 | |||||||||||||||||||||||
Notional |
Estimated Fair Value |
Notional |
Estimated Fair Value | |||||||||||||||||||||
Derivatives Designated as Hedging Instruments | Amount | Assets | Liabilities | Amount | Assets | Liabilities | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Fair value hedges:
|
||||||||||||||||||||||||
Foreign currency swaps
|
$ | 3,241 | $ | 535 | $ | 97 | $ | 4,524 | $ | 907 | $ | 145 | ||||||||||||
Interest rate swaps
|
5,155 | 1,830 | 104 | 5,108 | 823 | 169 | ||||||||||||||||||
Subtotal
|
8,396 | 2,365 | 201 | 9,632 | 1,730 | 314 | ||||||||||||||||||
Cash flow hedges:
|
||||||||||||||||||||||||
Foreign currency swaps
|
6,428 | 420 | 282 | 5,556 | 213 | 347 | ||||||||||||||||||
Interest rate swaps
|
3,380 | 918 | | 3,562 | 102 | 116 | ||||||||||||||||||
Interest rate forwards
|
1,010 | 204 | | 1,140 | | 107 | ||||||||||||||||||
Credit forwards
|
20 | 3 | | 90 | 2 | 3 | ||||||||||||||||||
Subtotal
|
10,838 | 1,545 | 282 | 10,348 | 317 | 573 | ||||||||||||||||||
Foreign operations hedges:
|
||||||||||||||||||||||||
Foreign currency forwards
|
1,915 | 147 | 1 | 1,935 | 9 | 26 | ||||||||||||||||||
Non-derivative hedging instruments
|
| | | 169 | | 185 | ||||||||||||||||||
Subtotal
|
1,915 | 147 | 1 | 2,104 | 9 | 211 | ||||||||||||||||||
Total qualifying hedges
|
$ | 21,149 | $ | 4,057 | $ | 484 | $ | 22,084 | $ | 2,056 | $ | 1,098 | ||||||||||||
59
September 30, 2011 | December 31, 2010 | |||||||||||||||||||||||
Derivatives Not Designated or Not |
Notional |
Estimated Fair Value |
Notional |
Estimated Fair Value | ||||||||||||||||||||
Qualifying as Hedging Instruments | Amount | Assets | Liabilities | Amount | Assets | Liabilities | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Interest rate swaps
|
$ | 64,293 | $ | 4,969 | $ | 1,988 | $ | 46,133 | $ | 1,729 | $ | 1,231 | ||||||||||||
Interest rate floors
|
23,866 | 1,231 | 165 | 23,866 | 630 | 66 | ||||||||||||||||||
Interest rate caps
|
38,727 | 70 | | 35,412 | 176 | 1 | ||||||||||||||||||
Interest rate futures
|
15,429 | 16 | 28 | 9,385 | 43 | 17 | ||||||||||||||||||
Interest rate options
|
18,088 | 1,100 | 20 | 8,761 | 144 | 23 | ||||||||||||||||||
Interest rate forwards
|
15,802 | 96 | 94 | 9,234 | 106 | 28 | ||||||||||||||||||
Synthetic GICs
|
4,420 | | | 4,397 | | | ||||||||||||||||||
Foreign currency swaps
|
7,154 | 356 | 663 | 7,546 | 496 | 790 | ||||||||||||||||||
Foreign currency forwards
|
8,114 | 214 | 53 | 8,508 | 110 | 65 | ||||||||||||||||||
Currency futures
|
633 | 1 | 1 | 493 | 2 | | ||||||||||||||||||
Currency options
|
2,502 | 13 | | 5,426 | 50 | | ||||||||||||||||||
Credit default swaps
|
13,450 | 383 | 173 | 10,957 | 173 | 104 | ||||||||||||||||||
Equity futures
|
6,845 | 163 | 19 | 8,794 | 21 | 9 | ||||||||||||||||||
Equity options
|
17,413 | 3,207 | 204 | 33,688 | 1,843 | 1,197 | ||||||||||||||||||
Variance swaps
|
19,394 | 377 | 67 | 18,022 | 198 | 118 | ||||||||||||||||||
Total rate of return swaps
|
1,612 | 31 | | 1,547 | | | ||||||||||||||||||
Total non-designated or non-qualifying derivatives
|
$ | 257,742 | $ | 12,227 | $ | 3,475 | $ | 232,169 | $ | 5,721 | $ | 3,649 | ||||||||||||
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Derivatives and hedging gains (losses) (1)
|
$ | 6,504 | $ | (327 | ) | $ | 5,992 | $ | 2,872 | |||||||
Embedded derivatives
|
(2,308 | ) | 83 | (1,759 | ) | (1,594 | ) | |||||||||
Total net derivative gains (losses)
|
$ | 4,196 | $ | (244 | ) | $ | 4,233 | $ | 1,278 | |||||||
(1) | Includes foreign currency transaction gains (losses) on hedged items in cash flow and non-qualifying hedge relationships, which are not presented elsewhere in this note. |
60
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Qualifying hedges:
|
||||||||||||||||
Net investment income
|
$ | 28 | $ | 17 | $ | 70 | $ | 58 | ||||||||
Interest credited to policyholder account balances
|
51 | 64 | 169 | 177 | ||||||||||||
Other expenses
|
(1 | ) | (1 | ) | (2 | ) | (5 | ) | ||||||||
Non-qualifying hedges:
|
||||||||||||||||
Net investment income
|
(2 | ) | (1 | ) | (6 | ) | (3 | ) | ||||||||
Other revenues
|
22 | 25 | 55 | 81 | ||||||||||||
Net derivative gains (losses)
|
352 | (30 | ) | 357 | 143 | |||||||||||
Policyholder benefits and claims
|
19 | | 19 | | ||||||||||||
Total
|
$ | 469 | $ | 74 | $ | 662 | $ | 451 | ||||||||
61
Net Derivative |
Net Derivative |
Ineffectiveness |
||||||||||||
Gains (Losses) |
Gains (Losses) |
Recognized in |
||||||||||||
Derivatives in Fair Value |
Hedged Items in Fair Value |
Recognized |
Recognized for |
Net Derivative |
||||||||||
Hedging Relationships | Hedging Relationships | for Derivatives | Hedged Items | Gains (Losses) | ||||||||||
(In millions) | ||||||||||||||
For the Three Months Ended September 30, 2011:
|
||||||||||||||
Interest rate swaps:
|
Fixed maturity securities | $ | (26 | ) | $ | 22 | $ | (4 | ) | |||||
Policyholder account balances (1) | 957 | (944 | ) | 13 | ||||||||||
Foreign currency swaps:
|
Foreign-denominated fixed maturity securities | 1 | (1 | ) | | |||||||||
Foreign-denominated policyholder account balances (2) | (221 | ) | 189 | (32 | ) | |||||||||
Total
|
$ | 711 | $ | (734 | ) | $ | (23 | ) | ||||||
For the Three Months Ended September 30, 2010:
|
||||||||||||||
Interest rate swaps:
|
Fixed maturity securities | $ | (13 | ) | $ | 13 | $ | | ||||||
Policyholder account balances (1) | 212 | (221 | ) | (9 | ) | |||||||||
Foreign currency swaps:
|
Foreign-denominated fixed maturity securities | (5 | ) | 5 | | |||||||||
Foreign-denominated policyholder account balances (2) | 415 | (395 | ) | 20 | ||||||||||
Total
|
$ | 609 | $ | (598 | ) | $ | 11 | |||||||
For the Nine Months Ended September 30, 2011:
|
||||||||||||||
Interest rate swaps:
|
Fixed maturity securities | $ | (31 | ) | $ | 27 | $ | (4 | ) | |||||
Policyholder account balances (1) | 1,000 | (978 | ) | 22 | ||||||||||
Foreign currency swaps:
|
Foreign-denominated fixed maturity securities | | | | ||||||||||
Foreign-denominated policyholder account balances (2) | 14 | (53 | ) | (39 | ) | |||||||||
Total
|
$ | 983 | $ | (1,004 | ) | $ | (21 | ) | ||||||
For the Nine Months Ended September 30, 2010:
|
||||||||||||||
Interest rate swaps:
|
Fixed maturity securities | $ | (38 | ) | $ | 38 | $ | | ||||||
Policyholder account balances (1) | 678 | (675 | ) | 3 | ||||||||||
Foreign currency swaps:
|
Foreign-denominated fixed maturity securities | 11 | (12 | ) | (1 | ) | ||||||||
Foreign-denominated policyholder account balances (2) | 47 | (51 | ) | (4 | ) | |||||||||
Total
|
$ | 698 | $ | (700 | ) | $ | (2 | ) | ||||||
(1) | Fixed rate liabilities. | |
(2) | Fixed rate or floating rate liabilities. |
62
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Accumulated other comprehensive income (loss), balance at
beginning of period
|
$ | (165 | ) | $ | 593 | $ | (59 | ) | $ | (76 | ) | |||||
Gains (losses) deferred in other comprehensive income (loss) on
the effective portion of cash flow hedges
|
1,630 | (40 | ) | 1,527 | 577 | |||||||||||
Amounts reclassified to net derivative gains (losses)
|
17 | (1 | ) | 9 | 50 | |||||||||||
Amounts reclassified to net investment income
|
1 | 1 | 2 | 3 | ||||||||||||
Amounts reclassified to other expenses
|
3 | | 7 | (1 | ) | |||||||||||
Accumulated other comprehensive income (loss), balance at end of
period
|
$ | 1,486 | $ | 553 | $ | 1,486 | $ | 553 | ||||||||
63
Amount of Gains |
Amount and Location |
|||||||||||||||||||||||
(Losses) Deferred |
of Gains (Losses) |
Amount and Location |
||||||||||||||||||||||
in Accumulated Other |
Reclassified from |
of Gains (Losses) |
||||||||||||||||||||||
Derivatives in Cash Flow |
Comprehensive Income |
Accumulated Other Comprehensive |
Recognized in Income (Loss) |
|||||||||||||||||||||
Hedging Relationships | (Loss) on Derivatives | Income (Loss) into Income (Loss) | on Derivatives | |||||||||||||||||||||
(Ineffective Portion and |
||||||||||||||||||||||||
Amount Excluded from |
||||||||||||||||||||||||
(Effective Portion) | (Effective Portion) | Effectiveness Testing) | ||||||||||||||||||||||
Net Derivative |
Net Investment |
Other |
Net Derivative |
Net Investment |
||||||||||||||||||||
Gains (Losses) | Income | Expenses | Gains (Losses) | Income | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
For the Three Months Ended September 30, 2011:
|
||||||||||||||||||||||||
Interest rate swaps
|
$ | 927 | $ | (42 | ) | $ | | $ | (3 | ) | $ | (1 | ) | $ | | |||||||||
Foreign currency swaps
|
399 | 25 | (2 | ) | | 5 | | |||||||||||||||||
Interest rate forwards
|
289 | (1 | ) | | | 27 | | |||||||||||||||||
Credit forwards
|
15 | 1 | 1 | | | | ||||||||||||||||||
Total
|
$ | 1,630 | $ | (17 | ) | $ | (1 | ) | $ | (3 | ) | $ | 31 | $ | | |||||||||
For the Three Months Ended September 30, 2010:
|
||||||||||||||||||||||||
Interest rate swaps
|
$ | 181 | $ | | $ | | $ | | $ | 1 | $ | | ||||||||||||
Foreign currency swaps
|
(247 | ) | 1 | (2 | ) | | (3 | ) | | |||||||||||||||
Interest rate forwards
|
15 | | 1 | | | | ||||||||||||||||||
Credit forwards
|
11 | | | | | | ||||||||||||||||||
Total
|
$ | (40 | ) | $ | 1 | $ | (1 | ) | $ | | $ | (2 | ) | $ | | |||||||||
For the Nine Months Ended September 30, 2011:
|
||||||||||||||||||||||||
Interest rate swaps
|
$ | 944 | $ | (41 | ) | $ | 1 | $ | (7 | ) | $ | 1 | $ | | ||||||||||
Foreign currency swaps
|
259 | 10 | (5 | ) | 1 | 3 | | |||||||||||||||||
Interest rate forwards
|
307 | 21 | 1 | (1 | ) | 16 | | |||||||||||||||||
Credit forwards
|
17 | 1 | 1 | | | | ||||||||||||||||||
Total
|
$ | 1,527 | $ | (9 | ) | $ | (2 | ) | $ | (7 | ) | $ | 20 | $ | | |||||||||
For the Nine Months Ended September 30, 2010:
|
||||||||||||||||||||||||
Interest rate swaps
|
$ | 457 | $ | | $ | | $ | | $ | 3 | $ | | ||||||||||||
Foreign currency swaps
|
92 | (61 | ) | (5 | ) | 1 | | | ||||||||||||||||
Interest rate forwards
|
| 11 | 2 | | | | ||||||||||||||||||
Credit forwards
|
28 | | | | | | ||||||||||||||||||
Total
|
$ | 577 | $ | (50 | ) | $ | (3 | ) | $ | 1 | $ | 3 | $ | | ||||||||||
64
Amount and Location |
||||||||
of Gains (Losses) |
||||||||
Reclassified From Accumulated Other |
||||||||
Amount of Gains (Losses) |
Comprehensive Income |
|||||||
Deferred in Accumulated |
(Loss) into Income (Loss) |
|||||||
Derivatives and Non-Derivative Hedging Instruments in Net |
Other Comprehensive Income (Loss) |
(Effective Portion) | ||||||
Investment Hedging Relationships (1), (2) | (Effective Portion) | Net Investment Gains (Losses) | ||||||
(In millions) | ||||||||
For the Three Months Ended September 30, 2011:
|
||||||||
Foreign currency forwards
|
$ | 185 | $ | | ||||
Non-derivative hedging instruments
|
| | ||||||
Total
|
$ | 185 | $ | | ||||
For the Three Months Ended September 30, 2010:
|
||||||||
Foreign currency forwards
|
$ | (162 | ) | $ | | |||
Non-derivative hedging instruments
|
(10 | ) | | |||||
Total
|
$ | (172 | ) | $ | | |||
For the Nine Months Ended September 30, 2011:
|
||||||||
Foreign currency forwards
|
$ | 72 | $ | | ||||
Non-derivative hedging instruments
|
6 | | ||||||
Total
|
$ | 78 | $ | | ||||
For the Nine Months Ended September 30, 2010:
|
||||||||
Foreign currency forwards
|
$ | (135 | ) | $ | | |||
Non-derivative hedging instruments
|
(10 | ) | | |||||
Total
|
$ | (145 | ) | $ | | |||
(1) | During the nine months ended September 30, 2011, the Company sold its interest in its Japanese joint venture, which was a hedged item in a net investment hedging relationship. See Note 2. As a result, the Company released losses of $71 million from accumulated other comprehensive income (loss) upon the sale. This release did not impact net income for the nine months ended September 30, 2011 as such losses were considered in the overall impairment evaluation of the investment prior to sale. During the three months and nine months ended September 30, 2010, there were no sales or substantial liquidations of net investments in foreign operations that |
65
would have required the reclassification of gains or losses from accumulated other comprehensive income (loss) into earnings. | ||
(2) | There was no ineffectiveness recognized for the Companys hedges of net investments in foreign operations. |
66
Net |
Net |
Policyholder |
||||||||||||||||||
Derivative |
Investment |
Benefits and |
Other |
Other |
||||||||||||||||
Gains (Losses) | Income (1) | Claims (2) | Revenues (3) | Expenses (4) | ||||||||||||||||
(In millions) | ||||||||||||||||||||
For the Three Months Ended September 30, 2011:
|
||||||||||||||||||||
Interest rate swaps
|
$ | 1,805 | $ | | $ | | $ | 321 | $ | | ||||||||||
Interest rate floors
|
521 | | | | | |||||||||||||||
Interest rate caps
|
(127 | ) | | | | | ||||||||||||||
Interest rate futures
|
43 | | | (5 | ) | | ||||||||||||||
Equity futures
|
338 | (12 | ) | 314 | | | ||||||||||||||
Foreign currency swaps
|
272 | | | | | |||||||||||||||
Foreign currency forwards
|
406 | | | | | |||||||||||||||
Currency futures
|
28 | | | | | |||||||||||||||
Currency options
|
(18 | ) | | | | | ||||||||||||||
Equity options
|
1,432 | 5 | | | | |||||||||||||||
Interest rate options
|
962 | | | 27 | | |||||||||||||||
Interest rate forwards
|
(5 | ) | | | (49 | ) | | |||||||||||||
Variance swaps
|
325 | | | | | |||||||||||||||
Credit default swaps
|
163 | 15 | | | | |||||||||||||||
Total rate of return swaps
|
27 | | 5 | | | |||||||||||||||
Total
|
$ | 6,172 | $ | 8 | $ | 319 | $ | 294 | $ | | ||||||||||
For the Three Months Ended September 30, 2010:
|
||||||||||||||||||||
Interest rate swaps
|
$ | 518 | $ | 2 | $ | | $ | 138 | $ | | ||||||||||
Interest rate floors
|
227 | | | | | |||||||||||||||
Interest rate caps
|
(50 | ) | | | | | ||||||||||||||
Interest rate futures
|
74 | (2 | ) | | (1 | ) | | |||||||||||||
Equity futures
|
23 | (15 | ) | (195 | ) | | | |||||||||||||
Foreign currency swaps
|
(272 | ) | | | | | ||||||||||||||
Foreign currency forwards
|
(56 | ) | 2 | | | | ||||||||||||||
Currency options
|
(12 | ) | | | | | ||||||||||||||
Equity options
|
(553 | ) | (23 | ) | | | | |||||||||||||
Interest rate options
|
9 | | | (3 | ) | | ||||||||||||||
Interest rate forwards
|
1 | | | (8 | ) | | ||||||||||||||
Variance swaps
|
(166 | ) | (3 | ) | | | | |||||||||||||
Credit default swaps
|
10 | (2 | ) | | | | ||||||||||||||
Total rate of return swaps
|
29 | | | | | |||||||||||||||
Total
|
$ | (218 | ) | $ | (41 | ) | $ | (195 | ) | $ | 126 | $ | | |||||||
67
Net |
Net |
Policyholder |
||||||||||||||||||
Derivative |
Investment |
Benefits and |
Other |
Other |
||||||||||||||||
Gains (Losses) | Income (1) | Claims (2) | Revenues (3) | Expenses (4) | ||||||||||||||||
(In millions) | ||||||||||||||||||||
For the Nine Months Ended September 30, 2011:
|
||||||||||||||||||||
Interest rate swaps
|
$ | 2,179 | $ | (2 | ) | $ | | $ | 345 | $ | | |||||||||
Interest rate floors
|
503 | | | | | |||||||||||||||
Interest rate caps
|
(209 | ) | | | | | ||||||||||||||
Interest rate futures
|
(6 | ) | 1 | | (9 | ) | | |||||||||||||
Equity futures
|
393 | (9 | ) | 206 | | | ||||||||||||||
Foreign currency swaps
|
80 | | | | | |||||||||||||||
Foreign currency forwards
|
266 | (9 | ) | | | | ||||||||||||||
Currency futures
|
37 | | | | | |||||||||||||||
Currency options
|
(63 | ) | | | | | ||||||||||||||
Equity options
|
1,065 | (6 | ) | | | | ||||||||||||||
Interest rate options
|
948 | | | 24 | | |||||||||||||||
Interest rate forwards
|
(5 | ) | | | (88 | ) | | |||||||||||||
Variance swaps
|
234 | (3 | ) | | | | ||||||||||||||
Credit default swaps
|
149 | 14 | | | | |||||||||||||||
Total rate of return swaps
|
26 | | 5 | | | |||||||||||||||
Total
|
$ | 5,597 | $ | (14 | ) | $ | 211 | $ | 272 | $ | | |||||||||
For the Nine Months Ended September 30, 2010:
|
||||||||||||||||||||
Interest rate swaps
|
$ | 1,561 | $ | 5 | $ | 39 | $ | 394 | $ | | ||||||||||
Interest rate floors
|
501 | | | | | |||||||||||||||
Interest rate caps
|
(261 | ) | | | | | ||||||||||||||
Interest rate futures
|
141 | (8 | ) | | (4 | ) | | |||||||||||||
Equity futures
|
(146 | ) | (5 | ) | (124 | ) | | | ||||||||||||
Foreign currency swaps
|
74 | | | | | |||||||||||||||
Foreign currency forwards
|
269 | 40 | | | | |||||||||||||||
Currency options
|
5 | (1 | ) | | | (4 | ) | |||||||||||||
Equity options
|
431 | 14 | | | | |||||||||||||||
Interest rate options
|
59 | | | (4 | ) | | ||||||||||||||
Interest rate forwards
|
9 | | | (94 | ) | | ||||||||||||||
Variance swaps
|
164 | 5 | | | | |||||||||||||||
Credit default swaps
|
25 | 1 | | | | |||||||||||||||
Total rate of return swaps
|
10 | | | | | |||||||||||||||
Total
|
$ | 2,842 | $ | 51 | $ | (85 | ) | $ | 292 | $ | (4 | ) | ||||||||
(1) | Changes in estimated fair value related to economic hedges of equity method investments in joint ventures; changes in estimated fair value related to derivatives held in relation to trading portfolios; and changes in estimated fair value related to derivatives held within contractholder-directed unit-linked investments. | |
(2) | Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits. | |
(3) | Changes in estimated fair value related to derivatives held in connection with the Companys mortgage banking activities. |
68
(4) | Changes in estimated fair value related to economic hedges of foreign currency exposure associated with the Companys international subsidiaries. |
69
September 30, 2011 | December 31, 2010 | |||||||||||||||||||||||
Maximum |
Maximum |
|||||||||||||||||||||||
Estimated |
Amount |
Estimated |
Amount |
|||||||||||||||||||||
Fair Value |
of Future |
Weighted |
Fair Value |
of Future |
Weighted |
|||||||||||||||||||
of Credit |
Payments under |
Average |
of Credit |
Payments under |
Average |
|||||||||||||||||||
Rating Agency Designation of Referenced |
Default |
Credit Default |
Years to |
Default |
Credit Default |
Years to |
||||||||||||||||||
Credit Obligations (1) | Swaps | Swaps (2) | Maturity (3) | Swaps | Swaps (2) | Maturity (3) | ||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||
Aaa/Aa/A
|
||||||||||||||||||||||||
Single name credit default swaps (corporate)
|
$ | 3 | $ | 820 | 3.7 | $ | 5 | $ | 470 | 3.8 | ||||||||||||||
Credit default swaps referencing indices
|
(32 | ) | 2,813 | 3.2 | 45 | 2,928 | 3.7 | |||||||||||||||||
Subtotal
|
(29 | ) | 3,633 | 3.4 | 50 | 3,398 | 3.7 | |||||||||||||||||
Baa
|
||||||||||||||||||||||||
Single name credit default swaps (corporate)
|
(34 | ) | 1,320 | 4.3 | 5 | 735 | 4.3 | |||||||||||||||||
Credit default swaps referencing indices
|
(54 | ) | 2,772 | 5.1 | 7 | 931 | 5.0 | |||||||||||||||||
Subtotal
|
(88 | ) | 4,092 | 4.8 | 12 | 1,666 | 4.7 | |||||||||||||||||
Ba
|
||||||||||||||||||||||||
Single name credit default swaps (corporate)
|
(1 | ) | 30 | 3.9 | | 25 | 4.4 | |||||||||||||||||
Credit default swaps referencing indices
|
| | | | | | ||||||||||||||||||
Subtotal
|
(1 | ) | 30 | 3.9 | | 25 | 4.4 | |||||||||||||||||
B
|
||||||||||||||||||||||||
Single name credit default swaps (corporate)
|
| | | | | | ||||||||||||||||||
Credit default swaps referencing indices
|
(1 | ) | 25 | 5.0 | | | | |||||||||||||||||
Subtotal
|
(1 | ) | 25 | 5.0 | | | | |||||||||||||||||
Total
|
$ | (119 | ) | $ | 7,780 | 4.1 | $ | 62 | $ | 5,089 | 4.1 | |||||||||||||
(1) | The rating agency designations are based on availability and the midpoint of the applicable ratings among Moodys, S&P and Fitch. If no rating is available from a rating agency, then an internally developed rating is used. | |
(2) | Assumes the value of the referenced credit obligations is zero. | |
(3) | The weighted average years to maturity of the credit default swaps is calculated based on weighted average notional amounts. |
70
71
Estimated Fair Value of |
Fair Value of Incremental |
|||||||||||||||||||
Collateral Provided: | Collateral Provided Upon: | |||||||||||||||||||
Downgrade in the |
||||||||||||||||||||
One Notch |
Companys Credit Rating |
|||||||||||||||||||
Downgrade |
to a Level that Triggers |
|||||||||||||||||||
Estimated |
in the |
Full Overnight |
||||||||||||||||||
Fair Value (1) of |
Companys |
Collateralization or |
||||||||||||||||||
Derivatives in Net |
Fixed Maturity |
Credit |
Termination of |
|||||||||||||||||
Liability Position | Securities (2) | Cash (3) | Rating | the Derivative Position | ||||||||||||||||
(In millions) | ||||||||||||||||||||
September 30, 2011:
|
||||||||||||||||||||
Derivatives subject to credit-
|
||||||||||||||||||||
contingent provisions
|
$ | 377 | $ | 288 | $ | | $ | 54 | $ | 140 | ||||||||||
Derivatives not subject to credit- contingent provisions
|
13 | 11 | | | | |||||||||||||||
Total
|
$ | 390 | $ | 299 | $ | | $ | 54 | $ | 140 | ||||||||||
December 31, 2010:
|
||||||||||||||||||||
Derivatives subject to credit-
|
||||||||||||||||||||
contingent provisions
|
$ | 1,167 | $ | 1,024 | $ | | $ | 99 | $ | 231 | ||||||||||
Derivatives not subject to credit- contingent provisions
|
22 | | 43 | | | |||||||||||||||
Total
|
$ | 1,189 | $ | 1,024 | $ | 43 | $ | 99 | $ | 231 | ||||||||||
(1) | After taking into consideration the existence of netting agreements. | |
(2) | Included in fixed maturity securities in the consolidated balance sheets. The counterparties are permitted by contract to sell or repledge this collateral. | |
(3) | Included in premiums, reinsurance and other receivables in the consolidated balance sheets. |
72
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Net embedded derivatives within asset host contracts:
|
||||||||
Ceded guaranteed minimum benefits
|
$ | 353 | $ | 185 | ||||
Options embedded in debt or equity securities
|
(62 | ) | (57 | ) | ||||
Other
|
3 | | ||||||
Net embedded derivatives within asset host contracts
|
$ | 294 | $ | 128 | ||||
Net embedded derivatives within liability host contracts:
|
||||||||
Direct guaranteed minimum benefits
|
$ | 2,683 | $ | 370 | ||||
Assumed guaranteed minimum benefits (1)
|
2,119 | 2,186 | ||||||
Other
|
79 | 78 | ||||||
Net embedded derivatives within liability host contracts
|
$ | 4,881 | $ | 2,634 | ||||
(1) | Assumed reinsurance contracts of guaranteed minimum benefits related to GMWBs and GMABs of the Japanese joint venture interest, which was sold during the second quarter of 2011, have been separately presented in the current period. See Note 2. Comparative prior year balances, which were previously presented in direct guaranteed minimum benefits, have been conformed to the current period presentation. |
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Net derivative gains (losses) (1)
|
$ | (2,308 | ) | $ | 83 | $ | (1,759 | ) | $ | (1,594 | ) | |||||
Policyholder benefits and claims
|
$ | 113 | $ | | $ | 105 | $ | 46 |
(1) | The valuation of guaranteed minimum benefits includes an adjustment for nonperformance risk. The amounts included in net derivative gains (losses), in connection with this adjustment, were $1,952 million and $1,986 million for the three months and nine months ended September 30, 2011, respectively, and ($291) million and $399 million for the three months and nine months ended September 30, 2010, respectively. |
5. | Fair Value |
73
September 30, 2011 | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in |
||||||||||||||||
Active Markets for |
Significant Other |
Significant |
Total |
|||||||||||||
Identical Assets |
Observable |
Unobservable |
Estimated |
|||||||||||||
and Liabilities |
Inputs |
Inputs |
Fair |
|||||||||||||
(Level 1) | (Level 2) | (Level 3) | Value | |||||||||||||
(In millions) | ||||||||||||||||
Assets:
|
||||||||||||||||
Fixed maturity securities:
|
||||||||||||||||
U.S. corporate securities
|
$ | | $ | 99,204 | $ | 7,371 | $ | 106,575 | ||||||||
Foreign corporate securities
|
| 58,793 | 4,729 | 63,522 | ||||||||||||
Foreign government securities
|
68 | 49,002 | 3,889 | 52,959 | ||||||||||||
RMBS
|
25 | 41,256 | 612 | 41,893 | ||||||||||||
U.S. Treasury and agency securities
|
21,724 | 20,079 | 31 | 41,834 | ||||||||||||
CMBS
|
| 18,753 | 832 | 19,585 | ||||||||||||
ABS
|
| 11,649 | 2,769 | 14,418 | ||||||||||||
State and political subdivision securities
|
| 13,088 | 53 | 13,141 | ||||||||||||
Other fixed maturity securities
|
| | | | ||||||||||||
Total fixed maturity securities
|
21,817 | 311,824 | 20,286 | 353,927 | ||||||||||||
Equity securities:
|
||||||||||||||||
Common stock
|
875 | 1,097 | 239 | 2,211 | ||||||||||||
Non-redeemable preferred stock
|
| 398 | 509 | 907 | ||||||||||||
Total equity securities
|
875 | 1,495 | 748 | 3,118 | ||||||||||||
Trading and other securities:
|
||||||||||||||||
Actively Traded Securities
|
| 413 | 2 | 415 | ||||||||||||
FVO general account securities
|
| 242 | 27 | 269 | ||||||||||||
FVO contractholder-directed unit-linked investments
|
7,332 | 9,279 | 1,263 | 17,874 | ||||||||||||
FVO securities held by CSEs
|
| 140 | | 140 | ||||||||||||
Total trading and other securities
|
7,332 | 10,074 | 1,292 | 18,698 | ||||||||||||
Short-term investments (1)
|
4,507 | 10,159 | 626 | 15,292 | ||||||||||||
Mortgage loans:
|
||||||||||||||||
Mortgage loans held by CSEs
|
| 3,227 | | 3,227 | ||||||||||||
Mortgage loans
held-for-sale
(2)
|
| 2,560 | 30 | 2,590 | ||||||||||||
Total mortgage loans
|
| 5,787 | 30 | 5,817 | ||||||||||||
Other invested assets:
|
||||||||||||||||
MSRs
|
| | 686 | 686 | ||||||||||||
Other investments
|
361 | 119 | | 480 | ||||||||||||
Derivative assets: (3)
|
||||||||||||||||
Interest rate contracts
|
31 | 10,082 | 321 | 10,434 | ||||||||||||
Foreign currency contracts
|
1 | 1,618 | 67 | 1,686 | ||||||||||||
Credit contracts
|
| 370 | 16 | 386 | ||||||||||||
Equity market contracts
|
164 | 2,697 | 917 | 3,778 | ||||||||||||
Total derivative assets
|
196 | 14,767 | 1,321 | 16,284 | ||||||||||||
Total other invested assets
|
557 | 14,886 | 2,007 | 17,450 | ||||||||||||
Net embedded derivatives within asset host contracts (4)
|
| 2 | 354 | 356 | ||||||||||||
Separate account assets (5)
|
27,622 | 162,169 | 1,708 | 191,499 | ||||||||||||
Total assets
|
$ | 62,710 | $ | 516,396 | $ | 27,051 | $ | 606,157 | ||||||||
Liabilities:
|
||||||||||||||||
Derivative liabilities: (3)
|
||||||||||||||||
Interest rate contracts
|
$ | 109 | $ | 2,267 | $ | 23 | $ | 2,399 | ||||||||
Foreign currency contracts
|
1 | 1,096 | | 1,097 | ||||||||||||
Credit contracts
|
| 127 | 46 | 173 | ||||||||||||
Equity market contracts
|
19 | 204 | 67 | 290 | ||||||||||||
Total derivative liabilities
|
129 | 3,694 | 136 | 3,959 | ||||||||||||
Net embedded derivatives within liability host contracts (4)
|
| 19 | 4,862 | 4,881 | ||||||||||||
Long-term debt of CSEs
|
| 3,045 | 112 | 3,157 | ||||||||||||
Trading liabilities (6)
|
64 | 3 | | 67 | ||||||||||||
Total liabilities
|
$ | 193 | $ | 6,761 | $ | 5,110 | $ | 12,064 | ||||||||
74
December 31, 2010 | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in |
||||||||||||||||
Active Markets for |
Significant Other |
Significant |
Total |
|||||||||||||
Identical Assets |
Observable |
Unobservable |
Estimated |
|||||||||||||
and Liabilities |
Inputs |
Inputs |
Fair |
|||||||||||||
(Level 1) | (Level 2) | (Level 3) | Value | |||||||||||||
(In millions) | ||||||||||||||||
Assets:
|
||||||||||||||||
Fixed maturity securities:
|
||||||||||||||||
U.S. corporate securities
|
$ | | $ | 84,623 | $ | 7,149 | $ | 91,772 | ||||||||
Foreign corporate securities
|
| 62,162 | 5,726 | 67,888 | ||||||||||||
Foreign government securities
|
149 | 38,719 | 3,134 | 42,002 | ||||||||||||
RMBS
|
274 | 43,037 | 1,422 | 44,733 | ||||||||||||
U.S. Treasury and agency securities
|
14,602 | 18,623 | 79 | 33,304 | ||||||||||||
CMBS
|
| 19,664 | 1,011 | 20,675 | ||||||||||||
ABS
|
| 10,142 | 4,145 | 14,287 | ||||||||||||
State and political subdivision securities
|
| 10,083 | 46 | 10,129 | ||||||||||||
Other fixed maturity securities
|
| 3 | 4 | 7 | ||||||||||||
Total fixed maturity securities
|
15,025 | 287,056 | 22,716 | 324,797 | ||||||||||||
Equity securities:
|
||||||||||||||||
Common stock
|
831 | 1,094 | 268 | 2,193 | ||||||||||||
Non-redeemable preferred stock
|
| 504 | 905 | 1,409 | ||||||||||||
Total equity securities
|
831 | 1,598 | 1,173 | 3,602 | ||||||||||||
Trading and other securities:
|
||||||||||||||||
Actively Traded Securities
|
| 453 | 10 | 463 | ||||||||||||
FVO general account securities
|
| 54 | 77 | 131 | ||||||||||||
FVO contractholder-directed unit-linked investments
|
6,270 | 10,789 | 735 | 17,794 | ||||||||||||
FVO securities held by CSEs
|
| 201 | | 201 | ||||||||||||
Total trading and other securities
|
6,270 | 11,497 | 822 | 18,589 | ||||||||||||
Short-term investments (1)
|
3,026 | 4,681 | 858 | 8,565 | ||||||||||||
Mortgage loans:
|
||||||||||||||||
Mortgage loans held by CSEs
|
| 6,840 | | 6,840 | ||||||||||||
Mortgage loans
held-for-sale
(2)
|
| 2,486 | 24 | 2,510 | ||||||||||||
Total mortgage loans
|
| 9,326 | 24 | 9,350 | ||||||||||||
Other invested assets:
|
||||||||||||||||
MSRs
|
| | 950 | 950 | ||||||||||||
Other investments
|
373 | 121 | | 494 | ||||||||||||
Derivative assets: (3)
|
||||||||||||||||
Interest rate contracts
|
131 | 3,583 | 39 | 3,753 | ||||||||||||
Foreign currency contracts
|
2 | 1,711 | 74 | 1,787 | ||||||||||||
Credit contracts
|
| 125 | 50 | 175 | ||||||||||||
Equity market contracts
|
23 | 1,757 | 282 | 2,062 | ||||||||||||
Total derivative assets
|
156 | 7,176 | 445 | 7,777 | ||||||||||||
Total other invested assets
|
529 | 7,297 | 1,395 | 9,221 | ||||||||||||
Net embedded derivatives within asset host contracts (4)
|
| | 185 | 185 | ||||||||||||
Separate account assets (5)
|
25,566 | 155,589 | 1,983 | 183,138 | ||||||||||||
Total assets
|
$ | 51,247 | $ | 477,044 | $ | 29,156 | $ | 557,447 | ||||||||
Liabilities:
|
||||||||||||||||
Derivative liabilities: (3)
|
||||||||||||||||
Interest rate contracts
|
$ | 35 | $ | 1,598 | $ | 125 | $ | 1,758 | ||||||||
Foreign currency contracts
|
| 1,372 | 1 | 1,373 | ||||||||||||
Credit contracts
|
| 101 | 6 | 107 | ||||||||||||
Equity market contracts
|
10 | 1,174 | 140 | 1,324 | ||||||||||||
Total derivative liabilities
|
45 | 4,245 | 272 | 4,562 | ||||||||||||
Net embedded derivatives within liability host contracts (4)
|
| 11 | 2,623 | 2,634 | ||||||||||||
Long-term debt of CSEs
|
| 6,636 | 184 | 6,820 | ||||||||||||
Trading liabilities (6)
|
46 | | | 46 | ||||||||||||
Total liabilities
|
$ | 91 | $ | 10,892 | $ | 3,079 | $ | 14,062 | ||||||||
(1) | Short-term investments as presented in the tables above differ from the amounts presented in the consolidated balance sheets because certain short-term investments are not measured at estimated fair value (e.g., time deposits, etc.), and therefore are excluded from the tables presented above. |
75
(2) | Mortgage loans held-for-sale as presented in the tables above differ from the amount presented in the consolidated balance sheets as these tables only include residential mortgage loans held-for-sale measured at estimated fair value on a recurring basis. | |
(3) | Derivative liabilities are presented within other liabilities in the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation in the consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables which follow. At September 30, 2011 and December 31, 2010, certain non-derivative hedging instruments of $0 and $185 million, respectively, which are carried at amortized cost, are included with the liabilities total in Note 4 but excluded from derivative liabilities in the tables above as they are not derivative instruments. | |
(4) | Net embedded derivatives within asset host contracts are presented primarily within premiums, reinsurance and other receivables in the consolidated balance sheets. Net embedded derivatives within liability host contracts are presented primarily within policyholder account balances in the consolidated balance sheets. At September 30, 2011, fixed maturity securities and equity securities also included embedded derivatives of $3 million and ($65) million, respectively. At December 31, 2010, fixed maturity securities and equity securities included embedded derivatives of $5 million and ($62) million, respectively. | |
(5) | Separate account assets are measured at estimated fair value. 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. | |
(6) | Trading liabilities are presented within other liabilities in the consolidated balance sheets. |
76
77
78
79
80
81
82
83
84
85
86
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||
Fixed Maturity Securities: | ||||||||||||||||||||||||||||||||||||
U.S. |
State and |
Other |
||||||||||||||||||||||||||||||||||
U.S. |
Foreign |
Foreign |
Treasury |
Political |
Fixed |
|||||||||||||||||||||||||||||||
Corporate |
Corporate |
Government |
and Agency |
Subdivision |
Maturity |
|||||||||||||||||||||||||||||||
Securities | Securities | Securities | RMBS | Securities | CMBS | ABS | Securities | Securities | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2011:
|
||||||||||||||||||||||||||||||||||||
Balance, beginning of period
|
$ | 6,871 | $ | 5,844 | $ | 3,161 | $ | 434 | $ | 26 | $ | 781 | $ | 2,451 | $ | 89 | $ | 2 | ||||||||||||||||||
Total realized/unrealized gains
|
||||||||||||||||||||||||||||||||||||
(losses) included in:
|
||||||||||||||||||||||||||||||||||||
Earnings: (1),(2)
|
||||||||||||||||||||||||||||||||||||
Net investment income
|
4 | 9 | 9 | | | 5 | 8 | | | |||||||||||||||||||||||||||
Net investment gains (losses)
|
26 | 2 | (206 | ) | | | (1 | ) | (5 | ) | | | ||||||||||||||||||||||||
Net derivative gains (losses)
|
| | | | | | | | | |||||||||||||||||||||||||||
Other revenues
|
| | | | | | | | | |||||||||||||||||||||||||||
Policyholder benefits and claims
|
| | | | | | | | | |||||||||||||||||||||||||||
Other expenses
|
| | | | | | | | | |||||||||||||||||||||||||||
Other comprehensive income (loss)
|
227 | (120 | ) | 302 | 17 | 2 | (1 | ) | (58 | ) | (1 | ) | | |||||||||||||||||||||||
Purchases (3)
|
455 | 199 | 427 | 170 | | 115 | 469 | 11 | | |||||||||||||||||||||||||||
Sales (3)
|
(185 | ) | (447 | ) | (30 | ) | (10 | ) | (3 | ) | (57 | ) | (133 | ) | (1 | ) | (2 | ) | ||||||||||||||||||
Issuances (3)
|
| | | | | | | | | |||||||||||||||||||||||||||
Settlements (3)
|
| | | | | | | | | |||||||||||||||||||||||||||
Transfers into Level 3 (4)
|
| 172 | 498 | 1 | 6 | 1 | 184 | | | |||||||||||||||||||||||||||
Transfers out of Level 3 (4)
|
(27 | ) | (930 | ) | (272 | ) | | | (11 | ) | (147 | ) | (45 | ) | | |||||||||||||||||||||
Balance, end of period
|
$ | 7,371 | $ | 4,729 | $ | 3,889 | $ | 612 | $ | 31 | $ | 832 | $ | 2,769 | $ | 53 | $ | | ||||||||||||||||||
Changes in unrealized gains (losses) relating to assets and
liabilities still held at September 30, 2011 included in
earnings:
|
||||||||||||||||||||||||||||||||||||
Net investment income
|
$ | 4 | $ | 8 | $ | 9 | $ | | $ | | $ | 6 | $ | 8 | $ | | $ | | ||||||||||||||||||
Net investment gains (losses)
|
$ | (3 | ) | $ | (5 | ) | $ | (205 | ) | $ | | $ | | $ | (2 | ) | $ | (7 | ) | $ | | $ | | |||||||||||||
Net derivative gains (losses)
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||||
Other revenues
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||||
Policyholder benefits and claims
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||||
Other expenses
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | |
87
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Equity Securities: | Trading and Other Securities: | |||||||||||||||||||||||||||||||
FVO |
||||||||||||||||||||||||||||||||
Non- |
FVO |
Contractholder- |
||||||||||||||||||||||||||||||
redeemable |
Actively |
General |
directed |
Mortgage |
||||||||||||||||||||||||||||
Common |
Preferred |
Traded |
Account |
Unit-linked |
Short-term |
Loans Held- |
MSRs |
|||||||||||||||||||||||||
Stock | Stock | Securities | Securities | Investments | Investments | for-sale | (5), (6) | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2011:
|
||||||||||||||||||||||||||||||||
Balance, beginning of period
|
$ | 305 | $ | 654 | $ | 2 | $ | 54 | $ | 623 | $ | 732 | $ | 32 | $ | 964 | ||||||||||||||||
Total realized/unrealized gains
|
||||||||||||||||||||||||||||||||
(losses) included in:
|
||||||||||||||||||||||||||||||||
Earnings: (1), (2)
|
||||||||||||||||||||||||||||||||
Net investment income
|
| | | (12 | ) | (5 | ) | (1 | ) | | | |||||||||||||||||||||
Net investment gains (losses)
|
3 | 7 | | | | (1 | ) | | | |||||||||||||||||||||||
Net derivative gains (losses)
|
| | | | | | | | ||||||||||||||||||||||||
Other revenues
|
| | | | | | (1 | ) | (292 | ) | ||||||||||||||||||||||
Policyholder benefits and claims
|
| | | | | | | | ||||||||||||||||||||||||
Other expenses
|
| | | | | | | | ||||||||||||||||||||||||
Other comprehensive income (loss)
|
(25 | ) | (69 | ) | | | | (1 | ) | | | |||||||||||||||||||||
Purchases (3)
|
14 | | | | 1,026 | 266 | 2 | | ||||||||||||||||||||||||
Sales (3)
|
(14 | ) | (84 | ) | | | (297 | ) | (368 | ) | | | ||||||||||||||||||||
Issuances (3)
|
| | | | | | | 46 | ||||||||||||||||||||||||
Settlements (3)
|
| | | | | | (2 | ) | (32 | ) | ||||||||||||||||||||||
Transfers into Level 3 (4)
|
| 1 | | | | | 4 | | ||||||||||||||||||||||||
Transfers out of Level 3 (4)
|
(44 | ) | | | (15 | ) | (84 | ) | (1 | ) | (5 | ) | | |||||||||||||||||||
Balance, end of period
|
$ | 239 | $ | 509 | $ | 2 | $ | 27 | $ | 1,263 | $ | 626 | $ | 30 | $ | 686 | ||||||||||||||||
Changes in unrealized gains (losses) relating to assets and
liabilities still held at September 30, 2011 included in
earnings:
|
||||||||||||||||||||||||||||||||
Net investment income
|
$ | | $ | | $ | | $ | (11 | ) | $ | (4 | ) | $ | (1 | ) | $ | | $ | | |||||||||||||
Net investment gains (losses)
|
$ | | $ | | $ | | $ | | $ | | $ | (1 | ) | $ | | $ | | |||||||||||||||
Net derivative gains (losses)
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||
