| Investments | 6. 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”), asset-backed securities (“ABS”) and commercial mortgage-backed securities (“CMBS”). March 31, 2016 December 31, 2015 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Temporary Losses OTTI Losses Gains Temporary Losses OTTI Losses (In millions) Fixed maturity securities U.S. corporate $ 95,066 $ 8,350 $ 1,320 $ — $ 102,096 $ 96,466 $ 6,583 $ 2,255 $ — $ 100,794 U.S. government and agency 57,060 7,969 38 — 64,991 56,499 5,373 226 — 61,646 Foreign corporate 56,756 3,612 1,273 4 59,091 56,003 3,019 1,822 2 57,198 Foreign government 48,940 7,848 132 — 56,656 45,451 5,269 221 — 50,499 RMBS 41,940 1,577 414 74 43,029 37,914 1,366 424 59 38,797 State and political subdivision 14,243 2,320 16 8 16,539 13,723 1,795 67 10 15,441 ABS 16,407 121 320 6 16,202 14,498 131 229 6 14,394 CMBS (1) 13,000 470 94 (1 ) 13,377 12,410 347 125 (1 ) 12,633 Total fixed maturity securities $ 343,412 $ 32,267 $ 3,607 $ 91 $ 371,981 $ 332,964 $ 23,883 $ 5,369 $ 76 $ 351,402 Equity securities Common stock $ 2,051 $ 412 $ 48 $ — $ 2,415 $ 1,962 $ 397 $ 107 $ — $ 2,252 Non-redeemable preferred stock 959 69 69 — 959 1,035 85 51 — 1,069 Total equity securities $ 3,010 $ 481 $ 117 $ — $ 3,374 $ 2,997 $ 482 $ 158 $ — $ 3,321 __________________ (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, 2016 and December 31, 2015 , 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 $59 million and $54 million with unrealized gains (losses) of $19 million and $12 million at March 31, 2016 and December 31, 2015 , 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, 2016 : 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 $ 13,348 $ 77,283 $ 69,960 $ 111,474 $ 71,347 $ 343,412 Estimated fair value $ 13,428 $ 81,212 $ 74,104 $ 130,629 $ 72,608 $ 371,981 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, ABS and CMBS) 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, 2016 December 31, 2015 Less than 12 Months Equal to or Greater than 12 Months Less than 12 Months Equal to or Greater than 12 Months Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (In millions, except number of securities) Fixed maturity securities U.S. corporate $ 14,740 $ 708 $ 5,276 $ 612 $ 27,526 $ 1,629 $ 3,762 $ 626 U.S. government and agency 1,549 13 500 25 19,628 222 298 4 Foreign corporate 8,960 479 6,210 798 14,447 911 5,251 913 Foreign government 1,996 83 535 49 3,530 166 429 55 RMBS 7,026 234 2,989 254 13,467 287 2,431 196 State and political subdivision 322 4 168 20 1,618 55 168 22 ABS 8,025 188 3,569 138 7,329 124 2,823 111 CMBS 1,697 32 967 61 4,876 81 637 43 Total fixed maturity securities $ 44,315 $ 1,741 $ 20,214 $ 1,957 $ 92,421 $ 3,475 $ 15,799 $ 1,970 Equity securities Common stock $ 168 $ 46 $ 2 $ 2 $ 203 $ 105 $ 20 $ 2 Non-redeemable preferred stock 130 9 176 60 79 2 200 49 Total equity securities $ 298 $ 55 $ 178 $ 62 $ 282 $ 107 $ 220 $ 51 Total number of securities in an unrealized loss position 3,904 1,837 6,366 1,489 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 2015 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, 2016 . 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 decreased $1.7 billion during the three months ended March 31, 2016 to $3.7 billion . The decrease in gross unrealized losses for the three months ended March 31, 2016 , was primarily attributable to a decrease in interest rates and, to a lesser extent, the impact of strengthening foreign currencies on non-functional currency denominated fixed maturity securities. At March 31, 2016 , $472 million of the total $3.7 billion of gross unrealized losses were from 113 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 $472 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, $231 million , or 49% , were related to gross unrealized losses on 55 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 $472 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, $241 million , or 51% , were related to gross unrealized losses on 58 below investment grade fixed maturity securities. Unrealized losses on below investment grade fixed maturity securities are principally related to U.S. and foreign corporate securities (primarily industrial securities) and