Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 6 Months Ended | ||
Jun. 30, 2016 | Jul. 29, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | METLIFE INC | ||
Entity Central Index Key | 1,099,219 | ||
Document Type | 10-Q | ||
Document Period End Date | Jun. 30, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | Q2 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 62.6 | ||
Entity Common Stock, Shares Outstanding | 1,098,872,382 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Investments: | ||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $350,821 and $332,964, respectively; includes $3,548 and $4,277, respectively, relating to variable interest entities) | $ 387,508 | $ 351,402 |
Equity securities available-for-sale, at estimated fair value (cost: $2,914 and $2,997, respectively) | 3,333 | 3,321 |
Fair value option and trading securities, at estimated fair value (includes $8 and $404, respectively, of actively traded securities; and $9 and $13, respectively, relating to variable interest entities) | 14,314 | 15,024 |
Mortgage loans (net of valuation allowances of $467 and $318, respectively; includes $159 and $172, respectively, at estimated fair value, relating to variable interest entities; includes $449 and $314, respectively, under the fair value option) | 69,399 | 67,102 |
Policy loans (includes $0 and $4, respectively, relating to variable interest entities) | 11,240 | 11,258 |
Real estate and real estate joint ventures (includes $71 and $47, respectively, of real estate held-for-sale) | 9,063 | 8,433 |
Other limited partnership interests (includes $15 and $27, respectively, relating to variable interest entities) | 6,982 | 7,096 |
Short-term investments, principally at estimated fair value (includes $0 and $26, respectively, relating to variable interest entities) | 9,838 | 9,299 |
Other invested assets, principally at estimated fair value (includes $43 and $43, respectively, relating to variable interest entities) | 31,834 | 22,524 |
Total investments | 543,511 | 495,459 |
Cash and cash equivalents, principally at estimated fair value (includes $16 and $85, respectively, relating to variable interest entities) | 17,067 | 12,752 |
Accrued investment income (includes $1 and $23, respectively, relating to variable interest entities) | 3,884 | 3,988 |
Premiums, reinsurance and other receivables (includes $4 and $21, respectively, relating to variable interest entities) | 26,035 | 22,702 |
Deferred policy acquisition costs and value of business acquired (includes $0 and $240, respectively, relating to variable interest entities) | 24,748 | 24,130 |
Current income tax recoverable | 51 | 161 |
Goodwill | 9,852 | 9,477 |
Other assets (includes $3 and $148, respectively, relating to variable interest entities) | 7,747 | 7,666 |
Separate account assets (includes $0 and $1,022, respectively, relating to variable interest entities) | 309,672 | 301,598 |
Total assets | 942,567 | 877,933 |
Liabilities | ||
Future policy benefits (includes $0 and $716, respectively, relating to variable interest entities) | 204,461 | 191,879 |
Policyholder account balances (includes $0 and $21, respectively, relating to variable interest entities) | 213,526 | 202,722 |
Other policy-related balances (includes $0 and $238, respectively, relating to variable interest entities) | 14,447 | 14,255 |
Policyholder dividends payable | 734 | 720 |
Policyholder dividend obligation | 3,343 | 1,783 |
Payables for collateral under securities loaned and other transactions | 45,790 | 36,871 |
Short-term debt | 103 | 100 |
Long-term debt (includes $47 and $63, respectively, at estimated fair value, relating to variable interest entities) | 16,586 | 18,023 |
Collateral financing arrangements | 4,113 | 4,139 |
Junior subordinated debt securities | 3,168 | 3,194 |
Deferred income tax liability | 14,966 | 10,592 |
Other liabilities (includes $0 and $81, respectively, relating to variable interest entities) | 32,285 | 23,561 |
Separate account liabilities (includes $0 and $1,022, respectively, relating to variable interest entities) | 309,672 | 301,598 |
Total liabilities | 863,194 | 809,437 |
Contingencies, Commitments and Guarantees (Note 13) | ||
Redeemable noncontrolling interests in partially-owned consolidated subsidiaries | 0 | 77 |
MetLife, Inc.’s stockholders’ equity: | ||
Preferred stock, par value $0.01 per share; $2,100 aggregate liquidation preference | 0 | 0 |
Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,161,802,382 and 1,159,590,766 shares issued, respectively; 1,098,794,277 and 1,098,028,525 shares outstanding, respectively | 12 | 12 |
Additional paid-in capital | 30,783 | 30,749 |
Retained earnings | 36,924 | 35,519 |
Treasury stock, at cost; 63,008,105 and 61,562,241 shares, respectively | (3,172) | (3,102) |
Accumulated other comprehensive income (loss) | 14,632 | 4,771 |
Total MetLife, Inc.’s stockholders’ equity | 79,179 | 67,949 |
Noncontrolling interests | 194 | 470 |
Total equity | 79,373 | 68,419 |
Total liabilities and equity | $ 942,567 | $ 877,933 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Amortized cost of fixed maturity securities available-for-sale | $ 350,821 | $ 332,964 |
Fixed maturity securities relating to variable interest entities | 387,508 | 351,402 |
Cost of equity securities available-for-sale | 2,914 | 2,997 |
Actively traded securities | 8 | 404 |
Fair value option and trading securities relating to variable interest entities | 14,314 | 15,024 |
Mortgage loans valuation allowances | 467 | 318 |
Mortgage Loans on Real Estate | 69,399 | 67,102 |
Policy loans | 11,240 | 11,258 |
Real estate held-for-sale | 71 | 47 |
Other limited partnership interests relating to variable interest entities | 6,982 | 7,096 |
Short-term investments | 9,838 | 9,299 |
Other invested assets relating to variable interest entities | 31,834 | 22,524 |
Cash and cash equivalents relating to variable interest entities | 17,067 | 12,752 |
Accrued investment income relating to variable interest entities | 3,884 | 3,988 |
Premiums, reinsurance and other receivables relating to variable interest entities | 26,035 | 22,702 |
Deferred policy acquisition costs and value of business acquired relating to variable interest entities | 24,748 | 24,130 |
Other assets relating to variable interest entities | 7,747 | 7,666 |
Separate account assets | 309,672 | 301,598 |
Liabilities | ||
Future policy benefits relating to variable interest entities | 204,461 | 191,879 |
Policyholder account balances | 213,526 | 202,722 |
Other policy-related balances relating to variable interest entities | 14,447 | 14,255 |
Long-term debt, at estimated fair value, relating to variable interest entities | 16,586 | 18,023 |
Other liabilities relating to variable interest entities | 32,285 | 23,561 |
Separate account liabilities | $ 309,672 | $ 301,598 |
MetLife, Inc.’s stockholders’ equity: | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
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 | 1,161,802,382 | 1,159,590,766 |
Common stock, shares outstanding | 1,098,794,277 | 1,098,028,525 |
Treasury stock, shares | 63,008,105 | 61,562,241 |
Residential mortgage loans — FVO | ||
Assets | ||
Mortgage Loans on Real Estate | $ 449 | $ 314 |
Variable interest entities | ||
Assets | ||
Fixed maturity securities relating to variable interest entities | 3,548 | 4,277 |
Fair value option and trading securities relating to variable interest entities | 9 | 13 |
Mortgage Loans on Real Estate | 159 | 172 |
Policy loans | 0 | 4 |
Other limited partnership interests relating to variable interest entities | 15 | 27 |
Short-term investments | 0 | 26 |
Other invested assets relating to variable interest entities | 43 | 43 |
Cash and cash equivalents relating to variable interest entities | 16 | 85 |
Accrued investment income relating to variable interest entities | 1 | 23 |
Premiums, reinsurance and other receivables relating to variable interest entities | 4 | 21 |
Deferred policy acquisition costs and value of business acquired relating to variable interest entities | 0 | 240 |
Other assets relating to variable interest entities | 3 | 148 |
Separate account assets | 0 | 1,022 |
Liabilities | ||
Future policy benefits relating to variable interest entities | 0 | 716 |
Policyholder account balances | 0 | 21 |
Other policy-related balances relating to variable interest entities | 0 | 238 |
Long-term debt, at estimated fair value, relating to variable interest entities | 47 | 63 |
Other liabilities relating to variable interest entities | 0 | 81 |
Separate account liabilities | $ 0 | $ 1,022 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | ||||
Premiums | $ 9,417 | $ 9,312 | $ 19,110 | $ 18,565 |
Universal life and investment-type product policy fees | 2,286 | 2,434 | 4,630 | 4,828 |
Net investment income | 4,887 | 4,947 | 9,446 | 10,408 |
Other revenues | 487 | 518 | 974 | 1,013 |
Net investment gains (losses): | ||||
Other-than-temporary impairments on fixed maturity securities | (8) | 0 | (86) | (8) |
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss) | (6) | (2) | (6) | (12) |
Other net investment gains (losses) | 280 | (131) | 373 | 173 |
Total net investment gains (losses) | 266 | (133) | 281 | 153 |
Net derivative gains (losses) | (2,099) | (912) | (764) | (91) |
Total revenues | 15,244 | 16,166 | 33,677 | 34,876 |
Expenses | ||||
Policyholder benefits and claims | 10,274 | 9,352 | 19,952 | 18,609 |
Interest credited to policyholder account balances | 1,500 | 1,298 | 2,826 | 3,293 |
Policyholder dividends | 324 | 331 | 639 | 670 |
Other expenses | 3,246 | 4,072 | 7,438 | 8,132 |
Total expenses | 15,344 | 15,053 | 30,855 | 30,704 |
Income (loss) before provision for income tax | (100) | 1,113 | 2,822 | 4,172 |
Provision for income tax expense (benefit) | (214) | (6) | 505 | 890 |
Net income (loss) | 114 | 1,119 | 2,317 | 3,282 |
Less: Net income (loss) attributable to noncontrolling interests | 4 | 4 | 6 | 9 |
Net income (loss) attributable to MetLife, Inc. | 110 | 1,115 | 2,311 | 3,273 |
Less: Preferred stock dividends | 46 | 31 | 52 | 61 |
Preferred stock repurchase premium | 0 | 42 | 0 | 42 |
Net income (loss) available to MetLife, Inc.’s common shareholders | 64 | 1,042 | 2,259 | 3,170 |
Comprehensive income (loss) | 3,884 | (3,994) | 12,272 | (893) |
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of income tax | 7 | (23) | 100 | 40 |
Comprehensive income (loss) attributable to MetLife, Inc. | $ 3,877 | $ (3,971) | $ 12,172 | $ (933) |
Net income (loss) available to MetLife, Inc.’s common shareholders per common share: | ||||
Basic | $ 0.06 | $ 0.93 | $ 2.05 | $ 2.83 |
Diluted | 0.06 | 0.92 | 2.04 | 2.80 |
Cash dividends declared per common share | $ 0.400 | $ 0.375 | $ 0.775 | $ 0.725 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions | Total | Maximum | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock at Cost | Accumulated Other Comprehensive Income (Loss) | Total MetLife, Inc.’s Stockholders’ Equity | Noncontrolling Interests | |
Beginning Balance at Dec. 31, 2014 | $ 72,560 | $ 1 | $ 12 | $ 30,543 | $ 32,020 | $ (1,172) | $ 10,649 | $ 72,053 | $ 507 | ||
Repurchase of preferred stock | (1,460) | (1) | (1,459) | (1,460) | |||||||
Preferred stock repurchase premium | (42) | (42) | (42) | ||||||||
Preferred stock issuance | 1,483 | 1,483 | 1,483 | ||||||||
Treasury stock acquired in connection with share repurchases | (1,000) | (1,000) | (1,000) | ||||||||
Stock-based compensation | 151 | 151 | 151 | ||||||||
Dividends on preferred stock | (61) | (61) | (61) | ||||||||
Dividends on common stock | (814) | (814) | (814) | ||||||||
Change in equity of noncontrolling interests | (27) | 0 | (27) | ||||||||
Net income (loss) | 3,282 | 3,273 | 3,273 | 9 | [1] | ||||||
Other comprehensive income (loss), net of income tax | (4,175) | (4,206) | (4,206) | 31 | |||||||
Ending Balance at Jun. 30, 2015 | 69,897 | 0 | 12 | 30,718 | 34,376 | (2,172) | 6,443 | 69,377 | 520 | ||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | $ (1) | ||||||||||
Beginning Balance at Dec. 31, 2015 | 68,419 | 0 | 12 | 30,749 | 35,519 | (3,102) | 4,771 | 67,949 | 470 | ||
Preferred stock repurchase premium | 0 | ||||||||||
Treasury stock acquired in connection with share repurchases | (70) | (70) | (70) | ||||||||
Stock-based compensation | 34 | 34 | 34 | ||||||||
Dividends on preferred stock | (52) | (52) | (52) | ||||||||
Dividends on common stock | (854) | (854) | (854) | ||||||||
Change in equity of noncontrolling interests | (376) | 0 | (376) | ||||||||
Net income (loss) | 2,317 | 2,311 | 2,311 | 6 | [1] | ||||||
Other comprehensive income (loss), net of income tax | 9,955 | 9,861 | 9,861 | 94 | |||||||
Ending Balance at Jun. 30, 2016 | $ 79,373 | $ 0 | $ 12 | $ 30,783 | $ 36,924 | $ (3,172) | $ 14,632 | $ 79,179 | $ 194 | ||
[1] | (1)Net income (loss) attributable to noncontrolling interests did not exclude any gains of redeemable noncontrolling interests in partially-owned consolidated subsidiaries at June 30, 2016. Net income (loss) attributable to noncontrolling interests excluded losses of redeemable noncontrolling interests in partially-owned consolidated subsidiaries of less than $1 million at June 30, 2015. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Cash Flows [Abstract] | ||
Net cash provided by (used in) operating activities | $ 6,255 | $ 6,888 |
Cash flows from investing activities | ||
Sales, maturities and repayments of fixed maturity securities | 67,505 | 77,865 |
Sales, maturities and repayments of equity securities | 893 | 184 |
Sales, maturities and repayments of mortgage loans | 6,751 | 6,494 |
Sales, maturities and repayments of real estate and real estate joint ventures | 171 | 503 |
Sales, maturities and repayments of other limited partnership interests | 450 | 582 |
Purchases of fixed maturity securities | (74,049) | (72,892) |
Purchases of equity securities | (776) | (227) |
Purchases of mortgage loans | (9,088) | (10,545) |
Purchases of real estate and real estate joint ventures | (674) | (334) |
Purchases of other limited partnership interests | (401) | (669) |
Cash received in connection with freestanding derivatives | 2,478 | 1,524 |
Cash paid in connection with freestanding derivatives | (2,709) | (2,600) |
Cash received under repurchase agreements (Note 6) | 0 | 199 |
Cash paid under reverse repurchase agreements (Note 6) | 0 | (199) |
Purchases of investments in operating joint ventures | (39) | 0 |
Net change in policy loans | 107 | (5) |
Net change in short-term investments | (415) | (6,233) |
Net change in other invested assets | 133 | (257) |
Other, net | (245) | (150) |
Net cash provided by (used in) investing activities | (9,908) | (6,760) |
Cash flows from financing activities | ||
Policyholder account balances: Deposits | 41,348 | 44,433 |
Policyholder account balances: Withdrawals | (39,893) | (46,372) |
Net change in payables for collateral under securities loaned and other transactions | 8,594 | 205 |
Net change in short-term debt | 3 | 0 |
Long-term debt issued | 0 | 1,492 |
Long-term debt repaid | (1,264) | (1,020) |
Collateral financing arrangements repaid | (26) | (32) |
Treasury stock acquired in connection with share repurchases | (70) | (1,000) |
Preferred stock issued, net of issuance costs | 0 | 1,485 |
Repurchase of preferred stock | 0 | (905) |
Preferred stock repurchase premium | 0 | (27) |
Dividends on preferred stock | (52) | (61) |
Dividends on common stock | (854) | (814) |
Other, net | (170) | 52 |
Net cash provided by (used in) financing activities | 7,616 | (2,564) |
Effect of change in foreign currency exchange rates on cash and cash equivalents balances | 352 | (298) |
Change in cash and cash equivalents | 4,315 | (2,734) |
Cash and cash equivalents, beginning of period | 12,752 | 10,808 |
Cash and cash equivalents, end of period | 17,067 | 8,074 |
Supplemental disclosures of cash flow information: | ||
Net cash paid for Interest | 623 | 587 |
Net cash paid (received) for Income tax | 393 | 344 |
Non-cash transactions: | ||
Reduction of fixed maturity securities in connection with a reinsurance transaction | 224 | 0 |
Deconsolidation of operating joint venture (Note 6): | ||
Reduction of fixed maturity securities | 917 | 0 |
Reduction of noncontrolling interests | $ 373 | $ 0 |
Business, Basis of Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
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 on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from estimates. Consolidation The accompanying interim condensed consolidated financial statements include the accounts of MetLife, Inc. and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated. Prior to January 1, 2016, certain international subsidiaries had 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 November 30, 2015 and the operating results of such subsidiaries for the three months and six months ended May 31, 2015. Effective January 1, 2016, the Company converted its Japan operations to calendar year-end reporting. The elimination of a one-month reporting lag of a subsidiary is considered a change in accounting principle and requires retrospective application. While the Company believes that eliminating the lag in the reporting of its Japan operations was preferable in order to consistently reflect events, economic conditions and global trends in the financial statements, the Company determined that it was impracticable to apply the effects of the lag elimination to financial reporting periods prior to January 1, 2015. The effect of not retroactively applying this change in accounting, however, was not material to the 2015 or 2016 consolidated financial statements. Therefore, the Company reported the cumulative effect of the change in accounting principle in net income for the three months ended March 31, 2016 and the six months ended June 30, 2016 and did not retrospectively apply the effects of this change to prior periods. See Note 2 . 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. Reclassifications Certain amounts in the prior year periods’ interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform with the 2016 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, 2015 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, 2015 (the “2015 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 2015 Annual Report. Adoption of New Accounting Pronouncement Effective January 1, 2016, the Company retrospectively adopted new guidance relating to the consolidation of certain entities. The objective of the new standard is to improve targeted areas of the consolidation guidance and to reduce the number of consolidation models. The new consolidation standard provides guidance on how a reporting entity (i) evaluates whether the entity should consolidate limited partnerships and similar entities, (ii) assesses whether the fees paid to a decision maker or service provider are variable interests in a VIE, and (iii) assesses the variable interests in a VIE held by related parties of the reporting entity. The new guidance also eliminates the VIE consolidation model based on majority exposure to variability that applied to certain investment companies and similar entities. The adoption of the new guidance did not impact which entities are consolidated by the Company. The consolidated VIE assets and liabilities and unconsolidated VIE carrying amounts and maximum exposure to loss as of June 30, 2016, disclosed in Note 6 , reflect the application of the new guidance. Future Adoption of New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance on measurement of credit losses on financial instruments (Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments) . The new guidance is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This ASU replaces the incurred loss impairment methodology with one that reflects expected credit losses. The measurement of expected credit losses should be based on historical loss information, current conditions, and reasonable and supportable forecasts. The guidance also requires enhanced disclosures. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In March 2016, the FASB issued new guidance on stock compensation (ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-based Payment Accounting . The new guidance is effective for the fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and requires either a modified retrospective, a retrospective or a prospective transition approach depending upon the type of change. Early adoption is permitted in any interim or annual period. The new guidance changes several aspects of the accounting for share-based payment award transactions, including: (a) income tax consequences when awards vest or are settled; (b) classification of awards as either equity or liabilities due to statutory tax withholding requirements; and (c) classification on the statement of cash flows. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In February 2016, the FASB issued new guidance on leasing transactions (ASU 2016-02, Leases - Topic 842 ). The new guidance is effective for the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and requires a modified retrospective transition approach which includes a number of optional practical expedients. Early adoption is permitted. The new guidance requires a lessee to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current guidance, leases would be classified as finance or operating leases. However, unlike current guidance, the new guidance will require both types of leases to be recognized on the balance sheet. Lessor accounting will remain largely unchanged from current guidance except for certain targeted changes. The new guidance will also require new qualitative and quantitative disclosures. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In January 2016, the FASB issued new guidance (ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities) on the recognition and measurement of financial instruments. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted for the instrument-specific credit risk provision. The new guidance changes the current accounting guidance related to (i) the classification and measurement of certain equity investments, (ii) the presentation of changes in the fair value of financial liabilities measured under the fair value option (“FVO”) that are due to instrument-specific credit risk, and (iii) certain disclosures associated with the fair value of financial instruments. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In May 2015, the FASB issued new guidance on short-duration insurance contracts (ASU 2015-09, Financial Services - Insurance (Topic 944): Disclosures about Short-Duration Contracts ). The amendments in this new guidance are effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. The new guidance should be applied retrospectively by providing comparative disclosures for each period presented, except for those requirements that apply only to the current period. The new guidance requires insurance entities to provide users of financial statements with more transparent information about initial claim estimates and subsequent adjustments to these estimates, including information on: (i) reconciling from the claim development table to the balance sheet liability, (ii) methodologies and judgments in estimating claims, and (iii) the timing, and frequency of claims. The adoption will not have an impact on the Company’s consolidated financial statements other than expanded disclosures in Note 4 . In May 2014, the FASB issued a comprehensive new revenue recognition standard (ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ), effective for fiscal years beginning after December 15, 2016 and interim periods within those years and should be applied retrospectively. In August 2015, the FASB amended the guidance to defer the effective date by one year, effective for the fiscal years beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. 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 | 6 Months Ended |
Jun. 30, 2016 | |
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. On January 12, 2016, MetLife, Inc. announced its plan to pursue the separation of a substantial portion of its Retail segment, which is organized into two U.S. businesses, Life & Other and Annuities, as well as certain portions of its Corporate Benefit Funding segment and Corporate & Other (the “Separation”). Additionally, on July 21, 2016, MetLife, Inc. announced that the separated business will be rebranded as “Brighthouse Financial” after the Separation. The Company is currently evaluating structural alternatives for the proposed Separation, including a public offering of shares in an independent, publicly traded company, a spin-off, or a sale. The completion of a public offering would depend on, among other things, the U.S. Securities and Exchange Commission (“SEC”) filing and review process, as well as market conditions. A Separation, depending on the specific form, would be subject to the satisfaction of various conditions and approvals, including, among other things, approval of any transaction by the MetLife, Inc. Board of Directors, satisfaction of any applicable requirements of the SEC, and receipt of insurance and other regulatory approvals and other anticipated conditions. See Note 14 . 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 U.S. 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, fixed and indexed 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, vision 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 contracts 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 nonqualified 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 net income (loss). The Company believes the presentation of operating earnings as the Company measures it for management purposes enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business. Operating earnings is defined as operating revenues less operating expenses, both net of income tax. Operating revenues and operating expenses exclude results of discontinued operations and other businesses that have been or will be sold or exited by MetLife and are referred to as divested businesses. In addition, for the three months ended March 31, 2016 and the six months ended June 30, 2016 , operating revenues and operating expenses exclude the financial impact of converting the Company’s Japan operations to calendar year-end reporting without retrospective application of this change to prior periods and is referred to as lag elimination. 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 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 investment hedge adjustments which represent earned income on derivatives and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment, (ii) 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 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 earned income on derivatives and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment and excludes amounts related to net investment income earned on contractholder-directed unit-linked investments; • Amortization of deferred policy acquisition costs (“DAC”) 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, integration and other 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. 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 and six months ended June 30, 2016 and 2015 . 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 net income (loss). Net investment income is based upon the actual results of each segment’s specifically identifiable investment portfolios adjusted for allocated equity. Other costs are allocated to each of the segments based upon: (i) a review of the nature of such costs; (ii) time studies analyzing the amount of employee compensation costs incurred by each segment; and (iii) cost estimates included in the Company’s product pricing. Operating Results Americas Three Months Ended June 30, 2016 Retail Group, Voluntary & Worksite Benefits Corporate Benefit Funding Latin America Total Asia EMEA Corporate & Other Total Adjustments Total Consolidated (In millions) Revenues Premiums $ 1,695 $ 4,276 $ 517 $ 716 $ 7,204 $ 1,681 $ 519 $ 13 $ 9,417 $ — $ 9,417 Universal life and investment-type product policy fees 1,156 197 61 269 1,683 370 95 25 2,173 113 2,286 Net investment income 1,950 458 1,421 247 4,076 678 83 44 4,881 6 4,887 Other revenues 224 117 72 9 422 16 19 27 484 3 487 Net investment gains (losses) — — — — — — — — — 266 266 Net derivative gains (losses) — — — — — — — — — (2,099 ) (2,099 ) Total revenues 5,025 5,048 2,071 1,241 13,385 2,745 716 109 16,955 (1,711 ) 15,244 Expenses Policyholder benefits and claims and policyholder dividends 2,937 3,990 1,181 645 8,753 1,324 283 25 10,385 213 10,598 Interest credited to policyholder account balances 525 37 313 84 959 324 30 1 1,314 186 1,500 Capitalization of DAC (245 ) (39 ) (1 ) (96 ) (381 ) (426 ) (106 ) (2 ) (915 ) — (915 ) Amortization of DAC and VOBA 487 39 4 75 605 304 103 3 1,015 (894 ) 121 Amortization of negative VOBA — — — — — (57 ) (4 ) — (61 ) (6 ) (67 ) Interest expense on debt 1 1 2 — 4 — — 299 303 3 306 Other expenses 1,124 685 109 373 2,291 877 336 155 3,659 142 3,801 Total expenses 4,829 4,713 1,608 1,081 12,231 2,346 642 481 15,700 (356 ) 15,344 Provision for income tax expense (benefit) 12 114 161 32 319 140 10 (184 ) 285 (499 ) (214 ) Operating earnings $ 184 $ 221 $ 302 $ 128 $ 835 $ 259 $ 64 $ (188 ) 970 Adjustments to: Total revenues (1,711 ) Total expenses 356 Provision for income tax (expense) benefit 499 Net income (loss) $ 114 $ 114 Operating Results Americas Three Months Ended June 30, 2015 Retail Group, Voluntary & Worksite Benefits Corporate Benefit Funding Latin America Total Asia EMEA Corporate & Other Total Adjustments Total Consolidated (In millions) Revenues Premiums $ 1,747 $ 4,104 $ 319 $ 783 $ 6,953 $ 1,809 $ 525 $ 26 $ 9,313 $ (1 ) $ 9,312 Universal life and investment-type product policy fees 1,252 183 59 301 1,795 400 114 26 2,335 99 2,434 Net investment income 2,003 481 1,526 283 4,293 679 84 129 5,185 (238 ) 4,947 Other revenues 263 114 77 7 461 28 19 19 527 (9 ) 518 Net investment gains (losses) — — — — — — — — — (133 ) (133 ) Net derivative gains (losses) — — — — — — — — — (912 ) (912 ) Total revenues 5,265 4,882 1,981 1,374 13,502 2,916 742 200 17,360 (1,194 ) 16,166 Expenses Policyholder benefits and claims and policyholder dividends 2,373 3,805 933 744 7,855 1,375 265 8 9,503 180 9,683 Interest credited to policyholder account balances 551 38 294 89 972 328 34 8 1,342 (44 ) 1,298 Capitalization of DAC (257 ) (36 ) (4 ) (100 ) (397 ) (398 ) (132 ) — (927 ) — (927 ) Amortization of DAC and VOBA 400 39 6 86 531 336 133 1 1,001 (104 ) 897 Amortization of negative VOBA — — — (1 ) (1 ) (78 ) (4 ) — (83 ) (9 ) (92 ) Interest expense on debt — — 1 — 1 — — 306 307 1 308 Other expenses 1,220 681 130 419 2,450 869 389 174 3,882 4 3,886 Total expenses 4,287 4,527 1,360 1,237 11,411 2,432 685 497 15,025 28 15,053 Provision for income tax expense (benefit) 288 124 215 21 648 59 7 (175 ) 539 (545 ) (6 ) Operating earnings $ 690 $ 231 $ 406 $ 116 $ 1,443 $ 425 $ 50 $ (122 ) 1,796 Adjustments to: Total revenues (1,194 ) Total expenses (28 ) Provision for income tax (expense) benefit 545 Net income (loss) $ 1,119 $ 1,119 Operating Results Americas Six Months Ended June 30, 2016 Retail Group, Corporate Latin Total Asia EMEA Corporate Total Adjustments Total (In millions) Revenues Premiums $ 3,435 $ 8,570 $ 875 $ 1,407 $ 14,287 $ 3,339 $ 1,019 $ 39 $ 18,684 $ 426 $ 19,110 Universal life and investment-type product policy fees 2,305 382 141 537 3,365 720 190 49 4,324 306 4,630 Net investment income 3,830 905 2,763 504 8,002 1,296 163 126 9,587 (141 ) 9,446 Other revenues 439 248 142 16 845 33 39 54 971 3 974 Net investment gains (losses) — — — — — — — — — 281 281 Net derivative gains (losses) — — — — — — — — — (764 ) (764 ) Total revenues 10,009 10,105 3,921 2,464 26,499 5,388 1,411 268 33,566 111 33,677 Expenses Policyholder benefits and claims and policyholder dividends 5,395 8,024 2,143 1,262 16,824 2,560 544 50 19,978 613 20,591 Interest credited to policyholder account balances 1,047 74 623 164 1,908 643 59 5 2,615 211 2,826 Capitalization of DAC (500 ) (75 ) (1 ) (193 ) (769 ) (811 ) (207 ) (4 ) (1,791 ) (105 ) (1,896 ) Amortization of DAC and VOBA 860 79 9 148 1,096 590 205 5 1,896 (780 ) 1,116 Amortization of negative VOBA — — — — — (121 ) (7 ) — (128 ) (38 ) (166 ) Interest expense on debt 3 1 4 — 8 — — 607 615 3 618 Other expenses 2,273 1,397 229 744 4,643 1,728 669 329 7,369 397 7,766 Total expenses 9,078 9,500 3,007 2,125 23,710 4,589 1,263 992 30,554 301 30,855 Provision for income tax expense (benefit) 215 210 317 74 816 235 21 (365 ) 707 (202 ) 505 Operating earnings $ 716 $ 395 $ 597 $ 265 $ 1,973 $ 564 $ 127 $ (359 ) 2,305 Adjustments to: Total revenues 111 Total expenses (301 ) Provision for income tax (expense) benefit 202 Net income (loss) $ 2,317 $ 2,317 Operating Results Americas Six Months Ended June 30, 2015 Retail Group, Corporate Latin Total Asia EMEA Corporate Total Adjustments Total (In millions) Revenues Premiums $ 3,496 $ 8,221 $ 737 $ 1,482 $ 13,936 $ 3,561 $ 1,033 $ 36 $ 18,566 $ (1 ) $ 18,565 Universal life and investment-type product policy fees 2,488 371 113 595 3,567 797 216 49 4,629 199 4,828 Net investment income 3,983 959 2,956 501 8,399 1,363 167 238 10,167 241 10,408 Other revenues 514 227 148 17 906 56 29 39 1,030 (17 ) 1,013 Net investment gains (losses) — — — — — — — — — 153 153 Net derivative gains (losses) — — — — — — — — — (91 ) (91 ) Total revenues 10,481 9,778 3,954 2,595 26,808 5,777 1,445 362 34,392 484 34,876 Expenses Policyholder benefits and claims and policyholder dividends 4,822 7,640 1,924 1,325 15,711 2,715 504 20 18,950 329 19,279 Interest credited to policyholder account balances 1,093 75 587 175 1,930 665 64 14 2,673 620 3,293 Capitalization of DAC (504 ) (72 ) (10 ) (211 ) (797 ) (833 ) (265 ) — (1,895 ) — (1,895 ) Amortization of DAC and VOBA 775 80 11 164 1,030 662 261 1 1,954 (32 ) 1,922 Amortization of negative VOBA — — — (1 ) (1 ) (164 ) (8 ) — (173 ) (19 ) (192 ) Interest expense on debt (1 ) — 2 — 1 — — 603 604 2 606 Other expenses 2,396 1,345 254 844 4,839 1,773 751 319 7,682 9 7,691 Total expenses 8,581 9,068 2,768 2,296 22,713 4,818 1,307 957 29,795 909 30,704 Provision for income tax expense (benefit) 557 251 411 52 1,271 207 18 (363 ) 1,133 (243 ) 890 Operating earnings $ 1,343 $ 459 $ 775 $ 247 $ 2,824 $ 752 $ 120 $ (232 ) 3,464 Adjustments to: Total revenues 484 Total expenses (909 ) Provision for income tax (expense) benefit 243 Net income (loss) $ 3,282 $ 3,282 The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at: June 30, 2016 December 31, 2015 (In millions) Retail $ 364,611 $ 347,257 Group, Voluntary & Worksite Benefits 51,721 46,476 Corporate Benefit Funding 236,311 225,015 Latin America 68,971 65,266 Asia 131,537 113,895 EMEA 27,007 26,767 Corporate & Other 62,409 53,257 Total $ 942,567 $ 877,933 |
Disposition
Disposition | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | 3. Disposition In July 2016, MetLife, Inc. completed the sale to Massachusetts Mutual Life Insurance Company (“MassMutual”) of MetLife’s U.S. Retail advisor force and certain assets associated with the MetLife Premier Client Group, including all of the issued and outstanding shares of MetLife’s affiliated broker-dealer, MetLife Securities, Inc. (“MSI”), a wholly-owned subsidiary of MetLife, Inc. (collectively, the “U.S. Retail Advisor Force Divestiture”) for $280 million . MassMutual assumed all of the liabilities related to such assets and that arise or occur after the closing of the sale. The Company expects to record a gain of approximately $45 million , net of income tax, in the third quarter of 2016. Offsetting the gain will be certain charges that were recorded during the three months and six months ended June 30, 2016. See Notes 8 and 11 . |
Insurance
Insurance | 6 Months Ended |
Jun. 30, 2016 | |
Insurance [Abstract] | |
Insurance | 4. Insurance Guarantees As discussed in Notes 1 and 4 of the Notes to the Consolidated Financial Statements included in the 2015 Annual Report, the Company issues directly and assumes through reinsurance variable annuity products with guaranteed minimum benefits. Guaranteed minimum accumulation benefits (“GMABs”) and the portions of both non-life-contingent guaranteed minimum withdrawal benefits (“GMWBs”) and the GMIBs that do not require annuitization are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 7 . The Company also issues other annuity contracts that apply a lower rate on funds deposited if the contractholder elects to surrender the contract for cash and a higher rate if the contractholder elects to annuitize. These guarantees include benefits that are payable in the event of death, maturity or at annuitization. Certain other annuity contracts contain guaranteed annuitization benefits that may be above what would be provided by the current account value of the contract. Additionally, the Company issues universal and variable life contracts where the Company contractually guarantees to the contractholder a secondary guarantee or a guaranteed paid-up benefit. Information regarding the Company’s guarantee exposure, which includes direct and assumed business, but excludes offsets from hedging or ceded reinsurance, if any, was as follows at: June 30, 2016 December 31, 2015 In the Event of Death At Annuitization In the Event of Death At Annuitization (Dollars in millions) Annuity Contracts (1): Variable Annuity Guarantees: Total account value (2), (3) $ 180,789 $ 91,042 $ 181,413 $ 91,240 Separate account value $ 151,174 $ 87,414 $ 151,901 $ 87,841 Net amount at risk (2) $ 9,916 (4 ) $ 4,150 (5 ) $ 10,339 (4 ) $ 2,762 (5 ) Average attained age of contractholders 66 years 66 years 66 years 66 years Other Annuity Guarantees: Total account value (3) N/A $ 1,514 N/A $ 1,560 Net amount at risk N/A $ 401 (6 ) N/A $ 422 (6 ) Average attained age of contractholders N/A 51 years N/A 51 years June 30, 2016 December 31, 2015 Secondary Guarantees Paid-Up Guarantees Secondary Guarantees Paid-Up Guarantees (Dollars in millions) Universal and Variable Life Contracts (1): Total account value (3) $ 17,273 $ 3,408 $ 17,211 $ 3,461 Net amount at risk (7) $ 175,990 $ 18,514 $ 175,958 $ 19,047 Average attained age of policyholders 57 years 62 years 57 years 62 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. (3) Includes the contractholder’s investments in the general account and separate account, if applicable. (4) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. (5) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved. (6) Defined as either the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date or the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. These amounts represent the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date. (7) Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date. |
Closed Block
Closed Block | 6 Months Ended |
Jun. 30, 2016 | |
Closed Block Disclosure [Abstract] | |
