10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

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

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2015

or

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

FOR THE TRANSITION PERIOD FROM TO                 

Commission file number: 033-03094

MetLife Insurance Company USA

(Exact name of registrant as specified in its charter)

Delaware	06-0566090
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
11225 North Community House Road, Charlotte, North Carolina	28277
(Address of principal executive offices)	(Zip Code)

(212) 578-9500

(Registrant’s telephone number, including area code)

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

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

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

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

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

At May 13, 2015, 3,000 shares of the registrant’s common stock, $25,000 par value per share, were outstanding, all of which were owned directly by MetLife, Inc.

REDUCED DISCLOSURE FORMAT

The registrant meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is, therefore, filing this Form 10-Q with the reduced disclosure format.

Table of Contents

		Page
Part I — Financial Information
Item 1.	Financial Statements (at March 31, 2015 (Unaudited) and December 31, 2014 and for the Three Months Ended March 31, 2015 and 2014 (Unaudited))	3
	Interim Condensed Consolidated Balance Sheets	3
	Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)	4
	Interim Condensed Consolidated Statements of Stockholder’s Equity	5
	Interim Condensed Consolidated Statements of Cash Flows	6
	Notes to the Interim Condensed Consolidated Financial Statements:
	Note 1 — Business, Basis of Presentation and Summary of Significant Accounting Policies	7
	Note 2 — Segment Information	9
	Note 3 — Insurance	13
	Note 4 — Investments	15
	Note 5 — Derivatives	28
	Note 6 — Fair Value	41
	Note 7— Equity	61
	Note 8 — Other Expenses	63
	Note 9 — Contingencies, Commitments and Guarantees	63
	Note 10 — Related Party Transactions	65
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	68
Item 4.	Controls and Procedures	80
Part II — Other Information
Item 1.	Legal Proceedings	81
Item 1A.	Risk Factors	81
Item 6.	Exhibits	84
Signatures		85
Exhibit Index		E-1

As used in this Form 10-Q, “MetLife USA,” the “Company,” “we,” “our” and “us” refer to MetLife Insurance Company USA (formerly, MetLife Insurance Company of Connecticut), a Delaware corporation originally incorporated in Connecticut in 1863, and its subsidiaries. MetLife Insurance Company USA is a wholly-owned subsidiary of MetLife, Inc. (MetLife, Inc., together with its subsidiaries and affiliates, “MetLife”).

Note Regarding Forward-Looking Statements

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

Any or all forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining the actual future results of MetLife USA. These statements are based on current expectations and the current economic environment. They involve a number of risks and uncertainties that are difficult to predict. These statements are not guarantees of future performance. Actual results could differ materially from those expressed or implied in the forward-looking statements. Risks, uncertainties, and other factors that might cause such differences include the risks, uncertainties and other factors identified in MetLife Insurance Company USA’s filings with the U.S. Securities and Exchange Commission. These factors include: (1) difficult conditions in the global capital markets; (2) increased volatility and disruption of the capital and credit markets, which may affect our ability to meet liquidity needs and access capital, generate fee income and market-related revenue and finance statutory reserve requirements and may require us to pledge collateral or make payments related to declines in value of specified assets, including assets supporting risks ceded to certain affiliated captive reinsurers or hedging arrangements associated with those risks; (3) exposure to financial and capital market risks, including as a result of the disruption in Europe and possible withdrawal of one or more countries from the Euro zone; (4) impact on us of comprehensive financial services regulation reform, including regulation of MetLife, Inc. as a non-bank systemically important financial institution, or otherwise; (5) numerous rulemaking initiatives required or permitted by the Dodd-Frank Wall Street Reform and Consumer Protection Act which may impact how we conduct our business, including those compelling the liquidation of certain financial institutions; (6) regulatory, legislative or tax changes relating to our insurance or other operations that may affect the cost of, or demand for, our products or services, or increase the cost or administrative burdens of providing benefits to employees; (7) adverse results or other consequences from litigation, arbitration or regulatory investigations; (8) potential liquidity and other risks resulting from our participation in a securities lending program and other transactions; (9) investment losses and defaults, and changes to investment valuations; (10) changes in assumptions related to investment valuations, deferred policy acquisition costs, deferred sales inducements, value of business acquired or goodwill; (11) impairments of goodwill and realized losses or market value impairments to illiquid assets; (12) defaults on our mortgage loans; (13) the defaults or deteriorating credit of other financial institutions that could adversely affect us; (14) fluctuations in foreign currency exchange rates; (15) downgrades in our claims paying ability, financial strength ratings or those of MetLife, Inc.’s other insurance subsidiaries, or MetLife, Inc.’s credit ratings; (16) an inability of MetLife, Inc. to access its credit facilities; (17) availability and effectiveness of reinsurance or indemnification arrangements, as well as any default or failure of counterparties to perform; (18) differences between actual claims experience and underwriting and reserving assumptions; (19) ineffectiveness of MetLife’s risk management policies and procedures; (20) catastrophe losses; (21) increasing cost and limited market capacity for statutory life insurance reserve financings; (22) heightened competition, including with respect to pricing, entry of new competitors, consolidation of distributors, the development of new products by new and existing competitors, and for personnel; (23) exposure to losses related to variable annuity guarantee benefits, including from significant and sustained downturns or extreme volatility in equity markets, reduced interest rates, unanticipated policyholder behavior, mortality or longevity, and the adjustment for nonperformance risk; (24) our ability to address difficulties, unforeseen liabilities, asset impairments, or rating agency actions arising from business acquisitions, and integrating and managing the growth of such acquired businesses, or arising from dispositions of businesses or legal entity reorganizations; (25) changes in accounting standards, practices and/or policies; (26) increased expenses relating to pension and postretirement benefit plans for employees and retirees of MetLife, Inc. and its subsidiaries, as well as health care and other employee benefits; (27) inability to protect our intellectual property rights or claims of infringement of the intellectual property rights of others; (28) inability to attract and retain sales representatives; (29) the effects of business disruption or economic contraction due to disasters such as terrorist attacks, cyberattacks, other hostilities, or natural catastrophes, including any related impact on the value of our investment portfolio, MetLife’s disaster recovery systems, cyber- or other information security systems and management continuity planning; (30) the effectiveness of MetLife’s programs and practices in avoiding giving associates incentives to take excessive risks; and (31) other risks and uncertainties described from time to time in MetLife Insurance Company USA’s filings with the U.S. Securities and Exchange Commission.

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

Note Regarding Reliance on Statements in Our Contracts

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

2

Part I — Financial Information

Item 1.  Financial Statements

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

Interim Condensed Consolidated Balance Sheets

March 31, 2015 (Unaudited) and December 31, 2014

(In millions, except share and per share data)

	March 31, 2015			December 31, 2014
Assets
Investments:
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $48,233 and $46,423, respectively)	$	53,065		$	50,697
Equity securities available-for-sale, at estimated fair value (cost: $422 and $400, respectively)	480			459
Mortgage loans (net of valuation allowances of $26 and $25, respectively; includes $272 and $280, respectively, at estimated fair value, relating to variable interest entities)	6,120			5,839
Policy loans	1,190			1,194
Real estate and real estate joint ventures (includes $46 and $93 respectively, of real estate held-for-sale)	819			894
Other limited partnership interests	2,244			2,234
Short-term investments, principally at estimated fair value	3,321			1,232
Other invested assets, principally at estimated fair value	5,209			4,531
Total investments	72,448			67,080
Cash and cash equivalents, principally at estimated fair value	827			1,206
Accrued investment income (includes $1 and $2, respectively, relating to variable interest entities)	526			501
Premiums, reinsurance and other receivables	21,978			21,559
Deferred policy acquisition costs and value of business acquired	4,811			4,890
Current income tax recoverable	498			537
Goodwill	381			381
Other assets	839			848
Separate account assets	110,014			108,861
Total assets	$	212,322		$	205,863
Liabilities and Stockholder’s Equity
Liabilities
Future policy benefits	$	29,073		$	28,479
Policyholder account balances	35,506			35,486
Other policy-related balances	3,426			3,320
Payables for collateral under securities loaned and other transactions	9,394			7,501
Long-term debt (includes $132 and $139, respectively, at estimated fair value, relating to variable interest entities)	921			928
Deferred income tax liability	1,575			1,338
Other liabilities (includes $1 and $1, respectively, relating to variable interest entities)	9,828			7,944
Separate account liabilities	110,014			108,861
Total liabilities	199,737			193,857
Contingencies, Commitments and Guarantees (Note 9)
Stockholder’s Equity
Common stock, par value $25,000 per share; 4,000 shares authorized; 3,000 shares issued and outstanding, respectively	75			75
Additional paid-in capital	10,856			10,855
Retained earnings (deficit)	(1,066		)	(1,350		)
Accumulated other comprehensive income (loss)	2,720			2,426
Total stockholder’s equity	12,585			12,006
Total liabilities and stockholder’s equity	$	212,322		$	205,863

See accompanying notes to the interim condensed consolidated financial statements.

3

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

For the Three Months Ended March 31, 2015 and 2014 (Unaudited)

(In millions)

	Three Months   Ended   March 31,
	2015			2014
Revenues
Premiums	$	283		$	178
Universal life and investment-type product policy fees	718			805
Net investment income	635			735
Other revenues	120			142
Net investment gains (losses):
Other-than-temporary impairments on fixed maturity securities	(2		)	(1		)
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss)	(1		)	—
Other net investment gains (losses)	45			(505		)
Total net investment gains (losses)	42			(506		)
Net derivative gains (losses)	85			(150		)
Total revenues	1,883			1,204
Expenses
Policyholder benefits and claims	592			568
Interest credited to policyholder account balances	257			269
Other expenses	647			677
Total expenses	1,496			1,514
Income (loss) before provision for income tax	387			(310		)
Provision for income tax expense (benefit)	103			(111		)
Net income (loss)	$	284		$	(199	)
Comprehensive income (loss)	$	578		$	483

See accompanying notes to the interim condensed consolidated financial statements.

4

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

Interim Condensed Consolidated Statements of Stockholder’s Equity

For the Three Months Ended March 31, 2015 and 2014 (Unaudited)

(In millions)

	Common Stock		Additional Paid-in Capital		Retained Earnings (Deficit)			Accumulated Other Comprehensive Income (Loss)		Total Stockholder's Equity
Balance at December 31, 2014	$	75	$	10,855	$	(1,350	)	$	2,426	$	12,006
Capital contribution			1							1
Net income (loss)					284					284
Other comprehensive income (loss), net of income tax								294		294
Balance at March 31, 2015	$	75	$	10,856	$	(1,066	)	$	2,720	$	12,585
	Common Stock		Additional Paid-in Capital		Retained Earnings (Deficit)			Accumulated Other Comprehensive Income (Loss)		Total Stockholder's Equity
Balance at December 31, 2013	$	86	$	11,506	$	(1,006	)	$	980	$	11,566
Dividend paid to MetLife, Inc.					(77		)			(77		)
Capital contribution			3							3
Net income (loss)					(199		)			(199		)
Other comprehensive income (loss), net of income tax								682		682
Balance at March 31, 2014	$	86	$	11,509	$	(1,282	)	$	1,662	$	11,975

See accompanying notes to the interim condensed consolidated financial statements.

5

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

Interim Condensed Consolidated Statements of Cash Flows

For the Three Months Ended March 31, 2015 and 2014 (Unaudited)

(In millions)

	Three Months   Ended   March 31,
	2015			2014
Net cash provided by (used in) operating activities	$	825		$	982
Cash flows from investing activities
Sales, maturities and repayments of:
Fixed maturity securities	7,427			4,603
Equity securities	7			14
Mortgage loans	123			807
Real estate and real estate joint ventures	103			1
Other limited partnership interests	37			37
Purchases of:
Fixed maturity securities	(7,681		)	(5,189		)
Equity securities	(27		)	(9		)
Mortgage loans	(435		)	(126		)
Real estate and real estate joint ventures	(5		)	(89		)
Other limited partnership interests	(47		)	(62		)
Cash received in connection with freestanding derivatives	59			45
Cash paid in connection with freestanding derivatives	(259		)	(345		)
Cash received under repurchase agreements (Note 4)	199			—
Cash paid under reverse repurchase agreements (Note 4)	(199		)	—
Net change in policy loans	4			5
Net change in short-term investments	(2,088		)	214
Net change in other invested assets	22			28
Net cash provided by (used in) investing activities	(2,760		)	(66		)
Cash flows from financing activities
Policyholder account balances:
Deposits	4,546			4,464
Withdrawals	(4,840		)	(5,007		)
Net change in payables for collateral under securities loaned and other transactions	1,893			1,423
Long-term debt repaid	(7		)	(459		)
Financing element on certain derivative instruments	(37		)	(58		)
Dividends paid to MetLife, Inc.	—			(77		)
Net cash provided by (used in) financing activities	1,555			286
Effect of change in foreign currency exchange rates on cash and cash equivalents balances	1			8
Change in cash and cash equivalents	(379		)	1,210
Cash and cash equivalents, beginning of period	1,206			1,400
Cash and cash equivalents, end of period	$	827		$	2,610
Supplemental disclosures of cash flow information
Net cash paid (received) for:
Interest	$	2		$	21
Income tax	$	1		$	2
Non-cash transactions:
Capital contributions from MetLife, Inc.	$	1		$	3
Transfer of fixed maturity securities to affiliates	$	—		$	333

See accompanying notes to the interim condensed consolidated financial statements.

6

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited)

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

Business

“MetLife USA” and the “Company” refer to MetLife Insurance Company USA (formerly, MetLife Insurance Company of Connecticut (“MICC”)), a Delaware corporation originally incorporated in Connecticut in 1863, and its subsidiaries. MetLife Insurance Company USA is a wholly-owned subsidiary of MetLife, Inc. (MetLife, Inc., together with its subsidiaries and affiliates, “MetLife”). The Company offers individual annuities, individual life insurance, and institutional protection and asset accumulation products.

In November 2014, MetLife Insurance Company of Connecticut re-domesticated from Connecticut to Delaware, changed its name to MetLife Insurance Company USA and merged with its subsidiary, MetLife Investors USA Insurance Company (“MLI-USA”), and its affiliate, MetLife Investors Insurance Company, each a U.S. insurance company that issued variable annuity products in addition to other products, and Exeter Reassurance Company, Ltd., a former offshore, reinsurance subsidiary of MetLife, Inc. and affiliate of MICC that mainly reinsured guarantees associated with variable annuity products (the “Mergers”). The surviving entity of the Mergers was MetLife USA. The Mergers represent a transaction among entities under common control and have been accounted for in a manner similar to the pooling-of-interests method, which requires that the merged entities be combined at their historical cost. The Company’s consolidated financial statements and related footnotes are presented as if the transaction occurred at the beginning of the earliest date presented and the prior periods have been retrospectively adjusted. See Note 3 of the Notes to the Consolidated Financial Statements included in MetLife Insurance Company USA’s Annual Report on Form 10‑K for the year ended December 31, 2014 (the “2014 Annual Report”) for further information on the Mergers.

The Company is organized into two segments: Retail and Corporate Benefit Funding.

Basis of Presentation

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

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

The Company uses the equity method of accounting for equity securities when it has significant influence or at least 20% interest and for real estate joint ventures and other limited partnership interests (“investees”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations, but does not have a controlling financial interest. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. The Company uses the cost method of accounting for investments in which it has virtually no influence over the investee’s operations.

Certain amounts in the prior year periods’ interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform with the 2015 presentation as discussed throughout the Notes to the Interim Condensed Consolidated Financial Statements.

Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone entity.

The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2014 consolidated balance sheet data was derived from audited consolidated financial statements included in the 2014 Annual Report, which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2014 Annual Report.

7

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

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

Adoption of New Accounting Pronouncements

Effective January 1, 2015, the Company adopted guidance requiring repurchase-to-maturity transactions and repurchase financing arrangements to be accounted for as secured borrowings and providing for enhanced disclosures, including the nature of collateral pledged and the time to maturity. Certain interim period disclosures for repurchase agreements and securities lending transactions are not required until the second quarter of 2015. The adoption of this new guidance did not have a material impact on the Company’s consolidated financial statements.

Future Adoption of New Accounting Pronouncements

In May, 2015, the Financial Accounting Standards Board (“FASB”) issued new guidance on fair value measurement (Accounting Standards Update (“ASU”) 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)), effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years and which should be applied retrospectively to all periods presented. Earlier application is permitted. The new amendments in this ASU remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value (“NAV”) per share practical expedient. In addition, the amendments remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In April 2015, the FASB issued new guidance on accounting for fees paid in a cloud computing arrangement (ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement), effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption of the new guidance is permitted and an entity can elect to adopt the guidance either: (1) prospectively to all arrangements entered into or materially modified after the effective date; or (2) retrospectively. The new guidance provides that all software licenses included in cloud computing arrangements be accounted for consistent with other licenses of intangible assets. However, if a cloud computing arrangement does not include a software license, the arrangement should be accounted for as a service contract, the accounting for which did not change. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In April 2015, the FASB issued new guidance on the presentation of debt issuance costs (ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs), effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years and should be applied retrospectively to all periods presented. Early adoption of the new guidance is permitted for financial statements that have not been previously issued. The new guidance will require that debt issuance costs be presented in the balance sheet as a direct deduction from the related debt liability rather than as an asset, consistent with debt discounts. However, the current recognition and measurement guidance for debt issuance costs are not affected by the new guidance. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In February 2015, the FASB issued new guidance to improve consolidation guidance for legal entities (ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis), effective for fiscal years beginning after December 15, 2015 and interim periods within those years and early adoption is permitted. The new standard is intended to improve targeted areas of the consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures. The amendments in this ASU affect the consolidation evaluation for reporting organizations. In addition, the amendments in this ASU simplify and improve current GAAP by reducing the number of consolidation models. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In May 2014, the FASB issued a comprehensive new revenue recognition standard (ASU 2014‑09, Revenue from Contracts with Customers (Topic 606)), effective retrospectively for fiscal years beginning after December 15, 2016 and interim periods within those years. Early adoption of this standard is not permitted. The new guidance will supersede nearly all existing revenue recognition guidance under GAAP; however, it will not impact the accounting for insurance contracts, leases, financial instruments and guarantees. For those contracts that are impacted by the new guidance, the guidance will require an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

8

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

2. Segment Information

The Company is organized into two segments: Retail and Corporate Benefit Funding. In addition, the Company reports certain of its results of operations in Corporate & Other. As anticipated, in the first quarter of 2015, the Company implemented certain segment reporting changes related to the measurement of segment operating earnings, which included revising the Company’s capital allocation methodology. These changes were applied retrospectively and did not have an impact on total consolidated operating earnings or net income.

Retail

The Retail segment offers a broad range of protection products and a variety of annuities primarily to individuals, and is organized into two businesses: Annuities and Life & Other. Annuities includes a variety of variable, fixed and equity index-linked annuities which provide for both asset accumulation and asset distribution needs. Life & Other insurance products and services include variable life, universal life, term life and whole life products, as well as individual disability income products. Additionally, through broker-dealer affiliates, the Company offers a full range of mutual funds and other securities products.

Corporate Benefit Funding

The Corporate Benefit Funding segment offers a broad range of annuity and investment products, including guaranteed interest products and other stable value products, income annuities, and separate account contracts for the investment management of defined benefit and defined contribution plan assets. This segment also includes structured settlements and certain products to fund company-, bank- or trust-owned life insurance used to finance non-qualified benefit programs for executives.

Corporate & Other

Corporate & Other contains the excess capital not allocated to the segments, run-off businesses, the Company’s ancillary international operations, ancillary U.S. direct business sold direct to consumer, and interest expense related to the majority of the Company’s outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues. Corporate & Other also includes assumed reinsurance of certain variable annuity products from a former affiliated operating joint venture in Japan. Under this in-force reinsurance agreement, the Company reinsures living and death benefit guarantees issued in connection with variable annuity products. Additionally, Corporate & Other includes a reinsurance agreement to assume certain blocks of indemnity reinsurance from an affiliate. These reinsurance agreements were recaptured effective November 1, 2014. Corporate & Other also includes the elimination of intersegment amounts.

Financial Measures and Segment Accounting Policies

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

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

Operating revenues and operating expenses exclude results of discontinued operations and other businesses that have been or will be sold or exited by the Company and are referred to as divested businesses. Operating revenues also excludes net investment gains (losses) and net derivative gains (losses). Operating expenses also excludes goodwill impairments.

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

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

• Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain 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.

9

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

2. Segment Information (continued)

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

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

• Interest credited to policyholder account balances includes adjustments for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment and 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;

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

• Other expenses excludes costs related to: (i) implementation of new insurance regulatory requirements, and (ii) acquisition and integration costs.

Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for the three months endedMarch 31, 2015 and 2014. The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for operating earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below.

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

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

Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company’s consolidated net investment income, operating earnings or net income (loss).

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

10

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

2. Segment Information (continued)

	Operating Results
Three Months Ended March 31, 2015	Retail			Corporate Benefit Funding		Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	271		$	4	$	8		$	283		$	—		$	283
Universal life and investment-type product policy fees	643			9		—			652			66			718
Net investment income	504			218		(26		)	696			(61		)	635
Other revenues	118			1		1			120			—			120
Net investment gains (losses)	—			—		—			—			42			42
Net derivative gains (losses)	—			—		—			—			85			85
Total revenues	1,536			232		(17		)	1,751			132			1,883
Expenses
Policyholder benefits and claims	385			97		21			503			89			592
Interest credited to policyholder account balances	228			28		—			256			1			257
Capitalization of DAC	(74		)	—		(25		)	(99		)	—			(99		)
Amortization of DAC and VOBA	164			—		7			171			24			195
Interest expense on debt	—			—		17			17			1			18
Other expenses	472			12		49			533			—			533
Total expenses	1,175			137		69			1,381			115			1,496
Provision for income tax expense (benefit)	98			33		(34		)	97			6			103
Operating earnings	$	263		$	62	$	(52	)	273
Adjustments to:
Total revenues									132
Total expenses									(115		)
Provision for income tax (expense) benefit									(6		)
Net income (loss)									$	284					$	284

11

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

2. Segment Information (continued)

	Operating Results
Three Months Ended March 31, 2014	Retail			Corporate Benefit Funding (1)			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	229		$	(65	)	$	14		$	178		$	—		$	178
Universal life and investment-type product policy fees	669			8			45			722			83			805
Net investment income	502			237			(24		)	715			20			735
Other revenues	141			1			—			142			—			142
Net investment gains (losses)	—			—			—			—			(506		)	(506		)
Net derivative gains (losses)	—			—			—			—			(150		)	(150		)
Total revenues	1,541			181			35			1,757			(553		)	1,204
Expenses
Policyholder benefits and claims	389			26			13			428			140			568
Interest credited to policyholder account balances	238			31			—			269			—			269
Capitalization of DAC	(60		)	—			(16		)	(76		)	—			(76		)
Amortization of DAC and VOBA	193			1			8			202			71			273
Interest expense on debt	2			—			17			19			18			37
Other expenses	416			7			15			438			5			443
Total expenses	1,178			65			37			1,280			234			1,514
Provision for income tax expense (benefit)	103			41			(3		)	141			(252		)	(111		)
Operating earnings	$	260		$	75		$	1		336
Adjustments to:
Total revenues										(553		)
Total expenses										(234		)
Provision for income tax (expense) benefit										252
Net income (loss)										$	(199	)				$	(199	)

____________

(1) Premiums and policyholder benefits and claims both include ($87) million of ceded reinsurance with Metropolitan Life Insurance Company (“MLIC”). See Note 10.

12

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

2. Segment Information (continued)

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

	March 31, 2015		December 31, 2014
	(In millions)
Retail	$	175,865	$	173,657
Corporate Benefit Funding	25,794		25,312
Corporate & Other	10,663		6,894
Total	$	212,322	$	205,863

3.  Insurance

Guarantees

As discussed in Notes 1 and 5 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report, the Company issues variable annuity products with guaranteed minimum benefits. The non-life contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”) and the portion of certain GMIBs that does not require annuitization are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 5.

Based on the type of guarantee, the Company defines net amount at risk as listed below.

Variable Annuity Guarantees

In the Event of Death

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

At Annuitization

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

13

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

3. Insurance (continued)

Universal and Variable Life Contracts

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

Information regarding the types of guarantees relating to annuity contracts and universal and variable life contracts was as follows at: 

	March 31, 2015				December 31, 2014
	In the Event of Death		At Annuitization		In the Event of Death		At Annuitization
	(In millions)
Annuity Contracts (1)
Variable Annuity Guarantees
Total contract account value	$	113,275	$	65,009	$	112,298	$	64,550
Separate account value	$	108,287	$	63,694	$	107,261	$	63,206
Net amount at risk	$	2,933	$	1,487	$	3,151	$	1,297
Average attained age of contractholders	66 years		66 years		65 years		65 years

	March 31, 2015		December 31, 2014
	Secondary Guarantees
	(In millions)
Universal and Variable Life Contracts (1)
Account value (general and separate account)	$	6,765	$	6,702
Net amount at risk	$	91,098	$	91,204
Average attained age of policyholders	59 years		59 years

____________

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

14

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

4.  Investments

Fixed Maturity and Equity Securities Available-for-Sale

Fixed Maturity and Equity Securities Available-for-Sale by Sector

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

	March 31, 2015											December 31, 2014
	Cost or Amortized Cost		Gross Unrealized							Estimated Fair Value		Cost or Amortized Cost		Gross Unrealized							Estimated Fair Value
			Gains		Temporary Losses		OTTI Losses							Gains		Temporary Losses		OTTI Losses
	(In millions)
Fixed maturity securities
U.S. corporate	$	15,716	$	1,795	$	106	$	—		$	17,405	$	15,286	$	1,635	$	119	$	—		$	16,802
U.S. Treasury and agency	12,335		1,974		12		—			14,297		14,147		1,686		7		—			15,826
RMBS	8,459		328		32		32			8,723		5,858		291		33		35			6,081
Foreign corporate	5,190		327		84		—			5,433		5,162		310		58		—			5,414
State and political subdivision	2,213		449		1		—			2,661		2,180		413		1		—			2,592
CMBS (1)	1,757		54		2		(1		)	1,810		1,637		45		4		(1		)	1,679
ABS	1,948		27		5		—			1,970		1,546		26		10		—			1,562
Foreign government	615		152		1		—			766		607		136		2		—			741
Total fixed maturity securities	$	48,233	$	5,106	$	243	$	31		$	53,065	$	46,423	$	4,542	$	234	$	34		$	50,697
Equity securities
Common stock	$	197	$	57	$	3	$	—		$	251	$	176	$	60	$	3	$	—		$	233
Non-redeemable preferred stock	225		13		9		—			229		224		9		7		—			226
Total equity securities	$	422	$	70	$	12	$	—		$	480	$	400	$	69	$	10	$	—		$	459

______________

(1) The noncredit loss component of other-than-temporary impairment (“OTTI”) losses for CMBS was in an unrealized gain position of $1 million at both March 31, 2015 and December 31, 2014, due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).”

The Company held non-income producing fixed maturity securities with an estimated fair value of $18 million and $14 million with unrealized gains (losses) of $4 million and $4 million at March 31, 2015 and December 31, 2014, respectively.

Maturities of Fixed Maturity Securities

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at March 31, 2015:

	Due in One Year or Less		Due After One Year Through Five Years		Due After Five Years Through Ten Years		Due After Ten Years		Structured Securities		Total Fixed Maturity Securities
	(In millions)
Amortized cost	$	3,081	$	10,178	$	7,520	$	15,290	$	12,164	$	48,233
Estimated fair value	$	3,108	$	10,611	$	7,973	$	18,870	$	12,503	$	53,065

Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured securities (RMBS, CMBS and ABS) are shown separately, as they are not due at a single maturity.

15

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

4. Investments (continued)

Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities AFS by Sector

The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position.

	March 31, 2015								December 31, 2014
	Less than 12 Months				Equal to or Greater than 12 Months				Less than 12 Months				Equal to or Greater than 12 Months
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(In millions, except number of securities)
Fixed maturity securities
U.S. corporate	$	1,094	$	37	$	428	$	69	$	1,346	$	45	$	685	$	74
U.S. Treasury and agency	1,929		12		—		—		4,067		5		163		2
RMBS	926		13		485		51		684		26		530		42
Foreign corporate	1,033		73		117		11		1,031		49		133		9
State and political subdivision	14		1		20		—		11		—		24		1
CMBS	114		1		22		—		124		1		78		2
ABS	325		1		178		4		334		2		231		8
Foreign government	14		1		3		—		27		1		9		1
Total fixed maturity securities	$	5,449	$	139	$	1,253	$	135	$	7,624	$	129	$	1,853	$	139
Equity securities
Common stock	$	16	$	3	$	—	$	—	$	11	$	3	$	—	$	—
Non-redeemable preferred stock	12		2		43		7		28		1		44		6
Total equity securities	$	28	$	5	$	43	$	7	$	39	$	4	$	44	$	6
Total number of securities in an unrealized loss position	625				292				752				333

Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities

As described more fully in Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report, the Company performs a regular evaluation of all investment classes for impairment, including fixed maturity securities, equity securities and perpetual hybrid securities, in accordance with its impairment policy, in order to evaluate whether such investments are other-than-temporarily impaired.

Current Period Evaluation

Based on the Company’s current evaluation of its AFS securities in an unrealized loss position in accordance with its impairment policy, and the Company’s current intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities, the Company concluded that these securities were not other-than-temporarily impaired at March 31, 2015. Future OTTI will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), changes in credit ratings, collateral valuation, interest rates and credit spreads. If economic fundamentals deteriorate or if there are adverse changes in the above factors, OTTI may be incurred in upcoming periods.

Gross unrealized losses on fixed maturity securities increased $6 million during the three months endedMarch 31, 2015 to $274 million. The increase in gross unrealized losses for the three months endedMarch 31, 2015 was primarily attributable to the impact of weakening foreign currencies on non-functional currency denominated fixed maturity securities.

At March 31, 2015, $48 million of the total $274 million of gross unrealized losses were from 12 fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for six months or greater.

Investment Grade Fixed Maturity Securities

Of the $48 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $29 million, or 60%, were related to gross unrealized losses on six investment grade fixed maturity securities. Unrealized losses on investment grade fixed maturity securities are principally related to widening credit spreads and, with respect to fixed-rate fixed maturity securities, rising interest rates since purchase.

16

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

4. Investments (continued)

Below Investment Grade Fixed Maturity Securities

Of the $48 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $19 million, or 40%, were related to gross unrealized losses on six below investment grade fixed maturity securities. Unrealized losses on below investment grade fixed maturity securities are principally related to non-agency RMBS (primarily alternative residential mortgage loans) and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainties including concerns over valuations of residential real estate supporting non-agency RMBS. Management evaluates non-agency RMBS based on actual and projected cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security.

Equity Securities

Gross unrealized losses on equity securities increased $2 million during the three months endedMarch 31, 2015 to $12 million. Of the $12 million, $5 million were from two securities with gross unrealized losses of 20% or more of cost for 12 months or greater. Of the $5 million, 40% were from securities rated A or better, and all were from financial services industry investment grade non-redeemable preferred stock securities.

Mortgage Loans

Mortgage Loans by Portfolio Segment

Mortgage loans are summarized as follows at:

	March 31, 2015					December 31, 2014
	Carrying Value			% of Total		Carrying Value			% of Total
	(In millions)					(In millions)
Mortgage loans:
Commercial	$	4,550		74.4	%	$	4,281		73.3	%
Agricultural	1,324			21.6		1,303			22.3
Subtotal	5,874			96.0		5,584			95.6
Valuation allowances	(26		)	(0.4	)	(25		)	(0.4	)
Subtotal mortgage loans, net	5,848			95.6		5,559			95.2
Commercial mortgage loans held by CSEs - fair value option ("FVO")	272			4.4		280			4.8
Total mortgage loans, net	$	6,120		100.0	%	$	5,839		100.0	%

See “— Variable Interest Entities” for discussion of consolidated securitization entities (“CSEs”).

See “— Related Party Investment Transactions” for discussion of related party mortgage loans.

17

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

4. Investments (continued)

Information on commercial and agricultural mortgage loans is presented in the tables below. Information on commercial mortgage loans held by CSEs - FVO is presented in Note 6. The Company elects the FVO for certain commercial mortgage loans and related long-term debt that are managed on a total return basis.

Mortgage Loans, Valuation Allowance and Impaired Loans by Portfolio Segment

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

	Evaluated Individually for Credit Losses										Evaluated Collectively for Credit Losses				Impaired Loans
	Impaired Loans with a Valuation Allowance						Impaired Loans without a Valuation Allowance
	Unpaid Principal Balance		Recorded Investment		Valuation Allowances		Unpaid Principal Balance		Recorded Investment		Recorded Investment		Valuation Allowances		Carrying Value
	(In millions)
March 31, 2015
Commercial	$	—	$	—	$	—	$	—	$	—	$	4,550	$	22	$	—
Agricultural	4		3		—		—		—		1,321		4		3
Total	$	4	$	3	$	—	$	—	$	—	$	5,871	$	26	$	3
December 31, 2014
Commercial	$	—	$	—	$	—	$	—	$	—	$	4,281	$	21	$	—
Agricultural	4		3		—		—		—		1,300		4		3
Total	$	4	$	3	$	—	$	—	$	—	$	5,581	$	25	$	3

The average recorded investment for impaired commercial and agricultural mortgage loans was $0 and $3 million, respectively, for the three months endedMarch 31, 2015; and $72 million and $4 million, respectively, for the three months endedMarch 31, 2014.

Valuation Allowance Rollforward by Portfolio Segment

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

	Three Months   Ended   March 31,
	2015						2014
	Commercial		Agricultural		Total		Commercial			Agricultural		Total
	(In millions)
Balance, beginning of period	$	21	$	4	$	25	$	31		$	4	$	35
Provision (release)	1		—		1		(1		)	—		(1		)
Balance, end of period	$	22	$	4	$	26	$	30		$	4	$	34

18

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

4. Investments (continued)

Credit Quality of Commercial Mortgage Loans

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

	Recorded Investment
	Debt Service Coverage Ratios								% of Total		Estimated Fair Value		% of Total
	> 1.20x		1.00x - 1.20x		< 1.00x		Total
	(In millions)										(In millions)
March 31, 2015
Loan-to-value ratios
Less than 65%	$	3,892	$	223	$	110	$	4,225	92.8	%	$	4,571	93.3	%
65% to 75%	207		24		—		231		5.1		235		4.8
76% to 80%	9		—		—		9		0.2		10		0.2
Greater than 80%	45		25		15		85		1.9		83		1.7
Total	$	4,153	$	272	$	125	$	4,550	100.0	%	$	4,899	100.0	%
December 31, 2014
Loan-to-value ratios
Less than 65%	$	3,668	$	267	$	125	$	4,060	94.8	%	$	4,431	95.1	%
65% to 75%	113		14		—		127		3.0		134		2.9
76% to 80%	9		—		—		9		0.2		10		0.2
Greater than 80%	45		26		14		85		2.0		83		1.8
Total	$	3,835	$	307	$	139	$	4,281	100.0	%	$	4,658	100.0	%

Credit Quality of Agricultural Mortgage Loans

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

	March 31, 2015				December 31, 2014
	Recorded Investment		% of Total		Recorded Investment		% of Total
	(In millions)				(In millions)
Loan-to-value ratios
Less than 65%	$	1,207	91.2	%	$	1,239	95.1	%
65% to 75%	117		8.8		64		4.9
Total	$	1,324	100.0	%	$	1,303	100.0	%

The estimated fair value of agricultural mortgage loans was $1.4 billion at both March 31, 2015 and December 31, 2014.

Past Due and Interest Accrual Status of Mortgage Loans

The Company has a high quality, well performing mortgage loan portfolio, with over 99% of all mortgage loans classified as performing at both March 31, 2015 and December 31, 2014. The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial mortgage loans — 60 days and agricultural mortgage loans — 90 days. The Company had no mortgage loans past due and no mortgage loans in non-accrual status at March 31, 2015 and December 31, 2014, respectively.

Mortgage Loans Modified in a Troubled Debt Restructuring

For a small portion of the mortgage loan portfolio, classified as troubled debt restructurings, concessions are granted related to borrowers experiencing financial difficulties. Generally, the types of concessions include: reduction of the contractual interest rate, extension of the maturity date at an interest rate lower than current market interest rates, and/or a reduction of accrued interest. The amount, timing and extent of the concession granted is considered in determining any impairment or changes in the specific valuation allowance. There were no mortgage loans modified in a troubled debt restructuring during the three months endedMarch 31, 2015 and 2014.

19

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

4. Investments (continued)

Cash Equivalents

The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $245 million and $681 million at March 31, 2015 and December 31, 2014, respectively.

Net Unrealized Investment Gains (Losses)

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

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

	March 31, 2015			December 31, 2014
	(In millions)
Fixed maturity securities	$	4,858		$	4,311
Fixed maturity securities with noncredit OTTI losses in AOCI	(31		)	(34		)
Total fixed maturity securities	4,827			4,277
Equity securities	77			69
Derivatives	376			282
Other	13			9
Subtotal	5,293			4,637
Amounts allocated from:
Future policy benefits	(712		)	(503		)
DAC and VOBA related to noncredit OTTI losses recognized in AOCI	(1		)	(2		)
DAC, VOBA and DSI	(390		)	(403		)
Subtotal	(1,103		)	(908		)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	11			12
Deferred income tax benefit (expense)	(1,468		)	(1,308		)
Net unrealized investment gains (losses)	$	2,733		$	2,433

The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows:

	Three Months   Ended   March 31, 2015			Year   Ended   December 31, 2014
	(In millions)
Balance, beginning of period	$	(34	)	$	(45	)
Noncredit OTTI losses and subsequent changes recognized	1			6
Securities sold with previous noncredit OTTI loss	2			9
Subsequent changes in estimated fair value	—			(4		)
Balance, end of period	$	(31	)	$	(34	)

20

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

4. Investments (continued)

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

	Three Months   Ended   March 31, 2015
	(In millions)
Balance, beginning of period	$	2,433
Fixed maturity securities on which noncredit OTTI losses have been recognized	3
Unrealized investment gains (losses) during the period	653
Unrealized investment gains (losses) relating to:
Future policy benefits	(209		)
DAC and VOBA related to noncredit OTTI losses recognized in AOCI	1
DAC, VOBA and DSI	13
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	(1		)
Deferred income tax benefit (expense)	(160		)
Balance, end of period	$	2,733
Change in net unrealized investment gains (losses)	$	300

Concentrations of Credit Risk

There were no investments in any counterparty that were greater than 10% of the Company’s stockholder’s equity, other than the U.S. government and its agencies, at both March 31, 2015 and December 31, 2014.

Securities Lending

Elements of the securities lending program are presented below at:

	March 31, 2015		December 31, 2014
	(In millions)
Securities on loan: (1)
Amortized cost	$	6,488	$	5,748
Estimated fair value	$	7,664	$	6,703
Cash collateral on deposit from counterparties (2)	$	7,727	$	6,781
Security collateral on deposit from counterparties (3)	$	98	$	60
Reinvestment portfolio — estimated fair value	$	7,804	$	6,846

____________

(1) Included within fixed maturity securities and short-term investments. At March 31, 2015, both amortized cost and estimated fair value also include $26 million, at estimated fair value, of securities which are not reflected in the consolidated financial statements.

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

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

Repurchase Agreement Transactions

Commencing in the first quarter of 2015, the Company began participating in short-term repurchase agreements and reverse repurchase agreements with unaffiliated financial institutions. Under these agreements, the Company lends fixed maturity securities, and contemporaneously borrows other fixed maturity securities (e.g., repurchase and reverse repurchase, respectively). The Company accounted for these transactions as collateralized borrowing and lending. The amount of fixed maturity securities lent and borrowed, at estimated fair value, was $516 million and $505 million, respectively, at March 31, 2015. Securities loaned under such transactions may be sold or re-pledged by the transferee. Securities borrowed under such transactions may be re-pledged and are not reflected in the consolidated financial statements. The amount of borrowed securities which were re-pledged was $117 million, at estimated fair value, at March 31, 2015. Net interest expense related to these transactions included in net investment income was less than $1 million for the three months ended March 31, 2015.

21

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

4. Investments (continued)

The Company has elected to offset amounts recognized as receivables and payables resulting from these transactions. The gross amounts of the receivables and payables related to these transactions at March 31, 2015 were both $499 million. After the effect of offsetting of $499 million, the net amount presented in the consolidated balance sheet at March 31, 2015 was a liability of less than $1 million. Amounts owed to and due from counterparties may be settled in cash or offset, in accordance with the agreements. Cash inflows and outflows for cash settlements are reported on the consolidated statements of cash flows.

See Note 5 for information regarding the estimated fair value of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral.

Invested Assets on Deposit, Held in Trust and Pledged as Collateral

Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value for all asset classes, except mortgage loans, which are presented at carrying value at:

	March 31, 2015		December 31, 2014
	(In millions)
Invested assets on deposit (regulatory deposits)	$	7,443	$	7,334
Invested assets held in trust (reinsurance agreements) (1)	957		936
Invested assets pledged as collateral (2)	3,591		3,174
Total invested assets on deposit, held in trust and pledged as collateral	$	11,991	$	11,444

____________

(1) The Company has held in trust certain investments, primarily fixed maturity securities, in connection with certain reinsurance transactions.

(2) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 5 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report) and derivative transactions (see Note 5).

See “— Securities Lending” for information regarding securities on loan.

Variable Interest Entities

The Company has invested in certain structured transactions (including CSEs) that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity.

The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. The Company generally uses a qualitative approach to determine whether it is the primary beneficiary. However, for VIEs that are investment companies or apply measurement principles consistent with those utilized by investment companies, the primary beneficiary is based on a risks and rewards model and is defined as the entity that will absorb a majority of a VIE’s expected losses, receive a majority of a VIE’s expected residual returns if no single entity absorbs a majority of expected losses, or both. The Company reassesses its involvement with VIEs on a quarterly basis. The use of different methodologies, assumptions and inputs in the determination of the primary beneficiary could have a material effect on the amounts presented within the consolidated financial statements.

22

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

4. Investments (continued)

Consolidated VIEs

The following table presents the total assets and total liabilities relating to VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at March 31, 2015 and December 31, 2014. Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment.

	March 31, 2015		December 31, 2014
	(In millions)
CSEs: (1)
Assets:
Mortgage loans (commercial mortgage loans)	$	272	$	280
Accrued investment income	1		2
Total assets	$	273	$	282
Liabilities:
Long-term debt	$	132	$	139
Other liabilities	1		1
Total liabilities	$	133	$	140

____________

(1) The Company consolidates entities that are structured as CMBS. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company’s exposure was limited to that of its remaining investment in these entities of $122 million and $123 million at estimated fair value at March 31, 2015 and December 31, 2014, respectively. The long-term debt bears interest primarily at fixed rates ranging from 2.25% to 5.57%, payable primarily on a monthly basis. Interest expense related to these obligations, included in other expenses, was $1 million and $18 million for the three months endedMarch 31, 2015 and 2014, respectively.

Unconsolidated VIEs

The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at:

	March 31, 2015				December 31, 2014
	Carrying Amount		Maximum Exposure to Loss (1)		Carrying Amount		Maximum Exposure to Loss (1)
	(In millions)
Fixed maturity securities AFS:
Structured securities (RMBS, CMBS and ABS) (2)	$	12,503	$	12,503	$	9,322	$	9,322
U.S. and foreign corporate	541		541		526		526
Other limited partnership interests	1,767		2,156		1,774		2,162
Real estate joint ventures	47		51		47		51
Other invested assets	41		46		37		47
Equity securities AFS:
Non-redeemable preferred stock	18		18		19		19
Total	$	14,917	$	15,315	$	11,725	$	12,127

____________

(1) The maximum exposure to loss relating to fixed maturity and equity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of less than $1 million at both March 31, 2015 and December 31, 2014. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee.

(2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity.

23

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

4. Investments (continued)

As described in Note 9, the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs during the three months endedMarch 31, 2015 and 2014.

Net Investment Income

The components of net investment income were as follows:

	Three Months   Ended   March 31,
	2015		2014
	(In millions)
Investment income:
Fixed maturity securities	$	487	$	521
Equity securities	4		4
Mortgage loans	72		81
Policy loans	13		14
Real estate and real estate joint ventures	22		23
Other limited partnership interests	52		98
Cash, cash equivalents and short-term investments	2		1
Operating joint venture	2		—
Other	4		(3		)
Subtotal	658		739
Less: Investment expenses	27		26
Subtotal, net	631		713
FVO CSEs — interest income — commercial mortgage loans	4		22
Net investment income	$	635	$	735

See “— Variable Interest Entities” for discussion of CSEs.

See “— Related Party Investment Transactions” for discussion of affiliated net investment income and investment expenses.

24

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

4. Investments (continued)

Net Investment Gains (Losses)

Components of Net Investment Gains (Losses)

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

		Three Months   Ended   March 31,
		2015			2014
	(In millions)
Total gains (losses) on fixed maturity securities:
Total OTTI losses recognized — by sector and industry:
U.S. and foreign corporate securities — by industry:
Consumer		$	—		$	(1	)
Industrial		(1		)	—
Total U.S. and foreign corporate securities		(1		)	(1		)
RMBS		(2		)	—
OTTI losses on fixed maturity securities recognized in earnings		(3		)	(1		)
Fixed maturity securities — net gains (losses) on sales and disposals		25			16
Total gains (losses) on fixed maturity securities		22			15
Total gains (losses) on equity securities:
Equity securities — net gains (losses) on sales and disposals		(1		)	4
Total gains (losses) on equity securities		(1		)	4
Mortgage loans		(1		)	9
Real estate and real estate joint ventures		23			(2		)
Other limited partnership interests		(1		)	(2		)
Other investment portfolio gains (losses)		2			(1		)
Subtotal — investment portfolio gains (losses)		44			23
FVO CSEs :
Commercial mortgage loans		(3		)	1
Long-term debt — related to commercial mortgage loans		1			1
Non-investment portfolio gains (losses) (1)		—			(531		)
Subtotal FVO CSEs and non-investment portfolio gains (losses)		(2		)	(529		)
Total net investment gains (losses)		$	42		$	(506	)

____________

(1) Non-investment portfolio gains (losses) for the three months endedMarch 31, 2014 includes a loss of $547 million related to the disposition of MetLife Assurance Limited. See Note 4 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report.

See “— Variable Interest Entities” for discussion of CSEs.

See “— Related Party Investment Transactions” for discussion of affiliated net investment gains (losses) related to transfers of invested assets to affiliates.

Gains (losses) from foreign currency transactions included within net investment gains (losses) were $1 million and $16 million for the three months ended March 31, 2015 and 2014, respectively.

