Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 3 Months Ended | ||
Mar. 31, 2018 | Apr. 30, 2018 | Jun. 30, 2017 | |
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 | Mar. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | Q1 | ||
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 | $ 52.1 | ||
Entity Common Stock, Shares Outstanding | 1,016,530,764 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Investments: | ||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $287,099 and $286,069, respectively) | $ 304,711 | $ 308,931 |
Equity securities, at estimated fair value | 1,544 | 2,513 |
Contractholder-directed equity securities and fair value option securities, at estimated fair value (includes $6 and $6, respectively, relating to variable interest entities) | 16,444 | 16,745 |
Mortgage loans (net of valuation allowances of $327 and $314, respectively; includes $438 and $520, respectively, under the fair value option) | 71,055 | 68,731 |
Policy loans | 9,744 | 9,669 |
Real estate and real estate joint ventures (includes $699 and $25, respectively, of real estate held-for-sale) | 9,862 | 9,637 |
Other limited partnership interests | 5,876 | 5,708 |
Short-term investments, principally at estimated fair value | 5,121 | 4,870 |
Other invested assets (includes $123 and $125, respectively, relating to variable interest entities) | 17,486 | 17,263 |
Total investments | 441,843 | 444,067 |
Cash and cash equivalents, principally at estimated fair value (includes $7 and $12, respectively, relating to variable interest entities) | 13,927 | 12,701 |
Accrued investment income | 3,638 | 3,524 |
Premiums, reinsurance and other receivables (includes $2 and $3, respectively, relating to variable interest entities) | 19,368 | 18,423 |
Deferred policy acquisition costs and value of business acquired | 19,330 | 18,419 |
Goodwill | 9,733 | 9,590 |
Other assets (includes $3 and $2, respectively, relating to variable interest entities) | 8,387 | 8,167 |
Separate account assets | 196,358 | 205,001 |
Total assets | 712,584 | 719,892 |
Liabilities | ||
Future policy benefits | 180,348 | 177,974 |
Policyholder account balances | 184,289 | 182,518 |
Other policy-related balances | 16,023 | 15,515 |
Policyholder dividends payable | 672 | 682 |
Policyholder dividend obligation | 1,277 | 2,121 |
Payables for collateral under securities loaned and other transactions | 26,151 | 25,723 |
Short-term debt | 526 | 477 |
Long-term debt (includes $5 and $6, respectively, at estimated fair value, relating to variable interest entities) | 15,707 | 15,686 |
Collateral financing arrangement | 1,108 | 1,121 |
Junior subordinated debt securities | 3,145 | 3,144 |
Current income tax payable | 155 | 311 |
Deferred income tax liability | 6,304 | 6,767 |
Other liabilities (includes $2 and $3, respectively, relating to variable interest entities) | 24,013 | 23,982 |
Separate account liabilities | 196,358 | 205,001 |
Total liabilities | 656,076 | 661,022 |
Contingencies, Commitments and Guarantees (Note 14) | ||
MetLife, Inc.’s stockholders’ equity: | ||
Preferred stock, par value $0.01 per share; $2,600 and $2,100 aggregate liquidation preference, respectively | 0 | 0 |
Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,170,644,215 and 1,168,710,101 shares issued, respectively; 1,024,117,183 and 1,043,588,396 shares outstanding, respectively | 12 | 12 |
Additional paid-in capital | 31,653 | 31,111 |
Retained earnings | 26,453 | 26,527 |
Treasury stock, at cost; 146,527,032 and 125,121,705 shares, respectively | (7,442) | (6,401) |
Accumulated other comprehensive income (loss) | 5,634 | 7,427 |
Total MetLife, Inc.’s stockholders’ equity | 56,310 | 58,676 |
Noncontrolling interests | 198 | 194 |
Total equity | 56,508 | 58,870 |
Total liabilities and equity | $ 712,584 | $ 719,892 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Amortized cost of fixed maturity securities available-for-sale | $ 287,099 | $ 286,069 |
Contractholder-directed equity securities and fair value option securities relating to variable interest entities | 16,444 | 16,745 |
Mortgage loans valuation allowances | 327 | 314 |
Mortgage Loans on Real Estate | 71,055 | 68,731 |
Real estate held-for-sale | 699 | 25 |
Other invested assets relating to variable interest entities | 17,486 | 17,263 |
Cash and cash equivalents relating to variable interest entities | 13,927 | 12,701 |
Premiums, reinsurance and other receivables relating to variable interest entities | 19,368 | 18,423 |
Other assets relating to variable interest entities | 8,387 | 8,167 |
Liabilities | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 15,707 | 15,686 |
Other liabilities relating to variable interest entities | $ 24,013 | $ 23,982 |
MetLife, Inc.’s stockholders’ equity: | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, aggregate liquidation preference | 2,600 | 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 | 1,170,644,215 | 1,168,710,101 |
Common stock, shares outstanding | 1,024,117,183 | 1,043,588,396 |
Treasury stock, shares | 146,527,032 | 125,121,705 |
Residential mortgage loans - FVO | ||
Assets | ||
Mortgage Loans on Real Estate | $ 438 | $ 520 |
Variable interest entities | ||
Assets | ||
Contractholder-directed equity securities and fair value option securities relating to variable interest entities | 6 | 6 |
Other invested assets relating to variable interest entities | 123 | 125 |
Cash and cash equivalents relating to variable interest entities | 7 | 12 |
Premiums, reinsurance and other receivables relating to variable interest entities | 2 | 3 |
Other assets relating to variable interest entities | 3 | 2 |
Liabilities | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 5 | 6 |
Other liabilities relating to variable interest entities | $ 2 | $ 3 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | ||
Premiums | $ 9,178 | $ 8,965 |
Universal life and investment-type product policy fees | 1,392 | 1,360 |
Net investment income | 3,745 | 4,421 |
Other revenues | 474 | 342 |
Net investment gains (losses) | (333) | 88 |
Net derivative gains (losses) | 349 | (212) |
Total revenues | 14,805 | 14,964 |
Expenses | ||
Policyholder benefits and claims | 8,718 | 8,863 |
Interest credited to policyholder account balances | 769 | 1,451 |
Policyholder dividends | 297 | 310 |
Other expenses | 3,365 | 3,268 |
Total expenses | 13,149 | 13,892 |
Income (loss) from continuing operations before provision for income tax | 1,656 | 1,072 |
Provision for income tax expense (benefit) | 399 | 120 |
Income (loss) from continuing operations, net of income tax | 1,257 | 952 |
Income (loss) from discontinued operations, net of income tax | 0 | (76) |
Net income (loss) | 1,257 | 876 |
Less: Net income (loss) attributable to noncontrolling interests | 4 | 3 |
Net income (loss) attributable to MetLife, Inc. | 1,253 | 873 |
Less: Preferred stock dividends | 6 | 6 |
Net income (loss) available to MetLife, Inc.’s common shareholders | 1,247 | 867 |
Comprehensive income (loss) | (1,448) | 1,907 |
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of income tax | 4 | 4 |
Comprehensive income (loss) attributable to MetLife, Inc. | $ (1,452) | $ 1,903 |
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc's common shareholders per common share: | ||
Basic | $ 1.20 | $ 0.87 |
Diluted | 1.19 | 0.86 |
Net income (loss) available to MetLife, Inc.’s common shareholders per common share: | ||
Basic | 1.20 | 0.80 |
Diluted | 1.19 | 0.79 |
Cash dividends declared per common share | $ 0.400 | $ 0.400 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions | Total | 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 (Scenario, Previously Reported) at Dec. 31, 2016 | $ 67,480 | $ 0 | $ 12 | $ 30,944 | $ 34,480 | $ (3,474) | $ 5,347 | $ 67,309 | $ 171 |
Beginning Balance (Restatement Adjustment) | 222 | 0 | 0 | 0 | 203 | 0 | 19 | 222 | 0 |
Beginning Balance at Dec. 31, 2016 | 67,702 | 0 | 12 | 30,944 | 34,683 | (3,474) | 5,366 | 67,531 | 171 |
Treasury stock acquired in connection with share repurchases | (858) | (858) | (858) | ||||||
Stock-based compensation | 46 | 46 | 46 | ||||||
Dividends on preferred stock | (6) | (6) | (6) | ||||||
Dividends on common stock | (437) | (437) | (437) | ||||||
Change in equity of noncontrolling interests | 4 | 0 | 4 | ||||||
Net income (loss) | 876 | 873 | 873 | 3 | |||||
Other comprehensive income (loss), net of income tax | Scenario, Previously Reported | 1,049 | ||||||||
Other comprehensive income (loss), net of income tax | Restatement Adjustment | (19) | ||||||||
Other comprehensive income (loss), net of income tax | 1,031 | 1,030 | 1,030 | 1 | |||||
Ending Balance (Scenario, Previously Reported) at Mar. 31, 2017 | 68,108 | ||||||||
Ending Balance (Restatement Adjustment) | 250 | ||||||||
Ending Balance at Mar. 31, 2017 | 68,358 | 0 | 12 | 30,990 | 35,113 | (4,332) | 6,396 | 68,179 | 179 |
Cumulative effects of changes in accounting principles, net of income tax (Note 1) | 7 | 0 | 0 | 0 | (905) | 0 | 912 | 7 | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | 58,877 | 0 | 12 | 31,111 | 25,622 | (6,401) | 8,339 | 58,683 | 194 |
Beginning Balance at Dec. 31, 2017 | 58,870 | 0 | 12 | 31,111 | 26,527 | (6,401) | 7,427 | 58,676 | 194 |
Preferred stock issuance | 494 | 0 | 494 | 494 | |||||
Treasury stock acquired in connection with share repurchases | (1,041) | (1,041) | (1,041) | ||||||
Stock-based compensation | 48 | 48 | 48 | ||||||
Dividends on preferred stock | (6) | (6) | (6) | ||||||
Dividends on common stock | (416) | (416) | (416) | ||||||
Change in equity of noncontrolling interests | 0 | 0 | 0 | ||||||
Net income (loss) | 1,257 | 1,253 | 1,253 | 4 | |||||
Other comprehensive income (loss), net of income tax | (2,705) | (2,705) | (2,705) | 0 | |||||
Ending Balance at Mar. 31, 2018 | $ 56,508 | $ 0 | $ 12 | $ 31,653 | $ 26,453 | $ (7,442) | $ 5,634 | $ 56,310 | $ 198 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Cash Flows [Abstract] | ||
Net cash provided by (used in) operating activities | $ 1,296 | $ 2,098 |
Cash flows from investing activities | ||
Sales, maturities and repayments of fixed maturity securities | 26,053 | 23,086 |
Sales, maturities and repayments of equity securities | 187 | 188 |
Sales, maturities and repayments of mortgage loans | 2,076 | 1,776 |
Sales, maturities and repayments of real estate and real estate joint ventures | 128 | 39 |
Sales, maturities and repayments of other limited partnership interests | 139 | 461 |
Purchases of fixed maturity securities | (24,220) | (22,484) |
Purchases of equity securities | (51) | (299) |
Purchases of mortgage loans | (4,024) | (3,430) |
Purchases of real estate and real estate joint ventures | (242) | (341) |
Purchases of other limited partnership interests | (260) | (362) |
Cash received in connection with freestanding derivatives | 1,974 | 2,515 |
Cash paid in connection with freestanding derivatives | (2,192) | (3,372) |
Net change in policy loans | (25) | (20) |
Net change in short-term investments | (160) | (1,892) |
Net change in other invested assets | 46 | (43) |
Other, net | 86 | (98) |
Net cash provided by (used in) investing activities | (485) | (4,276) |
Cash flows from financing activities | ||
Policyholder account balances: Deposits | 24,861 | 21,271 |
Policyholder account balances: Withdrawals | (24,447) | (19,100) |
Net change in payables for collateral under securities loaned and other transactions | 667 | 391 |
Long-term debt issued | 14 | 0 |
Long-term debt repaid | (32) | (4) |
Collateral financing arrangements repaid | (13) | (12) |
Financing element on certain derivative instruments and other derivative related transactions, net | 37 | 188 |
Treasury stock acquired in connection with share repurchases | (1,041) | (858) |
Preferred stock issued, net of issuance costs | 494 | 0 |
Dividends on preferred stock | (6) | (6) |
Dividends on common stock | (416) | (437) |
Other, net | 100 | 66 |
Net cash provided by (used in) financing activities | 218 | 1,499 |
Effect of change in foreign currency exchange rates on cash and cash equivalents balances | 197 | 213 |
Change in cash and cash equivalents | 1,226 | (466) |
Cash and cash equivalents, beginning of period | 12,701 | 17,877 |
Cash and cash equivalents, end of period | 13,927 | 17,411 |
Cash and cash equivalents, of disposed subsidiary, beginning of period | 0 | 5,226 |
Cash and cash equivalents, of disposed subsidiary, end of period | 0 | 5,810 |
Cash and cash equivalents, from continuing operations, beginning of period | 12,701 | 12,651 |
Cash and cash equivalents, from continuing operations, end of period | 13,927 | 11,601 |
Supplemental disclosures of cash flow information: | ||
Net cash paid for Interest | 243 | 255 |
Net cash paid (received) for Income tax | $ 146 | $ 109 |
Business, Basis of Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
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 one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management. MetLife is organized into five segments: U.S.; Asia; Latin America; Europe, the Middle East and Africa (“EMEA”); and MetLife Holdings. 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 these 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. 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. 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. Subsequent to the adoption of guidance relating to the recognition and measurement of financial instruments on January 1, 2018, the Company accounts for interests in unconsolidated entities that are not accounted for under the equity method, at estimated fair value. Such investments were previously accounted for under the cost method of accounting. See “— Adoption of New Accounting Pronouncements.” Discontinued Operations The results of operations of a component of the Company that has either been disposed of or is classified as held-for-sale are reported in discontinued operations if certain criteria are met. A disposal of a component is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results. On August 4, 2017, MetLife, Inc. completed the separation of Brighthouse Financial, Inc. and its subsidiaries (“Brighthouse”) through a distribution of 96,776,670 shares of Brighthouse Financial, Inc. common stock to the MetLife, Inc. common shareholders (the “Separation”). The results of Brighthouse are reflected in MetLife, Inc.’s interim condensed consolidated financial statements as discontinued operations and, therefore, are presented as income (loss) from discontinued operations on the consolidated statements of operations and comprehensive income (loss). Prior period results have been revised to reflect discontinued operations. Intercompany transactions between the Company and Brighthouse prior to the Separation have been eliminated. Transactions between the Company and Brighthouse after the Separation are reflected in continuing operations for the Company. See Note 3 for information on discontinued operations and transactions with Brighthouse. Reclassifications Certain amounts in the prior year periods’ interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform to the 2018 presentation as discussed throughout the Notes to the Interim Condensed Consolidated Financial Statements. Revisions As discussed in Note 1 of the Notes to the Consolidated Financial Statements included in MetLife, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Annual Report”), the Company made adjustments for group annuity reserves and assumed variable annuity guarantee reserves for which amounts previously reported have been immaterially restated. In addition, the Company has corrected other unrelated immaterial errors which were previously recorded in the periods the Company identified them. A summary of the revisions to prior period net income (loss) available to MetLife, Inc.’s common shareholders is shown in the table below: Three Months 2017 (In millions) Assumed variable annuity guarantee reserves $ 14 Group annuity reserves (9 ) Other revisions to continuing operations, net 63 Impact to income (loss) from continuing operations before provision for income tax 68 Provision for income tax expense (benefit) 24 Impact to income (loss) from continuing operations, net of income tax 44 Other revisions to discontinued operations, net of income tax 3 Impact to net income (loss) available to MetLife, Inc.’s common shareholders $ 47 The impact of the revisions is shown in the tables below: Three Months 2017 Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) As Discontinued Operations (1) Revisions As (In millions, except per share data) Revenues Other net investment gains (losses) $ 8 $ 55 $ 25 $ 88 Net investment gains (losses) $ 8 $ 55 $ 25 $ 88 Net derivatives gains (losses) $ (926 ) $ 700 $ 14 $ (212 ) Total revenues $ 16,269 $ (1,344 ) $ 39 $ 14,964 Expenses Policyholder benefits and claims $ 9,859 $ (1,002 ) $ 6 $ 8,863 Other expenses $ 3,564 $ (261 ) $ (35 ) $ 3,268 Total expenses $ 15,452 $ (1,531 ) $ (29 ) $ 13,892 Income (loss) from continuing operations before provision for income tax $ 817 $ 187 $ 68 $ 1,072 Provision for income tax expense (benefit) $ (12 ) $ 108 $ 24 $ 120 Income (loss) from continuing operations, net of income tax $ 829 $ 79 $ 44 $ 952 Income (loss) from discontinued operations, net of income tax $ — $ (79 ) $ 3 $ (76 ) Net income (loss) $ 829 $ — $ 47 $ 876 Net income (loss) attributable to MetLife, Inc. $ 826 $ — $ 47 $ 873 Net income (loss) available to MetLife, Inc.’s common shareholders $ 820 $ — $ 47 $ 867 Comprehensive income (loss) $ 1,879 $ — $ 28 $ 1,907 Comprehensive income (loss) attributable to MetLife, Inc. $ 1,875 $ — $ 28 $ 1,903 Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders: Basic $ 0.75 $ 0.07 $ 0.05 $ 0.87 Diluted $ 0.75 $ 0.07 $ 0.04 $ 0.86 Net income (loss) available to MetLife, Inc.’s common shareholders per common share: Basic $ 0.75 $ — $ 0.05 $ 0.80 Diluted $ 0.75 $ — $ 0.04 $ 0.79 __________________ (1) See Note 3 for additional information on discontinued operations. Revisions include $5 million and $2 million of net investment gains (losses) and provision for income tax expense (benefit), respectively, related to discontinued operations. Interim Condensed Consolidated Statements of Equity As Revisions As Revised (In millions) Retained Earnings Balance at December 31, 2016 $ 34,480 $ 203 $ 34,683 Net income (loss) $ 826 $ 47 $ 873 Balance at March 31, 2017 $ 34,863 $ 250 $ 35,113 Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2016 $ 5,347 $ 19 $ 5,366 Other comprehensive income (loss), net of income tax $ 1,049 $ (19 ) $ 1,030 Balance at March 31, 2017 $ 6,396 $ — $ 6,396 Total MetLife, Inc.’s Stockholders’ Equity Balance at December 31, 2016 $ 67,309 $ 222 $ 67,531 Balance at March 31, 2017 $ 67,929 $ 250 $ 68,179 Total Equity Balance at December 31, 2016 $ 67,480 $ 222 $ 67,702 Balance at March 31, 2017 $ 68,108 $ 250 $ 68,358 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, 2017 consolidated balance sheet data was derived from audited consolidated financial statements included in the 2017 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 2017 Annual Report. Adoption of New Accounting Pronouncements Effective January 1, 2018, the Company early adopted guidance relating to income taxes. The new guidance was applied in the period of adoption. Current GAAP guidance requires that the effect of a change in tax laws or rates on deferred tax liabilities or assets to be included in income from continuing operations in the reporting period that includes the enactment date, even if the related income tax effects were originally charged or credited directly to accumulated other comprehensive income (“AOCI”). The Company’s accounting policy for the release of stranded tax effects in AOCI is on an aggregate portfolio basis. The new guidance allows a reclassification of AOCI to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (“U.S. Tax Reform”). Due to U.S. Tax Reform and the change in corporate tax rates, at December 22, 2017, the Company reported stranded tax effects in AOCI related to unrealized gains and losses on available-for-sale (“AFS”) securities, cumulative foreign translation adjustments and deferred costs on pension benefit plans. With the adoption of the guidance, the Company released these stranded tax effects in AOCI resulting in a decrease to retained earnings as of January 1, 2018 of $1.2 billion with a corresponding increase to AOCI. Effective January 1, 2018, the Company prospectively adopted guidance relating to stock compensation. The new guidance includes guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Accounting Standards Codification (“ASC”) Topic 718, Compensation - Stock Compensation . The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018 the Company retrospectively adopted guidance on the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires that an employer that offers to its employees defined benefit pension or other postretirement benefit plans report the service cost component in the same line item or items as other compensation costs. The other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item is not used, the line item used in the income statement to present the other components of net periodic benefit cost must be disclosed. In addition, the guidance allows only the service cost component to be eligible for capitalization when applicable. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to de-recognition of nonfinancial assets. The new guidance clarifies the scope and accounting of a financial asset that meets the definition of an “in-substance nonfinancial asset” and defines the term, “in-substance nonfinancial asset.” The new guidance also adds guidance for partial sales of nonfinancial assets. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company retrospectively adopted guidance relating to restricted cash. The new guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As a result, the new guidance requires that amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance does not provide a definition of restricted cash or restricted cash equivalents. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to tax accounting for intra-entity transfers of assets. Prior guidance prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. The new guidance requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company retrospectively adopted guidance relating to cash flow statement presentation. The new guidance addresses diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to recognition and measurement of financial instruments. The 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. Effective January 1, 2018, there will no longer be a requirement to assess equity securities for impairment since such securities will be measured at fair value through net income. Additionally, there will no longer be a requirement to assess equity securities for embedded derivatives requiring bifurcation. The adoption of this guidance resulted in a $328 million , net of income tax, increase to retained earnings largely offset by a decrease to AOCI that was primarily attributable to $1.7 billion of equity securities previously classified and measured as equity securities AFS. At December 31, 2017, equity securities of $16.0 billion primarily associated with contractholder-directed investments are accounted for using the FVO and therefore were unaffected by the new guidance. The Company has included the required disclosures related to equity securities held at March 31, 2018 within Note 6 . Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to revenue recognition. The new guidance supersedes nearly all existing revenue recognition guidance under U.S. GAAP. However, it does not impact the accounting for insurance and investment contracts within the scope of ASC Topic 944, Financial Services - Insurance , leases, financial instruments and certain guarantees. For those contracts that are impacted, the new guidance requires 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 adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. For the three months ended March 31, 2018, the Company identified $322 million of revenue streams within the scope of the guidance that are all included within other revenues on the interim condensed consolidated statements of operations and comprehensive income (loss). Such amount primarily consists of prepaid legal plans and administrative-only contracts within the U.S. segment of $129 million , distribution and administrative services fees within the MetLife Holdings segment of $58 million and fee-based investment management services within Corporate & Other of $71 million . Substantially all of the revenue from these services is recognized over time as the applicable services are provided or are made available to the customers and control is transferred continuously. The consideration received for these services is variable and constrained to the amount not probable of a significant revenue reversal. Other Effective January 16, 2018, the London Clearing House (“LCH”) amended its rulebook, resulting in the characterization of variation margin transfers as settlement payments, as opposed to adjustments to collateral. These amendments impacted the accounting treatment of the Company’s centrally cleared derivatives, for which the LCH serves as the central clearing party. As of the effective date, the application of the amended rulebook reduced gross derivative assets by $369 million , gross derivative liabilities by $203 million , accrued investment income by $14 million , collateral receivables recorded within premiums, reinsurance and other receivables by $184 million , and collateral payables recorded within payables for collateral under securities loaned and other transactions by $365 million . The application of the amended rulebook increased accrued investment expense recorded within other liabilities by $1 million . Future Adoption of New Accounting Pronouncements In August 2017, the Financial Accounting Standards Board (“FASB”) issued new guidance on hedging activities (Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities) . The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years and should be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings. Early adoption is permitted. The new guidance simplifies the application of hedge accounting in certain situations and amends the hedge accounting model to enable entities to better portray the economics of their risk management activities in their financial statements. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. In March 2017, the FASB issued new guidance on purchased callable debt securities (ASU 2017-08, Receivables -Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities ). The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years and should be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings. Early adoption is permitted. The ASU shortens the amortization period for certain callable debt securities held at a premium and requires the premium to be amortized to the earliest call date. However, the new guidance does not require an accounting change for securities held at a discount whose discount continues to be amortized to maturity. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. In January 2017, the FASB issued new guidance on goodwill impairment (ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ). The new guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The new guidance simplifies the current two-step goodwill impairment test by eliminating Step 2 of the test. See Note 11 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for a description of the two-step test. The new guidance requires a one-step impairment test in which an entity compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any. The Company expects the adoption of this new guidance will reduce the complexity involved with the evaluation of goodwill for impairment. The impact of the new guidance will depend on the outcomes of future goodwill impairment tests. In June 2016, the FASB issued new guidance on measurement of credit losses on financial instruments (ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ). The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. 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 new guidance requires that an other-than-temporary impairment (“ OTTI”) on a debt security will be recognized as an allowance going forward, such that improvements in expected future cash flows after an impairment will no longer be reflected as a prospective yield adjustment through net investment income, but rather a reversal of the previous impairment and recognized through realized investment gains and losses. The guidance also requires enhanced disclosures. The Company has assessed the asset classes impacted by the new guidance and is currently assessing the accounting and reporting system changes that will be required to comply with the new guidance. The Company believes that the most significant impact upon adoption will be to its mortgage loan investments. The Company is currently evaluating the impact of the new 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. 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. Leases would be classified as finance or operating leases and both types of leases will 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’s implementation efforts are primarily focused on the review of its existing lease contracts, identification of other contracts that may fall under the scope of the new guidance, and performing a gap analysis on the current state of lease-related activities compared with the future state of lease-related activities. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 2. Segment Information MetLife is organized into five segments: U.S.; Asia; Latin America; EMEA; and MetLife Holdings. In addition, the Company reports certain of its results of operations in Corporate & Other. U.S. The U.S. segment offers a broad range of protection products and services aimed at serving the financial needs of customers throughout their lives. These products are sold to corporations and their respective employees, other institutions and their respective members, as well as individuals. The U.S. segment is organized into three businesses: Group Benefits, Retirement and Income Solutions and Property & Casualty. • The Group Benefits business offers insurance products and services which include life, dental, group short- and long-term disability, individual disability, accidental death and dismemberment, vision and accident & health coverages, as well as prepaid legal plans. This business also sells administrative services-only arrangements to some employers. • The Retirement and Income Solutions business offers a broad range of annuity and investment products, including stable value and pension risk transfer products, institutional income annuities, tort settlements, capital market investment products, as well as postretirement benefits and company-, bank- or trust-owned life insurance. • The Property & Casualty business offers personal and commercial lines of property and casualty insurance, including private passenger automobile, homeowners’ and personal excess liability insurance. In addition, Property & Casualty offers small business owners property, liability and business interruption insurance. 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 and term life, endowments, universal and variable life, accident & health insurance and fixed and variable annuities. 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, retirement and savings products, accident & health insurance and credit insurance. 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, retirement and savings products and credit insurance. MetLife Holdings The MetLife Holdings segment consists of operations relating to products and businesses no longer actively marketed by the Company in the United States, such as variable, universal, term and whole life insurance, variable, fixed and index-linked annuities, long-term care insurance, as well as the assumed variable annuity guarantees from the Company’s former operating joint venture in Japan. Corporate & Other Corporate & Other contains the excess capital, as well as certain charges and activities, not allocated to the segments, including external integration and disposition costs, internal resource costs for associates committed to acquisitions and dispositions, enterprise-wide strategic initiative restructuring charges and various start-up businesses (including the investment management business through which the Company offers fee-based investment management services to institutional clients). Additionally, Corporate & Other includes run-off businesses such as the direct to consumer portion of the U.S. Direct business. Corporate & Other also includes interest expense related to the majority of the Company’s outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues. In addition, Corporate & Other includes the elimination of intersegment amounts, which generally relate to affiliated reinsurance and intersegment loans, which bear interest rates commensurate with related borrowings. Financial Measures and Segment Accounting Policies Adjusted earnings is used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings is also the Company’s GAAP measure of segment performance and is reported below. Adjusted earnings should not be viewed as a substitute for income (loss) from continuing operations, net of income tax. The Company believes the presentation of adjusted 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. Adjusted earnings is defined as adjusted revenues less adjusted expenses, net of income tax. The financial measures of adjusted revenues and adjusted expenses focus on the Company’s primary businesses principally by excluding the impact of market volatility, which could distort trends, and revenues and costs related to non-core products and certain entities required to be consolidated under GAAP. Also, these measures exclude results of discontinued operations under GAAP and other businesses that have been or will be sold or exited by MetLife but do not meet the discontinued operations criteria under GAAP and are referred to as divested businesses. Divested businesses also includes the net impact of transactions with exited businesses that have been eliminated in consolidation under GAAP and costs relating to businesses that have been or will be sold or exited by MetLife that do not meet the criteria to be included in results of discontinued operations under GAAP. Adjusted revenues also excludes net investment gains (losses) and net derivative gains (losses). Adjusted expenses also excludes goodwill impairments. The following additional adjustments are made to revenues, in the line items indicated, in calculating adjusted 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 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) excludes post-tax adjusted earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iii) excludes certain amounts related to contractholder-directed unit-linked investments, (iv) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP and (v) includes distributions of profits from certain other limited partnerships that were previously accounted for under the cost method, but are now accounted for at estimated fair value, where the change in fair value is recognized in net investment gains (losses) for GAAP; and • Other revenues are adjusted for settlements of foreign currency earnings hedges and excludes fees received in association with services provided under transition service agreements (“TSA fees”). The following additional adjustments are made to expenses, in the line items indicated, in calculating adjusted 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. Other expenses includes TSA fees. Adjusted 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. The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax rate, which could differ from the Company’s effective tax rate. Additionally, the 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 ended March 31, 2018 and 2017 . The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for adjusted 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, income (loss) from continuing operations, net of income tax, or adjusted earnings. 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. Three Months Ended March 31, 2018 U.S. Asia Latin EMEA MetLife Holdings Corporate & Other Total Adjustments Total (In millions) Revenues Premiums $ 5,217 $ 1,748 $ 699 $ 551 $ 950 $ 13 $ 9,178 $ — $ 9,178 Universal life and investment-type product policy fees 258 394 282 112 314 — 1,360 32 1,392 Net investment income 1,662 795 276 75 1,352 59 4,219 (474 ) 3,745 Other revenues 204 15 8 16 67 81 391 83 474 Net investment gains (losses) — — — — — — — (333 ) (333 ) Net derivative gains (losses) — — — — — — — 349 349 Total revenues 7,341 2,952 1,265 754 2,683 153 15,148 (343 ) 14,805 Expenses Policyholder benefits and claims and policyholder dividends 5,138 1,343 646 294 1,550 (3 ) 8,968 47 9,015 Interest credited to policyholder account balances 407 351 98 25 236 — 1,117 (348 ) 769 Capitalization of DAC (106 ) (465 ) (94 ) (118 ) (10 ) (2 ) (795 ) (1 ) (796 ) Amortization of DAC and VOBA 115 314 60 106 100 2 697 (4 ) 693 Amortization of negative VOBA — (15 ) — (6 ) — — (21 ) (1 ) (22 ) Interest expense on debt 2 — 2 — 2 280 286 — 286 Other expenses 961 952 338 351 276 232 3,110 94 3,204 Total expenses 6,517 2,480 1,050 652 2,154 509 13,362 (213 ) 13,149 Provision for income tax expense (benefit) 171 145 75 21 104 (159 ) 357 42 399 Adjusted earnings $ 653 $ 327 $ 140 $ 81 $ 425 $ (197 ) 1,429 Adjustments to: Total revenues (343 ) Total expenses 213 Provision for income tax (expense) benefit (42 ) Income (loss) from continuing operations, net of income tax $ 1,257 $ 1,257 Three Months Ended March 31, 2017 U.S. Asia Latin America EMEA MetLife Holdings Corporate & Other Total Adjustments Total (In millions) Revenues Premiums $ 5,185 $ 1,708 $ 647 $ 502 $ 1,059 $ 38 $ 9,139 $ (174 ) $ 8,965 Universal life and investment-type product policy fees 265 366 260 95 362 — 1,348 12 1,360 Net investment income 1,612 702 303 74 1,441 40 4,172 249 4,421 Other revenues 204 10 9 17 96 59 395 (53 ) 342 Net investment gains (losses) — — — — — — — 88 88 Net derivative gains (losses) — — — — — — — (212 ) (212 ) Total revenues 7,266 2,786 1,219 688 2,958 137 15,054 (90 ) 14,964 Expenses Policyholder benefits and claims and policyholder dividends 5,244 1,315 633 269 1,733 25 9,219 (46 ) 9,173 Interest credited to policyholder account balances 351 321 82 24 257 1 1,036 415 1,451 Capitalization of DAC (100 ) (420 ) (82 ) (92 ) (34 ) (1 ) (729 ) 16 (713 ) Amortization of DAC and VOBA 114 291 78 87 74 1 645 18 663 Amortization of negative VOBA — (37 ) — (3 ) — — (40 ) (3 ) (43 ) Interest expense on debt 2 — 1 — 15 277 295 (12 ) 283 Other expenses 909 875 326 316 340 175 2,941 137 3,078 Total expenses 6,520 2,345 1,038 601 2,385 478 13,367 525 13,892 Provision for income tax expense (benefit) 249 146 38 12 186 (271 ) 360 (240 ) 120 Adjusted earnings $ 497 $ 295 $ 143 $ 75 $ 387 $ (70 ) 1,327 Adjustments to: Total revenues (90 ) Total expenses (525 ) Provision for income tax (expense) benefit 240 Income (loss) from continuing operations, net of income tax $ 952 $ 952 The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at: March 31, 2018 December 31, 2017 (In millions) U.S. $ 251,496 $ 255,428 Asia 143,458 136,928 Latin America 78,638 79,670 EMEA 30,546 30,500 MetLife Holdings 175,817 183,160 Corporate & Other 32,629 34,206 Total $ 712,584 $ 719,892 |