Other revenues
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | (1 | ) | $ | (280 | ) | ||||||||||||||
Policyholder benefits and claims
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||
Other expenses
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | |
88
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Net Derivatives: (7) | ||||||||||||||||||||||||||||||||
Interest |
Foreign |
Equity |
Net |
Separate |
Long-term |
|||||||||||||||||||||||||||
Rate |
Currency |
Credit |
Market |
Embedded |
Account |
Debt of |
Trading |
|||||||||||||||||||||||||
Contracts | Contracts | Contracts | Contracts | Derivatives (8) | Assets (9) | CSEs | Liabilities | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2011:
|
||||||||||||||||||||||||||||||||
Balance, beginning of period
|
$ | (67 | ) | $ | 49 | $ | 42 | $ | 55 | $ | (2,074 | ) | $ | 1,836 | $ | (134 | ) | $ | | |||||||||||||
Total realized/unrealized gains
|
||||||||||||||||||||||||||||||||
(losses) included in:
|
||||||||||||||||||||||||||||||||
Earnings: (1), (2)
|
||||||||||||||||||||||||||||||||
Net investment income
|
| | | | | | | | ||||||||||||||||||||||||
Net investment gains (losses)
|
| | | | | 3 | (1 | ) | | |||||||||||||||||||||||
Net derivative gains (losses)
|
21 | 2 | (76 | ) | 677 | (2,314 | ) | | | | ||||||||||||||||||||||
Other revenues
|
68 | | | | | | | | ||||||||||||||||||||||||
Policyholder benefits and claims
|
| | | | 115 | | | | ||||||||||||||||||||||||
Other expenses
|
| | | | | | | | ||||||||||||||||||||||||
Other comprehensive income (loss)
|
317 | | 15 | 1 | (114 | ) | | | | |||||||||||||||||||||||
Purchases (3)
|
(1 | ) | 16 | | 119 | | 187 | | | |||||||||||||||||||||||
Sales (3)
|
| | | | | (152 | ) | | | |||||||||||||||||||||||
Issuances (3)
|
| | | (4 | ) | | | | | |||||||||||||||||||||||
Settlements (3)
|
(41 | ) | | (11 | ) | 2 | (121 | ) | (1 | ) | 23 | | ||||||||||||||||||||
Transfers into Level 3 (4)
|
1 | | | | | 11 | | | ||||||||||||||||||||||||
Transfers out of Level 3 (4)
|
| | | | | (176 | ) | | | |||||||||||||||||||||||
Balance, end of period
|
$ | 298 | $ | 67 | $ | (30 | ) | $ | 850 | $ | (4,508 | ) | $ | 1,708 | $ | (112 | ) | $ | | |||||||||||||
Changes in unrealized gains (losses)
|
||||||||||||||||||||||||||||||||
relating to assets and liabilities still held
|
||||||||||||||||||||||||||||||||
at September 30, 2011 included in earnings:
|
||||||||||||||||||||||||||||||||
Net investment income
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||
Net investment gains (losses)
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | (1 | ) | $ | | |||||||||||||||
Net derivative gains (losses)
|
$ | 17 | $ | 2 | $ | (76 | ) | $ | 677 | $ | (2,319 | ) | $ | | $ | | $ | | ||||||||||||||
Other revenues
|
$ | 79 | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||
Policyholder benefits and claims
|
$ | | $ | | $ | | $ | | $ | 115 | $ | | $ | | $ | | ||||||||||||||||
Other expenses
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | |
89
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||
Fixed Maturity Securities: | ||||||||||||||||||||||||||||||||||||
U.S. |
State and |
Other |
||||||||||||||||||||||||||||||||||
U.S. |
Foreign |
Foreign |
Treasury |
Political |
Fixed |
|||||||||||||||||||||||||||||||
Corporate |
Corporate |
Government |
and Agency |
Subdivision |
Maturity |
|||||||||||||||||||||||||||||||
Securities | Securities | Securities | RMBS | Securities | CMBS | ABS | Securities | Securities | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2010:
|
||||||||||||||||||||||||||||||||||||
Balance, beginning of period
|
$ | 7,173 | $ | 4,552 | $ | 257 | $ | 1,852 | $ | 37 | $ | 270 | $ | 3,489 | $ | 101 | $ | 5 | ||||||||||||||||||
Total realized/unrealized gains (losses) included in:
|
||||||||||||||||||||||||||||||||||||
Earnings: (1), (2)
|
||||||||||||||||||||||||||||||||||||
Net investment income
|
6 | 7 | 2 | (5 | ) | | 1 | 8 | | | ||||||||||||||||||||||||||
Net investment gains (losses)
|
(20 | ) | (25 | ) | 1 | (6 | ) | | (2 | ) | (17 | ) | | | ||||||||||||||||||||||
Net derivative gains (losses)
|
| | | | | | | | | |||||||||||||||||||||||||||
Other revenues
|
| | | | | | | | | |||||||||||||||||||||||||||
Policyholder benefits and claims
|
| | | | | | | | | |||||||||||||||||||||||||||
Other expenses
|
| | | | | | | | | |||||||||||||||||||||||||||
Other comprehensive income (loss)
|
196 | 301 | 25 | 68 | 1 | 13 | 104 | (3 | ) | | ||||||||||||||||||||||||||
Purchases, sales, issuances and settlements (3)
|
67 | 132 | 6 | 379 | | (7 | ) | 160 | 9 | | ||||||||||||||||||||||||||
Transfers into Level 3 (4)
|
119 | 52 | | 161 | 21 | 9 | 5 | | | |||||||||||||||||||||||||||
Transfers out of Level 3 (4)
|
(686 | ) | (240 | ) | | (155 | ) | | (3 | ) | (101 | ) | (55 | ) | | |||||||||||||||||||||
Balance, end of period
|
$ | 6,855 | $ | 4,779 | $ | 291 | $ | 2,294 | $ | 59 | $ | 281 | $ | 3,648 | $ | 52 | $ | 5 | ||||||||||||||||||
Changes in unrealized gains (losses) relating to assets and
liabilities still held at September 30, 2010 included in
earnings:
|
||||||||||||||||||||||||||||||||||||
Net investment income
|
$ | 4 | $ | 5 | $ | 2 | $ | (5 | ) | $ | | $ | 1 | $ | 8 | $ | | $ | | |||||||||||||||||
Net investment gains (losses)
|
$ | (30 | ) | $ | (29 | ) | $ | | $ | | $ | | $ | (3 | ) | $ | (9 | ) | $ | | $ | | ||||||||||||||
Net derivative gains (losses)
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||||
Other revenues
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||||
Policyholder benefits and claims
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||||
Other expenses
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | |
90
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Equity Securities: | Trading and Other Securities: | |||||||||||||||||||||||||||||||
FVO |
||||||||||||||||||||||||||||||||
Non- |
FVO |
Contractholder- |
||||||||||||||||||||||||||||||
redeemable |
Actively |
General |
directed |
Mortgage |
||||||||||||||||||||||||||||
Common |
Preferred |
Traded |
Account |
Unit-linked |
Short-term |
Loans Held- |
MSRs |
|||||||||||||||||||||||||
Stock | Stock | Securities | Securities | Investments | Investments | for-sale | (5), (6) | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2010:
|
||||||||||||||||||||||||||||||||
Balance, beginning of period
|
$ | 161 | $ | 845 | $ | 7 | $ | 29 | $ | | $ | 52 | $ | 26 | $ | 660 | ||||||||||||||||
Total realized/unrealized gains (losses) included in:
|
||||||||||||||||||||||||||||||||
Earnings: (1), (2)
|
||||||||||||||||||||||||||||||||
Net investment income
|
| | | 9 | | 2 | | | ||||||||||||||||||||||||
Net investment gains (losses)
|
(1 | ) | 1 | | | | | | | |||||||||||||||||||||||
Net derivative gains (losses)
|
| | | | | | | | ||||||||||||||||||||||||
Other revenues
|
| | | | | | (1 | ) | (91 | ) | ||||||||||||||||||||||
Policyholder benefits and claims
|
| | | | | | | | ||||||||||||||||||||||||
Other expenses
|
| | | | | | | | ||||||||||||||||||||||||
Other comprehensive income (loss)
|
14 | 56 | | | | | | | ||||||||||||||||||||||||
Purchases, sales, issuances and settlements (3)
|
(6 | ) | 7 | 13 | | | 156 | | 138 | |||||||||||||||||||||||
Transfers into Level 3 (4)
|
2 | | | 35 | | | 4 | | ||||||||||||||||||||||||
Transfers out of Level 3 (4)
|
| | | | | | (2 | ) | | |||||||||||||||||||||||
Balance, end of period
|
$ | 170 | $ | 909 | $ | 20 | $ | 73 | $ | | $ | 210 | $ | 27 | $ | 707 | ||||||||||||||||
Changes in unrealized gains (losses) relating to assets and
liabilities still held at September 30, 2010 included in
earnings:
|
||||||||||||||||||||||||||||||||
Net investment income
|
$ | | $ | | $ | | $ | 9 | $ | | $ | 2 | $ | | $ | | ||||||||||||||||
Net investment gains (losses)
|
$ | (1 | ) | $ | | $ | | $ | | $ | | $ | | $ | | $ | | |||||||||||||||
Net derivative gains (losses)
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||
Other revenues
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | (1 | ) | $ | (74 | ) | ||||||||||||||
Policyholder benefits and claims
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||
Other expenses
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | |
91
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Net Derivatives: (7) | ||||||||||||||||||||||||||||||||
Interest |
Foreign |
Equity |
Net |
Separate |
Long-term |
|||||||||||||||||||||||||||
Rate |
Currency |
Credit |
Market |
Embedded |
Account |
Debt of |
Trading |
|||||||||||||||||||||||||
Contracts | Contracts | Contracts | Contracts | Derivatives (8) | Assets (9) | CSEs (10) | Liabilities | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2010:
|
||||||||||||||||||||||||||||||||
Balance, beginning of period
|
$ | 61 | $ | 28 | $ | 31 | $ | 633 | $ | (3,296 | ) | $ | 1,604 | $ | (221 | ) | $ | | ||||||||||||||
Total realized/unrealized gains (losses) included in:
|
||||||||||||||||||||||||||||||||
Earnings: (1), (2)
|
||||||||||||||||||||||||||||||||
Net investment income
|
| | | (2 | ) | | | | | |||||||||||||||||||||||
Net investment gains (losses)
|
| | | | | 47 | 37 | | ||||||||||||||||||||||||
Net derivative gains (losses)
|
2 | 46 | 12 | (169 | ) | 134 | | | | |||||||||||||||||||||||
Other revenues
|
14 | | | | | | | | ||||||||||||||||||||||||
Policyholder benefits and claims
|
| | | | | | | | ||||||||||||||||||||||||
Other expenses
|
| (1 | ) | | | | | | | |||||||||||||||||||||||
Other comprehensive income (loss)
|
16 | | 10 | 4 | (98 | ) | | | | |||||||||||||||||||||||
Purchases, sales, issuances and settlements (3)
|
12 | (5 | ) | (7 | ) | 8 | (74 | ) | 62 | | (2 | ) | ||||||||||||||||||||
Transfers into Level 3 (4)
|
| | | | | 9 | | | ||||||||||||||||||||||||
Transfers out of Level 3 (4)
|
| (8 | ) | | | | (75 | ) | | | ||||||||||||||||||||||
Balance, end of period
|
$ | 105 | $ | 60 | $ | 46 | $ | 474 | $ | (3,334 | ) | $ | 1,647 | $ | (184 | ) | $ | (2 | ) | |||||||||||||
Changes in unrealized gains (losses) relating to assets and
liabilities still held at September 30, 2010 included in
earnings:
|
||||||||||||||||||||||||||||||||
Net investment income
|
$ | | $ | | $ | | $ | (2 | ) | $ | | $ | | $ | | $ | | |||||||||||||||
Net investment gains (losses)
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | 37 | $ | | ||||||||||||||||
Net derivative gains (losses)
|
$ | 1 | $ | 37 | $ | 12 | $ | (169 | ) | $ | 126 | $ | | $ | | $ | | |||||||||||||||
Other revenues
|
$ | 63 | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||
Policyholder benefits and claims
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||
Other expenses
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | |
92
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||
Fixed Maturity Securities: | ||||||||||||||||||||||||||||||||||||
U.S. |
State and |
Other |
||||||||||||||||||||||||||||||||||
U.S. |
Foreign |
Foreign |
Treasury |
Political |
Fixed |
|||||||||||||||||||||||||||||||
Corporate |
Corporate |
Government |
and Agency |
Subdivision |
Maturity |
|||||||||||||||||||||||||||||||
Securities | Securities | Securities | RMBS | Securities | CMBS | ABS | Securities | Securities | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2011:
|
||||||||||||||||||||||||||||||||||||
Balance, beginning of period
|
$ | 7,149 | $ | 5,726 | $ | 3,134 | $ | 1,422 | $ | 79 | $ | 1,011 | $ | 4,145 | $ | 46 | $ | 4 | ||||||||||||||||||
Total realized/unrealized gains
|
||||||||||||||||||||||||||||||||||||
(losses) included in:
|
||||||||||||||||||||||||||||||||||||
Earnings: (1), (2)
|
||||||||||||||||||||||||||||||||||||
Net investment income
|
8 | 22 | 38 | (1 | ) | | 21 | 27 | | | ||||||||||||||||||||||||||
Net investment gains (losses)
|
14 | (20 | ) | (220 | ) | (1 | ) | | 67 | (34 | ) | | | |||||||||||||||||||||||
Net derivative gains (losses)
|
| | | | | | | | | |||||||||||||||||||||||||||
Other revenues
|
| | | | | | | | | |||||||||||||||||||||||||||
Policyholder benefits and claims
|
| | | | | | | | | |||||||||||||||||||||||||||
Other expenses
|
| | | | | | | | | |||||||||||||||||||||||||||
Other comprehensive income (loss)
|
372 | 44 | 332 | 33 | 2 | 50 | 46 | (8 | ) | | ||||||||||||||||||||||||||
Purchases (3)
|
1,016 | 1,571 | 1,164 | 206 | | 287 | 799 | 11 | | |||||||||||||||||||||||||||
Sales (3)
|
(674 | ) | (1,770 | ) | (411 | ) | (127 | ) | (1 | ) | (584 | ) | (591 | ) | (4 | ) | | |||||||||||||||||||
Issuances (3)
|
| | | | | | | | | |||||||||||||||||||||||||||
Settlements (3)
|
| | | | | | | | | |||||||||||||||||||||||||||
Transfers into Level 3 (4)
|
43 | 165 | 91 | 81 | 6 | 85 | 123 | 10 | | |||||||||||||||||||||||||||
Transfers out of Level 3 (4)
|
(557 | ) | (1,009 | ) | (239 | ) | (1,001 | ) | (55 | ) | (105 | ) | (1,746 | ) | (2 | ) | (4 | ) | ||||||||||||||||||
Balance, end of period
|
$ | 7,371 | $ | 4,729 | $ | 3,889 | $ | 612 | $ | 31 | $ | 832 | $ | 2,769 | $ | 53 | $ | | ||||||||||||||||||
Changes in unrealized gains (losses) relating to assets and
liabilities still held at September 30, 2011 included in
earnings:
|
||||||||||||||||||||||||||||||||||||
Net investment income
|
$ | 7 | $ | 22 | $ | 36 | $ | (1 | ) | $ | | $ | 19 | $ | 27 | $ | | $ | | |||||||||||||||||
Net investment gains (losses)
|
$ | (30 | ) | $ | (20 | ) | $ | (209 | ) | $ | (1 | ) | $ | | $ | (2 | ) | $ | (22 | ) | $ | | $ | | ||||||||||||
Net derivative gains (losses)
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||||
Other revenues
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||||
Policyholder benefits and claims
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||||
Other expenses
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | |
93
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Equity Securities: | Trading and Other Securities: | |||||||||||||||||||||||||||||||
FVO |
||||||||||||||||||||||||||||||||
Non- |
FVO |
Contractholder- |
||||||||||||||||||||||||||||||
redeemable |
Actively |
General |
directed |
Mortgage |
||||||||||||||||||||||||||||
Common |
Preferred |
Traded |
Account |
Unit-linked |
Short-term |
Loans Held- |
MSRs |
|||||||||||||||||||||||||
Stock | Stock | Securities | Securities | Investments | Investments | for-sale | (5), (6) | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2011:
|
||||||||||||||||||||||||||||||||
Balance, beginning of period
|
$ | 268 | $ | 905 | $ | 10 | $ | 77 | $ | 735 | $ | 858 | $ | 24 | $ | 950 | ||||||||||||||||
Total realized/unrealized gains (losses) included in:
|
||||||||||||||||||||||||||||||||
Earnings: (1), (2)
|
||||||||||||||||||||||||||||||||
Net investment income
|
| | | (3 | ) | 61 | 3 | | | |||||||||||||||||||||||
Net investment gains (losses)
|
7 | (63 | ) | | | | (2 | ) | | | ||||||||||||||||||||||
Net derivative gains (losses)
|
| | | | | | | | ||||||||||||||||||||||||
Other revenues
|
| | | | | | (2 | ) | (310 | ) | ||||||||||||||||||||||
Policyholder benefits and claims
|
| | | | | | | | ||||||||||||||||||||||||
Other expenses
|
| | | | | | | | ||||||||||||||||||||||||
Other comprehensive income (loss)
|
(12 | ) | 31 | | | | 7 | | | |||||||||||||||||||||||
Purchases (3)
|
53 | 4 | | 1 | 1,032 | 562 | 3 | | ||||||||||||||||||||||||
Sales (3)
|
(21 | ) | (379 | ) | (8 | ) | (33 | ) | (447 | ) | (798 | ) | | | ||||||||||||||||||
Issuances (3)
|
| | | | | | 1 | 138 | ||||||||||||||||||||||||
Settlements (3)
|
| | | | | | (3 | ) | (92 | ) | ||||||||||||||||||||||
Transfers into Level 3 (4)
|
1 | 11 | | | 123 | | 9 | | ||||||||||||||||||||||||
Transfers out of Level 3 (4)
|
(57 | ) | | | (15 | ) | (241 | ) | (4 | ) | (2 | ) | | |||||||||||||||||||
Balance, end of period
|
$ | 239 | $ | 509 | $ | 2 | $ | 27 | $ | 1,263 | $ | 626 | $ | 30 | $ | 686 | ||||||||||||||||
Changes in unrealized gains (losses) relating to assets and
liabilities still held at September 30, 2011 included in
earnings:
|
||||||||||||||||||||||||||||||||
Net investment income
|
$ | | $ | | $ | | $ | (5 | ) | $ | 55 | $ | (2 | ) | $ | | $ | | ||||||||||||||
Net investment gains (losses)
|
$ | (4 | ) | $ | (19 | ) | $ | | $ | | $ | | $ | (1 | ) | $ | | $ | | |||||||||||||
Net derivative gains (losses)
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||
Other revenues
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | (2 | ) | $ | (298 | ) | ||||||||||||||
Policyholder benefits and claims
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||
Other expenses
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | |
94
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Net Derivatives: (7) | ||||||||||||||||||||||||||||||||
Interest |
Foreign |
Equity |
Net |
Separate |
Long-term |
|||||||||||||||||||||||||||
Rate |
Currency |
Credit |
Market |
Embedded |
Account |
Debt of |
Trading |
|||||||||||||||||||||||||
Contracts | Contracts | Contracts | Contracts | Derivatives (8) | Assets (9) | CSEs | Liabilities | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2011:
|
||||||||||||||||||||||||||||||||
Balance, beginning of period
|
$ | (86 | ) | $ | 73 | $ | 44 | $ | 142 | $ | (2,438 | ) | $ | 1,983 | $ | (184 | ) | $ | | |||||||||||||
Total realized/unrealized gains (losses) included in:
|
||||||||||||||||||||||||||||||||
Earnings: (1), (2)
|
||||||||||||||||||||||||||||||||
Net investment income
|
| | | (3 | ) | | | | | |||||||||||||||||||||||
Net investment gains (losses)
|
| | | | | 48 | (8 | ) | | |||||||||||||||||||||||
Net derivative gains (losses)
|
25 | (1 | ) | (70 | ) | 568 | (1,722 | ) | | | | |||||||||||||||||||||
Other revenues
|
75 | | | | | | | | ||||||||||||||||||||||||
Policyholder benefits and claims
|
| | | | 107 | | | | ||||||||||||||||||||||||
Other expenses
|
| | | | | | | | ||||||||||||||||||||||||
Other comprehensive income (loss)
|
325 | | 13 | | (116 | ) | | | | |||||||||||||||||||||||
Purchases (3)
|
(1 | ) | 21 | | 225 | | 422 | | | |||||||||||||||||||||||
Sales (3)
|
| | | | | (502 | ) | | | |||||||||||||||||||||||
Issuances (3)
|
| | (3 | ) | (4 | ) | | | | | ||||||||||||||||||||||
Settlements (3)
|
(40 | ) | | (13 | ) | (3 | ) | (339 | ) | (3 | ) | 80 | | |||||||||||||||||||
Transfers into Level 3 (4)
|
| | (1 | ) | | | 18 | | | |||||||||||||||||||||||
Transfers out of Level 3 (4)
|
| (26 | ) | | (75 | ) | | (258 | ) | | | |||||||||||||||||||||
Balance, end of period
|
$ | 298 | $ | 67 | $ | (30 | ) | $ | 850 | $ | (4,508 | ) | $ | 1,708 | $ | (112 | ) | $ | | |||||||||||||
Changes in unrealized gains (losses) relating to assets and
liabilities still held at September 30, 2011 included in
earnings:
|
||||||||||||||||||||||||||||||||
Net investment income
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||
Net investment gains (losses)
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | (8 | ) | $ | | |||||||||||||||
Net derivative gains (losses)
|
$ | 14 | $ | (1 | ) | $ | (70 | ) | $ | 569 | $ | (1,738 | ) | $ | | $ | | $ | | |||||||||||||
Other revenues
|
$ | 80 | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||
Policyholder benefits and claims
|
$ | | $ | | $ | | $ | | $ | 107 | $ | | $ | | $ | | ||||||||||||||||
Other expenses
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | |
95
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||
Fixed Maturity Securities: | ||||||||||||||||||||||||||||||||||||
U.S. |
State and |
Other |
||||||||||||||||||||||||||||||||||
U.S. |
Foreign |
Foreign |
Treasury |
Political |
Fixed |
|||||||||||||||||||||||||||||||
Corporate |
Corporate |
Government |
and Agency |
Subdivision |
Maturity |
|||||||||||||||||||||||||||||||
Securities | Securities | Securities | RMBS | Securities | CMBS | ABS | Securities | Securities | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2010:
|
||||||||||||||||||||||||||||||||||||
Balance, beginning of period
|
$ | 6,694 | $ | 5,244 | $ | 378 | $ | 1,840 | $ | 37 | $ | 139 | $ | 2,703 | $ | 69 | $ | 6 | ||||||||||||||||||
Total realized/unrealized gains (losses) included in:
|
||||||||||||||||||||||||||||||||||||
Earnings: (1), (2)
|
||||||||||||||||||||||||||||||||||||
Net investment income
|
21 | 10 | 2 | 21 | | 1 | 27 | | | |||||||||||||||||||||||||||
Net investment gains (losses)
|
(15 | ) | (42 | ) | (5 | ) | (6 | ) | | (3 | ) | (67 | ) | | | |||||||||||||||||||||
Net derivative gains (losses)
|
| | | | | | | | | |||||||||||||||||||||||||||
Other revenues
|
| | | | | | | | | |||||||||||||||||||||||||||
Policyholder benefits and claims
|
| | | | | | | | | |||||||||||||||||||||||||||
Other expenses
|
| | | | | | | | | |||||||||||||||||||||||||||
Other comprehensive income (loss)
|
461 | 374 | 53 | 121 | 3 | 72 | 301 | 4 | 1 | |||||||||||||||||||||||||||
Purchases, sales, issuances and settlements (3)
|
(648 | ) | (619 | ) | 19 | 195 | (3 | ) | (24 | ) | 831 | 9 | (2 | ) | ||||||||||||||||||||||
Transfers into Level 3 (4)
|
616 | 363 | | 253 | 22 | 128 | 93 | | | |||||||||||||||||||||||||||
Transfers out of Level 3 (4)
|
(274 | ) | (551 | ) | (156 | ) | (130 | ) | | (32 | ) | (240 | ) | (30 | ) | | ||||||||||||||||||||
Balance, end of period
|
$ | 6,855 | $ | 4,779 | $ | 291 | $ | 2,294 | $ | 59 | $ | 281 | $ | 3,648 | $ | 52 | $ | 5 | ||||||||||||||||||
Changes in unrealized gains (losses) relating to assets and
liabilities still held at September 30, 2010 included in
earnings:
|
||||||||||||||||||||||||||||||||||||
Net investment income
|
$ | 11 | $ | 9 | $ | 6 | $ | 21 | $ | | $ | 1 | $ | 26 | $ | | $ | | ||||||||||||||||||
Net investment gains (losses)
|
$ | (44 | ) | $ | (45 | ) | $ | | $ | | $ | | $ | (3 | ) | $ | (54 | ) | $ | | $ | | ||||||||||||||
Net derivative gains (losses)
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||||
Other revenues
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||||
Policyholder benefits and claims
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||||
Other expenses
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | |
96
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Equity Securities: | Trading and Other Securities: | |||||||||||||||||||||||||||||||
FVO |
||||||||||||||||||||||||||||||||
Non- |
FVO |
Contractholder- |
||||||||||||||||||||||||||||||
redeemable |
Actively |
General |
directed |
Mortgage |
||||||||||||||||||||||||||||
Common |
Preferred |
Traded |
Account |
Unit-linked |
Short-term |
Loans Held- |
MSRs |
|||||||||||||||||||||||||
Stock | Stock | Securities | Securities | Investments | Investments | for-sale | (5), (6) | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2010:
|
||||||||||||||||||||||||||||||||
Balance, beginning of period
|
$ | 136 | $ | 1,102 | $ | 32 | $ | 51 | $ | | $ | 18 | $ | 25 | $ | 878 | ||||||||||||||||
Total realized/unrealized gains
|
||||||||||||||||||||||||||||||||
(losses) included in:
|
||||||||||||||||||||||||||||||||
Earnings: (1), (2)
|
||||||||||||||||||||||||||||||||
Net investment income
|
| | | 3 | | 2 | | | ||||||||||||||||||||||||
Net investment gains (losses)
|
1 | 48 | | | | | | | ||||||||||||||||||||||||
Net derivative gains (losses)
|
| | | | | | | | ||||||||||||||||||||||||
Other revenues
|
| | | | | | (1 | ) | (329 | ) | ||||||||||||||||||||||
Policyholder benefits and claims
|
| | | | | | | | ||||||||||||||||||||||||
Other expenses
|
| | | | | | | | ||||||||||||||||||||||||
Other comprehensive income (loss)
|
4 | 24 | | | | | | | ||||||||||||||||||||||||
Purchases, sales, issuances and settlements (3)
|
35 | (259 | ) | (12 | ) | | | 190 | | 158 | ||||||||||||||||||||||
Transfers into Level 3 (4)
|
2 | | | 37 | | | 10 | | ||||||||||||||||||||||||
Transfers out of Level 3 (4)
|
(8 | ) | (6 | ) | | (18 | ) | | | (7 | ) | | ||||||||||||||||||||
Balance, end of period
|
$ | 170 | $ | 909 | $ | 20 | $ | 73 | $ | | $ | 210 | $ | 27 | $ | 707 | ||||||||||||||||
Changes in unrealized gains (losses) relating to assets and
liabilities still held at September 30, 2010 included in
earnings:
|
||||||||||||||||||||||||||||||||
Net investment income
|
$ | | $ | | $ | | $ | 3 | $ | | $ | 2 | $ | | $ | | ||||||||||||||||
Net investment gains (losses)
|
$ | (2 | ) | $ | | $ | | $ | | $ | | $ | | $ | | $ | | |||||||||||||||
Net derivative gains (losses)
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||
Other revenues
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | (1 | ) | $ | (294 | ) | ||||||||||||||
Policyholder benefits and claims
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||
Other expenses
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | |
97
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||
Net Derivatives: (7) | ||||||||||||||||||||||||||||||||
Interest |
Foreign |
Equity |
Net |
Separate |
Long-term |
|||||||||||||||||||||||||||
Rate |
Currency |
Credit |
Market |
Embedded |
Account |
Debt of |
Trading |
|||||||||||||||||||||||||
Contracts | Contracts | Contracts | Contracts | Derivatives (8) | Assets (9) | CSEs (10) | Liabilities | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2010:
|
||||||||||||||||||||||||||||||||
Balance, beginning of period
|
$ | 7 | $ | 108 | $ | 42 | $ | 199 | $ | (1,455 | ) | $ | 1,797 | $ | | $ | | |||||||||||||||
Total realized/unrealized gains (losses) included in:
|
||||||||||||||||||||||||||||||||
Earnings: (1), (2)
|
||||||||||||||||||||||||||||||||
Net investment income
|
| | | 6 | | | | | ||||||||||||||||||||||||
Net investment gains (losses)
|
| | | | | 91 | 48 | | ||||||||||||||||||||||||
Net derivative gains (losses)
|
36 | 32 | (10 | ) | 243 | (1,542 | ) | | | | ||||||||||||||||||||||
Other revenues
|
61 | | | | | | | | ||||||||||||||||||||||||
Policyholder benefits and claims
|
| | | | 46 | | | | ||||||||||||||||||||||||
Other expenses
|
| (4 | ) | | | | | | | |||||||||||||||||||||||
Other comprehensive income (loss)
|
13 | | 27 | 9 | (163 | ) | | | | |||||||||||||||||||||||
Purchases, sales, issuances and
|
||||||||||||||||||||||||||||||||
settlements (3)
|
(12 | ) | (54 | ) | (13 | ) | 17 | (220 | ) | (48 | ) | (232 | ) | (2 | ) | |||||||||||||||||
Transfers into Level 3 (4)
|
| | | | | 31 | | | ||||||||||||||||||||||||
Transfers out of Level 3 (4)
|
| (22 | ) | | | | (224 | ) | | | ||||||||||||||||||||||
Balance, end of period
|
$ | 105 | $ | 60 | $ | 46 | $ | 474 | $ | (3,334 | ) | $ | 1,647 | $ | (184 | ) | $ | (2 | ) | |||||||||||||
Changes in unrealized gains (losses) relating to assets and
liabilities still held at September 30, 2010 included in
earnings:
|
||||||||||||||||||||||||||||||||
Net investment income
|
$ | | $ | | $ | | $ | 5 | $ | | $ | | $ | | $ | | ||||||||||||||||
Net investment gains (losses)
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | 48 | $ | | ||||||||||||||||
Net derivative gains (losses)
|
$ | 36 | $ | 31 | $ | (9 | ) | $ | 250 | $ | (1,556 | ) | $ | | $ | | $ | | ||||||||||||||
Other revenues
|
$ | 66 | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||
Policyholder benefits and claims
|
$ | | $ | | $ | | $ | | $ | 46 | $ | | $ | | $ | | ||||||||||||||||
Other expenses
|
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | |
(1) | Amortization of premium/discount is included within net investment income. Impairments charged to earnings on securities and certain mortgage loans are included within net investment gains (losses) while changes in estimated fair value of certain mortgage loans and MSRs are recorded in other revenues. Lapses associated with embedded derivatives are included within net derivative gains (losses). | |
(2) | Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. | |
(3) | The amount reported within purchases, sales, issuances and settlements is the purchase or issuance price and the sales or settlement proceeds based upon the actual date purchased or issued and sold or settled, respectively. Items purchased/issued and sold/settled in the same period are excluded from the rollforward. For the three months and nine months ended September 30, 2011, fees attributed to net embedded derivatives are included within settlements. For the three months and nine months ended September 30, 2010, fees attributed to net embedded derivatives are included within purchases, sales, issuances and settlements. | |
(4) | Total gains and losses (in earnings and other comprehensive income (loss)) are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and/or out of Level 3 in the same period are excluded from the rollforward. | |
(5) | The additions for purchases, originations and issuances and the reductions for loan payments, sales and settlements, affecting MSRs were $46 million and ($32) million, respectively, for the three months ended September 30, 2011 and $138 million and ($92) million, respectively, for the nine months ended |
98
September 30, 2011. The additions for purchases, originations and issuances and the reductions for loan payments, sales and settlements, affecting MSRs were $169 million and ($31) million, respectively, for the three months ended September 30, 2010 and $275 million and ($117) million, respectively, for the nine months ended September 30, 2010. | ||
(6) | The changes in estimated fair value due to changes in valuation model inputs or assumptions were ($292) million and ($310) million for the three months and nine months ended September 30, 2011, respectively. The changes in estimated fair value due to changes in valuation model inputs or assumptions were ($91) million and ($329) million for the three months and nine months ended September 30, 2010, respectively. For all periods, there was no other change in estimated fair value affecting MSRs. | |
(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. For the purpose of this disclosure, these changes are presented within net investment gains (losses). | |
(10) | The long-term debt of the CSEs at January 1, 2010 is reported within the purchases, sales, issuances and settlements caption of the rollforward. |
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Unpaid principal balance
|
$ | 2,469 | $ | 2,473 | ||||
Excess of estimated fair value over unpaid principal balance
|
121 | 37 | ||||||
Carrying value at estimated fair value
|
$ | 2,590 | $ | 2,510 | ||||
Loans in non-accrual status
|
$ | 3 | $ | 2 | ||||
Loans more than 90 days past due
|
$ | 3 | $ | 3 | ||||
Loans in non-accrual status or more than 90 days past due,
or both difference between aggregate estimated fair
value and unpaid principal balance
|
$ | (1 | ) | $ | (1 | ) |
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Instrument-specific credit risk based on changes in credit
spreads for non-agency loans and adjustments in individual loan
quality
|
$ | | $ | (1 | ) | $ | (3 | ) | $ | (1 | ) | |||||
Other changes in estimated fair value
|
174 | 139 | 353 | 400 | ||||||||||||
Total gains (losses) recognized in other revenues
|
$ | 174 | $ | 138 | $ | 350 | $ | 399 | ||||||||
99
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Unpaid principal balance
|
$ | 3,063 | $ | 6,636 | ||||
Excess of estimated fair value over unpaid principal balance
|
164 | 204 | ||||||
Carrying value at estimated fair value
|
$ | 3,227 | $ | 6,840 | ||||
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Contractual principal balance
|
$ | 2,993 | $ | 6,619 | ||||
Excess of estimated fair value over contractual principal balance
|
164 | 201 | ||||||
Carrying value at estimated fair value
|
$ | 3,157 | $ | 6,820 | ||||
Three Months Ended September 30, | ||||||||||||||||||||||||
2011 | 2010 | |||||||||||||||||||||||
Estimated |
Net |
Estimated |
Net |
|||||||||||||||||||||
Carrying |
Fair |
Investment |
Carrying |
Fair |
Investment |
|||||||||||||||||||
Value Prior to |
Value After |
Gains |
Value Prior to |
Value After |
Gains |
|||||||||||||||||||
Measurement | Measurement | (Losses) | Measurement | Measurement | (Losses) | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Mortgage loans: (1)
|
||||||||||||||||||||||||
Held-for-investment
|
$ | 289 | $ | 245 | $ | (44 | ) | $ | 93 | $ | 93 | $ | | |||||||||||
Held-for-sale
|
71 | 68 | (3 | ) | 27 | 28 | 1 | |||||||||||||||||
Mortgage loans, net
|
$ | 360 | $ | 313 | $ | (47 | ) | $ | 120 | $ | 121 | $ | 1 | |||||||||||
Other limited partnership interests (2)
|
$ | 5 | $ | 3 | $ | (2 | ) | $ | 3 | $ | 1 | $ | (2 | ) | ||||||||||
Real estate joint ventures (3)
|
$ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||
Goodwill (4)
|
$ | 65 | $ | | $ | (65 | ) | $ | | $ | | $ | |
100
Nine Months Ended September 30, | ||||||||||||||||||||||||
2011 | 2010 | |||||||||||||||||||||||
Estimated |
Net |
Estimated |
Net |
|||||||||||||||||||||
Carrying |
Fair |
Investment |
Carrying |
Fair |
Investment |
|||||||||||||||||||
Value Prior to |
Value After |
Gains |
Value Prior to |
Value After |
Gains |
|||||||||||||||||||
Measurement | Measurement | (Losses) | Measurement | Measurement | (Losses) | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Mortgage loans: (1)
|
||||||||||||||||||||||||
Held-for-investment
|
$ | 273 | $ | 245 | $ | (28 | ) | $ | 90 | $ | 93 | $ | 3 | |||||||||||
Held-for-sale
|
72 | 68 | (4 | ) | 28 | 28 | | |||||||||||||||||
Mortgage loans, net
|
$ | 345 | $ | 313 | $ | (32 | ) | $ | 118 | $ | 121 | $ | 3 | |||||||||||
Other limited partnership interests (2)
|
$ | 18 | $ | 13 | $ | (5 | ) | $ | 28 | $ | 18 | $ | (10 | ) | ||||||||||
Real estate joint ventures (3)
|
$ | | $ | | $ | | $ | 33 | $ | 8 | $ | (25 | ) | |||||||||||
Goodwill (4)
|
$ | 65 | $ | | $ | (65 | ) | $ | | $ | | $ | |
(1) | Mortgage loans The impaired mortgage loans presented above were written down to their estimated fair values at the date the impairments were recognized and are reported as losses above. Subsequent improvements in estimated fair value on previously impaired loans recorded through a reduction in the previously established valuation allowance are reported as gains above. Estimated fair values for impaired mortgage loans are based on observable market prices or, if the loans are in foreclosure or are otherwise determined to be collateral dependent, on the estimated fair value of the underlying collateral, or the present value of the expected future cash flows. Impairments to estimated fair value and decreases in previous impairments from subsequent improvements in estimated fair value represent non-recurring fair value measurements that have been categorized as Level 3 due to the lack of price transparency inherent in the limited markets for such mortgage loans. | |
(2) | Other limited partnership interests The impaired investments presented above were accounted for using the cost method. Impairments on these cost method investments were recognized at estimated fair value determined from information provided in the financial statements of the underlying entities in the period in which the impairment was incurred. These impairments to estimated fair value represent non-recurring fair value measurements that have been classified as Level 3 due to the limited activity and price transparency inherent in the market for such investments. This category includes several private equity and debt funds that typically invest primarily in a diversified pool of investments using certain investment strategies including domestic and international leveraged buyout funds; power, energy, timber and infrastructure development funds; venture capital funds; and below investment grade debt and mezzanine debt funds. The estimated fair values of these investments have been determined using the NAV of the Companys ownership interest in the partners capital. Distributions from these investments will be generated from investment gains, from operating income from the underlying investments of the funds and from liquidation of the underlying assets of the funds. It is estimated that the underlying assets of the funds will be liquidated over the next 2 to 10 years. Unfunded commitments for these investments were $1 million and $25 million at September 30, 2011 and 2010, respectively. | |
(3) | Real estate joint ventures The impaired investments presented above were accounted for using the cost method. Impairments on these cost method investments were recognized at estimated fair value determined from information provided in the financial statements of the underlying entities in the period in which the impairment was incurred. These impairments to estimated fair value represent non-recurring fair value measurements that have been classified as Level 3 due to the limited activity and price transparency inherent in the market for such investments. This category includes several real estate funds that typically invest primarily in commercial real estate. The estimated fair values of these investments have been determined using the NAV of the Companys ownership interest in the partners capital. Distributions from these investments will be generated from investment gains, from operating income from the underlying |
101
investments of the funds and from liquidation of the underlying assets of the funds. It is estimated that the underlying assets of the funds will be liquidated over the next 2 to 10 years. There were no unfunded commitments for these investments at September 30, 2011. Unfunded commitments for these investments were $7 million at September 30, 2010. | ||
(4) | Goodwill As discussed in Note 6, the Company recorded an impairment of goodwill associated with MetLife Bank, National Association (MetLife Bank). This impairment has been categorized as Level 3 due to the significant unobservable inputs used in the determination of the estimated fair value. |
September 30, 2011 | December 31, 2010 | |||||||||||||||||||||||
Estimated |
Estimated |
|||||||||||||||||||||||
Notional |
Carrying |
Fair |
Notional |
Carrying |
Fair |
|||||||||||||||||||
Amount | Value | Value | Amount | Value | Value | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Mortgage loans: (1)
|