25

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

4. Investments (continued)

Sales or Disposals and Impairments of Fixed Maturity and Equity Securities

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

	Three Months   Ended   March 31,
	2015			2014			2015			2014
	Fixed Maturity Securities						Equity Securities
	(In millions)
Proceeds	$	7,984		$	3,617		$	2		$	11
Gross investment gains	$	48		$	39		$	—		$	4
Gross investment losses	(23		)	(23		)	(1		)	—
OTTI losses	(3		)	(1		)	—			—
Net investment gains (losses)	$	22		$	15		$	(1	)	$	4

26

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

4. Investments (continued)

Credit Loss Rollforward

The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still held for which a portion of the OTTI loss was recognized in other comprehensive income (loss) (“OCI”): 

	Three Months   Ended   March 31,
	2015			2014
	(In millions)
Balance, beginning of period	$	57		$	59
Additions:
Additional impairments — credit loss OTTI on securities previously impaired	2			—
Reductions:
Sales (maturities, pay downs or prepayments) during the period of securities previously impaired as credit loss OTTI	(2		)	(2		)
Increases in cash flows — accretion of previous credit loss OTTI	(1		)	—
Balance, end of period	$	56		$	57

Related Party Investment Transactions

The Company transfers invested assets, primarily consisting of fixed maturity securities, to and from affiliates. Invested assets transferred to and from affiliates were as follows:

	Three Months   Ended   March 31,
	2015		2014
	(In millions)
Estimated fair value of invested assets transferred to affiliates	$	—	$	354
Amortized cost of invested assets transferred to affiliates	$	—	$	333
Net investment gains (losses) recognized on transfers	$	—	$	21
Estimated fair value of invested assets transferred from affiliates	$	525	$	35

Below is a summary of certain affiliated loans, which are more fully described in Note 8 of the Notes of the Consolidated Financial Statements included in the 2014 Annual Report.

The Company has affiliated loans outstanding to wholly-owned real estate subsidiaries of an affiliate, MLIC, which are included in mortgage loans, with a carrying value of $242 million at both March 31, 2015 and December 31, 2014. These affiliated loans are secured by interests in the real estate subsidiaries, which own operating real estate with a fair value in excess of the loans. Net investment income from these affiliated loans was $3 million and $5 million for the three months endedMarch 31, 2015 and 2014, respectively.

The Company receives investment administrative services from an affiliate. The related investment administrative service charges were $17 million and $16 million for the three months endedMarch 31, 2015 and 2014, respectively.

27

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

5.  Derivatives

Accounting for Derivatives

Freestanding Derivatives

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

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

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

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

Hedge Accounting

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

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

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

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

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

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

28

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

5. Derivatives (continued)

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

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

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

Embedded Derivatives

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

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

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

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

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

See Note 6 for information about the fair value hierarchy for derivatives.

Derivative Strategies

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

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

29

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

5. Derivatives (continued)

Interest Rate Derivatives

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

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

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

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

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

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

Foreign Currency Exchange Rate Derivatives

The Company uses foreign currency swaps to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies. In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in fair value, cash flow and non-qualifying hedging relationships.

To a lesser extent, the Company uses foreign currency forwards and exchange-traded currency futures in non-qualifying hedging relationships.

30

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

5. Derivatives (continued)

Credit Derivatives

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

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

To a lesser extent, the Company uses credit forwards to lock in the price to be paid for forward purchases of certain securities. The Company utilizes credit forwards in cash flow hedging relationships.

Equity Derivatives

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

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

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

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

TRRs are swaps whereby the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and the London Interbank Offered Rate (“LIBOR”), calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. The Company uses TRRs to hedge its equity market guarantees in certain of its insurance products. TRRs can be used as hedges or to synthetically create investments. The Company utilizes TRRs in non-qualifying hedging relationships.

31

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

5. Derivatives (continued)

Primary Risks Managed by Derivatives

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

		March 31, 2015						December 31, 2014
	Primary Underlying Risk Exposure	Gross Notional Amount		Estimated Fair Value				Gross Notional Amount		Estimated Fair Value
				Assets		Liabilities				Assets		Liabilities
		(In millions)
Derivatives Designated as Hedging Instruments
Fair value hedges:
Interest rate swaps	Interest rate	$	369	$	42	$	2	$	379	$	33	$	2
Foreign currency swaps	Foreign currency exchange rate	—		—		—		—		—		—
Subtotal		369		42		2		379		33		2
Cash flow hedges:
Interest rate swaps	Interest rate	335		103		—		369		81		—
Interest rate forwards	Interest rate	130		48		—		155		45		—
Foreign currency swaps	Foreign currency exchange rate	768		107		5		728		56		9
Subtotal		1,233		258		5		1,252		182		9
Total qualifying hedges		1,602		300		7		1,631		215		11
Derivatives Not Designated or Not Qualifying as Hedging Instruments
Interest rate swaps	Interest rate	25,078		2,019		761		25,919		1,709		601
Interest rate floors	Interest rate	13,504		77		63		16,404		83		69
Interest rate caps	Interest rate	7,901		6		—		7,901		11		—
Interest rate futures	Interest rate	730		2		—		325		1		—
Interest rate options	Interest rate	18,870		694		1		29,870		446		16
Foreign currency swaps	Foreign currency exchange rate	751		81		1		672		59		4
Foreign currency forwards	Foreign currency exchange rate	49		6		—		48		3		—
Credit default swaps — purchased	Credit	45		—		1		45		—		1
Credit default swaps — written	Credit	1,851		30		1		1,924		29		1
Equity futures	Equity market	3,238		21		—		3,086		34		—
Equity index options	Equity market	30,631		881		639		27,212		854		613
Equity variance swaps	Equity market	15,283		118		450		15,433		120		435
TRRs	Equity market	2,408		6		56		2,332		12		67
Total non-designated or non-qualifying derivatives		120,339		3,941		1,973		131,171		3,361		1,807
Total		$	121,941	$	4,241	$	1,980	$	132,802	$	3,576	$	1,818

Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both March 31, 2015 and December 31, 2014. The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and that generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules; (ii) derivatives that economically hedge insurance liabilities that contain mortality or morbidity risk and that generally do not qualify for hedge accounting because the lack of these risks in the derivatives cannot support an expectation of a highly effective hedging relationship; (iii) derivatives that economically hedge embedded derivatives that do not qualify for hedge accounting because the changes in estimated fair value of the embedded derivatives are already recorded in net income; and (iv) written credit default swaps that are used to synthetically create credit investments and that do not qualify for hedge accounting because they do not involve a hedging relationship. For these non-qualified derivatives, changes in market factors can lead to the recognition of fair value changes on the statement of operations without an offsetting gain or loss recognized in earnings for the item being hedged.

32

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

5. Derivatives (continued)

Net Derivative Gains (Losses)

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

	Three Months   Ended   March 31,
	2015			2014
	(In millions)
Derivatives and hedging gains (losses) (1)	$	321		$	211
Embedded derivatives gains (losses)	(236		)	(361		)
Total net derivative gains (losses)	$	85		$	(150	)

____________

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

The following table presents earned income on derivatives:

	Three Months   Ended   March 31,
	2015		2014
	(In millions)
Qualifying hedges:
Net investment income	$	3	$	1
Interest credited to policyholder account balances	—		—
Non-qualifying hedges:
Net derivative gains (losses)	91		80
Policyholder benefits and claims	3		(9		)
Total	$	97	$	72

33

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

5. Derivatives (continued)

Non-Qualifying Derivatives and Derivatives for Purposes Other Than Hedging

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

	Net Derivative Gains (Losses)			Net Investment Income (1)			Policyholder Benefits and Claims (2)
	(In millions)
Three Months Ended March 31, 2015
Interest rate derivatives	$	401		$	—		$	11
Foreign currency exchange rate derivatives	35			—			—
Credit derivatives — written	1			—			—
Equity derivatives	(209		)	(1		)	(73		)
Total	$	228		$	(1	)	$	(62	)
Three Months Ended March 31, 2014
Interest rate derivatives	$	253		$	—		$	12
Foreign currency exchange rate derivatives	54			—			—
Credit derivatives — written	(2		)	—			—
Equity derivatives	(178		)	(3		)	(39		)
Total	$	127		$	(3	)	$	(27	)

____________

(1) Changes in estimated fair value related to economic hedges of equity method investments in joint ventures.

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

Fair Value Hedges

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

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

Derivatives in Fair Value Hedging Relationships	Hedged Items in Fair Value Hedging Relationships	Net Derivative Gains (Losses) Recognized for Derivatives			Net Derivative Gains (Losses) Recognized for Hedged Items			Ineffectiveness Recognized in Net Derivative Gains (Losses)
		(In millions)
Three Months Ended March 31, 2015
Interest rate swaps:	Fixed maturity securities	$	(1	)	$	1		$	—
	Policyholder liabilities (1)	9			(9		)	—
Foreign currency swaps:	Foreign-denominated policyholder account balances (2)	—			—			—
Total		$	8		$	(8	)	$	—
Three Months Ended March 31, 2014
Interest rate swaps:	Fixed maturity securities	$	—		$	—		$	—
	Policyholder liabilities (1)	9			(9		)	—
Foreign currency swaps:	Foreign-denominated policyholder account balances	1			(1		)	—
Total		$	10		$	(10	)	$	—

____________

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

(2) Fixed rate or floating rate liabilities.

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

34

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

5. Derivatives (continued)

Cash Flow Hedges

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

In certain instances, the Company discontinued cash flow hedge accounting because the forecasted transactions were no longer probable of occurring. Because certain of the forecasted transactions also were not probable of occurring within two months of the anticipated date, the Company reclassified certain amounts from AOCI into net derivative gains (losses). For the three months endedMarch 31, 2015, the amounts reclassified into net derivative gains (losses) related to such discontinued cash flow hedges were not significant. For the three months endedMarch 31, 2014, there were no amounts reclassified into net derivative gains (losses) related to such discontinued cash flow hedges.

At both March 31, 2015 and December 31, 2014, the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions did not exceed five years.

At March 31, 2015 and December 31, 2014, the balance in AOCI associated with cash flow hedges was $376 million and $282 million, respectively. 

The following table presents the effects of derivatives in cash flow hedging relationships on the consolidated statements of operations and comprehensive income (loss) and the consolidated statements of stockholder’s equity:

Derivatives in Cash Flow Hedging Relationships	Amount of Gains (Losses) Deferred in AOCI on Derivatives		Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss)					Amount and Location of Gains (Losses) Recognized in Income (Loss) on Derivatives
	(Effective Portion)		(Effective Portion)					(Ineffective Portion)
			Net Derivative Gains (Losses)			Net Investment Income		Net Derivative Gains (Losses)
			(In millions)
Three Months Ended March 31, 2015
Interest rate swaps	$	29	$	1		$	—	$	—
Interest rate forwards	11		1			1		—
Foreign currency swaps	52		(4		)	—		—
Credit forwards	—		(1		)	—		—
Total	$	92	$	(3	)	$	1	$	—
Three Months Ended March 31, 2014
Interest rate swaps	$	42	$	—		$	—	$	1
Interest rate forwards	20		—			—		1
Foreign currency swaps	3		—			—		—
Credit forwards	—		—			—		—
Total	$	65	$	—		$	—	$	2

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

At March 31, 2015, $18 million of deferred net gains (losses) on derivatives in AOCI was expected to be reclassified to earnings within the next 12 months.

35

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

5. Derivatives (continued)

Credit Derivatives

In connection with synthetically created credit investment transactions, the Company writes credit default swaps for which it receives a premium to insure credit risk. Such credit derivatives are included within the non-qualifying derivatives and derivatives for purposes other than hedging table. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation. The Company’s maximum amount at risk, assuming the value of all referenced credit obligations is zero, was $1.9 billion at both March 31, 2015 and December 31, 2014. The Company can terminate these contracts at any time through cash settlement with the counterparty at an amount equal to the then current fair value of the credit default swaps. At March 31, 2015 and December 31, 2014, the Company would have received $29 million and $28 million, respectively, to terminate all of these contracts.

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

	March 31, 2015					December 31, 2014
Rating Agency Designation of Referenced Credit Obligations (1)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps (2)		Weighted Average Years to Maturity (3)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps (2)		Weighted Average Years to Maturity (3)
	(In millions)					(In millions)
Aaa/Aa/A
Single name credit default swaps (corporate)	$	2	$	155	1.8	$	2	$	155	2.1
Credit default swaps referencing indices	—		84		1.7	1		134		1.3
Subtotal	2		239		1.8	3		289		1.7
Baa
Single name credit default swaps (corporate)	5		434		2.1	5		454		2.3
Credit default swaps referencing indices	19		1,143		5.1	18		1,145		5.0
Subtotal	24		1,577		4.3	23		1,599		4.2
B
Single name credit default swaps (corporate)	—		—		—	—		—		—
Credit default swaps referencing indices	3		35		4.8	2		36		5.0
Subtotal	3		35		4.8	2		36		5.0
Total	$	29	$	1,851	3.9	$	28	$	1,924	3.8

____________

(1) The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings. 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 gross notional amounts.

36

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

5. Derivatives (continued)

Credit Risk on Freestanding Derivatives

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

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

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

See Note 6 for a description of the impact of credit risk on the valuation of derivatives.

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

	March 31, 2015						December 31, 2014
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement (6)	Assets			Liabilities			Assets			Liabilities
	(In millions)
Gross estimated fair value of derivatives:
OTC-bilateral (1)	$	4,227		$	1,909		$	3,554		$	1,767
OTC-cleared (1)	90			95			75			73
Exchange-traded	23			—			35			—
Total gross estimated fair value of derivatives (1)	4,340			2,004			3,664			1,840
Amounts offset on the consolidated balance sheets	—			—			—			—
Estimated fair value of derivatives presented on the consolidated balance sheets (1)	4,340			2,004			3,664			1,840
Gross amounts not offset on the consolidated balance sheets:
Gross estimated fair value of derivatives: (2)
OTC-bilateral	(1,722		)	(1,722		)	(1,592		)	(1,592		)
OTC-cleared	(67		)	(67		)	(54		)	(54		)
Exchange-traded	—			—			—			—
Cash collateral: (3), (4)
OTC-bilateral	(1,660		)	—			(753		)	—
OTC-cleared	(23		)	(26		)	(21		)	(18		)
Exchange-traded	—			—			—			—
Securities collateral: (5)
OTC-bilateral	(796		)	(188		)	(1,152		)	(175		)
OTC-cleared	—			(1		)	—			—
Exchange-traded	—			—			—			—
Net amount after application of master netting agreements and collateral	$	72		$	—		$	92		$	1

____________

(1) At March 31, 2015 and December 31, 2014, derivative assets include income or expense accruals reported in accrued investment income or in other liabilities of $99 million and $88 million, respectively, and derivative liabilities include income or expense accruals reported in accrued investment income or in other liabilities of $24 million and $22 million, respectively.

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

37

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

5. Derivatives (continued)

(3) Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. In certain instances, cash collateral pledged to the Company as initial margin for OTC-bilateral derivatives is held in separate custodial accounts and is not recorded on the Company’s balance sheet because the account title is in the name of the counterparty (but segregated for the benefit of the Company). The amount of this off-balance sheet collateral was $91 million and $121 million at March 31, 2015 and December 31, 2014, respectively.

(4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At March 31, 2015 and December 31, 2014, the Company received excess cash collateral of $41 million and $33 million (including $40 million and $33 million off-balance sheet cash collateral held in separate custodial accounts), respectively, and provided excess cash collateral of $40 million and $30 million, respectively, which is not included in the table above due to the foregoing limitation.

(5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at March 31, 2015none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At March 31, 2015 and December 31, 2014, the Company received excess securities collateral with an estimated fair value of $74 million and $122 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At March 31, 2015 and December 31, 2014, the Company provided excess securities collateral with an estimated fair value of $24 million and $17 million, respectively, for its OTC-bilateral derivatives, and $40 million and $37 million, respectively, for its OTC-cleared derivatives, and $136 million and $165 million, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation.

(6) See Note 4 for information regarding the Company’s gross and net payables and receivables under repurchase agreement transactions.

The Company’s collateral arrangements for its OTC-bilateral derivatives generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the fair value of that counterparty’s derivatives reaches a pre-determined threshold. Certain of these arrangements also include financial strength-contingent provisions that provide for a reduction of these thresholds (on a sliding scale that converges toward zero) in the event of downgrades in the financial strength ratings of the Company and/or the credit ratings of the counterparty. In addition, certain of the Company’s netting agreements for derivatives contain provisions that require both the Company and the counterparty to maintain a specific investment grade financial strength or credit rating from each of Moody’s and S&P. If a party’s financial strength or credit ratings were to fall below that specific investment grade financial strength or credit rating, that party would be in violation of these provisions, and the other party to the derivatives could terminate the transactions and demand immediate settlement and payment based on such party’s reasonable valuation of the derivatives.

38

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

5. Derivatives (continued)

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

			Estimated Fair Value of Collateral Provided		Fair Value of Incremental  Collateral Provided Upon
	Estimated Fair Value of Derivatives in Net Liability Position (1)		Fixed Maturity Securities		One Notch Downgrade in the Company’s Financial Strength Rating		Downgrade in the Company’s Financial Strength Rating to a Level that Triggers Full Overnight Collateralization or Termination of  the Derivative Position
	(In millions)
March 31, 2015	$	187	$	212	$	—	$	—
December 31, 2014	$	175	$	192	$	—	$	—

____________

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

Embedded Derivatives

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

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

	Balance Sheet Location	March 31, 2015			December 31, 2014
		(In millions)
Net embedded derivatives within asset host contracts:
Ceded guaranteed minimum benefits	Premiums, reinsurance and other receivables	$	242		$	217
Funds withheld on assumed reinsurance	Other invested assets	56			53
Options embedded in debt or equity securities	Investments	(58		)	(48		)
Net embedded derivatives within asset host contracts		$	240		$	222
Net embedded derivatives within liability host contracts:
Direct guaranteed minimum benefits	Policyholder account balances	$	(410	)	$	(609	)
Assumed guaranteed minimum benefits	Policyholder account balances	893			827
Funds withheld on ceded reinsurance	Other liabilities	458			382
Other	Policyholder account balances	19			17
Net embedded derivatives within liability host contracts		$	960		$	617

39

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

5. Derivatives (continued)

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

	Three Months   Ended   March 31,
	2015			2014
	(In millions)
Net derivative gains (losses) (1), (2)	$	(236	)	$	(361	)
Policyholder benefits and claims	$	24		$	15

____________

(1) The valuation of direct and assumed guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $16 million and $44 million for the three months endedMarch 31, 2015 and 2014, respectively.

(2) See Note 10 for discussion of affiliated net derivative gains (losses) included in the table above.

40

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

6.  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.

Recurring Fair Value Measurements

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

	March 31, 2015
	Fair Value Hierarchy						Total Estimated Fair Value
	Level 1		Level 2		Level 3
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	15,953	$	1,452	$	17,405
U.S. Treasury and agency	8,137		6,160		—		14,297
RMBS	1,359		6,443		921		8,723
Foreign corporate	—		4,734		699		5,433
State and political subdivision	—		2,661		—		2,661
CMBS	—		1,623		187		1,810
ABS	—		1,551		419		1,970
Foreign government	—		766		—		766
Total fixed maturity securities	9,496		39,891		3,678		53,065
Equity securities:
Common stock	108		115		28		251
Non-redeemable preferred stock	—		167		62		229
Total equity securities	108		282		90		480
Short-term investments (1)	542		2,062		307		2,911
Commercial mortgage loans held by CSEs — FVO	—		272		—		272
Derivative assets: (2)
Interest rate	2		2,941		48		2,991
Foreign currency exchange rate	—		194		—		194
Credit	—		30		—		30
Equity market	21		804		201		1,026
Total derivative assets	23		3,969		249		4,241
Net embedded derivatives within asset host contracts (3)	—		—		298		298
Separate account assets (4)	287		109,571		156		110,014
Total assets	$	10,456	$	156,047	$	4,778	$	171,281
Liabilities
Derivative liabilities: (2)
Interest rate	$	—	$	827	$	—	$	827
Foreign currency exchange rate	—		6		—		6
Credit	—		2		—		2
Equity market	—		671		474		1,145
Total derivative liabilities	—		1,506		474		1,980
Net embedded derivatives within liability host contracts (3)	—		—		960		960
Long-term debt of CSEs — FVO	—		132		—		132
Total liabilities	$	—	$	1,638	$	1,434	$	3,072

41

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

6. Fair Value (continued)

	December 31, 2014
	Fair Value Hierarchy						Total Estimated Fair Value
	Level 1		Level 2		Level 3
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	15,447	$	1,355	$	16,802
U.S. Treasury and agency	10,226		5,600		—		15,826
RMBS	—		5,365		716		6,081
Foreign corporate	—		4,704		710		5,414
State and political subdivision	—		2,592		—		2,592
CMBS	—		1,531		148		1,679
ABS	—		1,381		181		1,562
Foreign government	—		741		—		741
Total fixed maturity securities	10,226		37,361		3,110		50,697
Equity securities:
Common stock	105		99		29		233
Non-redeemable preferred stock	—		155		71		226
Total equity securities	105		254		100		459
Short-term investments (1)	253		812		71		1,136
Commercial mortgage loans held by CSEs — FVO	—		280		—		280
Derivative assets: (2)
Interest rate	1		2,363		45		2,409
Foreign currency exchange rate	—		118		—		118
Credit	—		28		1		29
Equity market	34		770		216		1,020
Total derivative assets	35		3,279		262		3,576
Net embedded derivatives within asset host contracts (3)	—		—		270		270
Separate account assets (4)	249		108,454		158		108,861
Total assets	$	10,868	$	150,440	$	3,971	$	165,279
Liabilities
Derivative liabilities: (2)
Interest rate	$	—	$	688	$	—	$	688
Foreign currency exchange rate	—		13		—		13
Credit	—		2		—		2
Equity market	—		657		458		1,115
Total derivative liabilities	—		1,360		458		1,818
Net embedded derivatives within liability host contracts (3)	—		—		617		617
Long-term debt of CSEs — FVO	—		139		—		139
Total liabilities	$	—	$	1,499	$	1,075	$	2,574

____________

42

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

6. Fair Value (continued)

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

(2) Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on 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.

(3) Net embedded derivatives within asset host contracts are presented primarily within premiums, reinsurance and other receivables on the consolidated balance sheets. Net embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the consolidated balance sheets. At March 31, 2015 and December 31, 2014, equity securities also included embedded derivatives of ($58) million and ($48) million, respectively.

(4) 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.

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

Investments

Valuation Controls and Procedures

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

The Company reviews its valuation methodologies on an ongoing basis and revises those methodologies when necessary based on changing market conditions. Assurance is gained on the overall reasonableness and consistent application of input assumptions, valuation methodologies and compliance with fair value accounting standards through controls designed to ensure valuations represent an exit price. Several controls are utilized, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, comparing fair value estimates to management’s knowledge of the current market, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. The Company ensures that prices received from independent brokers, also referred to herein as “consensus pricing,” represent a reasonable estimate of fair value by considering such pricing relative to the Company’s knowledge of the current market dynamics and current pricing for similar financial instruments. While independent non-binding broker quotations are utilized, they are not used for a significant portion of the portfolio. For example, fixed maturity securities priced using independent non-binding broker quotations represent 1% of the total estimated fair value of fixed maturity securities and 15% of the total estimated fair value of Level 3 fixed maturity securities at March 31, 2015.

43

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

6. Fair Value (continued)

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

Securities, Short-term Investments and Long-term Debt of CSEs — FVO

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

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

The estimated fair value of long-term debt of CSEs — FVO is determined on a basis consistent with the methodologies described herein for securities.

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

44

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

6. Fair Value (continued)

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

45

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

6. Fair Value (continued)

Instrument	Level 2 Observable Inputs		Level 3 Unobservable Inputs
Equity Securities
Common and Non-redeemable preferred stock
	Valuation Techniques: Principally the market approach.		Valuation Techniques: Principally the market and income approaches.
	Key Input:		Key Inputs:
	•	quoted prices in markets that are not considered active	•	credit ratings
			•	issuance structures
			•	quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2
			•	independent non-binding broker quotations
Short-term investments
	•	Short-term investments are of a similar nature and class to the fixed maturity and equity securities described above; accordingly, the valuation techniques and observable inputs used in their valuation are also similar to those described above.	•	Short-term investments are of a similar nature and class to the fixed maturity and equity securities described above; accordingly, the valuation techniques and unobservable inputs used in their valuation are also similar to those described above.
Commercial mortgage loans held by CSEs — FVO
	Valuation Techniques: Principally the market approach.		•	N/A
	Key Input:
	•	quoted securitization market price of the obligations of the CSEs determined principally by independent pricing services using observable inputs
Separate Account Assets (1)
Mutual funds without readily determinable fair values as prices are not published publicly
	Key Input:
	•	quoted prices or reported NAV provided by the fund managers	•	N/A
Other limited partnership interests
	•	N/A	Valuation Techniques: Valued giving consideration to the underlying holdings of the partnerships and by applying a premium or discount, if appropriate.
			Key Inputs:
			•	liquidity
			•	bid/ask spreads
			•	the performance record of the fund manager
			•	other relevant variables that may impact the exit value of the particular partnership interest

______________

(1) Estimated fair value equals carrying value, based on the value of the underlying assets, including: mutual fund interests, fixed maturity securities, equity securities, derivatives, other limited partnership interests, short-term investments and cash and cash equivalents. Fixed maturity securities, equity securities, derivatives, short-term investments and cash and cash equivalents are similar in nature to the instruments described under “— Securities, Short-term Investments and Long-term Debt of CSEs — FVO” and “— Derivatives — Freestanding Derivatives Valuation Techniques and Key Inputs.”

Derivatives

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

46

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

6. Fair Value (continued)

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

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

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

Freestanding Derivatives Valuation Techniques and Key Inputs

Level 2

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

Level 3

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

47

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

6. Fair Value (continued)

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

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

______________

(1) Option-based only.

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

Embedded Derivatives

Embedded derivatives principally include certain direct, assumed and ceded variable annuity guarantees and embedded derivatives related to funds withheld on ceded reinsurance and within certain annuity contracts. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income.

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

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

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

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

48

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

6. Fair Value (continued)

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

The Company assumed from an affiliated insurance company the risk associated with certain GMIBs. These embedded derivatives are included in other policy-related balances on the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on these assumed risks is determined using a methodology consistent with that described previously for the guarantees directly written by the Company.

The Company ceded to an affiliated reinsurance company the risk associated with certain of the GMIBs, GMABs and GMWBs described above that are also accounted for as embedded derivatives. In addition to ceding risks associated with guarantees that are accounted for as embedded derivatives, the Company also cedes, to the same affiliated reinsurance company, certain directly written GMIBs that are accounted for as insurance (i.e., not as embedded derivatives), but where the reinsurance agreement contains an embedded derivative. These embedded derivatives are included within premiums, reinsurance and other receivables on the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer.

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

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

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

49

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

6. Fair Value (continued)

Embedded Derivatives Within Asset and Liability Host Contracts

Level 3 Valuation Techniques and Key Inputs:

Direct and assumed guaranteed minimum benefits

These embedded derivatives are principally valued using the income approach. Valuations are based on option pricing techniques, which utilize significant inputs that may include swap yield 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 the income approach. The valuation techniques and significant market standard unobservable inputs used in their valuation are similar to those described above in “— Direct and assumed guaranteed minimum benefits” and also include counterparty credit spreads.

Transfers between Levels

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

Transfers between Levels 1 and 2:

For assets and liabilities measured at estimated fair value and still held at March 31, 2015 and December 31, 2014, transfers between Levels 1 and 2 were not significant.

Transfers into or out of Level 3:

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

Transfers into Level 3 for fixed maturity securities were due primarily to 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 independent non-binding broker quotations and unobservable inputs, such as illiquidity premiums, delta spread adjustments, or credit spreads.

Transfers out of Level 3 for fixed maturity securities 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 (such as observable spreads used in pricing securities) or increases in market activity and upgraded credit ratings.

50

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

6. Fair Value (continued)

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

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

					March 31, 2015				December 31, 2014				Impact of Increase in Input on Estimated Fair Value (2)
	Valuation Techniques		Significant Unobservable Inputs		Range			Weighted Average (1)	Range			Weighted Average (1)
Fixed maturity securities (3)
U.S. corporate and foreign corporate	Ÿ	Matrix pricing	Ÿ	Delta spread adjustments (4)	(35)	-	240	47	(35)	-	240	51	Decrease
	Ÿ	Market pricing	Ÿ	Quoted prices (5)	13	-	531	105	—	-	750	418	Increase
	Ÿ	Consensus pricing	Ÿ	Offered quotes (5)	68	-	780	487	78	-	103	86	Increase
RMBS	Ÿ	Consensus pricing	Ÿ	Offered quotes (5)	30	-	114	94	1	-	117	93	Increase (6)
ABS	Ÿ	Market pricing	Ÿ	Quoted prices (5)	91	-	109	100	97	-	108	101	Increase (6)
	Ÿ	Consensus pricing	Ÿ	Offered quotes (5)	64	-	106	100	62	-	106	99	Increase (6)
Derivatives
Interest rate	Ÿ	Present value techniques	Ÿ	Swap yield (7)	256	-	271		278	-	297		Increase (11)
Credit	Ÿ	Present value techniques	Ÿ	Credit spreads (8)	99	-	99		99	-	99		Decrease (8)
	Ÿ	Consensus pricing	Ÿ	Offered quotes (9)
Equity market	Ÿ	Present value techniques or option pricing models	Ÿ	Volatility (10)	15%	-	28%		15%	-	27%		Increase (11)
			Ÿ	Correlation (12)	70%	-	70%		70%	-	70%
Embedded derivatives
Direct and ceded guaranteed minimum benefits	Ÿ	Option pricing techniques	Ÿ	Mortality rates:
				Ages 0 - 40	0%	-	0.09%		0%	-	0.10%		Decrease (13)
				Ages 41 - 60	0.04%	-	0.65%		0.04%	-	0.65%		Decrease (13)
				Ages 61 - 115	0.26%	-	100%		0.26%	-	100%		Decrease (13)
			Ÿ	Lapse rates:
				Durations 1 - 10	0.50%	-	100%		0.50%	-	100%		Decrease (14)
				Durations 11 - 20	3%	-	100%		3%	-	100%		Decrease (14)
				Durations 21 - 116	3%	-	100%		3%	-	100%		Decrease (14)
			Ÿ	Utilization rates	0%	-	30%		20%	-	50%		Increase (15)
			Ÿ	Withdrawal rates	0.08%	-	10%		0.07%	-	10%		(16)
			Ÿ	Long-term equity volatilities	17.40%	-	25%		17.40%	-	25%		Increase (17)
			Ÿ	Nonperformance risk spread	0.04%	-	0.48%		0.03%	-	1.39%		Decrease (18)

____________

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

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

51

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

6. Fair Value (continued)

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

(4) Range and weighted average are presented in basis points.

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

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

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

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

(9) At both March 31, 2015 and December 31, 2014, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value.

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

(11) Changes are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions.

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

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

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

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

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

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

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

52

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

6. Fair Value (continued)

The following is a summary of the valuation techniques and significant unobservable inputs used in the fair value measurement of assets and liabilities classified within Level 3 that are not included in the preceding table. Generally, all other classes of securities classified within Level 3, including those within separate account assets and embedded derivatives within funds withheld related to certain ceded reinsurance, use the same valuation techniques and significant unobservable inputs as previously described for Level 3 securities. This includes matrix pricing and discounted cash flow methodologies, inputs such as quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2, as well as independent non-binding broker quotations. The sensitivity of the estimated fair value to changes in the significant unobservable inputs for these other assets and liabilities is similar in nature to that described in the preceding table. The valuation techniques and significant unobservable inputs used in the fair value measurement for the more significant assets measured at estimated fair value on a nonrecurring basis and determined using significant unobservable inputs (Level 3) are summarized in “— Nonrecurring Fair Value Measurements.”

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):

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	U.S. Corporate			RMBS			Foreign Corporate			CMBS			ABS
	(In millions)
Three Months Ended March 31, 2015
Balance, beginning of period	$	1,355		$	716		$	710		$	148		$	181
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	1			2			—			—			—
Net investment gains (losses)	—			—			—			—			—
Net derivative gains (losses)	—			—			—			—			—
Policyholder benefits and claims	—			—			—			—			—
OCI	12			(1		)	(10		)	—			1
Purchases (3)	58			248			2			74			292
Sales (3)	(7		)	(38		)	(11		)	—			(8		)
Issuances (3)	—			—			—			—			—
Settlements (3)	—			—			—			—			—
Transfers into Level 3 (4)	35			—			8			—			—
Transfers out of Level 3 (4)	(2		)	(6		)	—			(35		)	(47		)
Balance, end of period	$	1,452		$	921		$	699		$	187		$	419
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	1		$	2		$	—		$	—		$	—
Net investment gains (losses)	$	—		$	—		$	—		$	—		$	—
Net derivative gains (losses)	$	—		$	—		$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—		$	—

53

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

6. Fair Value (continued)

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Equity Securities									Net Derivatives (6)
	Common Stock			Non- redeemable Preferred Stock			Short-term Investments			Interest Rate			Credit			Equity Market			Net Embedded Derivatives (7)			Separate Account Assets (8)
	(In millions)
Three Months Ended March 31, 2015
Balance, beginning of period	$	29		$	71		$	71		$	45		$	1		$	(242	)	$	(347	)	$	158
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	—			—			—			—			—			—			—			—
Net investment gains (losses)	—			—			—			—			—			—			—			—
Net derivative gains (losses)	—			—			—			—			(1		)	(33		)	(223		)	—
Policyholder benefits and claims	—			—			—			—			—			1			24			—
OCI	—			(3		)	—			10			—			—			—			—
Purchases (3)	—			—			307			—			—			—			—			—
Sales (3)	—			—			(16		)	—			—			—			—			(2		)
Issuances (3)	—			—			—			—			—			—			—			—
Settlements (3)	—			—			—			(7		)	—			1			(116		)	—
Transfers into Level 3 (4)	—			—			—			—			—			—			—			—
Transfers out of Level 3 (4)	(1		)	(6		)	(55		)	—			—			—			—			—
Balance, end of period	$	28		$	62		$	307		$	48		$	—		$	(273	)	$	(662	)	$	156
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net investment gains (losses)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net derivative gains (losses)	$	—		$	—		$	—		$	—		$	—		$	(33	)	$	(224	)	$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—		$	—		$	1		$	25		$	—

54

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

6. Fair Value (continued)

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	U.S. Corporate			RMBS			Foreign Corporate			CMBS			ABS
	(In millions)
Three Months Ended March 31, 2014
Balance, beginning of period	$	1,270		$	450		$	779		$	129		$	426
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	1			1			—			—			—
Net investment gains (losses)	(1		)	3			—			—			—
Net derivative gains (losses)	—			—			—			—			—
Policyholder benefits and claims	—			—			—			—			—
OCI	29			3			16			—			4
Purchases (3)	23			146			3			34			58
Sales (3)	(37		)	(35		)	(1		)	(9		)	(6		)
Issuances (3)	—			—			—			—			—
Settlements (3)	—			—			—			—			—
Transfers into Level 3 (4)	197			14			—			6			—
Transfers out of Level 3 (4)	(61		)	(19		)	(40		)	(16		)	(289		)
Balance, end of period	$	1,421		$	563		$	757		$	144		$	193
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	1		$	1		$	—		$	—		$	—
Net investment gains (losses)	$	(1	)	$	—		$	—		$	—		$	—
Net derivative gains (losses)	$	—		$	—		$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—		$	—

55

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

6. Fair Value (continued)

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Equity Securities							Net Derivatives (6)
	Common Stock			Non- redeemable Preferred Stock		Short-term Investments		Interest Rate			Credit			Equity Market			Net Embedded Derivatives (7)			Separate Account Assets (8)
	(In millions)
Three Months Ended March 31, 2014
Balance, beginning of period	$	31		$	100	$	—	$	11		$	6		$	(309	)	$	288		$	153
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	—			—		—		—			—			—			—			—
Net investment gains (losses)	4			—		—		—			—			—			—			5
Net derivative gains (losses)	—			—		—		7			(2		)	(40		)	(356		)	—
Policyholder benefits and claims	—			—		—		—			—			4			15			—
OCI	(2		)	—		—		20			—			—			1			—
Purchases (3)	—			—		150		—			—			—			—			4
Sales (3)	(6		)	—		—		—			—			—			—			(2		)
Issuances (3)	—			—		—		—			—			—			—			—
Settlements (3)	—			—		—		(1		)	—			—			(210		)	—
Transfers into Level 3 (4)	6			8		—		—			—			—			—			—
Transfers out of Level 3 (4)	—			—		—		—			—			—			—			—
Balance, end of period	$	33		$	108	$	150	$	37		$	4		$	(345	)	$	(262	)	$	160
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	—		$	—	$	—	$	—		$	—		$	—		$	—		$	—
Net investment gains (losses)	$	—		$	—	$	—	$	—		$	—		$	—		$	—		$	—
Net derivative gains (losses)	$	—		$	—	$	—	$	6		$	(2	)	$	(39	)	$	(349	)	$	—
Policyholder benefits and claims	$	—		$	—	$	—	$	—		$	—		$	4		$	16		$	—

__________

(1) Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses).

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

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

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

(5) Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods.

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

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

(8) 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).

56

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

6. Fair Value (continued)

Fair Value Option

The following table presents information for certain assets and liabilities of CSEs, which are accounted for under the FVO. These assets and liabilities were initially measured at fair value.

	March 31, 2015		December 31, 2014
	(In millions)
Assets (1)
Unpaid principal balance	$	218	$	223
Difference between estimated fair value and unpaid principal balance	54		57
Carrying value at estimated fair value	$	272	$	280
Liabilities (1)
Contractual principal balance	$	127	$	133
Difference between estimated fair value and contractual principal balance	5		6
Carrying value at estimated fair value	$	132	$	139

____________

(1) These assets and liabilities are comprised of commercial mortgage loans and long-term debt. Changes in estimated fair value on these assets and liabilities and gains or losses on sales of these assets are recognized in net investment gains (losses). Interest income on commercial mortgage loans held by CSEs — FVO is recognized in net investment income. Interest expense from long-term debt of CSEs — FVO is recognized in other expenses.

Nonrecurring Fair Value Measurements

The following table presents information for assets measured at estimated fair value on a nonrecurring basis during the periods and still held at the reporting dates (for example, when there is evidence of impairment). The estimated fair values for these assets were determined using significant unobservable inputs (Level 3).

	At March 31,				Three Months   Ended   March 31,
	2015		2014		2015			2014
	Carrying Value After Measurement				Gains (Losses)
	(In millions)
Mortgage loans (1)	$	3	$	17	$	—		$	—
Other limited partnership interests (2)	$	—	$	4	$	(1	)	$	(2	)

____________

(1) Estimated fair values for impaired mortgage loans are based on independent broker quotations or valuation models using unobservable inputs or, if the loans are in foreclosure or are otherwise determined to be collateral dependent, are based on the estimated fair value of the underlying collateral or the present value of the expected future cash flows.

(2) For these cost method investments, estimated fair value is determined from information provided in the financial statements of the underlying entities including NAV data. These investments include private equity and debt funds that typically invest primarily in various 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. Distributions 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 two to 10 years. Unfunded commitments for these investments at both March 31, 2015 and 2014 were not significant.

57

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

6. Fair Value (continued)

Fair Value of Financial Instruments Carried at Other Than Fair Value

The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income, payables for collateral under securities loaned and other transactions and those short-term investments that are not securities, such as time deposits, and therefore are not included in the three level hierarchy table disclosed in the “— Recurring Fair Value Measurements” section. The estimated fair value of the excluded financial instruments, which are primarily classified in Level 2 and, to a lesser extent, in Level 1, approximates carrying value, as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality. All remaining balance sheet amounts excluded from the table below are not considered financial instruments subject to this disclosure.

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

	March 31, 2015
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	5,848	$	—	$	—	$	6,285	$	6,285
Policy loans	$	1,190	$	—	$	837	$	455	$	1,292
Real estate joint ventures	$	31	$	—	$	—	$	81	$	81
Other limited partnership interests	$	61	$	—	$	—	$	80	$	80
Premiums, reinsurance and other receivables	$	6,233	$	—	$	92	$	7,411	$	7,503
Liabilities
Policyholder account balances	$	20,190	$	—	$	—	$	21,968	$	21,968
Long-term debt	$	789	$	—	$	1,165	$	—	$	1,165
Other liabilities	$	1,790	$	—	$	1,620	$	170	$	1,790
Separate account liabilities	$	1,414	$	—	$	1,414	$	—	$	1,414

58

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

6. Fair Value (continued)

	December 31, 2014
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	5,559	$	—	$	—	$	6,020	$	6,020
Policy loans	$	1,194	$	—	$	834	$	454	$	1,288
Real estate joint ventures	$	37	$	—	$	—	$	83	$	83
Other limited partnership interests	$	63	$	—	$	—	$	81	$	81
Premiums, reinsurance and other receivables	$	6,231	$	—	$	51	$	7,156	$	7,207
Liabilities
Policyholder account balances	$	20,554	$	—	$	—	$	22,079	$	22,079
Long-term debt	$	789	$	—	$	1,120	$	—	$	1,120
Other liabilities	$	245	$	—	$	76	$	169	$	245
Separate account liabilities	$	1,432	$	—	$	1,432	$	—	$	1,432

The methods, assumptions and significant valuation techniques and inputs used to estimate the fair value of financial instruments are summarized as follows:

Mortgage Loans

The estimated fair value of mortgage loans is primarily determined by estimating expected future cash flows and discounting them using current interest rates for similar mortgage loans with similar credit risk, or is determined from pricing for similar loans.

Policy Loans

Policy loans with fixed interest rates are classified within Level 3. The estimated fair values for these loans 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 by 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. Policy loans with variable interest rates are classified within Level 2 and the estimated fair value 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

The estimated fair values of these cost method investments 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.

Premiums, Reinsurance and Other Receivables

Premiums, reinsurance and other receivables are principally comprised of certain amounts recoverable under reinsurance agreements, amounts on deposit with financial institutions to facilitate daily settlements related to certain derivatives and amounts receivable for securities sold but not yet settled. Embedded derivatives on investment contracts and certain variable annuity guarantees accounted for as embedded derivatives are excluded from this caption in the preceding tables as they are separately presented in “— Recurring Fair Value Measurements.”

Amounts recoverable under ceded reinsurance agreements, which the Company has determined do not transfer significant risk such that they are accounted for using the deposit method of accounting, have been classified as Level 3. The valuation is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using interest rates determined to reflect the appropriate credit standing of the assuming counterparty.

59

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

6. Fair Value (continued)

The amounts on deposit for derivative settlements, classified within Level 2, 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.

Policyholder Account Balances

These policyholder account balances include investment contracts. Embedded derivatives on investment contracts and certain variable annuity guarantees accounted for as embedded derivatives are excluded from this caption in the preceding tables as they are separately presented in “— Recurring Fair Value Measurements.”

The investment contracts primarily include certain funding agreements, fixed deferred annuities, modified guaranteed annuities, fixed term payout annuities and total control accounts. The valuation of these investment contracts is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using current market risk-free interest rates adding a spread to reflect the nonperformance risk in the liability.

Long-term Debt

The estimated fair value of long-term debt is principally determined using market standard valuation methodologies. Valuations of instruments are based primarily on quoted prices in markets that are not active or using matrix pricing that use standard market observable inputs such as quoted prices in markets that are not active and observable yields and spreads in the market. Instruments valued using discounted cash flow methodologies use standard market observable inputs including market yield curve, duration, observable prices and spreads for similar publicly traded or privately traded issues.

Other Liabilities

Other liabilities consist primarily of interest payable, amounts due for securities purchased but not yet settled and funds withheld amounts payable, which are contractually withheld by the Company in accordance with the terms of the reinsurance agreements. 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.

Separate Account Liabilities

Separate account liabilities represent those balances due to policyholders under contracts that are classified as investment contracts.

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 and certain contracts that provide for benefit funding.

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 value of those assets approximates the estimated fair value of the related separate account liabilities. The valuation techniques and inputs for separate account liabilities are similar to those described for separate account assets.

60

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

7.  Equity

Accumulated Other Comprehensive Income (Loss)

Information regarding changes in the balances of each component of AOCI was as follows:

	Three Months   Ended   March 31, 2015
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)			Unrealized Gains (Losses) on Derivatives			Foreign Currency Translation Adjustments			Total
	(In millions)
Balance, beginning of period	$	2,250		$	183		$	(7	)	$	2,426
OCI before reclassifications	393			92			(10		)	475
Deferred income tax benefit (expense)	(138		)	(31		)	4			(165		)
OCI before reclassifications, net of income tax	2,505			244			(13		)	2,736
Amounts reclassified from AOCI	(26		)	2			—			(24		)
Deferred income tax benefit (expense)	9			(1		)	—			8
Amounts reclassified from AOCI, net of income tax	(17		)	1			—			(16		)
Balance, end of period	$	2,488		$	245		$	(13	)	$	2,720

	Three Months   Ended   March 31, 2014
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)			Unrealized Gains (Losses) on Derivatives			Foreign Currency Translation Adjustments			Total
	(In millions)
Balance, beginning of period	$	916		$	25		$	39		$	980
OCI before reclassifications	1,000			65			11			1,076
Deferred income tax benefit (expense)	(337		)	(23		)	(16		)	(376		)
OCI before reclassifications, net of income tax	1,579			67			34			1,680
Amounts reclassified from AOCI	(27		)	—			—			(27		)
Deferred income tax benefit (expense)	9			—			—			9
Amounts reclassified from AOCI, net of income tax	(18		)	—			—			(18		)
Balance, end of period	$	1,561		$	67		$	34		$	1,662

____________

(1) See Note 4 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI.

61

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

7. Equity (continued)

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

AOCI Components	Amounts Reclassified from AOCI						Consolidated Statement of Operations and Comprehensive Income (Loss) Locations
	Three Months   Ended   March 31,
	2015			2014
	(In millions)
Net unrealized investment gains (losses):
Net unrealized investment gains (losses)	$	19		$	19		Net investment gains (losses)
Net unrealized investment gains (losses)	11			6			Net investment income
Net unrealized investment gains (losses)	(4		)	2			Net derivative gains (losses)
Net unrealized investment gains (losses), before income tax	26			27
Income tax (expense) benefit	(9		)	(9		)
Net unrealized investment gains (losses), net of income tax	17			18
Unrealized gains (losses) on derivatives - cash flow hedges:
Interest rate swaps	1			—			Net derivative gains (losses)
Interest rate forwards	1			—			Net derivative gains (losses)
Interest rate forwards	1			—			Net investment income
Foreign currency swaps	(4		)	—			Net derivative gains (losses)
Credit forwards	(1		)	—			Net derivative gains (losses)
Gains (losses) on cash flow hedges, before income tax	(2		)	—
Income tax (expense) benefit	1			—
Gains (losses) on cash flow hedges, net of income tax	(1		)	—
Total reclassifications, net of income tax	$	16		$	18

62

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

8. Other Expenses

Information on other expenses was as follows:

	Three Months   Ended   March 31,
	2015			2014
	(In millions)
Compensation	$	125		$	63
Commissions	164			152
Volume-related costs	47			29
Affiliated interest costs on ceded reinsurance	87			66
Capitalization of DAC	(99		)	(76		)
Amortization of DAC and VOBA	195			273
Interest expense on debt	18			37
Rent and related expenses	17			8
Other	93			125
Total other expenses	$	647		$	677

Affiliated Expenses

Commissions, capitalization of DAC and amortization of DAC and VOBA include the impact of affiliated reinsurance transactions. See Note 10 for a discussion of affiliated expenses included in the table above.

9. Contingencies, Commitments and Guarantees

Contingencies

Litigation

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

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

The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at March 31, 2015.