Dispositions
Dispositions | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure | 3. Dispositions 2018 Disposition On February 20, 2018, the Company completed the sale of MetLife Afore, S.A. de C.V., its pension fund management business in Mexico. See Note 3 of the Notes to the Consolidated Financial Statement included in the 2017 Annual Report for further information. 2017 Separation of Brighthouse On August 4, 2017, MetLife, Inc. completed the separation of Brighthouse. MetLife, Inc. retained the remaining ownership interest of 22,996,436 shares, or 19.2% , of Brighthouse Financial, Inc. common stock and recognized its investment in Brighthouse Financial, Inc. common stock based on the NASDAQ reported market price. The Company elected to record the investment under the FVO as an observable measure of estimated fair value that is aligned with the Company’s intent to divest of the retained shares as soon as practicable. Subsequent changes in estimated fair value of the investment are recorded to net investment gains (losses). The estimated fair value of the Brighthouse Financial, Inc. common stock held by the Company (“FVO Brighthouse Common Stock”) at March 31, 2018 and December 31, 2017 was $1.2 billion and $1.3 billion , respectively, reported within contractholder-directed equity securities and fair value option securities. In the first quarter of 2018, the Company recorded a $168 million mark-to-market loss on its retained investment in Brighthouse Financial, Inc. to net investment gains (losses). The Company incurred pre-tax Separation-related transaction costs of $77 million for the three months ended March 31, 2017, primarily related to third party staffing costs. Separation-related transaction costs are recorded in other expenses and reported within continuing operations. See Note 3 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for further information regarding the Separation, including Separation-related agreements and ongoing transactions with Brighthouse. Agreements Tax Agreements Immediately prior to the Separation, MetLife entered into tax agreements with Brighthouse. In accordance with the tax separation agreement, at both March 31, 2018 and December 31, 2017, the Company’s current income tax receivable and corresponding payable to Brighthouse, reported in other liabilities, were $726 million . As part of the tax receivable agreement, MetLife Inc. has the right to receive future payments from Brighthouse for a tax asset that Brighthouse received as a result of restructuring prior to the Separation. Included in other assets at both March 31, 2018 and December 31, 2017, is a receivable from Brighthouse of $333 million related to these future payments. Ongoing Transactions with Brighthouse The Company considered all of its continuing involvement with Brighthouse in determining whether to deconsolidate and present Brighthouse results as discontinued operations, including the agreements entered into between MetLife and Brighthouse and the ongoing transactions described below. The Company entered into reinsurance, committed facility, structured settlement, and contract administrative services transactions with Brighthouse in the normal course of business and such transactions will continue based upon business needs. In addition, prior to and in connection with the Separation, the Company entered into various other agreements with Brighthouse for services necessary for both the Company and Brighthouse to conduct their activities. Intercompany transactions prior to the Separation between the Company and Brighthouse are eliminated and excluded from the interim condensed consolidated statements of operations and comprehensive income (loss). Transactions between the Company and Brighthouse that continue after the Separation are included on the Company’s interim condensed consolidated statements of operations and comprehensive income (loss) and interim condensed consolidated balance sheets. Reinsurance The Company entered into reinsurance transactions with Brighthouse in the normal course of business and such transactions will continue based upon business needs. Information regarding the significant effects of reinsurance transactions with Brighthouse was as follows: Included on Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) Excluded from Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) Three Months 2018 2017 (In millions) Premiums Reinsurance assumed $ 96 $ 97 Reinsurance ceded (3 ) (3 ) Net premiums $ 93 $ 94 Universal life and investment-type product policy fees Reinsurance assumed $ 1 $ (4 ) Reinsurance ceded (24 ) (24 ) Net universal life and investment-type product policy fees $ (23 ) $ (28 ) Policyholder benefits and claims Reinsurance assumed $ 78 $ 75 Reinsurance ceded (10 ) (6 ) Net policyholder benefits and claims $ 68 $ 69 Interest credited to policyholder account balances Reinsurance assumed $ 4 $ 4 Reinsurance ceded (18 ) (18 ) Net interest credited to policyholder account balances $ (14 ) $ (14 ) Other expenses Reinsurance assumed $ 34 $ (30 ) Reinsurance ceded (14 ) (21 ) Net other expenses $ 20 $ (51 ) Information regarding the significant effects of reinsurance transactions with Brighthouse included on the interim condensed consolidated balance sheets was as follows at: March 31, 2018 December 31, 2017 Assumed Ceded Assumed Ceded (In millions) Assets Premiums, reinsurance and other receivables $ 154 $ 1,802 $ 167 $ 1,793 Deferred policy acquisition costs and value of business acquired 390 (40 ) 384 (40 ) Total assets $ 544 $ 1,762 $ 551 $ 1,753 Liabilities Future policy benefits $ 1,788 $ — $ 1,734 $ — Other policy-related balances 116 25 119 28 Other liabilities 1,447 25 1,458 19 Total liabilities $ 3,351 $ 50 $ 3,311 $ 47 Investment Management In connection with the Separation, the Company entered into investment management services agreements with Brighthouse. During the three months ended March 31, 2018, the Company recognized $29 million in other revenues for services provided under such investment management services agreements. Prior to the Separation, during the three months ended March 31, 2017, the Company charged Brighthouse $25 million , for services provided under the agreements, which were intercompany transactions and eliminated and excluded from the interim condensed consolidated statements of operations and comprehensive income (loss). MetLife Reinsurance Company of Vermont and MetLife, Inc. have a $2.9 billion committed facility which is used as collateral for certain affiliated reinsurance liabilities. At March 31, 2018 , Brighthouse was a beneficiary of $2.4 billion of letters of credit issued under this committed facility and, in consideration, Brighthouse reimbursed MetLife, Inc. for a portion of the letter of credit fees. Prior to the Separation, the Company entered into the committed facility with Brighthouse in the normal course of business and such transactions will continue based upon business needs. Transition Services In connection with the Separation, the Company entered into a transition services agreement with Brighthouse for services necessary for Brighthouse to conduct its activities. During the three months ended March 31, 2018, the Company recognized $79 million as other revenue for transitional services provided under the agreement. Prior to the Separation, during the three months ended March 31, 2017, the Company charged Brighthouse $81 million , for services provided under the agreement, which were intercompany transactions and eliminated and excluded from the interim condensed consolidated statements of operations and comprehensive income (loss). Other The Company has existing assumed structured settlement claim obligations as an assignment company for Brighthouse. These liabilities are measured at the present value of the periodic claims to be provided and reported as other policy-related balances. The Company receives a fee for assuming these claim obligations and, as the assignee of the claim, is legally obligated to ensure periodic payments are made to the claimant. The Company purchased annuities from Brighthouse to fund these obligations and designates payments to be made directly to the claimant by Brighthouse as the annuity writer. The aggregate contract values of annuities funding structured settlement claims are recorded as an asset for which the Company has also recorded an unpaid claim obligation reported in other policy-related balances. Such aggregated contract values were $ 1.3 billion at both March 31, 2018 and December 31, 2017. The Company entered into these transactions with Brighthouse in the normal course of business and such transactions will continue based upon business needs. The Company provides services necessary for Brighthouse to conduct its business, which primarily include contract administrative services for certain Brighthouse investment-type products. During the three months ended March 31, 2018, the Company recognized revenue of $32 million for administrative services provided to Brighthouse. Prior to the Separation, during the three months ended March 31, 2017, the Company provided administrative services to Brighthouse for $31 million , which were intercompany transactions and eliminated and excluded from the interim condensed consolidated statements of operations and comprehensive income (loss). The Company entered into these transactions with Brighthouse in the normal course of business and such transactions will continue based upon business needs. In connection with the Separation, the Company entered into an employee matters agreement with Brighthouse to allocate obligations and responsibilities relating to employee compensation and benefit plans and other related matters. The employee matters agreement provides that MetLife will reimburse Brighthouse for certain pension benefit payments, retiree health and life benefit payments and deferred compensation payments. Included in other liabilities at both March 31, 2018 and December 31, 2017, is a payable to Brighthouse of $186 million related to these future payments. At March 31, 2018, the Company had a receivable from Brighthouse of $ 87 million related to services provided and a payable to Brighthouse of $48 million related to services received. At December 31, 2017, the Company had a receivable from Brighthouse of $97 million related to services provided and a payable to Brighthouse of $50 million related to services received. Discontinued Operations The following table presents the amounts related to the operations of Brighthouse that have been reflected in discontinued operations: Three Months Ended March 31, 2017 (In millions) Revenues Premiums $ 350 Universal life and investment-type product policy fees 942 Net investment income 775 Other revenues 32 Total net investment gains (losses) (50 ) Net derivative gains (losses) (700 ) Total revenues 1,349 Expenses Policyholder benefits and claims 1,002 Interest credited to policyholder account balances 261 Policyholder dividends 7 Goodwill impairment — Other expenses 261 Total expenses 1,531 Income (loss) from discontinued operations before provision for income tax (182 ) Provision for income tax expense (benefit) (106 ) Income (loss) from discontinued operations, net of income tax $ (76 ) In the interim condensed consolidated statements of cash flows, the cash flows from discontinued operations are not separately classified. The following table presents selected financial information regarding cash flows of the discontinued operations. Three Months Ended 2017 (In millions) Net cash provided by (used in): Operating activities $ 302 Investing activities $ 16 Financing activities $ 266 |
Insurance
Insurance | 3 Months Ended |
Mar. 31, 2018 | |
Insurance [Abstract] | |
Insurance | 4. Insurance Guarantees As discussed in Notes 1 and 4 of the Notes to the Consolidated Financial Statements included in the 2017 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: March 31, 2018 December 31, 2017 In the At In the At (Dollars in millions) Annuity Contracts: Variable Annuity Guarantees: Total account value (1), (2), (3) $ 64,728 $ 25,169 $ 66,724 $ 26,223 Separate account value (1) $ 43,714 $ 23,302 $ 45,431 $ 24,336 Net amount at risk (2) $ 1,587 (4 ) $ 510 (5 ) $ 1,238 (4 ) $ 525 (5 ) Average attained age of contractholders 66 years 66 years 65 years 65 years Other Annuity Guarantees: Total account value (1), (3) N/A $ 1,437 N/A $ 1,424 Net amount at risk N/A $ 559 (6 ) N/A $ 569 (6 ) Average attained age of contractholders N/A 50 years N/A 50 years March 31, 2018 December 31, 2017 Secondary Paid-Up Secondary Paid-Up (Dollars in millions) Universal and Variable Life Contracts: Total account value (1), (3) $ 9,089 $ 3,171 $ 9,036 $ 3,207 Net amount at risk (7) $ 66,762 $ 16,332 $ 66,956 $ 16,615 Average attained age of policyholders 57 years 63 years 56 years 63 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 interim condensed consolidated balance sheets, from assumed variable annuity guarantees 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. Liabilities for Unpaid Claims and Claim Expenses Rollforward of Claims and Claim Adjustment Expenses Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows: Three Months 2018 2017 (1) (In millions) Balance, beginning of period $ 17,094 $ 16,157 Less: Reinsurance recoverables 2,198 1,968 Net balance, beginning of period 14,896 14,189 Incurred related to: Current period 6,504 6,637 Prior periods (2) (148 ) (127 ) Total incurred 6,356 6,510 Paid related to: Current period (3,339 ) (3,723 ) Prior periods (2,719 ) (2,604 ) Total paid (6,058 ) (6,327 ) Net balance, end of period 15,194 14,372 Add: Reinsurance recoverables 2,237 2,123 Balance, end of period (included in future policy benefits and other policy-related balances) $ 17,431 $ 16,495 __________________ (1) As discussed in Note 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report, at December 31, 2016, the Net balance decreased and the Reinsurance recoverables increased from those amounts previously reported. Additionally, at March 31, 2017, the Net balance decreased by $131 million and the Reinsurance recoverables increased by $144 million from those amounts previously reported in MetLife, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017. These adjustments to the Net balance and the Reinsurance recoverables, at both periods, are primarily to correct for improper classification of reinsurance recoverables. (2) During both the three months ended March 31, 2018 and 2017 , as a result of changes in estimates of insured events in the respective prior periods, the claims and claim adjustment expenses associated with prior periods decreased due to favorable claims experience. |
Closed Block
Closed Block | 3 Months Ended |
Mar. 31, 2018 | |