non-agency RMBS (primarily alternative residential mortgage loans) and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainties including concerns over lower oil prices in the energy sector and valuations of residential real estate supporting non-agency RMBS. Management evaluates U.S. and foreign corporate securities based on factors such as expected cash flows and the financial condition and near-term and long-term prospects of the issuers; and evaluates non-agency RMBS based on actual and projected cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security and the payment priority within the tranche structure of the security. Equity Securities Gross unrealized losses on equity securities decreased $41 million during the three months ended March 31, 2016 to $117 million . Of the $117 million , $47 million were from nine securities with gross unrealized losses of 20% or more of cost for 12 months or greater. Of the $47 million , 64% were rated A or better, and all were from financial services industry investment grade non-redeemable preferred stock. Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at: March 31, 2016 December 31, 2015 Carrying Value % of Total Carrying Value % of Total (In millions) (In millions) Mortgage loans Commercial $ 45,445 66.2 % $ 44,012 65.6 % Agricultural 13,226 19.3 13,188 19.6 Residential 9,800 14.3 9,734 14.5 Subtotal (1) 68,471 99.8 66,934 99.7 Valuation allowances (381 ) (0.6 ) (318 ) (0.5 ) Subtotal mortgage loans, net 68,090 99.2 66,616 99.2 Residential — FVO 392 0.6 314 0.5 Commercial mortgage loans held by CSEs — FVO 169 0.2 172 0.3 Total mortgage loans, net $ 68,651 100.0 % $ 67,102 100.0 % __________________ (1) Purchases of mortgage loans were $292 million and $1.4 billion for the three months ended March 31, 2016 and 2015 , respectively. See “— Variable Interest Entities” for discussion of consolidated securitization entities (“CSEs”). I nformation 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 8 . 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 Investment Valuation Unpaid Principal Balance Recorded Recorded Valuation Carrying (In millions) March 31, 2016 Commercial $ 161 $ 144 $ 58 $ 56 $ 56 $ 45,245 $ 223 $ 142 Agricultural 16 14 1 39 38 13,174 39 51 Residential — — — 176 162 9,638 60 162 Total $ 177 $ 158 $ 59 $ 271 $ 256 $ 68,057 $ 322 $ 355 December 31, 2015 Commercial $ — $ — $ — $ 57 $ 57 $ 43,955 $ 217 $ 57 Agricultural 49 47 3 22 21 13,120 39 65 Residential — — — 141 131 9,603 59 131 Total $ 49 $ 47 $ 3 $ 220 $ 209 $ 66,678 $ 315 $ 253 The average recorded investment for impaired commercial, agricultural and residential mortgage loans was $128 million , $60 million and $147 million , respectively, for the three months ended March 31, 2016 ; and $171 million , $63 million and $47 million , respectively, for the three months ended March 31, 2015 . Valuation Allowance Rollforward by Portfolio Segment The changes in the valuation allowance, by portfolio segment, were as follows: Three Months 2016 2015 Commercial Agricultural Residential Total Commercial Agricultural Residential Total (In millions) Balance, beginning of period $ 217 $ 42 $ 59 $ 318 $ 224 $ 39 $ 42 $ 305 Provision (release) 64 — 4 68 1 — 14 15 Charge-offs, net of recoveries — (2 ) (3 ) (5 ) — — (5 ) (5 ) Balance, end of period $ 281 $ 40 $ 60 $ 381 $ 225 $ 39 $ 51 $ 315 Credit Quality of Commercial Mortgage Loans The credit quality of commercial mortgage loans was as follows at: Recorded Investment Estimated % of Total Debt Service Coverage Ratios % of Total > 1.20x 1.00x - 1.20x < 1.00x Total (In millions) (In millions) March 31, 2016 Loan-to-value ratios Less than 65% $ 39,658 $ 888 $ 594 $ 41,140 90.5 % $ 42,534 91.0 % 65% to 75% 3,371 106 206 3,683 8.1 3,673 7.8 76% to 80% 89 — — 89 0.2 93 0.2 Greater than 80% 438 42 53 533 1.2 452 1.0 Total $ 43,556 $ 1,036 $ 853 $ 45,445 100 % $ 46,752 100 % December 31, 2015 Loan-to-value ratios Less than 65% $ 38,163 $ 1,063 $ 544 $ 39,770 90.4 % $ 40,921 90.7 % 65% to 75% 3,270 138 76 3,484 7.9 3,451 7.7 76% to 80% — — — — — — — Greater than 80% 381 140 237 758 1.7 732 1.6 Total $ 41,814 $ 1,341 $ 857 $ 44,012 100.0 % $ 45,104 100.0 % Credit Quality of Agricultural Mortgage Loans The credit