Matters as to Which an Estimate Can Be Made

For some loss contingency matters, the Company is able to estimate a reasonably possible range of loss. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. As of March 31, 2015, the aggregate range of reasonably possible losses in excess of amounts accrued for these matters was not material for the Company.

63

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

9. Contingencies, Commitments and Guarantees (continued)

Matters as to Which an Estimate Cannot Be Made

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

Unclaimed Property Litigation

On December 28, 2012, the West Virginia Treasurer filed an action (West Virginia ex rel. John D. Perdue v. MetLife Insurance Company of Connecticut, Circuit Court of Putnam County), alleging that MetLife Insurance Company of Connecticut violated the West Virginia Uniform Unclaimed Property Act, seeking to compel compliance with the Act, and seeking payment of unclaimed property, interest, and penalties. On November 14, 2012, the Treasurer filed a substantially identical suit against MLI‑USA. On December 30, 2013, the court granted defendants’ motions to dismiss all of the West Virginia Treasurer’s actions. The Treasurer has appealed the dismissal order.

Sales Practices Claims

Over the past several years, the Company has faced claims and regulatory inquiries and investigations, alleging improper marketing or sales of individual life insurance policies, annuities, mutual funds or other products. The Company continues to defend vigorously against the claims in these matters. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters.

Summary

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

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

Commitments

Mortgage Loan Commitments

The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $372 million and $36 million at March 31, 2015 and December 31, 2014, respectively.

Commitments to Fund Partnership Investments and Private Corporate Bond Investments

The Company commits to fund partnership investments and to lend funds under private corporate bond investments. The amounts of these unfunded commitments were $1.1 billion and $918 million at March 31, 2015 and December 31, 2014, respectively.

64

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

9. Contingencies, Commitments and Guarantees (continued)

Other Commitments

The Company has entered into collateral arrangements with affiliates, which require the transfer of collateral in connection with secured demand notes. At both March 31, 2015 and December 31, 2014, the Company had agreed to fund up to $32 million of cash upon the request by these affiliates and had transferred collateral consisting of various securities with a fair market value of $60 million and $57 million at March 31, 2015 and December 31, 2014, respectively, to custody accounts to secure the demand notes. Each of these affiliates is permitted by contract to sell or re-pledge this collateral.

10.  Related Party Transactions

Service Agreements

The Company has entered into various agreements with affiliates for services necessary to conduct its activities. Typical services provided under these agreements include management, policy administrative functions, personnel, investment advice and distribution services. For certain agreements, charges are based on various performance measures or activity-based costing. The bases for such charges are modified and adjusted by management when necessary or appropriate to reflect fairly and equitably the actual incidence of cost incurred by the Company and/or affiliate. Expenses and fees incurred with affiliates related to these agreements, recorded in other expenses, were $391 million and $333 million for the three months endedMarch 31, 2015 and 2014, respectively. Revenues received from affiliates related to these agreements, recorded in universal life and investment-type product policy fees, were $63 million and $67 million for the three months endedMarch 31, 2015 and 2014, respectively. Revenues received from affiliates related to these agreements, recorded in other revenues, were $50 million and $53 million for the three months endedMarch 31, 2015 and 2014, respectively.

The Company had net receivables from affiliates related to the items discussed above of $100 million and $26 million at March 31, 2015 and December 31, 2014, respectively.

See Note 4 for additional information on related party transactions.

Related Party Reinsurance Transactions

The Company has reinsurance agreements with certain MetLife subsidiaries, including MLIC, MetLife Reinsurance Company of South Carolina, First MetLife Investors Insurance Company, General American Life Insurance Company, MetLife Europe Limited, MetLife Reinsurance Company of Vermont, New England Life Insurance Company, MetLife Reinsurance Company of Delaware (“MRD”), Delaware American Life Insurance Company and American Life Insurance Company, all of which are related parties.

65

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

10. Related Party Transactions (continued)

Information regarding the significant effects of affiliated reinsurance included on the consolidated statements of operations and comprehensive income (loss) was as follows:

	Three Months   Ended   March 31,
	2015			2014
	(In millions)
Premiums
Reinsurance assumed	$	25		$	10
Reinsurance ceded	(200		)	(263		)
Net premiums	$	(175	)	$	(253	)
Universal life and investment-type product policy fees
Reinsurance assumed	$	31		$	81
Reinsurance ceded	(87		)	(94		)
Net universal life and investment-type product policy fees	$	(56	)	$	(13	)
Other revenues
Reinsurance assumed	$	—		$	4
Reinsurance ceded	58			71
Net other revenues	$	58		$	75
Policyholder benefits and claims
Reinsurance assumed	$	35		$	37
Reinsurance ceded	(240		)	(310		)
Net policyholder benefits and claims	$	(205	)	$	(273	)
Interest credited to policyholder account balances
Reinsurance assumed	$	19		$	23
Reinsurance ceded	(37		)	(33		)
Net interest credited to policyholder account balances	$	(18	)	$	(10	)
Other expenses
Reinsurance assumed	$	15		$	18
Reinsurance ceded	50			22
Net other expenses	$	65		$	40

Information regarding the significant effects of affiliated reinsurance included on the consolidated balance sheets was as follows at:

	March 31, 2015					December 31, 2014
	Assumed		Ceded			Assumed		Ceded
	(In millions)
Assets
Premiums, reinsurance and other receivables	$	59	$	12,876		$	45	$	12,718
Deferred policy acquisition costs and value of business acquired	171		(723		)	164		(707		)
Total assets	$	230	$	12,153		$	209	$	12,011
Liabilities
Future policy benefits	$	593	$	—		$	593	$	—
Policyholder account balances	893		—			827		—
Other policy-related balances	1,712		754			1,689		763
Other liabilities	20		5,307			16		5,109
Total liabilities	$	3,218	$	6,061		$	3,125	$	5,872

The Company assumes risks from affiliates related to guaranteed minimum benefit guarantees written directly by the affiliates. These assumed reinsurance agreements contain embedded derivatives and changes in their fair value are also included within net derivative gains (losses). The embedded derivatives associated with the cessions are included within policyholder account balances and were liabilities of $893 million and $827 million at March 31, 2015 and December 31, 2014, respectively. For the three months endedMarch 31, 2015 and 2014, net derivative gains (losses) included ($63) million and ($146) million, respectively, in changes in fair value of such embedded derivatives.

66

MetLife Insurance Company USA

(A Wholly-Owned Subsidiary of MetLife, Inc.)

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

10. Related Party Transactions (continued)

The Company ceded several blocks of business to affiliates on a 90% coinsurance with funds withheld basis. Certain contractual features of this agreement qualify as embedded derivatives, which are separately accounted for at estimated fair value on the Company’s consolidated balance sheets. The embedded derivative related to the funds withheld associated with this reinsurance agreement is included within other liabilities and increased the funds withheld balance by $458 million and $382 million at March 31, 2015 and December 31, 2014, respectively. Net derivative gains (losses) associated with the embedded derivatives were ($76) million and ($127) million for the three months endedMarch 31, 2015 and 2014, respectively.

In January 2014, prior to the Mergers, the Company entered into an agreement with MLIC which ceded all existing New York insurance policies and annuity contracts that include a separate account feature. Certain contractual features of this agreement qualify as embedded derivatives, which are separately accounted for at fair value on the Company’s consolidated balance sheet. The embedded derivative related to this agreement is included within receivables from affiliates and was $4 million at both March 31, 2015 and December 31, 2014. Net derivative gains (losses) associated with the embedded derivative were less than $1 million and $2 million for the three months endedMarch 31, 2015 and 2014, respectively. See Note 1 for further information on the Mergers.

In December 2014, the Company entered into a reinsurance agreement to cede two blocks of business to MRD on a 90% coinsurance with funds withheld basis. This agreement covers certain term and certain universal life policies issued in 2014 by the Company. This agreement transfers risk to MRD and, therefore, is accounted for as reinsurance. As a result of the agreement, affiliated reinsurance recoverables, included in premiums, reinsurance and other receivables, were $71 million and $54 million at March 31, 2015 and December 31, 2014, respectively. The Company also recorded a funds withheld liability and other reinsurance payables, included in other liabilities, which were $18 million and $118 million at March 31, 2015 and December 31, 2014, respectively. The Company’s consolidated statement of operations and comprehensive income (loss) includes a loss for this agreement of $3 million for the three months endedMarch 31, 2015.

67

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

	Page
Forward-Looking Statements and Other Financial Information	69
Business	69
Summary of Critical Accounting Estimates	72
Economic Capital	73
Results of Operations	74
Adoption of New Accounting Pronouncements	79
Future Adoption of New Accounting Pronouncements	79
Non-GAAP and Other Financial Disclosures	79

68

Forward-Looking Statements and Other Financial Information

For purposes of this discussion, “MetLife USA,” the “Company,” “we,” “our” and “us” refer to MetLife Insurance Company USA (formerly, MetLife Insurance Company of Connecticut (“MICC”)), a Delaware corporation originally incorporated in Connecticut in 1863, and its subsidiaries. MetLife Insurance Company USA is a wholly-owned subsidiary of MetLife, Inc. (MetLife, Inc., together with its subsidiaries and affiliates, “MetLife”). Management’s narrative analysis of the results of operations is presented pursuant to General Instruction H(2)(a) of Form 10-Q. This narrative analysis should be read in conjunction with MetLife Insurance Company USA’s Annual Report on Form 10-K for the year ended December 31, 2014 (the “2014 Annual Report”), the cautionary language regarding forward-looking statements included below, the “Risk Factors” set forth in Part II, Item 1A, and the additional risk factors referred to therein, and the Company’s interim condensed consolidated financial statements included elsewhere herein.

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

This narrative analysis includes references to our performance measure, operating earnings, that is not based on accounting principles generally accepted in the United States of America (“GAAP”). Operating earnings is the measure of segment profit or loss we use to evaluate segment performance and allocate resources. Consistent with GAAP guidance for segment reporting, operating earnings is our measure of segment performance. See “— Non-GAAP and Other Financial Disclosures” for definitions of this and other measures.

Business

Overview

The Company is organized into two segments: Retail and Corporate Benefit Funding. In addition, the Company reports certain of its results of operations in Corporate & Other. As anticipated, in the first quarter of 2015, the Company implemented certain segment reporting changes related to the measurement of segment operating earnings, which included revising the Company’s capital allocation methodology. These changes were applied retrospectively and did not have an impact on total consolidated operating earnings or net income.

Management continues to evaluate the Company’s segment performance and allocated resources and may adjust related measurements in the future to better reflect segment profitability. See Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements for further information on the Company’s segments and Corporate & Other.

In November 2014, MetLife Insurance Company of Connecticut, a wholly-owned subsidiary of MetLife, Inc., re-domesticated from Connecticut to Delaware, changed its name to MetLife Insurance Company USA and merged with its subsidiary, MetLife Investors USA Insurance Company, and its affiliate, MetLife Investors Insurance Company, each a U.S. insurance company that issued variable annuity products in addition to other products, and Exeter Reassurance Company, Ltd., a former offshore, reinsurance subsidiary of MetLife, Inc. and affiliate of MICC that mainly reinsured guarantees associated with variable annuity products (the “Mergers”). The surviving entity of the Mergers was MetLife USA. The Mergers represent a transaction among entities under common control and have been accounted for in a manner similar to the pooling-of-interests method, which requires that the merged entities be combined at their historical cost. The Company’s consolidated financial statements and related footnotes are presented as if the transaction occurred at the beginning of the earliest date presented and prior periods’ results have been retrospectively adjusted. See Note 3 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report for further information on the Mergers.

69

Regulatory Developments

The U.S. insurance industry is regulated primarily at the state level, with some products and services also subject to federal regulation. In addition, we are subject to regulation under the insurance holding company laws of our domicile, Delaware. As a subsidiary of MetLife, Inc., a non-bank systemically important financial institution (“non-bank SIFI”), we are affected by MetLife, Inc.’s regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”), the Federal Reserve Bank of New York (“FRB of NY”) and the Federal Deposit Insurance Corporation (“FDIC”). We may also be affected by any additional capital requirements to which MetLife, Inc. may be subject as a global systemically important insurer (“G-SII”). Furthermore, some of our operations, products and services are subject to consumer protection laws, securities regulation, environmental and unclaimed property laws and regulations, and to the Employee Retirement Income Security Act of 1974 (“ERISA”).

The regulation of the global financial services industry has received renewed scrutiny as a result of the disruptions in the financial markets. Significant regulatory reforms have been recently adopted and additional reforms proposed, and these or other reforms could be implemented. See “Risk Factors — Regulatory and Legal Risks — Our Insurance Businesses Are Highly Regulated, and Changes in Regulation and in Supervisory and Enforcement Policies May Reduce Our Profitability and Limit Our Growth” included in the 2014 Annual Report, as amended and supplemented elsewhere herein, and “Business — Regulation,” “Risk Factors — Risks Related to Our Business — Our Statutory Life Insurance Reserve Financings May Be Subject to Cost Increases and New Financings May Be Subject to Limited Market Capacity,” and “Risk Factors — Regulatory and Legal Risks — Changes in U.S. Federal and State Securities Laws and Regulations, and State Insurance Regulations Regarding Suitability of Annuity Product Sales, May Affect Our Operations and Our Profitability” included in the 2014 Annual Report. For example, the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”), which was signed by President Obama in July 2010, effected the most far-reaching overhaul of financial regulation in the U.S. in decades. The full impact of Dodd-Frank on us will depend on the numerous rulemaking initiatives required or permitted by Dodd-Frank which are in various stages of implementation, many of which are not likely to be completed for some time.

Insurance Regulation

Insurance Regulatory Examinations and Other Activities

The International Association of Insurance Supervisors (“IAIS”) has encouraged U.S. insurance supervisors to establish Supervisory Colleges for U.S.-based insurance groups with international operations, including MetLife, to facilitate cooperation and coordination among the insurance groups’ supervisors and to enhance the member regulators’ understanding of an insurance group’s risk profile. MetLife, Inc. was the subject of Supervisory College meetings chaired by the New York Department of Financial Services (the “Department of Financial Services”) and attended by MetLife’s key U.S. and international insurance regulators in January 2013 and March 2014. Because MetLife, Inc. is now supervised as a non-bank SIFI, an April 2015 Supervisory College was co-chaired by the Department of Financial Services and the FRB of NY and attended by MetLife’s key U.S. and international regulators, including the FDIC, which has joint authority with the Federal Reserve Board over MetLife’s resolution plan. See “Regulation of MetLife, Inc. as a Non-Bank SIFI — Enhanced Prudential Standards for Non-Bank SIFIs” below. We have not received any reports or recommendations from the Supervisory College meetings, and we do not expect any outcome of the meetings to have a material adverse effect on our business.

In the first quarter of 2015, the Department of Financial Services announced that it would integrate regular, targeted assessments of cyber-security preparedness at insurance companies as part of its examination process, propose regulations requiring heightened standards for cyber-security and examine stronger measures related to representations and warranties insurance companies receive from third-party vendors. The Department of Financial Services also issued an information request to insurers requiring the submission of detailed information on security policies, procedures and programs, on the basis of which it will perform a comprehensive risk assessment of each institution followed by expanded information technology examinations that focus more attention on cyber-security. MetLife has submitted its response to this request.

70

Regulation of MetLife, Inc. as a Non-Bank SIFI

Enhanced Prudential Standards for Non-Bank SIFIs

In December 2011, in accordance with Dodd-Frank, the Federal Reserve Board proposed a rule (“Regulation YY”) that would have applied a set of prudential standards to non-bank SIFIs, including enhanced risk-based capital (“RBC”) requirements, leverage limits, liquidity requirements, single counterparty exposure limits, governance requirements for risk management, stress test requirements, special debt-to-equity limits for certain companies and early remediation procedures. The Federal Reserve Board’s proposal contemplated that these standards could be tailored for different companies on an individual basis or by category, taking into consideration their capital structure, riskiness, complexity, financial activities, size, and any other risk-related factors that the Federal Reserve Board deems appropriate. In February 2014, the Federal Reserve Board adopted amendments to Regulation YY to implement certain of the enhanced prudential standards for bank holding companies and foreign banking organizations with total consolidated assets of $50 billion or more. While Regulation YY, as originally proposed, would have applied to non-bank SIFIs, the final rule does not. However, the Federal Reserve Board has indicated that it plans to apply enhanced prudential standards to non-bank SIFIs by rule or order, enabling it to more appropriately tailor the standards to non-bank SIFIs and will provide affected non-bank SIFIs with notice and the opportunity to comment prior to determination of their enhanced prudential standards. Accordingly, the manner in which these proposed standards might apply to MetLife, Inc. and its impact on us remain unclear.

Non-bank SIFIs are required to submit a resolution plan setting forth how the company could be resolved under the Bankruptcy Code in the event of material financial distress. Resolution plans would have to be resubmitted annually and promptly following any event, occurrence, change in conditions or circumstances, or other change that results in, or could reasonably be foreseen to have, a material effect on the resolution plan. A failure to submit a “credible” resolution plan could result in the imposition of a variety of measures, including additional capital, leverage, or liquidity requirements, and forced divestiture of assets or operations. As a non-bank SIFI, MetLife, Inc. will be required to submit a resolution plan by December 31, 2016, unless the Federal Reserve Board and FDIC require a different due date.

ERISA Considerations

We provide products and services to certain employee benefit plans that are subject to ERISA or the Internal Revenue Code of 1986, as amended (the “Code”). As such, our activities are subject to the restrictions imposed by ERISA and the Code, including the requirement under ERISA that fiduciaries must perform their duties solely in the interests of ERISA plan participants and beneficiaries, and that fiduciaries may not cause a covered plan to engage in certain prohibited transactions. The prohibited transaction rules of ERISA and the Code generally restrict the provision of investment advice to ERISA plans and participants and Individual Retirement Accounts (“IRAs”) if the investment recommendation results in fees paid to the individual advisor, his or her firm or their affiliates that vary according to the investment recommendation chosen.

The Department of Labor (“DOL”) proposed new regulations in April 2015 that would substantially expand the definition of “investment advice” and thereby broaden the circumstances under which MetLife, in providing investment advice with respect to ERISA plans or IRAs, could be deemed a fiduciary under ERISA or the Code. The DOL also proposed amendments to its prohibited transaction exemption that would apply more onerous disclosure and contract requirements to, and increase fiduciary requirements in respect of, transactions involving ERISA plans, plan participants and IRAs. If the new DOL proposals become final, MetLife may find it necessary to change sales representative and/or broker compensation and may limit the assistance or advice they can provide.

Designation Process and Policy Measures that May Apply to Global Systemically Important Insurers

The IAIS, an association of insurance supervisors and regulators and a member of the Financial Stability Board (“FSB”), an international entity established to coordinate, develop and promote regulatory, supervisory and other financial sector policies in the interest of financial stability, is participating in the FSB’s initiative to identify and manage global systemically important financial institutions and has devised and published a methodology to assess the systemic relevance of global insurers and a framework of policy measures to be applied to G‑SIIs. In July 2013 and November 2014, the FSB published its lists of G-SIIs, based on the IAIS’ assessment methodology, each of which included MetLife, Inc. The FSB will continue to update the list annually.

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For G-SIIs which engage in activities deemed to be systemically risky, the framework of policy measures calls for imposition of additional capital (higher loss absorbency (“HLA”)) requirements on those activities. Given the absence of a common global base on which to calculate an HLA for insurers, the FSB directed the IAIS to develop basic capital requirements (“BCR”). G-SIIs will initially report BCR and HLA results to their group-wide supervisors on a confidential basis to allow for refinement of the BCR until fully adopted and implemented in 2019. Work on HLA development is in early stages and how the HLA requirements will be computed remains unclear. It is expected that the IAIS will publish an exposure draft of HLA requirements in June 2015; they are required to be finalized by the end of 2015. HLA requirements are to be applied in 2019 to companies designated as G-SIIs in 2017. In addition, on December 17, 2014, the IAIS released a first exposure draft of a risk-based global insurance capital standard (“ICS”) which will apply to all internationally active insurance groups, including G-SIIs. The IAIS will finalize an Interim ICS by the end of 2018 with the further goal of reaching an Ultimate ICS at some later date. The FSB and IAIS propose that national authorities ensure that any insurers identified as G-SIIs be subject to additional requirements consistent with the framework of policy measures, which include preparation of a systemic risk management plan, preparation of a recovery and resolution plan, enhanced liquidity planning and management, more intensive supervision, closer coordination among regulators through global supervisory colleges led by a regulator with group-wide supervisory authority, and a policy bias in favor of separation of non-traditional insurance and non-insurance activities from traditional insurance activities. The IAIS policy measures would need to be implemented by legislation or regulation in each applicable jurisdiction, and the impact on MetLife, Inc. and other designated G-SIIs is uncertain.

Summary of Critical Accounting Estimates

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

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

(ii) capitalization and amortization of deferred policy acquisition costs (“DAC”) and the establishment and amortization of value of business acquired (“VOBA”);

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

(iv) investment impairments;

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

(vi) measurement of goodwill and related impairment;

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

(viii) liabilities for litigation and regulatory matters.

In applying our accounting policies, we make subjective and complex judgments that frequently require estimates about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to our business and operations. Actual results could differ from these estimates.

The above critical accounting estimates are described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates” and Note 1 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report.

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Economic Capital

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

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

Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company’s consolidated net investment income, operating earnings or net income (loss).

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

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Results of Operations

Consolidated Results

Variable annuity sales increased 7% in response to the introduction of new products and/or enhancements in late 2014 and early 2015. We expect our sales of annuities to continue to increase in the future. Life sales also increased, driven by increases in our term life products, due to pricing actions, and whole life products, as a result of several large cases and continued focused marketing. A significant portion of our operating earnings is driven by separate account values. These separate account balances primarily affect the level of asset-based fee income but they also impact DAC amortization and asset-based commissions. Separate account balances are driven by sales, movements in the market, surrenders, withdrawals, benefit payments, transfers and policy charges. Separate account balances increased compared to the prior period as a result of continued strong market performance, partially offset by negative net flows from our deferred annuities business as surrenders and withdrawals exceeded sales.

	Three Months Ended March 31,
	2015			2014
	(In millions)
Revenues
Premiums	$	283		$	178
Universal life and investment-type product policy fees	718			805
Net investment income	635			735
Other revenues	120			142
Net investment gains (losses)	42			(506		)
Net derivative gains (losses)	85			(150		)
Total revenues	1,883			1,204
Expenses
Policyholder benefits and claims	592			568
Interest credited to policyholder account balances	257			269
Capitalization of DAC	(99		)	(76		)
Amortization of DAC and VOBA	195			273
Interest expense on debt	18			37
Other expenses	533			443
Total expenses	1,496			1,514
Income (loss) before provision for income tax	387			(310		)
Provision for income tax expense (benefit)	103			(111		)
Net income (loss)	$	284		$	(199	)

Three Months Ended March 31, 2015 Compared with the Three Months Ended March 31, 2014

During the three months ended March 31, 2015, income (loss) before provision for income tax increased $697 million ($483 million, net of income tax) from the prior period primarily driven by favorable changes in net investment gains (losses) and net derivative gains (losses).

We manage our investment portfolio using disciplined asset/liability management principles, focusing on cash flow and duration to support our current and future liabilities. Our intent is to match the timing and amount of liability cash outflows with invested assets that have cash inflows of comparable timing and amount, while optimizing risk-adjusted net investment income and risk-adjusted total return. Our investment portfolio is heavily weighted toward fixed income investments, with over 80% of our portfolio invested in fixed maturity securities and mortgage loans. These securities and loans have varying maturities and other characteristics which cause them to be generally well suited for matching the cash flow and duration of insurance liabilities. We also use derivatives as an integral part of our management of the investment portfolio to hedge certain risks, including changes in interest rates, foreign currency exchange rates, credit spreads and equity market levels.

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

The favorable change in net investment gains (losses) of $548 million ($356 million, net of income tax) was primarily the result of the prior period loss on the disposition of MetLife Assurance Limited (“MAL”). For further information on MAL, see Note 4 of the Notes to the Consolidated Financial Statements in the 2014 Annual Report.

We use freestanding interest rate, equity, credit and currency derivatives to hedge certain invested assets and insurance liabilities. Certain of these hedges are designated and qualify as accounting hedges, which reduce volatility in earnings. For those hedges not designated as accounting hedges, changes in market factors lead to the recognition of fair value changes in net derivative gains (losses) generally without an offsetting gain or loss recognized in earnings for the item being hedged which creates volatility in earnings.

Certain direct or assumed variable annuity products with guaranteed minimum benefits contain embedded derivatives that are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value recorded in net derivative gains (losses). We hedge the market risks inherent in these variable annuity guarantees through the use of freestanding derivatives. The valuation of these embedded derivatives includes a nonperformance risk adjustment, which is unhedged and can be a significant driver of net derivative gains (losses) and volatility in earnings, but does not have an economic impact on us.

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

	Three Months Ended   March 31,
	2015			2014
	(In millions)
Non-VA program derivatives
Interest rate	$	231		$	44
Foreign currency exchange rate	35			12
Credit	5			4
Equity	(50		)	(12		)
Non-VA embedded derivatives	(88		)	(109		)
Total non-VA program derivatives	133			(61		)
VA program derivatives
Embedded derivatives-direct/assumed guarantees:
Market risks	(111		)	(169		)
Nonperformance risk	16			44
Other risks	(53		)	(127		)
Total	(148		)	(252		)
Freestanding derivatives hedging direct/assumed embedded derivatives	100			163
Total VA program derivatives	(48		)	(89		)
Net derivative gains (losses)	$	85		$	(150	)

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The favorable change in net derivative gains (losses) on non-VA program derivatives was $194 million ($126 million, net of income tax). This was primarily due to higher interest rate volatility, increased notional, as well as mid to long-term interest rates, on average, decreasing more in the current period than in the prior period, favorably impacting received-fixed interest rate swaptions primarily hedging long duration liability portfolios.In addition, the strengthening of the U.S. dollar relative to other key currencies favorably impacted foreign currency swaps that primarily hedge foreign denominated fixed maturity securities.A change in the value of underlying assets and the recapture of a certain reinsurance agreement by an affiliate favorably impacted non-VA embedded derivatives related to affiliated ceded reinsurance written on a coinsurance with funds withheld basis. These favorable changes were partially offset by the unfavorable impact of equity indices increasing more in the current period than the prior period on equity options. Because certain of these hedging strategies are not designated or do not qualify as accounting hedges, the changes in the estimated fair value of these freestanding derivatives are recognized in net derivative gains (losses) without an offsetting gain or loss recognized in earnings for the item being hedged.

The favorable change in net derivative gains (losses) on VA program derivatives was $41 million ($27 million, net of income tax). This was due toa favorable change of $74 million ($48 million, net of income tax) on other risks in direct and assumed variable annuity embedded derivatives, partially offset by an unfavorable change of $28 million ($18 million, net of income tax) in the nonperformance risk adjustment on direct and assumed variable annuity embedded derivatives and an unfavorable change of $5 million ($3 million, net of income tax) related to the change in market risks on direct and assumed variable annuity embedded derivatives, net of the impact of freestanding derivatives hedging those risks. Other risks relate primarily to the impact of policyholder behavior and other non-market risks that generally cannot be hedged.

The foregoing $74 million ($48 million, net of income tax) favorable change in other risks in direct and assumed variable annuity embedded derivatives, which includes the impact of the recapture of certain variable annuities reinsurance by affiliates, reflected:

• A decrease in the mismatch of fund performance between actual and modeled funds which resulted in a favorable period over period change in the valuation of the direct and assumed variable annuity embedded derivatives.

• In-force changes between actual and modeled funds which resulted in an unfavorable period over period change in the valuation of the direct and assumed variable annuity embedded derivatives.

• A combination of other factors, including reserve changes influenced by benefit features and policyholder behavior, which resulted in a favorable period over period change in the valuation of embedded derivatives.

The aforementioned $28 million ($18 million, net of income tax) unfavorable change in the nonperformance risk adjustment, which includes the impact of the aforementioned recapture of certain variable annuities reinsurance, was due to an unfavorable change of $17 million, before income tax, related to changes in our own credit spread,as well as an unfavorable change of $11 million, before income tax, as a result of changes in capital market inputs, such as long-term interest rates and key equity index levels, on the variable annuity guarantees.

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

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

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

The foregoing $5 million ($3 million, net of income tax) unfavorable change was due to the impact of the aforementioned recapture of certain variable annuities reinsurance as well as due to the impact of changes in market factors on the direct and assumed variable annuity embedded derivatives, net of the freestanding derivatives hedging those market factors.

The primary changes in market factors are summarized as follows:

• Key equity index levels increased more in the current period than in the prior period, contributing to a favorable change in our embedded derivatives and an unfavorable change in our freestanding derivatives. For example, the Russell 2000 Index increased by 4% in the current period and increased by 1% in the prior period.

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• Key equity volatility measures increased in the current period and decreased in the prior period, contributing to a favorable change in our freestanding derivatives and an unfavorable change in our embedded derivatives.

Income tax expense for the three months ended March 31, 2015 was $103 million, or 27% of income (loss) before provision for income tax, compared with an income tax benefit of $111 million, or 36% of income (loss) before provision for income tax, for the three months ended March 31, 2014. The Company’s current period effective tax rate differs from the U.S. statutory rate of 35% primarily due to non-taxable investment income. The Company’s prior period effective tax rate was different from the U.S. statutory rate of 35% primarily due to non-taxable investment income and the tax effects of the MAL divestiture.

As more fully described in “— Non-GAAP and Other Financial Disclosures,” we use operating earnings, which does not equate to net income (loss), as determined in accordance with GAAP, to analyze our performance, evaluate segment performance, and allocate resources. We believe that the presentation of operating earnings, as we measure it for management purposes, enhances the understanding of our performance by highlighting the results of operations and the underlying profitability drivers of the business. Operating earnings should not be viewed as a substitute for net income (loss). Operating earnings decreased $63 million, net of income tax, to $273 million, net of income tax, for the three months ended March 31, 2015, from $336 million, net of income tax, for the three months ended March 31, 2014.

Reconciliation of net income (loss) to operating earnings

	Three Months   Ended   March 31,
	2015			2014
	(In millions)
Net income (loss)	$	284		$	(199	)
Less: Net investment gains (losses)	42			(506		)
Less: Net derivative gains (losses)	85			(150		)
Less: Other adjustments to net income (1)	(110		)	(131		)
Less: Provision for income tax (expense) benefit	(6		)	252
Operating earnings	$	273		$	336

____________

(1) See definitions of operating revenues and operating expenses under “— Non-GAAP and Other Financial Disclosures” for the components of such adjustments.

Reconciliation of GAAP revenues to operating revenues and GAAP expenses to operating expenses

	Three Months   Ended   March 31,
	2015		2014
	(In millions)
Total revenues	$	1,883	$	1,204
Less: Net investment gains (losses)	42		(506		)
Less: Net derivative gains (losses)	85		(150		)
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)	—		8
Less: Other adjustments to revenues (1)	5		95
Total operating revenues	$	1,751	$	1,757
Total expenses	$	1,496	$	1,514
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)	54		72
Less: Other adjustments to expenses (1)	61		162
Total operating expenses	$	1,381	$	1,280

____________

(1) See definitions of operating revenues and operating expenses under “— Non-GAAP and Other Financial Disclosures” for the components of such adjustments.

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Consolidated Results – Operating

	Three Months   Ended   March 31,
	2015			2014
	(In millions)
Operating revenues
Premiums	$	283		$	178
Universal life and investment-type product policy fees	652			722
Net investment income	696			715
Other revenues	120			142
Total operating revenues	1,751			1,757
Operating expenses
Policyholder benefits and claims	503			428
Interest credited to policyholder account balances	256			269
Capitalization of DAC	(99		)	(76		)
Amortization of DAC and VOBA	171			202
Interest expense on debt	17			19
Other expenses	533			438
Total operating expenses	1,381			1,280
Provision for income tax expense (benefit)	97			141
Operating earnings	$	273		$	336

Three Months Ended March 31, 2015 Compared with the Three Months Ended March 31, 2014

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

The primary drivers of the decrease in operating earnings were higher expenses, lower fee income and lower net investment income from a decrease in yields, partially offset by lower interest credited expense.

In our deferred annuity business, the impact of negative net flows contributed to a decrease in asset-based fee income and reduced interest credited expense in the general account. Asset-based fee income also declined related to the assumed variable annuity reinsurance agreements recaptured in connection with the Mergers. Direct business expenses were higher however this was offset by lower costs associated with our variable annuity guaranteed minimum death benefits. A decrease in funding agreements in our Corporate Benefit Funding segment and the aforementioned negative net flows in our deferred annuity business were partially offset by positive net flows in our universal life business, which caused a decrease in invested assets, resulting in a slight decrease in net investment income. This was partially offset by the related decrease in interest credited expense in our Corporate Benefit Funding segment. The changes in business growth discussed above resulted in a $48 million decrease in operating earnings.

Operating earnings decreased as a result of the unfavorable impact of changes in market factors on other limited partnership interests and lower yields on fixed maturity securities reflecting reinvestment in the sustained low interest rate environment. These declines were partially offset by improved returns on our interest rate derivatives and increased prepayment fees. In our deferred annuity business, higher average separate account balances drove an increase in asset-based fee income and lower costs associated with our variable annuity guaranteed minimum death benefits. Operating earnings decreased due to higher interest credited expense in our Corporate Benefit Funding segment as a result of higher average interest credited rates, partially offset by lower interest credited expense in our Retail segment as a result of reduced average interest credited rates. The changes in market factors, including equity markets and interest rates, discussed above resulted in a $14 million decrease in operating earnings.

Also contributing to the decline in operating earnings were higher expenses of $36 million, mainly driven by higher interest expense associated with affiliated ceded funds withheld reinsurance treaties and higher employee-related costs.

Favorable claims experience in our traditional life, variable and universal life and immediate annuities businesses, partially offset by unfavorable claims experience in our structured settlement and direct businesses, increased operating earnings by $8 million. DAC amortization decreased due to lower yields, the decrease in our deferred annuity in-force business from the negative net flows and more favorable separate account returns in the current period as compared to the prior period, resulting in a $23 million increase in operating earnings.

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Adoption of New Accounting Pronouncements

See Note 1 of the Notes to the Interim Condensed Consolidated Financial Statements.

Future Adoption of New Accounting Pronouncements

See Note 1 of the Notes to the Interim Condensed Consolidated Financial Statements.

Non-GAAP and Other Financial Disclosures

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

Operating revenues and operating expenses exclude results of discontinued operations and other businesses that have been or will be sold or exited by the Company and are referred to as divested businesses. Operating revenues also excludes net investment gains (losses) and net derivative gains (losses). Operating expenses also excludes goodwill impairments.

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

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

• Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain 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.

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

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

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

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

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

• Other expenses excludes costs related to: (i) implementation of new insurance regulatory requirements, and (ii) acquisition and integration costs.

We believe the presentation of operating earnings, as we measure it for management purposes, enhances the understanding of our performance by highlighting the results of operations and the underlying profitability drivers of our business. Operating revenues, operating expenses and operating earnings should not be viewed as substitutes for the following financial measures calculated in accordance with GAAP: GAAP revenues, GAAP expenses, and net income (loss), respectively. Reconciliations of these measures to the most directly comparable GAAP measures are included in “— Results of Operations.”

In this discussion, we sometimes refer to sales activity for various products. These sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity. The following additional information is relevant to an understanding of our financial results:

• Allocated equity is defined as the portion of common stockholders’ equity that management allocates to each of its segments and sub-segments based on MetLife’s economic capital model, coupled with considerations of local capital requirements. See “— Economic Capital.”

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Item 4. Controls and Procedures

Management, with the participation of the Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures as defined in Rule 15d-15(e) under the Securities Exchange Act of 1934, (“Exchange Act”), as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that these disclosure controls and procedures are effective.

There were no changes to the Company’s internal control over financial reporting as defined in Exchange Act Rule 15d-15(f) during the quarter ended March 31, 2015 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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Part II — Other Information

Item 1. Legal Proceedings

The following should be read in conjunction with (i) Part I, Item 3, of the 2014 Annual Report; and (ii) Note 9 of the Notes to the Interim Condensed Consolidated Financial Statements in Part I of this report.

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

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

Item 1A.Risk Factors

The following should be read in conjunction with, and supplements and amends, the factors that may affect the Company's business or operations described under “Risk Factors” in Part I, Item 1A, of the 2014 Annual Report. Other than as described in this Item 1A, there have been no other material changes to our risk factors from the risk factors previously disclosed in the 2014 Annual Report.

Regulatory and Legal Risks

Our Insurance Businesses Are Highly Regulated, and Changes in Regulation and in Supervisory and Enforcement Policies May Reduce Our Profitability and Limit Our Growth

The following updates and replaces the similarly named sections of the risk factor entitled “Our Insurance Businesses Are Highly Regulated, and Changes in Regulation and in Supervisory and Enforcement Policies May Reduce Our Profitability and Limit Our Growth” included in the 2014 Annual Report. There have been no material changes to other sections of such risk factor. These sections include: “Insurance Regulation — U.S. Federal Regulation Affecting Insurance” and “General” within such risk factor included in the 2014 Annual Report.

Our insurance operations are subject to a wide variety of insurance and other laws and regulations. See “Business — Regulation — Insurance Regulation” included in the 2014 Annual Report, as supplemented by discussions of regulatory developments elsewhere herein and in our subsequently filed Quarterly Reports on Form 10-Q under the caption “Regulatory Developments” within “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and as further supplemented below.

Insurance Regulation

State insurance regulators and the National Association of Insurance Commissioners (“NAIC”) regularly re-examine existing laws and regulations applicable to insurance companies and their products. Changes in these laws and regulations, or in interpretations thereof, that are made for the benefit of the consumer sometimes lead to additional expense for the insurer and, thus, could have a material adverse effect on our financial condition and results of operations.

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State insurance regulators and the NAIC are investigating the use of affiliated captive reinsurers and offshore entities to reinsure insurance risks. Like many life insurance companies, we utilize captive reinsurers to satisfy reserve and capital requirements related to universal life and term life insurance policies. Insurance regulators in a few states, including New York and California, have imposed a moratorium on new reinsurance transactions between life insurers domiciled in those states and captive reinsurers. If insurance regulators in Delaware restrict the use of such captive reinsurers, or if we otherwise are unable to continue to use captive reinsurers in the future, our ability to write certain products and/or our RBC ratios and ability to deploy excess capital, could be adversely affected or we may need to increase prices on those products, which could adversely impact our competitive position and our results of operations.

ERISA Considerations

We provide products and services to certain employee benefit plans that are subject to ERISA or the Code. As such, our activities are subject to the restrictions imposed by ERISA and the Code, including the requirement under ERISA that fiduciaries must perform their duties solely in the interests of ERISA plan participants and beneficiaries, and that fiduciaries may not cause a covered plan to engage in certain prohibited transactions.

The prohibited transaction rules of ERISA and the Code generally restrict the provision of investment advice to ERISA plans and participants and IRAs if the investment recommendation results in fees paid to the individual advisor, his or her firm or their affiliates that vary according to the investment recommendation chosen.

The DOL proposed new regulations in April 2015 that would substantially expand the definition of “investment advice” and thereby broaden the circumstances under which MetLife, in providing investment advice with respect to ERISA plans or IRAs, could be deemed a fiduciary under ERISA or the Code. The DOL also proposed amendments to its prohibited transaction exemption that would apply more onerous disclosure and contract requirements to, and increase fiduciary requirements in respect of, transactions involving ERISA plans, plan participants and IRAs. If the new DOL proposals become final, MetLife may find it necessary to change sales representative and/or broker compensation and may limit the assistance or advice they can provide.

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Business — Regulatory Developments — ERISA Considerations,” as well as “Business — Regulation — ERISA Considerations” included in the 2014 Annual Report, for additional information regarding ERISA considerations.

Regulation of MetLife, Inc. as a Non-Bank SIFI or as Systemically Important Under Other Regulations Proposed by National or International Authorities Could Adversely Affect Our Ability to Compete and Our Business and Results of Operations

The following updates and replaces the similarly named section of the risk factor entitled “Regulation of MetLife, Inc. as a Non-Bank SIFI or as Systemically Important Under Other Regulations Proposed by National or International Authorities Could Adversely Affect Our Ability to Compete and Our Business and Results of Operations” included in the 2014 Annual Report. There have been no other material changes to such risk factor. See “Global Systemically Important Insurers” within such risk factor included in the 2014 Annual Report.

Regulation of MetLife, Inc. as a Non-Bank SIFI

Many of the regulatory requirements that will apply to MetLife, Inc. as a non-bank SIFI have not been specified. The Federal Reserve Board has indicated that it plans to apply enhanced prudential standards to non-bank SIFIs by rule or order. Accordingly, the manner in which these proposed standards might apply to MetLife, Inc. and its impact on us remains unclear. Regulation of MetLife, Inc. as a non-bank SIFI could materially and adversely affect our business.

In particular, the Federal Reserve Board has not determined the requirements that will govern the amount and composition of capital that MetLife, Inc. is required to hold. If the Federal Reserve Board requires insurers that are non-bank SIFIs to comply with capital standards or regimes (such as the Basel capital rules that were developed for banks) that do not take into account the insurance business model and the differences between banks and insurers, our business and competitive position could be materially and adversely affected. Enhanced capital requirements could adversely affect our ability to compete with other insurers that are not subject to those requirements, and our ability to issue guarantees could be constrained. We could have to raise the price of the products we offer, reduce the amount of risk we take on, or stop offering certain products altogether. Legislation was signed into law on December 18, 2014 relieving the Federal Reserve Board from certain provisions in Dodd-Frank that it believed constrained its ability to tailor capital rules for insurers that are non-bank SIFIs.

82

Additional prudential standards that the Federal Reserve Board may promulgate for non-bank SIFIs will likely include enhanced RBC requirements, leverage limits, liquidity requirements, single counterparty exposure limits, governance requirements for risk management, stress test requirements, special debt-to-equity limits for certain companies, and early remediation procedures. In addition, non-bank SIFIs are required to submit a resolution plan setting forth how the company could be resolved under the Bankruptcy Code in the event of material financial distress. The Federal Reserve Board also has the right to require us or any of our insurance company affiliates, to take prompt action to correct any financial weaknesses. In addition, under the Volcker Rule, the Federal Reserve Board could impose additional capital requirements and quantitative limits on certain trading and investment activities of a non-bank SIFI. As a result of MetLife, Inc.’s designation as a non-bank SIFI, MetLife, Inc. will be subject to such requirements and limits as the Federal Reserve Board may impose, which could adversely affect our competitive position.

As a non-bank SIFI, MetLife, Inc. may consider structural and other business alternatives that may be available to it in response to such a designation, and we cannot predict the impact that any such alternatives, if implemented, may have on us.

Non-bank SIFIs and certain other large financial companies can be assessed under Dodd-Frank for any uncovered costs arising in connection with the resolution of a systemically important financial company. In addition, as a non-bank SIFI, MetLife, Inc. must pay, beginning in 2015, certain assessments and other charges.

Moreover, other national and international authorities have also proposed measures intended to increase the intensity of regulation of large financial institutions, requiring greater coordination among regulators and efforts to harmonize regulatory regimes. If such measures were adopted, including as a result of MetLife, Inc.’s designation as a non-bank SIFI, they could materially adversely affect our ability to conduct business, our results of operations and financial condition.

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Business — Regulatory Developments — Regulation of MetLife, Inc. as a Non-Bank SIFI,” as well as “Business — Regulation — Regulation of MetLife, Inc. as a Non-Bank SIFI” included in the 2014 Annual Report, for additional information regarding regulation of MetLife, Inc. as a non-bank SIFI.

83

Item 6. Exhibits

(Note Regarding Reliance on Statements in Our Contracts: In reviewing the agreements included as exhibits to this Quarterly Report on Form 10-Q, please remember that they are included to provide you with information regarding their terms and are not intended to provide any other factual or disclosure information about MetLife Insurance Company USA and its subsidiaries, or the other parties to the agreements. The agreements contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and (i) should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate; (ii) have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement; (iii) may apply standards of materiality in a way that is different from what may be viewed as material to investors; and (iv) were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments. Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time. Additional information about MetLife Insurance Company USA and its subsidiaries may be found elsewhere in this Quarterly Report on Form 10-Q and MetLife Insurance Company USA’s other public filings, which are available without charge through the U.S. Securities and Exchange Commission (“SEC”) website at www.sec.gov.)

Exhibit No.	Description
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.

84

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

METLIFE INSURANCE COMPANY USA
By:		/s/ Peter M. Carlson
	Name:	Peter M. Carlson
	Title:	Executive Vice President
		and Chief Accounting Officer
		(Authorized Signatory and Principal Accounting Officer)

Date: May 13, 2015

85

Exhibit Index

(Note Regarding Reliance on Statements in Our Contracts: In reviewing the agreements included as exhibits to this Quarterly Report on Form 10-Q, please remember that they are included to provide you with information regarding their terms and are not intended to provide any other factual or disclosure information about MetLife Insurance Company USA and its subsidiaries, or the other parties to the agreements. The agreements contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and (i) should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate; (ii) have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement; (iii) may apply standards of materiality in a way that is different from what may be viewed as material to investors; and (iv) were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments. Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time. Additional information about MetLife Insurance Company USA and its subsidiaries may be found elsewhere in this Quarterly Report on Form 10-Q and MetLife Insurance Company USA’s other public filings, which are available without charge through the SEC’s website at www.sec.gov.)

Exhibit No.	Description
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

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Eric T. Steigerwalt, certify that:

1. I have reviewed this quarterly report on Form 10-Q of MetLife Insurance Company USA;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 13, 2015

/s/ Eric T. Steigerwalt

Eric T. Steigerwalt

Chairman of the Board, President and

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Anant Bhalla, certify that:

1. I have reviewed this quarterly report on Form 10-Q of MetLife Insurance Company USA;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 13, 2015

/s/ Anant Bhalla

Anant Bhalla

Senior Vice President and

Chief Financial Officer

EX-32.1

Exhibit 32.1

SECTION 906 CERTIFICATION

CERTIFICATION PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED

STATES CODE

I, Eric T. Steigerwalt, certify that (i) MetLife Insurance Company USA’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 (the “Form 10-Q”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of MetLife Insurance Company USA.

Date: May 13, 2015

/s/ Eric T. Steigerwalt

Eric T. Steigerwalt

Chairman of the Board, President and

Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to MetLife Insurance Company USA and will be retained by MetLife Insurance Company USA and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

SECTION 906 CERTIFICATION

CERTIFICATION PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED

STATES CODE

I, Anant Bhalla, certify that (i) MetLife Insurance Company USA’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 (the “Form 10-Q”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of MetLife Insurance Company USA.