Closed Block | 5. Closed Block On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company (“MLIC”) converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance approving MLIC’s plan of reorganization, as amended (the “Plan of Reorganization”). On the Demutualization Date, MLIC established a closed block for the benefit of holders of certain individual life insurance policies of MLIC. Experience within the closed block, in particular mortality and investment yields, as well as realized and unrealized gains and losses, directly impact the policyholder dividend obligation. Amortization of the closed block DAC, which resides outside of the closed block, is based upon cumulative actual and expected earnings within the closed block. Accordingly, the Company’s net income continues to be sensitive to the actual performance of the closed block. Closed block assets, liabilities, revenues and expenses are combined on a line-by-line basis with the assets, liabilities, revenues and expenses outside the closed block based on the nature of the particular item. Information regarding the closed block liabilities and assets designated to the closed block was as follows at: June 30, 2016 December 31, 2015 (In millions) Closed Block Liabilities Future policy benefits $ 40,976 $ 41,278 Other policy-related balances 240 249 Policyholder dividends payable 491 468 Policyholder dividend obligation 3,343 1,783 Other liabilities 726 380 Total closed block liabilities 45,776 44,158 Assets Designated to the Closed Block Investments: Fixed maturity securities available-for-sale, at estimated fair value 29,404 27,556 Equity securities available-for-sale, at estimated fair value 110 111 Mortgage loans 5,825 6,022 Policy loans 4,558 4,642 Real estate and real estate joint ventures 566 462 Other invested assets 1,106 1,066 Total investments 41,569 39,859 Cash and cash equivalents 220 236 Accrued investment income 463 474 Premiums, reinsurance and other receivables 51 56 Current income tax recoverable — 11 Deferred income tax assets 200 234 Total assets designated to the closed block 42,503 40,870 Excess of closed block liabilities over assets designated to the closed block 3,273 3,288 Amounts included in accumulated other comprehensive income (loss) (“AOCI”) Unrealized investment gains (losses), net of income tax 2,435 1,382 Unrealized gains (losses) on derivatives, net of income tax 100 76 Allocated to policyholder dividend obligation, net of income tax (2,173 ) (1,159 ) Total amounts included in AOCI 362 299 Maximum future earnings to be recognized from closed block assets and liabilities $ 3,635 $ 3,587 Information regarding the closed block policyholder dividend obligation was as follows: Six Months Year (In millions) Balance, beginning of period $ 1,783 $ 3,155 Change in unrealized investment and derivative gains (losses) 1,560 (1,372 ) Balance, end of period $ 3,343 $ 1,783 Information regarding the closed block revenues and expenses was as follows: Three Months Six Months 2016 2015 2016 2015 (In millions) Revenues Premiums $ 444 $ 457 $ 861 $ 887 Net investment income 469 498 949 1,013 Net investment gains (losses) 12 2 (16 ) 1 Net derivative gains (losses) 4 (13 ) (7 ) 12 Total revenues 929 944 1,787 1,913 Expenses Policyholder benefits and claims 632 643 1,242 1,251 Policyholder dividends 246 244 491 484 Other expenses 35 36 67 73 Total expenses 913 923 1,800 1,808 Revenues, net of expenses before provision for income tax expense (benefit) 16 21 (13 ) 105 Provision for income tax expense (benefit) 6 8 (5 ) 37 Revenues, net of expenses and provision for income tax expense (benefit) $ 10 $ 13 $ (8 ) $ 68 MLIC charges the closed block with federal income taxes, state and local premium taxes and other state or local taxes, as well as investment management expenses relating to the closed block as provided in the Plan of Reorganization. MLIC also charges the closed block for expenses of maintaining the policies included in the closed block. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
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”) (collectively, “Structured Securities”). June 30, 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 $ 95,218 $ 10,302 $ 905 $ — $ 104,615 $ 96,466 $ 6,583 $ 2,255 $ — $ 100,794 U.S. government and agency 59,591 10,167 21 — 69,737 56,499 5,373 226 — 61,646 Foreign corporate 56,813 3,865 1,466 — 59,212 56,003 3,019 1,822 2 57,198 Foreign government 52,293 10,113 145 — 62,261 45,451 5,269 221 — 50,499 RMBS 43,223 1,790 364 51 44,598 37,914 1,366 424 59 38,797 State and political subdivision 14,403 3,024 11 6 17,410 13,723 1,795 67 10 15,441 ABS 16,689 141 309 3 16,518 14,498 131 229 6 14,394 CMBS (1) 12,591 660 95 (1 ) 13,157 12,410 347 125 (1 ) 12,633 Total fixed maturity securities $ 350,821 $ 40,062 $ 3,316 $ 59 $ 387,508 $ 332,964 $ 23,883 $ 5,369 $ 76 $ 351,402 Equity securities: Common stock $ 2,013 $ 431 $ 18 $ — $ 2,426 $ 1,962 $ 397 $ 107 $ — $ 2,252 Non-redeemable preferred stock 901 70 64 — 907 1,035 85 51 — 1,069 Total equity securities $ 2,914 $ 501 $ 82 $ — $ 3,333 $ 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 June 30, 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 $115 million and $54 million with unrealized gains (losses) of $6 million and $12 million at June 30, 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 June 30, 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 $ 13,404 $ 80,755 $ 69,842 $ 114,317 $ 72,503 $ 350,821 Estimated fair value $ 13,499 $ 85,064 $ 74,476 $ 140,196 $ 74,273 $ 387,508 Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity. Continuous Gross Unrealized Losses for Fixed Maturity 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. June 30, 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 (Dollars in millions) Fixed maturity securities: U.S. corporate $ 7,932 $ 394 $ 5,581 $ 511 $ 27,526 $ 1,629 $ 3,762 $ 626 U.S. government and agency 1,026 3 164 18 19,628 222 298 4 Foreign corporate 8,135 585 6,477 881 14,447 911 5,251 913 Foreign government 1,298 83 807 62 3,530 166 429 55 RMBS 5,221 183 3,033 232 13,467 287 2,431 196 State and political subdivision 172 3 89 14 1,618 55 168 22 ABS 5,136 176 4,555 136 7,329 124 2,823 111 CMBS 900 45 982 49 4,876 81 637 43 Total fixed maturity securities $ 29,820 $ 1,472 $ 21,688 $ 1,903 $ 92,421 $ 3,475 $ 15,799 $ 1,970 Equity securities: Common stock $ 114 $ 18 $ 7 $ — $ 203 $ 105 $ 20 $ 2 Non-redeemable preferred stock 50 6 168 58 79 2 200 49 Total equity securities $ 164 $ 24 $ 175 $ 58 $ 282 $ 107 $ 220 $ 51 Total number of securities in an unrealized loss position 2,783 1,965 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 June 30, 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 $2.0 billion during the six months ended June 30, 2016 to $3.4 billion . The decrease in gross unrealized losses for the six months ended June 30, 2016 was primarily attributable to a decrease in interest rates and, to a lesser extent, narrowing credit spreads and the impact of strengthening foreign currencies on non-functional currency denominated fixed maturity securities. At June 30, 2016 , $418 million of the total $3.4 billion of gross unrealized losses were from 129 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 $418 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, $228 million , or 55% , were related to gross unrealized losses on 60 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 $418 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, $190 million , or 45% , were related to gross unrealized losses on 69 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 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. 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. Equity Securities Gross unrealized losses on equity securities decreased $76 million during the six months ended June 30, 2016 to $82 million . Of the $82 million , $49 million were from seven securities with gross unrealized losses of 20% or more of cost for 12 months or greater. Of the $49 million , 63% 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: June 30, 2016 December 31, 2015 Carrying Value % of Total Carrying Value % of Total (Dollars in millions) Mortgage loans: Commercial $ 45,165 65.1 % $ 44,012 65.6 % Agricultural 13,434 19.4 13,188 19.6 Residential 10,659 15.4 9,734 14.5 Subtotal (1) 69,258 99.9 66,934 99.7 Valuation allowances (467 ) (0.7 ) (318 ) (0.5 ) Subtotal mortgage loans, net 68,791 99.2 66,616 99.2 Residential — FVO 449 0.6 314 0.5 Commercial mortgage loans held by CSEs — FVO 159 0.2 172 0.3 Total mortgage loans, net $ 69,399 100.0 % $ 67,102 100.0 % __________________ (1) Purchases of mortgage loans were $1.2 billion and $1.4 billion for the three months and six months ended June 30, 2016 , respectively, and $785 million and $2.2 billion for the three months and six months ended June 30, 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) June 30, 2016 Commercial $ 176 $ 157 $ 143 $ 12 $ 12 $ 44,996 $ 224 $ 26 Agricultural 16 13 1 39 38 13,383 40 50 Residential — — — 205 189 10,470 59 189 Total $ 192 $ 170 $ 144 $ 256 $ 239 $ 68,849 $ 323 $ 265 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 $184 million , $52 million and $175 million , respectively, for the three months ended June 30, 2016 ; and $142 million , $57 million and $160 million , respectively, for the six months ended June 30, 2016 . The average recorded investment for impaired commercial, agricultural and residential mortgage loans was $160 million , $64 million and $70 million , respectively, for the three months ended June 30, 2015 ; and $165 million , $63 million and $59 million , respectively, for the six months ended June 30, 2015 . Valuation Allowance Rollforward by Portfolio Segment The changes in the valuation allowance, by portfolio segment, were as follows: Six 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) 150 1 7 158 4 2 23 29 Charge-offs, net of recoveries — (2 ) (7 ) (9 ) — — (9 ) (9 ) Balance, end of period $ 367 $ 41 $ 59 $ 467 $ 228 $ 41 $ 56 $ 325 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 (Dollars in millions) June 30, 2016 Loan-to-value ratios: Less than 65% $ 39,346 $ 1,095 $ 670 $ 41,111 91.0 % $ 43,055 91.6 % 65% to 75% 3,330 76 171 3,577 7.9 3,627 7.7 76% to 80% 26 — 2 28 0.1 25 0.1 Greater than 80% 384 53 12 449 1.0 295 0.6 Total $ 43,086 $ 1,224 $ 855 $ 45,165 100 % $ 47,002 100 % 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: June 30, 2016 December 31, 2015 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Loan-to-value ratios: Less than 65% $ 12,711 94.6 % $ 12,399 94.0 % 65% to 75% 656 4.9 710 5.4 76% to 80% 20 0.1 21 0.2 Greater than 80% 47 0.4 58 0.4 Total $ 13,434 100.0 % $ 13,188 100.0 % The estimated fair value of agricultural mortgage loans was $13.9 billion and $13.5 billion at June 30, 2016 and December 31, 2015 , respectively. Credit Quality of Residential Mortgage Loans The credit quality of residential mortgage loans was as follows at: June 30, 2016 December 31, 2015 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Performance indicators: Performing $ 10,326 96.9 % $ 9,408 96.7 % Nonperforming 333 3.1 326 3.3 Total $ 10,659 100.0 % $ 9,734 100.0 % The estimated fair value of residential mortgage loans was $11.0 billion and $9.9 billion at June 30, 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 June 30, 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 June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 (In millions) Commercial $ — $ 2 $ — $ — Agricultural 118 103 39 46 Residential 333 326 320 318 Total $ 451 $ 431 $ 359 $ 364 Mortgage Loans Modified in a Troubled Debt Restructuring During both the three months and six months ended June 30, 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 $7.9 billion and $7.5 billion at June 30, 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: June 30, 2016 December 31, 2015 (In millions) Fixed maturity securities $ 36,633 $ 18,164 Fixed maturity securities with noncredit OTTI losses included in AOCI (59 ) (76 ) Total fixed maturity securities 36,574 18,088 Equity securities 558 422 Derivatives 3,766 2,350 Other 333 287 Subtotal 41,231 21,147 Amounts allocated from: Future policy benefits (4,410 ) (163 ) DAC and VOBA related to noncredit OTTI losses recognized in AOCI (2 ) — DAC, VOBA and DSI (2,380 ) (1,273 ) Policyholder dividend obligation (3,343 ) (1,783 ) Subtotal (10,135 ) (3,219 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI 23 27 Deferred income tax benefit (expense) (10,473 ) (6,151 ) Net unrealized investment gains (losses) 20,646 11,804 Net unrealized investment gains (losses) attributable to noncontrolling interests (11 ) (31 ) Net unrealized investment gains (losses) attributable to MetLife, Inc. $ 20,635 $ 11,773 The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows: Six Months Year (In millions) Balance, beginning of period $ (76 ) $ (112 ) Noncredit OTTI losses and subsequent changes recognized 6 6 Securities sold with previous noncredit OTTI loss 23 125 Subsequent changes in estimated fair value (12 ) (95 ) Balance, end of period $ (59 ) $ (76 ) The changes in net unrealized investment gains (losses) were as follows: Six Months (In millions) Balance, beginning of period $ 11,773 Fixed maturity securities on which noncredit OTTI losses have been recognized 17 Unrealized investment gains (losses) during the period 20,067 Unrealized investment gains (losses) relating to: Future policy benefits (4,247 ) DAC and VOBA related to noncredit OTTI losses recognized in AOCI (2 ) DAC, VOBA and DSI (1,107 ) Policyholder dividend obligation (1,560 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI (4 ) Deferred income tax benefit (expense) (4,322 ) Net unrealized investment gains (losses) 20,615 Net unrealized investment gains (losses) attributable to noncontrolling interests 20 Balance, end of period $ 20,635 Change in net unrealized investment gains (losses) $ 8,842 Change in net unrealized investment gains (losses) attributable to noncontrolling interests 20 Change in net unrealized investment gains (losses) attributable to MetLife, Inc. $ 8,862 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 $29.0 billion and $20.9 billion at June 30, 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 $33.5 billion and $25.4 billion at June 30, 2016 and December 31, 2015 , respectively. Securities Lending Elements of the securities lending program are presented below at: June 30, 2016 December 31, 2015 (In millions) Securities on loan: (1) Amortized cost $ 26,471 $ 27,223 Estimated fair value $ 31,392 $ 29,646 Cash collateral on deposit from counterparties (2) $ 32,006 $ 30,197 Security collateral on deposit from counterparties (3) $ 198 $ 50 Reinvestment portfolio — estimated fair value $ 32,330 $ 30,258 __________________ (1) Included within fixed maturity securities, short-term investments and cash equivalents. At June 30, 2016 , both amortized cost and estimated fair value also included $106 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: June 30, 2016 Remaining Tenor of Securities Lending Agreements Open (1) 1 Month or Less 1 to 6 Months Total % of Total (Dollars in millions) Cash collateral liability by loaned security type: U.S. government and agency $ 8,379 $ 9,517 $ 11,514 $ 29,410 91.9 % Agency RMBS — — 1,265 1,265 4.0 Foreign government — 911 — 911 2.8 U.S. corporate 7 401 — 408 1.3 Foreign corporate — 12 — 12 — Total $ 8,386 $ 10,841 $ 12,779 $ 32,006 100 % December 31, 2015 Remaining Tenor of Securities Lending Agreements Open (1) 1 Month or Less 1 to 6 Months Total % of Total (Dollars 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 June 30, 2016 was $8.2 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, short-term investments and U.S. corporate securities) with 65% 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 $320 million and $308 million , respectively, at June 30, 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 $106 million , at estimated fair value, at June 30, 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 June 30, 2016 were both $300 million . After the effect of offsetting of $300 million , the net amount presented on the consolidated balance sheet at June 30, 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 June 30, 2016 , all $300 million of payables from repurchase agreements had a remaining tenor of one to six months 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: June 30, 2016 December 31, 2015 (In millions) Invested assets on deposit (regulatory deposits) $ 10,353 $ 9,089 Invested assets held in trust (collateral financing arrangements and reinsurance agreements) 11,767 10,443 Invested assets pledged as collateral (1) 28,606 23,145 Total invested assets on deposit, held in trust and pledged as collateral $ 50,726 $ 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 June 30, 2016 and December 31, 2015 . June 30, 2016 December 31, 2015 Total Assets Total Liabilities Total Assets Total Liabilities (In millions) MRSC (collateral financing arrangement (primarily securities)) (1) $ 3,559 $ — $ 3,374 $ — Operating joint venture (2) — — 2,465 2,079 CSEs (assets (primarily loans) and liabilities (primarily debt)) (3) 172 47 186 62 Other investments (4) 67 — 76 — Total $ 3,798 $ 47 $ 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 $106 million and $105 million at estimated fair value at June 30, 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 $2 million and $3 million for the three months and six months ended June 30, 2016 , respectively, and $1 million and $2 million for the three months and six months ended June 30, 2015 , respectively. (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: June 30, 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 (2) $ 74,273 $ 74,273 $ 65,824 $ 65,824 U.S. and foreign corporate 3,173 3,173 3,261 3,261 Other limited partnership interests 6,267 10,470 5,186 7,074 Other invested assets 2,131 2,747 1,604 2,161 FVO and trading securities 546 546 586 586 Real estate joint ventures 118 148 65 82 Other (3) 117 117 71 71 Total $ 86,625 $ 91,474 $ 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 $162 million and $179 million at June 30, 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 is comprised of mortgage loans, non-redeemable preferred stock and a loan receivable. 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 six months ended June 30, 2016 and 2015 . Net Investment Income The components of net investment income were as follows: Three Months Six Months 2016 2015 2016 2015 (In millions) Investment income: Fixed maturity securities $ 3,564 $ 3,672 $ 7,218 $ 7,213 Equity securities 33 35 70 66 FVO and trading securities — Actively traded and FVO general account securities (1) 10 2 16 39 Mortgage loans 851 801 1,658 1,531 Policy loans 147 151 296 303 Real estate and real estate joint ventures 149 323 306 534 Other limited partnership interests 120 250 166 465 Cash, cash equivalents and short-term investments 43 37 83 72 Operating joint ventures 11 8 23 16 Other 51 30 92 152 Subtotal 4,979 5,309 9,928 10,391 Less: Investment expenses 285 313 581 615 Subtotal, net 4,694 4,996 9,347 9,776 FVO and trading securities — FVO contractholder-directed unit-linked investments (1) 191 (55 ) 94 622 FVO CSEs — interest income: Commercial mortgage loans 2 5 5 9 Securities — 1 — 1 Subtotal 193 (49 ) 99 632 Net investment income $ 4,887 $ 4,947 $ 9,446 $ 10,408 __________________ (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 Si |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 7. Derivatives Accounting for Derivatives Freestanding Derivatives Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the 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 estimated fair value of the hedged item attributable to the designated risk being hedged. • Cash flow hedge (a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability) - effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses). • Net investment in a foreign operation hedge - effectiveness in OCI, consistent with the translation adjustment for the hedged net investment in the foreign operation; ineffectiveness in net derivative gains (losses). The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. Accruals on derivatives in net investment hedges are recognized in OCI. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness and measurements of ineffectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in net derivative gains (losses). In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). Embedded Derivatives The Company sells variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: • the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings; • the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and • a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses), 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 8 for information about the fair value hierarchy for derivatives. Derivative Strategies The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. The Company uses a variety of strategies to manage these risks, including the use of derivatives. Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps and structured interest rate swaps to synthetically replicate investment risks and returns which are not readily available in the cash 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, interest rate total return swaps, caps, floors, swaptions, futures and forwards. Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). In an interest rate swap, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. The Company utilizes interest rate swaps in fair value, cash flow and nonqualifying hedging relationships. The Company uses structured interest rate swaps to synthetically create investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and a cash instrument such as a U.S. government and agency, or other fixed maturity security. Structured interest rate swaps are included in interest rate swaps and are not designated as hedging instruments. Interest rate total return swaps are swaps whereby the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and the London Interbank Offered Rate (“LIBOR”), calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by the counterparty at each due date. Interest rate total return swaps are used by the Company to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). The Company utilizes interest rate total return swaps in nonqualifying hedging relationships. The Company purchases interest rate caps 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 nonqualifying hedging relationships. In exchange-traded interest rate (Treasury and swap) futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of interest rate securities, 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 nonqualifying hedging relationships. Swaptions are used by the Company to hedge interest rate risk associated with the Company’s long-term liabilities and invested assets. A swaption is an option to enter into a swap with a forward starting effective date. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. The Company utilizes swaptions in nonqualifying hedging relationships. Swaptions are included in interest rate options. The Company enters into interest rate forwards to buy and sell securities. The price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. The Company utilizes interest rate forwards in cash flow and nonqualifying hedging relationships. Foreign Currency Exchange Rate Derivatives The Company uses foreign currency exchange rate derivatives, including foreign currency swaps, foreign currency forwards, currency options and exchange-traded currency futures, to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies. The Company also uses foreign currency derivatives to hedge the foreign currency exchange rate risk associated with certain of its net investments in foreign operations. In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in fair value, cash flow and nonqualifying hedging relationships. In a foreign currency forward transaction, the Company agrees with another party to deliver a specified amount of an identified currency at a specified future date. The price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company utilizes foreign currency forwards in fair value, net investment in foreign operations and nonqualifying hedging relationships. The Company enters into currency options that give it the right, but not the obligation, to sell the foreign currency amount in exchange for a functional currency amount within a limited time at a contracted price. The contracts may also be net settled in cash, based on differentials in the foreign currency exchange rate and the strike price. The Company uses currency options to hedge against the foreign currency exposure inherent in certain of its variable annuity products. The Company also uses currency options as an economic hedge of foreign currency exposure related to the Company’s international subsidiaries. The Company utilizes currency options in net investment in foreign operations and nonqualifying hedging relationships. To a lesser extent, the Company uses exchange-traded currency futures to hedge currency mismatches between assets and liabilities, and to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded currency futures in nonqualifying hedging relationships. Credit Derivatives The Company enters into purchased credit default swaps to hedge against credit-related changes in the value of its investments. In a credit default swap transaction, the Company agrees with another party to pay, at specified intervals, a premium to hedge credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the delivery of par quantities of the referenced investment equal to the specified swap notional amount in exchange for the payment of cash amounts by the counterparty equal to the par value of the investment surrendered. Credit events vary by type of issuer but typically include bankruptcy, failure to pay debt obligations, 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 nonqualifying hedging relationships. The Company enters into written credit default swaps to synthetically create credit investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and one or more cash instruments, such as U.S. government and agency securities, or other fixed maturity securities. These credit default swaps are not designated as hedging instruments. The Company 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 equity total return swaps. Equity index options are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. To hedge against adverse changes in equity indices, the Company enters into contracts to sell the equity index within a limited time at a contracted price. The contracts will be net settled in cash based on differentials in the indices at the time of exercise and the strike price. Certain of these contracts may also contain settlement provisions linked to interest rates. In certain instances, the Company may enter into a combination of transactions to hedge adverse changes in equity indices within a pre-determined range through the purchase and sale of options. The Company utilizes equity index options in nonqualifying hedging relationships. Equity variance swaps are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. In an equity variance swap, the Company agrees with another party to exchange amounts in the future, based on changes in equity volatility over a defined period. The Company utilizes equity variance swaps in nonqualifying hedging relationships. In exchange-traded equity futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of equity securities, 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 nonqualifying hedging relationships. In an equity total return swap, the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and LIBOR, calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. The Company uses equity total return swaps to hedge its equity market guarantees in certain of its insurance products. Equity total return swaps can be used as hedges or to synthetically create investments. The Company utilizes equity total return swaps in nonqualifying hedging relationships. Primary Risks Managed by Derivatives The following table presents the gross notional amount, estimated fair value and primary underlying risk exposure of the Company’s derivatives, excluding embedded derivatives, held at: June 30, 2016 December 31, 2015 Primary Underlying Risk Exposure Gross Estimated Fair Value Gross Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments: Fair value hedges: Interest rate swaps Interest rate $ 5,435 $ 2,831 $ 20 $ 5,528 $ 2,215 $ 12 Foreign currency swaps Foreign currency exchange rate 1,221 26 155 2,154 62 159 Foreign currency forwards Foreign currency exchange rate 1,485 186 — 1,685 — 52 Subtotal 8,141 3,043 175 9,367 2,277 223 Cash flow hedges: Interest rate swaps Interest rate 2,332 695 — 2,190 487 — Interest rate forwards Interest rate 1,610 56 2 105 23 — Foreign currency swaps Foreign currency exchange rate 26,256 2,326 1,767 23,661 1,303 1,803 Subtotal 30,198 3,077 1,769 25,956 1,813 1,803 Foreign operations hedges: Foreign currency forwards Foreign currency exchange rate 1,466 4 61 3,916 63 12 Currency options Foreign currency exchange rate 8,246 16 199 7,569 205 36 Subtotal 9,712 20 260 11,485 268 48 Total qualifying hedges 48,051 6,140 2,204 46,808 4,358 2,074 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 74,587 9,659 3,472 89,336 5,111 2,247 Interest rate floors Interest rate 15,201 407 47 23,837 311 48 Interest rate caps Interest rate 79,030 36 2 68,928 105 3 Interest rate futures Interest rate 7,969 2 12 5,808 4 7 Interest rate options Interest rate 23,156 2,417 1 30,234 1,177 30 Interest rate forwards Interest rate 128 11 — 43 1 — Interest rate total return swaps Interest rate 2,775 172 — — — — Synthetic GICs Interest rate 3,962 — — 4,216 — — Foreign currency swaps Foreign currency exchange rate 12,655 1,120 522 11,081 766 431 Foreign currency forwards Foreign currency exchange rate 17,822 1,083 260 11,724 154 220 Currency futures Foreign currency exchange rate 1,009 — 2 930 — — Currency options Foreign currency exchange rate 6,137 218 6 9,590 466 189 Credit default swaps — purchased Credit 1,823 16 37 1,870 28 34 Credit default swaps — written Credit 11,183 106 10 10,311 78 13 Equity futures Equity market 12,649 2 194 7,206 63 18 Equity index options Equity market 55,075 1,906 1,218 55,682 1,542 1,041 Equity variance swaps Equity market 23,608 209 682 23,437 195 636 Equity total return swaps Equity market 4,001 59 35 3,803 47 58 Total non-designated or nonqualifying derivatives 352,770 17,423 6,500 358,036 10,048 4,975 Total $ 400,821 $ 23,563 $ 8,704 $ 404,844 $ 14,406 $ 7,049 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 June 30, 2016 and December 31, 2015 . 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 nonqualified derivatives, changes in market factors can lead to the recognition of fair value changes on the statement of operations without an offsetting gain or loss recognized in earnings for the item being hedged. Net Derivative Gains (Losses) The components of net derivative gains (losses) were as follows: Three Months Six Months 2016 2015 2016 2015 (In millions) Freestanding derivatives and hedging gains (losses) (1) $ 2,525 $ (1,733 ) $ 5,029 $ (885 ) Embedded derivatives gains (losses) (4,624 ) 821 (5,793 ) 794 Total net derivative gains (losses) $ (2,099 ) $ (912 ) $ (764 ) $ (91 ) __________________ (1) Includes foreign currency transaction gains (losses) on hedged items in cash flow and nonqualifying hedging relationships, which are not presented elsewhere in this note. The following table presents earned income on derivatives: Three Months Six Months 2016 2015 2016 2015 (In millions) Qualifying hedges: Net investment income $ 73 $ 45 $ 130 $ 103 Interest credited to policyholder account balances 1 13 7 15 Other expenses (4 ) 1 (6 ) (2 ) Nonqualifying hedges: Net investment income (1 ) (1 ) (1 ) (2 ) Net derivative gains (losses) 248 240 531 501 Policyholder benefits and claims 6 4 11 8 Total $ 323 $ 302 $ 672 $ 623 Nonqualifying Derivatives and Derivatives for Purposes Other Than Hedging The following table presents the amount and location of gains (losses) recognized in income for derivatives that were not designated or not qualifying as hedging instruments: Net Derivative Gains (Losses) Net Policyholder (In millions) Three Months Ended June 30, 2016 Interest rate derivatives $ 1,657 $ — $ 55 Foreign currency exchange rate derivatives 1,196 — (11 ) Credit derivatives — purchased (22 ) (10 ) — Credit derivatives — written 3 9 — Equity derivatives (213 ) (3 ) (65 ) Total $ 2,621 $ (4 ) $ (21 ) Three Months Ended June 30, 2015 Interest rate derivatives $ (1,459 ) $ — $ (18 ) Foreign currency exchange rate derivatives (590 ) — — Credit derivatives — purchased 4 1 — Credit derivatives — written (34 ) — — Equity derivatives (186 ) (3 ) (27 ) Total $ (2,265 ) $ (2 ) $ (45 ) Six Months Ended June 30, 2016 Interest rate derivatives $ 3,629 $ — $ 97 Foreign currency exchange rate derivatives 1,719 — (12 ) Credit derivatives — purchased (27 ) — — Credit derivatives — written (3 ) — — Equity derivatives (260 ) (14 ) (33 ) Total $ 5,058 $ (14 ) $ 52 Six Months Ended June 30, 2015 Interest rate derivatives $ (907 ) $ — $ (7 ) Foreign currency exchange rate derivatives 79 — — Credit derivatives — purchased (7 ) — — Credit derivatives — written (31 ) 1 — Equity derivatives (648 ) (7 ) (126 ) Total $ (1,514 ) $ (6 ) $ (133 ) __________________ (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 Hedging Relationships Hedged Items in Fair Value Hedging Relationships Net Derivative Gains (Losses) Recognized for Derivatives Net Derivative Gains (Losses) Recognized for Hedged Items Ineffectiveness Recognized in Net Derivative Gains (Losses) (In millions) Three Months Ended June 30, 2016 Interest rate swaps: Fixed maturity securities $ (3 ) $ — $ (3 ) Policyholder liabilities (1) 197 (200 ) (3 ) Foreign currency swaps: Foreign-denominated fixed maturity securities 7 (8 ) (1 ) Foreign-denominated policyholder account balances (2) (51 ) 48 (3 ) Foreign currency forwards: Foreign-denominated fixed maturity securities 137 (126 ) 11 Total $ 287 $ (286 ) $ 1 Three Months Ended June 30, 2015 Interest rate swaps: Fixed maturity securities $ 4 $ (2 ) $ 2 Policyholder liabilities (1) (366 ) 362 (4 ) Foreign currency swaps: Foreign-denominated fixed maturity securities (3 ) 5 2 Foreign-denominated policyholder account balances (2) 110 (112 ) (2 ) Foreign currency forwards: Foreign-denominated fixed maturity securities (81 ) 74 (7 ) Total $ (336 ) $ 327 $ (9 ) Six Months Ended June 30, 2016 Interest rate swaps: Fixed maturity securities $ (11 ) $ 7 $ (4 ) Policyholder liabilities (1) 543 (548 ) (5 ) Foreign currency swaps: Foreign-denominated fixed maturity securities 6 (6 ) — Foreign-denominated policyholder account balances (2) (26 ) 23 (3 ) Foreign currency forwards: Foreign-denominated fixed maturity securities 276 (254 ) 22 Total $ 788 $ (778 ) $ 10 Six Months Ended June 30, 2015 Interest rate swaps: Fixed maturity securities $ (1 ) $ 5 $ 4 Policyholder liabilities (1) (169 ) 164 (5 ) Foreign currency swaps: Foreign-denominated fixed maturity securities 7 (3 ) 4 Foreign-denominated policyholder account balances (2) (139 ) 133 (6 ) Foreign currency forwards: Foreign-denominated fixed maturity securities (98 ) 90 (8 ) Total $ (400 ) $ 389 $ (11 ) __________________ (1) Fixed rate liabilities reported in policyholder account balances or future policy benefits. (2) Fixed rate or floating rate liabilities. For the Company’s foreign currency forwards, the change in the estimated fair value of the derivative related to the changes in the difference between the spot price and the forward price is excluded from the assessment of hedge effectiveness. For all other derivatives, all components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. For the three months and six months ended June 30, 2016 , ($4) million and ($10) million , respectively, of the change in estimated fair value of derivatives was excluded from the assessment of hedge effectiveness. For the three months and six months ended June 30, 2015 , ($3) million and ($5) million , respectively, of the change in estimated fair value of derivatives was excluded from the assessment of hedge effectiveness. Cash Flow Hedges The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities; (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments; (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments; |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 8. 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. June 30, 2016 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 97,323 $ 7,292 $ 104,615 U.S. government and agency 41,028 28,386 323 69,737 Foreign corporate — 52,794 6,418 59,212 Foreign government — 61,885 376 62,261 RMBS 4,164 35,172 5,262 44,598 State and political subdivision — 17,357 53 17,410 ABS — 15,712 806 16,518 CMBS — 12,525 632 13,157 Total fixed maturity securities 45,192 321,154 21,162 387,508 Equity securities 1,364 1,287 682 3,333 FVO and trading securities: Actively traded securities — 7 1 8 FVO general account securities 509 31 100 640 FVO contractholder-directed unit-linked investments 10,729 2,804 124 13,657 FVO securities held by CSEs — 3 6 9 Total FVO and trading securities 11,238 2,845 231 14,314 Short-term investments (1) 2,262 6,472 175 8,909 Mortgage loans: Residential mortgage loans — FVO — — 449 449 Commercial mortgage loans held by CSEs — FVO — 159 — 159 Total mortgage loans — 159 449 608 Other investments 91 58 — 149 Derivative assets: (2) Interest rate 2 16,056 228 16,286 Foreign currency exchange rate — 4,936 43 4,979 Credit — 107 15 122 Equity market 2 1,824 350 2,176 Total derivative assets 4 22,923 636 23,563 Net embedded derivatives within asset host contracts (3) — — 608 608 Separate account assets (4) 84,717 223,323 1,632 309,672 Total assets $ 144,868 $ 578,221 $ 25,575 $ 748,664 Liabilities Derivative liabilities: (2) Interest rate $ 12 $ 3,540 $ 4 $ 3,556 Foreign currency exchange rate 2 2,907 63 2,972 Credit — 47 — 47 Equity market 194 1,234 701 2,129 Total derivative liabilities 208 7,728 768 8,704 Net embedded derivatives within liability host contracts (3) — — 7,412 7,412 Long-term debt of CSEs — FVO — 35 12 47 Trading liabilities (5) — — — — Separate account liabilities (4) — 97 5 102 Total liabilities $ 208 $ 7,860 $ 8,197 $ 16,265 December 31, 2015 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 93,758 $ 7,036 $ 100,794 U.S. government and agency 37,660 23,986 — 61,646 Foreign corporate — 51,438 5,760 57,198 Foreign government — 49,643 856 50,499 RMBS — 34,088 4,709 38,797 State and political subdivision — 15,395 46 15,441 ABS — 12,731 1,663 14,394 CMBS — 11,889 744 12,633 Total fixed maturity securities 37,660 292,928 20,814 351,402 Equity securities 1,274 1,615 432 3,321 FVO and trading securities: Actively traded securities — 400 4 404 FVO general account securities 506 32 89 627 FVO contractholder-directed unit-linked investments 10,829 2,985 167 13,981 FVO securities held by CSEs — 2 10 12 Total FVO and trading securities 11,335 3,419 270 15,024 Short-term investments (1) 2,543 5,985 291 8,819 Mortgage loans: Residential mortgage loans — FVO — — 314 314 Commercial mortgage loans held by CSEs — FVO — 172 — 172 Total mortgage loans — 172 314 486 Other investments 109 53 — 162 Derivative assets: (2) Interest rate 4 9,405 25 9,434 Foreign currency exchange rate — 3,003 16 3,019 Credit — 99 7 106 Equity market 63 1,435 349 1,847 Total derivative assets 67 13,942 397 14,406 Net embedded derivatives within asset host contracts (3) — — 391 391 Separate account assets (4) 77,080 222,814 1,704 301,598 Total assets $ 130,068 $ 540,928 $ 24,613 $ 695,609 Liabilities Derivative liabilities: (2) Interest rate $ 7 $ 2,340 $ — $ 2,347 Foreign currency exchange rate — 2,754 148 2,902 Credit — 45 2 47 Equity market 18 1,077 658 1,753 Total derivative liabilities 25 6,216 808 7,049 Net embedded derivatives within liability host contracts (3) — — 935 935 Long-term debt of CSEs — FVO — 49 11 60 Trading liabilities (5) 103 50 — 153 Separate account liabilities (4) — — — — Total liabilities $ 128 $ 6,315 $ 1,754 $ 8,197 __________________ (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 within premiums, reinsurance and other receivables and other invested assets 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 June 30, 2016 and December 31, 2015 , debt and equity securities also included embedded derivatives of ($257) million and ($220) 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. Separate account liabilities presented in the tables above represent derivative liabilities. (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 6% of the total estimated fair value of Level 3 fixed maturity securities at June 30, 2016 . 