Document_and_Entity_Informatio
Document and Entity Information (USD $) | 3 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Mar. 31, 2015 | Apr. 30, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | METLIFE INC | ||
Entity Central Index Key | 1099219 | ||
Document Type | 10-Q | ||
Document Period End Date | 31-Mar-15 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | Q1 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $62.60 | ||
Entity Common Stock, Shares Outstanding | 1,115,818,705 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Investments: | ||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $332,909 and $334,780, respectively; includes $4,326 and $4,266, respectively, relating to variable interest entities) | $366,275 | $365,425 |
Equity securities available-for-sale, at estimated fair value (cost: $3,133 and $3,076, respectively) | 3,713 | 3,631 |
Fair value option and trading securities, at estimated fair value (includes $714 and $704, respectively, of actively traded securities; and $56 and $60, respectively, relating to variable interest entities) | 16,471 | 16,689 |
Mortgage loans (net of valuation allowances of $315 and $305, respectively; includes $272 and $280, respectively, at estimated fair value, relating to variable interest entities; includes $329 and $308, respectively, under the fair value option) | 62,409 | 60,118 |
Policy loans (includes $3 and $3, respectively, relating to variable interest entities) | 11,606 | 11,618 |
Real estate and real estate joint ventures (includes $8 and $8, respectively, relating to variable interest entities, includes $56 and $172, respectively, of real estate held-for-sale) | 10,310 | 10,525 |
Other limited partnership interests (includes $34 and $34, respectively, relating to variable interest entities) | 8,074 | 8,085 |
Short-term investments, principally at estimated fair value (includes $24 and $20, respectively, relating to variable interest entities) | 14,130 | 8,621 |
Other invested assets, principally at estimated fair value (includes $70 and $56, respectively, relating to variable interest entities) | 23,763 | 21,283 |
Total investments | 516,751 | 505,995 |
Cash and cash equivalents, principally at estimated fair value (includes $54 and $57, respectively, relating to variable interest entities) | 8,127 | 10,808 |
Accrued investment income (includes $26 and $21, respectively, relating to variable interest entities) | 4,298 | 4,120 |
Premiums, reinsurance and other receivables (includes $29 and $21, respectively, relating to variable interest entities) | 24,190 | 22,244 |
Deferred policy acquisition costs and value of business acquired (includes $246 and $235, respectively, relating to variable interest entities) | 24,003 | 24,442 |
Goodwill | 9,717 | 9,872 |
Other assets (includes $136 and $134, respectively, relating to variable interest entities) | 7,980 | 7,862 |
Separate account assets (includes $1,167 and $1,128, respectively, relating to variable interest entities) | 324,724 | 316,994 |
Total assets | 919,790 | 902,337 |
Liabilities | ||
Future policy benefits (includes $636 and $579, respectively, relating to variable interest entities) | 191,217 | 189,586 |
Policyholder account balances (includes $34 and $33, respectively, relating to variable interest entities) | 206,591 | 209,294 |
Other policy-related balances (includes $220 and $198, respectively, relating to variable interest entities) | 14,586 | 14,422 |
Policyholder dividends payable | 677 | 684 |
Policyholder dividend obligation | 3,483 | 3,155 |
Payables for collateral under securities loaned and other transactions | 37,312 | 35,326 |
Short-term debt | 100 | 100 |
Long-term debt (includes $143 and $151, respectively, at estimated fair value, relating to variable interest entities) | 17,714 | 16,286 |
Collateral financing arrangements | 4,196 | 4,196 |
Junior subordinated debt securities | 3,193 | 3,193 |
Current income tax payable | 243 | 184 |
Deferred income tax liability | 13,305 | 11,821 |
Other liabilities (includes $100 and $80, respectively, relating to variable interest entities) | 28,040 | 24,437 |
Separate account liabilities (includes $1,167 and $1,128, respectively, relating to variable interest entities) | 324,724 | 316,994 |
Total liabilities | 845,381 | 829,678 |
Contingencies, Commitments and Guarantees (Note 13) | ||
Redeemable noncontrolling interests in partially-owned consolidated subsidiaries | 95 | 99 |
MetLife, Inc.’s stockholders’ equity: | ||
Preferred stock, par value $0.01 per share; 200,000,000 shares authorized: 84,000,000 shares issued and outstanding; $2,100 aggregate liquidation preference | 1 | 1 |
Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,156,311,419 and 1,153,998,144 shares issued, respectively; 1,114,347,885 and 1,131,927,894 shares outstanding, respectively | 12 | 12 |
Additional paid-in capital | 30,632 | 30,543 |
Retained earnings | 33,754 | 32,020 |
Treasury stock, at cost; 41,963,534 and 22,070,250 shares, respectively | -2,158 | -1,172 |
Accumulated other comprehensive income (loss) | 11,529 | 10,649 |
Total MetLife, Inc.’s stockholders’ equity | 73,770 | 72,053 |
Noncontrolling interests | 544 | 507 |
Total equity | 74,314 | 72,560 |
Total liabilities and equity | $919,790 | $902,337 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Assets | ||
Amortized cost of fixed maturity securities available-for-sale | $332,909 | $334,780 |
Fixed maturity securities relating to variable interest entities | 366,275 | 365,425 |
Cost of equity securities available-for-sale | 3,133 | 3,076 |
Actively traded securities | 714 | 704 |
Fair value option and trading securities relating to variable interest entities | 16,471 | 16,689 |
Mortgage loans valuation allowances | 315 | 305 |
Mortgage Loans on Real Estate | 62,409 | 60,118 |
Policy loans | 11,606 | 11,618 |
Real estate and real estate joint ventures relating to variable interest entities | 10,310 | 10,525 |
Real estate held-for-sale | 56 | 172 |
Other limited partnership interests relating to variable interest entities | 8,074 | 8,085 |
Short-term investments | 14,130 | 8,621 |
Other invested assets relating to variable interest entities | 23,763 | 21,283 |
Cash and cash equivalents relating to variable interest entities | 8,127 | 10,808 |
Accrued investment income relating to variable interest entities | 4,298 | 4,120 |
Premiums, reinsurance and other receivables relating to variable interest entities | 24,190 | 22,244 |
Deferred policy acquisition costs and value of business acquired relating to variable interest entities | 24,003 | 24,442 |
Other assets relating to variable interest entities | 7,980 | 7,862 |
Separate account assets | 324,724 | 316,994 |
Liabilities | ||
Future policy benefits relating to variable interest entities | 191,217 | 189,586 |
Policyholder account balances | 206,591 | 209,294 |
Other policy-related balances relating to variable interest entities | 14,586 | 14,422 |
Long-term debt, at estimated fair value, relating to variable interest entities | 17,714 | 16,286 |
Other liabilities relating to variable interest entities | 28,040 | 24,437 |
Separate account liabilities | 324,724 | 316,994 |
MetLife, Inc.’s stockholders’ equity: | ||
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 |
Preferred stock, shares issued | 84,000,000 | 84,000,000 |
Preferred stock, shares outstanding | 84,000,000 | 84,000,000 |
Preferred stock, aggregate liquidation preference | $2,100 | $2,100 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 3,000,000,000 | 3,000,000,000 |
Common stock, shares issued | 1,156,311,419 | 1,153,998,144 |
Common stock, shares outstanding | 1,114,347,885 | 1,131,927,894 |
Treasury stock, shares | 41,963,534 | 22,070,250 |
Residential mortgage loans — FVO | ||
Assets | ||
Mortgage Loans on Real Estate | 329 | 308 |
Variable interest entities | ||
Assets | ||
Fixed maturity securities relating to variable interest entities | 4,326 | 4,266 |
Fair value option and trading securities relating to variable interest entities | 56 | 60 |
Mortgage Loans on Real Estate | 272 | 280 |
Policy loans | 3 | 3 |
Real estate and real estate joint ventures relating to variable interest entities | 8 | 8 |
Other limited partnership interests relating to variable interest entities | 34 | 34 |
Short-term investments | 24 | 20 |
Other invested assets relating to variable interest entities | 70 | 56 |
Cash and cash equivalents relating to variable interest entities | 54 | 57 |
Accrued investment income relating to variable interest entities | 26 | 21 |
Premiums, reinsurance and other receivables relating to variable interest entities | 29 | 21 |
Deferred policy acquisition costs and value of business acquired relating to variable interest entities | 246 | 235 |
Other assets relating to variable interest entities | 136 | 134 |
Separate account assets | 1,167 | 1,128 |
Liabilities | ||
Future policy benefits relating to variable interest entities | 636 | 579 |
Policyholder account balances | 34 | 33 |
Other policy-related balances relating to variable interest entities | 220 | 198 |
Long-term debt, at estimated fair value, relating to variable interest entities | 143 | 151 |
Other liabilities relating to variable interest entities | 100 | 80 |
Separate account liabilities | $1,167 | $1,128 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues | ||
Premiums | $9,253 | $9,219 |
Universal life and investment-type product policy fees | 2,394 | 2,421 |
Net investment income | 5,461 | 5,035 |
Other revenues | 495 | 478 |
Net investment gains (losses): | ||
Other-than-temporary impairments on fixed maturity securities | -8 | -14 |
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss) | -10 | 4 |
Other net investment gains (losses) | 304 | -401 |
Total net investment gains (losses) | 286 | -411 |
Net derivative gains (losses) | 821 | 343 |
Total revenues | 18,710 | 17,085 |
Expenses | ||
Policyholder benefits and claims | 9,257 | 9,324 |
Interest credited to policyholder account balances | 1,995 | 1,469 |
Policyholder dividends | 339 | 303 |
Other expenses | 4,060 | 4,163 |
Total expenses | 15,651 | 15,259 |
Income (loss) from continuing operations before provision for income tax | 3,059 | 1,826 |
Provision for income tax expense (benefit) | 896 | 484 |
Income (loss) from continuing operations, net of income tax | 2,163 | 1,342 |
Income (loss) from discontinued operations, net of income tax | 0 | -3 |
Net income (loss) | 2,163 | 1,339 |
Less: Net income (loss) attributable to noncontrolling interests | 5 | 11 |
Net income (loss) attributable to MetLife, Inc. | 2,158 | 1,328 |
Less: Preferred stock dividends | 30 | 30 |
Net income (loss) available to MetLife, Inc.’s common shareholders | 2,128 | 1,298 |
Comprehensive income (loss) | 3,101 | 4,482 |
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of income tax | 63 | 43 |
Comprehensive income (loss) attributable to MetLife, Inc. | $3,038 | $4,439 |
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders per common share: | ||
Basic | $1.89 | $1.15 |
Diluted | $1.87 | $1.14 |
Net income (loss) available to MetLife, Inc.’s common shareholders per common share: | ||
Basic | $1.89 | $1.15 |
Diluted | $1.87 | $1.14 |
Cash dividends declared per common share | $0.35 | $0.28 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (Unaudited) (USD $) | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock at Cost | Accumulated Other Comprehensive Income (Loss) Net Unrealized Investment Gains (Losses) | Total MetLife, Inc.’s Stockholders’ Equity | Noncontrolling Interests | |
In Millions | ||||||||||
Beginning Balance at Dec. 31, 2013 | $62,096 | $1 | $11 | $29,277 | $27,332 | ($172) | $5,104 | $61,553 | $543 | |
Stock-based compensation | 107 | 107 | 107 | |||||||
Dividends on preferred stock | -30 | -30 | -30 | |||||||
Dividends on common stock | -311 | -311 | -311 | |||||||
Change in equity of noncontrolling interests | -12 | 0 | -12 | |||||||
Net income (loss) | 1,339 | 1,328 | 1,328 | 11 | [1] | |||||
Other comprehensive income (loss), net of income tax | 3,143 | 3,111 | 3,111 | 32 | ||||||
Ending Balance at Mar. 31, 2014 | 66,332 | 1 | 11 | 29,384 | 28,319 | -172 | 8,215 | 65,758 | 574 | |
Beginning Balance at Dec. 31, 2014 | 72,560 | 1 | 12 | 30,543 | 32,020 | -1,172 | 10,649 | 72,053 | 507 | |
Treasury stock acquired in connection with share repurchases | -986 | -986 | -986 | |||||||
Stock-based compensation | 89 | 89 | 89 | |||||||
Dividends on preferred stock | -30 | -30 | -30 | |||||||
Dividends on common stock | -394 | -394 | -394 | |||||||
Change in equity of noncontrolling interests | -26 | 0 | -26 | |||||||
Net income (loss) | 2,163 | 2,158 | 2,158 | 5 | [1] | |||||
Other comprehensive income (loss), net of income tax | 938 | 880 | 880 | 58 | ||||||
Ending Balance at Mar. 31, 2015 | $74,314 | $1 | $12 | $30,632 | $33,754 | ($2,158) | $11,529 | $73,770 | $544 | |
[1] | Three Months Ended March 31, 20152014 gains of redeemable noncontrolling interests tagged in document1 |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity (Unaudited) (Parenthetical) (Maximum, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Maximum | ||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | $1 | $1 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Cash Flows [Abstract] | ||
Net cash provided by (used in) operating activities | $2,686 | $2,484 |
Cash flows from investing activities | ||
Sales, maturities and repayments of fixed maturity securities | 35,647 | 27,904 |
Sales, maturities and repayments of equity securities | 58 | 72 |
Sales, maturities and repayments of mortgage loans | 2,719 | 2,973 |
Sales, maturities and repayments of real estate and real estate joint ventures | 280 | 260 |
Sales, maturities and repayments of other limited partnership interests | 279 | 220 |
Purchases of fixed maturity securities | -33,305 | -24,954 |
Purchases of equity securities | -107 | -209 |
Purchases of mortgage loans | -5,559 | -2,483 |
Purchases of real estate and real estate joint ventures | -140 | -578 |
Purchases of other limited partnership interests | -275 | -485 |
Cash received in connection with freestanding derivatives | 947 | 395 |
Cash paid in connection with freestanding derivatives | -1,494 | -1,045 |
Cash received under repurchase agreements (Note 5) | 199 | 0 |
Cash paid under reverse repurchase agreements (Note 5) | -199 | 0 |
Net change in policy loans | -7 | -2 |
Net change in short-term investments | -5,690 | 47 |
Net change in other invested assets | -167 | 115 |
Other, net | -86 | -66 |
Net cash provided by (used in) investing activities | -6,900 | 2,164 |
Cash flows from financing activities | ||
Policyholder account balances: Deposits | 22,463 | 19,004 |
Policyholder account balances: Withdrawals | -22,736 | -22,628 |
Net change in payables for collateral under securities loaned and other transactions | 1,985 | 2,058 |
Net change in short-term debt | 0 | -75 |
Long-term debt issued | 1,492 | 0 |
Long-term debt repaid | -7 | -1,460 |
Treasury stock acquired in connection with share repurchases | -986 | 0 |
Dividends on preferred stock | -30 | -30 |
Dividends on common stock | -394 | -311 |
Other, net | -64 | -217 |
Net cash provided by (used in) financing activities | 1,723 | -3,659 |
Effect of change in foreign currency exchange rates on cash and cash equivalents balances | -190 | -1 |
Change in cash and cash equivalents | -2,681 | 988 |
Cash and cash equivalents, beginning of period | 10,808 | 7,585 |
Cash and cash equivalents, end of period | 8,127 | 8,573 |
Supplemental disclosures of cash flow information: | ||
Net cash paid for Interest | 214 | 245 |
Net cash paid (received) for Income tax | 147 | 97 |
Non-cash transactions: | ||
Reduction of redeemable noncontrolling interests | 0 | 774 |
Reduction of long-term debt | 0 | 413 |
Reduction of real estate and real estate joint ventures | $0 | $1,132 |
Business_Basis_of_Presentation
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” and the “Company” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its subsidiaries and affiliates. MetLife is a global provider of life insurance, annuities, employee benefits and asset management. MetLife is organized into six segments: Retail; Group, Voluntary & Worksite Benefits; Corporate Benefit Funding; and Latin America (collectively, the “Americas”); Asia; and Europe, the Middle East and Africa (“EMEA”). | |
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, Inc. and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated. | |
Certain international subsidiaries have a fiscal year cutoff of November 30th. Accordingly, the Company’s interim condensed consolidated financial statements reflect the assets and liabilities of such subsidiaries as of February 28, 2015 and November 30, 2014 and the operating results of such subsidiaries for the three months ended February 28, 2015 and 2014. | |
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. | |
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 MetLife, Inc.’s Annual Report on Form 10‑K for the year ended December 31, 2014 (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. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Segment Information | 2. Segment Information | ||||||||||||||||||||||||||||||||||||||||||||
MetLife is organized into six segments, reflecting three broad geographic regions: Retail; Group, Voluntary & Worksite Benefits; Corporate Benefit Funding; and Latin America (collectively, the “Americas”); Asia; and EMEA. 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 (i) measurement of segment operating earnings, which included revising the Company’s capital allocation methodology, and (ii) the realignment of consumer direct business. These changes were applied retrospectively and did not have an impact on total consolidated operating earnings or net income. | |||||||||||||||||||||||||||||||||||||||||||||
Americas | |||||||||||||||||||||||||||||||||||||||||||||
The Americas consists of the following segments: | |||||||||||||||||||||||||||||||||||||||||||||
Retail | |||||||||||||||||||||||||||||||||||||||||||||
The Retail segment offers a broad range of protection products and services and a variety of annuities to individuals and employees of corporations and other institutions, and is organized into two businesses: Life & Other and Annuities. Life & Other insurance products and services include variable life, universal life, term life and whole life products. Additionally, through broker-dealer affiliates, the Company offers a full range of mutual funds and other securities products. Life & Other products and services also include individual disability income products and personal lines property & casualty insurance, including private passenger automobile, homeowners and personal excess liability insurance. Annuities includes a variety of variable and fixed annuities which provide for both asset accumulation and asset distribution needs. | |||||||||||||||||||||||||||||||||||||||||||||
Group, Voluntary & Worksite Benefits | |||||||||||||||||||||||||||||||||||||||||||||
The Group, Voluntary & Worksite Benefits segment offers a broad range of protection products and services to individuals and corporations, as well as other institutions and their respective employees. Group, Voluntary & Worksite Benefits insurance products and services include life, dental, group short- and long-term disability and accidental death and dismemberment (“AD&D”) coverages. In addition, the Group, Voluntary & Worksite Benefits segment offers property & casualty insurance, including private passenger automobile, homeowners and personal excess liability, which is offered to employees on a voluntary basis, long-term care, critical illness and accident & health coverages, as well as prepaid legal plans. | |||||||||||||||||||||||||||||||||||||||||||||
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 postretirement benefits and company-, bank- or trust-owned life insurance used to finance non-qualified benefit programs for executives. | |||||||||||||||||||||||||||||||||||||||||||||
Latin America | |||||||||||||||||||||||||||||||||||||||||||||
The Latin America segment offers a broad range of products to both individuals and corporations, as well as other institutions and their respective employees, which include life insurance, accident & health insurance, group medical, dental, credit insurance, endowment and retirement & savings products written in Latin America. The Latin America segment also includes U.S. direct business, comprised of group and individual products sold through sponsoring organizations, affinity groups and direct to consumer. Products included are life, dental, group short- and long-term disability, AD&D coverages, property & casualty and other accident & health coverages, as well as non-insurance products such as identity protection. | |||||||||||||||||||||||||||||||||||||||||||||
Asia | |||||||||||||||||||||||||||||||||||||||||||||
The Asia segment offers a broad range of products to both individuals and corporations, as well as other institutions and their respective employees, which include whole life, term life, variable life, universal life, accident & health insurance, fixed and variable annuities, credit insurance and endowment products. | |||||||||||||||||||||||||||||||||||||||||||||
EMEA | |||||||||||||||||||||||||||||||||||||||||||||
The EMEA segment offers a broad range of products to both individuals and corporations, as well as other institutions and their respective employees, which include life insurance, accident & health insurance, credit insurance, annuities, endowment and retirement & savings products. | |||||||||||||||||||||||||||||||||||||||||||||
Corporate & Other | |||||||||||||||||||||||||||||||||||||||||||||
Corporate & Other contains the excess capital, as well as certain charges and activities, not allocated to the segments, including external integration costs, internal resource costs for associates committed to acquisitions, enterprise-wide strategic initiative restructuring charges, various start-up businesses (including expatriate benefits insurance and the investment management business through which the Company offers fee-based investment management services to institutional clients) and certain run-off businesses. Corporate & Other also includes assumed reinsurance of certain variable annuity products from the Company’s former 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 interest expense related to the majority of the Company’s outstanding debt and expenses associated with certain legal proceedings and income tax audit issues. Corporate & Other also includes the elimination of intersegment amounts, which generally relate to intersegment loans, which bear interest rates commensurate with related borrowings. | |||||||||||||||||||||||||||||||||||||||||||||
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 income (loss) from continuing operations, net of income tax. 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 MetLife 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”); | ||||||||||||||||||||||||||||||||||||||||||||
• | 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; and | ||||||||||||||||||||||||||||||||||||||||||||
• | Other revenues are adjusted for settlements of foreign currency earnings hedges. | ||||||||||||||||||||||||||||||||||||||||||||
The following additional adjustments are made to GAAP expenses, in the line items indicated, in calculating operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||
• | Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative gains (losses), (ii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass through adjustments, (iii) benefits and hedging costs related to GMIBs (“GMIB Costs”), and (iv) market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”); | ||||||||||||||||||||||||||||||||||||||||||||
• | Interest credited to policyholder account balances includes adjustments for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment and excludes amounts related to net investment income earned on contractholder-directed unit-linked investments; | ||||||||||||||||||||||||||||||||||||||||||||
• | Amortization of deferred policy acquisition costs (“DAC”) and value of business acquired (“VOBA”) excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB Fees and GMIB Costs, and (iii) Market Value Adjustments; | ||||||||||||||||||||||||||||||||||||||||||||
• | Amortization of negative VOBA excludes amounts related to Market Value Adjustments; | ||||||||||||||||||||||||||||||||||||||||||||
• | Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and | ||||||||||||||||||||||||||||||||||||||||||||
• | Other expenses excludes costs related to: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements, and (iii) acquisition and integration costs. | ||||||||||||||||||||||||||||||||||||||||||||
Operating earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for during the measurement period under GAAP business combination accounting guidance. In addition to the tax impact of the adjustments mentioned above, provision for income tax expense (benefit) also includes the impact related to the timing of certain tax credits, as well as certain tax reforms. | |||||||||||||||||||||||||||||||||||||||||||||
In the first quarter of 2015, the Company implemented certain segment reporting changes related to the (i) measurement of segment operating earnings, which included revising the Company’s capital allocation methodology, and (ii) the realignment of consumer direct business. Consequently, prior period results for the three months ended March 31, 2014 were impacted as follows: | |||||||||||||||||||||||||||||||||||||||||||||
• | Retail’s operating earnings increased by $24 million, net of $44 million of income tax benefit; | ||||||||||||||||||||||||||||||||||||||||||||
• | Group, Voluntary & Worksite Benefits’ operating earnings increased by $2 million, net of $1 million of income tax; | ||||||||||||||||||||||||||||||||||||||||||||
• | Corporate Benefit Funding’s operating earnings decreased by $15 million, net of $8 million of income tax benefit; | ||||||||||||||||||||||||||||||||||||||||||||
• | Latin America’s operating earnings decreased by $25 million, net of $16 million of income tax benefit; | ||||||||||||||||||||||||||||||||||||||||||||
• | Asia’s operating earnings increased by $5 million, net of $1 million of income tax; | ||||||||||||||||||||||||||||||||||||||||||||
• | EMEA’s operating earnings decreased by $17 million, net of $7 million of income tax benefit; and | ||||||||||||||||||||||||||||||||||||||||||||
• | Corporate & Other’s operating earnings increased by $26 million, net of $73 million of income tax. | ||||||||||||||||||||||||||||||||||||||||||||
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 ended March 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 the Company’s business. | |||||||||||||||||||||||||||||||||||||||||||||
The Company’s economic capital model, coupled with considerations of local capital requirements, aligns segment allocated equity with emerging standards and consistent risk principles. The model applies statistics-based risk evaluation principles to the material risks to which the Company is exposed. These consistent risk principles include calibrating required economic capital shock factors to a specific confidence level and time horizon while applying an industry standard method for the inclusion of diversification benefits among risk types. The Company’s management is responsible for the ongoing production and enhancement of the economic capital model and reviews its approach periodically to ensure that it remains consistent with emerging industry practice standards. | |||||||||||||||||||||||||||||||||||||||||||||
Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company’s consolidated net investment income, operating earnings or income (loss) from continuing operations, net of income tax. | |||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||
Americas | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | Retail | Group, | Corporate | Latin | Total | Asia | EMEA | Corporate | Total | Adjustments | Total | ||||||||||||||||||||||||||||||||||
Voluntary | Benefit | America | & Other | Consolidated | |||||||||||||||||||||||||||||||||||||||||
& Worksite | Funding | ||||||||||||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||
Premiums | $ | 1,749 | $ | 4,117 | $ | 418 | $ | 699 | $ | 6,983 | $ | 1,752 | $ | 508 | $ | 10 | $ | 9,253 | $ | — | $ | 9,253 | |||||||||||||||||||||||
Universal life and investment-type product policy fees | 1,236 | 188 | 54 | 294 | 1,772 | 397 | 102 | 23 | 2,294 | 100 | 2,394 | ||||||||||||||||||||||||||||||||||
Net investment income | 1,980 | 478 | 1,430 | 218 | 4,106 | 684 | 83 | 109 | 4,982 | 479 | 5,461 | ||||||||||||||||||||||||||||||||||
Other revenues | 251 | 113 | 71 | 10 | 445 | 28 | 10 | 20 | 503 | (8 | ) | 495 | |||||||||||||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | — | — | — | — | 286 | 286 | ||||||||||||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | — | — | 821 | 821 | ||||||||||||||||||||||||||||||||||
Total revenues | 5,216 | 4,896 | 1,973 | 1,221 | 13,306 | 2,861 | 703 | 162 | 17,032 | 1,678 | 18,710 | ||||||||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 2,449 | 3,835 | 991 | 581 | 7,856 | 1,340 | 239 | 12 | 9,447 | 149 | 9,596 | ||||||||||||||||||||||||||||||||||
Interest credited to policyholder account balances | 542 | 37 | 293 | 86 | 958 | 337 | 30 | 6 | 1,331 | 664 | 1,995 | ||||||||||||||||||||||||||||||||||
Capitalization of DAC | (247 | ) | (36 | ) | (6 | ) | (111 | ) | (400 | ) | (435 | ) | (133 | ) | — | (968 | ) | — | (968 | ) | |||||||||||||||||||||||||
Amortization of DAC and VOBA | 375 | 41 | 5 | 78 | 499 | 326 | 128 | — | 953 | 72 | 1,025 | ||||||||||||||||||||||||||||||||||
Amortization of negative VOBA | — | — | — | — | — | (86 | ) | (4 | ) | — | (90 | ) | (10 | ) | (100 | ) | |||||||||||||||||||||||||||||
Interest expense on debt | (1 | ) | — | 1 | — | — | — | — | 297 | 297 | 1 | 298 | |||||||||||||||||||||||||||||||||
Other expenses | 1,176 | 664 | 124 | 425 | 2,389 | 904 | 362 | 145 | 3,800 | 5 | 3,805 | ||||||||||||||||||||||||||||||||||
Total expenses | 4,294 | 4,541 | 1,408 | 1,059 | 11,302 | 2,386 | 622 | 460 | 14,770 | 881 | 15,651 | ||||||||||||||||||||||||||||||||||
Provision for income tax expense (benefit) | 269 | 127 | 196 | 31 | 623 | 148 | 11 | (188 | ) | 594 | 302 | 896 | |||||||||||||||||||||||||||||||||
Operating earnings | $ | 653 | $ | 228 | $ | 369 | $ | 131 | $ | 1,381 | $ | 327 | $ | 70 | $ | (110 | ) | 1,668 | |||||||||||||||||||||||||||
Adjustments to: | |||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 1,678 | ||||||||||||||||||||||||||||||||||||||||||||
Total expenses | (881 | ) | |||||||||||||||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | (302 | ) | |||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | $ | 2,163 | $ | 2,163 | |||||||||||||||||||||||||||||||||||||||||
Operating Results | |||||||||||||||||||||||||||||||||||||||||||||
Americas | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | Retail | Group, | Corporate | Latin | Total | Asia | EMEA | Corporate | Total | Adjustments | Total | ||||||||||||||||||||||||||||||||||
Voluntary | Benefit | America | & Other | Consolidated | |||||||||||||||||||||||||||||||||||||||||
& Worksite | Funding | ||||||||||||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||
Premiums | $ | 1,724 | $ | 4,002 | $ | 301 | $ | 683 | $ | 6,710 | $ | 1,890 | $ | 597 | $ | 20 | $ | 9,217 | $ | 2 | $ | 9,219 | |||||||||||||||||||||||
Universal life and investment-type product policy fees | 1,247 | 177 | 57 | 311 | 1,792 | 389 | 109 | 33 | 2,323 | 98 | 2,421 | ||||||||||||||||||||||||||||||||||
Net investment income | 1,994 | 456 | 1,382 | 297 | 4,129 | 700 | 107 | 149 | 5,085 | (50 | ) | 5,035 | |||||||||||||||||||||||||||||||||
Other revenues | 245 | 107 | 68 | 7 | 427 | 27 | 16 | 21 | 491 | (13 | ) | 478 | |||||||||||||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | — | — | — | — | (411 | ) | (411 | ) | ||||||||||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | — | — | 343 | 343 | ||||||||||||||||||||||||||||||||||
Total revenues | 5,210 | 4,742 | 1,808 | 1,298 | 13,058 | 3,006 | 829 | 223 | 17,116 | (31 | ) | 17,085 | |||||||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 2,407 | 3,781 | 888 | 616 | 7,692 | 1,397 | 261 | 23 | 9,373 | 254 | 9,627 | ||||||||||||||||||||||||||||||||||
Interest credited to policyholder account balances | 555 | 40 | 278 | 98 | 971 | 387 | 34 | 9 | 1,401 | 68 | 1,469 | ||||||||||||||||||||||||||||||||||
Capitalization of DAC | (234 | ) | (34 | ) | (1 | ) | (107 | ) | (376 | ) | (494 | ) | (176 | ) | — | (1,046 | ) | — | (1,046 | ) | |||||||||||||||||||||||||
Amortization of DAC and VOBA | 429 | 36 | 4 | 79 | 548 | 338 | 164 | — | 1,050 | 8 | 1,058 | ||||||||||||||||||||||||||||||||||
Amortization of negative VOBA | — | — | — | — | — | (94 | ) | (9 | ) | — | (103 | ) | (12 | ) | (115 | ) | |||||||||||||||||||||||||||||
Interest expense on debt | — | — | 2 | — | 2 | — | — | 292 | 294 | 18 | 312 | ||||||||||||||||||||||||||||||||||
Other expenses | 1,142 | 628 | 115 | 436 | 2,321 | 991 | 464 | 175 | 3,951 | 3 | 3,954 | ||||||||||||||||||||||||||||||||||
Total expenses | 4,299 | 4,451 | 1,286 | 1,122 | 11,158 | 2,525 | 738 | 499 | 14,920 | 339 | 15,259 | ||||||||||||||||||||||||||||||||||
Provision for income tax expense (benefit) | 275 | 101 | 182 | 18 | 576 | 148 | 20 | (140 | ) | 604 | (120 | ) | 484 | ||||||||||||||||||||||||||||||||
Operating earnings | $ | 636 | $ | 190 | $ | 340 | $ | 158 | $ | 1,324 | $ | 333 | $ | 71 | $ | (136 | ) | 1,592 | |||||||||||||||||||||||||||
Adjustments to: | |||||||||||||||||||||||||||||||||||||||||||||
Total revenues | (31 | ) | |||||||||||||||||||||||||||||||||||||||||||
Total expenses | (339 | ) | |||||||||||||||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 120 | ||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | $ | 1,342 | $ | 1,342 | |||||||||||||||||||||||||||||||||||||||||
The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at: | |||||||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||||||
Retail | $ | 363,783 | $ | 359,188 | |||||||||||||||||||||||||||||||||||||||||
Group, Voluntary & Worksite Benefits | 48,474 | 46,483 | |||||||||||||||||||||||||||||||||||||||||||
Corporate Benefit Funding | 236,925 | 228,543 | |||||||||||||||||||||||||||||||||||||||||||
Latin America | 72,074 | 72,259 | |||||||||||||||||||||||||||||||||||||||||||
Asia | 116,278 | 117,894 | |||||||||||||||||||||||||||||||||||||||||||
EMEA | 27,991 | 29,217 | |||||||||||||||||||||||||||||||||||||||||||
Corporate & Other | 54,265 | 48,753 | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 919,790 | $ | 902,337 | |||||||||||||||||||||||||||||||||||||||||
Insurance
Insurance | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Insurance [Abstract] | ||||||||||||||||
Insurance | 3. Insurance | |||||||||||||||
Guarantees | ||||||||||||||||
As discussed in Notes 1 and 4 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 6. | ||||||||||||||||
The Company also issues two tier annuity contracts that apply a lower rate on funds deposited if the contractholder elects to surrender the contract for cash (the “lower tier”) and a higher rate if the contractholder elects to annuitize (the “upper tier”). These guarantees include benefits that are payable in the event of death, maturity or at annuitization. Certain other annuity contracts contain guaranteed annuitization benefits that may be above what would be provided by the current account value of the contract. Additionally, the Company issues universal and variable life contracts where the Company contractually guarantees to the contractholder a secondary guarantee or a guaranteed paid-up benefit. | ||||||||||||||||
Based on the type of guarantee, the Company defines net amount at risk as listed below. These amounts include direct and assumed business, but exclude offsets from hedging or reinsurance, if any. | ||||||||||||||||
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. | ||||||||||||||||
Two Tier and Other Annuities | ||||||||||||||||
Two tier annuities are defined as the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date. Other annuities are 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. | ||||||||||||||||
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: | ||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||
In the | At | In the | At | |||||||||||||
Event of Death | Annuitization | Event of Death | Annuitization | |||||||||||||
(In millions) | ||||||||||||||||
Annuity Contracts (1) | ||||||||||||||||
Variable Annuity Guarantees | ||||||||||||||||
Total contract account value (2) | $ | 197,400 | $ | 99,960 | $ | 196,595 | $ | 99,000 | ||||||||
Separate account value | $ | 165,322 | $ | 96,933 | $ | 163,566 | $ | 95,963 | ||||||||
Net amount at risk (2) | $ | 3,892 | $ | 1,996 | $ | 4,230 | $ | 1,770 | ||||||||
Average attained age of contractholders | 65 years | 66 years | 65 years | 65 years | ||||||||||||
Two Tier and Other Annuities | ||||||||||||||||
Account value | N/A | $ | 939 | N/A | $ | 1,040 | ||||||||||
Net amount at risk | N/A | $ | 301 | N/A | $ | 340 | ||||||||||
Average attained age of contractholders | N/A | 50 years | N/A | 50 years | ||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
Secondary | Paid-Up | Secondary | Paid-Up | |||||||||||||
Guarantees | Guarantees | Guarantees | Guarantees | |||||||||||||
(In millions) | ||||||||||||||||
Universal and Variable Life Contracts (1) | ||||||||||||||||
Account value (general and separate account) | $ | 17,072 | $ | 3,556 | $ | 16,875 | $ | 3,587 | ||||||||
Net amount at risk | $ | 178,870 | $ | 19,980 | $ | 180,069 | $ | 20,344 | ||||||||
Average attained age of policyholders | 56 years | 61 years | 56 years | 61 years | ||||||||||||
__________________ | ||||||||||||||||
-1 | The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. | |||||||||||||||
-2 | Includes amounts, which are not reported on the consolidated balance sheets, from assumed reinsurance of certain variable annuity products from the Company’s former operating joint venture in Japan. |
Closed_Block
Closed Block | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Closed Block Disclosure [Abstract] | |||||||||
Closed Block | 4. Closed Block | ||||||||
On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company (“MLIC”) converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance approving MLIC’s plan of reorganization, as amended (the “Plan of Reorganization”). On the Demutualization Date, MLIC established a closed block for the benefit of holders of certain individual life insurance policies of MLIC. | |||||||||
Experience within the closed block, in particular mortality and investment yields, as well as realized and unrealized gains and losses, directly impact the policyholder dividend obligation. Amortization of the closed block DAC, which resides outside of the closed block, is based upon cumulative actual and expected earnings within the closed block. Accordingly, the Company’s net income continues to be sensitive to the actual performance of the closed block. | |||||||||
Closed block assets, liabilities, revenues and expenses are combined on a line-by-line basis with the assets, liabilities, revenues and expenses outside the closed block based on the nature of the particular item. | |||||||||
Information regarding the closed block liabilities and assets designated to the closed block was as follows at: | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
(In millions) | |||||||||
Closed Block Liabilities | |||||||||
Future policy benefits | $ | 41,481 | $ | 41,667 | |||||
Other policy-related balances | 309 | 265 | |||||||
Policyholder dividends payable | 479 | 461 | |||||||
Policyholder dividend obligation | 3,483 | 3,155 | |||||||
Current income tax payable | 3 | 1 | |||||||
Other liabilities | 482 | 646 | |||||||
Total closed block liabilities | 46,237 | 46,195 | |||||||
Assets Designated to the Closed Block | |||||||||
Investments: | |||||||||
Fixed maturity securities available-for-sale, at estimated fair value | 29,093 | 29,199 | |||||||
Equity securities available-for-sale, at estimated fair value | 98 | 91 | |||||||
Mortgage loans | 6,103 | 6,076 | |||||||
Policy loans | 4,643 | 4,646 | |||||||
Real estate and real estate joint ventures | 651 | 666 | |||||||
Other invested assets | 1,123 | 1,065 | |||||||
Total investments | 41,711 | 41,743 | |||||||
Cash and cash equivalents | 323 | 227 | |||||||
Accrued investment income | 483 | 477 | |||||||
Premiums, reinsurance and other receivables | 78 | 67 | |||||||
Deferred income tax assets | 277 | 289 | |||||||
Total assets designated to the closed block | 42,872 | 42,803 | |||||||
Excess of closed block liabilities over assets designated to the closed block | 3,365 | 3,392 | |||||||
Amounts included in accumulated other comprehensive income (loss) (“AOCI”) | |||||||||
Unrealized investment gains (losses), net of income tax | 2,441 | 2,291 | |||||||
Unrealized gains (losses) on derivatives, net of income tax | 63 | 28 | |||||||
Allocated to policyholder dividend obligation, net of income tax | (2,264 | ) | (2,051 | ) | |||||
Total amounts included in AOCI | 240 | 268 | |||||||
Maximum future earnings to be recognized from closed block assets and liabilities | $ | 3,605 | $ | 3,660 | |||||
Information regarding the closed block policyholder dividend obligation was as follows: | |||||||||
Three Months | Year | ||||||||
Ended | Ended | ||||||||
March 31, 2015 | December 31, 2014 | ||||||||
(In millions) | |||||||||
Balance, beginning of period | $ | 3,155 | $ | 1,771 | |||||
Change in unrealized investment and derivative gains (losses) | 328 | 1,384 | |||||||
Balance, end of period | $ | 3,483 | $ | 3,155 | |||||
Information regarding the closed block revenues and expenses was as follows: | |||||||||
Three Months | |||||||||
Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(In millions) | |||||||||
Revenues | |||||||||
Premiums | $ | 430 | $ | 446 | |||||
Net investment income | 515 | 530 | |||||||
Net investment gains (losses) | (1 | ) | — | ||||||
Net derivative gains (losses) | 25 | (1 | ) | ||||||
Total revenues | 969 | 975 | |||||||
Expenses | |||||||||
Policyholder benefits and claims | 608 | 624 | |||||||
Policyholder dividends | 240 | 233 | |||||||
Other expenses | 37 | 41 | |||||||
Total expenses | 885 | 898 | |||||||
Revenues, net of expenses before provision for income tax expense (benefit) | 84 | 77 | |||||||
Provision for income tax expense (benefit) | 29 | 27 | |||||||
Revenues, net of expenses and provision for income tax expense (benefit) | $ | 55 | $ | 50 | |||||
MLIC charges the closed block with federal income taxes, state and local premium taxes and other additive state or local taxes, as well as investment management expenses relating to the closed block as provided in the Plan of Reorganization. MLIC also charges the closed block for expenses of maintaining the policies included in the closed block. |
Investments
Investments | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Investments | 5. 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 | Gross Unrealized | Estimated | Cost or | Gross Unrealized | Estimated | |||||||||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||||||||||||||||
Cost | Gains | Temporary | OTTI | Value | Cost | Gains | Temporary | OTTI | Value | |||||||||||||||||||||||||||||||
Losses | Losses | Losses | Losses | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||
U.S. corporate | $ | 95,661 | $ | 11,231 | $ | 557 | $ | — | $ | 106,335 | $ | 96,235 | $ | 10,343 | $ | 624 | $ | — | $ | 105,954 | ||||||||||||||||||||
Foreign corporate | 56,728 | 4,781 | 1,008 | 7 | 60,494 | 57,695 | 4,651 | 664 | 7 | 61,675 | ||||||||||||||||||||||||||||||
U.S. Treasury and agency | 52,560 | 7,946 | 34 | — | 60,472 | 54,654 | 6,892 | 30 | — | 61,516 | ||||||||||||||||||||||||||||||
Foreign government | 46,384 | 6,106 | 129 | — | 52,361 | 47,327 | 5,500 | 161 | — | 52,666 | ||||||||||||||||||||||||||||||
RMBS | 41,836 | 2,234 | 208 | 78 | 43,784 | 38,064 | 2,102 | 214 | 106 | 39,846 | ||||||||||||||||||||||||||||||
State and political subdivision | 13,293 | 2,445 | 28 | — | 15,710 | 12,922 | 2,291 | 26 | — | 15,187 | ||||||||||||||||||||||||||||||
CMBS (1) | 12,762 | 605 | 57 | (1 | ) | 13,311 | 13,762 | 615 | 46 | (1 | ) | 14,332 | ||||||||||||||||||||||||||||
ABS | 13,685 | 226 | 103 | — | 13,808 | 14,121 | 240 | 112 | — | 14,249 | ||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 332,909 | $ | 35,574 | $ | 2,124 | $ | 84 | $ | 366,275 | $ | 334,780 | $ | 32,634 | $ | 1,877 | $ | 112 | $ | 365,425 | ||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||
Common stock | $ | 2,037 | $ | 563 | $ | 25 | $ | — | $ | 2,575 | $ | 1,990 | $ | 554 | $ | 28 | $ | — | $ | 2,516 | ||||||||||||||||||||
Non-redeemable preferred stock | 1,096 | 86 | 44 | — | 1,138 | 1,086 | 68 | 39 | — | 1,115 | ||||||||||||||||||||||||||||||
Total equity securities | $ | 3,133 | $ | 649 | $ | 69 | $ | — | $ | 3,713 | $ | 3,076 | $ | 622 | $ | 67 | $ | — | $ | 3,631 | ||||||||||||||||||||
__________________ | ||||||||||||||||||||||||||||||||||||||||
-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 $78 million and $64 million with unrealized gains (losses) of $31 million and $28 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 | $ | 13,740 | $ | 71,252 | $ | 75,395 | $ | 104,239 | $ | 68,283 | $ | 332,909 | ||||||||||||||||||||||||||||
Estimated fair value | $ | 13,916 | $ | 74,840 | $ | 81,857 | $ | 124,759 | $ | 70,903 | $ | 366,275 | ||||||||||||||||||||||||||||
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 | 31-Dec-14 | |||||||||||||||||||||||||||||||||||||||
Less than 12 Months | Equal to or Greater than 12 Months | Less than 12 Months | Equal to or Greater than 12 Months | |||||||||||||||||||||||||||||||||||||
Estimated | Gross | Estimated | Gross | Estimated | Gross | Estimated | Gross | |||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||||||||||||||
(In millions, except number of securities) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||
U.S. corporate | $ | 8,366 | $ | 322 | $ | 2,545 | $ | 235 | $ | 11,389 | $ | 331 | $ | 4,658 | $ | 293 | ||||||||||||||||||||||||
Foreign corporate | 10,108 | 849 | 1,657 | 166 | 9,410 | 505 | 2,074 | 166 | ||||||||||||||||||||||||||||||||
U.S. Treasury and agency | 4,600 | 31 | 302 | 3 | 8,927 | 12 | 1,314 | 18 | ||||||||||||||||||||||||||||||||
Foreign government | 1,241 | 54 | 435 | 75 | 1,085 | 80 | 630 | 81 | ||||||||||||||||||||||||||||||||
RMBS | 3,276 | 65 | 2,018 | 221 | 4,180 | 92 | 2,534 | 228 | ||||||||||||||||||||||||||||||||
State and political subdivision | 287 | 5 | 109 | 23 | 83 | 1 | 297 | 25 | ||||||||||||||||||||||||||||||||
CMBS | 1,579 | 46 | 362 | 10 | 1,268 | 23 | 934 | 22 | ||||||||||||||||||||||||||||||||
ABS | 3,672 | 67 | 1,384 | 36 | 4,456 | 57 | 1,440 | 55 | ||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 33,129 | $ | 1,439 | $ | 8,812 | $ | 769 | $ | 40,798 | $ | 1,101 | $ | 13,881 | $ | 888 | ||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||
Common stock | $ | 137 | $ | 25 | $ | — | $ | — | $ | 111 | $ | 28 | $ | 1 | $ | — | ||||||||||||||||||||||||
Non-redeemable preferred stock | 37 | 3 | 189 | 41 | 67 | 2 | 192 | 37 | ||||||||||||||||||||||||||||||||
Total equity securities | $ | 174 | $ | 28 | $ | 189 | $ | 41 | $ | 178 | $ | 30 | $ | 193 | $ | 37 | ||||||||||||||||||||||||
Total number of securities in an unrealized loss position | 2,704 | 1,122 | 3,153 | 1,435 | ||||||||||||||||||||||||||||||||||||
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 $219 million during the three months ended March 31, 2015 to $2.2 billion. The increase in gross unrealized losses for the three months ended March 31, 2015 was primarily attributable to the impact of weakening foreign currencies on non-functional currency denominated fixed maturity securities. | ||||||||||||||||||||||||||||||||||||||||
At March 31, 2015, $141 million of the total $2.2 billion of gross unrealized losses were from 50 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 $141 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, $78 million, or 55%, were related to gross unrealized losses on 24 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 $141 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, $63 million, or 45%, were related to gross unrealized losses on 26 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), foreign corporate securities (primarily financial services industry securities) and state and political subdivision securities (primarily tax-exempt revenue bonds) 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; and evaluates foreign corporate and state and political subdivision securities based on factors such as expected cash flows and the financial condition and near-term and long-term prospects of the issuers. | ||||||||||||||||||||||||||||||||||||||||
Equity Securities | ||||||||||||||||||||||||||||||||||||||||
Gross unrealized losses on equity securities increased $2 million during the three months ended March 31, 2015 to $69 million. Of the $69 million, $29 million were from seven securities with gross unrealized losses of 20% or more of cost for 12 months or greater. Of the $29 million, 59% 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 | % of | Carrying | % of | |||||||||||||||||||||||||||||||||||||
Value | Total | Value | Total | |||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 42,164 | 67.6 | % | $ | 41,088 | 68.3 | % | ||||||||||||||||||||||||||||||||
Agricultural | 12,333 | 19.8 | 12,378 | 20.6 | ||||||||||||||||||||||||||||||||||||
Residential | 7,626 | 12.2 | 6,369 | 10.6 | ||||||||||||||||||||||||||||||||||||
Subtotal (1) | 62,123 | 99.6 | 59,835 | 99.5 | ||||||||||||||||||||||||||||||||||||
Valuation allowances | (315 | ) | (0.5 | ) | (305 | ) | (0.5 | ) | ||||||||||||||||||||||||||||||||
Subtotal mortgage loans, net | 61,808 | 99.1 | 59,530 | 99 | ||||||||||||||||||||||||||||||||||||
Residential — fair value option (“FVO”) | 329 | 0.5 | 308 | 0.5 | ||||||||||||||||||||||||||||||||||||
Commercial mortgage loans held by CSEs — FVO | 272 | 0.4 | 280 | 0.5 | ||||||||||||||||||||||||||||||||||||
Total mortgage loans, net | $ | 62,409 | 100 | % | $ | 60,118 | 100 | % | ||||||||||||||||||||||||||||||||
__________________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Purchases of mortgage loans were $1.4 billion and $597 million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||||||||||||||||||||||||||||||
See “— Variable Interest Entities” for discussion of consolidated securitization entities (“CSEs”). | ||||||||||||||||||||||||||||||||||||||||
Information on commercial, agricultural and residential mortgage loans is presented in the tables below. Information on residential - FVO and commercial mortgage loans held by CSEs - FVO is presented in Note 7. The Company elects the FVO for certain 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 | Valuation | Unpaid Principal Balance | Recorded | Recorded | Valuation | Carrying | |||||||||||||||||||||||||||||||||
Investment | Allowances | Investment | Investment | Allowances | Value | |||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 69 | $ | 69 | $ | 20 | $ | 98 | $ | 98 | $ | 41,997 | $ | 205 | $ | 147 | ||||||||||||||||||||||||
Agricultural | 51 | 48 | 2 | 16 | 16 | 12,269 | 37 | 62 | ||||||||||||||||||||||||||||||||
Residential | — | — | — | 62 | 58 | 7,568 | 51 | 58 | ||||||||||||||||||||||||||||||||
Total | $ | 120 | $ | 117 | $ | 22 | $ | 176 | $ | 172 | $ | 61,834 | $ | 293 | $ | 267 | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 75 | $ | 75 | $ | 24 | $ | 101 | $ | 100 | $ | 40,913 | $ | 200 | $ | 151 | ||||||||||||||||||||||||
Agricultural | 51 | 48 | 2 | 14 | 13 | 12,317 | 37 | 59 | ||||||||||||||||||||||||||||||||
Residential | — | — | — | 40 | 37 | 6,332 | 42 | 37 | ||||||||||||||||||||||||||||||||
Total | $ | 126 | $ | 123 | $ | 26 | $ | 155 | $ | 150 | $ | 59,562 | $ | 279 | $ | 247 | ||||||||||||||||||||||||
The average recorded investment for impaired commercial, agricultural and residential mortgage loans was $171 million, $63 million and $47 million, respectively, for the three months ended March 31, 2015; and $507 million, $100 million and $13 million, respectively, for the three months ended March 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 | Residential | Total | Commercial | Agricultural | Residential | Total | |||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 224 | $ | 39 | $ | 42 | $ | 305 | $ | 258 | $ | 44 | $ | 20 | $ | 322 | ||||||||||||||||||||||||
Provision (release) | 1 | — | 14 | 15 | 1 | (2 | ) | 6 | 5 | |||||||||||||||||||||||||||||||
Charge-offs, net of recoveries | — | — | (5 | ) | (5 | ) | — | — | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||
Balance, end of period | $ | 225 | $ | 39 | $ | 51 | $ | 315 | $ | 259 | $ | 42 | $ | 25 | $ | 326 | ||||||||||||||||||||||||
Credit Quality of Commercial Mortgage Loans | ||||||||||||||||||||||||||||||||||||||||
The credit quality of commercial mortgage loans was as follows at: | ||||||||||||||||||||||||||||||||||||||||
Recorded Investment | Estimated | % of | ||||||||||||||||||||||||||||||||||||||
Debt Service Coverage Ratios | % of | Fair Value | Total | |||||||||||||||||||||||||||||||||||||
> 1.20x | 1.00x - 1.20x | < 1.00x | Total | Total | ||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||||||||||||||||||||
Loan-to-value ratios | ||||||||||||||||||||||||||||||||||||||||