Date: May 13, 2015

/s/ Anant Bhalla

Anant Bhalla

Senior Vice President and

Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to MetLife Insurance Company USA and will be retained by MetLife Insurance Company USA and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Investments (Credit Quality of Agricultural and Residential Mortgage Loans) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Agricultural Mortgage Loans - by Credit Quality Indicator:
Recorded Investment	$ 1,324	$ 1,303
% of Total	100.00%	100.00%
Less than 65%
Agricultural Mortgage Loans - by Credit Quality Indicator:
Recorded Investment	1,207	1,239
% of Total	91.20%	95.10%
65% to 75%
Agricultural Mortgage Loans - by Credit Quality Indicator:
Recorded Investment	$ 117	$ 64
% of Total	8.80%	4.90%

XML

Investments (Mortgage Loans - Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2015 Contracts	Mar. 31, 2014	Dec. 31, 2014 Contracts
Financing Receivable, Recorded Investment [Line Items]
Percentage of Mortgage Loans Classified as Performing	99.00%		99.00%
Loans and Leases Receivable, Number of Contract, Nonperforming, Nonaccrual of Interest	0		0
Past Due Status of Mortgage Loans	$ 0		$ 0
Financing Receivable, Modifications, Number of Contracts	0	0
Commercial
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Average Recorded Investment	0	72,000,000
Agricultural
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Average Recorded Investment	3,000,000	4,000,000
Estimated fair value of mortgage loans held-for-investment	$ 1,400,000,000		$ 1,400,000,000

XML

Investments (Components of Net Investment Gains Losses) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Marketable Securities, Gain (Loss) [Abstract]
Fixed maturity securities — net gains (losses) on sales and disposals	$ 25	$ 16
Equity securities — net gains (losses) on sales and disposals	(1)	4
Other net investment gains (losses):
Mortgage loans	(1)	9
Real estate and real estate joint ventures	23	(2)
Other limited partnership interests	(1)	(2)
Other investment portfolio gains (losses)	2	(1)
Subtotal — investment portfolio gains (losses)	44	23
FVO CSEs - changes in estimated fair value:
Commercial mortgage loans	(3)	1
Long-term debt — related to commercial mortgage loans	1	1
Non-investment portfolio gains (losses)	0	(531)
Subtotal FVO CSEs and non-investment portfolio gains (losses)	(2)	(529)
Total net investment gains (losses)	42	(506)
Fixed maturity securities
Marketable Securities, Gain (Loss) [Abstract]
Total OTTI losses recognized in earnings	(3)	(1)
Net investment gains (losses)	22	15
Consumer
Marketable Securities, Gain (Loss) [Abstract]
Total OTTI losses recognized in earnings	0	(1)
Industrial
Marketable Securities, Gain (Loss) [Abstract]
Total OTTI losses recognized in earnings	(1)	0
U.S. corporate and foreign corporate securities
Marketable Securities, Gain (Loss) [Abstract]
Total OTTI losses recognized in earnings	(1)	(1)
RMBS
Marketable Securities, Gain (Loss) [Abstract]
Total OTTI losses recognized in earnings	(2)	0
Equity securities
Marketable Securities, Gain (Loss) [Abstract]
Total OTTI losses recognized in earnings	0	0
Net investment gains (losses)	$ (1)	$ 4

XML

Derivatives (Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Offsetting Assets [Line Items]
Derivative Asset, Fair Value, Gross Asset Excluding Accruals	$ 4,340	$ 3,664
Derivative Liability, Fair Value, Gross Liability Excluding Accruals	2,004	1,840
Amounts offset in the consoilidated balance sheets, Assets	0	0
Amounts offset in the consoilidated balance sheets, Liabilities	0	0
Estimated fair value of derivative assets presented in the consolidated balance sheets	4,340	3,664
Estimated fair value of derivative liabilities presented in the consolidated balance sheets	2,004	1,840
Net amount of derivative assets after application of master netting agreements and cash collateral	72	92
Net amount of derivative liabilities after application of master netting agreements and cash collateral	0	1
OTC-bilateral
Offsetting Assets [Line Items]
Derivative Asset, Fair Value, Gross Asset Excluding Accruals	4,227	3,554
Derivative Liability, Fair Value, Gross Liability Excluding Accruals	1,909	1,767
Gross estimated fair value of derivative assets	(1,722)	(1,592)
Gross estimated fair value of derivative liabilities	(1,722)	(1,592)
Cash collateral on derivative assets	(1,660)	(753)
Cash collateral on derivative liabilities	0	0
Securities collateral on derivative assets	(796)	(1,152)
Securities collateral on derivative liabilities	(188)	(175)
OTC-cleared
Offsetting Assets [Line Items]
Derivative Asset, Fair Value, Gross Asset Excluding Accruals	90	75
Derivative Liability, Fair Value, Gross Liability Excluding Accruals	95	73
Gross estimated fair value of derivative assets	(67)	(54)
Gross estimated fair value of derivative liabilities	(67)	(54)
Cash collateral on derivative assets	(23)	(21)
Cash collateral on derivative liabilities	(26)	(18)
Securities collateral on derivative assets	0	0
Securities collateral on derivative liabilities	(1)	0
Exchange-traded
Offsetting Assets [Line Items]
Derivative Asset, Fair Value, Gross Asset Excluding Accruals	23	35
Derivative Liability, Fair Value, Gross Liability Excluding Accruals	0	0
Gross estimated fair value of derivative assets	0	0
Gross estimated fair value of derivative liabilities	0	0
Cash collateral on derivative assets	0	0
Cash collateral on derivative liabilities	0	0
Securities collateral on derivative assets	0	0
Securities collateral on derivative liabilities	$ 0	$ 0

XML

Investments (Cash Equivalents - Narrative) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]
Cash equivalents	$ 245	$ 681

XML

Fair Value (Fair Value Option for Certain Assets and Liabilities) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Fair Value, Option, Quantitative Disclosures [Line Items]
Carrying value at estimated fair value	$ 6,120	$ 5,839
Carrying value at estimated fair value	921	928
Consolidated Securitization Entities
Fair Value, Option, Quantitative Disclosures [Line Items]
Unpaid principal balance	218	223
Difference between estimated fair value and unpaid principal balance	54	57
Carrying value at estimated fair value	272	280
Contractual principal balance	127	133
Difference between estimated fair value and contractual principal balance	5	6
Carrying value at estimated fair value	$ 132	$ 139

XML

Investments (Unconsolidated Variable Interest Entities) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Variable Interest Entity [Line Items]
Carrying Amount Asset	$ 14,917	$ 11,725
Carrying Amount liability	15,315	12,127
Other limited partnership interests
Variable Interest Entity [Line Items]
Carrying Amount Asset	1,767	1,774
Carrying Amount liability	2,156	2,162
Real estate joint ventures
Variable Interest Entity [Line Items]
Carrying Amount Asset	47	47
Carrying Amount liability	51	51
Other invested assets
Variable Interest Entity [Line Items]
Carrying Amount Asset	41	37
Carrying Amount liability	46	47
Structured securities (RMBS, CMBS and ABS)
Variable Interest Entity [Line Items]
Carrying Amount Asset	12,503	9,322
Carrying Amount liability	12,503	9,322
U.S. and foreign corporate
Variable Interest Entity [Line Items]
Carrying Amount Asset	541	526
Carrying Amount liability	541	526
Non-redeemable preferred stock
Variable Interest Entity [Line Items]
Carrying Amount Asset	18	19
Carrying Amount liability	$ 18	$ 19

XML

Investments (Maturities of Fixed Maturity Securities) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Available-for-sale Securities, Debt Maturities [Abstract]
Due in One Year or Less	$ 3,081
Due After One Year Through Five Years	10,178
Due After Five Years Through Ten Years	7,520
Due After Ten Years	15,290
Structured Securities	12,164
Amortized cost	48,233	46,423
Due in One Year or Less	3,108
Due After One Year Through Five Years	10,611
Due After Five Years Through Ten Years	7,973
Due After Ten Years	18,870
Structured Securities	12,503
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $48,233 and $46,423, respectively)	$ 53,065	$ 50,697

XML

Fair Value (Nonrecurring Fair Value Measurements) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Level 3 | Mortgage loans, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value After Measurement	$ 3	$ 17
Level 3 | Other limited partnership interests
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value After Measurement	0	4
Nonrecurring | Mortgage loans, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gains (Losses)	0	0
Nonrecurring | Other limited partnership interests
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gains (Losses)	$ (1)	$ (2)

XML

Derivatives (Changes in Estimated Fair Value Related to Embedded Derivatives) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives gains (losses)	$ (236)	$ (361)
Net derivative gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives gains (losses)	(236)	(361)
Policyholder benefits and claims
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives gains (losses)	$ 24	$ 15

XML

Related Party Transactions (Service Agreements - Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Related Party Transaction, Due from (to) Related Party [Abstract]
Net receivables (payables) due from (to) affiliates	$ 100		$ 26
Related Party Transaction [Line Items]
Other expenses	647	677
Universal life and investment-type product policy fees	718	805
Other revenues	120	142
Affiliated Entity
Related Party Transaction [Line Items]
Other expenses	391	333
Universal life and investment-type product policy fees	63	67
Other revenues	$ 50	$ 53

XML

Investments (Securities Lending - Narrative) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Amortized cost
Securities Financing Transaction [Line Items]
Securities Loaned	$ 6,488	$ 5,748
Amortized cost | Reserve for Off-balance Sheet Activities [Member]
Securities Financing Transaction [Line Items]
Securities Loaned	26
Estimated fair value
Securities Financing Transaction [Line Items]
Securities Loaned	7,664	6,703
Estimated fair value | Reserve for Off-balance Sheet Activities [Member]
Securities Financing Transaction [Line Items]
Securities Loaned	$ 26

XML

Fair Value (Quantitative Information) (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Interest rate contracts | Minimum | Income Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Swap yield	2.56%	2.78%
Interest rate contracts | Maximum | Income Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Swap yield	2.71%	2.97%
Credit contracts | Minimum | Income Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Credit spreads	0.99%	0.99%
Credit contracts | Maximum | Income Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Credit spreads	0.99%	0.99%
Equity market contracts | Minimum | Income Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Volatility	15.00%	15.00%
Correlation	70.00%	70.00%
Equity market contracts | Maximum | Income Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Volatility	28.00%	27.00%
Correlation	70.00%	70.00%
Embedded derivatives direct and ceded guaranteed minimum benefits | Income Approach Valuation Technique | Durations 1 - 10
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Lapse Rate, Low End	0.50%	0.50%
Lapse Rate, High End	100.00%	100.00%
Embedded derivatives direct and ceded guaranteed minimum benefits | Income Approach Valuation Technique | Durations 11 - 20
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Lapse Rate, Low End	3.00%	3.00%
Lapse Rate, High End	100.00%	100.00%
Embedded derivatives direct and ceded guaranteed minimum benefits | Income Approach Valuation Technique | Durations 21 - 116
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Lapse Rate, Low End	3.00%	3.00%
Lapse Rate, High End	100.00%	100.00%
Embedded derivatives direct and ceded guaranteed minimum benefits | Income Approach Valuation Technique | Ages 0 - 40
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Mortality Rate, Low End	0.00%	0.00%
Mortality Rate, High End	0.09%	0.10%
Embedded derivatives direct and ceded guaranteed minimum benefits | Income Approach Valuation Technique | Ages 41 - 60
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Mortality Rate, Low End	0.04%	0.04%
Mortality Rate, High End	0.65%	0.65%
Embedded derivatives direct and ceded guaranteed minimum benefits | Income Approach Valuation Technique | Ages 61 - 115
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Mortality Rate, Low End	0.26%	0.26%
Mortality Rate, High End	100.00%	100.00%
Embedded derivatives direct and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Utilization rates	0.00%	20.00%
Withdrawal rates	0.08%	0.07%
Long-term equity volatilities	17.40%	17.40%
Nonperformance risk spread	0.04%	0.03%
Embedded derivatives direct and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Utilization rates	30.00%	50.00%
Withdrawal rates	10.00%	10.00%
Long-term equity volatilities	25.00%	25.00%
Nonperformance risk spread	0.48%	1.39%
U.S. corporate and foreign corporate securities | Minimum | Market Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Delta spread adjustments	(0.35%)	(0.35%)
Offered quotes	68	78
Quoted prices	13	0
U.S. corporate and foreign corporate securities | Maximum | Market Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Delta spread adjustments	2.40%	2.40%
Offered quotes	780	103
Quoted prices	531	750
U.S. corporate and foreign corporate securities | Weighted Average | Market Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Delta spread adjustments	0.47%	0.51%
Offered quotes	487	86
Quoted prices	105	418
RMBS | Minimum | Market Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Offered quotes	30	1
RMBS | Maximum | Market Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Offered quotes	114	117
RMBS | Weighted Average | Market Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Offered quotes	94	93
ABS | Minimum | Market Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Offered quotes	64	62
Quoted prices	91	97
ABS | Maximum | Market Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Offered quotes	106	106
Quoted prices	109	108
ABS | Weighted Average | Market Approach Valuation Technique
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Offered quotes	100	99
Quoted prices	100	101

XML

Contingencies, Commitments and Guarantees (Commitments and Guarantees - Narrative) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Mortgage Loan Commitments
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	$ 372	$ 36
Commitments to Fund Partnership Investments and Private Corporate Bond Investments
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	1,100	918
Secured Demand Notes | Affiliated Entity
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	32	32
Securities Pledged as Collateral, at Fair Value	$ 60	$ 57

XML

Fair Value (Recurring Fair Value Measurements) (Narrative) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Equity Securities	$ 480	$ 459
Net Embedded Derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Equity Securities	$ (58)		$ (48)

XML

Related Party Transactions (Effects of Affiliated Reinsurance on Statements of Operations) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Premiums:
Net premiums	$ 283	$ 178
Universal life and investment-type product policy fees:
Net universal life and investment-type product policy fees	718	805
Other revenues:
Other revenues	120	142
Policyholder benefits and claims:
Net policyholder benefits and claims	592	568
Interest credited to policyholder account balances:
Net interest credited to policyholder account balances	257	269
Other expenses:
Net other expenses	647	677
Affiliated Entity
Universal life and investment-type product policy fees:
Net universal life and investment-type product policy fees	63	67
Other revenues:
Other revenues	50	53
Other expenses:
Net other expenses	391	333
Affiliated Entity | Assumed
Premiums:
Reinsurance assumed	25	10
Universal life and investment-type product policy fees:
Reinsurance assumed	31	81
Other revenues:
Reinsurance assumed	0	4
Policyholder benefits and claims:
Reinsurance assumed	35	37
Interest credited to policyholder account balances:
Reinsurance assumed	19	23
Other expenses:
Reinsurance assumed	15	18
Affiliated Entity | Ceded
Premiums:
Reinsurance ceded	(200)	(263)
Universal life and investment-type product policy fees:
Reinsurance ceded	(87)	(94)
Other revenues:
Reinsurance ceded	58	71
Policyholder benefits and claims:
Reinsurance ceded	(240)	(310)
Interest credited to policyholder account balances:
Reinsurance ceded	(37)	(33)
Other expenses:
Reinsurance ceded	50	22
Affiliated Entity | Reinsurance [Member]
Premiums:
Net premiums	(175)	(253)
Universal life and investment-type product policy fees:
Net universal life and investment-type product policy fees	(56)	(13)
Other revenues:
Other revenues	58	75
Policyholder benefits and claims:
Net policyholder benefits and claims	(205)	(273)
Interest credited to policyholder account balances:
Net interest credited to policyholder account balances	(18)	(10)
Other expenses:
Net other expenses	$ 65	$ 40

XML

Fair Value (Unobservable Input Reconciliation) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Interest rate contracts
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Balance, beginning of period	$ 45	$ 11
OCI	10	20
Purchases	0	0
Sales	0	0
Issuances	0	0
Settlements	(7)	(1)
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Balance, end of period	48	37
Interest rate contracts | Net investment income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Interest rate contracts | Net investment gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Interest rate contracts | Net derivative gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	6
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Net Income (Loss)	0	7
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	6
Interest rate contracts | Policyholder benefits and claims
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Credit contracts
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Balance, beginning of period	1	6
OCI	0	0
Purchases	0	0
Sales	0	0
Issuances	0	0
Settlements	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Balance, end of period	0	4
Credit contracts | Net investment income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Credit contracts | Net investment gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Credit contracts | Net derivative gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	(2)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Net Income (Loss)	(1)	(2)
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	(2)
Credit contracts | Policyholder benefits and claims
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Equity market contracts
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Balance, beginning of period	(242)	(309)
OCI	0	0
Purchases	0	0
Sales	0	0
Issuances	0	0
Settlements	1	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Balance, end of period	(273)	(345)
Equity market contracts | Net investment income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Equity market contracts | Net investment gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Equity market contracts | Net derivative gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	(33)	(39)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Net Income (Loss)	(33)	(40)
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	(33)	(39)
Equity market contracts | Policyholder benefits and claims
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	1	4
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Net Income (Loss)	1	4
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	1	4
Net Embedded Derivatives
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Balance, beginning of period	(347)	288
OCI	0	1
Purchases	0	0
Sales	0	0
Issuances	0	0
Settlements	(116)	(210)
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Balance, end of period	(662)	(262)
Net Embedded Derivatives | Net investment income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Net Embedded Derivatives | Net investment gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Net Embedded Derivatives | Net derivative gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	(224)	(349)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Net Income (Loss)	(223)	(356)
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	(224)	(349)
Net Embedded Derivatives | Policyholder benefits and claims
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	25	16
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Net Income (Loss)	24	15
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	25	16
U.S. corporate
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	1,355	1,270
OCI	12	29
Purchases	58	23
Sales	(7)	(37)
Issuances	0	0
Settlements	0	0
Transfers into Level 3	35	197
Transfers out of Level 3	(2)	(61)
Balance, end of period	1,452	1,421
U.S. corporate | Net investment income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	1	1
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	1	1
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	1	1
U.S. corporate | Net investment gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	(1)
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	(1)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	(1)
U.S. corporate | Net derivative gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
U.S. corporate | Policyholder benefits and claims
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Foreign corporate
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	710	779
OCI	(10)	16
Purchases	2	3
Sales	(11)	(1)
Issuances	0	0
Settlements	0	0
Transfers into Level 3	8	0
Transfers out of Level 3	0	(40)
Balance, end of period	699	757
Foreign corporate | Net investment income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Foreign corporate | Net investment gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Foreign corporate | Net derivative gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Foreign corporate | Policyholder benefits and claims
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
RMBS
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	716	450
OCI	(1)	3
Purchases	248	146
Sales	(38)	(35)
Issuances	0	0
Settlements	0	0
Transfers into Level 3	0	14
Transfers out of Level 3	(6)	(19)
Balance, end of period	921	563
RMBS | Net investment income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	2	1
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	2	1
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	2	1
RMBS | Net investment gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	3
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
RMBS | Net derivative gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
RMBS | Policyholder benefits and claims
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
ABS
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	181	426
OCI	1	4
Purchases	292	58
Sales	(8)	(6)
Issuances	0	0
Settlements	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	(47)	(289)
Balance, end of period	419	193
ABS | Net investment income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
ABS | Net investment gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
ABS | Net derivative gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
ABS | Policyholder benefits and claims
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
CMBS
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	148	129
OCI	0	0
Purchases	74	34
Sales	0	(9)
Issuances	0	0
Settlements	0	0
Transfers into Level 3	0	6
Transfers out of Level 3	(35)	(16)
Balance, end of period	187	144
CMBS | Net investment income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
CMBS | Net investment gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
CMBS | Net derivative gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
CMBS | Policyholder benefits and claims
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Non-redeemable preferred stock
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	71	100
OCI	(3)	0
Purchases	0	0
Sales	0	0
Issuances	0	0
Settlements	0	0
Transfers into Level 3	0	8
Transfers out of Level 3	(6)	0
Balance, end of period	62	108
Non-redeemable preferred stock | Net investment income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Non-redeemable preferred stock | Net investment gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Non-redeemable preferred stock | Net derivative gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Non-redeemable preferred stock | Policyholder benefits and claims
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Common stock
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	29	31
OCI	0	(2)
Purchases	0	0
Sales	0	(6)
Issuances	0	0
Settlements	0	0
Transfers into Level 3	0	6
Transfers out of Level 3	(1)	0
Balance, end of period	28	33
Common stock | Net investment income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Common stock | Net investment gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	4
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Common stock | Net derivative gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Common stock | Policyholder benefits and claims
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Short-term Investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	71	0
OCI	0	0
Purchases	307	150
Sales	(16)	0
Issuances	0	0
Settlements	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	(55)	0
Balance, end of period	307	150
Short-term Investments | Net investment income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Short-term Investments | Net investment gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Short-term Investments | Net derivative gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Short-term Investments | Policyholder benefits and claims
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Separate account assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	158	153
OCI	0	0
Purchases	0	4
Sales	(2)	(2)
Issuances	0	0
Settlements	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Balance, end of period	156	160
Separate account assets | Net investment income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Separate account assets | Net investment gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	5
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Separate account assets | Net derivative gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Separate account assets | Policyholder benefits and claims
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net Income (Loss)	0	0
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Changes in Unrealized Gains (Losses) Included in Net Income (Loss)	$ 0	$ 0

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Derivatives (Credit Risk on Freestanding Derivatives) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Credit Derivatives [Line Items]
Estimated Fair Value of Derivatives in Net Liability Position	$ 187	$ 175
Fair Value Of Incremental Collateral Provided Upon A One Notch Downgrade In The Company's Credit Rating	0	0
Fair Value Of Incremental Collateral Provided Upon A Downgrade In The Company's Credit Rating to a Level that Triggers Full Overnight Collateralization or Termination of the Derivative Position	0	0
Fixed Maturity Securities
Credit Derivatives [Line Items]
Estimated Fair Value of Collateral Provided	$ 212	$ 192

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Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2015

Reinsurance Disclosure [Line Items]

Effects of reinsurance

Information regarding the significant effects of affiliated reinsurance included on the consolidated statements of operations and comprehensive income (loss) was as follows:

	Three Months   Ended   March 31,
	2015			2014
	(In millions)
Premiums
Reinsurance assumed	$	25		$	10
Reinsurance ceded	(200		)	(263		)
Net premiums	$	(175	)	$	(253	)
Universal life and investment-type product policy fees
Reinsurance assumed	$	31		$	81
Reinsurance ceded	(87		)	(94		)
Net universal life and investment-type product policy fees	$	(56	)	$	(13	)
Other revenues
Reinsurance assumed	$	—		$	4
Reinsurance ceded	58			71
Net other revenues	$	58		$	75
Policyholder benefits and claims
Reinsurance assumed	$	35		$	37
Reinsurance ceded	(240		)	(310		)
Net policyholder benefits and claims	$	(205	)	$	(273	)
Interest credited to policyholder account balances
Reinsurance assumed	$	19		$	23
Reinsurance ceded	(37		)	(33		)
Net interest credited to policyholder account balances	$	(18	)	$	(10	)
Other expenses
Reinsurance assumed	$	15		$	18
Reinsurance ceded	50			22
Net other expenses	$	65		$	40

Information regarding the significant effects of affiliated reinsurance included on the consolidated balance sheets was as follows at:

	March 31, 2015					December 31, 2014
	Assumed		Ceded			Assumed		Ceded
	(In millions)
Assets
Premiums, reinsurance and other receivables	$	59	$	12,876		$	45	$	12,718
Deferred policy acquisition costs and value of business acquired	171		(723		)	164		(707		)
Total assets	$	230	$	12,153		$	209	$	12,011
Liabilities
Future policy benefits	$	593	$	—		$	593	$	—
Policyholder account balances	893		—			827		—
Other policy-related balances	1,712		754			1,689		763
Other liabilities	20		5,307			16		5,109
Total liabilities	$	3,218	$	6,061		$	3,125	$	5,872

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Investments (Credit Loss Rollforward) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Balance, beginning of period	$ 57	$ 59
Additions:
Additional impairments — credit loss OTTI on securities previously impaired	2	0
Reductions:
Sales (maturities, pay downs or prepayments) during the period of securities previously impaired as credit loss OTTI	(2)	(2)
Increases in cash flows — accretion of previous credit loss OTTI	(1)	0
Balance, end of period	$ 56	$ 57

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Investments (Changes in Net Unrealized Investment Gains Losses) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Changes In Net Unrealized Investment Gains Losses Included In Accumulated Other Comprehensive Loss [Abstract]
Balance, beginning of period	$ 2,433
Fixed maturity securities on which noncredit OTTI losses have been recognized	3
Unrealized investment gains (losses) during the period	653
Unrealized investment gains (losses) relating to [Abstract]
Future policy benefits	(209)
DAC and VOBA related to noncredit OTTI losses recognized in AOCI	1
DAC, VOBA and DSI	13
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	(1)
Deferred income tax benefit (expense)	(160)
Balance, end of period	2,733
Change in net unrealized investment gains (losses)	$ 300

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Fair Value (Recurring Fair Value Measurements) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Assets [Abstract]
Available-for-sale Securities, Debt Securities	$ 53,065	$ 50,697
Available-for-sale Securities, Equity Securities	480	459
Short-term investments	3,321	1,232
Mortgage loans, at estimated fair value, relating to variable interest entities	6,120	5,839
Derivative assets	4,241	3,576
Net embedded derivatives within asset host contracts	240	222
Separate account assets	110,014	108,861
Liabilities [Abstract]
Derivative liabilities	1,980	1,818
Net embedded derivatives within liability host contracts	960	617
Long-term debt, at estimated fair value, relating to variable interest entities	921	928
Consolidated Securitization Entities
Assets [Abstract]
Mortgage loans, at estimated fair value, relating to variable interest entities	272	280
Liabilities [Abstract]
Long-term debt, at estimated fair value, relating to variable interest entities	132	139
Recurring
Assets [Abstract]
Available-for-sale Securities, Debt Securities	53,065	50,697
Available-for-sale Securities, Equity Securities	480	459
Short-term investments	2,911	1,136
Derivative assets	4,241	3,576
Net embedded derivatives within asset host contracts	298	270
Separate account assets	110,014	108,861
Total assets	171,281	165,279
Liabilities [Abstract]
Derivative liabilities	1,980	1,818
Net embedded derivatives within liability host contracts	960	617
Total liabilities	3,072	2,574
Recurring | Consolidated Securitization Entities
Assets [Abstract]
Mortgage loans, at estimated fair value, relating to variable interest entities	272	280
Liabilities [Abstract]
Long-term debt, at estimated fair value, relating to variable interest entities	132	139
Recurring | Interest rate contracts
Assets [Abstract]
Derivative assets	2,991	2,409
Liabilities [Abstract]
Derivative liabilities	827	688
Recurring | Foreign currency exchange rate contracts
Assets [Abstract]
Derivative assets	194	118
Liabilities [Abstract]
Derivative liabilities	6	13
Recurring | Credit contracts
Assets [Abstract]
Derivative assets	30	29
Liabilities [Abstract]
Derivative liabilities	2	2
Recurring | Equity market contracts
Assets [Abstract]
Derivative assets	1,026	1,020
Liabilities [Abstract]
Derivative liabilities	1,145	1,115
Recurring | U.S. corporate
Assets [Abstract]
Available-for-sale Securities, Debt Securities	17,405	16,802
Recurring | U.S. Treasury and agency
Assets [Abstract]
Available-for-sale Securities, Debt Securities	14,297	15,826
Recurring | RMBS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	8,723	6,081
Recurring | Foreign corporate
Assets [Abstract]
Available-for-sale Securities, Debt Securities	5,433	5,414
Recurring | State and political subdivision
Assets [Abstract]
Available-for-sale Securities, Debt Securities	2,661	2,592
Recurring | CMBS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	1,810	1,679
Recurring | ABS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	1,970	1,562
Recurring | Foreign government
Assets [Abstract]
Available-for-sale Securities, Debt Securities	766	741
Recurring | Non-redeemable preferred stock
Assets [Abstract]
Available-for-sale Securities, Equity Securities	229	226
Recurring | Common stock
Assets [Abstract]
Available-for-sale Securities, Equity Securities	251	233
Recurring | Level 1
Assets [Abstract]
Available-for-sale Securities, Debt Securities	9,496	10,226
Available-for-sale Securities, Equity Securities	108	105
Short-term investments	542	253
Derivative assets	23	35
Net embedded derivatives within asset host contracts	0	0
Separate account assets	287	249
Total assets	10,456	10,868
Liabilities [Abstract]
Derivative liabilities	0	0
Net embedded derivatives within liability host contracts	0	0
Total liabilities	0	0
Recurring | Level 1 | Consolidated Securitization Entities
Assets [Abstract]
Mortgage loans, at estimated fair value, relating to variable interest entities	0	0
Liabilities [Abstract]
Long-term debt, at estimated fair value, relating to variable interest entities	0	0
Recurring | Level 1 | Interest rate contracts
Assets [Abstract]
Derivative assets	2	1
Liabilities [Abstract]
Derivative liabilities	0	0
Recurring | Level 1 | Foreign currency exchange rate contracts
Assets [Abstract]
Derivative assets	0	0
Liabilities [Abstract]
Derivative liabilities	0	0
Recurring | Level 1 | Credit contracts
Assets [Abstract]
Derivative assets	0	0
Liabilities [Abstract]
Derivative liabilities	0	0
Recurring | Level 1 | Equity market contracts
Assets [Abstract]
Derivative assets	21	34
Liabilities [Abstract]
Derivative liabilities	0	0
Recurring | Level 1 | U.S. corporate
Assets [Abstract]
Available-for-sale Securities, Debt Securities	0	0
Recurring | Level 1 | U.S. Treasury and agency
Assets [Abstract]
Available-for-sale Securities, Debt Securities	8,137	10,226
Recurring | Level 1 | RMBS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	1,359	0
Recurring | Level 1 | Foreign corporate
Assets [Abstract]
Available-for-sale Securities, Debt Securities	0	0
Recurring | Level 1 | State and political subdivision
Assets [Abstract]
Available-for-sale Securities, Debt Securities	0	0
Recurring | Level 1 | CMBS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	0	0
Recurring | Level 1 | ABS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	0	0
Recurring | Level 1 | Foreign government
Assets [Abstract]
Available-for-sale Securities, Debt Securities	0	0
Recurring | Level 1 | Non-redeemable preferred stock
Assets [Abstract]
Available-for-sale Securities, Equity Securities	0	0
Recurring | Level 1 | Common stock
Assets [Abstract]
Available-for-sale Securities, Equity Securities	108	105
Recurring | Level 2
Assets [Abstract]
Available-for-sale Securities, Debt Securities	39,891	37,361
Available-for-sale Securities, Equity Securities	282	254
Short-term investments	2,062	812
Derivative assets	3,969	3,279
Net embedded derivatives within asset host contracts	0	0
Separate account assets	109,571	108,454
Total assets	156,047	150,440
Liabilities [Abstract]
Derivative liabilities	1,506	1,360
Net embedded derivatives within liability host contracts	0	0
Total liabilities	1,638	1,499
Recurring | Level 2 | Consolidated Securitization Entities
Assets [Abstract]
Mortgage loans, at estimated fair value, relating to variable interest entities	272	280
Liabilities [Abstract]
Long-term debt, at estimated fair value, relating to variable interest entities	132	139
Recurring | Level 2 | Interest rate contracts
Assets [Abstract]
Derivative assets	2,941	2,363
Liabilities [Abstract]
Derivative liabilities	827	688
Recurring | Level 2 | Foreign currency exchange rate contracts
Assets [Abstract]
Derivative assets	194	118
Liabilities [Abstract]
Derivative liabilities	6	13
Recurring | Level 2 | Credit contracts
Assets [Abstract]
Derivative assets	30	28
Liabilities [Abstract]
Derivative liabilities	2	2
Recurring | Level 2 | Equity market contracts
Assets [Abstract]
Derivative assets	804	770
Liabilities [Abstract]
Derivative liabilities	671	657
Recurring | Level 2 | U.S. corporate
Assets [Abstract]
Available-for-sale Securities, Debt Securities	15,953	15,447
Recurring | Level 2 | U.S. Treasury and agency
Assets [Abstract]
Available-for-sale Securities, Debt Securities	6,160	5,600
Recurring | Level 2 | RMBS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	6,443	5,365
Recurring | Level 2 | Foreign corporate
Assets [Abstract]
Available-for-sale Securities, Debt Securities	4,734	4,704
Recurring | Level 2 | State and political subdivision
Assets [Abstract]
Available-for-sale Securities, Debt Securities	2,661	2,592
Recurring | Level 2 | CMBS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	1,623	1,531
Recurring | Level 2 | ABS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	1,551	1,381
Recurring | Level 2 | Foreign government
Assets [Abstract]
Available-for-sale Securities, Debt Securities	766	741
Recurring | Level 2 | Non-redeemable preferred stock
Assets [Abstract]
Available-for-sale Securities, Equity Securities	167	155
Recurring | Level 2 | Common stock
Assets [Abstract]
Available-for-sale Securities, Equity Securities	115	99
Recurring | Level 3
Assets [Abstract]
Available-for-sale Securities, Debt Securities	3,678	3,110
Available-for-sale Securities, Equity Securities	90	100
Short-term investments	307	71
Derivative assets	249	262
Net embedded derivatives within asset host contracts	298	270
Separate account assets	156	158
Total assets	4,778	3,971
Liabilities [Abstract]
Derivative liabilities	474	458
Net embedded derivatives within liability host contracts	960	617
Total liabilities	1,434	1,075
Recurring | Level 3 | Consolidated Securitization Entities
Assets [Abstract]
Mortgage loans, at estimated fair value, relating to variable interest entities	0	0
Liabilities [Abstract]
Long-term debt, at estimated fair value, relating to variable interest entities	0	0
Recurring | Level 3 | Interest rate contracts
Assets [Abstract]
Derivative assets	48	45
Liabilities [Abstract]
Derivative liabilities	0	0
Recurring | Level 3 | Foreign currency exchange rate contracts
Assets [Abstract]
Derivative assets	0	0
Liabilities [Abstract]
Derivative liabilities	0	0
Recurring | Level 3 | Credit contracts
Assets [Abstract]
Derivative assets	0	1
Liabilities [Abstract]
Derivative liabilities	0	0
Recurring | Level 3 | Equity market contracts
Assets [Abstract]
Derivative assets	201	216
Liabilities [Abstract]
Derivative liabilities	474	458
Recurring | Level 3 | U.S. corporate
Assets [Abstract]
Available-for-sale Securities, Debt Securities	1,452	1,355
Recurring | Level 3 | U.S. Treasury and agency
Assets [Abstract]
Available-for-sale Securities, Debt Securities	0	0
Recurring | Level 3 | RMBS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	921	716
Recurring | Level 3 | Foreign corporate
Assets [Abstract]
Available-for-sale Securities, Debt Securities	699	710
Recurring | Level 3 | State and political subdivision
Assets [Abstract]
Available-for-sale Securities, Debt Securities	0	0
Recurring | Level 3 | CMBS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	187	148
Recurring | Level 3 | ABS
Assets [Abstract]
Available-for-sale Securities, Debt Securities	419	181
Recurring | Level 3 | Foreign government
Assets [Abstract]
Available-for-sale Securities, Debt Securities	0	0
Recurring | Level 3 | Non-redeemable preferred stock
Assets [Abstract]
Available-for-sale Securities, Equity Securities	62	71
Recurring | Level 3 | Common stock
Assets [Abstract]
Available-for-sale Securities, Equity Securities	$ 28	$ 29

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Investments (Valuation Allowance Rollforward by Portfolio Segment) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Mortgage Loans on Real Estate [Line Items]
Balance, beginning of period	$ 25	$ 35
Provision (release)	1	(1)
Balance, end of period	26	34
Commercial
Mortgage Loans on Real Estate [Line Items]
Balance, beginning of period	21	31
Provision (release)	1	(1)
Balance, end of period	22	30
Agricultural
Mortgage Loans on Real Estate [Line Items]
Balance, beginning of period	4	4
Provision (release)	0	0
Balance, end of period	$ 4	$ 4

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Investments (Fixed Maturity and Equity Securities Available-For-Sale - Narrative) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Other Than Temporary Impairments On Debt Securities Transferred To Other Comprehensive Income Loss	$ (31)	$ (34)	$ (45)
Summary of Certain Fixed Maturity Securities
Available-for-sale Securities, Debt Securities	53,065	50,697
Non-income producing fixed maturity securities [Member]
Summary of Certain Fixed Maturity Securities
Available-for-sale Securities, Debt Securities	18	14
Available For Sale Securities Gross Unrealized Gain Accumulated Investments	4	4
CMBS
Schedule of Available-for-sale Securities [Line Items]
Other Than Temporary Impairments On Debt Securities Transferred To Other Comprehensive Income Loss	1	1
Summary of Certain Fixed Maturity Securities
Available-for-sale Securities, Debt Securities	1,810	1,679
Available For Sale Securities Gross Unrealized Gain Accumulated Investments	$ 54	$ 45

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Derivatives (Fair Value Hedges) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	$ 8	$ 10
Net Derivative Gains (Losses) Recognized for Hedged Items	8	10
Ineffectiveness Recognized in Net Derivative Gains (Losses)	0	0
Interest rate swaps | Fixed maturity securities
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	(1)	0
Net Derivative Gains (Losses) Recognized for Hedged Items	(1)	0
Ineffectiveness Recognized in Net Derivative Gains (Losses)	0	0
Interest rate swaps | Policyholder account balances
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	9	9
Net Derivative Gains (Losses) Recognized for Hedged Items	9	9
Ineffectiveness Recognized in Net Derivative Gains (Losses)	0	0
Foreign currency swaps | Foreign-denominated policyholder account balances (2)
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	0	1
Net Derivative Gains (Losses) Recognized for Hedged Items	0	1
Ineffectiveness Recognized in Net Derivative Gains (Losses)	$ 0	$ 0

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Investments (Net Investment Gains Losses - Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Non-investment portfolio gains (losses)	$ (2)	$ 1
Gains (losses) from foreign currency transactions	1	16
MetLife Assurance Limited [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Non-investment portfolio gains (losses)		$ 547

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Investments (Net Investment Income) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Net Investment Income [Line Items]
Gross Investment Income, Operating	$ 631	$ 713
Less: Investment expenses	27	26
Net investment income	635	735
Securities Investment [Member]
Net Investment Income [Line Items]
Gross Investment Income, Operating	658	739
Fixed maturity securities
Net Investment Income [Line Items]
Gross Investment Income, Operating	487	521
Equity securities
Net Investment Income [Line Items]
Gross Investment Income, Operating	4	4
Mortgage loans
Net Investment Income [Line Items]
Gross Investment Income, Operating	72	81
Policy loans
Net Investment Income [Line Items]
Gross Investment Income, Operating	13	14
Real estate and real estate joint ventures
Net Investment Income [Line Items]
Gross Investment Income, Operating	22	23
Other limited partnership interests
Net Investment Income [Line Items]
Gross Investment Income, Operating	52	98
Cash, cash equivalents and short-term investments
Net Investment Income [Line Items]
Gross Investment Income, Operating	2	1
Operating joint venture
Net Investment Income [Line Items]
Gross Investment Income, Operating	2	0
Other
Net Investment Income [Line Items]
Gross Investment Income, Operating	4	(3)
Commercial | Variable Interest Entity, Primary Beneficiary, Consolidated Securitization Entities [Member]
Net Investment Income [Line Items]
Gross Investment Income, Operating	$ 4	$ 22

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Insurance

3 Months Ended

Mar. 31, 2015

Insurance [Abstract]

Insurance

3.  Insurance

Guarantees

As discussed in Notes 1 and 5 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report, the Company issues variable annuity products with guaranteed minimum benefits. The non-life contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”) and the portion of certain GMIBs that does not require annuitization are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 5.

Based on the type of guarantee, the Company defines net amount at risk as listed below.

Variable Annuity Guarantees

In the Event of Death

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

At Annuitization

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

Universal and Variable Life Contracts

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

Information regarding the types of guarantees relating to annuity contracts and universal and variable life contracts was as follows at: 

	March 31, 2015				December 31, 2014
	In the Event of Death		At Annuitization		In the Event of Death		At Annuitization
	(In millions)
Annuity Contracts (1)
Variable Annuity Guarantees
Total contract account value	$	113,275	$	65,009	$	112,298	$	64,550
Separate account value	$	108,287	$	63,694	$	107,261	$	63,206
Net amount at risk	$	2,933	$	1,487	$	3,151	$	1,297
Average attained age of contractholders	66 years		66 years		65 years		65 years

	March 31, 2015		December 31, 2014
	Secondary Guarantees
	(In millions)
Universal and Variable Life Contracts (1)
Account value (general and separate account)	$	6,765	$	6,702
Net amount at risk	$	91,098	$	91,204
Average attained age of policyholders	59 years		59 years

____________

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

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Investments (Related Party Invesment Transactions - Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Related Party Transaction [Line Items]
Related party investment administrative services	$ 17	$ 16
Commercial
Related Party Transaction [Line Items]
Related party net investment income	3	5
Affiliated Entity | Commercial
Related Party Transaction [Line Items]
Carrying value of related party loans	$ 242		$ 0

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Investments (Securities Lending) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Securities Financing Transaction [Line Items]
Total cash collateral liability	$ 7,727	$ 6,781
Security collateral on deposit from counterparties	98	60
Reinvestment portfolio — estimated fair value	7,804	6,846
Amortized cost
Securities Financing Transaction [Line Items]
Securities loaned	6,488	5,748
Estimated fair value
Securities Financing Transaction [Line Items]
Securities loaned	$ 7,664	$ 6,703

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Segment Information (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015 Segment
Segment Reporting Information [Line Items]
Number of segments	2
Affiliated Entity
Segment Reporting Information [Line Items]
Reinsurance ceded premiums earned and policyholder benefits and claims	87

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Segment Information (Total Assets) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Total assets	$ 212,322	$ 205,863
Retail
Segment Reporting Information [Line Items]
Total assets	175,865	173,657
Corporate Benefit Funding
Segment Reporting Information [Line Items]
Total assets	25,794	25,312
Corporate & Other
Segment Reporting Information [Line Items]
Total assets	$ 10,663	$ 6,894

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Investments (Concentrations of Credit Risk - Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]
Securities holdings exposure in single issuer greater than stated percentage of Company's equity	10.00%
Investments in any counterparty that were greater than 10% of equity	$ 0	$ 0

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Investments (Invested Assets on Deposit, Held In Trust and Pledged as Collateral) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]
Invested assets on deposit (regulatory deposits)	$ 7,443	$ 7,334
Invested assets held-in-trust (reinsurance agreements)	957	936
Invested assets pledged as collateral	3,591	3,174
Total invested assets on deposit, held in trust and pledged as collateral	$ 11,991	$ 11,444

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Insurance (Guarantees Related to Annuity Contracts) (Details) (Variable Annuity Guarantees, USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Guaranteed Death Benefits
Net Amount at Risk by Product and Guarantee [Line Items]
Account value	$ 113,275	$ 112,298
Separate account value in event of death	108,287	107,261
Net amount at risk in event of death	2,933	3,151
Average attained age of contractholders	66 years	65 years
Guaranteed Annuitization Benefits
Net Amount at Risk by Product and Guarantee [Line Items]
Account value	65,009	64,550
Separate account value at annuitization	63,694	63,206
Net amount at risk at annuitization	$ 1,487	$ 1,297
Average attained age of contractholders	66 years	65 years

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Insurance (Guarantees Related to Universal and Variable Life Contracts) (Details) (Universal And Variable Life Contracts, Secondary Guarantees, USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Universal And Variable Life Contracts | Secondary Guarantees
Net Amount at Risk by Product and Guarantee [Line Items]
Account value (general and separate account)	$ 6,765	$ 6,702
Net amount at risk	$ 91,098	$ 91,204
Average attained age of policyholders	59 years	59 years

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Segment Information

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment Information

2. Segment Information

The Company is organized into two segments: Retail and Corporate Benefit Funding. In addition, the Company reports certain of its results of operations in Corporate & Other. As anticipated, in the first quarter of 2015, the Company implemented certain segment reporting changes related to the measurement of segment operating earnings, which included revising the Company’s capital allocation methodology. These changes were applied retrospectively and did not have an impact on total consolidated operating earnings or net income.

Retail

The Retail segment offers a broad range of protection products and a variety of annuities primarily to individuals, and is organized into two businesses: Annuities and Life & Other. Annuities includes a variety of variable, fixed and equity index-linked annuities which provide for both asset accumulation and asset distribution needs. Life & Other insurance products and services include variable life, universal life, term life and whole life products, as well as individual disability income products. Additionally, through broker-dealer affiliates, the Company offers a full range of mutual funds and other securities products.

Corporate Benefit Funding

The Corporate Benefit Funding segment offers a broad range of annuity and investment products, including guaranteed interest products and other stable value products, income annuities, and separate account contracts for the investment management of defined benefit and defined contribution plan assets. This segment also includes structured settlements and certain products to fund company-, bank- or trust-owned life insurance used to finance non-qualified benefit programs for executives.

Corporate & Other

Corporate & Other contains the excess capital not allocated to the segments, run-off businesses, the Company’s ancillary international operations, ancillary U.S. direct business sold direct to consumer, and interest expense related to the majority of the Company’s outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues. Corporate & Other also includes assumed reinsurance of certain variable annuity products from a former affiliated operating joint venture in Japan. Under this in-force reinsurance agreement, the Company reinsures living and death benefit guarantees issued in connection with variable annuity products. Additionally, Corporate & Other includes a reinsurance agreement to assume certain blocks of indemnity reinsurance from an affiliate. These reinsurance agreements were recaptured effective November 1, 2014. Corporate & Other also includes the elimination of intersegment amounts.

Financial Measures and Segment Accounting Policies

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

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

Operating revenues and operating expenses exclude results of discontinued operations and other businesses that have been or will be sold or exited by the Company and are referred to as divested businesses. Operating revenues also excludes net investment gains (losses) and net derivative gains (losses). Operating expenses also excludes goodwill impairments.

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

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

• Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain 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.

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

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

• Interest credited to policyholder account balances includes adjustments for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment and 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;

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

• Other expenses excludes costs related to: (i) implementation of new insurance regulatory requirements, and (ii) acquisition and integration costs.

Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for the three months endedMarch 31, 2015 and 2014. The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for operating earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below.

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

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

Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company’s consolidated net investment income, operating earnings or net income (loss).

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

	Operating Results
Three Months Ended March 31, 2015	Retail			Corporate Benefit Funding		Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	271		$	4	$	8		$	283		$	—		$	283
Universal life and investment-type product policy fees	643			9		—			652			66			718
Net investment income	504			218		(26		)	696			(61		)	635
Other revenues	118			1		1			120			—			120
Net investment gains (losses)	—			—		—			—			42			42
Net derivative gains (losses)	—			—		—			—			85			85
Total revenues	1,536			232		(17		)	1,751			132			1,883
Expenses
Policyholder benefits and claims	385			97		21			503			89			592
Interest credited to policyholder account balances	228			28		—			256			1			257
Capitalization of DAC	(74		)	—		(25		)	(99		)	—			(99		)
Amortization of DAC and VOBA	164			—		7			171			24			195
Interest expense on debt	—			—		17			17			1			18
Other expenses	472			12		49			533			—			533
Total expenses	1,175			137		69			1,381			115			1,496
Provision for income tax expense (benefit)	98			33		(34		)	97			6			103
Operating earnings	$	263		$	62	$	(52	)	273
Adjustments to:
Total revenues									132
Total expenses									(115		)
Provision for income tax (expense) benefit									(6		)
Net income (loss)									$	284					$	284

	Operating Results
Three Months Ended March 31, 2014	Retail			Corporate Benefit Funding (1)			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	229		$	(65	)	$	14		$	178		$	—		$	178
Universal life and investment-type product policy fees	669			8			45			722			83			805
Net investment income	502			237			(24		)	715			20			735
Other revenues	141			1			—			142			—			142
Net investment gains (losses)	—			—			—			—			(506		)	(506		)
Net derivative gains (losses)	—			—			—			—			(150		)	(150		)
Total revenues	1,541			181			35			1,757			(553		)	1,204
Expenses
Policyholder benefits and claims	389			26			13			428			140			568
Interest credited to policyholder account balances	238			31			—			269			—			269
Capitalization of DAC	(60		)	—			(16		)	(76		)	—			(76		)
Amortization of DAC and VOBA	193			1			8			202			71			273
Interest expense on debt	2			—			17			19			18			37
Other expenses	416			7			15			438			5			443
Total expenses	1,178			65			37			1,280			234			1,514
Provision for income tax expense (benefit)	103			41			(3		)	141			(252		)	(111		)
Operating earnings	$	260		$	75		$	1		336
Adjustments to:
Total revenues										(553		)
Total expenses										(234		)
Provision for income tax (expense) benefit										252
Net income (loss)										$	(199	)				$	(199	)

____________

(1) Premiums and policyholder benefits and claims both include ($87) million of ceded reinsurance with Metropolitan Life Insurance Company (“MLIC”). See Note 10.