||||||||||||||||||||||||
Held-for-investment
|
$ | 55,982 | $ | 58,397 | $ | 52,136 | $ | 53,927 | ||||||||||||||||
Held-for-sale
|
1,150 | 1,150 | 811 | 811 | ||||||||||||||||||||
Mortgage loans, net
|
$ | 57,132 | $ | 59,547 | $ | 52,947 | $ | 54,738 | ||||||||||||||||
Policy loans
|
$ | 11,932 | $ | 13,889 | $ | 11,761 | $ | 13,253 | ||||||||||||||||
Real estate joint ventures (2)
|
$ | 532 | $ | 603 | $ | 451 | $ | 482 | ||||||||||||||||
Other limited partnership interests (2)
|
$ | 1,340 | $ | 1,658 | $ | 1,539 | $ | 1,619 | ||||||||||||||||
Short-term investments (3)
|
$ | 621 | $ | 621 | $ | 819 | $ | 819 | ||||||||||||||||
Other invested assets (2)
|
$ | 1,453 | $ | 1,453 | $ | 1,490 | $ | 1,490 | ||||||||||||||||
Cash and cash equivalents
|
$ | 10,001 | $ | 10,001 | $ | 12,957 | $ | 12,957 | ||||||||||||||||
Accrued investment income
|
$ | 4,793 | $ | 4,793 | $ | 4,328 | $ | 4,328 | ||||||||||||||||
Premiums, reinsurance and other receivables (2)
|
$ | 4,849 | $ | 5,376 | $ | 3,752 | $ | 4,048 | ||||||||||||||||
Other assets (2)
|
$ | 433 | $ | 482 | $ | 466 | $ | 453 | ||||||||||||||||
Assets of subsidiaries
held-for-sale
(2)
|
$ | 3,291 | $ | 3,291 | $ | 3,068 | $ | 3,068 | ||||||||||||||||
Liabilities:
|
||||||||||||||||||||||||
Policyholder account balances (2)
|
$ | 146,652 | $ | 153,778 | $ | 146,822 | $ | 152,745 | ||||||||||||||||
Payables for collateral under securities loaned and other
transactions
|
$ | 34,933 | $ | 34,933 | $ | 27,272 | $ | 27,272 | ||||||||||||||||
Bank deposits
|
$ | 10,685 | $ | 10,754 | $ | 10,316 | $ | 10,371 | ||||||||||||||||
Short-term debt
|
$ | 451 | $ | 451 | $ | 306 | $ | 306 | ||||||||||||||||
Long-term debt (2),(4)
|
$ | 21,560 | $ | 22,991 | $ | 20,734 | $ | 21,892 | ||||||||||||||||
Collateral financing arrangements
|
$ | 5,297 | $ | 4,647 | $ | 5,297 | $ | 4,757 | ||||||||||||||||
Junior subordinated debt securities
|
$ | 3,192 | $ | 3,219 | $ | 3,191 | $ | 3,461 | ||||||||||||||||
Other liabilities (2)
|
$ | 4,790 | $ | 4,793 | $ | 2,777 | $ | 2,777 | ||||||||||||||||
Separate account liabilities (2)
|
$ | 48,650 | $ | 48,650 | $ | 42,160 | $ | 42,160 | ||||||||||||||||
Liabilities of subsidiaries
held-for-sale
(2)
|
$ | 130 | $ | 130 | $ | 105 | $ | 105 | ||||||||||||||||
Commitments: (5)
|
||||||||||||||||||||||||
Mortgage loan commitments
|
$ | 3,743 | $ | | $ | 4 | $ | 3,754 | $ | | $ | (17 | ) | |||||||||||
Commitments to fund bank credit facilities, bridge loans and
private corporate bond investments
|
$ | 1,855 | $ | | $ | 33 | $ | 2,437 | $ | | $ | |
102
(1) | Mortgage loans held-for-investment as presented in the table above differ from the amounts presented in the consolidated balance sheets because this table does not include commercial mortgage loans held by CSEs, which are accounted for under the FVO. | |
Mortgage loans held-for-sale as presented in the table above differ from the amounts presented in the consolidated balance sheets because this table does not include residential mortgage loans held-for-sale that are accounted for under the FVO. | ||
(2) | Carrying values presented herein differ from those presented in the consolidated balance sheets because certain items within the respective financial statement caption are not considered financial instruments. Financial statement captions excluded from the table above are not considered financial instruments. | |
(3) | Short-term investments as presented in the table above differ from the amounts presented in the consolidated balance sheets because this table does not include short-term investments that meet the definition of a security, which are measured at estimated fair value on a recurring basis. | |
(4) | Long-term debt as presented in the table above does not include long-term debt of CSEs, which is accounted for under the FVO. | |
(5) | Commitments are off-balance sheet obligations. Negative estimated fair values represent off-balance sheet liabilities. |
103
104
105
106
6. | Goodwill |
107
7. | Closed Block |
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Closed Block Liabilities
|
||||||||
Future policy benefits
|
$ | 43,184 | $ | 43,456 | ||||
Other policy-related balances
|
336 | 316 | ||||||
Policyholder dividends payable
|
618 | 579 | ||||||
Policyholder dividend obligation
|
2,782 | 876 | ||||||
Current income tax payable
|
| 178 | ||||||
Other liabilities
|
692 | 627 | ||||||
Total closed block liabilities
|
47,612 | 46,032 | ||||||
Assets Designated to the Closed Block
|
||||||||
Investments:
|
||||||||
Fixed maturity securities
available-for-sale,
at estimated fair value (amortized cost: $26,966 and $27,067,
respectively)
|
30,540 | 28,768 | ||||||
Equity securities
available-for-sale,
at estimated fair value (cost: $42 and $110, respectively)
|
34 | 102 | ||||||
Mortgage loans
|
6,165 | 6,253 | ||||||
Policy loans
|
4,645 | 4,629 | ||||||
Real estate and real estate joint ventures
held-for-investment
|
335 | 328 | ||||||
Short-term investments
|
| 1 | ||||||
Other invested assets
|
744 | 729 | ||||||
Total investments
|
42,463 | 40,810 | ||||||
Cash and cash equivalents
|
297 | 236 | ||||||
Accrued investment income
|
534 | 518 | ||||||
Premiums, reinsurance and other receivables
|
89 | 95 | ||||||
Current income tax recoverable
|
36 | | ||||||
Deferred income tax assets
|
396 | 474 | ||||||
Total assets designated to the closed block
|
43,815 | 42,133 | ||||||
Excess of closed block liabilities over assets designated to the
closed block
|
3,797 | 3,899 | ||||||
Amounts included in accumulated other comprehensive income
(loss):
|
||||||||
Unrealized investment gains (losses), net of income tax of
$1,249 and $594, respectively
|
2,321 | 1,101 | ||||||
Unrealized gains (losses) on derivative instruments, net of
income tax of $7 and $5, respectively
|
13 | 10 | ||||||
Allocated to policyholder dividend obligation, net of income tax
of ($974) and ($307), respectively
|
(1,808 | ) | (569 | ) | ||||
Total amounts included in accumulated other comprehensive income
(loss)
|
526 | 542 | ||||||
Maximum future earnings to be recognized from closed block
assets and liabilities
|
$ | 4,323 | $ | 4,441 | ||||
108
Nine Months |
Year |
|||||||
Ended |
Ended |
|||||||
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Balance, beginning of period
|
$ | 876 | $ | | ||||
Change in unrealized investment and derivative gains (losses)
|
1,906 | 876 | ||||||
Balance, end of period
|
$ | 2,782 | $ | 876 | ||||
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Revenues
|
||||||||||||||||
Premiums
|
$ | 554 | $ | 593 | $ | 1,657 | $ | 1,776 | ||||||||
Net investment income
|
553 | 571 | 1,698 | 1,714 | ||||||||||||
Net investment gains (losses):
|
||||||||||||||||
Other-than-temporary
impairments on fixed maturity securities
|
(1 | ) | (5 | ) | (8 | ) | (23 | ) | ||||||||
Other-than-temporary
impairments on fixed maturity securities transferred to other
comprehensive income (loss)
|
| | | | ||||||||||||
Other net investment gains (losses)
|
23 | 3 | 40 | 42 | ||||||||||||
Total net investment gains (losses)
|
22 | (2 | ) | 32 | 19 | |||||||||||
Net derivative gains (losses)
|
17 | (36 | ) | 3 | (22 | ) | ||||||||||
Total revenues
|
1,146 | 1,126 | 3,390 | 3,487 | ||||||||||||
Expenses
|
||||||||||||||||
Policyholder benefits and claims
|
731 | 758 | 2,166 | 2,262 | ||||||||||||
Policyholder dividends
|
304 | 329 | 897 | 974 | ||||||||||||
Other expenses
|
48 | 50 | 146 | 151 | ||||||||||||
Total expenses
|
1,083 | 1,137 | 3,209 | 3,387 | ||||||||||||
Revenues, net of expenses before provision for income tax
expense (benefit)
|
63 | (11 | ) | 181 | 100 | |||||||||||
Provision for income tax expense (benefit)
|
25 | (5 | ) | 63 | 32 | |||||||||||
Revenues, net of expenses and provision for income tax expense
(benefit)
|
$ | 38 | $ | (6 | ) | $ | 118 | $ | 68 | |||||||
109
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Balance, end of period
|
$ | 4,323 | $ | 4,519 | $ | 4,323 | $ | 4,519 | ||||||||
Balance, beginning of period
|
4,361 | 4,513 | 4,441 | 4,587 | ||||||||||||
Change during period
|
$ | (38 | ) | $ | 6 | $ | (118 | ) | $ | (68 | ) | |||||
8. | Long-term and Short-term Debt |
110
9. | Contingencies, Commitments and Guarantees |
111
112
113
114
115
116
117
10. | Employee Benefit Plans |
118
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||
Three Months |
Nine Months |
Three Months |
Nine Months |
|||||||||||||||||||||||||||||
Ended |
Ended |
Ended |
Ended |
|||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Service costs
|
$ | 64 | $ | 45 | $ | 190 | $ | 133 | $ | 4 | $ | 4 | $ | 13 | $ | 13 | ||||||||||||||||
Interest costs
|
104 | 99 | 314 | 298 | 27 | 28 | 81 | 84 | ||||||||||||||||||||||||
Expected return on plan assets
|
(112 | ) | (113 | ) | (339 | ) | (337 | ) | (19 | ) | (19 | ) | (58 | ) | (59 | ) | ||||||||||||||||
Settlement and curtailment costs
|
| 1 | | 8 | | | | | ||||||||||||||||||||||||
Amortization of net actuarial (gains) losses
|
49 | 49 | 146 | 147 | 11 | 9 | 32 | 28 | ||||||||||||||||||||||||
Amortization of prior service costs (credit)
|
1 | 2 | 3 | 5 | (27 | ) | (21 | ) | (81 | ) | (62 | ) | ||||||||||||||||||||
Net periodic benefit costs
|
$ | 106 | $ | 83 | $ | 314 | $ | 254 | $ | (4 | ) | $ | 1 | $ | (13 | ) | $ | 4 | ||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||
Three Months |
Nine Months |
Three Months |
Nine Months |
|||||||||||||||||||||||||||||
Ended |
Ended |
Ended |
Ended |
|||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Amortization of net actuarial (gains) losses
|
$ | 49 | $ | 49 | $ | 146 | $ | 147 | $ | 11 | $ | 9 | $ | 32 | $ | 28 | ||||||||||||||||
Amortization of prior service costs (credit)
|
1 | 2 | 3 | 5 | (27 | ) | (21 | ) | (81 | ) | (62 | ) | ||||||||||||||||||||
Subtotal
|
50 | 51 | 149 | 152 | (16 | ) | (12 | ) | (49 | ) | (34 | ) | ||||||||||||||||||||
Deferred income tax expense (benefit)
|
(18 | ) | (17 | ) | (52 | ) | (53 | ) | 6 | 3 | 17 | 29 | ||||||||||||||||||||
Components of net periodic benefit costs amortized from
accumulated other comprehensive income (loss), net of income tax
|
$ | 32 | $ | 34 | $ | 97 | $ | 99 | $ | (10 | ) | $ | (9 | ) | $ | (32 | ) | $ | (5 | ) | ||||||||||||
119
11. | Equity |
120
12. | Other Expenses |
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Compensation
|
$ | 1,326 | $ | 831 | $ | 3,982 | $ | 2,553 | ||||||||
Pension, postretirement & postemployment benefit costs
|
99 | 98 | 289 | 285 | ||||||||||||
Commissions
|
1,771 | 870 | 4,774 | 2,509 | ||||||||||||
Volume-related costs
|
109 | 93 | 283 | 286 | ||||||||||||
Interest credited to bank deposits
|
26 | 33 | 72 | 108 | ||||||||||||
Capitalization of DAC
|
(1,852 | ) | (766 | ) | (5,119 | ) | (2,255 | ) | ||||||||
Amortization of DAC and VOBA
|
1,858 | 573 | 4,295 | 2,184 | ||||||||||||
Amortization of negative VOBA
|
(170 | ) | | (536 | ) | | ||||||||||
Interest expense on debt and debt issue costs
|
425 | 397 | 1,260 | 1,136 | ||||||||||||
Premium taxes, licenses & fees
|
206 | 132 | 483 | 382 | ||||||||||||
Professional services
|
336 | 255 | 1,019 | 684 | ||||||||||||
Rent, net of sublease income
|
99 | 75 | 319 | 221 | ||||||||||||
Other
|
780 | 398 | 2,289 | 1,237 | ||||||||||||
Total other expenses
|
$ | 5,013 | $ | 2,989 | $ | 13,410 | $ | 9,330 | ||||||||
121
13. | Earnings Per Common Share |
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions, except share and per share data) | ||||||||||||||||
Weighted Average Shares:
|
||||||||||||||||
Weighted average common stock outstanding for basic earnings
|
||||||||||||||||
per common share
|
1,060,199,513 | 875,782,191 | 1,059,253,798 | 840,375,518 | ||||||||||||
Incremental common shares from assumed:
|
||||||||||||||||
Stock purchase contracts underlying common equity units (1)
|
| | 2,188,593 | | ||||||||||||
Exercise or issuance of stock-based awards
|
6,001,186 | 7,317,973 | 7,221,794 | 6,950,540 | ||||||||||||
Weighted average common stock outstanding for diluted
|
||||||||||||||||
earnings per common share
|
1,066,200,699 | 883,100,164 | 1,068,664,185 | 847,326,058 | ||||||||||||
Income (Loss) from Continuing Operations:
|
||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
$ | 3,572 | $ | 317 | $ | 5,825 | $ | 2,681 | ||||||||
Less: Income (loss) from continuing operations, net of income
tax, attributable to noncontrolling interests
|
(6 | ) | 4 | (6 | ) | (7 | ) | |||||||||
Less: Preferred stock dividends
|
30 | 30 | 91 | 91 | ||||||||||||
Preferred stock redemption premium
|
| | 146 | | ||||||||||||
Income (loss) from continuing operations, net of income tax,
|
||||||||||||||||
available to MetLife, Inc.s common shareholders
|
$ | 3,548 | $ | 283 | $ | 5,594 | $ | 2,597 | ||||||||
Basic
|
$ | 3.35 | $ | 0.33 | $ | 5.29 | $ | 3.09 | ||||||||
Diluted
|
$ | 3.33 | $ | 0.32 | $ | 5.24 | $ | 3.07 | ||||||||
Income (Loss) from Discontinued Operations:
|
||||||||||||||||
Income (loss) from discontinued operations, net of income tax
|
$ | 4 | $ | 3 | $ | (6 | ) | $ | 20 | |||||||
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
|
$ | 4 | $ | 3 | $ | (6 | ) | $ | 20 | |||||||
Basic
|
$ | | $ | | $ | (0.01 | ) | $ | 0.02 | |||||||
Diluted
|
$ | | $ | | $ | (0.01 | ) | $ | 0.02 | |||||||
Net Income (Loss):
|
||||||||||||||||
Net income (loss)
|
$ | 3,576 | $ | 320 | $ | 5,819 | $ | 2,701 | ||||||||
Less: Net income (loss) attributable to noncontrolling interests
|
(6 | ) | 4 | (6 | ) | (7 | ) | |||||||||
Less: Preferred stock dividends
|
30 | 30 | 91 | 91 | ||||||||||||
Preferred stock redemption premium
|
| | 146 | | ||||||||||||
Net income (loss) available to MetLife, Inc.s common
|
||||||||||||||||
shareholders
|
$ | 3,552 | $ | 286 | $ | 5,588 | $ | 2,617 | ||||||||
Basic
|
$ | 3.35 | $ | 0.33 | $ | 5.28 | $ | 3.11 | ||||||||
Diluted
|
$ | 3.33 | $ | 0.32 | $ | 5.23 | $ | 3.09 | ||||||||
(1) | See Note 14 of the Notes to the Consolidated Financial Statements included in the 2010 Annual Report for a description of the Companys common equity units. |
122
14. | Business Segment Information |
123
| Universal life and investment-type product policy fees exclude the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity GMIB fees (GMIB Fees); | |
| Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments but do not qualify for hedge accounting treatment, (ii) includes income from discontinued real estate operations, (iii) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iv) excludes certain amounts related to contractholder-directed unit- linked investments, and (v) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and | |
| Other revenues are adjusted for settlements of foreign currency earnings hedges. |
| Policyholder benefits and claims and policyholder dividends exclude: (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, (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 scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment and excludes amounts related to net investment income earned on contractholder-directed unit-linked investments; | |
| Amortization of DAC and value of business acquired (VOBA) excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB Fees and GMIB Costs, and (iii) Market Value Adjustments; | |
| 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 exclude costs related to: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements, and (iii) business combinations. |
124
125
Operating Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Business | International | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate |
Auto |
Other |
Banking, |
|||||||||||||||||||||||||||||||||||||||||||||
Insurance |
Retirement |
Benefit |
& |
International |
Corporate |
Total |
||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2011 | Products | Products | Funding | Home | Total | Japan | Regions | Total | & Other | Total | Adjustments | Consolidated | ||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues
|
||||||||||||||||||||||||||||||||||||||||||||||||
Premiums
|
$ | 4,159 | $ | 393 | $ | 724 | $ | 760 | $ | 6,036 | $ | 1,601 | $ | 1,702 | $ | 3,303 | $ | 3 | $ | 9,342 | $ | | $ | 9,342 | ||||||||||||||||||||||||
Universal life and investment-type product policy fees
|
566 | 620 | 69 | | 1,255 | 220 | 433 | 653 | | 1,908 | 90 | 1,998 | ||||||||||||||||||||||||||||||||||||
Net investment income
|
1,526 | 800 | 1,289 | 50 | 3,665 | 540 | 550 | 1,090 | 297 | 5,052 | (795 | ) | 4,257 | |||||||||||||||||||||||||||||||||||
Other revenues
|
216 | 77 | 61 | 8 | 362 | 5 | 40 | 45 | 308 | 715 | 5 | 720 | ||||||||||||||||||||||||||||||||||||
Net investment gains (losses)
|
| | | | | | | | | | (55 | ) | (55 | ) | ||||||||||||||||||||||||||||||||||
Net derivative gains (losses)
|
| | | | | | | | | | 4,196 | 4,196 | ||||||||||||||||||||||||||||||||||||
Total revenues
|
6,467 | 1,890 | 2,143 | 818 | 11,318 | 2,366 | 2,725 | 5,091 | 608 | 17,017 | 3,441 | 20,458 | ||||||||||||||||||||||||||||||||||||
Expenses
|
||||||||||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
4,816 | 585 | 1,287 | 613 | 7,301 | 999 | 1,315 | 2,314 | 4 | 9,619 | (218 | ) | 9,401 | |||||||||||||||||||||||||||||||||||
Interest credited to policyholder account balances
|
255 | 408 | 327 | | 990 | 401 | 146 | 547 | | 1,537 | (799 | ) | 738 | |||||||||||||||||||||||||||||||||||
Interest credited to bank deposits
|
| | | | | | | | 26 | 26 | | 26 | ||||||||||||||||||||||||||||||||||||
Capitalization of DAC
|
(213 | ) | (478 | ) | (6 | ) | (121 | ) | (818 | ) | (619 | ) | (415 | ) | (1,034 | ) | | (1,852 | ) | | (1,852 | ) | ||||||||||||||||||||||||||
Amortization of DAC and VOBA
|
186 | 347 | 4 | 114 | 651 | 318 | 268 | 586 | | 1,237 | 621 | 1,858 | ||||||||||||||||||||||||||||||||||||
Amortization of negative VOBA
|
| | | | | (135 | ) | (16 | ) | (151 | ) | | (151 | ) | (19 | ) | (170 | ) | ||||||||||||||||||||||||||||||
Interest expense on debt
|
| | 2 | | 2 | | | | 326 | 328 | 97 | 425 | ||||||||||||||||||||||||||||||||||||
Other expenses
|
1,016 | 867 | 126 | 200 | 2,209 | 909 | 1,074 | 1,983 | 438 | 4,630 | 96 | 4,726 | ||||||||||||||||||||||||||||||||||||
Total expenses
|
6,060 | 1,729 | 1,740 | 806 | 10,335 | 1,873 | 2,372 | 4,245 | 794 | 15,374 | (222 | ) | 15,152 | |||||||||||||||||||||||||||||||||||
Provision for income tax expense (benefit)
|
142 | 57 | 139 | (10 | ) | 328 | 178 | 90 | 268 | (162 | ) | 434 | 1,300 | 1,734 | ||||||||||||||||||||||||||||||||||
Operating earnings
|
$ | 265 | $ | 104 | $ | 264 | $ | 22 | $ | 655 | $ | 315 | $ | 263 | $ | 578 | $ | (24 | ) | 1,209 | ||||||||||||||||||||||||||||
Adjustments to:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues
|
3,441 | |||||||||||||||||||||||||||||||||||||||||||||||
Total expenses
|
222 | |||||||||||||||||||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit
|
(1,300 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income
tax
|
$ | 3,572 | $ | 3,572 | ||||||||||||||||||||||||||||||||||||||||||||
126
Operating Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Business | International | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate |
Auto |
Other |
Banking, |
|||||||||||||||||||||||||||||||||||||||||||||
Insurance |
Retirement |
Benefit |
& |
International |
Corporate |
Total |
||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2010 | Products | Products | Funding | Home | Total | Japan | Regions | Total | & Other | Total | Adjustments | Consolidated | ||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues
|
||||||||||||||||||||||||||||||||||||||||||||||||
Premiums
|
$ | 4,234 | $ | 227 | $ | 402 | $ | 740 | $ | 5,603 | $ | | $ | 878 | $ | 878 | $ | 3 | $ | 6,484 | $ | | $ | 6,484 | ||||||||||||||||||||||||
Universal life and investment-type product policy fees
|
539 | 500 | 58 | | 1,097 | | 301 | 301 | | 1,398 | 54 | 1,452 | ||||||||||||||||||||||||||||||||||||
Net investment income
|
1,515 | 856 | 1,216 | 51 | 3,638 | | 451 | 451 | 225 | 4,314 | 50 | 4,364 | ||||||||||||||||||||||||||||||||||||
Other revenues
|
185 | 56 | 59 | 8 | 308 | | 7 | 7 | 309 | 624 | | 624 | ||||||||||||||||||||||||||||||||||||
Net investment gains (losses)
|
| | | | | | | | | | (342 | ) | (342 | ) | ||||||||||||||||||||||||||||||||||
Net derivative gains (losses)
|
| | | | | | | | | | (244 | ) | (244 | ) | ||||||||||||||||||||||||||||||||||
Total revenues
|
6,473 | 1,639 | 1,735 | 799 | 10,646 | | 1,637 | 1,637 | 537 | 12,820 | (482 | ) | 12,338 | |||||||||||||||||||||||||||||||||||
Expenses
|
||||||||||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
4,685 | 378 | 963 | 506 | 6,532 | | 763 | 763 | (4 | ) | 7,291 | 409 | 7,700 | |||||||||||||||||||||||||||||||||||
Interest credited to policyholder account balances
|
243 | 394 | 380 | | 1,017 | | 242 | 242 | | 1,259 | 5 | 1,264 | ||||||||||||||||||||||||||||||||||||
Interest credited to bank deposits
|
| | | | | | | | 33 | 33 | | 33 | ||||||||||||||||||||||||||||||||||||
Capitalization of DAC
|
(204 | ) | (270 | ) | (6 | ) | (118 | ) | (598 | ) | | (168 | ) | (168 | ) | | (766 | ) | | (766 | ) | |||||||||||||||||||||||||||
Amortization of DAC and VOBA
|
221 | 153 | 4 | 110 | 488 | | 104 | 104 | (1 | ) | 591 | (18 | ) | 573 | ||||||||||||||||||||||||||||||||||
Amortization of negative VOBA
|
| | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||
Interest expense on debt
|
| 2 | 1 | | 3 | | (1 | ) | (1 | ) | 292 | 294 | 103 | 397 | ||||||||||||||||||||||||||||||||||
Other expenses
|
998 | 615 | 113 | 200 | 1,926 | | 506 | 506 | 278 | 2,710 | 42 | 2,752 | ||||||||||||||||||||||||||||||||||||
Total expenses
|
5,943 | 1,272 | 1,455 | 698 | 9,368 | | 1,446 | 1,446 | 598 | 11,412 | 541 | 11,953 | ||||||||||||||||||||||||||||||||||||
Provision for income tax expense (benefit)
|
185 | 129 | 98 | 20 | 432 | | 2 | 2 | (14 | ) | 420 | (352 | ) | 68 | ||||||||||||||||||||||||||||||||||
Operating earnings
|
$ | 345 | $ | 238 | $ | 182 | $ | 81 | $ | 846 | $ | | $ | 189 | $ | 189 | $ | (47 | ) | 988 | ||||||||||||||||||||||||||||
Adjustments to:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues
|
(482 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Total expenses
|
(541 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit
|
352 | |||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income
tax
|
$ | 317 | $ | 317 | ||||||||||||||||||||||||||||||||||||||||||||
127
Operating Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Business | International | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate |
Auto |
Other |
Banking, |
|||||||||||||||||||||||||||||||||||||||||||||
Insurance |
Retirement |
Benefit |
& |
International |
Corporate |
Total |
||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2011 | Products | Products | Funding | Home | Total | Japan | Regions | Total | & Other | Total | Adjustments | Consolidated | ||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues
|
||||||||||||||||||||||||||||||||||||||||||||||||
Premiums
|
$ | 12,619 | $ | 839 | $ | 1,796 | $ | 2,243 | $ | 17,497 | $ | 4,720 | $ | 4,966 | $ | 9,686 | $ | 7 | $ | 27,190 | $ | | $ | 27,190 | ||||||||||||||||||||||||
Universal life and investment-type product policy fees
|
1,695 | 1,828 | 181 | | 3,704 | 609 | 1,339 | 1,948 | | 5,652 | 204 | 5,856 | ||||||||||||||||||||||||||||||||||||
Net investment income
|
4,627 | 2,378 | 3,925 | 154 | 11,084 | 1,496 | 1,510 | 3,006 | 924 | 15,014 | (345 | ) | 14,669 | |||||||||||||||||||||||||||||||||||
Other revenues
|
620 | 227 | 182 | 23 | 1,052 | 18 | 108 | 126 | 692 | 1,870 | 8 | 1,878 | ||||||||||||||||||||||||||||||||||||
Net investment gains (losses)
|
| | | | | | | | | | (309 | ) | (309 | ) | ||||||||||||||||||||||||||||||||||
Net derivative gains (losses)
|
| | | | | | | | | | 4,233 | 4,233 | ||||||||||||||||||||||||||||||||||||
Total revenues
|
19,561 | 5,272 | 6,084 | 2,420 | 33,337 | 6,843 | 7,923 | 14,766 | 1,623 | 49,726 | 3,791 | 53,517 | ||||||||||||||||||||||||||||||||||||
Expenses
|
||||||||||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
14,115 | 1,362 | 3,400 | 1,864 | 20,741 | 2,967 | 3,635 | 6,602 | 7 | 27,350 | 147 | 27,497 | ||||||||||||||||||||||||||||||||||||
Interest credited to policyholder account balances
|
742 | 1,196 | 992 | | 2,930 | 1,158 | 441 | 1,599 | | 4,529 | (425 | ) | 4,104 | |||||||||||||||||||||||||||||||||||
Interest credited to bank deposits
|
| | | | | | | | 72 | 72 | | 72 | ||||||||||||||||||||||||||||||||||||
Capitalization of DAC
|
(643 | ) | (1,195 | ) | (24 | ) | (343 | ) | (2,205 | ) | (1,660 | ) | (1,254 | ) | (2,914 | ) | | (5,119 | ) | | (5,119 | ) | ||||||||||||||||||||||||||
Amortization of DAC and VOBA
|
631 | 783 | 14 | 336 | 1,764 | 981 | 868 | 1,849 | | 3,613 | 682 | 4,295 | ||||||||||||||||||||||||||||||||||||
Amortization of negative VOBA
|
| | | | | (422 | ) | (57 | ) | (479 | ) | | (479 | ) | (57 | ) | (536 | ) | ||||||||||||||||||||||||||||||
Interest expense on debt
|
| 1 | 6 | | 7 | | 2 | 2 | 970 | 979 | 281 | 1,260 | ||||||||||||||||||||||||||||||||||||
Other expenses
|
3,079 | 2,329 | 363 | 591 | 6,362 | 2,502 | 3,185 | 5,687 | 1,086 | 13,135 | 303 | 13,438 | ||||||||||||||||||||||||||||||||||||
Total expenses
|
17,924 | 4,476 | 4,751 | 2,448 | 29,599 | 5,526 | 6,820 | 12,346 | 2,135 | 44,080 | 931 | 45,011 | ||||||||||||||||||||||||||||||||||||
Provision for income tax expense (benefit)
|
573 | 279 | 466 | (51 | ) | 1,267 | 467 | 301 | 768 | (406 | ) | 1,629 | 1,052 | 2,681 | ||||||||||||||||||||||||||||||||||
Operating earnings
|
$ | 1,064 | $ | 517 | $ | 867 | $ | 23 | $ | 2,471 | $ | 850 | $ | 802 | $ | 1,652 | $ | (106 | ) | 4,017 | ||||||||||||||||||||||||||||
Adjustments to:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues
|
3,791 | |||||||||||||||||||||||||||||||||||||||||||||||
Total expenses
|
(931 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit
|
(1,052 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income
tax
|
$ | 5,825 | $ | 5,825 | ||||||||||||||||||||||||||||||||||||||||||||
128
Operating Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Business | International | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate |
Auto |
Other |
Banking, |
|||||||||||||||||||||||||||||||||||||||||||||
Insurance |
Retirement |
Benefit |
& |
International |
Corporate |
Total |
||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2010 | Products | Products | Funding | Home | Total | Japan | Regions | Total | & Other | Total | Adjustments | Consolidated | ||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues
|
||||||||||||||||||||||||||||||||||||||||||||||||
Premiums
|
$ | 12,874 | $ | 730 | $ | 1,547 | $ | 2,177 | $ | 17,328 | $ | | $ | 2,522 | $ | 2,522 | $ | 6 | $ | 19,856 | $ | | $ | 19,856 | ||||||||||||||||||||||||
Universal life and investment-type product policy fees
|
1,634 | 1,474 | 169 | | 3,277 | | 902 | 902 | | 4,179 | 160 | 4,339 | ||||||||||||||||||||||||||||||||||||
Net investment income
|
4,514 | 2,550 | 3,641 | 156 | 10,861 | | 1,153 | 1,153 | 691 | 12,705 | 40 | 12,745 | ||||||||||||||||||||||||||||||||||||
Other revenues
|
562 | 159 | 181 | 14 | 916 | | 12 | 12 | 753 | 1,681 | | 1,681 | ||||||||||||||||||||||||||||||||||||
Net investment gains (losses)
|
| | | | | | | | | | (324 | ) | (324 | ) | ||||||||||||||||||||||||||||||||||
Net derivative gains (losses)
|
| | | | | | | | | | 1,278 | 1,278 | ||||||||||||||||||||||||||||||||||||
Total revenues
|
19,584 | 4,913 | 5,538 | 2,347 | 32,382 | | 4,589 | 4,589 | 1,450 | 38,421 | 1,154 | 39,575 | ||||||||||||||||||||||||||||||||||||
Expenses
|
||||||||||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
14,253 | 1,207 | 3,115 | 1,506 | 20,081 | | 2,279 | 2,279 | (11 | ) | 22,349 | 510 | 22,859 | |||||||||||||||||||||||||||||||||||
Interest credited to policyholder account balances
|
714 | 1,205 | 1,099 | | 3,018 | | 433 | 433 | | 3,451 | 3 | 3,454 | ||||||||||||||||||||||||||||||||||||
Interest credited to bank deposits
|
| | | | | | | | 108 | 108 | | 108 | ||||||||||||||||||||||||||||||||||||
Capitalization of DAC
|
(627 | ) | (766 | ) | (17 | ) | (339 | ) | (1,749 | ) | | (506 | ) | (506 | ) | | (2,255 | ) | | (2,255 | ) | |||||||||||||||||||||||||||
Amortization of DAC and VOBA
|
666 | 594 | 12 | 328 | 1,600 | | 313 | 313 | (1 | ) | 1,912 | 272 | 2,184 | |||||||||||||||||||||||||||||||||||
Amortization of negative VOBA
|
| | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||
Interest expense on debt
|
| 4 | 3 | | 7 | | 2 | 2 | 815 | 824 | 312 | 1,136 | ||||||||||||||||||||||||||||||||||||
Other expenses
|
3,021 | 1,784 | 346 | 572 | 5,723 | | 1,489 | 1,489 | 825 | 8,037 | 120 | 8,157 | ||||||||||||||||||||||||||||||||||||
Total expenses
|
18,027 | 4,028 | 4,558 | 2,067 | 28,680 | | 4,010 | 4,010 | 1,736 | 34,426 | 1,217 | 35,643 | ||||||||||||||||||||||||||||||||||||
Provision for income tax expense (benefit)
|
545 | 310 | 343 | 54 | 1,252 | | 101 | 101 | (185 | ) | 1,168 | 83 | 1,251 | |||||||||||||||||||||||||||||||||||
Operating earnings
|
$ | 1,012 | $ | 575 | $ | 637 | $ | 226 | $ | 2,450 | $ | | $ | 478 | $ | 478 | $ | (101 | ) | 2,827 | ||||||||||||||||||||||||||||
Adjustments to:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues
|
1,154 | |||||||||||||||||||||||||||||||||||||||||||||||
Total expenses
|
(1,217 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit
|
(83 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income
tax
|
$ | 2,681 | $ | 2,681 | ||||||||||||||||||||||||||||||||||||||||||||
129
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
U.S. Business:
|
||||||||
Insurance Products
|
$ | 148,629 | $ | 141,366 | ||||
Retirement Products
|
185,010 | 177,045 | ||||||
Corporate Benefit Funding
|
186,741 | 172,929 | ||||||
Auto & Home
|
5,965 | 5,541 | ||||||
Total
|
526,345 | 496,881 | ||||||
International:
|
||||||||
Japan
|
104,493 | 87,416 | ||||||
Other International Regions
|
68,351 | 77,579 | ||||||
Total
|
172,844 | 164,995 | ||||||
Banking, Corporate & Other
|
86,041 | 69,030 | ||||||
Total
|
$ | 785,230 | $ | 730,906 | ||||
15. | Discontinued Operations |
130
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Total revenues
|
$ | 101 | $ | 102 | $ | 337 | $ | 296 | ||||||||
Total expenses
|
115 | 98 | 329 | 282 | ||||||||||||
Income (loss) before provision for income tax
|
(14 | ) | 4 | 8 | 14 | |||||||||||
Provision for income tax expense (benefit)
|
(3 | ) | 2 | 5 | 5 | |||||||||||
Income (loss) from operations of discontinued operations, net of
income tax
|
(11 | ) | 2 | 3 | 9 | |||||||||||
Net investment gain (loss), net of income tax
|
| | (74 | ) | | |||||||||||
Income (loss) from discontinued operations, net of income tax
|
$ | (11 | ) | $ | 2 | $ | (71 | ) | $ | 9 | ||||||
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Total assets
held-for-sale
|
$ | 3,421 | $ | 3,331 | ||||
Total liabilities
held-for-sale
|
$ | 3,221 | $ | 3,043 | ||||
Major classes of assets and liabilities included above:
|
||||||||
Total investments
|
$ | 3,089 | $ | 2,726 | ||||
Total future policy benefits
|
$ | 2,661 | $ | 2,461 |
16. | Subsequent Event |
131
Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations |
| Universal life and investment-type product policy fees exclude the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity guaranteed minimum income benefits (GMIB) fees (GMIB Fees); | |
| Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments but do not qualify for hedge accounting treatment, (ii) includes income from discontinued real estate operations, (iii) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iv) excludes certain amounts related to contractholder-directed unit-linked investments, and (v) excludes certain amounts related to securitization entities that are variable interest entities (VIEs) consolidated under GAAP; and | |
| Other revenues are adjusted for settlements of foreign currency earnings hedges. |
| Policyholder benefits and claims and policyholder dividends exclude: (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 |
132
pool of assets, (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 scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment and excludes amounts related to net investment income earned on contractholder-directed unit-linked investments; | |
| Amortization of deferred policy acquisition costs (DAC) and value of business acquired (VOBA) excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB Fees and GMIB Costs, and (iii) Market Value Adjustments; | |
| 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 exclude costs related to: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements, and (iii) business combinations. |
133
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
$ | 3,572 | $ | 317 | $ | 5,825 | $ | 2,681 | ||||||||
Less: Net investment gains (losses)
|
(55 | ) | (342 | ) | (309 | ) | (324 | ) | ||||||||
Less: Net derivative gains (losses)
|
4,196 | (244 | ) | 4,233 | 1,278 | |||||||||||
Less: Other adjustments to continuing operations (1)
|
(478 | ) | (437 | ) | (1,064 | ) | (1,017 | ) | ||||||||
Less: Provision for income tax (expense) benefit
|
(1,300 | ) | 352 | (1,052 | ) | (83 | ) | |||||||||
Operating earnings
|
1,209 | 988 | 4,017 | 2,827 | ||||||||||||
Less: Preferred stock dividends
|
30 | 30 | 91 | 91 | ||||||||||||
Operating earnings available to common shareholders
|
$ | 1,179 | $ | 958 | $ | 3,926 | $ | 2,736 | ||||||||
(1) | See definitions of operating revenues and operating expenses for the components of such adjustments. |
134
| Premiums, fees and other revenues growth in 2011 of 33%, which is mainly attributable to the Acquisition. The remaining increase is expected to be driven by: |
| Increases in our International businesses from continuing organic growth throughout our various geographic regions; | |
| Higher fees earned on separate accounts primarily due to favorable net flows of variable annuities, which are expected to remain strong in the remainder of 2011, thereby increasing the value of those separate accounts; and | |
| Growth within our pension closeouts business. |
| Focus on disciplined underwriting. We see no significant changes to the underlying trends that drive underwriting results and continue to anticipate solid results in 2011. |
135
| Focus on expense management. We continue to focus on expense control throughout the Company, specifically managing the costs associated with the integration of ALICO. | |
| Performance of the investment portfolio. Although the market environment remains challenging, we expect the performance on our investment portfolio in 2011 with respect to both income and realized gains and losses will generally be higher than the results achieved in 2010. |
136
137
138
(i) | the estimated fair value of investments in the absence of quoted market values; | |
(ii) | investment impairments; | |
(iii) | the recognition of income on certain investment entities and the application of the consolidation rules to certain investments; | |
(iv) | the estimated fair value of and accounting for freestanding derivatives and the existence and estimated fair value of embedded derivatives requiring bifurcation; | |
(v) | the capitalization and amortization of DAC and the establishment and amortization of VOBA; | |
(vi) | the measurement of goodwill and related impairment, if any; | |
(vii) | the liability for future policyholder benefits and the accounting for reinsurance contracts; | |
(viii) | accounting for income taxes and the valuation of deferred tax assets; | |
(ix) | accounting for employee benefit plans; and | |
(x) | the liability for litigation and regulatory matters. |
139
140
Three Months |
||||||||||||||||
Ended |
||||||||||||||||
September 30, | ||||||||||||||||
2011 | 2010 | Change | % Change | |||||||||||||
(In millions) | ||||||||||||||||
Revenues
|
||||||||||||||||
Premiums
|
$ | 9,342 | $ | 6,484 | $ | 2,858 | 44.1 | % | ||||||||
Universal life and investment-type product policy fees
|
1,998 | 1,452 | 546 | 37.6 | % | |||||||||||
Net investment income
|
4,257 | 4,364 | (107 | ) | (2.5 | )% | ||||||||||
Other revenues
|
720 | 624 | 96 | 15.4 | % | |||||||||||
Net investment gains (losses)
|
(55 | ) | (342 | ) | 287 | 83.9 | % | |||||||||
Net derivative gains (losses)
|
4,196 | (244 | ) | 4,440 | 1,819.7 | % | ||||||||||
Total revenues
|
20,458 | 12,338 | 8,120 | 65.8 | % | |||||||||||
Expenses
|
||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
9,401 | 7,700 | 1,701 | 22.1 | % | |||||||||||
Interest credited to policyholder account balances
|
738 | 1,264 | (526 | ) | (41.6 | )% | ||||||||||
Interest credited to bank deposits
|
26 | 33 | (7 | ) | (21.2 | )% | ||||||||||
Capitalization of DAC
|
(1,852 | ) | (766 | ) | (1,086 | ) | (141.8 | )% | ||||||||
Amortization of DAC and VOBA
|
1,858 | 573 | 1,285 | 224.3 | % | |||||||||||
Amortization of negative VOBA
|
(170 | ) | | (170 | ) | |||||||||||
Interest expense on debt
|
425 | 397 | 28 | 7.1 | % | |||||||||||
Other expenses
|
4,726 | 2,752 | 1,974 | 71.7 | % | |||||||||||
Total expenses
|
15,152 | 11,953 | 3,199 | 26.8 | % | |||||||||||
Income (loss) from continuing operations before provision for
income tax
|
5,306 | 385 | 4,921 | 1,278.2 | % | |||||||||||
Provision for income tax expense (benefit)
|
1,734 | 68 | 1,666 | 2,450.0 | % | |||||||||||
Income (loss) from continuing operations, net of income tax
|
3,572 | 317 | 3,255 | 1,026.8 | % | |||||||||||
Income (loss) from discontinued operations, net of income tax
|
4 | 3 | 1 | 33.3 | % | |||||||||||
Net income (loss)
|
3,576 | 320 | 3,256 | 1,017.5 | % | |||||||||||
Less: Net income (loss) attributable to noncontrolling interests
|
(6 | ) | 4 | (10 | ) | (250.0 | )% | |||||||||
Net income (loss) attributable to MetLife, Inc.