Less than 65% | $ | 35,250 | $ | 953 | $ | 801 | $ | 37,004 | 87.8 | % | $ | 38,884 | 88.2 | % | ||||||||||||||||||||||||||
65% to 75% | 3,398 | 573 | 64 | 4,035 | 9.6 | 4,088 | 9.3 | |||||||||||||||||||||||||||||||||
76% to 80% | 137 | — | 8 | 145 | 0.3 | 154 | 0.3 | |||||||||||||||||||||||||||||||||
Greater than 80% | 577 | 299 | 104 | 980 | 2.3 | 964 | 2.2 | |||||||||||||||||||||||||||||||||
Total | $ | 39,362 | $ | 1,825 | $ | 977 | $ | 42,164 | 100 | % | $ | 44,090 | 100 | % | ||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Loan-to-value ratios | ||||||||||||||||||||||||||||||||||||||||
Less than 65% | $ | 33,933 | $ | 1,105 | $ | 1,101 | $ | 36,139 | 88 | % | $ | 38,166 | 88.4 | % | ||||||||||||||||||||||||||
65% to 75% | 3,306 | 405 | 87 | 3,798 | 9.2 | 3,873 | 9 | |||||||||||||||||||||||||||||||||
76% to 80% | 130 | — | 15 | 145 | 0.4 | 153 | 0.3 | |||||||||||||||||||||||||||||||||
Greater than 80% | 562 | 281 | 163 | 1,006 | 2.4 | 987 | 2.3 | |||||||||||||||||||||||||||||||||
Total | $ | 37,931 | $ | 1,791 | $ | 1,366 | $ | 41,088 | 100 | % | $ | 43,179 | 100 | % | ||||||||||||||||||||||||||
Credit Quality of Agricultural Mortgage Loans | ||||||||||||||||||||||||||||||||||||||||
The credit quality of agricultural mortgage loans was as follows at: | ||||||||||||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||||||||||
Recorded | % of | Recorded | % of | |||||||||||||||||||||||||||||||||||||
Investment | Total | Investment | Total | |||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Loan-to-value ratios | ||||||||||||||||||||||||||||||||||||||||
Less than 65% | $ | 11,498 | 93.2 | % | $ | 11,743 | 94.9 | % | ||||||||||||||||||||||||||||||||
65% to 75% | 703 | 5.7 | 533 | 4.3 | ||||||||||||||||||||||||||||||||||||
76% to 80% | 50 | 0.4 | 17 | 0.1 | ||||||||||||||||||||||||||||||||||||
Greater than 80% | 82 | 0.7 | 85 | 0.7 | ||||||||||||||||||||||||||||||||||||
Total | $ | 12,333 | 100 | % | $ | 12,378 | 100 | % | ||||||||||||||||||||||||||||||||
The estimated fair value of agricultural mortgage loans was $12.8 billion at both March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||||||||||||||||||
Credit Quality of Residential Mortgage Loans | ||||||||||||||||||||||||||||||||||||||||
The credit quality of residential mortgage loans was as follows at: | ||||||||||||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||||||||||
Recorded | % of | Recorded | % of | |||||||||||||||||||||||||||||||||||||
Investment | Total | Investment | Total | |||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Performance indicators | ||||||||||||||||||||||||||||||||||||||||
Performing | $ | 7,429 | 97.4 | % | $ | 6,196 | 97.3 | % | ||||||||||||||||||||||||||||||||
Nonperforming | 197 | 2.6 | 173 | 2.7 | ||||||||||||||||||||||||||||||||||||
Total | $ | 7,626 | 100 | % | $ | 6,369 | 100 | % | ||||||||||||||||||||||||||||||||
The estimated fair value of residential mortgage loans was $7.7 billion and $6.6 billion at March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||||||||||||||||||||
Past Due and Interest Accrual Status of Mortgage Loans | ||||||||||||||||||||||||||||||||||||||||
The Company has a high quality, well performing mortgage loan portfolio, with 99% of all mortgage loans classified as performing at both March 31, 2015 and December 31, 2014. The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days. The past due and accrual status of mortgage loans at recorded investment, prior to valuation allowances, by portfolio segment, were as follows at: | ||||||||||||||||||||||||||||||||||||||||
Past Due | Nonaccrual Status | |||||||||||||||||||||||||||||||||||||||
March 31, 2015 | 31-Dec-14 | March 31, 2015 | 31-Dec-14 | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 10 | $ | 10 | $ | 69 | $ | 75 | ||||||||||||||||||||||||||||||||
Agricultural | 26 | 1 | 46 | 41 | ||||||||||||||||||||||||||||||||||||
Residential | 197 | 173 | 188 | 163 | ||||||||||||||||||||||||||||||||||||
Total | $ | 233 | $ | 184 | $ | 303 | $ | 279 | ||||||||||||||||||||||||||||||||
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. During the three months ended March 31, 2015 and 2014, the Company did not have a significant amount of mortgage loans modified in a troubled debt restructuring. | ||||||||||||||||||||||||||||||||||||||||
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 $2.1 billion and $4.5 billion 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”), future policy benefits and the policyholder dividend obligation, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI. | ||||||||||||||||||||||||||||||||||||||||
The components of net unrealized investment gains (losses), included in AOCI, were as follows: | ||||||||||||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 33,080 | $ | 30,367 | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities with noncredit OTTI losses in AOCI | (84 | ) | (112 | ) | ||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 32,996 | 30,255 | ||||||||||||||||||||||||||||||||||||||
Equity securities | 678 | 608 | ||||||||||||||||||||||||||||||||||||||
Derivatives | 2,502 | 1,761 | ||||||||||||||||||||||||||||||||||||||
Other | 159 | 149 | ||||||||||||||||||||||||||||||||||||||
Subtotal | 36,335 | 32,773 | ||||||||||||||||||||||||||||||||||||||
Amounts allocated from: | ||||||||||||||||||||||||||||||||||||||||
Future policy benefits | (3,742 | ) | (2,886 | ) | ||||||||||||||||||||||||||||||||||||
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | (1 | ) | (4 | ) | ||||||||||||||||||||||||||||||||||||
DAC, VOBA and DSI | (2,062 | ) | (1,946 | ) | ||||||||||||||||||||||||||||||||||||
Policyholder dividend obligation | (3,483 | ) | (3,155 | ) | ||||||||||||||||||||||||||||||||||||
Subtotal | (9,288 | ) | (7,991 | ) | ||||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | 31 | 42 | ||||||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) | (9,273 | ) | (8,556 | ) | ||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) | 17,805 | 16,268 | ||||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) attributable to noncontrolling interests | (44 | ) | (33 | ) | ||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) attributable to MetLife, Inc. | $ | 17,761 | $ | 16,235 | ||||||||||||||||||||||||||||||||||||
The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows: | ||||||||||||||||||||||||||||||||||||||||
Three Months | Year | |||||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | (112 | ) | $ | (218 | ) | ||||||||||||||||||||||||||||||||||
Noncredit OTTI losses and subsequent changes recognized | 10 | 17 | ||||||||||||||||||||||||||||||||||||||
Securities sold with previous noncredit OTTI loss | 12 | 53 | ||||||||||||||||||||||||||||||||||||||
Subsequent changes in estimated fair value | 6 | 36 | ||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | (84 | ) | $ | (112 | ) | ||||||||||||||||||||||||||||||||||
The changes in net unrealized investment gains (losses) were as follows: | ||||||||||||||||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 16,235 | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities on which noncredit OTTI losses have been recognized | 28 | |||||||||||||||||||||||||||||||||||||||
Unrealized investment gains (losses) during the period | 3,534 | |||||||||||||||||||||||||||||||||||||||
Unrealized investment gains (losses) relating to: | ||||||||||||||||||||||||||||||||||||||||
Future policy benefits | (856 | ) | ||||||||||||||||||||||||||||||||||||||
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | 3 | |||||||||||||||||||||||||||||||||||||||
DAC, VOBA and DSI | (116 | ) | ||||||||||||||||||||||||||||||||||||||
Policyholder dividend obligation | (328 | ) | ||||||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | (11 | ) | ||||||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) | (717 | ) | ||||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) | 17,772 | |||||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) attributable to noncontrolling interests | (11 | ) | ||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | 17,761 | ||||||||||||||||||||||||||||||||||||||
Change in net unrealized investment gains (losses) | $ | 1,537 | ||||||||||||||||||||||||||||||||||||||
Change in net unrealized investment gains (losses) attributable to noncontrolling interests | (11 | ) | ||||||||||||||||||||||||||||||||||||||
Change in net unrealized investment gains (losses) attributable to MetLife, Inc. | $ | 1,526 | ||||||||||||||||||||||||||||||||||||||
Concentrations of Credit Risk | ||||||||||||||||||||||||||||||||||||||||
Investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, were in fixed income securities of the Japanese government and its agencies with an estimated fair value of $20.6 billion and $20.3 billion at March 31, 2015 and December 31, 2014, respectively. The Company’s investment in fixed maturity and equity securities to counterparties that primarily conduct business in Japan, including Japan government and agency fixed maturity securities, was $25.8 billion and $25.5 billion at March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||||||||||||||||||||
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 | $ | 25,933 | $ | 26,989 | ||||||||||||||||||||||||||||||||||||
Estimated fair value | $ | 29,358 | $ | 30,269 | ||||||||||||||||||||||||||||||||||||
Cash collateral on deposit from counterparties (2) | $ | 29,804 | $ | 30,826 | ||||||||||||||||||||||||||||||||||||
Security collateral on deposit from counterparties (3) | $ | 170 | $ | 83 | ||||||||||||||||||||||||||||||||||||
Reinvestment portfolio — estimated fair value | $ | 30,350 | $ | 31,314 | ||||||||||||||||||||||||||||||||||||
_________________ | ||||||||||||||||||||||||||||||||||||||||
-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 6 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) | $ | 9,544 | $ | 9,437 | ||||||||||||||||||||||||||||||||||||
Invested assets held in trust (collateral financing arrangements and reinsurance agreements) | 10,491 | 10,069 | ||||||||||||||||||||||||||||||||||||||
Invested assets pledged as collateral (1) | 26,061 | 25,996 | ||||||||||||||||||||||||||||||||||||||
Total invested assets on deposit, held in trust and pledged as collateral | $ | 46,096 | $ | 45,502 | ||||||||||||||||||||||||||||||||||||
__________________ | ||||||||||||||||||||||||||||||||||||||||
-1 | The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Notes 4 and 12 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report), collateral financing arrangements (see Note 13 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report) and derivative transactions (see Note 7). | |||||||||||||||||||||||||||||||||||||||
See “— Securities Lending” and “— Repurchase Agreement Transactions” for information regarding securities on loan and Note 4 for information regarding investments designated to the closed block. | ||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | ||||||||||||||||||||||||||||||||||||||||
The Company has invested in certain structured transactions (including CSEs), formed trusts to invest proceeds from certain collateral financing arrangements and has insurance operations 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 | |||||||||||||||||||||||||||||||||||||||
Total | Total | Total | Total | |||||||||||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
MRSC (collateral financing arrangement (primarily securities)) (1) | $ | 3,458 | $ | — | $ | 3,471 | $ | — | ||||||||||||||||||||||||||||||||
Operating joint venture (2) | 2,544 | 2,123 | 2,405 | 1,999 | ||||||||||||||||||||||||||||||||||||
CSEs (assets (primarily loans) and liabilities (primarily debt)) (3) | 288 | 147 | 297 | 155 | ||||||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||||
Other invested assets | 73 | 15 | 59 | — | ||||||||||||||||||||||||||||||||||||
FVO and trading securities | 42 | — | 45 | — | ||||||||||||||||||||||||||||||||||||
Other limited partnership interests | 37 | — | 37 | — | ||||||||||||||||||||||||||||||||||||
Real estate joint ventures | 9 | 15 | 9 | 15 | ||||||||||||||||||||||||||||||||||||
Total | $ | 6,451 | $ | 2,300 | $ | 6,323 | $ | 2,169 | ||||||||||||||||||||||||||||||||
__________________ | ||||||||||||||||||||||||||||||||||||||||
-1 | See Note 13 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report for a description of the MetLife Reinsurance Company of South Carolina (“MRSC”) collateral financing arrangement. | |||||||||||||||||||||||||||||||||||||||
-2 | Assets of the operating joint venture are primarily fixed maturity securities and separate account assets. Liabilities of the operating joint venture are primarily future policy benefits, other policyholder funds and separate account liabilities. | |||||||||||||||||||||||||||||||||||||||
-3 | The Company consolidates entities that are structured as CMBS and as collateralized debt obligations. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company 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 ended March 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 | Maximum | Carrying | Maximum | |||||||||||||||||||||||||||||||||||||
Amount | Exposure | Amount | Exposure | |||||||||||||||||||||||||||||||||||||
to Loss (1) | to Loss (1) | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities AFS: | ||||||||||||||||||||||||||||||||||||||||
Structured securities (RMBS, CMBS and ABS) (2) | $ | 70,903 | $ | 70,903 | $ | 68,427 | $ | 68,427 | ||||||||||||||||||||||||||||||||
U.S. and foreign corporate | 3,704 | 3,704 | 3,829 | 3,829 | ||||||||||||||||||||||||||||||||||||
Other limited partnership interests | 6,224 | 8,382 | 6,250 | 8,402 | ||||||||||||||||||||||||||||||||||||
Other invested assets | 1,696 | 2,056 | 1,720 | 2,050 | ||||||||||||||||||||||||||||||||||||
FVO and trading securities | 602 | 602 | 565 | 565 | ||||||||||||||||||||||||||||||||||||
Real estate joint ventures | 93 | 118 | 100 | 125 | ||||||||||||||||||||||||||||||||||||
Mortgage loans | 51 | 51 | 51 | 51 | ||||||||||||||||||||||||||||||||||||
Equity securities AFS: | ||||||||||||||||||||||||||||||||||||||||
Non-redeemable preferred stock | 39 | 39 | 41 | 41 | ||||||||||||||||||||||||||||||||||||
Total | $ | 83,312 | $ | 85,855 | $ | 80,983 | $ | 83,490 | ||||||||||||||||||||||||||||||||
__________________ | ||||||||||||||||||||||||||||||||||||||||
-1 | The maximum exposure to loss relating to fixed maturity securities AFS, FVO and trading securities 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, mortgage loans 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 $208 million and $212 million at March 31, 2015 and December 31, 2014, respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. | |||||||||||||||||||||||||||||||||||||||
-2 | For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. | |||||||||||||||||||||||||||||||||||||||
As described in Note 13, 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 ended March 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 | $ | 3,541 | $ | 3,653 | ||||||||||||||||||||||||||||||||||||
Equity securities | 31 | 30 | ||||||||||||||||||||||||||||||||||||||
FVO and trading securities — Actively Traded and FVO general account securities (1) | 37 | 37 | ||||||||||||||||||||||||||||||||||||||
Mortgage loans | 730 | 709 | ||||||||||||||||||||||||||||||||||||||
Policy loans | 152 | 157 | ||||||||||||||||||||||||||||||||||||||
Real estate and real estate joint ventures | 211 | 217 | ||||||||||||||||||||||||||||||||||||||
Other limited partnership interests | 215 | 329 | ||||||||||||||||||||||||||||||||||||||
Cash, cash equivalents and short-term investments | 35 | 47 | ||||||||||||||||||||||||||||||||||||||
Operating joint ventures | 8 | — | ||||||||||||||||||||||||||||||||||||||
Other | 122 | 45 | ||||||||||||||||||||||||||||||||||||||
Subtotal | 5,082 | 5,224 | ||||||||||||||||||||||||||||||||||||||
Less: Investment expenses | 302 | 276 | ||||||||||||||||||||||||||||||||||||||
Subtotal, net | 4,780 | 4,948 | ||||||||||||||||||||||||||||||||||||||
FVO and trading securities — FVO contractholder-directed unit-linked investments (1) | 677 | 65 | ||||||||||||||||||||||||||||||||||||||
FVO CSEs — interest income: | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | 4 | 22 | ||||||||||||||||||||||||||||||||||||||
Subtotal | 681 | 87 | ||||||||||||||||||||||||||||||||||||||
Net investment income | $ | 5,461 | $ | 5,035 | ||||||||||||||||||||||||||||||||||||
__________________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Changes in estimated fair value subsequent to purchase for securities still held as of the end of the respective periods included in net investment income were as follows: | |||||||||||||||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Actively Traded and FVO general account securities | $ | 6 | $ | 11 | ||||||||||||||||||||||||||||||||||||
FVO contractholder-directed unit-linked investments | $ | 536 | $ | (41 | ) | |||||||||||||||||||||||||||||||||||
See “— Variable Interest Entities” for discussion of CSEs. | ||||||||||||||||||||||||||||||||||||||||
FVO and trading securities are primarily comprised of securities for which the FVO has been elected (“FVO Securities”). FVO Securities include certain fixed maturity and equity securities held-for-investment by the general account to support asset and liability management strategies for certain insurance products and investments in certain separate accounts. FVO Securities are primarily comprised of contractholder-directed investments supporting unit-linked variable annuity type liabilities which do not qualify for presentation as separate account summary total assets and liabilities. The investment returns on these investments inure to contractholders and are offset by a corresponding change in policyholder account balances through interest credited to policyholder account balances. FVO Securities also include securities held by CSEs. The Company has a trading securities portfolio, principally invested in fixed maturity securities, to support investment strategies that involve the active and frequent purchase and sale of actively traded securities and the execution of short sale agreements. | ||||||||||||||||||||||||||||||||||||||||
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 | $ | (3 | ) | $ | (7 | ) | ||||||||||||||||||||||||||||||||||
Industrial | (2 | ) | — | |||||||||||||||||||||||||||||||||||||
Total U.S. and foreign corporate securities | (5 | ) | (7 | ) | ||||||||||||||||||||||||||||||||||||
RMBS | (13 | ) | (3 | ) | ||||||||||||||||||||||||||||||||||||
OTTI losses on fixed maturity securities recognized in earnings | (18 | ) | (10 | ) | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities — net gains (losses) on sales and disposals | 151 | 96 | ||||||||||||||||||||||||||||||||||||||
Total gains (losses) on fixed maturity securities | 133 | 86 | ||||||||||||||||||||||||||||||||||||||
Total gains (losses) on equity securities: | ||||||||||||||||||||||||||||||||||||||||
Total OTTI losses recognized — by sector: | ||||||||||||||||||||||||||||||||||||||||
Common stock | — | (1 | ) | |||||||||||||||||||||||||||||||||||||
OTTI losses on equity securities recognized in earnings | — | (1 | ) | |||||||||||||||||||||||||||||||||||||
Equity securities — net gains (losses) on sales and disposals | 8 | 26 | ||||||||||||||||||||||||||||||||||||||
Total gains (losses) on equity securities | 8 | 25 | ||||||||||||||||||||||||||||||||||||||
FVO and trading securities — FVO general account securities | — | 9 | ||||||||||||||||||||||||||||||||||||||
Mortgage loans | (43 | ) | (11 | ) | ||||||||||||||||||||||||||||||||||||
Real estate and real estate joint ventures | 27 | 65 | ||||||||||||||||||||||||||||||||||||||
Other limited partnership interests | 16 | (2 | ) | |||||||||||||||||||||||||||||||||||||
Other investment portfolio gains (losses) | 23 | (4 | ) | |||||||||||||||||||||||||||||||||||||
Subtotal — investment portfolio gains (losses) | 164 | 168 | ||||||||||||||||||||||||||||||||||||||
FVO CSEs: | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | (3 | ) | 1 | |||||||||||||||||||||||||||||||||||||
Long-term debt — related to commercial mortgage loans | 1 | 1 | ||||||||||||||||||||||||||||||||||||||
Non-investment portfolio gains (losses) (1) | 124 | (581 | ) | |||||||||||||||||||||||||||||||||||||
Subtotal FVO CSEs and non-investment portfolio gains (losses) | 122 | (579 | ) | |||||||||||||||||||||||||||||||||||||
Total net investment gains (losses) | $ | 286 | $ | (411 | ) | |||||||||||||||||||||||||||||||||||
__________________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Non-investment portfolio gains (losses) for the three months ended March 31, 2014 includes a loss of $495 million related to the disposition of MetLife Assurance Limited. See Note 3 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report. | |||||||||||||||||||||||||||||||||||||||
See “— Variable Interest Entities” for discussion of CSEs. | ||||||||||||||||||||||||||||||||||||||||
Gains (losses) from foreign currency transactions included within net investment gains (losses) were $161 million and $5 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 | $ | 30,006 | $ | 22,291 | $ | 53 | $ | 101 | ||||||||||||||||||||||||||||||||
Gross investment gains | $ | 338 | $ | 314 | $ | 15 | $ | 27 | ||||||||||||||||||||||||||||||||
Gross investment losses | (187 | ) | (218 | ) | (7 | ) | (1 | ) | ||||||||||||||||||||||||||||||||
OTTI losses | (18 | ) | (10 | ) | — | (1 | ) | |||||||||||||||||||||||||||||||||
Net investment gains (losses) | $ | 133 | $ | 86 | $ | 8 | $ | 25 | ||||||||||||||||||||||||||||||||
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 | $ | 357 | $ | 378 | ||||||||||||||||||||||||||||||||||||
Additions: | ||||||||||||||||||||||||||||||||||||||||
Initial impairments — credit loss OTTI on securities not previously impaired | 2 | — | ||||||||||||||||||||||||||||||||||||||
Additional impairments — credit loss OTTI on securities previously impaired | 11 | 2 | ||||||||||||||||||||||||||||||||||||||
Reductions: | ||||||||||||||||||||||||||||||||||||||||
Sales (maturities, pay downs or prepayments) during the period of securities previously impaired as credit loss OTTI | (13 | ) | (10 | ) | ||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | 357 | $ | 370 | ||||||||||||||||||||||||||||||||||||
Derivatives
Derivatives | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||
Derivatives | 6. 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 | |||||||||||||||||||||||||
• | All derivatives held in relation to trading portfolios | ||||||||||||||||||||||||||
• | Derivatives held within contractholder-directed unit-linked investments | ||||||||||||||||||||||||||
Hedge Accounting | |||||||||||||||||||||||||||
To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows: | |||||||||||||||||||||||||||
• | Fair value hedge (a hedge of the estimated fair value of a recognized asset or liability) - in net derivative gains (losses), consistent with the change in fair value of the hedged item attributable to the designated risk being hedged. | ||||||||||||||||||||||||||
• | Cash flow hedge (a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability) - effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses). | ||||||||||||||||||||||||||
• | Net investment in a foreign operation hedge - effectiveness in OCI, consistent with the translation adjustment for the hedged net investment in the foreign operation; ineffectiveness in net derivative gains (losses). | ||||||||||||||||||||||||||
The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. Accruals on derivatives in net investment hedges are recognized in OCI. | |||||||||||||||||||||||||||
In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness and measurements of ineffectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. | |||||||||||||||||||||||||||
The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. | |||||||||||||||||||||||||||
When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. | |||||||||||||||||||||||||||
When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in net derivative gains (losses). | |||||||||||||||||||||||||||
In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). | |||||||||||||||||||||||||||
Embedded Derivatives | |||||||||||||||||||||||||||
The Company sells variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: | |||||||||||||||||||||||||||
• | the combined instrument is not accounted for in its entirety at 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 7 for information about the fair value hierarchy for derivatives. | |||||||||||||||||||||||||||
Derivative Strategies | |||||||||||||||||||||||||||
The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. The Company uses a variety of strategies to manage these risks, including the use of derivatives. | |||||||||||||||||||||||||||
Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps and structured interest rate swaps to synthetically replicate investment risks and returns which are not readily available in the cash 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, swaptions, futures and forwards. | |||||||||||||||||||||||||||
Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). In an interest rate swap, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. The Company utilizes interest rate swaps in fair value, cash flow and non-qualifying hedging relationships. | |||||||||||||||||||||||||||
The Company uses structured interest rate swaps to synthetically create investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and a cash instrument such as a U.S. Treasury, agency, or other fixed maturity security. Structured interest rate swaps are included in interest rate swaps and are not designated as hedging instruments. | |||||||||||||||||||||||||||
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 exchange rate derivatives, including foreign currency swaps, foreign currency forwards, currency options and exchange-traded currency futures, to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies. The Company also uses foreign currency derivatives to hedge the foreign currency exchange rate risk associated with certain of its net investments in foreign operations. | |||||||||||||||||||||||||||
In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in fair value, cash flow and non-qualifying hedging relationships. | |||||||||||||||||||||||||||
In a foreign currency forward transaction, the Company agrees with another party to deliver a specified amount of an identified currency at a specified future date. The price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company utilizes foreign currency forwards in fair value, net investment in foreign operations and non-qualifying hedging relationships. | |||||||||||||||||||||||||||
The Company enters into currency options that give it the right, but not the obligation, to sell the foreign currency amount in exchange for a functional currency amount within a limited time at a contracted price. The contracts may also be net settled in cash, based on differentials in the foreign currency exchange rate and the strike price. The Company uses currency options to hedge against the foreign currency exposure inherent in certain of its variable annuity products. The Company also uses currency options as an economic hedge of foreign currency exposure related to the Company’s international subsidiaries. The Company utilizes currency options in net investment in foreign operations and non-qualifying hedging relationships. | |||||||||||||||||||||||||||
To a lesser extent, the Company uses exchange-traded currency futures to hedge currency mismatches between assets and liabilities, and to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded currency futures in 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. | |||||||||||||||||||||||||||
The Company also enters into certain purchased and written credit default swaps held in relation to trading portfolios for the purpose of generating profits on short-term differences in price. These credit default swaps are not designated as hedging instruments. | |||||||||||||||||||||||||||
The Company enters into forwards to lock in the price to be paid for forward purchases of certain securities. The price is agreed upon at the time of the contract and payment for the contract is made at a specified future date. When the primary purpose of entering into these transactions is to hedge against the risk of changes in purchase price due to changes in credit spreads, the Company designates these transactions as credit forwards. The Company utilizes credit forwards in cash flow hedging relationships. | |||||||||||||||||||||||||||
Equity Derivatives | |||||||||||||||||||||||||||
The Company uses a variety of equity derivatives to reduce its exposure to equity market risk, including equity index options, equity variance swaps, exchange-traded equity futures and 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 | Estimated Fair Value | Gross | Estimated Fair Value | |||||||||||||||||||||||
Notional | Notional | ||||||||||||||||||||||||||
Amount | Assets | Liabilities | Amount | Assets | Liabilities | ||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||||||||||
Fair value hedges: | |||||||||||||||||||||||||||
Interest rate swaps | Interest rate | $ | 5,975 | $ | 2,296 | $ | 22 | $ | 6,044 | $ | 2,064 | $ | 21 | ||||||||||||||
Foreign currency swaps | Foreign currency exchange rate | 2,699 | 77 | 354 | 2,708 | 65 | 100 | ||||||||||||||||||||
Foreign currency forwards | Foreign currency exchange rate | 2,735 | — | 251 | 2,335 | — | 291 | ||||||||||||||||||||
Subtotal | 11,409 | 2,373 | 627 | 11,087 | 2,129 | 412 | |||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||
Interest rate swaps | Interest rate | 2,927 | 666 | — | 2,560 | 528 | — | ||||||||||||||||||||
Interest rate forwards | Interest rate | 200 | 70 | — | 225 | 63 | — | ||||||||||||||||||||
Foreign currency swaps | Foreign currency exchange rate | 19,897 | 1,139 | 1,508 | 18,325 | 563 | 930 | ||||||||||||||||||||
Subtotal | 23,024 | 1,875 | 1,508 | 21,110 | 1,154 | 930 | |||||||||||||||||||||
Foreign operations hedges: | |||||||||||||||||||||||||||
Foreign currency forwards | Foreign currency exchange rate | 4,306 | 101 | 11 | 4,097 | 295 | 11 | ||||||||||||||||||||
Currency options | Foreign currency exchange rate | 8,233 | 385 | 8 | 6,419 | 415 | — | ||||||||||||||||||||
Subtotal | 12,539 | 486 | 19 | 10,516 | 710 | 11 | |||||||||||||||||||||
Total qualifying hedges | 46,972 | 4,734 | 2,154 | 42,713 | 3,993 | 1,353 | |||||||||||||||||||||
Derivatives Not Designated or Not Qualifying as Hedging Instruments | |||||||||||||||||||||||||||
Interest rate swaps | Interest rate | 91,545 | 5,353 | 2,465 | 93,266 | 4,570 | 2,051 | ||||||||||||||||||||
Interest rate floors | Interest rate | 34,155 | 464 | 172 | 55,645 | 440 | 199 | ||||||||||||||||||||
Interest rate caps | Interest rate | 52,763 | 90 | 1 | 49,128 | 145 | 1 | ||||||||||||||||||||
Interest rate futures | Interest rate | 3,557 | 9 | 6 | 2,707 | 4 | 9 | ||||||||||||||||||||
Interest rate options | Interest rate | 35,261 | 1,666 | 27 | 48,078 | 1,241 | 75 | ||||||||||||||||||||
Synthetic GICs | Interest rate | 4,262 | — | — | 4,298 | — | — | ||||||||||||||||||||
Foreign currency swaps | Foreign currency exchange rate | 11,627 | 855 | 432 | 11,041 | 447 | 385 | ||||||||||||||||||||
Foreign currency forwards | Foreign currency exchange rate | 12,191 | 235 | 387 | 13,206 | 127 | 791 | ||||||||||||||||||||
Currency futures | Foreign currency exchange rate | 1,242 | 1 | 2 | 522 | 2 | — | ||||||||||||||||||||
Currency options | Foreign currency exchange rate | 9,734 | 531 | 295 | 8,324 | 585 | 340 | ||||||||||||||||||||
Credit default swaps — purchased | Credit | 2,711 | 15 | 49 | 2,830 | 8 | 34 | ||||||||||||||||||||
Credit default swaps — written | Credit | 10,206 | 190 | 4 | 10,527 | 181 | 6 | ||||||||||||||||||||
Equity futures | Equity market | 6,248 | 34 | 7 | 6,073 | 65 | 2 | ||||||||||||||||||||
Equity index options | Equity market | 42,751 | 1,411 | 1,079 | 39,345 | 1,426 | 1,036 | ||||||||||||||||||||
Equity variance swaps | Equity market | 24,449 | 192 | 664 | 24,598 | 196 | 639 | ||||||||||||||||||||
TRRs | Equity market | 3,375 | 11 | 78 | 3,297 | 22 | 101 | ||||||||||||||||||||
Total non-designated or non-qualifying derivatives | 346,077 | 11,057 | 5,668 | 372,885 | 9,459 | 5,669 | |||||||||||||||||||||
Total | $ | 393,049 | $ | 15,791 | $ | 7,822 | $ | 415,598 | $ | 13,452 | $ | 7,022 | |||||||||||||||
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) | $ | 848 | $ | 452 | |||||||||||||||||||||||
Embedded derivatives gains (losses) | (27 | ) | (109 | ) | |||||||||||||||||||||||
Total net derivative gains (losses) | $ | 821 | $ | 343 | |||||||||||||||||||||||
__________________ | |||||||||||||||||||||||||||
-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 | $ | 58 | $ | 33 | |||||||||||||||||||||||
Interest credited to policyholder account balances | 2 | 32 | |||||||||||||||||||||||||
Other expenses | (3 | ) | (1 | ) | |||||||||||||||||||||||
Non-qualifying hedges: | |||||||||||||||||||||||||||
Net investment income | (1 | ) | (1 | ) | |||||||||||||||||||||||
Net derivative gains (losses) | 261 | 219 | |||||||||||||||||||||||||
Policyholder benefits and claims | 4 | (8 | ) | ||||||||||||||||||||||||
Total | $ | 321 | $ | 274 | |||||||||||||||||||||||
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 | Net | Policyholder | |||||||||||||||||||||||||
Derivative | Investment | Benefits and | |||||||||||||||||||||||||
Gains (Losses) | Income (1) | Claims (2) | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||
Interest rate derivatives | $ | 552 | $ | — | $ | 11 | |||||||||||||||||||||
Foreign currency exchange rate derivatives | 669 | — | — | ||||||||||||||||||||||||
Credit derivatives — purchased | (11 | ) | (1 | ) | — | ||||||||||||||||||||||
Credit derivatives — written | 3 | 1 | — | ||||||||||||||||||||||||
Equity derivatives | (462 | ) | (4 | ) | (99 | ) | |||||||||||||||||||||
Total | $ | 751 | $ | (4 | ) | $ | (88 | ) | |||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||
Interest rate derivatives | $ | 298 | $ | — | $ | 12 | |||||||||||||||||||||
Foreign currency exchange rate derivatives | 69 | — | — | ||||||||||||||||||||||||
Credit derivatives — purchased | 1 | 1 | — | ||||||||||||||||||||||||
Credit derivatives — written | (9 | ) | — | — | |||||||||||||||||||||||
Equity derivatives | (181 | ) | (6 | ) | (38 | ) | |||||||||||||||||||||
Total | $ | 178 | $ | (5 | ) | $ | (26 | ) | |||||||||||||||||||
__________________ | |||||||||||||||||||||||||||
-1 | Changes in estimated fair value related to economic hedges of equity method investments in joint ventures, derivatives held in relation to trading portfolios and derivatives held within contractholder-directed unit-linked investments. | ||||||||||||||||||||||||||
-2 | Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits. | ||||||||||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||||||||
The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities; and (iii) foreign currency forwards to hedge the foreign currency fair value exposure of foreign currency denominated investments. | |||||||||||||||||||||||||||
The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges within net derivative gains (losses). The following table presents the amount of such net derivative gains (losses): | |||||||||||||||||||||||||||
Derivatives in Fair Value | Hedged Items in Fair Value | Net Derivative | Net Derivative | Ineffectiveness | |||||||||||||||||||||||
Hedging Relationships | Hedging Relationships | Gains (Losses) | Gains (Losses) | Recognized in | |||||||||||||||||||||||
Recognized | Recognized for | Net Derivative | |||||||||||||||||||||||||
for Derivatives | Hedged Items | Gains (Losses) | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||
Interest rate swaps: | Fixed maturity securities | $ | (5 | ) | $ | 7 | $ | 2 | |||||||||||||||||||
Policyholder liabilities (1) | 197 | (198 | ) | (1 | ) | ||||||||||||||||||||||
Foreign currency swaps: | Foreign-denominated fixed maturity securities | 10 | (8 | ) | 2 | ||||||||||||||||||||||
Foreign-denominated policyholder account balances (2) | (249 | ) | 245 | (4 | ) | ||||||||||||||||||||||
Foreign currency forwards: | Foreign-denominated fixed maturity securities | (17 | ) | 16 | (1 | ) | |||||||||||||||||||||
Total | $ | (64 | ) | $ | 62 | $ | (2 | ) | |||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||
Interest rate swaps: | Fixed maturity securities | $ | 1 | $ | 1 | $ | 2 | ||||||||||||||||||||
Policyholder liabilities (1) | 209 | (204 | ) | 5 | |||||||||||||||||||||||
Foreign currency swaps: | Foreign-denominated fixed maturity securities | (4 | ) | 4 | — | ||||||||||||||||||||||
Foreign-denominated policyholder account balances (2) | (27 | ) | 32 | 5 | |||||||||||||||||||||||
Foreign currency forwards: | Foreign-denominated fixed maturity securities | 10 | (9 | ) | 1 | ||||||||||||||||||||||
Total | $ | 189 | $ | (176 | ) | $ | 13 | ||||||||||||||||||||
__________________ | |||||||||||||||||||||||||||
-1 | Fixed rate liabilities reported in policyholder account balances or future policy benefits. | ||||||||||||||||||||||||||
-2 | Fixed rate or floating rate liabilities. | ||||||||||||||||||||||||||
For the Company’s foreign currency forwards, the change in the fair value of the derivative related to the changes in the difference between the spot price and the forward price is excluded from the assessment of hedge effectiveness. For all other derivatives, all components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. For the three months ended March 31, 2015 and March 31, 2014, the component of the change in fair value of derivatives that was excluded from the assessment of hedge effectiveness was ($2) million and $3 million, respectively. | |||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||
The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities; (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments; (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments; and (v) interest rate swaps and interest rate forwards to hedge forecasted fixed-rate borrowings. | |||||||||||||||||||||||||||
In certain instances, the Company discontinued cash flow hedge accounting because the forecasted transactions were no longer probable of occurring. Because certain of the forecasted transactions also were not probable of occurring within two months of the anticipated date, the Company reclassified certain amounts from AOCI into net derivative gains (losses). These amounts were $3 million and ($2) million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||||||||||||||||||
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 six years. | |||||||||||||||||||||||||||
At March 31, 2015 and December 31, 2014, the balance in AOCI associated with cash flow hedges was $2.5 billion and $1.8 billion, 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 equity: | |||||||||||||||||||||||||||
Derivatives in Cash Flow | Amount of Gains | Amount and Location | Amount and Location | ||||||||||||||||||||||||
Hedging Relationships | (Losses) Deferred in | of Gains (Losses) | of Gains (Losses) | ||||||||||||||||||||||||
AOCI on Derivatives | Reclassified from | Recognized in Income | |||||||||||||||||||||||||
AOCI into Income (Loss) | (Loss) on Derivatives | ||||||||||||||||||||||||||
(Effective Portion) | (Effective Portion) | (Ineffective Portion) | |||||||||||||||||||||||||
Net Derivative | Net Investment | Other | Net Derivative | ||||||||||||||||||||||||
Gains (Losses) | Income | Expenses | Gains (Losses) | ||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||
Interest rate swaps | $ | 174 | $ | 5 | $ | 3 | $ | — | $ | 3 | |||||||||||||||||
Interest rate forwards | 15 | 3 | 1 | 1 | — | ||||||||||||||||||||||
Foreign currency swaps | (2 | ) | (567 | ) | — | — | 4 | ||||||||||||||||||||
Credit forwards | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 187 | $ | (559 | ) | $ | 4 | $ | 1 | $ | 7 | ||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||
Interest rate swaps | $ | 228 | $ | 15 | $ | 2 | $ | — | $ | 5 | |||||||||||||||||
Interest rate forwards | 41 | — | 1 | — | 1 | ||||||||||||||||||||||
Foreign currency swaps | 52 | 36 | (1 | ) | 1 | — | |||||||||||||||||||||
Credit forwards | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 321 | $ | 51 | $ | 2 | $ | 1 | $ | 6 | |||||||||||||||||
All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. | |||||||||||||||||||||||||||
At March 31, 2015, $35 million of deferred net gains (losses) on derivatives in AOCI was expected to be reclassified to earnings within the next 12 months. | |||||||||||||||||||||||||||
Hedges of Net Investments in Foreign Operations | |||||||||||||||||||||||||||
The Company uses foreign currency exchange rate derivatives, which may include foreign currency forwards and currency options, to hedge portions of its net investments in foreign operations against adverse movements in exchange rates. The Company measures ineffectiveness on these derivatives based upon the change in forward rates. | |||||||||||||||||||||||||||
When net investments in foreign operations are sold or substantially liquidated, the amounts in AOCI are reclassified to the statement of operations. | |||||||||||||||||||||||||||
The following table presents the effects of derivatives in net investment hedging relationships on the consolidated statements of operations and comprehensive income (loss) and the consolidated statements of equity: | |||||||||||||||||||||||||||
Derivatives in Net Investment Hedging Relationships (1), (2) | Amount of Gains (Losses) Deferred in AOCI | ||||||||||||||||||||||||||
(Effective Portion) | |||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||
Foreign currency forwards | $ | 111 | |||||||||||||||||||||||||
Currency options | (41 | ) | |||||||||||||||||||||||||
Total | $ | 70 | |||||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||
Foreign currency forwards | $ | (34 | ) | ||||||||||||||||||||||||
Currency options | (114 | ) | |||||||||||||||||||||||||
Total | $ | (148 | ) | ||||||||||||||||||||||||
__________________ | |||||||||||||||||||||||||||
-1 | During both the three months ended March 31, 2015 and 2014, there were no sales or substantial liquidations of net investments in foreign operations that would have required the reclassification of gains or losses from AOCI into earnings. | ||||||||||||||||||||||||||
-2 | There was no ineffectiveness recognized for the Company’s hedges of net investments in foreign operations. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. | ||||||||||||||||||||||||||
At March 31, 2015 and December 31, 2014, the cumulative foreign currency translation gain (loss) recorded in AOCI related to hedges of net investments in foreign operations was $1.0 billion and $940 million, respectively. | |||||||||||||||||||||||||||
Credit Derivatives | |||||||||||||||||||||||||||
In connection with synthetically created credit investment transactions and credit default swaps held in relation to the trading portfolio, 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 $10.2 billion and $10.5 billion at March 31, 2015 and December 31, 2014, respectively. 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 $186 million and $175 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 | Estimated | Maximum | Weighted | Estimated | Maximum | Weighted | |||||||||||||||||||||
Credit Obligations (1) | Fair Value | Amount of Future | Average | Fair Value | Amount of Future | Average | |||||||||||||||||||||
of Credit | Payments under | Years to | of Credit | Payments under | Years to | ||||||||||||||||||||||
Default | Credit Default | Maturity (3) | Default | Credit Default | Maturity (3) | ||||||||||||||||||||||
Swaps | Swaps (2) | Swaps | Swaps (2) | ||||||||||||||||||||||||
(In millions) | (In millions) | ||||||||||||||||||||||||||
Aaa/Aa/A | |||||||||||||||||||||||||||
Single name credit default swaps (corporate) | $ | 8 | $ | 636 | 2.3 | $ | 10 | $ | 677 | 2.4 | |||||||||||||||||
Credit default swaps referencing indices | 7 | 1,500 | 2.7 | 10 | 1,700 | 2.6 | |||||||||||||||||||||
Subtotal | 15 | 2,136 | 2.6 | 20 | 2,377 | 2.6 | |||||||||||||||||||||
Baa | |||||||||||||||||||||||||||
Single name credit default swaps (corporate) | 23 | 1,555 | 2.6 | 23 | 1,591 | 2.8 | |||||||||||||||||||||
Credit default swaps referencing indices | 97 | 5,742 | 4.9 | 94 | 5,774 | 4.7 | |||||||||||||||||||||
Subtotal | 120 | 7,297 | 4.4 | 117 | 7,365 | 4.3 | |||||||||||||||||||||
Ba | |||||||||||||||||||||||||||
Single name credit default swaps (corporate) | 1 | 60 | 2.7 | — | 60 | 3 | |||||||||||||||||||||
Credit default swaps referencing indices | — | 100 | 1.8 | (1 | ) | 100 | 2 | ||||||||||||||||||||
Subtotal | 1 | 160 | 2.1 | (1 | ) | 160 | 2.4 | ||||||||||||||||||||
B | |||||||||||||||||||||||||||
Single name credit default swaps (corporate) | — | — | — | — | — | — | |||||||||||||||||||||
Credit default swaps referencing indices | 50 | 613 | 4.7 | 39 | 625 | 4.9 | |||||||||||||||||||||
Subtotal | 50 | 613 | 4.7 | 39 | 625 | 4.9 | |||||||||||||||||||||
Total | $ | 186 | $ | 10,206 | 4 | $ | 175 | $ | 10,527 | 3.9 | |||||||||||||||||
__________________ | |||||||||||||||||||||||||||
-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. | ||||||||||||||||||||||||||
The Company has also entered into credit default swaps to purchase credit protection on certain of the referenced credit obligations in the table above. As a result, the maximum amounts of potential future recoveries available to offset the $10.2 billion and $10.5 billion from the table above were $79 million and $75 million at March 31, 2015 and December 31, 2014, respectively. | |||||||||||||||||||||||||||
Written credit default swaps held in relation to the trading portfolio amounted to $15 million in gross notional amount and $1 million in fair value at both March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||||||
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 7 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) | $ | 14,441 | $ | 6,600 | $ | 12,256 | $ | 6,017 | |||||||||||||||||||
OTC-cleared (1) | 1,558 | 1,230 | 1,380 | 1,054 | |||||||||||||||||||||||
Exchange-traded | 44 | 15 | 71 | 11 | |||||||||||||||||||||||
Total gross estimated fair value of derivatives (1) | 16,043 | 7,845 | 13,707 | 7,082 | |||||||||||||||||||||||
Amounts offset on the consolidated balance sheets | — | — | — | — | |||||||||||||||||||||||
Estimated fair value of derivatives presented on the consolidated balance sheets (1) | 16,043 | 7,845 | 13,707 | 7,082 | |||||||||||||||||||||||
Gross amounts not offset on the consolidated balance sheets: | |||||||||||||||||||||||||||
Gross estimated fair value of derivatives: (2) | |||||||||||||||||||||||||||
OTC-bilateral | (4,980 | ) | (4,980 | ) | (4,082 | ) | (4,082 | ) | |||||||||||||||||||
OTC-cleared | (1,166 | ) | (1,166 | ) | (989 | ) | (989 | ) | |||||||||||||||||||
Exchange-traded | (1 | ) | (1 | ) | (5 | ) | (5 | ) | |||||||||||||||||||
Cash collateral: (3), (4) | |||||||||||||||||||||||||||
OTC-bilateral | (7,076 | ) | (111 | ) | (4,153 | ) | (133 | ) | |||||||||||||||||||
OTC-cleared | (364 | ) | (62 | ) | (386 | ) | (62 | ) | |||||||||||||||||||
Exchange-traded | — | (8 | ) | — | (4 | ) | |||||||||||||||||||||
Securities collateral: (5) | |||||||||||||||||||||||||||
OTC-bilateral | (2,063 | ) | (1,407 | ) | (3,768 | ) | (1,700 | ) | |||||||||||||||||||
OTC-cleared | — | (2 | ) | — | (3 | ) | |||||||||||||||||||||
Exchange-traded | — | (6 | ) | — | (2 | ) | |||||||||||||||||||||
Net amount after application of master netting agreements and collateral | $ | 393 | $ | 102 | $ | 324 | $ | 102 | |||||||||||||||||||
__________________ | |||||||||||||||||||||||||||
-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 $252 million and $255 million, respectively, and derivative liabilities include income or expense accruals reported in accrued investment income or in other liabilities of $23 million and $60 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 $327 million and $263 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 $259 million and $87 million (including $94 million and $36 million off-balance sheet cash collateral held in separate custodial accounts), respectively, and provided excess cash collateral of $240 million and $192 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, 2015 none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At March 31, 2015 and December 31, 2014, the Company received excess securities collateral with an estimated fair value of $384 million and $395 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 $116 million and $117 million, respectively, for its OTC-bilateral derivatives, and $237 million and $199 million, respectively, for its OTC-cleared derivatives, and $212 million and $245 million, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation. | ||||||||||||||||||||||||||
-6 | See Note 5 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 credit-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 credit ratings of the Company and/or 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 credit rating from each of Moody’s and S&P. If a party’s credit ratings were to fall below that specific investment grade credit rating, that party would be in violation of these provisions, and the other party to the derivatives could terminate the transactions and demand immediate settlement and payment based on such party’s reasonable valuation of the derivatives. | |||||||||||||||||||||||||||
The following table presents the estimated fair value of the Company’s OTC-bilateral derivatives that 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 credit rating at the reporting date or if the Company’s credit 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 | Fair Value of Incremental | ||||||||||||||||||||||||||
Collateral Provided | Collateral Provided Upon | ||||||||||||||||||||||||||
Estimated | Fixed Maturity | Cash | One Notch | Downgrade in the Company’s | |||||||||||||||||||||||
Fair Value of | Securities | Downgrade in | Credit Rating to a Level | ||||||||||||||||||||||||
Derivatives in | the Company’s | that Triggers Full Overnight | |||||||||||||||||||||||||
Net Liability | Credit Rating | Collateralization or Termination | |||||||||||||||||||||||||
Position (1) | of the Derivative Position | ||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||
Derivatives subject to credit-contingent provisions | $ | 1,519 | $ | 1,454 | $ | 117 | $ | 4 | $ | 4 | |||||||||||||||||
Derivatives not subject to credit-contingent provisions | 91 | 68 | 2 | — | — | ||||||||||||||||||||||
Total | $ | 1,610 | $ | 1,522 | $ | 119 | $ | 4 | $ | 4 | |||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||
Derivatives subject to credit-contingent provisions | $ | 1,832 | $ | 1,750 | $ | 131 | $ | 5 | $ | 7 | |||||||||||||||||
Derivatives not subject to credit-contingent provisions | 84 | 65 | 2 | — | — | ||||||||||||||||||||||
Total | $ | 1,916 | $ | 1,815 | $ | 133 | $ | 5 | $ | 7 | |||||||||||||||||
__________________ | |||||||||||||||||||||||||||
-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; ceded reinsurance of guaranteed minimum benefits related to certain GMIBs; assumed reinsurance of guaranteed minimum benefits related to GMWBs and GMABs; funding agreements with equity or bond indexed crediting rates; funds withheld on assumed and 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 | $ | 351 | $ | 324 | ||||||||||||||||||||||
Funds withheld on assumed reinsurance | Other invested assets | 56 | 53 | ||||||||||||||||||||||||
Options embedded in debt or equity securities | Investments | (303 | ) | (217 | ) | ||||||||||||||||||||||
Net embedded derivatives within asset host contracts | $ | 104 | $ | 160 | |||||||||||||||||||||||
Net embedded derivatives within liability host contracts: | |||||||||||||||||||||||||||
Direct guaranteed minimum benefits | Policyholder account balances and Future policy benefits | $ | (830 | ) | $ | (1,126 | ) | ||||||||||||||||||||
Assumed guaranteed minimum benefits | Policyholder account balances | 868 | 973 | ||||||||||||||||||||||||
Funds withheld on ceded reinsurance | Other liabilities | 71 | 83 | ||||||||||||||||||||||||
Other | Policyholder account balances | 28 | 24 | ||||||||||||||||||||||||
Net embedded derivatives within liability host contracts | $ | 137 | $ | (46 | ) | ||||||||||||||||||||||
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) | $ | (27 | ) | $ | (109 | ) | |||||||||||||||||||||
Policyholder benefits and claims | $ | 24 | $ | 15 | |||||||||||||||||||||||
__________________ | |||||||||||||||||||||||||||
-1 | The valuation of guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $69 million and $43 million for the three months ended March 31, 2015 and 2014, respectively. |
Fair_Value
Fair Value | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||
Fair Value | 7. 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 | |||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Estimated | ||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||
U.S. corporate | $ | — | $ | 99,014 | $ | 7,321 | $ | 106,335 | |||||||||||||||||||||||||
Foreign corporate | — | 54,086 | 6,408 | 60,494 | |||||||||||||||||||||||||||||
U.S. Treasury and agency | 34,116 | 26,356 | — | 60,472 | |||||||||||||||||||||||||||||
Foreign government | — | 50,977 | 1,384 | 52,361 | |||||||||||||||||||||||||||||
RMBS | 2,597 | 36,642 | 4,545 | 43,784 | |||||||||||||||||||||||||||||
State and political subdivision | — | 15,708 | 2 | 15,710 | |||||||||||||||||||||||||||||