quality of agricultural mortgage loans was as follows at: March 31, 2016 December 31, 2015 Recorded Investment % of Total Recorded Investment % of Total (In millions) (In millions) Loan-to-value ratios Less than 65% $ 12,583 95.1 % $ 12,399 94.0 % 65% to 75% 575 4.3 710 5.4 76% to 80% 20 0.2 21 0.2 Greater than 80% 48 0.4 58 0.4 Total $ 13,226 100.0 % $ 13,188 100.0 % The estimated fair value of agricultural mortgage loans was $13.6 billion and $13.5 billion at March 31, 2016 and December 31, 2015 , respectively. Credit Quality of Residential Mortgage Loans The credit quality of residential mortgage loans was as follows at: March 31, 2016 December 31, 2015 Recorded Investment % of Total Recorded Investment % of Total (In millions) (In millions) Performance indicators Performing $ 9,483 96.8 % $ 9,408 96.7 % Nonperforming 317 3.2 326 3.3 Total $ 9,800 100.0 % $ 9,734 100.0 % The estimated fair value of residential mortgage loans was $10.1 billion and $9.9 billion at March 31, 2016 and December 31, 2015 , 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, 2016 and December 31, 2015 . 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, 2016 December 31, 2015 March 31, 2016 December 31, 2015 (In millions) Commercial $ — $ 2 $ — $ — Agricultural 127 103 40 46 Residential 317 326 305 318 Total $ 444 $ 431 $ 345 $ 364 Mortgage Loans Modified in a Troubled Debt Restructuring During both the three months ended March 31, 2016 and 2015 , 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 $6.0 billion and $7.5 billion at March 31, 2016 and December 31, 2015 , 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, 2016 December 31, 2015 (In millions) Fixed maturity securities $ 28,427 $ 18,164 Fixed maturity securities with noncredit OTTI losses included in AOCI (91 ) (76 ) Total fixed maturity securities 28,336 18,088 Equity securities 447 422 Derivatives 2,723 2,350 Other 359 287 Subtotal 31,865 21,147 Amounts allocated from: Future policy benefits (1,415 ) (163 ) DAC and VOBA related to noncredit OTTI losses recognized in AOCI 2 — DAC, VOBA and DSI (1,900 ) (1,273 ) Policyholder dividend obligation (2,586 ) (1,783 ) Subtotal (5,899 ) (3,219 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI 39 27 Deferred income tax benefit (expense) (8,825 ) (6,151 ) Net unrealized investment gains (losses) 17,180 11,804 Net unrealized investment gains (losses) attributable to noncontrolling interests (9 ) (31 ) Net unrealized investment gains (losses) attributable to MetLife, Inc. $ 17,171 $ 11,773 The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows: Three Months Year (In millions) Balance, beginning of period $ (76 ) $ (112 ) Noncredit OTTI losses and subsequent changes recognized (1 ) 6 Securities sold with previous noncredit OTTI loss 9 125 Subsequent changes in estimated fair value (23 ) (95 ) Balance, end of period $ (91 ) $ (76 ) The changes in net unrealized investment gains (losses) were as follows: Three Months (In millions) Balance, beginning of period $ 11,773 Fixed maturity securities on which noncredit OTTI losses have been recognized (15 ) Unrealized investment gains (losses) during the period 10,733 Unrealized investment gains (losses) relating to: Future policy benefits (1,252 ) DAC and VOBA related to noncredit OTTI losses recognized in AOCI 2 DAC, VOBA and DSI (627 ) Policyholder dividend obligation (803 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI 12 Deferred income tax benefit (expense) (2,674 ) Net unrealized investment gains (losses) 17,149 Net unrealized investment gains (losses) attributable to noncontrolling interests 22 Balance, end of period $ 17,171 Change in net unrealized investment gains (losses) $ 5,376 Change in net unrealized investment gains (losses) attributable to noncontrolling interests 22 Change in net unrealized investment gains (losses) attributable to MetLife, Inc. $ 5,398 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 $24.9 billion and $20.9 billion at March 31, 2016 and December 31, 2015 , 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 $29.7 billion and $25.4 billion at March 31, 2016 and December 31, 2015 , respectively. Securities Lending Elements of the securities lending program are presented