|
3,582 | 316 | 3,266 | 1,033.5 | % | |||||||||||
Less: Preferred stock dividends
|
30 | 30 | | | % | |||||||||||
Preferred stock redemption premium
|
| | | |||||||||||||
Net income (loss) available to MetLife, Inc.s common
shareholders
|
$ | 3,552 | $ | 286 | $ | 3,266 | 1,142.0 | % | ||||||||
141
142
143
Corporate |
Other |
Banking, |
||||||||||||||||||||||||||||||
Insurance |
Retirement |
Benefit |
Auto & |
International |
Corporate |
|||||||||||||||||||||||||||
Products | Products | Funding | Home | Japan | Regions | & Other | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
$ | 1,250 | $ | 668 | $ | 584 | $ | 15 | $ | 341 | $ | 730 | $ | (16 | ) | $ | 3,572 | |||||||||||||||
Less: Net investment gains (losses)
|
15 | 21 | 86 | (4 | ) | (21 | ) | (240 | ) | 88 | (55 | ) | ||||||||||||||||||||
Less: Net derivative gains (losses)
|
1,597 | 956 | 407 | (7 | ) | 101 | 1,172 | (30 | ) | 4,196 | ||||||||||||||||||||||
Less: Other adjustments to continuing operations (1)
|
(97 | ) | (110 | ) | | | (42 | ) | (157 | ) | (72 | ) | (478 | ) | ||||||||||||||||||
Less: Provision for income tax (expense) benefit
|
(530 | ) | (303 | ) | (173 | ) | 4 | (12 | ) | (308 | ) | 22 | (1,300 | ) | ||||||||||||||||||
Operating earnings
|
$ | 265 | $ | 104 | $ | 264 | $ | 22 | $ | 315 | $ | 263 | (24 | ) | 1,209 | |||||||||||||||||
Less: Preferred stock dividends
|
30 | 30 | ||||||||||||||||||||||||||||||
Operating earnings available to common shareholders
|
$ | (54 | ) | $ | 1,179 | |||||||||||||||||||||||||||
Corporate |
Other |
Banking, |
||||||||||||||||||||||||||||||
Insurance |
Retirement |
Benefit |
Auto & |
International |
Corporate |
|||||||||||||||||||||||||||
Products | Products | Funding | Home | Japan | Regions | & Other | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
$ | 401 | $ | 184 | $ | 99 | $ | 76 | $ | | $ | (135 | ) | $ | (308 | ) | $ | 317 | ||||||||||||||
Less: Net investment gains (losses)
|
69 | 5 | 54 | (3 | ) | | (239 | ) | (228 | ) | (342 | ) | ||||||||||||||||||||
Less: Net derivative gains (losses)
|
86 | 116 | (193 | ) | (4 | ) | | (109 | ) | (140 | ) | (244 | ) | |||||||||||||||||||
Less: Other adjustments to continuing operations (1)
|
(70 | ) | (203 | ) | 10 | | | (145 | ) | (29 | ) | (437 | ) | |||||||||||||||||||
Less: Provision for income tax (expense) benefit
|
(29 | ) | 28 | 46 | 2 | | 169 | 136 | 352 | |||||||||||||||||||||||
Operating earnings
|
$ | 345 | $ | 238 | $ | 182 | $ | 81 | $ | | $ | 189 | (47 | ) | 988 | |||||||||||||||||
Less: Preferred stock dividends
|
30 | 30 | ||||||||||||||||||||||||||||||
Operating earnings available to common shareholders
|
$ | (77 | ) | $ | 958 | |||||||||||||||||||||||||||
(1) | See definitions of operating revenues and operating expenses for the components of such adjustments. |
144
Corporate |
Other |
Banking, |
||||||||||||||||||||||||||||||
Insurance |
Retirement |
Benefit |
Auto & |
International |
Corporate |
|||||||||||||||||||||||||||
Products | Products | Funding | Home | Japan | Regions | & Other | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Total revenues
|
$ | 8,036 | $ | 2,894 | $ | 2,674 | $ | 807 | $ | 2,097 | $ | 3,180 | $ | 770 | $ | 20,458 | ||||||||||||||||
Less: Net investment gains (losses)
|
15 | 21 | 86 | (4 | ) | (21 | ) | (240 | ) | 88 | (55 | ) | ||||||||||||||||||||
Less: Net derivative gains (losses)
|
1,597 | 956 | 407 | (7 | ) | 101 | 1,172 | (30 | ) | 4,196 | ||||||||||||||||||||||
Less: Adjustments related to net investment gains (losses) and
net derivative gains (losses)
|
16 | | | | | | | 16 | ||||||||||||||||||||||||
Less: Other adjustments to revenues (1)
|
(59 | ) | 27 | 38 | | (349 | ) | (477 | ) | 104 | (716 | ) | ||||||||||||||||||||
Total operating revenues
|
$ | 6,467 | $ | 1,890 | $ | 2,143 | $ | 818 | $ | 2,366 | $ | 2,725 | $ | 608 | $ | 17,017 | ||||||||||||||||
Total expenses
|
$ | 6,114 | $ | 1,866 | $ | 1,778 | $ | 806 | $ | 1,566 | $ | 2,052 | $ | 970 | $ | 15,152 | ||||||||||||||||
Less: Adjustments related to net investment gains (losses) and
net derivative gains (losses)
|
56 | 395 | | | 20 | | | 471 | ||||||||||||||||||||||||
Less: Other adjustments to expenses (1)
|
(2 | ) | (258 | ) | 38 | | (327 | ) | (320 | ) | 176 | (693 | ) | |||||||||||||||||||
Total operating expenses
|
$ | 6,060 | $ | 1,729 | $ | 1,740 | $ | 806 | $ | 1,873 | $ | 2,372 | $ | 794 | $ | 15,374 | ||||||||||||||||
Corporate |
Other |
Banking, |
||||||||||||||||||||||||||||||
Insurance |
Retirement |
Benefit |
Auto & |
International |
Corporate |
|||||||||||||||||||||||||||
Products | Products | Funding | Home | Japan | Regions | & Other | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Total revenues
|
$ | 6,591 | $ | 1,746 | $ | 1,642 | $ | 792 | $ | | $ | 1,278 | $ | 289 | $ | 12,338 | ||||||||||||||||
Less: Net investment gains (losses)
|
69 | 5 | 54 | (3 | ) | | (239 | ) | (228 | ) | (342 | ) | ||||||||||||||||||||
Less: Net derivative gains (losses)
|
86 | 116 | (193 | ) | (4 | ) | | (109 | ) | (140 | ) | (244 | ) | |||||||||||||||||||
Less: Adjustments related to net investment gains (losses) and
net derivative gains (losses)
|
| | | | | | | | ||||||||||||||||||||||||
Less: Other adjustments to revenues (1)
|
(37 | ) | (14 | ) | 46 | | | (11 | ) | 120 | 104 | |||||||||||||||||||||
Total operating revenues
|
$ | 6,473 | $ | 1,639 | $ | 1,735 | $ | 799 | $ | | $ | 1,637 | $ | 537 | $ | 12,820 | ||||||||||||||||
Total expenses
|
$ | 5,976 | $ | 1,461 | $ | 1,491 | $ | 698 | $ | | $ | 1,580 | $ | 747 | $ | 11,953 | ||||||||||||||||
Less: Adjustments related to net investment gains (losses) and
net derivative gains (losses)
|
28 | 9 | | | | | | 37 | ||||||||||||||||||||||||
Less: Other adjustments to expenses (1)
|
5 | 180 | 36 | | | 134 | 149 | 504 | ||||||||||||||||||||||||
Total operating expenses
|
$ | 5,943 | $ | 1,272 | $ | 1,455 | $ | 698 | $ | | $ | 1,446 | $ | 598 | $ | 11,412 | ||||||||||||||||
(1) | See definitions of operating revenues and operating expenses for the components of such adjustments. |
145
146
Three Months |
||||||||||||||||
Ended |
||||||||||||||||
September 30, | ||||||||||||||||
2011 | 2010 | Change | % Change | |||||||||||||
(In millions) | ||||||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Premiums
|
$ | 4,159 | $ | 4,234 | $ | (75 | ) | (1.8 | )% | |||||||
Universal life and investment-type product policy fees
|
566 | 539 | 27 | 5.0 | % | |||||||||||
Net investment income
|
1,526 | 1,515 | 11 | 0.7 | % | |||||||||||
Other revenues
|
216 | 185 | 31 | 16.8 | % | |||||||||||
Total operating revenues
|
6,467 | 6,473 | (6 | ) | (0.1 | )% | ||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
4,816 | 4,685 | 131 | 2.8 | % | |||||||||||
Interest credited to policyholder account balances
|
255 | 243 | 12 | 4.9 | % | |||||||||||
Capitalization of DAC
|
(213 | ) | (204 | ) | (9 | ) | (4.4 | )% | ||||||||
Amortization of DAC and VOBA
|
186 | 221 | (35 | ) | (15.8 | )% | ||||||||||
Other expenses
|
1,016 | 998 | 18 | 1.8 | % | |||||||||||
Total operating expenses
|
6,060 | 5,943 | 117 | 2.0 | % | |||||||||||
Provision for income tax expense (benefit)
|
142 | 185 | (43 | ) | (23.2 | )% | ||||||||||
Operating earnings
|
$ | 265 | $ | 345 | $ | (80 | ) | (23.2 | )% | |||||||
147
Three Months |
||||||||||||||||
Ended |
||||||||||||||||
September 30, | ||||||||||||||||
2011 | 2010 | Change | % Change | |||||||||||||
(In millions) | ||||||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Premiums
|
$ | 393 | $ | 227 | $ | 166 | 73.1 | % | ||||||||
Universal life and investment-type product policy fees
|
620 | 500 | 120 | 24.0 | % | |||||||||||
Net investment income
|
800 | 856 | (56 | ) | (6.5 | )% | ||||||||||
Other revenues
|
77 | 56 | 21 | 37.5 | % | |||||||||||
Total operating revenues
|
1,890 | 1,639 | 251 | 15.3 | % | |||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
585 | 378 | 207 | 54.8 | % | |||||||||||
Interest credited to policyholder account balances
|
408 | 394 | 14 | 3.6 | % | |||||||||||
Capitalization of DAC
|
(478 | ) | (270 | ) | (208 | ) | (77.0 | )% | ||||||||
Amortization of DAC and VOBA
|
347 | 153 | 194 | 126.8 | % | |||||||||||
Interest expense on debt
|
| 2 | (2 | ) | (100.0 | )% | ||||||||||
Other expenses
|
867 | 615 | 252 | 41.0 | % | |||||||||||
Total operating expenses
|
1,729 | 1,272 | 457 | 35.9 | % | |||||||||||
Provision for income tax expense (benefit)
|
57 | 129 | (72 | ) | (55.8 | )% | ||||||||||
Operating earnings
|
$ | 104 | $ | 238 | $ | (134 | ) | (56.3 | )% | |||||||
148
149
Three Months |
||||||||||||||||
Ended |
||||||||||||||||
September 30, | ||||||||||||||||
2011 | 2010 | Change | % Change | |||||||||||||
(In millions) | ||||||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Premiums
|
$ | 724 | $ | 402 | $ | 322 | 80.1 | % | ||||||||
Universal life and investment-type product policy fees
|
69 | 58 | 11 | 19.0 | % | |||||||||||
Net investment income
|
1,289 | 1,216 | 73 | 6.0 | % | |||||||||||
Other revenues
|
61 | 59 | 2 | 3.4 | % | |||||||||||
Total operating revenues
|
2,143 | 1,735 | 408 | 23.5 | % | |||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
1,287 | 963 | 324 | 33.6 | % | |||||||||||
Interest credited to policyholder account balances
|
327 | 380 | (53 | ) | (13.9 | )% | ||||||||||
Capitalization of DAC
|
(6 | ) | (6 | ) | | | % | |||||||||
Amortization of DAC and VOBA
|
4 | 4 | | | % | |||||||||||
Interest expense on debt
|
2 | 1 | 1 | 100.0 | % | |||||||||||
Other expenses
|
126 | 113 | 13 | 11.5 | % | |||||||||||
Total operating expenses
|
1,740 | 1,455 | 285 | 19.6 | % | |||||||||||
Provision for income tax expense (benefit)
|
139 | 98 | 41 | 41.8 | % | |||||||||||
Operating earnings
|
$ | 264 | $ | 182 | $ | 82 | 45.1 | % | ||||||||
150
Three Months |
||||||||||||||||
Ended |
||||||||||||||||
September 30, | ||||||||||||||||
2011 | 2010 | Change | % Change | |||||||||||||
(In millions) | ||||||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Premiums
|
$ | 760 | $ | 740 | $ | 20 | 2.7 | % | ||||||||
Net investment income
|
50 | 51 | (1 | ) | (2.0 | )% | ||||||||||
Other revenues
|
8 | 8 | | | % | |||||||||||
Total operating revenues
|
818 | 799 | 19 | 2.4 | % | |||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
613 | 506 | 107 | 21.1 | % | |||||||||||
Capitalization of DAC
|
(121 | ) | (118 | ) | (3 | ) | (2.5 | )% | ||||||||
Amortization of DAC and VOBA
|
114 | 110 | 4 | 3.6 | % | |||||||||||
Other expenses
|
200 | 200 | | | % | |||||||||||
Total operating expenses
|
806 | 698 | 108 | 15.5 | % | |||||||||||
Provision for income tax expense (benefit)
|
(10 | ) | 20 | (30 | ) | (150.0 | )% | |||||||||
Operating earnings
|
$ | 22 | $ | 81 | $ | (59 | ) | (72.8 | )% | |||||||
151
Three Months |
||||||||||||
Ended |
||||||||||||
September 30, | ||||||||||||
2011 | 2010 | Change | ||||||||||
(In millions) | ||||||||||||
OPERATING REVENUES
|
||||||||||||
Premiums
|
$ | 1,601 | $ | | $ | 1,601 | ||||||
Universal life and investment-type product policy fees
|
220 | | 220 | |||||||||
Net investment income
|
540 | | 540 | |||||||||
Other revenues
|
5 | | 5 | |||||||||
Total operating revenues
|
2,366 | | 2,366 | |||||||||
OPERATING EXPENSES
|
||||||||||||
Policyholder benefits and claims and policyholder dividends
|
999 | | 999 | |||||||||
Interest credited to policyholder account balances
|
401 | | 401 | |||||||||
Capitalization of DAC
|
(619 | ) | | (619 | ) | |||||||
Amortization of DAC and VOBA
|
318 | | 318 | |||||||||
Amortization of negative VOBA
|
(135 | ) | | (135 | ) | |||||||
Other expenses
|
909 | | 909 | |||||||||
Total operating expenses
|
1,873 | | 1,873 | |||||||||
Provision for income tax expense (benefit)
|
178 | | 178 | |||||||||
Operating earnings
|
$ | 315 | $ | | $ | 315 | ||||||
152
Three Months |
||||||||||||||||
Ended |
||||||||||||||||
September 30, | ||||||||||||||||
2011 | 2010 | Change | % Change | |||||||||||||
(In millions) | ||||||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Premiums
|
$ | 1,702 | $ | 878 | $ | 824 | 93.8 | % | ||||||||
Universal life and investment-type product policy fees
|
433 | 301 | 132 | 43.9 | % | |||||||||||
Net investment income
|
550 | 451 | 99 | 22.0 | % | |||||||||||
Other revenues
|
40 | 7 | 33 | 471.4 | % | |||||||||||
Total operating revenues
|
2,725 | 1,637 | 1,088 | 66.5 | % | |||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
1,315 | 763 | 552 | 72.3 | % | |||||||||||
Interest credited to policyholder account balances
|
146 | 242 | (96 | ) | (39.7 | )% | ||||||||||
Capitalization of DAC
|
(415 | ) | (168 | ) | (247 | ) | (147.0 | )% | ||||||||
Amortization of DAC and VOBA
|
268 | 104 | 164 | 157.7 | % | |||||||||||
Amortization of negative VOBA
|
(16 | ) | | (16 | ) | |||||||||||
Interest expense on debt
|
| (1 | ) | 1 | 100.0 | % | ||||||||||
Other expenses
|
1,074 | 506 | 568 | 112.3 | % | |||||||||||
Total operating expenses
|
2,372 | 1,446 | 926 | 64.0 | % | |||||||||||
Provision for income tax expense (benefit)
|
90 | 2 | 88 | 4,400.0 | % | |||||||||||
Operating earnings
|
$ | 263 | $ | 189 | $ | 74 | 39.2 | % | ||||||||
153
Three Months |
||||||||||||||||
Ended |
||||||||||||||||
September 30, | ||||||||||||||||
2011 | 2010 | Change | % Change | |||||||||||||
(In millions) | ||||||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Premiums
|
$ | 3 | $ | 3 | $ | | | % | ||||||||
Net investment income
|
297 | 225 | 72 | 32.0 | % | |||||||||||
Other revenues
|
308 | 309 | (1 | ) | (0.3 | )% | ||||||||||
Total operating revenues
|
608 | 537 | 71 | 13.2 | % | |||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
4 | (4 | ) | 8 | 200.0 | % | ||||||||||
Interest credited to bank deposits
|
26 | 33 | (7 | ) | (21.2 | )% | ||||||||||
Amortization of DAC and VOBA
|
| (1 | ) | 1 | 100.0 | % | ||||||||||
Interest expense on debt
|
326 | 292 | 34 | 11.6 | % | |||||||||||
Other expenses
|
438 | 278 | 160 | 57.6 | % | |||||||||||
Total operating expenses
|
794 | 598 | 196 | 32.8 | % | |||||||||||
Provision for income tax expense (benefit)
|
(162 | ) | (14 | ) | (148 | ) | (1,057.1 | )% | ||||||||
Operating earnings
|
(24 | ) | (47 | ) | 23 | 48.9 | % | |||||||||
Less: Preferred stock dividends
|
30 | 30 | | | % | |||||||||||
Operating earnings available to common shareholders
|
$ | (54 | ) | $ | (77 | ) | $ | 23 | 29.9 | % | ||||||
154
155
Nine Months |
||||||||||||||||
Ended |
||||||||||||||||
September 30, | ||||||||||||||||
2011 | 2010 | Change | % Change | |||||||||||||
(In millions) | ||||||||||||||||
Revenues
|
||||||||||||||||
Premiums
|
$ | 27,190 | $ | 19,856 | $ | 7,334 | 36.9 | % | ||||||||
Universal life and investment-type product policy fees
|
5,856 | 4,339 | 1,517 | 35.0 | % | |||||||||||
Net investment income
|
14,669 | 12,745 | 1,924 | 15.1 | % | |||||||||||
Other revenues
|
1,878 | 1,681 | 197 | 11.7 | % | |||||||||||
Net investment gains (losses)
|
(309 | ) | (324 | ) | 15 | 4.6 | % | |||||||||
Net derivative gains (losses)
|
4,233 | 1,278 | 2,955 | 231.2 | % | |||||||||||
Total revenues
|
53,517 | 39,575 | 13,942 | 35.2 | % | |||||||||||
Expenses
|
||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
27,497 | 22,859 | 4,638 | 20.3 | % | |||||||||||
Interest credited to policyholder account balances
|
4,104 | 3,454 | 650 | 18.8 | % | |||||||||||
Interest credited to bank deposits
|
72 | 108 | (36 | ) | (33.3 | )% | ||||||||||
Capitalization of DAC
|
(5,119 | ) | (2,255 | ) | (2,864 | ) | (127.0 | )% | ||||||||
Amortization of DAC and VOBA
|
4,295 | 2,184 | 2,111 | 96.7 | % | |||||||||||
Amortization of negative VOBA
|
(536 | ) | | (536 | ) | |||||||||||
Interest expense on debt
|
1,260 | 1,136 | 124 | 10.9 | % | |||||||||||
Other expenses
|
13,438 | 8,157 | 5,281 | 64.7 | % | |||||||||||
Total expenses
|
45,011 | 35,643 | 9,368 | 26.3 | % | |||||||||||
Income (loss) from continuing operations before provision for
income tax
|
8,506 | 3,932 | 4,574 | 116.3 | % | |||||||||||
Provision for income tax expense (benefit)
|
2,681 | 1,251 | 1,430 | 114.3 | % | |||||||||||
Income (loss) from continuing operations, net of income tax
|
5,825 | 2,681 | 3,144 | 117.3 | % | |||||||||||
Income (loss) from discontinued operations, net of income tax
|
(6 | ) | 20 | (26 | ) | (130.0 | )% | |||||||||
Net income (loss)
|
5,819 | 2,701 | 3,118 | 115.4 | % | |||||||||||
Less: Net income (loss) attributable to noncontrolling interests
|
(6 | ) | (7 | ) | 1 | 14.3 | % | |||||||||
Net income (loss) attributable to MetLife, Inc.