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

	March 31, 2015		December 31, 2014
	(In millions)
Retail	$	175,865	$	173,657
Corporate Benefit Funding	25,794		25,312
Corporate & Other	10,663		6,894
Total	$	212,322	$	205,863

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Investments (Fixed Maturity and Equity Securities Available-For-Sale by Sector) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Available-for-sale Securities [Abstract]
Amortized cost	$ 48,233	$ 46,423
Cost or Amortized Cost	422	400
Gross Unrealized OTTI Loss	31	34	45
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $48,233 and $46,423, respectively)	53,065	50,697
Equity securities	480	459
Fixed maturity securities
Available-for-sale Securities [Abstract]
Amortized cost	48,233	46,423
Available For Sale Securities Gross Unrealized Gain Accumulated Investments	5,106	4,542
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments	243	234
Gross Unrealized OTTI Loss	31	34
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $48,233 and $46,423, respectively)	53,065	50,697
U.S. corporate
Available-for-sale Securities [Abstract]
Amortized cost	15,716	15,286
Available For Sale Securities Gross Unrealized Gain Accumulated Investments	1,795	1,635
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments	106	119
Gross Unrealized OTTI Loss	0	0
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $48,233 and $46,423, respectively)	17,405	16,802
U.S. Treasury and agency
Available-for-sale Securities [Abstract]
Amortized cost	12,335	14,147
Available For Sale Securities Gross Unrealized Gain Accumulated Investments	1,974	1,686
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments	12	7
Gross Unrealized OTTI Loss	0	0
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $48,233 and $46,423, respectively)	14,297	15,826
Foreign corporate
Available-for-sale Securities [Abstract]
Amortized cost	5,190	5,162
Available For Sale Securities Gross Unrealized Gain Accumulated Investments	327	310
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments	84	58
Gross Unrealized OTTI Loss	0	0
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $48,233 and $46,423, respectively)	5,433	5,414
RMBS
Available-for-sale Securities [Abstract]
Amortized cost	8,459	5,858
Available For Sale Securities Gross Unrealized Gain Accumulated Investments	328	291
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments	32	33
Gross Unrealized OTTI Loss	32	35
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $48,233 and $46,423, respectively)	8,723	6,081
State and political subdivision
Available-for-sale Securities [Abstract]
Amortized cost	2,213	2,180
Available For Sale Securities Gross Unrealized Gain Accumulated Investments	449	413
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments	1	1
Gross Unrealized OTTI Loss	0	0
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $48,233 and $46,423, respectively)	2,661	2,592
ABS
Available-for-sale Securities [Abstract]
Amortized cost	1,948	1,546
Available For Sale Securities Gross Unrealized Gain Accumulated Investments	27	26
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments	5	10
Gross Unrealized OTTI Loss	0	0
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $48,233 and $46,423, respectively)	1,970	1,562
CMBS
Available-for-sale Securities [Abstract]
Amortized cost	1,757	1,637
Available For Sale Securities Gross Unrealized Gain Accumulated Investments	54	45
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments	2	4
Gross Unrealized OTTI Loss	(1)	(1)
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $48,233 and $46,423, respectively)	1,810	1,679
Foreign government
Available-for-sale Securities [Abstract]
Amortized cost	615	607
Available For Sale Securities Gross Unrealized Gain Accumulated Investments	152	136
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments	1	2
Gross Unrealized OTTI Loss	0	0
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $48,233 and $46,423, respectively)	766	741
Equity securities
Available-for-sale Securities [Abstract]
Cost or Amortized Cost	422	400
Available For Sale Securities Gross Unrealized Gain Accumulated Investments	70	69
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments	12	10
Gross Unrealized OTTI Loss	0	0
Equity securities	480	459
Non-redeemable preferred stock
Available-for-sale Securities [Abstract]
Cost or Amortized Cost	225	224
Available For Sale Securities Gross Unrealized Gain Accumulated Investments	13	9
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments	9	7
Gross Unrealized OTTI Loss	0	0
Equity securities	229	226
Common stock
Available-for-sale Securities [Abstract]
Cost or Amortized Cost	197	176
Available For Sale Securities Gross Unrealized Gain Accumulated Investments	57	60
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments	3	3
Gross Unrealized OTTI Loss	0	0
Equity securities	$ 251	$ 233

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Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	$ 2,426	$ 980
OCI before reclassifications	475	1,076
Deferred income tax benefit (expense)	(165)	(376)
OCI before reclassifications, net of income tax	2,736	1,680
Amounts reclassified from AOCI	(24)	(27)
Deferred income tax benefit (expense)	8	9
Amounts reclassified from AOCI, net of income tax	(16)	(18)
Balance, end of period	2,720	1,662
Unrealized Investment Gains (Losses), Net of Related Offsets
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	2,250	916
OCI before reclassifications	393	1,000
Deferred income tax benefit (expense)	(138)	(337)
OCI before reclassifications, net of income tax	2,505	1,579
Amounts reclassified from AOCI	(26)	(27)
Deferred income tax benefit (expense)	9	9
Amounts reclassified from AOCI, net of income tax	(17)	(18)
Balance, end of period	2,488	1,561
Unrealized Gains (Losses) on Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	183	25
OCI before reclassifications	92	65
Deferred income tax benefit (expense)	(31)	(23)
OCI before reclassifications, net of income tax	244	67
Amounts reclassified from AOCI	2	0
Deferred income tax benefit (expense)	(1)	0
Amounts reclassified from AOCI, net of income tax	1	0
Balance, end of period	245	67
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(7)	39
OCI before reclassifications	(10)	11
Deferred income tax benefit (expense)	4	(16)
OCI before reclassifications, net of income tax	(13)	34
Amounts reclassified from AOCI	0	0
Deferred income tax benefit (expense)	0	0
Amounts reclassified from AOCI, net of income tax	0	0
Balance, end of period	$ (13)	$ 34

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Investments (Net Unrealized Investment Gains Losses) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Components of net unrealized investment gains (losses) included in accumulated other comprehensive loss
Fixed maturity securities	$ 4,858	$ 4,311
Fixed maturity securities with noncredit OTTI losses in AOCI	(31)	(34)	(45)
Total fixed maturity securities	4,827	4,277
Equity securities	77	69
Derivatives	376	282
Other	13	9
Subtotal	5,293	4,637
Future policy benefits	(712)	(503)
DAC and VOBA related to noncredit OTTI losses recognized in AOCI	(1)	(2)
DAC, VOBA and DSI	(390)	(403)
Subtotal	(1,103)	(908)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	11	12
Deferred income tax benefit (expense)	(1,468)	(1,308)
Net unrealized investment gains (losses)	$ 2,733	$ 2,433

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Investments (Evaluation of Available-For-Sale Securities for OTTI and Evaluating Temporarily Impaired AFS Securities - Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Equity Securities Available For Sale With Gross Unrealized Loss Of Equal To Or Greater Than Stated Percentage	20.00%
Fixed maturity securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss) before Taxes	$ (6)
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	274
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	135	139
Equity securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss) before Taxes	(2)
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	12
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	7	6
Non-redeemable preferred stock
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	7	6
Twenty Percent Or More [Member] | Six Months Or Greater [Member] | Fixed maturity securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	48
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	12
Twenty Percent Or More [Member] | Six Months Or Greater [Member] | Fixed maturity securities | External Credit Rating, Investment Grade [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	29
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	6
Percentage Of Gross Unrealized Loss	60.00%
Twenty Percent Or More [Member] | Six Months Or Greater [Member] | Fixed maturity securities | External Credit Rating, Non Investment Grade [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	19
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	6
Percentage Of Gross Unrealized Loss	40.00%
Twenty Percent Or More [Member] | Twelve months or greater [Member] | Equity securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	2
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	$ 5
Twenty Percent Or More [Member] | Twelve months or greater [Member] | Non-redeemable preferred stock | Aaa Aa [Member] | Banks, Trust and Insurance, Equities [Member]
Schedule of Available-for-sale Securities [Line Items]
Percentage Of Gross Unrealized Loss	40.00%

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Derivatives (Embedded Derivatives) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract]
Net embedded derivatives within asset host contracts	$ 240	$ 222
Net embedded derivatives within liability host contracts	960	617
Ceded guaranteed minimum benefits | Premiums, reinsurance and other receivables
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract]
Net embedded derivatives within asset host contracts	242	217
Funds withheld on assumed reinsurance | Other invested assets
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract]
Net embedded derivatives within asset host contracts	56	53
Direct guaranteed minimum benefits | Policyholder account balances
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract]
Net embedded derivatives within liability host contracts	(410)	(609)
Assumed guaranteed minimum benefits | Policyholder account balances
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract]
Net embedded derivatives within liability host contracts	893	827
Funds withheld on ceded reinsurance | Other liabilities
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract]
Net embedded derivatives within liability host contracts	458	382
Other | Policyholder account balances
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract]
Net embedded derivatives within liability host contracts	19	17
Options embedded in debt or equity securities | Investments
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract]
Net embedded derivatives within asset host contracts	$ (58)	$ (48)

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Consolidated Balance Sheets (Unaudited) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Investments:
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $48,233 and $46,423, respectively)	$ 53,065	$ 50,697
Equity securities available-for-sale, at estimated fair value (cost: $422 and $400, respectively)	480	459
Mortgage loans (net of valuation allowances of $26 and $25, respectively; includes $272 and $280, respectively, at estimated fair value, relating to variable interest entities)	6,120	5,839
Policy loans	1,190	1,194
Real estate and real estate joint ventures (includes $46 and $93 respectively, of real estate held-for-sale)	819	894
Other limited partnership interests	2,244	2,234
Short-term investments, principally at estimated fair value	3,321	1,232
Other invested assets, principally at estimated fair value	5,209	4,531
Total investments	72,448	67,080
Cash and cash equivalents, principally at estimated fair value	827	1,206
Accrued investment income (includes $1 and $2, respectively, relating to variable interest entities)	526	501
Premiums, reinsurance and other receivables	21,978	21,559
Deferred policy acquisition costs and value of business acquired	4,811	4,890
Current income tax recoverable	498	537
Goodwill	381	381
Other assets	839	848
Separate account assets	110,014	108,861
Total assets	212,322	205,863
Liabilities
Future policy benefits	29,073	28,479
Policyholder account balances	35,506	35,486
Other policy-related balances	3,426	3,320
Payables for collateral under securities loaned and other transactions	9,394	7,501
Long-term debt (includes $132 and $139, respectively, at estimated fair value, relating to variable interest entities)	921	928
Deferred income tax liability	1,575	1,338
Other liabilities (includes $1 and $1, respectively, relating to variable interest entities)	9,828	7,944
Separate account liabilities	110,014	108,861
Total liabilities	199,737	193,857
Contingencies, Commitments and Guarantees (Note 9)
Stockholders' Equity
Common stock, par value $25,000 per share; 4,000 shares authorized; 3,000 shares issued and outstanding, respectively	75	75
Additional paid-in capital	10,856	10,855
Retained earnings (deficit)	(1,066)	(1,350)
Accumulated other comprehensive income (loss)	2,720	2,426
Total stockholder’s equity	12,585	12,006
Total liabilities and stockholder’s equity	$ 212,322	$ 205,863

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Investments (Consolidated Variable Interest Entities) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Assets:
Mortgage loans (commercial mortgage loans)	$ 6,120	$ 5,839
Accrued investment income relating to variable interest entities	526	501
Liabilities
Long-term debt, at estimated fair value, relating to variable interest entities	921	928
Other liabilities relating to variable interest entities	9,828	7,944
Consolidated securitization entities [Member]
Assets:
Mortgage loans (commercial mortgage loans)	272	280
Accrued investment income relating to variable interest entities	1	2
Total assets	273	282
Liabilities
Long-term debt, at estimated fair value, relating to variable interest entities	132	139
Other liabilities relating to variable interest entities	1	1
Total liabilities	$ 133	$ 140

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Consolidated Statements of Cash Flows (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement of Cash Flows [Abstract]
Net cash provided by (used in) operating activities	$ 825	$ 982
Cash flows from investing activities
Sales, maturities and repayments of fixed maturity securities	7,427	4,603
Sales, maturities and repayments of equity securities	7	14
Sales, maturities and repayments of mortgage loans	123	807
Sales, maturities and repayments of real estate and real estate joint ventures	103	1
Sales, maturities and repayments of other limited partnership interests	37	37
Purchases of fixed maturity securities	(7,681)	(5,189)
Purchases of equity securities	(27)	(9)
Purchases of mortgage loans	(435)	(126)
Purchases of real estate and real estate joint ventures	(5)	(89)
Purchases of other limited partnership interests	(47)	(62)
Cash received in connection with freestanding derivatives	59	45
Cash paid in connection with freestanding derivatives	(259)	(345)
Cash received under repurchase agreements (Note 4)	199	0
Cash paid under reverse repurchase agreements (Note 4)	(199)	0
Net change in policy loans	4	5
Net change in short-term investments	(2,088)	214
Net change in other invested assets	22	28
Net cash provided by (used in) investing activities	(2,760)	(66)
Cash flows from financing activities
Policyholder account balances: Deposits	4,546	4,464
Policyholder account balances: Withdrawals	(4,840)	(5,007)
Net change in payables for collateral under securities loaned and other transactions	1,893	1,423
Long-term debt repaid	(7)	(459)
Financing element on certain derivative instruments	(37)	(58)
Dividends paid to MetLife, Inc.	0	(77)
Net cash provided by (used in) financing activities	1,555	286
Effect of change in foreign currency exchange rates on cash and cash equivalents balances	1	8
Change in cash and cash equivalents	(379)	1,210
Cash and cash equivalents, beginning of period	1,206	1,400
Cash and cash equivalents, end of period	827	2,610
Supplemental disclosures of cash flow information:
Net cash paid for Interest	2	21
Net cash paid (received) for Income tax	1	2
Non-cash transactions:
Capital contributions from MetLife, Inc.	1	3
Transfer of fixed maturity securities to affiliates	$ 0	$ 333

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Investments (Consolidated Variable Interest Entities - Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Variable Interest Entity [Line Items]
Financial or other support to investees designated as VIEs	$ 0	$ 0
Consolidated Securitization Entities [Member]
Variable Interest Entity [Line Items]
Variable interest, maximum exposure to loss in consolidated securitization entities	122		123
Long-term debt held by consolidated securitization entities, percentage range minimum	2.25%	2.25%
Long-term debt held by consolidated securitization entities, percentage range maximum	5.57%	5.57%
Interest expense on long-term debt held by consolidated securitization entities	$ 1	$ 18

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Investments (Mortgage Loans by Portfolio Segment) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Notes, Loans and Financing Receivable, Net, Current [Abstract]
Commercial	$ 4,550	$ 4,281
Percentage of loans receivable on commercial mortgage loans	74.40%	73.30%
Agricultural	1,324	1,303
Percentage of loans receivable on agricultural mortgage loans	21.60%	22.30%
Subtotal	5,874	5,584
Percentage of loans receivable on subtotal	96.00%	95.60%
Valuation allowances	(26)	(25)	(34)	(35)
Percentage of loans receivable on valuation allowances	(0.40%)	(0.40%)
Subtotal mortgage loans, net	5,848	5,559
Percentage of loans receivable on subtotal mortgage loans held-for-investment, net	95.60%	95.20%
Commercial mortgage loans held by CSEs - fair value option (FVO)	272	280
Percentage of loans receivable on commercial mortgage loans held by consolidated securitization entities - fair value option	4.40%	4.80%
Total mortgage loans, net	$ 6,120	$ 5,839
Percentage Of Mortgage Loans On Real Estate Commercial And Consumer Net To Mortgage Loans On Real Estate Commercial And Consumer Net	100.00%	100.00%

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Derivatives (Earned Income On Derivatives) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Total earned income	$ 97	$ 72
Derivatives Designated as Hedging Instruments | Net investment income
Derivative Instruments, Gain (Loss) [Line Items]
Total earned income	3	1
Derivatives Designated as Hedging Instruments | Interest credited to policyholder account balances
Derivative Instruments, Gain (Loss) [Line Items]
Total earned income	0	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net derivative gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Total earned income	91	80
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Policyholder benefits and claims
Derivative Instruments, Gain (Loss) [Line Items]
Total earned income	$ 3	$ (9)

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Fair Value (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Recurring Fair Value Measurements

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

	March 31, 2015
	Fair Value Hierarchy						Total Estimated Fair Value
	Level 1		Level 2		Level 3
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	15,953	$	1,452	$	17,405
U.S. Treasury and agency	8,137		6,160		—		14,297
RMBS	1,359		6,443		921		8,723
Foreign corporate	—		4,734		699		5,433
State and political subdivision	—		2,661		—		2,661
CMBS	—		1,623		187		1,810
ABS	—		1,551		419		1,970
Foreign government	—		766		—		766
Total fixed maturity securities	9,496		39,891		3,678		53,065
Equity securities:
Common stock	108		115		28		251
Non-redeemable preferred stock	—		167		62		229
Total equity securities	108		282		90		480
Short-term investments (1)	542		2,062		307		2,911
Commercial mortgage loans held by CSEs — FVO	—		272		—		272
Derivative assets: (2)
Interest rate	2		2,941		48		2,991
Foreign currency exchange rate	—		194		—		194
Credit	—		30		—		30
Equity market	21		804		201		1,026
Total derivative assets	23		3,969		249		4,241
Net embedded derivatives within asset host contracts (3)	—		—		298		298
Separate account assets (4)	287		109,571		156		110,014
Total assets	$	10,456	$	156,047	$	4,778	$	171,281
Liabilities
Derivative liabilities: (2)
Interest rate	$	—	$	827	$	—	$	827
Foreign currency exchange rate	—		6		—		6
Credit	—		2		—		2
Equity market	—		671		474		1,145
Total derivative liabilities	—		1,506		474		1,980
Net embedded derivatives within liability host contracts (3)	—		—		960		960
Long-term debt of CSEs — FVO	—		132		—		132
Total liabilities	$	—	$	1,638	$	1,434	$	3,072

	December 31, 2014
	Fair Value Hierarchy						Total Estimated Fair Value
	Level 1		Level 2		Level 3
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	15,447	$	1,355	$	16,802
U.S. Treasury and agency	10,226		5,600		—		15,826
RMBS	—		5,365		716		6,081
Foreign corporate	—		4,704		710		5,414
State and political subdivision	—		2,592		—		2,592
CMBS	—		1,531		148		1,679
ABS	—		1,381		181		1,562
Foreign government	—		741		—		741
Total fixed maturity securities	10,226		37,361		3,110		50,697
Equity securities:
Common stock	105		99		29		233
Non-redeemable preferred stock	—		155		71		226
Total equity securities	105		254		100		459
Short-term investments (1)	253		812		71		1,136
Commercial mortgage loans held by CSEs — FVO	—		280		—		280
Derivative assets: (2)
Interest rate	1		2,363		45		2,409
Foreign currency exchange rate	—		118		—		118
Credit	—		28		1		29
Equity market	34		770		216		1,020
Total derivative assets	35		3,279		262		3,576
Net embedded derivatives within asset host contracts (3)	—		—		270		270
Separate account assets (4)	249		108,454		158		108,861
Total assets	$	10,868	$	150,440	$	3,971	$	165,279
Liabilities
Derivative liabilities: (2)
Interest rate	$	—	$	688	$	—	$	688
Foreign currency exchange rate	—		13		—		13
Credit	—		2		—		2
Equity market	—		657		458		1,115
Total derivative liabilities	—		1,360		458		1,818
Net embedded derivatives within liability host contracts (3)	—		—		617		617
Long-term debt of CSEs — FVO	—		139		—		139
Total liabilities	$	—	$	1,499	$	1,075	$	2,574

____________

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

(2) Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on 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.

(3) Net embedded derivatives within asset host contracts are presented primarily within premiums, reinsurance and other receivables on the consolidated balance sheets. Net embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the consolidated balance sheets. At March 31, 2015 and December 31, 2014, equity securities also included embedded derivatives of ($58) million and ($48) million, respectively.

(4) 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.

Fair Value Inputs, Quantitative Information

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

					March 31, 2015				December 31, 2014				Impact of Increase in Input on Estimated Fair Value (2)
	Valuation Techniques		Significant Unobservable Inputs		Range			Weighted Average (1)	Range			Weighted Average (1)
Fixed maturity securities (3)
U.S. corporate and foreign corporate	Ÿ	Matrix pricing	Ÿ	Delta spread adjustments (4)	(35)	-	240	47	(35)	-	240	51	Decrease
	Ÿ	Market pricing	Ÿ	Quoted prices (5)	13	-	531	105	—	-	750	418	Increase
	Ÿ	Consensus pricing	Ÿ	Offered quotes (5)	68	-	780	487	78	-	103	86	Increase
RMBS	Ÿ	Consensus pricing	Ÿ	Offered quotes (5)	30	-	114	94	1	-	117	93	Increase (6)
ABS	Ÿ	Market pricing	Ÿ	Quoted prices (5)	91	-	109	100	97	-	108	101	Increase (6)
	Ÿ	Consensus pricing	Ÿ	Offered quotes (5)	64	-	106	100	62	-	106	99	Increase (6)
Derivatives
Interest rate	Ÿ	Present value techniques	Ÿ	Swap yield (7)	256	-	271		278	-	297		Increase (11)
Credit	Ÿ	Present value techniques	Ÿ	Credit spreads (8)	99	-	99		99	-	99		Decrease (8)
	Ÿ	Consensus pricing	Ÿ	Offered quotes (9)
Equity market	Ÿ	Present value techniques or option pricing models	Ÿ	Volatility (10)	15%	-	28%		15%	-	27%		Increase (11)
			Ÿ	Correlation (12)	70%	-	70%		70%	-	70%
Embedded derivatives
Direct and ceded guaranteed minimum benefits	Ÿ	Option pricing techniques	Ÿ	Mortality rates:
				Ages 0 - 40	0%	-	0.09%		0%	-	0.10%		Decrease (13)
				Ages 41 - 60	0.04%	-	0.65%		0.04%	-	0.65%		Decrease (13)
				Ages 61 - 115	0.26%	-	100%		0.26%	-	100%		Decrease (13)
			Ÿ	Lapse rates:
				Durations 1 - 10	0.50%	-	100%		0.50%	-	100%		Decrease (14)
				Durations 11 - 20	3%	-	100%		3%	-	100%		Decrease (14)
				Durations 21 - 116	3%	-	100%		3%	-	100%		Decrease (14)
			Ÿ	Utilization rates	0%	-	30%		20%	-	50%		Increase (15)
			Ÿ	Withdrawal rates	0.08%	-	10%		0.07%	-	10%		(16)
			Ÿ	Long-term equity volatilities	17.40%	-	25%		17.40%	-	25%		Increase (17)
			Ÿ	Nonperformance risk spread	0.04%	-	0.48%		0.03%	-	1.39%		Decrease (18)

____________

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

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

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

(4) Range and weighted average are presented in basis points.

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

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

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

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

(9) At both March 31, 2015 and December 31, 2014, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value.

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

(11) Changes are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions.

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

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

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

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

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

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

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

Fair Value Inputs, Quantitative Information

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

					March 31, 2015				December 31, 2014				Impact of Increase in Input on Estimated Fair Value (2)
	Valuation Techniques		Significant Unobservable Inputs		Range			Weighted Average (1)	Range			Weighted Average (1)
Fixed maturity securities (3)
U.S. corporate and foreign corporate	Ÿ	Matrix pricing	Ÿ	Delta spread adjustments (4)	(35)	-	240	47	(35)	-	240	51	Decrease
	Ÿ	Market pricing	Ÿ	Quoted prices (5)	13	-	531	105	—	-	750	418	Increase
	Ÿ	Consensus pricing	Ÿ	Offered quotes (5)	68	-	780	487	78	-	103	86	Increase
RMBS	Ÿ	Consensus pricing	Ÿ	Offered quotes (5)	30	-	114	94	1	-	117	93	Increase (6)
ABS	Ÿ	Market pricing	Ÿ	Quoted prices (5)	91	-	109	100	97	-	108	101	Increase (6)
	Ÿ	Consensus pricing	Ÿ	Offered quotes (5)	64	-	106	100	62	-	106	99	Increase (6)
Derivatives
Interest rate	Ÿ	Present value techniques	Ÿ	Swap yield (7)	256	-	271		278	-	297		Increase (11)
Credit	Ÿ	Present value techniques	Ÿ	Credit spreads (8)	99	-	99		99	-	99		Decrease (8)
	Ÿ	Consensus pricing	Ÿ	Offered quotes (9)
Equity market	Ÿ	Present value techniques or option pricing models	Ÿ	Volatility (10)	15%	-	28%		15%	-	27%		Increase (11)
			Ÿ	Correlation (12)	70%	-	70%		70%	-	70%
Embedded derivatives
Direct and ceded guaranteed minimum benefits	Ÿ	Option pricing techniques	Ÿ	Mortality rates:
				Ages 0 - 40	0%	-	0.09%		0%	-	0.10%		Decrease (13)
				Ages 41 - 60	0.04%	-	0.65%		0.04%	-	0.65%		Decrease (13)
				Ages 61 - 115	0.26%	-	100%		0.26%	-	100%		Decrease (13)
			Ÿ	Lapse rates:
				Durations 1 - 10	0.50%	-	100%		0.50%	-	100%		Decrease (14)
				Durations 11 - 20	3%	-	100%		3%	-	100%		Decrease (14)
				Durations 21 - 116	3%	-	100%		3%	-	100%		Decrease (14)
			Ÿ	Utilization rates	0%	-	30%		20%	-	50%		Increase (15)
			Ÿ	Withdrawal rates	0.08%	-	10%		0.07%	-	10%		(16)
			Ÿ	Long-term equity volatilities	17.40%	-	25%		17.40%	-	25%		Increase (17)
			Ÿ	Nonperformance risk spread	0.04%	-	0.48%		0.03%	-	1.39%		Decrease (18)

____________

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

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

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

(4) Range and weighted average are presented in basis points.

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

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

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

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

(9) At both March 31, 2015 and December 31, 2014, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value.

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

(11) Changes are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions.

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

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

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

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

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

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

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

Fair Value, Measured on Recurring Basis, Unobservable Input Reconciliation

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

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	U.S. Corporate			RMBS			Foreign Corporate			CMBS			ABS
	(In millions)
Three Months Ended March 31, 2015
Balance, beginning of period	$	1,355		$	716		$	710		$	148		$	181
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	1			2			—			—			—
Net investment gains (losses)	—			—			—			—			—
Net derivative gains (losses)	—			—			—			—			—
Policyholder benefits and claims	—			—			—			—			—
OCI	12			(1		)	(10		)	—			1
Purchases (3)	58			248			2			74			292
Sales (3)	(7		)	(38		)	(11		)	—			(8		)
Issuances (3)	—			—			—			—			—
Settlements (3)	—			—			—			—			—
Transfers into Level 3 (4)	35			—			8			—			—
Transfers out of Level 3 (4)	(2		)	(6		)	—			(35		)	(47		)
Balance, end of period	$	1,452		$	921		$	699		$	187		$	419
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	1		$	2		$	—		$	—		$	—
Net investment gains (losses)	$	—		$	—		$	—		$	—		$	—
Net derivative gains (losses)	$	—		$	—		$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—		$	—

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Equity Securities									Net Derivatives (6)
	Common Stock			Non- redeemable Preferred Stock			Short-term Investments			Interest Rate			Credit			Equity Market			Net Embedded Derivatives (7)			Separate Account Assets (8)
	(In millions)
Three Months Ended March 31, 2015
Balance, beginning of period	$	29		$	71		$	71		$	45		$	1		$	(242	)	$	(347	)	$	158
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	—			—			—			—			—			—			—			—
Net investment gains (losses)	—			—			—			—			—			—			—			—
Net derivative gains (losses)	—			—			—			—			(1		)	(33		)	(223		)	—
Policyholder benefits and claims	—			—			—			—			—			1			24			—
OCI	—			(3		)	—			10			—			—			—			—
Purchases (3)	—			—			307			—			—			—			—			—
Sales (3)	—			—			(16		)	—			—			—			—			(2		)
Issuances (3)	—			—			—			—			—			—			—			—
Settlements (3)	—			—			—			(7		)	—			1			(116		)	—
Transfers into Level 3 (4)	—			—			—			—			—			—			—			—
Transfers out of Level 3 (4)	(1		)	(6		)	(55		)	—			—			—			—			—
Balance, end of period	$	28		$	62		$	307		$	48		$	—		$	(273	)	$	(662	)	$	156
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net investment gains (losses)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net derivative gains (losses)	$	—		$	—		$	—		$	—		$	—		$	(33	)	$	(224	)	$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—		$	—		$	1		$	25		$	—

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	U.S. Corporate			RMBS			Foreign Corporate			CMBS			ABS
	(In millions)
Three Months Ended March 31, 2014
Balance, beginning of period	$	1,270		$	450		$	779		$	129		$	426
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	1			1			—			—			—
Net investment gains (losses)	(1		)	3			—			—			—
Net derivative gains (losses)	—			—			—			—			—
Policyholder benefits and claims	—			—			—			—			—
OCI	29			3			16			—			4
Purchases (3)	23			146			3			34			58
Sales (3)	(37		)	(35		)	(1		)	(9		)	(6		)
Issuances (3)	—			—			—			—			—
Settlements (3)	—			—			—			—			—
Transfers into Level 3 (4)	197			14			—			6			—
Transfers out of Level 3 (4)	(61		)	(19		)	(40		)	(16		)	(289		)
Balance, end of period	$	1,421		$	563		$	757		$	144		$	193
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	1		$	1		$	—		$	—		$	—
Net investment gains (losses)	$	(1	)	$	—		$	—		$	—		$	—
Net derivative gains (losses)	$	—		$	—		$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—		$	—

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Equity Securities							Net Derivatives (6)
	Common Stock			Non- redeemable Preferred Stock		Short-term Investments		Interest Rate			Credit			Equity Market			Net Embedded Derivatives (7)			Separate Account Assets (8)
	(In millions)
Three Months Ended March 31, 2014
Balance, beginning of period	$	31		$	100	$	—	$	11		$	6		$	(309	)	$	288		$	153
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	—			—		—		—			—			—			—			—
Net investment gains (losses)	4			—		—		—			—			—			—			5
Net derivative gains (losses)	—			—		—		7			(2		)	(40		)	(356		)	—
Policyholder benefits and claims	—			—		—		—			—			4			15			—
OCI	(2		)	—		—		20			—			—			1			—
Purchases (3)	—			—		150		—			—			—			—			4
Sales (3)	(6		)	—		—		—			—			—			—			(2		)
Issuances (3)	—			—		—		—			—			—			—			—
Settlements (3)	—			—		—		(1		)	—			—			(210		)	—
Transfers into Level 3 (4)	6			8		—		—			—			—			—			—
Transfers out of Level 3 (4)	—			—		—		—			—			—			—			—
Balance, end of period	$	33		$	108	$	150	$	37		$	4		$	(345	)	$	(262	)	$	160
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	—		$	—	$	—	$	—		$	—		$	—		$	—		$	—
Net investment gains (losses)	$	—		$	—	$	—	$	—		$	—		$	—		$	—		$	—
Net derivative gains (losses)	$	—		$	—	$	—	$	6		$	(2	)	$	(39	)	$	(349	)	$	—
Policyholder benefits and claims	$	—		$	—	$	—	$	—		$	—		$	4		$	16		$	—

__________

(1) Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses).

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

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

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

(5) Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods.

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

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

(8) 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).

Fair Value Option

The following table presents information for certain assets and liabilities of CSEs, which are accounted for under the FVO. These assets and liabilities were initially measured at fair value.

	March 31, 2015		December 31, 2014
	(In millions)
Assets (1)
Unpaid principal balance	$	218	$	223
Difference between estimated fair value and unpaid principal balance	54		57
Carrying value at estimated fair value	$	272	$	280
Liabilities (1)
Contractual principal balance	$	127	$	133
Difference between estimated fair value and contractual principal balance	5		6
Carrying value at estimated fair value	$	132	$	139

____________

(1) These assets and liabilities are comprised of commercial mortgage loans and long-term debt. Changes in estimated fair value on these assets and liabilities and gains or losses on sales of these assets are recognized in net investment gains (losses). Interest income on commercial mortgage loans held by CSEs — FVO is recognized in net investment income. Interest expense from long-term debt of CSEs — FVO is recognized in other expenses.

Nonrecurring Fair Value Measurements

The following table presents information for assets measured at estimated fair value on a nonrecurring basis during the periods and still held at the reporting dates (for example, when there is evidence of impairment). The estimated fair values for these assets were determined using significant unobservable inputs (Level 3).

	At March 31,				Three Months   Ended   March 31,
	2015		2014		2015			2014
	Carrying Value After Measurement				Gains (Losses)
	(In millions)
Mortgage loans (1)	$	3	$	17	$	—		$	—
Other limited partnership interests (2)	$	—	$	4	$	(1	)	$	(2	)

____________

(1) Estimated fair values for impaired mortgage loans are based on independent broker quotations or valuation models using unobservable inputs or, if the loans are in foreclosure or are otherwise determined to be collateral dependent, are based on the estimated fair value of the underlying collateral or the present value of the expected future cash flows.

(2) For these cost method investments, estimated fair value is determined from information provided in the financial statements of the underlying entities including NAV data. These investments include private equity and debt funds that typically invest primarily in various 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. Distributions 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 two to 10 years. Unfunded commitments for these investments at both March 31, 2015 and 2014 were not significant.

Fair Value of Financial Instruments Carried at Other Than Fair Value

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

	March 31, 2015
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	5,848	$	—	$	—	$	6,285	$	6,285
Policy loans	$	1,190	$	—	$	837	$	455	$	1,292
Real estate joint ventures	$	31	$	—	$	—	$	81	$	81
Other limited partnership interests	$	61	$	—	$	—	$	80	$	80
Premiums, reinsurance and other receivables	$	6,233	$	—	$	92	$	7,411	$	7,503
Liabilities
Policyholder account balances	$	20,190	$	—	$	—	$	21,968	$	21,968
Long-term debt	$	789	$	—	$	1,165	$	—	$	1,165
Other liabilities	$	1,790	$	—	$	1,620	$	170	$	1,790
Separate account liabilities	$	1,414	$	—	$	1,414	$	—	$	1,414

	December 31, 2014
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	5,559	$	—	$	—	$	6,020	$	6,020
Policy loans	$	1,194	$	—	$	834	$	454	$	1,288
Real estate joint ventures	$	37	$	—	$	—	$	83	$	83
Other limited partnership interests	$	63	$	—	$	—	$	81	$	81
Premiums, reinsurance and other receivables	$	6,231	$	—	$	51	$	7,156	$	7,207
Liabilities
Policyholder account balances	$	20,554	$	—	$	—	$	22,079	$	22,079
Long-term debt	$	789	$	—	$	1,120	$	—	$	1,120
Other liabilities	$	245	$	—	$	76	$	169	$	245
Separate account liabilities	$	1,432	$	—	$	1,432	$	—	$	1,432

XML

Investments (Mortgage Loans and Valuation Allowance by Portfolio Segment) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Mortgage Loans on Real Estate [Line Items]
Unpaid Principal Balance	$ 4		$ 4
Recorded Investment	3		3
Valuation Allowances	0		0
Unpaid Principal Balance	0		0
Recorded Investment	0		0
Recorded Investment	5,871		5,581
Valuation Allowances	26		25
Carrying Value	3		3
Commercial
Mortgage Loans on Real Estate [Line Items]
Unpaid Principal Balance	0		0
Recorded Investment	0		0
Valuation Allowances	0		0
Unpaid Principal Balance	0		0
Recorded Investment	0		0
Recorded Investment	4,550		4,281
Valuation Allowances	22		21
Carrying Value	0		0
Agricultural
Mortgage Loans on Real Estate [Line Items]
Unpaid Principal Balance	4		4
Recorded Investment	3		3
Valuation Allowances	0		0
Unpaid Principal Balance	0		0
Recorded Investment	0		0
Recorded Investment	1,321		1,300
Valuation Allowances	4		4
Carrying Value	3		3
Commercial
Mortgage Loans on Real Estate [Line Items]
Impaired Financing Receivable, Average Recorded Investment	0	72
Agricultural
Mortgage Loans on Real Estate [Line Items]
Impaired Financing Receivable, Average Recorded Investment	$ 3	$ 4

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Other Expenses (Tables)

3 Months Ended

Mar. 31, 2015

Other Income and Expenses [Abstract]

Other Expenses

Information on other expenses was as follows:

	Three Months   Ended   March 31,
	2015			2014
	(In millions)
Compensation	$	125		$	63
Commissions	164			152
Volume-related costs	47			29
Affiliated interest costs on ceded reinsurance	87			66
Capitalization of DAC	(99		)	(76		)
Amortization of DAC and VOBA	195			273
Interest expense on debt	18			37
Rent and related expenses	17			8
Other	93			125
Total other expenses	$	647		$	677

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Derivatives (Cash Flow Hedges) (Details) (Cash Flow Hedges, USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Derivatives in cash flow hedging relationships
Amount of Gains (Losses) Deferred in AOCI on Derivatives	$ 92	$ 65
Interest rate swaps
Derivatives in cash flow hedging relationships
Amount of Gains (Losses) Deferred in AOCI on Derivatives	29	42
Interest rate forwards
Derivatives in cash flow hedging relationships
Amount of Gains (Losses) Deferred in AOCI on Derivatives	11	20
Foreign currency swaps
Derivatives in cash flow hedging relationships
Amount of Gains (Losses) Deferred in AOCI on Derivatives	52	3
Credit forwards
Derivatives in cash flow hedging relationships
Amount of Gains (Losses) Deferred in AOCI on Derivatives	0	0
Net derivative gains (losses)
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss)	(3)	0
Amount and Location of Gains (Losses) Recognized in Income (Loss) on Derivatives	0	2
Net derivative gains (losses) | Interest rate swaps
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss)	1	0
Amount and Location of Gains (Losses) Recognized in Income (Loss) on Derivatives	0	1
Net derivative gains (losses) | Interest rate forwards
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss)	1	0
Amount and Location of Gains (Losses) Recognized in Income (Loss) on Derivatives	0	1
Net derivative gains (losses) | Foreign currency swaps
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss)	(4)	0
Amount and Location of Gains (Losses) Recognized in Income (Loss) on Derivatives	0	0
Net derivative gains (losses) | Credit forwards
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss)	(1)	0
Amount and Location of Gains (Losses) Recognized in Income (Loss) on Derivatives	0	0
Net Investment Income
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss)	1	0
Net Investment Income | Interest rate swaps
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss)	0	0
Net Investment Income | Interest rate forwards
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss)	1	0
Net Investment Income | Foreign currency swaps
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss)	0	0
Net Investment Income | Credit forwards
Derivatives in cash flow hedging relationships
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss)	$ 0	$ 0

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Business, Basis of Presentation and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business, Basis of Presentation and Summary of Significant Accounting Policies

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

Business

“MetLife USA” and the “Company” refer to MetLife Insurance Company USA (formerly, MetLife Insurance Company of Connecticut (“MICC”)), a Delaware corporation originally incorporated in Connecticut in 1863, and its subsidiaries. MetLife Insurance Company USA is a wholly-owned subsidiary of MetLife, Inc. (MetLife, Inc., together with its subsidiaries and affiliates, “MetLife”). The Company offers individual annuities, individual life insurance, and institutional protection and asset accumulation products.

In November 2014, MetLife Insurance Company of Connecticut re-domesticated from Connecticut to Delaware, changed its name to MetLife Insurance Company USA and merged with its subsidiary, MetLife Investors USA Insurance Company (“MLI-USA”), and its affiliate, MetLife Investors Insurance Company, each a U.S. insurance company that issued variable annuity products in addition to other products, and Exeter Reassurance Company, Ltd., a former offshore, reinsurance subsidiary of MetLife, Inc. and affiliate of MICC that mainly reinsured guarantees associated with variable annuity products (the “Mergers”). The surviving entity of the Mergers was MetLife USA. The Mergers represent a transaction among entities under common control and have been accounted for in a manner similar to the pooling-of-interests method, which requires that the merged entities be combined at their historical cost. The Company’s consolidated financial statements and related footnotes are presented as if the transaction occurred at the beginning of the earliest date presented and the prior periods have been retrospectively adjusted. See Note 3 of the Notes to the Consolidated Financial Statements included in MetLife Insurance Company USA’s Annual Report on Form 10‑K for the year ended December 31, 2014 (the “2014 Annual Report”) for further information on the Mergers.

The Company is organized into two segments: Retail and Corporate Benefit Funding.

Basis of Presentation

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

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

The Company uses the equity method of accounting for equity securities when it has significant influence or at least 20% interest and for real estate joint ventures and other limited partnership interests (“investees”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations, but does not have a controlling financial interest. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. The Company uses the cost method of accounting for investments in which it has virtually no influence over the investee’s operations.

Certain amounts in the prior year periods’ interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform with the 2015 presentation as discussed throughout the Notes to the Interim Condensed Consolidated Financial Statements.

Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone entity.

The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2014 consolidated balance sheet data was derived from audited consolidated financial statements included in the 2014 Annual Report, which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2014 Annual Report.

Adoption of New Accounting Pronouncements

Effective January 1, 2015, the Company adopted guidance requiring repurchase-to-maturity transactions and repurchase financing arrangements to be accounted for as secured borrowings and providing for enhanced disclosures, including the nature of collateral pledged and the time to maturity. Certain interim period disclosures for repurchase agreements and securities lending transactions are not required until the second quarter of 2015. The adoption of this new guidance did not have a material impact on the Company’s consolidated financial statements.

Future Adoption of New Accounting Pronouncements

In May, 2015, the Financial Accounting Standards Board (“FASB”) issued new guidance on fair value measurement (Accounting Standards Update (“ASU”) 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)), effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years and which should be applied retrospectively to all periods presented. Earlier application is permitted. The new amendments in this ASU remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value (“NAV”) per share practical expedient. In addition, the amendments remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In April 2015, the FASB issued new guidance on accounting for fees paid in a cloud computing arrangement (ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement), effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption of the new guidance is permitted and an entity can elect to adopt the guidance either: (1) prospectively to all arrangements entered into or materially modified after the effective date; or (2) retrospectively. The new guidance provides that all software licenses included in cloud computing arrangements be accounted for consistent with other licenses of intangible assets. However, if a cloud computing arrangement does not include a software license, the arrangement should be accounted for as a service contract, the accounting for which did not change. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In April 2015, the FASB issued new guidance on the presentation of debt issuance costs (ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs), effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years and should be applied retrospectively to all periods presented. Early adoption of the new guidance is permitted for financial statements that have not been previously issued. The new guidance will require that debt issuance costs be presented in the balance sheet as a direct deduction from the related debt liability rather than as an asset, consistent with debt discounts. However, the current recognition and measurement guidance for debt issuance costs are not affected by the new guidance. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In February 2015, the FASB issued new guidance to improve consolidation guidance for legal entities (ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis), effective for fiscal years beginning after December 15, 2015 and interim periods within those years and early adoption is permitted. The new standard is intended to improve targeted areas of the consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures. The amendments in this ASU affect the consolidation evaluation for reporting organizations. In addition, the amendments in this ASU simplify and improve current GAAP by reducing the number of consolidation models. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In May 2014, the FASB issued a comprehensive new revenue recognition standard (ASU 2014‑09, Revenue from Contracts with Customers (Topic 606)), effective retrospectively for fiscal years beginning after December 15, 2016 and interim periods within those years. Early adoption of this standard is not permitted. The new guidance will supersede nearly all existing revenue recognition guidance under GAAP; however, it will not impact the accounting for insurance contracts, leases, financial instruments and guarantees. For those contracts that are impacted by the new guidance, the guidance will require an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

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Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Assets
Amortized cost of fixed maturity securities available-for-sale	$ 48,233	$ 46,423
Cost of equity securities available-for-sale	422	400
Mortgage loans valuation allowances	26	25
Mortgage loans, at estimated fair value, relating to variable interest entities	6,120	5,839
Real estate held-for-sale	46	93
Accrued investment income relating to variable interest entities	526	501
Liabilities
Long-term debt, at estimated fair value, relating to variable interest entities	921	928
Other liabilities relating to variable interest entities	9,828	7,944
Stockholders' Equity
Common stock, par value	$ 25,000	$ 25,000
Common stock, shares authorized	4,000	4,000
Common stock, shares issued	3,000	3,000
Common stock, shares outstanding	3,000	3,000
Variable interest entities
Assets
Mortgage loans, at estimated fair value, relating to variable interest entities	272	280
Accrued investment income relating to variable interest entities	1	2
Liabilities
Long-term debt, at estimated fair value, relating to variable interest entities	132	139
Other liabilities relating to variable interest entities	$ 1	$ 1

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

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Use of Estimates

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

Consolidation of Subsidiaries

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

The Company uses the equity method of accounting for equity securities when it has significant influence or at least 20% interest and for real estate joint ventures and other limited partnership interests (“investees”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations, but does not have a controlling financial interest. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. The Company uses the cost method of accounting for investments in which it has virtually no influence over the investee’s operations.

Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone entity.

The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2014 consolidated balance sheet data was derived from audited consolidated financial statements included in the 2014 Annual Report, which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2014 Annual Report.

Investments

Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured securities (RMBS, CMBS and ABS) are shown separately, as they are not due at a single maturity.

Maturities of Fixed Maturity Securities

The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial mortgage loans — 60 days and agricultural mortgage loans — 90 days.

Past Due and Interest Accrual Status of Mortgage Loans

Mortgage Loans Modified in a Troubled Debt Restructuring

For a small portion of the mortgage loan portfolio, classified as troubled debt restructurings, concessions are granted related to borrowers experiencing financial difficulties. Generally, the types of concessions include: reduction of the contractual interest rate, extension of the maturity date at an interest rate lower than current market interest rates, and/or a reduction of accrued interest. The amount, timing and extent of the concession granted is considered in determining any impairment or changes in the specific valuation allowance.

Variable Interest Entities

The Company has invested in certain structured transactions (including CSEs) that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity.

The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. The Company generally uses a qualitative approach to determine whether it is the primary beneficiary. However, for VIEs that are investment companies or apply measurement principles consistent with those utilized by investment companies, the primary beneficiary is based on a risks and rewards model and is defined as the entity that will absorb a majority of a VIE’s expected losses, receive a majority of a VIE’s expected residual returns if no single entity absorbs a majority of expected losses, or both. The Company reassesses its involvement with VIEs on a quarterly basis. The use of different methodologies, assumptions and inputs in the determination of the primary beneficiary could have a material effect on the amounts presented within the consolidated financial statements.