CMBS | — | 12,667 | 644 | 13,311 | |||||||||||||||||||||||||||||
ABS | — | 11,355 | 2,453 | 13,808 | |||||||||||||||||||||||||||||
Total fixed maturity securities | 36,713 | 306,805 | 22,757 | 366,275 | |||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
Common stock | 1,598 | 883 | 94 | 2,575 | |||||||||||||||||||||||||||||
Non-redeemable preferred stock | — | 894 | 244 | 1,138 | |||||||||||||||||||||||||||||
Total equity securities | 1,598 | 1,777 | 338 | 3,713 | |||||||||||||||||||||||||||||
FVO and trading securities: | |||||||||||||||||||||||||||||||||
Actively Traded securities | 48 | 656 | 10 | 714 | |||||||||||||||||||||||||||||
FVO general account securities | 527 | 35 | 89 | 651 | |||||||||||||||||||||||||||||
FVO contractholder-directed unit-linked investments | 11,020 | 3,659 | 412 | 15,091 | |||||||||||||||||||||||||||||
FVO securities held by CSEs | — | 5 | 10 | 15 | |||||||||||||||||||||||||||||
Total FVO and trading securities | 11,595 | 4,355 | 521 | 16,471 | |||||||||||||||||||||||||||||
Short-term investments (1) | 2,621 | 8,673 | 1,358 | 12,652 | |||||||||||||||||||||||||||||
Mortgage loans: | |||||||||||||||||||||||||||||||||
Residential mortgage loans — FVO | — | — | 329 | 329 | |||||||||||||||||||||||||||||
Commercial mortgage loans held by CSEs — FVO | — | 272 | — | 272 | |||||||||||||||||||||||||||||
Total mortgage loans | — | 272 | 329 | 601 | |||||||||||||||||||||||||||||
Other invested assets: | |||||||||||||||||||||||||||||||||
Other investments | 187 | 59 | — | 246 | |||||||||||||||||||||||||||||
Derivative assets: (2) | |||||||||||||||||||||||||||||||||
Interest rate | 9 | 10,535 | 70 | 10,614 | |||||||||||||||||||||||||||||
Foreign currency exchange rate | 1 | 3,295 | 28 | 3,324 | |||||||||||||||||||||||||||||
Credit | — | 194 | 11 | 205 | |||||||||||||||||||||||||||||
Equity market | 34 | 1,279 | 335 | 1,648 | |||||||||||||||||||||||||||||
Total derivative assets | 44 | 15,303 | 444 | 15,791 | |||||||||||||||||||||||||||||
Total other invested assets | 231 | 15,362 | 444 | 16,037 | |||||||||||||||||||||||||||||
Net embedded derivatives within asset host contracts (3) | — | — | 407 | 407 | |||||||||||||||||||||||||||||
Separate account assets (4) | 86,253 | 236,415 | 2,056 | 324,724 | |||||||||||||||||||||||||||||
Total assets | $ | 139,011 | $ | 573,659 | $ | 28,210 | $ | 740,880 | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Derivative liabilities: (2) | |||||||||||||||||||||||||||||||||
Interest rate | $ | 6 | $ | 2,686 | $ | 1 | $ | 2,693 | |||||||||||||||||||||||||
Foreign currency exchange rate | 2 | 3,151 | 95 | 3,248 | |||||||||||||||||||||||||||||
Credit | — | 52 | 1 | 53 | |||||||||||||||||||||||||||||
Equity market | 7 | 1,129 | 692 | 1,828 | |||||||||||||||||||||||||||||
Total derivative liabilities | 15 | 7,018 | 789 | 7,822 | |||||||||||||||||||||||||||||
Net embedded derivatives within liability host contracts (3) | — | 8 | 129 | 137 | |||||||||||||||||||||||||||||
Long-term debt of CSEs — FVO | — | 131 | 12 | 143 | |||||||||||||||||||||||||||||
Trading liabilities (5) | 206 | 46 | — | 252 | |||||||||||||||||||||||||||||
Total liabilities | $ | 221 | $ | 7,203 | $ | 930 | $ | 8,354 | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Estimated | ||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||
U.S. corporate | $ | — | $ | 99,012 | $ | 6,942 | $ | 105,954 | |||||||||||||||||||||||||
Foreign corporate | — | 55,185 | 6,490 | 61,675 | |||||||||||||||||||||||||||||
U.S. Treasury and agency | 36,879 | 24,637 | — | 61,516 | |||||||||||||||||||||||||||||
Foreign government | — | 51,355 | 1,311 | 52,666 | |||||||||||||||||||||||||||||
RMBS | — | 35,463 | 4,383 | 39,846 | |||||||||||||||||||||||||||||
State and political subdivision | — | 15,187 | — | 15,187 | |||||||||||||||||||||||||||||
CMBS | — | 13,567 | 765 | 14,332 | |||||||||||||||||||||||||||||
ABS | — | 12,005 | 2,244 | 14,249 | |||||||||||||||||||||||||||||
Total fixed maturity securities | 36,879 | 306,411 | 22,135 | 365,425 | |||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
Common stock | 1,558 | 863 | 95 | 2,516 | |||||||||||||||||||||||||||||
Non-redeemable preferred stock | — | 865 | 250 | 1,115 | |||||||||||||||||||||||||||||
Total equity securities | 1,558 | 1,728 | 345 | 3,631 | |||||||||||||||||||||||||||||
FVO and trading securities: | |||||||||||||||||||||||||||||||||
Actively Traded securities | 22 | 627 | 5 | 654 | |||||||||||||||||||||||||||||
FVO general account securities | 552 | 57 | 95 | 704 | |||||||||||||||||||||||||||||
FVO contractholder-directed unit-linked investments | 11,064 | 3,797 | 455 | 15,316 | |||||||||||||||||||||||||||||
FVO securities held by CSEs | — | 3 | 12 | 15 | |||||||||||||||||||||||||||||
Total FVO and trading securities | 11,638 | 4,484 | 567 | 16,689 | |||||||||||||||||||||||||||||
Short-term investments (1) | 2,104 | 5,223 | 336 | 7,663 | |||||||||||||||||||||||||||||
Mortgage loans: | |||||||||||||||||||||||||||||||||
Residential mortgage loans — FVO | — | — | 308 | 308 | |||||||||||||||||||||||||||||
Commercial mortgage loans held by CSEs — FVO | — | 280 | — | 280 | |||||||||||||||||||||||||||||
Total mortgage loans | — | 280 | 308 | 588 | |||||||||||||||||||||||||||||
Other invested assets: | |||||||||||||||||||||||||||||||||
Other investments | 203 | 61 | — | 264 | |||||||||||||||||||||||||||||
Derivative assets: (2) | |||||||||||||||||||||||||||||||||
Interest rate | 4 | 8,988 | 63 | 9,055 | |||||||||||||||||||||||||||||
Foreign currency exchange rate | 2 | 2,472 | 25 | 2,499 | |||||||||||||||||||||||||||||
Credit | — | 175 | 14 | 189 | |||||||||||||||||||||||||||||
Equity market | 65 | 1,287 | 357 | 1,709 | |||||||||||||||||||||||||||||
Total derivative assets | 71 | 12,922 | 459 | 13,452 | |||||||||||||||||||||||||||||
Total other invested assets | 274 | 12,983 | 459 | 13,716 | |||||||||||||||||||||||||||||
Net embedded derivatives within asset host contracts (3) | — | — | 377 | 377 | |||||||||||||||||||||||||||||
Separate account assets (4) | 83,533 | 231,539 | 1,922 | 316,994 | |||||||||||||||||||||||||||||
Total assets | $ | 135,986 | $ | 562,648 | $ | 26,449 | $ | 725,083 | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Derivative liabilities: (2) | |||||||||||||||||||||||||||||||||
Interest rate | $ | 9 | $ | 2,347 | $ | — | $ | 2,356 | |||||||||||||||||||||||||
Foreign currency exchange rate | — | 2,755 | 93 | 2,848 | |||||||||||||||||||||||||||||
Credit | — | 38 | 2 | 40 | |||||||||||||||||||||||||||||
Equity market | 2 | 1,112 | 664 | 1,778 | |||||||||||||||||||||||||||||
Total derivative liabilities | 11 | 6,252 | 759 | 7,022 | |||||||||||||||||||||||||||||
Net embedded derivatives within liability host contracts (3) | — | 7 | (53 | ) | (46 | ) | |||||||||||||||||||||||||||
Long-term debt of CSEs — FVO | — | 138 | 13 | 151 | |||||||||||||||||||||||||||||
Trading liabilities (5) | 215 | 24 | — | 239 | |||||||||||||||||||||||||||||
Total liabilities | $ | 226 | $ | 6,421 | $ | 719 | $ | 7,366 | |||||||||||||||||||||||||
__________________ | |||||||||||||||||||||||||||||||||
-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, future policy benefits and other liabilities on the consolidated balance sheets. At March 31, 2015 and December 31, 2014, equity securities also included embedded derivatives of ($303) million and ($217) 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. | ||||||||||||||||||||||||||||||||
-5 | Trading liabilities are presented within other liabilities on the consolidated balance sheets. | ||||||||||||||||||||||||||||||||
The following describes the valuation methodologies used to measure assets and liabilities at fair value. The description includes the valuation techniques and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy. | |||||||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||
Valuation Controls and Procedures | |||||||||||||||||||||||||||||||||
On behalf of the Company’s Chief Investment Officer and Chief Financial Officer, a pricing and valuation committee that is independent of the trading and investing functions and comprised of senior management, provides oversight of control systems and valuation policies for securities, mortgage loans and derivatives. On a quarterly basis, this committee reviews and approves new transaction types and markets, ensures that observable market prices and market-based parameters are used for valuation, wherever possible and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. This committee also provides oversight of the selection of independent third party pricing providers and the controls and procedures to evaluate third party pricing. Periodically, the Chief Accounting Officer reports to the Audit Committee of MetLife, Inc.’s Board of Directors regarding compliance with fair value accounting standards. | |||||||||||||||||||||||||||||||||
The Company reviews its valuation methodologies on an ongoing basis and revises those methodologies when necessary based on changing market conditions. Assurance is gained on the overall reasonableness and consistent application of input assumptions, valuation methodologies and compliance with fair value accounting standards through controls designed to ensure valuations represent an exit price. Several controls are utilized, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, comparing fair value estimates to management’s knowledge of the current market, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. The Company ensures that prices received from independent brokers, also referred to herein as “consensus pricing,” represent a reasonable estimate of fair value by considering such pricing relative to the Company’s knowledge of the current market dynamics and current pricing for similar financial instruments. While independent non-binding broker quotations are utilized, they are not used for a significant portion of the portfolio. For example, fixed maturity securities priced using independent non-binding broker quotations represent less than 1% of the total estimated fair value of fixed maturity securities and 10% 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, Other Investments, Long-term Debt of CSEs — FVO and Trading Liabilities | |||||||||||||||||||||||||||||||||
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 investments in certain separate accounts included in FVO contractholder-directed unit-linked investments, FVO securities held by CSEs, other investments, long-term debt of CSEs — FVO and trading liabilities 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 | Level 3 | |||||||||||||||||||||||||||||||
Observable Inputs | 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, Foreign government and State and political subdivision 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 | Level 3 | |||||||||||||||||||||||||||||||
Observable Inputs | 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 | ||||||||||||||||||||||||||||||||
FVO and trading securities, Short-term investments, and Other invested assets | |||||||||||||||||||||||||||||||||
• | FVO and trading securities, short-term investments and other 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. | • | FVO and trading securities and 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. | ||||||||||||||||||||||||||||||
• | Contractholder-directed unit-linked investments reported within FVO and trading securities include mutual fund interests without readily determinable fair values given prices are not published publicly. Valuation of these mutual funds is based upon quoted prices or reported NAV provided by the fund managers, which were based on observable inputs. | ||||||||||||||||||||||||||||||||
Mortgage Loans — FVO | |||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
Residential mortgage loans — FVO | |||||||||||||||||||||||||||||||||
• | N/A | Valuation Techniques: Principally the market approach, including matrix pricing or other similar techniques. | |||||||||||||||||||||||||||||||
Key Inputs: Inputs that are unobservable or cannot be derived principally from, or corroborated by, observable market data | |||||||||||||||||||||||||||||||||
Separate Account Assets (1) | |||||||||||||||||||||||||||||||||
Mutual funds and hedge 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, hedge funds, other limited partnership interests, short-term investments and cash and cash equivalents. Fixed maturity securities, equity securities, derivatives, short-term investments and cash and cash equivalents are similar in nature to the instruments described under “— Securities, Short-term Investments, Other Investments, Long-term Debt of CSEs — FVO and Trading Liabilities” 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 | Credit | Equity Market | |||||||||||||||||||||||||||||
Exchange Rate | |||||||||||||||||||||||||||||||||
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 (2) | • | currency spot rates | • | recovery rates | • | dividend yield curves | ||||||||||||||||||||||||||
• | cross currency basis curves | • | equity volatility | ||||||||||||||||||||||||||||||
• | currency volatility (2) | ||||||||||||||||||||||||||||||||
Level 3 | • | swap yield curve (1) | • | swap yield curve (1) | • | swap yield curve (1) | • | dividend yield curves (1) | |||||||||||||||||||||||||
• | basis curves (1) | • | basis curves (1) | • | credit curves (1) | • | equity volatility (1) | ||||||||||||||||||||||||||
• | interest rate volatility (1), (2) | • | cross currency basis curves (1) | • | credit spreads | • | correlation between model inputs (2) | ||||||||||||||||||||||||||
• | currency correlation | • | repurchase rates | ||||||||||||||||||||||||||||||
• | currency volatility (2) | • | independent non-binding broker quotations | ||||||||||||||||||||||||||||||
______________ | |||||||||||||||||||||||||||||||||
-1 | Extrapolation beyond the observable limits of the curve(s). | ||||||||||||||||||||||||||||||||
-2 | Option-based only. | ||||||||||||||||||||||||||||||||
Embedded Derivatives | |||||||||||||||||||||||||||||||||
Embedded derivatives principally include certain direct, assumed and ceded variable annuity guarantees, equity or bond indexed crediting rates within certain funding agreements and annuity contracts, and those related to ceded funds withheld on reinsurance. 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 and future policy benefits 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 ceded the risk associated with certain of the GMIBs previously described. These reinsurance agreements contain embedded derivatives which are included within premiums, reinsurance and other receivables on the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses) or policyholder benefits and claims depending on the statement of operations classification of the direct risk. The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. | |||||||||||||||||||||||||||||||||
The estimated fair value of the embedded derivatives within funds withheld related to certain ceded reinsurance is determined based on the change in estimated fair value of the underlying assets held by the Company in a reference portfolio backing the funds withheld liability. The estimated fair value of the underlying assets is determined as previously described in “— Investments — Securities, Short-term Investments, Other Investments, Long-term Debt of CSEs — FVO and Trading Liabilities.” The estimated fair value of these embedded derivatives is included, along with their funds withheld hosts, in other liabilities on the consolidated balance sheets with changes in estimated fair value recorded in net derivative gains (losses). Changes in the credit spreads on the underlying assets, interest rates and market volatility may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income. | |||||||||||||||||||||||||||||||||
The estimated fair value of the embedded equity and bond indexed derivatives contained in certain funding agreements is determined using market standard swap valuation models and observable market inputs, including a nonperformance risk adjustment. The estimated fair value of these embedded derivatives are included, along with their funding agreements host, within policyholder account balances with changes in estimated fair value recorded in net derivative gains (losses). Changes in equity and bond indices, interest rates and the Company’s credit standing may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income. | |||||||||||||||||||||||||||||||||
The Company issues certain annuity contracts which allow the policyholder to participate in returns from equity indices. These equity indexed features are embedded derivatives which are measured at estimated fair value separately from the host fixed annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets. | |||||||||||||||||||||||||||||||||
The estimated fair value of the embedded equity indexed derivatives, based on the present value of future equity returns to the policyholder using actuarial and present value assumptions including expectations concerning policyholder behavior, is calculated by the Company’s actuarial department. The calculation is based on in-force business and uses standard capital market techniques, such as Black-Scholes, to calculate the value of the portion of the embedded derivative for which the terms are set. The portion of the embedded derivative covering the period beyond where terms are set is calculated as the present value of amounts expected to be spent to provide equity indexed returns in those periods. The valuation of these embedded derivatives also includes the establishment of a risk margin, as well as changes in nonperformance risk. | |||||||||||||||||||||||||||||||||
Embedded Derivatives Within Asset and Liability Host Contracts | |||||||||||||||||||||||||||||||||
Level 3 Valuation 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, transfers between Levels 1 and 2 were not significant. For assets and liabilities measured at estimated fair value and still held at December 31, 2014, transfers between Levels 1 and 2 were $160 million. | |||||||||||||||||||||||||||||||||
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 and FVO and trading 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 and short-term investments 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: | |||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | Impact of | |||||||||||||||||||||||||||||||
Increase in Input | |||||||||||||||||||||||||||||||||
on Estimated | |||||||||||||||||||||||||||||||||
Valuation | Significant | Range | Weighted | Range | Weighted | Fair Value (2) | |||||||||||||||||||||||||||
Techniques | Unobservable Inputs | Average (1) | Average (1) | ||||||||||||||||||||||||||||||
Fixed maturity securities (3) | |||||||||||||||||||||||||||||||||
U.S. corporate and foreign corporate | • | Matrix pricing | • | Delta spread adjustments (4) | -45 | - | 240 | 43 | -40 | - | 240 | 46 | Decrease | ||||||||||||||||||||
• | Market pricing | • | Quoted prices (5) | 6 | - | 531 | 122 | — | 750 | 151 | Increase | ||||||||||||||||||||||
• | Consensus pricing | • | Offered quotes (5) | 31 | - | 780 | 242 | 31 | - | 126 | 99 | Increase | |||||||||||||||||||||
Foreign government | • | Market pricing | • | Quoted prices (5) | 72 | - | 195 | 106 | 92 | - | 189 | 106 | Increase | ||||||||||||||||||||
RMBS | • | Market pricing | • | Quoted prices (5) | 22 | - | 120 | 96 | 22 | - | 120 | 97 | Increase (6) | ||||||||||||||||||||
• | Consensus pricing | • | Offered quotes (5) | 30 | - | 114 | 94 | 1 | - | 118 | 93 | Increase (6) | |||||||||||||||||||||
ABS | • | Market pricing | • | Quoted prices (5) | 15 | - | 110 | 100 | 15 | - | 110 | 100 | Increase (6) | ||||||||||||||||||||
• | Consensus pricing | • | Offered quotes (5) | 56 | - | 106 | 99 | 56 | - | 106 | 102 | Increase (6) | |||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||||||
Interest rate | • | Present value techniques | • | Swap yield (7) | 256 | - | 271 | 278 | - | 297 | Increase (12) | ||||||||||||||||||||||
Foreign currency exchange rate | • | Present value techniques | • | Swap yield (7) | -50 | - | 1,597 | 62 | - | 2,430 | Increase (12) | ||||||||||||||||||||||
• | Correlation (8) | 40% | - | 54% | 40% | - | 55% | ||||||||||||||||||||||||||
Credit | • | Present value techniques | • | Credit spreads (9) | 98 | - | 100 | 98 | - | 100 | Decrease (9) | ||||||||||||||||||||||
• | Consensus pricing | • | Offered quotes (10) | ||||||||||||||||||||||||||||||
Equity market | • | Present value techniques or option pricing models | • | Volatility (11) | 11% | - | 28% | 15% | - | 27% | Increase (12) | ||||||||||||||||||||||
• | Correlation (8) | 70% | - | 70% | 70% | - | 70% | ||||||||||||||||||||||||||
Embedded derivatives | |||||||||||||||||||||||||||||||||
Direct and assumed guaranteed minimum benefits | • | Option pricing techniques | • | Mortality rates: | |||||||||||||||||||||||||||||
Ages 0 - 40 | 0% | - | 0.28% | 0% | - | 0.28% | Decrease (13) | ||||||||||||||||||||||||||
Ages 41 - 60 | 0.04% | - | 0.88% | 0.04% | - | 0.88% | Decrease (13) | ||||||||||||||||||||||||||
Ages 61 - 115 | 0.26% | - | 100% | 0.26% | - | 100% | Decrease (13) | ||||||||||||||||||||||||||
• | Lapse rates: | ||||||||||||||||||||||||||||||||
Durations 1 - 10 | 0.50% | - | 100% | 0.50% | - | 100% | Decrease (14) | ||||||||||||||||||||||||||
Durations 11 - 20 | 2% | - | 100% | 2% | - | 100% | Decrease (14) | ||||||||||||||||||||||||||
Durations 21 - 116 | 2% | - | 100% | 2% | - | 100% | Decrease (14) | ||||||||||||||||||||||||||
• | Utilization rates | 0% | - | 30% | 20% | - | 50% | Increase (15) | |||||||||||||||||||||||||
• | Withdrawal rates | 0% | - | 20% | 0% | - | 20% | -16 | |||||||||||||||||||||||||
• | Long-term equity volatilities | 8.88% | - | 33% | 7.30% | - | 33% | Increase (17) | |||||||||||||||||||||||||
• | Nonperformance risk spread | -0.15% | - | 1.00% | -0.35% | - | 0.81% | 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 are based on liability 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 | 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. | ||||||||||||||||||||||||||||||||
-9 | Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. | ||||||||||||||||||||||||||||||||
-10 | At both March 31, 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. | ||||||||||||||||||||||||||||||||
-11 | Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. | ||||||||||||||||||||||||||||||||
-12 | Changes are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. | ||||||||||||||||||||||||||||||||
-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, use the same valuation techniques and significant unobservable inputs as previously described for Level 3 securities. This includes matrix pricing and discounted cash flow methodologies, inputs such as quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2, as well as independent non-binding broker quotations. The residential mortgage loans — FVO and long-term debt of CSEs — FVO are valued using independent non-binding broker quotations and internal models including matrix pricing and discounted cash flow methodologies using current interest rates. 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. | Foreign | U.S. Treasury and Agency | Foreign | RMBS | State and | CMBS | ABS | ||||||||||||||||||||||||||
Corporate | Corporate | Government | Political | ||||||||||||||||||||||||||||||
Subdivision | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 6,942 | $ | 6,490 | $ | — | $ | 1,311 | $ | 4,383 | $ | — | $ | 765 | $ | 2,244 | |||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | — | 9 | — | 4 | 13 | — | — | — | |||||||||||||||||||||||||
Net investment gains (losses) | — | (11 | ) | — | (22 | ) | 2 | — | — | (7 | ) | ||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Policyholder benefits and claims | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
OCI | 57 | (132 | ) | — | 23 | (12 | ) | — | (7 | ) | (11 | ) | |||||||||||||||||||||
Purchases (3) | 431 | 178 | — | 43 | 509 | — | 73 | 868 | |||||||||||||||||||||||||
Sales (3) | (133 | ) | (109 | ) | — | (53 | ) | (240 | ) | — | (119 | ) | (212 | ) | |||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers into Level 3 (4) | 128 | 93 | — | 215 | — | 2 | — | 8 | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | (104 | ) | (110 | ) | — | (137 | ) | (110 | ) | — | (68 | ) | (437 | ) | |||||||||||||||||||
Balance, end of period | $ | 7,321 | $ | 6,408 | $ | — | $ | 1,384 | $ | 4,545 | $ | 2 | $ | 644 | $ | 2,453 | |||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | 6 | $ | — | $ | 3 | $ | 12 | $ | — | $ | — | $ | 1 | |||||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Policyholder benefits and claims | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Equity Securities | FVO and Trading Securities | ||||||||||||||||||||||||||||||||
Common | Non- | Actively | FVO | FVO | FVO | Short-term | Residential | ||||||||||||||||||||||||||
Stock | redeemable | Traded | General | Contractholder- | Securities | Investments | Mortgage | ||||||||||||||||||||||||||
Preferred | Securities | Account | directed | Held by CSEs | Loans - | ||||||||||||||||||||||||||||
Stock | Securities | Unit-linked | FVO | ||||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 95 | $ | 250 | $ | 5 | $ | 95 | $ | 455 | $ | 12 | $ | 336 | $ | 308 | |||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | (18 | ) | — | 1 | 22 | ||||||||||||||||||||||||
Net investment gains (losses) | (1 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Policyholder benefits and claims | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
OCI | 2 | (4 | ) | — | — | — | — | (1 | ) | — | |||||||||||||||||||||||
Purchases (3) | 5 | 4 | 5 | — | 108 | — | 1,332 | 60 | |||||||||||||||||||||||||
Sales (3) | (5 | ) | — | — | (6 | ) | (145 | ) | (1 | ) | (25 | ) | (49 | ) | |||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | (12 | ) | ||||||||||||||||||||||||
Transfers into Level 3 (4) | 1 | — | — | — | 39 | — | — | — | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | (3 | ) | (6 | ) | — | — | (27 | ) | (1 | ) | (285 | ) | — | ||||||||||||||||||||
Balance, end of period | $ | 94 | $ | 244 | $ | 10 | $ | 89 | $ | 412 | $ | 10 | $ | 1,358 | $ | 329 | |||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | (1 | ) | $ | (15 | ) | $ | — | $ | 1 | $ | 22 | |||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Policyholder benefits and claims | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Net Derivatives (6) | |||||||||||||||||||||||||||||||||
Interest | Foreign | Credit | Equity | Net | Separate | Long-term | |||||||||||||||||||||||||||
Rate | Currency | Market | Embedded | Account | Debt of | ||||||||||||||||||||||||||||
Exchange | Derivatives (7) | Assets (8) | CSEs — FVO | ||||||||||||||||||||||||||||||
Rate | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 63 | $ | (68 | ) | $ | 12 | $ | (307 | ) | $ | 430 | $ | 1,922 | $ | (13 | ) | ||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | 36 | — | ||||||||||||||||||||||||||
Net derivative gains (losses) | (1 | ) | (14 | ) | (2 | ) | (52 | ) | 27 | — | — | ||||||||||||||||||||||
Policyholder benefits and claims | — | — | — | 1 | 24 | — | — | ||||||||||||||||||||||||||
OCI | 15 | — | — | — | (2 | ) | — | — | |||||||||||||||||||||||||
Purchases (3) | — | — | — | — | — | 231 | — | ||||||||||||||||||||||||||
Sales (3) | — | — | — | — | — | (127 | ) | — | |||||||||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Settlements (3) | (8 | ) | 15 | — | 1 | (201 | ) | (1 | ) | 1 | |||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | — | 1 | — | ||||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | — | — | — | — | (6 | ) | — | |||||||||||||||||||||||||
Balance, end of period | $ | 69 | $ | (67 | ) | $ | 10 | $ | (357 | ) | $ | 278 | $ | 2,056 | $ | (12 | ) | ||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net derivative gains (losses) | $ | (1 | ) | $ | (11 | ) | $ | (1 | ) | $ | (52 | ) | $ | 22 | $ | — | $ | — | |||||||||||||||
Policyholder benefits and claims | $ | — | $ | — | $ | — | $ | 1 | $ | 25 | $ | — | $ | — | |||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | RMBS | State and | CMBS | ABS | ||||||||||||||||||||||||||
Corporate | Corporate | Treasury | Government | Political | |||||||||||||||||||||||||||||
and Agency | Subdivision | ||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 7,148 | $ | 6,704 | $ | 62 | $ | 2,235 | $ | 2,957 | $ | 10 | $ | 972 | $ | 4,210 | |||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | — | 9 | — | 6 | 10 | — | — | 5 | |||||||||||||||||||||||||
Net investment gains (losses) | (7 | ) | — | — | (6 | ) | 8 | — | 1 | (43 | ) | ||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Policyholder benefits and claims | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
OCI | 160 | 120 | — | 14 | (12 | ) | — | (25 | ) | 75 | |||||||||||||||||||||||
Purchases (3) | 651 | 471 | 25 | 74 | 571 | — | 103 | 652 | |||||||||||||||||||||||||
Sales (3) | (206 | ) | (109 | ) | — | (52 | ) | (192 | ) | — | (155 | ) | (315 | ) | |||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers into Level 3 (4) | 459 | 435 | — | 231 | 147 | 21 | 24 | 578 | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | (827 | ) | (1,129 | ) | (42 | ) | (957 | ) | (50 | ) | (10 | ) | (238 | ) | (2,362 | ) | |||||||||||||||||
Balance, end of period | $ | 7,378 | $ | 6,501 | $ | 45 | $ | 1,545 | $ | 3,439 | $ | 21 | $ | 682 | $ | 2,800 | |||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | 9 | $ | — | $ | 5 | $ | 10 | $ | — | $ | — | $ | — | |||||||||||||||||
Net investment gains (losses) | $ | (7 | ) | $ | — | $ | — | $ | — | $ | (1 | ) | $ | — | $ | — | $ | — | |||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Policyholder benefits and claims | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Equity Securities | FVO and Trading Securities | ||||||||||||||||||||||||||||||||
Common | Non- | Actively | FVO | FVO | FVO Securities | Short-term | Residential | ||||||||||||||||||||||||||
Stock | redeemable | Traded | General | Contractholder- | Held by CSEs | Investments | Mortgage | ||||||||||||||||||||||||||
Preferred | Securities | Account | directed | Loans - FVO | |||||||||||||||||||||||||||||
Stock | Securities | Unit-linked | |||||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 177 | $ | 395 | $ | 12 | $ | 29 | $ | 603 | $ | — | $ | 254 | $ | 338 | |||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | 14 | — | 1 | 3 | |||||||||||||||||||||||||
Net investment gains (losses) | 19 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Policyholder benefits and claims | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
OCI | (8 | ) | 6 | — | — | — | — | (1 | ) | — | |||||||||||||||||||||||
Purchases (3) | 3 | — | 11 | — | 237 | — | 947 | 28 | |||||||||||||||||||||||||
Sales (3) | (26 | ) | — | (5 | ) | — | (300 | ) | (1 | ) | (59 | ) | (5 | ) | |||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | (12 | ) | ||||||||||||||||||||||||
Transfers into Level 3 (4) | 38 | 40 | — | — | 96 | 12 | — | — | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | — | (7 | ) | — | (26 | ) | — | (110 | ) | — | ||||||||||||||||||||||
Balance, end of period | $ | 203 | $ | 441 | $ | 11 | $ | 29 | $ | 624 | $ | 11 | $ | 1,032 | $ | 352 | |||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | $ | 14 | $ | — | $ | 1 | $ | 3 | |||||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Policyholder benefits and claims | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Net Derivatives (6) | |||||||||||||||||||||||||||||||||
Interest | Foreign | Credit | Equity | Net | Separate | Long-term | |||||||||||||||||||||||||||
Rate | Currency | Market | Embedded | Account | Debt of | ||||||||||||||||||||||||||||
Exchange | Derivatives (7) | Assets (8) | CSEs — FVO | ||||||||||||||||||||||||||||||
Rate | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 13 | $ | (11 | ) | $ | 29 | $ | (317 | ) | $ | 1,258 | $ | 1,465 | $ | (28 | ) | ||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | 44 | — | ||||||||||||||||||||||||||
Net derivative gains (losses) | 7 | (1 | ) | (6 | ) | (43 | ) | (95 | ) | — | — | ||||||||||||||||||||||
Policyholder benefits and claims | — | — | — | 4 | 15 | — | — | ||||||||||||||||||||||||||
OCI | 37 | (2 | ) | — | — | (5 | ) | — | — | ||||||||||||||||||||||||
Purchases (3) | — | — | — | — | — | 321 | — | ||||||||||||||||||||||||||
Sales (3) | — | — | — | — | — | (83 | ) | — | |||||||||||||||||||||||||
Issuances (3) | — | — | (3 | ) | — | — | 25 | — | |||||||||||||||||||||||||
Settlements (3) | (1 | ) | 1 | — | — | (193 | ) | (2 | ) | 13 | |||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | — | 18 | — | ||||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | — | — | — | — | (58 | ) | — | |||||||||||||||||||||||||
Balance, end of period | $ | 56 | $ | (13 | ) | $ | 20 | $ | (356 | ) | $ | 980 | $ | 1,730 | $ | (15 | ) | ||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net derivative gains (losses) | $ | 6 | $ | — | $ | (6 | ) | $ | (42 | ) | $ | (94 | ) | $ | — | $ | — | ||||||||||||||||
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), while changes in estimated fair value of residential mortgage loans - FVO are included in net investment income. Lapses associated with net embedded derivatives are included in net derivative gains (losses). | ||||||||||||||||||||||||||||||||
-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 accounted for under the FVO. These assets and liabilities were initially measured at fair value. | |||||||||||||||||||||||||||||||||
Residential Mortgage | Certain Assets | ||||||||||||||||||||||||||||||||
Loans — FVO | and Liabilities | ||||||||||||||||||||||||||||||||
of CSEs — FVO (1) | |||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Unpaid principal balance | $ | 466 | $ | 436 | $ | 218 | $ | 223 | |||||||||||||||||||||||||
Difference between estimated fair value and unpaid principal balance | (137 | ) | (128 | ) | 54 | 57 | |||||||||||||||||||||||||||
Carrying value at estimated fair value | $ | 329 | $ | 308 | $ | 272 | $ | 280 | |||||||||||||||||||||||||
Loans in non-accrual status | $ | 162 | $ | 125 | $ | — | $ | — | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Contractual principal balance | $ | 152 | $ | 159 | |||||||||||||||||||||||||||||
Difference between estimated fair value and contractual principal balance | (9 | ) | (8 | ) | |||||||||||||||||||||||||||||
Carrying value at estimated fair value | $ | 143 | $ | 151 | |||||||||||||||||||||||||||||
__________________ | |||||||||||||||||||||||||||||||||
-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) | $ | 95 | $ | 199 | $ | 4 | $ | — | |||||||||||||||||||||||||
Other limited partnership interests (2) | $ | 22 | $ | 4 | $ | (11 | ) | $ | (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, short-term debt and those short-term investments that are not securities, such as time deposits, and therefore are not included in the three level hierarchy table disclosed in the “ — Recurring Fair Value Measurements” section. The estimated fair value of the excluded financial instruments, which are primarily classified in Level 2 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 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Value | Estimated | ||||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Mortgage loans | $ | 61,808 | $ | — | $ | — | $ | 64,567 | $ | 64,567 | |||||||||||||||||||||||
Policy loans | $ | 11,606 | $ | — | $ | 1,664 | $ | 12,403 | $ | 14,067 | |||||||||||||||||||||||
Real estate joint ventures | $ | 56 | $ | — | $ | — | $ | 136 | $ | 136 | |||||||||||||||||||||||
Other limited partnership interests | $ | 643 | $ | — | $ | — | $ | 834 | $ | 834 | |||||||||||||||||||||||
Other invested assets | $ | 598 | $ | 157 | $ | 41 | $ | 400 | $ | 598 | |||||||||||||||||||||||
Premiums, reinsurance and other receivables | $ | 4,251 | $ | — | $ | 1,904 | $ | 2,447 | $ | 4,351 | |||||||||||||||||||||||
Other assets | $ | 248 | $ | — | $ | 171 | $ | 66 | $ | 237 | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Policyholder account balances | $ | 130,996 | $ | — | $ | — | $ | 136,355 | $ | 136,355 | |||||||||||||||||||||||
Long-term debt | $ | 17,564 | $ | — | $ | 20,042 | $ | — | $ | 20,042 | |||||||||||||||||||||||
Collateral financing arrangements | $ | 4,196 | $ | — | $ | — | $ | 3,958 | $ | 3,958 | |||||||||||||||||||||||
Junior subordinated debt securities | $ | 3,193 | $ | — | $ | 4,353 | $ | — | $ | 4,353 | |||||||||||||||||||||||
Other liabilities | $ | 6,305 | $ | — | $ | 4,984 | $ | 1,323 | $ | 6,307 | |||||||||||||||||||||||
Separate account liabilities | $ | 119,568 | $ | — | $ | 119,568 | $ | — | $ | 119,568 | |||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Value | Estimated | ||||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Mortgage loans | $ | 59,530 | $ | — | $ | — | $ | 62,554 | $ | 62,554 | |||||||||||||||||||||||
Policy loans | $ | 11,618 | $ | — | $ | 1,647 | $ | 12,287 | $ | 13,934 | |||||||||||||||||||||||
Real estate joint ventures | $ | 67 | $ | — | $ | — | $ | 139 | $ | 139 | |||||||||||||||||||||||
Other limited partnership interests | $ | 704 | $ | — | $ | — | $ | 906 | $ | 906 | |||||||||||||||||||||||
Other invested assets | $ | 562 | $ | 172 | $ | 70 | $ | 320 | $ | 562 | |||||||||||||||||||||||
Premiums, reinsurance and other receivables | $ | 3,070 | $ | — | $ | 713 | $ | 2,444 | $ | 3,157 | |||||||||||||||||||||||
Other assets | $ | 251 | $ | — | $ | 175 | $ | 68 | $ | 243 | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Policyholder account balances | $ | 134,219 | $ | — | $ | — | $ | 139,359 | $ | 139,359 | |||||||||||||||||||||||
Long-term debt | $ | 16,128 | $ | — | $ | 18,357 | $ | — | $ | 18,357 | |||||||||||||||||||||||
Collateral financing arrangements | $ | 4,196 | $ | — | $ | — | $ | 3,961 | $ | 3,961 | |||||||||||||||||||||||
Junior subordinated debt securities | $ | 3,193 | $ | — | $ | 4,173 | $ | — | $ | 4,173 | |||||||||||||||||||||||
Other liabilities | $ | 2,544 | $ | — | $ | 1,223 | $ | 1,323 | $ | 2,546 | |||||||||||||||||||||||
Separate account liabilities | $ | 116,665 | $ | — | $ | 116,665 | $ | — | $ | 116,665 | |||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||
Other Invested Assets | |||||||||||||||||||||||||||||||||
These other invested assets are principally comprised of various interest-bearing assets held in foreign subsidiaries and certain amounts due under contractual indemnifications. For the various interest-bearing assets held in foreign subsidiaries, the Company evaluates the specific facts and circumstances of each instrument to determine the appropriate estimated fair values. These estimated fair values were not materially different from the recognized carrying values. | |||||||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||
Other Assets | |||||||||||||||||||||||||||||||||
These other assets are principally comprised of a receivable for cash paid to an unaffiliated financial institution under the MetLife Reinsurance Company of Charleston (“MRC”) collateral financing arrangement described in Note 13 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report. The estimated fair value of the receivable for the cash paid to the unaffiliated financial institution under the MRC collateral financing arrangement is determined by discounting the expected future cash flows using a discount rate that reflects the credit rating of the unaffiliated financial institution. | |||||||||||||||||||||||||||||||||
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 (“TCA”). 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, Collateral Financing Arrangements and Junior Subordinated Debt Securities | |||||||||||||||||||||||||||||||||
The estimated fair values of long-term debt and junior subordinated debt securities are principally determined using market standard valuation methodologies. Capital leases, which are not required to be disclosed at estimated fair value, are excluded from the preceding tables. | |||||||||||||||||||||||||||||||||
Valuations of instruments classified as Level 2 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, call provisions, observable prices and spreads for similar publicly traded or privately traded issues. | |||||||||||||||||||||||||||||||||
Valuations of instruments classified as Level 3 are based primarily on discounted cash flow methodologies that utilize unobservable discount rates that can vary significantly based upon the specific terms of each individual arrangement. The determination of estimated fair values of collateral financing arrangements incorporates valuations obtained from the counterparties to the arrangements as part of the collateral management process. | |||||||||||||||||||||||||||||||||
Other Liabilities | |||||||||||||||||||||||||||||||||
Other liabilities consist primarily of interest and dividends payable, amounts due for securities purchased but not yet settled, funds withheld amounts payable, which are contractually withheld by the Company in accordance with the terms of the reinsurance agreements, and amounts payable under certain assumed reinsurance agreements, which are recorded using the deposit method of accounting. The Company evaluates the specific terms, facts and circumstances of each instrument to determine the appropriate estimated fair values, which are not materially different from the carrying values, with the exception of certain deposit type reinsurance payables. For such payables, the estimated fair value is determined as the present value of expected future cash flows, which are discounted using an interest rate determined to reflect the appropriate credit standing of the assuming counterparty. | |||||||||||||||||||||||||||||||||
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, funding agreements related to group life contracts 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. |
Longterm_Debt
Long-term Debt | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 8. Long-term Debt |
Senior Notes Issuances | |
In March 2015, MetLife, Inc. issued $500 million of senior notes due in March 2025 which bear interest at a fixed rate of 3.00%, payable semi-annually. Also in March 2015, MetLife, Inc. issued $1.0 billion of senior notes due in March 2045 which bear interest at a fixed rate of 4.05%, payable semi-annually. In connection with the issuances, MetLife, Inc. incurred $12 million of related costs which have been capitalized and included in other assets. These costs are being amortized over the terms of the senior notes. |
Equity
Equity | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||
Equity | 9. Equity | |||||||||||||||||||
Common Stock | ||||||||||||||||||||
During the three months ended March 31, 2015, MetLife, Inc. repurchased 19,893,284 shares through open market purchases for $986 million. MetLife, Inc. did not repurchase shares during the three months ended March 31, 2014. | ||||||||||||||||||||
At March 31, 2015, MetLife, Inc. had $275 million remaining under its common stock repurchase authorization. Future common stock repurchases will be dependent upon several factors, including the Company’s capital position, liquidity, financial strength and credit ratings, general market conditions, the market price of MetLife, Inc.’s common stock compared to management’s assessment of the stock’s underlying value and applicable regulatory approvals, as well as other legal and accounting factors. | ||||||||||||||||||||
Stock-Based Compensation Plans | ||||||||||||||||||||
Performance Shares and Performance Units | ||||||||||||||||||||
For outstanding awards granted prior to the January 1, 2013 - December 31, 2015 performance period, vested Performance Shares and Performance Units were or will be multiplied by a performance factor of 0% to 200% based on MetLife, Inc.’s adjusted income, total shareholder return, and performance in change in annual net operating earnings and total shareholder return compared to the performance of its competitors, each measured with respect to the applicable three-year performance period or portions thereof. See also “— Payout of 2012 – 2014 Performance Shares” and “— Payout of 2012 – 2014 Performance Units.” | ||||||||||||||||||||
For outstanding awards granted for the January 1, 2013 – December 31, 2015 and later performance periods, any vested Performance Shares and Performance Units will be multiplied by a performance factor of 0% to 175%. Assuming that MetLife, Inc. has met threshold performance goals related to its adjusted income or total shareholder return, the MetLife, Inc. Compensation Committee will determine the performance factor in its discretion. In doing so, the Compensation Committee may consider MetLife, Inc.’s total shareholder return relative to the performance of its competitors and MetLife, Inc.’s operating return on equity relative to its financial plan. The estimated fair value of Performance Shares and Performance Units will be remeasured each quarter until they become payable. | ||||||||||||||||||||
Beginning in 2015, MetLife, Inc. grants awards under the MetLife, Inc. 2015 Stock and Incentive Compensation Plan (successor to the MetLife, Inc. 2005 Stock and Incentive Compensation Plan) and the MetLife, Inc. 2015 Non-Management Director Stock Compensation Plan (successor to the MetLife, Inc. 2005 Non-Management Director Stock Compensation Plan), each of which was approved by MetLife, Inc. common stockholders in 2014. | ||||||||||||||||||||
Payout of 2012 – 2014 Performance Shares | ||||||||||||||||||||
Final Performance Shares are paid in shares of MetLife, Inc. common stock. The performance factor for the January 1, 2012 – December 31, 2014 performance period was 101%. This factor has been applied to the 1,756,839 Performance Shares associated with that performance period that vested on December 31, 2014 and, as a result, in April 2015, 1,774,407 shares of MetLife, Inc.’s common stock (less withholding for taxes and other items, as applicable) were issued, excluding shares that payees choose to defer. | ||||||||||||||||||||
Payout of 2012 – 2014 Performance Units | ||||||||||||||||||||
Final Performance Units are payable in cash equal to the closing price of MetLife, Inc. common stock on a date following the last day of the three-year performance period. The performance factor for the January 1, 2012 – December 31, 2014 performance period was 101%. This factor has been applied to the 129,734 Performance Units associated with that performance period that vested on December 31, 2014 and, as a result, in April 2015, the cash value of 131,031 units (less withholding for taxes and other items, as applicable) was paid. | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
Information regarding changes in the balances of each component of AOCI attributable to MetLife, Inc., was as follows: | ||||||||||||||||||||
Three Months | ||||||||||||||||||||
Ended | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
Unrealized | Unrealized | Foreign | Defined | Total | ||||||||||||||||
Investment Gains | Gains (Losses) | Currency | Benefit | |||||||||||||||||
(Losses), Net of | on Derivatives | Translation | Plans | |||||||||||||||||
Related Offsets (1) | Adjustments | Adjustment | ||||||||||||||||||
(In millions) | ||||||||||||||||||||
Balance, beginning of period | $ | 15,159 | $ | 1,076 | $ | (3,303 | ) | $ | (2,283 | ) | $ | 10,649 | ||||||||
OCI before reclassifications | 1,626 | 187 | (670 | ) | — | 1,143 | ||||||||||||||
Deferred income tax benefit (expense) | (501 | ) | (66 | ) | (13 | ) | — | (580 | ) | |||||||||||
OCI before reclassifications, net of income tax | 16,284 | 1,197 | (3,986 | ) | (2,283 | ) | 11,212 | |||||||||||||
Amounts reclassified from AOCI | (113 | ) | 554 | — | 57 | 498 | ||||||||||||||
Deferred income tax benefit (expense) | 35 | (196 | ) | — | (20 | ) | (181 | ) | ||||||||||||
Amounts reclassified from AOCI, net of income tax | (78 | ) | 358 | — | 37 | 317 | ||||||||||||||
Balance, end of period | $ | 16,206 | $ | 1,555 | $ | (3,986 | ) | $ | (2,246 | ) | $ | 11,529 | ||||||||
Three Months | ||||||||||||||||||||
Ended | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Unrealized | Unrealized | Foreign | Defined | Total | ||||||||||||||||
Investment Gains | Gains (Losses) | Currency | Benefit | |||||||||||||||||
(Losses), Net of | on Derivatives | Translation | Plans | |||||||||||||||||
Related Offsets (1) | Adjustments | Adjustment | ||||||||||||||||||
(In millions) | ||||||||||||||||||||
Balance, beginning of period | $ | 8,183 | $ | 231 | $ | (1,659 | ) | $ | (1,651 | ) | $ | 5,104 | ||||||||
OCI before reclassifications | 4,852 | 321 | (217 | ) | — | 4,956 | ||||||||||||||
Deferred income tax benefit (expense) | (1,645 | ) | (113 | ) | 33 | — | (1,725 | ) | ||||||||||||
OCI before reclassifications, net of income tax | 11,390 | 439 | (1,843 | ) | (1,651 | ) | 8,335 | |||||||||||||
Amounts reclassified from AOCI | (173 | ) | (54 | ) | — | 45 | (182 | ) | ||||||||||||
Deferred income tax benefit (expense) | 59 | 19 | — | (16 | ) | 62 | ||||||||||||||
Amounts reclassified from AOCI, net of income tax | (114 | ) | (35 | ) | — | 29 | (120 | ) | ||||||||||||
Balance, end of period | $ | 11,276 | $ | 404 | $ | (1,843 | ) | $ | (1,622 | ) | $ | 8,215 | ||||||||
__________________ | ||||||||||||||||||||
-1 | See Note 5 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation. | |||||||||||||||||||
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) | $ | 139 | $ | 112 | Net investment gains (losses) | |||||||||||||||
Net unrealized investment gains (losses) | 40 | 26 | Net investment income | |||||||||||||||||
Net unrealized investment gains (losses) | (66 | ) | 35 | Net derivative gains (losses) | ||||||||||||||||
Net unrealized investment gains (losses), before income tax | 113 | 173 | ||||||||||||||||||
Income tax (expense) benefit | (35 | ) | (59 | ) | ||||||||||||||||
Net unrealized investment gains (losses), net of income tax | $ | 78 | $ | 114 | ||||||||||||||||
Unrealized gains (losses) on derivatives - cash flow hedges: | ||||||||||||||||||||
Interest rate swaps | $ | 5 | $ | 15 | Net derivative gains (losses) | |||||||||||||||
Interest rate swaps | 3 | 2 | Net investment income | |||||||||||||||||
Interest rate forwards | 3 | — | Net derivative gains (losses) | |||||||||||||||||
Interest rate forwards | 1 | 1 | Net investment income | |||||||||||||||||
Interest rate forwards | 1 | — | Other expenses | |||||||||||||||||
Foreign currency swaps | (567 | ) | 36 | Net derivative gains (losses) | ||||||||||||||||
Foreign currency swaps | — | (1 | ) | Net investment income | ||||||||||||||||
Foreign currency swaps | — | 1 | Other expenses | |||||||||||||||||
Gains (losses) on cash flow hedges, before income tax | (554 | ) | 54 | |||||||||||||||||
Income tax (expense) benefit | 196 | (19 | ) | |||||||||||||||||
Gains (losses) on cash flow hedges, net of income tax | $ | (358 | ) | $ | 35 | |||||||||||||||
Defined benefit plans adjustment: (1) | ||||||||||||||||||||
Amortization of net actuarial gains (losses) | $ | (58 | ) | $ | (44 | ) | ||||||||||||||
Amortization of prior service (costs) credit | 1 | (1 | ) | |||||||||||||||||
Amortization of defined benefit plan items, before | (57 | ) | (45 | ) | ||||||||||||||||
income tax | ||||||||||||||||||||
Income tax (expense) benefit | 20 | 16 | ||||||||||||||||||
Amortization of defined benefit plan items, net of income tax | $ | (37 | ) | $ | (29 | ) | ||||||||||||||
Total reclassifications, net of income tax | $ | (317 | ) | $ | 120 | |||||||||||||||
__________________ | ||||||||||||||||||||
-1 | These AOCI components are included in the computation of net periodic benefit costs. See Note 11. |
Other_Expenses
Other Expenses | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Income and Expenses [Abstract] | ||||||||
Other Expenses | 10. Other Expenses | |||||||
Information on other expenses was as follows: | ||||||||
Three Months | ||||||||
Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
(In millions) | ||||||||
Compensation | $ | 1,291 | $ | 1,205 | ||||
Pension, postretirement and postemployment benefit costs | 92 | 120 | ||||||
Commissions | 1,157 | 1,288 | ||||||
Volume-related costs | 242 | 201 | ||||||
Capitalization of DAC | (968 | ) | (1,046 | ) | ||||
Amortization of DAC and VOBA | 1,025 | 1,058 | ||||||
Amortization of negative VOBA | (100 | ) | (115 | ) | ||||
Interest expense on debt | 298 | 312 | ||||||
Premium taxes, licenses and fees | 173 | 225 | ||||||
Professional services | 330 | 321 | ||||||
Rent and related expenses, net of sublease income | 83 | 85 | ||||||
Other | 437 | 509 | ||||||
Total other expenses | $ | 4,060 | $ | 4,163 | ||||
Employee_Benefit_Plans
Employee Benefit Plans | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Employee Benefit Plans | 11. Employee Benefit Plans | |||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefit Plans | ||||||||||||||||||||||||||||||||
Certain subsidiaries sponsor and/or administer various U.S. qualified and non-qualified defined benefit pension plans and other postretirement employee benefit plans covering employees and sales representatives who meet specified eligibility requirements. These subsidiaries also provide certain postemployment benefits and certain postretirement medical and life insurance benefits for retired employees. | ||||||||||||||||||||||||||||||||
The components of net periodic benefit costs were as follows: | ||||||||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Service costs | $ | 54 | $ | 15 | $ | 4 | $ | — | $ | 50 | $ | 20 | $ | 3 | $ | — | ||||||||||||||||
Interest costs | 101 | 4 | 22 | 1 | 109 | 3 | 23 | 1 | ||||||||||||||||||||||||