|
5,825 | 2,708 | 3,117 | 115.1 | % | |||||||||||
Less: Preferred stock dividends
|
91 | 91 | | | % | |||||||||||
Preferred stock redemption premium
|
146 | | 146 | |||||||||||||
Net income (loss) available to MetLife, Inc.s common
shareholders
|
$ | 5,588 | $ | 2,617 | $ | 2,971 | 113.5 | % | ||||||||
156
157
Corporate |
Other |
Banking, |
||||||||||||||||||||||||||||||
Insurance |
Retirement |
Benefit |
Auto & |
International |
Corporate |
|||||||||||||||||||||||||||
Products | Products | Funding | Home | Japan | Regions | & Other | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
$ | 2,062 | $ | 1,174 | $ | 1,110 | $ | 10 | $ | 934 | $ | 851 | $ | (316 | ) | $ | 5,825 | |||||||||||||||
Less: Net investment gains (losses)
|
55 | 72 | 86 | (10 | ) | (115 | ) | (385 | ) | (12 | ) | (309 | ) | |||||||||||||||||||
Less: Net derivative gains (losses)
|
1,689 | 1,220 | 228 | (10 | ) | 228 | 987 | (109 | ) | 4,233 | ||||||||||||||||||||||
Less: Other adjustments to continuing operations (1)
|
(208 | ) | (281 | ) | 60 | | 15 | (428 | ) | (222 | ) | (1,064 | ) | |||||||||||||||||||
Less: Provision for income tax (expense) benefit
|
(538 | ) | (354 | ) | (131 | ) | 7 | (44 | ) | (125 | ) | 133 | (1,052 | ) | ||||||||||||||||||
Operating earnings
|
$ | 1,064 | $ | 517 | $ | 867 | $ | 23 | $ | 850 | $ | 802 | (106 | ) | 4,017 | |||||||||||||||||
Less: Preferred stock dividends
|
91 | 91 | ||||||||||||||||||||||||||||||
Operating earnings available to common shareholders
|
$ | (197 | ) | $ | 3,926 | |||||||||||||||||||||||||||
Corporate |
Other |
Banking, |
||||||||||||||||||||||||||||||
Insurance |
Retirement |
Benefit |
Auto & |
International |
Corporate |
|||||||||||||||||||||||||||
Products | Products | Funding | Home | Japan | Regions | & Other | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax
|
$ | 1,403 | $ | 781 | $ | 668 | $ | 219 | $ | | $ | 41 | $ | (431 | ) | $ | 2,681 | |||||||||||||||
Less: Net investment gains (losses)
|
78 | 96 | 111 | (3 | ) | | (268 | ) | (338 | ) | (324 | ) | ||||||||||||||||||||
Less: Net derivative gains (losses)
|
711 | 627 | (123 | ) | (7 | ) | | 157 | (87 | ) | 1,278 | |||||||||||||||||||||
Less: Other adjustments to continuing operations (1)
|
(187 | ) | (404 | ) | 69 | | | (413 | ) | (82 | ) | (1,017 | ) | |||||||||||||||||||
Less: Provision for income tax (expense) benefit
|
(211 | ) | (113 | ) | (26 | ) | 3 | | 87 | 177 | (83 | ) | ||||||||||||||||||||
Operating earnings
|
$ | 1,012 | $ | 575 | $ | 637 | $ | 226 | $ | | $ | 478 | (101 | ) | 2,827 | |||||||||||||||||
Less: Preferred stock dividends
|
91 | 91 | ||||||||||||||||||||||||||||||
Operating earnings available to common shareholders
|
$ | (192 | ) | $ | 2,736 | |||||||||||||||||||||||||||
158
Corporate |
Other |
Banking, |
||||||||||||||||||||||||||||||
Insurance |
Retirement |
Benefit |
Auto & |
International |
Corporate |
|||||||||||||||||||||||||||
Products | Products | Funding | Home | Japan | Regions | & Other | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Total revenues
|
$ | 21,155 | $ | 6,636 | $ | 6,515 | $ | 2,400 | $ | 6,701 | $ | 8,308 | $ | 1,802 | $ | 53,517 | ||||||||||||||||
Less: Net investment gains (losses)
|
55 | 72 | 86 | (10 | ) | (115 | ) | (385 | ) | (12 | ) | (309 | ) | |||||||||||||||||||
Less: Net derivative gains (losses)
|
1,689 | 1,220 | 228 | (10 | ) | 228 | 987 | (109 | ) | 4,233 | ||||||||||||||||||||||
Less: Adjustments related to net investment gains (losses) and
net derivative gains (losses)
|
14 | | | | | | | 14 | ||||||||||||||||||||||||
Less: Other adjustments to revenues (1)
|
(164 | ) | 72 | 117 | | (255 | ) | (217 | ) | 300 | (147 | ) | ||||||||||||||||||||
Total operating revenues
|
$ | 19,561 | $ | 5,272 | $ | 6,084 | $ | 2,420 | $ | 6,843 | $ | 7,923 | $ | 1,623 | $ | 49,726 | ||||||||||||||||
Total expenses
|
$ | 17,982 | $ | 4,829 | $ | 4,808 | $ | 2,448 | $ | 5,256 | $ | 7,031 | $ | 2,657 | $ | 45,011 | ||||||||||||||||
Less: Adjustments related to net investment gains (losses) and
net derivative gains (losses)
|
60 | 485 | | | 20 | | | 565 | ||||||||||||||||||||||||
Less: Other adjustments to expenses (1)
|
(2 | ) | (132 | ) | 57 | | (290 | ) | 211 | 522 | 366 | |||||||||||||||||||||
Total operating expenses
|
$ | 17,924 | $ | 4,476 | $ | 4,751 | $ | 2,448 | $ | 5,526 | $ | 6,820 | $ | 2,135 | $ | 44,080 | ||||||||||||||||
Corporate |
Other |
Banking, |
||||||||||||||||||||||||||||||
Insurance |
Retirement |
Benefit |
Auto & |
International |
Corporate |
|||||||||||||||||||||||||||
Products | Products | Funding | Home | Japan | Regions | & Other | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Total revenues
|
$ | 20,269 | $ | 5,588 | $ | 5,668 | $ | 2,337 | $ | | $ | 4,343 | $ | 1,370 | $ | 39,575 | ||||||||||||||||
Less: Net investment gains (losses)
|
78 | 96 | 111 | (3 | ) | | (268 | ) | (338 | ) | (324 | ) | ||||||||||||||||||||
Less: Net derivative gains (losses)
|
711 | 627 | (123 | ) | (7 | ) | | 157 | (87 | ) | 1,278 | |||||||||||||||||||||
Less: Adjustments related to net investment gains (losses) and
net derivative gains (losses)
|
6 | | | | | | | 6 | ||||||||||||||||||||||||
Less: Other adjustments to revenues (1)
|
(110 | ) | (48 | ) | 142 | | | (135 | ) | 345 | 194 | |||||||||||||||||||||
Total operating revenues
|
$ | 19,584 | $ | 4,913 | $ | 5,538 | $ | 2,347 | $ | | $ | 4,589 | $ | 1,450 | $ | 38,421 | ||||||||||||||||
Total expenses
|
$ | 18,110 | $ | 4,384 | $ | 4,631 | $ | 2,067 | $ | | $ | 4,288 | $ | 2,163 | $ | 35,643 | ||||||||||||||||
Less: Adjustments related to net investment gains (losses) and
net derivative gains (losses)
|
78 | 185 | | | | | | 263 | ||||||||||||||||||||||||
Less: Other adjustments to expenses (1)
|
5 | 171 | 73 | | | 278 | 427 | 954 | ||||||||||||||||||||||||
Total operating expenses
|
$ | 18,027 | $ | 4,028 | $ | 4,558 | $ | 2,067 | $ | | $ | 4,010 | $ | 1,736 | $ | 34,426 | ||||||||||||||||
159
160
Nine Months |
||||||||||||||||
Ended |
||||||||||||||||
September 30, | ||||||||||||||||
2011 | 2010 | Change | % Change | |||||||||||||
(In millions) | ||||||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Premiums
|
$ | 12,619 | $ | 12,874 | $ | (255 | ) | (2.0 | )% | |||||||
Universal life and investment-type product policy fees
|
1,695 | 1,634 | 61 | 3.7 | % | |||||||||||
Net investment income
|
4,627 | 4,514 | 113 | 2.5 | % | |||||||||||
Other revenues
|
620 | 562 | 58 | 10.3 | % | |||||||||||
Total operating revenues
|
19,561 | 19,584 | (23 | ) | (0.1 | )% | ||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
14,115 | 14,253 | (138 | ) | (1.0 | )% | ||||||||||
Interest credited to policyholder account balances
|
742 | 714 | 28 | 3.9 | % | |||||||||||
Capitalization of DAC
|
(643 | ) | (627 | ) | (16 | ) | (2.6 | )% | ||||||||
Amortization of DAC and VOBA
|
631 | 666 | (35 | ) | (5.3 | )% | ||||||||||
Other expenses
|
3,079 | 3,021 | 58 | 1.9 | % | |||||||||||
Total operating expenses
|
17,924 | 18,027 | (103 | ) | (0.6 | )% | ||||||||||
Provision for income tax expense (benefit)
|
573 | 545 | 28 | 5.1 | % | |||||||||||
Operating earnings
|
$ | 1,064 | $ | 1,012 | $ | 52 | 5.1 | % | ||||||||
161
162
Nine Months |
||||||||||||||||
Ended |
||||||||||||||||
September 30, | ||||||||||||||||
2011 | 2010 | Change | % Change | |||||||||||||
(In millions) | ||||||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Premiums
|
$ | 839 | $ | 730 | $ | 109 | 14.9 | % | ||||||||
Universal life and investment-type product policy fees
|
1,828 | 1,474 | 354 | 24.0 | % | |||||||||||
Net investment income
|
2,378 | 2,550 | (172 | ) | (6.7 | )% | ||||||||||
Other revenues
|
227 | 159 | 68 | 42.8 | % | |||||||||||
Total operating revenues
|
5,272 | 4,913 | 359 | 7.3 | % | |||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
1,362 | 1,207 | 155 | 12.8 | % | |||||||||||
Interest credited to policyholder account balances
|
1,196 | 1,205 | (9 | ) | (0.7 | )% | ||||||||||
Capitalization of DAC
|
(1,195 | ) | (766 | ) | (429 | ) | (56.0 | )% | ||||||||
Amortization of DAC and VOBA
|
783 | 594 | 189 | 31.8 | % | |||||||||||
Interest expense on debt
|
1 | 4 | (3 | ) | (75.0 | )% | ||||||||||
Other expenses
|
2,329 | 1,784 | 545 | 30.5 | % | |||||||||||
Total operating expenses
|
4,476 | 4,028 | 448 | 11.1 | % | |||||||||||
Provision for income tax expense (benefit)
|
279 | 310 | (31 | ) | (10.0 | )% | ||||||||||
Operating earnings
|
$ | 517 | $ | 575 | $ | (58 | ) | (10.1 | )% | |||||||
163
Nine Months |
||||||||||||||||
Ended |
||||||||||||||||
September 30, | ||||||||||||||||
2011 | 2010 | Change | % Change | |||||||||||||
(In millions) | ||||||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Premiums
|
$ | 1,796 | $ | 1,547 | $ | 249 | 16.1 | % | ||||||||
Universal life and investment-type product policy fees
|
181 | 169 | 12 | 7.1 | % | |||||||||||
Net investment income
|
3,925 | 3,641 | 284 | 7.8 | % | |||||||||||
Other revenues
|
182 | 181 | 1 | 0.6 | % | |||||||||||
Total operating revenues
|
6,084 | 5,538 | 546 | 9.9 | % | |||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
3,400 | 3,115 | 285 | 9.1 | % | |||||||||||
Interest credited to policyholder account balances
|
992 | 1,099 | (107 | ) | (9.7 | )% | ||||||||||
Capitalization of DAC
|
(24 | ) | (17 | ) | (7 | ) | (41.2 | )% | ||||||||
Amortization of DAC and VOBA
|
14 | 12 | 2 | 16.7 | % | |||||||||||
Interest expense on debt
|
6 | 3 | 3 | 100.0 | % | |||||||||||
Other expenses
|
363 | 346 | 17 | 4.9 | % | |||||||||||
Total operating expenses
|
4,751 | 4,558 | 193 | 4.2 | % | |||||||||||
Provision for income tax expense (benefit)
|
466 | 343 | 123 | 35.9 | % | |||||||||||
Operating earnings
|
$ | 867 | $ | 637 | $ | 230 | 36.1 | % | ||||||||
164
Nine Months |
||||||||||||||||
Ended |
||||||||||||||||
September 30, | ||||||||||||||||
2011 | 2010 | Change | % Change | |||||||||||||
(In millions) | ||||||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Premiums
|
$ | 2,243 | $ | 2,177 | $ | 66 | 3.0 | % | ||||||||
Net investment income
|
154 | 156 | (2 | ) | (1.3 | )% | ||||||||||
Other revenues
|
23 | 14 | 9 | 64.3 | % | |||||||||||
Total operating revenues
|
2,420 | 2,347 | 73 | 3.1 | % | |||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
1,864 | 1,506 | 358 | 23.8 | % | |||||||||||
Capitalization of DAC
|
(343 | ) | (339 | ) | (4 | ) | (1.2 | )% | ||||||||
Amortization of DAC and VOBA
|
336 | 328 | 8 | 2.4 | % | |||||||||||
Other expenses
|
591 | 572 | 19 | 3.3 | % | |||||||||||
Total operating expenses
|
2,448 | 2,067 | 381 | 18.4 | % | |||||||||||
Provision for income tax expense (benefit)
|
(51 | ) | 54 | (105 | ) | (194.4 | )% | |||||||||
Operating earnings
|
$ | 23 | $ | 226 | $ | (203 | ) | (89.8 | )% | |||||||
165
Nine Months |
||||||||||||
Ended |
||||||||||||
September 30, | ||||||||||||
2011 | 2010 | Change | ||||||||||
(In millions) | ||||||||||||
OPERATING REVENUES
|
||||||||||||
Premiums
|
$ | 4,720 | $ | | $ | 4,720 | ||||||
Universal life and investment-type product policy fees
|
609 | | 609 | |||||||||
Net investment income
|
1,496 | | 1,496 | |||||||||
Other revenues
|
18 | | 18 | |||||||||
Total operating revenues
|
6,843 | | 6,843 | |||||||||
OPERATING EXPENSES
|
||||||||||||
Policyholder benefits and claims and policyholder dividends
|
2,967 | | 2,967 | |||||||||
Interest credited to policyholder account balances
|
1,158 | | 1,158 | |||||||||
Capitalization of DAC
|
(1,660 | ) | | (1,660 | ) | |||||||
Amortization of DAC and VOBA
|
981 | | 981 | |||||||||
Amortization of negative VOBA
|
(422 | ) | | (422 | ) | |||||||
Other expenses
|
2,502 | | 2,502 | |||||||||
Total operating expenses
|
5,526 | | 5,526 | |||||||||
Provision for income tax expense (benefit)
|
467 | | 467 | |||||||||
Operating earnings
|
$ | 850 | $ | | $ | 850 | ||||||
166
Nine Months |
||||||||||||||||
Ended |
||||||||||||||||
September 30, | ||||||||||||||||
2011 | 2010 | Change | % Change | |||||||||||||
(In millions) | ||||||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Premiums
|
$ | 4,966 | $ | 2,522 | $ | 2,444 | 96.9 | % | ||||||||
Universal life and investment-type product policy fees
|
1,339 | 902 | 437 | 48.4 | % | |||||||||||
Net investment income
|
1,510 | 1,153 | 357 | 31.0 | % | |||||||||||
Other revenues
|
108 | 12 | 96 | 800.0 | % | |||||||||||
Total operating revenues
|
7,923 | 4,589 | 3,334 | 72.7 | % | |||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
3,635 | 2,279 | 1,356 | 59.5 | % | |||||||||||
Interest credited to policyholder account balances
|
441 | 433 | 8 | 1.8 | % | |||||||||||
Capitalization of DAC
|
(1,254 | ) | (506 | ) | (748 | ) | (147.8 | )% | ||||||||
Amortization of DAC and VOBA
|
868 | 313 | 555 | 177.3 | % | |||||||||||
Amortization of negative VOBA
|
(57 | ) | | (57 | ) | |||||||||||
Interest expense on debt
|
2 | 2 | | | % | |||||||||||
Other expenses
|
3,185 | 1,489 | 1,696 | 113.9 | % | |||||||||||
Total operating expenses
|
6,820 | 4,010 | 2,810 | 70.1 | % | |||||||||||
Provision for income tax expense (benefit)
|
301 | 101 | 200 | 198.0 | % | |||||||||||
Operating earnings
|
$ | 802 | $ | 478 | $ | 324 | 67.8 | % | ||||||||
167
Nine Months |
||||||||||||||||
Ended |
||||||||||||||||
September 30, | ||||||||||||||||
2011 | 2010 | Change | % Change | |||||||||||||
(In millions) | ||||||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Premiums
|
$ | 7 | $ | 6 | $ | 1 | 16.7 | % | ||||||||
Net investment income
|
924 | 691 | 233 | 33.7 | % | |||||||||||
Other revenues
|
692 | 753 | (61 | ) | (8.1 | )% | ||||||||||
Total operating revenues
|
1,623 | 1,450 | 173 | 11.9 | % | |||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Policyholder benefits and claims and policyholder dividends
|
7 | (11 | ) | 18 | 163.6 | % | ||||||||||
Interest credited to bank deposits
|
72 | 108 | (36 | ) | (33.3 | )% | ||||||||||
Amortization of DAC and VOBA
|
| (1 | ) | 1 | 100.0 | % | ||||||||||
Interest expense on debt
|
970 | 815 | 155 | 19.0 | % | |||||||||||
Other expenses
|
1,086 | 825 | 261 | 31.6 | % | |||||||||||
Total operating expenses
|
2,135 | 1,736 | 399 | 23.0 | % | |||||||||||
Provision for income tax expense (benefit)
|
(406 | ) | (185 | ) | (221 | ) | (119.5 | )% | ||||||||
Operating earnings
|
(106 | ) | (101 | ) | (5 | ) | (5.0 | )% | ||||||||
Less: Preferred stock dividends
|
91 | 91 | | | % | |||||||||||
Operating earnings available to common shareholders
|
$ | (197 | ) | $ | (192 | ) | $ | (5 | ) | (2.6 | )% | |||||
168
| 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; | |
| liquidity risk, relating to the diminished ability to sell certain investments in times of strained market conditions; and | |
| market valuation risk, relating to the variability in the estimated fair value of investments associated with changes in market factors such as credit spreads. |
169
170
171
172
At or For the |
At or For the |
|||||||||||||||
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Fixed Maturity Securities:
|
||||||||||||||||
Yield (1)
|
4.79 | % | 5.81 | % | 4.95 | % | 5.63 | % | ||||||||
Investment income (2),(3)
|
$ | 3,721 | $ | 3,236 | $ | 11,208 | $ | 9,289 | ||||||||
Investment gains (losses) (3)
|
$ | (186 | ) | $ | (65 | ) | $ | (454 | ) | $ | (258 | ) | ||||
Ending carrying value (2),(3)
|
$ | 354,611 | $ | 261,988 | $ | 354,611 | $ | 261,988 | ||||||||
Mortgage Loans:
|
||||||||||||||||
Yield (1)
|
5.56 | % | 5.54 | % | 5.54 | % | 5.50 | % | ||||||||
Investment income (3),(4)
|
$ | 806 | $ | 712 | $ | 2,330 | $ | 2,078 | ||||||||
Investment gains (losses) (3)
|
$ | 45 | $ | 37 | $ | 160 | $ | 20 | ||||||||
Ending carrying value (3)
|
$ | 59,722 | $ | 52,770 | $ | 59,722 | $ | 52,770 | ||||||||
Real Estate and Real Estate Joint Ventures:
|
||||||||||||||||
Yield (1)
|
4.67 | % | 2.80 | % | 4.15 | % | 1.28 | % | ||||||||
Investment income
|
$ | 96 | $ | 48 | $ | 252 | $ | 66 | ||||||||
Investment gains (losses)
|
$ | 165 | $ | (1 | ) | $ | 241 | $ | (40 | ) | ||||||
Ending carrying value
|
$ | 8,197 | $ | 6,990 | $ | 8,197 | $ | 6,990 | ||||||||
Policy Loans:
|
||||||||||||||||
Yield (1)
|
5.43 | % | 6.19 | % | 5.46 | % | 6.50 | % | ||||||||
Investment income
|
$ | 162 | $ | 155 | $ | 482 | $ | 488 | ||||||||
Ending carrying value
|
$ | 11,932 | $ | 10,089 | $ | 11,932 | $ | 10,089 | ||||||||
Equity Securities:
|
||||||||||||||||
Yield (1)
|
3.59 | % | 2.75 | % | 4.42 | % | 3.84 | % | ||||||||
Investment income
|
$ | 28 | $ | 19 | $ | 106 | $ | 83 | ||||||||
Investment gains (losses)
|
$ | (3 | ) | $ | (1 | ) | $ | (37 | ) | $ | 100 | |||||
Ending carrying value
|
$ | 3,118 | $ | 2,861 | $ | 3,118 | $ | 2,861 | ||||||||
Other Limited Partnership Interests:
|
||||||||||||||||
Yield (1)
|
11.08 | % | 11.48 | % | 12.07 | % | 13.75 | % | ||||||||
Investment income
|
$ | 180 | $ | 170 | $ | 582 | $ | 596 | ||||||||
Investment gains (losses)
|
$ | | $ | (4 | ) | $ | 8 | $ | (15 | ) | ||||||
Ending carrying value
|
$ | 6,538 | $ | 5,948 | $ | 6,538 | $ | 5,948 | ||||||||
Cash and Short-Term Investments:
|
||||||||||||||||
Yield (1)
|
0.72 | % | 0.42 | % | 0.87 | % | 0.39 | % | ||||||||
Investment income
|
$ | 38 | $ | 20 | $ | 122 | $ | 48 | ||||||||
Investment gains (losses)
|
$ | | $ | | $ | 1 | $ | 1 | ||||||||
Ending carrying value (3)
|
$ | 25,901 | $ | 26,019 | $ | 25,901 | $ | 26,019 | ||||||||
Other Invested Assets: (5)
|
||||||||||||||||
Investment income
|
$ | 158 | $ | 75 | $ | 335 | $ | 395 | ||||||||
Investment gains (losses)
|
$ | | $ | (67 | ) | $ | (3 | ) | $ | 8 | ||||||
Ending carrying value
|
$ | 23,138 | $ | 16,558 | $ | 23,138 | $ | 16,558 | ||||||||
Total Investments:
|
||||||||||||||||
Investment income yield (1)
|
4.76 | % | 5.32 | % | 4.90 | % | 5.36 | % | ||||||||
Investment fees and expenses yield
|
(0.13 | ) | (0.15 | ) | (0.13 | ) | (0.14 | ) | ||||||||
Net Investment Income Yield (3)
|
4.63 | % | 5.17 | % | 4.77 | % | 5.22 | % | ||||||||
Investment income
|
$ | 5,189 | $ | 4,435 | $ | 15,417 | $ | 13,043 | ||||||||
Investment fees and expenses
|
(137 | ) | (121 | ) | (403 | ) | (338 | ) | ||||||||
Net Investment Income (3),(6)
|
$ | 5,052 | $ | 4,314 | $ | 15,014 | $ | 12,705 | ||||||||
Ending Carrying Value (3)
|
$ | 493,157 | $ | 383,223 | $ | 493,157 | $ | 383,223 | ||||||||
Gross investment gains (3)
|
$ | 477 | $ | 212 | $ | 1,115 | $ | 899 | ||||||||
Gross investment losses (3)
|
(199 | ) | (215 | ) | (732 | ) | (664 | ) | ||||||||
Writedowns
|
(257 | ) | (98 | ) | (467 | ) | (419 | ) | ||||||||
Investment Portfolio Gains (Losses) (3),(6)
|
$ | 21 | $ | (101 | ) | $ | (84 | ) | $ | (184 | ) | |||||
Investment portfolio gains (losses) income tax (expense) benefit
|
(7 | ) | 29 | 31 | 48 | |||||||||||
Investment Portfolio Gains (Losses), Net of Income Tax
|
$ | 14 | $ | (72 | ) | $ | (53 | ) | $ | (136 | ) | |||||
Derivative Gains (Losses) (6)
|
$ | 4,130 | $ | (311 | ) | $ | 4,037 | $ | 1,001 | |||||||
Derivative gains (losses) income tax (expense) benefit
|
(1,442 | ) | 121 | (1,414 | ) | (408 | ) | |||||||||
Derivative Gains (Losses), Net of Income Tax
|
$ | 2,688 | $ | (190 | ) | $ | 2,623 | $ | 593 | |||||||
173
(1) | Yields are based on average of quarterly average asset carrying values, excluding recognized and unrealized investment gains (losses), collateral received from counterparties associated with our securities lending program, the effects of consolidating certain VIEs that are treated as CSEs and, effective October 1, 2010, contractholder-directed unit-linked investments. Yields also exclude investment income recognized on mortgage loans and securities held by CSEs and, effective October 1, 2010, contractholder-directed unit-linked investments. | |
(2) | Fixed maturity securities include $684 million and $3,756 million at estimated fair value of trading and other securities at September 30, 2011 and 2010, respectively. Fixed maturity securities include ($38) million and $6 million of investment income (loss) related to trading and other securities for the three months and nine months ended September 30, 2011, respectively, and $194 million and $217 million of investment income related to trading and other securities for the three months and nine months ended September 30, 2010, respectively. | |
(3) | (a) Ending carrying values of fixed maturity securities as presented herein, exclude (i) contractholder-directed unit-linked investments reported within trading and other securities, of $17,874 million at September 30, 2011, and (ii) securities held by CSEs reported within trading and other securities, of $140 million and $231 million at September 30, 2011 and 2010, respectively. Effective October 1, 2010, investment income and net investment income, as presented herein, excludes investment income and net investment income on contractholder-directed unit-linked investments reported within trading and other securities, as shown in footnote (6) to this yield table. | |
(b) Ending carrying values, investment income, net investment income and investment gains (losses), as presented herein, exclude the effects of consolidating certain VIEs that are treated as CSEs. The adjustments to investment income, net investment income and investment gains (losses) in the aggregate are as shown in footnote (6) to this yield table. The adjustments to ending carrying value, investment income and investment gains (losses) by invested asset class are presented below. Both the invested assets and long-term debt of the CSEs are accounted for under the fair value option (FVO). The adjustment to investment gains (losses) presented below and in footnote (6) to this yield table includes the effects of remeasuring both the invested assets and long-term debt in accordance with the FVO. |
At or For the Three Months Ended September 30, 2011 | At or For the Nine Months Ended September 30, 2011 | |||||||||||||||||||||||
Impact of Excluding |
Total - Including all |
Impact of Excluding |
Total - Including all |
|||||||||||||||||||||
As Reported in the |
Trading and Other |
Trading and Other |
As Reported in the |
Trading and Other |
Trading and Other |
|||||||||||||||||||
Yield Table | Securities and CSEs | Securities and CSEs | Yield Table | Securities and CSEs | Securities and CSEs | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Trading and Other Securities:
|
||||||||||||||||||||||||
(included within Fixed Maturity Securities):
|
||||||||||||||||||||||||
Ending carrying value
|
$ | 684 | $ | 18,014 | $ | 18,698 | $ | 684 | $ | 18,014 | $ | 18,698 | ||||||||||||
Investment income
|
$ | (38 | ) | $ | (818 | ) | $ | (856 | ) | $ | 6 | $ | (430 | ) | $ | (424 | ) | |||||||
Investment gains (losses)
|
$ | | $ | 1 | $ | 1 | $ | | $ | (7 | ) | $ | (7 | ) | ||||||||||
Mortgage Loans:
|
||||||||||||||||||||||||
Ending carrying value
|
$ | 59,722 | $ | 3,227 | $ | 62,949 | $ | 59,722 | $ | 3,227 | $ | 62,949 | ||||||||||||
Investment income
|
$ | 806 | $ | 95 | $ | 901 | $ | 2,330 | $ | 286 | $ | 2,616 | ||||||||||||
Investment gains (losses)
|
$ | 45 | $ | (8 | ) | $ | 37 | $ | 160 | $ | 9 | $ | 169 | |||||||||||
Cash and Short-Term Investments:
|
||||||||||||||||||||||||
Ending carrying value
|
$ | 25,901 | $ | 13 | $ | 25,914 | $ | 25,901 | $ | 13 | $ | 25,914 | ||||||||||||
Total Investments:
|
||||||||||||||||||||||||
Ending carrying value
|
$ | 493,157 | $ | 21,254 | $ | 514,411 | $ | 493,157 | $ | 21,254 | $ | 514,411 |
(4) | Investment income from fixed maturity securities and mortgage loans includes prepayment fees. |
174
(5) | Other invested assets are principally comprised of freestanding derivatives with positive estimated fair values and leveraged leases. Freestanding derivatives with negative estimated fair values are included within other liabilities. However, the accruals of settlement payments on freestanding derivatives included in other liabilities are included in net investment income as shown in Note 4 of the Notes to the Interim Condensed Consolidated Financial Statements. As yield is not considered a meaningful measure of performance for other invested assets, it has been excluded from the yield table. | |
(6) | Net investment income, investment portfolio gains (losses) and derivative gains (losses) presented in this yield table vary from the most directly comparable measures presented in the GAAP interim condensed consolidated statements of operations due to certain reclassifications affecting net investment income, net investment gains (losses), net derivative gains (losses), interest credited to policyholder account balances (PABs), and other revenues, and excludes the effects of consolidating under GAAP certain VIEs that are treated as CSEs. Such reclassifications are presented in the tables below. |
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | ||||||||||||||||
Net investment income in the above yield table
|
$ | 5,052 | $ | 4,314 | $ | 15,014 | $ | 12,705 | ||||||||
Real estate discontinued operations deduct from net
investment income
|
1 | 9 | (3 | ) | 2 | |||||||||||
Scheduled periodic settlement payments on derivatives not
qualifying for hedge accounting deduct from net
investment income, add to net derivative gains (losses)
|
(69 | ) | (62 | ) | (163 | ) | (172 | ) | ||||||||
Equity method operating joint ventures add to net
investment income, deduct from net derivative gains (losses)
|
| | (23 | ) | (102 | ) | ||||||||||
Net investment income on contractholder-directed unit-linked
investments reported within trading and other
securities add to net investment income
|
(824 | ) | | (437 | ) | | ||||||||||
Incremental net investment income from CSEs add to
net investment income
|
97 | 103 | 281 | 312 | ||||||||||||
Net investment income GAAP consolidated statements of operations | $ | 4,257 | $ | 4,364 | $ | 14,669 | $ | 12,745 | ||||||||
Investment portfolio gains (losses) in the above
yield table
|
$ | 21 | $ | (101 | ) | $ | (84 | ) | $ | (184 | ) | |||||
Real estate discontinued operations deduct from net
investment gains (losses)
|
(26 | ) | | (97 | ) | (10 | ) | |||||||||
Investment gains (losses) related to CSEs add to net
investment gains (losses)
|
(7 | ) | 16 | 2 | 24 | |||||||||||
Other gains (losses) add to net investment gains
(losses)
|
(43 | ) | (257 | ) | (130 | ) | (154 | ) | ||||||||
Net investment gains (losses) GAAP consolidated statements of operations | $ | (55 | ) | $ | (342 | ) | $ | (309 | ) | $ | (324 | ) | ||||
Derivative gains (losses) in the above yield table
|
$ | 4,130 | $ | (311 | ) | $ | 4,037 | $ | 1,001 | |||||||
Scheduled periodic settlement payments on derivatives not
qualifying for hedge accounting add to net
derivative gains (losses), deduct from net investment income
|
69 | 62 | 163 | 172 | ||||||||||||
Scheduled periodic settlement payments on derivatives not
qualifying for hedge accounting add to net
derivative gains (losses), deduct from interest credited to PABs
|
2 | 5 | 18 | 3 | ||||||||||||
Settlement of foreign currency earnings add to net
derivative gains (losses), deduct from other revenues
|
(5 | ) | | (8 | ) | | ||||||||||
Equity method operating joint ventures add to net
investment income, deduct from net derivative gains (losses)
|
| | 23 | 102 | ||||||||||||
Net derivative gains (losses) GAAP consolidated statements of operations | $ | 4,196 | $ | (244 | ) | $ | 4,233 | $ | 1,278 | |||||||
175
176
September 30, 2011 | ||||||||||||||||
Fixed Maturity |
Equity |
|||||||||||||||
Securities | Securities | |||||||||||||||
(In millions) | ||||||||||||||||
Level 1:
|
||||||||||||||||
Quoted prices in active markets for identical assets
|
$ | 21,817 | 6.1 | % | $ | 875 | 28.1 | % | ||||||||
Level 2:
|
||||||||||||||||
Independent pricing source
|
275,963 | 78.0 | 1,231 | 39.4 | ||||||||||||
Internal matrix pricing or discounted cash flow techniques
|
35,861 | 10.1 | 264 | 8.5 | ||||||||||||
Significant other observable inputs
|
311,824 | 88.1 | 1,495 | 47.9 | ||||||||||||
Level 3:
|
||||||||||||||||
Independent pricing source
|
9,494 | 2.7 | 286 | 9.2 | ||||||||||||
Internal matrix pricing or discounted cash flow techniques
|
9,133 | 2.6 | 12 | 0.4 | ||||||||||||
Independent broker quotations
|
1,659 | 0.5 | 450 | 14.4 | ||||||||||||
Significant unobservable inputs
|
20,286 | 5.8 | 748 | 24.0 | ||||||||||||
Total estimated fair value
|
$ | 353,927 | 100.0 | % | $ | 3,118 | 100.0 | % | ||||||||
September 30, 2011 | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Quoted Prices |
Significant |
|||||||||||||||
in Active |
Other |
Significant |
||||||||||||||
Markets for |
Observable |
Unobservable |
Total |
|||||||||||||
Identical Assets |
Inputs |
Inputs |
Estimated |
|||||||||||||
(Level 1) | (Level 2) | (Level 3) | Fair Value | |||||||||||||
(In millions) | ||||||||||||||||
Fixed Maturity Securities:
|
||||||||||||||||
U.S. corporate securities
|
$ | | $ | 99,204 | $ | 7,371 | $ | 106,575 | ||||||||
Foreign corporate securities
|
| 58,793 | 4,729 | 63,522 | ||||||||||||
Foreign government securities
|
68 | 49,002 | 3,889 | 52,959 | ||||||||||||
Residential mortgage-backed securities (RMBS)
|
25 | 41,256 | 612 | 41,893 | ||||||||||||
U.S. Treasury and agency securities
|
21,724 | 20,079 | 31 | 41,834 | ||||||||||||
Commercial mortgage-backed securities (CMBS)
|
| 18,753 | 832 | 19,585 | ||||||||||||
Asset-backed securities (ABS)
|
| 11,649 | 2,769 | 14,418 | ||||||||||||
State and political subdivision securities
|
| 13,088 | 53 | 13,141 | ||||||||||||
Other fixed maturity securities
|
| | | | ||||||||||||
Total fixed maturity securities
|
$ | 21,817 | $ | 311,824 | $ | 20,286 | $ | 353,927 | ||||||||
Equity Securities:
|
||||||||||||||||
Common stock
|
$ | 875 | $ | 1,097 | $ | 239 | $ | 2,211 | ||||||||
Non-redeemable preferred stock
|
| 398 | 509 | 907 | ||||||||||||
Total equity securities
|
$ | 875 | $ | 1,495 | $ | 748 | $ | 3,118 | ||||||||
| The majority of the Level 3 fixed maturity and equity securities (89%, as presented above) were concentrated in four sectors: U.S. and foreign corporate securities, foreign government securities and ABS. |
177
| Level 3 fixed maturity securities are priced principally through market standard valuation methodologies, independent pricing services and 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 fixed maturity securities with very limited trading activity or where less price transparency exists around the inputs to the valuation methodologies including alternative residential mortgage loan (Alt-A) RMBS and less liquid prime RMBS, certain below investment grade private placements and less liquid investment grade corporate securities (included in U.S. and foreign corporate securities), less liquid foreign government securities and less liquid ABS including securities supported by sub-prime mortgage loans (included in ABS). | |
| During the three months ended September 30, 2011, Level 3 fixed maturity securities increased by $627 million, or 3%. The increase was driven by net purchases in excess of sales and an increase in estimated fair value recognized in other comprehensive income (loss), partially offset by net transfers out of Level 3. See analysis of transfers into and/or out of Level 3 below. Net purchases in excess of sales of fixed maturity securities were concentrated in foreign government securities, U.S. corporate securities and ABS. The increase in estimated fair value recognized in accumulated other comprehensive income (loss) for fixed maturity securities was concentrated in foreign government and U.S. corporate securities due in part to a decrease in interest rates. | |
| During the nine months ended September 30, 2011, Level 3 fixed maturity securities decreased by $2,430 million, or 11%. The decrease was driven by net transfers out of Level 3, partially offset by net purchases in excess of sales and an increase in estimated fair value recognized in other comprehensive income (loss). See analysis of transfers into and/or out of Level 3 below. The increase in net purchases in excess of sales of fixed maturity securities were concentrated in foreign government securities and U.S. corporate securities, and the increase in estimated fair value recognized in accumulated other comprehensive income (loss) for fixed maturity securities was concentrated in U.S. corporate securities and foreign government securities due in part to a decrease in interest rates. |
Three Months |
Nine Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
September 30, 2011 | September 30, 2011 | |||||||||||||||
Fixed Maturity |
Equity |
Fixed Maturity |
Equity |
|||||||||||||
Securities | Securities | Securities | Securities | |||||||||||||
(In millions) | ||||||||||||||||
Balance, beginning of period
|
$ | 19,659 | $ | 959 | $ | 22,716 | $ | 1,173 | ||||||||
Total realized/unrealized gains (losses) included in:
|
||||||||||||||||
Earnings
|
(149 | ) | 10 | (79 | ) | (56 | ) | |||||||||
Other comprehensive income (loss)
|
368 | (94 | ) | 871 | 19 | |||||||||||
Purchases
|
1,846 | 14 | 5,054 | 57 | ||||||||||||
Sales
|
(868 | ) | (98 | ) | (4,162 | ) | (400 | ) | ||||||||
Transfers into Level 3
|
862 | 1 | 604 | 12 | ||||||||||||
Transfers out of Level 3
|
(1,432 | ) | (44 | ) | (4,718 | ) | (57 | ) | ||||||||
Balance, end of period
|
$ | 20,286 | $ | 748 | $ | 20,286 | $ | 748 | ||||||||
| Total gains and losses in earnings and other comprehensive income (loss) are calculated assuming transfers into or out of Level 3 occurred at the beginning of the period. Items transferred into and out for the same period are excluded from the rollforward. |
178
| Total gains (losses) for fixed maturity securities included in earnings of less than $1 million and ($5) million, and other comprehensive income (loss) of $37 million and $16 million, were incurred on these securities subsequent to their transfer into Level 3, for the three months and nine months ended September 30, 2011, respectively. | |
| Net transfers into and/or out of Level 3 for fixed maturity securities were ($570) million and ($4,114) million, and were comprised of transfers into Level 3 of $862 million and $604 million, and transfers out of Level 3 of ($1,432) million and ($4,718) million for the three months and nine months ended September 30, 2011, respectively. |
| During the three months and nine months ended September 30, 2011, fixed maturity securities transfers into Level 3 of $862 million and $604 million, respectively, resulted primarily from current market conditions characterized by a lack of trading activity, decreased liquidity and credit ratings downgrades (e.g., from investment grade to below investment grade). These current market conditions have resulted in decreased transparency of valuations and an increased use of broker quotations and unobservable inputs to determine estimated fair value principally for certain foreign government securities, ABS and foreign corporate securities for the three months ended September 30, 2011 and foreign corporate securities, ABS and foreign government securities for the nine months ended September 30, 2011. | |
| During the three months and nine months ended September 30, 2011, fixed maturity securities transfers out of Level 3 of ($1,432) million and ($4,718) million, respectively, resulted primarily from increased transparency of both new issuances that, subsequent to issuance and establishment of trading activity, became priced by independent pricing services and existing issuances that, over time, the Company was able to obtain pricing from, or corroborate pricing received from independent pricing services with observable inputs, or there were increases in market activity and upgraded credit ratings primarily for certain foreign corporate securities, foreign government securities and ABS for the three months ended September 30, 2011 and ABS, foreign corporate securities and RMBS for the nine months ended September 30, 2011. |
179
September 30, 2011 | December 31, 2010 | |||||||||||||||||||||||||||
Estimated |
Estimated |
|||||||||||||||||||||||||||
NAIC |
Amortized |
Fair |
% of |
Amortized |
Fair |
% of |
||||||||||||||||||||||
Rating | Rating Agency Designation | Cost | Value | Total | Cost | Value | Total | |||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
1 | Aaa/Aa/A | $ | 234,346 | $ | 250,596 | 70.8 | % | $ | 226,639 | $ | 231,198 | 71.2 | % | |||||||||||||||
2 | Baa | 73,486 | 78,837 | 22.3 | 65,412 | 68,729 | 21.2 | |||||||||||||||||||||
3 | Ba | 16,049 | 15,348 | 4.3 | 15,331 | 15,290 | 4.7 | |||||||||||||||||||||
4 | B | 8,624 | 7,844 | 2.2 | 8,742 | 8,308 | 2.6 | |||||||||||||||||||||
5 | Caa and lower | 1,305 | 1,157 | 0.3 | 1,340 | 1,142 | 0.3 | |||||||||||||||||||||
6 | In or near default | 199 | 145 | 0.1 | 153 | 130 | | |||||||||||||||||||||
Total fixed maturity securities | $ | 334,009 | $ | 353,927 | 100.0 | % | $ | 317,617 | $ | 324,797 | 100.0 | % | ||||||||||||||||
180
Fixed Maturity Securities by Sector & Credit Quality Rating at September 30, 2011 | ||||||||||||||||||||||||||||
NAIC Rating: | 1 | 2 | 3 | 4 | 5 | 6 |
Total |
|||||||||||||||||||||
Caa and |
In or Near |
Estimated |
||||||||||||||||||||||||||
Rating Agency Designation: | Aaa/Aa/A | Baa | Ba | B | Lower | Default | Fair Value | |||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
U.S. corporate securities
|
$ | 53,118 | $ | 40,462 | $ | 8,636 | $ | 4,082 | $ | 276 | $ | 1 | $ | 106,575 | ||||||||||||||
Foreign corporate securities
|
33,080 | 25,876 | 3,257 | 1,185 | 120 | 4 | 63,522 | |||||||||||||||||||||
Foreign government securities
|
41,960 | 8,259 | 1,248 | 1,155 | 337 | | 52,959 | |||||||||||||||||||||
RMBS (1)
|
36,543 | 1,921 | 1,977 | 1,155 | 248 | 49 | 41,893 | |||||||||||||||||||||
U.S. Treasury and agency securities
|
41,834 | | | | | | 41,834 | |||||||||||||||||||||
CMBS (1)
|
18,467 | 796 | 104 | 136 | 4 | 78 | 19,585 | |||||||||||||||||||||
ABS (1)
|
13,324 | 687 | 103 | 127 | 164 | 13 | 14,418 | |||||||||||||||||||||
State and political subdivision securities
|
12,270 | 836 | 23 | 4 | 8 | | 13,141 | |||||||||||||||||||||
Other fixed maturity securities
|
| | | | | | | |||||||||||||||||||||
Total fixed maturity securities
|
$ | 250,596 | $ | 78,837 | $ | 15,348 | $ | 7,844 | $ | 1,157 | $ | 145 | $ | 353,927 | ||||||||||||||
Percentage of total
|
70.8 | % | 22.3 | % | 4.3 | % | 2.2 | % | 0.3 | % | 0.1 | % | 100.0 | % |
Fixed Maturity Securities by Sector & Credit Quality Rating at December 31, 2010 | ||||||||||||||||||||||||||||
NAIC Rating: |
1 | 2 | 3 | 4 | 5 | 6 |
Total |
|||||||||||||||||||||
Caa and |
In or Near |
Estimated |
||||||||||||||||||||||||||
Rating Agency Designation: | Aaa/Aa/A | Baa | Ba | B | Lower | Default | Fair Value | |||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
U.S. corporate securities
|
$ | 46,035 | $ | 34,259 | $ | 7,633 | $ | 3,452 | $ | 353 | $ | 40 | $ | 91,772 | ||||||||||||||
Foreign corporate securities
|
39,430 | 24,352 | 2,474 | 1,454 | 169 | 9 | 67,888 | |||||||||||||||||||||
Foreign government securities
|
31,559 | 7,184 | 2,179 | 1,080 | | | 42,002 | |||||||||||||||||||||
RMBS (1)
|
38,984 | 1,109 | 2,271 | 1,993 | 331 | 45 | 44,733 | |||||||||||||||||||||
U.S. Treasury and agency securities
|
33,304 | | | | | | 33,304 | |||||||||||||||||||||
CMBS (1)
|
19,385 | 665 | 363 | 205 | 56 | 1 | 20,675 | |||||||||||||||||||||
ABS (1)
|
13,133 | 435 | 338 | 120 | 226 | 35 | 14,287 | |||||||||||||||||||||
State and political subdivision securities
|
9,368 | 722 | 32 | | 7 | | 10,129 | |||||||||||||||||||||
Other fixed maturity securities
|
| 3 | | 4 | | | 7 | |||||||||||||||||||||
Total fixed maturity securities
|
$ | 231,198 | $ | 68,729 | $ | 15,290 | $ | 8,308 | $ | 1,142 | $ | 130 | $ | 324,797 | ||||||||||||||
Percentage of total
|
71.2 | % | 21.2 | % | 4.7 | % | 2.6 | % | 0.3 | % | | % | 100.0 | % |
| Fixed maturity and equity securities on a sector basis and the related cost or amortized cost, gross unrealized gains and losses, including the noncredit loss component of other-than-temporary impairment (OTTI) loss, and estimated fair value of such securities at September 30, 2011 and December 31, 2010; | |
| Estimated fair value and unrealized gains (losses) on below investment grade or non-rated, non-income producing, fixed maturity securities at September 30, 2011 and December 31, 2010; | |
| Government and agency securities holdings in excess of 10% of the Companys equity; and | |
| U.S. and foreign corporate fixed maturity securities the composition by industry and sector and related concentrations of credit risk at September 30, 2011 and December 31, 2010. |
181
September 30, 2011 | December 31, 2010 | |||||||||||||||
Estimated |
Estimated |
|||||||||||||||
Fair |
% of |
Fair |
% of |
|||||||||||||
Value | Total | Value | Total | |||||||||||||
(In millions) | ||||||||||||||||
RMBS
|
$ | 41,893 | 55.2 | % | $ | 44,733 | 56.1 | % | ||||||||
CMBS
|
19,585 | 25.8 | 20,675 | 26.0 | ||||||||||||
ABS
|
14,418 | 19.0 | 14,287 | 17.9 | ||||||||||||
Total structured securities
|
$ | 75,896 | 100.0 | % | $ | 79,695 | 100.0 | % | ||||||||
Ratings profile:
|
||||||||||||||||
RMBS rated Aaa/AAA
|
$ | 32,452 | 77.5 | % | $ | 36,085 | 80.7 | % | ||||||||
RMBS rated NAIC 1
|
$ | 36,543 | 87.2 | % | $ | 38,984 | 87.1 | % | ||||||||
CMBS rated Aaa/AAA
|
$ | 16,224 | 82.8 | % | $ | 16,901 | 81.7 | % | ||||||||
CMBS rated NAIC 1
|
$ | 18,467 | 94.3 | % | $ | 19,385 | 93.7 | % | ||||||||
ABS rated Aaa/AAA
|
$ | 9,250 | 64.2 | % | $ | 10,411 | 72.9 | % | ||||||||
ABS rated NAIC 1
|
$ | 13,324 | 92.4 | % | $ | 13,133 | 91.9 | % |
| RMBS holdings by security type and risk profile at September 30, 2011 and December 31, 2010; | |
| Alt-A RMBS holdings by vintage year and selected other information at September 30, 2011 and December 31, 2010; | |