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 Observable Inputs Level 3 Unobservable Inputs Fixed Maturity Securities U.S. corporate and Foreign corporate securities Valuation Techniques: Principally the market and income approaches. Valuation Techniques: Principally the market approach. Key Inputs: Key Inputs: • quoted prices in markets that are not active • illiquidity premium • benchmark yields; spreads off benchmark yields; new issuances; issuer rating • delta spread adjustments to reflect specific credit-related issues • trades of identical or comparable securities; duration • credit spreads • Privately-placed securities are valued using the additional key inputs: • quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 • market yield curve; call provisions • observable prices and spreads for similar public or private securities that incorporate the credit quality and industry sector of the issuer • independent non-binding broker quotations • delta spread adjustments to reflect specific credit-related issues U.S. government 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; broker-dealer quotes • credit spreads • comparable securities that are actively traded Structured Securities 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; spreads off benchmark yields • quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 • expected prepayment speeds and volumes • current and forecasted loss severity; ratings; geographic region • independent non-binding broker quotations • weighted average coupon and weighted average maturity • average delinquency rates; debt-service coverage ratios • issuance-specific information, including, but not limited to: • collateral type; structure of the security; vintage of the loans • payment terms of the underlying assets • payment priority within the tranche; deal performance Instrument Level 2 Observable Inputs Level 3 Unobservable Inputs Equity Securities Valuation 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 • Contractholder-directed unit-linked investments 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 net asset value (“NAV”) provided by the fund managers, which were based on observable inputs. • 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. • All 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. Mortgage Loans — FVO Commercial mortgage loans held by CSEs — FVO Valuation Techniques: Principally the market approach. • N/A Key Input: • quoted securitization market price 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 and Separate Account Liabilities (1) Mutual funds and hedge funds without readily determinable fair values as prices are not published publicly Key Input: • N/A • quoted prices or reported NAV provided by the fund managers Other limited partnership interests • N/A 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; 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.” Derivatives The estimated fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives, or through the use of pricing models for OTC-bilateral and OTC-cleared derivatives. The determination of estimated fair value, when quoted market values are not available, is based on market standard valuation methodologies and inputs that management believes are consistent with what other market participants would use when pricing such instruments. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk, nonperformance risk, volatility, liquidity and changes in estimates and assumptions used in the pricing models. The valuation controls and procedures for derivatives are described in “— Investments.” The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Certain OTC-bilateral and OTC-cleared derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments. Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income. The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period. Freestanding Derivatives Level 2 Valuation Techniques and Key Inputs: This level includes all types of derivatives utilized by the Company with the exception of exchange-traded derivatives included within Level 1 and those derivatives with unobservable inputs as described in Level 3. Level 3 Valuation Techniques and Key Inputs: These valuation methodologies generally use the same inputs as described in the corresponding sections for Level 2 measurements of derivatives. However, these derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Freestanding derivatives are principally valued using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models. Key inputs are as follows: Instrument Interest Rate Foreign Currency Exchange Rate Credit Equity Market Inputs common to Level 2 and Level 3 by instrument type • swap yield curves • swap yield curves • swap yield curves • swap yield curves • basis curves • basis curves • credit curves • spot equity index levels • interest rate volatility (1) • currency spot rates • recovery rates • dividend yield curves • cross currency basis curves • equity volatility (1) • currency volatility (1) Level 3 • swap yield curves (2) • swap yield curves (2) • swap yield curves (2) • dividend yield curves (2) • basis curves (2) • basis curves (2) • credit curves (2) • equity volatility (1), (2) • interest rate volatility (1), (2) • cross currency basis curves (2) • credit spreads • correlation between model inputs (1) • repurchase rates • currency correlation • repurchase rates • currency volatility (1) • independent non-binding broker quotations __________________ (1) Option-based only. (2) Extrapolation beyond the observable limits of the curve(s). Embedded Derivatives Embedded derivatives principally include certain direct, assumed and ceded variable annuity guarantees, equity or bond indexed crediting rates within certain funding agreements and annuity contracts, and those related to funds withheld on ceded reinsurance agreements. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income. The Company issues certain variable annuity products with guaranteed minimum benefits. GMWBs, GMABs and certain GMIBs contain embedded derivatives, which are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances 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 curves, currency exchange rates and implied volatilities. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include: the extrapolation beyond observable limits of the swap yield curves and implied volatilities, actuarial assumptions for policyholder behavior and mortality and the potential variability in policyholder behavior and mortality, nonperformance risk and cost of capital for purposes of calculating the risk margin. Reinsurance ceded on certain guaranteed minimum benefits These embedded derivatives are principally valued using the income approach. The valuation techniques and significant market standard unobservable inputs used in their valuation are similar to those described above in “— Direct and assumed guaranteed minimum benefits” and also include counterparty credit spreads. Transfers between Levels Overall, transfers between levels occur when there are changes in the observability of inputs and market activity. Transfers into or out of any level are assumed to occur at the beginning of the period. Transfers between Levels 1 and 2: For assets and liabilities measured at estimated fair value and still held at June 30, 2016 , transfers between Levels 1 and 2 were not significant. For assets and liab |
Equity
Equity | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Equity | 9. Equity Preferred Stock Preferred stock authorized, issued and outstanding was as follows at both June 30, 2016 and December 31, 2015 : Series Shares Authorized Shares Issued Shares Outstanding Floating Rate Non-Cumulative Preferred Stock, Series A 27,600,000 24,000,000 24,000,000 5.25% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C 1,500,000 1,500,000 1,500,000 Series A Junior Participating Preferred Stock 10,000,000 — — Not designated 160,900,000 — — Total 200,000,000 25,500,000 25,500,000 Common Stock During the six months ended June 30, 2016 and 2015 , MetLife, Inc. repurchased 1,445,864 and 20,176,185 shares through open market purchases for $70 million and $1.0 billion , res pectively. At June 30, 2016 , MetLife, Inc. had no remaining common stock repurchase authorizations. Common stock repurchases are dependent upon several factors, including the Company’s capital position, liquidity, financial strength and credit ratings, general market conditions, the market price of MetLife, Inc.’s common stock compared to management’s assessment of the stock’s underlying value and applicable regulatory approvals, as well as other legal and accounting factors. Stock-Based Compensation Plans Performance Shares and Performance Units Awards under the MetLife, Inc. 2005 Stock and Incentive Compensation Plan and the MetLife, Inc. 2015 Stock and Incentive Compensation Plan (the “2015 Stock Plan”) were outstanding at June 30, 2016 . All awards granted in 2015 or later were granted under the 2015 Stock Plan. There were no outstanding awards to MetLife, Inc. directors, for their service as directors, as of June 30, 2016 . For Performance Share and Performance Unit awards outstanding as of June 30, 2016 , 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 business plan. The estimated fair value of Performance Shares and Performance Units will be remeasured each quarter until they become payable. Payout of 2013 – 2015 Performance Shares and Performance Units Final Performance Shares are paid in shares of MetLife, Inc. common stock. Final Performance Units are payable in cash equal to the closing price of MetLife, Inc. common stock on a date following the last day of the three-year performance period. The performance factor for the January 1, 2013 – December 31, 2015 performance period was 86.2% . This factor has been applied to the 1,592,650 Performance Shares and 234,787 Performance Units associated with that performance period that vested on December 31, 2015 . As a result, in the first quarter of 2016, MetLife, Inc. issued 1,372,864 shares of its common stock (less withholding for taxes and other items, as applicable), excluding shares that payees choose to defer, and MetLife, Inc. or its affiliates paid the cash value of 202,386 units (less withholding for taxes and other items, as applicable). Accumulated Other Comprehensive Income (Loss) Information regarding changes in the balances of each component of AOCI attributable to MetLife, Inc., was as follows: Three Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 15,446 $ 1,725 $ (4,282 ) $ (2,024 ) $ 10,865 OCI before reclassifications 4,268 800 209 11 5,288 Deferred income tax benefit (expense) (1,388 ) (269 ) 53 (4 ) (1,608 ) AOCI before reclassifications, net of income tax 18,326 2,256 (4,020 ) (2,017 ) 14,545 Amounts reclassified from AOCI (183 ) 243 — 51 111 Deferred income tax benefit (expense) 61 (68 ) — (17 ) (24 ) Amounts reclassified from AOCI, net of income tax (122 ) 175 — 34 87 Balance, end of period $ 18,204 $ 2,431 $ (4,020 ) $ (1,983 ) $ 14,632 Three Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 16,206 $ 1,555 $ (3,986 ) $ (2,246 ) $ 11,529 OCI before reclassifications (6,511 ) (395 ) (237 ) 3 (7,140 ) Deferred income tax benefit (expense) 2,178 150 9 (1 ) 2,336 AOCI before reclassifications, net of income tax 11,873 1,310 (4,214 ) (2,244 ) 6,725 Amounts reclassified from AOCI (177 ) (303 ) — 57 (423 ) Deferred income tax benefit (expense) 65 95 — (19 ) 141 Amounts reclassified from AOCI, net of income tax (112 ) (208 ) — 38 (282 ) Balance, end of period $ 11,761 $ 1,102 $ (4,214 ) $ (2,206 ) $ 6,443 Six Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 10,315 $ 1,458 $ (4,950 ) $ (2,052 ) $ 4,771 OCI before reclassifications 11,938 1,496 760 11 14,205 Deferred income tax benefit (expense) (3,937 ) (468 ) 170 (4 ) (4,239 ) AOCI before reclassifications, net of income tax 18,316 2,486 (4,020 ) (2,045 ) 14,737 Amounts reclassified from AOCI (166 ) (80 ) — 99 (147 ) Deferred income tax benefit (expense) 54 25 — (37 ) 42 Amounts reclassified from AOCI, net of income tax (112 ) (55 ) — 62 (105 ) Balance, end of period $ 18,204 $ 2,431 $ (4,020 ) $ (1,983 ) $ 14,632 Six Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 15,159 $ 1,076 $ (3,303 ) $ (2,283 ) $ 10,649 OCI before reclassifications (4,885 ) (208 ) (907 ) 3 (5,997 ) Deferred income tax benefit (expense) 1,677 84 (4 ) (1 ) 1,756 AOCI before reclassifications, net of income tax 11,951 952 (4,214 ) (2,281 ) 6,408 Amounts reclassified from AOCI (290 ) 251 — 114 75 Deferred income tax benefit (expense) 100 (101 ) — (39 ) (40 ) Amounts reclassified from AOCI, net of income tax (190 ) 150 — 75 35 Balance, end of period $ 11,761 $ 1,102 $ (4,214 ) $ (2,206 ) $ 6,443 __________________ (1) See Note 6 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 Six Months 2016 2015 2016 2015 (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ 158 $ 110 $ 125 $ 249 Net investment gains (losses) Net unrealized investment gains (losses) 16 17 19 57 Net investment income Net unrealized investment gains (losses) 9 50 22 (16 ) Net derivative gains (losses) Net unrealized investment gains (losses), before income tax 183 177 166 290 Income tax (expense) benefit (61 ) (65 ) (54 ) (100 ) Net unrealized investment gains (losses), net of income tax 122 112 112 190 Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate swaps 18 7 28 12 Net derivative gains (losses) Interest rate swaps 4 3 7 6 Net investment income Interest rate forwards (1 ) 1 1 4 Net derivative gains (losses) Interest rate forwards 2 1 3 2 Net investment income Interest rate forwards 1 — 1 1 Other expenses Foreign currency swaps (269 ) 290 37 (277 ) Net derivative gains (losses) Foreign currency swaps (1 ) (1 ) (1 ) (1 ) Net investment income Foreign currency swaps — 1 1 1 Other expenses Credit forwards 3 — 3 — Net derivative gains (losses) Credit forwards — 1 — 1 Net investment income Gains (losses) on cash flow hedges, before income tax (243 ) 303 80 (251 ) Income tax (expense) benefit 68 (95 ) (25 ) 101 Gains (losses) on cash flow hedges, net of income tax (175 ) 208 55 (150 ) Defined benefit plans adjustment: (1) Amortization of net actuarial gains (losses) (52 ) (58 ) (103 ) (116 ) Amortization of prior service (costs) credit 1 1 4 2 Amortization of defined benefit plan items, before income tax (51 ) (57 ) (99 ) (114 ) Income tax (expense) benefit 17 19 37 39 Amortization of defined benefit plan items, net of income tax (34 ) (38 ) (62 ) (75 ) Total reclassifications, net of income tax $ (87 ) $ 282 $ 105 $ (35 ) __________________ (1) These AOCI components are included in the computation of net periodic benefit costs. See Note 11 . |
Other Expenses
Other Expenses | 6 Months Ended |
Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | |
Other Expenses | 10. Other Expenses Information on other expenses was as follows: Three Months Six Months 2016 2015 2016 2015 (In millions) Compensation $ 1,189 $ 1,258 $ 2,499 $ 2,549 Pension, postretirement and postemployment benefit costs 103 105 243 197 Commissions 1,094 1,122 2,228 2,279 Volume-related costs 214 255 480 497 Capitalization of DAC (915 ) (927 ) (1,896 ) (1,895 ) Amortization of DAC and VOBA 121 897 1,116 1,922 Amortization of negative VOBA (67 ) (92 ) (166 ) (192 ) Interest expense on debt 306 308 618 606 Premium taxes, licenses and fees 189 196 404 369 Professional services 398 383 728 713 Rent and related expenses, net of sublease income 98 84 195 167 Other 516 483 989 920 Total other expenses $ 3,246 $ 4,072 $ 7,438 $ 8,132 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 11. Employee Benefit Plans Pension and Other Postretirement Benefit Plans Certain subsidiaries of MetLife, Inc. sponsor and/or administer various 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 2016 2015 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits (In millions) Service costs $ 73 $ 2 $ 69 $ 5 Interest costs 109 21 107 22 Curtailment costs (1) — (3 ) — — Expected return on plan assets (127 ) (19 ) (136 ) (20 ) Amortization of net actuarial (gains) losses 50 2 47 11 Amortization of prior service costs (credit) — (1 ) — (1 ) Net periodic benefit costs (credit) $ 105 $ 2 $ 87 $ 17 Six Months 2016 2015 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits (In millions) Service costs $ 145 $ 4 $ 138 $ 9 Interest costs 220 42 212 45 Curtailment costs (1) — 27 — — Expected return on plan assets (254 ) (37 ) (272 ) (40 ) Amortization of net actuarial (gains) losses 99 4 95 21 Amortization of prior service costs (credit) — (4 ) — (2 ) Net periodic benefit costs (credit) $ 210 $ 36 $ 173 $ 33 __________________ (1) The Company recognized curtailment charges on certain postretirement benefit plans in connection with the U.S Retail Advisor Force Divestiture. See Note 3 . |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2016 | |
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 Six Months 2016 2015 2016 2015 (In millions, except share and per share data) Weighted Average Shares: Weighted average common stock outstanding for basic earnings per common share 1,100,328,049 1,117,807,514 1,100,582,221 1,120,801,928 Incremental common shares from assumed: Exercise or issuance of stock-based awards 8,800,389 10,584,264 8,292,739 10,320,897 Weighted average common stock outstanding for diluted earnings per common share 1,109,128,438 1,128,391,778 1,108,874,960 1,131,122,825 Net Income (Loss): Net income (loss) $ 114 $ 1,119 $ 2,317 $ 3,282 Less: Net income (loss) attributable to noncontrolling interests 4 4 6 9 Less: Preferred stock dividends 46 31 52 61 Preferred stock repurchase premium — 42 — 42 Net income (loss) available to MetLife, Inc.’s common shareholders $ 64 $ 1,042 $ 2,259 $ 3,170 Basic $ 0.06 $ 0.93 $ 2.05 $ 2.83 Diluted $ 0.06 $ 0.92 $ 2.04 $ 2.80 |
Contingencies, Commitments and
Contingencies, Commitments and Guarantees | 6 Months Ended |
Jun. 30, 2016 | |
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 reasonably estimated at June 30, 2016 . 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 June 30, 2016 , the Company estimates the aggregate range of reasonably possible losses in excess of amounts accrued for these matters to be $0 to $475 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 2015 Annual Report, MLIC received approximately 3,856 asbestos-related claims in 2015 . During the six months ended June 30, 2016 and 2015 , MLIC received approximately 2,348 and 2,022 new asbestos-related claims, respectively. See Note 21 of the Notes to the Consolidated Financial Statements included in the 2015 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 regular reevaluation of its exposure from asbestos litigation, MLIC has updated its liability analysis for asbestos-related claims through June 30, 2016 . Regulatory Matters The Company receives and responds to subpoenas or other inquiries seeking a broad range of information from state regulators, including state insurance commissioners; state attorneys general or other state governmental authorities; federal regulators, including the SEC; federal governmental authorities, including congressional committees; and the Financial Industry Regulatory Authority (“FINRA”), as well as from local and national regulators and government authorities in countries outside the United States where MetLife conducts business. The issues involved in information requests and regulatory matters vary widely. The Company cooperates in these inquiries. Law Enforcement Inquiry Regarding Mortgage Servicing 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 from 2008 to 2013. 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 for reimbursement. In August 2013, MetLife Bank merged with MetLife Home Loans LLC (“MLHL”) with MLHL as the surviving non-bank entity. Management believes that the Company’s consolidated financial statements as a whole will not be materially affected by this matter. 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 signed in 1989 and 1992 with respect to the cleanup of a Superfund site in Florida (the “Chemform Site”). The EPA is requesting payment of an amount under $1 million from MLIC and a 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 . Sales Practices Regulatory Matters Regulatory authorities in a number of states and FINRA, and occasionally the SEC, have had investigations or inquiries relating to sales of individual life insurance policies or annuities or other products by MLIC, MetLife Insurance Company USA, New England Life Insurance Company (“NELICO”), General American Life Insurance Company (“GALIC”), and MSI. 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. Sale and Replacement of Variable Annuities and FINRA Letter of Acceptance, Waiver and Consent MSI has entered into a Letter of Acceptance, Waiver and Consent with FINRA (hereinafter, the “Letter”). In the Letter, FINRA stated that, from 2009 through 2014, MSI violated certain National Association of Securities Dealers and FINRA rules in connection with replacements of certain variable annuities and the sale of certain riders on such annuities. MSI was censured, paid a $20 million fine and will pay an additional $5 million to impacted customers. MSI has accrued this amount. 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 (the “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, NELICO, MetLife Insurance Company of Connecticut and GALIC, respectively. The defendants intend to defend these actions vigorously. 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 third amended complaint alleging that MetLife, Inc. and several current and former directors and 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 October 14, 2015, the court denied the defendants’ motion to dismiss the complaint. The defendants intend to defend this action vigorously. Total Control Accounts Litigation Owens v. Metropolitan Life Insurance Company (N.D. Ga., filed April 17, 2014) Plaintiff filed this putative class action lawsuit on behalf of all persons for whom MLIC established a retained asset account, known as a TCA, to pay death benefits under an Employee Retirement Income Security Act of 1974 (“ERISA”) plan. The action alleges that MLIC’s use of the TCA as the settlement option for life insurance benefits under some group life insurance policies violates MLIC’s fiduciary duties under ERISA. As damages, plaintiff seeks disgorgement of profits that MLIC realized on accounts owned by members of the 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 Insurance Company (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 were 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 sought recovery under Section 4226 of the New York Insurance Law of a statutory penalty in the amount of the premiums paid for the Policies. On October 9, 2015, the court granted MLIC’s motion to dismiss the consolidated complaint, finding that plaintiffs lacked Article III standing because they did not allege any concrete injury as a result of the alleged conduct. Plaintiffs appealed this decision to the Second Circuit Court of Appeals. Intoccia v. Metropolitan Life Insurance Company (S.D.N.Y., April 20, 2015) Plaintiffs filed this putative class action 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 court consolidated Weilert v. Metropolitan Life Ins. Co. (S.D.N.Y., April 30, 2015) with the Intoccia case, and the consolidated, amended 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 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. The Court granted MLIC’s motion to dismiss, adopting the reasoning of the Robainas decision . Plaintiffs appealed this decision to the Second Circuit Court of Appeals. Other Litigation McGuire v. Metropolitan Life Insurance Company (E.D. Mich., filed February 22, 2012) The fiduciary for the Union Carbide Employees’ Pension Plan alleged 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. The parties have resolved this matter, and the court has dismissed the action. Sun Life Assurance Company of Canada Indemnity Claim In 2006, Sun Life Assurance Company of Canada (“Sun Life”), as successor to the purchaser of MLIC’s Canadian operations, filed a lawsuit in Toronto, seeking a declaration that MLIC remains liable for “market conduct claims” related to certain individual life insurance policies sold by MLIC that were subsequently transferred to Sun Life. In January 2010, the court found that Sun Life had given timely notice of its claim for indemnification but, because it found that Sun Life had not yet incurred an indemnifiable loss, granted MLIC’s motion for summary judgment. Both parties agreed to consider the indemnity claim through arbitration. In September 2010, Sun Life notified MLIC that a purported class action lawsuit was filed against Sun Life in Toronto alleging sales practices claims regarding the policies sold by MLIC and transferred to Sun Life. On August 30, 2011, Sun Life notified MLIC that another purported class action lawsuit was filed against Sun Life in Vancouver, BC alleging sales practices claims regarding certain of the same policies sold by MLIC and transferred to Sun Life. Sun Life contends that MLIC is obligated to indemnify Sun Life for some or all of the claims in these lawsuits. These sales practices cases against Sun Life are ongoing, and the Company is unable to estimate the reasonably possible loss or range of loss arising from this litigation. Fauley v. Metropolitan Life Insurance Company, et al. (Circuit Court of the 19th Judicial Circuit, Lake County, Ill., July 3, 2014) Plaintiffs filed this lawsuit 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 court 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. On March 23, 2016, the intermediate appellate court affirmed the trial court’s order. One class member is seeking further review by the Illinois Supreme Court. MetLife, Inc. v. Financial Stability Oversight Council (D. D.C., January 13, 2015) MetLife, Inc. filed this action in U.S. District Court for the District of Columbia (“D.C. District Court”) seeking to overturn the Financial Stability Oversight Council’s (“FSOC”) designation of MetLife, Inc. as a non-bank systemically important financial institution (“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. The D.C. District Court issued a decision on March 30, 2016 granting, in part, MetLife, Inc.’s cross motion for summary judgment and rescinding the FSOC’s designation of MetLife, Inc. as a non-bank SIFI. On April 8, 2016, the FSOC filed a notice of appeal of the D.C. District Court’s order. Voshall v. Metropolitan Life Insurance Company (Superior Court of the State of California, County of Los Angeles, April 8, 2015) Plaintiff filed this putative class action lawsuit on behalf of himself and all persons covered under a long-term group disability income insurance policy issued by MLIC to public entities in California between April 8, 2011 and April 8, 2015. Plaintiff alleges that MLIC improperly reduced benefits by including cost of living adjustments and employee paid contributions in the employer retirement benefits and other income that reduces the benefit payable under such policies. Plaintiff asserts causes of action for declaratory relief, violation of the California Business & Professions Code, breach of contract and breach of the implied covenant of good faith and fair dealing. The Company intends to defend this action vigorously. Martin v. Metropolitan Life Insurance Company, (Superior Court of the State of California, County of Contra Costa, filed December 17, 2015) Plaintiffs filed this putative class action lawsuit on behalf of themselves and all California persons who have been charged compound interest by MLIC in life insurance policy and/or premium loan balances within the last four years. Plaintiffs allege that MLIC has engaged in a pattern and practice of charging compound interest on life insurance policy and premium loans without the borrower authorizing such compounding, and that this constitutes an unlawful business practice under California law. Plaintiff asserts causes of action for declaratory relief, violation of California’s Unfair Competition Law and Usury Law, and unjust enrichment. Plaintiff seeks declaratory and injunctive relief, restitution of interest, and damages in an unspecified amount. On April 12, 2016, the court granted MLIC’s motion to dismiss. Plaintiffs have filed a notice appealing this ruling. Lau v. Metropolitan Life Insurance Company (S.D.N.Y. filed, December 3, 2015) This putative class action lawsuit was filed by a single defined contribution plan participant on behalf of all ERISA plans whose assets were invested in MetLife’s “Group Annuity Contract Stable Value Funds” within the past six years. The suit alleges breaches of fiduciary duty under ERISA and challenges the “spread” with respect to the stable value fund group annuity products sold to retirement plans. The allegations focus on the methodology MetLife uses to establish and reset the crediting rate, the terms under which plan participants are permitted to transfer funds from a stable value option to another investment option, the procedures followed if an employer terminates a contract, and the level of disclosure provided. Plaintiff seeks declaratory and injunctive relief, as well as damages in an unspecified amount. The Company intends to defend this action vigorously. Newman v. Metropolitan Life Insurance Company (N.D. Ill., filed March 23, 2016) Plaintiff filed this putative class action alleging causes of action for breach of contract, fraud, and violations of the Illinois Consumer Fraud and Deceptive Business Practices Act, based on MLIC’s class-wide increase in premiums charged for long-term care insurance policies. Plaintiff alleges a class consisting of herself and all persons over age 65 who selected a Reduced Pay at Age 65 payment feature and whose premium rates were increased after age 65. Plaintiff asserts that premiums could not be increased for these class members and/or that marketing material with respect to these two features was misleading as to MLIC’s right to increase premiums. Plaintiff seeks unspecified compensatory, statutory and punitive damages as well as recessionary and injunctive relief. The Company intends to defend this action vigorously. Sales Practices Claims Over the past several years, the Company has faced numerous claims, including class action lawsuits, alleging improper marketing or sales of individual life insurance policies, annuities, mutual funds, other products or the misuse of client assets. Some of the current cases seek substantial damages, including punitive and treble damages and attorneys’ fees. The Company continues to defend vigorously against the claims in these matters. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters. Summary Putative or certified class action litigation and other litigation and claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, mortgage lending bank, employer, investor, investment advisor and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company’s compliance with applicable insurance and other laws and regulations. It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to previously, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Although in light of these considerations it is possible that an adverse outcome in certain cases could have a material effect upon the Company’s financial position, based on information currently known by the Company’s management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company’s consolidated net income or cash flows in particular quarterly or annual periods. Commitments Mortgage Loan Commitments The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $4.0 billion and $4.4 billion at June 30, 2016 and December 31, 2015 , 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 $7.9 billion and $7.1 billion at June 30, 2016 and December 31, 2015 , respectively. Guarantees In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, incl |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | 14. Subsequent Event Segment Reorganization In anticipation of the planned Separation, beginning in the third quarter of 2016, the Company will reorganize its business segments within the Americas. The businesses planned to be included in Brighthouse Financial (which include a substantial portion of the Company’s Retail segment) upon the Separation will be reflected in a separate segment designated the Brighthouse Financial segment. Among other changes, the Company’s property and casualty insurance business, now reported within Retail and Group, Voluntary & Worksite Benefit segments, will be combined into a single, separate Property & Casualty segment. While the Company has initiated certain changes in preparation for the planned Separation, including the announcement of certain Brighthouse Financial executives, management continued to evaluate the performance of the segments under the existing segment structure as of June 30, 2016. Common Stock Dividend On July 7, 2016, the MetLife, Inc. Board of Directors declared a third quarter 2016 common stock dividend of $0.40 per share payable on September 13, 2016 to shareholders of record as of August 8, 2016. The Company estimates that the aggregate dividend payment will be $441 million . |
Business, Basis of Presentati21
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from estimates. |
Consolidation of Subsidiaries | 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. Prior to January 1, 2016, certain international subsidiaries had 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 November 30, 2015 and the operating results of such subsidiaries for the three months and six months ended May 31, 2015. Effective January 1, 2016, the Company converted its Japan operations to calendar year-end reporting. The elimination of a one-month reporting lag of a subsidiary is considered a change in accounting principle and requires retrospective application. While the Company believes that eliminating the lag in the reporting of its Japan operations was preferable in order to consistently reflect events, economic conditions and global trends in the financial statements, the Company determined that it was impracticable to apply the effects of the lag elimination to financial reporting periods prior to January 1, 2015. The effect of not retroactively applying this change in accounting, however, was not material to the 2015 or 2016 consolidated financial statements. Therefore, the Company reported the cumulative effect of the change in accounting principle in net income for the three months ended March 31, 2016 and the six months ended June 30, 2016 and did not retrospectively apply the effects of this change to prior periods. See Note 2 . 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 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, 2015 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, 2015 (the “2015 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 2015 Annual Report. Closed block assets, liabilities, revenues and expenses are combined on a line-by-line basis with the assets, liabilities, revenues and expenses outside the closed block based on the nature of the particular item. |
Fiscal Period | Prior to January 1, 2016, certain international subsidiaries had 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 November 30, 2015 and the operating results of such subsidiaries for the three months and six months ended May 31, 2015. |
Investments | Maturities of Fixed Maturity Securities Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity. Past Due and Interest Accrual Status of Mortgage Loans 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. 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. |
Derivatives | Freestanding Derivatives Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the 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 estimated fair value of the hedged item attributable to the designated risk being hedged. • Cash flow hedge (a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability) - effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses). • Net investment in a foreign operation hedge - effectiveness in OCI, consistent with the translation adjustment for the hedged net investment in the foreign operation; ineffectiveness in net derivative gains (losses). The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. Accruals on derivatives in net investment hedges are recognized in OCI. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness and measurements of ineffectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in net derivative gains (losses). In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). Embedded Derivatives The Company sells variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: • the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings; • the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and • a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses), 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 its counterparties to derivatives. Generally, the current credit exposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements. |