below at: March 31, 2016 December 31, 2015 (In millions) Securities on loan: (1) Amortized cost $ 26,599 $ 27,223 Estimated fair value $ 30,474 $ 29,646 Cash collateral on deposit from counterparties (2) $ 30,986 $ 30,197 Security collateral on deposit from counterparties (3) $ 88 $ 50 Reinvestment portfolio — estimated fair value $ 31,173 $ 30,258 __________________ (1) Included within fixed maturity securities and short-term investments. At March 31, 2016 , both amortized cost and estimated fair value also included $105 million , at estimated fair value, of securities which are not reflected on 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 on the consolidated financial statements. The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at: March 31, 2016 Remaining Tenor of Securities Lending Agreements Open (1) 1 Month or Less 1 to 6 Months Total % of Total (In millions) Cash collateral liability by loaned security type U.S. government and agency $ 8,665 $ 10,353 $ 9,476 $ 28,494 92.0 % Agency RMBS 12 665 600 1,277 4.1 Foreign government 2 803 — 805 2.6 U.S. corporate 11 387 — 398 1.3 Foreign corporate — 12 — 12 — Total $ 8,690 $ 12,220 $ 10,076 $ 30,986 100 % December 31, 2015 Remaining Tenor of Securities Lending Agreements Open (1) 1 Month or Less 1 to 6 Months Total % of Total (In millions) Cash collateral liability by loaned security type U.S. government and agency $ 10,116 $ 11,157 $ 5,986 $ 27,259 90.3 % Agency RMBS — 951 600 1,551 5.1 Foreign government 2 510 486 998 3.3 U.S. corporate 9 380 — 389 1.3 Foreign corporate — — — — — Total $ 10,127 $ 12,998 $ 7,072 $ 30,197 100 % __________________ (1) The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral. If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized under normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at March 31, 2016 was $8.5 billion , over 99% of which were U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement. The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including U.S. government and agency, agency RMBS, ABS, U.S. and foreign corporate securities and non-agency RMBS) with 64% invested in U.S. government and agency securities, agency RMBS, short-term investments, or held in cash and cash equivalents. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company. Repurchase Agreement Transactions The Company participates 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 obtains cash collateral in an amount greater than or equal to 95% of the estimated fair value of the securities loaned, and pledges cash collateral in an amount generally equal to 98% of the estimated fair value of the borrowed securities at the inception of the transaction. The Company monitors the estimated fair value of the securities loaned and borrowed on a daily basis with additional collateral obtained as necessary throughout the duration of the transaction. 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 $315 million and $305 million , respectively, at March 31, 2016 . There were no such transactions outstanding as of December 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 on the consolidated financial statements. The amount of borrowed securities which were re-pledged was $105 million , at estimated fair value, at March 31, 2016 . 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, 2016 were both $300 million . After the effect of offsetting of $300 million , the net amount presented on the consolidated balance sheet at March 31, 2016 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. At March 31, 2016 , all $300 million of payables from repurchase agreements had a remaining tenor of six months to one year and were loans of U.S. and foreign corporate securities. See Note 7 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, 2016 December 31, 2015 (In millions) Invested assets on deposit (regulatory deposits) $ 9,696 $ 9,089 Invested assets held in trust (collateral financing arrangements and reinsurance agreements) 10,770 10,443 Invested assets pledged as collateral (1) 25,524 23,145 Total invested assets on deposit, held in trust and pledged as collateral $ 45,990 $ 42,677 __________________ (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 2015 Annual