| CMBS holdings by rating agency designation and by vintage year, as well as NAIC rating, at September 30, 2011 and December 31, 2010; and | |
| ABS holdings by collateral type and selected other information at September 30, 2011 and December 31, 2010. |
182
| Evaluating available-for-sale securities for other-than-temporary impairment; | |
| Net unrealized investment gains (losses); | |
| Continuous gross unrealized losses and OTTI losses for fixed maturity and equity securities available-for-sale by sector; | |
| Aging of gross unrealized losses and OTTI losses for fixed maturity and equity securities available-for-sale; | |
| Concentration of gross unrealized losses and OTTI losses for fixed maturity and equity securities available-for-sale; and | |
| Evaluating temporarily impaired available-for-sale securities. |
183
September 30, 2011 | ||||||||||||||||
Trading and Other |
Trading |
|||||||||||||||
Securities | Liabilities | |||||||||||||||
(In millions) | ||||||||||||||||
Quoted prices in active markets for identical assets and
liabilities (Level 1)
|
$ | 7,332 | 39 | % | $ | 64 | 96 | % | ||||||||
Significant other observable inputs (Level 2)
|
10,074 | 54 | 3 | 4 | ||||||||||||
Significant unobservable inputs (Level 3)
|
1,292 | 7 | | | ||||||||||||
Total estimated fair value
|
$ | 18,698 | 100 | % | $ | 67 | 100 | % | ||||||||
Three Months |
Nine Months |
|||||||
Ended |
Ended |
|||||||
September 30, 2011 | September 30, 2011 | |||||||
(In millions) | ||||||||
Balance, beginning of period
|
$ | 679 | $ | 822 | ||||
Total realized/unrealized gains (losses) included in earnings
|
(17 | ) | 58 | |||||
Purchases
|
1,026 | 1,033 | ||||||
Sales
|
(297 | ) | (488 | ) | ||||
Transfers into Level 3
|
| 123 | ||||||
Transfers out of Level 3
|
(99 | ) | (256 | ) | ||||
Balance, end of period
|
$ | 1,292 | $ | 1,292 | ||||
184
| The components of net investment gains (losses) for the three months and nine months ended September 30, 2011 and 2010; | |
| Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains (losses) for the three months and nine months ended September 30, 2011 and 2010; | |
| Fixed maturity security OTTI losses recognized in earnings by sector and industry within the U.S. and foreign corporate securities sector for the three months and nine months ended September 30, 2011 and 2010; and | |
| Equity security OTTI losses recognized in earnings by sector and industry for the three months and nine months ended September 30, 2011 and 2010. |
185
| Securities on loan, aging of cash collateral liability, security collateral on deposit from counterparties and the estimated fair value of the reinvestment portfolio at September 30, 2011 and December 31, 2010; and | |
| Estimated fair value of the securities on loan related to the cash collateral on open at September 30, 2011 and portion consisting of U.S. Treasury and agency securities at September 30, 2011 and composition of the remaining securities on loan and the composition of the reinvestment portfolio at September 30, 2011. |
| A table of the invested assets on deposit, invested assets held in trust and invested assets pledged as collateral at September 30, 2011 and December 31, 2010; | |
| The amount of the Companys cash received from and due back to counterparties pursuant to its securities lending program; and | |
| Assets of certain CSEs that can only be used to settle liabilities of such entities. |
186
September 30, 2011 | December 31, 2010 | |||||||||||||||
% of |
% of |
|||||||||||||||
Amount | Total | Amount | Total | |||||||||||||
(In millions) | ||||||||||||||||
Region:
|
||||||||||||||||
South Atlantic
|
$ | 8,626 | 21.5 | % | $ | 8,016 | 21.2 | % | ||||||||
Pacific
|
8,556 | 21.3 | 8,974 | 23.7 | ||||||||||||
Middle Atlantic
|
7,917 | 19.8 | 6,484 | 17.1 | ||||||||||||
International
|
4,650 | 11.6 | 4,214 | 11.1 | ||||||||||||
West South Central
|
3,257 | 8.1 | 3,266 | 8.6 | ||||||||||||
East North Central
|
3,253 | 8.1 | 3,066 | 8.1 | ||||||||||||
New England
|
1,723 | 4.3 | 1,531 | 4.1 | ||||||||||||
Mountain
|
896 | 2.2 | 884 | 2.3 | ||||||||||||
West North Central
|
534 | 1.3 | 666 | 1.8 | ||||||||||||
East South Central
|
453 | 1.1 | 461 | 1.2 | ||||||||||||
Other
|
255 | 0.7 | 256 | 0.8 | ||||||||||||
Total recorded investment
|
40,120 | 100.0 | % | 37,818 | 100.0 | % | ||||||||||
Less: valuation allowances
|
428 | 562 | ||||||||||||||
Carrying value, net of valuation allowances
|
$ | 39,692 | $ | 37,256 | ||||||||||||
Property Type:
|
||||||||||||||||
Office
|
$ | 19,290 | 48.1 | % | $ | 16,857 | 44.6 | % | ||||||||
Retail
|
8,564 | 21.3 | 9,215 | 24.3 | ||||||||||||
Apartments
|
4,166 | 10.4 | 3,630 | 9.6 | ||||||||||||
Industrial
|
3,138 | 7.8 | 2,910 | 7.7 | ||||||||||||
Hotels
|
2,982 | 7.4 | 3,089 | 8.2 | ||||||||||||
Other
|
1,980 | 5.0 | 2,117 | 5.6 | ||||||||||||
Total recorded investment
|
40,120 | 100.0 | % | 37,818 | 100.0 | % | ||||||||||
Less: valuation allowances
|
428 | 562 | ||||||||||||||
Carrying value, net of valuation allowances
|
$ | 39,692 | $ | 37,256 | ||||||||||||
187
September 30, 2011 | December 31, 2010 | |||||||||||||||||||||||||||||||
% of |
% of |
|||||||||||||||||||||||||||||||
Recorded |
% of |
Valuation |
Recorded |
Recorded |
% of |
Valuation |
Recorded |
|||||||||||||||||||||||||
Investment | Total | Allowance | Investment | Investment | Total | Allowance | Investment | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||||||||||
Performing
|
$ | 39,680 | 98.9 | % | $ | 358 | 0.9 | % | $ | 37,487 | 99.1 | % | $ | 528 | 1.4 | % | ||||||||||||||||
Restructured (1)
|
242 | 0.6 | 46 | 19.0 | % | 93 | 0.2 | 6 | 6.5 | % | ||||||||||||||||||||||
Potentially delinquent
|
43 | 0.1 | 18 | 41.9 | % | 180 | 0.5 | 28 | 15.6 | % | ||||||||||||||||||||||
Delinquent or under foreclosure
|
155 | 0.4 | 6 | 3.9 | % | 58 | 0.2 | | | % | ||||||||||||||||||||||
Total
|
$ | 40,120 | 100.0 | % | $ | 428 | 1.1 | % | $ | 37,818 | 100.0 | % | $ | 562 | 1.5 | % | ||||||||||||||||
Agricultural (2):
|
||||||||||||||||||||||||||||||||
Performing
|
$ | 12,750 | 98.3 | % | $ | 41 | 0.3 | % | $ | 12,486 | 97.9 | % | $ | 35 | 0.3 | % | ||||||||||||||||
Restructured (3)
|
68 | 0.5 | 8 | 11.8 | % | 33 | 0.3 | 8 | 24.2 | % | ||||||||||||||||||||||
Potentially delinquent
|
11 | 0.1 | 4 | 36.4 | % | 62 | 0.5 | 11 | 17.7 | % | ||||||||||||||||||||||
Delinquent or under foreclosure (3)
|
138 | 1.1 | 29 | 21.0 | % | 170 | 1.3 | 34 | 20.0 | % | ||||||||||||||||||||||
Total
|
$ | 12,967 | 100.0 | % | $ | 82 | 0.6 | % | $ | 12,751 | 100.0 | % | $ | 88 | 0.7 | % | ||||||||||||||||
Residential (4):
|
||||||||||||||||||||||||||||||||
Performing
|
$ | 3,377 | 98.6 | % | $ | 18 | 0.5 | % | $ | 2,145 | 96.1 | % | $ | 12 | 0.6 | % | ||||||||||||||||
Restructured (5)
|
3 | 0.1 | | | % | 4 | 0.2 | | | % | ||||||||||||||||||||||
Potentially delinquent
|
10 | 0.3 | | | % | 4 | 0.2 | | | % | ||||||||||||||||||||||
Delinquent or under foreclosure (5)
|
34 | 1.0 | 1 | 5.9 | % | 78 | 3.5 | 2 | 2.6 | % | ||||||||||||||||||||||
Total
|
$ | 3,424 | 100.0 | % | $ | 19 | 0.6 | % | $ | 2,231 | 100.0 | % | $ | 14 | 0.6 | % | ||||||||||||||||
(1) | As of September 30, 2011 and December 31, 2010, restructured commercial mortgage loans were comprised of ten and five restructured loans, respectively, all of which were performing. | |
(2) | Of the $13.0 billion of agricultural mortgage loans outstanding at September 30, 2011, 50% were subject to rate resets prior to maturity. A substantial portion of these mortgage loans have been successfully reset, refinanced or extended at market terms. | |
(3) | As of September 30, 2011 and December 31, 2010, restructured agricultural mortgage loans were comprised of fourteen and five restructured loans, respectively, all of which were performing. Additionally, as of December 31, 2010, delinquent or under foreclosure agricultural mortgage loans included two restructured loans with a recorded investment of $29 million, which were not performing. | |
(4) | Residential mortgage loans held-for-investment consist primarily of first lien residential mortgage loans, and to a much lesser extent, second lien residential mortgage loans and home equity lines of credit. | |
(5) | As of September 30, 2011 and December 31, 2010, restructured residential mortgage loans were comprised of eight and twelve restructured loans, respectively, all of which were performing. Additionally, as of September 30, 2011, potentially delinquent restructured mortgage loans included five restructured loans. |
188
189
September 30, 2011 | December 31, 2010 | |||||||||||||||
Carrying |
% of |
Carrying |
% of |
|||||||||||||
Value | Total | Value | Total | |||||||||||||
(In millions) | ||||||||||||||||
Traditional
|
$ | 5,690 | 69.4 | % | $ | 5,030 | 62.6 | % | ||||||||
Real estate joint ventures and funds
|
2,327 | 28.4 | 2,707 | 33.7 | ||||||||||||
Real estate and real estate joint ventures
|
8,017 | 97.8 | 7,737 | 96.3 | ||||||||||||
Foreclosed (commercial, agricultural and residential)
|
173 | 2.1 | 152 | 1.9 | ||||||||||||
Real estate
held-for-investment
|
8,190 | 99.9 | 7,889 | 98.2 | ||||||||||||
Real estate
held-for-sale
|
7 | 0.1 | 141 | 1.8 | ||||||||||||
Total real estate and real estate joint ventures
|
$ | 8,197 | 100.0 | % | $ | 8,030 | 100.0 | % | ||||||||
190
September 30, 2011 | December 31, 2010 | |||||||||||||||
Carrying |
% of |
Carrying |
% of |
|||||||||||||
Value | Total | Value | Total | |||||||||||||
(In millions) | ||||||||||||||||
Freestanding derivatives with positive estimated fair values
|
$ | 16,284 | 70.4 | % | $ | 7,777 | 50.4 | % | ||||||||
Leveraged leases, net of non-recourse debt
|
2,240 | 9.7 | 2,191 | 14.2 | ||||||||||||
Tax credit partnerships
|
1,045 | 4.5 | 976 | 6.3 | ||||||||||||
MSRs
|
686 | 3.0 | 950 | 6.2 | ||||||||||||
Funds withheld
|
562 | 2.4 | 551 | 3.6 | ||||||||||||
Joint venture investments
|
201 | 0.9 | 694 | 4.5 | ||||||||||||
Other
|
2,120 | 9.1 | 2,291 | 14.8 | ||||||||||||
Total
|
$ | 23,138 | 100.0 | % | $ | 15,430 | 100.0 | % | ||||||||
191
| A comprehensive description of the nature of the Companys derivative instruments, including the strategies for which derivatives are used in managing various risks. | |
| Information about the notional amount, estimated fair value, and primary underlying risk exposure of the Companys derivative financial instruments, excluding embedded derivatives held at September 30, 2011 and December 31, 2010. |
| The notional amount and estimated fair value of derivatives and non-derivative instruments designated as hedging instruments by type of hedge designation at September 30, 2011 and December 31, 2010. | |
| The notional amount and estimated fair value of derivatives that were not designated or do not qualify as hedging instruments by derivative type at September 30, 2011 and December 31, 2010. | |
| The statement of operations effects of derivatives in cash flow, fair value, or non-qualifying hedge relationships for the three months and nine months ended September 30, 2011 and 2010. |
September 30, 2011 | ||||||||||||||||
Derivative |
Derivative |
|||||||||||||||
Assets | Liabilities | |||||||||||||||
(In millions) | ||||||||||||||||
Quoted prices in active markets for identical assets and
liabilities (Level 1)
|
$ | 196 | 1 | % | $ | 129 | 3 | % | ||||||||
Significant other observable inputs (Level 2)
|
14,767 | 91 | 3,694 | 93 | ||||||||||||
Significant unobservable inputs (Level 3)
|
1,321 | 8 | 136 | 4 | ||||||||||||
Total estimated fair value
|
$ | 16,284 | 100 | % | $ | 3,959 | 100 | % | ||||||||
192
Three Months |
Nine Months |
|||||||
Ended |
Ended |
|||||||
September 30, 2011 | September 30, 2011 | |||||||
(In millions) | ||||||||
Balance, beginning of period
|
$ | 79 | $ | 173 | ||||
Total realized/unrealized gains (losses) included in:
|
||||||||
Earnings
|
692 | 594 | ||||||
Other comprehensive income (loss)
|
333 | 338 | ||||||
Purchases, sales, issuances and settlements
|
80 | 182 | ||||||
Transfer into and/or out of Level 3
|
1 | (102 | ) | |||||
Balance, end of period
|
$ | 1,185 | $ | 1,185 | ||||
September 30, 2011 | ||||||||||||||||
Net Embedded Derivatives Within | ||||||||||||||||
Asset Host |
Liability Host |
|||||||||||||||
Contracts | Contracts | |||||||||||||||
(In millions) | ||||||||||||||||
Quoted prices in active markets for identical assets and
liabilities (Level 1)
|
$ | | | % | $ | | | % | ||||||||
Significant other observable inputs (Level 2)
|
2 | 1 | 19 | 1 | ||||||||||||
Significant unobservable inputs (Level 3)
|
354 | 99 | 4,862 | 99 | ||||||||||||
Total estimated fair value
|
$ | 356 | 100 | % | $ | 4,881 | 100 | % | ||||||||
Three Months |
Nine Months |
|||||||
Ended |
Ended |
|||||||
September 30, 2011 | September 30, 2011 | |||||||
(In millions) | ||||||||
Balance, beginning of period
|
$ | (2,074 | ) | $ | (2,438 | ) | ||
Total realized/unrealized gains (losses) included in:
|
||||||||
Earnings
|
(2,199 | ) | (1,615 | ) | ||||
Other comprehensive income (loss)
|
(114 | ) | (116 | ) | ||||
Purchases, sales, issuances and settlements
|
(121 | ) | (339 | ) | ||||
Transfer into and/or out of Level 3
|
| | ||||||
Balance, end of period
|
$ | (4,508 | ) | $ | (4,508 | ) | ||
193
| Commitments to Fund Partnership Investments; | |
| Mortgage Loan Commitments; | |
| Commitments to Fund Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments; and | |
| Guarantees. |
194
195
196
Nine Months |
||||||||
Ended |
||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
(In millions) | ||||||||
Sources:
|
||||||||
Net cash provided by operating activities
|
$ | 9,040 | $ | 5,193 | ||||
Net cash provided by changes in policyholder account balances
|
2,910 | 3,583 | ||||||
Net cash provided by changes in payables for collateral under
securities loaned and other transactions
|
7,661 | 7,695 | ||||||
Net cash provided by changes in bank deposits
|
296 | | ||||||
Net cash provided by short-term debt issuances
|
145 | 1,145 | ||||||
Long-term debt issued
|
1,346 | 4,590 | ||||||
Cash received in connection with collateral financing
arrangements
|
100 | | ||||||
Common stock issued, net of issuance costs
|
2,950 | 3,529 | ||||||
Stock options exercised
|
77 | 32 | ||||||
Cash provided by the effect of change in foreign currency
exchange rates
|
133 | | ||||||
Total sources
|
24,658 | 25,767 | ||||||
Uses:
|
||||||||
Net cash used in investing activities
|
23,349 | 19,369 | ||||||
Net cash used for changes in bank deposits
|
| 959 | ||||||
Long-term debt repaid
|
1,192 | 689 | ||||||
Debt issuance costs
|
1 | 14 | ||||||
Redemption of convertible preferred stock
|
2,805 | | ||||||
Preferred stock redemption premium
|
146 | | ||||||
Dividends on preferred stock
|
91 | 91 | ||||||
Net cash used in other, net
|
68 | 192 | ||||||
Cash used in the effect of change in foreign currency exchange
rates
|
| 8 | ||||||
Total uses
|
27,652 | 21,322 | ||||||
Net increase (decrease) in cash and cash equivalents
|
$ | (2,994 | ) | $ | 4,445 | |||
197
| The Holding Company and MetLife Funding, Inc. (MetLife Funding) each have commercial paper programs supported by $4.0 billion in general corporate credit facilities. MetLife Funding, a subsidiary of Metropolitan Life Insurance Company (MLIC), serves as a centralized finance unit for the Company. 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 the Holding Company, MLIC and other affiliates in order to enhance the financial flexibility and liquidity of these companies. Outstanding balances for the commercial paper program fluctuate in line with changes to affiliates financing arrangements. Pursuant to a support agreement, MLIC has agreed to cause MetLife Funding to have a tangible net worth of at least one dollar. At both September 30, 2011 and December 31, 2010, MetLife Funding had a tangible net worth of $12 million. At September 30, 2011 and December 31, 2010, MetLife Funding had total outstanding liabilities for its commercial paper program, including accrued interest payable, of $101 million and $102 million, respectively. | |
| MetLife Bank is a depository institution that is approved to use the Federal Reserve Bank of New York Discount Window borrowing privileges. To utilize these privileges, MetLife Bank has pledged qualifying loans and investment securities to the Federal Reserve Bank of New York as collateral. At both September 30, 2011 and December 31, 2010, MetLife Bank had no liability for advances from the Federal Reserve Bank of New York under this facility. | |
| MetLife Bank has a cash need to fund residential mortgage loans that it originates and generally holds for a relatively short period before selling them to one of the government-sponsored enterprises such as FNMA or FHLMC. The outstanding volume of residential mortgage originations varies from month to month and is cyclical within a month. To meet the variable funding requirements from this mortgage activity, as well as to increase overall liquidity from time to time, MetLife Bank takes advantage of short-term collateralized borrowing opportunities with the Federal Home Loan Bank of New York (FHLB of NY). MetLife Bank has entered into advances agreements with the FHLB of NY whereby MetLife Bank has received cash advances and under which the FHLB of NY has been granted a blanket lien on certain of MetLife Banks residential mortgage loans, mortgage loans held-for-sale, commercial mortgage loans and mortgage-backed securities to collateralize MetLife Banks repayment obligations. Upon any event of default by MetLife Bank, the FHLB of NYs recovery is limited to the amount of MetLife Banks liability under the advances agreements. MetLife Bank has received advances from the FHLB of NY on both short-term and long-term bases, with a total liability of $4.6 billion and $3.8 billion at September 30, 2011 and December 31, 2010, respectively. | |
| The Company also had obligations under funding agreements with the FHLB of NY of $11.8 billion and $12.6 billion at September 30, 2011 and December 31, 2010, respectively, for MLIC, and with the Federal Home Loan Bank of Boston (FHLB of Boston) of $450 million and $100 million at September 30, 2011 and December 31, 2010, respectively, for MetLife Insurance Company of Connecticut (MICC). See Note 8 of the Notes to the Consolidated Financial Statements included in the 2010 Annual Report. In September 2010, MetLife Investors Insurance Company (MLIIC) and General American Life Insurance Company (GALIC), subsidiaries of MetLife, Inc., each became a member of the Federal Home Loan Bank of Des Moines (FHLB of Des Moines), and each purchased $10 million of FHLB of Des Moines |
198
common stock. Membership in the FHLB of Des Moines provides an additional source of contingent liquidity for the Company. The Company had obligations under funding agreements with the FHLB of Des Moines of $220 million for MLIIC and $475 million for GALIC at September 30, 2011. There were no funding agreements with the FHLB of Des Moines at December 31, 2010. |
| The Company issues 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. At September 30, 2011 and December 31, 2010, funding agreements outstanding, which are included in PABs, were $24.9 billion and $27.2 billion, respectively. See Note 8 of the Notes to the Consolidated Financial Statements included in the 2010 Annual Report. | |
| MLIC and MICC have each issued funding agreements to the Federal Agricultural Mortgage Corporation (Farmer Mac) and 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, a federally chartered instrumentality of the U.S. The obligations under all such funding agreements are secured by a pledge of certain eligible agricultural real estate mortgage loans and may, under certain circumstances, be secured by other qualified collateral. The amount of the Companys liability for funding agreements issued was $2.8 billion at both September 30, 2011 and December 31, 2010, which is included in PABs. The obligations under these funding agreements are collateralized by designated agricultural real estate mortgage loans with carrying values of $3.2 billion at both September 30, 2011 and December 31, 2010. See Note 8 of the Notes to the Consolidated Financial Statements included in the 2010 Annual Report. |
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Short-term debt
|
$ | 451 | $ | 306 | ||||
Long-term debt (1)
|
$ | 21,596 | $ | 20,766 | ||||
Collateral financing arrangements
|
$ | 5,297 | $ | 5,297 | ||||
Junior subordinated debt securities
|
$ | 3,192 | $ | 3,191 |
(1) | Excludes $3,157 million and $6,820 million at September 30, 2011 and December 31, 2010, respectively, of long-term debt relating to CSEs. See Note 3 of the Notes to the Interim Condensed Consolidated Financial Statements. |
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200
Dividend | ||||||||||||||||||||
Series A |
Series A |
Series B |
Series B |
|||||||||||||||||
Declaration Date | Record Date | Payment Date | Per Share | Aggregate | Per Share | Aggregate | ||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||
August 15, 2011
|
August 31, 2011 | September 15, 2011 | $ | 0.2555555 | $ | 6 | $ | 0.4062500 | $ | 24 | ||||||||||
May 16, 2011
|
May 31, 2011 | June 15, 2011 | $ | 0.2555555 | 7 | $ | 0.4062500 | 24 | ||||||||||||
March 7, 2011
|
February 28, 2011 | March 15, 2011 | $ | 0.2500000 | 6 | $ | 0.4062500 | 24 | ||||||||||||
$ | 19 | $ | 72 | |||||||||||||||||
201
202
2011 | ||||
Permitted w/o |
||||
Company | Approval (1) | |||
(In millions) | ||||
Metropolitan Life Insurance Company
|
$ | 1,321 | ||
American Life Insurance Company
|
$ | 661 | ||
MetLife Insurance Company of Connecticut
|
$ | 517 | ||
Metropolitan Property and Casualty Insurance Company
|
$ | | ||
Metropolitan Tower Life Insurance Company
|
$ | 80 |
(1) | Reflects dividend amounts that may be paid during 2011 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 2011, some or all of such dividends may require regulatory approval. On April 29, 2011, MLIC paid as a dividend $183 million of such available amount to the Holding Company. |
203
No other available amounts were paid by the above subsidiaries to the Holding Company during the nine months ended September 30, 2011. |
September 30, 2011 | December 31, 2010 | |||||||
(In millions) | ||||||||
Long-term debt unaffiliated
|
$ | 16,419 | $ | 16,258 | ||||
Long-term debt affiliated (1)
|
$ | 500 | $ | 665 | ||||
Collateral financing arrangements
|
$ | 2,797 | $ | 2,797 | ||||
Junior subordinated debt securities
|
$ | 1,748 | $ | 1,748 |
204
(1) | Includes $165 million of affiliated senior notes associated with bonds held by ALICO at December 31, 2010. Such bonds were sold to a third party in the second quarter of 2011. |
Subsidiaries | Interest Rate | Maturity Date | September 30, 2011 | December 31, 2010 | ||||||||
(In millions) | ||||||||||||
Metropolitan Life Insurance Company (1)
|
6-month LIBOR + 1.80% | December 31, 2011 | $ | | $ | 775 | ||||||
American Life Insurance Company (2)
|
6-month LIBOR + 1.06% | September 26, 2013 | 100 | | ||||||||
Metropolitan Life Insurance Company
|
7.13% | December 15, 2032 | 400 | 400 | ||||||||
Metropolitan Life Insurance Company
|
7.13% | January 15, 2033 | 100 | 100 | ||||||||
Total
|
$ | 600 | $ | 1,275 | ||||||||
(1) | In April 2011, MLIC repaid in cash the $775 million surplus note issued to the Holding Company in December 2009. The early redemption was approved by the New York Superintendent of Insurance. | |
(2) | On September 26, 2011, American Life issued a note to the Holding Company for $100 million maturing no later than September 26, 2013 with an interest rate of 6-month LIBOR + 1.06% in exchange for cash. |
205
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
206
| implementing a corporate risk framework, which outlines the Companys approach for managing risk on an enterprise-wide basis; | |
| developing policies and procedures for managing, measuring, monitoring and controlling those risks identified in the corporate risk framework; | |
| establishing appropriate corporate risk tolerance levels; | |
| deploying capital on an economic capital basis; and | |
| reporting on a periodic basis to the Finance and Risk Committee of the Companys Board of Directors; with respect to credit risk, reporting to the Investment Committee of the Companys Board of Directors; and reporting on various aspects of risk to financial and non-financial senior management committees. |
207
208
| The Companys Treasury Department is responsible for managing the exposure to investments in foreign subsidiaries. Limits to exposures are established and monitored by the Treasury Department and managed by the Investment Department. | |
| The Investment Department is responsible for managing the exposure to foreign currency investments. Exposure limits to unhedged foreign currency investments are incorporated into the standing authorizations granted to management by the Board of Directors and are reported to the Board of Directors on a periodic basis. | |
| The lines of business are responsible for establishing limits and managing any foreign exchange rate exposure caused by the sale or issuance of insurance products. |
| Risks Related to Living Guarantee Benefits The Company uses a wide range of derivative contracts to hedge the risk associated with variable annuity living guarantee benefits. These hedges include equity and interest rate futures, interest rate swaps, currency futures/forwards, equity indexed options and interest rate option contracts and equity variance swaps. | |
| Minimum Interest Rate Guarantees For certain Company liability contracts, the Company provides the contractholder a guaranteed minimum interest rate. These contracts include certain fixed annuities and other insurance liabilities. The Company purchases interest rate floors to reduce risk associated with these liability guarantees. | |
| Reinvestment Risk in Long Duration Liability Contracts Derivatives are used to hedge interest rate risk related to certain long duration liability contracts, such as deferred annuities. Hedges include zero coupon interest rate swaps and swaptions. | |
| Foreign Currency Risk The Company uses currency swaps and forwards to hedge foreign currency risk. These hedges primarily swap foreign currency denominated bonds, investments in foreign subsidiaries or equity exposures to U.S. dollars. | |
| General ALM Hedging Strategies In the ordinary course of managing the Companys asset/liability risks, the Company uses interest rate futures, interest rate swaps, interest rate caps, interest rate floors and inflation swaps. These hedges are designed to reduce interest rate risk or inflation risk related to the existing assets or liabilities or related to expected future cash flows. |
209
| the net present values of its interest rate sensitive exposures resulting from a 10% change (increase or decrease) in interest rates; | |
| the U.S. dollar equivalent estimated fair values of the Companys foreign currency exposures due to a 10% change (increase or decrease) in foreign currency exchange rates; and | |
| the estimated fair value of its equity positions due to a 10% change (increase or decrease) in equity market prices. |
| the market risk information is limited by the assumptions and parameters established in creating the related sensitivity analysis, including the impact of prepayment rates on mortgages; | |
| for the derivatives that qualify as hedges, the impact on reported earnings may be materially different from the change in market values; | |
| the analysis excludes other significant real estate holdings and liabilities pursuant to insurance contracts; and | |
| the model assumes that the composition of assets and liabilities remains unchanged throughout the period. |
September 30, 2011 | ||||
(In millions) | ||||
Non-trading:
|
||||
Interest rate risk
|
$ | 3,427 | ||
Foreign currency exchange rate risk
|
$ | 4,446 | ||
Equity market risk
|
$ | (45 | ) | |
Trading:
|
||||
Interest rate risk
|
$ | 3 | ||
Foreign currency exchange rate risk
|
$ | 449 |
210
September 30, 2011 | ||||||||||||
Assuming a |
||||||||||||
Estimated |
10% Increase |
|||||||||||
Notional |
Fair |
in the Yield |
||||||||||
Amount | Value (3) | Curve | ||||||||||
(In millions) | ||||||||||||
Assets:
|
||||||||||||
Fixed maturity securities
|
$ | 353,927 | $ | (4,072 | ) | |||||||
Equity securities
|
3,118 | | ||||||||||
Trading and other securities
|
18,698 | (4 | ) | |||||||||
Mortgage loans:
|
||||||||||||
Held-for-investment
|
61,624 | (226 | ) | |||||||||
Held-for-sale
|
3,740 | (4 | ) | |||||||||
Mortgage loans, net
|
65,364 | (230 | ) | |||||||||
Policy loans
|
13,889 | (119 | ) | |||||||||
Real estate joint ventures (1)
|
603 | | ||||||||||
Other limited partnership interests (1)
|
1,658 | | ||||||||||
Short-term investments
|
15,913 | (1 | ) | |||||||||
Other invested assets:
|
||||||||||||
Mortgage servicing rights
|
686 | 56 | ||||||||||
Other
|
1,453 | | ||||||||||
Cash and cash equivalents
|
10,001 | (1 | ) | |||||||||
Accrued investment income
|
4,793 | | ||||||||||
Premiums, reinsurance and other receivables
|
5,376 | (237 | ) | |||||||||
Other assets
|
482 | (2 | ) | |||||||||
Net embedded derivatives within asset host contracts (2)
|
356 | (18 | ) | |||||||||
Mortgage loan commitments
|
$ | 3,743 | 4 | (2 | ) | |||||||
Commitments to fund bank credit facilities, bridge loans and
private corporate
|
||||||||||||
bond investments
|
$ | 1,855 | 33 | | ||||||||
Total Assets
|
$ | (4,630 | ) | |||||||||
Liabilities:
|
||||||||||||
Policyholder account balances
|
$ | 153,778 | $ | 794 | ||||||||
Payables for collateral under securities loaned and other
transactions
|
34,933 | | ||||||||||
Bank deposits
|
10,754 | 2 | ||||||||||
Short-term debt
|
451 | | ||||||||||
Long-term debt
|
22,991 | 219 | ||||||||||
Collateral financing arrangements
|
4,647 | | ||||||||||
Junior subordinated debt securities
|
3,219 | 98 | ||||||||||
Other liabilities:
|
||||||||||||
Trading liabilities
|
67 | 1 | ||||||||||
Other
|
4,793 | | ||||||||||
Net embedded derivatives within liability host contracts (2)
|
4,881 | 1,556 | ||||||||||
Total Liabilities
|
$ | 2,670 | ||||||||||
Derivative Instruments:
|
||||||||||||
Interest rate swaps
|
$ | 72,828 | $ | 5,625 | $ | (980 | ) | |||||
Interest rate floors
|
$ | 23,866 | 1,066 | (90 | ) | |||||||
Interest rate caps
|
$ | 38,727 | 70 | 20 | ||||||||
Interest rate futures
|
$ | 15,429 | (12 | ) | (74 | ) | ||||||
Interest rate options
|
$ | 18,088 | 1,080 | (241 | ) | |||||||
Interest rate forwards
|
$ | 16,812 | 206 | (46 | ) | |||||||
Synthetic GICs
|
$ | 4,420 | | | ||||||||
Foreign currency swaps
|
$ | 16,823 | 269 | 14 | ||||||||
Foreign currency forwards
|
$ | 10,029 | 307 | 29 | ||||||||
Currency futures
|
$ | 633 | | | ||||||||
Currency options
|
$ | 2,502 | 13 | | ||||||||
Credit default swaps
|
$ | 13,450 | 210 | | ||||||||
Credit forwards
|
$ | 20 | 3 | | ||||||||
Equity futures
|
$ | 6,845 | 144 | | ||||||||
Equity options
|
$ | 17,413 | 3,003 | (94 | ) | |||||||
Variance swaps
|
$ | 19,394 | 310 | (8 | ) | |||||||
Total rate of return swaps
|
$ | 1,612 | 31 | | ||||||||
Total Derivative Instruments
|
$ | (1,470 | ) | |||||||||
Net Change
|
$ | (3,430 | ) | |||||||||
(1) | Represents only those investments accounted for using the cost method. | |
(2) | Embedded derivatives are recognized in the consolidated balance sheet in the same caption as the host contract. |
211
(3) | Separate account assets and liabilities which are interest rate sensitive are not included herein as any interest rate risk is borne by the holder of the separate account. |
September 30, 2011 | ||||||||||||
Assuming a |
||||||||||||
Estimated |
10% Increase |
|||||||||||
Notional |
Fair |
in the Foreign |
||||||||||
Amount | Value (1) | Exchange Rate | ||||||||||
(In millions) | ||||||||||||
Assets:
|
||||||||||||
Fixed maturity securities
|
$ | 353,927 | $ | (7,782 | ) | |||||||
Equity securities
|
3,118 | (150 | ) | |||||||||
Trading and other securities
|
18,698 | (449 | ) | |||||||||
Mortgage loans:
|
||||||||||||
Held-for-investment
|
61,624 | (446 | ) | |||||||||
Held-for-sale
|
3,740 | | ||||||||||
Mortgage loans, net
|
65,364 | (446 | ) | |||||||||
Policy loans
|
13,889 | (200 | ) | |||||||||
Other limited partnership interests
|
1,658 | (13 | ) | |||||||||
Short-term investments
|
15,913 | (204 | ) | |||||||||
Other invested assets:
|
||||||||||||
Mortgage servicing rights
|
686 | | ||||||||||
Other
|
1,453 | (111 | ) | |||||||||
Cash and cash equivalents
|
10,001 | (122 | ) | |||||||||
Accrued investment income
|
4,793 | (14 | ) | |||||||||
Premiums, reinsurance and other receivables
|
5,376 | (160 | ) | |||||||||
Other assets
|
482 | (11 | ) | |||||||||
Total Assets
|
$ | (9,662 | ) | |||||||||
Liabilities:
|
||||||||||||
Policyholder account balances
|
$ | 153,778 | $ | 3,425 | ||||||||
Bank deposits
|
10,754 | | ||||||||||
Long-term debt
|
22,991 | 118 | ||||||||||
Payable for collateral under securities loaned and other
transactions
|
34,933 | 3 | ||||||||||
Other liabilities
|
4,793 | 208 | ||||||||||
Net embedded derivatives within liability host contracts (2)
|
4,881 | 424 | ||||||||||
Total Liabilities
|
$ | 4,178 | ||||||||||
Derivative Instruments:
|
||||||||||||
Interest rate swaps
|
$ | 72,828 | $ | 5,625 | $ | (29 | ) | |||||
Interest rate floors
|
$ | 23,866 | 1,066 | | ||||||||
Interest rate caps
|
$ | 38,727 | 70 | | ||||||||
Interest rate futures
|
$ | 15,429 | (12 | ) | | |||||||
Interest rate options
|
$ | 18,088 | 1,080 | (17 | ) | |||||||
Interest rate forwards
|
$ | 16,812 | 206 | | ||||||||
Synthetic GICs
|
$ | 4,420 | | | ||||||||
Foreign currency swaps
|
$ | 16,823 | 269 | 716 | ||||||||
Foreign currency forwards
|
$ | 10,029 | 307 | 69 | ||||||||
Currency futures
|
$ | 633 | | (56 | ) | |||||||
Currency options
|
$ | 2,502 | 13 | 8 | ||||||||
Credit default swaps
|
$ | 13,450 | 210 | | ||||||||
Credit forwards
|
$ | 20 | 3 | | ||||||||
Equity futures
|
$ | 6,845 | 144 | 5 | ||||||||
Equity options
|
$ | 17,413 | 3,003 | (106 | ) | |||||||
Variance swaps
|
$ | 19,394 | 310 | (1 | ) | |||||||
Total rate of return swaps
|
$ | 1,612 | 31 | | ||||||||
Total Derivative Instruments
|
$ | 589 | ||||||||||
Net Change
|
$ | (4,895 | ) | |||||||||
212
(1) | Estimated fair value presented in the table above represents the estimated fair value of all financial instruments within this financial statement caption, not necessarily those solely subject to foreign exchange risk. | |
(2) | Embedded derivatives are recognized in the consolidated balance sheet in the same caption as the host contract. |
September 30, 2011 | ||||||||||||
Assuming a |
||||||||||||
Estimated |
10% Decrease |
|||||||||||
Notional |
Fair |
in Equity |
||||||||||
Amount | Value (1) | Prices | ||||||||||
(In millions) | ||||||||||||
Assets:
|
||||||||||||
Equity securities
|
$ | 3,118 | $ | (334 | ) | |||||||
Other invested assets:
|
||||||||||||
Net embedded derivatives within asset host contracts (2)
|
356 | 19 | ||||||||||
Total Assets
|
$ | (315 | ) | |||||||||
Liabilities:
|
||||||||||||
Policyholder account balances
|
$ | 153,778 | $ | | ||||||||
Bank deposits
|
10,754 | | ||||||||||
Other liabilities:
|
||||||||||||
Net embedded derivatives within liability host contracts (2)
|
4,881 | (787 | ) | |||||||||
Total Liabilities
|
$ | (787 | ) | |||||||||
Derivative Instruments:
|
||||||||||||
Interest rate swaps
|
$ | 72,828 | $ | 5,625 | $ | | ||||||
Interest rate floors
|
$ | 23,866 | 1,066 | | ||||||||
Interest rate caps
|
$ | 38,727 | 70 | | ||||||||
Interest rate futures
|
$ | 15,429 | (12 | ) | | |||||||
Interest rate options
|
$ | 18,088 | 1,080 | | ||||||||
Interest rate forwards
|
$ | 16,812 | 206 | | ||||||||
Synthetic GICs
|
$ | 4,420 | | | ||||||||
Foreign currency swaps
|
$ | 16,823 | 269 | | ||||||||
Foreign currency forwards
|
$ | 10,029 | 307 | | ||||||||
Currency futures
|
$ | 633 | | | ||||||||
Currency options
|
$ | 2,502 | 13 | | ||||||||
Credit default swaps
|
$ | 13,450 | 210 | | ||||||||
Credit forwards
|
$ | 20 | 3 | | ||||||||
Equity futures
|
$ | 6,845 | 144 | 612 | ||||||||
Equity options
|
$ | 17,413 | 3,003 | 400 | ||||||||
Variance swaps
|
$ | 19,394 | 310 | | ||||||||
Total rate of return swaps
|
$ | 1,612 | 31 | 135 | ||||||||
Total Derivative Instruments
|
$ | 1,147 | ||||||||||
Net Change
|
$ | 45 | ||||||||||
213
(1) | Estimated fair value presented in the table above represents the estimated fair value of all financial instruments within this financial statement caption not necessarily those solely subject to equity price risk. | |
(2) | Embedded derivatives are recognized in the consolidated balance sheet in the same caption as the host contract. |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
214
215
216
Item 1A. | Risk Factors |
217
218
219
| licensing companies and agents to transact business; | |
| calculating the value of assets to determine compliance with statutory requirements; | |
| mandating certain insurance benefits; | |
| regulating certain premium rates; | |
| reviewing and approving policy forms; | |
| regulating unfair trade and claims practices, including through the imposition of restrictions on marketing and sales practices, distribution arrangements and payment of inducements; | |
| regulating advertising; | |
| protecting privacy; | |
| establishing statutory capital and reserve requirements and solvency standards; | |
| fixing maximum interest rates on insurance policy loans and minimum rates for guaranteed crediting rates on life insurance policies and annuity contracts; | |
| approving changes in control of insurance companies; | |
| restricting the payment of dividends and other transactions between affiliates; and | |
| regulating the types, amounts and valuation of investments. |
220
| chartering to carry on business as a bank; | |
| the permissibility of certain activities; | |
| maintaining minimum capital ratios; | |
| capital management in relation to the banks assets; | |
| dividend payments and repurchases of securities, including common stock; | |
| safety and soundness standards; | |
| loan loss and other related liabilities; | |
| liquidity; | |
| financial reporting and disclosure standards; | |
| counterparty credit concentration; | |
| restrictions on related party and affiliate transactions; | |
| lending limits (and, in addition, Dodd-Frank includes the credit exposures arising from securities lending by MetLife Bank within lending limits otherwise applicable to loans); | |
| payment of interest; | |
| unfair or deceptive acts or practices; | |
| mortgage servicing practices; | |
| privacy; and | |
| relationships with MetLife, Inc. in its capacity as a bank holding company and potentially with other investors in connection with a change in control of MetLife Bank. |
221
222
223
| As a large, interconnected bank holding company with assets of $50 billion or more, or possibly as an otherwise systemically important financial institution, MetLife, Inc. will be subject to enhanced prudential standards imposed on such companies. Enhanced standards could be applied to RBC, liquidity, leverage (unless another, similar, standard is appropriate), resolution plan and credit exposure reporting, concentration limits, and risk management. Off-balance sheet activities are required to be accounted for in meeting capital requirements. In addition, if it were determined that MetLife, Inc. posed a substantial threat to U.S. financial stability, the applicable federal regulators would have the right to require it to take one or more other mitigating actions to reduce that risk, including limiting its ability to merge with or acquire another company, terminating activities, restricting its ability to offer financial products or requiring it to sell assets or off-balance sheet items to unaffiliated entities. Enhanced standards would also permit, but not require, regulators to establish requirements with respect to contingent capital, enhanced public disclosures and short-term debt limits. These standards are described as being more stringent than those otherwise imposed on bank holding companies; however, the Federal Reserve Board is permitted to apply them on an institution-by-institution basis, depending on its determination of the institutions riskiness. In addition, under Dodd-Frank, all bank holding companies that have elected to be treated as financial holding companies, such as MetLife, Inc. will be required to be well capitalized and well managed as defined by the Federal Reserve Board, on a consolidated basis and not just at their depository institution(s), a higher standard than was applicable to financial holding companies before Dodd-Frank. | |
| MetLife, Inc., as a bank holding company, will have to meet minimum leverage ratio and RBC requirements on a consolidated basis to be established by the Federal Reserve Board that are not less than those applicable to insured depository institutions under so-called prompt corrective action regulations as in effect on the date of the enactment of Dodd-Frank. One consequence of these new rules will ultimately be the inability of bank holding companies to include trust-preferred securities as part of their Tier 1 capital. Because of the phase-in period for these new rules, they should have little practical effect on MetLifes ability to treat its currently outstanding trust-preferred securities as part of its Tier 1 capital, but they do prevent MetLife, Inc. from treating the common equity units issued originally as part of the consideration for the Acquisition (and since re-sold to the public) as Tier I capital, since the new rules apply immediately to instruments issued after May 19, 2010. | |