Employee Benefit Plans | Certain subsidiaries of MetLife, Inc. sponsor and/or administer various 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) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | Operating Results Americas Three Months Ended June 30, 2016 Retail Group, Voluntary & Worksite Benefits Corporate Benefit Funding Latin America Total Asia EMEA Corporate & Other Total Adjustments Total Consolidated (In millions) Revenues Premiums $ 1,695 $ 4,276 $ 517 $ 716 $ 7,204 $ 1,681 $ 519 $ 13 $ 9,417 $ — $ 9,417 Universal life and investment-type product policy fees 1,156 197 61 269 1,683 370 95 25 2,173 113 2,286 Net investment income 1,950 458 1,421 247 4,076 678 83 44 4,881 6 4,887 Other revenues 224 117 72 9 422 16 19 27 484 3 487 Net investment gains (losses) — — — — — — — — — 266 266 Net derivative gains (losses) — — — — — — — — — (2,099 ) (2,099 ) Total revenues 5,025 5,048 2,071 1,241 13,385 2,745 716 109 16,955 (1,711 ) 15,244 Expenses Policyholder benefits and claims and policyholder dividends 2,937 3,990 1,181 645 8,753 1,324 283 25 10,385 213 10,598 Interest credited to policyholder account balances 525 37 313 84 959 324 30 1 1,314 186 1,500 Capitalization of DAC (245 ) (39 ) (1 ) (96 ) (381 ) (426 ) (106 ) (2 ) (915 ) — (915 ) Amortization of DAC and VOBA 487 39 4 75 605 304 103 3 1,015 (894 ) 121 Amortization of negative VOBA — — — — — (57 ) (4 ) — (61 ) (6 ) (67 ) Interest expense on debt 1 1 2 — 4 — — 299 303 3 306 Other expenses 1,124 685 109 373 2,291 877 336 155 3,659 142 3,801 Total expenses 4,829 4,713 1,608 1,081 12,231 2,346 642 481 15,700 (356 ) 15,344 Provision for income tax expense (benefit) 12 114 161 32 319 140 10 (184 ) 285 (499 ) (214 ) Operating earnings $ 184 $ 221 $ 302 $ 128 $ 835 $ 259 $ 64 $ (188 ) 970 Adjustments to: Total revenues (1,711 ) Total expenses 356 Provision for income tax (expense) benefit 499 Net income (loss) $ 114 $ 114 Operating Results Americas Three Months Ended June 30, 2015 Retail Group, Voluntary & Worksite Benefits Corporate Benefit Funding Latin America Total Asia EMEA Corporate & Other Total Adjustments Total Consolidated (In millions) Revenues Premiums $ 1,747 $ 4,104 $ 319 $ 783 $ 6,953 $ 1,809 $ 525 $ 26 $ 9,313 $ (1 ) $ 9,312 Universal life and investment-type product policy fees 1,252 183 59 301 1,795 400 114 26 2,335 99 2,434 Net investment income 2,003 481 1,526 283 4,293 679 84 129 5,185 (238 ) 4,947 Other revenues 263 114 77 7 461 28 19 19 527 (9 ) 518 Net investment gains (losses) — — — — — — — — — (133 ) (133 ) Net derivative gains (losses) — — — — — — — — — (912 ) (912 ) Total revenues 5,265 4,882 1,981 1,374 13,502 2,916 742 200 17,360 (1,194 ) 16,166 Expenses Policyholder benefits and claims and policyholder dividends 2,373 3,805 933 744 7,855 1,375 265 8 9,503 180 9,683 Interest credited to policyholder account balances 551 38 294 89 972 328 34 8 1,342 (44 ) 1,298 Capitalization of DAC (257 ) (36 ) (4 ) (100 ) (397 ) (398 ) (132 ) — (927 ) — (927 ) Amortization of DAC and VOBA 400 39 6 86 531 336 133 1 1,001 (104 ) 897 Amortization of negative VOBA — — — (1 ) (1 ) (78 ) (4 ) — (83 ) (9 ) (92 ) Interest expense on debt — — 1 — 1 — — 306 307 1 308 Other expenses 1,220 681 130 419 2,450 869 389 174 3,882 4 3,886 Total expenses 4,287 4,527 1,360 1,237 11,411 2,432 685 497 15,025 28 15,053 Provision for income tax expense (benefit) 288 124 215 21 648 59 7 (175 ) 539 (545 ) (6 ) Operating earnings $ 690 $ 231 $ 406 $ 116 $ 1,443 $ 425 $ 50 $ (122 ) 1,796 Adjustments to: Total revenues (1,194 ) Total expenses (28 ) Provision for income tax (expense) benefit 545 Net income (loss) $ 1,119 $ 1,119 Operating Results Americas Six Months Ended June 30, 2016 Retail Group, Corporate Latin Total Asia EMEA Corporate Total Adjustments Total (In millions) Revenues Premiums $ 3,435 $ 8,570 $ 875 $ 1,407 $ 14,287 $ 3,339 $ 1,019 $ 39 $ 18,684 $ 426 $ 19,110 Universal life and investment-type product policy fees 2,305 382 141 537 3,365 720 190 49 4,324 306 4,630 Net investment income 3,830 905 2,763 504 8,002 1,296 163 126 9,587 (141 ) 9,446 Other revenues 439 248 142 16 845 33 39 54 971 3 974 Net investment gains (losses) — — — — — — — — — 281 281 Net derivative gains (losses) — — — — — — — — — (764 ) (764 ) Total revenues 10,009 10,105 3,921 2,464 26,499 5,388 1,411 268 33,566 111 33,677 Expenses Policyholder benefits and claims and policyholder dividends 5,395 8,024 2,143 1,262 16,824 2,560 544 50 19,978 613 20,591 Interest credited to policyholder account balances 1,047 74 623 164 1,908 643 59 5 2,615 211 2,826 Capitalization of DAC (500 ) (75 ) (1 ) (193 ) (769 ) (811 ) (207 ) (4 ) (1,791 ) (105 ) (1,896 ) Amortization of DAC and VOBA 860 79 9 148 1,096 590 205 5 1,896 (780 ) 1,116 Amortization of negative VOBA — — — — — (121 ) (7 ) — (128 ) (38 ) (166 ) Interest expense on debt 3 1 4 — 8 — — 607 615 3 618 Other expenses 2,273 1,397 229 744 4,643 1,728 669 329 7,369 397 7,766 Total expenses 9,078 9,500 3,007 2,125 23,710 4,589 1,263 992 30,554 301 30,855 Provision for income tax expense (benefit) 215 210 317 74 816 235 21 (365 ) 707 (202 ) 505 Operating earnings $ 716 $ 395 $ 597 $ 265 $ 1,973 $ 564 $ 127 $ (359 ) 2,305 Adjustments to: Total revenues 111 Total expenses (301 ) Provision for income tax (expense) benefit 202 Net income (loss) $ 2,317 $ 2,317 Operating Results Americas Six Months Ended June 30, 2015 Retail Group, Corporate Latin Total Asia EMEA Corporate Total Adjustments Total (In millions) Revenues Premiums $ 3,496 $ 8,221 $ 737 $ 1,482 $ 13,936 $ 3,561 $ 1,033 $ 36 $ 18,566 $ (1 ) $ 18,565 Universal life and investment-type product policy fees 2,488 371 113 595 3,567 797 216 49 4,629 199 4,828 Net investment income 3,983 959 2,956 501 8,399 1,363 167 238 10,167 241 10,408 Other revenues 514 227 148 17 906 56 29 39 1,030 (17 ) 1,013 Net investment gains (losses) — — — — — — — — — 153 153 Net derivative gains (losses) — — — — — — — — — (91 ) (91 ) Total revenues 10,481 9,778 3,954 2,595 26,808 5,777 1,445 362 34,392 484 34,876 Expenses Policyholder benefits and claims and policyholder dividends 4,822 7,640 1,924 1,325 15,711 2,715 504 20 18,950 329 19,279 Interest credited to policyholder account balances 1,093 75 587 175 1,930 665 64 14 2,673 620 3,293 Capitalization of DAC (504 ) (72 ) (10 ) (211 ) (797 ) (833 ) (265 ) — (1,895 ) — (1,895 ) Amortization of DAC and VOBA 775 80 11 164 1,030 662 261 1 1,954 (32 ) 1,922 Amortization of negative VOBA — — — (1 ) (1 ) (164 ) (8 ) — (173 ) (19 ) (192 ) Interest expense on debt (1 ) — 2 — 1 — — 603 604 2 606 Other expenses 2,396 1,345 254 844 4,839 1,773 751 319 7,682 9 7,691 Total expenses 8,581 9,068 2,768 2,296 22,713 4,818 1,307 957 29,795 909 30,704 Provision for income tax expense (benefit) 557 251 411 52 1,271 207 18 (363 ) 1,133 (243 ) 890 Operating earnings $ 1,343 $ 459 $ 775 $ 247 $ 2,824 $ 752 $ 120 $ (232 ) 3,464 Adjustments to: Total revenues 484 Total expenses (909 ) Provision for income tax (expense) benefit 243 Net income (loss) $ 3,282 $ 3,282 The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at: June 30, 2016 December 31, 2015 (In millions) Retail $ 364,611 $ 347,257 Group, Voluntary & Worksite Benefits 51,721 46,476 Corporate Benefit Funding 236,311 225,015 Latin America 68,971 65,266 Asia 131,537 113,895 EMEA 27,007 26,767 Corporate & Other 62,409 53,257 Total $ 942,567 $ 877,933 |
Insurance (Tables)
Insurance (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Insurance [Abstract] | |
Guarantees related to Annuity, Universal and Variable Life Contracts | Information regarding the Company’s guarantee exposure, which includes direct and assumed business, but excludes offsets from hedging or ceded reinsurance, if any, was as follows at: June 30, 2016 December 31, 2015 In the Event of Death At Annuitization In the Event of Death At Annuitization (Dollars in millions) Annuity Contracts (1): Variable Annuity Guarantees: Total account value (2), (3) $ 180,789 $ 91,042 $ 181,413 $ 91,240 Separate account value $ 151,174 $ 87,414 $ 151,901 $ 87,841 Net amount at risk (2) $ 9,916 (4 ) $ 4,150 (5 ) $ 10,339 (4 ) $ 2,762 (5 ) Average attained age of contractholders 66 years 66 years 66 years 66 years Other Annuity Guarantees: Total account value (3) N/A $ 1,514 N/A $ 1,560 Net amount at risk N/A $ 401 (6 ) N/A $ 422 (6 ) Average attained age of contractholders N/A 51 years N/A 51 years June 30, 2016 December 31, 2015 Secondary Guarantees Paid-Up Guarantees Secondary Guarantees Paid-Up Guarantees (Dollars in millions) Universal and Variable Life Contracts (1): Total account value (3) $ 17,273 $ 3,408 $ 17,211 $ 3,461 Net amount at risk (7) $ 175,990 $ 18,514 $ 175,958 $ 19,047 Average attained age of policyholders 57 years 62 years 57 years 62 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. (3) Includes the contractholder’s investments in the general account and separate account, if applicable. (4) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. (5) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved. (6) Defined as either the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date or the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. These amounts represent the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date. (7) Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date. |
Closed Block (Tables)
Closed Block (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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: June 30, 2016 December 31, 2015 (In millions) Closed Block Liabilities Future policy benefits $ 40,976 $ 41,278 Other policy-related balances 240 249 Policyholder dividends payable 491 468 Policyholder dividend obligation 3,343 1,783 Other liabilities 726 380 Total closed block liabilities 45,776 44,158 Assets Designated to the Closed Block Investments: Fixed maturity securities available-for-sale, at estimated fair value 29,404 27,556 Equity securities available-for-sale, at estimated fair value 110 111 Mortgage loans 5,825 6,022 Policy loans 4,558 4,642 Real estate and real estate joint ventures 566 462 Other invested assets 1,106 1,066 Total investments 41,569 39,859 Cash and cash equivalents 220 236 Accrued investment income 463 474 Premiums, reinsurance and other receivables 51 56 Current income tax recoverable — 11 Deferred income tax assets 200 234 Total assets designated to the closed block 42,503 40,870 Excess of closed block liabilities over assets designated to the closed block 3,273 3,288 Amounts included in accumulated other comprehensive income (loss) (“AOCI”) Unrealized investment gains (losses), net of income tax 2,435 1,382 Unrealized gains (losses) on derivatives, net of income tax 100 76 Allocated to policyholder dividend obligation, net of income tax (2,173 ) (1,159 ) Total amounts included in AOCI 362 299 Maximum future earnings to be recognized from closed block assets and liabilities $ 3,635 $ 3,587 |
Closed block policyholder dividend obligation | Information regarding the closed block policyholder dividend obligation was as follows: Six Months Year (In millions) Balance, beginning of period $ 1,783 $ 3,155 Change in unrealized investment and derivative gains (losses) 1,560 (1,372 ) Balance, end of period $ 3,343 $ 1,783 |
Closed block revenues and expenses | Information regarding the closed block revenues and expenses was as follows: Three Months Six Months 2016 2015 2016 2015 (In millions) Revenues Premiums $ 444 $ 457 $ 861 $ 887 Net investment income 469 498 949 1,013 Net investment gains (losses) 12 2 (16 ) 1 Net derivative gains (losses) 4 (13 ) (7 ) 12 Total revenues 929 944 1,787 1,913 Expenses Policyholder benefits and claims 632 643 1,242 1,251 Policyholder dividends 246 244 491 484 Other expenses 35 36 67 73 Total expenses 913 923 1,800 1,808 Revenues, net of expenses before provision for income tax expense (benefit) 16 21 (13 ) 105 Provision for income tax expense (benefit) 6 8 (5 ) 37 Revenues, net of expenses and provision for income tax expense (benefit) $ 10 $ 13 $ (8 ) $ 68 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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”), asset-backed securities (“ABS”) and commercial mortgage-backed securities (“CMBS”) (collectively, “Structured Securities”). June 30, 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 $ 95,218 $ 10,302 $ 905 $ — $ 104,615 $ 96,466 $ 6,583 $ 2,255 $ — $ 100,794 U.S. government and agency 59,591 10,167 21 — 69,737 56,499 5,373 226 — 61,646 Foreign corporate 56,813 3,865 1,466 — 59,212 56,003 3,019 1,822 2 57,198 Foreign government 52,293 10,113 145 — 62,261 45,451 5,269 221 — 50,499 RMBS 43,223 1,790 364 51 44,598 37,914 1,366 424 59 38,797 State and political subdivision 14,403 3,024 11 6 17,410 13,723 1,795 67 10 15,441 ABS 16,689 141 309 3 16,518 14,498 131 229 6 14,394 CMBS (1) 12,591 660 95 (1 ) 13,157 12,410 347 125 (1 ) 12,633 Total fixed maturity securities $ 350,821 $ 40,062 $ 3,316 $ 59 $ 387,508 $ 332,964 $ 23,883 $ 5,369 $ 76 $ 351,402 Equity securities: Common stock $ 2,013 $ 431 $ 18 $ — $ 2,426 $ 1,962 $ 397 $ 107 $ — $ 2,252 Non-redeemable preferred stock 901 70 64 — 907 1,035 85 51 — 1,069 Total equity securities $ 2,914 $ 501 $ 82 $ — $ 3,333 $ 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 June 30, 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).” |
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 June 30, 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 $ 13,404 $ 80,755 $ 69,842 $ 114,317 $ 72,503 $ 350,821 Estimated fair value $ 13,499 $ 85,064 $ 74,476 $ 140,196 $ 74,273 $ 387,508 |
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. June 30, 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 (Dollars in millions) Fixed maturity securities: U.S. corporate $ 7,932 $ 394 $ 5,581 $ 511 $ 27,526 $ 1,629 $ 3,762 $ 626 U.S. government and agency 1,026 3 164 18 19,628 222 298 4 Foreign corporate 8,135 585 6,477 881 14,447 911 5,251 913 Foreign government 1,298 83 807 62 3,530 166 429 55 RMBS 5,221 183 3,033 232 13,467 287 2,431 196 State and political subdivision 172 3 89 14 1,618 55 168 22 ABS 5,136 176 4,555 136 7,329 124 2,823 111 CMBS 900 45 982 49 4,876 81 637 43 Total fixed maturity securities $ 29,820 $ 1,472 $ 21,688 $ 1,903 $ 92,421 $ 3,475 $ 15,799 $ 1,970 Equity securities: Common stock $ 114 $ 18 $ 7 $ — $ 203 $ 105 $ 20 $ 2 Non-redeemable preferred stock 50 6 168 58 79 2 200 49 Total equity securities $ 164 $ 24 $ 175 $ 58 $ 282 $ 107 $ 220 $ 51 Total number of securities in an unrealized loss position 2,783 1,965 6,366 1,489 |
Disclosure of Mortgage Loans Net of Valuation Allowance | Mortgage loans are summarized as follows at: June 30, 2016 December 31, 2015 Carrying Value % of Total Carrying Value % of Total (Dollars in millions) Mortgage loans: Commercial $ 45,165 65.1 % $ 44,012 65.6 % Agricultural 13,434 19.4 13,188 19.6 Residential 10,659 15.4 9,734 14.5 Subtotal (1) 69,258 99.9 66,934 99.7 Valuation allowances (467 ) (0.7 ) (318 ) (0.5 ) Subtotal mortgage loans, net 68,791 99.2 66,616 99.2 Residential — FVO 449 0.6 314 0.5 Commercial mortgage loans held by CSEs — FVO 159 0.2 172 0.3 Total mortgage loans, net $ 69,399 100.0 % $ 67,102 100.0 % __________________ (1) Purchases of mortgage loans were $1.2 billion and $1.4 billion for the three months and six months ended June 30, 2016 , respectively, and $785 million and $2.2 billion for the three months and six months ended June 30, 2015 , respectively. |
Disclosure of mortgage loans held-for-investment and valuation allowances by method of evaluation for credit loss | Mortgage loans by portfolio segment, by method of evaluation of credit loss, impaired mortgage loans including those modified in a troubled debt restructuring, and the related valuation allowances, were as follows at: Evaluated Individually for Credit Losses Evaluated Collectively for Credit Losses Impaired Loans Impaired Loans with a Valuation Allowance Impaired Loans without a Valuation Allowance Unpaid Principal Balance Recorded Investment Valuation Unpaid Principal Balance Recorded Recorded Valuation Carrying (In millions) June 30, 2016 Commercial $ 176 $ 157 $ 143 $ 12 $ 12 $ 44,996 $ 224 $ 26 Agricultural 16 13 1 39 38 13,383 40 50 Residential — — — 205 189 10,470 59 189 Total $ 192 $ 170 $ 144 $ 256 $ 239 $ 68,849 $ 323 $ 265 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 |
Allowance for Loan and Lease Losses, Provision for Loss, Net | The changes in the valuation allowance, by portfolio segment, were as follows: Six 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) 150 1 7 158 4 2 23 29 Charge-offs, net of recoveries — (2 ) (7 ) (9 ) — — (9 ) (9 ) Balance, end of period $ 367 $ 41 $ 59 $ 467 $ 228 $ 41 $ 56 $ 325 |
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 June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 (In millions) Commercial $ — $ 2 $ — $ — Agricultural 118 103 39 46 Residential 333 326 320 318 Total $ 451 $ 431 $ 359 $ 364 |
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: June 30, 2016 December 31, 2015 (In millions) Fixed maturity securities $ 36,633 $ 18,164 Fixed maturity securities with noncredit OTTI losses included in AOCI (59 ) (76 ) Total fixed maturity securities 36,574 18,088 Equity securities 558 422 Derivatives 3,766 2,350 Other 333 287 Subtotal 41,231 21,147 Amounts allocated from: Future policy benefits (4,410 ) (163 ) DAC and VOBA related to noncredit OTTI losses recognized in AOCI (2 ) — DAC, VOBA and DSI (2,380 ) (1,273 ) Policyholder dividend obligation (3,343 ) (1,783 ) Subtotal (10,135 ) (3,219 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI 23 27 Deferred income tax benefit (expense) (10,473 ) (6,151 ) Net unrealized investment gains (losses) 20,646 11,804 Net unrealized investment gains (losses) attributable to noncontrolling interests (11 ) (31 ) Net unrealized investment gains (losses) attributable to MetLife, Inc. $ 20,635 $ 11,773 The changes in net unrealized investment gains (losses) were as follows: Six Months (In millions) Balance, beginning of period $ 11,773 Fixed maturity securities on which noncredit OTTI losses have been recognized 17 Unrealized investment gains (losses) during the period 20,067 Unrealized investment gains (losses) relating to: Future policy benefits (4,247 ) DAC and VOBA related to noncredit OTTI losses recognized in AOCI (2 ) DAC, VOBA and DSI (1,107 ) Policyholder dividend obligation (1,560 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI (4 ) Deferred income tax benefit (expense) (4,322 ) Net unrealized investment gains (losses) 20,615 Net unrealized investment gains (losses) attributable to noncontrolling interests 20 Balance, end of period $ 20,635 Change in net unrealized investment gains (losses) $ 8,842 Change in net unrealized investment gains (losses) attributable to noncontrolling interests 20 Change in net unrealized investment gains (losses) attributable to MetLife, Inc. $ 8,862 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block] | The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows: Six Months Year (In millions) Balance, beginning of period $ (76 ) $ (112 ) Noncredit OTTI losses and subsequent changes recognized 6 6 Securities sold with previous noncredit OTTI loss 23 125 Subsequent changes in estimated fair value (12 ) (95 ) Balance, end of period $ (59 ) $ (76 ) |
Securities Lending | Elements of the securities lending program are presented below at: June 30, 2016 December 31, 2015 (In millions) Securities on loan: (1) Amortized cost $ 26,471 $ 27,223 Estimated fair value $ 31,392 $ 29,646 Cash collateral on deposit from counterparties (2) $ 32,006 $ 30,197 Security collateral on deposit from counterparties (3) $ 198 $ 50 Reinvestment portfolio — estimated fair value $ 32,330 $ 30,258 __________________ (1) Included within fixed maturity securities, short-term investments and cash equivalents. At June 30, 2016 , both amortized cost and estimated fair value also included $106 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: June 30, 2016 Remaining Tenor of Securities Lending Agreements Open (1) 1 Month or Less 1 to 6 Months Total % of Total (Dollars in millions) Cash collateral liability by loaned security type: U.S. government and agency $ 8,379 $ 9,517 $ 11,514 $ 29,410 91.9 % Agency RMBS — — 1,265 1,265 4.0 Foreign government — 911 — 911 2.8 U.S. corporate 7 401 — 408 1.3 Foreign corporate — 12 — 12 — Total $ 8,386 $ 10,841 $ 12,779 $ 32,006 100 % December 31, 2015 Remaining Tenor of Securities Lending Agreements Open (1) 1 Month or Less 1 to 6 Months Total % of Total (Dollars 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. |
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: June 30, 2016 December 31, 2015 (In millions) Invested assets on deposit (regulatory deposits) $ 10,353 $ 9,089 Invested assets held in trust (collateral financing arrangements and reinsurance agreements) 11,767 10,443 Invested assets pledged as collateral (1) 28,606 23,145 Total invested assets on deposit, held in trust and pledged as collateral $ 50,726 $ 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 ). |
The Components of Net Investment Income | The components of net investment income were as follows: Three Months Six Months 2016 2015 2016 2015 (In millions) Investment income: Fixed maturity securities $ 3,564 $ 3,672 $ 7,218 $ 7,213 Equity securities 33 35 70 66 FVO and trading securities — Actively traded and FVO general account securities (1) 10 2 16 39 Mortgage loans 851 801 1,658 1,531 Policy loans 147 151 296 303 Real estate and real estate joint ventures 149 323 306 534 Other limited partnership interests 120 250 166 465 Cash, cash equivalents and short-term investments 43 37 83 72 Operating joint ventures 11 8 23 16 Other 51 30 92 152 Subtotal 4,979 5,309 9,928 10,391 Less: Investment expenses 285 313 581 615 Subtotal, net 4,694 4,996 9,347 9,776 FVO and trading securities — FVO contractholder-directed unit-linked investments (1) 191 (55 ) 94 622 FVO CSEs — interest income: Commercial mortgage loans 2 5 5 9 Securities — 1 — 1 Subtotal 193 (49 ) 99 632 Net investment income $ 4,887 $ 4,947 $ 9,446 $ 10,408 __________________ (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 Six Months 2016 2015 2016 2015 (In millions) Actively traded and FVO general account securities $ (1 ) $ (38 ) $ (1 ) $ (40 ) FVO contractholder-directed unit-linked investments $ 80 $ (288 ) $ (120 ) $ 261 |
The components of net investment gains (losses) | The components of net investment gains (losses) were as follows: Three Months Six Months 2016 2015 2016 2015 (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 ) Industrial (8 ) — (79 ) (2 ) Communications — — (3 ) — Total U.S. and foreign corporate securities (8 ) — (82 ) (5 ) RMBS (4 ) (2 ) (8 ) (15 ) ABS (2 ) — (2 ) — OTTI losses on fixed maturity securities recognized in earnings (14 ) (2 ) (92 ) (20 ) Fixed maturity securities — net gains (losses) on sales and disposals 165 117 263 268 Total gains (losses) on fixed maturity securities 151 115 171 248 Total gains (losses) on equity securities: Total OTTI losses recognized — by sector: Common stock (16 ) (9 ) (67 ) (9 ) OTTI losses on equity securities recognized in earnings (16 ) (9 ) (67 ) (9 ) Equity securities — net gains (losses) on sales and disposals 13 17 19 25 Total gains (losses) on equity securities (3 ) 8 (48 ) 16 Mortgage loans (98 ) (9 ) (162 ) (52 ) Real estate and real estate joint ventures 45 (33 ) 47 (6 ) Other limited partnership interests (14 ) (9 ) (41 ) 7 Other (57 ) (27 ) (75 ) (4 ) Subtotal 24 45 (108 ) 209 FVO CSEs: Commercial mortgage loans (1 ) 1 — (2 ) Securities — — 1 — Long-term debt — related to commercial mortgage loans — 1 — 2 Non-investment portfolio gains (losses) 243 (180 ) 388 (56 ) Subtotal 242 (178 ) 389 (56 ) Total net investment gains (losses) $ 266 $ (133 ) $ 281 $ 153 |
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. Three Months 2016 2015 2016 2015 Fixed Maturity Securities Equity Securities (In millions) Proceeds $ 26,267 $ 29,321 $ 28 $ 103 Gross investment gains $ 283 $ 338 $ 14 $ 20 Gross investment losses (118 ) (221 ) (1 ) (3 ) OTTI losses (14 ) (2 ) (16 ) (9 ) Net investment gains (losses) $ 151 $ 115 $ (3 ) $ 8 Six Months 2016 2015 2016 2015 Fixed Maturity Securities Equity Securities (In millions) Proceeds $ 58,261 $ 59,327 $ 87 $ 156 Gross investment gains $ 715 $ 676 $ 24 $ 35 Gross investment losses (452 ) (408 ) (5 ) (10 ) OTTI losses (92 ) (20 ) (67 ) (9 ) Net investment gains (losses) $ 171 $ 248 $ (48 ) $ 16 |
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 Six Months 2016 2015 2016 2015 (In millions) Balance, beginning of period $ 270 $ 357 $ 277 $ 357 Additions: Initial impairments — credit loss OTTI on securities not previously impaired — — — 2 Additional impairments — credit loss OTTI on securities previously impaired 6 2 8 13 Reductions: Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI (17 ) (78 ) (26 ) (91 ) Securities impaired to net present value of expected future cash flows (1 ) — (1 ) — Increase in cash flows — accretion of previous credit loss OTTI — (1 ) — (1 ) Balance, end of period $ 258 $ 280 $ 258 $ 280 |
Variable Interest Entity, Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities [Table Text Block] | 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 June 30, 2016 and December 31, 2015 . June 30, 2016 December 31, 2015 Total Assets Total Liabilities Total Assets Total Liabilities (In millions) MRSC (collateral financing arrangement (primarily securities)) (1) $ 3,559 $ — $ 3,374 $ — Operating joint venture (2) — — 2,465 2,079 CSEs (assets (primarily loans) and liabilities (primarily debt)) (3) 172 47 186 62 Other investments (4) 67 — 76 — Total $ 3,798 $ 47 $ 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 $106 million and $105 million at estimated fair value at June 30, 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 $2 million and $3 million for the three months and six months ended June 30, 2016 , respectively, and $1 million and $2 million for the three months and six months ended June 30, 2015 , respectively. (4) Other investments is primarily comprised of other invested assets and other limited partnership interests. |
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: June 30, 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 (2) $ 74,273 $ 74,273 $ 65,824 $ 65,824 U.S. and foreign corporate 3,173 3,173 3,261 3,261 Other limited partnership interests 6,267 10,470 5,186 7,074 Other invested assets 2,131 2,747 1,604 2,161 FVO and trading securities 546 546 586 586 Real estate joint ventures 118 148 65 82 Other (3) 117 117 71 71 Total $ 86,625 $ 91,474 $ 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 $162 million and $179 million at June 30, 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 is comprised of mortgage loans, non-redeemable preferred stock and a loan receivable. |
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 Total Debt Service Coverage Ratios % of Total > 1.20x 1.00x - 1.20x < 1.00x Total (Dollars in millions) June 30, 2016 Loan-to-value ratios: Less than 65% $ 39,346 $ 1,095 $ 670 $ 41,111 91.0 % $ 43,055 91.6 % 65% to 75% 3,330 76 171 3,577 7.9 3,627 7.7 76% to 80% 26 — 2 28 0.1 25 0.1 Greater than 80% 384 53 12 449 1.0 295 0.6 Total $ 43,086 $ 1,224 $ 855 $ 45,165 100 % $ 47,002 100 % 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 % |
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: June 30, 2016 December 31, 2015 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Loan-to-value ratios: Less than 65% $ 12,711 94.6 % $ 12,399 94.0 % 65% to 75% 656 4.9 710 5.4 76% to 80% 20 0.1 21 0.2 Greater than 80% 47 0.4 58 0.4 Total $ 13,434 100.0 % $ 13,188 100.0 % |
Residential | |
Mortgage Loans on Real Estate [Line Items] | |
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of residential mortgage loans was as follows at: June 30, 2016 December 31, 2015 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Performance indicators: Performing $ 10,326 96.9 % $ 9,408 96.7 % Nonperforming 333 3.1 326 3.3 Total $ 10,659 100.0 % $ 9,734 100.0 % |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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: June 30, 2016 December 31, 2015 Primary Underlying Risk Exposure Gross Estimated Fair Value Gross Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments: Fair value hedges: Interest rate swaps Interest rate $ 5,435 $ 2,831 $ 20 $ 5,528 $ 2,215 $ 12 Foreign currency swaps Foreign currency exchange rate 1,221 26 155 2,154 62 159 Foreign currency forwards Foreign currency exchange rate 1,485 186 — 1,685 — 52 Subtotal 8,141 3,043 175 9,367 2,277 223 Cash flow hedges: Interest rate swaps Interest rate 2,332 695 — 2,190 487 — Interest rate forwards Interest rate 1,610 56 2 105 23 — Foreign currency swaps Foreign currency exchange rate 26,256 2,326 1,767 23,661 1,303 1,803 Subtotal 30,198 3,077 1,769 25,956 1,813 1,803 Foreign operations hedges: Foreign currency forwards Foreign currency exchange rate 1,466 4 61 3,916 63 12 Currency options Foreign currency exchange rate 8,246 16 199 7,569 205 36 Subtotal 9,712 20 260 11,485 268 48 Total qualifying hedges 48,051 6,140 2,204 46,808 4,358 2,074 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 74,587 9,659 3,472 89,336 5,111 2,247 Interest rate floors Interest rate 15,201 407 47 23,837 311 48 Interest rate caps Interest rate 79,030 36 2 68,928 105 3 Interest rate futures Interest rate 7,969 2 12 5,808 4 7 Interest rate options Interest rate 23,156 2,417 1 30,234 1,177 30 Interest rate forwards Interest rate 128 11 — 43 1 — Interest rate total return swaps Interest rate 2,775 172 — — — — Synthetic GICs Interest rate 3,962 — — 4,216 — — Foreign currency swaps Foreign currency exchange rate 12,655 1,120 522 11,081 766 431 Foreign currency forwards Foreign currency exchange rate 17,822 1,083 260 11,724 154 220 Currency futures Foreign currency exchange rate 1,009 — 2 930 — — Currency options Foreign currency exchange rate 6,137 218 6 9,590 466 189 Credit default swaps — purchased Credit 1,823 16 37 1,870 28 34 Credit default swaps — written Credit 11,183 106 10 10,311 78 13 Equity futures Equity market 12,649 2 194 7,206 63 18 Equity index options Equity market 55,075 1,906 1,218 55,682 1,542 1,041 Equity variance swaps Equity market 23,608 209 682 23,437 195 636 Equity total return swaps Equity market 4,001 59 35 3,803 47 58 Total non-designated or nonqualifying derivatives 352,770 17,423 6,500 358,036 10,048 4,975 Total $ 400,821 $ 23,563 $ 8,704 $ 404,844 $ 14,406 $ 7,049 The following table presents earned income on derivatives: Three Months Six Months 2016 2015 2016 2015 (In millions) Qualifying hedges: Net investment income $ 73 $ 45 $ 130 $ 103 Interest credited to policyholder account balances 1 13 7 15 Other expenses (4 ) 1 (6 ) (2 ) Nonqualifying hedges: Net investment income (1 ) (1 ) (1 ) (2 ) Net derivative gains (losses) 248 240 531 501 Policyholder benefits and claims 6 4 11 8 Total $ 323 $ 302 $ 672 $ 623 |
Components of Net Derivatives Gains (Losses) | The components of net derivative gains (losses) were as follows: Three Months Six Months 2016 2015 2016 2015 (In millions) Freestanding derivatives and hedging gains (losses) (1) $ 2,525 $ (1,733 ) $ 5,029 $ (885 ) Embedded derivatives gains (losses) (4,624 ) 821 (5,793 ) 794 Total net derivative gains (losses) $ (2,099 ) $ (912 ) $ (764 ) $ (91 ) __________________ (1) Includes foreign currency transaction gains (losses) on hedged items in cash flow and nonqualifying hedging relationships, which are not presented elsewhere in this note. |
Amount and location of gains (losses) recognized in income for derivatives that are not designated or qualifying as hedging instruments | The following table presents the amount and location of gains (losses) recognized in income for derivatives that were not designated or not qualifying as hedging instruments: Net Derivative Gains (Losses) Net Policyholder (In millions) Three Months Ended June 30, 2016 Interest rate derivatives $ 1,657 $ — $ 55 Foreign currency exchange rate derivatives 1,196 — (11 ) Credit derivatives — purchased (22 ) (10 ) — Credit derivatives — written 3 9 — Equity derivatives (213 ) (3 ) (65 ) Total $ 2,621 $ (4 ) $ (21 ) Three Months Ended June 30, 2015 Interest rate derivatives $ (1,459 ) $ — $ (18 ) Foreign currency exchange rate derivatives (590 ) — — Credit derivatives — purchased 4 1 — Credit derivatives — written (34 ) — — Equity derivatives (186 ) (3 ) (27 ) Total $ (2,265 ) $ (2 ) $ (45 ) Six Months Ended June 30, 2016 Interest rate derivatives $ 3,629 $ — $ 97 Foreign currency exchange rate derivatives 1,719 — (12 ) Credit derivatives — purchased (27 ) — — Credit derivatives — written (3 ) — — Equity derivatives (260 ) (14 ) (33 ) Total $ 5,058 $ (14 ) $ 52 Six Months Ended June 30, 2015 Interest rate derivatives $ (907 ) $ — $ (7 ) Foreign currency exchange rate derivatives 79 — — Credit derivatives — purchased (7 ) — — Credit derivatives — written (31 ) 1 — Equity derivatives (648 ) (7 ) (126 ) Total $ (1,514 ) $ (6 ) $ (133 ) __________________ (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 Hedging Relationships Hedged Items in Fair Value Hedging Relationships Net Derivative Gains (Losses) Recognized for Derivatives Net Derivative Gains (Losses) Recognized for Hedged Items Ineffectiveness Recognized in Net Derivative Gains (Losses) (In millions) Three Months Ended June 30, 2016 Interest rate swaps: Fixed maturity securities $ (3 ) $ — $ (3 ) Policyholder liabilities (1) 197 (200 ) (3 ) Foreign currency swaps: Foreign-denominated fixed maturity securities 7 (8 ) (1 ) Foreign-denominated policyholder account balances (2) (51 ) 48 (3 ) Foreign currency forwards: Foreign-denominated fixed maturity securities 137 (126 ) 11 Total $ 287 $ (286 ) $ 1 Three Months Ended June 30, 2015 Interest rate swaps: Fixed maturity securities $ 4 $ (2 ) $ 2 Policyholder liabilities (1) (366 ) 362 (4 ) Foreign currency swaps: Foreign-denominated fixed maturity securities (3 ) 5 2 Foreign-denominated policyholder account balances (2) 110 (112 ) (2 ) Foreign currency forwards: Foreign-denominated fixed maturity securities (81 ) 74 (7 ) Total $ (336 ) $ 327 $ (9 ) Six Months Ended June 30, 2016 Interest rate swaps: Fixed maturity securities $ (11 ) $ 7 $ (4 ) Policyholder liabilities (1) 543 (548 ) (5 ) Foreign currency swaps: Foreign-denominated fixed maturity securities 6 (6 ) — Foreign-denominated policyholder account balances (2) (26 ) 23 (3 ) Foreign currency forwards: Foreign-denominated fixed maturity securities 276 (254 ) 22 Total $ 788 $ (778 ) $ 10 Six Months Ended June 30, 2015 Interest rate swaps: Fixed maturity securities $ (1 ) $ 5 $ 4 Policyholder liabilities (1) (169 ) 164 (5 ) Foreign currency swaps: Foreign-denominated fixed maturity securities 7 (3 ) 4 Foreign-denominated policyholder account balances (2) (139 ) 133 (6 ) Foreign currency forwards: Foreign-denominated fixed maturity securities (98 ) 90 (8 ) Total $ (400 ) $ 389 $ (11 ) __________________ (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 (In millions) Three Months Ended June 30, 2016 Foreign currency forwards $ (104 ) Currency options (146 ) Total $ (250 ) Three Months Ended June 30, 2015 Foreign currency forwards $ 45 Currency options (2 ) Total $ 43 Six Months Ended June 30, 2016 Foreign currency forwards $ (335 ) Currency options (314 ) Total $ (649 ) Six Months Ended June 30, 2015 Foreign currency forwards $ 156 Currency options (43 ) Total $ 113 __________________ (1) During both the three months and six months ended June 30, 2016 and 2015 , 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: June 30, 2016 December 31, 2015 Rating Agency Designation of Referenced Credit Obligations (1) Estimated Fair Value of Credit Default Swaps Maximum Weighted Estimated Fair Value of Credit Default Swaps Maximum Weighted (Dollars in millions) Aaa/Aa/A Single name credit default swaps (corporate) $ 5 $ 529 3.2 $ 6 $ 661 2.5 Credit default swaps referencing indices 14 1,936 3.7 6 1,635 3.4 Subtotal 19 2,465 3.6 12 2,296 3.2 Baa Single name credit default swaps (corporate) 5 956 2.4 8 1,349 2.5 Credit default swaps referencing indices 66 7,471 4.9 37 5,863 4.8 Subtotal 71 8,427 4.6 45 7,212 4.4 Ba Single name credit default swaps (corporate) (1 ) 60 1.7 (2 ) 64 2.3 Credit default swaps referencing indices — 100 0.5 (1 ) 100 1.0 Subtotal (1 ) 160 0.9 (3 ) 164 1.5 B Single name credit default swaps (corporate) — — — — — — Credit default swaps referencing indices 7 131 4.1 11 639 4.9 Subtotal 7 131 4.1 11 639 4.9 Total $ 96 $ 11,183 4.3 $ 65 $ 10,311 4.1 __________________ (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) 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: June 30, 2016 December 31, 2015 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) $ 19,961 $ 6,710 $ 13,017 $ 5,848 OTC-cleared (1) 3,836 1,801 1,600 1,217 Exchange-traded 4 208 67 25 Total gross estimated fair value of derivatives (1) 23,801 8,719 14,684 7,090 Amounts offset on the consolidated balance sheets — — — — Estimated fair value of derivatives presented on the consolidated balance sheets (1) 23,801 8,719 14,684 7,090 Gross amounts not offset on the consolidated balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral (5,279 ) (5,279 ) (4,368 ) (4,368 ) OTC-cleared (1,788 ) (1,788 ) (1,200 ) (1,200 ) Exchange-traded (1 ) (1 ) (1 ) (1 ) Cash collateral: (3), (4) OTC-bilateral (11,291 ) — (6,140 ) (7 ) OTC-cleared (1,658 ) — (378 ) (10 ) Exchange-traded — (107 ) — (20 ) Securities collateral: (5) OTC-bilateral (3,109 ) (1,332 ) (2,078 ) (1,395 ) OTC-cleared — — — — Exchange-traded — (97 ) — (3 ) Net amount after application of master netting agreements and collateral $ 675 $ 115 $ 519 $ 86 __________________ (1) At June 30, 2016 and December 31, 2015 , derivative assets included income or expense accruals reported in accrued investment income or in other liabilities of $238 million and $278 million , respectively, and derivative liabilities included income or expense accruals reported in accrued investment income or in other liabilities of $15 million and $41 million , respectively. (2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. (3) Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. (4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At June 30, 2016 and December 31, 2015 , the Company received excess cash collateral of $792 million and $89 million , respectively, and provided excess cash collateral of $305 million and $204 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 June 30, 2016 , 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 June 30, 2016 and December 31, 2015 , the Company received excess securities collateral with an estimated fair value of $336 million and $100 million , respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At June 30, 2016 and December 31, 2015 , the Company provided excess securities collateral with an estimated fair value of $179 million and $150 million , respectively, for its OTC-bilateral derivatives, and $419 million and $315 million , respectively, for its OTC-cleared derivatives, and $343 million and $224 million , respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation. (6) See Note 6 for information regarding the Company’s gross and net payables and receivables under repurchase agreement transactions. |