Expected return on plan assets | (134 | ) | (2 | ) | (20 | ) | — | (119 | ) | (2 | ) | (19 | ) | — | ||||||||||||||||||
Amortization of net actuarial (gains) losses | 47 | 1 | 10 | — | 41 | — | 3 | — | ||||||||||||||||||||||||
Amortization of prior service costs (credit) | — | — | (1 | ) | — | 1 | — | — | — | |||||||||||||||||||||||
Net periodic benefit costs | $ | 68 | $ | 18 | $ | 15 | $ | 1 | $ | 82 | $ | 21 | $ | 10 | $ | 1 | ||||||||||||||||
Earnings_Per_Common_Share
Earnings Per Common Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Common Share | 12. Earnings Per Common Share | |||||||
The following table presents the weighted average shares used in calculating basic earnings per common share and those used in calculating diluted earnings per common share for each income category presented below: | ||||||||
Three Months | ||||||||
Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
(In millions, except share and per share data) | ||||||||
Weighted Average Shares | ||||||||
Weighted average common stock outstanding for basic earnings per common share | 1,125,703,588 | 1,126,922,641 | ||||||
Incremental common shares from assumed: | ||||||||
Stock purchase contracts underlying common equity units | — | 3,385,696 | ||||||
Exercise or issuance of stock-based awards | 10,057,530 | 10,157,701 | ||||||
Weighted average common stock outstanding for diluted earnings per common share | 1,135,761,118 | 1,140,466,038 | ||||||
Income (Loss) from Continuing Operations | ||||||||
Income (loss) from continuing operations, net of income tax | $ | 2,163 | $ | 1,342 | ||||
Less: Income (loss) from continuing operations, net of income tax, attributable to noncontrolling interests | 5 | 11 | ||||||
Less: Preferred stock dividends | 30 | 30 | ||||||
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders | $ | 2,128 | $ | 1,301 | ||||
Basic | $ | 1.89 | $ | 1.15 | ||||
Diluted | $ | 1.87 | $ | 1.14 | ||||
Income (Loss) from Discontinued Operations | ||||||||
Income (loss) from discontinued operations, net of income tax | $ | — | $ | (3 | ) | |||
Less: Income (loss) from discontinued operations, net of income tax, attributable to noncontrolling interests | — | — | ||||||
Income (loss) from discontinued operations, net of income tax, available to MetLife, Inc.’s common shareholders | $ | — | $ | (3 | ) | |||
Basic | $ | — | $ | — | ||||
Diluted | $ | — | $ | — | ||||
Net Income (Loss) | ||||||||
Net income (loss) | $ | 2,163 | $ | 1,339 | ||||
Less: Net income (loss) attributable to noncontrolling interests | 5 | 11 | ||||||
Less: Preferred stock dividends | 30 | 30 | ||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 2,128 | $ | 1,298 | ||||
Basic | $ | 1.89 | $ | 1.15 | ||||
Diluted | $ | 1.87 | $ | 1.14 | ||||
Contingencies_Commitments_and_
Contingencies, Commitments and Guarantees | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies, Commitments and Guarantees | 13. Contingencies, Commitments and Guarantees |
Contingencies | |
Litigation | |
The Company is a defendant in a large number of litigation matters. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience of the Company in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. | |
Due to the vagaries of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time may normally be difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, 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. Liabilities have been established for a number of the matters noted below. It is possible that some of the matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at March 31, 2015. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known to management, management does not believe any such charges are likely to have a material effect on the Company’s financial position. | |
Matters as to Which an Estimate Can Be Made | |
For some of the matters disclosed below, the Company is able to estimate a reasonably possible range of loss. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. As of March 31, 2015, the Company estimates the aggregate range of reasonably possible losses in excess of amounts accrued for these matters to be $0 to $400 million. | |
Matters as to Which an Estimate Cannot Be Made | |
For other matters disclosed below, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. | |
Asbestos-Related Claims | |
MLIC is and has been a defendant in a large number of asbestos-related suits filed primarily in state courts. These suits principally allege that the plaintiff or plaintiffs suffered personal injury resulting from exposure to asbestos and seek both actual and punitive damages. MLIC has never engaged in the business of manufacturing, producing, distributing or selling asbestos or asbestos-containing products nor has MLIC issued liability or workers’ compensation insurance to companies in the business of manufacturing, producing, distributing or selling asbestos or asbestos-containing products. The lawsuits principally have focused on allegations with respect to certain research, publication and other activities of one or more of MLIC’s employees during the period from the 1920’s through approximately the 1950’s and allege that MLIC learned or should have learned of certain health risks posed by asbestos and, among other things, improperly publicized or failed to disclose those health risks. MLIC believes that it should not have legal liability in these cases. The outcome of most asbestos litigation matters, however, is uncertain and can be impacted by numerous variables, including differences in legal rulings in various jurisdictions, the nature of the alleged injury and factors unrelated to the ultimate legal merit of the claims asserted against MLIC. MLIC employs a number of resolution strategies to manage its asbestos loss exposure, including seeking resolution of pending litigation by judicial rulings and settling individual or groups of claims or lawsuits under appropriate circumstances. | |
Claims asserted against MLIC have included negligence, intentional tort and conspiracy concerning the health risks associated with asbestos. MLIC’s defenses (beyond denial of certain factual allegations) include that: (i) MLIC owed no duty to the plaintiffs— it had no special relationship with the plaintiffs and did not manufacture, produce, distribute or sell the asbestos products that allegedly injured plaintiffs; (ii) plaintiffs did not rely on any actions of MLIC; (iii) MLIC’s conduct was not the cause of the plaintiffs’ injuries; (iv) plaintiffs’ exposure occurred after the dangers of asbestos were known; and (v) the applicable time with respect to filing suit has expired. During the course of the litigation, certain trial courts have granted motions dismissing claims against MLIC, while other trial courts have denied MLIC’s motions. There can be no assurance that MLIC will receive favorable decisions on motions in the future. While most cases brought to date have settled, MLIC intends to continue to defend aggressively against claims based on asbestos exposure, including defending claims at trials. | |
As reported in the 2014 Annual Report, MLIC received approximately 4,636 asbestos-related claims in 2014. During the three months ended March 31, 2015 and 2014, MLIC received approximately 1,046 and 1,366 new asbestos-related claims, respectively. See Note 21 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report for historical information concerning asbestos claims and MLIC’s increase in its recorded liability at December 31, 2014. The number of asbestos cases that may be brought, the aggregate amount of any liability that MLIC may incur, and the total amount paid in settlements in any given year are uncertain and may vary significantly from year to year. | |
The ability of MLIC to estimate its ultimate asbestos exposure is subject to considerable uncertainty, and the conditions impacting its liability can be dynamic and subject to change. The availability of reliable data is limited and it is difficult to predict the numerous variables that can affect liability estimates, including the number of future claims, the cost to resolve claims, the disease mix and severity of disease in pending and future claims, the impact of the number of new claims filed in a particular jurisdiction and variations in the law in the jurisdictions in which claims are filed, the possible impact of tort reform efforts, the willingness of courts to allow plaintiffs to pursue claims against MLIC when exposure to asbestos took place after the dangers of asbestos exposure were well known, and the impact of any possible future adverse verdicts and their amounts. | |
The ability to make estimates regarding ultimate asbestos exposure declines significantly as the estimates relate to years further in the future. In the Company’s judgment, there is a future point after which losses cease to be probable and reasonably estimable. It is reasonably possible that the Company’s total exposure to asbestos claims may be materially greater than the asbestos liability currently accrued and that future charges to income may be necessary. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known by management, management does not believe any such charges are likely to have a material effect on the Company’s financial position. | |
The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for asbestos-related claims. MLIC’s recorded asbestos liability is based on its estimation of the following elements, as informed by the facts presently known to it, its understanding of current law and its past experiences: (i) the probable and reasonably estimable liability for asbestos claims already asserted against MLIC, including claims settled but not yet paid; (ii) the probable and reasonably estimable liability for asbestos claims not yet asserted against MLIC, but which MLIC believes are reasonably probable of assertion; and (iii) the legal defense costs associated with the foregoing claims. Significant assumptions underlying MLIC’s analysis of the adequacy of its recorded liability with respect to asbestos litigation include: (i) the number of future claims; (ii) the cost to resolve claims; and (iii) the cost to defend claims. | |
MLIC reevaluates on a quarterly and annual basis its exposure from asbestos litigation, including studying its claims experience, reviewing external literature regarding asbestos claims experience in the United States, assessing relevant trends impacting asbestos liability and considering numerous variables that can affect its asbestos liability exposure on an overall or per claim basis. These variables include bankruptcies of other companies involved in asbestos litigation, legislative and judicial developments, the number of pending claims involving serious disease, the number of new claims filed against it and other defendants and the jurisdictions in which claims are pending. Based upon its reevaluation of its exposure from asbestos litigation, MLIC has updated its liability analysis for asbestos-related claims through March 31, 2015. | |
Regulatory Matters | |
The Company receives and responds to subpoenas or other inquiries from state regulators, including state insurance commissioners; state attorneys general or other state governmental authorities; federal regulators, including the U.S. Securities and Exchange Commission (“SEC”); federal governmental authorities, including congressional committees; and the Financial Industry Regulatory Authority (“FINRA”), as well as from local and national regulators and government authorities in countries outside the United States where MetLife conducts business, seeking a broad range of information. The issues involved in information requests and regulatory matters vary widely. The Company cooperates in these inquiries. | |
Mortgage Regulatory and Law Enforcement Authorities’ Inquiries | |
MetLife, through its affiliate, MetLife Bank, National Association (“MetLife Bank”), was engaged in the origination, sale and servicing of forward and reverse residential mortgage loans since 2008. In 2012, MetLife Bank exited the business of originating residential mortgage loans. In 2012 and 2013, MetLife Bank sold its residential mortgage servicing portfolios, and in 2013 wound down its mortgage servicing business. In August 2013, MetLife Bank merged with and into MetLife Home Loans LLC (“MLHL”), its former subsidiary, with MLHL as the surviving non-bank entity. | |
In May 2013, MetLife Bank received a subpoena from the U.S. Department of Justice requiring production of documents relating to MetLife Bank’s payment of certain foreclosure-related expenses to law firms and business entities affiliated with law firms and relating to MetLife Bank’s supervision of such payments, including expenses submitted to the Federal National Mortgage Association, the Federal Home Loan Mortgage Corp. and the U.S. Department of Housing and Urban Development (“HUD”) for reimbursement. It is possible that various state or federal regulatory and law enforcement authorities may seek monetary penalties from MLHL relating to foreclosure practices. | |
In April and May 2012, MetLife Bank received two subpoenas issued by the Office of Inspector General for HUD regarding Federal Housing Administration (“FHA”) insured loans. In June and September 2012, MetLife Bank received two Civil Investigative Demands that the U.S. Department of Justice issued as part of a False Claims Act investigation of allegations that MetLife Bank had improperly originated and/or underwritten loans insured by the FHA. Under a February 25, 2015 agreement resolving this investigation, MLHL paid $123.5 million and the U.S. Department of Justice released MLHL from False Claims Act liability for FHA claims filed through August 25, 2014. The Company previously accrued the full amount of the settlement payment in its consolidated financial statements. | |
The inquiries and investigations referred to above could adversely affect MetLife’s reputation or result in significant fines, penalties, equitable remedies or other enforcement actions, and result in significant legal costs in responding to governmental investigations or other litigation. Exiting the MetLife Bank businesses may not protect MetLife from inquiries and investigations relating to residential mortgage servicing and foreclosure activities, or any fines, penalties, equitable remedies or enforcement actions that may result, the costs of responding to any such governmental investigations, or other litigation. Management believes that the Company’s consolidated financial statements as a whole will not be materially affected by these regulatory matters. | |
In the Matter of Chemform, Inc. Site, Pompano Beach, Broward County, Florida | |
In July 2010, the Environmental Protection Agency (“EPA”) advised MLIC that it believed payments were due under two settlement agreements, known as “Administrative Orders on Consent,” that New England Mutual Life Insurance Company (“New England Mutual”) signed in 1989 and 1992 with respect to the cleanup of a Superfund site in Florida (the “Chemform Site”). The EPA originally contacted MLIC (as successor to New England Mutual) and a third party in 2001, and advised that they owed additional clean-up costs for the Chemform Site. The matter was not resolved at that time. The EPA is requesting payment of an amount under $1 million from MLIC and such third party for past costs and an additional amount for future environmental testing costs at the Chemform Site. In September 2012, the EPA, MLIC and the third party executed an Administrative Order on Consent under which MLIC and the third party have agreed to be responsible for certain environmental testing at the Chemform site. The Company estimates that its costs for the environmental testing will not exceed $100,000. The September 2012 Administrative Order on Consent does not resolve the EPA’s claim for past clean-up costs. The EPA may seek additional costs if the environmental testing identifies issues. The Company estimates that the aggregate cost to resolve this matter will not exceed $1 million. | |
New York Licensing Inquiry | |
The Company entered into a consent order with the New York State Department of Financial Services (“Department of Financial Services”) to resolve its inquiry into whether American Life Insurance Company (“American Life”) and Delaware American Life Insurance Company (“DelAm”) conducted business in New York without a license and whether representatives acting on behalf of those companies solicited, sold or negotiated insurance products in New York without a license. The Company entered into a deferred prosecution agreement with the District Attorney, New York County, regarding the same conduct. Pursuant to these agreements, in the first quarter of 2014, the Company paid $50 million to the Department of Financial Services and $10 million to the District Attorney, New York County. The Department of Financial Services consent order allows certain activities in New York related to American Life and other entities to continue through June 30, 2015. The Company is seeking legislation to allow for such activities to continue beyond that date. The Company is continuing to cooperate with the New York State Office of the Attorney General Taxpayer Protection Bureau as to its inquiry concerning American Life’s and DelAm’s New York State tax filings. | |
Sales Practices Regulatory Matters | |
Regulatory authorities in a small number of states and FINRA, and occasionally the SEC, have had investigations or inquiries relating to sales of individual life insurance policies or annuities or other products by MLIC, MetLife Insurance Company USA, New England Life Insurance Company (“NELICO”), and General American Life Insurance Company (“GALIC”), and broker-dealer MetLife Securities, Inc. These investigations often focus on the conduct of particular financial services representatives and the sale of unregistered or unsuitable products or the misuse of client assets. Over the past several years, these and a number of investigations by other regulatory authorities were resolved for monetary payments and certain other relief, including restitution payments. The Company may continue to resolve investigations in a similar manner. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for these sales practices-related investigations or inquiries. | |
Unclaimed Property Litigation | |
West Virginia Lawsuits | |
On September 20, 2012, the West Virginia Treasurer filed an action against MLIC in West Virginia state court (West Virginia ex rel. John D. Perdue v. Metropolitan Life Insurance Company, Circuit Court of Putnam County, Civil Action No. 12-C-295) alleging that MLIC 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, November 21, 2012, December 28, 2012, and January 9, 2013, the Treasurer filed substantially identical suits against MetLife Investors USA Insurance Company, NELICO, MetLife Insurance Company of Connecticut and GALIC, respectively. 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. | |
City of Westland Police and Fire Retirement System v. MetLife, Inc., et. al. (S.D.N.Y., filed January 12, 2012) | |
Seeking to represent a class of persons who purchased MetLife, Inc. common shares between February 2, 2010, and October 6, 2011, the plaintiff filed a second amended complaint alleging that MetLife, Inc. and several current and former executive officers of MetLife, Inc. violated the Securities Act of 1933 (“Securities Act”), as well as the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by issuing, or causing MetLife, Inc. to issue, materially false and misleading statements concerning MetLife, Inc.’s potential liability for millions of dollars in insurance benefits that should have been paid to beneficiaries or escheated to the states. Plaintiff seeks unspecified compensatory damages and other relief. The defendants intend to defend this action vigorously. | |
City of Birmingham Retirement and Relief System v. MetLife, Inc., et al. (Circuit Court of Jefferson County, Alabama, filed July 5, 2012) | |
Seeking to represent a class of persons who purchased MetLife, Inc. common equity units in or traceable to a public offering in March 2011, the plaintiff filed an action alleging that MetLife, Inc., certain current and former directors and executive officers of MetLife, Inc., and various underwriters violated several provisions of the Securities Act related to the filing of the registration statement by issuing, or causing MetLife, Inc. to issue, materially false and misleading statements and/or omissions concerning MetLife, Inc.’s potential liability for millions of dollars in insurance benefits that should have been paid to beneficiaries or escheated to the states. Plaintiff seeks unspecified compensatory damages and other relief. On March 31, 2015, a federal court granted plaintiff’s motion to remand this action to state court. The defendants intend to defend this action vigorously. | |
Derivative Actions and Demands | |
Seeking to sue derivatively on behalf of MetLife, Inc., two shareholders commenced separate actions against members of the MetLife, Inc. Board of Directors, alleging that they breached their fiduciary and other duties to the Company. Plaintiffs allege that the defendants failed to ensure that the Company complied with state unclaimed property laws and to ensure that the Company accurately reported its earnings. Plaintiffs allege that because of the defendants’ breaches of duty, MetLife, Inc. has incurred damage to its reputation and has suffered other unspecified damages. The two actions (Mallon v. Kandarian, et al. (S.D.N.Y., filed March 28, 2012) and Martino v. Kandarian, et al. (S.D.N.Y., filed April 19, 2012)) have been consolidated and stayed pending further order of the court. The defendants intend to continue to defend these actions vigorously. | |
Total Control Accounts Litigation | |
MLIC is a defendant in lawsuits related to its use of retained asset accounts, known as TCA, as a settlement option for death benefits. | |
Keife, et al. v. Metropolitan Life Insurance Company (D. Nev., filed in state court on July 30, 2010 and removed to federal court on September 7, 2010); and Simon v. Metropolitan Life Insurance Company (D. Nev., filed November 3, 2011) | |
These putative class action lawsuits, which have been consolidated, raise breach of contract claims arising from MLIC’s use of the TCA to pay life insurance benefits under the Federal Employees’ Group Life Insurance program. On March 8, 2013, the court granted MLIC’s motion for summary judgment. Plaintiffs have appealed that decision to the United States Court of Appeals for the Ninth Circuit. | |
Owens v. Metropolitan Life Insurance Company (N.D. Ga., filed April 17, 2014) | |
This putative class action lawsuit alleges that MLIC’s use of the TCA as the settlement option for life insurance benefits under some group life insurance policies violates MLIC’s fiduciary duties under the Employee Retirement Income Security Act of 1974 (“ERISA”). As damages, plaintiff seeks disgorgement of profits that MLIC realized on accounts owned by members of the putative class. The court denied MLIC’s motion to dismiss the complaint. The Company intends to defend this action vigorously. | |
Reinsurance Litigation | |
Robainas, et al. v. Metropolitan Life Ins. Co. (S.D.N.Y., December 16, 2014) | |
Plaintiffs filed this putative class action lawsuit on behalf of themselves and all persons and entities who, directly or indirectly, purchased, renewed or paid premiums on life insurance policies issued by MLIC from 2009 through 2014 (the “Policies”). Two similar actions were subsequently filed, Yale v. Metropolitan Life Ins. Co. (S.D.N.Y., January 12, 2015) and International Association of Machinists and Aerospace Workers District Lodge 15 v. Metropolitan Life Ins. Co. (E.D.N.Y., February 2, 2015). Both of these actions have been consolidated with the Robainas action. The consolidated complaint alleges that MLIC inadequately disclosed in its statutory annual statements that certain reinsurance transactions with affiliated reinsurance companies were collateralized using “contractual parental guarantees,” and thereby allegedly misrepresented its financial condition and the adequacy of its reserves. The lawsuit seeks recovery under Section 4226 of the New York Insurance Law of a statutory penalty in the amount of the premiums paid for the Policies. MetLife intends to defend this action vigorously. | |
Intoccia v. Metropolitan Life Ins. Co. (S.D.N.Y., April 20, 2015); and Weilert v. Metropolitan Life Ins. Co. (S.D.N.Y., April 30, 2015) | |
Plaintiffs filed these putative class actions on behalf of themselves and all persons and entities who, directly or indirectly, purchased, renewed or paid premiums for Guaranteed Benefits Insurance Riders attached to variable annuity contracts with MLIC from 2009 through 2015 (the “Annuities”). The complaints allege that MLIC inadequately disclosed in its statutory annual statements that certain reinsurance transactions with affiliated reinsurance companies were collateralized using “contractual parental guarantees,” and thereby allegedly misrepresented its financial condition and the adequacy of its reserves. The lawsuits seek recovery under Section 4226 of the New York Insurance Law of a statutory penalty in the amount of the premiums paid for Guaranteed Benefits Insurance Riders attached to the Annuities. MetLife intends to defend these actions vigorously. | |
Other Litigation | |
McGuire v. Metropolitan Life Insurance Company (E.D. Mich., filed February 22, 2012) | |
This lawsuit was filed by the fiduciary for the Union Carbide Employees’ Pension Plan and alleges that MLIC, which issued annuity contracts to fund some of the benefits the Plan provides, engaged in transactions that ERISA prohibits and violated duties under ERISA and federal common law by determining that no dividends were payable with respect to the contracts from and after 1999. On August 8, 2014, the court denied the parties’ motions for summary judgment. The court has not yet set a new trial date. | |
Sun Life Assurance Company of Canada Indemnity Claim | |
In 2006, Sun Life Assurance Company of Canada (“Sun Life”), as successor to the purchaser of MLIC’s Canadian operations, filed a lawsuit in Toronto, seeking a declaration that MLIC remains liable for “market conduct claims” related to certain individual life insurance policies sold by MLIC and that were transferred to Sun Life. Sun Life had asked that the court require MLIC to indemnify Sun Life for these claims pursuant to indemnity provisions in the sale agreement for the sale of MLIC’s Canadian operations entered into in June of 1998. In January 2010, the court found that Sun Life had given timely notice of its claim for indemnification but, because it found that Sun Life had not yet incurred an indemnifiable loss, granted MLIC’s motion for summary judgment. Both parties appealed but subsequently agreed to withdraw the appeal and consider the indemnity claim through arbitration. In September 2010, Sun Life notified MLIC that a purported class action lawsuit was filed against Sun Life in Toronto, Fehr v. Sun Life Assurance Co. (Super. Ct., Ontario, September 2010), alleging sales practices claims regarding the same individual policies sold by MLIC and transferred to Sun Life. An amended class action complaint in that case was served on Sun Life in May 2013, again without naming MLIC as a party. On August 30, 2011, Sun Life notified MLIC that a purported class action lawsuit was filed against Sun Life in Vancouver, Alamwala v. Sun Life Assurance Co. (Sup. Ct., British Columbia, August 2011), alleging sales practices claims regarding certain of the same policies sold by MLIC and transferred to Sun Life. Sun Life contends that MLIC is obligated to indemnify Sun Life for some or all of the claims in these lawsuits. These sales practices cases against Sun Life are ongoing, and the Company is unable to estimate the reasonably possible loss or range of loss arising from this litigation. | |
C-Mart, Inc v. Metropolitan Life Ins. Co., et al. (S.D. Fla., January 10, 2013); Cadenasso v. Metropolitan Life Insurance Co., et al. (N.D. Cal., November 26, 2013, subsequently transferred to S.D. Fla.); and Fauley v. Metropolitan Life Insurance Co., et al. (Circuit Court of the 19th Judicial Circuit, Lake County, Ill., July 3, 2014) | |
Plaintiffs filed these lawsuits against defendants, including MLIC and a former MetLife financial services representative, alleging that the defendants sent unsolicited fax advertisements to plaintiff and others in violation of the Telephone Consumer Protection Act, as amended by the Junk Fax Prevention Act, 47 U.S.C. § 227. The C-Mart and Cadenasso cases were voluntarily dismissed. In the Fauley case, the court in Illinois issued a final order certifying a nationwide settlement class and approving a settlement under which MLIC has agreed to pay up to $23 million to resolve claims as to fax ads sent between August 23, 2008 and August 7, 2014. An objector to the settlement has filed a notice to appeal the approval order. | |
MetLife, Inc. v. Financial Stability Oversight Council (D. D.C., January 13, 2015) | |
MetLife, Inc. filed this action in federal court seeking to overturn the Financial Stability Oversight Council’s designation of MetLife, Inc. as a non-bank SIFI. The suit is brought under the section of the Dodd-Frank Wall Street Reform and Consumer Protection Act providing that a company designated as a non-bank SIFI may petition the federal courts for review, and seeks an order requiring that the final determination be rescinded. | |
Voshall v. Metropolitan Life Ins. Co. (Superior Court of the State of California, County of Los Angeles, April 8, 2015) | |
Plaintiff filed this putative class action lawsuit on behalf of himself and all persons covered under a long-term group disability income insurance policy issued by MLIC to public entities in California between April 8, 2011 and April 8, 2015. Plaintiff alleges that MLIC improperly reduced benefits by including cost of living adjustments and employee paid contributions in the employer retirement benefits and other income that reduces the benefit payable under such policies. Plaintiff asserts causes of action for declaratory relief, violation of the California Business & Professions Code, breach of contract and breach of the implied covenant of good faith and fair dealing. The Company intends to defend this action vigorously. | |
Sales Practices Claims | |
Over the past several years, the Company has faced numerous claims, including class action lawsuits, alleging improper marketing or sales of individual life insurance policies, annuities, mutual funds or other products. Some of the current cases seek substantial damages, including punitive and treble damages and attorneys’ fees. The Company continues to defend vigorously against the claims in these matters. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters. | |
Summary | |
Putative or certified class action litigation and other litigation and claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, mortgage lending bank, employer, investor, investment advisor and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company’s compliance with applicable insurance and other laws and regulations. | |
It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to previously, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Although in light of these considerations it is possible that an adverse outcome in certain cases could have a material effect upon the Company’s financial position, based on information currently known by the Company’s management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company’s 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 $4.7 billion and $4.0 billion at March 31, 2015 and December 31, 2014, respectively. | |
Commitments to Fund Partnership Investments, Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments | |
The Company commits to fund partnership investments and to lend funds under bank credit facilities, bridge loans and private corporate bond investments. The amounts of these unfunded commitments were $6.3 billion and $5.3 billion at March 31, 2015 and December 31, 2014, respectively. |
Subsequent_Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | 14. Subsequent Event |
Common Stock Dividend | |
On April 28, 2015, the MetLife, Inc. Board of Directors declared a second quarter 2015 common stock dividend of $0.375 per share payable on June 12, 2015 to shareholders of record as of May 11, 2015. The Company estimates the aggregate dividend payment will be $420 million. |
Business_Basis_of_Presentation1
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 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 MetLife, Inc.’s Annual Report on Form 10‑K for the year ended December 31, 2014 (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. | ||
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. | |||
The accompanying interim condensed consolidated financial statements include the accounts of MetLife, Inc. and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated. | |||
Closed block assets, liabilities, revenues and expenses are combined on a line-by-line basis with the assets, liabilities, revenues and expenses outside the closed block based on the nature of the particular item. | |||
Fiscal Period | Certain international subsidiaries have a fiscal year cutoff of November 30th. Accordingly, the Company’s interim condensed consolidated financial statements reflect the assets and liabilities of such subsidiaries as of February 28, 2015 and November 30, 2014 and the operating results of such subsidiaries for the three months ended February 28, 2015 and 2014. | ||
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 and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days. | |||
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. During the three months ended March 31, 2015 and 2014, the Company did not have a significant amount of mortgage loans modified in a troubled debt restructuring. | |||
Past Due and Interest Accrual Status of Mortgage Loans | |||
Variable Interest Entities | |||
The Company has invested in certain structured transactions (including CSEs), formed trusts to invest proceeds from certain collateral financing arrangements and has insurance operations 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 | 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 | |
• | All derivatives held in relation to trading portfolios | ||
• | Derivatives held within contractholder-directed unit-linked investments | ||
Hedge Accounting | |||
To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows: | |||
• | Fair value hedge (a hedge of the estimated fair value of a recognized asset or liability) - in net derivative gains (losses), consistent with the change in fair value of the hedged item attributable to the designated risk being hedged. | ||
• | Cash flow hedge (a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability) - effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses). | ||
• | Net investment in a foreign operation hedge - effectiveness in OCI, consistent with the translation adjustment for the hedged net investment in the foreign operation; ineffectiveness in net derivative gains (losses). | ||
The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. Accruals on derivatives in net investment hedges are recognized in OCI. | |||
In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness and measurements of ineffectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. | |||
The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. | |||
When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. | |||
When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in net derivative gains (losses). | |||
In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). | |||
Embedded Derivatives | |||
The Company sells variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: | |||
• | the combined instrument is not accounted for in its entirety at 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. | |||
Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps and structured interest rate swaps to synthetically replicate investment risks and returns which are not readily available in the cash 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; (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities; and (iii) foreign currency forwards to hedge the foreign currency fair value exposure of foreign currency denominated investments. | |||
The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities; (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments; (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments; and (v) interest rate swaps and interest rate forwards to hedge forecasted fixed-rate borrowings. | |||
The Company uses foreign currency exchange rate derivatives, which may include foreign currency forwards and currency options, to hedge portions of its net investments in foreign operations against adverse movements in exchange rates. The Company measures ineffectiveness on these derivatives based upon the change in forward rates. | |||
When net investments in foreign operations are sold or substantially liquidated, the amounts in AOCI are reclassified to the statement of operations. | |||
The Company may be exposed to credit-related losses in the event of nonperformance by counterparties to derivatives. Generally, the current credit exposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements. | |||
Employee Benefit Plans | Certain subsidiaries sponsor and/or administer various U.S. qualified and non-qualified defined benefit pension plans and other postretirement employee benefit plans covering employees and sales representatives who meet specified eligibility requirements. These subsidiaries also provide certain postemployment benefits and certain postretirement medical and life insurance benefits for retired employees. | ||
Closed Block | On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company (“MLIC”) converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance approving MLIC’s plan of reorganization, as amended (the “Plan of Reorganization”). On the Demutualization Date, MLIC established a closed block for the benefit of holders of certain individual life insurance policies of MLIC. | ||
Experience within the closed block, in particular mortality and investment yields, as well as realized and unrealized gains and losses, directly impact the policyholder dividend obligation. Amortization of the closed block DAC, which resides outside of the closed block, is based upon cumulative actual and expected earnings within the closed block. Accordingly, the Company’s net income continues to be sensitive to the actual performance of the closed block. |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information, by Segment | |||||||||||||||||||||||||||||||||||||||||||||
Operating Results | |||||||||||||||||||||||||||||||||||||||||||||
Americas | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | Retail | Group, | Corporate | Latin | Total | Asia | EMEA | Corporate | Total | Adjustments | Total | ||||||||||||||||||||||||||||||||||
Voluntary | Benefit | America | & Other | Consolidated | |||||||||||||||||||||||||||||||||||||||||
& Worksite | Funding | ||||||||||||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||
Premiums | $ | 1,749 | $ | 4,117 | $ | 418 | $ | 699 | $ | 6,983 | $ | 1,752 | $ | 508 | $ | 10 | $ | 9,253 | $ | — | $ | 9,253 | |||||||||||||||||||||||
Universal life and investment-type product policy fees | 1,236 | 188 | 54 | 294 | 1,772 | 397 | 102 | 23 | 2,294 | 100 | 2,394 | ||||||||||||||||||||||||||||||||||
Net investment income | 1,980 | 478 | 1,430 | 218 | 4,106 | 684 | 83 | 109 | 4,982 | 479 | 5,461 | ||||||||||||||||||||||||||||||||||
Other revenues | 251 | 113 | 71 | 10 | 445 | 28 | 10 | 20 | 503 | (8 | ) | 495 | |||||||||||||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | — | — | — | — | 286 | 286 | ||||||||||||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | — | — | 821 | 821 | ||||||||||||||||||||||||||||||||||
Total revenues | 5,216 | 4,896 | 1,973 | 1,221 | 13,306 | 2,861 | 703 | 162 | 17,032 | 1,678 | 18,710 | ||||||||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 2,449 | 3,835 | 991 | 581 | 7,856 | 1,340 | 239 | 12 | 9,447 | 149 | 9,596 | ||||||||||||||||||||||||||||||||||
Interest credited to policyholder account balances | 542 | 37 | 293 | 86 | 958 | 337 | 30 | 6 | 1,331 | 664 | 1,995 | ||||||||||||||||||||||||||||||||||
Capitalization of DAC | (247 | ) | (36 | ) | (6 | ) | (111 | ) | (400 | ) | (435 | ) | (133 | ) | — | (968 | ) | — | (968 | ) | |||||||||||||||||||||||||
Amortization of DAC and VOBA | 375 | 41 | 5 | 78 | 499 | 326 | 128 | — | 953 | 72 | 1,025 | ||||||||||||||||||||||||||||||||||
Amortization of negative VOBA | — | — | — | — | — | (86 | ) | (4 | ) | — | (90 | ) | (10 | ) | (100 | ) | |||||||||||||||||||||||||||||
Interest expense on debt | (1 | ) | — | 1 | — | — | — | — | 297 | 297 | 1 | 298 | |||||||||||||||||||||||||||||||||
Other expenses | 1,176 | 664 | 124 | 425 | 2,389 | 904 | 362 | 145 | 3,800 | 5 | 3,805 | ||||||||||||||||||||||||||||||||||
Total expenses | 4,294 | 4,541 | 1,408 | 1,059 | 11,302 | 2,386 | 622 | 460 | 14,770 | 881 | 15,651 | ||||||||||||||||||||||||||||||||||
Provision for income tax expense (benefit) | 269 | 127 | 196 | 31 | 623 | 148 | 11 | (188 | ) | 594 | 302 | 896 | |||||||||||||||||||||||||||||||||
Operating earnings | $ | 653 | $ | 228 | $ | 369 | $ | 131 | $ | 1,381 | $ | 327 | $ | 70 | $ | (110 | ) | 1,668 | |||||||||||||||||||||||||||
Adjustments to: | |||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 1,678 | ||||||||||||||||||||||||||||||||||||||||||||
Total expenses | (881 | ) | |||||||||||||||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | (302 | ) | |||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | $ | 2,163 | $ | 2,163 | |||||||||||||||||||||||||||||||||||||||||
Operating Results | |||||||||||||||||||||||||||||||||||||||||||||
Americas | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | Retail | Group, | Corporate | Latin | Total | Asia | EMEA | Corporate | Total | Adjustments | Total | ||||||||||||||||||||||||||||||||||
Voluntary | Benefit | America | & Other | Consolidated | |||||||||||||||||||||||||||||||||||||||||
& Worksite | Funding | ||||||||||||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||
Premiums | $ | 1,724 | $ | 4,002 | $ | 301 | $ | 683 | $ | 6,710 | $ | 1,890 | $ | 597 | $ | 20 | $ | 9,217 | $ | 2 | $ | 9,219 | |||||||||||||||||||||||
Universal life and investment-type product policy fees | 1,247 | 177 | 57 | 311 | 1,792 | 389 | 109 | 33 | 2,323 | 98 | 2,421 | ||||||||||||||||||||||||||||||||||
Net investment income | 1,994 | 456 | 1,382 | 297 | 4,129 | 700 | 107 | 149 | 5,085 | (50 | ) | 5,035 | |||||||||||||||||||||||||||||||||
Other revenues | 245 | 107 | 68 | 7 | 427 | 27 | 16 | 21 | 491 | (13 | ) | 478 | |||||||||||||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | — | — | — | — | (411 | ) | (411 | ) | ||||||||||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | — | — | 343 | 343 | ||||||||||||||||||||||||||||||||||
Total revenues | 5,210 | 4,742 | 1,808 | 1,298 | 13,058 | 3,006 | 829 | 223 | 17,116 | (31 | ) | 17,085 | |||||||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 2,407 | 3,781 | 888 | 616 | 7,692 | 1,397 | 261 | 23 | 9,373 | 254 | 9,627 | ||||||||||||||||||||||||||||||||||
Interest credited to policyholder account balances | 555 | 40 | 278 | 98 | 971 | 387 | 34 | 9 | 1,401 | 68 | 1,469 | ||||||||||||||||||||||||||||||||||
Capitalization of DAC | (234 | ) | (34 | ) | (1 | ) | (107 | ) | (376 | ) | (494 | ) | (176 | ) | — | (1,046 | ) | — | (1,046 | ) | |||||||||||||||||||||||||
Amortization of DAC and VOBA | 429 | 36 | 4 | 79 | 548 | 338 | 164 | — | 1,050 | 8 | 1,058 | ||||||||||||||||||||||||||||||||||
Amortization of negative VOBA | — | — | — | — | — | (94 | ) | (9 | ) | — | (103 | ) | (12 | ) | (115 | ) | |||||||||||||||||||||||||||||
Interest expense on debt | — | — | 2 | — | 2 | — | — | 292 | 294 | 18 | 312 | ||||||||||||||||||||||||||||||||||
Other expenses | 1,142 | 628 | 115 | 436 | 2,321 | 991 | 464 | 175 | 3,951 | 3 | 3,954 | ||||||||||||||||||||||||||||||||||
Total expenses | 4,299 | 4,451 | 1,286 | 1,122 | 11,158 | 2,525 | 738 | 499 | 14,920 | 339 | 15,259 | ||||||||||||||||||||||||||||||||||
Provision for income tax expense (benefit) | 275 | 101 | 182 | 18 | 576 | 148 | 20 | (140 | ) | 604 | (120 | ) | 484 | ||||||||||||||||||||||||||||||||
Operating earnings | $ | 636 | $ | 190 | $ | 340 | $ | 158 | $ | 1,324 | $ | 333 | $ | 71 | $ | (136 | ) | 1,592 | |||||||||||||||||||||||||||
Adjustments to: | |||||||||||||||||||||||||||||||||||||||||||||
Total revenues | (31 | ) | |||||||||||||||||||||||||||||||||||||||||||
Total expenses | (339 | ) | |||||||||||||||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 120 | ||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | $ | 1,342 | $ | 1,342 | |||||||||||||||||||||||||||||||||||||||||
The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at: | |||||||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||||||
Retail | $ | 363,783 | $ | 359,188 | |||||||||||||||||||||||||||||||||||||||||
Group, Voluntary & Worksite Benefits | 48,474 | 46,483 | |||||||||||||||||||||||||||||||||||||||||||
Corporate Benefit Funding | 236,925 | 228,543 | |||||||||||||||||||||||||||||||||||||||||||
Latin America | 72,074 | 72,259 | |||||||||||||||||||||||||||||||||||||||||||
Asia | 116,278 | 117,894 | |||||||||||||||||||||||||||||||||||||||||||
EMEA | 27,991 | 29,217 | |||||||||||||||||||||||||||||||||||||||||||
Corporate & Other | 54,265 | 48,753 | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 919,790 | $ | 902,337 | |||||||||||||||||||||||||||||||||||||||||
Insurance_Tables
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: | |||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||
In the | At | In the | At | |||||||||||||
Event of Death | Annuitization | Event of Death | Annuitization | |||||||||||||
(In millions) | ||||||||||||||||
Annuity Contracts (1) | ||||||||||||||||
Variable Annuity Guarantees | ||||||||||||||||
Total contract account value (2) | $ | 197,400 | $ | 99,960 | $ | 196,595 | $ | 99,000 | ||||||||
Separate account value | $ | 165,322 | $ | 96,933 | $ | 163,566 | $ | 95,963 | ||||||||
Net amount at risk (2) | $ | 3,892 | $ | 1,996 | $ | 4,230 | $ | 1,770 | ||||||||
Average attained age of contractholders | 65 years | 66 years | 65 years | 65 years | ||||||||||||
Two Tier and Other Annuities | ||||||||||||||||
Account value | N/A | $ | 939 | N/A | $ | 1,040 | ||||||||||
Net amount at risk | N/A | $ | 301 | N/A | $ | 340 | ||||||||||
Average attained age of contractholders | N/A | 50 years | N/A | 50 years | ||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
Secondary | Paid-Up | Secondary | Paid-Up | |||||||||||||
Guarantees | Guarantees | Guarantees | Guarantees | |||||||||||||
(In millions) | ||||||||||||||||
Universal and Variable Life Contracts (1) | ||||||||||||||||
Account value (general and separate account) | $ | 17,072 | $ | 3,556 | $ | 16,875 | $ | 3,587 | ||||||||
Net amount at risk | $ | 178,870 | $ | 19,980 | $ | 180,069 | $ | 20,344 | ||||||||
Average attained age of policyholders | 56 years | 61 years | 56 years | 61 years | ||||||||||||
__________________ | ||||||||||||||||
-1 | The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. | |||||||||||||||
-2 | Includes amounts, which are not reported on the consolidated balance sheets, from assumed reinsurance of certain variable annuity products from the Company’s former operating joint venture in Japan. |
Closed_Block_Tables
Closed Block (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Closed Block Disclosure [Abstract] | |||||||||
Closed block liabilities and assets | Information regarding the closed block liabilities and assets designated to the closed block was as follows at: | ||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
(In millions) | |||||||||
Closed Block Liabilities | |||||||||
Future policy benefits | $ | 41,481 | $ | 41,667 | |||||
Other policy-related balances | 309 | 265 | |||||||
Policyholder dividends payable | 479 | 461 | |||||||
Policyholder dividend obligation | 3,483 | 3,155 | |||||||
Current income tax payable | 3 | 1 | |||||||
Other liabilities | 482 | 646 | |||||||
Total closed block liabilities | 46,237 | 46,195 | |||||||
Assets Designated to the Closed Block | |||||||||
Investments: | |||||||||
Fixed maturity securities available-for-sale, at estimated fair value | 29,093 | 29,199 | |||||||
Equity securities available-for-sale, at estimated fair value | 98 | 91 | |||||||
Mortgage loans | 6,103 | 6,076 | |||||||
Policy loans | 4,643 | 4,646 | |||||||
Real estate and real estate joint ventures | 651 | 666 | |||||||
Other invested assets | 1,123 | 1,065 | |||||||
Total investments | 41,711 | 41,743 | |||||||
Cash and cash equivalents | 323 | 227 | |||||||
Accrued investment income | 483 | 477 | |||||||
Premiums, reinsurance and other receivables | 78 | 67 | |||||||
Deferred income tax assets | 277 | 289 | |||||||
Total assets designated to the closed block | 42,872 | 42,803 | |||||||
Excess of closed block liabilities over assets designated to the closed block | 3,365 | 3,392 | |||||||
Amounts included in accumulated other comprehensive income (loss) (“AOCI”) | |||||||||
Unrealized investment gains (losses), net of income tax | 2,441 | 2,291 | |||||||
Unrealized gains (losses) on derivatives, net of income tax | 63 | 28 | |||||||
Allocated to policyholder dividend obligation, net of income tax | (2,264 | ) | (2,051 | ) | |||||
Total amounts included in AOCI | 240 | 268 | |||||||
Maximum future earnings to be recognized from closed block assets and liabilities | $ | 3,605 | $ | 3,660 | |||||
Closed block policyholder dividend obligation | Information regarding the closed block policyholder dividend obligation was as follows: | ||||||||
Three Months | Year | ||||||||
Ended | Ended | ||||||||
March 31, 2015 | December 31, 2014 | ||||||||
(In millions) | |||||||||
Balance, beginning of period | $ | 3,155 | $ | 1,771 | |||||
Change in unrealized investment and derivative gains (losses) | 328 | 1,384 | |||||||
Balance, end of period | $ | 3,483 | $ | 3,155 | |||||
Closed block revenues and expenses | Information regarding the closed block revenues and expenses was as follows: | ||||||||
Three Months | |||||||||
Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(In millions) | |||||||||
Revenues | |||||||||
Premiums | $ | 430 | $ | 446 | |||||
Net investment income | 515 | 530 | |||||||
Net investment gains (losses) | (1 | ) | — | ||||||
Net derivative gains (losses) | 25 | (1 | ) | ||||||
Total revenues | 969 | 975 | |||||||
Expenses | |||||||||
Policyholder benefits and claims | 608 | 624 | |||||||
Policyholder dividends | 240 | 233 | |||||||
Other expenses | 37 | 41 | |||||||
Total expenses | 885 | 898 | |||||||
Revenues, net of expenses before provision for income tax expense (benefit) | 84 | 77 | |||||||
Provision for income tax expense (benefit) | 29 | 27 | |||||||
Revenues, net of expenses and provision for income tax expense (benefit) | $ | 55 | $ | 50 | |||||
Investments_Tables
Investments (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Fixed Maturity and Equity Securities Available-for-Sale | 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 | Gross Unrealized | Estimated | Cost or | Gross Unrealized | Estimated | |||||||||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||||||||||||||||
Cost | Gains | Temporary | OTTI | Value | Cost | Gains | Temporary | OTTI | Value | |||||||||||||||||||||||||||||||
Losses | Losses | Losses | Losses | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||
U.S. corporate | $ | 95,661 | $ | 11,231 | $ | 557 | $ | — | $ | 106,335 | $ | 96,235 | $ | 10,343 | $ | 624 | $ | — | $ | 105,954 | ||||||||||||||||||||
Foreign corporate | 56,728 | 4,781 | 1,008 | 7 | 60,494 | 57,695 | 4,651 | 664 | 7 | 61,675 | ||||||||||||||||||||||||||||||
U.S. Treasury and agency | 52,560 | 7,946 | 34 | — | 60,472 | 54,654 | 6,892 | 30 | — | 61,516 | ||||||||||||||||||||||||||||||
Foreign government | 46,384 | 6,106 | 129 | — | 52,361 | 47,327 | 5,500 | 161 | — | 52,666 | ||||||||||||||||||||||||||||||
RMBS | 41,836 | 2,234 | 208 | 78 | 43,784 | 38,064 | 2,102 | 214 | 106 | 39,846 | ||||||||||||||||||||||||||||||
State and political subdivision | 13,293 | 2,445 | 28 | — | 15,710 | 12,922 | 2,291 | 26 | — | 15,187 | ||||||||||||||||||||||||||||||
CMBS (1) | 12,762 | 605 | 57 | (1 | ) | 13,311 | 13,762 | 615 | 46 | (1 | ) | 14,332 | ||||||||||||||||||||||||||||
ABS | 13,685 | 226 | 103 | — | 13,808 | 14,121 | 240 | 112 | — | 14,249 | ||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 332,909 | $ | 35,574 | $ | 2,124 | $ | 84 | $ | 366,275 | $ | 334,780 | $ | 32,634 | $ | 1,877 | $ | 112 | $ | 365,425 | ||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||
Common stock | $ | 2,037 | $ | 563 | $ | 25 | $ | — | $ | 2,575 | $ | 1,990 | $ | 554 | $ | 28 | $ | — | $ | 2,516 | ||||||||||||||||||||
Non-redeemable preferred stock | 1,096 | 86 | 44 | — | 1,138 | 1,086 | 68 | 39 | — | 1,115 | ||||||||||||||||||||||||||||||
Total equity securities | $ | 3,133 | $ | 649 | $ | 69 | $ | — | $ | 3,713 | $ | 3,076 | $ | 622 | $ | 67 | $ | — | $ | 3,631 | ||||||||||||||||||||
__________________ | ||||||||||||||||||||||||||||||||||||||||
-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 | $ | 13,740 | $ | 71,252 | $ | 75,395 | $ | 104,239 | $ | 68,283 | $ | 332,909 | ||||||||||||||||||||||||||||