| Under the provisions of Dodd-Frank relating to the resolution or liquidation of certain types of financial institutions, including bank holding companies, if MetLife, Inc. were to become insolvent or were in danger of defaulting on its obligations, it could be compelled to undergo liquidation with the FDIC as receiver. For this new regime to be applicable, a number of determinations would have to be made, including that a default by the affected company would have serious adverse effects on financial stability in the U.S. If the FDIC were to be appointed as the receiver for such a company, the liquidation of that company would occur under the provisions of the new liquidation authority, and not under the Bankruptcy Code. In such a liquidation, the holders of such companys debt could in certain respects be treated differently than under the Bankruptcy Code. In particular, unsecured creditors and shareholders are intended to bear the losses of the company being liquidated. As required by Dodd-Frank, the FDIC has established rules relating to the priority of creditors claims and the potentially dissimilar treatment of similarly situated creditors. These provisions could apply to some financial institutions whose outstanding debt securities we hold in our investment portfolios. Dodd-Frank also provides for the assessment of bank holding companies with assets of $50 billion or more, non-bank financial companies supervised by the Federal Reserve, and other financial companies with assets of $50 billion or more to cover the costs of liquidating any financial company subject to the new liquidation authority. In addition, regulations have been proposed by the FDIC |
224
and the Federal Reserve Board regarding the advance preparation of resolution plans by companies potentially subject to the FDICs liquidation authority. Although it is not possible to assess the full impact of the liquidation authority at this time, it could affect the funding costs of large bank holding companies or financial companies that might be viewed as systemically significant. It could also lead to an increase in secured financings. |
| Dodd-Frank also includes a new framework of regulation of the over-the-counter (OTC) derivatives markets which will require clearing of certain types of transactions currently traded OTC and could potentially impose additional costs, including new capital, reporting and margin requirements and additional regulation on the Company. Increased margin requirements on MetLife, Inc.s part, combined with restrictions on securities that will qualify as eligible collateral, could reduce its liquidity and require an increase in its holdings of cash and government securities with lower yields causing a reduction in income. MetLife, Inc. uses derivatives to mitigate a wide range of risks in connection with its businesses, including the impact of increased benefit exposures from our annuity products that offer guaranteed benefits. The derivative clearing requirements of Dodd-Frank could increase the cost of our risk mitigation and expose us to the risk of a default by a clearinghouse with respect to MetLife, Inc.s cleared derivative transactions. In addition, we have always been subject to the risk that hedging and other management procedures might prove ineffective in reducing the risks to which insurance policies expose us or that unanticipated policyholder behavior or mortality, combined with adverse market events, produces economic losses beyond the scope of the risk management techniques employed. Any such losses could be increased by higher costs of writing derivatives (including customized derivatives) that might result from the enactment of Dodd-Frank. | |
| Dodd-Frank restricts the ability of insured depository institutions and of companies, such as MetLife, Inc., that control an insured depository institution, and their affiliates, to engage in proprietary trading and to sponsor or invest in funds (hedge funds and private equity funds) that rely on certain exemptions from the Investment Company Act. Dodd-Frank provides an exemption for investment activity by a regulated insurance company or its affiliate solely for the general account of such insurance company if such activity is in compliance with the insurance company investment laws of the state or jurisdiction in which such company is domiciled and the appropriate Federal regulators after consultation with relevant insurance commissioners have not jointly determined such laws to be insufficient to protect the safety and soundness of the institution or the financial stability of the U.S. Other exemptions, including, but not limited to, activities for risk-mitigating hedging and activities on behalf of customers, may be available for the general account or separate account activities of insurance companies. Notwithstanding the foregoing, the appropriate Federal regulatory authorities are permitted under the legislation to impose, as part of rulemaking, additional capital requirements and other restrictions on any exempted activity. Dodd-Frank provides for a period of rule-making during which the effects of the statutory language may be clarified. Among other things, one task of the rule-making is to appropriately accommodate the business of insurance within an insurance company subject to regulation in accordance with relevant insurance company investments laws. Until the rule-making is complete, including the scope of the statutory exemptions to be applied to insurance companies for each of the prohibitions on proprietary trading and fund sponsoring or investing, it is unclear whether MetLife, Inc. may have to alter any of its future activities to comply, including continuing to invest in private investment funds for its general accounts or to issue certain insurance products backed by its separate accounts. | |
| Until the various final regulations are promulgated pursuant to Dodd-Frank, and perhaps for some time thereafter, the full impact of Dodd-Frank on the investments and investment activities, banking activities and insurance and annuity products of MetLife, Inc. and its subsidiaries will remain unclear. For example, besides directly limiting our future investment activities, Dodd-Frank could potentially negatively impact the market for, the returns from, or liquidity in, primary and secondary investments in private equity funds and hedge funds that are related to (either through a fund sponsorship or investor relationship) a company affiliated with an insured depository institution. The number of sponsors of such funds going forward may diminish, which may impact our available fund investment opportunities. Although Dodd-Frank provides for various transition periods for coming into compliance, fund sponsors that are subject to Dodd-Frank, and |
225
in whose funds we have invested, may have to divest their funds business or reduce their ownership stakes in their funds, thereby potentially impacting our related investments in such funds. In addition, should such funds be required or choose to liquidate or sell their underlying assets, the market value and liquidity of such assets or the broader related asset classes could negatively be affected, including securities and real estate assets that MetLife, Inc. and its subsidiaries hold or may plan to sell. Secondary sales of fund interests at significant discounts by banking institutions and their affiliates, which are not fund sponsors but nevertheless are subject to the divestment requirements of Dodd-Frank, could reduce the returns realized by investors such as MetLife, Inc. and its subsidiaries seeking to access liquidity by selling their fund interests. In addition, our existing derivatives counterparties and the financial institutions subject to Dodd-Frank in which we have invested also could be negatively impacted by Dodd-Frank. See also Risk Factors New and Impending Compensation and Corporate Governance Regulations Could Hinder or Prevent Us From Attracting and Retaining Management and Other Employees with the Talent and Experience to Manage and Conduct Our Business Effectively in the 2010 Annual Report. Finally, rulemaking mandated by Dodd-Frank to define the scope of the term swap, and the extent to which insurance products may or may not be excluded from the definition of a swap, could impact a number of categories of insurance products issued and sold by MetLife, including stable value products. |
| In addition, Dodd-Frank statutorily imposes the requirement that MetLife, Inc. serve as a source of strength for MetLife Bank. |
226
227
228
229
230
231
232
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
(c) Total Number |
(d) Maximum Number |
|||||||||||||||
of Shares |
(or Approximate |
|||||||||||||||
Purchased as Part |
Dollar Value) of |
|||||||||||||||
(a) Total Number |
of Publicly |
Shares that May Yet |
||||||||||||||
of Shares |
(b) Average Price |
Announced Plans |
Be Purchased Under the |
|||||||||||||
Period | Purchased (1) | Paid per Share | or Programs | Plans or Programs (2) | ||||||||||||
July 1 July 31, 2011
|
2,364 | $ | 41.40 | | $ | 1,260,735,127 | ||||||||||
August 1 August 31, 2011
|
42,867 | $ | 32.95 | | $ | 1,260,735,127 | ||||||||||
September 1 September 30, 2011
|
9,693 | $ | 29.97 | | $ | 1,260,735,127 |
(1) | During the periods July 1 through July 31, 2011, August 1 through August 31, 2011 and September 1 through September 30, 2011, separate account and other affiliates of the Company purchased 2,364 shares, 42,867 shares and 9,693 shares, respectively, of common stock on the open market in nondiscretionary transactions to rebalance index funds. Except as disclosed above, there were no shares of common stock which were repurchased by the Company. | |
(2) | At September 30, 2011, the Company had $1,261 million remaining under its common stock repurchase program authorizations. In April 2008, the Companys Board of Directors authorized an additional $1.0 billion common stock repurchase program, which will begin after the completion of the January 2008 $1.0 billion common stock repurchase program, of which $261 million remained outstanding at September 30, 2011. Under these authorizations, the Company 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) and in privately negotiated transactions. Any future common stock repurchases will be dependent upon several factors, including the Companys capital position, its liquidity, its financial strength and credit ratings, general market conditions and the market price of MetLife, Inc.s common stock compared to managements assessment of the stocks underlying value and applicable regulatory, legal and accounting factors. |
233
Item 6. | Exhibits |
Exhibit |
||||
No. | Description | |||
10 | .1 | Five-Year Credit Agreement, dated as of August 12, 2011, among MetLife, Inc. and MetLife Funding, Inc., as borrowers, and the other parties signatory thereto, amending and restating the 364-Day Credit Agreement, dated as of October 15, 2010, among MetLife, Inc. and MetLife Funding, Inc., as borrowers, and the other parties signatory thereto (Incorporated by reference to Exhibit 10.1 to MetLife, Inc.s Current Report on Form 8-K dated August 15, 2011). | ||
10 | .2 | Offer Letter and Appendix, dated July 14, 2011, between MetLife, Inc. and Martin J. Lippert. | ||
10 | .3 | Offer Letter, dated July 27, 2011, between MetLife, Inc. and Frans Hijkoop. | ||
10 | .4 | Resolutions of the MetLife, Inc., Board of Directors (adopted September 13, 2011) regarding non-management director compensation. | ||
31 | .1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
31 | .2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
32 | .1 | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
32 | .2 | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
101 | .INS | XBRL Instance Document. | ||
101 | .SCH | XBRL Taxonomy Extension Schema Document. | ||
101 | .CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | ||
101 | .LAB | XBRL Taxonomy Extension Label Linkbase Document. | ||
101 | .PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | ||
101 | .DEF | XBRL Taxonomy Extension Definition Linkbase Document. |
234
By |
/s/ Peter
M. Carlson
|
Title: | Executive Vice President, Finance |
235
Exhibit |
||||
No. | Description | |||
10 | .1 | Five-Year Credit Agreement, dated as of August 12, 2011, among MetLife, Inc. and MetLife Funding, Inc., as borrowers, and the other parties signatory thereto, amending and restating the 364-Day Credit Agreement, dated as of October 15, 2010, among MetLife, Inc. and MetLife Funding, Inc., as borrowers, and the other parties signatory thereto (Incorporated by reference to Exhibit 10.1 to MetLife, Inc.s Current Report on Form 8-K dated August 15, 2011). | ||
10 | .2 | Offer Letter and Appendix, dated July 14, 2011, between MetLife, Inc. and Martin J. Lippert. | ||
10 | .3 | Offer Letter, dated July 27, 2011, between MetLife, Inc. and Frans Hijkoop. | ||
10 | .4 | Resolutions of the MetLife, Inc., Board of Directors (adopted September 13, 2011) regarding non-management director compensation. | ||
31 | .1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
31 | .2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
32 | .1 | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
32 | .2 | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
101 | .INS | XBRL Instance Document. | ||
101 | .SCH | XBRL Taxonomy Extension Schema Document. | ||
101 | .CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | ||
101 | .LAB | XBRL Taxonomy Extension Label Linkbase Document. | ||
101 | .PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | ||
101 | .DEF | XBRL Taxonomy Extension Definition Linkbase Document. |
E-1
Steven A. Kandarian President and Chief Executive Officer |
![]() |
|
MetLife, Inc. 1095 Avenue of the Americas New York, NY 10036 |
1
| A grant of stock options valued at approximately $500,000 (based on a planning stock price of $40.00, this would be 37,500 stock options). The stock option price will be the closing stock price of MetLife Inc. common stock on the date the grant is approved and will be subject to the terms of the stock incentive plan and stock option agreement, which will be provided to you. Stock options vest one-third each year from the date of the grant. | |
| An award of Performance Shares valued at approximately $500,000 (based on a planning stock price of $40.00, this would be 12,500 shares). The performance period runs from January 1, 2011 through December 31, 2013, with final awards payable in April 2014. The performance shares are subject to the terms of the stock incentive plan and performance share agreement, which will be provided to you. You must be an employee on December 31, 2013 to be eligible for the award. | |
| A one-time grant of Restricted Stock Units (RSUs) valued at approximately $500,000 (based on a planning stock price of $40.00, this would be $12,500 RSUs) and would be subject to the terms of the stock incentive plan and the restricted stock unit agreement, which will be provided to you. The RSUs will vest and would be payable three years after the date of the grant. |
2
| Federal law requires that Employment Eligibility Verification must be completed by close of business on your 3rd day of employment. This document is included in the Welcome package. You must bring certain documents with you on your 1st day of work in order to begin the process. These must be original documents, from which copies will be made. Please note, as required by Federal law, failure to produce the required documentation and complete the Employment Eligibility Verification Process within the mandated timeframe will result in termination of employment. |
3
| The Agreement To Protect Corporate Property is an agreement between you and MetLife. It addresses matters such as ownership of MetLife information and property, the importance of MetLifes relationships with its customers and employees, and MetLifes interest in maintaining the relationship it has earned. This form is located on our on-line New Associates On Boarding Center and must be completed, signed and returned within 5 days from start of employment. |
Sincerely,
|
I accept this job offer. | |
Steven A. Kandarian
|
Martin Lippert | |
President and Chief Executive Officer |
||
MetLife, Inc. |
||
Signature
/s/ Steven A. Kandarian
|
Signature /s/ Martin J. Lippert | |
Date 21 July 2011 |
4
Martin Lippert Canada to United States | July 14, 2011 Page 2 of 3 |
Martin Lippert Canada to United States | July 14, 2011 Page 3 of 3 |
Steven A. Kandarian President and Chief Executive Officer |
![]() |
|
MetLife, Inc. |
||
1095 Avenue of the Americas |
||
New York, NY 10036 |
1
| A grant of stock options valued at approximately $385,000 (based on a planning stock price of $40.00, this would be 28,825 stock options). The stock option price will be the closing stock price of MetLife, Inc. common stock on the date the grant is approved and will be subject to the terms of the stock incentive plan and stock option agreement, which will be provided to you. Stock options vest one-third each year from the date of the grant. |
| An award of Performance Shares valued at approximately $385,000 (based on a stock price of $40.00, this would be 9,600 shares). The performance period runs from January 1, 2011 through December 31, 2013 with final awards payable in April 2014. The performance shares are subject to the terms of the stock incentive plan and performance share agreement, which will be provided to you. You must be an employee on December 31, 2013 to be eligible for the award. |
| A one-time grant of Restricted Stock Units (RSUs) valued at approximately $625,000 (based on a planning stock price of $40.00, this would be 15,600 RSUs) and would be subject to the terms of the stock incentive plan and the restricted stock unit agreement, which will be provided to you. The RSUs will cliff vest and would be payable three years after the date of the grant. |
| $540,000, less applicable taxes and other required withholding, to be paid to you in a lump sum the first paycheck following 30 calendar days of active employment with MetLife. Should you voluntarily terminate your employment with MetLife prior to the first anniversary of the beginning of your employment, this sign-on bonus is repayable to MetLife, on a prorated basis (based on the portion of the period between your start date and your first anniversary) at the time of termination to the extent permissible under law. You will not have the opportunity to defer this payment. |
| $420,000, less applicable taxes and other required withholding, to be paid in a lump sum February 2012. You must be actively employed at the time of payment to receive the bonus. You will not have the opportunity to defer this payment. |
2
3
Sincerely,
|
I accept this job offer. | |
Steven A. Kandarian
|
Frans Hijkoop | |
President and Chief Executive Officer |
||
MetLife, Inc. |
||
Signature
/s/ Steven A. Kandarian
|
Signature /s/ Frans Hijkoop | |
Date July 30th 2011 |
4
a. | An annual retainer of $260,000, of which $130,000 shall be payable in cash and $130,000 shall be payable in share of the Companys common stock (Annual Director Retainer). The entire retainer shall be in the form of a one-time payment payable on the date of the Companys annual meeting of shareholders (Annual Meetings) in advance for services to be performed in the period beginning on the date of the Annual Meeting; provided, however, that the amount of the retainer shall be adjusted on a pro rata basis for (1) the period from October 1, 2011 to the anticipated date of the 2012 Annual Meeting; and (2) those Directors newly elected to the Board during the period between the Companys Annual Meetings (the New Directors). Shares of Company common stock granted shall be rounded up to the next whole share based on the closing price of the Companys common stock on the New York Exchange on the date of the grant; | ||
b. | An annual retainer of $25,000 shall be payable in cash to each Chair of a Board Committee, such payment shall be made concurrently with the payment of the Annual Director Retainer and, for the New Directors, on the same pro rata basis as applies to the Annual Director Retainer; | ||
c. | An annual retainer of $25,000 shall be payable in cash to the Lead Director, such payment to be made concurrently with the payment of the Annual Director Retainer and, for the New Directors, on the same pro rata basis as applies to the Annual Director Retainer; | ||
d. | An annual retainer of $25,000 shall be payable in cash to the Chair of the Metropolitan Life Insurance Company Investment Committee, such payment to be made concurrently with the payment of the Annual Director Retainer and, for the New Directors, on the same pro rata basis as applies to the Annual Director Retainer; and | ||
e. | No fees shall be paid for the Directors attendance at meetings. |
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 registrants 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 registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
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 registrants 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 registrants internal control over financial reporting. |
/s/ Steven A. Kandarian | ||
Steven A. Kandarian | ||
President and | ||
Chief Executive Officer |
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 registrants 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 registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
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 registrants 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 registrants internal control over financial reporting. |
/s/ William J. Wheeler | ||
William J. Wheeler | ||
Executive Vice President and | ||
Chief Financial Officer |
/s/ Steven A. Kandarian | ||
Steven A. Kandarian | ||
President and | ||
Chief Executive Officer |
/s/ William J. Wheeler | ||
William J. Wheeler | ||
Executive Vice President and | ||
Chief Financial Officer |
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Derivative Financial Instruments (Details 3) (USD $) In Millions | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2011 | Sep. 30, 2010 | |
Components of Net Derivatives Gains (Losses) | ||||
Derivatives and hedging gains (losses) | $ 6,504 | $ (327) | $ 5,992 | $ 2,872 |
Embedded derivatives | (2,308) | 83 | (1,759) | (1,594) |
Total net derivative gains (losses) | $ 4,196 | $ (244) | $ 4,233 | $ 1,278 |
Discontinued Operations (Details 1) (USD $) In Millions | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Discontinued Operations in the Consolidated Balance Sheet | ||
Total assets held-for-sale | $ 3,421 | $ 3,331 |
Total liabilities held-for-sale | 3,221 | 3,043 |
Major classes of assets and liabilities included above: | ||
Total investments | 504,410 | 460,306 |
Total future policy benefits | 182,736 | 170,912 |
Met Life Taiwan Insurance Company Limited [Member] | ||
Discontinued Operations in the Consolidated Balance Sheet | ||
Total assets held-for-sale | 3,421 | 3,331 |
Total liabilities held-for-sale | 3,221 | 3,043 |
Major classes of assets and liabilities included above: | ||
Total investments | 3,089 | 2,726 |
Total future policy benefits | $ 2,661 | $ 2,461 |
Investments (Details Textuals) (USD $) In Millions | Sep. 30, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
---|---|---|---|
Schedule of Available-for-sale Securities [Line Items] | |||
Fixed maturity securities with noncredit OTTI losses in accumulated other comprehensive income (loss) | $ (678) | $ (601) | $ (859) |
Fixed maturity securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fixed maturity securities with noncredit OTTI losses in accumulated other comprehensive income (loss) | (678) | (601) | |
Foreign corporate securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fixed maturity securities with noncredit OTTI losses in accumulated other comprehensive income (loss) | $ 1 | $ 0 |
Employee Benefit Plans (Details Textuals) (USD $) In Millions, unless otherwise specified | 9 Months Ended | |
---|---|---|
Sep. 30, 2011 | Dec. 31, 2010 | |
United States Pension Plans of US Entity, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Required contributions | $ 0 | |
Subsidiaries issuance of group annuity and life insurance contracts supporting employee benefit plan assets primarily invested in separate accounts sponsored by subsidiaries | 99.00% | |
Discretionary contributions | 200 | |
Expected future discretionary contributions | 0 | |
Foreign Pension Plans, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discretionary contributions | $ 43 |
Equity (Details Textuals 1) (USD $) In Millions, except Share data | 3 Months Ended |
---|---|
Mar. 31, 2011 | |
Equity - Common Stock (Textuals) [Abstract] | |
Common stock, shares issued | 68,570,000 |
Price per share of common stock issued | $ 43.25 |
Proceeds from issuance of common stock | $ 2,966 |
Issuance costs | $ 16 |
Subsequent Event | 9 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2011 | |||||
Subsequent Events [Abstract] | |||||
Subsequent Event |
On October 25, 2011, the Company’s Board of Directors
approved an annual dividend for 2011 of $0.74 per common share
payable on December 14, 2011 to stockholders of record as
of November 9, 2011. The Company estimates the aggregate
dividend payment to be $787 million.
|
Investments (Details 42) (USD $) In Millions | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Total Assets | $ 7,353 | $ 11,080 |
Total Liabilities | 3,231 | 6,995 |
Consolidated securitization entities [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 3,397 | 7,114 |
Total Liabilities | 3,204 | 6,892 |
MRSC collateral financing arrangement [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 3,317 | 3,333 |
Total Liabilities | 0 | 0 |
Other limited partnership interests [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 343 | 319 |
Total Liabilities | 7 | 85 |
Real estate joint ventures [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 13 | 20 |
Total Liabilities | 19 | 17 |
Other invested assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 102 | 108 |
Total Liabilities | 1 | 1 |
Trading Account Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 181 | 186 |
Total Liabilities | $ 0 | $ 0 |
Investments (Details Textuals 24) (USD $) In Millions, unless otherwise specified | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Investment Holdings [Line Items] | ||
Loan-to-value ratio at loan origination | 75.00% | |
Mortgage Loans on Real Estate Joint Ventures | $ 285 | $ 283 |
United States [Member] | ||
Investment Holdings [Line Items] | ||
Carrying value, United States and Outside of the United States | 91.00% | |
Foreign Country [Member] | ||
Investment Holdings [Line Items] | ||
Carrying value, United States and Outside of the United States | 9.00% | |
California | ||
Investment Holdings [Line Items] | ||
Carrying value, United States and Outside of the United States | 19.00% | |
New York | ||
Investment Holdings [Line Items] | ||
Carrying value, United States and Outside of the United States | 10.00% | |
Texas | ||
Investment Holdings [Line Items] | ||
Carrying value, United States and Outside of the United States | 7.00% |
Document and Entity Information (USD $) In Billions, except Share data | 9 Months Ended | ||
---|---|---|---|
Sep. 30, 2011 | Oct. 31, 2011 | Sep. 30, 2010 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | METLIFE INC | ||
Entity Central Index Key | 0001099219 | ||
Document Type | 10-Q | ||
Document Period End Date | Sep. 30, 2011 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2011 | ||
Document Fiscal Period Focus | Q3 | ||
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 | $ 31 | ||
Entity Common Stock, Shares Outstanding | 1,057,633,998 |
Long-term and Short-term Debt (Details) (USD $) | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | Dec. 31, 2010 | Sep. 30, 2011
Missouri Reinsurance (Barbados) Inc. [Member]
Committed Credit Facility [Member] | Sep. 30, 2011
General Credit Facility [Member] | Sep. 30, 2011
Committed Credit Facility [Member] | Sep. 30, 2011
General Credit Facility One [Member] | Dec. 31, 2010
General Credit Facility One [Member] | Sep. 30, 2011
General Credit Facility Two [Member] | Dec. 31, 2010
General Credit Facility Two [Member] | |
Line of Credit Facility [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 350,000,000 | $ 4,000,000,000 | $ 12,400,000,000 | $ 1,000,000,000 | $ 3,000,000,000 | $ 3,000,000,000 | $ 1,000,000,000 | |||
Letter of Credit Outstanding | 2,100,000,000 | 6,000,000,000 | ||||||||
Collateral financing arrangements | 5,297,000,000 | 5,297,000,000 | 0 | 2,800,000,000 | ||||||
Unused Commitments | 1,900,000,000 | 3,600,000,000 | ||||||||
Line of Credit Facility, Initiation Date | February 2011 | |||||||||
Credit Facility Term | 1 year | 3 years | 5 years | 364 days | ||||||
Line of Credit Facility, Expiration Date | October 2013 | |||||||||
Line of Credit Facility Cancellation Date | July 1, 2011 | |||||||||
Fees associated with credit facilities | 4,000,000 | 9,000,000 | ||||||||
Credit Facility [Abstract] | ||||||||||
Federal Home Loan Bank Stock | 226,000,000 | 187,000,000 | ||||||||
Federal Home Loan Bank, Liability for Debt Advances | 4,600,000,000 | 3,800,000,000 | ||||||||
Proceeds from Federal Home Loan Bank Advances | 1,300,000,000 | 1,600,000,000 | ||||||||
Federal Home Loan Bank Repayments, Long Term Debt | 690,000,000 | 219,000,000 | ||||||||
Federal Home Loan Bank, Fair Value of collateral pledged for debt advances | $ 7,700,000,000 | $ 7,800,000,000 |
Investments (Details 10) | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
NAIC 1 [Member] | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
NAIC ratings distribution of CMBS | 94.30% | 93.70% |
NAIC 2 [Member] | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
NAIC ratings distribution of CMBS | 4.10% | 3.20% |
NAIC 3 [Member] | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
NAIC ratings distribution of CMBS | 0.50% | 1.80% |
NAIC 4 [Member] | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
NAIC ratings distribution of CMBS | 0.70% | 1.00% |
NAIC 5 [Member] | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
NAIC ratings distribution of CMBS | 0.00% | 0.30% |
NAIC 6 [Member] | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
NAIC ratings distribution of CMBS | 0.40% | 0.00% |
Investments (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturity and Equity Securities Available-for-Sale |
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Selected information about certain fixed maturity securities |
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Alt-A RMBS by vintage year and certain other selected data |
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CMBS by rating agency designations and by vintage year |
The tables above reflect rating agency designations assigned by
nationally recognized rating agencies including Moody’s,
S&P, Fitch and Realpoint, LLC.
The NAIC rating distribution of the Company’s holdings of
CMBS was as follows at:
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ABS |
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Available-for-sale fixed maturity securities by contractual maturity date |
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Components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss) |
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Changes in net unrealized investment gains (losses) included in accumulated other comprehensive income (loss) |
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Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aging Of Gross Unrealized Loss And OTTI Loss For Debt And Equity Securities Available For Sale |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration of Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross unrealized loss greater than $10 million for fixed maturity and equity securities |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities available-for-sale with a gross unrealized loss of 20% or more |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading Securities Portfolio |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The components of net investment gains (losses) |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rollforward of the Cumulative Credit Loss Component of OTTI income (loss) |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Components of Net Investment Income |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities Lending |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Invested Assets on Deposit, Held in Trust and Pledged as Collateral |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Mortgage Loans Net of Valuation Allowance |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of mortgage loans held-for-investment and valuation allowances by method of evaluation for credit loss |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses, Provision for Loss, Net |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financing Receivables, Non Accrual Status |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impaired mortgage loans held-for-investment |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans modified in a troubled debt restructuring |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchased credit impaired investments, by invested asset class, held |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other than temporary impairment losses recognized in earnings |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
US Government Agencies Debt Securities [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentrations of Credit Risk (Fixed Maturity Securities) |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate fixed maturity securities [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentrations of Credit Risk (Fixed Maturity Securities) |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentrations of Credit Risk (Fixed Maturity Securities) |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other than temporary impairment losses recognized in earnings |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Securities [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other than temporary impairment losses recognized in earnings |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans portfolio segment [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agricultural mortgage loans portfolio segment [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans portfolio segment [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
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Variable Interest Entity, Primary Beneficiary [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities |
|
Closed Block (Details Textuals) (USD $) In Millions | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Closed Block (Textuals) [Abstract] | ||
Amortized cost on fixed maturity securities available-for-sale, at estimated fair value | $ 26,966 | $ 27,067 |
Cost of equity securities available-for-sale, at estimated fair value | 42 | 110 |
Income tax on unrealized investment gains (losses) | 1,249 | 594 |
Income tax on unrealized gains (losses) on derivative instruments | 7 | 5 |
Income tax on unrealized gains (losses) allocated to the policyholder dividend obligation | $ (974) | $ (307) |
Discontinued Operations (Details) (USD $) In Millions | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2011 | Sep. 30, 2010 | |
Discontinued Operations in Consolidated Statements of Operations | ||||
Total revenues | $ 20,458 | $ 12,338 | $ 53,517 | $ 39,575 |
Total expenses | 15,152 | 11,953 | 45,011 | 35,643 |
Provision for income tax expense (benefit) | (1,734) | (68) | (2,681) | (1,251) |
Net investment gain (loss), net of income tax | 229 | (223) | 221 | 33 |
Income (loss) from discontinued operations, net of income tax | 4 | 3 | (6) | 20 |
Met Life Taiwan Insurance Company Limited [Member] | ||||
Discontinued Operations in Consolidated Statements of Operations | ||||
Total revenues | 101 | 102 | 337 | 296 |
Total expenses | 115 | 98 | 329 | 282 |
Income (loss) before provision for income tax | (14) | 4 | 8 | 14 |
Provision for income tax expense (benefit) | 3 | (2) | (5) | (5) |
Income (loss) from operations of discontinued operations, net of income tax | (11) | 2 | 3 | 9 |
Net investment gain (loss), net of income tax | 0 | 0 | (74) | 0 |
Income (loss) from discontinued operations, net of income tax | $ (11) | $ 2 | $ (71) | $ 9 |
Fair Value (Details 2) (Recurring [Member], USD $) In Millions | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value at estimated fair value | $ 2,590 | $ 2,510 |
Held-for-sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unpaid principal balance | 2,469 | 2,473 |
Excess estimated fair value over unpaid principal balance | 121 | 37 |
Carrying value at estimated fair value | 2,590 | 2,510 |
Loans in non-accrual status | 3 | 2 |
Loans more than 90 days past due | 3 | 3 |
Loans in non-accrual status or more than 90 days past due, or both - difference between aggregate estimated fair value and unpaid principal balance | $ (1) | $ (1) |
Investments (Details 39) (USD $) In Millions | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Fixed maturity securities [Member] | ||
Purchased credit impaired investments, by invested asset class, held: | ||
Outstanding principal and interest balance | $ 3,685 | $ 1,548 |
Carrying value | 2,536 | 1,050 |
Mortgage loans, net [Member] | ||
Purchased credit impaired investments, by invested asset class, held: | ||
Outstanding principal and interest balance | 542 | 504 |
Carrying value | $ 225 | $ 195 |
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Fair Value |
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.
Assets
and Liabilities Measured at Fair Value
Recurring
Fair Value Measurements
The assets and liabilities measured at estimated fair value on a
recurring basis, including those items for which the Company has
elected the FVO, were determined as described below. These
estimated fair values and their corresponding placement in the
fair value hierarchy are summarized as follows:
See Note 3 for discussion of CSEs included in the tables
above.
The methods and assumptions used to estimate the fair value of
financial instruments are summarized as follows:
Fixed
Maturity Securities, Equity Securities, Trading and Other
Securities and Short-term Investments
When available, the estimated fair value of the Company’s
fixed maturity securities, equity securities, trading and other
securities and short-term investments are 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. The market standard valuation
methodologies utilized include: discounted cash flow
methodologies, matrix pricing or other similar techniques. The
inputs in applying these market standard valuation methodologies
include, but are not limited to: interest rates, credit standing
of the issuer or counterparty, industry sector of the issuer,
coupon rate, call provisions, sinking fund requirements,
maturity and management’s assumptions regarding estimated
duration, liquidity and estimated future cash flows.
Accordingly, the estimated fair values are based on available
market information and management’s judgments about
financial instruments.
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. Such observable inputs include
benchmarking prices for similar assets in active markets, quoted
prices in markets that are not active and observable yields and
spreads in the market.
When observable inputs are not available, the market standard
valuation methodologies for determining the estimated fair value
of certain types of securities that trade infrequently, and
therefore have little or no price transparency, 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
unobservable, these inputs are assumed to be consistent with
what other market participants would use when pricing such
securities and are considered appropriate given the
circumstances.
The estimated fair value of FVO securities held by CSEs is
determined on a basis consistent with the methodologies
described herein for fixed maturity securities and equity
securities. The Company consolidates certain securitization
entities that hold securities that have been accounted for under
the FVO and classified within trading and other securities.
The use of different methodologies, assumptions and inputs may
have a material effect on the estimated fair values of the
Company’s securities holdings.
Mortgage
Loans
Mortgage loans presented in the tables above consist of
commercial mortgage loans held by CSEs and residential mortgage
loans
held-for-sale
for which the Company has elected the FVO and which are carried
at estimated fair value. The Company consolidates certain
securitization entities that hold commercial mortgage loans. See
“— Valuation Techniques and Inputs by
Level Within the Three-Level Fair Value Hierarchy by
Major Classes of Assets and Liabilities” below for a
discussion of the methods and assumptions used to estimate the
fair value of these financial instruments.