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: June 30, 2016 December 31, 2015 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) $ 19,961 $ 6,710 $ 13,017 $ 5,848 OTC-cleared (1) 3,836 1,801 1,600 1,217 Exchange-traded 4 208 67 25 Total gross estimated fair value of derivatives (1) 23,801 8,719 14,684 7,090 Amounts offset on the consolidated balance sheets — — — — Estimated fair value of derivatives presented on the consolidated balance sheets (1) 23,801 8,719 14,684 7,090 Gross amounts not offset on the consolidated balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral (5,279 ) (5,279 ) (4,368 ) (4,368 ) OTC-cleared (1,788 ) (1,788 ) (1,200 ) (1,200 ) Exchange-traded (1 ) (1 ) (1 ) (1 ) Cash collateral: (3), (4) OTC-bilateral (11,291 ) — (6,140 ) (7 ) OTC-cleared (1,658 ) — (378 ) (10 ) Exchange-traded — (107 ) — (20 ) Securities collateral: (5) OTC-bilateral (3,109 ) (1,332 ) (2,078 ) (1,395 ) OTC-cleared — — — — Exchange-traded — (97 ) — (3 ) Net amount after application of master netting agreements and collateral $ 675 $ 115 $ 519 $ 86 __________________ (1) At June 30, 2016 and December 31, 2015 , derivative assets included income or expense accruals reported in accrued investment income or in other liabilities of $238 million and $278 million , respectively, and derivative liabilities included income or expense accruals reported in accrued investment income or in other liabilities of $15 million and $41 million , respectively. (2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. (3) Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. (4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At June 30, 2016 and December 31, 2015 , the Company received excess cash collateral of $792 million and $89 million , respectively, and provided excess cash collateral of $305 million and $204 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 June 30, 2016 , 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 June 30, 2016 and December 31, 2015 , the Company received excess securities collateral with an estimated fair value of $336 million and $100 million , respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At June 30, 2016 and December 31, 2015 , the Company provided excess securities collateral with an estimated fair value of $179 million and $150 million , respectively, for its OTC-bilateral derivatives, and $419 million and $315 million , respectively, for its OTC-cleared derivatives, and $343 million and $224 million , respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation. (6) See Note 6 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 Hedging Relationships Amount of Gains (Losses) Deferred in AOCI on Derivatives Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) Amount and Location (Effective Portion) (Effective Portion) (Ineffective Portion) Net Derivative Gains (Losses) Net Investment Income Other Expenses Net Derivative Gains (Losses) (In millions) Three Months Ended June 30, 2016 Interest rate swaps $ 140 $ 18 $ 4 $ — $ 1 Interest rate forwards 38 (1 ) 2 1 — Foreign currency swaps 622 (269 ) (1 ) — 4 Credit forwards — 3 — — — Total $ 800 $ (249 ) $ 5 $ 1 $ 5 Three Months Ended June 30, 2015 Interest rate swaps $ (269 ) $ 7 $ 3 $ — $ (1 ) Interest rate forwards (20 ) 1 1 — — Foreign currency swaps (106 ) 290 (1 ) 1 (2 ) Credit forwards — — 1 — — Total $ (395 ) $ 298 $ 4 $ 1 $ (3 ) Six Months Ended June 30, 2016 Interest rate swaps $ 353 $ 28 $ 7 $ — $ — Interest rate forwards 47 1 3 1 — Foreign currency swaps 1,096 37 (1 ) 1 2 Credit forwards — 3 — — — Total $ 1,496 $ 69 $ 9 $ 2 $ 2 Six Months Ended June 30, 2015 Interest rate swaps $ (95 ) $ 12 $ 6 $ — $ 2 Interest rate forwards (5 ) 4 2 1 — Foreign currency swaps (108 ) (277 ) (1 ) 1 2 Credit forwards — — 1 — — Total $ (208 ) $ (261 ) $ 8 $ 2 $ 4 |
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 MetLife, Inc. would be required to provide if there was a one-notch downgrade in MetLife, Inc.’s senior unsecured debt rating at the reporting date or if the Company’s credit or financial strength rating, as applicable, 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. June 30, 2016 December 31, 2015 Derivatives Derivatives Total Derivatives Subject to Credit- Contingent Provisions Derivatives Total (In millions) Estimated Fair Value of Derivatives in a Net Liability Position (1) $ 1,395 $ 34 $ 1,429 $ 1,270 $ 207 $ 1,477 Estimated Fair Value of Collateral Provided: Fixed maturity securities $ 1,449 $ 51 $ 1,500 $ 1,365 $ 174 $ 1,539 Cash $ — $ — $ — $ 4 $ 4 $ 8 Estimated Fair Value of Incremental Collateral Provided Upon: One-notch downgrade in the Company’s credit or financial strength rating, as applicable $ 1 $ — $ 1 $ 1 $ — $ 1 Downgrade in the Company’s credit or financial strength rating, as applicable, to a level that triggers full overnight collateralization or termination of the derivative position $ 1 $ — $ 1 $ 1 $ — $ 1 __________________ (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 Six Months 2016 2015 2016 2015 (In millions) Net derivative gains (losses) (1) $ (4,624 ) $ 821 $ (5,793 ) $ 794 Policyholder benefits and claims $ 60 $ (43 ) $ 105 $ (19 ) __________________ (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 $1.1 billion and $1.5 billion for the three months and six months ended June 30, 2016 , respectively, and ($100) million and ($31) million for the three months and six months ended June 30, 2015 , 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 June 30, 2016 December 31, 2015 (In millions) Net embedded derivatives within asset host contracts: Ceded guaranteed minimum benefits Premiums, reinsurance and other receivables $ 544 $ 356 Funds withheld on assumed reinsurance Other invested assets 64 35 Options embedded in debt or equity securities Investments (257 ) (220 ) Net embedded derivatives within asset host contracts $ 351 $ 171 Net embedded derivatives within liability host contracts: Direct guaranteed minimum benefits Policyholder account balances and Future policy benefits $ 5,582 $ (20 ) Assumed guaranteed minimum benefits Policyholder account balances 1,748 965 Funds withheld on ceded reinsurance Other liabilities 76 (14 ) Other Policyholder account balances 6 4 Net embedded derivatives within liability host contracts $ 7,412 $ 935 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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. June 30, 2016 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 97,323 $ 7,292 $ 104,615 U.S. government and agency 41,028 28,386 323 69,737 Foreign corporate — 52,794 6,418 59,212 Foreign government — 61,885 376 62,261 RMBS 4,164 35,172 5,262 44,598 State and political subdivision — 17,357 53 17,410 ABS — 15,712 806 16,518 CMBS — 12,525 632 13,157 Total fixed maturity securities 45,192 321,154 21,162 387,508 Equity securities 1,364 1,287 682 3,333 FVO and trading securities: Actively traded securities — 7 1 8 FVO general account securities 509 31 100 640 FVO contractholder-directed unit-linked investments 10,729 2,804 124 13,657 FVO securities held by CSEs — 3 6 9 Total FVO and trading securities 11,238 2,845 231 14,314 Short-term investments (1) 2,262 6,472 175 8,909 Mortgage loans: Residential mortgage loans — FVO — — 449 449 Commercial mortgage loans held by CSEs — FVO — 159 — 159 Total mortgage loans — 159 449 608 Other investments 91 58 — 149 Derivative assets: (2) Interest rate 2 16,056 228 16,286 Foreign currency exchange rate — 4,936 43 4,979 Credit — 107 15 122 Equity market 2 1,824 350 2,176 Total derivative assets 4 22,923 636 23,563 Net embedded derivatives within asset host contracts (3) — — 608 608 Separate account assets (4) 84,717 223,323 1,632 309,672 Total assets $ 144,868 $ 578,221 $ 25,575 $ 748,664 Liabilities Derivative liabilities: (2) Interest rate $ 12 $ 3,540 $ 4 $ 3,556 Foreign currency exchange rate 2 2,907 63 2,972 Credit — 47 — 47 Equity market 194 1,234 701 2,129 Total derivative liabilities 208 7,728 768 8,704 Net embedded derivatives within liability host contracts (3) — — 7,412 7,412 Long-term debt of CSEs — FVO — 35 12 47 Trading liabilities (5) — — — — Separate account liabilities (4) — 97 5 102 Total liabilities $ 208 $ 7,860 $ 8,197 $ 16,265 December 31, 2015 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 93,758 $ 7,036 $ 100,794 U.S. government and agency 37,660 23,986 — 61,646 Foreign corporate — 51,438 5,760 57,198 Foreign government — 49,643 856 50,499 RMBS — 34,088 4,709 38,797 State and political subdivision — 15,395 46 15,441 ABS — 12,731 1,663 14,394 CMBS — 11,889 744 12,633 Total fixed maturity securities 37,660 292,928 20,814 351,402 Equity securities 1,274 1,615 432 3,321 FVO and trading securities: Actively traded securities — 400 4 404 FVO general account securities 506 32 89 627 FVO contractholder-directed unit-linked investments 10,829 2,985 167 13,981 FVO securities held by CSEs — 2 10 12 Total FVO and trading securities 11,335 3,419 270 15,024 Short-term investments (1) 2,543 5,985 291 8,819 Mortgage loans: Residential mortgage loans — FVO — — 314 314 Commercial mortgage loans held by CSEs — FVO — 172 — 172 Total mortgage loans — 172 314 486 Other investments 109 53 — 162 Derivative assets: (2) Interest rate 4 9,405 25 9,434 Foreign currency exchange rate — 3,003 16 3,019 Credit — 99 7 106 Equity market 63 1,435 349 1,847 Total derivative assets 67 13,942 397 14,406 Net embedded derivatives within asset host contracts (3) — — 391 391 Separate account assets (4) 77,080 222,814 1,704 301,598 Total assets $ 130,068 $ 540,928 $ 24,613 $ 695,609 Liabilities Derivative liabilities: (2) Interest rate $ 7 $ 2,340 $ — $ 2,347 Foreign currency exchange rate — 2,754 148 2,902 Credit — 45 2 47 Equity market 18 1,077 658 1,753 Total derivative liabilities 25 6,216 808 7,049 Net embedded derivatives within liability host contracts (3) — — 935 935 Long-term debt of CSEs — FVO — 49 11 60 Trading liabilities (5) 103 50 — 153 Separate account liabilities (4) — — — — Total liabilities $ 128 $ 6,315 $ 1,754 $ 8,197 __________________ (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 within premiums, reinsurance and other receivables and other invested assets 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 June 30, 2016 and December 31, 2015 , debt and equity securities also included embedded derivatives of ($257) million and ($220) 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. Separate account liabilities presented in the tables above represent derivative liabilities. (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: June 30, 2016 December 31, 2015 Impact of Valuation Significant Range Weighted Range Weighted Fixed maturity securities (3) U.S. corporate and foreign corporate • Matrix pricing • Delta spread adjustments (4) (269) - 545 (6) (65) - 240 39 Decrease • Market pricing • Quoted prices (5) — - 884 162 — - 780 156 Increase • Consensus pricing • Offered quotes (5) 6 - 121 97 68 - 121 98 Increase Foreign government • Market pricing • Quoted prices (5) 95 - 124 104 96 - 135 113 Increase RMBS • Market pricing • Quoted prices (5) 16 - 128 90 19 - 292 92 Increase (6) ABS • Market pricing • Quoted prices (5) 5 - 129 100 16 - 109 100 Increase (6) • Consensus pricing • Offered quotes (5) 93 - 107 100 66 - 105 99 Increase (6) Derivatives Interest rate • Present value techniques • Swap yield (7) 147 - 254 307 - 317 Increase (8) • Repurchase rates (9) (16) - 3 Decrease (8) Foreign currency exchange rate • Present value techniques • Swap yield (7) 95 - 328 28 - 381 Increase (8) Credit • Present value techniques • Credit spreads (10) 97 - 100 98 - 100 Decrease (8) • Consensus pricing • Offered quotes (11) Equity market • Present value techniques or option pricing models • Volatility (12) 14% - 35% 15% - 36% Increase (8) • Correlation (13) 70% - 70% 70% - 70% Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing techniques • Mortality rates: Ages 0 - 40 0% - 0.21% 0% - 0.21% Decrease (14) Ages 41 - 60 0.01% - 0.78% 0.01% - 0.78% Decrease (14) Ages 61 - 115 0% - 100% 0.04% - 100% Decrease (14) • Lapse rates: Durations 1 - 10 0.25% - 100% 0.25% - 100% Decrease (15) Durations 11 - 20 2% - 100% 2% - 100% Decrease (15) Durations 21 - 116 1.25% - 100% 1% - 100% Decrease (15) • Utilization rates 0% - 25% 0% - 25% Increase (16) • Withdrawal rates 0% - 20% 0% - 20% (17) • Long-term equity volatilities 9.81% - 33% 8.79% - 33% Increase (18) • Nonperformance risk spread (0.02)% - 2.16% (0.47)% - 1.31% Decrease (19) __________________ (1) The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. (2) The impact of a decrease in input would have the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions. (3) Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. (4) Range and weighted average are presented in 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 curves are utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (8) Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. (9) Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points. (10) 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. (11) At both June 30, 2016 and December 31, 2015 , independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value. (12) 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. (13) 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. (14) 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. (15) 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. (16) 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. (17) 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. (18) 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. (19) 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: June 30, 2016 December 31, 2015 Impact of Valuation Significant Range Weighted Range Weighted Fixed maturity securities (3) U.S. corporate and foreign corporate • Matrix pricing • Delta spread adjustments (4) (269) - 545 (6) (65) - 240 39 Decrease • Market pricing • Quoted prices (5) — - 884 162 — - 780 156 Increase • Consensus pricing • Offered quotes (5) 6 - 121 97 68 - 121 98 Increase Foreign government • Market pricing • Quoted prices (5) 95 - 124 104 96 - 135 113 Increase RMBS • Market pricing • Quoted prices (5) 16 - 128 90 19 - 292 92 Increase (6) ABS • Market pricing • Quoted prices (5) 5 - 129 100 16 - 109 100 Increase (6) • Consensus pricing • Offered quotes (5) 93 - 107 100 66 - 105 99 Increase (6) Derivatives Interest rate • Present value techniques • Swap yield (7) 147 - 254 307 - 317 Increase (8) • Repurchase rates (9) (16) - 3 Decrease (8) Foreign currency exchange rate • Present value techniques • Swap yield (7) 95 - 328 28 - 381 Increase (8) Credit • Present value techniques • Credit spreads (10) 97 - 100 98 - 100 Decrease (8) • Consensus pricing • Offered quotes (11) Equity market • Present value techniques or option pricing models • Volatility (12) 14% - 35% 15% - 36% Increase (8) • Correlation (13) 70% - 70% 70% - 70% Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing techniques • Mortality rates: Ages 0 - 40 0% - 0.21% 0% - 0.21% Decrease (14) Ages 41 - 60 0.01% - 0.78% 0.01% - 0.78% Decrease (14) Ages 61 - 115 0% - 100% 0.04% - 100% Decrease (14) • Lapse rates: Durations 1 - 10 0.25% - 100% 0.25% - 100% Decrease (15) Durations 11 - 20 2% - 100% 2% - 100% Decrease (15) Durations 21 - 116 1.25% - 100% 1% - 100% Decrease (15) • Utilization rates 0% - 25% 0% - 25% Increase (16) • Withdrawal rates 0% - 20% 0% - 20% (17) • Long-term equity volatilities 9.81% - 33% 8.79% - 33% Increase (18) • Nonperformance risk spread (0.02)% - 2.16% (0.47)% - 1.31% Decrease (19) __________________ (1) The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. (2) The impact of a decrease in input would have the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions. (3) Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. (4) Range and weighted average are presented in 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 curves are utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (8) Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. (9) Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points. (10) 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. (11) At both June 30, 2016 and December 31, 2015 , independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value. (12) 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. (13) 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. (14) 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. (15) 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. (16) 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. (17) 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. (18) 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. (19) 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 Corporate (1) U.S. Government and Agency Foreign Structured Securities State and Equity Securities FVO and Trading Securities (2) (In millions) Three Months Ended June 30, 2016 Balance, beginning of period $ 12,792 $ 211 $ 712 $ 6,652 $ 36 $ 669 $ 249 Total realized/unrealized gains (losses) included in net income (loss) (3) (4) (5 ) — 4 30 — — (3 ) Total realized/unrealized gains (losses) included in AOCI 339 7 2 5 — 11 — Purchases (5) 852 105 65 940 17 19 11 Sales (5) (306 ) — (19 ) (478 ) — (17 ) (19 ) Issuances (5) — — — — — — — Settlements (5) — — — — — — — Transfers into Level 3 (6) 490 — 103 12 — 2 6 Transfers out of Level 3 (6) (452 ) — (491 ) (461 ) — (2 ) (13 ) Balance, end of period $ 13,710 $ 323 $ 376 $ 6,700 $ 53 $ 682 $ 231 Three Months Ended June 30, 2015 Balance, beginning of period $ 13,729 $ — $ 1,384 $ 7,642 $ 2 $ 338 $ 521 Total realized/unrealized gains (losses) included in net income (loss) (3) (4) 30 — 4 43 — 2 (3 ) Total realized/unrealized gains (losses) included in AOCI (407 ) — (27 ) 13 — (2 ) — Purchases (5) 607 55 88 1,218 55 42 74 Sales (5) (538 ) — (20 ) (448 ) — (20 ) (126 ) Issuances (5) — — — — — — — Settlements (5) — — — — — — — Transfers into Level 3 (6) 252 — 10 153 — 131 52 Transfers out of Level 3 (6) (153 ) — (103 ) (1,603 ) (2 ) (2 ) (43 ) Balance, end of period $ 13,520 $ 55 $ 1,336 $ 7,018 $ 55 $ 489 $ 475 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2016 (7) $ (5 ) $ — $ 4 $ 35 $ — $ — $ (3 ) Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2015 (7) $ 7 $ — $ 4 $ 30 $ — $ — $ (6 ) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Short-term Investments Residential Mortgage Net Derivatives (8) Net Embedded Derivatives (9) Separate Long-term Debt of Trading Liabilities (In millions) Three Months Ended June 30, 2016 Balance, beginning of period $ 170 $ 392 $ (338 ) $ (1,939 ) $ 1,466 $ (12 ) $ — Total realized/unrealized gains (losses) included in net income (loss) (3) (4) — 1 165 (4,505 ) 33 — — Total realized/unrealized gains (losses) included in AOCI 5 — 41 (135 ) — — — Purchases (5) 115 71 4 — 209 — — Sales (5) (6 ) (4 ) — — (49 ) — — Issuances (5) — — (1 ) — (2 ) — — Settlements (5) — (11 ) 2 (225 ) 5 — — Transfers into Level 3 (6) 2 — — — 2 — — Transfers out of Level 3 (6) (111 ) — (5 ) — (37 ) — — Balance, end of period $ 175 $ 449 $ (132 ) $ (6,804 ) $ 1,627 $ (12 ) $ — Three Months Ended June 30, 2015 Balance, beginning of period $ 1,358 $ 329 $ (345 ) $ 278 $ 2,056 $ (12 ) $ — Total realized/unrealized gains (losses) included in net income (loss) (3) (4) 2 (2 ) (2 ) 737 (30 ) — — Total realized/unrealized gains (losses) included in AOCI (1 ) — (21 ) 21 — — — Purchases (5) 1,702 45 4 — 153 — (4 ) Sales (5) (975 ) (23 ) — — (83 ) — — Issuances (5) — — (1 ) — — — — Settlements (5) — (4 ) (7 ) (195 ) (1 ) — — Transfers into Level 3 (6) — — — — — — — Transfers out of Level 3 (6) (277 ) — — — (170 ) — — Balance, end of period $ 1,809 $ 345 $ (372 ) $ 841 $ 1,925 $ (12 ) $ (4 ) Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2016 (7) $ — $ 1 $ 163 $ (4,520 ) $ — $ — $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2015 (7) $ 1 $ (2 ) $ 7 $ 723 $ — $ — $ — Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Corporate (1) U.S. Government and Agency Foreign Structured Securities State and Equity Securities FVO and Trading Securities (2) (In millions) Six Months Ended June 30, 2016 Balance, beginning of period $ 12,796 $ — $ 856 $ 7,116 $ 46 $ 432 $ 270 Total realized/unrealized gains (losses) included in net income (loss) (3) (4) (44 ) — 8 60 — (24 ) 5 Total realized/unrealized gains (losses) included in AOCI 929 18 (3 ) (9 ) — 41 — Purchases (5) 1,316 105 79 1,546 17 23 26 Sales (5) (602 ) — (23 ) (903 ) — (62 ) (26 ) Issuances (5) — — — — — — — Settlements (5) — — — — — — — Transfers into Level 3 (6) 639 200 41 30 — 457 23 Transfers out of Level 3 (6) (1,324 ) — (582 ) (1,140 ) (10 ) (185 ) (67 ) Balance, end of period $ 13,710 $ 323 $ 376 $ 6,700 $ 53 $ 682 $ 231 Six Months Ended June 30, 2015 Balance, beginning of period $ 13,432 $ — $ 1,311 $ 7,392 $ — $ 345 $ 567 Total realized/unrealized gains (losses) included in net income (loss) (3) (4) 43 — 7 64 — — (26 ) Total realized/unrealized gains (losses) included in AOCI (489 ) — (24 ) (28 ) — (4 ) — Purchases (5) 1,089 55 145 2,023 55 48 98 Sales (5) (698 ) — (31 ) (883 ) — (23 ) (204 ) Issuances (5) — — — — — — — Settlements (5) — — — — — — — Transfers into Level 3 (6) 364 — 209 177 — 132 53 Transfers out of Level 3 (6) (221 ) — (281 ) (1,727 ) — (9 ) (13 ) Balance, end of period $ 13,520 $ 55 $ 1,336 $ 7,018 $ 55 $ 489 $ 475 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2016 (7) $ (44 ) $ — $ 7 $ 63 $ — $ (26 ) $ 5 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2015 (7) $ 16 $ — $ 7 $ 51 $ — $ — $ (19 ) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Short-term Investments Residential Mortgage Net Derivatives (8) Net Embedded Derivatives (9) Separate Long-term Debt of Trading Liabilities (In millions) Six Months Ended June 30, 2016 Balance, beginning of period $ 291 $ 314 $ (411 ) $ (544 ) $ 1,704 $ (11 ) $ — Total realized/unrealized gains (losses) included in net income (loss) (3) (4) — 11 228 (5,616 ) 62 — — Total realized/unrealized gains (losses) included in AOCI 8 — 51 (210 ) — — — Purchases (5) 126 149 12 — 226 — — Sales (5) (247 ) (8 ) — — (234 ) — — Issuances (5) — — (1 ) — 2 — — Settlements (5) — (17 ) (9 ) (434 ) (4 ) (1 ) — Transfers into Level 3 (6) — — — — 4 — — Transfers out of Level 3 (6) (3 ) — (2 ) — (133 ) — — Balance, end of period $ 175 $ 449 $ (132 ) $ (6,804 ) $ 1,627 $ (12 ) $ — Six Months Ended June 30, 2015 Balance, beginning of period $ 336 $ 308 $ (300 ) $ 430 $ 1,922 $ (13 ) $ — Total realized/unrealized gains (losses) included in net income (loss) (3) (4) 2 20 (68 ) 789 5 — — Total realized/unrealized gains (losses) included in AOCI (1 ) — (4 ) 19 — — — Purchases (5) 1,822 104 4 — 310 — (4 ) Sales (5) (60 ) (71 ) — — (201 ) — — Issuances (5) — — (1 ) — 1 — — Settlements (5) — (16 ) (3 ) (397 ) (2 ) 1 — Transfers into Level 3 (6) — — — — — — — Transfers out of Level 3 (6) (290 ) — — — (110 ) — — Balance, end of period $ 1,809 $ 345 $ (372 ) $ 841 $ 1,925 $ (12 ) $ (4 ) Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2016 (7) $ — $ 11 $ 207 $ (5,634 ) $ — $ — $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2015 (7) $ 1 $ 20 $ (76 ) $ 770 $ — $ — $ — __________________ (1) Comprised of U.S. and foreign corporate securities. (2) Comprised of actively traded securities, FVO general account securities, FVO contractholder-directed unit-linked investments and FVO securities held by CSEs. (3) Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses), while changes in estimated fair value of residential mortgage loans — FVO are included in net investment income. Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivatives gains (losses). (4) Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. (5) 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. (6) 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. (7) Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses). (8) Freestanding derivative assets and liabilities are presented net for purposes of the rollforward. (9) Embedded derivative assets and liabilities are presented net for purposes of the rollforward. (10) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes are presented within net investment gains (losses). Separate account assets and liabilities are presented net for the purposes of the rollforward. |
Fair Value Option | The 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 June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 (In millions) Assets Unpaid principal balance $ 622 $ 436 $ 109 $ 121 Difference between estimated fair value and unpaid principal balance (173 ) (122 ) 50 51 Carrying value at estimated fair value $ 449 $ 314 $ 159 $ 172 Loans in non-accrual status $ 173 $ 122 $ — $ — Liabilities Contractual principal balance $ 58 $ 71 Difference between estimated fair value and contractual principal balance (11 ) (11 ) Carrying value at estimated fair value $ 47 $ 60 __________________ (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 Three Months Six Months 2016 2015 2016 2015 2016 2015 Carrying Value After Measurement Gains (Losses) (In millions) Mortgage loans (1) $ 26 $ 97 $ (85 ) $ — $ (143 ) $ 4 Other limited partnership interests (2) $ 62 $ 36 $ (16 ) $ (8 ) $ (36 ) $ (19 ) Other assets (3) $ — $ — $ (30 ) $ — $ (44 ) $ — __________________ (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 on 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 June 30, 2016 and 2015 were not significant. (3) During the three months and six months ended June 30, 2016, the Company recognized an impairment of computer software in connection with the U.S. Retail Advisor Force Divestiture. See Note 3 . |
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: June 30, 2016 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 68,791 $ — $ — $ 71,860 $ 71,860 Policy loans $ 11,240 $ — $ 1,207 $ 12,646 $ 13,853 Real estate joint ventures $ 29 $ — $ — $ 105 $ 105 Other limited partnership interests $ 442 $ — $ — $ 499 $ 499 Other invested assets $ 499 $ 158 $ 1 $ 340 $ 499 Premiums, reinsurance and other receivables $ 4,046 $ — $ 901 $ 3,262 $ 4,163 Other assets $ 248 $ — $ 208 $ 77 $ 285 Liabilities Policyholder account balances $ 125,026 $ — $ — $ 132,126 $ 132,126 Long-term debt $ 16,531 $ — $ 18,530 $ — $ 18,530 Collateral financing arrangements $ 4,113 $ — $ — $ 3,771 $ 3,771 Junior subordinated debt securities $ 3,168 $ — $ 3,972 $ — $ 3,972 Other liabilities $ 6,552 $ — $ 6,067 $ 487 $ 6,554 Separate account liabilities $ 120,611 $ — $ 120,611 $ — $ 120,611 December 31, 2015 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 66,616 $ — $ — $ 68,539 $ 68,539 Policy loans $ 11,258 $ — $ 1,279 $ 12,072 $ 13,351 Real estate joint ventures $ 35 $ — $ — $ 104 $ 104 Other limited partnership interests $ 524 $ — $ — $ 615 $ 615 Other invested assets $ 537 $ 155 $ 2 $ 380 $ 537 Premiums, reinsurance and other receivables $ 2,822 $ — $ 484 $ 2,421 $ 2,905 Other assets $ 235 $ — $ 207 $ 60 $ 267 Liabilities Policyholder account balances $ 125,040 $ — $ — $ 130,125 $ 130,125 Long-term debt $ 17,954 $ — $ 19,360 $ — $ 19,360 Collateral financing arrangements $ 4,139 $ — $ — $ 3,899 $ 3,899 Junior subordinated debt securities $ 3,194 $ — $ 4,029 $ — $ 4,029 Other liabilities $ 2,249 $ — $ 865 $ 1,385 $ 2,250 Separate account liabilities $ 112,119 $ — $ 112,119 $ — $ 112,119 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Schedule of Stock by Class | Preferred stock authorized, issued and outstanding was as follows at both June 30, 2016 and December 31, 2015 : Series Shares Authorized Shares Issued Shares Outstanding Floating Rate Non-Cumulative Preferred Stock, Series A 27,600,000 24,000,000 24,000,000 5.25% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C 1,500,000 1,500,000 1,500,000 Series A Junior Participating Preferred Stock 10,000,000 — — Not designated 160,900,000 — — Total 200,000,000 25,500,000 25,500,000 |
Components of Accumulated Other Comprehensive Income (Loss) | Information regarding changes in the balances of each component of AOCI attributable to MetLife, Inc., was as follows: Three Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 15,446 $ 1,725 $ (4,282 ) $ (2,024 ) $ 10,865 OCI before reclassifications 4,268 800 209 11 5,288 Deferred income tax benefit (expense) (1,388 ) (269 ) 53 (4 ) (1,608 ) AOCI before reclassifications, net of income tax 18,326 2,256 (4,020 ) (2,017 ) 14,545 Amounts reclassified from AOCI (183 ) 243 — 51 111 Deferred income tax benefit (expense) 61 (68 ) — (17 ) (24 ) Amounts reclassified from AOCI, net of income tax (122 ) 175 — 34 87 Balance, end of period $ 18,204 $ 2,431 $ (4,020 ) $ (1,983 ) $ 14,632 Three Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 16,206 $ 1,555 $ (3,986 ) $ (2,246 ) $ 11,529 OCI before reclassifications (6,511 ) (395 ) (237 ) 3 (7,140 ) Deferred income tax benefit (expense) 2,178 150 9 (1 ) 2,336 AOCI before reclassifications, net of income tax 11,873 1,310 (4,214 ) (2,244 ) 6,725 Amounts reclassified from AOCI (177 ) (303 ) — 57 (423 ) Deferred income tax benefit (expense) 65 95 — (19 ) 141 Amounts reclassified from AOCI, net of income tax (112 ) (208 ) — 38 (282 ) Balance, end of period $ 11,761 $ 1,102 $ (4,214 ) $ (2,206 ) $ 6,443 Six Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 10,315 $ 1,458 $ (4,950 ) $ (2,052 ) $ 4,771 OCI before reclassifications 11,938 1,496 760 11 14,205 Deferred income tax benefit (expense) (3,937 ) (468 ) 170 (4 ) (4,239 ) AOCI before reclassifications, net of income tax 18,316 2,486 (4,020 ) (2,045 ) 14,737 Amounts reclassified from AOCI (166 ) (80 ) — 99 (147 ) Deferred income tax benefit (expense) 54 25 — (37 ) 42 Amounts reclassified from AOCI, net of income tax (112 ) (55 ) — 62 (105 ) Balance, end of period $ 18,204 $ 2,431 $ (4,020 ) $ (1,983 ) $ 14,632 Six Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 15,159 $ 1,076 $ (3,303 ) $ (2,283 ) $ 10,649 OCI before reclassifications (4,885 ) (208 ) (907 ) 3 (5,997 ) Deferred income tax benefit (expense) 1,677 84 (4 ) (1 ) 1,756 AOCI before reclassifications, net of income tax 11,951 952 (4,214 ) (2,281 ) 6,408 Amounts reclassified from AOCI (290 ) 251 — 114 75 Deferred income tax benefit (expense) 100 (101 ) — (39 ) (40 ) Amounts reclassified from AOCI, net of income tax (190 ) 150 — 75 35 Balance, end of period $ 11,761 $ 1,102 $ (4,214 ) $ (2,206 ) $ 6,443 __________________ (1) See Note 6 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 Six Months 2016 2015 2016 2015 (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ 158 $ 110 $ 125 $ 249 Net investment gains (losses) Net unrealized investment gains (losses) 16 17 19 57 Net investment income Net unrealized investment gains (losses) 9 50 22 (16 ) Net derivative gains (losses) Net unrealized investment gains (losses), before income tax 183 177 166 290 Income tax (expense) benefit (61 ) (65 ) (54 ) (100 ) Net unrealized investment gains (losses), net of income tax 122 112 112 190 Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate swaps 18 7 28 12 Net derivative gains (losses) Interest rate swaps 4 3 7 6 Net investment income Interest rate forwards (1 ) 1 1 4 Net derivative gains (losses) Interest rate forwards 2 1 3 2 Net investment income Interest rate forwards 1 — 1 1 Other expenses Foreign currency swaps (269 ) 290 37 (277 ) Net derivative gains (losses) Foreign currency swaps (1 ) (1 ) (1 ) (1 ) Net investment income Foreign currency swaps — 1 1 1 Other expenses Credit forwards 3 — 3 — Net derivative gains (losses) Credit forwards — 1 — 1 Net investment income Gains (losses) on cash flow hedges, before income tax (243 ) 303 80 (251 ) Income tax (expense) benefit 68 (95 ) (25 ) 101 Gains (losses) on cash flow hedges, net of income tax (175 ) 208 55 (150 ) Defined benefit plans adjustment: (1) Amortization of net actuarial gains (losses) (52 ) (58 ) (103 ) (116 ) Amortization of prior service (costs) credit 1 1 4 2 Amortization of defined benefit plan items, before income tax (51 ) (57 ) (99 ) (114 ) Income tax (expense) benefit 17 19 37 39 Amortization of defined benefit plan items, net of income tax (34 ) (38 ) (62 ) (75 ) Total reclassifications, net of income tax $ (87 ) $ 282 $ 105 $ (35 ) __________________ (1) These AOCI components are included in the computation of net periodic benefit costs. See Note 11 . |
Other Expenses (Tables)
Other Expenses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | |
Other Expenses | Information on other expenses was as follows: Three Months Six Months 2016 2015 2016 2015 (In millions) Compensation $ 1,189 $ 1,258 $ 2,499 $ 2,549 Pension, postretirement and postemployment benefit costs 103 105 243 197 Commissions 1,094 1,122 2,228 2,279 Volume-related costs 214 255 480 497 Capitalization of DAC (915 ) (927 ) (1,896 ) (1,895 ) Amortization of DAC and VOBA 121 897 1,116 1,922 Amortization of negative VOBA (67 ) (92 ) (166 ) (192 ) Interest expense on debt 306 308 618 606 Premium taxes, licenses and fees 189 196 404 369 Professional services 398 383 728 713 Rent and related expenses, net of sublease income 98 84 195 167 Other 516 483 989 920 Total other expenses $ 3,246 $ 4,072 $ 7,438 $ 8,132 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Net periodic benefit costs | The components of net periodic benefit costs were as follows: Three Months 2016 2015 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits (In millions) Service costs $ 73 $ 2 $ 69 $ 5 Interest costs 109 21 107 22 Curtailment costs (1) — (3 ) — — Expected return on plan assets (127 ) (19 ) (136 ) (20 ) Amortization of net actuarial (gains) losses 50 2 47 11 Amortization of prior service costs (credit) — (1 ) — (1 ) Net periodic benefit costs (credit) $ 105 $ 2 $ 87 $ 17 Six Months 2016 2015 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits (In millions) Service costs $ 145 $ 4 $ 138 $ 9 Interest costs 220 42 212 45 Curtailment costs (1) — 27 — — Expected return on plan assets (254 ) (37 ) (272 ) (40 ) Amortization of net actuarial (gains) losses 99 4 95 21 Amortization of prior service costs (credit) — (4 ) — (2 ) Net periodic benefit costs (credit) $ 210 $ 36 $ 173 $ 33 __________________ (1) The Company recognized curtailment charges on certain postretirement benefit plans in connection with the U.S Retail Advisor Force Divestiture. See Note 3 . |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 Six Months 2016 2015 2016 2015 (In millions, except share and per share data) Weighted Average Shares: Weighted average common stock outstanding for basic earnings per common share 1,100,328,049 1,117,807,514 1,100,582,221 1,120,801,928 Incremental common shares from assumed: Exercise or issuance of stock-based awards 8,800,389 10,584,264 8,292,739 10,320,897 Weighted average common stock outstanding for diluted earnings per common share 1,109,128,438 1,128,391,778 1,108,874,960 1,131,122,825 Net Income (Loss): Net income (loss) $ 114 $ 1,119 $ 2,317 $ 3,282 Less: Net income (loss) attributable to noncontrolling interests 4 4 6 9 Less: Preferred stock dividends 46 31 52 61 Preferred stock repurchase premium — 42 — 42 Net income (loss) available to MetLife, Inc.’s common shareholders $ 64 $ 1,042 $ 2,259 $ 3,170 Basic $ 0.06 $ 0.93 $ 2.05 $ 2.83 Diluted $ 0.06 $ 0.92 $ 2.04 $ 2.80 |
Business, Basis of Presentati32
Business, Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2016Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of segments | 6 |
Segment Information (Earnings)
Segment Information (Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | ||||
Premiums | $ 9,417 | $ 9,312 | $ 19,110 | $ 18,565 |
Universal life and investment-type product policy fees | 2,286 | 2,434 | 4,630 | 4,828 |
Net investment income | 4,887 | 4,947 | 9,446 | 10,408 |
Other revenues | 487 | 518 | 974 | 1,013 |
Net investment gains (losses) | 266 | (133) | 281 | 153 |
Net derivative gains (losses) | (2,099) | (912) | (764) | (91) |
Total revenues | 15,244 | 16,166 | 33,677 | 34,876 |
Expenses | ||||
Policyholder benefits and claims and policyholder dividends | 10,598 | 9,683 | 20,591 | 19,279 |
Interest credited to policyholder account balances | 1,500 | 1,298 | 2,826 | 3,293 |
Capitalization of DAC | (915) | (927) | (1,896) | (1,895) |
Amortization of DAC and VOBA | 121 | 897 | 1,116 | 1,922 |
Amortization of negative VOBA | (67) | (92) | (166) | (192) |
Interest expense on debt | 306 | 308 | 618 | 606 |
Other expenses | 3,801 | 3,886 | 7,766 | 7,691 |
Total expenses | 15,344 | 15,053 | 30,855 | 30,704 |
Provision for income tax expense (benefit) | (214) | (6) | 505 | 890 |
Net income (loss) | 114 | 1,119 | 2,317 | 3,282 |
Operating Segments | ||||
Revenues | ||||
Premiums | 9,417 | 9,313 | 18,684 | 18,566 |
Universal life and investment-type product policy fees | 2,173 | 2,335 | 4,324 | 4,629 |
Net investment income | 4,881 | 5,185 | 9,587 | 10,167 |
Other revenues | 484 | 527 | 971 | 1,030 |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total revenues | 16,955 | 17,360 | 33,566 | 34,392 |
Expenses | ||||
Policyholder benefits and claims and policyholder dividends | 10,385 | 9,503 | 19,978 | 18,950 |
Interest credited to policyholder account balances | 1,314 | 1,342 | 2,615 | 2,673 |
Capitalization of DAC | (915) | (927) | (1,791) | (1,895) |
Amortization of DAC and VOBA | 1,015 | 1,001 | 1,896 | 1,954 |
Amortization of negative VOBA | (61) | (83) | (128) | (173) |
Interest expense on debt | 303 | 307 | 615 | 604 |
Other expenses | 3,659 | 3,882 | 7,369 | 7,682 |
Total expenses | 15,700 | 15,025 | 30,554 | 29,795 |
Provision for income tax expense (benefit) | 285 | 539 | 707 | 1,133 |
Operating earnings | 970 | 1,796 | 2,305 | 3,464 |
Operating Segments | Americas | ||||
Revenues | ||||
Premiums | 7,204 | 6,953 | 14,287 | 13,936 |
Universal life and investment-type product policy fees | 1,683 | 1,795 | 3,365 | 3,567 |
Net investment income | 4,076 | 4,293 | 8,002 | 8,399 |
Other revenues | 422 | 461 | 845 | 906 |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total revenues | 13,385 | 13,502 | 26,499 | 26,808 |
Expenses | ||||
Policyholder benefits and claims and policyholder dividends | 8,753 | 7,855 | 16,824 | 15,711 |
Interest credited to policyholder account balances | 959 | 972 | 1,908 | 1,930 |
Capitalization of DAC | (381) | (397) | (769) | (797) |
Amortization of DAC and VOBA | 605 | 531 | 1,096 | 1,030 |
Amortization of negative VOBA | 0 | (1) | 0 | (1) |
Interest expense on debt | 4 | 1 | 8 | 1 |
Other expenses | 2,291 | 2,450 | 4,643 | 4,839 |
Total expenses | 12,231 | 11,411 | 23,710 | 22,713 |
Provision for income tax expense (benefit) | 319 | 648 | 816 | 1,271 |
Operating earnings | 835 | 1,443 | 1,973 | 2,824 |
Operating Segments | Retail | ||||
Revenues | ||||
Premiums | 1,695 | 1,747 | 3,435 | 3,496 |
Universal life and investment-type product policy fees | 1,156 | 1,252 | 2,305 | 2,488 |
Net investment income | 1,950 | 2,003 | 3,830 | 3,983 |
Other revenues | 224 | 263 | 439 | 514 |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total revenues | 5,025 | 5,265 | 10,009 | 10,481 |
Expenses | ||||
Policyholder benefits and claims and policyholder dividends | 2,937 | 2,373 | 5,395 | 4,822 |
Interest credited to policyholder account balances | 525 | 551 | 1,047 | 1,093 |
Capitalization of DAC | (245) | (257) | (500) | (504) |
Amortization of DAC and VOBA | 487 | 400 | 860 | 775 |
Amortization of negative VOBA | 0 | 0 | 0 | 0 |
Interest expense on debt | 1 | 0 | 3 | (1) |
Other expenses | 1,124 | 1,220 | 2,273 | 2,396 |
Total expenses | 4,829 | 4,287 | 9,078 | 8,581 |
Provision for income tax expense (benefit) | 12 | 288 | 215 | 557 |
Operating earnings | 184 | 690 | 716 | 1,343 |
Operating Segments | Group, Voluntary & Worksite Benefits | ||||
Revenues | ||||
Premiums | 4,276 | 4,104 | 8,570 | 8,221 |
Universal life and investment-type product policy fees | 197 | 183 | 382 | 371 |
Net investment income | 458 | 481 | 905 | 959 |
Other revenues | 117 | 114 | 248 | 227 |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total revenues | 5,048 | 4,882 | 10,105 | 9,778 |
Expenses | ||||
Policyholder benefits and claims and policyholder dividends | 3,990 | 3,805 | 8,024 | 7,640 |
Interest credited to policyholder account balances | 37 | 38 | 74 | 75 |
Capitalization of DAC | (39) | (36) | (75) | (72) |
Amortization of DAC and VOBA | 39 | 39 | 79 | 80 |
Amortization of negative VOBA | 0 | 0 | 0 | 0 |
Interest expense on debt | 1 | 0 | 1 | 0 |
Other expenses | 685 | 681 | 1,397 | 1,345 |
Total expenses | 4,713 | 4,527 | 9,500 | 9,068 |
Provision for income tax expense (benefit) | 114 | 124 | 210 | 251 |
Operating earnings | 221 | 231 | 395 | 459 |
Operating Segments | Corporate Benefit Funding | ||||
Revenues | ||||
Premiums | 517 | 319 | 875 | 737 |
Universal life and investment-type product policy fees | 61 | 59 | 141 | 113 |
Net investment income | 1,421 | 1,526 | 2,763 | 2,956 |