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: March 31, 2018 December 31, 2017 (In millions) Closed Block Liabilities Future policy benefits $ 40,285 $ 40,463 Other policy-related balances 213 222 Policyholder dividends payable 462 437 Policyholder dividend obligation 1,277 2,121 Other liabilities 285 212 Total closed block liabilities 42,522 43,455 Assets Designated to the Closed Block Investments: Fixed maturity securities available-for-sale, at estimated fair value 26,815 27,904 Equity securities, at estimated fair value 68 70 Mortgage loans 6,040 5,878 Policy loans 4,532 4,548 Real estate and real estate joint ventures 595 613 Other invested assets 607 731 Total investments 38,657 39,744 Accrued investment income 475 477 Premiums, reinsurance and other receivables; cash and cash equivalents 208 14 Current income tax recoverable 40 35 Deferred income tax assets 23 36 Total assets designated to the closed block 39,403 40,306 Excess of closed block liabilities over assets designated to the closed block 3,119 3,149 Amounts included in AOCI: Unrealized investment gains (losses), net of income tax 1,711 1,863 Unrealized gains (losses) on derivatives, net of income tax (57 ) (7 ) Allocated to policyholder dividend obligation, net of income tax (1,009 ) (1,379 ) Total amounts included in AOCI 645 477 Maximum future earnings to be recognized from closed block assets and liabilities $ 3,764 $ 3,626 See Note 1 for discussion of new accounting guidance related to U.S. Tax Reform. Information regarding the closed block policyholder dividend obligation was as follows: Three Months Year (In millions) Balance, beginning of period $ 2,121 $ 1,931 Change in unrealized investment and derivative gains (losses) (844 ) 190 Balance, end of period $ 1,277 $ 2,121 Information regarding the closed block revenues and expenses was as follows: Three Months 2018 2017 (In millions) Revenues Premiums $ 387 $ 402 Net investment income 444 466 Net investment gains (losses) (29 ) (8 ) Net derivative gains (losses) (3 ) (8 ) Total revenues 799 852 Expenses Policyholder benefits and claims 571 568 Policyholder dividends 244 250 Other expenses 29 32 Total expenses 844 850 Revenues, net of expenses before provision for income tax expense (benefit) (45 ) 2 Provision for income tax expense (benefit) (10 ) — Revenues, net of expenses and provision for income tax expense (benefit) $ (35 ) $ 2 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 | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 6. Investments Fixed Maturity Securities Available-for-Sale Fixed Maturity Securities Available-for-Sale by Sector The following table presents the fixed maturity securities AFS by sector. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities. Included within fixed maturity securities AFS are structured securities including residential mortgage-backed securities (“RMBS”), asset-backed securities (“ABS”) and commercial mortgage-backed securities (“CMBS”) (collectively, “Structured Securities”). March 31, 2018 December 31, 2017 Amortized Gross Unrealized Estimated Amortized Gross Unrealized Estimated Temporary OTTI Temporary OTTI (In millions) Fixed maturity securities: U.S. corporate $ 77,786 $ 5,105 $ 1,057 $ — $ 81,834 $ 76,005 $ 7,007 $ 351 $ — $ 82,661 Foreign government 58,423 6,484 397 — 64,510 55,351 6,495 312 — 61,534 Foreign corporate 52,894 3,366 797 — 55,463 52,409 3,836 676 — 55,569 U.S. government and agency 40,989 3,395 557 — 43,827 43,446 4,227 279 — 47,394 RMBS 26,858 999 481 (35 ) 27,411 27,846 1,145 233 (42 ) 28,800 State and political subdivision 10,762 1,473 43 — 12,192 10,752 1,717 13 1 12,455 ABS 11,695 111 41 1 11,764 12,213 116 39 (1 ) 12,291 CMBS 7,692 112 94 — 7,710 8,047 222 42 — 8,227 Total fixed maturity securities $ 287,099 $ 21,045 $ 3,467 $ (34 ) $ 304,711 $ 286,069 $ 24,765 $ 1,945 $ (42 ) $ 308,931 __________________ (1) Noncredit OTTI losses included in AOCI in an unrealized gain position are 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 $24 million and $6 million , and unrealized gains (losses) of ($1) million and ($4) million , at March 31, 2018 and December 31, 2017 , respectively. Maturities of Fixed Maturity Securities The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at March 31, 2018 : Due in One Due After Due After Five Years Through Ten Years Due After Ten Years Structured Securities Total Fixed Maturity Securities (In millions) Amortized cost $ 12,620 $ 60,639 $ 61,373 $ 106,222 $ 46,245 $ 287,099 Estimated fair value $ 12,674 $ 62,809 $ 63,919 $ 118,424 $ 46,885 $ 304,711 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 Securities AFS by Sector The following table presents the estimated fair value and gross unrealized losses of fixed maturity 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 at: March 31, 2018 December 31, 2017 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 $ 20,465 $ 642 $ 4,426 $ 415 $ 5,604 $ 92 $ 4,115 $ 259 Foreign government 4,510 137 3,297 260 4,234 83 3,251 229 Foreign corporate 8,932 259 5,835 538 4,422 99 6,802 577 U.S. government and agency 19,105 224 3,378 333 18,273 93 3,560 186 RMBS 10,855 237 3,713 209 6,359 50 4,159 141 State and political subdivision 774 24 302 19 182 2 346 12 ABS 2,593 15 551 27 1,695 7 729 31 CMBS 3,069 48 478 46 1,174 9 413 33 Total fixed maturity securities $ 70,303 $ 1,586 $ 21,980 $ 1,847 $ 41,943 $ 435 $ 23,375 $ 1,468 Total number of securities in an unrealized loss position 5,111 1,887 2,598 1,955 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 2017 Annual Report, the Company performs a regular evaluation of all investment classes for impairment, including fixed maturity securities and perpetual hybrid securities, in accordance with its impairment policy, in order to evaluate whether such investments are other-than-temporarily impaired. Current Period Evaluation Based on the Company’s current evaluation of its AFS securities in an unrealized loss position in accordance with its impairment policy, and the Company’s current intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities, the Company concluded that these securities were not other-than-temporarily impaired at March 31, 2018 . Future OTTI will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), changes in credit ratings, collateral valuation, interest rates and credit spreads. If economic fundamentals deteriorate or if there are adverse changes in the above factors, OTTI may be incurred in upcoming periods. Gross unrealized losses on fixed maturity securities increased $1.5 billion during the three months ended March 31, 2018 to $3.4 billion . The increase in gross unrealized losses for the three months ended March 31, 2018 was primarily attributable to widening credit spreads and increases in interest rates, partially offset by strengthening foreign currencies on non-functional currency denominated fixed maturity securities. At March 31, 2018 , $85 million of the total $3.4 billion of gross unrealized losses were from 28 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 $85 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, $40 million , or 47% , were related to gross unrealized losses on 11 investment grade fixed maturity securities. Unrealized losses on investment grade fixed maturity securities are principally related to widening credit spreads since purchase and, with respect to fixed-rate fixed maturity securities, rising interest rates since purchase. Below Investment Grade Fixed Maturity Securities Of the $85 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, $45 million , or 53% , were related to gross unrealized losses on 17 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 and utility securities) and CMBS and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainty 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 and evaluates CMBS based on actual and projected cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, the payment terms of the underlying assets backing a particular security and the payment priority within the tranche structure of the security. Equity Securities Equity securities are summarized as follows at: March 31, 2018 December 31, 2017 Estimated Fair Value % of Total Estimated Fair Value % of Total (Dollars in millions) Equity securities: Common stock $ 1,046 67.7 % $ 2,035 81.0 % Non-redeemable preferred stock 498 32.3 478 19.0 Total equity securities $ 1,544 100.0 % $ 2,513 100.0 % In connection with the adoption of new guidance related to the recognition and measurement of financial instruments (see Note 1 ), effective January 1, 2018, the Company has reclassified its investment in common stock in regional banks of the Federal Home Loan Bank (“FHLB”) system from equity securities to other invested assets. These investments are carried at redemption value and are considered restricted investments until redeemed by the respective FHLB regional banks. The carrying value of these investments at December 31, 2017 was $791 million . Contractholder-Directed Equity Securities and Fair Value Option Securities Contractholder-directed equity securities and fair value option securities (collectively, “Unit-linked and FVO Securities”), are investments for which the FVO has been elected, or are otherwise required to be carried at estimated fair value, and include: • contractholder-directed investments supporting unit-linked variable annuity type liabilities which do not qualify for presentation and reporting as separate account summary total assets and liabilities. These investments are primarily equity securities (including mutual funds) and, to a lesser extent, fixed maturity securities, short-term investments and cash and cash equivalents. The investment returns on these investments inure to contractholders and are offset by a corresponding change in policyholder account balances through interest credited to policyholder account balances (“Unit-linked investments”); • FVO Brighthouse Common Stock (see Note 3 ); • fixed maturity and equity securities held-for-investment by the general account to support asset and liability management strategies for certain insurance products and investments in certain separate accounts (“FVO general account securities”); and • FVO securities held by consolidated securitization entities. Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at: March 31, 2018 December 31, 2017 Carrying Value % of Carrying Value % of (Dollars in millions) Mortgage loans: Commercial $ 46,690 65.7 % $ 44,375 64.6 % Agricultural 13,098 18.4 13,014 18.9 Residential 11,156 15.7 11,136 16.2 Subtotal (1) 70,944 99.8 68,525 99.7 Valuation allowances (327 ) (0.4 ) (314 ) (0.5 ) Subtotal mortgage loans, net 70,617 99.4 68,211 99.2 Residential — FVO 438 0.6 520 0.8 Total mortgage loans, net $ 71,055 100.0 % $ 68,731 100.0 % __________________ (1) Purchases of mortgage loans, primarily residential mortgage loans, were $307 million and $762 million for the three months ended March 31, 2018 and 2017 , respectively. Information on commercial, agricultural and residential mortgage loans is presented in the tables below. Information on residential mortgage loans — FVO is presented in Note 8 . The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis. Mortgage Loans, Valuation Allowance and Impaired Loans by Portfolio Segment Mortgage loans by portfolio segment, by method of evaluation of credit loss, impaired mortgage loans including those modified in a troubled debt restructuring, and the related valuation allowances, were as follows at: Evaluated Individually for Credit Losses Evaluated Collectively for Credit Losses Impaired Loans Impaired Loans with a Valuation Allowance Impaired Loans without a Valuation Allowance Unpaid Principal Balance Recorded Investment Valuation Unpaid Principal Balance Recorded Recorded Valuation Carrying (In millions) March 31, 2018 Commercial $ — $ — $ — $ — $ — $ 46,690 $ 228 $ — Agricultural 22 21 2 101 100 12,977 39 119 Residential — — — 376 339 10,817 58 339 Total $ 22 $ 21 $ 2 $ 477 $ 439 $ 70,484 $ 325 $ 458 December 31, 2017 Commercial $ — $ — $ — $ — $ — $ 44,375 $ 214 $ — Agricultural 22 21 2 27 27 12,966 39 46 Residential — — — 358 324 10,812 59 324 Total $ 22 $ 21 $ 2 $ 385 $ 351 $ 68,153 $ 312 $ 370 The average recorded investment for impaired commercial, agricultural and residential mortgage loans was $0 , $84 million and $331 million , respectively, for the three months ended March 31, 2018 ; and $12 million , $25 million and $253 million , respectively, for the three months ended March 31, 2017 . Valuation Allowance Rollforward by Portfolio Segment The changes in the valuation allowance, by portfolio segment, were as follows: Three Months 2018 2017 Commercial Agricultural Residential Total Commercial Agricultural Residential Total (In millions) Balance, beginning of period $ 214 $ 41 $ 59 $ 314 $ 202 $ 39 $ 63 $ 304 Provision (release) 14 — — 14 5 — 5 10 Charge-offs, net of recoveries — — (1 ) (1 ) — — (4 ) (4 ) Balance, end of period $ 228 $ 41 $ 58 $ 327 $ 207 $ 39 $ 64 $ 310 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) March 31, 2018 Loan-to-value ratios: Less than 65% $ 39,705 $ 1,023 $ 186 $ 40,914 87.6 % $ 41,327 87.9 % 65% to 75% 4,280 98 143 4,521 9.7 4,504 9.6 76% to 80% 265 210 126 601 1.3 574 1.2 Greater than 80% 401 176 77 654 1.4 613 1.3 Total $ 44,651 $ 1,507 $ 532 $ 46,690 100.0 % $ 47,018 100.0 % December 31, 2017 Loan-to-value ratios: Less than 65% $ 37,073 $ 1,483 $ 201 $ 38,757 87.4 % $ 39,528 87.7 % 65% to 75% 4,183 98 119 4,400 9.9 4,408 9.8 76% to 80% 235 210 57 502 1.1 476 1.0 Greater than 80% 401 168 147 716 1.6 672 1.5 Total $ 41,892 $ 1,959 $ 524 $ 44,375 100.0 % $ 45,084 100.0 % Credit Quality of Agricultural Mortgage Loans The credit quality of agricultural mortgage loans was as follows at: March 31, 2018 December 31, 2017 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Loan-to-value ratios: Less than 65% $ 12,433 94.9 % $ 12,347 94.9 % 65% to 75% 616 4.7 618 4.7 76% to 80% 40 0.3 40 0.3 Greater than 80% 9 0.1 9 0.1 Total $ 13,098 100.0 % $ 13,014 100.0 % The estimated fair value of agricultural mortgage loans was $13.0 billion and $13.1 billion at March 31, 2018 and December 31, 2017 , respectively. Credit Quality of Residential Mortgage Loans The credit quality of residential mortgage loans was as follows at: March 31, 2018 December 31, 2017 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Performance indicators: Performing $ 10,748 96.3 % $ 10,622 95.4 % Nonperforming 408 3.7 514 4.6 Total $ 11,156 100.0 % $ 11,136 100.0 % The estimated fair value of residential mortgage loans was $11.8 billion and $11.6 billion at March 31, 2018 and December 31, 2017 , respectively. Past Due and Nonaccrual Mortgage Loans The Company has a high quality, well performing mortgage loan portfolio, with 99% of all mortgage loans classified as performing at both March 31, 2018 and December 31, 2017 . 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 nonaccrual mortgage loans at recorded investment, prior to valuation allowances, by portfolio segment, were as follows at: Past Due Greater than 90 Days Past Due and Still Accruing Interest Nonaccrual March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 (In millions) Commercial $ 1 $ — $ — $ — $ 1 $ — Agricultural 219 134 114 125 106 36 Residential 408 514 42 33 366 481 Total $ 628 $ 648 $ 156 $ 158 $ 473 $ 517 Cash Equivalents The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $6.3 billion and $6.2 billion at March 31, 2018 and December 31, 2017 , respectively. Net Unrealized Investment Gains (Losses) Unrealized investment gains (losses) on fixed maturity securities AFS and equity securities and the effect on DAC, VOBA, deferred sales inducements (“DSI”), future policy benefits and the policyholder dividend obligation, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI. The components of net unrealized investment gains (losses), included in AOCI, were as follows: March 31, 2018 December 31, 2017 (In millions) Fixed maturity securities $ 17,545 $ 22,645 Fixed maturity securities with noncredit OTTI losses included in AOCI 35 41 Total fixed maturity securities 17,580 22,686 Equity securities — 421 Derivatives 936 1,453 Other 136 46 Subtotal 18,652 24,606 Amounts allocated from: Future policy benefits (138 ) (77 ) DAC, VOBA and DSI (1,304 ) (1,768 ) Policyholder dividend obligation (1,277 ) (2,121 ) Subtotal (2,719 ) (3,966 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI (5 ) (12 ) Deferred income tax benefit (expense) (4,372 ) (6,958 ) Net unrealized investment gains (losses) 11,556 13,670 Net unrealized investment gains (losses) attributable to noncontrolling interests (9 ) (8 ) Net unrealized investment gains (losses) attributable to MetLife, Inc. $ 11,547 $ 13,662 The changes in net unrealized investment gains (losses) were as follows: Three Months (In millions) Balance, beginning of period $ 13,662 Cumulative effects of changes in accounting principles, net of income tax (Note 1) 1,258 Fixed maturity securities on which noncredit OTTI losses have been recognized (6 ) Unrealized investment gains (losses) during the period (5,523 ) Unrealized investment gains (losses) relating to: Future policy benefits (61 ) DAC, VOBA and DSI 464 Policyholder dividend obligation 844 Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI 7 Deferred income tax benefit (expense) 903 Net unrealized investment gains (losses) 11,548 Net unrealized investment gains (losses) attributable to noncontrolling interests (1 ) Balance, end of period $ 11,547 Change in net unrealized investment gains (losses) $ (2,114 ) Change in net unrealized investment gains (losses) attributable to noncontrolling interests (1 ) Change in net unrealized investment gains (losses) attributable to MetLife, Inc. $ (2,115 ) 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 $30.7 billion and $27.5 billion at March 31, 2018 and December 31, 2017 , respectively, and in fixed income securities of the South Korean government and its agencies with an estimated fair value of $6.4 billion and $6.5 billion at March 31, 2018 and December 31, 2017 , respectively. Securities Lending Elements of the Company’s securities lending program are presented below at: March 31, 2018 December 31, 2017 (In millions) Securities on loan: (1) Amortized cost $ 17,047 $ 17,801 Estimated fair value $ 17,812 $ 19,028 Cash collateral received from counterparties (2) $ 18,111 $ 19,417 Security collateral received from counterparties (3) $ 41 $ 19 Reinvestment portfolio — estimated fair value $ 18,149 $ 19,508 __________________ (1) Included within fixed maturity securities. (2) Included within payables for collateral under securities loaned and other transactions. (3) Security collateral received 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 was as follows at: March 31, 2018 December 31, 2017 Remaining Tenor of Securities Lending Agreements Remaining Tenor of Securities Lending Agreements Open (1) 1 Month or Less Over 1 to 6 Months Total Open (1) 1 Month or Less Over 1 to 6 Months Total (In millions) Cash collateral liability by loaned security type: U.S. government and agency $ 3,493 $ 6,282 $ 7,269 $ 17,044 $ 3,753 $ 6,031 $ 8,607 $ 18,391 Foreign government — 312 755 1,067 — 192 834 1,026 Total $ 3,493 $ 6,594 $ 8,024 $ 18,111 $ 3,753 $ 6,223 $ 9,441 $ 19,417 __________________ (1) The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral. If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized under normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at March 31, 2018 was $3.4 billion , all 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 securities, agency RMBS, ABS and U.S. corporate securities) and short-term investments, with 60% invested in U.S. government and agency securities, agency RMBS, short-term investments, cash equivalents or held in cash. 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 Agreements Elements of the Company’s short-term repurchase agreements are presented below at: March 31, 2018 December 31, 2017 (In millions) Securities on loan: (1) Amortized cost $ 2,796 $ 994 Estimated fair value $ 2,927 $ 1,141 Cash collateral received from counterparties (2) $ 2,861 $ 1,102 Reinvestment portfolio — estimated fair value $ 2,854 $ 1,102 __________________ (1) Included within fixed maturity securities, cash equivalents and short-term investments. (2) Included within payables for collateral under securities loaned and other transactions and other liabilities. The cash collateral liability by loaned security type and remaining tenor of the agreements was as follows at: March 31, 2018 December 31, 2017 Remaining Tenor of Repurchase Agreements Remaining Tenor of Repurchase Agreements 1 Month or Less Over 1 to 6 Months Total 1 Month or Less Over 1 to 6 Months Total (In millions) Cash collateral liability by loaned security type: U.S. government and agency $ 2,760 $ 5 $ 2,765 $ 1,005 $ — $ 1,005 All other corporate and government — 96 96 44 53 97 Total $ 2,760 $ 101 $ 2,861 $ 1,049 $ 53 $ 1,102 The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including U.S. government and agency securities, agency RMBS, ABS and U.S. corporate securities) and short-term investments, with 64% invested in U.S. government and agency securities, agency RMBS, short-term investments, cash equivalents or held in cash. 