Mortgage
Servicing Rights (“MSRs”)
Although MSRs are not financial instruments, the Company has
included them in the preceding table as a result of its election
to carry MSRs at estimated fair value. See
“— Valuation Techniques and Inputs by
Level Within the Three-Level Fair Value Hierarchy by
Major Classes of Assets and Liabilities” below for a
discussion of the methods and assumptions used to estimate the
fair value of these financial instruments.
Other
Investments
Other investments is primarily comprised of investment funds.
The estimated fair value of these investment funds is determined
on a basis consistent with the methodologies described herein
for trading and other securities.
Derivatives
The estimated fair value of derivatives is determined through
the use of quoted market prices for exchange-traded derivatives
and interest rate forwards to sell certain to be announced
securities, or through the use of pricing models for OTC
derivatives. The determination of estimated fair value, when
quoted market values are not available, is based on market
standard valuation methodologies and inputs that are assumed to
be consistent with what other market participants would use when
pricing the instruments. Derivative valuations can be affected
by changes in interest rates, foreign currency exchange rates,
financial indices, credit spreads, default risk (including the
counterparties to the contract), volatility, liquidity and
changes in estimates and assumptions used in the pricing models.
The significant inputs to the pricing models for most OTC
derivatives are inputs that are observable in the market or can
be derived principally from or corroborated by observable market
data. Significant inputs that are observable generally include:
interest rates, foreign currency exchange rates, interest rate
curves, credit curves and volatility. However, certain OTC
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. Significant inputs that are unobservable generally
include: independent broker quotes, credit correlation
assumptions, references to emerging market currencies and inputs
that are outside the observable portion of the interest rate
curve, credit curve, volatility or other relevant market
measure. 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 are assumed to be
consistent with what other market participants would use when
pricing such instruments.
The credit risk of both the counterparty and the Company are
considered in determining the estimated fair value for all OTC
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 derivative positions using the standard swap
curve which includes a spread to the risk free rate. This credit
spread is appropriate for those parties that execute trades at
pricing levels consistent with the standard swap curve. As the
Company and its significant derivative counterparties
consistently execute trades at such pricing levels, 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. The evaluation
of the requirement to make additional credit risk adjustments is
performed by the Company each reporting period.
Most inputs for OTC derivatives are mid market inputs but, in
certain cases, bid level inputs are used 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.
Net
Embedded Derivatives Within Asset and Liability Host
Contracts
Embedded derivatives principally include certain direct, assumed
and ceded variable annuity guarantees and equity or bond indexed
crediting rates within certain funding agreements. Embedded
derivatives are recorded at estimated fair value with changes in
estimated fair value reported in net income.
The Company issues and assumes certain variable annuity products
with guaranteed minimum benefits. GMWBs, GMABs and certain GMIBs
are 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 in the consolidated balance sheets.
The fair value of these guarantees is estimated using the
present value of future benefits minus the present value of
future fees using actuarial and capital market assumptions
related to the projected cash flows over the expected lives of
the contracts. A risk neutral valuation methodology is used
under which the cash flows from the guarantees are projected
under multiple capital market scenarios using observable risk
free rates, currency exchange rates and observable and estimated
implied volatilities.
The valuation of these guarantee liabilities includes
adjustments for nonperformance risk and for a risk margin
related to non-capital market inputs. Both of these adjustments
are captured as components of the spread which, when combined
with the risk free rate, is used to discount the cash flows of
the liability for purposes of determining its fair value.
The nonperformance adjustment is determined by taking into
consideration publicly available information relating to spreads
in the secondary market for the Holding Company’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 compared to the Holding Company.
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
and GMABs previously described. These reinsurance contracts
contain embedded derivatives which are included within premiums,
reinsurance and other receivables in 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.
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 previously described
in “— Fixed Maturity Securities, Equity
Securities, Trading and Other Securities and Short-term
Investments.” The estimated fair value of these embedded
derivatives is included, along with their funds withheld hosts,
in other liabilities in 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 an adjustment for
nonperformance risk. 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.
Separate
Account Assets
Separate account assets are carried at estimated fair value and
reported as a summarized total on the consolidated balance
sheets. The estimated fair value of separate account assets is
based on the estimated fair value of the underlying assets owned
by the separate account. Assets within the Company’s
separate accounts include: mutual funds, fixed maturity
securities, equity securities, mortgage loans, derivatives,
hedge funds, other limited partnership interests, short-term
investments and cash and cash equivalents. See
“— Valuation Techniques and Inputs by
Level Within the Three-Level Fair Value Hierarchy by
Major Classes of Assets and Liabilities” below for a
discussion of the methods and assumptions used to estimate the
fair value of these financial instruments.
Long-term
Debt of CSEs
The Company has elected the FVO for the long-term debt of CSEs,
which are carried at estimated fair value. See
“— Valuation Techniques and Inputs by
Level Within the Three-Level Fair Value Hierarchy by
Major Classes of Assets and Liabilities” below for a
discussion of the methods and assumptions used to estimate the
fair value of these financial instruments.
Trading
Liabilities
Trading liabilities are recorded at estimated fair value with
subsequent changes in estimated fair value recognized in net
investment income. The estimated fair value of trading
liabilities is determined on a basis
consistent with the methodologies described in
“— Fixed Maturity Securities, Equity Securities,
Trading and Other Securities and Short-term Investments.”
Valuation Techniques and Inputs by Level Within the
Three-Level Fair Value Hierarchy by Major Classes of Assets
and Liabilities
A description of the significant valuation techniques and inputs
to the determination of estimated fair value for the more
significant asset and liability classes measured at fair value
on a recurring basis is as follows:
The Company determines the estimated fair value of its
investments using primarily the market approach and the income
approach. The use of quoted prices for identical assets and
matrix pricing or other similar techniques are examples of
market approaches, while the use of discounted cash flow
methodologies is an example of the income approach. The Company
attempts to maximize the use of observable inputs and minimize
the use of unobservable inputs in selecting whether the market
or income approach is used.
While certain investments have been classified as Level 1
from the use of unadjusted quoted prices for identical
investments supported by high volumes of trading activity and
narrow bid/ask spreads, most investments have been classified as
Level 2 because the significant inputs used to measure the
fair value on a recurring basis of the same or similar
investment are market observable or can be corroborated using
market observable information for the full term of the
investment. Level 3 investments include those where
estimated fair values are based on significant unobservable
inputs that are supported by little or no market activity and
may reflect management’s own assumptions about what factors
market participants would use in pricing these investments.
Level 1
Measurements:
Fixed
Maturity Securities, Equity Securities, Trading and Other
Securities and Short-term Investments
These securities are comprised of U.S. Treasury and agency
securities, foreign government securities, RMBS principally
to-be-announced securities, exchange traded common stock,
exchange traded registered mutual fund interests included in
trading and other securities and short-term money market
securities, including U.S. Treasury bills. Valuation of
these securities is based on unadjusted quoted prices in active
markets that are readily and regularly available.
Contractholder-directed unit-linked investments reported within
trading and other securities include certain registered mutual
fund interests priced using daily net asset value
(“NAV”) provided by the fund managers.
Derivative
Assets and Derivative Liabilities
These assets and liabilities are comprised of exchange-traded
derivatives, as well as interest rate forwards to sell certain
to-be-announced securities. Valuation of these assets and
liabilities is based on unadjusted quoted prices in active
markets that are readily and regularly available.
Separate
Account Assets
These assets are comprised of (i) securities that are
similar in nature to the fixed maturity securities, equity
securities and short-term investments referred to above; and
(ii) certain exchange-traded derivatives, including
financial futures and owned options. Valuation of these assets
is based on unadjusted quoted prices in active markets that are
readily and regularly available.
Level 2
Measurements:
Fixed
Maturity Securities, Equity Securities, Trading and Other
Securities and Short-term Investments
This level includes fixed maturity securities and equity
securities priced principally by independent pricing services
using observable inputs. Trading and other securities and
short-term investments within this level are of a
similar nature and class to the Level 2 securities
described below. Contractholder-directed unit-linked investments
reported within trading and other securities include certain
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.
U.S. corporate and foreign corporate
securities. These securities are principally
valued using the market and income approaches. Valuation is
based primarily on quoted prices in markets that are not active,
or using matrix pricing or other similar techniques that use
standard market observable inputs such as benchmark yields,
spreads off benchmark yields, new issuances, issuer rating,
duration, and trades of identical or comparable securities.
Investment grade privately placed securities are valued using
discounted cash flow methodologies using standard market
observable inputs, and inputs derived from, or corroborated by,
market observable data including market yield curve, duration,
call provisions, observable prices and spreads for similar
publicly traded or privately traded issues that incorporate the
credit quality and industry sector of the issuer. This level
also includes certain below investment grade privately placed
fixed maturity securities priced by independent pricing services
that use observable inputs.
Structured securities comprised of RMBS, CMBS and
ABS. These securities are principally valued
using the market approach. Valuation is based primarily on
matrix pricing or other similar techniques using standard market
inputs including spreads for actively traded securities, spreads
off benchmark yields, expected prepayment speeds and volumes,
current and forecasted loss severity, rating, weighted average
coupon, weighted average maturity, average delinquency rates,
geographic region, debt-service coverage ratios and
issuance-specific information including, but not limited to:
collateral type, payment terms of the underlying assets, payment
priority within the tranche, structure of the security, deal
performance and vintage of loans.
U.S. Treasury and agency
securities. These securities are principally
valued using the market approach. Valuation is based primarily
on quoted prices in markets that are not active, or using matrix
pricing or other similar techniques using standard market
observable inputs such as benchmark U.S. Treasury yield
curve, the spread off the U.S. Treasury curve for the
identical security and comparable securities that are actively
traded.
Foreign government and state and political subdivision
securities. These securities are principally
valued using the market approach. Valuation is based primarily
on matrix pricing or other similar techniques using standard
market observable inputs including benchmark U.S. Treasury
or other yields, issuer ratings, broker-dealer quotes, issuer
spreads and reported trades of similar securities, including
those within the same
sub-sector
or with a similar maturity or credit rating.
Common and non-redeemable preferred
stock. These securities are principally valued
using the market approach where market quotes are available but
are not considered actively traded. Valuation is based
principally on observable inputs including quoted prices in
markets that are not considered active.
Mortgage
Loans Held by CSEs
These commercial mortgage loans are principally valued using the
market approach. The principal market for these commercial loan
portfolios is the securitization market. The Company uses the
quoted securitization market price of the obligations of the
CSEs to determine the estimated fair value of these commercial
loan portfolios. These market prices are determined principally
by independent pricing services using observable inputs.
Mortgage
Loans
Held-For-Sale
Residential mortgage loans
held-for-sale
are principally valued using the market approach. Valuation is
based primarily on readily available observable pricing for
similar loans or securities backed by similar loans. The
unobservable adjustments to such prices are insignificant.
Derivative
Assets and Derivative Liabilities
This level includes all types of derivative instruments utilized
by the Company with the exception of exchange-traded derivatives
and interest rate forwards to sell certain to-be-announced
securities included within Level 1 and those derivative
instruments with unobservable inputs as described in
Level 3. These derivatives are principally valued using an
income approach.
Interest
rate contracts.
Non-option-based — Valuations are based on
present value techniques, which utilize significant inputs that
may include the swap yield curve, LIBOR basis curves and
repurchase rates.
Option-based — Valuations are based on option pricing
models, which utilize significant inputs that may include the
swap yield curve, LIBOR basis curves and interest rate
volatility.
Foreign
currency contracts.
Non-option-based — Valuations are based on present
value techniques, which utilize significant inputs that may
include the swap yield curve, LIBOR basis curves, currency spot
rates and cross currency basis curves.
Option-based — Valuations are based on option pricing
models, which utilize significant inputs that may include the
swap yield curve, LIBOR basis curves, currency spot rates, cross
currency basis curves and currency volatility.
Credit
contracts.
Non-option-based — Valuations are based on present
value techniques, which utilize significant inputs that may
include the swap yield curve, credit curves and recovery rates.
Equity
market contracts.
Non-option-based — Valuations are based on present
value techniques, which utilize significant inputs that may
include the swap yield curve, spot equity index levels and
dividend yield curves.
Option-based — Valuations are based on option pricing
models, which utilize significant inputs that may include the
swap yield curve, spot equity index levels, dividend yield
curves and equity volatility.
Embedded
Derivatives Contained in Certain Funding Agreements
These derivatives are principally valued using an income
approach. Valuations are based on present value techniques,
which utilize significant inputs that may include the swap yield
curve and the spot equity and bond index level.
Separate
Account Assets
These assets are comprised of investments that are similar in
nature to the fixed maturity securities, equity securities,
short-term investments and derivative assets referred to above.
Also included are certain mutual funds and hedge funds without
readily determinable fair values given prices are not published
publicly. Valuation of the mutual funds and hedge funds is based
upon quoted prices or reported NAV provided by the fund managers.
Long-term
Debt of CSEs
The estimated fair value of the long-term debt of the
Company’s CSEs is based on quoted prices when traded as
assets in active markets or, if not available, based on market
standard valuation methodologies, consistent with the
Company’s methods and assumptions used to estimate the fair
value of comparable fixed maturity securities.
Level 3
Measurements:
In general, investments classified within Level 3 use many
of the same valuation techniques and inputs as described in
Level 2 Measurements. However, if key inputs are
unobservable, or if the investments are less liquid and there is
very limited trading activity, the investments are generally
classified as Level 3. The use of independent non-binding
broker quotations to value investments generally indicates there
is a lack of liquidity or a lack of transparency in the process
to develop the valuation estimates generally causing these
investments to be classified in Level 3.
Fixed
Maturity Securities, Equity Securities, Trading and Other
Securities and Short-term Investments
This level includes fixed maturity securities and equity
securities priced principally by independent broker quotations
or market standard valuation methodologies using inputs that are
not market observable or cannot be derived principally from or
corroborated by observable market data. Trading and other
securities and short-term investments within this level are of a
similar nature and class to the Level 3 securities
described below; accordingly, the valuation techniques and
significant market standard observable inputs used in their
valuation are also similar to those described below.
U.S. corporate and foreign corporate
securities. These securities, including financial
services industry hybrid securities classified within fixed
maturity securities, are principally valued using the market and
income approaches. Valuations are based primarily on matrix
pricing or other similar techniques that utilize unobservable
inputs or cannot be derived principally from, or corroborated
by, observable market data, including illiquidity premiums and
spread adjustments to reflect industry trends or specific
credit-related issues. Valuations may be based on independent
non-binding broker quotations. Generally, below investment grade
privately placed or distressed securities included in this level
are valued using discounted cash flow methodologies which rely
upon significant, unobservable inputs and inputs that cannot be
derived principally from, or corroborated by, observable market
data.
Structured securities comprised of RMBS, CMBS and
ABS. These securities are principally valued
using the market approach. Valuation is based primarily on
matrix pricing or other similar techniques that utilize inputs
that are unobservable or cannot be derived principally from, or
corroborated by, observable market data, or are based on
independent non-binding broker quotations. Below investment
grade securities and ABS supported by
sub-prime
mortgage loans included in this level are valued based on inputs
including 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, and certain of these
securities are valued based on independent non-binding broker
quotations.
Foreign government and state and political subdivision
securities. These securities are principally
valued using the market approach. Valuation is based primarily
on matrix pricing or other similar techniques, however these
securities are less liquid and certain of the inputs are based
on very limited trading activity.
Common and non-redeemable preferred
stock. These securities, including privately held
securities and financial services industry hybrid securities
classified within equity securities, are principally valued
using the market and income approaches. Valuations are based
primarily on matrix pricing or other similar techniques using
inputs such as comparable credit rating and issuance structure.
Equity securities valuations determined with discounted cash
flow methodologies use inputs such as earnings multiples based
on comparable public companies, and industry-specific
non-earnings based multiples. Certain of these securities are
valued based on independent non-binding broker quotations.
Mortgage
Loans
Mortgage loans include residential mortgage loans
held-for-sale
for which pricing for similar loans or securities backed by
similar loans is not observable and the estimated fair value is
determined using unobservable independent broker quotations or
valuation models.
MSRs
MSRs, which are valued using an income approach, are carried at
estimated fair value and have multiple significant unobservable
inputs including assumptions regarding estimates of discount
rates, loan prepayments and servicing costs. Sales of MSRs tend
to occur in private transactions where the precise terms and
conditions of the sales are typically not readily available and
observable market valuations are limited. As such, the Company
relies primarily on a discounted cash flow model to estimate the
fair value of the MSRs. The model requires inputs such as type
of loan (fixed vs. variable and agency vs. other), age of loan,
loan interest rates and current market interest rates that are
generally observable. The model also requires the use of
unobservable inputs including assumptions regarding estimates of
discount rates, loan prepayments and servicing costs.
Derivative
Assets and Derivative Liabilities
These derivatives are principally valued using an income
approach. Valuations of non-option-based derivatives utilize
present value techniques, whereas valuations of option-based
derivatives utilize option pricing models. These valuation
methodologies generally use the same inputs as described in the
corresponding sections above 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.
Interest
rate contracts.
Non-option-based — Significant unobservable
inputs may include pull through rates on interest rate lock
commitments and the extrapolation beyond observable limits of
the swap yield curve and LIBOR basis curves.
Option-based — Significant unobservable inputs may
include the extrapolation beyond observable limits of the swap
yield curve, LIBOR basis curves and interest rate volatility.
Foreign
currency contracts.
Non-option-based — Significant unobservable inputs may
include the extrapolation beyond observable limits of the swap
yield curve, LIBOR basis curves and cross currency basis curves.
Certain of these derivatives are valued based on independent
non-binding broker quotations.
Option-based — Significant unobservable inputs may
include currency correlation and the extrapolation beyond
observable limits of the swap yield curve, LIBOR basis curves,
cross currency basis curves and currency volatility.
Credit
contracts.
Non-option-based — Significant unobservable inputs may
include credit correlation, repurchase rates, and the
extrapolation beyond observable limits of the swap yield curve
and credit curves. Certain of these derivatives are valued based
on independent non-binding broker quotations.
Equity
market contracts.
Non-option-based — Significant unobservable inputs may
include the extrapolation beyond observable limits of dividend
yield curves.
Option-based — Significant unobservable inputs may
include the extrapolation beyond observable limits of dividend
yield curves and equity volatility. Certain of these derivatives
are valued based on independent non-binding broker quotations.
Direct
and Assumed Guaranteed Minimum Benefits
These embedded derivatives are principally valued using an
income approach. Valuations are based on option pricing
techniques, which utilize significant inputs that may include
swap yield curve, 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 curve 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 an
income approach. The valuation techniques and significant market
standard unobservable inputs used in their valuation are similar
to those previously described for Direct and Assumed Guaranteed
Minimum Benefits and also include counterparty credit spreads.
Embedded
Derivatives Within Funds Withheld Related to Certain Ceded
Reinsurance
These embedded derivatives are principally valued using an
income approach. Valuations are based on present value
techniques, which utilize significant inputs that may include
the swap yield curve and the fair value of assets within the
reference portfolio. 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
fair value of certain assets within the reference portfolio
which are not observable in the market and cannot be derived
principally from, or corroborated by, observable market data.
Separate
Account Assets
These assets are comprised of investments that are similar in
nature to the fixed maturity securities, equity securities and
derivative assets referred to above. Separate account assets
within this level also include mortgage loans and other limited
partnership interests. The estimated fair value of mortgage
loans is determined by discounting expected future cash flows,
using current interest rates for similar loans with similar
credit risk. Other limited partnership interests are valued
giving consideration to the value of the underlying holdings of
the partnerships and by applying a premium or discount, if
appropriate, for factors such as liquidity, bid/ask spreads, the
performance record of the fund manager or other relevant
variables which may impact the exit value of the particular
partnership interest.
Long-term
Debt of CSEs
The estimated fair value of the long-term debt of the
Company’s CSEs are priced principally through independent
broker quotations or market standard valuation methodologies
using inputs that are not market observable or cannot be derived
from or corroborated by observable market data.
Transfers
between Levels 1 and 2:
During the three months and nine months ended September 30,
2011 and 2010, transfers between Levels 1 and 2 were not
significant.
Transfers
into or out of Level 3:
Overall, transfers into
and/or out
of Level 3 are attributable to a change in the
observability of inputs. 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. Transfers into
and/or out
of any level are assumed to occur at the beginning of the
period. Significant transfers into
and/or out
of Level 3 assets and liabilities for the three months and
nine months ended September 30, 2011 and 2010 are
summarized below.
Transfers into Level 3 resulted primarily from current
market conditions characterized by a lack of trading activity,
decreased liquidity and credit ratings downgrades (e.g., from
investment grade to below investment grade) which have resulted
in decreased transparency of valuations and an increased use of
broker quotations and unobservable inputs to determine estimated
fair value.
During the three months and nine months ended September 30,
2011, transfers into Level 3 for fixed maturity securities
of $862 million and $604 million, respectively, and
transfers into Level 3 for separate account assets of
$11 million and $18 million, respectively, were
principally comprised of certain RMBS, foreign government
securities and ABS. During the three months and nine months
ended September 30, 2010, transfers into Level 3 for
fixed maturity securities of $367 million and
$1,475 million, respectively, and transfers into
Level 3 for separate account assets of $9 million and
$31 million, respectively, were principally comprised of
certain RMBS and U.S. and foreign corporate securities.
Transfers out of Level 3 resulted primarily from increased
transparency of both new issuances that subsequent to issuance
and establishment of trading activity, became priced by
independent pricing services and existing issuances that, over
time, the Company was able to obtain pricing from, or
corroborate pricing received from, independent pricing services
with observable inputs or increases in market activity and
upgraded credit ratings. With respect to derivatives, transfers
out of Level 3 resulted primarily from increased
transparency related to the observable portion of the swap yield
curve or the observable portion of the equity volatility surface.
During the three months and nine months ended September 30,
2011, transfers out of Level 3 for fixed maturity
securities of $1,432 million and $4,718 million,
respectively, and transfers out of Level 3 for separate
account assets of $176 million and $258 million,
respectively, were principally comprised of certain ABS, RMBS
and U.S. and foreign corporate securities. During the nine
months ended September 30, 2011, transfers out of
Level 3 for derivatives of $101 million were
principally comprised of interest rate swaps, foreign currency
forwards, and equity options. There were no transfers out of
Level 3 for derivatives for the three months ended
September 30, 2011. During the three months and nine months
ended September 30, 2010, transfers out of Level 3 for
fixed maturity securities of $1,240 million and
$1,413 million, respectively, and transfers out of
Level 3 for separate account assets of $75 million and
$224 million, respectively, were principally comprised of
certain U.S. and foreign corporate securities, ABS and RMBS.
The following tables summarize the change of all assets and
(liabilities) measured at estimated fair value on a recurring
basis using significant unobservable inputs (Level 3),
including realized and unrealized gains (losses) of all assets
and (liabilities) and realized and unrealized gains (losses) of
all assets and (liabilities) still held at the end of the
respective time periods:
FVO —
Mortgage Loans
Held-For-Sale
The following table presents residential mortgage loans
held-for-sale
carried under the FVO at:
Residential mortgage loans
held-for-sale
accounted for under the FVO are initially measured at estimated
fair value. Interest income on residential mortgage loans
held-for-sale
is recorded based on the stated rate of the loan and is recorded
in net investment income. Gains and losses from initial
measurement, subsequent changes in estimated fair value and
gains or losses on sales are recognized in other revenues. Such
changes in estimated fair value for these loans were due to the
following:
FVO —
CSEs
The Company has elected the FVO for the following assets and
liabilities held by CSEs: commercial mortgage loans, securities
and long-term debt. Information on the estimated fair value of
the securities classified as trading and other securities is
presented in Note 3. The following table presents these
commercial mortgage loans carried under the FVO at:
The following table presents the long-term debt carried under
the FVO related to both the commercial mortgage loans and
securities classified as trading and other securities at:
Interest income on both commercial mortgage loans and securities
classified as trading and other securities held by CSEs is
recorded in net investment income. Interest expense on long-term
debt of CSEs is recorded in other expenses. Gains and losses
from initial measurement, subsequent changes in estimated fair
value and gains or losses on sales of both the commercial
mortgage loans and long-term debt are recognized in net
investment gains (losses), which is summarized in Note 3.
Non-Recurring
Fair Value Measurements
Certain assets are measured at estimated fair value on a
non-recurring basis and are not included in the tables presented
above. The amounts below relate to certain investments measured
at estimated fair value during the period and still held at the
reporting dates.
Fair
Value of Financial Instruments
Amounts related to the Company’s financial instruments that
were not measured at fair value on a recurring basis were as
follows:
The methods and assumptions used to estimate the fair value of
financial instruments are summarized as follows:
The assets and liabilities measured at estimated fair value on a
recurring basis include: fixed maturity securities, equity
securities, trading and other securities, certain short-term
investments, mortgage loans held by CSEs, mortgage loans
held-for-sale
accounted for under the FVO, MSRs, derivative assets and
liabilities, net embedded derivatives within asset and liability
host contracts, separate account assets, long-term debt of CSEs
and trading liabilities. These assets and liabilities are
described in the section “— Recurring Fair Value
Measurements” and, therefore, are excluded from the table
above. The estimated fair value for these financial instruments
approximates carrying value.
Mortgage
Loans
These mortgage loans are principally comprised of commercial and
agricultural mortgage loans, which are originated for investment
purposes and are primarily carried at amortized cost.
Residential mortgage and consumer loans are generally purchased
from third parties for investment purposes and are principally
carried at amortized cost, while those originated for sale and
not carried under the FVO are carried at the lower of cost or
estimated fair value. The estimated fair values of these
mortgage loans are determined as follows:
Mortgage loans
held-for-investment. —
For commercial and agricultural mortgage loans
held-for-investment
and carried at amortized cost, estimated fair value was
primarily determined by estimating expected future cash flows
and discounting them using current interest rates for similar
mortgage loans with similar credit risk. For residential
mortgage loans
held-for-investment
and carried at amortized cost, estimated fair value is primarily
determined from observable pricing for similar loans.
Mortgage loans
held-for-sale. —
Certain mortgage loans previously classified as
held-for-investment
have been designated as
held-for-sale.
For these mortgage loans, estimated fair value is determined
using independent broker quotations or, when the mortgage loan
is in foreclosure or otherwise determined to be collateral
dependent, the fair value of the underlying collateral is
estimated using internal models.
Policy
Loans
For policy loans with fixed interest rates, estimated fair
values are determined using a discounted cash flow model applied
to groups of similar policy loans determined by the nature of
the underlying insurance liabilities. Cash flow estimates are
developed applying a weighted-average interest rate to the
outstanding principal balance of the respective group of policy
loans and an estimated average maturity determined through
experience studies of the past performance of policyholder
repayment behavior for similar loans. These cash flows are
discounted using current risk-free interest rates with no
adjustment for borrower credit risk as these loans are fully
collateralized by the cash surrender value of the underlying
insurance policy. The estimated fair value for policy loans with
variable interest rates approximates carrying value due to the
absence of borrower credit risk and the short time period
between interest rate resets, which presents minimal risk of a
material change in estimated fair value due to changes in market
interest rates.
Real
Estate Joint Ventures and Other Limited Partnership
Interests
Real estate joint ventures and other limited partnership
interests included in the preceding table consist of those
investments accounted for using the cost method. The remaining
carrying value recognized in the consolidated balance sheets
represents investments in real estate carried at cost less
accumulated depreciation, or real estate joint ventures and
other limited partnership interests accounted for using the
equity method, which do not meet the definition of financial
instruments for which fair value is required to be disclosed.
The estimated fair values for real estate joint ventures and
other limited partnership interests accounted for under the cost
method are generally based on the Company’s share of the
NAV as provided in the financial statements of the investees. In
certain circumstances, management may adjust the NAV by a
premium or discount when it has sufficient evidence to support
applying such adjustments.
Short-term
Investments
Certain short-term investments do not qualify as securities and
are recognized at amortized cost in the consolidated balance
sheets. For these instruments, the Company believes that there
is minimal risk of material changes in interest rates or credit
of the issuer such that estimated fair value approximates
carrying value. In light of recent market conditions, short-term
investments have been monitored to ensure there is sufficient
demand and maintenance of issuer credit quality and the Company
has determined additional adjustment is not required.
Other
Invested Assets
Other invested assets within the preceding table are principally
comprised of funds withheld, various interest-bearing assets
held in foreign subsidiaries and certain amounts due under
contractual indemnifications.
For funds withheld and the various interest-bearing assets held
in foreign subsidiaries, the Company evaluates the specific
facts and circumstances of each instrument to determine the
appropriate estimated fair values. These estimated fair values
were not materially different from the recognized carrying
values.
Cash and
Cash Equivalents
Due to the short-term maturities of cash and cash equivalents,
the Company believes there is minimal risk of material changes
in interest rates or credit of the issuer such that estimated
fair value generally approximates carrying value. In light of
recent market conditions, cash and cash equivalent instruments
have been monitored to ensure there is sufficient demand and
maintenance of issuer credit quality, or sufficient solvency in
the case of depository institutions, and the Company has
determined additional adjustment is not required.
Accrued
Investment Income
Due to the short term until settlement of accrued investment
income, the Company believes there is minimal risk of material
changes in interest rates or credit of the issuer such that
estimated fair value approximates carrying value. In light of
recent market conditions, the Company has monitored the credit
quality of the issuers and has determined additional adjustment
is not required.
Premiums,
Reinsurance and Other Receivables
Premiums, reinsurance and other receivables in the preceding
table are principally comprised of certain amounts recoverable
under reinsurance contracts, amounts on deposit with financial
institutions to facilitate daily settlements related to certain
derivative positions and amounts receivable for securities sold
but not yet settled.
Premiums receivable and those amounts recoverable under
reinsurance treaties determined to transfer sufficient risk are
not financial instruments subject to disclosure and thus have
been excluded from the amounts presented in the preceding table.
Amounts recoverable under ceded reinsurance contracts, which the
Company has determined do not transfer sufficient risk such that
they are accounted for using the deposit method of accounting,
have been included in the preceding table. The estimated fair
value is determined as the present value of expected future cash
flows under the related contracts, which were discounted using
an interest rate determined to reflect the appropriate credit
standing of the assuming counterparty.
The amounts on deposit for derivative settlements essentially
represent the equivalent of demand deposit balances and amounts
due for securities sold are generally received over short
periods such that the estimated fair value approximates carrying
value. In light of recent market conditions, the Company has
monitored the solvency position of the financial institutions
and has determined additional adjustments are not required.
Other
Assets
Other assets in the preceding table are primarily composed of a
receivable for cash paid to an unaffiliated financial
institution under the MetLife Reinsurance Company of Charleston
(“MRC”) collateral financing arrangement as described
in Note 12 of the Notes to the Consolidated Financial
Statements included in the 2010 Annual Report. The estimated
fair value of the receivable for the cash paid to the
unaffiliated financial institution under the MRC collateral
financing arrangement is determined by discounting the expected
future cash flows using a discount rate that reflects the credit
rating of the unaffiliated financial institution. The amounts
excluded from the preceding table are not considered financial
instruments subject to disclosure.
Policyholder
Account Balances
Policyholder account balances in the table above include
investment contracts. Embedded derivatives on investment
contracts and certain variable annuity guarantees accounted for
as embedded derivatives are included in this caption in the
consolidated financial statements but excluded from this caption
in the table above as they are separately presented in
“— Recurring Fair Value Measurements.” The
remaining difference between the amounts reflected as
policyholder account balances in the preceding table and those
recognized in the consolidated balance sheets represents those
amounts due under contracts that satisfy the definition of
insurance contracts and are not considered financial instruments.
The investment contracts primarily include certain funding
agreements, fixed deferred annuities, modified guaranteed
annuities, fixed term payout annuities and total control
accounts. The fair values for these investment contracts are
estimated by discounting best estimate future cash flows using
current market risk-free interest rates and adding a spread to
reflect the nonperformance risk in the liability.
Payables
for Collateral Under Securities Loaned and Other
Transactions
The estimated fair value for payables for collateral under
securities loaned and other transactions approximates carrying
value. The related agreements to loan securities are short-term
in nature such that the Company believes there is limited risk
of a material change in market interest rates. Additionally,
because borrowers are cross-collateralized by the borrowed
securities, the Company believes no additional consideration for
changes in nonperformance risk are necessary.
Bank
Deposits
Due to the frequency of interest rate resets on customer bank
deposits held in money market accounts, the Company believes
that there is minimal risk of a material change in interest
rates such that the estimated fair value approximates carrying
value. For time deposits, estimated fair values are estimated by
discounting the expected cash flows to maturity using discount
rates based on the LIBOR/swap curve at the date of the valuation.
Short-term
and Long-term Debt, Collateral Financing Arrangements and Junior
Subordinated Debt Securities
The estimated fair value for short-term debt approximates
carrying value due to the short-term nature of these
obligations. The estimated fair values of long-term debt,
collateral financing arrangements and junior subordinated debt
securities are generally determined by discounting expected
future cash flows using market rates currently available for
debt with similar remaining maturities and reflecting the credit
risk of the Company, including inputs when available, from
actively traded debt of the Company or other companies with
similar types of borrowing arrangements. Risk-adjusted discount
rates applied to the expected future cash flows can vary
significantly based upon the specific terms of each individual
arrangement, including, but not limited to: subordinated rights,
contractual interest rates in relation to current market rates,
the structuring of the arrangement, and the nature and
observability of the applicable valuation inputs. Use of
different risk-adjusted discount rates could result in different
estimated fair values.
The carrying value of long-term debt presented in the table
above differs from the amounts presented in the consolidated
balance sheets as it does not include capital leases which are
not required to be disclosed at estimated fair value.
Other
Liabilities
Other liabilities included in the table above reflect those
other liabilities that satisfy the definition of financial
instruments subject to disclosure. These items consist primarily
of interest and dividends payable, amounts due for securities
purchased but not yet settled, funds withheld amounts payable
which are contractually withheld by the Company in accordance
with the terms of the reinsurance agreements and amounts payable
under certain assumed reinsurance treaties accounted for as
deposit type treaties. The Company evaluates the specific terms,
facts and circumstances of each instrument to determine the
appropriate estimated fair values, which are not materially
different from the carrying values, with the exception of
certain deposit type reinsurance payables. For these reinsurance
payables, the estimated fair value is determined as the present
value of expected future cash flows under the related contracts,
which are discounted using an interest rate determined to
reflect the appropriate credit standing of the assuming
counterparty.
Separate
Account Liabilities
Separate account liabilities included in the preceding table
represent those balances due to policyholders under contracts
that are classified as investment contracts. The remaining
amounts presented in the consolidated balance sheets represent
those contracts classified as insurance contracts, which do not
satisfy the definition of financial instruments.
Separate account liabilities classified as investment contracts
primarily represent variable annuities with no significant
mortality risk to the Company such that the death benefit is
equal to the account balance, funding agreements related to
group life contracts, and certain contracts that provide for
benefit funding.
Separate account liabilities are recognized in the consolidated
balance sheets at an equivalent value of the related separate
account assets. Separate account assets, which equal net
deposits, net investment income and realized and unrealized
investment gains and losses, are fully offset by corresponding
amounts credited to the contractholders’ liability which is
reflected in separate account liabilities. Since separate
account liabilities are fully funded by cash flows from the
separate account assets which are recognized at estimated fair
value as described in the section “— Recurring
Fair Value Measurements,” the Company believes the value of
those assets approximates the estimated fair value of the
related separate account liabilities.
Mortgage
Loan Commitments and Commitments to Fund Bank Credit
Facilities, Bridge Loans and Private Corporate Bond
Investments
The estimated fair values for mortgage loan commitments that
will be held for investment and commitments to fund bank credit
facilities, bridge loans and private corporate bonds that will
be held for investment reflected in the above table represents
the difference between the discounted expected future cash flows
using interest rates that incorporate current credit risk for
similar instruments on the reporting date and the principal
amounts of the commitments.
Assets
and Liabilities of Subsidiaries
Held-For-Sale
The carrying values of the assets and liabilities of
subsidiaries
held-for-sale
reflect those assets and liabilities which were previously
determined to be financial instruments and which were reflected
in other financial statement captions in the comparable table
above in previous periods but have been reclassified to these
captions to reflect the discontinued nature of the operations.
The estimated fair value of the assets and liabilities of
subsidiaries
held-for-sale
have been determined on a basis consistent with the assets and
liabilities as described herein.
|
Business Segment Information (Details 1) (USD $) In Millions | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Total assets | $ 785,230 | $ 730,906 |
Insurance Products [Member] | U.S. Business [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 148,629 | 141,366 |
Retirement Products [Member] | U.S. Business [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 185,010 | 177,045 |
Corporate Benefit Funding [Member] | U.S. Business [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 186,741 | 172,929 |
Auto Home [Member] | U.S. Business [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 5,965 | 5,541 |
Banking, Corporate & Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 86,041 | 69,030 |
U.S. Business [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 526,345 | 496,881 |
International [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 172,844 | 164,995 |
Japan [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 104,493 | 87,416 |
International Other Regions [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 68,351 | $ 77,579 |
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement Payments By Hedge Classification And Income Statement Location |
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Net derivatives gains (losses) recognized on fair value derivatives and the related hedged items |
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Derivatives and Non-Derivative Hedging Instruments in Net Investment Hedging Relationships |
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Amount and location of gains (losses) recognized in income for derivatives that are not designated or qualifying as hedging instruments |
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Schedule of estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps |
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Derivatives, Fair Value [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location |
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Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Derivatives Gains (Losses) |
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Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location |
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Schedule of Derivative Instruments |
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Derivatives Designated as Hedging Instruments [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location |
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Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location |
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Embedded Derivative Financial Instruments [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Derivatives Gains (Losses) |
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Schedule of Derivative Instruments |
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Other Comprehensive Income (Loss) [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location |
|
Investments (Details 5) (USD $) In Millions, unless otherwise specified | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Estimated fair value | $ 170,097 | $ 159,660 |
% of Total | 100.00% | 100.00% |
Corporate fixed maturity securities [Member] | Largest exposure to a single issuer [Member] | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Estimated fair value | 1,883 | 2,291 |
% of Total | 0.40% | 0.50% |
Corporate fixed maturity securities [Member] | Holdings in ten issuers with the largest exposures [Member] | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Estimated fair value | $ 11,955 | $ 14,247 |
% of Total | 2.40% | 3.10% |
Derivative Financial Instruments (Details 6) (Cash Flow Hedges [Member], USD $) In Millions | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2011 | Sep. 30, 2010 | |
Cash Flow Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other comprehensive income (loss), balance at beginning of period | $ (165) | $ 593 | $ (59) | $ (76) |
Gains (losses) deferred in other comprehensive income (loss) on the effective portion of cash flow hedges | 1,630 | (40) | 1,527 | 577 |
Amounts reclassified to net derivatives gains (losses) | 17 | (1) | 9 | 50 |
Amounts reclassified to net investment income | 1 | 1 | 2 | 3 |
Amounts reclassified to other expenses | 3 | 0 | 7 | (1) |
Other comprehensive income (loss), balance at end of period | $ 1,486 | $ 553 | $ 1,486 | $ 553 |
Investments (Details Textuals 10) (USD $) In Billions | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Investments [Abstract] | ||
Concentration of Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | $ 5.5 | $ 6.8 |
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