Other revenues | 72 | 77 | 142 | 148 |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total revenues | 2,071 | 1,981 | 3,921 | 3,954 |
Expenses | ||||
Policyholder benefits and claims and policyholder dividends | 1,181 | 933 | 2,143 | 1,924 |
Interest credited to policyholder account balances | 313 | 294 | 623 | 587 |
Capitalization of DAC | (1) | (4) | (1) | (10) |
Amortization of DAC and VOBA | 4 | 6 | 9 | 11 |
Amortization of negative VOBA | 0 | 0 | 0 | 0 |
Interest expense on debt | 2 | 1 | 4 | 2 |
Other expenses | 109 | 130 | 229 | 254 |
Total expenses | 1,608 | 1,360 | 3,007 | 2,768 |
Provision for income tax expense (benefit) | 161 | 215 | 317 | 411 |
Operating earnings | 302 | 406 | 597 | 775 |
Operating Segments | Latin America | ||||
Revenues | ||||
Premiums | 716 | 783 | 1,407 | 1,482 |
Universal life and investment-type product policy fees | 269 | 301 | 537 | 595 |
Net investment income | 247 | 283 | 504 | 501 |
Other revenues | 9 | 7 | 16 | 17 |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total revenues | 1,241 | 1,374 | 2,464 | 2,595 |
Expenses | ||||
Policyholder benefits and claims and policyholder dividends | 645 | 744 | 1,262 | 1,325 |
Interest credited to policyholder account balances | 84 | 89 | 164 | 175 |
Capitalization of DAC | (96) | (100) | (193) | (211) |
Amortization of DAC and VOBA | 75 | 86 | 148 | 164 |
Amortization of negative VOBA | 0 | (1) | 0 | (1) |
Interest expense on debt | 0 | 0 | 0 | 0 |
Other expenses | 373 | 419 | 744 | 844 |
Total expenses | 1,081 | 1,237 | 2,125 | 2,296 |
Provision for income tax expense (benefit) | 32 | 21 | 74 | 52 |
Operating earnings | 128 | 116 | 265 | 247 |
Operating Segments | Asia | ||||
Revenues | ||||
Premiums | 1,681 | 1,809 | 3,339 | 3,561 |
Universal life and investment-type product policy fees | 370 | 400 | 720 | 797 |
Net investment income | 678 | 679 | 1,296 | 1,363 |
Other revenues | 16 | 28 | 33 | 56 |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total revenues | 2,745 | 2,916 | 5,388 | 5,777 |
Expenses | ||||
Policyholder benefits and claims and policyholder dividends | 1,324 | 1,375 | 2,560 | 2,715 |
Interest credited to policyholder account balances | 324 | 328 | 643 | 665 |
Capitalization of DAC | (426) | (398) | (811) | (833) |
Amortization of DAC and VOBA | 304 | 336 | 590 | 662 |
Amortization of negative VOBA | (57) | (78) | (121) | (164) |
Interest expense on debt | 0 | 0 | 0 | 0 |
Other expenses | 877 | 869 | 1,728 | 1,773 |
Total expenses | 2,346 | 2,432 | 4,589 | 4,818 |
Provision for income tax expense (benefit) | 140 | 59 | 235 | 207 |
Operating earnings | 259 | 425 | 564 | 752 |
Operating Segments | EMEA | ||||
Revenues | ||||
Premiums | 519 | 525 | 1,019 | 1,033 |
Universal life and investment-type product policy fees | 95 | 114 | 190 | 216 |
Net investment income | 83 | 84 | 163 | 167 |
Other revenues | 19 | 19 | 39 | 29 |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total revenues | 716 | 742 | 1,411 | 1,445 |
Expenses | ||||
Policyholder benefits and claims and policyholder dividends | 283 | 265 | 544 | 504 |
Interest credited to policyholder account balances | 30 | 34 | 59 | 64 |
Capitalization of DAC | (106) | (132) | (207) | (265) |
Amortization of DAC and VOBA | 103 | 133 | 205 | 261 |
Amortization of negative VOBA | (4) | (4) | (7) | (8) |
Interest expense on debt | 0 | 0 | 0 | 0 |
Other expenses | 336 | 389 | 669 | 751 |
Total expenses | 642 | 685 | 1,263 | 1,307 |
Provision for income tax expense (benefit) | 10 | 7 | 21 | 18 |
Operating earnings | 64 | 50 | 127 | 120 |
Operating Segments | Corporate & Other | ||||
Revenues | ||||
Premiums | 13 | 26 | 39 | 36 |
Universal life and investment-type product policy fees | 25 | 26 | 49 | 49 |
Net investment income | 44 | 129 | 126 | 238 |
Other revenues | 27 | 19 | 54 | 39 |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total revenues | 109 | 200 | 268 | 362 |
Expenses | ||||
Policyholder benefits and claims and policyholder dividends | 25 | 8 | 50 | 20 |
Interest credited to policyholder account balances | 1 | 8 | 5 | 14 |
Capitalization of DAC | (2) | 0 | (4) | 0 |
Amortization of DAC and VOBA | 3 | 1 | 5 | 1 |
Amortization of negative VOBA | 0 | 0 | 0 | 0 |
Interest expense on debt | 299 | 306 | 607 | 603 |
Other expenses | 155 | 174 | 329 | 319 |
Total expenses | 481 | 497 | 992 | 957 |
Provision for income tax expense (benefit) | (184) | (175) | (365) | (363) |
Operating earnings | (188) | (122) | (359) | (232) |
Significant Reconciling Items | ||||
Revenues | ||||
Premiums | 0 | (1) | 426 | (1) |
Universal life and investment-type product policy fees | 113 | 99 | 306 | 199 |
Net investment income | 6 | (238) | (141) | 241 |
Other revenues | 3 | (9) | 3 | (17) |
Net investment gains (losses) | 266 | (133) | 281 | 153 |
Net derivative gains (losses) | (2,099) | (912) | (764) | (91) |
Total revenues | (1,711) | (1,194) | 111 | 484 |
Expenses | ||||
Policyholder benefits and claims and policyholder dividends | 213 | 180 | 613 | 329 |
Interest credited to policyholder account balances | 186 | (44) | 211 | 620 |
Capitalization of DAC | 0 | 0 | (105) | 0 |
Amortization of DAC and VOBA | (894) | (104) | (780) | (32) |
Amortization of negative VOBA | (6) | (9) | (38) | (19) |
Interest expense on debt | 3 | 1 | 3 | 2 |
Other expenses | 142 | 4 | 397 | 9 |
Total expenses | (356) | 28 | 301 | 909 |
Provision for income tax expense (benefit) | $ (499) | $ (545) | $ (202) | $ (243) |
Segment Information (Total Asse
Segment Information (Total Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 942,567 | $ 877,933 |
Retail | ||
Segment Reporting Information [Line Items] | ||
Total assets | 364,611 | 347,257 |
Group, Voluntary & Worksite Benefits | ||
Segment Reporting Information [Line Items] | ||
Total assets | 51,721 | 46,476 |
Corporate Benefit Funding | ||
Segment Reporting Information [Line Items] | ||
Total assets | 236,311 | 225,015 |
Latin America | ||
Segment Reporting Information [Line Items] | ||
Total assets | 68,971 | 65,266 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Total assets | 131,537 | 113,895 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Total assets | 27,007 | 26,767 |
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 62,409 | $ 53,257 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2016Segment | |
Segment Reporting [Abstract] | |
Number of segments | 6 |
Disposition (Disposition - Narr
Disposition (Disposition - Narrative) (Details) - MetLife U.S. Retail Advisor Force - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Jun. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net Consideration | $ 280 | |
Scenario, Forecast | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Gain on Disposition of Business, Net of Tax | $ 45 |
Insurance (Guarantees Related t
Insurance (Guarantees Related to Annuity Contracts) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Variable Annuity Guarantees: | Guaranteed Death Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 180,789 | $ 181,413 |
Separate account value | 151,174 | 151,901 |
Net amount at risk | $ 9,916 | $ 10,339 |
Average attained age of contractholders | 66 years | 66 years |
Variable Annuity Guarantees: | Guaranteed Annuitization Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 91,042 | $ 91,240 |
Separate account value | 87,414 | 87,841 |
Net amount at risk | $ 4,150 | $ 2,762 |
Average attained age of contractholders | 66 years | 66 years |
Other Annuity Guarantees: | Guaranteed Annuitization Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 1,514 | $ 1,560 |
Net amount at risk | $ 401 | $ 422 |
Average attained age of contractholders | 51 years | 51 years |
Insurance (Guarantees Related38
Insurance (Guarantees Related to Universal and Variable Life Contracts) (Details) - Universal and Variable Life Contracts - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Secondary Guarantees | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (3) | $ 17,273 | $ 17,211 |
Net amount at risk (7) | $ 175,990 | $ 175,958 |
Average attained age of policyholders | 57 years | 57 years |
Paid-Up Guarantees | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (3) | $ 3,408 | $ 3,461 |
Net amount at risk (7) | $ 18,514 | $ 19,047 |
Average attained age of policyholders | 62 years | 62 years |
Closed Block (Liabilities and A
Closed Block (Liabilities and Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Closed Block Liabilities | |||
Future policy benefits | $ 40,976 | $ 41,278 | |
Other policy-related balances | 240 | 249 | |
Policyholder dividends payable | 491 | 468 | |
Policyholder dividend obligation | 3,343 | 1,783 | $ 3,155 |
Other liabilities | 726 | 380 | |
Total closed block liabilities | 45,776 | 44,158 | |
Assets Designated to the Closed Block | |||
Fixed maturity securities available-for-sale, at estimated fair value | 29,404 | 27,556 | |
Equity securities available-for-sale, at estimated fair value | 110 | 111 | |
Mortgage loans | 5,825 | 6,022 | |
Policy loans | 4,558 | 4,642 | |
Real estate and real estate joint ventures | 566 | 462 | |
Other invested assets | 1,106 | 1,066 | |
Total investments | 41,569 | 39,859 | |
Cash and cash equivalents | 220 | 236 | |
Accrued investment income | 463 | 474 | |
Premiums, reinsurance and other receivables | 51 | 56 | |
Current income tax recoverable | 0 | 11 | |
Deferred income tax assets | 200 | 234 | |
Total assets designated to the closed block | 42,503 | 40,870 | |
Excess of closed block liabilities over assets designated to the closed block | 3,273 | 3,288 | |
Amounts included in accumulated other comprehensive income (loss) (“AOCI”) | |||
Unrealized investment gains (losses), net of income tax | 2,435 | 1,382 | |
Unrealized gains (losses) on derivatives, net of income tax | 100 | 76 | |
Allocated to policyholder dividend obligation, net of income tax | (2,173) | (1,159) | |
Total amounts included in AOCI | 362 | 299 | |
Maximum future earnings to be recognized from closed block assets and liabilities | $ 3,635 | $ 3,587 |
Closed Block (Policyholder Divi
Closed Block (Policyholder Dividend Obligation) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Closed block policyholder dividend obligation | ||
Balance, beginning of period | $ 1,783 | $ 3,155 |
Change in unrealized investment and derivative gains (losses) | 1,560 | (1,372) |
Balance, end of period | $ 3,343 | $ 1,783 |
Closed Block (Revenues and Expe
Closed Block (Revenues and Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | ||||
Premiums | $ 444 | $ 457 | $ 861 | $ 887 |
Net investment income | 469 | 498 | 949 | 1,013 |
Net investment gains (losses) | 12 | 2 | (16) | 1 |
Net derivative gains (losses) | 4 | (13) | (7) | 12 |
Total revenues | 929 | 944 | 1,787 | 1,913 |
Expenses | ||||
Policyholder benefits and claims | 632 | 643 | 1,242 | 1,251 |
Policyholder dividends | 246 | 244 | 491 | 484 |
Other expenses | 35 | 36 | 67 | 73 |
Total expenses | 913 | 923 | 1,800 | 1,808 |
Revenues, net of expenses before provision for income tax expense (benefit) | 16 | 21 | (13) | 105 |
Provision for income tax expense (benefit) | 6 | 8 | (5) | 37 |
Revenues, net of expenses and provision for income tax expense (benefit) | $ 10 | $ 13 | $ (8) | $ 68 |
Investments (Fixed Maturity and
Investments (Fixed Maturity and Equity Securities Available-For-Sale by Sector) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | $ 350,821 | $ 332,964 | |
Cost or Amortized Cost | 2,914 | 2,997 | |
Gross Unrealized OTTI Loss | (59) | (76) | $ (112) |
Available-for-sale Securities, Debt Securities | 387,508 | 351,402 | |
Equity securities | 3,333 | 3,321 | |
Fixed Maturity Securities | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 350,821 | 332,964 | |
Gross Unrealized Gain | 40,062 | 23,883 | |
Gross Unrealized Temporary Loss | 3,316 | 5,369 | |
Gross Unrealized OTTI Loss | 59 | 76 | |
Available-for-sale Securities, Debt Securities | 387,508 | 351,402 | |
U.S. corporate | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 95,218 | 96,466 | |
Gross Unrealized Gain | 10,302 | 6,583 | |
Gross Unrealized Temporary Loss | 905 | 2,255 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Available-for-sale Securities, Debt Securities | 104,615 | 100,794 | |
U.S. government and agency | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 59,591 | 56,499 | |
Gross Unrealized Gain | 10,167 | 5,373 | |
Gross Unrealized Temporary Loss | 21 | 226 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Available-for-sale Securities, Debt Securities | 69,737 | 61,646 | |
Foreign corporate | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 56,813 | 56,003 | |
Gross Unrealized Gain | 3,865 | 3,019 | |
Gross Unrealized Temporary Loss | 1,466 | 1,822 | |
Gross Unrealized OTTI Loss | 0 | 2 | |
Available-for-sale Securities, Debt Securities | 59,212 | 57,198 | |
Foreign government | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 52,293 | 45,451 | |
Gross Unrealized Gain | 10,113 | 5,269 | |
Gross Unrealized Temporary Loss | 145 | 221 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Available-for-sale Securities, Debt Securities | 62,261 | 50,499 | |
RMBS | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 43,223 | 37,914 | |
Gross Unrealized Gain | 1,790 | 1,366 | |
Gross Unrealized Temporary Loss | 364 | 424 | |
Gross Unrealized OTTI Loss | 51 | 59 | |
Available-for-sale Securities, Debt Securities | 44,598 | 38,797 | |
State and political subdivision | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 14,403 | 13,723 | |
Gross Unrealized Gain | 3,024 | 1,795 | |
Gross Unrealized Temporary Loss | 11 | 67 | |
Gross Unrealized OTTI Loss | 6 | 10 | |
Available-for-sale Securities, Debt Securities | 17,410 | 15,441 | |
ABS | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 16,689 | 14,498 | |
Gross Unrealized Gain | 141 | 131 | |
Gross Unrealized Temporary Loss | 309 | 229 | |
Gross Unrealized OTTI Loss | 3 | 6 | |
Available-for-sale Securities, Debt Securities | 16,518 | 14,394 | |
CMBS (1) | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 12,591 | 12,410 | |
Gross Unrealized Gain | 660 | 347 | |
Gross Unrealized Temporary Loss | 95 | 125 | |
Gross Unrealized OTTI Loss | (1) | (1) | |
Available-for-sale Securities, Debt Securities | 13,157 | 12,633 | |
Equity securities | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 2,914 | 2,997 | |
Gross Unrealized Gain | 501 | 482 | |
Gross Unrealized Temporary Loss | 82 | 158 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Equity securities | 3,333 | 3,321 | |
Common Stock | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 2,013 | 1,962 | |
Gross Unrealized Gain | 431 | 397 | |
Gross Unrealized Temporary Loss | 18 | 107 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Equity securities | 2,426 | 2,252 | |
Non-redeemable preferred stock | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 901 | 1,035 | |
Gross Unrealized Gain | 70 | 85 | |
Gross Unrealized Temporary Loss | 64 | 51 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Equity securities | $ 907 | $ 1,069 |
Investments (Maturities of Fixe
Investments (Maturities of Fixed Maturity Securities) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost, Due in one year or less | $ 13,404 | |
Amortized Cost, Due after one year through five years | 80,755 | |
Amortized Cost, Due after five years through ten years | 69,842 | |
Amortized Cost, Due after ten years | 114,317 | |
Amortized Cost, RMBS, CMBS and ABS | 72,503 | |
Amortized Cost, Subtotal | 350,821 | $ 332,964 |
Estimated Fair Value, Due in one year or less | 13,499 | |
Estimated Fair Value, Due after one year through five years | 85,064 | |
Estimated Fair Value, Due after five years through ten years | 74,476 | |
Estimated Fair Value, Due after ten years | 140,196 | |
Estimated fair value, Mortgage-backed and asset-backed securities | 74,273 | |
Available-for-sale Securities, Debt Securities | $ 387,508 | $ 351,402 |
Investments (Continuous Gross U
Investments (Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities Available-For-Sale) (Details) $ in Millions | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) |
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 | 2,783 | 6,366 |
Total number of securities in an unrealized loss position equal to or greater than 12 months | 1,965 | 1,489 |
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 | $ 29,820 | $ 92,421 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1,472 | 3,475 |
Equal to or Greater than 12 Months Estimated Fair Value | 21,688 | 15,799 |
Gross Unrealized Temporary Loss | 1,903 | 1,970 |
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 | 7,932 | 27,526 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 394 | 1,629 |
Equal to or Greater than 12 Months Estimated Fair Value | 5,581 | 3,762 |
Gross Unrealized Temporary Loss | 511 | 626 |
U.S. government and agency | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 1,026 | 19,628 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 3 | 222 |
Equal to or Greater than 12 Months Estimated Fair Value | 164 | 298 |
Gross Unrealized Temporary Loss | 18 | 4 |
Foreign corporate | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 8,135 | 14,447 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 585 | 911 |
Equal to or Greater than 12 Months Estimated Fair Value | 6,477 | 5,251 |
Gross Unrealized Temporary Loss | 881 | 913 |
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 | 1,298 | 3,530 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 83 | 166 |
Equal to or Greater than 12 Months Estimated Fair Value | 807 | 429 |
Gross Unrealized Temporary Loss | 62 | 55 |
RMBS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 5,221 | 13,467 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 183 | 287 |
Equal to or Greater than 12 Months Estimated Fair Value | 3,033 | 2,431 |
Gross Unrealized Temporary Loss | 232 | 196 |
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 | 172 | 1,618 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 3 | 55 |
Equal to or Greater than 12 Months Estimated Fair Value | 89 | 168 |
Gross Unrealized Temporary Loss | 14 | 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 | 5,136 | 7,329 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 176 | 124 |
Equal to or Greater than 12 Months Estimated Fair Value | 4,555 | 2,823 |
Gross Unrealized Temporary Loss | 136 | 111 |
CMBS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 900 | 4,876 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 45 | 81 |
Equal to or Greater than 12 Months Estimated Fair Value | 982 | 637 |
Gross Unrealized Temporary Loss | 49 | 43 |
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 | 164 | 282 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 24 | 107 |
Equal to or Greater than 12 Months Estimated Fair Value | 175 | 220 |
Gross Unrealized Temporary Loss | 58 | 51 |
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 | 114 | 203 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 18 | 105 |
Equal to or Greater than 12 Months Estimated Fair Value | 7 | 20 |
Gross Unrealized Temporary Loss | 0 | 2 |
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 | 50 | 79 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 6 | 2 |
Equal to or Greater than 12 Months Estimated Fair Value | 168 | 200 |
Gross Unrealized Temporary Loss | $ 58 | $ 49 |
Investments (Mortgage Loans by
Investments (Mortgage Loans by Portfolio Segment) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Company-held mortgage loans held-for-investment, net | ||||
Commercial mortgage loans | $ 45,165 | $ 44,012 | ||
Percentage of loans receivable on commercial mortgage loans | 65.10% | 65.60% | ||
Agricultural mortgage loans | $ 13,434 | $ 13,188 | ||
Percentage of loans receivable on agricultural mortgage loans | 19.40% | 19.60% | ||
Residential mortgage loans | $ 10,659 | $ 9,734 | ||
Percentage of loans receivable on residential mortgage loans | 15.40% | 14.50% | ||
Subtotal | $ 69,258 | $ 66,934 | ||
Percentage of loans receivable on subtotal | 99.90% | 99.70% | ||
Valuation allowances | $ (467) | $ (318) | $ (325) | $ (305) |
Percentage of loans receivable on valuation allowances | (0.70%) | (0.50%) | ||
Subtotal mortgage loans, net | $ 68,791 | $ 66,616 | ||
Percentage of loans receivable on subtotal mortgage loans held-for-investment, net | 99.20% | 99.20% | ||
Percentage of residential mortgage loans - FVO | 0.60% | 0.50% | ||
Percentage of loans receivable on commercial mortgage loans held by consolidated securitization entities - fair value option | 0.20% | 0.30% | ||
Total mortgage loans, net | $ 69,399 | $ 67,102 | ||
Percentage of loans held for sale on total mortgage loans, net | 100.00% | 100.00% | ||
Residential — FVO | ||||
Company-held mortgage loans held-for-investment, net | ||||
Total mortgage loans, net | $ 449 | $ 314 | ||
Consolidated Securitization Entities | ||||
Company-held mortgage loans held-for-investment, net | ||||
Total mortgage loans, net | $ 159 | $ 172 |
Investments (Mortgage Loans and
Investments (Mortgage Loans and Valuation Allowance by Portfolio Segment) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | $ 192 | $ 49 |
Recorded Investment | 170 | 47 |
Valuation Allowances | 144 | 3 |
Unpaid Principal Balance | 256 | 220 |
Recorded Investment | 239 | 209 |
Recorded Investment | 68,849 | 66,678 |
Valuation Allowances | 323 | 315 |
Carrying Value | 265 | 253 |
Commercial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | 176 | 0 |
Recorded Investment | 157 | 0 |
Valuation Allowances | 143 | 0 |
Unpaid Principal Balance | 12 | 57 |
Recorded Investment | 12 | 57 |
Recorded Investment | 44,996 | 43,955 |
Valuation Allowances | 224 | 217 |
Carrying Value | 26 | 57 |
Agricultural | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | 16 | 49 |
Recorded Investment | 13 | 47 |
Valuation Allowances | 1 | 3 |
Unpaid Principal Balance | 39 | 22 |
Recorded Investment | 38 | 21 |
Recorded Investment | 13,383 | 13,120 |
Valuation Allowances | 40 | 39 |
Carrying Value | 50 | 65 |
Residential | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Valuation Allowances | 0 | 0 |
Unpaid Principal Balance | 205 | 141 |
Recorded Investment | 189 | 131 |
Recorded Investment | 10,470 | 9,603 |
Valuation Allowances | 59 | 59 |
Carrying Value | $ 189 | $ 131 |
Investments (Valuation Allowanc
Investments (Valuation Allowance Rollforward by Portfolio Segment) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Mortgage Loans on Real Estate [Line Items] | ||
Balance, beginning of period | $ 318 | $ 305 |
Provision (release) | 158 | 29 |
Charge-offs, net of recoveries | (9) | (9) |
Balance, end of period | 467 | 325 |
Commercial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Balance, beginning of period | 217 | 224 |
Provision (release) | 150 | 4 |
Charge-offs, net of recoveries | 0 | 0 |
Balance, end of period | 367 | 228 |
Agricultural | ||
Mortgage Loans on Real Estate [Line Items] | ||
Balance, beginning of period | 42 | 39 |
Provision (release) | 1 | 2 |
Charge-offs, net of recoveries | (2) | 0 |
Balance, end of period | 41 | 41 |
Residential | ||
Mortgage Loans on Real Estate [Line Items] | ||
Balance, beginning of period | 59 | 42 |
Provision (release) | 7 | 23 |
Charge-offs, net of recoveries | (7) | (9) |
Balance, end of period | $ 59 | $ 56 |
Investments (Credit Quality of
Investments (Credit Quality of Commercial Mortgage Loans) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 45,165 | $ 44,012 |
% of Total | 100.00% | 100.00% |
Estimated Fair Value | $ 47,002 | $ 45,104 |
% of Total | 100.00% | 100.00% |
Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 41,111 | $ 39,770 |
% of Total | 91.00% | 90.40% |
Estimated Fair Value | $ 43,055 | $ 40,921 |
% of Total | 91.60% | 90.70% |
65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 3,577 | $ 3,484 |
% of Total | 7.90% | 7.90% |
Estimated Fair Value | $ 3,627 | $ 3,451 |
% of Total | 7.70% | 7.70% |
76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 28 | $ 0 |
% of Total | 0.10% | 0.00% |
Estimated Fair Value | $ 25 | $ 0 |
% of Total | 0.10% | 0.00% |
Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 449 | $ 758 |
% of Total | 1.00% | 1.70% |
Estimated Fair Value | $ 295 | $ 732 |
% of Total | 0.60% | 1.60% |
Greater than 1.20x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 43,086 | $ 41,814 |
Greater than 1.20x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 39,346 | 38,163 |
Greater than 1.20x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 3,330 | 3,270 |
Greater than 1.20x | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 26 | 0 |
Greater than 1.20x | Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 384 | 381 |
1.00x - 1.20x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 1,224 | 1,341 |
1.00x - 1.20x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 1,095 | 1,063 |
1.00x - 1.20x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 76 | 138 |
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 | 53 | 140 |
Less than 1.00x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 855 | 857 |
Less than 1.00x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 670 | 544 |
Less than 1.00x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 171 | 76 |
Less than 1.00x | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 2 | 0 |
Less than 1.00x | Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 12 | $ 237 |
Investments (Credit Quality o49
Investments (Credit Quality of Agricultural and Residential Mortgage Loans) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 13,434 | $ 13,188 |
% of Total | 100.00% | 100.00% |
Residential Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 10,659 | $ 9,734 |
% of Total | 100.00% | 100.00% |
Less than 65% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 12,711 | $ 12,399 |
% of Total | 94.60% | 94.00% |
65% to 75% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 656 | $ 710 |
% of Total | 4.90% | 5.40% |
76% to 80% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 20 | $ 21 |
% of Total | 0.10% | 0.20% |
Greater than 80% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 47 | $ 58 |
% of Total | 0.40% | 0.40% |
Performing | ||
Residential Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 10,326 | $ 9,408 |
% of Total | 96.90% | 96.70% |
Nonperforming | ||
Residential Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 333 | $ 326 |
% of Total | 3.10% | 3.30% |
Investments (Past Due and Inter
Investments (Past Due and Interest Accrual Status of Mortgage Loans) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past Due | $ 451 | $ 431 |
Nonaccrual Status | 359 | 364 |
Commercial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past Due | 0 | 2 |
Nonaccrual Status | 0 | 0 |
Agricultural | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past Due | 118 | 103 |
Nonaccrual Status | 39 | 46 |
Residential | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past Due | 333 | 326 |
Nonaccrual Status | $ 320 | $ 318 |
Investments (Net Unrealized Inv
Investments (Net Unrealized Investment Gains Losses) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Components of net unrealized investment gains (losses) included in accumulated other comprehensive loss | |||
Fixed maturity securities | $ 36,633 | $ 18,164 | |
Fixed maturity securities with noncredit OTTI losses included in AOCI | (59) | (76) | $ (112) |
Total fixed maturity securities | 36,574 | 18,088 | |
Equity securities | 558 | 422 | |
Derivatives | 3,766 | 2,350 | |
Other | 333 | 287 | |
Subtotal | 41,231 | 21,147 | |
Future policy benefits | (4,410) | (163) | |
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | (2) | 0 | |
DAC, VOBA and DSI | (2,380) | (1,273) | |
Policyholder dividend obligation | (3,343) | (1,783) | |
Subtotal | (10,135) | (3,219) | |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | 23 | 27 | |
Deferred income tax benefit (expense) | (10,473) | (6,151) | |
Net unrealized investment gains (losses) | 20,646 | 11,804 | |
Net unrealized investment gains (losses) attributable to noncontrolling interests | (11) | (31) | |
Net unrealized investment gains (losses) attributable to MetLife, Inc. | $ 20,635 | $ 11,773 |
Investments (Changes in Fixed M
Investments (Changes in Fixed Maturity Securities with Noncredit OTTI Losses) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Changes in fixed maturity securities with noncredit OTTI losses in accumulated other comprehensive income (loss) | ||
Balance, beginning of period | $ (76) | $ (112) |
Noncredit OTTI losses recognized | 6 | 6 |
Securities sold with previous noncredit OTTI loss | 23 | 125 |
Subsequent changes in estimated fair value | (12) | (95) |
Balance, end of period | $ (59) | $ (76) |
Investments (Changes in Net Unr
Investments (Changes in Net Unrealized Investment Gains Losses) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Changes In Net Unrealized Investment Gains Losses Included In Accumulated Other Comprehensive Loss [Abstract] | |
Balance, beginning of period | $ 11,773 |
Fixed maturity securities on which noncredit OTTI losses have been recognized | 17 |
Unrealized investment gains (losses) during the period | 20,067 |
Unrealized investment gains (losses) relating to: | |
Future policy benefits | (4,247) |
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | (2) |
DAC, VOBA and DSI | (1,107) |
Policyholder dividend obligation | (1,560) |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | (4) |
Deferred income tax benefit (expense) | (4,322) |
Net unrealized investment gains (losses) | 20,615 |
Net unrealized investment gains (losses) attributable to noncontrolling interests | 20 |
Balance, end of period | 20,635 |
Change in net unrealized investment gains (losses) | 8,842 |
Change in net unrealized investment gains (losses) attributable to noncontrolling interests | 20 |
Change in net unrealized investment gains (losses) attributable to MetLife, Inc. | $ 8,862 |
Investments (Securities Lending
Investments (Securities Lending) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties (2) | $ 32,006 | $ 30,197 |
Security collateral on deposit from counterparties | 198 | 50 |
Reinvestment portfolio — estimated fair value | 32,330 | 30,258 |
Amortized cost | ||
Securities Financing Transaction [Line Items] | ||
Securities loaned | 26,471 | 27,223 |
Estimated fair value | ||
Securities Financing Transaction [Line Items] | ||
Securities loaned | $ 31,392 | $ 29,646 |
Investments (Securities Lendi55
Investments (Securities Lending Remaining Tenor) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Securities Financing Transaction [Line Items] | ||
Total | $ 32,006 | $ 30,197 |
% of Total | 100.00% | 100.00% |
U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 29,410 | $ 27,259 |
% of Total | 91.90% | 90.30% |
Agency RMBS | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 1,265 | $ 1,551 |
% of Total | 4.00% | 5.10% |
Foreign government | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 911 | $ 998 |
% of Total | 2.80% | 3.30% |
U.S. corporate | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 408 | $ 389 |
% of Total | 1.30% | 1.30% |
Foreign corporate | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 12 | $ 0 |
% of Total | 0.00% | 0.00% |
Maturity Overnight | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 8,386 | $ 10,127 |
Maturity Overnight | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Total | 8,379 | 10,116 |
Maturity Overnight | Agency RMBS | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 0 |
Maturity Overnight | Foreign government | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 2 |
Maturity Overnight | U.S. corporate | ||
Securities Financing Transaction [Line Items] | ||
Total | 7 | 9 |
Maturity Overnight | Foreign corporate | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 0 |
Maturity Less than 30 Days | ||
Securities Financing Transaction [Line Items] | ||
Total | 10,841 | 12,998 |
Maturity Less than 30 Days | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Total | 9,517 | 11,157 |
Maturity Less than 30 Days | Agency RMBS | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 951 |
Maturity Less than 30 Days | Foreign government | ||
Securities Financing Transaction [Line Items] | ||
Total | 911 | 510 |
Maturity Less than 30 Days | U.S. corporate | ||
Securities Financing Transaction [Line Items] | ||
Total | 401 | 380 |
Maturity Less than 30 Days | Foreign corporate | ||
Securities Financing Transaction [Line Items] | ||
Total | 12 | 0 |
Maturity 30 to 90 Days | ||
Securities Financing Transaction [Line Items] | ||
Total | 12,779 | 7,072 |
Maturity 30 to 90 Days | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Total | 11,514 | 5,986 |
Maturity 30 to 90 Days | Agency RMBS | ||
Securities Financing Transaction [Line Items] | ||
Total | 1,265 | 600 |
Maturity 30 to 90 Days | Foreign government | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 486 |
Maturity 30 to 90 Days | U.S. corporate | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 0 |
Maturity 30 to 90 Days | Foreign corporate | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 0 | $ 0 |
Investments (Invested Assets on
Investments (Invested Assets on Deposit, Held In Trust and Pledged as Collateral) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Invested assets on deposit (regulatory deposits) | $ 10,353 | $ 9,089 |
Invested assets held in trust (collateral financing arrangements and reinsurance agreements) | 11,767 | 10,443 |
Invested assets pledged as collateral | 28,606 | 23,145 |
Total invested assets on deposit, held in trust and pledged as collateral | $ 50,726 | $ 42,677 |
Investments (Consolidated Varia
Investments (Consolidated Variable Interest Entities) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||
Total Assets | $ 3,798 | $ 6,101 |
Total Liabilities | 47 | 2,141 |
MRSC collateral financing arrangement | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 3,559 | 3,374 |
Total Liabilities | 0 | 0 |
Operating joint venture | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 0 | 2,465 |
Total Liabilities | 0 | 2,079 |
CSEs (assets (primarily loans) and liabilities (primarily debt)) | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 172 | 186 |
Total Liabilities | 47 | 62 |
Other | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 67 | 76 |
Total Liabilities | $ 0 | $ 0 |
Investments (Unconsolidated Var
Investments (Unconsolidated Variable Interest Entities) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | $ 86,625 | $ 76,597 |
Carrying Amount Liability | 91,474 | 79,059 |
Other limited partnership interests | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 6,267 | 5,186 |
Carrying Amount Liability | 10,470 | 7,074 |
Other invested assets | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 2,131 | 1,604 |
Carrying Amount Liability | 2,747 | 2,161 |
FVO and trading securities | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 546 | 586 |
Carrying Amount Liability | 546 | 586 |
Real estate joint ventures | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 118 | 65 |
Carrying Amount Liability | 148 | 82 |
Other | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 117 | 71 |
Carrying Amount Liability | 117 | 71 |
Structured securities (RMBS, CMBS, and ABS) | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 74,273 | 65,824 |
Carrying Amount Liability | 74,273 | 65,824 |
U.S. corporate and foreign corporate securities | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 3,173 | 3,261 |
Carrying Amount Liability | $ 3,173 | $ 3,261 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net Investment Income [Line Items] | ||||
Less: Investment expenses | $ 285 | $ 313 | $ 581 | $ 615 |
Subtotal | 4,887 | 4,947 | 9,446 | 10,408 |
Securities Investment | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 4,979 | 5,309 | 9,928 | 10,391 |
Subtotal | 4,694 | 4,996 | 9,347 | 9,776 |
Fixed maturity securities | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 3,564 | 3,672 | 7,218 | 7,213 |
Equity securities | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 33 | 35 | 70 | 66 |
Actively traded securities and FVO general account securities | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 10 | 2 | 16 | 39 |
Changes in estimated fair value included in net investment income | (1) | (38) | (1) | (40) |
Mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 851 | 801 | 1,658 | 1,531 |
Policy loans | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 147 | 151 | 296 | 303 |
Real estate and real estate joint ventures | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 149 | 323 | 306 | 534 |
Other limited partnership interests | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 120 | 250 | 166 | 465 |
Cash, cash equivalents and short-term investments | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 43 | 37 | 83 | 72 |
Operating joint ventures | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 11 | 8 | 23 | 16 |
Other | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 51 | 30 | 92 | 152 |
Consolidated Securitization Entities And Fair Value Option Contractholder-Directed Unit-Linked | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 193 | (49) | 99 | 632 |
FVO contractholder-directed unit-linked investments | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 191 | (55) | 94 | 622 |
Changes in estimated fair value included in net investment income | 80 | (288) | (120) | 261 |
Commercial mortgage loans | Consolidated Securitization Entities | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 2 | 5 | 5 | 9 |
Securities | Consolidated Securitization Entities | ||||
Net Investment Income [Line Items] | ||||
Subtotal | $ 0 | $ 1 | $ 0 | $ 1 |
Investments (Components of Net
Investments (Components of Net Investment Gains Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Marketable Securities, Gain (Loss) [Abstract] | ||||
Fixed maturity securities — net gains (losses) on sales and disposals | $ 165 | $ 117 | $ 263 | $ 268 |
Equity securities — net gains (losses) on sales and disposals | 13 | 17 | 19 | 25 |
Other net investment gains (losses): | ||||
Mortgage loans | (98) | (9) | (162) | (52) |
Real estate and real estate joint ventures | 45 | (33) | 47 | (6) |
Other limited partnership interests | (14) | (9) | (41) | 7 |
Other | (57) | (27) | (75) | (4) |
Subtotal | 24 | 45 | (108) | 209 |
FVO CSEs - changes in estimated fair value subsequent to consolidation: | ||||
Commercial mortgage loans | (1) | 1 | 0 | (2) |
Securities | 0 | 0 | 1 | 0 |
Long-term debt — related to commercial mortgage loans | 0 | 1 | 0 | 2 |
Non-investment portfolio gains (losses) | 243 | (180) | 388 | (56) |
Non-investment portfolio gains (losses) | 242 | (178) | 389 | (56) |
Total net investment gains (losses) | 266 | (133) | 281 | 153 |
Fixed Maturity Securities | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | (14) | (2) | (92) | (20) |
Net investment gains (losses) | 151 | 115 | 171 | 248 |
Consumer | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | 0 | 0 | 0 | (3) |
Industrial | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | (8) | 0 | (79) | (2) |
Communications | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | 0 | 0 | (3) | 0 |
Corporate fixed maturity securities | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | (8) | 0 | (82) | (5) |
RMBS | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | (4) | (2) | (8) | (15) |