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. FHLB of Boston Advance Agreements At March 31, 2018 and December 31, 2017 , a subsidiary of the Company had pledged fixed maturity securities with an estimated fair value of $1.3 billion and $564 million , respectively, as collateral and received $800 million and $300 million , respectively, in cash advances under short-term advance agreements with the FHLB of Boston. The liability to return the cash advances is included within payables for collateral under securities loaned and other transactions. The estimated fair value of the reinvestment portfolio acquired with the cash advances was $804 million and $300 million at March 31, 2018 and December 31, 2017 , respectively, and consisted primarily of U.S. government and agency fixed maturity securities and Structured Securities. The subsidiary is permitted to withdraw any portion of the pledged collateral over the minimum collateral requirement at any time, other than in the event of a default by the subsidiary. The cash advance liability by loaned security type and remaining tenor of the agreements was as follows at: March 31, 2018 December 31, 2017 Remaining Tenor of Advance Agreements Remaining Tenor of Advance Agreements 1 Month or Less Over 1 to 6 Months 6 Months to 1 Year Total 1 Month or Less Over 1 to 6 Months 6 Months to 1 Year Total (In millions) Cash advance liability by loaned security type: State and political subdivision $ 100 $ 625 $ 75 $ 800 $ — $ 300 $ — $ 300 Invested Assets on Deposit, Held in Trust and Pledged as Collateral Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value for all asset classes, except mortgage loans, which are presented at carrying value, at: March 31, 2018 December 31, 2017 (In millions) Invested assets on deposit (regulatory deposits) $ 2,079 $ 1,879 Invested assets held in trust (collateral financing arrangement and reinsurance agreements) 2,586 2,490 Invested assets pledged as collateral 25,198 24,174 Total invested assets on deposit, held in trust and pledged as collateral $ 29,863 $ 28,543 The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report) and derivative transactions (see Note 7 ). Amounts in the table above include invested assets and cash and cash equivalents. See “— Securities Lending” and “— Repurchase Agreements” for information regarding securities on loan, Note 5 for information regarding investments designated to the closed block and “— Equity Securities” for information on common stock holdings in regional banks of the FHLB system, which are considered restricted investments. Variable Interest Entities The Company has invested in 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, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. Consolidated VIEs Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment. The following table presents the total assets and total liabilities relating to investment-related VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at: March 31, 2018 December 31, 2017 Total Total Total Total (In millions) Renewable energy partnership (1) $ 109 $ 1 $ 116 $ 3 Other investments 32 6 32 6 Total $ 141 $ 7 $ 148 $ 9 __________________ (1) Assets of the renewable energy partnership primarily consisted of other invested assets. Unconsolidated VIEs The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at: March 31, 2018 December 31, 2017 Carrying Maximum Carrying Maximum (In millions) Fixed maturity securities AFS: Structured Securities (2) $ 45,555 $ 45,555 $ 47,614 $ 47,614 U.S. and foreign corporate 1,355 1,355 1,560 1,560 Other limited partnership interests 4,941 9,187 4,834 8,543 Other invested assets 2,300 2,557 2,291 2,625 Other investments 41 46 82 87 Total $ 54,192 $ 58,700 $ 56,381 $ 60,429 __________________ (1) The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of $113 million and $117 million at March 31, 2018 and December 31, 2017 , respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. As described in Note 14 , the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs during both the three months ended March 31, 2018 and 2017 . Net Investment Income The components of net investment income were as follows: Three Months 2018 2017 (In millions) Investment income: Fixed maturity securities $ 2,896 $ 2,825 Equity securities 16 31 FVO general account securities (1) 6 29 Mortgage loans 792 736 Policy loans 124 127 Real estate and real estate joint ventures 168 153 Other limited partnership interests 207 240 Cash, cash equivalents and short-term investments 72 51 Operating joint ventures 13 2 Other 106 72 Subtotal 4,400 4,266 Less: Investment expenses 302 261 Subtotal, net 4,098 4,005 Unit-linked investments (1) (353 ) 416 Net investment income $ 3,745 $ 4,421 __________________ (1) Changes in estimated fair value subsequent to purchase for investments still held as of the end of the respective periods included in net investment income were principally from Unit-linked investments, and were ($373) million and $340 million for the three months ended March 31, 2018 and 2017 , respectively. Net Investment Gains (Losses) Components of Net Investment Gains (Losses) The components of net investment gains (losses) were as follows: Three Months 2018 2017 (In millions) Total gains (losses) on fixed maturity securities: OTTI losses on fixed maturity securities recognized in earnings $ — $ — Fixed maturity securities — net gains (losses) on sales and disposals (95 ) (2 ) Total gains (losses) on fixed maturity securities (95 ) (2 ) Total gains (losses) on equity securities: OTTI losses recognized — by security type: Common stock — (7 ) Non-redeemable preferred stock — (1 ) Total OTTI losses on equity securities recognized in earnings — (8 ) Equity securities — net gains (losses) on sales and disposals 102 43 Change in estimated fair value of equity securities (1) (133 ) — Total gains (losses) on equity securities (31 ) 35 Mortgage loans (21 ) (12 ) Real estate and real estate joint ventures 25 (3 ) Other limited partnership interests — (7 ) Other (130 ) (26 ) Subtotal (252 ) (15 ) Change in estimated fair value of other limited partnership interests and real estate joint ventures (5 ) — Non-investment portfolio gains (losses) (2) (76 ) 103 Subtotal (81 ) 103 Total net investment gains (losses) $ (333 ) $ 88 __________________ (1) Changes in estimated fair value subsequent to purchase for equity securities still held as of the end of the period included in net investment gains (losses) were ($37) million for the three months ended March 31, 2018 . See Note 1 . (2) Non-investment portfolio gains (losses) for the three months ended March 31, 2018 includes a loss of $168 million which represents the change in estimated fair value of FVO Brighthouse Common Stock held by the Company. See Note 3 . Gains (losses) from foreign currency transactions included within net investment gains (losses) were $65 million and $80 million for the three months ended March 31, 2018 and 2017 , respectively. Sales or Disposals and Impairments of Fixed Maturity Securities AFS Investment gains and losses o |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2018 | |
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 derivative’s 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 • Derivatives held within 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). 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 markets. 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 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, and interest rate floors primarily to protect its minimum rate guarantee liabilities against declines in interest rates below a specified level. 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, to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts and to pledge initial margin based on futures exchange requirements. 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. A synthetic guaranteed interest contract (“GIC”) is a contract that simulates the performance of a traditional GIC through the use of financial instruments. Under a synthetic GIC, the contractholder owns the underlying assets. The Company guarantees a rate of return on those assets for a premium. Synthetic GICs are not designated as hedging instruments. 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 and involuntary restructuring for corporate obligors, as well as repudiation, moratorium or governmental intervention for sovereign obligors. 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 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 underlying 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, to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts and to pledge initial margin based on futures exchange requirements. 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 primary underlying risk exposure, gross notional amount, and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at: March 31, 2018 December 31, 2017 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 $ 2,521 $ 2,111 $ 2 $ 3,843 $ 2,289 $ 3 Foreign currency swaps Foreign currency exchange rate 1,146 65 36 1,116 50 18 Foreign currency forwards Foreign currency exchange rate 3,477 97 4 3,253 2 37 Subtotal 7,144 2,273 42 8,212 2,341 58 Cash flow hedges: Interest rate swaps Interest rate 3,580 158 14 3,584 235 4 Interest rate forwards Interest rate 3,143 — 218 3,332 — 128 Foreign currency swaps Foreign currency exchange rate 33,236 1,210 1,778 32,152 1,142 1,665 Subtotal 39,959 1,368 2,010 39,068 1,377 1,797 Foreign operations hedges: Foreign currency forwards Foreign currency exchange rate 458 2 5 332 2 5 Currency options Foreign currency exchange rate 8,587 19 263 9,408 44 163 Subtotal 9,045 21 268 9,740 46 168 Total qualifying hedges 56,148 3,662 2,320 57,020 3,764 2,023 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 52,610 1,597 279 60,485 2,203 576 Interest rate floors Interest rate 7,201 66 — 7,201 92 — Interest rate caps Interest rate 46,020 221 2 53,079 78 2 Interest rate futures Interest rate 2,991 2 3 4,366 2 4 Interest rate options Interest rate 14,816 575 — 12,009 656 11 Interest rate forwards Interest rate 217 — 51 217 — 42 Interest rate total return swaps Interest rate 1,048 14 25 1,048 8 2 Synthetic GICs Interest rate 11,720 — — 11,318 — — Foreign currency swaps Foreign currency exchange rate 10,773 580 461 9,902 693 506 Foreign currency forwards Foreign currency exchange rate 13,803 295 67 12,238 79 190 Currency futures Foreign currency exchange rate 900 — 8 846 2 — Currency options Foreign currency exchange rate 2,391 9 — 3,123 55 6 Credit default swaps — purchased Credit 1,888 5 41 2,020 7 43 Credit default swaps — written Credit 11,421 210 2 11,375 271 — Equity futures Equity market 3,088 7 19 4,005 18 4 Equity index options Equity market 19,509 594 603 19,886 569 690 Equity variance swaps Equity market 4,661 52 194 4,661 54 199 Equity total return swaps Equity market 1,012 35 — 1,117 — 41 Total non-designated or nonqualifying derivatives 206,069 4,262 1,755 218,896 4,787 2,316 Total $ 262,217 $ 7,924 $ 4,075 $ 275,916 $ 8,551 $ 4,339 Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both March 31, 2018 and December 31, 2017 . 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 and interest rate swaps that are used to synthetically create 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 2018 2017 (In millions) Freestanding derivatives and hedging gains (losses) (1) $ 312 $ (369 ) Embedded derivatives gains (losses) 37 157 Total net derivative gains (losses) $ 349 $ (212 ) __________________ (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 2018 2017 (In millions) Qualifying hedges: Net investment income $ 81 $ 75 Interest credited to policyholder account balances (23 ) (6 ) Other expenses (2 ) (3 ) Nonqualifying hedges: Net derivative gains (losses) 133 168 Policyholder benefits and claims 2 2 Total $ 191 $ 236 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 Net Policyholder (In millions) Three Months Ended March 31, 2018 Interest rate derivatives $ (235 ) $ 4 $ (7 ) Foreign currency exchange rate derivatives 387 — 2 Credit derivatives — purchased (3 ) — — Credit derivatives — written (44 ) — — Equity derivatives 98 1 12 Total $ 203 $ 5 $ 7 Three Months Ended March 31, 2017 Interest rate derivatives $ (390 ) $ 2 $ 2 Foreign currency exchange rate derivatives 363 — — Credit derivatives — purchased (8 ) — — Credit derivatives — written 32 — — Equity derivatives (354 ) (3 ) (72 ) Total $ (357 ) $ (1 ) $ (70 ) __________________ (1) Changes in estimated fair value related to economic hedges of equity method investments in joint ventures and derivatives held within 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 March 31, 2018 Interest rate swaps: Fixed maturity securities $ 3 $ (2 ) $ 1 Policyholder liabilities (1) (213 ) 212 (1 ) Foreign currency swaps: Foreign-denominated fixed maturity securities and mortgage loans (27 ) 27 — Foreign-denominated policyholder account balances (2) 18 (18 ) — Foreign currency forwards: Foreign-denominated fixed maturity securities 179 (168 ) 11 Total $ (40 ) $ 51 $ 11 Three Months Ended March 31, 2017 Interest rate swaps: Fixed maturity securities $ 1 $ (1 ) $ — Policyholder liabilities (1) (51 ) 50 (1 ) Foreign currency swaps: Foreign-denominated fixed maturity securities (3 ) 3 — Foreign-denominated policyholder account balances (2) 1 2 3 Foreign currency forwards: Foreign-denominated fixed maturity securities 45 (41 ) 4 Total $ (7 ) $ 13 $ 6 __________________ (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 ended March 31, 2018 and 2017, the component of the change in estimated fair value of derivatives that was excluded from the assessment of hedge effectiveness was ($8) million and ($7) million , respectively. Cash Flow Hedges The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities; (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments; (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments; and (v) interest rate swaps and interest rate forwards to hedge forecasted fixed-rate borrowings. In certain instances, the Company discontinued cash flow hedge accounting because the forecasted transactions were no longer probable of occurring. Because certain of the forecasted transactions also were not probable of occurring within two months of the anticipated date, the Company reclassified amounts from AOCI into net derivative gains (losses). These amounts were less than $1 million and $20 million for the three months ended March 31, 2018 and 2017, respectively. At March 31, 2018 and December 31, 2017 , the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions did not exceed four years and five years , respectively. At March 31, 2018 and December 31, 2017 , the balance in AOCI associated with cash flow hedges was $936 million and $1.5 billion , respectively. For the three months ended March 31, 2017, the amount of deferred gains (losses) in AOCI related to Brighthouse derivatives was ($19) million and the amount of income reclassified from AOCI into income (loss) from discontinued operations was $12 million . The following table presents the effects of derivatives in cash flow hedging relationships on the interim condensed consolidated statements of operations and comprehensive income (loss) and the interim condensed consolidated statements of equity. The table excludes the effects of Brighthouse derivatives prior to the Separation. Derivatives in Cash Flow Amount of Gains Amount and Location Amount and Location (Effective Portion) (Effective Portion) (Ineffective Portion) Net Derivative Net Investment Other Net Derivative (In millions) Three Months Ended March 31, 2018 Interest rate sw |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 8. Fair Value onsiderable 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 at: March 31, 2018 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 77,597 $ 4,237 $ 81,834 Foreign government — 64,331 179 64,510 Foreign corporate — 48,890 6,573 55,463 U.S. government and agency 22,873 20,954 — 43,827 RMBS — 24,155 3,256 27,411 State and political subdivision — 12,192 — 12,192 ABS — 10,739 1,025 11,764 CMBS — 7,409 301 7,710 Total fixed maturity securities 22,873 266,267 15,571 304,711 Equity securities 909 213 422 1,544 Unit-linked and FVO Securities (1) 13,705 2,453 286 16,444 Other limited partnership interests — — 194 194 Short-term investments (2) 2,845 990 615 4,450 Residential mortgage loans — FVO — — 438 438 Other investments 83 90 — 173 Derivative assets: (3) Interest rate 2 4,728 14 4,744 Foreign currency exchange rate — 2,120 157 2,277 Credit — 180 35 215 Equity market 7 603 78 688 Total derivative assets 9 7,631 284 7,924 Embedded derivatives within asset host contracts (4) — — 157 157 Separate account assets (5) 88,618 106,511 1,229 196,358 Total assets $ 129,042 $ 384,155 $ 19,196 $ 532,393 Liabilities Derivative liabilities: (3) Interest rate $ 3 $ 348 $ 243 $ 594 Foreign currency exchange rate 8 2,585 29 2,622 Credit — 43 — 43 Equity market 19 603 194 816 Total derivative liabilities 30 3,579 466 4,075 Embedded derivatives within liability host contracts (4) — — 485 485 Separate account liabilities (5) — 12 5 17 Total liabilities $ 30 $ 3,591 $ 956 $ 4,577 December 31, 2017 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 78,171 $ 4,490 $ 82,661 Foreign government — 61,325 209 61,534 Foreign corporate — 48,840 6,729 55,569 U.S. government and agency 26,052 21,342 — 47,394 RMBS — 25,339 3,461 28,800 State and political subdivision — 12,455 — 12,455 ABS — 11,204 1,087 12,291 CMBS — 7,934 293 8,227 Total fixed maturity securities 26,052 266,610 16,269 308,931 Equity securities 1,104 981 428 2,513 Unit-linked and FVO Securities (1) 14,028 2,355 362 16,745 Short-term investments (2) 3,001 1,252 33 4,286 Residential mortgage loans — FVO — — 520 520 Other investments 81 84 — 165 Derivative assets: (3) Interest rate 2 5,553 8 5,563 Foreign currency exchange rate 2 1,954 113 2,069 Credit — 240 38 278 Equity market 18 548 75 641 Total derivative assets 22 8,295 234 8,551 Embedded derivatives within asset host contracts (4) — — 144 144 Separate account assets (5) 89,916 114,124 961 205,001 Total assets $ 134,204 $ 393,701 $ 18,951 $ 546,856 Liabilities Derivative liabilities: (3) Interest rate $ 4 $ 638 $ 130 $ 772 Foreign currency exchange rate — 2,553 37 2,590 Credit — 43 — 43 Equity market 4 731 199 934 Total derivative liabilities 8 3,965 366 4,339 Embedded derivatives within liability host contracts (4) — — 418 418 Separate account liabilities (5) — 7 2 9 Total liabilities $ 8 $ 3,972 $ 786 $ 4,766 __________________ (1) Unit-linked and FVO Securities were comprised of over 85% Unit-linked investments at both March 31, 2018 and December 31, 2017. (2) 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. (3) Derivative assets are presented within other invested assets on the interim condensed consolidated balance sheets and derivative liabilities are presented within other liabilities on the interim condensed consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the interim condensed consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables. (4) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables and other invested assets on the interim condensed consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the interim condensed consolidated balance sheets. At March 31, 2018 and December 31, 2017 , debt and equity securities also included embedded derivatives of $0 and ($132) million , respectively. (5) 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. 