Derivatives

Accounting for Derivatives

Freestanding Derivatives

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

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

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

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

Hedge Accounting

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

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

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

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

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

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

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

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

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

Embedded Derivatives

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

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

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

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

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

Derivative Strategies

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

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

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

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

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Document and Entity Information (USD $)	3 Months Ended
	Mar. 31, 2015	May 13, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	MetLife Insurance Co USA
Entity Central Index Key	0000733076
Document Type	10-Q
Document Period End Date	Mar. 31, 2015
Amendment Flag	false
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Public Float	$ 0
Entity Common Stock, Shares Outstanding		3,000

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment Reporting Information, by Segment

	Operating Results
Three Months Ended March 31, 2015	Retail			Corporate Benefit Funding		Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	271		$	4	$	8		$	283		$	—		$	283
Universal life and investment-type product policy fees	643			9		—			652			66			718
Net investment income	504			218		(26		)	696			(61		)	635
Other revenues	118			1		1			120			—			120
Net investment gains (losses)	—			—		—			—			42			42
Net derivative gains (losses)	—			—		—			—			85			85
Total revenues	1,536			232		(17		)	1,751			132			1,883
Expenses
Policyholder benefits and claims	385			97		21			503			89			592
Interest credited to policyholder account balances	228			28		—			256			1			257
Capitalization of DAC	(74		)	—		(25		)	(99		)	—			(99		)
Amortization of DAC and VOBA	164			—		7			171			24			195
Interest expense on debt	—			—		17			17			1			18
Other expenses	472			12		49			533			—			533
Total expenses	1,175			137		69			1,381			115			1,496
Provision for income tax expense (benefit)	98			33		(34		)	97			6			103
Operating earnings	$	263		$	62	$	(52	)	273
Adjustments to:
Total revenues									132
Total expenses									(115		)
Provision for income tax (expense) benefit									(6		)
Net income (loss)									$	284					$	284

	Operating Results
Three Months Ended March 31, 2014	Retail			Corporate Benefit Funding (1)			Corporate & Other			Total			Adjustments			Total Consolidated
	(In millions)
Revenues
Premiums	$	229		$	(65	)	$	14		$	178		$	—		$	178
Universal life and investment-type product policy fees	669			8			45			722			83			805
Net investment income	502			237			(24		)	715			20			735
Other revenues	141			1			—			142			—			142
Net investment gains (losses)	—			—			—			—			(506		)	(506		)
Net derivative gains (losses)	—			—			—			—			(150		)	(150		)
Total revenues	1,541			181			35			1,757			(553		)	1,204
Expenses
Policyholder benefits and claims	389			26			13			428			140			568
Interest credited to policyholder account balances	238			31			—			269			—			269
Capitalization of DAC	(60		)	—			(16		)	(76		)	—			(76		)
Amortization of DAC and VOBA	193			1			8			202			71			273
Interest expense on debt	2			—			17			19			18			37
Other expenses	416			7			15			438			5			443
Total expenses	1,178			65			37			1,280			234			1,514
Provision for income tax expense (benefit)	103			41			(3		)	141			(252		)	(111		)
Operating earnings	$	260		$	75		$	1		336
Adjustments to:
Total revenues										(553		)
Total expenses										(234		)
Provision for income tax (expense) benefit										252
Net income (loss)										$	(199	)				$	(199	)

____________

(1) Premiums and policyholder benefits and claims both include ($87) million of ceded reinsurance with Metropolitan Life Insurance Company (“MLIC”). See Note 10.

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

	March 31, 2015		December 31, 2014
	(In millions)
Retail	$	175,865	$	173,657
Corporate Benefit Funding	25,794		25,312
Corporate & Other	10,663		6,894
Total	$	212,322	$	205,863

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Fair Value (Financial Instruments Carried at Other Than Fair Value) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Assets
Policy loans	$ 1,190	$ 1,194
Liabilities
Separate account liabilities	110,014	108,861
Estimated Fair Value
Assets
Mortgage loans	6,285	6,020
Policy loans	1,292	1,288
Real estate joint ventures	81	83
Other limited partnership interests	80	81
Premiums, reinsurance and other receivables	7,503	7,207
Liabilities
Policyholder account balances	21,968	22,079
Long-term debt	1,165	1,120
Other liabilities	1,790	245
Separate account liabilities	1,414	1,432
Estimated Fair Value | Level 1
Assets
Mortgage loans	0	0
Policy loans	0	0
Real estate joint ventures	0	0
Other limited partnership interests	0	0
Premiums, reinsurance and other receivables	0	0
Liabilities
Policyholder account balances	0	0
Long-term debt	0	0
Other liabilities	0	0
Separate account liabilities	0	0
Estimated Fair Value | Level 2
Assets
Mortgage loans	0	0
Policy loans	837	834
Real estate joint ventures	0	0
Other limited partnership interests	0	0
Premiums, reinsurance and other receivables	92	51
Liabilities
Policyholder account balances	0	0
Long-term debt	1,165	1,120
Other liabilities	1,620	76
Separate account liabilities	1,414	1,432
Estimated Fair Value | Level 3
Assets
Mortgage loans	6,285	6,020
Policy loans	455	454
Real estate joint ventures	81	83
Other limited partnership interests	80	81
Premiums, reinsurance and other receivables	7,411	7,156
Liabilities
Policyholder account balances	21,968	22,079
Long-term debt	0	0
Other liabilities	170	169
Separate account liabilities	0	0
Carrying Value
Assets
Mortgage loans	5,848	5,559
Policy loans	1,190	1,194
Real estate joint ventures	31	37
Other limited partnership interests	61	63
Premiums, reinsurance and other receivables	6,233	6,231
Liabilities
Policyholder account balances	20,190	20,554
Long-term debt	789	789
Other liabilities	1,790	245
Separate account liabilities	$ 1,414	$ 1,432

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Related Party Transactions (Reinsurance Transactions - Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Reinsurance Disclosures [Abstract]
Embedded Derivative, Fair Value of Embedded Derivative Liability	$ 960		$ 617
Net derivatives gains (losses)	(236)	(361)
Embedded Derivative, Fair Value of Embedded Derivative Asset	240		222
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	387	(310)
Affiliated Entity | Ceded guaranteed minimum benefits
Reinsurance Disclosures [Abstract]
Embedded Derivative, Fair Value of Embedded Derivative Liability	893		827
Net derivatives gains (losses)	(63)	(146)
Affiliated Entity | Funds Withheld On Ceded Reinsurance [Member]
Reinsurance Disclosures [Abstract]
Embedded Derivative, Fair Value of Embedded Derivative Liability	458		382
Net derivatives gains (losses)	(76)	(127)
Coinsurance Funds Withheld Basis, Percent	90.00%
Affiliated Entity | Separate AC Annuities MLIC [Member]
Reinsurance Disclosures [Abstract]
Net derivatives gains (losses)		2
Embedded Derivative, Fair Value of Embedded Derivative Asset	4		4
Affiliated Entity | Funds Withheld On Ceded MrD [Member]
Reinsurance Disclosures [Abstract]
Coinsurance Funds Withheld Basis, Percent	90.00%
Reinsurance recoverables	71		54
Funds Held under Reinsurance Agreements, Liability	18		118
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	3
Maximum | Affiliated Entity | Separate AC Annuities MLIC [Member]
Reinsurance Disclosures [Abstract]
Net derivatives gains (losses)	$ 1

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Consolidated Statements of Operations and Comprehensive Income (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenues
Premiums	$ 283	$ 178
Universal life and investment-type product policy fees	718	805
Net investment income	635	735
Other revenues	120	142
Net investment gains (losses):
Other-than-temporary impairments on fixed maturity securities	(2)	(1)
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss)	(1)	0
Other net investment gains (losses)	45	(505)
Total net investment gains (losses)	42	(506)
Net derivative gains (losses)	85	(150)
Total revenues	1,883	1,204
Expenses
Policyholder benefits and claims	592	568
Interest credited to policyholder account balances	257	269
Other expenses	647	677
Total expenses	1,496	1,514
Income (loss) before provision for income tax	387	(310)
Provision for income tax expense (benefit)	103	(111)
Net income (loss)	284	(199)
Comprehensive income (loss)	$ 578	$ 483

XML

Fair Value

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value

6.  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.

Recurring Fair Value Measurements

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

	March 31, 2015
	Fair Value Hierarchy						Total Estimated Fair Value
	Level 1		Level 2		Level 3
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	15,953	$	1,452	$	17,405
U.S. Treasury and agency	8,137		6,160		—		14,297
RMBS	1,359		6,443		921		8,723
Foreign corporate	—		4,734		699		5,433
State and political subdivision	—		2,661		—		2,661
CMBS	—		1,623		187		1,810
ABS	—		1,551		419		1,970
Foreign government	—		766		—		766
Total fixed maturity securities	9,496		39,891		3,678		53,065
Equity securities:
Common stock	108		115		28		251
Non-redeemable preferred stock	—		167		62		229
Total equity securities	108		282		90		480
Short-term investments (1)	542		2,062		307		2,911
Commercial mortgage loans held by CSEs — FVO	—		272		—		272
Derivative assets: (2)
Interest rate	2		2,941		48		2,991
Foreign currency exchange rate	—		194		—		194
Credit	—		30		—		30
Equity market	21		804		201		1,026
Total derivative assets	23		3,969		249		4,241
Net embedded derivatives within asset host contracts (3)	—		—		298		298
Separate account assets (4)	287		109,571		156		110,014
Total assets	$	10,456	$	156,047	$	4,778	$	171,281
Liabilities
Derivative liabilities: (2)
Interest rate	$	—	$	827	$	—	$	827
Foreign currency exchange rate	—		6		—		6
Credit	—		2		—		2
Equity market	—		671		474		1,145
Total derivative liabilities	—		1,506		474		1,980
Net embedded derivatives within liability host contracts (3)	—		—		960		960
Long-term debt of CSEs — FVO	—		132		—		132
Total liabilities	$	—	$	1,638	$	1,434	$	3,072

	December 31, 2014
	Fair Value Hierarchy						Total Estimated Fair Value
	Level 1		Level 2		Level 3
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	15,447	$	1,355	$	16,802
U.S. Treasury and agency	10,226		5,600		—		15,826
RMBS	—		5,365		716		6,081
Foreign corporate	—		4,704		710		5,414
State and political subdivision	—		2,592		—		2,592
CMBS	—		1,531		148		1,679
ABS	—		1,381		181		1,562
Foreign government	—		741		—		741
Total fixed maturity securities	10,226		37,361		3,110		50,697
Equity securities:
Common stock	105		99		29		233
Non-redeemable preferred stock	—		155		71		226
Total equity securities	105		254		100		459
Short-term investments (1)	253		812		71		1,136
Commercial mortgage loans held by CSEs — FVO	—		280		—		280
Derivative assets: (2)
Interest rate	1		2,363		45		2,409
Foreign currency exchange rate	—		118		—		118
Credit	—		28		1		29
Equity market	34		770		216		1,020
Total derivative assets	35		3,279		262		3,576
Net embedded derivatives within asset host contracts (3)	—		—		270		270
Separate account assets (4)	249		108,454		158		108,861
Total assets	$	10,868	$	150,440	$	3,971	$	165,279
Liabilities
Derivative liabilities: (2)
Interest rate	$	—	$	688	$	—	$	688
Foreign currency exchange rate	—		13		—		13
Credit	—		2		—		2
Equity market	—		657		458		1,115
Total derivative liabilities	—		1,360		458		1,818
Net embedded derivatives within liability host contracts (3)	—		—		617		617
Long-term debt of CSEs — FVO	—		139		—		139
Total liabilities	$	—	$	1,499	$	1,075	$	2,574

____________

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

(2) Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on 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.

(3) Net embedded derivatives within asset host contracts are presented primarily within premiums, reinsurance and other receivables on the consolidated balance sheets. Net embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the consolidated balance sheets. At March 31, 2015 and December 31, 2014, equity securities also included embedded derivatives of ($58) million and ($48) million, respectively.

(4) 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.

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

Investments

Valuation Controls and Procedures

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

The Company reviews its valuation methodologies on an ongoing basis and revises those methodologies when necessary based on changing market conditions. Assurance is gained on the overall reasonableness and consistent application of input assumptions, valuation methodologies and compliance with fair value accounting standards through controls designed to ensure valuations represent an exit price. Several controls are utilized, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, comparing fair value estimates to management’s knowledge of the current market, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. The Company ensures that prices received from independent brokers, also referred to herein as “consensus pricing,” represent a reasonable estimate of fair value by considering such pricing relative to the Company’s knowledge of the current market dynamics and current pricing for similar financial instruments. While independent non-binding broker quotations are utilized, they are not used for a significant portion of the portfolio. For example, fixed maturity securities priced using independent non-binding broker quotations represent 1% of the total estimated fair value of fixed maturity securities and 15% of the total estimated fair value of Level 3 fixed maturity securities at March 31, 2015.

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

Securities, Short-term Investments and Long-term Debt of CSEs — FVO

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

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

The estimated fair value of long-term debt of CSEs — FVO is determined on a basis consistent with the methodologies described herein for securities.

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

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

Instrument	Level 2 Observable Inputs		Level 3 Unobservable Inputs
Equity Securities
Common and Non-redeemable preferred stock
	Valuation Techniques: Principally the market approach.		Valuation Techniques: Principally the market and income approaches.
	Key Input:		Key Inputs:
	•	quoted prices in markets that are not considered active	•	credit ratings
			•	issuance structures
			•	quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2
			•	independent non-binding broker quotations
Short-term investments
	•	Short-term investments are of a similar nature and class to the fixed maturity and equity securities described above; accordingly, the valuation techniques and observable inputs used in their valuation are also similar to those described above.	•	Short-term investments are of a similar nature and class to the fixed maturity and equity securities described above; accordingly, the valuation techniques and unobservable inputs used in their valuation are also similar to those described above.
Commercial mortgage loans held by CSEs — FVO
	Valuation Techniques: Principally the market approach.		•	N/A
	Key Input:
	•	quoted securitization market price of the obligations of the CSEs determined principally by independent pricing services using observable inputs
Separate Account Assets (1)
Mutual funds without readily determinable fair values as prices are not published publicly
	Key Input:
	•	quoted prices or reported NAV provided by the fund managers	•	N/A
Other limited partnership interests
	•	N/A	Valuation Techniques: Valued giving consideration to the underlying holdings of the partnerships and by applying a premium or discount, if appropriate.
			Key Inputs:
			•	liquidity
			•	bid/ask spreads
			•	the performance record of the fund manager
			•	other relevant variables that may impact the exit value of the particular partnership interest

______________

(1) Estimated fair value equals carrying value, based on the value of the underlying assets, including: mutual fund interests, fixed maturity securities, equity securities, derivatives, other limited partnership interests, short-term investments and cash and cash equivalents. Fixed maturity securities, equity securities, derivatives, short-term investments and cash and cash equivalents are similar in nature to the instruments described under “— Securities, Short-term Investments and Long-term Debt of CSEs — FVO” and “— Derivatives — Freestanding Derivatives Valuation Techniques and Key Inputs.”

Derivatives

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

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

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

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

Freestanding Derivatives Valuation Techniques and Key Inputs

Level 2

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

Level 3

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

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

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

______________

(1) Option-based only.

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

Embedded Derivatives

Embedded derivatives principally include certain direct, assumed and ceded variable annuity guarantees and embedded derivatives related to funds withheld on ceded reinsurance and within certain annuity contracts. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income.

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

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

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

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

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

The Company assumed from an affiliated insurance company the risk associated with certain GMIBs. These embedded derivatives are included in other policy-related balances on the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on these assumed risks is determined using a methodology consistent with that described previously for the guarantees directly written by the Company.

The Company ceded to an affiliated reinsurance company the risk associated with certain of the GMIBs, GMABs and GMWBs described above that are also accounted for as embedded derivatives. In addition to ceding risks associated with guarantees that are accounted for as embedded derivatives, the Company also cedes, to the same affiliated reinsurance company, certain directly written GMIBs that are accounted for as insurance (i.e., not as embedded derivatives), but where the reinsurance agreement contains an embedded derivative. These embedded derivatives are included within premiums, reinsurance and other receivables on the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer.

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

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

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

Embedded Derivatives Within Asset and Liability Host Contracts

Level 3 Valuation Techniques and Key Inputs:

Direct and assumed guaranteed minimum benefits

These embedded derivatives are principally valued using the income approach. Valuations are based on option pricing techniques, which utilize significant inputs that may include swap yield 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 the income approach. The valuation techniques and significant market standard unobservable inputs used in their valuation are similar to those described above in “— Direct and assumed guaranteed minimum benefits” and also include counterparty credit spreads.

Transfers between Levels

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

Transfers between Levels 1 and 2:

For assets and liabilities measured at estimated fair value and still held at March 31, 2015 and December 31, 2014, transfers between Levels 1 and 2 were not significant.

Transfers into or out of Level 3:

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

Transfers into Level 3 for fixed maturity securities were due primarily to 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 independent non-binding broker quotations and unobservable inputs, such as illiquidity premiums, delta spread adjustments, or credit spreads.

Transfers out of Level 3 for fixed maturity securities 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 (such as observable spreads used in pricing securities) or increases in market activity and upgraded credit ratings.

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

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

					March 31, 2015				December 31, 2014				Impact of Increase in Input on Estimated Fair Value (2)
	Valuation Techniques		Significant Unobservable Inputs		Range			Weighted Average (1)	Range			Weighted Average (1)
Fixed maturity securities (3)
U.S. corporate and foreign corporate	Ÿ	Matrix pricing	Ÿ	Delta spread adjustments (4)	(35)	-	240	47	(35)	-	240	51	Decrease
	Ÿ	Market pricing	Ÿ	Quoted prices (5)	13	-	531	105	—	-	750	418	Increase
	Ÿ	Consensus pricing	Ÿ	Offered quotes (5)	68	-	780	487	78	-	103	86	Increase
RMBS	Ÿ	Consensus pricing	Ÿ	Offered quotes (5)	30	-	114	94	1	-	117	93	Increase (6)
ABS	Ÿ	Market pricing	Ÿ	Quoted prices (5)	91	-	109	100	97	-	108	101	Increase (6)
	Ÿ	Consensus pricing	Ÿ	Offered quotes (5)	64	-	106	100	62	-	106	99	Increase (6)
Derivatives
Interest rate	Ÿ	Present value techniques	Ÿ	Swap yield (7)	256	-	271		278	-	297		Increase (11)
Credit	Ÿ	Present value techniques	Ÿ	Credit spreads (8)	99	-	99		99	-	99		Decrease (8)
	Ÿ	Consensus pricing	Ÿ	Offered quotes (9)
Equity market	Ÿ	Present value techniques or option pricing models	Ÿ	Volatility (10)	15%	-	28%		15%	-	27%		Increase (11)
			Ÿ	Correlation (12)	70%	-	70%		70%	-	70%
Embedded derivatives
Direct and ceded guaranteed minimum benefits	Ÿ	Option pricing techniques	Ÿ	Mortality rates:
				Ages 0 - 40	0%	-	0.09%		0%	-	0.10%		Decrease (13)
				Ages 41 - 60	0.04%	-	0.65%		0.04%	-	0.65%		Decrease (13)
				Ages 61 - 115	0.26%	-	100%		0.26%	-	100%		Decrease (13)
			Ÿ	Lapse rates:
				Durations 1 - 10	0.50%	-	100%		0.50%	-	100%		Decrease (14)
				Durations 11 - 20	3%	-	100%		3%	-	100%		Decrease (14)
				Durations 21 - 116	3%	-	100%		3%	-	100%		Decrease (14)
			Ÿ	Utilization rates	0%	-	30%		20%	-	50%		Increase (15)
			Ÿ	Withdrawal rates	0.08%	-	10%		0.07%	-	10%		(16)
			Ÿ	Long-term equity volatilities	17.40%	-	25%		17.40%	-	25%		Increase (17)
			Ÿ	Nonperformance risk spread	0.04%	-	0.48%		0.03%	-	1.39%		Decrease (18)

____________

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

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

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

(4) Range and weighted average are presented in basis points.

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

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

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

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

(9) At both March 31, 2015 and December 31, 2014, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value.

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

(11) Changes are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions.

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

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

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

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

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

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

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

The following is a summary of the valuation techniques and significant unobservable inputs used in the fair value measurement of assets and liabilities classified within Level 3 that are not included in the preceding table. Generally, all other classes of securities classified within Level 3, including those within separate account assets and embedded derivatives within funds withheld related to certain ceded reinsurance, use the same valuation techniques and significant unobservable inputs as previously described for Level 3 securities. This includes matrix pricing and discounted cash flow methodologies, inputs such as quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2, as well as independent non-binding broker quotations. The sensitivity of the estimated fair value to changes in the significant unobservable inputs for these other assets and liabilities is similar in nature to that described in the preceding table. The valuation techniques and significant unobservable inputs used in the fair value measurement for the more significant assets measured at estimated fair value on a nonrecurring basis and determined using significant unobservable inputs (Level 3) are summarized in “— Nonrecurring Fair Value Measurements.”

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):

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	U.S. Corporate			RMBS			Foreign Corporate			CMBS			ABS
	(In millions)
Three Months Ended March 31, 2015
Balance, beginning of period	$	1,355		$	716		$	710		$	148		$	181
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	1			2			—			—			—
Net investment gains (losses)	—			—			—			—			—
Net derivative gains (losses)	—			—			—			—			—
Policyholder benefits and claims	—			—			—			—			—
OCI	12			(1		)	(10		)	—			1
Purchases (3)	58			248			2			74			292
Sales (3)	(7		)	(38		)	(11		)	—			(8		)
Issuances (3)	—			—			—			—			—
Settlements (3)	—			—			—			—			—
Transfers into Level 3 (4)	35			—			8			—			—
Transfers out of Level 3 (4)	(2		)	(6		)	—			(35		)	(47		)
Balance, end of period	$	1,452		$	921		$	699		$	187		$	419
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	1		$	2		$	—		$	—		$	—
Net investment gains (losses)	$	—		$	—		$	—		$	—		$	—
Net derivative gains (losses)	$	—		$	—		$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—		$	—

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Equity Securities									Net Derivatives (6)
	Common Stock			Non- redeemable Preferred Stock			Short-term Investments			Interest Rate			Credit			Equity Market			Net Embedded Derivatives (7)			Separate Account Assets (8)
	(In millions)
Three Months Ended March 31, 2015
Balance, beginning of period	$	29		$	71		$	71		$	45		$	1		$	(242	)	$	(347	)	$	158
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	—			—			—			—			—			—			—			—
Net investment gains (losses)	—			—			—			—			—			—			—			—
Net derivative gains (losses)	—			—			—			—			(1		)	(33		)	(223		)	—
Policyholder benefits and claims	—			—			—			—			—			1			24			—
OCI	—			(3		)	—			10			—			—			—			—
Purchases (3)	—			—			307			—			—			—			—			—
Sales (3)	—			—			(16		)	—			—			—			—			(2		)
Issuances (3)	—			—			—			—			—			—			—			—
Settlements (3)	—			—			—			(7		)	—			1			(116		)	—
Transfers into Level 3 (4)	—			—			—			—			—			—			—			—
Transfers out of Level 3 (4)	(1		)	(6		)	(55		)	—			—			—			—			—
Balance, end of period	$	28		$	62		$	307		$	48		$	—		$	(273	)	$	(662	)	$	156
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net investment gains (losses)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net derivative gains (losses)	$	—		$	—		$	—		$	—		$	—		$	(33	)	$	(224	)	$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—		$	—		$	1		$	25		$	—

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	U.S. Corporate			RMBS			Foreign Corporate			CMBS			ABS
	(In millions)
Three Months Ended March 31, 2014
Balance, beginning of period	$	1,270		$	450		$	779		$	129		$	426
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	1			1			—			—			—
Net investment gains (losses)	(1		)	3			—			—			—
Net derivative gains (losses)	—			—			—			—			—
Policyholder benefits and claims	—			—			—			—			—
OCI	29			3			16			—			4
Purchases (3)	23			146			3			34			58
Sales (3)	(37		)	(35		)	(1		)	(9		)	(6		)
Issuances (3)	—			—			—			—			—
Settlements (3)	—			—			—			—			—
Transfers into Level 3 (4)	197			14			—			6			—
Transfers out of Level 3 (4)	(61		)	(19		)	(40		)	(16		)	(289		)
Balance, end of period	$	1,421		$	563		$	757		$	144		$	193
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	1		$	1		$	—		$	—		$	—
Net investment gains (losses)	$	(1	)	$	—		$	—		$	—		$	—
Net derivative gains (losses)	$	—		$	—		$	—		$	—		$	—
Policyholder benefits and claims	$	—		$	—		$	—		$	—		$	—

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Equity Securities							Net Derivatives (6)
	Common Stock			Non- redeemable Preferred Stock		Short-term Investments		Interest Rate			Credit			Equity Market			Net Embedded Derivatives (7)			Separate Account Assets (8)
	(In millions)
Three Months Ended March 31, 2014
Balance, beginning of period	$	31		$	100	$	—	$	11		$	6		$	(309	)	$	288		$	153
Total realized/unrealized gains (losses) included in:
Net income (loss): (1), (2)
Net investment income	—			—		—		—			—			—			—			—
Net investment gains (losses)	4			—		—		—			—			—			—			5
Net derivative gains (losses)	—			—		—		7			(2		)	(40		)	(356		)	—
Policyholder benefits and claims	—			—		—		—			—			4			15			—
OCI	(2		)	—		—		20			—			—			1			—
Purchases (3)	—			—		150		—			—			—			—			4
Sales (3)	(6		)	—		—		—			—			—			—			(2		)
Issuances (3)	—			—		—		—			—			—			—			—
Settlements (3)	—			—		—		(1		)	—			—			(210		)	—
Transfers into Level 3 (4)	6			8		—		—			—			—			—			—
Transfers out of Level 3 (4)	—			—		—		—			—			—			—			—
Balance, end of period	$	33		$	108	$	150	$	37		$	4		$	(345	)	$	(262	)	$	160
Changes in unrealized gains (losses) included in net income (loss): (5)
Net investment income	$	—		$	—	$	—	$	—		$	—		$	—		$	—		$	—
Net investment gains (losses)	$	—		$	—	$	—	$	—		$	—		$	—		$	—		$	—
Net derivative gains (losses)	$	—		$	—	$	—	$	6		$	(2	)	$	(39	)	$	(349	)	$	—
Policyholder benefits and claims	$	—		$	—	$	—	$	—		$	—		$	4		$	16		$	—

__________

(1) Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses).

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

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

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

(5) Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods.

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

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

(8) 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).

Fair Value Option

The following table presents information for certain assets and liabilities of CSEs, which are accounted for under the FVO. These assets and liabilities were initially measured at fair value.

	March 31, 2015		December 31, 2014
	(In millions)
Assets (1)
Unpaid principal balance	$	218	$	223
Difference between estimated fair value and unpaid principal balance	54		57
Carrying value at estimated fair value	$	272	$	280
Liabilities (1)
Contractual principal balance	$	127	$	133
Difference between estimated fair value and contractual principal balance	5		6
Carrying value at estimated fair value	$	132	$	139

____________

(1) These assets and liabilities are comprised of commercial mortgage loans and long-term debt. Changes in estimated fair value on these assets and liabilities and gains or losses on sales of these assets are recognized in net investment gains (losses). Interest income on commercial mortgage loans held by CSEs — FVO is recognized in net investment income. Interest expense from long-term debt of CSEs — FVO is recognized in other expenses.

Nonrecurring Fair Value Measurements

The following table presents information for assets measured at estimated fair value on a nonrecurring basis during the periods and still held at the reporting dates (for example, when there is evidence of impairment). The estimated fair values for these assets were determined using significant unobservable inputs (Level 3).

	At March 31,				Three Months   Ended   March 31,
	2015		2014		2015			2014
	Carrying Value After Measurement				Gains (Losses)
	(In millions)
Mortgage loans (1)	$	3	$	17	$	—		$	—
Other limited partnership interests (2)	$	—	$	4	$	(1	)	$	(2	)

____________

(1) Estimated fair values for impaired mortgage loans are based on independent broker quotations or valuation models using unobservable inputs or, if the loans are in foreclosure or are otherwise determined to be collateral dependent, are based on the estimated fair value of the underlying collateral or the present value of the expected future cash flows.

(2) For these cost method investments, estimated fair value is determined from information provided in the financial statements of the underlying entities including NAV data. These investments include private equity and debt funds that typically invest primarily in various 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. Distributions 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 two to 10 years. Unfunded commitments for these investments at both March 31, 2015 and 2014 were not significant.

Fair Value of Financial Instruments Carried at Other Than Fair Value

The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income, payables for collateral under securities loaned and other transactions and those short-term investments that are not securities, such as time deposits, and therefore are not included in the three level hierarchy table disclosed in the “— Recurring Fair Value Measurements” section. The estimated fair value of the excluded financial instruments, which are primarily classified in Level 2 and, to a lesser extent, in Level 1, approximates carrying value, as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality. All remaining balance sheet amounts excluded from the table below are not considered financial instruments subject to this disclosure.

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

	March 31, 2015
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	5,848	$	—	$	—	$	6,285	$	6,285
Policy loans	$	1,190	$	—	$	837	$	455	$	1,292
Real estate joint ventures	$	31	$	—	$	—	$	81	$	81
Other limited partnership interests	$	61	$	—	$	—	$	80	$	80
Premiums, reinsurance and other receivables	$	6,233	$	—	$	92	$	7,411	$	7,503
Liabilities
Policyholder account balances	$	20,190	$	—	$	—	$	21,968	$	21,968
Long-term debt	$	789	$	—	$	1,165	$	—	$	1,165
Other liabilities	$	1,790	$	—	$	1,620	$	170	$	1,790
Separate account liabilities	$	1,414	$	—	$	1,414	$	—	$	1,414

	December 31, 2014
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	5,559	$	—	$	—	$	6,020	$	6,020
Policy loans	$	1,194	$	—	$	834	$	454	$	1,288
Real estate joint ventures	$	37	$	—	$	—	$	83	$	83
Other limited partnership interests	$	63	$	—	$	—	$	81	$	81
Premiums, reinsurance and other receivables	$	6,231	$	—	$	51	$	7,156	$	7,207
Liabilities
Policyholder account balances	$	20,554	$	—	$	—	$	22,079	$	22,079
Long-term debt	$	789	$	—	$	1,120	$	—	$	1,120
Other liabilities	$	245	$	—	$	76	$	169	$	245
Separate account liabilities	$	1,432	$	—	$	1,432	$	—	$	1,432

The methods, assumptions and significant valuation techniques and inputs used to estimate the fair value of financial instruments are summarized as follows:

Mortgage Loans

The estimated fair value of mortgage loans is primarily determined by estimating expected future cash flows and discounting them using current interest rates for similar mortgage loans with similar credit risk, or is determined from pricing for similar loans.

Policy Loans

Policy loans with fixed interest rates are classified within Level 3. The estimated fair values for these loans 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 by 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. Policy loans with variable interest rates are classified within Level 2 and the estimated fair value 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

The estimated fair values of these cost method investments 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.

Premiums, Reinsurance and Other Receivables

Premiums, reinsurance and other receivables are principally comprised of certain amounts recoverable under reinsurance agreements, amounts on deposit with financial institutions to facilitate daily settlements related to certain derivatives and amounts receivable for securities sold but not yet settled. Embedded derivatives on investment contracts and certain variable annuity guarantees accounted for as embedded derivatives are excluded from this caption in the preceding tables as they are separately presented in “— Recurring Fair Value Measurements.”

Amounts recoverable under ceded reinsurance agreements, which the Company has determined do not transfer significant risk such that they are accounted for using the deposit method of accounting, have been classified as Level 3. The valuation is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using interest rates determined to reflect the appropriate credit standing of the assuming counterparty.

The amounts on deposit for derivative settlements, classified within Level 2, 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.

Policyholder Account Balances

These policyholder account balances include investment contracts. Embedded derivatives on investment contracts and certain variable annuity guarantees accounted for as embedded derivatives are excluded from this caption in the preceding tables as they are separately presented in “— Recurring Fair Value Measurements.”

The investment contracts primarily include certain funding agreements, fixed deferred annuities, modified guaranteed annuities, fixed term payout annuities and total control accounts. The valuation of these investment contracts is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using current market risk-free interest rates adding a spread to reflect the nonperformance risk in the liability.

Long-term Debt

The estimated fair value of long-term debt is principally determined using market standard valuation methodologies. Valuations of instruments are based primarily on quoted prices in markets that are not active or using matrix pricing that use standard market observable inputs such as quoted prices in markets that are not active and observable yields and spreads in the market. Instruments valued using discounted cash flow methodologies use standard market observable inputs including market yield curve, duration, observable prices and spreads for similar publicly traded or privately traded issues.

Other Liabilities

Other liabilities consist primarily of interest payable, amounts due for securities purchased but not yet settled and funds withheld amounts payable, which are contractually withheld by the Company in accordance with the terms of the reinsurance agreements. 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.

Separate Account Liabilities

Separate account liabilities represent those balances due to policyholders under contracts that are classified as investment contracts.

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 and certain contracts that provide for benefit funding.

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 value of those assets approximates the estimated fair value of the related separate account liabilities. The valuation techniques and inputs for separate account liabilities are similar to those described for separate account assets.

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Derivatives

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

5.  Derivatives

Accounting for Derivatives

Freestanding Derivatives

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

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

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

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

Hedge Accounting

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

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

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

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

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

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

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

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

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

Embedded Derivatives

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

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

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

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

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

See Note 6 for information about the fair value hierarchy for derivatives.

Derivative Strategies

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

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

Interest Rate Derivatives

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

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

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

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

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

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

Foreign Currency Exchange Rate Derivatives

The Company uses foreign currency swaps to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies. In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in fair value, cash flow and non-qualifying hedging relationships.

To a lesser extent, the Company uses foreign currency forwards and exchange-traded currency futures in non-qualifying hedging relationships.

Credit Derivatives

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

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

To a lesser extent, the Company uses credit forwards to lock in the price to be paid for forward purchases of certain securities. The Company utilizes credit forwards in cash flow hedging relationships.

Equity Derivatives

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

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

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

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

TRRs are swaps whereby the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and the London Interbank Offered Rate (“LIBOR”), calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. The Company uses TRRs to hedge its equity market guarantees in certain of its insurance products. TRRs can be used as hedges or to synthetically create investments. The Company utilizes TRRs in non-qualifying hedging relationships.

Primary Risks Managed by Derivatives

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

		March 31, 2015						December 31, 2014
	Primary Underlying Risk Exposure	Gross Notional Amount		Estimated Fair Value				Gross Notional Amount		Estimated Fair Value
				Assets		Liabilities				Assets		Liabilities
		(In millions)
Derivatives Designated as Hedging Instruments
Fair value hedges:
Interest rate swaps	Interest rate	$	369	$	42	$	2	$	379	$	33	$	2
Foreign currency swaps	Foreign currency exchange rate	—		—		—		—		—		—
Subtotal		369		42		2		379		33		2
Cash flow hedges:
Interest rate swaps	Interest rate	335		103		—		369		81		—
Interest rate forwards	Interest rate	130		48		—		155		45		—
Foreign currency swaps	Foreign currency exchange rate	768		107		5		728		56		9
Subtotal		1,233		258		5		1,252		182		9
Total qualifying hedges		1,602		300		7		1,631		215		11
Derivatives Not Designated or Not Qualifying as Hedging Instruments
Interest rate swaps	Interest rate	25,078		2,019		761		25,919		1,709		601
Interest rate floors	Interest rate	13,504		77		63		16,404		83		69
Interest rate caps	Interest rate	7,901		6		—		7,901		11		—
Interest rate futures	Interest rate	730		2		—		325		1		—
Interest rate options	Interest rate	18,870		694		1		29,870		446		16
Foreign currency swaps	Foreign currency exchange rate	751		81		1		672		59		4
Foreign currency forwards	Foreign currency exchange rate	49		6		—		48		3		—
Credit default swaps — purchased	Credit	45		—		1		45		—		1
Credit default swaps — written	Credit	1,851		30		1		1,924		29		1
Equity futures	Equity market	3,238		21		—		3,086		34		—
Equity index options	Equity market	30,631		881		639		27,212		854		613
Equity variance swaps	Equity market	15,283		118		450		15,433		120		435
TRRs	Equity market	2,408		6		56		2,332		12		67
Total non-designated or non-qualifying derivatives		120,339		3,941		1,973		131,171		3,361		1,807
Total		$	121,941	$	4,241	$	1,980	$	132,802	$	3,576	$	1,818

Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both March 31, 2015 and December 31, 2014. The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and that generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules; (ii) derivatives that economically hedge insurance liabilities that contain mortality or morbidity risk and that generally do not qualify for hedge accounting because the lack of these risks in the derivatives cannot support an expectation of a highly effective hedging relationship; (iii) derivatives that economically hedge embedded derivatives that do not qualify for hedge accounting because the changes in estimated fair value of the embedded derivatives are already recorded in net income; and (iv) written credit default swaps that are used to synthetically create credit investments and that do not qualify for hedge accounting because they do not involve a hedging relationship. For these non-qualified derivatives, changes in market factors can lead to the recognition of fair value changes on the statement of operations without an offsetting gain or loss recognized in earnings for the item being hedged.

Net Derivative Gains (Losses)

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

	Three Months   Ended   March 31,
	2015			2014
	(In millions)
Derivatives and hedging gains (losses) (1)	$	321		$	211
Embedded derivatives gains (losses)	(236		)	(361		)
Total net derivative gains (losses)	$	85		$	(150	)

____________

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

The following table presents earned income on derivatives:

	Three Months   Ended   March 31,
	2015		2014
	(In millions)
Qualifying hedges:
Net investment income	$	3	$	1
Interest credited to policyholder account balances	—		—
Non-qualifying hedges:
Net derivative gains (losses)	91		80
Policyholder benefits and claims	3		(9		)
Total	$	97	$	72

Non-Qualifying Derivatives and Derivatives for Purposes Other Than Hedging

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

	Net Derivative Gains (Losses)			Net Investment Income (1)			Policyholder Benefits and Claims (2)
	(In millions)
Three Months Ended March 31, 2015
Interest rate derivatives	$	401		$	—		$	11
Foreign currency exchange rate derivatives	35			—			—
Credit derivatives — written	1			—			—
Equity derivatives	(209		)	(1		)	(73		)
Total	$	228		$	(1	)	$	(62	)
Three Months Ended March 31, 2014
Interest rate derivatives	$	253		$	—		$	12
Foreign currency exchange rate derivatives	54			—			—
Credit derivatives — written	(2		)	—			—
Equity derivatives	(178		)	(3		)	(39		)
Total	$	127		$	(3	)	$	(27	)

____________

(1) Changes in estimated fair value related to economic hedges of equity method investments in joint ventures.

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

Fair Value Hedges

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

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

Derivatives in Fair Value Hedging Relationships	Hedged Items in Fair Value Hedging Relationships	Net Derivative Gains (Losses) Recognized for Derivatives			Net Derivative Gains (Losses) Recognized for Hedged Items			Ineffectiveness Recognized in Net Derivative Gains (Losses)
		(In millions)
Three Months Ended March 31, 2015
Interest rate swaps:	Fixed maturity securities	$	(1	)	$	1		$	—
	Policyholder liabilities (1)	9			(9		)	—
Foreign currency swaps:	Foreign-denominated policyholder account balances (2)	—			—			—
Total		$	8		$	(8	)	$	—
Three Months Ended March 31, 2014
Interest rate swaps:	Fixed maturity securities	$	—		$	—		$	—
	Policyholder liabilities (1)	9			(9		)	—
Foreign currency swaps:	Foreign-denominated policyholder account balances	1			(1		)	—
Total		$	10		$	(10	)	$	—

____________

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

(2) Fixed rate or floating rate liabilities.

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

Cash Flow Hedges

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

In certain instances, the Company discontinued cash flow hedge accounting because the forecasted transactions were no longer probable of occurring. Because certain of the forecasted transactions also were not probable of occurring within two months of the anticipated date, the Company reclassified certain amounts from AOCI into net derivative gains (losses). For the three months endedMarch 31, 2015, the amounts reclassified into net derivative gains (losses) related to such discontinued cash flow hedges were not significant. For the three months endedMarch 31, 2014, there were no amounts reclassified into net derivative gains (losses) related to such discontinued cash flow hedges.

At both March 31, 2015 and December 31, 2014, the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions did not exceed five years.

At March 31, 2015 and December 31, 2014, the balance in AOCI associated with cash flow hedges was $376 million and $282 million, respectively. 

The following table presents the effects of derivatives in cash flow hedging relationships on the consolidated statements of operations and comprehensive income (loss) and the consolidated statements of stockholder’s equity:

Derivatives in Cash Flow Hedging Relationships	Amount of Gains (Losses) Deferred in AOCI on Derivatives		Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss)					Amount and Location of Gains (Losses) Recognized in Income (Loss) on Derivatives
	(Effective Portion)		(Effective Portion)					(Ineffective Portion)
			Net Derivative Gains (Losses)			Net Investment Income		Net Derivative Gains (Losses)
			(In millions)
Three Months Ended March 31, 2015
Interest rate swaps	$	29	$	1		$	—	$	—
Interest rate forwards	11		1			1		—
Foreign currency swaps	52		(4		)	—		—
Credit forwards	—		(1		)	—		—
Total	$	92	$	(3	)	$	1	$	—
Three Months Ended March 31, 2014
Interest rate swaps	$	42	$	—		$	—	$	1
Interest rate forwards	20		—			—		1
Foreign currency swaps	3		—			—		—
Credit forwards	—		—			—		—
Total	$	65	$	—		$	—	$	2

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

At March 31, 2015, $18 million of deferred net gains (losses) on derivatives in AOCI was expected to be reclassified to earnings within the next 12 months.

Credit Derivatives

In connection with synthetically created credit investment transactions, the Company writes credit default swaps for which it receives a premium to insure credit risk. Such credit derivatives are included within the non-qualifying derivatives and derivatives for purposes other than hedging table. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation. The Company’s maximum amount at risk, assuming the value of all referenced credit obligations is zero, was $1.9 billion at both March 31, 2015 and December 31, 2014. The Company can terminate these contracts at any time through cash settlement with the counterparty at an amount equal to the then current fair value of the credit default swaps. At March 31, 2015 and December 31, 2014, the Company would have received $29 million and $28 million, respectively, to terminate all of these contracts.

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

	March 31, 2015					December 31, 2014
Rating Agency Designation of Referenced Credit Obligations (1)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps (2)		Weighted Average Years to Maturity (3)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps (2)		Weighted Average Years to Maturity (3)
	(In millions)					(In millions)
Aaa/Aa/A
Single name credit default swaps (corporate)	$	2	$	155	1.8	$	2	$	155	2.1
Credit default swaps referencing indices	—		84		1.7	1		134		1.3
Subtotal	2		239		1.8	3		289		1.7
Baa
Single name credit default swaps (corporate)	5		434		2.1	5		454		2.3
Credit default swaps referencing indices	19		1,143		5.1	18		1,145		5.0
Subtotal	24		1,577		4.3	23		1,599		4.2
B
Single name credit default swaps (corporate)	—		—		—	—		—		—
Credit default swaps referencing indices	3		35		4.8	2		36		5.0
Subtotal	3		35		4.8	2		36		5.0
Total	$	29	$	1,851	3.9	$	28	$	1,924	3.8

____________

(1) The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings. 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 gross notional amounts.

Credit Risk on Freestanding Derivatives

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

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

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

See Note 6 for a description of the impact of credit risk on the valuation of derivatives.

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

	March 31, 2015						December 31, 2014
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement (6)	Assets			Liabilities			Assets			Liabilities
	(In millions)
Gross estimated fair value of derivatives:
OTC-bilateral (1)	$	4,227		$	1,909		$	3,554		$	1,767
OTC-cleared (1)	90			95			75			73
Exchange-traded	23			—			35			—
Total gross estimated fair value of derivatives (1)	4,340			2,004			3,664			1,840
Amounts offset on the consolidated balance sheets	—			—			—			—
Estimated fair value of derivatives presented on the consolidated balance sheets (1)	4,340			2,004			3,664			1,840
Gross amounts not offset on the consolidated balance sheets:
Gross estimated fair value of derivatives: (2)
OTC-bilateral	(1,722		)	(1,722		)	(1,592		)	(1,592		)
OTC-cleared	(67		)	(67		)	(54		)	(54		)
Exchange-traded	—			—			—			—
Cash collateral: (3), (4)
OTC-bilateral	(1,660		)	—			(753		)	—
OTC-cleared	(23		)	(26		)	(21		)	(18		)
Exchange-traded	—			—			—			—
Securities collateral: (5)
OTC-bilateral	(796		)	(188		)	(1,152		)	(175		)
OTC-cleared	—			(1		)	—			—
Exchange-traded	—			—			—			—
Net amount after application of master netting agreements and collateral	$	72		$	—		$	92		$	1

____________

(1) At March 31, 2015 and December 31, 2014, derivative assets include income or expense accruals reported in accrued investment income or in other liabilities of $99 million and $88 million, respectively, and derivative liabilities include income or expense accruals reported in accrued investment income or in other liabilities of $24 million and $22 million, respectively.

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

(3) Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. In certain instances, cash collateral pledged to the Company as initial margin for OTC-bilateral derivatives is held in separate custodial accounts and is not recorded on the Company’s balance sheet because the account title is in the name of the counterparty (but segregated for the benefit of the Company). The amount of this off-balance sheet collateral was $91 million and $121 million at March 31, 2015 and December 31, 2014, respectively.

(4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At March 31, 2015 and December 31, 2014, the Company received excess cash collateral of $41 million and $33 million (including $40 million and $33 million off-balance sheet cash collateral held in separate custodial accounts), respectively, and provided excess cash collateral of $40 million and $30 million, respectively, which is not included in the table above due to the foregoing limitation.

(5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at March 31, 2015none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At March 31, 2015 and December 31, 2014, the Company received excess securities collateral with an estimated fair value of $74 million and $122 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At March 31, 2015 and December 31, 2014, the Company provided excess securities collateral with an estimated fair value of $24 million and $17 million, respectively, for its OTC-bilateral derivatives, and $40 million and $37 million, respectively, for its OTC-cleared derivatives, and $136 million and $165 million, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation.

(6) See Note 4 for information regarding the Company’s gross and net payables and receivables under repurchase agreement transactions.

The Company’s collateral arrangements for its OTC-bilateral derivatives generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the fair value of that counterparty’s derivatives reaches a pre-determined threshold. Certain of these arrangements also include financial strength-contingent provisions that provide for a reduction of these thresholds (on a sliding scale that converges toward zero) in the event of downgrades in the financial strength ratings of the Company and/or the credit ratings of the counterparty. In addition, certain of the Company’s netting agreements for derivatives contain provisions that require both the Company and the counterparty to maintain a specific investment grade financial strength or credit rating from each of Moody’s and S&P. If a party’s financial strength or credit ratings were to fall below that specific investment grade financial strength or credit rating, that party would be in violation of these provisions, and the other party to the derivatives could terminate the transactions and demand immediate settlement and payment based on such party’s reasonable valuation of the derivatives.