Estimated fair value | $ | 13,916 | $ | 74,840 | $ | 81,857 | $ | 124,759 | $ | 70,903 | $ | 366,275 | ||||||||||||||||||||||||||||
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 | 31-Dec-14 | |||||||||||||||||||||||||||||||||||||||
Less than 12 Months | Equal to or Greater than 12 Months | Less than 12 Months | Equal to or Greater than 12 Months | |||||||||||||||||||||||||||||||||||||
Estimated | Gross | Estimated | Gross | Estimated | Gross | Estimated | Gross | |||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||||||||||||||
(In millions, except number of securities) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||
U.S. corporate | $ | 8,366 | $ | 322 | $ | 2,545 | $ | 235 | $ | 11,389 | $ | 331 | $ | 4,658 | $ | 293 | ||||||||||||||||||||||||
Foreign corporate | 10,108 | 849 | 1,657 | 166 | 9,410 | 505 | 2,074 | 166 | ||||||||||||||||||||||||||||||||
U.S. Treasury and agency | 4,600 | 31 | 302 | 3 | 8,927 | 12 | 1,314 | 18 | ||||||||||||||||||||||||||||||||
Foreign government | 1,241 | 54 | 435 | 75 | 1,085 | 80 | 630 | 81 | ||||||||||||||||||||||||||||||||
RMBS | 3,276 | 65 | 2,018 | 221 | 4,180 | 92 | 2,534 | 228 | ||||||||||||||||||||||||||||||||
State and political subdivision | 287 | 5 | 109 | 23 | 83 | 1 | 297 | 25 | ||||||||||||||||||||||||||||||||
CMBS | 1,579 | 46 | 362 | 10 | 1,268 | 23 | 934 | 22 | ||||||||||||||||||||||||||||||||
ABS | 3,672 | 67 | 1,384 | 36 | 4,456 | 57 | 1,440 | 55 | ||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 33,129 | $ | 1,439 | $ | 8,812 | $ | 769 | $ | 40,798 | $ | 1,101 | $ | 13,881 | $ | 888 | ||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||
Common stock | $ | 137 | $ | 25 | $ | — | $ | — | $ | 111 | $ | 28 | $ | 1 | $ | — | ||||||||||||||||||||||||
Non-redeemable preferred stock | 37 | 3 | 189 | 41 | 67 | 2 | 192 | 37 | ||||||||||||||||||||||||||||||||
Total equity securities | $ | 174 | $ | 28 | $ | 189 | $ | 41 | $ | 178 | $ | 30 | $ | 193 | $ | 37 | ||||||||||||||||||||||||
Total number of securities in an unrealized loss position | 2,704 | 1,122 | 3,153 | 1,435 | ||||||||||||||||||||||||||||||||||||
Disclosure of Mortgage Loans Net of Valuation Allowance | Mortgage loans are summarized as follows at: | |||||||||||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||||||||||
Carrying | % of | Carrying | % of | |||||||||||||||||||||||||||||||||||||
Value | Total | Value | Total | |||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 42,164 | 67.6 | % | $ | 41,088 | 68.3 | % | ||||||||||||||||||||||||||||||||
Agricultural | 12,333 | 19.8 | 12,378 | 20.6 | ||||||||||||||||||||||||||||||||||||
Residential | 7,626 | 12.2 | 6,369 | 10.6 | ||||||||||||||||||||||||||||||||||||
Subtotal (1) | 62,123 | 99.6 | 59,835 | 99.5 | ||||||||||||||||||||||||||||||||||||
Valuation allowances | (315 | ) | (0.5 | ) | (305 | ) | (0.5 | ) | ||||||||||||||||||||||||||||||||
Subtotal mortgage loans, net | 61,808 | 99.1 | 59,530 | 99 | ||||||||||||||||||||||||||||||||||||
Residential — fair value option (“FVO”) | 329 | 0.5 | 308 | 0.5 | ||||||||||||||||||||||||||||||||||||
Commercial mortgage loans held by CSEs — FVO | 272 | 0.4 | 280 | 0.5 | ||||||||||||||||||||||||||||||||||||
Total mortgage loans, net | $ | 62,409 | 100 | % | $ | 60,118 | 100 | % | ||||||||||||||||||||||||||||||||
__________________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Purchases of mortgage loans were $1.4 billion and $597 million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||||||||||||||||||||||||||||||
Disclosure of mortgage loans held-for-investment and valuation allowances by method of evaluation for credit loss | Mortgage loans by portfolio segment, by method of evaluation of credit loss, impaired mortgage loans including those modified in a troubled debt restructuring, and the related valuation allowances, were as follows at: | |||||||||||||||||||||||||||||||||||||||
Evaluated Individually for Credit Losses | Evaluated Collectively for Credit Losses | Impaired Loans | ||||||||||||||||||||||||||||||||||||||
Impaired Loans with a Valuation Allowance | Impaired Loans without a Valuation Allowance | |||||||||||||||||||||||||||||||||||||||
Unpaid Principal Balance | Recorded | Valuation | Unpaid Principal Balance | Recorded | Recorded | Valuation | Carrying | |||||||||||||||||||||||||||||||||
Investment | Allowances | Investment | Investment | Allowances | Value | |||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 69 | $ | 69 | $ | 20 | $ | 98 | $ | 98 | $ | 41,997 | $ | 205 | $ | 147 | ||||||||||||||||||||||||
Agricultural | 51 | 48 | 2 | 16 | 16 | 12,269 | 37 | 62 | ||||||||||||||||||||||||||||||||
Residential | — | — | — | 62 | 58 | 7,568 | 51 | 58 | ||||||||||||||||||||||||||||||||
Total | $ | 120 | $ | 117 | $ | 22 | $ | 176 | $ | 172 | $ | 61,834 | $ | 293 | $ | 267 | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 75 | $ | 75 | $ | 24 | $ | 101 | $ | 100 | $ | 40,913 | $ | 200 | $ | 151 | ||||||||||||||||||||||||
Agricultural | 51 | 48 | 2 | 14 | 13 | 12,317 | 37 | 59 | ||||||||||||||||||||||||||||||||
Residential | — | — | — | 40 | 37 | 6,332 | 42 | 37 | ||||||||||||||||||||||||||||||||
Total | $ | 126 | $ | 123 | $ | 26 | $ | 155 | $ | 150 | $ | 59,562 | $ | 279 | $ | 247 | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses, Provision for Loss, Net | The changes in the valuation allowance, by portfolio segment, were as follows: | |||||||||||||||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||||||||||
Commercial | Agricultural | Residential | Total | Commercial | Agricultural | Residential | Total | |||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 224 | $ | 39 | $ | 42 | $ | 305 | $ | 258 | $ | 44 | $ | 20 | $ | 322 | ||||||||||||||||||||||||
Provision (release) | 1 | — | 14 | 15 | 1 | (2 | ) | 6 | 5 | |||||||||||||||||||||||||||||||
Charge-offs, net of recoveries | — | — | (5 | ) | (5 | ) | — | — | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||
Balance, end of period | $ | 225 | $ | 39 | $ | 51 | $ | 315 | $ | 259 | $ | 42 | $ | 25 | $ | 326 | ||||||||||||||||||||||||
Schedule of Financing Receivables, Non Accrual Status | The past due and accrual status of mortgage loans at recorded investment, prior to valuation allowances, by portfolio segment, were as follows at: | |||||||||||||||||||||||||||||||||||||||
Past Due | Nonaccrual Status | |||||||||||||||||||||||||||||||||||||||
March 31, 2015 | 31-Dec-14 | March 31, 2015 | 31-Dec-14 | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 10 | $ | 10 | $ | 69 | $ | 75 | ||||||||||||||||||||||||||||||||
Agricultural | 26 | 1 | 46 | 41 | ||||||||||||||||||||||||||||||||||||
Residential | 197 | 173 | 188 | 163 | ||||||||||||||||||||||||||||||||||||
Total | $ | 233 | $ | 184 | $ | 303 | $ | 279 | ||||||||||||||||||||||||||||||||
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 | $ | 33,080 | $ | 30,367 | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities with noncredit OTTI losses in AOCI | (84 | ) | (112 | ) | ||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 32,996 | 30,255 | ||||||||||||||||||||||||||||||||||||||
Equity securities | 678 | 608 | ||||||||||||||||||||||||||||||||||||||
Derivatives | 2,502 | 1,761 | ||||||||||||||||||||||||||||||||||||||
Other | 159 | 149 | ||||||||||||||||||||||||||||||||||||||
Subtotal | 36,335 | 32,773 | ||||||||||||||||||||||||||||||||||||||
Amounts allocated from: | ||||||||||||||||||||||||||||||||||||||||
Future policy benefits | (3,742 | ) | (2,886 | ) | ||||||||||||||||||||||||||||||||||||
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | (1 | ) | (4 | ) | ||||||||||||||||||||||||||||||||||||
DAC, VOBA and DSI | (2,062 | ) | (1,946 | ) | ||||||||||||||||||||||||||||||||||||
Policyholder dividend obligation | (3,483 | ) | (3,155 | ) | ||||||||||||||||||||||||||||||||||||
Subtotal | (9,288 | ) | (7,991 | ) | ||||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | 31 | 42 | ||||||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) | (9,273 | ) | (8,556 | ) | ||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) | 17,805 | 16,268 | ||||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) attributable to noncontrolling interests | (44 | ) | (33 | ) | ||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) attributable to MetLife, Inc. | $ | 17,761 | $ | 16,235 | ||||||||||||||||||||||||||||||||||||
Other than temporary impairment, credit losses recognized earnings | The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows: | |||||||||||||||||||||||||||||||||||||||
Three Months | Year | |||||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | (112 | ) | $ | (218 | ) | ||||||||||||||||||||||||||||||||||
Noncredit OTTI losses and subsequent changes recognized | 10 | 17 | ||||||||||||||||||||||||||||||||||||||
Securities sold with previous noncredit OTTI loss | 12 | 53 | ||||||||||||||||||||||||||||||||||||||
Subsequent changes in estimated fair value | 6 | 36 | ||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | (84 | ) | $ | (112 | ) | ||||||||||||||||||||||||||||||||||
The changes in net unrealized investment gains (losses) were as follows: | ||||||||||||||||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 16,235 | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities on which noncredit OTTI losses have been recognized | 28 | |||||||||||||||||||||||||||||||||||||||
Unrealized investment gains (losses) during the period | 3,534 | |||||||||||||||||||||||||||||||||||||||
Unrealized investment gains (losses) relating to: | ||||||||||||||||||||||||||||||||||||||||
Future policy benefits | (856 | ) | ||||||||||||||||||||||||||||||||||||||
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | 3 | |||||||||||||||||||||||||||||||||||||||
DAC, VOBA and DSI | (116 | ) | ||||||||||||||||||||||||||||||||||||||
Policyholder dividend obligation | (328 | ) | ||||||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | (11 | ) | ||||||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) | (717 | ) | ||||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) | 17,772 | |||||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) attributable to noncontrolling interests | (11 | ) | ||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | 17,761 | ||||||||||||||||||||||||||||||||||||||
Change in net unrealized investment gains (losses) | $ | 1,537 | ||||||||||||||||||||||||||||||||||||||
Change in net unrealized investment gains (losses) attributable to noncontrolling interests | (11 | ) | ||||||||||||||||||||||||||||||||||||||
Change in net unrealized investment gains (losses) attributable to MetLife, Inc. | $ | 1,526 | ||||||||||||||||||||||||||||||||||||||
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 | $ | 25,933 | $ | 26,989 | ||||||||||||||||||||||||||||||||||||
Estimated fair value | $ | 29,358 | $ | 30,269 | ||||||||||||||||||||||||||||||||||||
Cash collateral on deposit from counterparties (2) | $ | 29,804 | $ | 30,826 | ||||||||||||||||||||||||||||||||||||
Security collateral on deposit from counterparties (3) | $ | 170 | $ | 83 | ||||||||||||||||||||||||||||||||||||
Reinvestment portfolio — estimated fair value | $ | 30,350 | $ | 31,314 | ||||||||||||||||||||||||||||||||||||
_________________ | ||||||||||||||||||||||||||||||||||||||||
-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) | $ | 9,544 | $ | 9,437 | ||||||||||||||||||||||||||||||||||||
Invested assets held in trust (collateral financing arrangements and reinsurance agreements) | 10,491 | 10,069 | ||||||||||||||||||||||||||||||||||||||
Invested assets pledged as collateral (1) | 26,061 | 25,996 | ||||||||||||||||||||||||||||||||||||||
Total invested assets on deposit, held in trust and pledged as collateral | $ | 46,096 | $ | 45,502 | ||||||||||||||||||||||||||||||||||||
__________________ | ||||||||||||||||||||||||||||||||||||||||
-1 | The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Notes 4 and 12 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report), collateral financing arrangements (see Note 13 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report) and derivative transactions (see Note 7). | |||||||||||||||||||||||||||||||||||||||
The Components of Net Investment Income | The components of net investment income were as follows: | |||||||||||||||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Investment income: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 3,541 | $ | 3,653 | ||||||||||||||||||||||||||||||||||||
Equity securities | 31 | 30 | ||||||||||||||||||||||||||||||||||||||
FVO and trading securities — Actively Traded and FVO general account securities (1) | 37 | 37 | ||||||||||||||||||||||||||||||||||||||
Mortgage loans | 730 | 709 | ||||||||||||||||||||||||||||||||||||||
Policy loans | 152 | 157 | ||||||||||||||||||||||||||||||||||||||
Real estate and real estate joint ventures | 211 | 217 | ||||||||||||||||||||||||||||||||||||||
Other limited partnership interests | 215 | 329 | ||||||||||||||||||||||||||||||||||||||
Cash, cash equivalents and short-term investments | 35 | 47 | ||||||||||||||||||||||||||||||||||||||
Operating joint ventures | 8 | — | ||||||||||||||||||||||||||||||||||||||
Other | 122 | 45 | ||||||||||||||||||||||||||||||||||||||
Subtotal | 5,082 | 5,224 | ||||||||||||||||||||||||||||||||||||||
Less: Investment expenses | 302 | 276 | ||||||||||||||||||||||||||||||||||||||
Subtotal, net | 4,780 | 4,948 | ||||||||||||||||||||||||||||||||||||||
FVO and trading securities — FVO contractholder-directed unit-linked investments (1) | 677 | 65 | ||||||||||||||||||||||||||||||||||||||
FVO CSEs — interest income: | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | 4 | 22 | ||||||||||||||||||||||||||||||||||||||
Subtotal | 681 | 87 | ||||||||||||||||||||||||||||||||||||||
Net investment income | $ | 5,461 | $ | 5,035 | ||||||||||||||||||||||||||||||||||||
__________________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Changes in estimated fair value subsequent to purchase for securities still held as of the end of the respective periods included in net investment income were as follows: | |||||||||||||||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Actively Traded and FVO general account securities | $ | 6 | $ | 11 | ||||||||||||||||||||||||||||||||||||
FVO contractholder-directed unit-linked investments | $ | 536 | $ | (41 | ) | |||||||||||||||||||||||||||||||||||
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 | $ | (3 | ) | $ | (7 | ) | ||||||||||||||||||||||||||||||||||
Industrial | (2 | ) | — | |||||||||||||||||||||||||||||||||||||
Total U.S. and foreign corporate securities | (5 | ) | (7 | ) | ||||||||||||||||||||||||||||||||||||
RMBS | (13 | ) | (3 | ) | ||||||||||||||||||||||||||||||||||||
OTTI losses on fixed maturity securities recognized in earnings | (18 | ) | (10 | ) | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities — net gains (losses) on sales and disposals | 151 | 96 | ||||||||||||||||||||||||||||||||||||||
Total gains (losses) on fixed maturity securities | 133 | 86 | ||||||||||||||||||||||||||||||||||||||
Total gains (losses) on equity securities: | ||||||||||||||||||||||||||||||||||||||||
Total OTTI losses recognized — by sector: | ||||||||||||||||||||||||||||||||||||||||
Common stock | — | (1 | ) | |||||||||||||||||||||||||||||||||||||
OTTI losses on equity securities recognized in earnings | — | (1 | ) | |||||||||||||||||||||||||||||||||||||
Equity securities — net gains (losses) on sales and disposals | 8 | 26 | ||||||||||||||||||||||||||||||||||||||
Total gains (losses) on equity securities | 8 | 25 | ||||||||||||||||||||||||||||||||||||||
FVO and trading securities — FVO general account securities | — | 9 | ||||||||||||||||||||||||||||||||||||||
Mortgage loans | (43 | ) | (11 | ) | ||||||||||||||||||||||||||||||||||||
Real estate and real estate joint ventures | 27 | 65 | ||||||||||||||||||||||||||||||||||||||
Other limited partnership interests | 16 | (2 | ) | |||||||||||||||||||||||||||||||||||||
Other investment portfolio gains (losses) | 23 | (4 | ) | |||||||||||||||||||||||||||||||||||||
Subtotal — investment portfolio gains (losses) | 164 | 168 | ||||||||||||||||||||||||||||||||||||||
FVO CSEs: | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | (3 | ) | 1 | |||||||||||||||||||||||||||||||||||||
Long-term debt — related to commercial mortgage loans | 1 | 1 | ||||||||||||||||||||||||||||||||||||||
Non-investment portfolio gains (losses) (1) | 124 | (581 | ) | |||||||||||||||||||||||||||||||||||||
Subtotal FVO CSEs and non-investment portfolio gains (losses) | 122 | (579 | ) | |||||||||||||||||||||||||||||||||||||
Total net investment gains (losses) | $ | 286 | $ | (411 | ) | |||||||||||||||||||||||||||||||||||
__________________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Non-investment portfolio gains (losses) for the three months ended March 31, 2014 includes a loss of $495 million related to the disposition of MetLife Assurance Limited. See Note 3 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 | $ | 30,006 | $ | 22,291 | $ | 53 | $ | 101 | ||||||||||||||||||||||||||||||||
Gross investment gains | $ | 338 | $ | 314 | $ | 15 | $ | 27 | ||||||||||||||||||||||||||||||||
Gross investment losses | (187 | ) | (218 | ) | (7 | ) | (1 | ) | ||||||||||||||||||||||||||||||||
OTTI losses | (18 | ) | (10 | ) | — | (1 | ) | |||||||||||||||||||||||||||||||||
Net investment gains (losses) | $ | 133 | $ | 86 | $ | 8 | $ | 25 | ||||||||||||||||||||||||||||||||
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 | $ | 357 | $ | 378 | ||||||||||||||||||||||||||||||||||||
Additions: | ||||||||||||||||||||||||||||||||||||||||
Initial impairments — credit loss OTTI on securities not previously impaired | 2 | — | ||||||||||||||||||||||||||||||||||||||
Additional impairments — credit loss OTTI on securities previously impaired | 11 | 2 | ||||||||||||||||||||||||||||||||||||||
Reductions: | ||||||||||||||||||||||||||||||||||||||||
Sales (maturities, pay downs or prepayments) during the period of securities previously impaired as credit loss OTTI | (13 | ) | (10 | ) | ||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | 357 | $ | 370 | ||||||||||||||||||||||||||||||||||||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities [Table Text Block] | The following table presents the total assets and total liabilities relating to 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 | |||||||||||||||||||||||||||||||||||||||
Total | Total | Total | Total | |||||||||||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
MRSC (collateral financing arrangement (primarily securities)) (1) | $ | 3,458 | $ | — | $ | 3,471 | $ | — | ||||||||||||||||||||||||||||||||
Operating joint venture (2) | 2,544 | 2,123 | 2,405 | 1,999 | ||||||||||||||||||||||||||||||||||||
CSEs (assets (primarily loans) and liabilities (primarily debt)) (3) | 288 | 147 | 297 | 155 | ||||||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||||
Other invested assets | 73 | 15 | 59 | — | ||||||||||||||||||||||||||||||||||||
FVO and trading securities | 42 | — | 45 | — | ||||||||||||||||||||||||||||||||||||
Other limited partnership interests | 37 | — | 37 | — | ||||||||||||||||||||||||||||||||||||
Real estate joint ventures | 9 | 15 | 9 | 15 | ||||||||||||||||||||||||||||||||||||
Total | $ | 6,451 | $ | 2,300 | $ | 6,323 | $ | 2,169 | ||||||||||||||||||||||||||||||||
__________________ | ||||||||||||||||||||||||||||||||||||||||
-1 | See Note 13 of the Notes to the Consolidated Financial Statements included in the 2014 Annual Report for a description of the MetLife Reinsurance Company of South Carolina (“MRSC”) collateral financing arrangement. | |||||||||||||||||||||||||||||||||||||||
-2 | Assets of the operating joint venture are primarily fixed maturity securities and separate account assets. Liabilities of the operating joint venture are primarily future policy benefits, other policyholder funds and separate account liabilities. | |||||||||||||||||||||||||||||||||||||||
-3 | The Company consolidates entities that are structured as CMBS and as collateralized debt obligations. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company 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 ended March 31, 2015 and 2014, respectively. | |||||||||||||||||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities [Table Text Block] | The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at: | |||||||||||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||||||||||
Carrying | Maximum | Carrying | Maximum | |||||||||||||||||||||||||||||||||||||
Amount | Exposure | Amount | Exposure | |||||||||||||||||||||||||||||||||||||
to Loss (1) | to Loss (1) | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities AFS: | ||||||||||||||||||||||||||||||||||||||||
Structured securities (RMBS, CMBS and ABS) (2) | $ | 70,903 | $ | 70,903 | $ | 68,427 | $ | 68,427 | ||||||||||||||||||||||||||||||||
U.S. and foreign corporate | 3,704 | 3,704 | 3,829 | 3,829 | ||||||||||||||||||||||||||||||||||||
Other limited partnership interests | 6,224 | 8,382 | 6,250 | 8,402 | ||||||||||||||||||||||||||||||||||||
Other invested assets | 1,696 | 2,056 | 1,720 | 2,050 | ||||||||||||||||||||||||||||||||||||
FVO and trading securities | 602 | 602 | 565 | 565 | ||||||||||||||||||||||||||||||||||||
Real estate joint ventures | 93 | 118 | 100 | 125 | ||||||||||||||||||||||||||||||||||||
Mortgage loans | 51 | 51 | 51 | 51 | ||||||||||||||||||||||||||||||||||||
Equity securities AFS: | ||||||||||||||||||||||||||||||||||||||||
Non-redeemable preferred stock | 39 | 39 | 41 | 41 | ||||||||||||||||||||||||||||||||||||
Total | $ | 83,312 | $ | 85,855 | $ | 80,983 | $ | 83,490 | ||||||||||||||||||||||||||||||||
__________________ | ||||||||||||||||||||||||||||||||||||||||
-1 | The maximum exposure to loss relating to fixed maturity securities AFS, FVO and trading securities 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, mortgage loans 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 $208 million and $212 million at March 31, 2015 and December 31, 2014, respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. | |||||||||||||||||||||||||||||||||||||||
-2 | For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. | |||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of commercial mortgage loans was as follows at: | |||||||||||||||||||||||||||||||||||||||
Recorded Investment | Estimated | % of | ||||||||||||||||||||||||||||||||||||||
Debt Service Coverage Ratios | % of | Fair Value | Total | |||||||||||||||||||||||||||||||||||||
> 1.20x | 1.00x - 1.20x | < 1.00x | Total | Total | ||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||||||||||||||||||||
Loan-to-value ratios | ||||||||||||||||||||||||||||||||||||||||
Less than 65% | $ | 35,250 | $ | 953 | $ | 801 | $ | 37,004 | 87.8 | % | $ | 38,884 | 88.2 | % | ||||||||||||||||||||||||||
65% to 75% | 3,398 | 573 | 64 | 4,035 | 9.6 | 4,088 | 9.3 | |||||||||||||||||||||||||||||||||
76% to 80% | 137 | — | 8 | 145 | 0.3 | 154 | 0.3 | |||||||||||||||||||||||||||||||||
Greater than 80% | 577 | 299 | 104 | 980 | 2.3 | 964 | 2.2 | |||||||||||||||||||||||||||||||||
Total | $ | 39,362 | $ | 1,825 | $ | 977 | $ | 42,164 | 100 | % | $ | 44,090 | 100 | % | ||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Loan-to-value ratios | ||||||||||||||||||||||||||||||||||||||||
Less than 65% | $ | 33,933 | $ | 1,105 | $ | 1,101 | $ | 36,139 | 88 | % | $ | 38,166 | 88.4 | % | ||||||||||||||||||||||||||
65% to 75% | 3,306 | 405 | 87 | 3,798 | 9.2 | 3,873 | 9 | |||||||||||||||||||||||||||||||||
76% to 80% | 130 | — | 15 | 145 | 0.4 | 153 | 0.3 | |||||||||||||||||||||||||||||||||
Greater than 80% | 562 | 281 | 163 | 1,006 | 2.4 | 987 | 2.3 | |||||||||||||||||||||||||||||||||
Total | $ | 37,931 | $ | 1,791 | $ | 1,366 | $ | 41,088 | 100 | % | $ | 43,179 | 100 | % | ||||||||||||||||||||||||||
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 | % of | Recorded | % of | |||||||||||||||||||||||||||||||||||||
Investment | Total | Investment | Total | |||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Loan-to-value ratios | ||||||||||||||||||||||||||||||||||||||||
Less than 65% | $ | 11,498 | 93.2 | % | $ | 11,743 | 94.9 | % | ||||||||||||||||||||||||||||||||
65% to 75% | 703 | 5.7 | 533 | 4.3 | ||||||||||||||||||||||||||||||||||||
76% to 80% | 50 | 0.4 | 17 | 0.1 | ||||||||||||||||||||||||||||||||||||
Greater than 80% | 82 | 0.7 | 85 | 0.7 | ||||||||||||||||||||||||||||||||||||
Total | $ | 12,333 | 100 | % | $ | 12,378 | 100 | % | ||||||||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of residential mortgage loans was as follows at: | |||||||||||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||||||||||
Recorded | % of | Recorded | % of | |||||||||||||||||||||||||||||||||||||
Investment | Total | Investment | Total | |||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Performance indicators | ||||||||||||||||||||||||||||||||||||||||
Performing | $ | 7,429 | 97.4 | % | $ | 6,196 | 97.3 | % | ||||||||||||||||||||||||||||||||
Nonperforming | 197 | 2.6 | 173 | 2.7 | ||||||||||||||||||||||||||||||||||||
Total | $ | 7,626 | 100 | % | $ | 6,369 | 100 | % | ||||||||||||||||||||||||||||||||
Derivatives_Tables
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 | Estimated Fair Value | Gross | Estimated Fair Value | |||||||||||||||||||||||
Notional | Notional | ||||||||||||||||||||||||||
Amount | Assets | Liabilities | Amount | Assets | Liabilities | ||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||||||||||
Fair value hedges: | |||||||||||||||||||||||||||
Interest rate swaps | Interest rate | $ | 5,975 | $ | 2,296 | $ | 22 | $ | 6,044 | $ | 2,064 | $ | 21 | ||||||||||||||
Foreign currency swaps | Foreign currency exchange rate | 2,699 | 77 | 354 | 2,708 | 65 | 100 | ||||||||||||||||||||
Foreign currency forwards | Foreign currency exchange rate | 2,735 | — | 251 | 2,335 | — | 291 | ||||||||||||||||||||
Subtotal | 11,409 | 2,373 | 627 | 11,087 | 2,129 | 412 | |||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||
Interest rate swaps | Interest rate | 2,927 | 666 | — | 2,560 | 528 | — | ||||||||||||||||||||
Interest rate forwards | Interest rate | 200 | 70 | — | 225 | 63 | — | ||||||||||||||||||||
Foreign currency swaps | Foreign currency exchange rate | 19,897 | 1,139 | 1,508 | 18,325 | 563 | 930 | ||||||||||||||||||||
Subtotal | 23,024 | 1,875 | 1,508 | 21,110 | 1,154 | 930 | |||||||||||||||||||||
Foreign operations hedges: | |||||||||||||||||||||||||||
Foreign currency forwards | Foreign currency exchange rate | 4,306 | 101 | 11 | 4,097 | 295 | 11 | ||||||||||||||||||||
Currency options | Foreign currency exchange rate | 8,233 | 385 | 8 | 6,419 | 415 | — | ||||||||||||||||||||
Subtotal | 12,539 | 486 | 19 | 10,516 | 710 | 11 | |||||||||||||||||||||
Total qualifying hedges | 46,972 | 4,734 | 2,154 | 42,713 | 3,993 | 1,353 | |||||||||||||||||||||
Derivatives Not Designated or Not Qualifying as Hedging Instruments | |||||||||||||||||||||||||||
Interest rate swaps | Interest rate | 91,545 | 5,353 | 2,465 | 93,266 | 4,570 | 2,051 | ||||||||||||||||||||
Interest rate floors | Interest rate | 34,155 | 464 | 172 | 55,645 | 440 | 199 | ||||||||||||||||||||
Interest rate caps | Interest rate | 52,763 | 90 | 1 | 49,128 | 145 | 1 | ||||||||||||||||||||
Interest rate futures | Interest rate | 3,557 | 9 | 6 | 2,707 | 4 | 9 | ||||||||||||||||||||
Interest rate options | Interest rate | 35,261 | 1,666 | 27 | 48,078 | 1,241 | 75 | ||||||||||||||||||||
Synthetic GICs | Interest rate | 4,262 | — | — | 4,298 | — | — | ||||||||||||||||||||
Foreign currency swaps | Foreign currency exchange rate | 11,627 | 855 | 432 | 11,041 | 447 | 385 | ||||||||||||||||||||
Foreign currency forwards | Foreign currency exchange rate | 12,191 | 235 | 387 | 13,206 | 127 | 791 | ||||||||||||||||||||
Currency futures | Foreign currency exchange rate | 1,242 | 1 | 2 | 522 | 2 | — | ||||||||||||||||||||
Currency options | Foreign currency exchange rate | 9,734 | 531 | 295 | 8,324 | 585 | 340 | ||||||||||||||||||||
Credit default swaps — purchased | Credit | 2,711 | 15 | 49 | 2,830 | 8 | 34 | ||||||||||||||||||||
Credit default swaps — written | Credit | 10,206 | 190 | 4 | 10,527 | 181 | 6 | ||||||||||||||||||||
Equity futures | Equity market | 6,248 | 34 | 7 | 6,073 | 65 | 2 | ||||||||||||||||||||
Equity index options | Equity market | 42,751 | 1,411 | 1,079 | 39,345 | 1,426 | 1,036 | ||||||||||||||||||||
Equity variance swaps | Equity market | 24,449 | 192 | 664 | 24,598 | 196 | 639 | ||||||||||||||||||||
TRRs | Equity market | 3,375 | 11 | 78 | 3,297 | 22 | 101 | ||||||||||||||||||||
Total non-designated or non-qualifying derivatives | 346,077 | 11,057 | 5,668 | 372,885 | 9,459 | 5,669 | |||||||||||||||||||||
Total | $ | 393,049 | $ | 15,791 | $ | 7,822 | $ | 415,598 | $ | 13,452 | $ | 7,022 | |||||||||||||||
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) | $ | 848 | $ | 452 | |||||||||||||||||||||||
Embedded derivatives gains (losses) | (27 | ) | (109 | ) | |||||||||||||||||||||||
Total net derivative gains (losses) | $ | 821 | $ | 343 | |||||||||||||||||||||||
__________________ | |||||||||||||||||||||||||||
-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. | ||||||||||||||||||||||||||
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 | $ | 58 | $ | 33 | |||||||||||||||||||||||
Interest credited to policyholder account balances | 2 | 32 | |||||||||||||||||||||||||
Other expenses | (3 | ) | (1 | ) | |||||||||||||||||||||||
Non-qualifying hedges: | |||||||||||||||||||||||||||
Net investment income | (1 | ) | (1 | ) | |||||||||||||||||||||||
Net derivative gains (losses) | 261 | 219 | |||||||||||||||||||||||||
Policyholder benefits and claims | 4 | (8 | ) | ||||||||||||||||||||||||
Total | $ | 321 | $ | 274 | |||||||||||||||||||||||
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 | Net | Policyholder | |||||||||||||||||||||||||
Derivative | Investment | Benefits and | |||||||||||||||||||||||||
Gains (Losses) | Income (1) | Claims (2) | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||
Interest rate derivatives | $ | 552 | $ | — | $ | 11 | |||||||||||||||||||||
Foreign currency exchange rate derivatives | 669 | — | — | ||||||||||||||||||||||||
Credit derivatives — purchased | (11 | ) | (1 | ) | — | ||||||||||||||||||||||
Credit derivatives — written | 3 | 1 | — | ||||||||||||||||||||||||
Equity derivatives | (462 | ) | (4 | ) | (99 | ) | |||||||||||||||||||||
Total | $ | 751 | $ | (4 | ) | $ | (88 | ) | |||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||
Interest rate derivatives | $ | 298 | $ | — | $ | 12 | |||||||||||||||||||||
Foreign currency exchange rate derivatives | 69 | — | — | ||||||||||||||||||||||||
Credit derivatives — purchased | 1 | 1 | — | ||||||||||||||||||||||||
Credit derivatives — written | (9 | ) | — | — | |||||||||||||||||||||||
Equity derivatives | (181 | ) | (6 | ) | (38 | ) | |||||||||||||||||||||
Total | $ | 178 | $ | (5 | ) | $ | (26 | ) | |||||||||||||||||||
__________________ | |||||||||||||||||||||||||||
-1 | Changes in estimated fair value related to economic hedges of equity method investments in joint ventures, derivatives held in relation to trading portfolios and derivatives held within contractholder-directed unit-linked investments. | ||||||||||||||||||||||||||
-2 | Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits. | ||||||||||||||||||||||||||
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 | Hedged Items in Fair Value | Net Derivative | Net Derivative | Ineffectiveness | |||||||||||||||||||||||
Hedging Relationships | Hedging Relationships | Gains (Losses) | Gains (Losses) | Recognized in | |||||||||||||||||||||||
Recognized | Recognized for | Net Derivative | |||||||||||||||||||||||||
for Derivatives | Hedged Items | Gains (Losses) | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||
Interest rate swaps: | Fixed maturity securities | $ | (5 | ) | $ | 7 | $ | 2 | |||||||||||||||||||
Policyholder liabilities (1) | 197 | (198 | ) | (1 | ) | ||||||||||||||||||||||
Foreign currency swaps: | Foreign-denominated fixed maturity securities | 10 | (8 | ) | 2 | ||||||||||||||||||||||
Foreign-denominated policyholder account balances (2) | (249 | ) | 245 | (4 | ) | ||||||||||||||||||||||
Foreign currency forwards: | Foreign-denominated fixed maturity securities | (17 | ) | 16 | (1 | ) | |||||||||||||||||||||
Total | $ | (64 | ) | $ | 62 | $ | (2 | ) | |||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||
Interest rate swaps: | Fixed maturity securities | $ | 1 | $ | 1 | $ | 2 | ||||||||||||||||||||
Policyholder liabilities (1) | 209 | (204 | ) | 5 | |||||||||||||||||||||||
Foreign currency swaps: | Foreign-denominated fixed maturity securities | (4 | ) | 4 | — | ||||||||||||||||||||||
Foreign-denominated policyholder account balances (2) | (27 | ) | 32 | 5 | |||||||||||||||||||||||
Foreign currency forwards: | Foreign-denominated fixed maturity securities | 10 | (9 | ) | 1 | ||||||||||||||||||||||
Total | $ | 189 | $ | (176 | ) | $ | 13 | ||||||||||||||||||||
__________________ | |||||||||||||||||||||||||||
-1 | Fixed rate liabilities reported in policyholder account balances or future policy benefits. | ||||||||||||||||||||||||||
-2 | Fixed rate or floating rate liabilities. | ||||||||||||||||||||||||||
Derivatives and Non-Derivative Hedging Instruments in Net Investment Hedging Relationships | The following table presents the effects of derivatives in net investment hedging relationships on the consolidated statements of operations and comprehensive income (loss) and the consolidated statements of equity: | ||||||||||||||||||||||||||
Derivatives in Net Investment Hedging Relationships (1), (2) | Amount of Gains (Losses) Deferred in AOCI | ||||||||||||||||||||||||||
(Effective Portion) | |||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||
Foreign currency forwards | $ | 111 | |||||||||||||||||||||||||
Currency options | (41 | ) | |||||||||||||||||||||||||
Total | $ | 70 | |||||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||
Foreign currency forwards | $ | (34 | ) | ||||||||||||||||||||||||
Currency options | (114 | ) | |||||||||||||||||||||||||
Total | $ | (148 | ) | ||||||||||||||||||||||||
__________________ | |||||||||||||||||||||||||||
-1 | During both the three months ended March 31, 2015 and 2014, there were no sales or substantial liquidations of net investments in foreign operations that would have required the reclassification of gains or losses from AOCI into earnings. | ||||||||||||||||||||||||||
-2 | There was no ineffectiveness recognized for the Company’s hedges of net investments in foreign operations. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. | ||||||||||||||||||||||||||
Schedule of estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps | The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at: | ||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||
Rating Agency Designation of Referenced | Estimated | Maximum | Weighted | Estimated | Maximum | Weighted | |||||||||||||||||||||
Credit Obligations (1) | Fair Value | Amount of Future | Average | Fair Value | Amount of Future | Average | |||||||||||||||||||||
of Credit | Payments under | Years to | of Credit | Payments under | Years to | ||||||||||||||||||||||
Default | Credit Default | Maturity (3) | Default | Credit Default | Maturity (3) | ||||||||||||||||||||||
Swaps | Swaps (2) | Swaps | Swaps (2) | ||||||||||||||||||||||||
(In millions) | (In millions) | ||||||||||||||||||||||||||
Aaa/Aa/A | |||||||||||||||||||||||||||
Single name credit default swaps (corporate) | $ | 8 | $ | 636 | 2.3 | $ | 10 | $ | 677 | 2.4 | |||||||||||||||||
Credit default swaps referencing indices | 7 | 1,500 | 2.7 | 10 | 1,700 | 2.6 | |||||||||||||||||||||
Subtotal | 15 | 2,136 | 2.6 | 20 | 2,377 | 2.6 | |||||||||||||||||||||
Baa | |||||||||||||||||||||||||||
Single name credit default swaps (corporate) | 23 | 1,555 | 2.6 | 23 | 1,591 | 2.8 | |||||||||||||||||||||
Credit default swaps referencing indices | 97 | 5,742 | 4.9 | 94 | 5,774 | 4.7 | |||||||||||||||||||||
Subtotal | 120 | 7,297 | 4.4 | 117 | 7,365 | 4.3 | |||||||||||||||||||||
Ba | |||||||||||||||||||||||||||
Single name credit default swaps (corporate) | 1 | 60 | 2.7 | — | 60 | 3 | |||||||||||||||||||||
Credit default swaps referencing indices | — | 100 | 1.8 | (1 | ) | 100 | 2 | ||||||||||||||||||||
Subtotal | 1 | 160 | 2.1 | (1 | ) | 160 | 2.4 | ||||||||||||||||||||
B | |||||||||||||||||||||||||||
Single name credit default swaps (corporate) | — | — | — | — | — | — | |||||||||||||||||||||
Credit default swaps referencing indices | 50 | 613 | 4.7 | 39 | 625 | 4.9 | |||||||||||||||||||||
Subtotal | 50 | 613 | 4.7 | 39 | 625 | 4.9 | |||||||||||||||||||||
Total | $ | 186 | $ | 10,206 | 4 | $ | 175 | $ | 10,527 | 3.9 | |||||||||||||||||
__________________ | |||||||||||||||||||||||||||
-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) | $ | 14,441 | $ | 6,600 | $ | 12,256 | $ | 6,017 | |||||||||||||||||||
OTC-cleared (1) | 1,558 | 1,230 | 1,380 | 1,054 | |||||||||||||||||||||||
Exchange-traded | 44 | 15 | 71 | 11 | |||||||||||||||||||||||
Total gross estimated fair value of derivatives (1) | 16,043 | 7,845 | 13,707 | 7,082 | |||||||||||||||||||||||
Amounts offset on the consolidated balance sheets | — | — | — | — | |||||||||||||||||||||||
Estimated fair value of derivatives presented on the consolidated balance sheets (1) | 16,043 | 7,845 | 13,707 | 7,082 | |||||||||||||||||||||||
Gross amounts not offset on the consolidated balance sheets: | |||||||||||||||||||||||||||
Gross estimated fair value of derivatives: (2) | |||||||||||||||||||||||||||
OTC-bilateral | (4,980 | ) | (4,980 | ) | (4,082 | ) | (4,082 | ) | |||||||||||||||||||
OTC-cleared | (1,166 | ) | (1,166 | ) | (989 | ) | (989 | ) | |||||||||||||||||||
Exchange-traded | (1 | ) | (1 | ) | (5 | ) | (5 | ) | |||||||||||||||||||
Cash collateral: (3), (4) | |||||||||||||||||||||||||||
OTC-bilateral | (7,076 | ) | (111 | ) | (4,153 | ) | (133 | ) | |||||||||||||||||||
OTC-cleared | (364 | ) | (62 | ) | (386 | ) | (62 | ) | |||||||||||||||||||
Exchange-traded | — | (8 | ) | — | (4 | ) | |||||||||||||||||||||
Securities collateral: (5) | |||||||||||||||||||||||||||
OTC-bilateral | (2,063 | ) | (1,407 | ) | (3,768 | ) | (1,700 | ) | |||||||||||||||||||
OTC-cleared | — | (2 | ) | — | (3 | ) | |||||||||||||||||||||
Exchange-traded | — | (6 | ) | — | (2 | ) | |||||||||||||||||||||
Net amount after application of master netting agreements and collateral | $ | 393 | $ | 102 | $ | 324 | $ | 102 | |||||||||||||||||||
__________________ | |||||||||||||||||||||||||||
-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 $252 million and $255 million, respectively, and derivative liabilities include income or expense accruals reported in accrued investment income or in other liabilities of $23 million and $60 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 $327 million and $263 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 $259 million and $87 million (including $94 million and $36 million off-balance sheet cash collateral held in separate custodial accounts), respectively, and provided excess cash collateral of $240 million and $192 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, 2015 none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At March 31, 2015 and December 31, 2014, the Company received excess securities collateral with an estimated fair value of $384 million and $395 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 $116 million and $117 million, respectively, for its OTC-bilateral derivatives, and $237 million and $199 million, respectively, for its OTC-cleared derivatives, and $212 million and $245 million, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation. | ||||||||||||||||||||||||||
-6 | See Note 5 for information regarding the Company’s gross and net payables and receivables under repurchase agreement transactions. | ||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||||||||
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents the effects of derivatives in cash flow hedging relationships on the consolidated statements of operations and comprehensive income (loss) and the consolidated statements of equity: | ||||||||||||||||||||||||||
Derivatives in Cash Flow | Amount of Gains | Amount and Location | Amount and Location | ||||||||||||||||||||||||
Hedging Relationships | (Losses) Deferred in | of Gains (Losses) | of Gains (Losses) | ||||||||||||||||||||||||
AOCI on Derivatives | Reclassified from | Recognized in Income | |||||||||||||||||||||||||
AOCI into Income (Loss) | (Loss) on Derivatives | ||||||||||||||||||||||||||
(Effective Portion) | (Effective Portion) | (Ineffective Portion) | |||||||||||||||||||||||||
Net Derivative | Net Investment | Other | Net Derivative | ||||||||||||||||||||||||
Gains (Losses) | Income | Expenses | Gains (Losses) | ||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||
Interest rate swaps | $ | 174 | $ | 5 | $ | 3 | $ | — | $ | 3 | |||||||||||||||||
Interest rate forwards | 15 | 3 | 1 | 1 | — | ||||||||||||||||||||||
Foreign currency swaps | (2 | ) | (567 | ) | — | — | 4 | ||||||||||||||||||||
Credit forwards | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 187 | $ | (559 | ) | $ | 4 | $ | 1 | $ | 7 | ||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||
Interest rate swaps | $ | 228 | $ | 15 | $ | 2 | $ | — | $ | 5 | |||||||||||||||||
Interest rate forwards | 41 | — | 1 | — | 1 | ||||||||||||||||||||||
Foreign currency swaps | 52 | 36 | (1 | ) | 1 | — | |||||||||||||||||||||
Credit forwards | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 321 | $ | 51 | $ | 2 | $ | 1 | $ | 6 | |||||||||||||||||
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 credit rating at the reporting date or if the Company’s credit 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 | Fair Value of Incremental | ||||||||||||||||||||||||||
Collateral Provided | Collateral Provided Upon | ||||||||||||||||||||||||||
Estimated | Fixed Maturity | Cash | One Notch | Downgrade in the Company’s | |||||||||||||||||||||||
Fair Value of | Securities | Downgrade in | Credit Rating to a Level | ||||||||||||||||||||||||
Derivatives in | the Company’s | that Triggers Full Overnight | |||||||||||||||||||||||||
Net Liability | Credit Rating | Collateralization or Termination | |||||||||||||||||||||||||
Position (1) | of the Derivative Position | ||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||
Derivatives subject to credit-contingent provisions | $ | 1,519 | $ | 1,454 | $ | 117 | $ | 4 | $ | 4 | |||||||||||||||||
Derivatives not subject to credit-contingent provisions | 91 | 68 | 2 | — | — | ||||||||||||||||||||||
Total | $ | 1,610 | $ | 1,522 | $ | 119 | $ | 4 | $ | 4 | |||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||
Derivatives subject to credit-contingent provisions | $ | 1,832 | $ | 1,750 | $ | 131 | $ | 5 | $ | 7 | |||||||||||||||||
Derivatives not subject to credit-contingent provisions | 84 | 65 | 2 | — | — | ||||||||||||||||||||||
Total | $ | 1,916 | $ | 1,815 | $ | 133 | $ | 5 | $ | 7 | |||||||||||||||||
__________________ | |||||||||||||||||||||||||||
-1 | After taking into consideration the existence of netting agreements. | ||||||||||||||||||||||||||
Embedded Derivative Financial Instruments [Member] | |||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||||||||
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents changes in estimated fair value related to embedded derivatives: | ||||||||||||||||||||||||||
Three Months | |||||||||||||||||||||||||||
Ended | |||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Net derivative gains (losses) (1) | $ | (27 | ) | $ | (109 | ) | |||||||||||||||||||||
Policyholder benefits and claims | $ | 24 | $ | 15 | |||||||||||||||||||||||
__________________ | |||||||||||||||||||||||||||
-1 | The valuation of guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $69 million and $43 million for the three months ended March 31, 2015 and 2014, respectively. | ||||||||||||||||||||||||||
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 | $ | 351 | $ | 324 | ||||||||||||||||||||||
Funds withheld on assumed reinsurance | Other invested assets | 56 | 53 | ||||||||||||||||||||||||
Options embedded in debt or equity securities | Investments | (303 | ) | (217 | ) | ||||||||||||||||||||||
Net embedded derivatives within asset host contracts | $ | 104 | $ | 160 | |||||||||||||||||||||||
Net embedded derivatives within liability host contracts: | |||||||||||||||||||||||||||
Direct guaranteed minimum benefits | Policyholder account balances and Future policy benefits | $ | (830 | ) | $ | (1,126 | ) | ||||||||||||||||||||
Assumed guaranteed minimum benefits | Policyholder account balances | 868 | 973 | ||||||||||||||||||||||||
Funds withheld on ceded reinsurance | Other liabilities | 71 | 83 | ||||||||||||||||||||||||
Other | Policyholder account balances | 28 | 24 | ||||||||||||||||||||||||
Net embedded derivatives within liability host contracts | $ | 137 | $ | (46 | ) | ||||||||||||||||||||||
Fair_Value_Tables
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 | |||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Estimated | ||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||
U.S. corporate | $ | — | $ | 99,014 | $ | 7,321 | $ | 106,335 | |||||||||||||||||||||||||
Foreign corporate | — | 54,086 | 6,408 | 60,494 | |||||||||||||||||||||||||||||
U.S. Treasury and agency | 34,116 | 26,356 | — | 60,472 | |||||||||||||||||||||||||||||
Foreign government | — | 50,977 | 1,384 | 52,361 | |||||||||||||||||||||||||||||
RMBS | 2,597 | 36,642 | 4,545 | 43,784 | |||||||||||||||||||||||||||||
State and political subdivision | — | 15,708 | 2 | 15,710 | |||||||||||||||||||||||||||||
CMBS | — | 12,667 | 644 | 13,311 | |||||||||||||||||||||||||||||
ABS | — | 11,355 | 2,453 | 13,808 | |||||||||||||||||||||||||||||
Total fixed maturity securities | 36,713 | 306,805 | 22,757 | 366,275 | |||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
Common stock | 1,598 | 883 | 94 | 2,575 | |||||||||||||||||||||||||||||
Non-redeemable preferred stock | — | 894 | 244 | 1,138 | |||||||||||||||||||||||||||||
Total equity securities | 1,598 | 1,777 | 338 | 3,713 | |||||||||||||||||||||||||||||
FVO and trading securities: | |||||||||||||||||||||||||||||||||
Actively Traded securities | 48 | 656 | 10 | 714 | |||||||||||||||||||||||||||||
FVO general account securities | 527 | 35 | 89 | 651 | |||||||||||||||||||||||||||||
FVO contractholder-directed unit-linked investments | 11,020 | 3,659 | 412 | 15,091 | |||||||||||||||||||||||||||||
FVO securities held by CSEs | — | 5 | 10 | 15 | |||||||||||||||||||||||||||||
Total FVO and trading securities | 11,595 | 4,355 | 521 | 16,471 | |||||||||||||||||||||||||||||
Short-term investments (1) | 2,621 | 8,673 | 1,358 | 12,652 | |||||||||||||||||||||||||||||
Mortgage loans: | |||||||||||||||||||||||||||||||||
Residential mortgage loans — FVO | — | — | 329 | 329 | |||||||||||||||||||||||||||||
Commercial mortgage loans held by CSEs — FVO | — | 272 | — | 272 | |||||||||||||||||||||||||||||
Total mortgage loans | — | 272 | 329 | 601 | |||||||||||||||||||||||||||||
Other invested assets: | |||||||||||||||||||||||||||||||||
Other investments | 187 | 59 | — | 246 | |||||||||||||||||||||||||||||
Derivative assets: (2) | |||||||||||||||||||||||||||||||||
Interest rate | 9 | 10,535 | 70 | 10,614 | |||||||||||||||||||||||||||||
Foreign currency exchange rate | 1 | 3,295 | 28 | 3,324 | |||||||||||||||||||||||||||||
Credit | — | 194 | 11 | 205 | |||||||||||||||||||||||||||||
Equity market | 34 | 1,279 | 335 | 1,648 | |||||||||||||||||||||||||||||
Total derivative assets | 44 | 15,303 | 444 | 15,791 | |||||||||||||||||||||||||||||
Total other invested assets | 231 | 15,362 | 444 | 16,037 | |||||||||||||||||||||||||||||
Net embedded derivatives within asset host contracts (3) | — | — | 407 | 407 | |||||||||||||||||||||||||||||
Separate account assets (4) | 86,253 | 236,415 | 2,056 | 324,724 | |||||||||||||||||||||||||||||
Total assets | $ | 139,011 | $ | 573,659 | $ | 28,210 | $ | 740,880 | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Derivative liabilities: (2) | |||||||||||||||||||||||||||||||||
Interest rate | $ | 6 | $ | 2,686 | $ | 1 | $ | 2,693 | |||||||||||||||||||||||||
Foreign currency exchange rate | 2 | 3,151 | 95 | 3,248 | |||||||||||||||||||||||||||||
Credit | — | 52 | 1 | 53 | |||||||||||||||||||||||||||||
Equity market | 7 | 1,129 | 692 | 1,828 | |||||||||||||||||||||||||||||
Total derivative liabilities | 15 | 7,018 | 789 | 7,822 | |||||||||||||||||||||||||||||
Net embedded derivatives within liability host contracts (3) | — | 8 | 129 | 137 | |||||||||||||||||||||||||||||
Long-term debt of CSEs — FVO | — | 131 | 12 | 143 | |||||||||||||||||||||||||||||
Trading liabilities (5) | 206 | 46 | — | 252 | |||||||||||||||||||||||||||||
Total liabilities | $ | 221 | $ | 7,203 | $ | 930 | $ | 8,354 | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Estimated | ||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||
U.S. corporate | $ | — | $ | 99,012 | $ | 6,942 | $ | 105,954 | |||||||||||||||||||||||||
Foreign corporate | — | 55,185 | 6,490 | 61,675 | |||||||||||||||||||||||||||||
U.S. Treasury and agency | 36,879 | 24,637 | — | 61,516 | |||||||||||||||||||||||||||||
Foreign government | — | 51,355 | 1,311 | 52,666 | |||||||||||||||||||||||||||||
RMBS | — | 35,463 | 4,383 | 39,846 | |||||||||||||||||||||||||||||
State and political subdivision | — | 15,187 | — | 15,187 | |||||||||||||||||||||||||||||
CMBS | — | 13,567 | 765 | 14,332 | |||||||||||||||||||||||||||||
ABS | — | 12,005 | 2,244 | 14,249 | |||||||||||||||||||||||||||||
Total fixed maturity securities | 36,879 | 306,411 | 22,135 | 365,425 | |||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
Common stock | 1,558 | 863 | 95 | 2,516 | |||||||||||||||||||||||||||||
Non-redeemable preferred stock | — | 865 | 250 | 1,115 | |||||||||||||||||||||||||||||
Total equity securities | 1,558 | 1,728 | 345 | 3,631 | |||||||||||||||||||||||||||||
FVO and trading securities: | |||||||||||||||||||||||||||||||||
Actively Traded securities | 22 | 627 | 5 | 654 | |||||||||||||||||||||||||||||
FVO general account securities | 552 | 57 | 95 | 704 | |||||||||||||||||||||||||||||
FVO contractholder-directed unit-linked investments | 11,064 | 3,797 | 455 | 15,316 | |||||||||||||||||||||||||||||
FVO securities held by CSEs | — | 3 | 12 | 15 | |||||||||||||||||||||||||||||
Total FVO and trading securities | 11,638 | 4,484 | 567 | 16,689 | |||||||||||||||||||||||||||||
Short-term investments (1) | 2,104 | 5,223 | 336 | 7,663 | |||||||||||||||||||||||||||||
Mortgage loans: | |||||||||||||||||||||||||||||||||
Residential mortgage loans — FVO | — | — | 308 | 308 | |||||||||||||||||||||||||||||
Commercial mortgage loans held by CSEs — FVO | — | 280 | — | 280 | |||||||||||||||||||||||||||||
Total mortgage loans | — | 280 | 308 | 588 | |||||||||||||||||||||||||||||
Other invested assets: | |||||||||||||||||||||||||||||||||
Other investments | 203 | 61 | — | 264 | |||||||||||||||||||||||||||||
Derivative assets: (2) | |||||||||||||||||||||||||||||||||
Interest rate | 4 | 8,988 | 63 | 9,055 | |||||||||||||||||||||||||||||
Foreign currency exchange rate | 2 | 2,472 | 25 | 2,499 | |||||||||||||||||||||||||||||
Credit | — | 175 | 14 | 189 | |||||||||||||||||||||||||||||
Equity market | 65 | 1,287 | 357 | 1,709 | |||||||||||||||||||||||||||||
Total derivative assets | 71 | 12,922 | 459 | 13,452 | |||||||||||||||||||||||||||||
Total other invested assets | 274 | 12,983 | 459 | 13,716 | |||||||||||||||||||||||||||||
Net embedded derivatives within asset host contracts (3) | — | — | 377 | 377 | |||||||||||||||||||||||||||||
Separate account assets (4) | 83,533 | 231,539 | 1,922 | 316,994 | |||||||||||||||||||||||||||||
Total assets | $ | 135,986 | $ | 562,648 | $ | 26,449 | $ | 725,083 | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Derivative liabilities: (2) | |||||||||||||||||||||||||||||||||
Interest rate | $ | 9 | $ | 2,347 | $ | — | $ | 2,356 | |||||||||||||||||||||||||
Foreign currency exchange rate | — | 2,755 | 93 | 2,848 | |||||||||||||||||||||||||||||
Credit | — | 38 | 2 | 40 | |||||||||||||||||||||||||||||
Equity market | 2 | 1,112 | 664 | 1,778 | |||||||||||||||||||||||||||||
Total derivative liabilities | 11 | 6,252 | 759 | 7,022 | |||||||||||||||||||||||||||||
Net embedded derivatives within liability host contracts (3) | — | 7 | (53 | ) | (46 | ) | |||||||||||||||||||||||||||
Long-term debt of CSEs — FVO | — | 138 | 13 | 151 | |||||||||||||||||||||||||||||
Trading liabilities (5) | 215 | 24 | — | 239 | |||||||||||||||||||||||||||||
Total liabilities | $ | 226 | $ | 6,421 | $ | 719 | $ | 7,366 | |||||||||||||||||||||||||
__________________ | |||||||||||||||||||||||||||||||||
-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, future policy benefits and other liabilities on the consolidated balance sheets. At March 31, 2015 and December 31, 2014, equity securities also included embedded derivatives of ($303) million and ($217) 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. | ||||||||||||||||||||||||||||||||
-5 | Trading liabilities are presented within other liabilities on the consolidated balance sheets. | ||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | Impact of | |||||||||||||||||||||||||||||||
Increase in Input | |||||||||||||||||||||||||||||||||
on Estimated | |||||||||||||||||||||||||||||||||
Valuation | Significant | Range | Weighted | Range | Weighted | Fair Value (2) | |||||||||||||||||||||||||||
Techniques | Unobservable Inputs | Average (1) | Average (1) | ||||||||||||||||||||||||||||||