ABS | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | (2) | 0 | (2) | 0 |
Equity securities | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | (16) | (9) | (67) | (9) |
Net investment gains (losses) | (3) | 8 | (48) | 16 |
Common Stock | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | $ (16) | $ (9) | $ (67) | $ (9) |
Investments (Sales or Disposals
Investments (Sales or Disposals and Impairments of Fixed Maturity and Equity Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Fixed Maturity Securities | ||||
Components of Sales or Disposals of Fixed Maturity and Equity Securities | ||||
Proceeds | $ 26,267 | $ 29,321 | $ 58,261 | $ 59,327 |
Gross investment gains | 283 | 338 | 715 | 676 |
Gross investment losses | (118) | (221) | (452) | (408) |
Total OTTI losses recognized in earnings: | ||||
Total OTTI losses recognized in earnings | (14) | (2) | (92) | (20) |
Net investment gains (losses) | 151 | 115 | 171 | 248 |
Equity securities | ||||
Components of Sales or Disposals of Fixed Maturity and Equity Securities | ||||
Proceeds | 28 | 103 | 87 | 156 |
Gross investment gains | 14 | 20 | 24 | 35 |
Gross investment losses | (1) | (3) | (5) | (10) |
Total OTTI losses recognized in earnings: | ||||
Total OTTI losses recognized in earnings | (16) | (9) | (67) | (9) |
Net investment gains (losses) | $ (3) | $ 8 | $ (48) | $ 16 |
Investments (Credit Loss Rollfo
Investments (Credit Loss Rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Balance, beginning of period | $ 270 | $ 357 | $ 277 | $ 357 |
Additions: | ||||
Initial impairments — credit loss OTTI on securities not previously impaired | 0 | 0 | 0 | 2 |
Additional impairments — credit loss OTTI on securities previously impaired | 6 | 2 | 8 | 13 |
Reductions: | ||||
Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI | (17) | (78) | (26) | (91) |
Securities impaired to net present value of expected future cash flows | (1) | 0 | (1) | 0 |
Increase in cash flows — accretion of previous credit loss OTTI | 0 | (1) | 0 | (1) |
Balance, end of period | $ 258 | $ 280 | $ 258 | $ 280 |
Investments (Fixed Maturity a63
Investments (Fixed Maturity and Equity Securities Available-For-Sale - Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of Certain Fixed Maturity Securities | |||
Gross Unrealized OTTI Loss | $ 59 | $ 76 | $ 112 |
Available-for-sale Securities, Debt Securities | 387,508 | 351,402 | |
CMBS | |||
Summary of Certain Fixed Maturity Securities | |||
Gross Unrealized OTTI Loss | 1 | 1 | |
Available-for-sale Securities, Debt Securities | 13,157 | 12,633 | |
Gross Unrealized Gain | 660 | 347 | |
Non-income producing fixed maturity securities | |||
Summary of Certain Fixed Maturity Securities | |||
Available-for-sale Securities, Debt Securities | 115 | 54 | |
Gross Unrealized Gain | $ 6 | $ 12 |
Investments (Evaluation of Avai
Investments (Evaluation of Available-For-Sale Securities for OTTI and Evaluating Temporarily Impaired AFS Securities - Narrative) (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2016USD ($)Contracts | Dec. 31, 2015USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||
Equity securities available-for-sale with gross unrealized loss of equal to or greater than stated percentage | 20.00% | |
Fixed Maturity Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Change in Gross Unrealized Temporary Loss | $ (2,000) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 3,400 | |
Gross Unrealized Temporary Loss | 1,903 | $ 1,970 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Change in Gross Unrealized Temporary Loss | (76) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 82 | |
Gross Unrealized Temporary Loss | 58 | 51 |
Non-redeemable preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Temporary Loss | 58 | $ 49 |
20% or more | Six months or greater | Fixed Maturity Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 418 | |
Number of Securities | Contracts | 129 | |
20% or more | Six months or greater | Fixed Maturity Securities | Investment Grade | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 228 | |
Number of Securities | Contracts | 60 | |
Percentage of gross unrealized loss | 55.00% | |
20% or more | Six months or greater | Fixed Maturity Securities | Below Investment Grade | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 190 | |
Number of Securities | Contracts | 69 | |
Percentage of gross unrealized loss | 45.00% | |
20% or more | Twelve months or greater | Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities | Contracts | 7 | |
Gross Unrealized Temporary Loss | $ 49 | |
20% or more | Twelve months or greater | Non-redeemable preferred stock | Aaa/Aa/A | Financial Services Industry | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Percentage of gross unrealized loss | 63.00% |
Investments (Mortgage Loans - N
Investments (Mortgage Loans - Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Mortgage Loans on Real Estate [Line Items] | |||||
Financing Receivable, Significant Purchases | $ 1,200 | $ 785 | $ 1,400 | $ 2,200 | |
Percentage of Mortgage Loans Classified as Performing | 99.00% | 99.00% | 99.00% | ||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | 0 | 0 | 0 | |
Commercial | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Impaired Financing Receivable, Average Recorded Investment | $ 184 | $ 160 | $ 142 | $ 165 | |
Agricultural | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Impaired Financing Receivable, Average Recorded Investment | 52 | 64 | 57 | 63 | |
Estimated fair value of mortgage loans held-for-investment | 13,900 | 13,900 | $ 13,500 | ||
Residential | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Impaired Financing Receivable, Average Recorded Investment | 175 | $ 70 | 160 | $ 59 | |
Estimated fair value of mortgage loans held-for-investment | $ 11,000 | $ 11,000 | $ 9,900 |
Investments (Cash Equivalents -
Investments (Cash Equivalents - Narrative) (Details) - USD ($) $ in Billions | Jun. 30, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Cash equivalents | $ 7.9 | $ 7.5 |
Investments (Concentrations of
Investments (Concentrations of Credit Risk - Narrative) (Details) - USD ($) $ in Billions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Securities holdings exposure in single issuer greater than stated percentage of Company's equity | 10.00% | 10.00% |
Foreign government | Japan | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Government and agency fixed maturity securities | $ 29 | $ 20.9 |
Fixed maturity and equity securities | Japan | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Government and agency fixed maturity securities | $ 33.5 | $ 25.4 |
Investments (Securities Lendi68
Investments (Securities Lending - Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Amortized cost | ||
Securities Financing Transaction [Line Items] | ||
Securities Loaned | $ 26,471 | $ 27,223 |
Estimated fair value | ||
Securities Financing Transaction [Line Items] | ||
Securities Loaned | 31,392 | $ 29,646 |
Reserve for Off-balance Sheet Activities | Amortized cost | ||
Securities Financing Transaction [Line Items] | ||
Securities Loaned | 106 | |
Reserve for Off-balance Sheet Activities | Estimated fair value | ||
Securities Financing Transaction [Line Items] | ||
Securities Loaned | $ 106 |
Investments (Securities Lendi69
Investments (Securities Lending Remaining Tenor - Narrative) (Details) - Estimated fair value $ in Billions | Jun. 30, 2016USD ($) |
Securities Financing Transaction [Line Items] | |
Securities Loaned, Not Subject to Master Netting Arrangement | $ 8.2 |
Securities Investment | |
Securities Financing Transaction [Line Items] | |
Percentage of Reinvestment Portfolio in Fixed Maturity Securities | 65.00% |
Minimum | U.S. government and agency | |
Securities Financing Transaction [Line Items] | |
Percentage Of US Treasury And Agency Securities At Estimated Fair Value Of Securities On Loan Relating To Cash Collateral On Open | 99.00% |
Investments (Repurchase Agreeme
Investments (Repurchase Agreement - Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Offsetting Assets [Line Items] | ||
Fair Value of Securities Received as Collateral that Have Been Resold or Repledged | $ 106 | |
Receivable Under Reverse Repurchase Agreements | 300 | |
Payable Under Repurchase Agreements | 300 | |
Amount Offset in Balance Sheet | 300 | |
Maximum | ||
Offsetting Assets [Line Items] | ||
Net Amount Assets (Liabilities) From Repurchase, Reverse Repurchase Agreements | 1 | |
Corporate fixed maturity securities | ||
Offsetting Assets [Line Items] | ||
Payable Under Repurchase Agreements | $ 300 | |
Fixed Maturity Securities | ||
Offsetting Assets [Line Items] | ||
Percentage of Estimated Fair Value of Borrowed Securities at Inception Based on Pledged Cash Collateral | 98.00% | |
Securities Loaned, Not Subject to Master Netting Arrangement | $ 320 | $ 0 |
Securities Borrowed, Not Subject to Master Netting Arrangement | $ 308 | $ 0 |
Fixed Maturity Securities | Minimum | ||
Offsetting Assets [Line Items] | ||
Percentage of Estimated Fair Value of Securities Loaned at Inception Based on Collateral Obtained | 95.00% |
Investments (Variable Interest
Investments (Variable Interest Entities - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Variable Interest Entity [Line Items] | |||||
Tax credits guaranteed by third parties that reduce maximum exposure to loss related to other invested assets | $ 162 | $ 162 | $ 179 | ||
Financial or other support to investees designated as VIEs | 0 | $ 0 | |||
Consolidated Entities | |||||
Variable Interest Entity [Line Items] | |||||
Variable interest, maximum exposure to loss in consolidated securitization entities | 106 | 106 | $ 105 | ||
Interest expense on long-term debt held by consolidated securitization entities | $ 2 | $ 1 | $ 3 | $ 2 | |
Minimum | Consolidated Entities | |||||
Variable Interest Entity [Line Items] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 2.25% | 2.25% | 2.25% | ||
Maximum | Consolidated Entities | |||||
Variable Interest Entity [Line Items] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 5.57% | 5.57% | 5.57% |
Investments (Net Investment Gai
Investments (Net Investment Gains Losses - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gains (losses) from foreign currency transactions | $ 289 | $ (243) | $ 368 | $ (82) |
Derivatives (Primary Risks) (De
Derivatives (Primary Risks) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | $ 400,821 | $ 404,844 |
Estimated Fair Value Assets | 23,563 | 14,406 |
Estimated Fair Value Liabilities | 8,704 | 7,049 |
Derivatives Designated as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 48,051 | 46,808 |
Estimated Fair Value Assets | 6,140 | 4,358 |
Estimated Fair Value Liabilities | 2,204 | 2,074 |
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 8,141 | 9,367 |
Estimated Fair Value Assets | 3,043 | 2,277 |
Estimated Fair Value Liabilities | 175 | 223 |
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 5,435 | 5,528 |
Estimated Fair Value Assets | 2,831 | 2,215 |
Estimated Fair Value Liabilities | 20 | 12 |
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member] | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,221 | 2,154 |
Estimated Fair Value Assets | 26 | 62 |
Estimated Fair Value Liabilities | 155 | 159 |
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member] | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,485 | 1,685 |
Estimated Fair Value Assets | 186 | 0 |
Estimated Fair Value Liabilities | 0 | 52 |
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 30,198 | 25,956 |
Estimated Fair Value Assets | 3,077 | 1,813 |
Estimated Fair Value Liabilities | 1,769 | 1,803 |
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 2,332 | 2,190 |
Estimated Fair Value Assets | 695 | 487 |
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 | 1,610 | 105 |
Estimated Fair Value Assets | 56 | 23 |
Estimated Fair Value Liabilities | 2 | 0 |
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 26,256 | 23,661 |
Estimated Fair Value Assets | 2,326 | 1,303 |
Estimated Fair Value Liabilities | 1,767 | 1,803 |
Derivatives Designated as Hedging Instruments: | Foreign Operations Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 9,712 | 11,485 |
Estimated Fair Value Assets | 20 | 268 |
Estimated Fair Value Liabilities | 260 | 48 |
Derivatives Designated as Hedging Instruments: | Foreign Operations Hedges [Member] | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,466 | 3,916 |
Estimated Fair Value Assets | 4 | 63 |
Estimated Fair Value Liabilities | 61 | 12 |
Derivatives Designated as Hedging Instruments: | Foreign Operations Hedges [Member] | Currency options | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 8,246 | 7,569 |
Estimated Fair Value Assets | 16 | 205 |
Estimated Fair Value Liabilities | 199 | 36 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 352,770 | 358,036 |
Estimated Fair Value Assets | 17,423 | 10,048 |
Estimated Fair Value Liabilities | 6,500 | 4,975 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 74,587 | 89,336 |
Estimated Fair Value Assets | 9,659 | 5,111 |
Estimated Fair Value Liabilities | 3,472 | 2,247 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate forwards | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 128 | 43 |
Estimated Fair Value Assets | 11 | 1 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate floors | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 15,201 | 23,837 |
Estimated Fair Value Assets | 407 | 311 |
Estimated Fair Value Liabilities | 47 | 48 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate caps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 79,030 | 68,928 |
Estimated Fair Value Assets | 36 | 105 |
Estimated Fair Value Liabilities | 2 | 3 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate futures | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 7,969 | 5,808 |
Estimated Fair Value Assets | 2 | 4 |
Estimated Fair Value Liabilities | 12 | 7 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate options | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 23,156 | 30,234 |
Estimated Fair Value Assets | 2,417 | 1,177 |
Estimated Fair Value Liabilities | 1 | 30 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity total return swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 2,775 | 0 |
Estimated Fair Value Assets | 172 | 0 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Synthetic GICs | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 3,962 | 4,216 |
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 | 12,655 | 11,081 |
Estimated Fair Value Assets | 1,120 | 766 |
Estimated Fair Value Liabilities | 522 | 431 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 17,822 | 11,724 |
Estimated Fair Value Assets | 1,083 | 154 |
Estimated Fair Value Liabilities | 260 | 220 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Currency futures | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,009 | 930 |
Estimated Fair Value Assets | 0 | 0 |
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 | 6,137 | 9,590 |
Estimated Fair Value Assets | 218 | 466 |
Estimated Fair Value Liabilities | 6 | 189 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Credit default swaps — purchased | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,823 | 1,870 |
Estimated Fair Value Assets | 16 | 28 |
Estimated Fair Value Liabilities | 37 | 34 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Credit default swaps — written | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 11,183 | 10,311 |
Estimated Fair Value Assets | 106 | 78 |
Estimated Fair Value Liabilities | 10 | 13 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity futures | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 12,649 | 7,206 |
Estimated Fair Value Assets | 2 | 63 |
Estimated Fair Value Liabilities | 194 | 18 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity index options | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 55,075 | 55,682 |
Estimated Fair Value Assets | 1,906 | 1,542 |
Estimated Fair Value Liabilities | 1,218 | 1,041 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity variance swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 23,608 | 23,437 |
Estimated Fair Value Assets | 209 | 195 |
Estimated Fair Value Liabilities | 682 | 636 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity total return swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 4,001 | 3,803 |
Estimated Fair Value Assets | 59 | 47 |
Estimated Fair Value Liabilities | $ 35 | $ 58 |
Derivatives (Net Derivative Gai
Derivatives (Net Derivative Gains Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Components of Net Derivatives Gains (Losses) | ||||
Derivatives and hedging gains (losses) | $ 2,525 | $ (1,733) | $ 5,029 | $ (885) |
Embedded derivatives gains (losses) | (4,624) | 821 | (5,793) | 794 |
Total net derivative gains (losses) | $ (2,099) | $ (912) | $ (764) | $ (91) |
Derivatives (Earned Income On D
Derivatives (Earned Income On Derivatives) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest Income (Expense), Nonoperating, Net | $ 323 | $ 302 | $ 672 | $ 623 |
Derivatives Designated as Hedging Instruments: | Net investment income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest Income (Expense), Nonoperating, Net | 73 | 45 | 130 | 103 |
Derivatives Designated as Hedging Instruments: | Interest credited to policyholder account balances | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest Income (Expense), Nonoperating, Net | 1 | 13 | 7 | 15 |
Derivatives Designated as Hedging Instruments: | Other expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest Income (Expense), Nonoperating, Net | (4) | 1 | (6) | (2) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net investment income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest Income (Expense), Nonoperating, Net | (1) | (1) | (1) | (2) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest Income (Expense), Nonoperating, Net | 248 | 240 | 531 | 501 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder benefits and claims | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest Income (Expense), Nonoperating, Net | $ 6 | $ 4 | $ 11 | $ 8 |
Derivatives (Gains Losses Recog
Derivatives (Gains Losses Recognized in Income Not Designated or Qualifying) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 287 | $ (336) | $ 788 | $ (400) |
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 | 2,621 | (2,265) | 5,058 | (1,514) |
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 | 1,657 | (1,459) | 3,629 | (907) |
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 | 1,196 | (590) | 1,719 | 79 |
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 | (22) | 4 | (27) | (7) |
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 | (34) | (3) | (31) |
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 | (213) | (186) | (260) | (648) |
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) | (2) | (14) | (6) |
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 | 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 | 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 | (10) | 1 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net investment income | Credit derivatives — written | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 9 | 0 | 0 | 1 |
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 | (3) | (3) | (14) | (7) |
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 | (21) | (45) | 52 | (133) |
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 | 55 | (18) | 97 | (7) |
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 | (11) | 0 | (12) | 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 | 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 | 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 | $ (65) | $ (27) | $ (33) | $ (126) |
Derivatives (Fair Value Hedges)
Derivatives (Fair Value Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | $ 287 | $ (336) | $ 788 | $ (400) |
Net Derivative Gains (Losses) Recognized for Hedged Items | (286) | 327 | (778) | 389 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | 1 | (9) | 10 | (11) |
Interest rate swaps | Fixed Maturity Securities | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | (3) | 4 | (11) | (1) |
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | (2) | 7 | 5 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | (3) | 2 | (4) | 4 |
Interest rate swaps | Policyholder account balances [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 197 | (366) | 543 | (169) |
Net Derivative Gains (Losses) Recognized for Hedged Items | (200) | 362 | (548) | 164 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | (3) | (4) | (5) | (5) |
Foreign currency swaps | Foreign-denominated fixed maturity securities | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 7 | (3) | 6 | 7 |
Net Derivative Gains (Losses) Recognized for Hedged Items | (8) | 5 | (6) | (3) |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | (1) | 2 | 0 | 4 |
Foreign currency swaps | Foreign-denominated policyholder account balances [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | (51) | 110 | (26) | (139) |
Net Derivative Gains (Losses) Recognized for Hedged Items | 48 | (112) | 23 | 133 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | (3) | (2) | (3) | (6) |
Foreign currency forwards | Foreign-denominated fixed maturity securities | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 137 | (81) | 276 | (98) |
Net Derivative Gains (Losses) Recognized for Hedged Items | (126) | 74 | (254) | 90 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | $ 11 | $ (7) | $ 22 | $ (8) |
Derivatives (Cash Flow Hedges)
Derivatives (Cash Flow Hedges) (Details) - Cash Flow Hedges [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivatives in cash flow hedging relationships | ||||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | $ 800 | $ (395) | $ 1,496 | $ (208) |
Interest rate swaps | ||||
Derivatives in cash flow hedging relationships | ||||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | 140 | (269) | 353 | (95) |
Foreign currency swaps | ||||
Derivatives in cash flow hedging relationships | ||||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | 622 | (106) | 1,096 | (108) |
Credit forwards [Member] | ||||
Derivatives in cash flow hedging relationships | ||||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | 0 | 0 | 0 | 0 |
Interest rate forwards | ||||
Derivatives in cash flow hedging relationships | ||||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | 38 | (20) | 47 | (5) |
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) | (249) | 298 | 69 | (261) |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 5 | (3) | 2 | 4 |
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) | 18 | 7 | 28 | 12 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 1 | (1) | 0 | 2 |
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) | (269) | 290 | 37 | (277) |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 4 | (2) | 2 | 2 |
Net derivative gains (losses) | Credit forwards [Member] | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 3 | 0 | 3 | 0 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 | 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) | (1) | 1 | 1 | 4 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 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) | 5 | 4 | 9 | 8 |
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) | 4 | 3 | 7 | 6 |
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) | (1) | (1) | (1) | (1) |
Net Investment Income | Credit forwards [Member] | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 0 | 1 | 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) | 2 | 1 | 3 | 2 |
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 | 2 | 2 |
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 | 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 | 1 | 1 |
Other expenses | Credit forwards [Member] | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 0 | 0 | 0 | 0 |
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 | $ 1 | $ 1 |
Derivatives (Hedges of Net Inve
Derivatives (Hedges of Net Investments in Foreign Operations) (Details) - Foreign Operations Hedges [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | $ (250) | $ 43 | $ (649) | $ 113 |
Foreign currency forwards | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | (104) | 45 | (335) | 156 |
Currency options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | $ (146) | $ (2) | $ (314) | $ (43) |
Derivatives (Credit Derivatives
Derivatives (Credit Derivatives) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 96 | $ 65 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 11,183 | $ 10,311 |
Weighted Average Years to Maturity | 4 years 4 months | 4 years 1 month |
Aaa/Aa/A | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 19 | $ 12 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 2,465 | $ 2,296 |
Weighted Average Years to Maturity | 3 years 7 months | 3 years 2 months |
Aaa/Aa/A | Single name credit default swaps (corporate) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 5 | $ 6 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 529 | $ 661 |
Weighted Average Years to Maturity | 3 years 2 months | 2 years 6 months |
Aaa/Aa/A | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 14 | $ 6 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 1,936 | $ 1,635 |
Weighted Average Years to Maturity | 3 years 8 months | 3 years 5 months |
Baa | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 71 | $ 45 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 8,427 | $ 7,212 |
Weighted Average Years to Maturity | 4 years 7 months | 4 years 5 months |
Baa | Single name credit default swaps (corporate) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 5 | $ 8 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 956 | $ 1,349 |
Weighted Average Years to Maturity | 2 years 5 months | 2 years 6 months |
Baa | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 66 | $ 37 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 7,471 | $ 5,863 |
Weighted Average Years to Maturity | 4 years 11 months | 4 years 10 months |
Ba | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ (1) | $ (3) |
Maximum Amount of Future Payments under Credit Default Swaps | $ 160 | $ 164 |
Weighted Average Years to Maturity | 11 months | 1 year 6 months |
Ba | Single name credit default swaps (corporate) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ (1) | $ (2) |
Maximum Amount of Future Payments under Credit Default Swaps | $ 60 | $ 64 |
Weighted Average Years to Maturity | 1 year 8 months | 2 years 4 months |
Ba | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 0 | $ (1) |
Maximum Amount of Future Payments under Credit Default Swaps | $ 100 | $ 100 |
Weighted Average Years to Maturity | 6 months | 1 year |
B | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 7 | $ 11 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 131 | $ 639 |
Weighted Average Years to Maturity | 4 years 1 month | 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 | $ 7 | $ 11 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 131 | $ 639 |
Weighted Average Years to Maturity | 4 years 1 month | 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 ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Offsetting Assets [Line Items] | ||
Gross estimated fair value of derivative assets | $ 23,801 | $ 14,684 |
Gross estimated fair value of derivative liabilities | 8,719 | 7,090 |
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 | 23,801 | 14,684 |
Estimated fair value of derivative liabilities presented in the consolidated balance sheets | 8,719 | 7,090 |
Net amount of derivative assets after application of master netting agreements and cash collateral | 675 | 519 |
Net amount of derivative liabilities after application of master netting agreements and cash collateral | 115 | 86 |
Over the Counter [Member] | ||
Offsetting Assets [Line Items] | ||
Gross estimated fair value of derivative assets | 19,961 | 13,017 |
Gross estimated fair value of derivative liabilities | 6,710 | 5,848 |
Gross estimated fair value of derivative assets | (5,279) | (4,368) |
Gross estimated fair value of derivative liabilities | (5,279) | (4,368) |
Cash collateral on derivative assets | (11,291) | (6,140) |
Cash collateral on derivative liabilities | 0 | (7) |
Securities collateral on derivative assets | (3,109) | (2,078) |
Securities collateral on derivative liabilities | (1,332) | (1,395) |
Cleared [Member] | ||
Offsetting Assets [Line Items] | ||
Gross estimated fair value of derivative assets | 3,836 | 1,600 |
Gross estimated fair value of derivative liabilities | 1,801 | 1,217 |
Gross estimated fair value of derivative assets | (1,788) | (1,200) |
Gross estimated fair value of derivative liabilities | (1,788) | (1,200) |
Cash collateral on derivative assets | (1,658) | (378) |
Cash collateral on derivative liabilities | 0 | (10) |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | 0 | 0 |
Exchange-traded | ||
Offsetting Assets [Line Items] | ||
Gross estimated fair value of derivative assets | 4 | 67 |
Gross estimated fair value of derivative liabilities | 208 | 25 |
Gross estimated fair value of derivative assets | (1) | (1) |
Gross estimated fair value of derivative liabilities | (1) | (1) |
Cash collateral on derivative assets | 0 | 0 |
Cash collateral on derivative liabilities | (107) | (20) |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | $ (97) | $ (3) |
Derivatives (Credit Risk on Fre
Derivatives (Credit Risk on Freestanding Derivatives) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in a Net Liability Position (1) | $ 1,429 | $ 1,477 |
Estimated Fair Value Of Incremental Collateral Provided Upon A One Notch Downgrade In The Company's Credit Rating | 1 | 1 |
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 | 1 | 1 |
Fixed maturity securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided: | 1,500 | 1,539 |
Cash | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided: | 0 | 8 |
Derivatives Subject to Credit- Contingent Provisions | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in a Net Liability Position (1) | 1,395 | 1,270 |
Estimated Fair Value Of Incremental Collateral Provided Upon A One Notch Downgrade In The Company's Credit Rating | 1 | 1 |
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 | 1 | 1 |
Derivatives Subject to Credit- Contingent Provisions | Fixed maturity securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided: | 1,449 | 1,365 |
Derivatives Subject to Credit- Contingent Provisions | Cash | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided: | 0 | 4 |
Derivatives Not Subject to Credit- Contingent Provisions | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in a Net Liability Position (1) | 34 | 207 |
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: | 51 | 174 |
Derivatives Not Subject to Credit- Contingent Provisions | Cash | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided: | $ 0 | $ 4 |
Derivatives (Embedded Derivativ
Derivatives (Embedded Derivatives) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Net embedded derivatives within asset host contracts | $ 351 | $ 171 |
Net embedded derivatives within liability host contracts | 7,412 | 935 |
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 | 544 | 356 |
Direct guaranteed minimum benefits | Policyholder account balances [Member] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Net embedded derivatives within liability host contracts | 5,582 | (20) |
Funds withheld on assumed reinsurance | Other invested assets | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Net embedded derivatives within asset host contracts | 64 | 35 |
Assumed guaranteed minimum benefits | Policyholder account balances [Member] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Net embedded derivatives within liability host contracts | 1,748 | 965 |
Funds withheld on ceded reinsurance | Other liabilities | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Net embedded derivatives within liability host contracts | 76 | (14) |
Other | Policyholder account balances [Member] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Net embedded derivatives within liability host contracts | 6 | 4 |
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 | $ (257) | $ (220) |
Derivatives (Changes in Estimat
Derivatives (Changes in Estimated Fair Value Related to Embedded Derivatives) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net derivatives gains (losses) | $ (4,624) | $ 821 | $ (5,793) | $ 794 |
Net derivative gains (losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net derivatives gains (losses) | (4,624) | 821 | (5,793) | 794 |
Policyholder benefits and claims | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net derivatives gains (losses) | $ 60 | $ (43) | $ 105 | $ (19) |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | |||||
Estimated Fair Value Assets | $ 23,563 | $ 23,563 | $ 14,406 | ||
Estimated Fair Value Liabilities | 8,704 | 8,704 | 7,049 | ||
Maximum Amount of Future Payments under Credit Default Swaps | 11,183 | 11,183 | 10,311 | ||
Estimated Fair Value of Credit Default Swaps | 96 | 96 | 65 | ||
Excess securities collateral received on derivatives | 792 | 792 | $ 89 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net derivatives gains (losses) | (4,624) | $ 821 | $ (5,793) | $ 794 | |
Derivative, Average Remaining Maturity | 4 years 4 months | 4 years 1 month | |||
Derivative Instrument Detail [Abstract] | |||||
Net amounts reclassified into net derivatives gains (losses) on discontinued cash flow hedges | (1) | 3 | $ (5) | 3 | |
Hedging exposure to variability in future cash flows for specific length of time | 6 years | 5 years | |||
Accumulated Other Comprehensive Income Loss | 3,800 | $ 3,800 | $ 2,400 | ||
Deferred net gains (losses) expected to be reclassified to earnings | (35) | ||||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | $ 0 | $ 0 | $ 0 | $ 0 | |
Immateriality of cash flow effectiveness | 0 | 0 | 0 | 0 | |
Cumulative foreign currency translation gain (loss) recorded in accumulated other comprehensive income (loss) for net investment in foreign operations hedges | $ 407 | $ 407 | 1,100 | ||
Potential future recoveries available to offset maximum amount of future payments under credit default swaps | 30 | 30 | 80 | ||
Excess securities collateral provided on derivatives | 305 | 305 | 204 | ||
Change in fair value of derivatives excluded from the assessment of hedge effectiveness | (4) | $ (3) | (10) | $ (5) | |
Securities collateral received which the company is permitted to sell or repledge, amount that has been sold or repledged | 0 | 0 | |||
Over the Counter [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Cash collateral on derivative assets | (11,291) | (11,291) | (6,140) | ||
Excess securities collateral received on derivatives | (336) | (336) | (100) | ||
Excess securities collateral provided on derivatives | (179) | (179) | (150) | ||
Exchange-traded | |||||
Derivatives, Fair Value [Line Items] | |||||
Cash collateral on derivative assets | 0 | 0 | 0 | ||
Excess securities collateral received on derivatives | (419) | (419) | (315) | ||
Excess securities collateral provided on derivatives | (343) | (343) | (224) | ||
Hedge Funds [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Maximum Amount of Future Payments under Credit Default Swaps | 0 | 0 | 20 | ||
Estimated Fair Value of Credit Default Swaps | 0 | 0 | (2) | ||
Ba [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Maximum Amount of Future Payments under Credit Default Swaps | 160 | $ 160 | $ 164 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Average Remaining Maturity | 11 months | 1 year 6 months | |||
Nonperformance Risk [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net derivatives gains (losses) | 1,100 | $ (100) | $ 1,500 | $ (31) | |
B | |||||
Derivatives, Fair Value [Line Items] | |||||
Maximum Amount of Future Payments under Credit Default Swaps | 131 | $ 131 | $ 639 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Average Remaining Maturity | 4 years 1 month | 4 years 11 months | |||
Accrued Liabilities [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Estimated Fair Value Assets | 238 | $ 238 | $ 278 | ||
Estimated Fair Value Liabilities | 15 | 15 | 41 | ||
Credit Index Product [Member] | Ba [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Maximum Amount of Future Payments under Credit Default Swaps | 100 | $ 100 | $ 100 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Average Remaining Maturity | 6 months | 1 year | |||
Credit Index Product [Member] | B | |||||
Derivatives, Fair Value [Line Items] | |||||
Maximum Amount of Future Payments under Credit Default Swaps | 131 | $ 131 | $ 639 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Average Remaining Maturity | 4 years 1 month | 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 | $ 60 | $ 64 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Average Remaining Maturity | 1 year 8 months | 2 years 4 months | |||
Credit Default Swap [Member] | B | |||||
Derivatives, Fair Value [Line Items] | |||||
Maximum Amount of Future Payments under Credit Default Swaps | $ 0 | $ 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 ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | $ 387,508 | $ 351,402 |
Available-for-sale Securities, Equity Securities | 3,333 | 3,321 |
Actively traded securities | 8 | 404 |
Fair Value Option And Trading Securities | 14,314 | 15,024 |
Short-term investments | 9,838 | 9,299 |
Mortgage loans at estimated fair value | 69,399 | 67,102 |
Derivative assets | 23,563 | 14,406 |
Net embedded derivatives within asset host contracts | 351 | 171 |
Separate account assets | 309,672 | 301,598 |
Liabilities [Abstract] | ||
Derivative liabilities | 8,704 | 7,049 |
Net embedded derivatives within liability host contracts | 7,412 | 935 |
Long-term debt, at estimated fair value, relating to variable interest entities | 16,586 | 18,023 |
Separate account liabilities | 309,672 | 301,598 |
Residential mortgage loans — FVO | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 449 | 314 |
Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 159 | 172 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 47 | 60 |
Recurring | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 387,508 | 351,402 |
Available-for-sale Securities, Equity Securities | 3,333 | 3,321 |
Actively traded securities | 8 | 404 |
Fair Value Option And Trading Securities | 14,314 | 15,024 |
Short-term investments | 8,909 | 8,819 |
Mortgage loans at estimated fair value | 608 | 486 |
Other investments | 149 | 162 |
Derivative assets | 23,563 | 14,406 |
Net embedded derivatives within asset host contracts | 608 | 391 |
Separate account assets | 309,672 | 301,598 |
Total assets | 748,664 | 695,609 |
Liabilities [Abstract] | ||
Derivative liabilities | 8,704 | 7,049 |
Net embedded derivatives within liability host contracts | 7,412 | 935 |
Trading liabilities | 0 | 153 |
Total liabilities | 16,265 | 8,197 |
Recurring | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 16,286 | 9,434 |
Liabilities [Abstract] | ||
Derivative liabilities | 3,556 | 2,347 |
Recurring | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 4,979 | 3,019 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,972 | 2,902 |