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 (“CFO”), 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 2% of the total estimated fair value of Level 3 fixed maturity securities at March 31, 2018 . The Company also applies a formal process to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained, or an internally developed valuation is prepared. Internally developed valuations of current estimated fair value, which reflect internal estimates of liquidity and nonperformance risks, compared with pricing received from the independent pricing services, did not produce material differences in the estimated fair values for the majority of the portfolio; accordingly, overrides were not material. This is, in part, because internal estimates of liquidity and nonperformance risks are generally based on available market evidence and estimates used by other market participants. In the absence of such market-based evidence, management’s best estimate is used. Securities, Short-term Investments and Other Investments 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 Unit-linked and FVO Securities and other investments is determined on a basis consistent with the methodologies described herein for securities. Other Limited Partnership Interests The estimated fair values of other limited partnership interests are generally based on the Company’s share of the net asset value (“NAV”) of the other limited partnership interests as provided on the financial statements of the investee. In certain circumstances, management may adjust the NAV when it has sufficient evidence to support applying such adjustments. 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 Approaches: Principally the market and income approaches. Valuation Approaches: 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 Foreign government, U.S. government and agency and State and political subdivision securities Valuation Approaches: Principally the market approach. Valuation Approaches: 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 Approaches: Principally the market and income approaches. Valuation Approaches: 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 Approaches: Principally the market approach. Valuation Approaches: 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 Unit-linked and FVO Securities, Short-term investments, Other limited partnership interests and Other investments • Unit-linked and FVO Securities include mutual fund interests without readily determinable fair values given prices are not published publicly. Valuation of these mutual funds is based upon quoted prices or reported NAV provided by the fund managers, which were based on observable inputs. • Unit-linked and FVO Securities and short-term investments are of a similar nature and class to the fixed maturity and equity securities described above; accordingly, the valuation approaches 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 approaches and observable inputs used in their valuation are also similar to those described above. • Valuation approaches for other limited partnership interests are discussed below. Residential mortgage loans — FVO • N/A Valuation Approaches: Principally the market approach. Valuation Techniques and Key Inputs: These investments are based primarily on matrix pricing or other similar techniques that utilize inputs from mortgage servicers 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 • Valued giving consideration to the underlying holdings of the partnerships and adjusting, 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 and Other Investments,” “— Other Limited Partnership Interests” 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 Approaches 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 Approaches 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) • repurchase rates • cross currency basis curves (2) • credit spreads • correlation between model inputs (1) • 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 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 as 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 described in “— Investments — Securities, Short-term Investments and Other Investments.” 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 Approaches 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: There were no transfers between Levels 1 and 2 for assets and liabilities measured at estimated fair value and still held at March 31, 2018 and December 31, 2017 . Transfers into or out of Level 3: Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable. Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) The following table presents cert |
Junior Subordinated Debt Securi
Junior Subordinated Debt Securities | 3 Months Ended |
Mar. 31, 2018 | |
Junior Subordinated Notes [Abstract] | |
Junior Subordinated Debt Securities [Text Block] | 9. Junior Subordinated Debt Securities On February 10, 2017, MetLife, Inc. exchanged $750 million aggregate principal amount of its 9.250% Fixed-to-Floating Rate Junior Subordinated Debentures due 2068 for $750 million aggregate liquidation preference of the 9.250% Fixed-to-Floating Rate Exchangeable Surplus Trust Securities of MetLife Capital Trust X (the “Trust”). As a result of the exchange, MetLife, Inc. became the sole beneficial owner of the Trust, a special purpose entity which issued the exchangeable surplus trust securities to third-party investors. On March 23, 2017, MetLife, Inc. dissolved the Trust. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Equity | . Equity Preferred Stock In March 2018, MetLife, Inc. issued 500,000 shares of 5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D (the “Series D preferred stock”) with a $0.01 par value per share and a liquidation preference of $1,000 per share for aggregate net proceeds of $494 million . In connection with the offering of the Series D preferred stock, MetLife, Inc. incurred approximately $6 million of issuance costs which have been recorded as a reduction of additional paid-in capital. The Series D preferred stock ranks senior to MetLife, Inc.’s common stock with respect to the payment of dividends and distributions upon liquidation, dissolution or winding-up. Holders of the Series D preferred stock will be entitled to receive dividend payments only when, as and if declared by MetLife, Inc.’s Board of Directors or a duly authorized committee thereof. If dividends are declared on the Series D preferred stock for any dividend period, they will be calculated on a non-cumulative basis at a fixed rate per annum of 5.875% from the date of original issue to, but excluding, March 15, 2028 and at a floating rate per annum equal to three-month U.S. dollar LIBOR plus 2.959% on the related LIBOR determination date from and after March 15, 2028 . Dividends for any dividend period will be payable, if declared, semi-annually in arrears on the 15th day of March and September of each year commencing on September 15, 2018 and ending on March 15, 2028, and thereafter quarterly in arrears on the 15th day of June, September, December, and March of each year. Dividends on the Series D preferred stock will not be cumulative and will not be mandatory. Accordingly, if dividends are not declared on the Series D preferred stock for any dividend period, then any accrued dividends for that dividend period will cease to accrue and be payable. If a dividend is not declared before the dividend payment date for any dividend period, MetLife, Inc. will have no obligation to pay dividends accrued for such dividend period whether or not dividends on the Series D preferred stock are declared for any future dividend period. No dividends may be paid or declared on MetLife, Inc.’s common stock (or any other securities ranking junior to the Series D preferred stock) and MetLife, Inc. may not purchase, redeem, or otherwise acquire its common stock (or other such junior stock) unless the full dividends for the latest completed dividend period on all outstanding shares of Series D preferred stock, and any parity stock, have been declared and paid or provided for. Holders of the Series D preferred stock do not have voting rights except in certain circumstances, including where the dividends have not been paid for an equivalent of six or more dividend payment periods whether or not those periods are consecutive. Under such circumstances, the holders of the Series D preferred stock have certain voting rights with respect to members of the Board of Directors of MetLife, Inc. The Series D preferred stock is not subject to any mandatory redemption, sinking fund, retirement fund, purchase fund or similar provisions. MetLife, Inc. may, at its option, redeem the Series D preferred stock, (a) in whole but not in part, at any time prior to March 15, 2028, within 90 days after the occurrence of a “rating agency event,” at a redemption price equal to $1,020 per share of Series D preferred stock, plus an amount equal to any accrued and unpaid dividends per share that have accrued but not been declared and paid for the then-current dividend period to but excluding the redemption date and (b) (i) in whole but not in part, at any time prior to March, 15, 2028, within 90 days after the occurrence of a “regulatory capital event” or (ii) in whole or in part, from time to time, on or after March 15, 2028, in each case, at a redemption price equal to $1,000 per share of Series D preferred stock, plus an amount equal to any accrued and unpaid dividends per share that have accrued but not been declared and paid for the then-current dividend period to, but excluding, such redemption date. A “rating agency event” means that any nationally recognized statistical rating organization that then publishes a rating for MetLife, Inc. amends, clarifies or changes the criteria it uses to assign equity credit to securities like the Series D preferred stock, which results in the lowering of the equity credit assigned to the Series D preferred stock or shortens the length of time that the Series D preferred stock is assigned a particular level of equity credit. A “regulatory capital event” could occur as a result of a change or proposed change in capital adequacy rules (or the interpretation or application thereof) of any capital regulator, including but not limited to the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”), the Federal Insurance Office, the National Association of Insurance Commissioners or any state insurance regulator, as may then have group-wide oversight of MetLife, Inc.’s regulatory capital, from rules (or the interpretation or application thereof) in effect as of March 22, 2018, that would create a more than insubstantial risk, as determined by MetLife, Inc., that the Series D preferred stock would not be treated as “Tier 1 capital” or as capital with attributes similar to those of Tier 1 capital, except that a “regulatory capital event” will not include a change or proposed change (or the interpretation or application thereof) that would result in the adoption of any criterion substantially the same as the criteria in the capital adequacy rules of the Federal Reserve Board applicable to bank holding companies as of March 22, 2018. Preferred stock authorized, issued and outstanding was as follows: March 31, 2018 December 31, 2017 Series Shares Shares Shares Shares Authorized Shares Issued Shares Outstanding Floating Rate Non-Cumulative Preferred Stock, Series A 27,600,000 24,000,000 24,000,000 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 1,500,000 1,500,000 1,500,000 5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D 500,000 500,000 500,000 — — — Series A Junior Participating Preferred Stock 10,000,000 — — 10,000,000 — — Not designated 160,400,000 — — 160,900,000 — — Total 200,000,000 26,000,000 26,000,000 200,000,000 25,500,000 25,500,000 Common Stock During the three months ended March 31, 2018 and 2017 , MetLife, Inc. repurchased 21,405,327 shares and 16,038,791 shares of its common stock through open market purchases for $1.0 billion and $858 million , respectively. On November 1, 2017, MetLife, Inc. announced that its Board of Directors authorized $2.0 billion of common stock repurchases. At March 31, 2018 , MetLife, Inc. had $720 million remaining under this common stock repurchase authorization. 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. See Note 15 for information on subsequent common stock repurchases. Stock-Based Compensation Plans 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, 2015 – December 31, 2017 performance period was 46.3% , which was determined within a possible range from 0% to 175% . This factor has been applied to the 1,194,283 Performance Shares and 186,085 Performance Units associated with that performance period that vested on December 31, 2017 . As a result, in the first quarter of 2018 , MetLife, Inc. issued 552,953 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 86,157 Performance 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 $ 12,757 $ 905 $ (4,390 ) $ (1,845 ) $ 7,427 OCI before reclassifications (3,811 ) (352 ) 552 (4 ) (3,615 ) Deferred income tax benefit (expense) 835 58 3 1 897 AOCI before reclassifications, net of income tax 9,781 611 (3,835 ) (1,848 ) 4,709 Amounts reclassified from AOCI 45 (165 ) — 31 (89 ) Deferred income tax benefit (expense) (10 ) 27 — (7 ) 10 Amounts reclassified from AOCI, net of income tax 35 (138 ) — 24 (79 ) Cumulative effects of changes in accounting principles (425 ) — — — (425 ) Deferred income tax benefit (expense), cumulative effects of changes in accounting principles 1,473 210 36 (382 ) 1,337 Cumulative effects of changes in accounting principles, net of income tax (2) 1,048 210 36 (382 ) 912 Sale of subsidiary (3) — — 92 — 92 Balance, end of period $ 10,864 $ 683 $ (3,707 ) $ (2,206 ) $ 5,634 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 $ 10,785 $ 1,865 $ (5,312 ) $ (1,972 ) $ 5,366 OCI before reclassifications 703 210 348 (20 ) 1,241 Deferred income tax benefit (expense) (273 ) (73 ) 122 2 (222 ) AOCI before reclassifications, net of income tax 11,215 2,002 (4,842 ) (1,990 ) 6,385 Amounts reclassified from AOCI 196 (229 ) — 44 11 Deferred income tax benefit (expense) (75 ) 80 — (5 ) — Amounts reclassified from AOCI, net of income tax 121 (149 ) — 39 11 Balance, end of period $ 11,336 $ 1,853 $ (4,842 ) $ (1,951 ) $ 6,396 __________________ (1) See Note 6 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation. (2) See Note 1 for further information on adoption of new accounting pronouncements. (3) See Note 3 for further information on the 2018 disposition. Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Consolidated Statements of Operations and Comprehensive Income (Loss) Locations Three Months 2018 2017 (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ (101 ) $ 40 Net investment gains (losses) Net unrealized investment gains (losses) 3 6 Net investment income Net unrealized investment gains (losses) 53 (151 ) Net derivative gains (losses) Net unrealized investment gains (losses) — (91 ) Discontinued operations Net unrealized investment gains (losses), before income tax (45 ) (196 ) Income tax (expense) benefit 10 75 Net unrealized investment gains (losses), net of income tax (35 ) (121 ) Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate swaps 16 8 Net derivative gains (losses) Interest rate swaps 3 4 Net investment income Interest rate swaps — 1 Discontinued operations Interest rate forwards 5 (4 ) Net derivative gains (losses) Interest rate forwards 1 — Net investment income Interest rate forwards — 1 Discontinued operations Foreign currency swaps 139 208 Net derivative gains (losses) Foreign currency swaps 1 1 Other expenses Foreign currency swaps — 10 Discontinued operations Gains (losses) on cash flow hedges, before income tax 165 229 Income tax (expense) benefit (27 ) (80 ) Gains (losses) on cash flow hedges, net of income tax 138 149 Defined benefit plans adjustment: (1) Amortization of net actuarial gains (losses) (36 ) (49 ) Amortization of prior service (costs) credit 5 5 Amortization of defined benefit plan items, before income tax (31 ) (44 ) Income tax (expense) benefit 7 5 Amortization of defined benefit plan items, net of income tax (24 ) (39 ) Total reclassifications, net of income tax $ 79 $ (11 ) __________________ (1) These AOCI components are included in the computation of net periodic benefit costs. See Note 11 . |
Other Expenses
Other Expenses | 3 Months Ended |
Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other Expenses | 10. Other Expenses Information on other expenses was as follows: Three Months 2018 2017 (In millions) Employee related costs $ 937 $ 937 Third party staffing costs 380 362 General and administrative expenses 243 221 Pension, postretirement and postemployment benefit costs 49 79 Premium taxes, other taxes, and licenses & fees 179 175 Commissions and other variable expenses 1,416 1,304 Capitalization of DAC (796 ) (713 ) Amortization of DAC and VOBA 693 663 Amortization of negative VOBA (22 ) (43 ) Interest expense on debt 286 283 Total other expenses $ 3,365 $ 3,268 Certain prior year amounts have been reclassified to conform to the current year presentation, which has been revised to align the expense categories with the Company’s businesses. The reclassifications did not result in a change to total other expenses. See Note 3 for further information on Separation-related transaction costs. Restructuring Charges The Company commenced in 2016 a unit cost improvement program related to the Company’s refreshed enterprise strategy. This global strategy focuses on transforming the Company to become more digital, driving efficiencies and innovation to achieve competitive advantage, and simplified, decreasing the costs and risks associated with the Company’s highly complex industry to customers and shareholders. Restructuring charges related to this program are included in other expenses. As the expenses relate to an enterprise-wide initiative, they are reported in Corporate & Other. Such restructuring charges were as follows: Three Months 2018 2017 Severance (In millions) Balance, beginning of period $ 22 $ 35 Restructuring charges 9 11 Cash payments (12 ) (8 ) Balance, end of period $ 19 $ 38 Total restructuring charges incurred since inception of initiative $ 82 $ 46 Management anticipates further restructuring charges through the year ending December 31, 2019. However, such restructuring plans were not sufficiently developed to enable management to make an estimate of such restructuring charges at March 31, 2018 . |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 11. Employee Benefit Plans Pension and Other Postretirement Benefit Plans Certain subsidiaries of MetLife, Inc. sponsor and/or administer various U.S. qualified and nonqualified defined benefit pension plans and other postretirement employee benefit plans covering employees who meet specified eligibility requirements. These subsidiaries also provide certain postemployment benefits and certain postretirement medical and life insurance benefits for U.S. retired employees. The components of net periodic benefit costs, reported in other expenses, were as follows: Three Months 2018 2017 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits (In millions) Service costs $ 60 $ 1 $ 61 $ 1 Interest costs 96 11 106 19 Expected return on plan assets (133 ) (18 ) (130 ) (18 ) Amortization of net actuarial (gains) losses 44 (8 ) 49 — Amortization of prior service costs (credit) — (5 ) — (5 ) Net periodic benefit costs (credit) $ 67 $ (19 ) $ 86 $ (3 ) |
Income Tax
Income Tax | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 12. Income Tax On December 22, 2017, President Trump signed into law U.S. Tax Reform. U.S. Tax Reform includes numerous changes in tax law, including a permanent reduction in the U.S. federal corporate income tax rate from 35% to 21% , which took effect for taxable years beginning on or after January 1, 2018. U.S. Tax Reform moves the United States from a worldwide tax system to a participation exemption system by providing corporations a 100% dividends received deduction for dividends distributed by a controlled foreign corporation. To transition to that new system, U.S. Tax Reform imposed a one-time deemed repatriation tax on unremitted earnings and profits at a rate of 8.0% for illiquid assets and 15.5% for cash and cash equivalents. In accordance with Staff Accounting Bulletin 118 issued by the U.S. Securities and Exchange Commission (“SEC”) in December 2017, the Company recorded provisional amounts for certain items for which the income tax accounting is not complete. For these items, the Company recorded a reasonable estimate of the tax effects of U.S. Tax Reform. The estimates will be reported as provisional amounts during a measurement period, which will not exceed one year from the date of enactment of U.S. Tax Reform. The Company may reflect adjustments to its provisional amounts upon obtaining, preparing, or analyzing additional information about facts and circumstances that existed as of the enactment date that, if known, would have affected the income tax effects initially reported as provisional amounts. See Note 18 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for further information. As of March 31, 2018, no updates were made to the provisional amounts. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 13. Earnings Per Common Share The following table presents the weighted average shares, basic earnings per common share and diluted earnings per common share for each income category presented: Three Months 2018 2017 (In millions, except per share data) Weighted Average Shares: Weighted average common stock outstanding for basic earnings per common share 1,035.9 1,090.4 Incremental common shares from assumed exercise or issuance of stock-based awards 8.5 8.3 Weighted average common stock outstanding for diluted earnings per common share 1,044.4 1,098.7 Income (Loss) from Continuing Operations: Income (loss) from continuing operations, net of income tax $ 1,257 $ 952 Less: Income (loss) from continuing operations, net of income tax, attributable to noncontrolling interests 4 3 Less: Preferred stock dividends 6 6 Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders $ 1,247 $ 943 Basic $ 1.20 $ 0.87 Diluted $ 1.19 $ 0.86 Income (Loss) from Discontinued Operations: Income (loss) from discontinued operations, net of income tax $ — $ (76 ) Less: Income (loss) from discontinued operations, net of income tax, attributable to noncontrolling interests — — Income (loss) from discontinued operations, net of income tax, available to MetLife, Inc.’s common shareholders $ — $ (76 ) Basic $ — $ (0.07 ) Diluted $ — $ (0.07 ) Net Income (Loss): Net income (loss) $ 1,257 $ 876 Less: Net income (loss) attributable to noncontrolling interests 4 3 Less: Preferred stock dividends 6 6 Net income (loss) available to MetLife, Inc.’s common shareholders $ 1,247 $ 867 Basic $ 1.20 $ 0.80 Diluted $ 1.19 $ 0.79 |
Contingencies, Commitments and
Contingencies, Commitments and Guarantees | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies, Commitments and Guarantees | 14. 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, at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will 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 March 31, 2018 . 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, the Company has not made an accrual. As of March 31, 2018 , the Company estimates the aggregate range of reasonably possible losses in excess of amounts accrued for these matters to be $0 to $700 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 2017 Annual Report, MLIC received approximately 3,514 asbestos-related claims in 2017 . During the three months ended March 31, 2018 and 2017 , MLIC received approximately 823 and 1,104 new asbestos-related claims, respectively. See Note 20 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for historical information concerning asbestos claims and MLIC’s increase in its recorded liability at December 31, 2017. 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 March 31, 2018 . 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 jurisdictions 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. In the Matter of Chemform, Inc. Site, Pompano Beach, Broward County, Florida In July 2010, the Environmental Protection Agency (“EPA”) advised MLIC that it believed payments were due under two settlement agreements, known as “Administrative Orders on Consent,” that New England Mutual Life Insurance Company (“New England Mutual”) signed in 1989 and 1992 with respect to the cleanup of a Superfund site in Florida (the “Chemform Site”). The EPA originally contacted MLIC (as successor to New England Mutual) and a third party in 2001, and advised that they owed additional clean-up costs for the Chemform Site. The matter was not resolved at that time. In September 2012, the EPA, MLIC and the third party executed an Administrative Order on Consent under which MLIC and the third party agreed to be responsible for certain environmental testing at the Chemform Site. The EPA may seek additional costs if the environmental testing identifies issues. The EPA and MLIC have reached a settlement in principal on the EPA’s claim for past costs. The Company estimates that the aggregate cost to resolve this matter, including the settlement for claims of past costs and the costs of environmental testing, will not exceed $300 thousand . 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 and General American Life Insurance Company, as well as former subsidiaries of the Company that are part of Brighthouse as a result of the Separation, and a former broker-dealer subsidiary. These investigations often focus on the conduct of particular financial services representatives and the sale of unregistered or unsuitable products or the misuse of client assets. Over the past several years, these and a number of investigations by other regulatory authorities were resolved for monetary payments and certain other relief, including restitution payments. The Company may continue to resolve investigations in a similar manner. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for these sales practices-related investigations or inquiries. Unclaimed Property Litigation 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 alleges that MetLife, Inc. and several current and former directors and executive officers of MetLife, Inc. violated the Securities Act of 1933, as well as the Securities Exchange Act of 1934 (“Exchange Act”) 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. On September 22, 2017, the Court granted plaintiff’s motion to certify its proposed class of persons who purchased or acquired MetLife, Inc. common stock in the Company’s August 3, 2010 offering or the Company’s March 4, 2011 offering. The defendants intend to defend this action vigorously. Total Asset Recovery Services, LLC. v. MetLife, Inc., et al. (Supreme Court of the State of New York, County of New York, filed November 17, 2017) Alleging that MetLife, Inc., MLIC, and several other insurance companies violated the New York False Claims Act (the “Act”) by filing false unclaimed property reports from 1986 to 2017 with New York to avoid having to escheat the proceeds of more than 25,000 life insurance policies, including policies for which the defendants escheated funds as part of their demutualizations in the late 1990s, Total Asset Recovery Services (“The Relator”) has brought an action under the qui tam provision of the Act on behalf of itself and New York. The Relator originally filed this action under seal in 2010, and the complaint was unsealed on December 19, 2017. The Relator seeks treble damages and other relief. The Company intends to defend this action vigorously. Total Control Accounts Litigation MLIC is a defendant in a lawsuit related to its use of retained asset accounts, known as Total Control Accounts (“TCA”), as a settlement option for death benefits. Owens v. Metropolitan Life Insurance Company (N.D. Ga., filed April 17, 2014) Plaintiff filed this class action lawsuit on behalf of all persons for whom MLIC established 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 class. In addition, plaintiff, on behalf of a subgroup of the class, seeks interest under Georgia’s delayed settlement interest statute, alleging that the use of the TCA as the settlement option did not constitute payment. On September 27, 2016, the court denied MLIC’s summary judgment motion in full and granted plaintiff’s partial summary judgment motion. On September 29, 2017, the court certified a nationwide class. The court also certified a Georgia subclass. The Company intends to defend this action vigorously. Diversified Lending Group Litigation Hartshorne v. MetLife, Inc., et al. (Los Angeles County Superior Court, filed March 25, 2015) Plaintiffs named MetLife, Inc., MetLife Securities, Inc., and New England Life Insurance Company in 12 related lawsuits in California state court alleging various causes of action including multiple negligence and statutory claims relating to a Ponzi scheme involving the Diversified Lending Group. The Company settled with the last remaining plaintiff on or about May 2, 2018. Inquiries into Pension Benefits and Assumed Variable Annuity Guarantee Reserves and Related Litigation The Company informed its primary state regulator, the New York Department of Financial Services (“NYDFS”), about its practices in connection with the payment of certain pension benefits to annuitants and related matters. The NYDFS is examining the issue. The Division of Enforcement of the SEC is also investigating this matter and several additional regulators, including, but not limited to, the Massachusetts Securities Division, have made inquiries into these practices, including as to related disclosures. It is possible that other jurisdictions may pursue similar investigations or inquiries. On January 29, 2018, the Company announced that in connection with a review of practices and procedures used to estimate reserves related to certain Retirement Income Solutions (“RIS”) group annuitants who have been unresponsive or missing over time, the Company had identified a material weakness in its internal control over financial reporting related to certain RIS group annuity reserves. In conjunction with the material weakness, the Company increased reserves by $510 million pre-tax to reinstate reserves previously released, and to reflect accrued interest and other related liabilities. See Note 1 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report. The Company informed the SEC that as a result of its review of the calculation of reserves associated with certain variable annuity guarantees assumed from the former operating joint venture in Japan, the Company had identified a material weakness in its internal control over financial reporting related to these reserves. In conjunction with the material weakness, the Company decreased these reserves by $896 million pre-tax at December 31, 2017. See Note 1 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report. The Division of Enforcement of the SEC is investigating this matter and the Company has informed other regulators. It is possible that other regulators may pursue similar investigations or inquiries. The Company is exposed to lawsuits and regulatory investigations, and could be exposed to additional legal actions relating to these matters. These may result in payments, including damages, fines, penalties, interest and other amounts assessed or awarded by courts or regulatory authorities under applicable escheat, tax, securities, ERISA, or other laws or regulations. The Company could incur significant costs in connection with these actions. The Company’s increase in reserves does not reflect, and the Company has not recorded an accrual for, any such potential amounts. An estimate of the possible loss or range of loss cannot be made at this time. Parchmann v. MetLife, Inc., et. al. (E.D.N.Y., filed February 5, 2018) Seeking to represent a class of persons who purchased MetLife, Inc. common stock from February 27, 2013 through January 29, 2018, the plaintiff alleges that MetLife, Inc., its Chief Executive Officer and Chairman of the Board, and its CFO violated Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder by issuing materially false and/or misleading statements because the defendants failed to disclose that MetLife’s practices and procedures used to estimate its reserves set aside for annuity and pension payments were inadequate, and that MetLife had inadequate internal control over financial reporting. The plaintiff seeks unspecified compensatory damages and other relief. The defendants intend to defend this action vigorously. Demands By letter dated March 28, 2018 to the MetLife, Inc. Board of Directors, a shareholder, Rosemarie R. Zavolta, has demanded that MetLife, Inc. take action against current and former Board members and executive officers for alleged breaches of fiduciary duty with respect to (i) the Company’s allegedly inadequate practices and procedures used to estimate the Company’s reserves for annuity and pension payments, (ii) the alleged lack of adequate internal controls over financial reporting, and (iii) the alleged dissemination of false, misleading and/or incomplete information related to these issues. Zavolta has demanded that the Board: (i) undertake or cause to be undertaken an independent internal investigation into management’s violations of New York law, Delaware law, and/or federal law; and (ii) if warranted commence a civil action against each member of management to recover for the benefit of the Company the amount of damages sustained by the Company as a result of their breaches of fiduciary duties alleged. The MetLife, Inc. Board of Directors has appointed a special committee to investigate these allegations. Other Litigation 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. 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 appealed this ruling to the United States Court of Appeals for the Ninth Circuit. The Company intends to defend this action vigorously. 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 parties settled on January 2, 2018 and the court has dismissed the action. 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 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. On April 12, 2017, the court granted MLIC’s motion, dismissing the action with prejudice. Plaintiff appealed this ruling to the United States Court of Appeals for the Seventh Circuit (the “Seventh Circuit”) and on February 6, 2018, the Seventh Circuit reversed and remanded for further proceedings, ruling that Plaintiff is entitled to relief on her contract claim. Following MLIC’s petition for rehearing, the Seventh Circuit issued an amended opinion on March 22, 2018, holding that plaintiff’s claim survived MLIC’s motion to dismiss but finding that the policy is ambiguous as to MLIC’s right to raise plaintiff’s premiums. The Seventh Circuit held that on remand to the district court, the parties may introduce evidence to try to resolve this ambiguity. Miller, et al. v. MetLife, Inc., et al. (C.D. Cal., filed April 7, 2017) Plaintiffs filed this putative class action against MetLife, Inc. and MLIC in the U.S. District Court for the Central District of California, purporting to assert claims on behalf of all persons who replaced their MetLife Optional Term Life or Group Universal Life policy with a Group Variable Universal Life policy wherein MetLife allegedly charged smoker rates for certain non-smokers. Plaintiffs seek unspecified compensatory and punitive damages, as well as other relief. On September 25, 2017, plaintiffs dismissed the action and refiled the complaint in U.S. District Court for the Southern District of New York. On November 9, 2017, plaintiffs dismissed MetLife, Inc. without prejudice from the action. MLIC intends to defend this action vigorously. Julian & McKinney v. Metropolitan Life Insurance Company (S.D.N.Y., filed February 9, 2017) Plaintiffs filed this putative class and collective action on behalf of themselves and all current and former long-term disability (“LTD”) claims specialists between February 2011 and the present for alleged wage and hour violations under the Fair Labor Standards Act, the New York Labor Law, and the Connecticut Minimum Wage Act. The suit alleges that MetLife improperly reclassified the plaintiffs and similarly situated LTD claims specialists from non-exempt to exempt from overtime pay in November 2013. As a result, they and members of the putative class were no longer eligible for overtime pay even though they allege they continued to work more than 40 hours per week. On March 22, 2018, the Court conditionally certified the case as a collective action, requiring that notice be mailed to LTD claims specialists who worked for the Company from February 8, 2014 to the present. 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 $3.7 billion and $3.4 billion at March 31, 2018 and December 31, 2017 , respectively. Commi |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | 15. Subsequent Events Common Stock Repurchases In the second quarter of 2018 through April 30, 2018 , MetLife, Inc. repurchased 7,630,398 shares of its common stock in the open market for $350 million . Common Stock Dividend On April 24, 2018, the MetLife, Inc. Board of Directors declared a second quarter 2018 common stock dividend of $0.42 per share payable on June 13, 2018 to shareholders of record as of May 7, 2018. The Company estimates that the aggregate dividend payment will be $428 million . |