Fixed maturity securities (3) | |||||||||||||||||||||||||||||||||
U.S. corporate and foreign corporate | • | Matrix pricing | • | Delta spread adjustments (4) | -45 | - | 240 | 43 | -40 | - | 240 | 46 | Decrease | ||||||||||||||||||||
• | Market pricing | • | Quoted prices (5) | 6 | - | 531 | 122 | — | 750 | 151 | Increase | ||||||||||||||||||||||
• | Consensus pricing | • | Offered quotes (5) | 31 | - | 780 | 242 | 31 | - | 126 | 99 | Increase | |||||||||||||||||||||
Foreign government | • | Market pricing | • | Quoted prices (5) | 72 | - | 195 | 106 | 92 | - | 189 | 106 | Increase | ||||||||||||||||||||
RMBS | • | Market pricing | • | Quoted prices (5) | 22 | - | 120 | 96 | 22 | - | 120 | 97 | Increase (6) | ||||||||||||||||||||
• | Consensus pricing | • | Offered quotes (5) | 30 | - | 114 | 94 | 1 | - | 118 | 93 | Increase (6) | |||||||||||||||||||||
ABS | • | Market pricing | • | Quoted prices (5) | 15 | - | 110 | 100 | 15 | - | 110 | 100 | Increase (6) | ||||||||||||||||||||
• | Consensus pricing | • | Offered quotes (5) | 56 | - | 106 | 99 | 56 | - | 106 | 102 | Increase (6) | |||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||||||
Interest rate | • | Present value techniques | • | Swap yield (7) | 256 | - | 271 | 278 | - | 297 | Increase (12) | ||||||||||||||||||||||
Foreign currency exchange rate | • | Present value techniques | • | Swap yield (7) | -50 | - | 1,597 | 62 | - | 2,430 | Increase (12) | ||||||||||||||||||||||
• | Correlation (8) | 40% | - | 54% | 40% | - | 55% | ||||||||||||||||||||||||||
Credit | • | Present value techniques | • | Credit spreads (9) | 98 | - | 100 | 98 | - | 100 | Decrease (9) | ||||||||||||||||||||||
• | Consensus pricing | • | Offered quotes (10) | ||||||||||||||||||||||||||||||
Equity market | • | Present value techniques or option pricing models | • | Volatility (11) | 11% | - | 28% | 15% | - | 27% | Increase (12) | ||||||||||||||||||||||
• | Correlation (8) | 70% | - | 70% | 70% | - | 70% | ||||||||||||||||||||||||||
Embedded derivatives | |||||||||||||||||||||||||||||||||
Direct and assumed guaranteed minimum benefits | • | Option pricing techniques | • | Mortality rates: | |||||||||||||||||||||||||||||
Ages 0 - 40 | 0% | - | 0.28% | 0% | - | 0.28% | Decrease (13) | ||||||||||||||||||||||||||
Ages 41 - 60 | 0.04% | - | 0.88% | 0.04% | - | 0.88% | Decrease (13) | ||||||||||||||||||||||||||
Ages 61 - 115 | 0.26% | - | 100% | 0.26% | - | 100% | Decrease (13) | ||||||||||||||||||||||||||
• | Lapse rates: | ||||||||||||||||||||||||||||||||
Durations 1 - 10 | 0.50% | - | 100% | 0.50% | - | 100% | Decrease (14) | ||||||||||||||||||||||||||
Durations 11 - 20 | 2% | - | 100% | 2% | - | 100% | Decrease (14) | ||||||||||||||||||||||||||
Durations 21 - 116 | 2% | - | 100% | 2% | - | 100% | Decrease (14) | ||||||||||||||||||||||||||
• | Utilization rates | 0% | - | 30% | 20% | - | 50% | Increase (15) | |||||||||||||||||||||||||
• | Withdrawal rates | 0% | - | 20% | 0% | - | 20% | -16 | |||||||||||||||||||||||||
• | Long-term equity volatilities | 8.88% | - | 33% | 7.30% | - | 33% | Increase (17) | |||||||||||||||||||||||||
• | Nonperformance risk spread | -0.15% | - | 1.00% | -0.35% | - | 0.81% | 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 are based on liability 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 | 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. | ||||||||||||||||||||||||||||||||
-9 | Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. | ||||||||||||||||||||||||||||||||
-10 | At both March 31, 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. | ||||||||||||||||||||||||||||||||
-11 | Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. | ||||||||||||||||||||||||||||||||
-12 | Changes are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. | ||||||||||||||||||||||||||||||||
-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: | ||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | Impact of | |||||||||||||||||||||||||||||||
Increase in Input | |||||||||||||||||||||||||||||||||
on Estimated | |||||||||||||||||||||||||||||||||
Valuation | Significant | Range | Weighted | Range | Weighted | Fair Value (2) | |||||||||||||||||||||||||||
Techniques | Unobservable Inputs | Average (1) | Average (1) | ||||||||||||||||||||||||||||||
Fixed maturity securities (3) | |||||||||||||||||||||||||||||||||
U.S. corporate and foreign corporate | • | Matrix pricing | • | Delta spread adjustments (4) | -45 | - | 240 | 43 | -40 | - | 240 | 46 | Decrease | ||||||||||||||||||||
• | Market pricing | • | Quoted prices (5) | 6 | - | 531 | 122 | — | 750 | 151 | Increase | ||||||||||||||||||||||
• | Consensus pricing | • | Offered quotes (5) | 31 | - | 780 | 242 | 31 | - | 126 | 99 | Increase | |||||||||||||||||||||
Foreign government | • | Market pricing | • | Quoted prices (5) | 72 | - | 195 | 106 | 92 | - | 189 | 106 | Increase | ||||||||||||||||||||
RMBS | • | Market pricing | • | Quoted prices (5) | 22 | - | 120 | 96 | 22 | - | 120 | 97 | Increase (6) | ||||||||||||||||||||
• | Consensus pricing | • | Offered quotes (5) | 30 | - | 114 | 94 | 1 | - | 118 | 93 | Increase (6) | |||||||||||||||||||||
ABS | • | Market pricing | • | Quoted prices (5) | 15 | - | 110 | 100 | 15 | - | 110 | 100 | Increase (6) | ||||||||||||||||||||
• | Consensus pricing | • | Offered quotes (5) | 56 | - | 106 | 99 | 56 | - | 106 | 102 | Increase (6) | |||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||||||
Interest rate | • | Present value techniques | • | Swap yield (7) | 256 | - | 271 | 278 | - | 297 | Increase (12) | ||||||||||||||||||||||
Foreign currency exchange rate | • | Present value techniques | • | Swap yield (7) | -50 | - | 1,597 | 62 | - | 2,430 | Increase (12) | ||||||||||||||||||||||
• | Correlation (8) | 40% | - | 54% | 40% | - | 55% | ||||||||||||||||||||||||||
Credit | • | Present value techniques | • | Credit spreads (9) | 98 | - | 100 | 98 | - | 100 | Decrease (9) | ||||||||||||||||||||||
• | Consensus pricing | • | Offered quotes (10) | ||||||||||||||||||||||||||||||
Equity market | • | Present value techniques or option pricing models | • | Volatility (11) | 11% | - | 28% | 15% | - | 27% | Increase (12) | ||||||||||||||||||||||
• | Correlation (8) | 70% | - | 70% | 70% | - | 70% | ||||||||||||||||||||||||||
Embedded derivatives | |||||||||||||||||||||||||||||||||
Direct and assumed guaranteed minimum benefits | • | Option pricing techniques | • | Mortality rates: | |||||||||||||||||||||||||||||
Ages 0 - 40 | 0% | - | 0.28% | 0% | - | 0.28% | Decrease (13) | ||||||||||||||||||||||||||
Ages 41 - 60 | 0.04% | - | 0.88% | 0.04% | - | 0.88% | Decrease (13) | ||||||||||||||||||||||||||
Ages 61 - 115 | 0.26% | - | 100% | 0.26% | - | 100% | Decrease (13) | ||||||||||||||||||||||||||
• | Lapse rates: | ||||||||||||||||||||||||||||||||
Durations 1 - 10 | 0.50% | - | 100% | 0.50% | - | 100% | Decrease (14) | ||||||||||||||||||||||||||
Durations 11 - 20 | 2% | - | 100% | 2% | - | 100% | Decrease (14) | ||||||||||||||||||||||||||
Durations 21 - 116 | 2% | - | 100% | 2% | - | 100% | Decrease (14) | ||||||||||||||||||||||||||
• | Utilization rates | 0% | - | 30% | 20% | - | 50% | Increase (15) | |||||||||||||||||||||||||
• | Withdrawal rates | 0% | - | 20% | 0% | - | 20% | -16 | |||||||||||||||||||||||||
• | Long-term equity volatilities | 8.88% | - | 33% | 7.30% | - | 33% | Increase (17) | |||||||||||||||||||||||||
• | Nonperformance risk spread | -0.15% | - | 1.00% | -0.35% | - | 0.81% | 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 are based on liability 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 | 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. | ||||||||||||||||||||||||||||||||
-9 | Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. | ||||||||||||||||||||||||||||||||
-10 | At both March 31, 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. | ||||||||||||||||||||||||||||||||
-11 | Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. | ||||||||||||||||||||||||||||||||
-12 | Changes are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. | ||||||||||||||||||||||||||||||||
-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. | Foreign | U.S. Treasury and Agency | Foreign | RMBS | State and | CMBS | ABS | ||||||||||||||||||||||||||
Corporate | Corporate | Government | Political | ||||||||||||||||||||||||||||||
Subdivision | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 6,942 | $ | 6,490 | $ | — | $ | 1,311 | $ | 4,383 | $ | — | $ | 765 | $ | 2,244 | |||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | — | 9 | — | 4 | 13 | — | — | — | |||||||||||||||||||||||||
Net investment gains (losses) | — | (11 | ) | — | (22 | ) | 2 | — | — | (7 | ) | ||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Policyholder benefits and claims | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
OCI | 57 | (132 | ) | — | 23 | (12 | ) | — | (7 | ) | (11 | ) | |||||||||||||||||||||
Purchases (3) | 431 | 178 | — | 43 | 509 | — | 73 | 868 | |||||||||||||||||||||||||
Sales (3) | (133 | ) | (109 | ) | — | (53 | ) | (240 | ) | — | (119 | ) | (212 | ) | |||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers into Level 3 (4) | 128 | 93 | — | 215 | — | 2 | — | 8 | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | (104 | ) | (110 | ) | — | (137 | ) | (110 | ) | — | (68 | ) | (437 | ) | |||||||||||||||||||
Balance, end of period | $ | 7,321 | $ | 6,408 | $ | — | $ | 1,384 | $ | 4,545 | $ | 2 | $ | 644 | $ | 2,453 | |||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | 6 | $ | — | $ | 3 | $ | 12 | $ | — | $ | — | $ | 1 | |||||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Policyholder benefits and claims | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Equity Securities | FVO and Trading Securities | ||||||||||||||||||||||||||||||||
Common | Non- | Actively | FVO | FVO | FVO | Short-term | Residential | ||||||||||||||||||||||||||
Stock | redeemable | Traded | General | Contractholder- | Securities | Investments | Mortgage | ||||||||||||||||||||||||||
Preferred | Securities | Account | directed | Held by CSEs | Loans - | ||||||||||||||||||||||||||||
Stock | Securities | Unit-linked | FVO | ||||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 95 | $ | 250 | $ | 5 | $ | 95 | $ | 455 | $ | 12 | $ | 336 | $ | 308 | |||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | (18 | ) | — | 1 | 22 | ||||||||||||||||||||||||
Net investment gains (losses) | (1 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Policyholder benefits and claims | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
OCI | 2 | (4 | ) | — | — | — | — | (1 | ) | — | |||||||||||||||||||||||
Purchases (3) | 5 | 4 | 5 | — | 108 | — | 1,332 | 60 | |||||||||||||||||||||||||
Sales (3) | (5 | ) | — | — | (6 | ) | (145 | ) | (1 | ) | (25 | ) | (49 | ) | |||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | (12 | ) | ||||||||||||||||||||||||
Transfers into Level 3 (4) | 1 | — | — | — | 39 | — | — | — | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | (3 | ) | (6 | ) | — | — | (27 | ) | (1 | ) | (285 | ) | — | ||||||||||||||||||||
Balance, end of period | $ | 94 | $ | 244 | $ | 10 | $ | 89 | $ | 412 | $ | 10 | $ | 1,358 | $ | 329 | |||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | (1 | ) | $ | (15 | ) | $ | — | $ | 1 | $ | 22 | |||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Policyholder benefits and claims | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Net Derivatives (6) | |||||||||||||||||||||||||||||||||
Interest | Foreign | Credit | Equity | Net | Separate | Long-term | |||||||||||||||||||||||||||
Rate | Currency | Market | Embedded | Account | Debt of | ||||||||||||||||||||||||||||
Exchange | Derivatives (7) | Assets (8) | CSEs — FVO | ||||||||||||||||||||||||||||||
Rate | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 63 | $ | (68 | ) | $ | 12 | $ | (307 | ) | $ | 430 | $ | 1,922 | $ | (13 | ) | ||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | 36 | — | ||||||||||||||||||||||||||
Net derivative gains (losses) | (1 | ) | (14 | ) | (2 | ) | (52 | ) | 27 | — | — | ||||||||||||||||||||||
Policyholder benefits and claims | — | — | — | 1 | 24 | — | — | ||||||||||||||||||||||||||
OCI | 15 | — | — | — | (2 | ) | — | — | |||||||||||||||||||||||||
Purchases (3) | — | — | — | — | — | 231 | — | ||||||||||||||||||||||||||
Sales (3) | — | — | — | — | — | (127 | ) | — | |||||||||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Settlements (3) | (8 | ) | 15 | — | 1 | (201 | ) | (1 | ) | 1 | |||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | — | 1 | — | ||||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | — | — | — | — | (6 | ) | — | |||||||||||||||||||||||||
Balance, end of period | $ | 69 | $ | (67 | ) | $ | 10 | $ | (357 | ) | $ | 278 | $ | 2,056 | $ | (12 | ) | ||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net derivative gains (losses) | $ | (1 | ) | $ | (11 | ) | $ | (1 | ) | $ | (52 | ) | $ | 22 | $ | — | $ | — | |||||||||||||||
Policyholder benefits and claims | $ | — | $ | — | $ | — | $ | 1 | $ | 25 | $ | — | $ | — | |||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | RMBS | State and | CMBS | ABS | ||||||||||||||||||||||||||
Corporate | Corporate | Treasury | Government | Political | |||||||||||||||||||||||||||||
and Agency | Subdivision | ||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 7,148 | $ | 6,704 | $ | 62 | $ | 2,235 | $ | 2,957 | $ | 10 | $ | 972 | $ | 4,210 | |||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | — | 9 | — | 6 | 10 | — | — | 5 | |||||||||||||||||||||||||
Net investment gains (losses) | (7 | ) | — | — | (6 | ) | 8 | — | 1 | (43 | ) | ||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Policyholder benefits and claims | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
OCI | 160 | 120 | — | 14 | (12 | ) | — | (25 | ) | 75 | |||||||||||||||||||||||
Purchases (3) | 651 | 471 | 25 | 74 | 571 | — | 103 | 652 | |||||||||||||||||||||||||
Sales (3) | (206 | ) | (109 | ) | — | (52 | ) | (192 | ) | — | (155 | ) | (315 | ) | |||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers into Level 3 (4) | 459 | 435 | — | 231 | 147 | 21 | 24 | 578 | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | (827 | ) | (1,129 | ) | (42 | ) | (957 | ) | (50 | ) | (10 | ) | (238 | ) | (2,362 | ) | |||||||||||||||||
Balance, end of period | $ | 7,378 | $ | 6,501 | $ | 45 | $ | 1,545 | $ | 3,439 | $ | 21 | $ | 682 | $ | 2,800 | |||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | 9 | $ | — | $ | 5 | $ | 10 | $ | — | $ | — | $ | — | |||||||||||||||||
Net investment gains (losses) | $ | (7 | ) | $ | — | $ | — | $ | — | $ | (1 | ) | $ | — | $ | — | $ | — | |||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Policyholder benefits and claims | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Equity Securities | FVO and Trading Securities | ||||||||||||||||||||||||||||||||
Common | Non- | Actively | FVO | FVO | FVO Securities | Short-term | Residential | ||||||||||||||||||||||||||
Stock | redeemable | Traded | General | Contractholder- | Held by CSEs | Investments | Mortgage | ||||||||||||||||||||||||||
Preferred | Securities | Account | directed | Loans - FVO | |||||||||||||||||||||||||||||
Stock | Securities | Unit-linked | |||||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 177 | $ | 395 | $ | 12 | $ | 29 | $ | 603 | $ | — | $ | 254 | $ | 338 | |||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | 14 | — | 1 | 3 | |||||||||||||||||||||||||
Net investment gains (losses) | 19 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Policyholder benefits and claims | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
OCI | (8 | ) | 6 | — | — | — | — | (1 | ) | — | |||||||||||||||||||||||
Purchases (3) | 3 | — | 11 | — | 237 | — | 947 | 28 | |||||||||||||||||||||||||
Sales (3) | (26 | ) | — | (5 | ) | — | (300 | ) | (1 | ) | (59 | ) | (5 | ) | |||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | (12 | ) | ||||||||||||||||||||||||
Transfers into Level 3 (4) | 38 | 40 | — | — | 96 | 12 | — | — | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | — | (7 | ) | — | (26 | ) | — | (110 | ) | — | ||||||||||||||||||||||
Balance, end of period | $ | 203 | $ | 441 | $ | 11 | $ | 29 | $ | 624 | $ | 11 | $ | 1,032 | $ | 352 | |||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | $ | 14 | $ | — | $ | 1 | $ | 3 | |||||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Policyholder benefits and claims | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Net Derivatives (6) | |||||||||||||||||||||||||||||||||
Interest | Foreign | Credit | Equity | Net | Separate | Long-term | |||||||||||||||||||||||||||
Rate | Currency | Market | Embedded | Account | Debt of | ||||||||||||||||||||||||||||
Exchange | Derivatives (7) | Assets (8) | CSEs — FVO | ||||||||||||||||||||||||||||||
Rate | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 13 | $ | (11 | ) | $ | 29 | $ | (317 | ) | $ | 1,258 | $ | 1,465 | $ | (28 | ) | ||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | 44 | — | ||||||||||||||||||||||||||
Net derivative gains (losses) | 7 | (1 | ) | (6 | ) | (43 | ) | (95 | ) | — | — | ||||||||||||||||||||||
Policyholder benefits and claims | — | — | — | 4 | 15 | — | — | ||||||||||||||||||||||||||
OCI | 37 | (2 | ) | — | — | (5 | ) | — | — | ||||||||||||||||||||||||
Purchases (3) | — | — | — | — | — | 321 | — | ||||||||||||||||||||||||||
Sales (3) | — | — | — | — | — | (83 | ) | — | |||||||||||||||||||||||||
Issuances (3) | — | — | (3 | ) | — | — | 25 | — | |||||||||||||||||||||||||
Settlements (3) | (1 | ) | 1 | — | — | (193 | ) | (2 | ) | 13 | |||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | — | 18 | — | ||||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | — | — | — | — | (58 | ) | — | |||||||||||||||||||||||||
Balance, end of period | $ | 56 | $ | (13 | ) | $ | 20 | $ | (356 | ) | $ | 980 | $ | 1,730 | $ | (15 | ) | ||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net derivative gains (losses) | $ | 6 | $ | — | $ | (6 | ) | $ | (42 | ) | $ | (94 | ) | $ | — | $ | — | ||||||||||||||||
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), while changes in estimated fair value of residential mortgage loans - FVO are included in net investment income. Lapses associated with net embedded derivatives are included in net derivative gains (losses). | ||||||||||||||||||||||||||||||||
-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 accounted for under the FVO. These assets and liabilities were initially measured at fair value. | ||||||||||||||||||||||||||||||||
Residential Mortgage | Certain Assets | ||||||||||||||||||||||||||||||||
Loans — FVO | and Liabilities | ||||||||||||||||||||||||||||||||
of CSEs — FVO (1) | |||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Unpaid principal balance | $ | 466 | $ | 436 | $ | 218 | $ | 223 | |||||||||||||||||||||||||
Difference between estimated fair value and unpaid principal balance | (137 | ) | (128 | ) | 54 | 57 | |||||||||||||||||||||||||||
Carrying value at estimated fair value | $ | 329 | $ | 308 | $ | 272 | $ | 280 | |||||||||||||||||||||||||
Loans in non-accrual status | $ | 162 | $ | 125 | $ | — | $ | — | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Contractual principal balance | $ | 152 | $ | 159 | |||||||||||||||||||||||||||||
Difference between estimated fair value and contractual principal balance | (9 | ) | (8 | ) | |||||||||||||||||||||||||||||
Carrying value at estimated fair value | $ | 143 | $ | 151 | |||||||||||||||||||||||||||||
__________________ | |||||||||||||||||||||||||||||||||
-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) | $ | 95 | $ | 199 | $ | 4 | $ | — | |||||||||||||||||||||||||
Other limited partnership interests (2) | $ | 22 | $ | 4 | $ | (11 | ) | $ | (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 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Value | Estimated | ||||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Mortgage loans | $ | 61,808 | $ | — | $ | — | $ | 64,567 | $ | 64,567 | |||||||||||||||||||||||
Policy loans | $ | 11,606 | $ | — | $ | 1,664 | $ | 12,403 | $ | 14,067 | |||||||||||||||||||||||
Real estate joint ventures | $ | 56 | $ | — | $ | — | $ | 136 | $ | 136 | |||||||||||||||||||||||
Other limited partnership interests | $ | 643 | $ | — | $ | — | $ | 834 | $ | 834 | |||||||||||||||||||||||
Other invested assets | $ | 598 | $ | 157 | $ | 41 | $ | 400 | $ | 598 | |||||||||||||||||||||||
Premiums, reinsurance and other receivables | $ | 4,251 | $ | — | $ | 1,904 | $ | 2,447 | $ | 4,351 | |||||||||||||||||||||||
Other assets | $ | 248 | $ | — | $ | 171 | $ | 66 | $ | 237 | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Policyholder account balances | $ | 130,996 | $ | — | $ | — | $ | 136,355 | $ | 136,355 | |||||||||||||||||||||||
Long-term debt | $ | 17,564 | $ | — | $ | 20,042 | $ | — | $ | 20,042 | |||||||||||||||||||||||
Collateral financing arrangements | $ | 4,196 | $ | — | $ | — | $ | 3,958 | $ | 3,958 | |||||||||||||||||||||||
Junior subordinated debt securities | $ | 3,193 | $ | — | $ | 4,353 | $ | — | $ | 4,353 | |||||||||||||||||||||||
Other liabilities | $ | 6,305 | $ | — | $ | 4,984 | $ | 1,323 | $ | 6,307 | |||||||||||||||||||||||
Separate account liabilities | $ | 119,568 | $ | — | $ | 119,568 | $ | — | $ | 119,568 | |||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Value | Estimated | ||||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Mortgage loans | $ | 59,530 | $ | — | $ | — | $ | 62,554 | $ | 62,554 | |||||||||||||||||||||||
Policy loans | $ | 11,618 | $ | — | $ | 1,647 | $ | 12,287 | $ | 13,934 | |||||||||||||||||||||||
Real estate joint ventures | $ | 67 | $ | — | $ | — | $ | 139 | $ | 139 | |||||||||||||||||||||||
Other limited partnership interests | $ | 704 | $ | — | $ | — | $ | 906 | $ | 906 | |||||||||||||||||||||||
Other invested assets | $ | 562 | $ | 172 | $ | 70 | $ | 320 | $ | 562 | |||||||||||||||||||||||
Premiums, reinsurance and other receivables | $ | 3,070 | $ | — | $ | 713 | $ | 2,444 | $ | 3,157 | |||||||||||||||||||||||
Other assets | $ | 251 | $ | — | $ | 175 | $ | 68 | $ | 243 | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Policyholder account balances | $ | 134,219 | $ | — | $ | — | $ | 139,359 | $ | 139,359 | |||||||||||||||||||||||
Long-term debt | $ | 16,128 | $ | — | $ | 18,357 | $ | — | $ | 18,357 | |||||||||||||||||||||||
Collateral financing arrangements | $ | 4,196 | $ | — | $ | — | $ | 3,961 | $ | 3,961 | |||||||||||||||||||||||
Junior subordinated debt securities | $ | 3,193 | $ | — | $ | 4,173 | $ | — | $ | 4,173 | |||||||||||||||||||||||
Other liabilities | $ | 2,544 | $ | — | $ | 1,223 | $ | 1,323 | $ | 2,546 | |||||||||||||||||||||||
Separate account liabilities | $ | 116,665 | $ | — | $ | 116,665 | $ | — | $ | 116,665 | |||||||||||||||||||||||
Equity_Tables
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 attributable to MetLife, Inc., was as follows: | |||||||||||||||||||
Three Months | ||||||||||||||||||||
Ended | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
Unrealized | Unrealized | Foreign | Defined | Total | ||||||||||||||||
Investment Gains | Gains (Losses) | Currency | Benefit | |||||||||||||||||
(Losses), Net of | on Derivatives | Translation | Plans | |||||||||||||||||
Related Offsets (1) | Adjustments | Adjustment | ||||||||||||||||||
(In millions) | ||||||||||||||||||||
Balance, beginning of period | $ | 15,159 | $ | 1,076 | $ | (3,303 | ) | $ | (2,283 | ) | $ | 10,649 | ||||||||
OCI before reclassifications | 1,626 | 187 | (670 | ) | — | 1,143 | ||||||||||||||
Deferred income tax benefit (expense) | (501 | ) | (66 | ) | (13 | ) | — | (580 | ) | |||||||||||
OCI before reclassifications, net of income tax | 16,284 | 1,197 | (3,986 | ) | (2,283 | ) | 11,212 | |||||||||||||
Amounts reclassified from AOCI | (113 | ) | 554 | — | 57 | 498 | ||||||||||||||
Deferred income tax benefit (expense) | 35 | (196 | ) | — | (20 | ) | (181 | ) | ||||||||||||
Amounts reclassified from AOCI, net of income tax | (78 | ) | 358 | — | 37 | 317 | ||||||||||||||
Balance, end of period | $ | 16,206 | $ | 1,555 | $ | (3,986 | ) | $ | (2,246 | ) | $ | 11,529 | ||||||||
Three Months | ||||||||||||||||||||
Ended | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Unrealized | Unrealized | Foreign | Defined | Total | ||||||||||||||||
Investment Gains | Gains (Losses) | Currency | Benefit | |||||||||||||||||
(Losses), Net of | on Derivatives | Translation | Plans | |||||||||||||||||
Related Offsets (1) | Adjustments | Adjustment | ||||||||||||||||||
(In millions) | ||||||||||||||||||||
Balance, beginning of period | $ | 8,183 | $ | 231 | $ | (1,659 | ) | $ | (1,651 | ) | $ | 5,104 | ||||||||
OCI before reclassifications | 4,852 | 321 | (217 | ) | — | 4,956 | ||||||||||||||
Deferred income tax benefit (expense) | (1,645 | ) | (113 | ) | 33 | — | (1,725 | ) | ||||||||||||
OCI before reclassifications, net of income tax | 11,390 | 439 | (1,843 | ) | (1,651 | ) | 8,335 | |||||||||||||
Amounts reclassified from AOCI | (173 | ) | (54 | ) | — | 45 | (182 | ) | ||||||||||||
Deferred income tax benefit (expense) | 59 | 19 | — | (16 | ) | 62 | ||||||||||||||
Amounts reclassified from AOCI, net of income tax | (114 | ) | (35 | ) | — | 29 | (120 | ) | ||||||||||||
Balance, end of period | $ | 11,276 | $ | 404 | $ | (1,843 | ) | $ | (1,622 | ) | $ | 8,215 | ||||||||
__________________ | ||||||||||||||||||||
-1 | See Note 5 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation. | |||||||||||||||||||
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) | $ | 139 | $ | 112 | Net investment gains (losses) | |||||||||||||||
Net unrealized investment gains (losses) | 40 | 26 | Net investment income | |||||||||||||||||
Net unrealized investment gains (losses) | (66 | ) | 35 | Net derivative gains (losses) | ||||||||||||||||
Net unrealized investment gains (losses), before income tax | 113 | 173 | ||||||||||||||||||
Income tax (expense) benefit | (35 | ) | (59 | ) | ||||||||||||||||
Net unrealized investment gains (losses), net of income tax | $ | 78 | $ | 114 | ||||||||||||||||
Unrealized gains (losses) on derivatives - cash flow hedges: | ||||||||||||||||||||
Interest rate swaps | $ | 5 | $ | 15 | Net derivative gains (losses) | |||||||||||||||
Interest rate swaps | 3 | 2 | Net investment income | |||||||||||||||||
Interest rate forwards | 3 | — | Net derivative gains (losses) | |||||||||||||||||
Interest rate forwards | 1 | 1 | Net investment income | |||||||||||||||||
Interest rate forwards | 1 | — | Other expenses | |||||||||||||||||
Foreign currency swaps | (567 | ) | 36 | Net derivative gains (losses) | ||||||||||||||||
Foreign currency swaps | — | (1 | ) | Net investment income | ||||||||||||||||
Foreign currency swaps | — | 1 | Other expenses | |||||||||||||||||
Gains (losses) on cash flow hedges, before income tax | (554 | ) | 54 | |||||||||||||||||
Income tax (expense) benefit | 196 | (19 | ) | |||||||||||||||||
Gains (losses) on cash flow hedges, net of income tax | $ | (358 | ) | $ | 35 | |||||||||||||||
Defined benefit plans adjustment: (1) | ||||||||||||||||||||
Amortization of net actuarial gains (losses) | $ | (58 | ) | $ | (44 | ) | ||||||||||||||
Amortization of prior service (costs) credit | 1 | (1 | ) | |||||||||||||||||
Amortization of defined benefit plan items, before | (57 | ) | (45 | ) | ||||||||||||||||
income tax | ||||||||||||||||||||
Income tax (expense) benefit | 20 | 16 | ||||||||||||||||||
Amortization of defined benefit plan items, net of income tax | $ | (37 | ) | $ | (29 | ) | ||||||||||||||
Total reclassifications, net of income tax | $ | (317 | ) | $ | 120 | |||||||||||||||
__________________ | ||||||||||||||||||||
-1 | These AOCI components are included in the computation of net periodic benefit costs. See Note 11. |
Other_Expenses_Tables
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 | $ | 1,291 | $ | 1,205 | ||||
Pension, postretirement and postemployment benefit costs | 92 | 120 | ||||||
Commissions | 1,157 | 1,288 | ||||||
Volume-related costs | 242 | 201 | ||||||
Capitalization of DAC | (968 | ) | (1,046 | ) | ||||
Amortization of DAC and VOBA | 1,025 | 1,058 | ||||||
Amortization of negative VOBA | (100 | ) | (115 | ) | ||||
Interest expense on debt | 298 | 312 | ||||||
Premium taxes, licenses and fees | 173 | 225 | ||||||
Professional services | 330 | 321 | ||||||
Rent and related expenses, net of sublease income | 83 | 85 | ||||||
Other | 437 | 509 | ||||||
Total other expenses | $ | 4,060 | $ | 4,163 | ||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Net periodic benefit costs | The components of net periodic benefit costs were as follows: | |||||||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Service costs | $ | 54 | $ | 15 | $ | 4 | $ | — | $ | 50 | $ | 20 | $ | 3 | $ | — | ||||||||||||||||
Interest costs | 101 | 4 | 22 | 1 | 109 | 3 | 23 | 1 | ||||||||||||||||||||||||
Expected return on plan assets | (134 | ) | (2 | ) | (20 | ) | — | (119 | ) | (2 | ) | (19 | ) | — | ||||||||||||||||||
Amortization of net actuarial (gains) losses | 47 | 1 | 10 | — | 41 | — | 3 | — | ||||||||||||||||||||||||
Amortization of prior service costs (credit) | — | — | (1 | ) | — | 1 | — | — | — | |||||||||||||||||||||||
Net periodic benefit costs | $ | 68 | $ | 18 | $ | 15 | $ | 1 | $ | 82 | $ | 21 | $ | 10 | $ | 1 | ||||||||||||||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Common Share | The following table presents the weighted average shares used in calculating basic earnings per common share and those used in calculating diluted earnings per common share for each income category presented below: | |||||||
Three Months | ||||||||
Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
(In millions, except share and per share data) | ||||||||
Weighted Average Shares | ||||||||
Weighted average common stock outstanding for basic earnings per common share | 1,125,703,588 | 1,126,922,641 | ||||||
Incremental common shares from assumed: | ||||||||
Stock purchase contracts underlying common equity units | — | 3,385,696 | ||||||
Exercise or issuance of stock-based awards | 10,057,530 | 10,157,701 | ||||||
Weighted average common stock outstanding for diluted earnings per common share | 1,135,761,118 | 1,140,466,038 | ||||||
Income (Loss) from Continuing Operations | ||||||||
Income (loss) from continuing operations, net of income tax | $ | 2,163 | $ | 1,342 | ||||
Less: Income (loss) from continuing operations, net of income tax, attributable to noncontrolling interests | 5 | 11 | ||||||
Less: Preferred stock dividends | 30 | 30 | ||||||
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders | $ | 2,128 | $ | 1,301 | ||||
Basic | $ | 1.89 | $ | 1.15 | ||||
Diluted | $ | 1.87 | $ | 1.14 | ||||
Income (Loss) from Discontinued Operations | ||||||||
Income (loss) from discontinued operations, net of income tax | $ | — | $ | (3 | ) | |||
Less: Income (loss) from discontinued operations, net of income tax, attributable to noncontrolling interests | — | — | ||||||
Income (loss) from discontinued operations, net of income tax, available to MetLife, Inc.’s common shareholders | $ | — | $ | (3 | ) | |||
Basic | $ | — | $ | — | ||||
Diluted | $ | — | $ | — | ||||
Net Income (Loss) | ||||||||
Net income (loss) | $ | 2,163 | $ | 1,339 | ||||
Less: Net income (loss) attributable to noncontrolling interests | 5 | 11 | ||||||
Less: Preferred stock dividends | 30 | 30 | ||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 2,128 | $ | 1,298 | ||||
Basic | $ | 1.89 | $ | 1.15 | ||||
Diluted | $ | 1.87 | $ | 1.14 | ||||
Business_Basis_of_Presentation2
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 | 6 |
Segment_Information_Earnings_D
Segment Information (Earnings) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues | ||
Premiums | $9,253 | $9,219 |
Universal life and investment-type product policy fees | 2,394 | 2,421 |
Net investment income | 5,461 | 5,035 |
Other revenues | 495 | 478 |
Net investment gains (losses) | 286 | -411 |
Net derivative gains (losses) | 821 | 343 |
Total revenues | 18,710 | 17,085 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 9,596 | 9,627 |
Interest credited to policyholder account balances | 1,995 | 1,469 |
Capitalization of DAC | -968 | -1,046 |
Amortization of DAC and VOBA | 1,025 | 1,058 |
Amortization of negative VOBA | -100 | -115 |
Interest expense on debt | 298 | 312 |
Other expenses | 3,805 | 3,954 |
Total expenses | 15,651 | 15,259 |
Provision for income tax expense (benefit) | 896 | 484 |
Income (loss) from continuing operations, net of income tax | 2,163 | 1,342 |
Operating Segments | ||
Revenues | ||
Premiums | 9,253 | 9,217 |
Universal life and investment-type product policy fees | 2,294 | 2,323 |
Net investment income | 4,982 | 5,085 |
Other revenues | 503 | 491 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 17,032 | 17,116 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 9,447 | 9,373 |
Interest credited to policyholder account balances | 1,331 | 1,401 |
Capitalization of DAC | -968 | -1,046 |
Amortization of DAC and VOBA | 953 | 1,050 |
Amortization of negative VOBA | -90 | -103 |
Interest expense on debt | 297 | 294 |
Other expenses | 3,800 | 3,951 |
Total expenses | 14,770 | 14,920 |
Provision for income tax expense (benefit) | 594 | 604 |
Operating earnings | 1,668 | 1,592 |
Operating Segments | Americas | ||
Revenues | ||
Premiums | 6,983 | 6,710 |
Universal life and investment-type product policy fees | 1,772 | 1,792 |
Net investment income | 4,106 | 4,129 |
Other revenues | 445 | 427 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 13,306 | 13,058 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 7,856 | 7,692 |
Interest credited to policyholder account balances | 958 | 971 |
Capitalization of DAC | -400 | -376 |
Amortization of DAC and VOBA | 499 | 548 |
Amortization of negative VOBA | 0 | 0 |
Interest expense on debt | 0 | 2 |
Other expenses | 2,389 | 2,321 |
Total expenses | 11,302 | 11,158 |
Provision for income tax expense (benefit) | 623 | 576 |
Operating earnings | 1,381 | 1,324 |
Operating Segments | Retail | ||
Revenues | ||
Premiums | 1,749 | 1,724 |
Universal life and investment-type product policy fees | 1,236 | 1,247 |
Net investment income | 1,980 | 1,994 |
Other revenues | 251 | 245 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 5,216 | 5,210 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 2,449 | 2,407 |
Interest credited to policyholder account balances | 542 | 555 |
Capitalization of DAC | -247 | -234 |
Amortization of DAC and VOBA | 375 | 429 |
Amortization of negative VOBA | 0 | 0 |
Interest expense on debt | -1 | 0 |
Other expenses | 1,176 | 1,142 |
Total expenses | 4,294 | 4,299 |
Provision for income tax expense (benefit) | 269 | 275 |
Operating earnings | 653 | 636 |
Operating Segments | Group, Voluntary & Worksite Benefits | ||
Revenues | ||
Premiums | 4,117 | 4,002 |
Universal life and investment-type product policy fees | 188 | 177 |
Net investment income | 478 | 456 |
Other revenues | 113 | 107 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 4,896 | 4,742 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 3,835 | 3,781 |
Interest credited to policyholder account balances | 37 | 40 |
Capitalization of DAC | -36 | -34 |
Amortization of DAC and VOBA | 41 | 36 |
Amortization of negative VOBA | 0 | 0 |
Interest expense on debt | 0 | 0 |
Other expenses | 664 | 628 |
Total expenses | 4,541 | 4,451 |
Provision for income tax expense (benefit) | 127 | 101 |
Operating earnings | 228 | 190 |
Operating Segments | Corporate Benefit Funding | ||
Revenues | ||
Premiums | 418 | 301 |
Universal life and investment-type product policy fees | 54 | 57 |
Net investment income | 1,430 | 1,382 |
Other revenues | 71 | 68 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 1,973 | 1,808 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 991 | 888 |
Interest credited to policyholder account balances | 293 | 278 |
Capitalization of DAC | -6 | -1 |
Amortization of DAC and VOBA | 5 | 4 |
Amortization of negative VOBA | 0 | 0 |
Interest expense on debt | 1 | 2 |
Other expenses | 124 | 115 |
Total expenses | 1,408 | 1,286 |
Provision for income tax expense (benefit) | 196 | 182 |
Operating earnings | 369 | 340 |
Operating Segments | Latin America | ||
Revenues | ||
Premiums | 699 | 683 |
Universal life and investment-type product policy fees | 294 | 311 |
Net investment income | 218 | 297 |
Other revenues | 10 | 7 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 1,221 | 1,298 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 581 | 616 |
Interest credited to policyholder account balances | 86 | 98 |
Capitalization of DAC | -111 | -107 |
Amortization of DAC and VOBA | 78 | 79 |
Amortization of negative VOBA | 0 | 0 |
Interest expense on debt | 0 | 0 |
Other expenses | 425 | 436 |
Total expenses | 1,059 | 1,122 |
Provision for income tax expense (benefit) | 31 | 18 |
Operating earnings | 131 | 158 |
Operating Segments | Asia | ||
Revenues | ||
Premiums | 1,752 | 1,890 |
Universal life and investment-type product policy fees | 397 | 389 |
Net investment income | 684 | 700 |
Other revenues | 28 | 27 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 2,861 | 3,006 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 1,340 | 1,397 |
Interest credited to policyholder account balances | 337 | 387 |
Capitalization of DAC | -435 | -494 |
Amortization of DAC and VOBA | 326 | 338 |
Amortization of negative VOBA | -86 | -94 |
Interest expense on debt | 0 | 0 |
Other expenses | 904 | 991 |
Total expenses | 2,386 | 2,525 |
Provision for income tax expense (benefit) | 148 | 148 |
Operating earnings | 327 | 333 |
Operating Segments | Europe, the Middle East and Africa | ||
Revenues | ||
Premiums | 508 | 597 |
Universal life and investment-type product policy fees | 102 | 109 |
Net investment income | 83 | 107 |
Other revenues | 10 | 16 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 703 | 829 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 239 | 261 |
Interest credited to policyholder account balances | 30 | 34 |
Capitalization of DAC | -133 | -176 |
Amortization of DAC and VOBA | 128 | 164 |
Amortization of negative VOBA | -4 | -9 |
Interest expense on debt | 0 | 0 |
Other expenses | 362 | 464 |
Total expenses | 622 | 738 |
Provision for income tax expense (benefit) | 11 | 20 |
Operating earnings | 70 | 71 |
Operating Segments | Corporate & Other | ||
Revenues | ||
Premiums | 10 | 20 |
Universal life and investment-type product policy fees | 23 | 33 |
Net investment income | 109 | 149 |
Other revenues | 20 | 21 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 162 | 223 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 12 | 23 |
Interest credited to policyholder account balances | 6 | 9 |
Capitalization of DAC | 0 | 0 |
Amortization of DAC and VOBA | 0 | 0 |
Amortization of negative VOBA | 0 | 0 |
Interest expense on debt | 297 | 292 |
Other expenses | 145 | 175 |
Total expenses | 460 | 499 |
Provision for income tax expense (benefit) | -188 | -140 |
Operating earnings | -110 | -136 |
Significant Reconciling Items | ||
Revenues | ||
Premiums | 0 | 2 |
Universal life and investment-type product policy fees | 100 | 98 |
Net investment income | 479 | -50 |
Other revenues | -8 | -13 |
Net investment gains (losses) | 286 | -411 |
Net derivative gains (losses) | 821 | 343 |
Total revenues | 1,678 | -31 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 149 | 254 |
Interest credited to policyholder account balances | 664 | 68 |
Capitalization of DAC | 0 | 0 |
Amortization of DAC and VOBA | 72 | 8 |
Amortization of negative VOBA | -10 | -12 |
Interest expense on debt | 1 | 18 |
Other expenses | 5 | 3 |
Total expenses | 881 | 339 |
Provision for income tax expense (benefit) | $302 | ($120) |
Segment_Information_Total_Asse
Segment Information (Total Assets) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Total assets | $919,790 | $902,337 |
Retail | ||
Segment Reporting Information [Line Items] | ||
Total assets | 363,783 | 359,188 |
Group, Voluntary & Worksite Benefits | ||
Segment Reporting Information [Line Items] | ||
Total assets | 48,474 | 46,483 |
Corporate Benefit Funding | ||
Segment Reporting Information [Line Items] | ||
Total assets | 236,925 | 228,543 |
Latin America | ||
Segment Reporting Information [Line Items] | ||
Total assets | 72,074 | 72,259 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Total assets | 116,278 | 117,894 |
Europe, the Middle East and Africa | ||
Segment Reporting Information [Line Items] | ||
Total assets | 27,991 | 29,217 |
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $54,265 | $48,753 |
Segment_Information_Narrative_
Segment Information (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment | ||
Segment Reporting [Abstract] | ||
Number of segments | 6 | |
Corporate Benefit Funding | ||
Segment Reporting Information [Line Items] | ||
Prior Period Reclassification Adjustment | $15 | |
Prior Period Adjustment To Operating Earnings Tax Expense | -8 | |
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Prior Period Reclassification Adjustment | 26 | |
Prior Period Adjustment To Operating Earnings Tax Expense | 73 | |
Retail | ||
Segment Reporting Information [Line Items] | ||
Prior Period Reclassification Adjustment | 24 | |
Prior Period Adjustment To Operating Earnings Tax Expense | -44 | |
Group, Voluntary & Worksite Benefits | ||
Segment Reporting Information [Line Items] | ||
Prior Period Reclassification Adjustment | 2 | |
Prior Period Adjustment To Operating Earnings Tax Expense | 1 | |
Latin America | ||
Segment Reporting Information [Line Items] | ||
Prior Period Reclassification Adjustment | 25 | |
Prior Period Adjustment To Operating Earnings Tax Expense | -16 | |
Asia | ||
Segment Reporting Information [Line Items] | ||
Prior Period Reclassification Adjustment | 5 | |
Prior Period Adjustment To Operating Earnings Tax Expense | 1 | |
Europe, Middle East And Africa Segment | ||
Segment Reporting Information [Line Items] | ||
Prior Period Reclassification Adjustment | 17 | |
Prior Period Adjustment To Operating Earnings Tax Expense | ($7) |
Insurance_Guarantees_Related_t
Insurance (Guarantees Related to Annuity Contracts) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Variable Annuity Guarantees | Guaranteed Death Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $197,400 | $196,595 |
Separate account value in event of death | 165,322 | 163,566 |
Net amount at risk in event of death | 3,892 | 4,230 |
Average attained age of contractholders | 65 years | 65 years |
Variable Annuity Guarantees | Guaranteed Annuitization Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | 99,960 | 99,000 |
Separate account value at annuitization | 96,933 | 95,963 |
Net amount at risk at annuitization | 1,996 | 1,770 |
Average attained age of contractholders | 66 years | 65 years |
Two Tier and Other Annuities | Guaranteed Annuitization Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | 939 | 1,040 |
Net amount at risk at annuitization | $301 | $340 |
Average attained age of contractholders | 50 years | 50 years |
Insurance_Guarantees_Related_t1
Insurance (Guarantees Related to Universal and Variable Life Contracts) (Details) (Universal And Variable Life Contracts, USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Secondary Guarantees | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value (general and separate account) | $17,072 | $16,875 |
Net amount at risk | 178,870 | 180,069 |
Average attained age of policyholders | 56 years | 56 years |
Paid-Up Guarantees | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value (general and separate account) | 3,556 | 3,587 |
Net amount at risk | $19,980 | $20,344 |
Average attained age of policyholders | 61 years | 61 years |
Closed_Block_Liabilities_and_A
Closed Block (Liabilities and Assets) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | |||
Closed Block Liabilities | |||
Future policy benefits | $41,481 | $41,667 | |
Other policy-related balances | 309 | 265 | |
Policyholder dividends payable | 479 | 461 | |
Policyholder dividend obligation | 3,483 | 3,155 | 1,771 |
Current income tax payable | 3 | 1 | |
Other liabilities | 482 | 646 | |
Total closed block liabilities | 46,237 | 46,195 | |
Assets Designated to the Closed Block | |||
Fixed maturity securities available-for-sale, at estimated fair value | 29,093 | 29,199 | |
Equity securities available-for-sale, at estimated fair value | 98 | 91 | |
Mortgage loans | 6,103 | 6,076 | |
Policy loans | 4,643 | 4,646 | |
Real estate and real estate joint ventures | 651 | 666 | |
Other invested assets | 1,123 | 1,065 | |
Total investments | 41,711 | 41,743 | |
Cash and cash equivalents | 323 | 227 | |
Accrued investment income | 483 | 477 | |
Premiums, reinsurance and other receivables | 78 | 67 | |
Deferred income tax assets | 277 | 289 | |
Total assets designated to the closed block | 42,872 | 42,803 | |
Excess of closed block liabilities over assets designated to the closed block | 3,365 | 3,392 | |
Amounts included in accumulated other comprehensive income (loss) (“AOCIâ€) | |||
Unrealized investment gains (losses), net of income tax | 2,441 | 2,291 | |
Unrealized gains (losses) on derivatives, net of income tax | 63 | 28 | |
Allocated to policyholder dividend obligation, net of income tax | -2,264 | -2,051 | |
Total amounts included in AOCI | 240 | 268 | |
Maximum future earnings to be recognized from closed block assets and liabilities | $3,605 | $3,660 |
Closed_Block_Policyholder_Divi
Closed Block (Policyholder Dividend Obligation) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Closed block policyholder dividend obligation | ||
Balance, beginning of period | $3,155 | $1,771 |
Change in unrealized investment and derivative gains (losses) | 328 | 1,384 |
Balance, end of period | $3,483 | $3,155 |
Closed_Block_Revenues_and_Expe
Closed Block (Revenues and Expenses) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues | ||
Premiums | $430 | $446 |
Net investment income | 515 | 530 |
Net investment gains (losses) | -1 | 0 |
Net derivative gains (losses) | 25 | -1 |
Total revenues | 969 | 975 |
Expenses | ||
Policyholder benefits and claims | 608 | 624 |
Policyholder dividends | 240 | 233 |
Other expenses | 37 | 41 |
Total expenses | 885 | 898 |
Revenues, net of expenses before provision for income tax expense (benefit) | 84 | 77 |
Provision for income tax expense (benefit) | 29 | 27 |
Revenues, net of expenses and provision for income tax expense (benefit) | $55 | $50 |
Investments_Fixed_Maturity_and
Investments (Fixed Maturity and Equity Securities Available-For-Sale by Sector) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | $332,909 | $334,780 | |
Cost or Amortized Cost | 3,133 | 3,076 | |
Gross Unrealized OTTI Loss | 84 | 112 | 218 |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $332,909 and $334,780, respectively; includes $4,326 and $4,266, respectively, relating to variable interest entities) | 366,275 | 365,425 | |
Equity securities | 3,713 | 3,631 | |
Fixed Maturity Securities | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 332,909 | 334,780 | |
Gross Unrealized Gain | 35,574 | 32,634 | |
Gross Unrealized Temporary Loss | 2,124 | 1,877 | |
Gross Unrealized OTTI Loss | 84 | 112 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $332,909 and $334,780, respectively; includes $4,326 and $4,266, respectively, relating to variable interest entities) | 366,275 | 365,425 | |
U.S. corporate | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 95,661 | 96,235 | |
Gross Unrealized Gain | 11,231 | 10,343 | |
Gross Unrealized Temporary Loss | 557 | 624 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $332,909 and $334,780, respectively; includes $4,326 and $4,266, respectively, relating to variable interest entities) | 106,335 | 105,954 | |
Foreign corporate | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 56,728 | 57,695 | |
Gross Unrealized Gain | 4,781 | 4,651 | |
Gross Unrealized Temporary Loss | 1,008 | 664 | |
Gross Unrealized OTTI Loss | 7 | 7 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $332,909 and $334,780, respectively; includes $4,326 and $4,266, respectively, relating to variable interest entities) | 60,494 | 61,675 | |
Foreign government | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 46,384 | 47,327 | |
Gross Unrealized Gain | 6,106 | 5,500 | |
Gross Unrealized Temporary Loss | 129 | 161 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $332,909 and $334,780, respectively; includes $4,326 and $4,266, respectively, relating to variable interest entities) | 52,361 | 52,666 | |
RMBS | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 41,836 | 38,064 | |
Gross Unrealized Gain | 2,234 | 2,102 | |
Gross Unrealized Temporary Loss | 208 | 214 | |
Gross Unrealized OTTI Loss | 78 | 106 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $332,909 and $334,780, respectively; includes $4,326 and $4,266, respectively, relating to variable interest entities) | 43,784 | 39,846 | |
U.S. Treasury and agency | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 52,560 | 54,654 | |
Gross Unrealized Gain | 7,946 | 6,892 | |
Gross Unrealized Temporary Loss | 34 | 30 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $332,909 and $334,780, respectively; includes $4,326 and $4,266, respectively, relating to variable interest entities) | 60,472 | 61,516 | |
CMBS (1) | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 12,762 | 13,762 | |
Gross Unrealized Gain | 605 | 615 | |
Gross Unrealized Temporary Loss | 57 | 46 | |
Gross Unrealized OTTI Loss | -1 | -1 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $332,909 and $334,780, respectively; includes $4,326 and $4,266, respectively, relating to variable interest entities) | 13,311 | 14,332 | |
ABS | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 13,685 | 14,121 | |
Gross Unrealized Gain | 226 | 240 | |
Gross Unrealized Temporary Loss | 103 | 112 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $332,909 and $334,780, respectively; includes $4,326 and $4,266, respectively, relating to variable interest entities) | 13,808 | 14,249 | |
State and political subdivision | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 13,293 | 12,922 | |
Gross Unrealized Gain | 2,445 | 2,291 | |
Gross Unrealized Temporary Loss | 28 | 26 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $332,909 and $334,780, respectively; includes $4,326 and $4,266, respectively, relating to variable interest entities) | 15,710 | 15,187 | |
Equity securities | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 3,133 | 3,076 | |
Gross Unrealized Gain | 649 | 622 | |
Gross Unrealized Temporary Loss | 69 | 67 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Equity securities | 3,713 | 3,631 | |
Common Stock | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 2,037 | 1,990 | |
Gross Unrealized Gain | 563 | 554 | |
Gross Unrealized Temporary Loss | 25 | 28 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Equity securities | 2,575 | 2,516 | |
Non-redeemable preferred stock | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 1,096 | 1,086 | |
Gross Unrealized Gain | 86 | 68 | |
Gross Unrealized Temporary Loss | 44 | 39 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Equity securities | $1,138 | $1,115 |
Investments_Maturities_of_Fixe
Investments (Maturities of Fixed Maturity Securities) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost, Due in one year or less | $13,740 | |
Amortized Cost, Due after one year through five years | 71,252 | |
Amortized Cost, Due after five years through ten years | 75,395 | |
Amortized Cost, Due after ten years | 104,239 | |
Amortized Cost, RMBS, CMBS and ABS | 68,283 | |
Amortized Cost, Subtotal | 332,909 | 334,780 |
Estimated Fair Value, Due in one year or less | 13,916 | |
Estimated Fair Value, Due after one year through five years | 74,840 | |
Estimated Fair Value, Due after five years through ten years | 81,857 | |
Estimated Fair Value, Due after ten years | 124,759 | |
Estimated fair value, Mortgage-backed and asset-backed securities | 70,903 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $332,909 and $334,780, respectively; includes $4,326 and $4,266, respectively, relating to variable interest entities) | $366,275 | $365,425 |
Investments_Continuous_Gross_U
Investments (Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities Available-For-Sale) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | 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 | 2,704 | 3,153 |
Total number of securities in an unrealized loss position equal to or greater than 12 months | 1,122 | 1,435 |
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 | $33,129 | $40,798 |
Less than 12 Months Gross Unrealized Loss | 1,439 | 1,101 |
Equal to or Greater than 12 Months Estimated Fair Value | 8,812 | 13,881 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 769 | 888 |
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 | 8,366 | 11,389 |
Less than 12 Months Gross Unrealized Loss | 322 | 331 |
Equal to or Greater than 12 Months Estimated Fair Value | 2,545 | 4,658 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 235 | 293 |
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 | 10,108 | 9,410 |
Less than 12 Months Gross Unrealized Loss | 849 | 505 |
Equal to or Greater than 12 Months Estimated Fair Value | 1,657 | 2,074 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 166 | 166 |
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 | 4,600 | 8,927 |
Less than 12 Months Gross Unrealized Loss | 31 | 12 |
Equal to or Greater than 12 Months Estimated Fair Value | 302 | 1,314 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 3 | 18 |
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 | 1,241 | 1,085 |