Report), collateral financing arrangements (see Note 13 of the Notes to the Consolidated Financial Statements included in the 2015 Annual Report) and derivative transactions (see Note 7 ). See “— Securities Lending” and “— Repurchase Agreement Transactions” for information regarding securities on loan and Note 5 for information regarding investments designated to the closed block. Variable Interest Entities The Company is involved with certain legal entities that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity. Consolidated VIEs Creditors or beneficial interest holders of VIEs where the Company is the pr imary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment. The following table presents the total assets and total liabilities re lating to VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at March 31, 2016 and December 31, 2015 . March 31, 2016 December 31, 2015 Total Assets Total Liabilities Total Assets Total Liabilities (In millions) MRSC (collateral financing arrangement (primarily securities)) (1) $ 3,412 $ — $ 3,374 $ — Operating joint venture (2) — — 2,465 2,079 CSEs (assets (primarily loans) and liabilities (primarily debt)) (3) 182 55 186 62 Other investments (4) 76 — 76 — Total $ 3,670 $ 55 $ 6,101 $ 2,141 __________________ (1) See Note 13 of the Notes to the Consolidated Financial Statements included in the 2015 Annual Report for a description of the MetLife Reinsurance Company of South Carolina (“MRSC”) collateral financing arrangement. (2) Following a change in the foreign investment law in India, the Company no longer consolidated its India operating joint venture, effective January 1, 2016. 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 policy-related balances 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 $107 million and $105 million at estimated fair value at March 31, 2016 and December 31, 2015 , 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 for both the three months ended March 31, 2016 and 2015 . (4) Other investments is primarily comprised of other invested assets and other limited partnership interests. 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, 2016 December 31, 2015 Carrying Amount Maximum Exposure to Loss (1) Carrying Amount Maximum Exposure to Loss (1) (In millions) Fixed maturity securities AFS: Structured securities (RMBS, ABS and CMBS) (2) $ 72,608 $ 72,608 $ 65,824 $ 65,824 U.S. and foreign corporate 3,075 3,075 3,261 3,261 Other limited partnership interests 6,348 10,791 5,186 7,074 Other invested assets 2,160 2,770 1,604 2,161 FVO and trading securities 541 541 586 586 Real estate joint ventures 251 284 65 82 Equity securities AFS: Common stock 157 157 — — Other investments (3) 72 72 71 71 Total $ 85,212 $ 90,298 $ 76,597 $ 79,059 __________________ (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 $170 million and $179 million at March 31, 2016 and December 31, 2015 , 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. (3) Other investments is comprised of mortgage loans and non-redeemable preferred stock. 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 both the three months ended March 31, 2016 and 2015 . Net Investment Income The components of net investment income were as follows: Three Months 2016 2015 (In millions) Investment income: Fixed maturity securities $ 3,654 $ 3,541 Equity securities 37 31 FVO and trading securities — Actively traded and FVO general account securities (1) 6 37 Mortgage loans 807 730 Policy loans 149 152 Real estate and real estate joint ventures 157 211 Other limited partnership interests 46 215 Cash, cash equivalents and short-term investments 40 35 Operating joint ventures 12 8 Other 41 122 Subtotal 4,949 5,082 Less: Investment expenses 296 302 Subtotal, net 4,653 4,780 FVO and trading securities — FVO contractholder-directed unit-linked investments (1) (97 ) 677 FVO CSEs — interest income: Commercial mortgage loans 3 4 Subtotal (94 ) 681 Net investment income $ 4,559 $ 5,461 __________________ (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 2016 2015 (In millions) Actively traded and FVO general account securities $ 5 $ 6 FVO contractholder-directed unit-linked investments $ (191 ) $ 536 See “— Variable Interest Entities” |