Recurring | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 122 | 106 |
Liabilities [Abstract] | ||
Derivative liabilities | 47 | 47 |
Recurring | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 2,176 | 1,847 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,129 | 1,753 |
Recurring | Derivative Liabilities Within Separate Accounts | ||
Liabilities [Abstract] | ||
Separate account liabilities | 102 | 0 |
Recurring | FVO general account securities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 640 | 627 |
Recurring | FVO contractholder-directed unit-linked investments | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 13,657 | 13,981 |
Recurring | Residential mortgage loans — FVO | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 449 | 314 |
Recurring | Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 9 | 12 |
Mortgage loans at estimated fair value | 159 | 172 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 47 | 60 |
Recurring | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 104,615 | 100,794 |
Recurring | U.S. government and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 69,737 | 61,646 |
Recurring | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 59,212 | 57,198 |
Recurring | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 62,261 | 50,499 |
Recurring | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 44,598 | 38,797 |
Recurring | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 17,410 | 15,441 |
Recurring | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 16,518 | 14,394 |
Recurring | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 13,157 | 12,633 |
Recurring | Level 1 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 45,192 | 37,660 |
Available-for-sale Securities, Equity Securities | 1,364 | 1,274 |
Actively traded securities | 0 | 0 |
Fair Value Option And Trading Securities | 11,238 | 11,335 |
Short-term investments | 2,262 | 2,543 |
Mortgage loans at estimated fair value | 0 | 0 |
Other investments | 91 | 109 |
Derivative assets | 4 | 67 |
Net embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 84,717 | 77,080 |
Total assets | 144,868 | 130,068 |
Liabilities [Abstract] | ||
Derivative liabilities | 208 | 25 |
Net embedded derivatives within liability host contracts | 0 | 0 |
Trading liabilities | 0 | 103 |
Total liabilities | 208 | 128 |
Recurring | Level 1 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 2 | 4 |
Liabilities [Abstract] | ||
Derivative liabilities | 12 | 7 |
Recurring | Level 1 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 2 | 0 |
Recurring | Level 1 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 2 | 63 |
Liabilities [Abstract] | ||
Derivative liabilities | 194 | 18 |
Recurring | Level 1 | Derivative Liabilities Within Separate Accounts | ||
Liabilities [Abstract] | ||
Separate account liabilities | 0 | 0 |
Recurring | Level 1 | FVO general account securities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 509 | 506 |
Recurring | Level 1 | FVO contractholder-directed unit-linked investments | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 10,729 | 10,829 |
Recurring | Level 1 | Residential mortgage loans — FVO | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 0 | 0 |
Recurring | 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 | Level 1 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | U.S. government and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 41,028 | 37,660 |
Recurring | Level 1 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 4,164 | 0 |
Recurring | Level 1 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 2 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 321,154 | 292,928 |
Available-for-sale Securities, Equity Securities | 1,287 | 1,615 |
Actively traded securities | 7 | 400 |
Fair Value Option And Trading Securities | 2,845 | 3,419 |
Short-term investments | 6,472 | 5,985 |
Mortgage loans at estimated fair value | 159 | 172 |
Other investments | 58 | 53 |
Derivative assets | 22,923 | 13,942 |
Net embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 223,323 | 222,814 |
Total assets | 578,221 | 540,928 |
Liabilities [Abstract] | ||
Derivative liabilities | 7,728 | 6,216 |
Net embedded derivatives within liability host contracts | 0 | 0 |
Trading liabilities | 0 | 50 |
Total liabilities | 7,860 | 6,315 |
Recurring | Level 2 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 16,056 | 9,405 |
Liabilities [Abstract] | ||
Derivative liabilities | 3,540 | 2,340 |
Recurring | Level 2 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 4,936 | 3,003 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,907 | 2,754 |
Recurring | Level 2 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 107 | 99 |
Liabilities [Abstract] | ||
Derivative liabilities | 47 | 45 |
Recurring | Level 2 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 1,824 | 1,435 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,234 | 1,077 |
Recurring | Level 2 | Derivative Liabilities Within Separate Accounts | ||
Liabilities [Abstract] | ||
Separate account liabilities | 97 | 0 |
Recurring | Level 2 | FVO general account securities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 31 | 32 |
Recurring | Level 2 | FVO contractholder-directed unit-linked investments | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 2,804 | 2,985 |
Recurring | Level 2 | Residential mortgage loans — FVO | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 0 | 0 |
Recurring | Level 2 | Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 3 | 2 |
Mortgage loans at estimated fair value | 159 | 172 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 35 | 49 |
Recurring | Level 2 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 97,323 | 93,758 |
Recurring | Level 2 | U.S. government and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 28,386 | 23,986 |
Recurring | Level 2 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 52,794 | 51,438 |
Recurring | Level 2 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 61,885 | 49,643 |
Recurring | Level 2 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 35,172 | 34,088 |
Recurring | Level 2 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 17,357 | 15,395 |
Recurring | Level 2 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 15,712 | 12,731 |
Recurring | Level 2 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 12,525 | 11,889 |
Recurring | Level 3 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 21,162 | 20,814 |
Available-for-sale Securities, Equity Securities | 682 | 432 |
Actively traded securities | 1 | 4 |
Fair Value Option And Trading Securities | 231 | 270 |
Short-term investments | 175 | 291 |
Mortgage loans at estimated fair value | 449 | 314 |
Other investments | 0 | 0 |
Derivative assets | 636 | 397 |
Net embedded derivatives within asset host contracts | 608 | 391 |
Separate account assets | 1,632 | 1,704 |
Total assets | 25,575 | 24,613 |
Liabilities [Abstract] | ||
Derivative liabilities | 768 | 808 |
Net embedded derivatives within liability host contracts | 7,412 | 935 |
Trading liabilities | 0 | 0 |
Total liabilities | 8,197 | 1,754 |
Recurring | Level 3 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 228 | 25 |
Liabilities [Abstract] | ||
Derivative liabilities | 4 | 0 |
Recurring | Level 3 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 43 | 16 |
Liabilities [Abstract] | ||
Derivative liabilities | 63 | 148 |
Recurring | Level 3 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 15 | 7 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 2 |
Recurring | Level 3 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 350 | 349 |
Liabilities [Abstract] | ||
Derivative liabilities | 701 | 658 |
Recurring | Level 3 | Derivative Liabilities Within Separate Accounts | ||
Liabilities [Abstract] | ||
Separate account liabilities | 5 | 0 |
Recurring | Level 3 | FVO general account securities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 100 | 89 |
Recurring | Level 3 | FVO contractholder-directed unit-linked investments | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 124 | 167 |
Recurring | Level 3 | Residential mortgage loans — FVO | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 449 | 314 |
Recurring | Level 3 | Consolidated Securitization Entities | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 6 | 10 |
Mortgage loans at estimated fair value | 0 | 0 |
Liabilities [Abstract] | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 12 | 11 |
Recurring | Level 3 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 7,292 | 7,036 |
Recurring | Level 3 | U.S. government and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 323 | 0 |
Recurring | Level 3 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 6,418 | 5,760 |
Recurring | Level 3 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 376 | 856 |
Recurring | Level 3 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 5,262 | 4,709 |
Recurring | Level 3 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 53 | 46 |
Recurring | Level 3 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 806 | 1,663 |
Recurring | Level 3 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | $ 632 | $ 744 |
Fair Value (Quantitative Inform
Fair Value (Quantitative Information) (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Interest rate contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | 1.47% | 3.07% |
Repurchase Rate | (0.16%) | |
Interest rate contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | 2.54% | 3.17% |
Repurchase Rate | 0.03% | |
Foreign currency exchange rate contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | 0.95% | 0.28% |
Foreign currency exchange rate contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | 3.28% | 3.81% |
Credit contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Credit spreads | 0.97% | 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 | 14.00% | 15.00% |
Equity market contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Correlation | 70.00% | 70.00% |
Volatility | 35.00% | 36.00% |
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% | 0.00% |
Withdrawal rates | 0.00% | 0.00% |
Long-term equity volatilities | 9.81% | 8.79% |
Nonperformance risk spread | (0.02%) | (0.47%) |
Embedded derivatives direct and assumed guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Durations 1 - 10 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 0.25% | 0.25% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Durations 11 - 20 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 2.00% | 2.00% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Durations 21 - 116 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 1.25% | 1.00% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Ages 0 - 40 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.00% | 0.00% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Ages 41 - 60 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.01% | 0.01% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Ages 61 - 115 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.00% | 0.04% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Utilization rates | 25.00% | 25.00% |
Withdrawal rates | 20.00% | 20.00% |
Long-term equity volatilities | 33.00% | 33.00% |
Nonperformance risk spread | 2.16% | 1.31% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Durations 1 - 10 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 100.00% | 100.00% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Durations 11 - 20 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 100.00% | 100.00% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Durations 21 - 116 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 100.00% | 100.00% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Ages 0 - 40 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.21% | 0.21% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Ages 41 - 60 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.78% | 0.78% |
Embedded derivatives direct and assumed guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Ages 61 - 115 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 100.00% | 100.00% |
U.S. corporate and foreign corporate securities | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Delta spread adjustments | (2.69%) | (0.65%) |
Offered quotes | $ 6 | $ 68 |
Quoted prices | $ 0 | $ 0 |
U.S. corporate and foreign corporate securities | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Delta spread adjustments | 5.45% | 2.40% |
Offered quotes | $ 121 | $ 121 |
Quoted prices | $ 884 | $ 780 |
U.S. corporate and foreign corporate securities | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Delta spread adjustments | (0.06%) | 0.39% |
Offered quotes | $ 97 | $ 98 |
Quoted prices | 162 | 156 |
Foreign government | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 95 | 96 |
Foreign government | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 124 | 135 |
Foreign government | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 104 | 113 |
RMBS | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 16 | 19 |
RMBS | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 128 | 292 |
RMBS | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 90 | 92 |
ABS | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 93 | 66 |
Quoted prices | 5 | 16 |
ABS | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 107 | 105 |
Quoted prices | 129 | 109 |
ABS | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Offered quotes | 100 | 99 |
Quoted prices | $ 100 | $ 100 |
Fair Value (Unobservable Input
Fair Value (Unobservable Input Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Consolidated Securitization Entities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at January 1, | $ (12) | $ (12) | $ (11) | $ (13) |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | (1) | 1 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance at March 31, | (12) | (12) | (12) | (12) |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Net Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 163 | 7 | 207 | (76) |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at January 1, | (338) | (345) | (411) | (300) |
Total realized/unrealized gains (losses) included in net income (loss) | 165 | (2) | 228 | (68) |
Total realized/unrealized gains (losses) included in AOCI | 41 | (21) | 51 | (4) |
Purchases | 4 | 4 | 12 | 4 |
Sales | 0 | 0 | 0 | 0 |
Issuances | (1) | (1) | (1) | (1) |
Settlements | 2 | (7) | (9) | (3) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | (5) | 0 | (2) | 0 |
Balance at March 31, | (132) | (372) | (132) | (372) |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 163 | 7 | 207 | (76) |
Net Embedded Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (4,520) | 723 | (5,634) | 770 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at January 1, | (1,939) | 278 | (544) | 430 |
Total realized/unrealized gains (losses) included in net income (loss) | (4,505) | 737 | (5,616) | 789 |
Total realized/unrealized gains (losses) included in AOCI | (135) | 21 | (210) | 19 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (225) | (195) | (434) | (397) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance at March 31, | (6,804) | 841 | (6,804) | 841 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (4,520) | 723 | (5,634) | 770 |
Residential mortgage loans — FVO | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at January 1, | 392 | 329 | 314 | 308 |
Total realized/unrealized gains (losses) included in net income (loss) | 1 | (2) | 11 | 20 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases | 71 | 45 | 149 | 104 |
Sales | (4) | (23) | (8) | (71) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (11) | (4) | (17) | (16) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance at March 31, | 449 | 345 | 449 | 345 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 1 | (2) | 11 | 20 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 1 | (2) | 11 | 20 |
Trading Liabilities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at January 1, | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases | 0 | (4) | 0 | (4) |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance at March 31, | 0 | (4) | 0 | (4) |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Corporate fixed maturity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at January 1, | 12,792 | 13,729 | 12,796 | 13,432 |
Total realized/unrealized gains (losses) included in net income (loss) | (5) | 30 | (44) | 43 |
Total realized/unrealized gains (losses) included in AOCI | 339 | (407) | 929 | (489) |
Purchases | 852 | 607 | 1,316 | 1,089 |
Sales | (306) | (538) | (602) | (698) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 490 | 252 | 639 | 364 |
Transfers out of Level 3 | (452) | (153) | (1,324) | (221) |
Balance at March 31, | 13,710 | 13,520 | 13,710 | 13,520 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (5) | 7 | (44) | 16 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (5) | 7 | (44) | 16 |
U.S. government and agency | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at January 1, | 211 | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 7 | 0 | 18 | 0 |
Purchases | 105 | 55 | 105 | 55 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 200 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance at March 31, | 323 | 55 | 323 | 55 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Foreign government | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at January 1, | 712 | 1,384 | 856 | 1,311 |
Total realized/unrealized gains (losses) included in net income (loss) | 4 | 4 | 8 | 7 |
Total realized/unrealized gains (losses) included in AOCI | 2 | (27) | (3) | (24) |
Purchases | 65 | 88 | 79 | 145 |
Sales | (19) | (20) | (23) | (31) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 103 | 10 | 41 | 209 |
Transfers out of Level 3 | (491) | (103) | (582) | (281) |
Balance at March 31, | 376 | 1,336 | 376 | 1,336 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 4 | 4 | 7 | 7 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 4 | 4 | 7 | 7 |
Structured Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at January 1, | 6,652 | 7,642 | 7,116 | 7,392 |
Total realized/unrealized gains (losses) included in net income (loss) | 30 | 43 | 60 | 64 |
Total realized/unrealized gains (losses) included in AOCI | 5 | 13 | (9) | (28) |
Purchases | 940 | 1,218 | 1,546 | 2,023 |
Sales | (478) | (448) | (903) | (883) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 12 | 153 | 30 | 177 |
Transfers out of Level 3 | (461) | (1,603) | (1,140) | (1,727) |
Balance at March 31, | 6,700 | 7,018 | 6,700 | 7,018 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 35 | 30 | 63 | 51 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 35 | 30 | 63 | 51 |
State and political subdivision | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at January 1, | 36 | 2 | 46 | 0 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases | 17 | 55 | 17 | 55 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | (2) | (10) | 0 |
Balance at March 31, | 53 | 55 | 53 | 55 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at January 1, | 669 | 338 | 432 | 345 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 2 | (24) | 0 |
Total realized/unrealized gains (losses) included in AOCI | 11 | (2) | 41 | (4) |
Purchases | 19 | 42 | 23 | 48 |
Sales | (17) | (20) | (62) | (23) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 2 | 131 | 457 | 132 |
Transfers out of Level 3 | (2) | (2) | (185) | (9) |
Balance at March 31, | 682 | 489 | 682 | 489 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | (26) | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | (26) | 0 |
FVO And Trading Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at January 1, | 249 | 521 | 270 | 567 |
Total realized/unrealized gains (losses) included in net income (loss) | (3) | (3) | 5 | (26) |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases | 11 | 74 | 26 | 98 |
Sales | (19) | (126) | (26) | (204) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 6 | 52 | 23 | 53 |
Transfers out of Level 3 | (13) | (43) | (67) | (13) |
Balance at March 31, | 231 | 475 | 231 | 475 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (3) | (6) | 5 | (19) |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (3) | (6) | 5 | (19) |
Short-term Investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at January 1, | 170 | 1,358 | 291 | 336 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 2 | 0 | 2 |
Total realized/unrealized gains (losses) included in AOCI | 5 | (1) | 8 | (1) |
Purchases | 115 | 1,702 | 126 | 1,822 |
Sales | (6) | (975) | (247) | (60) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 2 | 0 | 0 | 0 |
Transfers out of Level 3 | (111) | (277) | (3) | (290) |
Balance at March 31, | 175 | 1,809 | 175 | 1,809 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 1 | 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) for the instruments still held at end of period | 0 | 1 | 0 | 1 |
Separate Accounts | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at January 1, | 1,466 | 2,056 | 1,704 | 1,922 |
Total realized/unrealized gains (losses) included in net income (loss) | 33 | (30) | 62 | 5 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases | 209 | 153 | 226 | 310 |
Sales | (49) | (83) | (234) | (201) |
Issuances | (2) | 0 | 2 | 1 |
Settlements | 5 | (1) | (4) | (2) |
Transfers into Level 3 | 2 | 0 | 4 | 0 |
Transfers out of Level 3 | (37) | (170) | (133) | (110) |
Balance at March 31, | 1,627 | 1,925 | 1,627 | 1,925 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value (Fair Value Option f
Fair Value (Fair Value Option for Certain Assets and Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Carrying value at estimated fair value | $ 69,399 | $ 67,102 |
Carrying value at estimated fair value | 16,586 | 18,023 |
Consolidated Securitization Entities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid principal balance | 109 | 121 |
Difference between estimated fair value and unpaid principal balance | 50 | 51 |
Carrying value at estimated fair value | 159 | 172 |
Loans in non-accrual status | 0 | 0 |
Contractual principal balance | 58 | 71 |
Difference between estimated fair value and contractual principal balance | (11) | (11) |
Carrying value at estimated fair value | 47 | 60 |
Residential mortgage loans — FVO | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid principal balance | 622 | 436 |
Difference between estimated fair value and unpaid principal balance | (173) | (122) |
Carrying value at estimated fair value | 449 | 314 |
Loans in non-accrual status | $ 173 | $ 122 |
Fair Value (Nonrecurring Fair V
Fair Value (Nonrecurring Fair Value Measurements) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Level 3 | Mortgage loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying Value After Measurement | $ 26 | $ 97 | $ 26 | $ 97 |
Level 3 | Other limited partnership interests | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying Value After Measurement | 62 | 36 | 62 | 36 |
Level 3 | Other assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying Value After Measurement | 0 | 0 | 0 | 0 |
Nonrecurring | Mortgage loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gains (Losses) | (85) | 0 | (143) | 4 |
Nonrecurring | Other limited partnership interests | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gains (Losses) | (16) | (8) | (36) | (19) |
Nonrecurring | Other assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gains (Losses) | $ (30) | $ 0 | $ (44) | $ 0 |
Fair Value (Financial Instrumen
Fair Value (Financial Instruments Carried at Other Than Fair Value) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Policy loans | $ 11,240 | $ 11,258 |
Liabilities | ||
Collateral financing arrangements | 4,113 | 4,139 |
Junior subordinated debt securities | 3,168 | 3,194 |
Separate account liabilities | 309,672 | 301,598 |
Carrying Value | ||
Assets | ||
Mortgage loans | 68,791 | 66,616 |
Policy loans | 11,240 | 11,258 |
Real estate joint ventures | 29 | 35 |
Other limited partnership interests | 442 | 524 |
Other invested assets | 499 | 537 |
Premiums, reinsurance and other receivables | 4,046 | 2,822 |
Other assets | 248 | 235 |
Liabilities | ||
Policyholder account balances | 125,026 | 125,040 |
Long-term debt | 16,531 | 17,954 |
Collateral financing arrangements | 4,113 | 4,139 |
Junior subordinated debt securities | 3,168 | 3,194 |
Other liabilities | 6,552 | 2,249 |
Separate account liabilities | 120,611 | 112,119 |
Estimated Fair Value | ||
Assets | ||
Mortgage loans | 71,860 | 68,539 |
Policy loans | 13,853 | 13,351 |
Real estate joint ventures | 105 | 104 |
Other limited partnership interests | 499 | 615 |
Other invested assets | 499 | 537 |
Premiums, reinsurance and other receivables | 4,163 | 2,905 |
Other assets | 285 | 267 |
Liabilities | ||
Policyholder account balances | 132,126 | 130,125 |
Long-term debt | 18,530 | 19,360 |
Collateral financing arrangements | 3,771 | 3,899 |
Junior subordinated debt securities | 3,972 | 4,029 |
Other liabilities | 6,554 | 2,250 |
Separate account liabilities | 120,611 | 112,119 |
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 | 158 | 155 |
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 | 1,207 | 1,279 |
Real estate joint ventures | 0 | 0 |
Other limited partnership interests | 0 | 0 |
Other invested assets | 1 | 2 |
Premiums, reinsurance and other receivables | 901 | 484 |
Other assets | 208 | 207 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Long-term debt | 18,530 | 19,360 |
Collateral financing arrangements | 0 | 0 |
Junior subordinated debt securities | 3,972 | 4,029 |
Other liabilities | 6,067 | 865 |
Separate account liabilities | 120,611 | 112,119 |
Estimated Fair Value | Level 3 | ||
Assets | ||
Mortgage loans | 71,860 | 68,539 |
Policy loans | 12,646 | 12,072 |
Real estate joint ventures | 105 | 104 |
Other limited partnership interests | 499 | 615 |
Other invested assets | 340 | 380 |
Premiums, reinsurance and other receivables | 3,262 | 2,421 |
Other assets | 77 | 60 |
Liabilities | ||
Policyholder account balances | 132,126 | 130,125 |
Long-term debt | 0 | 0 |
Collateral financing arrangements | 3,771 | 3,899 |
Junior subordinated debt securities | 0 | 0 |
Other liabilities | 487 | 1,385 |
Separate account liabilities | $ 0 | $ 0 |
Fair Value (Recurring Fair Va92
Fair Value (Recurring Fair Value Measurements) (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Net Embedded Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ (257) | $ (220) |
Fair Value (Transfers Between L
Fair Value (Transfers Between Levels) (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets And Liabilities Transferred Between Levels 1 And Levels 2 | $ 203 |
Fair Value (Nonrecurring Fair94
Fair Value (Nonrecurring Fair Value Measurements) (Narrative) (Details) - Private Equity And Debt Funds | 6 Months Ended |
Jun. 30, 2016 | |
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 |
Equity (Preferred Stock) (Detai
Equity (Preferred Stock) (Details) - shares | Jun. 30, 2016 | Dec. 31, 2015 |
Class of Stock [Line Items] | ||
Preferred Stock, Shares Issued | 25,500,000 | 25,500,000 |
Preferred Stock, Shares Outstanding | 25,500,000 | 25,500,000 |
Preferred Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Issued | 24,000,000 | 24,000,000 |
Preferred Stock, Shares Outstanding | 24,000,000 | 24,000,000 |
Preferred Stock, Shares Authorized | 27,600,000 | 27,600,000 |
Series C Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Issued | 1,500,000 | 1,500,000 |
Preferred Stock, Shares Outstanding | 1,500,000 | 1,500,000 |
Preferred Stock, Shares Authorized | 1,500,000 | 1,500,000 |
Series A Junior Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Not Designated Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Preferred Stock, Shares Authorized | 160,900,000 | 160,900,000 |
Equity (Components of Accumulat
Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | $ 10,865 | $ 11,529 | $ 4,771 | $ 10,649 |
OCI before reclassifications | 5,288 | (7,140) | 14,205 | (5,997) |
Deferred income tax benefit (expense) | (1,608) | 2,336 | (4,239) | 1,756 |
AOCI before reclassifications, net of income tax | 14,545 | 6,725 | 14,737 | 6,408 |
Amounts reclassified from AOCI | 111 | (423) | (147) | 75 |
Deferred income tax benefit (expense) | (24) | 141 | 42 | (40) |
Amounts reclassified from AOCI, net of income tax | 87 | (282) | (105) | 35 |
Balance, end of period | 14,632 | 6,443 | 14,632 | 6,443 |
Unrealized Investment Gains (Losses), Net of Related Offsets | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | 15,446 | 16,206 | 10,315 | 15,159 |
OCI before reclassifications | 4,268 | (6,511) | 11,938 | (4,885) |
Deferred income tax benefit (expense) | (1,388) | 2,178 | (3,937) | 1,677 |
AOCI before reclassifications, net of income tax | 18,326 | 11,873 | 18,316 | 11,951 |
Amounts reclassified from AOCI | (183) | (177) | (166) | (290) |
Deferred income tax benefit (expense) | 61 | 65 | 54 | 100 |
Amounts reclassified from AOCI, net of income tax | (122) | (112) | (112) | (190) |
Balance, end of period | 18,204 | 11,761 | 18,204 | 11,761 |
Unrealized Gains (Losses) on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | 1,725 | 1,555 | 1,458 | 1,076 |
OCI before reclassifications | 800 | (395) | 1,496 | (208) |
Deferred income tax benefit (expense) | (269) | 150 | (468) | 84 |
AOCI before reclassifications, net of income tax | 2,256 | 1,310 | 2,486 | 952 |
Amounts reclassified from AOCI | 243 | (303) | (80) | 251 |
Deferred income tax benefit (expense) | (68) | 95 | 25 | (101) |
Amounts reclassified from AOCI, net of income tax | 175 | (208) | (55) | 150 |
Balance, end of period | 2,431 | 1,102 | 2,431 | 1,102 |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | (4,282) | (3,986) | (4,950) | (3,303) |
OCI before reclassifications | 209 | (237) | 760 | (907) |
Deferred income tax benefit (expense) | 53 | 9 | 170 | (4) |
AOCI before reclassifications, net of income tax | (4,020) | (4,214) | (4,020) | (4,214) |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Deferred income tax benefit (expense) | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCI, net of income tax | 0 | 0 | 0 | 0 |
Balance, end of period | (4,020) | (4,214) | (4,020) | (4,214) |
Defined Benefit Plans Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | (2,024) | (2,246) | (2,052) | (2,283) |
OCI before reclassifications | 11 | 3 | 11 | 3 |
Deferred income tax benefit (expense) | (4) | (1) | (4) | (1) |
AOCI before reclassifications, net of income tax | (2,017) | (2,244) | (2,045) | (2,281) |
Amounts reclassified from AOCI | 51 | 57 | 99 | 114 |
Deferred income tax benefit (expense) | (17) | (19) | (37) | (39) |
Amounts reclassified from AOCI, net of income tax | 34 | 38 | 62 | 75 |
Balance, end of period | $ (1,983) | $ (2,206) | $ (1,983) | $ (2,206) |
Equity (Reclassifications Out o
Equity (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net investment gains (losses) | $ 266 | $ (133) | $ 281 | $ 153 |
Net derivative gains (losses) | (2,099) | (912) | (764) | (91) |
Net investment income | 4,887 | 4,947 | 9,446 | 10,408 |
Other expenses | (3,246) | (4,072) | (7,438) | (8,132) |
Income (loss) from continuing operations before provision for income tax | (100) | 1,113 | 2,822 | 4,172 |
Provision for income tax expense (benefit) | 214 | 6 | (505) | (890) |
Net income (loss) | 114 | 1,119 | 2,317 | 3,282 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income (loss) | (87) | 282 | 105 | (35) |
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) | 158 | 110 | 125 | 249 |
Net derivative gains (losses) | 9 | 50 | 22 | (16) |
Net investment income | 16 | 17 | 19 | 57 |
Income (loss) from continuing operations before provision for income tax | 183 | 177 | 166 | 290 |
Provision for income tax expense (benefit) | (61) | (65) | (54) | (100) |
Net income (loss) | 122 | 112 | 112 | 190 |
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 | (243) | 303 | 80 | (251) |
Provision for income tax expense (benefit) | 68 | (95) | (25) | 101 |
Net income (loss) | (175) | 208 | 55 | (150) |
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) | 18 | 7 | 28 | 12 |
Net investment income | 4 | 3 | 7 | 6 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Interest rate forwards | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net derivative gains (losses) | (1) | 1 | 1 | 4 |
Net investment income | 2 | 1 | 3 | 2 |
Other expenses | 1 | 0 | 1 | 1 |
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) | (269) | 290 | 37 | (277) |
Net investment income | (1) | (1) | (1) | (1) |
Other expenses | 0 | 1 | 1 | 1 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Credit forwards | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net derivative gains (losses) | 3 | 0 | 3 | 0 |
Net investment income | 0 | 1 | 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) | (52) | (58) | (103) | (116) |
Amortization of prior service (costs) credit | 1 | 1 | 4 | 2 |
Income (loss) from continuing operations before provision for income tax | (51) | (57) | (99) | (114) |
Provision for income tax expense (benefit) | 17 | 19 | 37 | 39 |
Net income (loss) | $ (34) | $ (38) | $ (62) | $ (75) |
Equity (Common Stock - Narrativ
Equity (Common Stock - Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Equity [Abstract] | ||
Treasury Stock, Shares, Acquired | 1,445,864 | 20,176,185 |
Treasury Stock, Value, Acquired, Cost Method | $ 70 | $ 1,000 |
Equity (Stock-Based Compensatio
Equity (Stock-Based Compensation Plans - Narrative) (Details) - shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | |
Minimum | |||
Equity - Stock-based Compensation Plans [Line Items] | |||
Future Performance Factor | 0.00% | ||
Maximum | |||
Equity - Stock-based Compensation Plans [Line Items] | |||
Future Performance Factor | 175.00% | ||
Performance Shares | |||
Equity - Stock-based Compensation Plans [Line Items] | |||
Performance Factor | 86.20% | ||
Vested in period | 1,592,650 | ||
Issued in period | 1,372,864 | ||
Performance Units | |||
Equity - Stock-based Compensation Plans [Line Items] | |||
Vested in period | 234,787 | ||
Paid in period | 202,386 |
Other Expenses (Other Expenses)
Other Expenses (Other Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | ||||
Compensation | $ 1,189 | $ 1,258 | $ 2,499 | $ 2,549 |
Pension, postretirement and postemployment benefit costs | 103 | 105 | 243 | 197 |
Commissions | 1,094 | 1,122 | 2,228 | 2,279 |
Volume-related costs | 214 | 255 | 480 | 497 |
Capitalization of DAC | (915) | (927) | (1,896) | (1,895) |
Amortization of DAC and VOBA | 121 | 897 | 1,116 | 1,922 |
Amortization of negative VOBA | (67) | (92) | (166) | (192) |
Interest expense on debt | 306 | 308 | 618 | 606 |
Premium taxes, licenses and fees | 189 | 196 | 404 | 369 |
Professional services | 398 | 383 | 728 | 713 |
Rent and related expenses, net of sublease income | 98 | 84 | 195 | 167 |
Other | 516 | 483 | 989 | 920 |
Total other expenses | $ 3,246 | $ 4,072 | $ 7,438 | $ 8,132 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Pension Benefits | ||||
Net periodic benefit costs [Abstract] | ||||
Service costs | $ 73 | $ 69 | $ 145 | $ 138 |
Interest costs | 109 | 107 | 220 | 212 |
Curtailment costs | 0 | 0 | 0 | 0 |
Expected return on plan assets | (127) | (136) | (254) | (272) |
Amortization of net actuarial (gains) losses | 50 | 47 | 99 | 95 |
Amortization of prior service costs (credit) | 0 | 0 | 0 | 0 |
Net periodic benefit costs | 105 | 87 | 210 | 173 |
Other Postretirement Benefits | ||||
Net periodic benefit costs [Abstract] | ||||
Service costs | 2 | 5 | 4 | 9 |
Interest costs | 21 | 22 | 42 | 45 |
Curtailment costs | (3) | 0 | 27 | 0 |
Expected return on plan assets | (19) | (20) | (37) | (40) |
Amortization of net actuarial (gains) losses | 2 | 11 | 4 | 21 |
Amortization of prior service costs (credit) | (1) | (1) | (4) | (2) |
Net periodic benefit costs | $ 2 | $ 17 | $ 36 | $ 33 |
Earnings Per Common Share (Earn
Earnings Per Common Share (Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Weighted Average Shares: | ||||
Weighted average common stock outstanding for basic earnings per common share | 1,100,328,049 | 1,117,807,514 | 1,100,582,221 | 1,120,801,928 |
Incremental common shares from assumed: | ||||
Exercise or issuance of stock-based awards | 8,800,389 | 10,584,264 | 8,292,739 | 10,320,897 |
Weighted average common stock outstanding for diluted earnings per common share | 1,109,128,438 | 1,128,391,778 | 1,108,874,960 | 1,131,122,825 |
Net Income (Loss): | ||||
Net income (loss) | $ 114 | $ 1,119 | $ 2,317 | $ 3,282 |
Less: Net income (loss) attributable to noncontrolling interests | 4 | 4 | 6 | 9 |
Less: Preferred stock dividends | 46 | 31 | 52 | 61 |
Preferred stock repurchase premium | 0 | 42 | 0 | 42 |
Net income (loss) available to MetLife, Inc.’s common shareholders | $ 64 | $ 1,042 | $ 2,259 | $ 3,170 |
Basic | $ 0.06 | $ 0.93 | $ 2.05 | $ 2.83 |
Diluted | $ 0.06 | $ 0.92 | $ 2.04 | $ 2.80 |
Contingencies, Commitments a103
Contingencies, Commitments and Guarantees (Contingencies - Narrative) (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016USD ($)Claims | Jun. 30, 2015Claims | Dec. 31, 2015Claims | |
Minimum | |||
Loss Contingencies | |||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 0 | ||
Maximum | |||
Loss Contingencies | |||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 475,000,000 | ||
Superfund Site Settlement Agreements | |||
Loss Contingencies | |||
Number of regulatory matters and other claims | Claims | 2 | ||
Maximum estimate of costs for environmental testing | $ 100,000 | ||
Superfund Site Settlement Agreements | Minimum | |||
Loss Contingencies | |||
Damages Sought | 1,000,000 | ||
Superfund Site Settlement Agreements | Maximum | |||
Loss Contingencies | |||
Maximum estimate of aggregate costs to resolve matter | 1,000,000 | ||
Fauley V. Metropolitan Life Insurance Company, et al | Maximum | |||
Loss Contingencies | |||
Loss Contingency, Estimate of Possible Loss | 23,000,000 | ||
FINRA | |||
Loss Contingencies | |||
Litigation Settlement, Amount | 20,000,000 | ||
FINRA Customer Reimbursement | |||
Loss Contingencies | |||
Litigation Settlement, Amount | $ 5,000,000 | ||
Asbestos Related Claims | |||
Loss Contingencies | |||
Asbestos-Related Claims | Claims | 2,348 | 2,022 | 3,856 |
Contingencies, Commitments a104
Contingencies, Commitments and Guarantees (Commitments and Guarantees - Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Liabilities for indemnities, guarantees and commitments | $ 9 | $ 8 |
Cumulative maximum indemnities and guarantees contractual limitation | 733 | |
Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Indemnities and guarantees contractual limitation range | 1 | |
Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Indemnities and guarantees contractual limitation range | 223 | |
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 | 7,900 | 7,100 |
Mortgage Loan Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 4,000 | $ 4,400 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event [Member] $ / shares in Units, $ in Millions | 3 Months Ended |
Sep. 30, 2016USD ($)$ / shares | |
Subsequent Event [Line Items] | |
Approved dividend, amount per share | $ / shares | $ 0.400 |
Estimated aggregate dividend payment | $ | $ 441 |