Less than 12 Months Gross Unrealized Loss | 54 | 80 |
Equal to or Greater than 12 Months Estimated Fair Value | 435 | 630 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 75 | 81 |
RMBS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 3,276 | 4,180 |
Less than 12 Months Gross Unrealized Loss | 65 | 92 |
Equal to or Greater than 12 Months Estimated Fair Value | 2,018 | 2,534 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 221 | 228 |
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 | 287 | 83 |
Less than 12 Months Gross Unrealized Loss | 5 | 1 |
Equal to or Greater than 12 Months Estimated Fair Value | 109 | 297 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 23 | 25 |
CMBS (1) | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 1,579 | 1,268 |
Less than 12 Months Gross Unrealized Loss | 46 | 23 |
Equal to or Greater than 12 Months Estimated Fair Value | 362 | 934 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 10 | 22 |
ABS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 3,672 | 4,456 |
Less than 12 Months Gross Unrealized Loss | 67 | 57 |
Equal to or Greater than 12 Months Estimated Fair Value | 1,384 | 1,440 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 36 | 55 |
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 | 174 | 178 |
Less than 12 Months Gross Unrealized Loss | 28 | 30 |
Equal to or Greater than 12 Months Estimated Fair Value | 189 | 193 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 41 | 37 |
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 | 137 | 111 |
Less than 12 Months Gross Unrealized Loss | 25 | 28 |
Equal to or Greater than 12 Months Estimated Fair Value | 0 | 1 |
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 | 37 | 67 |
Less than 12 Months Gross Unrealized Loss | 3 | 2 |
Equal to or Greater than 12 Months Estimated Fair Value | 189 | 192 |
Equal to or Greater than 12 Months Gross Unrealized Loss | $41 | $37 |
Investments_Mortgage_Loans_by_
Investments (Mortgage Loans by Portfolio Segment) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||
Company-held mortgage loans held-for-investment, net | ||||
Commercial mortgage loans | $42,164 | $41,088 | ||
Percentage of loans receivable on commercial mortgage loans | 67.60% | 68.30% | ||
Agricultural mortgage loans | 12,333 | 12,378 | ||
Percentage of loans receivable on agricultural mortgage loans | 19.80% | 20.60% | ||
Residential mortgage loans | 7,626 | 6,369 | ||
Percentage of loans receivable on residential mortgage loans | 12.20% | 10.60% | ||
Subtotal | 62,123 | 59,835 | ||
Percentage of loans receivable on subtotal | 99.60% | 99.50% | ||
Valuation allowances | -315 | -305 | -326 | -322 |
Percentage of loans receivable on valuation allowances | -0.50% | -0.50% | ||
Subtotal mortgage loans, net | 61,808 | 59,530 | ||
Percentage of loans receivable on subtotal mortgage loans held-for-investment, net | 99.10% | 99.00% | ||
Residential — fair value option (“FVOâ€) | 329 | 308 | ||
Percentage of residential mortgage loans - FVO | 0.50% | 0.50% | ||
Commercial mortgage loans held by CSEs — FVO | 272 | 280 | ||
Percentage of loans receivable on commercial mortgage loans held by consolidated securitization entities - fair value option | 0.40% | 0.50% | ||
Mortgage loans held-for-sale | ||||
Total mortgage loans, net | $62,409 | $60,118 | ||
Percentage of loans held for sale on total mortgage loans, net | 100.00% | 100.00% |
Investments_Mortgage_Loans_and
Investments (Mortgage Loans and Valuation Allowance by Portfolio Segment) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | $120 | $126 |
Recorded Investment | 117 | 123 |
Valuation Allowances | 22 | 26 |
Unpaid Principal Balance | 176 | 155 |
Recorded Investment | 172 | 150 |
Recorded Investment | 61,834 | 59,562 |
Valuation Allowances | 293 | 279 |
Carrying Value | 267 | 247 |
Commercial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | 69 | 75 |
Recorded Investment | 69 | 75 |
Valuation Allowances | 20 | 24 |
Unpaid Principal Balance | 98 | 101 |
Recorded Investment | 98 | 100 |
Recorded Investment | 41,997 | 40,913 |
Valuation Allowances | 205 | 200 |
Carrying Value | 147 | 151 |
Agricultural | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | 51 | 51 |
Recorded Investment | 48 | 48 |
Valuation Allowances | 2 | 2 |
Unpaid Principal Balance | 16 | 14 |
Recorded Investment | 16 | 13 |
Recorded Investment | 12,269 | 12,317 |
Valuation Allowances | 37 | 37 |
Carrying Value | 62 | 59 |
Residential | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Valuation Allowances | 0 | 0 |
Unpaid Principal Balance | 62 | 40 |
Recorded Investment | 58 | 37 |
Recorded Investment | 7,568 | 6,332 |
Valuation Allowances | 51 | 42 |
Carrying Value | $58 | $37 |
Investments_Valuation_Allowanc
Investments (Valuation Allowance Rollforward by Portfolio Segment) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Mortgage Loans on Real Estate [Line Items] | ||
Balance, beginning of period | $305 | $322 |
Provision (release) | 15 | 5 |
Charge-offs, net of recoveries | -5 | -1 |
Balance, end of period | 315 | 326 |
Commercial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Balance, beginning of period | 224 | 258 |
Provision (release) | 1 | 1 |
Charge-offs, net of recoveries | 0 | 0 |
Balance, end of period | 225 | 259 |
Agricultural | ||
Mortgage Loans on Real Estate [Line Items] | ||
Balance, beginning of period | 39 | 44 |
Provision (release) | 0 | -2 |
Charge-offs, net of recoveries | 0 | 0 |
Balance, end of period | 39 | 42 |
Residential | ||
Mortgage Loans on Real Estate [Line Items] | ||
Balance, beginning of period | 42 | 20 |
Provision (release) | 14 | 6 |
Charge-offs, net of recoveries | -5 | -1 |
Balance, end of period | $51 | $25 |
Investments_Credit_Quality_of_
Investments (Credit Quality of Commercial Mortgage Loans) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $42,164 | $41,088 |
% of Total | 100.00% | 100.00% |
Estimated Fair Value | 44,090 | 43,179 |
% of Total | 100.00% | 100.00% |
Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 37,004 | 36,139 |
% of Total | 87.80% | 88.00% |
Estimated Fair Value | 38,884 | 38,166 |
% of Total | 88.20% | 88.40% |
65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 4,035 | 3,798 |
% of Total | 9.60% | 9.20% |
Estimated Fair Value | 4,088 | 3,873 |
% of Total | 9.30% | 9.00% |
76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 145 | 145 |
% of Total | 0.30% | 0.40% |
Estimated Fair Value | 154 | 153 |
% of Total | 0.30% | 0.30% |
Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 980 | 1,006 |
% of Total | 2.30% | 2.40% |
Estimated Fair Value | 964 | 987 |
% of Total | 2.20% | 2.30% |
Greater than 1.20x [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 39,362 | 37,931 |
Greater than 1.20x [Member] | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 35,250 | 33,933 |
Greater than 1.20x [Member] | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 3,398 | 3,306 |
Greater than 1.20x [Member] | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 137 | 130 |
Greater than 1.20x [Member] | Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 577 | 562 |
1.00x - 1.20x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 1,825 | 1,791 |
1.00x - 1.20x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 953 | 1,105 |
1.00x - 1.20x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 573 | 405 |
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 | 299 | 281 |
Less than 1.00x [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 977 | 1,366 |
Less than 1.00x [Member] | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 801 | 1,101 |
Less than 1.00x [Member] | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 64 | 87 |
Less than 1.00x [Member] | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 8 | 15 |
Less than 1.00x [Member] | Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $104 | $163 |
Investments_Credit_Quality_of_1
Investments (Credit Quality of Agricultural and Residential Mortgage Loans) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $12,333 | $12,378 |
% of Total | 100.00% | 100.00% |
Residential Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | 7,626 | 6,369 |
% of Total | 100.00% | 100.00% |
Less than 65% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | 11,498 | 11,743 |
% of Total | 93.20% | 94.90% |
65% to 75% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | 703 | 533 |
% of Total | 5.70% | 4.30% |
76% to 80% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | 50 | 17 |
% of Total | 0.40% | 0.10% |
Greater than 80% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | 82 | 85 |
% of Total | 0.70% | 0.70% |
Performing | ||
Residential Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | 7,429 | 6,196 |
% of Total | 97.40% | 97.30% |
Nonperforming | ||
Residential Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $197 | $173 |
% of Total | 2.60% | 2.70% |
Investments_Past_Due_and_Inter
Investments (Past Due and Interest Accrual Status of Mortgage Loans) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Past Due and Interest Accrual Status of Mortgage Loans | ||
Past Due Status of Mortgage Loans | $233 | $184 |
Mortgage loans that were in non accrual status | 303 | 279 |
Commercial | ||
Past Due and Interest Accrual Status of Mortgage Loans | ||
Past Due Status of Mortgage Loans | 10 | 10 |
Mortgage loans that were in non accrual status | 69 | 75 |
Agricultural | ||
Past Due and Interest Accrual Status of Mortgage Loans | ||
Past Due Status of Mortgage Loans | 26 | 1 |
Mortgage loans that were in non accrual status | 46 | 41 |
Residential | ||
Past Due and Interest Accrual Status of Mortgage Loans | ||
Past Due Status of Mortgage Loans | 197 | 173 |
Mortgage loans that were in non accrual status | $188 | $163 |
Investments_Net_Unrealized_Inv
Investments (Net Unrealized Investment Gains Losses) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | |||
Components of net unrealized investment gains (losses) included in accumulated other comprehensive loss | |||
Fixed maturity securities | $33,080 | $30,367 | |
Fixed maturity securities with noncredit OTTI losses in AOCI | -84 | -112 | -218 |
Total fixed maturity securities | 32,996 | 30,255 | |
Equity securities | 678 | 608 | |
Derivatives | 2,502 | 1,761 | |
Other | 159 | 149 | |
Subtotal | 36,335 | 32,773 | |
Future policy benefits | -3,742 | -2,886 | |
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | -1 | -4 | |
DAC, VOBA and DSI | -2,062 | -1,946 | |
Policyholder dividend obligation | -3,483 | -3,155 | |
Subtotal | -9,288 | -7,991 | |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | 31 | 42 | |
Deferred income tax benefit (expense) | -9,273 | -8,556 | |
Net unrealized investment gains (losses) | 17,805 | 16,268 | |
Net unrealized investment gains (losses) attributable to noncontrolling interests | -44 | -33 | |
Net unrealized investment gains (losses) attributable to MetLife, Inc. | $17,761 | $16,235 |
Investments_Changes_in_Fixed_M
Investments (Changes in Fixed Maturity Securities with Noncredit OTTI Losses) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | 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 | ($112) | ($218) |
Noncredit OTTI losses recognized | 10 | 17 |
Securities sold with previous noncredit OTTI loss | 12 | 53 |
Subsequent changes in estimated fair value | 6 | 36 |
Balance, end of period | ($84) | ($112) |
Investments_Changes_in_Net_Unr
Investments (Changes in Net Unrealized Investment Gains Losses) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Changes In Net Unrealized Investment Gains Losses Included In Accumulated Other Comprehensive Loss [Abstract] | |
Balance, beginning of period | $16,235 |
Fixed maturity securities on which noncredit OTTI losses have been recognized | 28 |
Unrealized investment gains (losses) during the period | 3,534 |
Unrealized investment gains (losses) relating to [Abstract] | |
Future policy benefits | -856 |
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | 3 |
DAC, VOBA and DSI | -116 |
Policyholder dividend obligation | -328 |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | -11 |
Deferred income tax benefit (expense) | -717 |
Net unrealized investment gains (losses) | 17,772 |
Net unrealized investment gains (losses) attributable to noncontrolling interests | -11 |
Balance, end of period | 17,761 |
Change in net unrealized investment gains (losses) | 1,537 |
Change in net unrealized investment gains (losses) attributable to noncontrolling interests | -11 |
Change in net unrealized investment gains (losses) attributable to MetLife, Inc. | $1,526 |
Investments_Securities_Lending
Investments (Securities Lending) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Securities Financing Transaction [Line Items] | ||
Total cash collateral liability | $29,804 | $30,826 |
Security collateral on deposit from counterparties | 170 | 83 |
Reinvestment portfolio — estimated fair value | 30,350 | 31,314 |
Amortized cost | ||
Securities Financing Transaction [Line Items] | ||
Securities loaned | 25,933 | 26,989 |
Estimated fair value | ||
Securities Financing Transaction [Line Items] | ||
Securities loaned | $29,358 | $30,269 |
Investments_Invested_Assets_on
Investments (Invested Assets on Deposit, Held In Trust and Pledged as Collateral) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ||
Invested assets on deposit | $9,544 | $9,437 |
Invested assets held in trust (collateral financing arrangements and reinsurance agreements) | 10,491 | 10,069 |
Invested assets pledged as collateral | 26,061 | 25,996 |
Total invested assets on deposit, held in trust and pledged as collateral | $46,096 | $45,502 |
Investments_Consolidated_Varia
Investments (Consolidated Variable Interest Entities) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ||
Total Assets | $6,451 | $6,323 |
Total Liabilities | 2,300 | 2,169 |
Consolidated Securitization Entities [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 288 | 297 |
Total Liabilities | 147 | 155 |
MRSC collateral financing arrangement [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 3,458 | 3,471 |
Total Liabilities | 0 | 0 |
Operating joint venture [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 2,544 | 2,405 |
Total Liabilities | 2,123 | 1,999 |
Other limited partnership interests | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 37 | 37 |
Total Liabilities | 0 | 0 |
Mortgage loans | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 9 | 9 |
Total Liabilities | 15 | 15 |
Other invested assets | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 73 | 59 |
Total Liabilities | 15 | 0 |
FVO and trading securities | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 42 | 45 |
Total Liabilities | $0 | $0 |
Investments_Unconsolidated_Var
Investments (Unconsolidated Variable Interest Entities) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ||
Total Assets | $83,312 | $80,983 |
Total Liabilities | 85,855 | 83,490 |
Mortgage loans | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 93 | 100 |
Total Liabilities | 118 | 125 |
Other limited partnership interests | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 6,224 | 6,250 |
Total Liabilities | 8,382 | 8,402 |
FVO and trading securities | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 602 | 565 |
Total Liabilities | 602 | 565 |
Mortgage loans, net | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 51 | 51 |
Total Liabilities | 51 | 51 |
Other invested assets | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 1,696 | 1,720 |
Total Liabilities | 2,056 | 2,050 |
Structured securities (RMBS, CMBS, and ABS) [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 70,903 | 68,427 |
Total Liabilities | 70,903 | 68,427 |
U.S. corporate and foreign corporate securities | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 3,704 | 3,829 |
Total Liabilities | 3,704 | 3,829 |
Non-redeemable preferred stock | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 39 | 41 |
Total Liabilities | $39 | $41 |
Investments_Net_Investment_Inc
Investments (Net Investment Income) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net Investment Income [Line Items] | ||
Less: Investment expenses | $302 | $276 |
Subtotal | 5,461 | 5,035 |
Securities Investment [Member] | ||
Net Investment Income [Line Items] | ||
Subtotal | 5,082 | 5,224 |
Subtotal | 4,780 | 4,948 |
Debt Securities [Member] | ||
Net Investment Income [Line Items] | ||
Subtotal | 3,541 | 3,653 |
Equity securities | ||
Net Investment Income [Line Items] | ||
Subtotal | 31 | 30 |
Actively traded securities and FVO general account securities [Member] | ||
Net Investment Income [Line Items] | ||
Subtotal | 37 | 37 |
Changes in estimated fair value included in net investment income | 6 | 11 |
Mortgage loans | ||
Net Investment Income [Line Items] | ||
Subtotal | 730 | 709 |
Policy loans | ||
Net Investment Income [Line Items] | ||
Subtotal | 152 | 157 |
Real estate and real estate joint ventures | ||
Net Investment Income [Line Items] | ||
Subtotal | 211 | 217 |
Other limited partnership interests | ||
Net Investment Income [Line Items] | ||
Subtotal | 215 | 329 |
Cash, cash equivalents and short-term investments | ||
Net Investment Income [Line Items] | ||
Subtotal | 35 | 47 |
Operating joint ventures | ||
Net Investment Income [Line Items] | ||
Subtotal | 8 | 0 |
Other | ||
Net Investment Income [Line Items] | ||
Subtotal | 122 | 45 |
Consolidated Securitization Entities And Fair Value Option Contractholder-Directed Unit-Linked [Member] | ||
Net Investment Income [Line Items] | ||
Subtotal | 681 | 87 |
FVO contractholder-directed unit-linked investments | ||
Net Investment Income [Line Items] | ||
Subtotal | 677 | 65 |
Changes in estimated fair value included in net investment income | 536 | -41 |
Commercial Loan [Member] | Consolidated Securitization Entities | ||
Net Investment Income [Line Items] | ||
Subtotal | $4 | $22 |
Investments_Components_of_Net_
Investments (Components of Net Investment Gains Losses) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Marketable Securities, Gain (Loss) [Abstract] | ||
Fixed maturity securities — net gains (losses) on sales and disposals | $151 | $96 |
Equity securities — net gains (losses) on sales and disposals | 8 | 26 |
Other net investment gains (losses): | ||
FVO and trading securities — FVO general account securities | 0 | 9 |
Mortgage loans | -43 | -11 |
Real estate and real estate joint ventures | 27 | 65 |
Other limited partnership interests | 16 | -2 |
Other investment portfolio gains (losses) | 23 | -4 |
Subtotal — investment portfolio gains (losses) | 164 | 168 |
FVO CSEs - changes in estimated fair value subsequent to consolidation: | ||
Commercial mortgage loans | -3 | 1 |
Long-term debt — related to commercial mortgage loans | 1 | 1 |
Non-investment portfolio gains (losses) | 124 | -581 |
Subtotal FVO CSEs and non-investment portfolio gains (losses) | 122 | -579 |
Total net investment gains (losses) | 286 | -411 |
Fixed Maturity Securities | ||
Marketable Securities, Gain (Loss) [Abstract] | ||
Total OTTI losses recognized in earnings | -18 | -10 |
Net investment gains (losses) | 133 | 86 |
Consumer | ||
Marketable Securities, Gain (Loss) [Abstract] | ||
Total OTTI losses recognized in earnings | -3 | -7 |
Industrial | ||
Marketable Securities, Gain (Loss) [Abstract] | ||
Total OTTI losses recognized in earnings | -2 | 0 |
Corporate fixed maturity securities | ||
Marketable Securities, Gain (Loss) [Abstract] | ||
Total OTTI losses recognized in earnings | -5 | -7 |
RMBS | ||
Marketable Securities, Gain (Loss) [Abstract] | ||
Total OTTI losses recognized in earnings | -13 | -3 |
Equity securities | ||
Marketable Securities, Gain (Loss) [Abstract] | ||
Total OTTI losses recognized in earnings | 0 | -1 |
Net investment gains (losses) | 8 | 25 |
Common Stock | ||
Marketable Securities, Gain (Loss) [Abstract] | ||
Total OTTI losses recognized in earnings | $0 | ($1) |
Investments_Sales_or_Disposals
Investments (Sales or Disposals and Impairments of Fixed Maturity and Equity Securities) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Fixed Maturity Securities | ||
Components of Sales or Disposals of Fixed Maturity and Equity Securities | ||
Proceeds | $30,006 | $22,291 |
Gross investment gains | 338 | 314 |
Gross investment losses | -187 | -218 |
Total OTTI losses recognized in earnings: | ||
Total OTTI losses recognized in earnings | -18 | -10 |
Net investment gains (losses) | 133 | 86 |
Equity securities | ||
Components of Sales or Disposals of Fixed Maturity and Equity Securities | ||
Proceeds | 53 | 101 |
Gross investment gains | 15 | 27 |
Gross investment losses | -7 | -1 |
Total OTTI losses recognized in earnings: | ||
Total OTTI losses recognized in earnings | 0 | -1 |
Net investment gains (losses) | $8 | $25 |
Investments_Credit_Loss_Rollfo
Investments (Credit Loss Rollforward) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Balance, beginning of period | $357 | $378 |
Additions: | ||
Initial impairments — credit loss OTTI on securities not previously impaired | 2 | 0 |
Additional impairments — credit loss OTTI on securities previously impaired | 11 | 2 |
Reductions: | ||
Due to sales (maturities, pay downs or prepayments) during the period of securities previously credit loss OTTI impaired | -13 | -10 |
Balance, end of period | $357 | $370 |
Investments_Fixed_Maturity_and1
Investments (Fixed Maturity and Equity Securities Available-For-Sale - Narrative) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | |||
Summary of Certain Fixed Maturity Securities | |||
Gross Unrealized OTTI Loss | $84 | $112 | $218 |
Available-for-sale Securities, Debt Securities | 366,275 | 365,425 | |
CMBS (1) | |||
Summary of Certain Fixed Maturity Securities | |||
Gross Unrealized OTTI Loss | -1 | -1 | |
Available-for-sale Securities, Debt Securities | 13,311 | 14,332 | |
Gross Unrealized Gain | 605 | 615 | |
Foreign corporate | |||
Summary of Certain Fixed Maturity Securities | |||
Gross Unrealized OTTI Loss | 7 | 7 | |
Available-for-sale Securities, Debt Securities | 60,494 | 61,675 | |
Gross Unrealized Gain | 4,781 | 4,651 | |
Non-income producing fixed maturity securities [Member] | |||
Summary of Certain Fixed Maturity Securities | |||
Available-for-sale Securities, Debt Securities | 78 | 64 | |
Gross Unrealized Gain | $31 | $28 |
Investments_Evaluation_of_Avai
Investments (Evaluation of Available-For-Sale Securities for OTTI and Evaluating Temporarily Impaired AFS Securities - Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
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 | ($84) | ($112) | ($218) |
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] | |||
Other Than Temporary Impairments On Debt Securities Transferred To Other Comprehensive Income Loss | -84 | -112 | |
Change in Gross Unrealized Temporary Loss | 219 | ||
Gross Unrealized Temporary Loss | 2,200 | ||
Gross Unrealized Temporary Loss | 769 | 888 | |
Equity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Change in Gross Unrealized Temporary Loss | -2 | ||
Gross Unrealized Temporary Loss | 69 | ||
Gross Unrealized Temporary Loss | 41 | 37 | |
Non-redeemable preferred stock | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Unrealized Temporary Loss | 41 | 37 | |
20% or more [Member] | Six months or greater [Member] | Fixed Maturity Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Unrealized Temporary Loss | 141 | ||
Number of Securities | 50 | ||
20% or more [Member] | Six months or greater [Member] | Fixed Maturity Securities | Investment Grade [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Unrealized Temporary Loss | 78 | ||
Number of Securities | 24 | ||
Percentage of gross unrealized loss | 55.00% | ||
20% or more [Member] | Six months or greater [Member] | Fixed Maturity Securities | Below Investment Grade [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Unrealized Temporary Loss | 63 | ||
Number of Securities | 26 | ||
Percentage of gross unrealized loss | 45.00% | ||
20% or more [Member] | Twelve months or greater [Member] | Equity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Number of Securities | 7 | ||
Gross Unrealized Temporary Loss | $29 | ||
20% or more [Member] | Twelve months or greater [Member] | Non-redeemable preferred stock | Aaa/Aa/A | Financial Services Industry [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Percentage of gross unrealized loss | 59.00% |
Investments_Mortgage_Loans_Nar
Investments (Mortgage Loans - Narrative) (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Significant Purchases | $1,400,000,000 | $597,000,000 | |
Percentage of Mortgage Loans Classified as Performing | 99.00% | 99.00% | |
Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Impaired Financing Receivable, Average Recorded Investment | 171,000,000 | 507,000,000 | |
Agricultural | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Impaired Financing Receivable, Average Recorded Investment | 63,000,000 | 100,000,000 | |
Estimated fair value of mortgage loans held-for-investment | 12,800,000,000 | 12,800,000,000 | |
Residential | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Impaired Financing Receivable, Average Recorded Investment | 47,000,000 | 13,000,000 | |
Estimated fair value of mortgage loans held-for-investment | $7,700,000,000 | 6,600,000,000 |
Investments_Cash_Equivalents_N
Investments (Cash Equivalents - Narrative) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Billions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ||
Cash equivalents | $2.10 | $4.50 |
Investments_Concentrations_of_
Investments (Concentrations of Credit Risk - Narrative) (Details) (USD $) | 3 Months Ended | ||
In Billions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||
Securities holdings exposure in single issuer greater than stated percentage of Company's equity | 10.00% | 10.00% | |
Foreign government | Japan [Member] | |||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||
Government and agency fixed maturity securities | 20.6 | $20.30 | |
Fixed maturity and equity securities [Member] | Japan [Member] | |||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||
Government and agency fixed maturity securities | 25.8 | $25.50 |
Investments_Securities_Lending1
Investments (Securities Lending - Narrative) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Amortized cost | ||
Securities Financing Transaction [Line Items] | ||
Securities Loaned | $25,933 | $26,989 |
Estimated fair value | ||
Securities Financing Transaction [Line Items] | ||
Securities Loaned | 29,358 | 30,269 |
Reserve for Off-balance Sheet Activities [Member] | Amortized cost | ||
Securities Financing Transaction [Line Items] | ||
Securities Loaned | 26 | |
Reserve for Off-balance Sheet Activities [Member] | Estimated fair value | ||
Securities Financing Transaction [Line Items] | ||
Securities Loaned | $26 |
Investments_Repurchase_Agreeme
Investments (Repurchase Agreement - Narrative) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Offsetting Assets [Line Items] | |
Fair Value of Securities Received as Collateral that Have Been Resold or Repledged | $117 |
Receivable Under Reverse Repurchase Agreements | 499 |
Payable Under Repurchase Agreements | 499 |
Amount Offset in Balance Sheet | 499 |
Maximum | |
Offsetting Assets [Line Items] | |
Repurchase Agreements, Interest Expense Amount | 1 |
Net Amount Assets (Liabilities) From Repurchase, Reverse Repurchase Agreements | 1 |
Fixed Maturity Securities | |
Offsetting Assets [Line Items] | |
Securities Loaned, Not Subject to Master Netting Arrangement | 516 |
Securities Borrowed, Not Subject to Master Netting Arrangement | $505 |
Investments_Consolidated_Varia1
Investments (Consolidated Variable Interest Entities - Narrative) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Variable Interest Entity [Line Items] | |||
Tax credits guaranteed by third parties that reduce maximum exposure to loss related to other invested assets | $208 | $212 | |
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 |
Investments_Net_Investment_Gai
Investments (Net Investment Gains Losses - Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 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) | $23 | ($4) |
Gains (losses) from foreign currency transactions | 161 | 5 |
MetLife Assurance Limited | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Non-investment portfolio gains (losses) | $495 |
Derivatives_Primary_Risks_Deta
Derivatives (Primary Risks) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | $393,049 | $415,598 |
Estimated Fair Value Assets | 15,791 | 13,452 |
Estimated Fair Value Liabilities | 7,822 | 7,022 |
Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 46,972 | 42,713 |
Estimated Fair Value Assets | 4,734 | 3,993 |
Estimated Fair Value Liabilities | 2,154 | 1,353 |
Derivatives Designated as Hedging Instruments | Fair Value Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 11,409 | 11,087 |
Estimated Fair Value Assets | 2,373 | 2,129 |
Estimated Fair Value Liabilities | 627 | 412 |
Derivatives Designated as Hedging Instruments | Fair Value Hedges [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 5,975 | 6,044 |
Estimated Fair Value Assets | 2,296 | 2,064 |
Estimated Fair Value Liabilities | 22 | 21 |
Derivatives Designated as Hedging Instruments | Fair Value Hedges [Member] | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 2,699 | 2,708 |
Estimated Fair Value Assets | 77 | 65 |
Estimated Fair Value Liabilities | 354 | 100 |
Derivatives Designated as Hedging Instruments | Fair Value Hedges [Member] | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 2,735 | 2,335 |
Estimated Fair Value Assets | 0 | 0 |
Estimated Fair Value Liabilities | 251 | 291 |
Derivatives Designated as Hedging Instruments | Cash Flow Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 23,024 | 21,110 |
Estimated Fair Value Assets | 1,875 | 1,154 |
Estimated Fair Value Liabilities | 1,508 | 930 |
Derivatives Designated as Hedging Instruments | Cash Flow Hedges [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 2,927 | 2,560 |
Estimated Fair Value Assets | 666 | 528 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Designated as Hedging Instruments | Cash Flow Hedges [Member] | Interest rate forwards | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 200 | 225 |
Estimated Fair Value Assets | 70 | 63 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Designated as Hedging Instruments | Cash Flow Hedges [Member] | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 19,897 | 18,325 |
Estimated Fair Value Assets | 1,139 | 563 |
Estimated Fair Value Liabilities | 1,508 | 930 |
Derivatives Designated as Hedging Instruments | Foreign Operations Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 12,539 | 10,516 |
Estimated Fair Value Assets | 486 | 710 |
Estimated Fair Value Liabilities | 19 | 11 |
Derivatives Designated as Hedging Instruments | Foreign Operations Hedges [Member] | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 4,306 | 4,097 |
Estimated Fair Value Assets | 101 | 295 |
Estimated Fair Value Liabilities | 11 | 11 |
Derivatives Designated as Hedging Instruments | Foreign Operations Hedges [Member] | Currency options | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 8,233 | 6,419 |
Estimated Fair Value Assets | 385 | 415 |
Estimated Fair Value Liabilities | 8 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 346,077 | 372,885 |
Estimated Fair Value Assets | 11,057 | 9,459 |
Estimated Fair Value Liabilities | 5,668 | 5,669 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 91,545 | 93,266 |
Estimated Fair Value Assets | 5,353 | 4,570 |
Estimated Fair Value Liabilities | 2,465 | 2,051 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Interest rate floors | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 34,155 | 55,645 |
Estimated Fair Value Assets | 464 | 440 |
Estimated Fair Value Liabilities | 172 | 199 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Interest rate caps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 52,763 | 49,128 |
Estimated Fair Value Assets | 90 | 145 |
Estimated Fair Value Liabilities | 1 | 1 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Interest rate futures | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 3,557 | 2,707 |
Estimated Fair Value Assets | 9 | 4 |
Estimated Fair Value Liabilities | 6 | 9 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Interest rate options | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 35,261 | 48,078 |
Estimated Fair Value Assets | 1,666 | 1,241 |
Estimated Fair Value Liabilities | 27 | 75 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Synthetic GICs | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 4,262 | 4,298 |
Estimated Fair Value Assets | 0 | 0 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 11,627 | 11,041 |
Estimated Fair Value Assets | 855 | 447 |
Estimated Fair Value Liabilities | 432 | 385 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 12,191 | 13,206 |
Estimated Fair Value Assets | 235 | 127 |
Estimated Fair Value Liabilities | 387 | 791 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Currency futures | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,242 | 522 |
Estimated Fair Value Assets | 1 | 2 |
Estimated Fair Value Liabilities | 2 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Currency options | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 9,734 | 8,324 |
Estimated Fair Value Assets | 531 | 585 |
Estimated Fair Value Liabilities | 295 | 340 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Credit default swaps — purchased | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 2,711 | 2,830 |
Estimated Fair Value Assets | 15 | 8 |
Estimated Fair Value Liabilities | 49 | 34 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Credit default swaps — written | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 10,206 | 10,527 |
Estimated Fair Value Assets | 190 | 181 |
Estimated Fair Value Liabilities | 4 | 6 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Equity futures | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 6,248 | 6,073 |
Estimated Fair Value Assets | 34 | 65 |
Estimated Fair Value Liabilities | 7 | 2 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Equity index options | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 42,751 | 39,345 |
Estimated Fair Value Assets | 1,411 | 1,426 |
Estimated Fair Value Liabilities | 1,079 | 1,036 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Equity variance swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 24,449 | 24,598 |
Estimated Fair Value Assets | 192 | 196 |
Estimated Fair Value Liabilities | 664 | 639 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | TRRs | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 3,375 | 3,297 |
Estimated Fair Value Assets | 11 | 22 |
Estimated Fair Value Liabilities | $78 | $101 |
Derivatives_Net_Derivative_Gai
Derivatives (Net Derivative Gains Losses) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Components of Net Derivatives Gains (Losses) | ||
Derivatives and hedging gains (losses) | $848 | $452 |
Embedded derivatives gains (losses) | -27 | -109 |
Total net derivative gains (losses) | $821 | $343 |
Derivatives_Earned_Income_On_D
Derivatives (Earned Income On Derivatives) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total earned income | $321 | $274 |
Derivatives Designated as Hedging Instruments | Net investment income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total earned income | 58 | 33 |
Derivatives Designated as Hedging Instruments | Interest credited to policyholder account balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total earned income | 2 | 32 |
Derivatives Designated as Hedging Instruments | Other expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total earned income | -3 | -1 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net investment income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total earned income | -1 | -1 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net derivative gains (losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total earned income | 261 | 219 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Policyholder benefits and claims | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total earned income | $4 | ($8) |
Derivatives_Gains_Losses_Recog
Derivatives (Gains Losses Recognized in Income Not Designated or Qualifying) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | ($64) | $189 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net derivative gains (losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 751 | 178 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net derivative gains (losses) | Interest rate derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 552 | 298 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net derivative gains (losses) | Foreign currency exchange rate derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 669 | 69 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net derivative gains (losses) | Credit derivatives — purchased | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | -11 | 1 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net derivative gains (losses) | Credit derivatives — written | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 3 | -9 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net derivative gains (losses) | Equity derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | -462 | -181 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net investment income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | -4 | -5 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net investment income | Interest rate derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 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] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net investment income | Credit derivatives — purchased | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | -1 | 1 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net investment income | Credit derivatives — written | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 1 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Net investment income | Equity derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | -4 | -6 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Policyholder benefits and claims | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | -88 | -26 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Policyholder benefits and claims | Interest rate derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 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] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Policyholder benefits and claims | Credit derivatives — purchased | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Policyholder benefits and claims | Credit derivatives — written | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Policyholder benefits and claims | Equity derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | ($99) | ($38) |
Derivatives_Fair_Value_Hedges_
Derivatives (Fair Value Hedges) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Derivative Gains (Losses) Recognized for Derivatives | ($64) | $189 |
Net Derivative Gains (Losses) Recognized for Hedged Items | 62 | -176 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | -2 | 13 |
Interest rate swaps | Fixed Maturity Securities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Derivative Gains (Losses) Recognized for Derivatives | -5 | 1 |
Net Derivative Gains (Losses) Recognized for Hedged Items | 7 | 1 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | 2 | 2 |
Interest rate swaps | Policyholder account balances [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Derivative Gains (Losses) Recognized for Derivatives | 197 | 209 |
Net Derivative Gains (Losses) Recognized for Hedged Items | -198 | -204 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | -1 | 5 |
Foreign currency swaps | Foreign-denominated fixed maturity securities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Derivative Gains (Losses) Recognized for Derivatives | 10 | -4 |
Net Derivative Gains (Losses) Recognized for Hedged Items | -8 | 4 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | 2 | 0 |
Foreign currency swaps | Foreign-denominated policyholder account balances [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Derivative Gains (Losses) Recognized for Derivatives | -249 | -27 |
Net Derivative Gains (Losses) Recognized for Hedged Items | 245 | 32 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | -4 | 5 |
Foreign currency forwards | Foreign-denominated fixed maturity securities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Derivative Gains (Losses) Recognized for Derivatives | -17 | 10 |
Net Derivative Gains (Losses) Recognized for Hedged Items | 16 | -9 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | ($1) | $1 |
Derivatives_Cash_Flow_Hedges_D
Derivatives (Cash Flow Hedges) (Details) (Cash Flow Hedges [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivatives in cash flow hedging relationships | ||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | $187 | $321 |
Interest rate swaps | ||
Derivatives in cash flow hedging relationships | ||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | 174 | 228 |
Foreign currency swaps | ||
Derivatives in cash flow hedging relationships | ||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | -2 | 52 |
Interest rate forwards | ||
Derivatives in cash flow hedging relationships | ||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | 15 | 41 |
Credit forwards | ||
Derivatives in cash flow hedging relationships | ||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | 0 | 0 |
Net derivative gains (losses) | ||
Derivatives in cash flow hedging relationships | ||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | -559 | 51 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 7 | 6 |
Net derivative gains (losses) | Interest rate swaps | ||
Derivatives in cash flow hedging relationships | ||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 5 | 15 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 3 | 5 |
Net derivative gains (losses) | Foreign currency swaps | ||
Derivatives in cash flow hedging relationships | ||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | -567 | 36 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 4 | 0 |
Net derivative gains (losses) | Interest rate forwards | ||
Derivatives in cash flow hedging relationships | ||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 3 | 0 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 1 |
Net derivative gains (losses) | Credit forwards | ||
Derivatives in cash flow hedging relationships | ||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 0 | 0 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 |
Net Investment Income | ||
Derivatives in cash flow hedging relationships | ||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 4 | 2 |
Net Investment Income | Interest rate swaps | ||
Derivatives in cash flow hedging relationships | ||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 3 | 2 |
Net Investment Income | Foreign currency swaps | ||
Derivatives in cash flow hedging relationships | ||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 0 | -1 |
Net Investment Income | Interest rate forwards | ||
Derivatives in cash flow hedging relationships | ||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 1 | 1 |
Net Investment Income | Credit forwards | ||
Derivatives in cash flow hedging relationships | ||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 0 | 0 |
Other expenses | ||
Derivatives in cash flow hedging relationships | ||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 1 | 1 |
Other expenses | Interest rate swaps | ||
Derivatives in cash flow hedging relationships | ||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 0 | 0 |
Other expenses | Foreign currency swaps | ||
Derivatives in cash flow hedging relationships | ||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 0 | 1 |
Other expenses | Interest rate forwards | ||
Derivatives in cash flow hedging relationships | ||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 1 | 0 |
Other expenses | Credit forwards | ||
Derivatives in cash flow hedging relationships | ||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | $0 | $0 |
Derivatives_Hedges_of_Net_Inve
Derivatives (Hedges of Net Investments in Foreign Operations) (Details) (Foreign Operations Hedges [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | $70 | ($148) |
Foreign currency forwards | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | 111 | -34 |
Currency options | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | ($41) | ($114) |
Derivatives_Credit_Derivatives
Derivatives (Credit Derivatives) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | $186,000,000 | $175,000,000 | |
Maximum Amount of Future Payments under Credit Default Swaps | 10,206,000,000 | 10,527,000,000 | |
Weighted Average Years to Maturity | 4 years | 3 years 11 months | |
Aaa/Aa/A | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | 15,000,000 | 20,000,000 | |
Maximum Amount of Future Payments under Credit Default Swaps | 2,136,000,000 | 2,377,000,000 | |
Weighted Average Years to Maturity | 2 years 7 months | 2 years 7 months | |
Aaa/Aa/A | Single name credit default swaps (corporate) | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | 8,000,000 | 10,000,000 | |
Maximum Amount of Future Payments under Credit Default Swaps | 636,000,000 | 677,000,000 | |
Weighted Average Years to Maturity | 2 years 4 months | 2 years 5 months | |
Aaa/Aa/A | Credit default swaps referencing indices | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | 7,000,000 | 10,000,000 | |
Maximum Amount of Future Payments under Credit Default Swaps | 1,500,000,000 | 1,700,000,000 | |
Weighted Average Years to Maturity | 2 years 8 months | 2 years 7 months | |
Baa | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | 120,000,000 | 117,000,000 | |
Maximum Amount of Future Payments under Credit Default Swaps | 7,297,000,000 | 7,365,000,000 | |
Weighted Average Years to Maturity | 4 years 5 months | 4 years 3 months | |
Baa | Single name credit default swaps (corporate) | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | 23,000,000 | 23,000,000 | |
Maximum Amount of Future Payments under Credit Default Swaps | 1,555,000,000 | 1,591,000,000 | |
Weighted Average Years to Maturity | 2 years 7 months | 2 years 9 months | |
Baa | Credit default swaps referencing indices | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | 97,000,000 | 94,000,000 | |
Maximum Amount of Future Payments under Credit Default Swaps | 5,742,000,000 | 5,774,000,000 | |
Weighted Average Years to Maturity | 4 years 11 months | 4 years 8 months | |
Ba | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | 1,000,000 | -1,000,000 | |
Maximum Amount of Future Payments under Credit Default Swaps | 160,000,000 | 160,000,000 | |
Weighted Average Years to Maturity | 2 years 1 month | 2 years 5 months | |
Ba | Single name credit default swaps (corporate) | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | 1,000,000 | 0 | |
Maximum Amount of Future Payments under Credit Default Swaps | 60,000,000 | 60,000,000 | |
Weighted Average Years to Maturity | 2 years 8 months | 3 years | |
Ba | Credit default swaps referencing indices | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | 0 | -1,000,000 | |
Maximum Amount of Future Payments under Credit Default Swaps | 100,000,000 | 100,000,000 | |
Weighted Average Years to Maturity | 1 year 10 months | 2 years | |
B | |||
Credit Derivatives [Line Items] | |||
Estimated Fair Value of Credit Default Swaps | 50,000,000 | 39,000,000 | |
Maximum Amount of Future Payments under Credit Default Swaps | 613,000,000 | 625,000,000 | |
Weighted Average Years to Maturity | 4 years 8 months | 4 years 11 months | |
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 | 50,000,000 | 39,000,000 | |
Maximum Amount of Future Payments under Credit Default Swaps | $613,000,000 | $625,000,000 | |
Weighted Average Years to Maturity | 4 years 8 months | 4 years 11 months |
Derivatives_Estimated_Fair_Val
Derivatives (Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Offsetting Assets [Line Items] | ||
Gross estimated fair value of derivative assets | $16,043 | $13,707 |
Gross estimated fair value of derivative liabilities | 7,845 | 7,082 |
Amounts offset in the consolidated balance sheet, Assets | 0 | 0 |
Amounts offset in the consolidated balance sheet, Liabilities | 0 | 0 |
Estimated fair value of derivative assets presented in the consolidated balance sheets | 16,043 | 13,707 |
Estimated fair value of derivative liabilities presented in the consolidated balance sheets | 7,845 | 7,082 |
Net amount of derivative assets after application of master netting agreements and cash collateral | 393 | 324 |
Net amount of derivative liabilities after application of master netting agreements and cash collateral | 102 | 102 |
Over the Counter [Member] | ||
Offsetting Assets [Line Items] | ||
Gross estimated fair value of derivative assets | 14,441 | 12,256 |
Gross estimated fair value of derivative liabilities | 6,600 | 6,017 |
Gross estimated fair value of derivative assets | -4,980 | -4,082 |
Gross estimated fair value of derivative liabilities | -4,980 | -4,082 |
Cash collateral on derivative assets | -7,076 | -4,153 |
Cash collateral on derivative liabilities | -111 | -133 |
Securities collateral on derivative assets | -2,063 | -3,768 |
Securities collateral on derivative liabilities | -1,407 | -1,700 |
Cleared [Member] | ||
Offsetting Assets [Line Items] | ||
Gross estimated fair value of derivative assets | 1,558 | 1,380 |
Gross estimated fair value of derivative liabilities | 1,230 | 1,054 |
Gross estimated fair value of derivative assets | -1,166 | -989 |
Gross estimated fair value of derivative liabilities | -1,166 | -989 |
Cash collateral on derivative assets | -364 | -386 |
Cash collateral on derivative liabilities | -62 | -62 |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | -2 | -3 |
Exchange-traded | ||
Offsetting Assets [Line Items] | ||
Gross estimated fair value of derivative assets | 44 | 71 |
Gross estimated fair value of derivative liabilities | 15 | 11 |
Gross estimated fair value of derivative assets | -1 | -5 |
Gross estimated fair value of derivative liabilities | -1 | -5 |
Cash collateral on derivative assets | 0 | 0 |
Cash collateral on derivative liabilities | -8 | -4 |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | ($6) | ($2) |
Derivatives_Credit_Risk_on_Fre
Derivatives (Credit Risk on Freestanding Derivatives) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in Net Liability Position | $1,610 | $1,916 |
Estimated Fair Value Of Incremental Collateral Provided Upon A One Notch Downgrade In The Company's Credit Rating | 4 | 5 |
Estimated Fair Value Of Incremental Collateral Provided Upon A Downgrade In The Company's Credit Rating to a Level that Triggers Full Overnight Collateralization or Termination of the Derivative Position | 4 | 7 |
Fixed Maturity Securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 1,522 | 1,815 |
Cash | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 119 | 133 |
Derivatives subject to credit-contingent provisions | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in Net Liability Position | 1,519 | 1,832 |
Estimated Fair Value Of Incremental Collateral Provided Upon A One Notch Downgrade In The Company's Credit Rating | 4 | 5 |
Estimated Fair Value Of Incremental Collateral Provided Upon A Downgrade In The Company's Credit Rating to a Level that Triggers Full Overnight Collateralization or Termination of the Derivative Position | 4 | 7 |
Derivatives subject to credit-contingent provisions | Fixed Maturity Securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 1,454 | 1,750 |
Derivatives subject to credit-contingent provisions | Cash | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 117 | 131 |
Derivatives not subject to credit-contingent provisions | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in Net Liability Position | 91 | 84 |
Estimated Fair Value Of Incremental Collateral Provided Upon A One Notch Downgrade In The Company's Credit Rating | 0 | 0 |
Estimated Fair Value Of Incremental Collateral Provided Upon A Downgrade In The Company's Credit Rating to a Level that Triggers Full Overnight Collateralization or Termination of the Derivative Position | 0 | 0 |
Derivatives not subject to credit-contingent provisions | Fixed Maturity Securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 68 | 65 |
Derivatives not subject to credit-contingent provisions | Cash | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | $2 | $2 |
Derivatives_Embedded_Derivativ
Derivatives (Embedded Derivatives) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Net embedded derivatives within asset host contracts | $104 | $160 |
Net embedded derivatives within liability host contracts | 137 | -46 |
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 | 351 | 324 |
Direct guaranteed minimum benefits | Policyholder account balances [Member] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Net embedded derivatives within liability host contracts | -830 | -1,126 |
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 |
Assumed guaranteed minimum benefits | Policyholder account balances [Member] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Net embedded derivatives within liability host contracts | 868 | 973 |