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

			Estimated Fair Value of Collateral Provided		Fair Value of Incremental  Collateral Provided Upon
	Estimated Fair Value of Derivatives in Net Liability Position (1)		Fixed Maturity Securities		One Notch Downgrade in the Company’s Financial Strength Rating		Downgrade in the Company’s Financial Strength Rating to a Level that Triggers Full Overnight Collateralization or Termination of  the Derivative Position
	(In millions)
March 31, 2015	$	187	$	212	$	—	$	—
December 31, 2014	$	175	$	192	$	—	$	—

____________

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

Embedded Derivatives

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

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

	Balance Sheet Location	March 31, 2015			December 31, 2014
		(In millions)
Net embedded derivatives within asset host contracts:
Ceded guaranteed minimum benefits	Premiums, reinsurance and other receivables	$	242		$	217
Funds withheld on assumed reinsurance	Other invested assets	56			53
Options embedded in debt or equity securities	Investments	(58		)	(48		)
Net embedded derivatives within asset host contracts		$	240		$	222
Net embedded derivatives within liability host contracts:
Direct guaranteed minimum benefits	Policyholder account balances	$	(410	)	$	(609	)
Assumed guaranteed minimum benefits	Policyholder account balances	893			827
Funds withheld on ceded reinsurance	Other liabilities	458			382
Other	Policyholder account balances	19			17
Net embedded derivatives within liability host contracts		$	960		$	617

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

	Three Months   Ended   March 31,
	2015			2014
	(In millions)
Net derivative gains (losses) (1), (2)	$	(236	)	$	(361	)
Policyholder benefits and claims	$	24		$	15

____________

(1) The valuation of direct and assumed guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $16 million and $44 million for the three months endedMarch 31, 2015 and 2014, respectively.

(2) See Note 10 for discussion of affiliated net derivative gains (losses) included in the table above.

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Equity (Tables)

3 Months Ended

Mar. 31, 2015

Equity [Abstract]

Components of Accumulated Other Comprehensive Income (Loss)

Information regarding changes in the balances of each component of AOCI was as follows:

	Three Months   Ended   March 31, 2015
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)			Unrealized Gains (Losses) on Derivatives			Foreign Currency Translation Adjustments			Total
	(In millions)
Balance, beginning of period	$	2,250		$	183		$	(7	)	$	2,426
OCI before reclassifications	393			92			(10		)	475
Deferred income tax benefit (expense)	(138		)	(31		)	4			(165		)
OCI before reclassifications, net of income tax	2,505			244			(13		)	2,736
Amounts reclassified from AOCI	(26		)	2			—			(24		)
Deferred income tax benefit (expense)	9			(1		)	—			8
Amounts reclassified from AOCI, net of income tax	(17		)	1			—			(16		)
Balance, end of period	$	2,488		$	245		$	(13	)	$	2,720

	Three Months   Ended   March 31, 2014
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)			Unrealized Gains (Losses) on Derivatives			Foreign Currency Translation Adjustments			Total
	(In millions)
Balance, beginning of period	$	916		$	25		$	39		$	980
OCI before reclassifications	1,000			65			11			1,076
Deferred income tax benefit (expense)	(337		)	(23		)	(16		)	(376		)
OCI before reclassifications, net of income tax	1,579			67			34			1,680
Amounts reclassified from AOCI	(27		)	—			—			(27		)
Deferred income tax benefit (expense)	9			—			—			9
Amounts reclassified from AOCI, net of income tax	(18		)	—			—			(18		)
Balance, end of period	$	1,561		$	67		$	34		$	1,662

____________

(1) See Note 4 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI.

Reclassification out of Accumulated Other Comprehensive Income (Loss)

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

AOCI Components	Amounts Reclassified from AOCI						Consolidated Statement of Operations and Comprehensive Income (Loss) Locations
	Three Months   Ended   March 31,
	2015			2014
	(In millions)
Net unrealized investment gains (losses):
Net unrealized investment gains (losses)	$	19		$	19		Net investment gains (losses)
Net unrealized investment gains (losses)	11			6			Net investment income
Net unrealized investment gains (losses)	(4		)	2			Net derivative gains (losses)
Net unrealized investment gains (losses), before income tax	26			27
Income tax (expense) benefit	(9		)	(9		)
Net unrealized investment gains (losses), net of income tax	17			18
Unrealized gains (losses) on derivatives - cash flow hedges:
Interest rate swaps	1			—			Net derivative gains (losses)
Interest rate forwards	1			—			Net derivative gains (losses)
Interest rate forwards	1			—			Net investment income
Foreign currency swaps	(4		)	—			Net derivative gains (losses)
Credit forwards	(1		)	—			Net derivative gains (losses)
Gains (losses) on cash flow hedges, before income tax	(2		)	—
Income tax (expense) benefit	1			—
Gains (losses) on cash flow hedges, net of income tax	(1		)	—
Total reclassifications, net of income tax	$	16		$	18

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Insurance (Tables)

3 Months Ended

Mar. 31, 2015

Insurance [Abstract]

Guarantees related to Annuity, Universal and Variable Life Contracts

Information regarding the types of guarantees relating to annuity contracts and universal and variable life contracts was as follows at: 

	March 31, 2015				December 31, 2014
	In the Event of Death		At Annuitization		In the Event of Death		At Annuitization
	(In millions)
Annuity Contracts (1)
Variable Annuity Guarantees
Total contract account value	$	113,275	$	65,009	$	112,298	$	64,550
Separate account value	$	108,287	$	63,694	$	107,261	$	63,206
Net amount at risk	$	2,933	$	1,487	$	3,151	$	1,297
Average attained age of contractholders	66 years		66 years		65 years		65 years

	March 31, 2015		December 31, 2014
	Secondary Guarantees
	(In millions)
Universal and Variable Life Contracts (1)
Account value (general and separate account)	$	6,765	$	6,702
Net amount at risk	$	91,098	$	91,204
Average attained age of policyholders	59 years		59 years

____________

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

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Equity (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment gains (losses)	$ 42	$ (506)
Net derivative gains (losses)	85	(150)
Net investment income	635	735
Income (loss) before provision for income tax	387	(310)
Provision for income tax expense (benefit)	(103)	111
Net income (loss)	284	(199)
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income (loss)	16	18
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Investment Gains (Losses), Net of Related Offsets
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment gains (losses)	19	19
Net derivative gains (losses)	(4)	2
Net investment income	11	6
Income (loss) before provision for income tax	26	27
Provision for income tax expense (benefit)	(9)	(9)
Net income (loss)	17	18
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) before provision for income tax	(2)	0
Provision for income tax expense (benefit)	1	0
Net income (loss)	(1)	0
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Interest rate swaps
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net derivative gains (losses)	1	0
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Interest rate forwards
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net derivative gains (losses)	1	0
Net investment income	1	0
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Foreign currency swaps
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net derivative gains (losses)	(4)	0
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Credit forwards
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net derivative gains (losses)	$ (1)	$ 0

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Contingencies, Commitments and Guarantees

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Contingencies, Commitments and Guarantees

9. Contingencies, Commitments and Guarantees

Contingencies

Litigation

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

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

The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at March 31, 2015.

Matters as to Which an Estimate Can Be Made

For some loss contingency matters, the Company is able to estimate a reasonably possible range of loss. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. As of March 31, 2015, the aggregate range of reasonably possible losses in excess of amounts accrued for these matters was not material for the Company.

Matters as to Which an Estimate Cannot Be Made

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

Unclaimed Property Litigation

On December 28, 2012, the West Virginia Treasurer filed an action (West Virginia ex rel. John D. Perdue v. MetLife Insurance Company of Connecticut, Circuit Court of Putnam County), alleging that MetLife Insurance Company of Connecticut violated the West Virginia Uniform Unclaimed Property Act, seeking to compel compliance with the Act, and seeking payment of unclaimed property, interest, and penalties. On November 14, 2012, the Treasurer filed a substantially identical suit against MLI‑USA. On December 30, 2013, the court granted defendants’ motions to dismiss all of the West Virginia Treasurer’s actions. The Treasurer has appealed the dismissal order.

Sales Practices Claims

Over the past several years, the Company has faced claims and regulatory inquiries and investigations, alleging improper marketing or sales of individual life insurance policies, annuities, mutual funds or other products. The Company continues to defend vigorously against the claims in these matters. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters.

Summary

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

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

Commitments

Mortgage Loan Commitments

The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $372 million and $36 million at March 31, 2015 and December 31, 2014, respectively.

Commitments to Fund Partnership Investments and Private Corporate Bond Investments

The Company commits to fund partnership investments and to lend funds under private corporate bond investments. The amounts of these unfunded commitments were $1.1 billion and $918 million at March 31, 2015 and December 31, 2014, respectively.

Other Commitments

The Company has entered into collateral arrangements with affiliates, which require the transfer of collateral in connection with secured demand notes. At both March 31, 2015 and December 31, 2014, the Company had agreed to fund up to $32 million of cash upon the request by these affiliates and had transferred collateral consisting of various securities with a fair market value of $60 million and $57 million at March 31, 2015 and December 31, 2014, respectively, to custody accounts to secure the demand notes. Each of these affiliates is permitted by contract to sell or re-pledge this collateral.

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Investments Investments (Unconsolidated Variable Interest Entities - Narrative) (Details) (Maximum, USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Maximum
Variable Interest Entity [Line Items]
Tax Credits Guaranteed By Third Parties Amount That Reduces Maximum Exposure To Loss Related To Other Invested Assets	$ 1	$ 1

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Equity

3 Months Ended

Mar. 31, 2015

Equity [Abstract]

Equity

7.  Equity

Accumulated Other Comprehensive Income (Loss)

Information regarding changes in the balances of each component of AOCI was as follows:

	Three Months   Ended   March 31, 2015
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)			Unrealized Gains (Losses) on Derivatives			Foreign Currency Translation Adjustments			Total
	(In millions)
Balance, beginning of period	$	2,250		$	183		$	(7	)	$	2,426
OCI before reclassifications	393			92			(10		)	475
Deferred income tax benefit (expense)	(138		)	(31		)	4			(165		)
OCI before reclassifications, net of income tax	2,505			244			(13		)	2,736
Amounts reclassified from AOCI	(26		)	2			—			(24		)
Deferred income tax benefit (expense)	9			(1		)	—			8
Amounts reclassified from AOCI, net of income tax	(17		)	1			—			(16		)
Balance, end of period	$	2,488		$	245		$	(13	)	$	2,720

	Three Months   Ended   March 31, 2014
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)			Unrealized Gains (Losses) on Derivatives			Foreign Currency Translation Adjustments			Total
	(In millions)
Balance, beginning of period	$	916		$	25		$	39		$	980
OCI before reclassifications	1,000			65			11			1,076
Deferred income tax benefit (expense)	(337		)	(23		)	(16		)	(376		)
OCI before reclassifications, net of income tax	1,579			67			34			1,680
Amounts reclassified from AOCI	(27		)	—			—			(27		)
Deferred income tax benefit (expense)	9			—			—			9
Amounts reclassified from AOCI, net of income tax	(18		)	—			—			(18		)
Balance, end of period	$	1,561		$	67		$	34		$	1,662

____________

(1) See Note 4 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI.

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

AOCI Components	Amounts Reclassified from AOCI						Consolidated Statement of Operations and Comprehensive Income (Loss) Locations
	Three Months   Ended   March 31,
	2015			2014
	(In millions)
Net unrealized investment gains (losses):
Net unrealized investment gains (losses)	$	19		$	19		Net investment gains (losses)
Net unrealized investment gains (losses)	11			6			Net investment income
Net unrealized investment gains (losses)	(4		)	2			Net derivative gains (losses)
Net unrealized investment gains (losses), before income tax	26			27
Income tax (expense) benefit	(9		)	(9		)
Net unrealized investment gains (losses), net of income tax	17			18
Unrealized gains (losses) on derivatives - cash flow hedges:
Interest rate swaps	1			—			Net derivative gains (losses)
Interest rate forwards	1			—			Net derivative gains (losses)
Interest rate forwards	1			—			Net investment income
Foreign currency swaps	(4		)	—			Net derivative gains (losses)
Credit forwards	(1		)	—			Net derivative gains (losses)
Gains (losses) on cash flow hedges, before income tax	(2		)	—
Income tax (expense) benefit	1			—
Gains (losses) on cash flow hedges, net of income tax	(1		)	—
Total reclassifications, net of income tax	$	16		$	18

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Other Expenses

3 Months Ended

Mar. 31, 2015

Other Income and Expenses [Abstract]

Other Expenses

8. Other Expenses

Information on other expenses was as follows:

	Three Months   Ended   March 31,
	2015			2014
	(In millions)
Compensation	$	125		$	63
Commissions	164			152
Volume-related costs	47			29
Affiliated interest costs on ceded reinsurance	87			66
Capitalization of DAC	(99		)	(76		)
Amortization of DAC and VOBA	195			273
Interest expense on debt	18			37
Rent and related expenses	17			8
Other	93			125
Total other expenses	$	647		$	677

Affiliated Expenses

Commissions, capitalization of DAC and amortization of DAC and VOBA include the impact of affiliated reinsurance transactions. See Note 10 for a discussion of affiliated expenses included in the table above.

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Related Party Transactions

3 Months Ended

Mar. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions

10.  Related Party Transactions

Service Agreements

The Company has entered into various agreements with affiliates for services necessary to conduct its activities. Typical services provided under these agreements include management, policy administrative functions, personnel, investment advice and distribution services. For certain agreements, charges are based on various performance measures or activity-based costing. The bases for such charges are modified and adjusted by management when necessary or appropriate to reflect fairly and equitably the actual incidence of cost incurred by the Company and/or affiliate. Expenses and fees incurred with affiliates related to these agreements, recorded in other expenses, were $391 million and $333 million for the three months endedMarch 31, 2015 and 2014, respectively. Revenues received from affiliates related to these agreements, recorded in universal life and investment-type product policy fees, were $63 million and $67 million for the three months endedMarch 31, 2015 and 2014, respectively. Revenues received from affiliates related to these agreements, recorded in other revenues, were $50 million and $53 million for the three months endedMarch 31, 2015 and 2014, respectively.

The Company had net receivables from affiliates related to the items discussed above of $100 million and $26 million at March 31, 2015 and December 31, 2014, respectively.

See Note 4 for additional information on related party transactions.

Related Party Reinsurance Transactions

The Company has reinsurance agreements with certain MetLife subsidiaries, including MLIC, MetLife Reinsurance Company of South Carolina, First MetLife Investors Insurance Company, General American Life Insurance Company, MetLife Europe Limited, MetLife Reinsurance Company of Vermont, New England Life Insurance Company, MetLife Reinsurance Company of Delaware (“MRD”), Delaware American Life Insurance Company and American Life Insurance Company, all of which are related parties.

Information regarding the significant effects of affiliated reinsurance included on the consolidated statements of operations and comprehensive income (loss) was as follows:

	Three Months   Ended   March 31,
	2015			2014
	(In millions)
Premiums
Reinsurance assumed	$	25		$	10
Reinsurance ceded	(200		)	(263		)
Net premiums	$	(175	)	$	(253	)
Universal life and investment-type product policy fees
Reinsurance assumed	$	31		$	81
Reinsurance ceded	(87		)	(94		)
Net universal life and investment-type product policy fees	$	(56	)	$	(13	)
Other revenues
Reinsurance assumed	$	—		$	4
Reinsurance ceded	58			71
Net other revenues	$	58		$	75
Policyholder benefits and claims
Reinsurance assumed	$	35		$	37
Reinsurance ceded	(240		)	(310		)
Net policyholder benefits and claims	$	(205	)	$	(273	)
Interest credited to policyholder account balances
Reinsurance assumed	$	19		$	23
Reinsurance ceded	(37		)	(33		)
Net interest credited to policyholder account balances	$	(18	)	$	(10	)
Other expenses
Reinsurance assumed	$	15		$	18
Reinsurance ceded	50			22
Net other expenses	$	65		$	40

Information regarding the significant effects of affiliated reinsurance included on the consolidated balance sheets was as follows at:

	March 31, 2015					December 31, 2014
	Assumed		Ceded			Assumed		Ceded
	(In millions)
Assets
Premiums, reinsurance and other receivables	$	59	$	12,876		$	45	$	12,718
Deferred policy acquisition costs and value of business acquired	171		(723		)	164		(707		)
Total assets	$	230	$	12,153		$	209	$	12,011
Liabilities
Future policy benefits	$	593	$	—		$	593	$	—
Policyholder account balances	893		—			827		—
Other policy-related balances	1,712		754			1,689		763
Other liabilities	20		5,307			16		5,109
Total liabilities	$	3,218	$	6,061		$	3,125	$	5,872

The Company assumes risks from affiliates related to guaranteed minimum benefit guarantees written directly by the affiliates. These assumed reinsurance agreements contain embedded derivatives and changes in their fair value are also included within net derivative gains (losses). The embedded derivatives associated with the cessions are included within policyholder account balances and were liabilities of $893 million and $827 million at March 31, 2015 and December 31, 2014, respectively. For the three months endedMarch 31, 2015 and 2014, net derivative gains (losses) included ($63) million and ($146) million, respectively, in changes in fair value of such embedded derivatives.

The Company ceded several blocks of business to affiliates on a 90% coinsurance with funds withheld basis. Certain contractual features of this agreement qualify as embedded derivatives, which are separately accounted for at estimated fair value on the Company’s consolidated balance sheets. The embedded derivative related to the funds withheld associated with this reinsurance agreement is included within other liabilities and increased the funds withheld balance by $458 million and $382 million at March 31, 2015 and December 31, 2014, respectively. Net derivative gains (losses) associated with the embedded derivatives were ($76) million and ($127) million for the three months endedMarch 31, 2015 and 2014, respectively.

In January 2014, prior to the Mergers, the Company entered into an agreement with MLIC which ceded all existing New York insurance policies and annuity contracts that include a separate account feature. Certain contractual features of this agreement qualify as embedded derivatives, which are separately accounted for at fair value on the Company’s consolidated balance sheet. The embedded derivative related to this agreement is included within receivables from affiliates and was $4 million at both March 31, 2015 and December 31, 2014. Net derivative gains (losses) associated with the embedded derivative were less than $1 million and $2 million for the three months endedMarch 31, 2015 and 2014, respectively. See Note 1 for further information on the Mergers.

In December 2014, the Company entered into a reinsurance agreement to cede two blocks of business to MRD on a 90% coinsurance with funds withheld basis. This agreement covers certain term and certain universal life policies issued in 2014 by the Company. This agreement transfers risk to MRD and, therefore, is accounted for as reinsurance. As a result of the agreement, affiliated reinsurance recoverables, included in premiums, reinsurance and other receivables, were $71 million and $54 million at March 31, 2015 and December 31, 2014, respectively. The Company also recorded a funds withheld liability and other reinsurance payables, included in other liabilities, which were $18 million and $118 million at March 31, 2015 and December 31, 2014, respectively. The Company’s consolidated statement of operations and comprehensive income (loss) includes a loss for this agreement of $3 million for the three months endedMarch 31, 2015.

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Derivatives (Net Derivative Gains Losses) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Components of Net Derivatives Gains (Losses)
Derivatives and hedging gains (losses)	$ 321	$ 211
Embedded derivatives gains (losses)	(236)	(361)
Total net derivative gains (losses)	$ 85	$ (150)

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Other Expenses (Other Expenses) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Other Income and Expenses [Abstract]
Compensation	$ 125	$ 63
Commissions	164	152
Volume-related costs	47	29
Affiliated interest costs on ceded reinsurance	87	66
Capitalization of DAC	(99)	(76)
Amortization of DAC and VOBA	195	273
Interest expense on debt	18	37
Rent and related expenses	17	8
Other	93	125
Total other expenses	$ 647	$ 677

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Derivatives (Gains Losses Recognized in Income Not Designated or Qualifying) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	$ 8	$ 10
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net derivative gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	228	127
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net derivative gains (losses) | Interest rate derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	401	253
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net derivative gains (losses) | Foreign currency exchange rate derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	35	54
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net derivative gains (losses) | Credit default swaps — written
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	1	(2)
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net derivative gains (losses) | Equity derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	(209)	(178)
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	(1)	(3)
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net Investment Income | Interest rate derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	0	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net Investment Income | Foreign currency exchange rate derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	0	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net Investment Income | Credit default swaps — written
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	0	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net Investment Income | Equity derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	(1)	(3)
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Policyholder benefits and claims
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	(62)	(27)
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Policyholder benefits and claims | Interest rate derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	11	12
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Policyholder benefits and claims | Foreign currency exchange rate derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	0	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Policyholder benefits and claims | Credit default swaps — written
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	0	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Policyholder benefits and claims | Equity derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Net Derivative Gains (Losses) Recognized for Derivatives	$ (73)	$ (39)

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Derivatives (Primary Risks) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Derivatives, Fair Value [Line Items]
Gross Notional Amount	$ 121,941	$ 132,802
Estimated Fair Value Assets	4,241	3,576
Estimated Fair Value Liabilities	1,980	1,818
Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Gross Notional Amount	1,602	1,631
Estimated Fair Value Assets	300	215
Estimated Fair Value Liabilities	7	11
Derivatives Designated as Hedging Instruments | Fair Value Hedges
Derivatives, Fair Value [Line Items]
Gross Notional Amount	369	379
Estimated Fair Value Assets	42	33
Estimated Fair Value Liabilities	2	2
Derivatives Designated as Hedging Instruments | Fair Value Hedges | Interest rate swaps
Derivatives, Fair Value [Line Items]
Gross Notional Amount	369	379
Estimated Fair Value Assets	42	33
Estimated Fair Value Liabilities	2	2
Derivatives Designated as Hedging Instruments | Fair Value Hedges | Foreign currency swaps
Derivatives, Fair Value [Line Items]
Gross Notional Amount	0	0
Estimated Fair Value Assets	0	0
Estimated Fair Value Liabilities	0	0
Derivatives Designated as Hedging Instruments | Cash Flow Hedges
Derivatives, Fair Value [Line Items]
Gross Notional Amount	1,233	1,252
Estimated Fair Value Assets	258	182
Estimated Fair Value Liabilities	5	9
Derivatives Designated as Hedging Instruments | Cash Flow Hedges | Interest rate swaps
Derivatives, Fair Value [Line Items]
Gross Notional Amount	335	369
Estimated Fair Value Assets	103	81
Estimated Fair Value Liabilities	0	0
Derivatives Designated as Hedging Instruments | Cash Flow Hedges | Interest rate forwards
Derivatives, Fair Value [Line Items]
Gross Notional Amount	130	155
Estimated Fair Value Assets	48	45
Estimated Fair Value Liabilities	0	0
Derivatives Designated as Hedging Instruments | Cash Flow Hedges | Foreign currency swaps
Derivatives, Fair Value [Line Items]
Gross Notional Amount	768	728
Estimated Fair Value Assets	107	56
Estimated Fair Value Liabilities	5	9
Derivatives Not Designated or Not Qualifying as Hedging Instruments
Derivatives, Fair Value [Line Items]
Gross Notional Amount	120,339	131,171
Estimated Fair Value Assets	3,941	3,361
Estimated Fair Value Liabilities	1,973	1,807
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Interest rate swaps
Derivatives, Fair Value [Line Items]
Gross Notional Amount	25,078	25,919
Estimated Fair Value Assets	2,019	1,709
Estimated Fair Value Liabilities	761	601
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Interest rate floors
Derivatives, Fair Value [Line Items]
Gross Notional Amount	13,504	16,404
Estimated Fair Value Assets	77	83
Estimated Fair Value Liabilities	63	69
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Interest rate caps
Derivatives, Fair Value [Line Items]
Gross Notional Amount	7,901	7,901
Estimated Fair Value Assets	6	11
Estimated Fair Value Liabilities	0	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Interest rate futures
Derivatives, Fair Value [Line Items]
Gross Notional Amount	730	325
Estimated Fair Value Assets	2	1
Estimated Fair Value Liabilities	0	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Interest rate options
Derivatives, Fair Value [Line Items]
Gross Notional Amount	18,870	29,870
Estimated Fair Value Assets	694	446
Estimated Fair Value Liabilities	1	16
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Foreign currency swaps
Derivatives, Fair Value [Line Items]
Gross Notional Amount	751	672
Estimated Fair Value Assets	81	59
Estimated Fair Value Liabilities	1	4
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Foreign currency forwards
Derivatives, Fair Value [Line Items]
Gross Notional Amount	49	48
Estimated Fair Value Assets	6	3
Estimated Fair Value Liabilities	0	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Credit default swaps — purchased
Derivatives, Fair Value [Line Items]
Gross Notional Amount	45	45
Estimated Fair Value Assets	0	0
Estimated Fair Value Liabilities	1	1
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Credit default swaps — written
Derivatives, Fair Value [Line Items]
Gross Notional Amount	1,851	1,924
Estimated Fair Value Assets	30	29
Estimated Fair Value Liabilities	1	1
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Equity futures
Derivatives, Fair Value [Line Items]
Gross Notional Amount	3,238	3,086
Estimated Fair Value Assets	21	34
Estimated Fair Value Liabilities	0	0
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Equity index options
Derivatives, Fair Value [Line Items]
Gross Notional Amount	30,631	27,212
Estimated Fair Value Assets	881	854
Estimated Fair Value Liabilities	639	613
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Equity variance swaps
Derivatives, Fair Value [Line Items]
Gross Notional Amount	15,283	15,433
Estimated Fair Value Assets	118	120
Estimated Fair Value Liabilities	450	435
Derivatives Not Designated or Not Qualifying as Hedging Instruments | TRRs
Derivatives, Fair Value [Line Items]
Gross Notional Amount	2,408	2,332
Estimated Fair Value Assets	6	12
Estimated Fair Value Liabilities	$ 56	$ 67

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Investments (Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities Available-For-Sale) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Total number of securities in an unrealized loss position less than 12 months	625	752
Total number of securities in an unrealized loss position equal to or greater than 12 months	292	333
Fixed maturity securities
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Less than 12 months Estimated Fair Value	$ 5,449	$ 7,624
Less than 12 Months Gross Unrealized Loss	139	129
Equal to or Greater than 12 Months Estimated Fair Value	1,253	1,853
Equal to or Greater than 12 Months Gross Unrealized Loss	135	139
U.S. corporate
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Less than 12 months Estimated Fair Value	1,094	1,346
Less than 12 Months Gross Unrealized Loss	37	45
Equal to or Greater than 12 Months Estimated Fair Value	428	685
Equal to or Greater than 12 Months Gross Unrealized Loss	69	74
Foreign corporate
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Less than 12 months Estimated Fair Value	1,033	1,031
Less than 12 Months Gross Unrealized Loss	73	49
Equal to or Greater than 12 Months Estimated Fair Value	117	133
Equal to or Greater than 12 Months Gross Unrealized Loss	11	9
U.S. Treasury and agency
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Less than 12 months Estimated Fair Value	1,929	4,067
Less than 12 Months Gross Unrealized Loss	12	5
Equal to or Greater than 12 Months Estimated Fair Value	0	163
Equal to or Greater than 12 Months Gross Unrealized Loss	0	2
RMBS
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Less than 12 months Estimated Fair Value	926	684
Less than 12 Months Gross Unrealized Loss	13	26
Equal to or Greater than 12 Months Estimated Fair Value	485	530
Equal to or Greater than 12 Months Gross Unrealized Loss	51	42
State and political subdivision
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Less than 12 months Estimated Fair Value	14	11
Less than 12 Months Gross Unrealized Loss	1	0
Equal to or Greater than 12 Months Estimated Fair Value	20	24
Equal to or Greater than 12 Months Gross Unrealized Loss	0	1
CMBS
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Less than 12 months Estimated Fair Value	114	124
Less than 12 Months Gross Unrealized Loss	1	1
Equal to or Greater than 12 Months Estimated Fair Value	22	78
Equal to or Greater than 12 Months Gross Unrealized Loss	0	2
ABS
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Less than 12 months Estimated Fair Value	325	334
Less than 12 Months Gross Unrealized Loss	1	2
Equal to or Greater than 12 Months Estimated Fair Value	178	231
Equal to or Greater than 12 Months Gross Unrealized Loss	4	8
Foreign government
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Less than 12 months Estimated Fair Value	14	27
Less than 12 Months Gross Unrealized Loss	1	1
Equal to or Greater than 12 Months Estimated Fair Value	3	9
Equal to or Greater than 12 Months Gross Unrealized Loss	0	1
Equity securities
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Less than 12 months Estimated Fair Value	28	39
Less than 12 Months Gross Unrealized Loss	5	4
Equal to or Greater than 12 Months Estimated Fair Value	43	44
Equal to or Greater than 12 Months Gross Unrealized Loss	7	6
Common stock
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Less than 12 months Estimated Fair Value	16	11
Less than 12 Months Gross Unrealized Loss	3	3
Equal to or Greater than 12 Months Estimated Fair Value	0	0
Equal to or Greater than 12 Months Gross Unrealized Loss	0	0
Non-redeemable preferred stock
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale
Less than 12 months Estimated Fair Value	12	28
Less than 12 Months Gross Unrealized Loss	2	1
Equal to or Greater than 12 Months Estimated Fair Value	43	44
Equal to or Greater than 12 Months Gross Unrealized Loss	$ 7	$ 6

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Investments (Related Party Investment Transactions) (Details) (Affiliated Entity, USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Affiliated Entity
Invested Assets Transferred To and From Affiliates
Estimated fair value of invested assets transferred to affiliates	$ 0	$ 354
Amortized cost of invested assets transferred to affiliates	0	333
Net investment gains (losses) recognized on transfers	0	21
Estimated fair value of invested assets transferred from affiliates	$ 525	$ 35

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Derivatives (Tables)

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location

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

		March 31, 2015						December 31, 2014
	Primary Underlying Risk Exposure	Gross Notional Amount		Estimated Fair Value				Gross Notional Amount		Estimated Fair Value
				Assets		Liabilities				Assets		Liabilities
		(In millions)
Derivatives Designated as Hedging Instruments
Fair value hedges:
Interest rate swaps	Interest rate	$	369	$	42	$	2	$	379	$	33	$	2
Foreign currency swaps	Foreign currency exchange rate	—		—		—		—		—		—
Subtotal		369		42		2		379		33		2
Cash flow hedges:
Interest rate swaps	Interest rate	335		103		—		369		81		—
Interest rate forwards	Interest rate	130		48		—		155		45		—
Foreign currency swaps	Foreign currency exchange rate	768		107		5		728		56		9
Subtotal		1,233		258		5		1,252		182		9
Total qualifying hedges		1,602		300		7		1,631		215		11
Derivatives Not Designated or Not Qualifying as Hedging Instruments
Interest rate swaps	Interest rate	25,078		2,019		761		25,919		1,709		601
Interest rate floors	Interest rate	13,504		77		63		16,404		83		69
Interest rate caps	Interest rate	7,901		6		—		7,901		11		—
Interest rate futures	Interest rate	730		2		—		325		1		—
Interest rate options	Interest rate	18,870		694		1		29,870		446		16
Foreign currency swaps	Foreign currency exchange rate	751		81		1		672		59		4
Foreign currency forwards	Foreign currency exchange rate	49		6		—		48		3		—
Credit default swaps — purchased	Credit	45		—		1		45		—		1
Credit default swaps — written	Credit	1,851		30		1		1,924		29		1
Equity futures	Equity market	3,238		21		—		3,086		34		—
Equity index options	Equity market	30,631		881		639		27,212		854		613
Equity variance swaps	Equity market	15,283		118		450		15,433		120		435
TRRs	Equity market	2,408		6		56		2,332		12		67
Total non-designated or non-qualifying derivatives		120,339		3,941		1,973		131,171		3,361		1,807
Total		$	121,941	$	4,241	$	1,980	$	132,802	$	3,576	$	1,818

Earned Income On Derivatives And Income Statement Location

The following table presents earned income on derivatives:

	Three Months   Ended   March 31,
	2015		2014
	(In millions)
Qualifying hedges:
Net investment income	$	3	$	1
Interest credited to policyholder account balances	—		—
Non-qualifying hedges:
Net derivative gains (losses)	91		80
Policyholder benefits and claims	3		(9		)
Total	$	97	$	72

Amount and location of gains (losses) recognized in income for derivatives that are not designated or qualifying as hedging instruments

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

	Net Derivative Gains (Losses)			Net Investment Income (1)			Policyholder Benefits and Claims (2)
	(In millions)
Three Months Ended March 31, 2015
Interest rate derivatives	$	401		$	—		$	11
Foreign currency exchange rate derivatives	35			—			—
Credit derivatives — written	1			—			—
Equity derivatives	(209		)	(1		)	(73		)
Total	$	228		$	(1	)	$	(62	)
Three Months Ended March 31, 2014
Interest rate derivatives	$	253		$	—		$	12
Foreign currency exchange rate derivatives	54			—			—
Credit derivatives — written	(2		)	—			—
Equity derivatives	(178		)	(3		)	(39		)
Total	$	127		$	(3	)	$	(27	)

____________

(1) Changes in estimated fair value related to economic hedges of equity method investments in joint ventures.

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

Net derivatives gains (losses) recognized on fair value derivatives and the related hedged items

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

Derivatives in Fair Value Hedging Relationships	Hedged Items in Fair Value Hedging Relationships	Net Derivative Gains (Losses) Recognized for Derivatives			Net Derivative Gains (Losses) Recognized for Hedged Items			Ineffectiveness Recognized in Net Derivative Gains (Losses)
		(In millions)
Three Months Ended March 31, 2015
Interest rate swaps:	Fixed maturity securities	$	(1	)	$	1		$	—
	Policyholder liabilities (1)	9			(9		)	—
Foreign currency swaps:	Foreign-denominated policyholder account balances (2)	—			—			—
Total		$	8		$	(8	)	$	—
Three Months Ended March 31, 2014
Interest rate swaps:	Fixed maturity securities	$	—		$	—		$	—
	Policyholder liabilities (1)	9			(9		)	—
Foreign currency swaps:	Foreign-denominated policyholder account balances	1			(1		)	—
Total		$	10		$	(10	)	$	—

____________

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

(2) Fixed rate or floating rate liabilities.

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following table presents the effects of derivatives in cash flow hedging relationships on the consolidated statements of operations and comprehensive income (loss) and the consolidated statements of stockholder’s equity:

Derivatives in Cash Flow Hedging Relationships	Amount of Gains (Losses) Deferred in AOCI on Derivatives		Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss)					Amount and Location of Gains (Losses) Recognized in Income (Loss) on Derivatives
	(Effective Portion)		(Effective Portion)					(Ineffective Portion)
			Net Derivative Gains (Losses)			Net Investment Income		Net Derivative Gains (Losses)
			(In millions)
Three Months Ended March 31, 2015
Interest rate swaps	$	29	$	1		$	—	$	—
Interest rate forwards	11		1			1		—
Foreign currency swaps	52		(4		)	—		—
Credit forwards	—		(1		)	—		—
Total	$	92	$	(3	)	$	1	$	—
Three Months Ended March 31, 2014
Interest rate swaps	$	42	$	—		$	—	$	1
Interest rate forwards	20		—			—		1
Foreign currency swaps	3		—			—		—
Credit forwards	—		—			—		—
Total	$	65	$	—		$	—	$	2

Schedule of estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps

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

	March 31, 2015					December 31, 2014
Rating Agency Designation of Referenced Credit Obligations (1)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps (2)		Weighted Average Years to Maturity (3)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps (2)		Weighted Average Years to Maturity (3)
	(In millions)					(In millions)
Aaa/Aa/A
Single name credit default swaps (corporate)	$	2	$	155	1.8	$	2	$	155	2.1
Credit default swaps referencing indices	—		84		1.7	1		134		1.3
Subtotal	2		239		1.8	3		289		1.7
Baa
Single name credit default swaps (corporate)	5		434		2.1	5		454		2.3
Credit default swaps referencing indices	19		1,143		5.1	18		1,145		5.0
Subtotal	24		1,577		4.3	23		1,599		4.2
B
Single name credit default swaps (corporate)	—		—		—	—		—		—
Credit default swaps referencing indices	3		35		4.8	2		36		5.0
Subtotal	3		35		4.8	2		36		5.0
Total	$	29	$	1,851	3.9	$	28	$	1,924	3.8

____________

(1) The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings. 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 gross notional amounts.

Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral

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

	March 31, 2015						December 31, 2014
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement (6)	Assets			Liabilities			Assets			Liabilities
	(In millions)
Gross estimated fair value of derivatives:
OTC-bilateral (1)	$	4,227		$	1,909		$	3,554		$	1,767
OTC-cleared (1)	90			95			75			73
Exchange-traded	23			—			35			—
Total gross estimated fair value of derivatives (1)	4,340			2,004			3,664			1,840
Amounts offset on the consolidated balance sheets	—			—			—			—
Estimated fair value of derivatives presented on the consolidated balance sheets (1)	4,340			2,004			3,664			1,840
Gross amounts not offset on the consolidated balance sheets:
Gross estimated fair value of derivatives: (2)
OTC-bilateral	(1,722		)	(1,722		)	(1,592		)	(1,592		)
OTC-cleared	(67		)	(67		)	(54		)	(54		)
Exchange-traded	—			—			—			—
Cash collateral: (3), (4)
OTC-bilateral	(1,660		)	—			(753		)	—
OTC-cleared	(23		)	(26		)	(21		)	(18		)
Exchange-traded	—			—			—			—
Securities collateral: (5)
OTC-bilateral	(796		)	(188		)	(1,152		)	(175		)
OTC-cleared	—			(1		)	—			—
Exchange-traded	—			—			—			—
Net amount after application of master netting agreements and collateral	$	72		$	—		$	92		$	1

____________

(1) At March 31, 2015 and December 31, 2014, derivative assets include income or expense accruals reported in accrued investment income or in other liabilities of $99 million and $88 million, respectively, and derivative liabilities include income or expense accruals reported in accrued investment income or in other liabilities of $24 million and $22 million, respectively.

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

(3) Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. In certain instances, cash collateral pledged to the Company as initial margin for OTC-bilateral derivatives is held in separate custodial accounts and is not recorded on the Company’s balance sheet because the account title is in the name of the counterparty (but segregated for the benefit of the Company). The amount of this off-balance sheet collateral was $91 million and $121 million at March 31, 2015 and December 31, 2014, respectively.

(4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At March 31, 2015 and December 31, 2014, the Company received excess cash collateral of $41 million and $33 million (including $40 million and $33 million off-balance sheet cash collateral held in separate custodial accounts), respectively, and provided excess cash collateral of $40 million and $30 million, respectively, which is not included in the table above due to the foregoing limitation.

(5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at March 31, 2015none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At March 31, 2015 and December 31, 2014, the Company received excess securities collateral with an estimated fair value of $74 million and $122 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At March 31, 2015 and December 31, 2014, the Company provided excess securities collateral with an estimated fair value of $24 million and $17 million, respectively, for its OTC-bilateral derivatives, and $40 million and $37 million, respectively, for its OTC-cleared derivatives, and $136 million and $165 million, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation.

(6) See Note 4 for information regarding the Company’s gross and net payables and receivables under repurchase agreement transactions.

Derivative Instruments, Gain (Loss) [Line Items]

Components of Net Derivatives Gains (Losses)

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

	Three Months   Ended   March 31,
	2015			2014
	(In millions)
Derivatives and hedging gains (losses) (1)	$	321		$	211
Embedded derivatives gains (losses)	(236		)	(361		)
Total net derivative gains (losses)	$	85		$	(150	)

____________

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

Schedule of Derivative Instruments

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

			Estimated Fair Value of Collateral Provided		Fair Value of Incremental  Collateral Provided Upon
	Estimated Fair Value of Derivatives in Net Liability Position (1)		Fixed Maturity Securities		One Notch Downgrade in the Company’s Financial Strength Rating		Downgrade in the Company’s Financial Strength Rating to a Level that Triggers Full Overnight Collateralization or Termination of  the Derivative Position
	(In millions)
March 31, 2015	$	187	$	212	$	—	$	—
December 31, 2014	$	175	$	192	$	—	$	—

____________

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

Embedded Derivative Financial Instruments [Member]

Derivative Instruments, Gain (Loss) [Line Items]

Components of Net Derivatives Gains (Losses)

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

	Three Months   Ended   March 31,
	2015			2014
	(In millions)
Net derivative gains (losses) (1), (2)	$	(236	)	$	(361	)
Policyholder benefits and claims	$	24		$	15

____________

(1) The valuation of direct and assumed guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $16 million and $44 million for the three months endedMarch 31, 2015 and 2014, respectively.

(2) See Note 10 for discussion of affiliated net derivative gains (losses) included in the table above.

Schedule of Derivative Instruments

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

	Balance Sheet Location	March 31, 2015			December 31, 2014
		(In millions)
Net embedded derivatives within asset host contracts:
Ceded guaranteed minimum benefits	Premiums, reinsurance and other receivables	$	242		$	217
Funds withheld on assumed reinsurance	Other invested assets	56			53
Options embedded in debt or equity securities	Investments	(58		)	(48		)
Net embedded derivatives within asset host contracts		$	240		$	222
Net embedded derivatives within liability host contracts:
Direct guaranteed minimum benefits	Policyholder account balances	$	(410	)	$	(609	)
Assumed guaranteed minimum benefits	Policyholder account balances	893			827
Funds withheld on ceded reinsurance	Other liabilities	458			382
Other	Policyholder account balances	19			17
Net embedded derivatives within liability host contracts		$	960		$	617

XML

Business, Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details)	3 Months Ended
	Mar. 31, 2015 Segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of segments	2

XML

Investments (Sales or Disposals and Impairments of Fixed Maturity and Equity Securities) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Fixed maturity securities
Components of Sales or Disposals of Fixed Maturity and Equity Securities
Proceeds	$ 7,984	$ 3,617
Gross investment gains	48	39
Gross investment losses	(23)	(23)
Total OTTI losses recognized in earnings:
Total OTTI losses recognized in earnings	(3)	(1)
Net investment gains (losses)	22	15
Equity securities
Components of Sales or Disposals of Fixed Maturity and Equity Securities
Proceeds	2	11
Gross investment gains	0	4
Gross investment losses	(1)	0
Total OTTI losses recognized in earnings:
Total OTTI losses recognized in earnings	0	0
Net investment gains (losses)	$ (1)	$ 4

XML

Investments (Changes in Fixed Maturity Securities with Noncredit OTTI Losses) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Changes in fixed maturity securities with noncredit OTTI losses in accumulated other comprehensive income (loss)
Balance, beginning of period	$ (34)	$ (45)
Noncredit OTTI losses and subsequent changes recognized	1	6
Securities sold with previous noncredit OTTI loss	2	9
Subsequent changes in estimated fair value	0	(4)
Balance, end of period	$ (31)	$ (34)

XML

Consolidated Statements of Stockholders' Equity (Unaudited) (USD $) In Millions	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss) Net Unrealized Investment Gains (Losses)
Beginning Balance at Dec. 31, 2013	$ 11,566	$ 86	$ 11,506	$ (1,006)	$ 980
Dividend paid to MetLife, Inc.	(77)			(77)
Capital contribution	3		3
Net income (loss)	(199)			(199)
Other comprehensive income (loss), net of income tax	682				682
Ending Balance at Mar. 31, 2014	11,975	86	11,509	(1,282)	1,662
Beginning Balance at Dec. 31, 2014	12,006	75	10,855	(1,350)	2,426
Capital contribution	1		1
Net income (loss)	284			284
Other comprehensive income (loss), net of income tax	294				294
Ending Balance at Mar. 31, 2015	$ 12,585	$ 75	$ 10,856	$ (1,066)	$ 2,720

XML

Related Party Transactions (Effects of Affiliated Reinsurance on Balance Sheets) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Assets:
Premiums, reinsurance and other receivables	$ 21,978	$ 21,559
Deferred policy acquisition costs and value of business acquired	4,811	4,890
Liabilities:
Future policy benefits	29,073	28,479
Policyholder account balances	35,506	35,486
Other policy-related balances	3,426	3,320
Other Liabilities	9,828	7,944
Assumed | Affiliated Entity
Assets:
Premiums, reinsurance and other receivables	59	45
Deferred policy acquisition costs and value of business acquired	171	164
Total assets	230	209
Liabilities:
Future policy benefits	593	593
Policyholder account balances	893	827
Other policy-related balances	1,712	1,689
Other Liabilities	20	16
Total liabilities	3,218	3,125
Ceded | Affiliated Entity
Assets:
Premiums, reinsurance and other receivables	12,876	12,718
Deferred policy acquisition costs and value of business acquired	(723)	(707)
Total assets	12,153	12,011
Liabilities:
Future policy benefits	0	0
Policyholder account balances	0	0
Other policy-related balances	754	763
Other Liabilities	5,307	5,109
Total liabilities	$ 6,061	$ 5,872

XML

Investments

3 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Investments

4.  Investments

Fixed Maturity and Equity Securities Available-for-Sale

Fixed Maturity and Equity Securities Available-for-Sale by Sector

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

	March 31, 2015											December 31, 2014
	Cost or Amortized Cost		Gross Unrealized							Estimated Fair Value		Cost or Amortized Cost		Gross Unrealized							Estimated Fair Value
			Gains		Temporary Losses		OTTI Losses							Gains		Temporary Losses		OTTI Losses
	(In millions)
Fixed maturity securities
U.S. corporate	$	15,716	$	1,795	$	106	$	—		$	17,405	$	15,286	$	1,635	$	119	$	—		$	16,802
U.S. Treasury and agency	12,335		1,974		12		—			14,297		14,147		1,686		7		—			15,826
RMBS	8,459		328		32		32			8,723		5,858		291		33		35			6,081
Foreign corporate	5,190		327		84		—			5,433		5,162		310		58		—			5,414
State and political subdivision	2,213		449		1		—			2,661		2,180		413		1		—			2,592
CMBS (1)	1,757		54		2		(1		)	1,810		1,637		45		4		(1		)	1,679
ABS	1,948		27		5		—			1,970		1,546		26		10		—			1,562
Foreign government	615		152		1		—			766		607		136		2		—			741
Total fixed maturity securities	$	48,233	$	5,106	$	243	$	31		$	53,065	$	46,423	$	4,542	$	234	$	34		$	50,697
Equity securities
Common stock	$	197	$	57	$	3	$	—		$	251	$	176	$	60	$	3	$	—		$	233
Non-redeemable preferred stock	225		13		9		—			229		224		9		7		—			226
Total equity securities	$	422	$	70	$	12	$	—		$	480	$	400	$	69	$	10	$	—		$	459

______________

(1) The noncredit loss component of other-than-temporary impairment (“OTTI”) losses for CMBS was in an unrealized gain position of $1 million at both March 31, 2015 and December 31, 2014, due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).”

The Company held non-income producing fixed maturity securities with an estimated fair value of $18 million and $14 million with unrealized gains (losses) of $4 million and $4 million at March 31, 2015 and December 31, 2014, respectively.

Maturities of Fixed Maturity Securities

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at March 31, 2015:

	Due in One Year or Less		Due After One Year Through Five Years		Due After Five Years Through Ten Years		Due After Ten Years		Structured Securities		Total Fixed Maturity Securities
	(In millions)
Amortized cost	$	3,081	$	10,178	$	7,520	$	15,290	$	12,164	$	48,233
Estimated fair value	$	3,108	$	10,611	$	7,973	$	18,870	$	12,503	$	53,065

Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured securities (RMBS, CMBS and ABS) are shown separately, as they are not due at a single maturity.

Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities AFS by Sector

The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position.

	March 31, 2015								December 31, 2014
	Less than 12 Months				Equal to or Greater than 12 Months				Less than 12 Months				Equal to or Greater than 12 Months
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(In millions, except number of securities)
Fixed maturity securities
U.S. corporate	$	1,094	$	37	$	428	$	69	$	1,346	$	45	$	685	$	74
U.S. Treasury and agency	1,929		12		—		—		4,067		5		163		2
RMBS	926		13		485		51		684		26		530		42
Foreign corporate	1,033		73		117		11		1,031		49		133		9
State and political subdivision	14		1		20		—		11		—		24		1
CMBS	114		1		22		—		124		1		78		2
ABS	325		1		178		4		334		2		231		8
Foreign government	14		1		3		—		27		1		9		1
Total fixed maturity securities	$	5,449	$	139	$	1,253	$	135	$	7,624	$	129	$	1,853	$	139
Equity securities
Common stock	$	16	$	3	$	—	$	—	$	11	$	3	$	—	$	—
Non-redeemable preferred stock	12		2		43		7		28		1		44		6
Total equity securities	$	28	$	5	$	43	$	7	$	39	$	4	$	44	$	6
Total number of securities in an unrealized loss position	625				292				752				333

Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities

As described more fully in Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report, the Company performs a regular evaluation of all investment classes for impairment, including fixed maturity securities, equity securities and perpetual hybrid securities, in accordance with its impairment policy, in order to evaluate whether such investments are other-than-temporarily impaired.

Current Period Evaluation

Based on the Company’s current evaluation of its AFS securities in an unrealized loss position in accordance with its impairment policy, and the Company’s current intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities, the Company concluded that these securities were not other-than-temporarily impaired at March 31, 2015. Future OTTI will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), changes in credit ratings, collateral valuation, interest rates and credit spreads. If economic fundamentals deteriorate or if there are adverse changes in the above factors, OTTI may be incurred in upcoming periods.

Gross unrealized losses on fixed maturity securities increased $6 million during the three months endedMarch 31, 2015 to $274 million. The increase in gross unrealized losses for the three months endedMarch 31, 2015 was primarily attributable to the impact of weakening foreign currencies on non-functional currency denominated fixed maturity securities.

At March 31, 2015, $48 million of the total $274 million of gross unrealized losses were from 12 fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for six months or greater.

Investment Grade Fixed Maturity Securities

Of the $48 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $29 million, or 60%, were related to gross unrealized losses on six investment grade fixed maturity securities. Unrealized losses on investment grade fixed maturity securities are principally related to widening credit spreads and, with respect to fixed-rate fixed maturity securities, rising interest rates since purchase.

Below Investment Grade Fixed Maturity Securities

Of the $48 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $19 million, or 40%, were related to gross unrealized losses on six below investment grade fixed maturity securities. Unrealized losses on below investment grade fixed maturity securities are principally related to non-agency RMBS (primarily alternative residential mortgage loans) and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainties including concerns over valuations of residential real estate supporting non-agency RMBS. Management evaluates non-agency RMBS based on actual and projected cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security.

Equity Securities

Gross unrealized losses on equity securities increased $2 million during the three months endedMarch 31, 2015 to $12 million. Of the $12 million, $5 million were from two securities with gross unrealized losses of 20% or more of cost for 12 months or greater. Of the $5 million, 40% were from securities rated A or better, and all were from financial services industry investment grade non-redeemable preferred stock securities.

Mortgage Loans

Mortgage Loans by Portfolio Segment

Mortgage loans are summarized as follows at:

	March 31, 2015					December 31, 2014
	Carrying Value			% of Total		Carrying Value			% of Total
	(In millions)					(In millions)
Mortgage loans:
Commercial	$	4,550		74.4	%	$	4,281		73.3	%
Agricultural	1,324			21.6		1,303			22.3
Subtotal	5,874			96.0		5,584			95.6
Valuation allowances	(26		)	(0.4	)	(25		)	(0.4	)
Subtotal mortgage loans, net	5,848			95.6		5,559			95.2
Commercial mortgage loans held by CSEs - fair value option ("FVO")	272			4.4		280			4.8
Total mortgage loans, net	$	6,120		100.0	%	$	5,839		100.0	%

See “— Variable Interest Entities” for discussion of consolidated securitization entities (“CSEs”).

See “— Related Party Investment Transactions” for discussion of related party mortgage loans.

Information on commercial and agricultural mortgage loans is presented in the tables below. Information on commercial mortgage loans held by CSEs - FVO is presented in Note 6. The Company elects the FVO for certain commercial mortgage loans and related long-term debt that are managed on a total return basis.

Mortgage Loans, Valuation Allowance and Impaired Loans by Portfolio Segment

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

	Evaluated Individually for Credit Losses										Evaluated Collectively for Credit Losses				Impaired Loans
	Impaired Loans with a Valuation Allowance						Impaired Loans without a Valuation Allowance
	Unpaid Principal Balance		Recorded Investment		Valuation Allowances		Unpaid Principal Balance		Recorded Investment		Recorded Investment		Valuation Allowances		Carrying Value
	(In millions)
March 31, 2015
Commercial	$	—	$	—	$	—	$	—	$	—	$	4,550	$	22	$	—
Agricultural	4		3		—		—		—		1,321		4		3
Total	$	4	$	3	$	—	$	—	$	—	$	5,871	$	26	$	3
December 31, 2014
Commercial	$	—	$	—	$	—	$	—	$	—	$	4,281	$	21	$	—
Agricultural	4		3		—		—		—		1,300		4		3
Total	$	4	$	3	$	—	$	—	$	—	$	5,581	$	25	$	3

The average recorded investment for impaired commercial and agricultural mortgage loans was $0 and $3 million, respectively, for the three months endedMarch 31, 2015; and $72 million and $4 million, respectively, for the three months endedMarch 31, 2014.

Valuation Allowance Rollforward by Portfolio Segment

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

	Three Months   Ended   March 31,
	2015						2014
	Commercial		Agricultural		Total		Commercial			Agricultural		Total
	(In millions)
Balance, beginning of period	$	21	$	4	$	25	$	31		$	4	$	35
Provision (release)	1		—		1		(1		)	—		(1		)
Balance, end of period	$	22	$	4	$	26	$	30		$	4	$	34

Credit Quality of Commercial Mortgage Loans

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

	Recorded Investment
	Debt Service Coverage Ratios								% of Total		Estimated Fair Value		% of Total
	> 1.20x		1.00x - 1.20x		< 1.00x		Total
	(In millions)										(In millions)
March 31, 2015
Loan-to-value ratios
Less than 65%	$	3,892	$	223	$	110	$	4,225	92.8	%	$	4,571	93.3	%
65% to 75%	207		24		—		231		5.1		235		4.8
76% to 80%	9		—		—		9		0.2		10		0.2
Greater than 80%	45		25		15		85		1.9		83		1.7
Total	$	4,153	$	272	$	125	$	4,550	100.0	%	$	4,899	100.0	%
December 31, 2014
Loan-to-value ratios
Less than 65%	$	3,668	$	267	$	125	$	4,060	94.8	%	$	4,431	95.1	%
65% to 75%	113		14		—		127		3.0		134		2.9
76% to 80%	9		—		—		9		0.2		10		0.2
Greater than 80%	45		26		14		85		2.0		83		1.8
Total	$	3,835	$	307	$	139	$	4,281	100.0	%	$	4,658	100.0	%

Credit Quality of Agricultural Mortgage Loans

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

	March 31, 2015				December 31, 2014
	Recorded Investment		% of Total		Recorded Investment		% of Total
	(In millions)				(In millions)
Loan-to-value ratios
Less than 65%	$	1,207	91.2	%	$	1,239	95.1	%
65% to 75%	117		8.8		64		4.9
Total	$	1,324	100.0	%	$	1,303	100.0	%

The estimated fair value of agricultural mortgage loans was $1.4 billion at both March 31, 2015 and December 31, 2014.

Past Due and Interest Accrual Status of Mortgage Loans

The Company has a high quality, well performing mortgage loan portfolio, with over 99% of all mortgage loans classified as performing at both March 31, 2015 and December 31, 2014. The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial mortgage loans — 60 days and agricultural mortgage loans — 90 days. The Company had no mortgage loans past due and no mortgage loans in non-accrual status at March 31, 2015 and December 31, 2014, respectively.

Mortgage Loans Modified in a Troubled Debt Restructuring

For a small portion of the mortgage loan portfolio, classified as troubled debt restructurings, concessions are granted related to borrowers experiencing financial difficulties. Generally, the types of concessions include: reduction of the contractual interest rate, extension of the maturity date at an interest rate lower than current market interest rates, and/or a reduction of accrued interest. The amount, timing and extent of the concession granted is considered in determining any impairment or changes in the specific valuation allowance. There were no mortgage loans modified in a troubled debt restructuring during the three months endedMarch 31, 2015 and 2014.

Cash Equivalents

The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $245 million and $681 million at March 31, 2015 and December 31, 2014, respectively.

Net Unrealized Investment Gains (Losses)

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

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

	March 31, 2015			December 31, 2014
	(In millions)
Fixed maturity securities	$	4,858		$	4,311
Fixed maturity securities with noncredit OTTI losses in AOCI	(31		)	(34		)
Total fixed maturity securities	4,827			4,277
Equity securities	77			69
Derivatives	376			282
Other	13			9
Subtotal	5,293			4,637
Amounts allocated from:
Future policy benefits	(712		)	(503		)
DAC and VOBA related to noncredit OTTI losses recognized in AOCI	(1		)	(2		)
DAC, VOBA and DSI	(390		)	(403		)
Subtotal	(1,103		)	(908		)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	11			12
Deferred income tax benefit (expense)	(1,468		)	(1,308		)
Net unrealized investment gains (losses)	$	2,733		$	2,433

The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows:

	Three Months   Ended   March 31, 2015			Year   Ended   December 31, 2014
	(In millions)
Balance, beginning of period	$	(34	)	$	(45	)
Noncredit OTTI losses and subsequent changes recognized	1			6
Securities sold with previous noncredit OTTI loss	2			9
Subsequent changes in estimated fair value	—			(4		)
Balance, end of period	$	(31	)	$	(34	)

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

	Three Months   Ended   March 31, 2015
	(In millions)
Balance, beginning of period	$	2,433
Fixed maturity securities on which noncredit OTTI losses have been recognized	3
Unrealized investment gains (losses) during the period	653
Unrealized investment gains (losses) relating to:
Future policy benefits	(209		)
DAC and VOBA related to noncredit OTTI losses recognized in AOCI	1
DAC, VOBA and DSI	13
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	(1		)
Deferred income tax benefit (expense)	(160		)
Balance, end of period	$	2,733
Change in net unrealized investment gains (losses)	$	300

Concentrations of Credit Risk

There were no investments in any counterparty that were greater than 10% of the Company’s stockholder’s equity, other than the U.S. government and its agencies, at both March 31, 2015 and December 31, 2014.

Securities Lending

Elements of the securities lending program are presented below at:

	March 31, 2015		December 31, 2014
	(In millions)
Securities on loan: (1)
Amortized cost	$	6,488	$	5,748
Estimated fair value	$	7,664	$	6,703
Cash collateral on deposit from counterparties (2)	$	7,727	$	6,781
Security collateral on deposit from counterparties (3)	$	98	$	60
Reinvestment portfolio — estimated fair value	$	7,804	$	6,846

____________

(1) Included within fixed maturity securities and short-term investments. At March 31, 2015, both amortized cost and estimated fair value also include $26 million, at estimated fair value, of securities which are not reflected in the consolidated financial statements.

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

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

Repurchase Agreement Transactions

Commencing in the first quarter of 2015, the Company began participating in short-term repurchase agreements and reverse repurchase agreements with unaffiliated financial institutions. Under these agreements, the Company lends fixed maturity securities, and contemporaneously borrows other fixed maturity securities (e.g., repurchase and reverse repurchase, respectively). The Company accounted for these transactions as collateralized borrowing and lending. The amount of fixed maturity securities lent and borrowed, at estimated fair value, was $516 million and $505 million, respectively, at March 31, 2015. Securities loaned under such transactions may be sold or re-pledged by the transferee. Securities borrowed under such transactions may be re-pledged and are not reflected in the consolidated financial statements. The amount of borrowed securities which were re-pledged was $117 million, at estimated fair value, at March 31, 2015. Net interest expense related to these transactions included in net investment income was less than $1 million for the three months ended March 31, 2015.

The Company has elected to offset amounts recognized as receivables and payables resulting from these transactions. The gross amounts of the receivables and payables related to these transactions at March 31, 2015 were both $499 million. After the effect of offsetting of $499 million, the net amount presented in the consolidated balance sheet at March 31, 2015 was a liability of less than $1 million. Amounts owed to and due from counterparties may be settled in cash or offset, in accordance with the agreements. Cash inflows and outflows for cash settlements are reported on the consolidated statements of cash flows.

See Note 5 for information regarding the estimated fair value of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral.

Invested Assets on Deposit, Held in Trust and Pledged as Collateral

Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value for all asset classes, except mortgage loans, which are presented at carrying value at:

	March 31, 2015		December 31, 2014
	(In millions)
Invested assets on deposit (regulatory deposits)	$	7,443	$	7,334
Invested assets held in trust (reinsurance agreements) (1)	957		936
Invested assets pledged as collateral (2)	3,591		3,174
Total invested assets on deposit, held in trust and pledged as collateral	$	11,991	$	11,444

____________

(1) The Company has held in trust certain investments, primarily fixed maturity securities, in connection with certain reinsurance transactions.

(2) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 5 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report) and derivative transactions (see Note 5).

See “— Securities Lending” for information regarding securities on loan.

Variable Interest Entities

The Company has invested in certain structured transactions (including CSEs) that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity.

The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. The Company generally uses a qualitative approach to determine whether it is the primary beneficiary. However, for VIEs that are investment companies or apply measurement principles consistent with those utilized by investment companies, the primary beneficiary is based on a risks and rewards model and is defined as the entity that will absorb a majority of a VIE’s expected losses, receive a majority of a VIE’s expected residual returns if no single entity absorbs a majority of expected losses, or both. The Company reassesses its involvement with VIEs on a quarterly basis. The use of different methodologies, assumptions and inputs in the determination of the primary beneficiary could have a material effect on the amounts presented within the consolidated financial statements.

Consolidated VIEs

The following table presents the total assets and total liabilities relating to VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at March 31, 2015 and December 31, 2014. Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment.

	March 31, 2015		December 31, 2014
	(In millions)
CSEs: (1)
Assets:
Mortgage loans (commercial mortgage loans)	$	272	$	280
Accrued investment income	1		2
Total assets	$	273	$	282
Liabilities:
Long-term debt	$	132	$	139
Other liabilities	1		1
Total liabilities	$	133	$	140

____________

(1) The Company consolidates entities that are structured as CMBS. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company’s exposure was limited to that of its remaining investment in these entities of $122 million and $123 million at estimated fair value at March 31, 2015 and December 31, 2014, respectively. The long-term debt bears interest primarily at fixed rates ranging from 2.25% to 5.57%, payable primarily on a monthly basis. Interest expense related to these obligations, included in other expenses, was $1 million and $18 million for the three months endedMarch 31, 2015 and 2014, respectively.

Unconsolidated VIEs

The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at:

	March 31, 2015				December 31, 2014
	Carrying Amount		Maximum Exposure to Loss (1)		Carrying Amount		Maximum Exposure to Loss (1)
	(In millions)
Fixed maturity securities AFS:
Structured securities (RMBS, CMBS and ABS) (2)	$	12,503	$	12,503	$	9,322	$	9,322
U.S. and foreign corporate	541		541		526		526
Other limited partnership interests	1,767		2,156		1,774		2,162
Real estate joint ventures	47		51		47		51
Other invested assets	41		46		37		47
Equity securities AFS:
Non-redeemable preferred stock	18		18		19		19
Total	$	14,917	$	15,315	$	11,725	$	12,127

____________

(1) The maximum exposure to loss relating to fixed maturity and equity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of less than $1 million at both March 31, 2015 and December 31, 2014. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee.

(2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity.

As described in Note 9, the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs during the three months endedMarch 31, 2015 and 2014.

Net Investment Income

The components of net investment income were as follows:

	Three Months   Ended   March 31,
	2015		2014
	(In millions)
Investment income:
Fixed maturity securities	$	487	$	521
Equity securities	4		4
Mortgage loans	72		81
Policy loans	13		14
Real estate and real estate joint ventures	22		23
Other limited partnership interests	52		98
Cash, cash equivalents and short-term investments	2		1
Operating joint venture	2		—
Other	4		(3		)
Subtotal	658		739
Less: Investment expenses	27		26
Subtotal, net	631		713
FVO CSEs — interest income — commercial mortgage loans	4		22
Net investment income	$	635	$	735

See “— Variable Interest Entities” for discussion of CSEs.

See “— Related Party Investment Transactions” for discussion of affiliated net investment income and investment expenses.

Net Investment Gains (Losses)

Components of Net Investment Gains (Losses)

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

		Three Months   Ended   March 31,
		2015			2014
	(In millions)
Total gains (losses) on fixed maturity securities:
Total OTTI losses recognized — by sector and industry:
U.S. and foreign corporate securities — by industry:
Consumer		$	—		$	(1	)
Industrial		(1		)	—
Total U.S. and foreign corporate securities		(1		)	(1		)
RMBS		(2		)	—
OTTI losses on fixed maturity securities recognized in earnings		(3		)	(1		)
Fixed maturity securities — net gains (losses) on sales and disposals		25			16
Total gains (losses) on fixed maturity securities		22			15
Total gains (losses) on equity securities:
Equity securities — net gains (losses) on sales and disposals		(1		)	4
Total gains (losses) on equity securities		(1		)	4
Mortgage loans		(1		)	9
Real estate and real estate joint ventures		23			(2		)
Other limited partnership interests		(1		)	(2		)
Other investment portfolio gains (losses)		2			(1		)
Subtotal — investment portfolio gains (losses)		44			23
FVO CSEs :
Commercial mortgage loans		(3		)	1
Long-term debt — related to commercial mortgage loans		1			1
Non-investment portfolio gains (losses) (1)		—			(531		)
Subtotal FVO CSEs and non-investment portfolio gains (losses)		(2		)	(529		)
Total net investment gains (losses)		$	42		$	(506	)

____________

(1) Non-investment portfolio gains (losses) for the three months endedMarch 31, 2014 includes a loss of $547 million related to the disposition of MetLife Assurance Limited. See Note 4 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report.

See “— Variable Interest Entities” for discussion of CSEs.

See “— Related Party Investment Transactions” for discussion of affiliated net investment gains (losses) related to transfers of invested assets to affiliates.

Gains (losses) from foreign currency transactions included within net investment gains (losses) were $1 million and $16 million for the three months ended March 31, 2015 and 2014, respectively.

Sales or Disposals and Impairments of Fixed Maturity and Equity Securities

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

	Three Months   Ended   March 31,
	2015			2014			2015			2014
	Fixed Maturity Securities						Equity Securities
	(In millions)
Proceeds	$	7,984		$	3,617		$	2		$	11
Gross investment gains	$	48		$	39		$	—		$	4
Gross investment losses	(23		)	(23		)	(1		)	—
OTTI losses	(3		)	(1		)	—			—
Net investment gains (losses)	$	22		$	15		$	(1	)	$	4

Credit Loss Rollforward

The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still held for which a portion of the OTTI loss was recognized in other comprehensive income (loss) (“OCI”): 

	Three Months   Ended   March 31,
	2015			2014
	(In millions)
Balance, beginning of period	$	57		$	59
Additions:
Additional impairments — credit loss OTTI on securities previously impaired	2			—
Reductions:
Sales (maturities, pay downs or prepayments) during the period of securities previously impaired as credit loss OTTI	(2		)	(2		)
Increases in cash flows — accretion of previous credit loss OTTI	(1		)	—
Balance, end of period	$	56		$	57

Related Party Investment Transactions

The Company transfers invested assets, primarily consisting of fixed maturity securities, to and from affiliates. Invested assets transferred to and from affiliates were as follows:

	Three Months   Ended   March 31,
	2015		2014
	(In millions)
Estimated fair value of invested assets transferred to affiliates	$	—	$	354
Amortized cost of invested assets transferred to affiliates	$	—	$	333
Net investment gains (losses) recognized on transfers	$	—	$	21
Estimated fair value of invested assets transferred from affiliates	$	525	$	35

Below is a summary of certain affiliated loans, which are more fully described in Note 8 of the Notes of the Consolidated Financial Statements included in the 2014 Annual Report.

The Company has affiliated loans outstanding to wholly-owned real estate subsidiaries of an affiliate, MLIC, which are included in mortgage loans, with a carrying value of $242 million at both March 31, 2015 and December 31, 2014. These affiliated loans are secured by interests in the real estate subsidiaries, which own operating real estate with a fair value in excess of the loans. Net investment income from these affiliated loans was $3 million and $5 million for the three months endedMarch 31, 2015 and 2014, respectively.

The Company receives investment administrative services from an affiliate. The related investment administrative service charges were $17 million and $16 million for the three months endedMarch 31, 2015 and 2014, respectively.

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Investments (Repurchase Agreement - Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Offsetting Assets [Line Items]
Payable Under Repurchase Agreements	$ 499
Fair Value of Securities Received as Collateral that Have Been Resold or Repledged	117
Receivable Under Reverse Repurchase Agreements	499
Amount Offset in Balance Sheet	499
Debt Securities [Member]
Offsetting Assets [Line Items]
Securities Loaned, Not Subject to Master Netting Arrangement	516
Securities Borrowed, Not Subject to Master Netting Arrangement	505
Maximum
Offsetting Assets [Line Items]
Repurchase Agreements, Interest Expense Amount	1
Net Amount Assets (Liabilities) From Repurchase, Reverse Repurchase Agreements	$ 1

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Fair Value (Nonrecurring Fair Value Measurements) (Narrative) (Details) (Private Equity And Debt Funds)	3 Months Ended
	Mar. 31, 2015
Minimum
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Liquidation period	2 years
Maximum
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Liquidation period	10 years

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Derivatives (Credit Derivatives) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	$ 29	$ 28
Maximum Amount of Future Payments under Credit Default Swaps	1,851	1,924
Weighted Average Years to Maturity	3 years 11 months	3 years 9 months
Aaa/Aa/A
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	2	3
Maximum Amount of Future Payments under Credit Default Swaps	239	289
Weighted Average Years to Maturity	1 year 10 months	1 year 8 months
Aaa/Aa/A | Single name credit default swaps (corporate)
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	2	2
Maximum Amount of Future Payments under Credit Default Swaps	155	155
Weighted Average Years to Maturity	1 year 10 months	2 years 1 month
Aaa/Aa/A | Credit default swaps referencing indices
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	0	1
Maximum Amount of Future Payments under Credit Default Swaps	84	134
Weighted Average Years to Maturity	1 year 8 months	1 year 3 months
Baa
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	24	23
Maximum Amount of Future Payments under Credit Default Swaps	1,577	1,599
Weighted Average Years to Maturity	4 years 4 months	4 years 2 months
Baa | Single name credit default swaps (corporate)
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	5	5
Maximum Amount of Future Payments under Credit Default Swaps	434	454
Weighted Average Years to Maturity	2 years 1 month	2 years 3 months
Baa | Credit default swaps referencing indices
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	19	18
Maximum Amount of Future Payments under Credit Default Swaps	1,143	1,145
Weighted Average Years to Maturity	5 years 1 month	5 years
B
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	3	2
Maximum Amount of Future Payments under Credit Default Swaps	35	36
Weighted Average Years to Maturity	4 years 10 months	5 years
B | Single name credit default swaps (corporate)
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	0	0
Maximum Amount of Future Payments under Credit Default Swaps	0	0
Weighted Average Years to Maturity	0 years	0 years
B | Credit default swaps referencing indices
Credit Derivatives [Line Items]
Estimated Fair Value of Credit Default Swaps	3	2
Maximum Amount of Future Payments under Credit Default Swaps	$ 35	$ 36
Weighted Average Years to Maturity	4 years 10 months	5 years

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Segment Information (Earnings) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenues
Premiums	$ 283	$ 178
Universal life and investment-type product policy fees	718	805
Net investment income	635	735
Other revenues	120	142
Net investment gains (losses)	42	(506)
Net derivative gains (losses)	85	(150)
Total revenues	1,883	1,204
Expenses
Policyholder benefits and claims	592	568
Interest credited to policyholder account balances	257	269
Capitalization of DAC	(99)	(76)
Amortization of DAC and VOBA	195	273
Interest expense on debt	18	37
Other expenses	533	443
Total expenses	1,496	1,514
Provision for income tax expense (benefit)	103	(111)
Net income (loss)	284	(199)
Operating Segments
Revenues
Premiums	283	178
Universal life and investment-type product policy fees	652	722
Net investment income	696	715
Other revenues	120	142
Net investment gains (losses)	0	0
Net derivative gains (losses)	0	0
Total revenues	1,751	1,757
Expenses
Policyholder benefits and claims	503	428
Interest credited to policyholder account balances	256	269
Capitalization of DAC	(99)	(76)
Amortization of DAC and VOBA	171	202
Interest expense on debt	17	19
Other expenses	533	438
Total expenses	1,381	1,280
Provision for income tax expense (benefit)	97	141
Operating earnings	273	336
Operating Segments | Retail
Revenues
Premiums	271	229
Universal life and investment-type product policy fees	643	669
Net investment income	504	502
Other revenues	118	141
Net investment gains (losses)	0	0
Net derivative gains (losses)	0	0
Total revenues	1,536	1,541
Expenses
Policyholder benefits and claims	385	389
Interest credited to policyholder account balances	228	238
Capitalization of DAC	(74)	(60)
Amortization of DAC and VOBA	164	193
Interest expense on debt	0	2
Other expenses	472	416
Total expenses	1,175	1,178
Provision for income tax expense (benefit)	98	103
Operating earnings	263	260
Operating Segments | Corporate Benefit Funding
Revenues
Premiums	4	(65)
Universal life and investment-type product policy fees	9	8
Net investment income	218	237
Other revenues	1	1
Net investment gains (losses)	0	0
Net derivative gains (losses)	0	0
Total revenues	232	181
Expenses
Policyholder benefits and claims	97	26
Interest credited to policyholder account balances	28	31
Capitalization of DAC	0	0
Amortization of DAC and VOBA	0	1
Interest expense on debt	0	0
Other expenses	12	7
Total expenses	137	65
Provision for income tax expense (benefit)	33	41
Operating earnings	62	75
Operating Segments | Corporate & Other
Revenues
Premiums	8	14
Universal life and investment-type product policy fees	0	45
Net investment income	(26)	(24)
Other revenues	1	0
Net investment gains (losses)	0	0
Net derivative gains (losses)	0	0
Total revenues	(17)	35
Expenses
Policyholder benefits and claims	21	13
Interest credited to policyholder account balances	0	0
Capitalization of DAC	(25)	(16)
Amortization of DAC and VOBA	7	8
Interest expense on debt	17	17
Other expenses	49	15
Total expenses	69	37
Provision for income tax expense (benefit)	(34)	(3)
Operating earnings	(52)	1
Significant Reconciling Items
Revenues
Premiums	0	0
Universal life and investment-type product policy fees	66	83
Net investment income	(61)	20
Other revenues	0	0
Net investment gains (losses)	42	(506)
Net derivative gains (losses)	85	(150)
Total revenues	132	(553)
Expenses
Policyholder benefits and claims	89	140
Interest credited to policyholder account balances	1	0
Capitalization of DAC	0	0
Amortization of DAC and VOBA	24	71
Interest expense on debt	1	18
Other expenses	0	5
Total expenses	115	234
Provision for income tax expense (benefit)	$ 6	$ (252)

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Derivatives (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	$ 4,241		$ 3,576
Derivative Liability, Fair Value, Gross Liability	1,980		1,818
Maximum Amount of Future Payments under Credit Default Swaps	1,851		1,924
Estimated Fair Value of Credit Default Swaps	29		28
Cash collateral on derivative assets	41		33
Derivative Instruments, Gain (Loss) [Line Items]
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months	18
Embedded derivatives gains (losses)	(236)	(361)
Derivative Instrument Detail [Abstract]
Net amounts reclassified into net derivatives gains (losses) on discontinued cash flow hedges		0
Hedging exposure to variability in future cash flows for specific length of time	5 years		5 years
Accumulated Other Comprehensive Income (Loss)	376		282
Cash collateral on derivative liabilities	40		30
Securities collateral received which the company is permitted to sell or repledge, amount that has been sold or repledged	0
Nonperformance Risk [Member] | Direct and assumed guaranteed minimum benefit [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Embedded derivatives gains (losses)	16	44
OTC-bilateral
Derivatives, Fair Value [Line Items]
Cash collateral on derivative assets	(1,660)		(753)
Excess securities collateral received on derivatives	74		122
Excess securities collateral provided on derivatives	24		17
Exchange Cleared [Member]
Derivatives, Fair Value [Line Items]
Cash collateral on derivative assets	(23)		(21)
Excess securities collateral provided on derivatives	40		37
Exchange Traded [Member]
Derivatives, Fair Value [Line Items]
Cash collateral on derivative assets	0		0
Excess securities collateral provided on derivatives	136		165
Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	99		88
Derivative Liability, Fair Value, Gross Liability	24		22
Off-Balance Sheet [Member]
Derivatives, Fair Value [Line Items]
Cash collateral on derivative assets	40		33
Off-Balance Sheet [Member] | OTC-bilateral
Derivatives, Fair Value [Line Items]
Cash collateral on derivative assets	$ (91)		$ (121)

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Investments (Credit Quality of Commercial Mortgage Loans) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	$ 4,550	$ 4,281
% of Total	100.00%	100.00%
Estimated Fair Value	4,899	4,658
% of Total	100.00%	100.00%
Less than 65%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	4,225	4,060
% of Total	92.80%	94.80%
Estimated Fair Value	4,571	4,431
% of Total	93.30%	95.10%
65% to 75%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	231	127
% of Total	5.10%	3.00%
Estimated Fair Value	235	134
% of Total	4.80%	2.90%
76% to 80%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	9	9
% of Total	0.20%	0.20%
Estimated Fair Value	10	10
% of Total	0.20%	0.20%
Greater than 80%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	85	85
% of Total	1.90%	2.00%
Estimated Fair Value	83	83
% of Total	1.70%	1.80%
Greater than 1.20x
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	4,153	3,835
Greater than 1.20x | Less than 65%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	3,892	3,668
Greater than 1.20x | 65% to 75%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	207	113
Greater than 1.20x | 76% to 80%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	9	9
Greater than 1.20x | Greater than 80%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	45	45
1.00x - 1.20x
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	272	307
1.00x - 1.20x | Less than 65%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	223	267
1.00x - 1.20x | 65% to 75%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	24	14
1.00x - 1.20x | 76% to 80%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	0	0
1.00x - 1.20x | Greater than 80%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	25	26
Less than 1.00x
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	125	139
Less than 1.00x | Less than 65%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	110	125
Less than 1.00x | 65% to 75%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	0	0
Less than 1.00x | 76% to 80%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	0	0
Less than 1.00x | Greater than 80%
Mortgage Loans on Real Estate [Line Items]
Commercial mortgage loans	$ 15	$ 14

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Investments (Tables)

3 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Fixed Maturity and Equity Securities Available-for-Sale

	March 31, 2015											December 31, 2014
	Cost or Amortized Cost		Gross Unrealized							Estimated Fair Value		Cost or Amortized Cost		Gross Unrealized							Estimated Fair Value
			Gains		Temporary Losses		OTTI Losses							Gains		Temporary Losses		OTTI Losses
	(In millions)
Fixed maturity securities
U.S. corporate	$	15,716	$	1,795	$	106	$	—		$	17,405	$	15,286	$	1,635	$	119	$	—		$	16,802
U.S. Treasury and agency	12,335		1,974		12		—			14,297		14,147		1,686		7		—			15,826
RMBS	8,459		328		32		32			8,723		5,858		291		33		35			6,081
Foreign corporate	5,190		327		84		—			5,433		5,162		310		58		—			5,414
State and political subdivision	2,213		449		1		—			2,661		2,180		413		1		—			2,592
CMBS (1)	1,757		54		2		(1		)	1,810		1,637		45		4		(1		)	1,679
ABS	1,948		27		5		—			1,970		1,546		26		10		—			1,562
Foreign government	615		152		1		—			766		607		136		2		—			741
Total fixed maturity securities	$	48,233	$	5,106	$	243	$	31		$	53,065	$	46,423	$	4,542	$	234	$	34		$	50,697
Equity securities
Common stock	$	197	$	57	$	3	$	—		$	251	$	176	$	60	$	3	$	—		$	233
Non-redeemable preferred stock	225		13		9		—			229		224		9		7		—			226
Total equity securities	$	422	$	70	$	12	$	—		$	480	$	400	$	69	$	10	$	—		$	459

______________

(1) The noncredit loss component of other-than-temporary impairment (“OTTI”) losses for CMBS was in an unrealized gain position of $1 million at both March 31, 2015 and December 31, 2014, due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).”

Available-for-sale fixed maturity securities by contractual maturity date

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at March 31, 2015:

	Due in One Year or Less		Due After One Year Through Five Years		Due After Five Years Through Ten Years		Due After Ten Years		Structured Securities		Total Fixed Maturity Securities
	(In millions)
Amortized cost	$	3,081	$	10,178	$	7,520	$	15,290	$	12,164	$	48,233
Estimated fair value	$	3,108	$	10,611	$	7,973	$	18,870	$	12,503	$	53,065

Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale

The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position.

	March 31, 2015								December 31, 2014
	Less than 12 Months				Equal to or Greater than 12 Months				Less than 12 Months				Equal to or Greater than 12 Months
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(In millions, except number of securities)
Fixed maturity securities
U.S. corporate	$	1,094	$	37	$	428	$	69	$	1,346	$	45	$	685	$	74
U.S. Treasury and agency	1,929		12		—		—		4,067		5		163		2
RMBS	926		13		485		51		684		26		530		42
Foreign corporate	1,033		73		117		11		1,031		49		133		9
State and political subdivision	14		1		20		—		11		—		24		1
CMBS	114		1		22		—		124		1		78		2
ABS	325		1		178		4		334		2		231		8
Foreign government	14		1		3		—		27		1		9		1
Total fixed maturity securities	$	5,449	$	139	$	1,253	$	135	$	7,624	$	129	$	1,853	$	139
Equity securities
Common stock	$	16	$	3	$	—	$	—	$	11	$	3	$	—	$	—
Non-redeemable preferred stock	12		2		43		7		28		1		44		6
Total equity securities	$	28	$	5	$	43	$	7	$	39	$	4	$	44	$	6
Total number of securities in an unrealized loss position	625				292				752				333

Disclosure of Mortgage Loans Net of Valuation Allowance

Mortgage loans are summarized as follows at:

	March 31, 2015					December 31, 2014
	Carrying Value			% of Total		Carrying Value			% of Total
	(In millions)					(In millions)
Mortgage loans:
Commercial	$	4,550		74.4	%	$	4,281		73.3	%
Agricultural	1,324			21.6		1,303			22.3
Subtotal	5,874			96.0		5,584			95.6
Valuation allowances	(26		)	(0.4	)	(25		)	(0.4	)
Subtotal mortgage loans, net	5,848			95.6		5,559			95.2
Commercial mortgage loans held by CSEs - fair value option ("FVO")	272			4.4		280			4.8
Total mortgage loans, net	$	6,120		100.0	%	$	5,839		100.0	%

Disclosure of mortgage loans held-for-investment and valuation allowances by method of evaluation for credit loss

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

	Evaluated Individually for Credit Losses										Evaluated Collectively for Credit Losses				Impaired Loans
	Impaired Loans with a Valuation Allowance						Impaired Loans without a Valuation Allowance
	Unpaid Principal Balance		Recorded Investment		Valuation Allowances		Unpaid Principal Balance		Recorded Investment		Recorded Investment		Valuation Allowances		Carrying Value
	(In millions)
March 31, 2015
Commercial	$	—	$	—	$	—	$	—	$	—	$	4,550	$	22	$	—
Agricultural	4		3		—		—		—		1,321		4		3
Total	$	4	$	3	$	—	$	—	$	—	$	5,871	$	26	$	3
December 31, 2014
Commercial	$	—	$	—	$	—	$	—	$	—	$	4,281	$	21	$	—
Agricultural	4		3		—		—		—		1,300		4		3
Total	$	4	$	3	$	—	$	—	$	—	$	5,581	$	25	$	3

Allowance for Credit Losses on Financing Receivables

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

	Three Months   Ended   March 31,
	2015						2014
	Commercial		Agricultural		Total		Commercial			Agricultural		Total
	(In millions)
Balance, beginning of period	$	21	$	4	$	25	$	31		$	4	$	35
Provision (release)	1		—		1		(1		)	—		(1		)
Balance, end of period	$	22	$	4	$	26	$	30		$	4	$	34

Components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss)

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

	March 31, 2015			December 31, 2014
	(In millions)
Fixed maturity securities	$	4,858		$	4,311
Fixed maturity securities with noncredit OTTI losses in AOCI	(31		)	(34		)
Total fixed maturity securities	4,827			4,277
Equity securities	77			69
Derivatives	376			282
Other	13			9
Subtotal	5,293			4,637
Amounts allocated from:
Future policy benefits	(712		)	(503		)
DAC and VOBA related to noncredit OTTI losses recognized in AOCI	(1		)	(2		)
DAC, VOBA and DSI	(390		)	(403		)
Subtotal	(1,103		)	(908		)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	11			12
Deferred income tax benefit (expense)	(1,468		)	(1,308		)
Net unrealized investment gains (losses)	$	2,733		$	2,433

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

	Three Months   Ended   March 31, 2015
	(In millions)
Balance, beginning of period	$	2,433
Fixed maturity securities on which noncredit OTTI losses have been recognized	3
Unrealized investment gains (losses) during the period	653
Unrealized investment gains (losses) relating to:
Future policy benefits	(209		)
DAC and VOBA related to noncredit OTTI losses recognized in AOCI	1
DAC, VOBA and DSI	13
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	(1		)
Deferred income tax benefit (expense)	(160		)
Balance, end of period	$	2,733
Change in net unrealized investment gains (losses)	$	300

Other than temporary impairment losses recognized in earnings

The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows:

	Three Months   Ended   March 31, 2015			Year   Ended   December 31, 2014
	(In millions)
Balance, beginning of period	$	(34	)	$	(45	)
Noncredit OTTI losses and subsequent changes recognized	1			6
Securities sold with previous noncredit OTTI loss	2			9
Subsequent changes in estimated fair value	—			(4		)
Balance, end of period	$	(31	)	$	(34	)

Securities Lending

Elements of the securities lending program are presented below at:

	March 31, 2015		December 31, 2014
	(In millions)
Securities on loan: (1)
Amortized cost	$	6,488	$	5,748
Estimated fair value	$	7,664	$	6,703
Cash collateral on deposit from counterparties (2)	$	7,727	$	6,781
Security collateral on deposit from counterparties (3)	$	98	$	60
Reinvestment portfolio — estimated fair value	$	7,804	$	6,846

____________

(1) Included within fixed maturity securities and short-term investments. At March 31, 2015, both amortized cost and estimated fair value also include $26 million, at estimated fair value, of securities which are not reflected in the consolidated financial statements.

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

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

Invested Assets on Deposit, Held in Trust and Pledged as Collateral

Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value for all asset classes, except mortgage loans, which are presented at carrying value at:

	March 31, 2015		December 31, 2014
	(In millions)
Invested assets on deposit (regulatory deposits)	$	7,443	$	7,334
Invested assets held in trust (reinsurance agreements) (1)	957		936
Invested assets pledged as collateral (2)	3,591		3,174
Total invested assets on deposit, held in trust and pledged as collateral	$	11,991	$	11,444

____________

(1) The Company has held in trust certain investments, primarily fixed maturity securities, in connection with certain reinsurance transactions.

(2) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 5 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report) and derivative transactions (see Note 5).

The Components of Net Investment Income

The components of net investment income were as follows:

	Three Months   Ended   March 31,
	2015		2014
	(In millions)
Investment income:
Fixed maturity securities	$	487	$	521
Equity securities	4		4
Mortgage loans	72		81
Policy loans	13		14
Real estate and real estate joint ventures	22		23
Other limited partnership interests	52		98
Cash, cash equivalents and short-term investments	2		1
Operating joint venture	2		—
Other	4		(3		)
Subtotal	658		739
Less: Investment expenses	27		26
Subtotal, net	631		713
FVO CSEs — interest income — commercial mortgage loans	4		22
Net investment income	$	635	$	735

The components of net investment gains (losses)

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

		Three Months   Ended   March 31,
		2015			2014
	(In millions)
Total gains (losses) on fixed maturity securities:
Total OTTI losses recognized — by sector and industry:
U.S. and foreign corporate securities — by industry:
Consumer		$	—		$	(1	)
Industrial		(1		)	—
Total U.S. and foreign corporate securities		(1		)	(1		)
RMBS		(2		)	—
OTTI losses on fixed maturity securities recognized in earnings		(3		)	(1		)
Fixed maturity securities — net gains (losses) on sales and disposals		25			16
Total gains (losses) on fixed maturity securities		22			15
Total gains (losses) on equity securities:
Equity securities — net gains (losses) on sales and disposals		(1		)	4
Total gains (losses) on equity securities		(1		)	4
Mortgage loans		(1		)	9
Real estate and real estate joint ventures		23			(2		)
Other limited partnership interests		(1		)	(2		)
Other investment portfolio gains (losses)		2			(1		)
Subtotal — investment portfolio gains (losses)		44			23
FVO CSEs :
Commercial mortgage loans		(3		)	1
Long-term debt — related to commercial mortgage loans		1			1
Non-investment portfolio gains (losses) (1)		—			(531		)
Subtotal FVO CSEs and non-investment portfolio gains (losses)		(2		)	(529		)
Total net investment gains (losses)		$	42		$	(506	)

____________

(1) Non-investment portfolio gains (losses) for the three months endedMarch 31, 2014 includes a loss of $547 million related to the disposition of MetLife Assurance Limited. See Note 4 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report.

Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains and losses

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

	Three Months   Ended   March 31,
	2015			2014			2015			2014
	Fixed Maturity Securities						Equity Securities
	(In millions)
Proceeds	$	7,984		$	3,617		$	2		$	11
Gross investment gains	$	48		$	39		$	—		$	4
Gross investment losses	(23		)	(23		)	(1		)	—
OTTI losses	(3		)	(1		)	—			—
Net investment gains (losses)	$	22		$	15		$	(1	)	$	4

Rollforward of the Cumulative Credit Loss Component of OTTI income (loss)

The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still held for which a portion of the OTTI loss was recognized in other comprehensive income (loss) (“OCI”): 

	Three Months   Ended   March 31,
	2015			2014
	(In millions)
Balance, beginning of period	$	57		$	59
Additions:
Additional impairments — credit loss OTTI on securities previously impaired	2			—
Reductions:
Sales (maturities, pay downs or prepayments) during the period of securities previously impaired as credit loss OTTI	(2		)	(2		)
Increases in cash flows — accretion of previous credit loss OTTI	(1		)	—
Balance, end of period	$	56		$	57

Schedule of Invested Assets Transferred To and From Affiliates

The Company transfers invested assets, primarily consisting of fixed maturity securities, to and from affiliates. Invested assets transferred to and from affiliates were as follows:

	Three Months   Ended   March 31,
	2015		2014
	(In millions)
Estimated fair value of invested assets transferred to affiliates	$	—	$	354
Amortized cost of invested assets transferred to affiliates	$	—	$	333
Net investment gains (losses) recognized on transfers	$	—	$	21
Estimated fair value of invested assets transferred from affiliates	$	525	$	35

Variable Interest Entity, Primary Beneficiary [Member]

Variable Interest Entity [Line Items]

Variable Interest Entities

The following table presents the total assets and total liabilities relating to VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at March 31, 2015 and December 31, 2014. Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment.

	March 31, 2015		December 31, 2014
	(In millions)
CSEs: (1)
Assets:
Mortgage loans (commercial mortgage loans)	$	272	$	280
Accrued investment income	1		2
Total assets	$	273	$	282
Liabilities:
Long-term debt	$	132	$	139
Other liabilities	1		1
Total liabilities	$	133	$	140

____________

(1) The Company consolidates entities that are structured as CMBS. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company’s exposure was limited to that of its remaining investment in these entities of $122 million and $123 million at estimated fair value at March 31, 2015 and December 31, 2014, respectively. The long-term debt bears interest primarily at fixed rates ranging from 2.25% to 5.57%, payable primarily on a monthly basis. Interest expense related to these obligations, included in other expenses, was $1 million and $18 million for the three months endedMarch 31, 2015 and 2014, respectively.

Variable Interest Entity, Not Primary Beneficiary [Member]

Variable Interest Entity [Line Items]

Variable Interest Entities

The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at:

	March 31, 2015				December 31, 2014
	Carrying Amount		Maximum Exposure to Loss (1)		Carrying Amount		Maximum Exposure to Loss (1)
	(In millions)
Fixed maturity securities AFS:
Structured securities (RMBS, CMBS and ABS) (2)	$	12,503	$	12,503	$	9,322	$	9,322
U.S. and foreign corporate	541		541		526		526
Other limited partnership interests	1,767		2,156		1,774		2,162
Real estate joint ventures	47		51		47		51
Other invested assets	41		46		37		47
Equity securities AFS:
Non-redeemable preferred stock	18		18		19		19
Total	$	14,917	$	15,315	$	11,725	$	12,127

____________

(1) The maximum exposure to loss relating to fixed maturity and equity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of less than $1 million at both March 31, 2015 and December 31, 2014. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee.

(2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity.

Commercial

Mortgage Loans on Real Estate [Line Items]

Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories

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

	Recorded Investment
	Debt Service Coverage Ratios								% of Total		Estimated Fair Value		% of Total
	> 1.20x		1.00x - 1.20x		< 1.00x		Total
	(In millions)										(In millions)
March 31, 2015
Loan-to-value ratios
Less than 65%	$	3,892	$	223	$	110	$	4,225	92.8	%	$	4,571	93.3	%
65% to 75%	207		24		—		231		5.1		235		4.8
76% to 80%	9		—		—		9		0.2		10		0.2
Greater than 80%	45		25		15		85		1.9		83		1.7
Total	$	4,153	$	272	$	125	$	4,550	100.0	%	$	4,899	100.0	%
December 31, 2014
Loan-to-value ratios
Less than 65%	$	3,668	$	267	$	125	$	4,060	94.8	%	$	4,431	95.1	%
65% to 75%	113		14		—		127		3.0		134		2.9
76% to 80%	9		—		—		9		0.2		10		0.2
Greater than 80%	45		26		14		85		2.0		83		1.8
Total	$	3,835	$	307	$	139	$	4,281	100.0	%	$	4,658	100.0	%

Agricultural

Mortgage Loans on Real Estate [Line Items]

Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories

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

	March 31, 2015				December 31, 2014
	Recorded Investment		% of Total		Recorded Investment		% of Total
	(In millions)				(In millions)
Loan-to-value ratios
Less than 65%	$	1,207	91.2	%	$	1,239	95.1	%
65% to 75%	117		8.8		64		4.9
Total	$	1,324	100.0	%	$	1,303	100.0	%