Funds withheld on ceded reinsurance | Other liabilities | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Net embedded derivatives within liability host contracts | 71 | 83 |
Other | Policyholder account balances [Member] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Net embedded derivatives within liability host contracts | 28 | 24 |
Options embedded in debt or equity securities [Member] | Investments | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Net embedded derivatives within asset host contracts | ($303) | ($217) |
Derivatives_Changes_in_Estimat
Derivatives (Changes in Estimated Fair Value Related to Embedded Derivatives) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net derivatives gains (losses) | ($27) | ($109) |
Net derivative gains (losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net derivatives gains (losses) | -27 | -109 |
Policyholder benefits and claims | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net derivatives gains (losses) | $24 | $15 |
Derivatives_Narrative_Details
Derivatives (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Derivatives, Fair Value [Line Items] | |||
Estimated Fair Value Assets | $15,791,000,000 | $13,452,000,000 | |
Estimated Fair Value Liabilities | 7,822,000,000 | 7,022,000,000 | |
Maximum Amount of Future Payments under Credit Default Swaps | 10,206,000,000 | 10,527,000,000 | |
Estimated Fair Value of Credit Default Swaps | 186,000,000 | 175,000,000 | |
Excess securities collateral received on derivatives | 259,000,000 | 87,000,000 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Average Remaining Maturity | 4 years | 3 years 11 months | |
Embedded derivatives gains (losses) | -27,000,000 | -109,000,000 | |
Gain (Loss) on Investments | -286,000,000 | 411,000,000 | |
Derivative Instrument Detail [Abstract] | |||
Net amounts reclassified into net derivatives gains (losses) on discontinued cash flow hedges | 3,000,000 | -2,000,000 | |
Hedging exposure to variability in future cash flows for specific length of time | 6 years | 6 years | |
Accumulated Other Comprehensive Income Loss | 2,500,000,000 | 1,800,000,000 | |
Deferred net gains (losses) expected to be reclassified to earnings | 35,000,000 | ||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 0 | 0 | |
Immateriality of cash flow effectiveness | 0 | 0 | |
Cumulative foreign currency translation gain (loss) recorded in accumulated other comprehensive income (loss) for net investment in foreign operations hedges | 1,000,000,000 | 940,000,000 | |
Potential future recoveries available to offset maximum amount of future payments under credit default swaps | 79,000,000 | 75,000,000 | |
Excess securities collateral provided on derivatives | 240,000,000 | 192,000,000 | |
Change in fair value of derivatives excluded from the assessment of hedge effectiveness | -2,000,000 | 3,000,000 | |
Securities collateral received which the company is permitted to sell or repledge, amount that has been sold or repledged | 0 | ||
Ba [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Maximum Amount of Future Payments under Credit Default Swaps | 160,000,000 | 160,000,000 | |
Estimated Fair Value of Credit Default Swaps | 1,000,000 | -1,000,000 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Average Remaining Maturity | 2 years 1 month | 2 years 5 months | |
Nonperformance Risk [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Embedded derivatives gains (losses) | 69,000,000 | 43,000,000 | |
B | |||
Derivatives, Fair Value [Line Items] | |||
Maximum Amount of Future Payments under Credit Default Swaps | 613,000,000 | 625,000,000 | |
Estimated Fair Value of Credit Default Swaps | 50,000,000 | 39,000,000 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Average Remaining Maturity | 4 years 8 months | 4 years 11 months | |
Over the Counter [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Cash collateral on derivative assets | -7,076,000,000 | -4,153,000,000 | |
Excess securities collateral received on derivatives | 384,000,000 | 395,000,000 | |
Excess securities collateral provided on derivatives | 116,000,000 | 117,000,000 | |
Exchange-traded | |||
Derivatives, Fair Value [Line Items] | |||
Cash collateral on derivative assets | 0 | 0 | |
Excess securities collateral received on derivatives | 237,000,000 | 199,000,000 | |
Excess securities collateral provided on derivatives | 212,000,000 | 245,000,000 | |
Hedge Funds [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Maximum Amount of Future Payments under Credit Default Swaps | 15,000,000 | 15 | |
Estimated Fair Value of Credit Default Swaps | 1,000,000 | 1 | |
Accrued Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Estimated Fair Value Assets | 252,000,000 | 255,000,000 | |
Estimated Fair Value Liabilities | 23,000,000 | 60,000,000 | |
Off-Balance Sheet [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Excess securities collateral received on derivatives | 94,000,000 | 36,000,000 | |
Off-Balance Sheet [Member] | Over the Counter [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Cash collateral on derivative assets | -327,000,000 | -263,000,000 | |
Credit Index Product [Member] | Ba [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Maximum Amount of Future Payments under Credit Default Swaps | 100,000,000 | 100,000,000 | |
Estimated Fair Value of Credit Default Swaps | 0 | -1,000,000 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Average Remaining Maturity | 1 year 10 months | 2 years | |
Credit Index Product [Member] | B | |||
Derivatives, Fair Value [Line Items] | |||
Maximum Amount of Future Payments under Credit Default Swaps | 613,000,000 | 625,000,000 | |
Estimated Fair Value of Credit Default Swaps | 50,000,000 | 39,000,000 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Average Remaining Maturity | 4 years 8 months | 4 years 11 months | |
Credit Default Swap [Member] | Ba [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Maximum Amount of Future Payments under Credit Default Swaps | 60,000,000 | 60,000,000 | |
Estimated Fair Value of Credit Default Swaps | 1,000,000 | 0 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Average Remaining Maturity | 2 years 8 months | 3 years | |
Credit Default Swap [Member] | B | |||
Derivatives, Fair Value [Line Items] | |||
Maximum Amount of Future Payments under Credit Default Swaps | 0 | 0 | |
Estimated Fair Value of Credit Default Swaps | $0 | $0 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Average Remaining Maturity | 0 years | 0 years |
Fair_Value_Recurring_Fair_Valu
Fair Value (Recurring Fair Value Measurements) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | $366,275 | $365,425 |
Available-for-sale Securities, Equity Securities | 3,713 | 3,631 |
Actively Traded securities | 714 | 704 |
Fair Value Option And Trading Securities | 16,471 | 16,689 |
Short-term investments | 14,130 | 8,621 |
Mortgage loans at estimated fair value | 62,409 | 60,118 |
Derivative assets | 15,791 | 13,452 |
Net embedded derivatives within asset host contracts | 104 | 160 |
Separate account assets | 324,724 | 316,994 |
Liabilities [Abstract] | ||
Derivative liabilities | 7,822 | 7,022 |
Net embedded derivatives within liability host contracts | 137 | -46 |
Long-term debt, at estimated fair value, relating to variable interest entities | 17,714 | 16,286 |
Residential mortgage loans — FVO | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 329 | 308 |
Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 272 | 280 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 143 | 151 |
Recurring [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 366,275 | 365,425 |
Available-for-sale Securities, Equity Securities | 3,713 | 3,631 |
Actively Traded securities | 714 | 654 |
Fair Value Option And Trading Securities | 16,471 | 16,689 |
Short-term investments | 12,652 | 7,663 |
Mortgage loans at estimated fair value | 601 | 588 |
Other investments | 246 | 264 |
Derivative assets | 15,791 | 13,452 |
Total other invested assets | 16,037 | 13,716 |
Net embedded derivatives within asset host contracts | 407 | 377 |
Separate account assets | 324,724 | 316,994 |
Total assets | 740,880 | 725,083 |
Liabilities [Abstract] | ||
Derivative liabilities | 7,822 | 7,022 |
Net embedded derivatives within liability host contracts | 137 | -46 |
Trading liabilities | 252 | 239 |
Total liabilities | 8,354 | 7,366 |
Recurring [Member] | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 10,614 | 9,055 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,693 | 2,356 |
Recurring [Member] | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 3,324 | 2,499 |
Liabilities [Abstract] | ||
Derivative liabilities | 3,248 | 2,848 |
Recurring [Member] | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 205 | 189 |
Liabilities [Abstract] | ||
Derivative liabilities | 53 | 40 |
Recurring [Member] | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 1,648 | 1,709 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,828 | 1,778 |
Recurring [Member] | FVO general account securities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 651 | 704 |
Recurring [Member] | FVO contractholder-directed unit-linked investments | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 15,091 | 15,316 |
Recurring [Member] | Residential mortgage loans — FVO | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 329 | 308 |
Recurring [Member] | Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 15 | 15 |
Mortgage loans at estimated fair value | 272 | 280 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 143 | 151 |
Recurring [Member] | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 106,335 | 105,954 |
Recurring [Member] | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 60,494 | 61,675 |
Recurring [Member] | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 52,361 | 52,666 |
Recurring [Member] | U.S. Treasury and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 60,472 | 61,516 |
Recurring [Member] | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 43,784 | 39,846 |
Recurring [Member] | CMBS (1) | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 13,311 | 14,332 |
Recurring [Member] | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 13,808 | 14,249 |
Recurring [Member] | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 15,710 | 15,187 |
Recurring [Member] | Common stock | ||
Assets [Abstract] | ||
Available-for-sale Securities, Equity Securities | 2,575 | 2,516 |
Recurring [Member] | Non-redeemable preferred stock | ||
Assets [Abstract] | ||
Available-for-sale Securities, Equity Securities | 1,138 | 1,115 |
Recurring [Member] | Level 1 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 36,713 | 36,879 |
Available-for-sale Securities, Equity Securities | 1,598 | 1,558 |
Actively Traded securities | 48 | 22 |
Fair Value Option And Trading Securities | 11,595 | 11,638 |
Short-term investments | 2,621 | 2,104 |
Mortgage loans at estimated fair value | 0 | 0 |
Other investments | 187 | 203 |
Derivative assets | 44 | 71 |
Total other invested assets | 231 | 274 |
Net embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 86,253 | 83,533 |
Total assets | 139,011 | 135,986 |
Liabilities [Abstract] | ||
Derivative liabilities | 15 | 11 |
Net embedded derivatives within liability host contracts | 0 | 0 |
Trading liabilities | 206 | 215 |
Total liabilities | 221 | 226 |
Recurring [Member] | Level 1 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 9 | 4 |
Liabilities [Abstract] | ||
Derivative liabilities | 6 | 9 |
Recurring [Member] | Level 1 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 1 | 2 |
Liabilities [Abstract] | ||
Derivative liabilities | 2 | 0 |
Recurring [Member] | Level 1 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 34 | 65 |
Liabilities [Abstract] | ||
Derivative liabilities | 7 | 2 |
Recurring [Member] | Level 1 | FVO general account securities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 527 | 552 |
Recurring [Member] | Level 1 | FVO contractholder-directed unit-linked investments | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 11,020 | 11,064 |
Recurring [Member] | Level 1 | Residential mortgage loans — FVO | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 0 | 0 |
Recurring [Member] | Level 1 | Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 0 | 0 |
Mortgage loans at estimated fair value | 0 | 0 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 0 | 0 |
Recurring [Member] | Level 1 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 1 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 1 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 1 | U.S. Treasury and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 34,116 | 36,879 |
Recurring [Member] | Level 1 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 2,597 | 0 |
Recurring [Member] | Level 1 | CMBS (1) | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 1 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 1 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 1 | Common stock | ||
Assets [Abstract] | ||
Available-for-sale Securities, Equity Securities | 1,598 | 1,558 |
Recurring [Member] | Level 1 | Non-redeemable preferred stock | ||
Assets [Abstract] | ||
Available-for-sale Securities, Equity Securities | 0 | 0 |
Recurring [Member] | Level 2 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 306,805 | 306,411 |
Available-for-sale Securities, Equity Securities | 1,777 | 1,728 |
Actively Traded securities | 656 | 627 |
Fair Value Option And Trading Securities | 4,355 | 4,484 |
Short-term investments | 8,673 | 5,223 |
Mortgage loans at estimated fair value | 272 | 280 |
Other investments | 59 | 61 |
Derivative assets | 15,303 | 12,922 |
Total other invested assets | 15,362 | 12,983 |
Net embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 236,415 | 231,539 |
Total assets | 573,659 | 562,648 |
Liabilities [Abstract] | ||
Derivative liabilities | 7,018 | 6,252 |
Net embedded derivatives within liability host contracts | 8 | 7 |
Trading liabilities | 46 | 24 |
Total liabilities | 7,203 | 6,421 |
Recurring [Member] | Level 2 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 10,535 | 8,988 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,686 | 2,347 |
Recurring [Member] | Level 2 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 3,295 | 2,472 |
Liabilities [Abstract] | ||
Derivative liabilities | 3,151 | 2,755 |
Recurring [Member] | Level 2 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 194 | 175 |
Liabilities [Abstract] | ||
Derivative liabilities | 52 | 38 |
Recurring [Member] | Level 2 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 1,279 | 1,287 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,129 | 1,112 |
Recurring [Member] | Level 2 | FVO general account securities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 35 | 57 |
Recurring [Member] | Level 2 | FVO contractholder-directed unit-linked investments | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 3,659 | 3,797 |
Recurring [Member] | Level 2 | Residential mortgage loans — FVO | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 0 | 0 |
Recurring [Member] | Level 2 | Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 5 | 3 |
Mortgage loans at estimated fair value | 272 | 280 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 131 | 138 |
Recurring [Member] | Level 2 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 99,014 | 99,012 |
Recurring [Member] | Level 2 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 54,086 | 55,185 |
Recurring [Member] | Level 2 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 50,977 | 51,355 |
Recurring [Member] | Level 2 | U.S. Treasury and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 26,356 | 24,637 |
Recurring [Member] | Level 2 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 36,642 | 35,463 |
Recurring [Member] | Level 2 | CMBS (1) | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 12,667 | 13,567 |
Recurring [Member] | Level 2 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 11,355 | 12,005 |
Recurring [Member] | Level 2 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 15,708 | 15,187 |
Recurring [Member] | Level 2 | Common stock | ||
Assets [Abstract] | ||
Available-for-sale Securities, Equity Securities | 883 | 863 |
Recurring [Member] | Level 2 | Non-redeemable preferred stock | ||
Assets [Abstract] | ||
Available-for-sale Securities, Equity Securities | 894 | 865 |
Recurring [Member] | Level 3 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 22,757 | 22,135 |
Available-for-sale Securities, Equity Securities | 338 | 345 |
Actively Traded securities | 10 | 5 |
Fair Value Option And Trading Securities | 521 | 567 |
Short-term investments | 1,358 | 336 |
Mortgage loans at estimated fair value | 329 | 308 |
Other investments | 0 | 0 |
Derivative assets | 444 | 459 |
Total other invested assets | 444 | 459 |
Net embedded derivatives within asset host contracts | 407 | 377 |
Separate account assets | 2,056 | 1,922 |
Total assets | 28,210 | 26,449 |
Liabilities [Abstract] | ||
Derivative liabilities | 789 | 759 |
Net embedded derivatives within liability host contracts | 129 | -53 |
Trading liabilities | 0 | 0 |
Total liabilities | 930 | 719 |
Recurring [Member] | Level 3 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 70 | 63 |
Liabilities [Abstract] | ||
Derivative liabilities | 1 | 0 |
Recurring [Member] | Level 3 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 28 | 25 |
Liabilities [Abstract] | ||
Derivative liabilities | 95 | 93 |
Recurring [Member] | Level 3 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 11 | 14 |
Liabilities [Abstract] | ||
Derivative liabilities | 1 | 2 |
Recurring [Member] | Level 3 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 335 | 357 |
Liabilities [Abstract] | ||
Derivative liabilities | 692 | 664 |
Recurring [Member] | Level 3 | FVO general account securities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 89 | 95 |
Recurring [Member] | Level 3 | FVO contractholder-directed unit-linked investments | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 412 | 455 |
Recurring [Member] | Level 3 | Residential mortgage loans — FVO | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 329 | 308 |
Recurring [Member] | Level 3 | Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 10 | 12 |
Mortgage loans at estimated fair value | 0 | 0 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 12 | 13 |
Recurring [Member] | Level 3 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 7,321 | 6,942 |
Recurring [Member] | Level 3 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 6,408 | 6,490 |
Recurring [Member] | Level 3 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 1,384 | 1,311 |
Recurring [Member] | Level 3 | U.S. Treasury and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 3 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 4,545 | 4,383 |
Recurring [Member] | Level 3 | CMBS (1) | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 644 | 765 |
Recurring [Member] | Level 3 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 2,453 | 2,244 |
Recurring [Member] | Level 3 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 2 | 0 |
Recurring [Member] | Level 3 | Common stock | ||
Assets [Abstract] | ||
Available-for-sale Securities, Equity Securities | 94 | 95 |
Recurring [Member] | Level 3 | Non-redeemable preferred stock | ||
Assets [Abstract] | ||
Available-for-sale Securities, Equity Securities | $244 | $250 |
Fair_Value_Quantitative_Inform
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% |
Foreign currency exchange rate contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | -0.50% | 0.62% |
Correlation | 40.00% | 40.00% |
Foreign currency exchange rate contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | 15.97% | 24.30% |
Correlation | 54.00% | 55.00% |
Credit contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Credit spreads | 0.98% | 0.98% |
Credit contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Credit spreads | 1.00% | 1.00% |
Equity market contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Correlation | 70.00% | 70.00% |
Volatility | 11.00% | 15.00% |
Equity market contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Correlation | 70.00% | 70.00% |
Volatility | 28.00% | 27.00% |
Embedded derivatives direct and assumed 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 assumed guaranteed minimum benefits | Income Approach Valuation Technique | Durations 11 - 20 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate, Low End | 2.00% | 2.00% |
Lapse Rate, High End | 100.00% | 100.00% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Income Approach Valuation Technique | Durations 21 - 116 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate, Low End | 2.00% | 2.00% |
Lapse Rate, High End | 100.00% | 100.00% |
Embedded derivatives direct and assumed 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 | 0.28% | 0.28% |
Embedded derivatives direct and assumed 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 | 0.88% | 0.88% |
Embedded derivatives direct and assumed 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 assumed guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Utilization rates | 0.00% | 20.00% |
Withdrawal rates | 0.00% | 0.00% |
Long-term equity volatilities | 8.88% | 7.30% |
Nonperformance risk spread | -0.15% | -0.35% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Utilization rates | 30.00% | 50.00% |
Withdrawal rates | 20.00% | 20.00% |
Long-term equity volatilities | 33.00% | 33.00% |
Nonperformance risk spread | 1.00% | 0.81% |
U.S. corporate and foreign corporate securities | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Delta spread adjustments | -0.45% | -0.40% |
Offered quotes | 31 | 31 |
Quoted prices | 6 | 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 | 126 |
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 | 0.43% | 0.46% |
Offered quotes | 242 | 99 |
Quoted prices | 122 | 151 |
Foreign government | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 72 | 92 |
Foreign government | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 195 | 189 |
Foreign government | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 106 | 106 |
RMBS | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 30 | 1 |
Quoted prices | 22 | 22 |
RMBS | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 114 | 118 |
Quoted prices | 120 | 120 |
RMBS | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 94 | 93 |
Quoted prices | 96 | 97 |
ABS | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 56 | 56 |
Quoted prices | 15 | 15 |
ABS | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 106 | 106 |
Quoted prices | 110 | 110 |
ABS | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 99 | 102 |
Quoted prices | 100 | 100 |
Fair_Value_Unobservable_Input_
Fair Value (Unobservable Input Reconciliation) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Consolidated Securitization Entities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | $12 | $0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases | 0 | 0 |
Sales | -1 | -1 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 12 |
Transfers out of Level 3 | -1 | 0 |
Balance, end of period | 10 | 11 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | -13 | -28 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 1 | 13 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, end of period | -12 | -15 |
Consolidated Securitization Entities | 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 |
Fair Value, Liabilities 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 |
Consolidated Securitization Entities | 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 |
Fair Value, Liabilities 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 |
Consolidated Securitization Entities | 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 |
Fair Value, Liabilities 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 |
Consolidated Securitization Entities | 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 |
Fair Value, Liabilities 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 |
Interest rate contracts | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance, beginning of period | 63 | 13 |
Other Comprehensive Income (Loss) | 15 | 37 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | -8 | -1 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, end of period | 69 | 56 |
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) | -1 | 6 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Net Income (Loss) | -1 | 7 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -1 | 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 |
Foreign currency exchange rate contracts | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance, beginning of period | -68 | -11 |
Other Comprehensive Income (Loss) | 0 | -2 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 15 | 1 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, end of period | -67 | -13 |
Foreign currency exchange 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 |
Foreign currency exchange 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 |
Foreign currency exchange 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) | -11 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Net Income (Loss) | -14 | -1 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -11 | 0 |
Foreign currency exchange 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 | 12 | 29 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | -3 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, end of period | 10 | 20 |
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) | -1 | -6 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Net Income (Loss) | -2 | -6 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -1 | -6 |
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 | -307 | -317 |
Other Comprehensive Income (Loss) | 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 | -357 | -356 |
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) | -52 | -42 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Net Income (Loss) | -52 | -43 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -52 | -42 |
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 | 430 | 1,258 |
Other Comprehensive Income (Loss) | -2 | -5 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | -201 | -193 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, end of period | 278 | 980 |
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) | 22 | -94 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Net Income (Loss) | 27 | -95 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 22 | -94 |
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 |
FVO general account securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 95 | 29 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases | 0 | 0 |
Sales | -6 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, end of period | 89 | 29 |
FVO general account securities | 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) | -1 | 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) | -1 | 0 |
FVO general account securities | 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 |
FVO general account securities | 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 |
FVO general account securities | 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 |
FVO contractholder-directed unit-linked investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 455 | 603 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases | 108 | 237 |
Sales | -145 | -300 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 39 | 96 |
Transfers out of Level 3 | -27 | -26 |
Balance, end of period | 412 | 624 |
FVO contractholder-directed unit-linked investments | Net investment income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Net Income (Loss) | -18 | 14 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -15 | 14 |
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) | -15 | 14 |
FVO contractholder-directed unit-linked 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 |
FVO contractholder-directed unit-linked 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 |
FVO contractholder-directed unit-linked 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 |
Residential Mortgage Loans — FVO | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 308 | 338 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases | 60 | 28 |
Sales | -49 | -5 |
Issuances | 0 | 0 |
Settlements | -12 | -12 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, end of period | 329 | 352 |
Residential Mortgage Loans — FVO | Net investment income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Net Income (Loss) | 22 | 3 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 22 | 3 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 22 | 3 |
Residential Mortgage Loans — FVO | 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 |
Residential Mortgage Loans — FVO | 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 |
Residential Mortgage Loans — FVO | 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 |
U.S. corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 6,942 | 7,148 |
Other Comprehensive Income (Loss) | 57 | 160 |
Purchases | 431 | 651 |
Sales | -133 | -206 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 128 | 459 |
Transfers out of Level 3 | -104 | -827 |
Balance, end of period | 7,321 | 7,378 |
U.S. 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 |
U.S. corporate | Net investment gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Net Income (Loss) | 0 | -7 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | -7 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | -7 |
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 | 6,490 | 6,704 |
Other Comprehensive Income (Loss) | -132 | 120 |
Purchases | 178 | 471 |
Sales | -109 | -109 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 93 | 435 |
Transfers out of Level 3 | -110 | -1,129 |
Balance, end of period | 6,408 | 6,501 |
Foreign corporate | Net investment income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Net Income (Loss) | 9 | 9 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 6 | 9 |
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) | 6 | 9 |
Foreign corporate | Net investment gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Net Income (Loss) | -11 | 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 |
Foreign government | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 1,311 | 2,235 |
Other Comprehensive Income (Loss) | 23 | 14 |
Purchases | 43 | 74 |
Sales | -53 | -52 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 215 | 231 |
Transfers out of Level 3 | -137 | -957 |
Balance, end of period | 1,384 | 1,545 |
Foreign government | Net investment income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Net Income (Loss) | 4 | 6 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 3 | 5 |
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) | 3 | 5 |
Foreign government | Net investment gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Net Income (Loss) | -22 | -6 |
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 government | 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 government | 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 |
U.S. Treasury and agency | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 0 | 62 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases | 0 | 25 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | -42 |
Balance, end of period | 0 | 45 |
U.S. Treasury and agency | 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 |
U.S. Treasury and agency | 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 |
U.S. Treasury and agency | 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. Treasury and agency | 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 | 4,383 | 2,957 |
Other Comprehensive Income (Loss) | -12 | -12 |
Purchases | 509 | 571 |
Sales | -240 | -192 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 147 |
Transfers out of Level 3 | -110 | -50 |
Balance, end of period | 4,545 | 3,439 |
RMBS | Net investment income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Net Income (Loss) | 13 | 10 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 12 | 10 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 12 | 10 |
RMBS | Net investment gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Net Income (Loss) | 2 | 8 |
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 |
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 |
CMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 765 | 972 |
Other Comprehensive Income (Loss) | -7 | -25 |
Purchases | 73 | 103 |
Sales | -119 | -155 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 24 |
Transfers out of Level 3 | -68 | -238 |
Balance, end of period | 644 | 682 |
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 | 1 |
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 |
ABS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 2,244 | 4,210 |
Other Comprehensive Income (Loss) | -11 | 75 |
Purchases | 868 | 652 |
Sales | -212 | -315 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 8 | 578 |
Transfers out of Level 3 | -437 | -2,362 |
Balance, end of period | 2,453 | 2,800 |
ABS | Net investment income | ||
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) | 1 | 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) | 1 | 0 |
ABS | Net investment gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Net Income (Loss) | -7 | -43 |
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 |
State and political subdivision | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 0 | 10 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 2 | 21 |
Transfers out of Level 3 | 0 | -10 |
Balance, end of period | 2 | 21 |
State and political subdivision | 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 |
State and political subdivision | 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 |
State and political subdivision | 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 |
State and political subdivision | 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 | 95 | 177 |
Other Comprehensive Income (Loss) | 2 | -8 |
Purchases | 5 | 3 |
Sales | -5 | -26 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 1 | 38 |
Transfers out of Level 3 | -3 | 0 |
Balance, end of period | 94 | 203 |
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) | -1 | 19 |
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 |
Non-redeemable preferred stock | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 250 | 395 |
Other Comprehensive Income (Loss) | -4 | 6 |
Purchases | 4 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 40 |
Transfers out of Level 3 | -6 | 0 |
Balance, end of period | 244 | 441 |
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 |
Actively Traded Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 5 | 12 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases | 5 | 11 |
Sales | 0 | -5 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | -7 |
Balance, end of period | 10 | 11 |
Actively Traded Securities | 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 |
Actively Traded Securities | 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 |
Actively Traded Securities | 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 |
Actively Traded Securities | 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 | 336 | 254 |
Other Comprehensive Income (Loss) | -1 | -1 |
Purchases | 1,332 | 947 |
Sales | -25 | -59 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | -285 | -110 |
Balance, end of period | 1,358 | 1,032 |
Short-term Investments | 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 |
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 | 1,922 | 1,465 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases | 231 | 321 |
Sales | -127 | -83 |
Issuances | 0 | 25 |
Settlements | -1 | -2 |
Transfers into Level 3 | 1 | 18 |
Transfers out of Level 3 | -6 | -58 |
Balance, end of period | 2,056 | 1,730 |
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) | 36 | 44 |
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 |
Fair_Value_Fair_Value_Option_f
Fair Value (Fair Value Option for Certain Assets and Liabilities) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Carrying value at estimated fair value | $62,409 | $60,118 |
Carrying value at estimated fair value | 17,714 | 16,286 |
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 |
Loans in non-accrual status | 0 | 0 |
Contractual principal balance | 152 | 159 |
Difference between estimated fair value and contractual principal balance | -9 | -8 |
Carrying value at estimated fair value | 143 | 151 |
Residential mortgage loans — FVO | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid principal balance | 466 | 436 |
Difference between estimated fair value and unpaid principal balance | -137 | -128 |
Carrying value at estimated fair value | 329 | 308 |
Loans in non-accrual status | $162 | $125 |
Fair_Value_Nonrecurring_Fair_V
Fair Value (Nonrecurring Fair Value Measurements) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 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 | $95 | $199 |
Level 3 | Other limited partnership interests | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value After Measurement | 22 | 4 |
Nonrecurring | Mortgage loans, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gains (Losses) | 4 | 0 |
Nonrecurring | Other limited partnership interests | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gains (Losses) | ($11) | ($2) |
Fair_Value_Financial_Instrumen
Fair Value (Financial Instruments Carried at Other Than Fair Value) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Assets | ||
Policy loans | $11,606 | $11,618 |
Liabilities | ||
Collateral financing arrangements | 4,196 | 4,196 |
Junior subordinated debt securities | 3,193 | 3,193 |
Separate account liabilities | 324,724 | 316,994 |
Estimated Fair Value | ||
Assets | ||
Mortgage loans | 64,567 | 62,554 |
Policy loans | 14,067 | 13,934 |
Real estate joint ventures | 136 | 139 |
Other limited partnership interests | 834 | 906 |
Other invested assets | 598 | 562 |
Premiums, reinsurance and other receivables | 4,351 | 3,157 |
Other assets | 237 | 243 |
Liabilities | ||
Policyholder account balances | 136,355 | 139,359 |
Long-term debt | 20,042 | 18,357 |
Collateral financing arrangements | 3,958 | 3,961 |
Junior subordinated debt securities | 4,353 | 4,173 |
Other liabilities | 6,307 | 2,546 |
Separate account liabilities | 119,568 | 116,665 |
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 |
Other invested assets | 157 | 172 |
Premiums, reinsurance and other receivables | 0 | 0 |
Other assets | 0 | 0 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Long-term debt | 0 | 0 |
Collateral financing arrangements | 0 | 0 |
Junior subordinated debt securities | 0 | 0 |
Other liabilities | 0 | 0 |
Separate account liabilities | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 1,664 | 1,647 |
Real estate joint ventures | 0 | 0 |
Other limited partnership interests | 0 | 0 |
Other invested assets | 41 | 70 |
Premiums, reinsurance and other receivables | 1,904 | 713 |
Other assets | 171 | 175 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Long-term debt | 20,042 | 18,357 |
Collateral financing arrangements | 0 | 0 |
Junior subordinated debt securities | 4,353 | 4,173 |
Other liabilities | 4,984 | 1,223 |
Separate account liabilities | 119,568 | 116,665 |
Estimated Fair Value | Level 3 | ||
Assets | ||
Mortgage loans | 64,567 | 62,554 |
Policy loans | 12,403 | 12,287 |
Real estate joint ventures | 136 | 139 |
Other limited partnership interests | 834 | 906 |
Other invested assets | 400 | 320 |
Premiums, reinsurance and other receivables | 2,447 | 2,444 |
Other assets | 66 | 68 |
Liabilities | ||
Policyholder account balances | 136,355 | 139,359 |
Long-term debt | 0 | 0 |
Collateral financing arrangements | 3,958 | 3,961 |
Junior subordinated debt securities | 0 | 0 |
Other liabilities | 1,323 | 1,323 |
Separate account liabilities | 0 | 0 |
Carrying Value | ||
Assets | ||
Mortgage loans | 61,808 | 59,530 |
Policy loans | 11,606 | 11,618 |
Real estate joint ventures | 56 | 67 |
Other limited partnership interests | 643 | 704 |
Other invested assets | 598 | 562 |
Premiums, reinsurance and other receivables | 4,251 | 3,070 |
Other assets | 248 | 251 |
Liabilities | ||
Policyholder account balances | 130,996 | 134,219 |
Long-term debt | 17,564 | 16,128 |
Collateral financing arrangements | 4,196 | 4,196 |
Junior subordinated debt securities | 3,193 | 3,193 |
Other liabilities | 6,305 | 2,544 |
Separate account liabilities | $119,568 | $116,665 |
Fair_Value_Recurring_Fair_Valu1
Fair Value (Recurring Fair Value Measurements) (Narrative) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Equity Securities | $3,713 | $3,631 |
Net Embedded Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Equity Securities | ($303) | ($217) |
Fair_Value_Transfers_Between_L
Fair Value (Transfers Between Levels) (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | |
Fair Value Assets And Liabilities Transferred Between Levels 1 And Levels 2 | $160 |
Fair_Value_Nonrecurring_Fair_V1
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 |
Longterm_Debt_Narrative_Detail
Long-term Debt (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 05, 2015 |
Debt Instrument [Line Items] | ||
Debt Issuance Cost | 12 | |
Senior Debt $500 Million March 2025 [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | 500 | |
Debt Instrument, Maturity Date | 1-Mar-25 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | |
Senior Debt $1.0 Billion March 2045 [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $1,000 | |
Debt Instrument, Maturity Date | 1-Mar-45 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.05% |
Equity_Components_of_Accumulat
Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | $10,649 | $5,104 |
OCI before reclassifications | 1,143 | 4,956 |
Deferred income tax benefit (expense) | -580 | -1,725 |
OCI before reclassifications, net of income tax | 11,212 | 8,335 |
Amounts reclassified from AOCI | 498 | -182 |
Deferred income tax benefit (expense) | -181 | 62 |
Amounts reclassified from AOCI, net of income tax | 317 | -120 |
Balance, end of period | 11,529 | 8,215 |
Unrealized Investment Gains (Losses), Net of Related Offsets | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | 15,159 | 8,183 |
OCI before reclassifications | 1,626 | 4,852 |
Deferred income tax benefit (expense) | -501 | -1,645 |
OCI before reclassifications, net of income tax | 16,284 | 11,390 |
Amounts reclassified from AOCI | -113 | -173 |
Deferred income tax benefit (expense) | 35 | 59 |
Amounts reclassified from AOCI, net of income tax | -78 | -114 |
Balance, end of period | 16,206 | 11,276 |
Unrealized Gains (Losses) on Derivatives | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | 1,076 | 231 |
OCI before reclassifications | 187 | 321 |
Deferred income tax benefit (expense) | -66 | -113 |
OCI before reclassifications, net of income tax | 1,197 | 439 |
Amounts reclassified from AOCI | 554 | -54 |
Deferred income tax benefit (expense) | -196 | 19 |
Amounts reclassified from AOCI, net of income tax | 358 | -35 |
Balance, end of period | 1,555 | 404 |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | -3,303 | -1,659 |
OCI before reclassifications | -670 | -217 |
Deferred income tax benefit (expense) | -13 | 33 |
OCI before reclassifications, net of income tax | -3,986 | -1,843 |
Amounts reclassified from AOCI | 0 | 0 |
Deferred income tax benefit (expense) | 0 | 0 |
Amounts reclassified from AOCI, net of income tax | 0 | 0 |
Balance, end of period | -3,986 | -1,843 |
Defined Benefit Plans Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | -2,283 | -1,651 |
OCI before reclassifications | 0 | 0 |
Deferred income tax benefit (expense) | 0 | 0 |
OCI before reclassifications, net of income tax | -2,283 | -1,651 |
Amounts reclassified from AOCI | 57 | 45 |
Deferred income tax benefit (expense) | -20 | -16 |
Amounts reclassified from AOCI, net of income tax | 37 | 29 |
Balance, end of period | ($2,246) | ($1,622) |
Equity_Reclassifications_Out_o
Equity (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net investment gains (losses) | $286 | ($411) |
Net derivative gains (losses) | 821 | 343 |
Net investment income | 5,461 | 5,035 |
Other expenses | -4,060 | -4,163 |
Income (loss) from continuing operations before provision for income tax | 3,059 | 1,826 |
Provision for income tax expense (benefit) | -896 | -484 |
Net income (loss) | 2,163 | 1,339 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income (loss) | -317 | 120 |
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) | 139 | 112 |
Net derivative gains (losses) | -66 | 35 |
Net investment income | 40 | 26 |
Income (loss) from continuing operations before provision for income tax | 113 | 173 |
Provision for income tax expense (benefit) | -35 | -59 |
Net income (loss) | 78 | 114 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income (loss) from continuing operations before provision for income tax | -554 | 54 |
Provision for income tax expense (benefit) | 196 | -19 |
Net income (loss) | -358 | 35 |
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) | 5 | 15 |
Net investment income | 3 | 2 |
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) | 3 | 0 |
Net investment income | 1 | 1 |
Other expenses | 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) | -567 | 36 |
Net investment income | 0 | -1 |
Other expenses | 0 | 1 |
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Plans Adjustment | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amortization of net actuarial gains (losses) | -58 | -44 |
Amortization of prior service (costs) credit | 1 | -1 |
Income (loss) from continuing operations before provision for income tax | -57 | -45 |
Provision for income tax expense (benefit) | 20 | 16 |
Net income (loss) | ($37) | ($29) |
Equity_Common_Stock_Narrative_
Equity (Common Stock - Narrative) (Details) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 |
Equity [Abstract] | |
Treasury Stock, Shares, Acquired | 19,893,284 |
Treasury Stock, Value, Acquired, Cost Method | $986 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $275 |
Equity_StockBased_Compensation
Equity (Stock-Based Compensation Plans - Narrative) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Equity - Stock-based Compensation Plans [Line Items] | ||
Vesting period | 3 years | |
Minimum | ||
Equity - Stock-based Compensation Plans [Line Items] | ||
Performance Factor | 0.00% | |
Future Performance Factor | 0.00% | |
Maximum | ||
Equity - Stock-based Compensation Plans [Line Items] | ||
Performance Factor | 200.00% | |
Future Performance Factor | 175.00% | |
Performance Shares | ||
Equity - Stock-based Compensation Plans [Line Items] | ||
Performance Factor | 101.00% | |
Vested in period | 1,756,839 | |
Issued in period | 1,774,407 | |
Performance Units | ||
Equity - Stock-based Compensation Plans [Line Items] | ||
Performance Factor | 101.00% | |
Vested in period | 129,734 | |
Paid in period | 131,031 |
Other_Expenses_Other_Expenses_
Other Expenses (Other Expenses) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other Income and Expenses [Abstract] | ||
Compensation | $1,291 | $1,205 |
Pension, postretirement and postemployment benefit costs | 92 | 120 |
Commissions | 1,157 | 1,288 |
Volume-related costs | 242 | 201 |
Capitalization of DAC | -968 | -1,046 |
Amortization of DAC and VOBA | 1,025 | 1,058 |
Amortization of negative VOBA | -100 | -115 |
Interest expense on debt | 298 | 312 |
Premium taxes, licenses and fees | 173 | 225 |
Professional services | 330 | 321 |
Rent and related expenses, net of sublease income | 83 | 85 |
Other | 437 | 509 |
Total other expenses | $4,060 | $4,163 |
Employee_Benefit_Plans_Net_Per
Employee Benefit Plans (Net Periodic Benefit Costs) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Pension Benefits U.S. Plans [Member] | ||
Components of net periodic benefit costs | ||
Service costs | $54 | $50 |
Interest costs | 101 | 109 |
Expected return on plan assets | -134 | -119 |
Amortization of net actuarial (gains) losses | 47 | 41 |
Amortization of prior service costs (credit) | 0 | 1 |
Net periodic benefit costs | 68 | 82 |
Pension Benefits Non-U.S. Plans [Member] | ||
Components of net periodic benefit costs | ||
Service costs | 15 | 20 |
Interest costs | 4 | 3 |
Expected return on plan assets | -2 | -2 |
Amortization of net actuarial (gains) losses | 1 | 0 |
Amortization of prior service costs (credit) | 0 | 0 |
Net periodic benefit costs | 18 | 21 |
Other Postretirement Benefits U.S. Plans [Member] | ||
Components of net periodic benefit costs | ||
Service costs | 4 | 3 |
Interest costs | 22 | 23 |
Expected return on plan assets | -20 | -19 |
Amortization of net actuarial (gains) losses | 10 | 3 |
Amortization of prior service costs (credit) | -1 | 0 |
Net periodic benefit costs | 15 | 10 |
Other Postretirement Benefits Non-U.S. Plans [Member] | ||
Components of net periodic benefit costs | ||
Service costs | 0 | 0 |
Interest costs | 1 | 1 |
Expected return on plan assets | 0 | 0 |
Amortization of net actuarial (gains) losses | 0 | 0 |
Amortization of prior service costs (credit) | 0 | 0 |
Net periodic benefit costs | $1 | $1 |
Earnings_Per_Common_Share_Earn
Earnings Per Common Share (Earnings Per Common Share) (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Weighted Average Shares | ||
Weighted average common stock outstanding for basic earnings per common share | 1,125,703,588 | 1,126,922,641 |
Incremental common shares from assumed: | ||
Stock purchase contracts underlying common equity units | 0 | 3,385,696 |
Exercise or issuance of stock-based awards | 10,057,530 | 10,157,701 |
Weighted average common stock outstanding for diluted earnings per common share | 1,135,761,118 | 1,140,466,038 |
Income (Loss) from Continuing Operations | ||
Income (loss) from continuing operations, net of income tax | $2,163 | $1,342 |
Less: Income (loss) from continuing operations, net of income tax, attributable to noncontrolling interests | 5 | 11 |
Less: Preferred stock dividends | 30 | 30 |
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders | 2,128 | 1,301 |
Basic | $1.89 | $1.15 |
Diluted | $1.87 | $1.14 |
Income (Loss) from Discontinued Operations | ||
Income (loss) from discontinued operations, net of income tax | 0 | -3 |
Less: Income (loss) from discontinued operations, net of income tax, attributable to noncontrolling interests | 0 | 0 |
Income (loss) from discontinued operations, net of income tax, available to MetLife, Inc.’s common shareholders | 0 | -3 |
Basic | $0 | $0 |
Diluted | $0 | $0 |
Net Income (Loss) | ||
Net income (loss) | 2,163 | 1,339 |
Less: Net income (loss) attributable to noncontrolling interests | 5 | 11 |
Less: Preferred stock dividends | 30 | 30 |
Net income (loss) available to MetLife, Inc.’s common shareholders | $2,128 | $1,298 |
Basic | $1.89 | $1.15 |
Diluted | $1.87 | $1.14 |
Contingencies_Commitments_and_1
Contingencies, Commitments and Guarantees (Contingencies - Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Claims | Claims | Claims | |
MetLife Home Loans LLC | |||
Loss Contingencies | |||
Litigation Settlement, Amount | -123,500,000 | ||
Minimum | |||
Loss Contingencies | |||
The approximate amount of the aggregate range of reasonably possible losses in excess of amounts accrued for matters as to which an estimate can be made | 0 | ||
Maximum | |||
Loss Contingencies | |||
The approximate amount of the aggregate range of reasonably possible losses in excess of amounts accrued for matters as to which an estimate can be made | 400,000,000 | ||
Superfund Site Settlement Agreements | |||
Loss Contingencies | |||
Number of regulatory matters and other claims | 2 | ||
Maximum estimate of aggregate costs to resolve matter | 1,000,000 | ||
Maximum estimate of costs for environmental testing | 100,000 | ||
Superfund Site Settlement Agreements | Minimum | |||
Loss Contingencies | |||
Damages Sought | 1,000,000 | ||
C-Mart, Inc. V. Metropolitan Life Insurance Company, Et Al | Maximum | |||
Loss Contingencies | |||
Loss Contingency, Estimate of Possible Loss | 23,000,000 | ||
Derivative Actions And Demands | |||
Loss Contingencies | |||
Number of plaintiffs | 2 | ||
Asbestos Related Claims | |||
Loss Contingencies | |||
Asbestos-Related Claims | 1,046 | 1,366 | 4,636 |
New York Licensing Inquiry | Department of Financial Services | |||
Loss Contingencies | |||
Litigation Settlement, Amount | -50,000,000 | ||
New York Licensing Inquiry | New York County, District Attorney | |||
Loss Contingencies | |||
Litigation Settlement, Amount | -10,000,000 |
Contingencies_Commitments_and_2
Contingencies, Commitments and Guarantees (Commitments and Guarantees - Narrative) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Billions, unless otherwise specified | ||
Commitments to Fund Partnership Investments, Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $6.30 | $5.30 |
Mortgage Loan Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $4.70 | $4 |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent Event [Member], USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2015 |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Approved dividend, amount per share | $0.38 |
Estimated aggregate dividend payment | $420 |