Business, Basis of Presentati23
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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 these estimates. |
Consolidation of Subsidiaries | 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. 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. 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. Subsequent to the adoption of guidance relating to the recognition and measurement of financial instruments on January 1, 2018, the Company accounts for interests in unconsolidated entities that are not accounted for under the equity method, at estimated fair value. Such investments were previously accounted for under the cost method of accounting. See “— Adoption of New Accounting Pronouncements.” 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, 2017 consolidated balance sheet data was derived from audited consolidated financial statements included in the 2017 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 2017 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. |
Discontinued Operations | Discontinued Operations The results of operations of a component of the Company that has either been disposed of or is classified as held-for-sale are reported in discontinued operations if certain criteria are met. A disposal of a component is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results. On August 4, 2017, MetLife, Inc. completed the separation of Brighthouse Financial, Inc. and its subsidiaries (“Brighthouse”) through a distribution of 96,776,670 shares of Brighthouse Financial, Inc. common stock to the MetLife, Inc. common shareholders (the “Separation”). The results of Brighthouse are reflected in MetLife, Inc.’s interim condensed consolidated financial statements as discontinued operations and, therefore, are presented as income (loss) from discontinued operations on the consolidated statements of operations and comprehensive income (loss). Prior period results have been revised to reflect discontinued operations. Intercompany transactions between the Company and Brighthouse prior to the Separation have been eliminated. Transactions between the Company and Brighthouse after the Separation are reflected in continuing operations for the Company. See Note 3 for information on discontinued operations and transactions with Brighthouse. |
Investments | Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity. Maturities of Fixed Maturity Securities The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days. Past Due and Nonaccrual Mortgage Loans Variable Interest Entities The Company has invested in 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, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. |
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 derivative’s 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 • Derivatives held within 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). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. Derivative Strategies 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 markets. 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 U.S. qualified and nonqualified defined benefit pension plans and other postretirement employee benefit plans covering employees who meet specified eligibility requirements. These subsidiaries also provide certain postemployment benefits and certain postretirement medical and life insurance benefits for U.S. 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. |
New Accounting Pronouncements | Adoption of New Accounting Pronouncements Effective January 1, 2018, the Company early adopted guidance relating to income taxes. The new guidance was applied in the period of adoption. Current GAAP guidance requires that the effect of a change in tax laws or rates on deferred tax liabilities or assets to be included in income from continuing operations in the reporting period that includes the enactment date, even if the related income tax effects were originally charged or credited directly to accumulated other comprehensive income (“AOCI”). The Company’s accounting policy for the release of stranded tax effects in AOCI is on an aggregate portfolio basis. The new guidance allows a reclassification of AOCI to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (“U.S. Tax Reform”). Due to U.S. Tax Reform and the change in corporate tax rates, at December 22, 2017, the Company reported stranded tax effects in AOCI related to unrealized gains and losses on available-for-sale (“AFS”) securities, cumulative foreign translation adjustments and deferred costs on pension benefit plans. With the adoption of the guidance, the Company released these stranded tax effects in AOCI resulting in a decrease to retained earnings as of January 1, 2018 of $1.2 billion with a corresponding increase to AOCI. Effective January 1, 2018, the Company prospectively adopted guidance relating to stock compensation. The new guidance includes guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Accounting Standards Codification (“ASC”) Topic 718, Compensation - Stock Compensation . The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018 the Company retrospectively adopted guidance on the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires that an employer that offers to its employees defined benefit pension or other postretirement benefit plans report the service cost component in the same line item or items as other compensation costs. The other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item is not used, the line item used in the income statement to present the other components of net periodic benefit cost must be disclosed. In addition, the guidance allows only the service cost component to be eligible for capitalization when applicable. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to de-recognition of nonfinancial assets. The new guidance clarifies the scope and accounting of a financial asset that meets the definition of an “in-substance nonfinancial asset” and defines the term, “in-substance nonfinancial asset.” The new guidance also adds guidance for partial sales of nonfinancial assets. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company retrospectively adopted guidance relating to restricted cash. The new guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As a result, the new guidance requires that amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance does not provide a definition of restricted cash or restricted cash equivalents. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to tax accounting for intra-entity transfers of assets. Prior guidance prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. The new guidance requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company retrospectively adopted guidance relating to cash flow statement presentation. The new guidance addresses diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to recognition and measurement of financial instruments. The 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. Effective January 1, 2018, there will no longer be a requirement to assess equity securities for impairment since such securities will be measured at fair value through net income. Additionally, there will no longer be a requirement to assess equity securities for embedded derivatives requiring bifurcation. The adoption of this guidance resulted in a $328 million , net of income tax, increase to retained earnings largely offset by a decrease to AOCI that was primarily attributable to $1.7 billion of equity securities previously classified and measured as equity securities AFS. At December 31, 2017, equity securities of $16.0 billion primarily associated with contractholder-directed investments are accounted for using the FVO and therefore were unaffected by the new guidance. The Company has included the required disclosures related to equity securities held at March 31, 2018 within Note 6 . Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to revenue recognition. The new guidance supersedes nearly all existing revenue recognition guidance under U.S. GAAP. However, it does not impact the accounting for insurance and investment contracts within the scope of ASC Topic 944, Financial Services - Insurance , leases, financial instruments and certain guarantees. For those contracts that are impacted, the new guidance requires 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 adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. For the three months ended March 31, 2018, the Company identified $322 million of revenue streams within the scope of the guidance that are all included within other revenues on the interim condensed consolidated statements of operations and comprehensive income (loss). Such amount primarily consists of prepaid legal plans and administrative-only contracts within the U.S. segment of $129 million , distribution and administrative services fees within the MetLife Holdings segment of $58 million and fee-based investment management services within Corporate & Other of $71 million . |
Other Revenues | Substantially all of the revenue from these services is recognized over time as the applicable services are provided or are made available to the customers and control is transferred continuously. The consideration received for these services is variable and constrained to the amount not probable of a significant revenue reversal. |
Business, Basis of Presentati24
Business, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Prior Period Adjustments [Table Text Block] | A summary of the revisions to prior period net income (loss) available to MetLife, Inc.’s common shareholders is shown in the table below: Three Months 2017 (In millions) Assumed variable annuity guarantee reserves $ 14 Group annuity reserves (9 ) Other revisions to continuing operations, net 63 Impact to income (loss) from continuing operations before provision for income tax 68 Provision for income tax expense (benefit) 24 Impact to income (loss) from continuing operations, net of income tax 44 Other revisions to discontinued operations, net of income tax 3 Impact to net income (loss) available to MetLife, Inc.’s common shareholders $ 47 The impact of the revisions is shown in the tables below: Three Months 2017 Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) As Discontinued Operations (1) Revisions As (In millions, except per share data) Revenues Other net investment gains (losses) $ 8 $ 55 $ 25 $ 88 Net investment gains (losses) $ 8 $ 55 $ 25 $ 88 Net derivatives gains (losses) $ (926 ) $ 700 $ 14 $ (212 ) Total revenues $ 16,269 $ (1,344 ) $ 39 $ 14,964 Expenses Policyholder benefits and claims $ 9,859 $ (1,002 ) $ 6 $ 8,863 Other expenses $ 3,564 $ (261 ) $ (35 ) $ 3,268 Total expenses $ 15,452 $ (1,531 ) $ (29 ) $ 13,892 Income (loss) from continuing operations before provision for income tax $ 817 $ 187 $ 68 $ 1,072 Provision for income tax expense (benefit) $ (12 ) $ 108 $ 24 $ 120 Income (loss) from continuing operations, net of income tax $ 829 $ 79 $ 44 $ 952 Income (loss) from discontinued operations, net of income tax $ — $ (79 ) $ 3 $ (76 ) Net income (loss) $ 829 $ — $ 47 $ 876 Net income (loss) attributable to MetLife, Inc. $ 826 $ — $ 47 $ 873 Net income (loss) available to MetLife, Inc.’s common shareholders $ 820 $ — $ 47 $ 867 Comprehensive income (loss) $ 1,879 $ — $ 28 $ 1,907 Comprehensive income (loss) attributable to MetLife, Inc. $ 1,875 $ — $ 28 $ 1,903 Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders: Basic $ 0.75 $ 0.07 $ 0.05 $ 0.87 Diluted $ 0.75 $ 0.07 $ 0.04 $ 0.86 Net income (loss) available to MetLife, Inc.’s common shareholders per common share: Basic $ 0.75 $ — $ 0.05 $ 0.80 Diluted $ 0.75 $ — $ 0.04 $ 0.79 __________________ (1) See Note 3 for additional information on discontinued operations. Revisions include $5 million and $2 million of net investment gains (losses) and provision for income tax expense (benefit), respectively, related to discontinued operations. Interim Condensed Consolidated Statements of Equity As Revisions As Revised (In millions) Retained Earnings Balance at December 31, 2016 $ 34,480 $ 203 $ 34,683 Net income (loss) $ 826 $ 47 $ 873 Balance at March 31, 2017 $ 34,863 $ 250 $ 35,113 Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2016 $ 5,347 $ 19 $ 5,366 Other comprehensive income (loss), net of income tax $ 1,049 $ (19 ) $ 1,030 Balance at March 31, 2017 $ 6,396 $ — $ 6,396 Total MetLife, Inc.’s Stockholders’ Equity Balance at December 31, 2016 $ 67,309 $ 222 $ 67,531 Balance at March 31, 2017 $ 67,929 $ 250 $ 68,179 Total Equity Balance at December 31, 2016 $ 67,480 $ 222 $ 67,702 Balance at March 31, 2017 $ 68,108 $ 250 $ 68,358 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | Three Months Ended March 31, 2018 U.S. Asia Latin EMEA MetLife Holdings Corporate & Other Total Adjustments Total (In millions) Revenues Premiums $ 5,217 $ 1,748 $ 699 $ 551 $ 950 $ 13 $ 9,178 $ — $ 9,178 Universal life and investment-type product policy fees 258 394 282 112 314 — 1,360 32 1,392 Net investment income 1,662 795 276 75 1,352 59 4,219 (474 ) 3,745 Other revenues 204 15 8 16 67 81 391 83 474 Net investment gains (losses) — — — — — — — (333 ) (333 ) Net derivative gains (losses) — — — — — — — 349 349 Total revenues 7,341 2,952 1,265 754 2,683 153 15,148 (343 ) 14,805 Expenses Policyholder benefits and claims and policyholder dividends 5,138 1,343 646 294 1,550 (3 ) 8,968 47 9,015 Interest credited to policyholder account balances 407 351 98 25 236 — 1,117 (348 ) 769 Capitalization of DAC (106 ) (465 ) (94 ) (118 ) (10 ) (2 ) (795 ) (1 ) (796 ) Amortization of DAC and VOBA 115 314 60 106 100 2 697 (4 ) 693 Amortization of negative VOBA — (15 ) — (6 ) — — (21 ) (1 ) (22 ) Interest expense on debt 2 — 2 — 2 280 286 — 286 Other expenses 961 952 338 351 276 232 3,110 94 3,204 Total expenses 6,517 2,480 1,050 652 2,154 509 13,362 (213 ) 13,149 Provision for income tax expense (benefit) 171 145 75 21 104 (159 ) 357 42 399 Adjusted earnings $ 653 $ 327 $ 140 $ 81 $ 425 $ (197 ) 1,429 Adjustments to: Total revenues (343 ) Total expenses 213 Provision for income tax (expense) benefit (42 ) Income (loss) from continuing operations, net of income tax $ 1,257 $ 1,257 Three Months Ended March 31, 2017 U.S. Asia Latin America EMEA MetLife Holdings Corporate & Other Total Adjustments Total (In millions) Revenues Premiums $ 5,185 $ 1,708 $ 647 $ 502 $ 1,059 $ 38 $ 9,139 $ (174 ) $ 8,965 Universal life and investment-type product policy fees 265 366 260 95 362 — 1,348 12 1,360 Net investment income 1,612 702 303 74 1,441 40 4,172 249 4,421 Other revenues 204 10 9 17 96 59 395 (53 ) 342 Net investment gains (losses) — — — — — — — 88 88 Net derivative gains (losses) — — — — — — — (212 ) (212 ) Total revenues 7,266 2,786 1,219 688 2,958 137 15,054 (90 ) 14,964 Expenses Policyholder benefits and claims and policyholder dividends 5,244 1,315 633 269 1,733 25 9,219 (46 ) 9,173 Interest credited to policyholder account balances 351 321 82 24 257 1 1,036 415 1,451 Capitalization of DAC (100 ) (420 ) (82 ) (92 ) (34 ) (1 ) (729 ) 16 (713 ) Amortization of DAC and VOBA 114 291 78 87 74 1 645 18 663 Amortization of negative VOBA — (37 ) — (3 ) — — (40 ) (3 ) (43 ) Interest expense on debt 2 — 1 — 15 277 295 (12 ) 283 Other expenses 909 875 326 316 340 175 2,941 137 3,078 Total expenses 6,520 2,345 1,038 601 2,385 478 13,367 525 13,892 Provision for income tax expense (benefit) 249 146 38 12 186 (271 ) 360 (240 ) 120 Adjusted earnings $ 497 $ 295 $ 143 $ 75 $ 387 $ (70 ) 1,327 Adjustments to: Total revenues (90 ) Total expenses (525 ) Provision for income tax (expense) benefit 240 Income (loss) from continuing operations, net of income tax $ 952 $ 952 The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at: March 31, 2018 December 31, 2017 (In millions) U.S. $ 251,496 $ 255,428 Asia 143,458 136,928 Latin America 78,638 79,670 EMEA 30,546 30,500 MetLife Holdings 175,817 183,160 Corporate & Other 32,629 34,206 Total $ 712,584 $ 719,892 |
Dispositions (Tables)
Dispositions (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Effects of Reinsurance [Table Text Block] | Information regarding the significant effects of reinsurance transactions with Brighthouse was as follows: Included on Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) Excluded from Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) Three Months 2018 2017 (In millions) Premiums Reinsurance assumed $ 96 $ 97 Reinsurance ceded (3 ) (3 ) Net premiums $ 93 $ 94 Universal life and investment-type product policy fees Reinsurance assumed $ 1 $ (4 ) Reinsurance ceded (24 ) (24 ) Net universal life and investment-type product policy fees $ (23 ) $ (28 ) Policyholder benefits and claims Reinsurance assumed $ 78 $ 75 Reinsurance ceded (10 ) (6 ) Net policyholder benefits and claims $ 68 $ 69 Interest credited to policyholder account balances Reinsurance assumed $ 4 $ 4 Reinsurance ceded (18 ) (18 ) Net interest credited to policyholder account balances $ (14 ) $ (14 ) Other expenses Reinsurance assumed $ 34 $ (30 ) Reinsurance ceded (14 ) (21 ) Net other expenses $ 20 $ (51 ) Information regarding the significant effects of reinsurance transactions with Brighthouse included on the interim condensed consolidated balance sheets was as follows at: March 31, 2018 December 31, 2017 Assumed Ceded Assumed Ceded (In millions) Assets Premiums, reinsurance and other receivables $ 154 $ 1,802 $ 167 $ 1,793 Deferred policy acquisition costs and value of business acquired 390 (40 ) 384 (40 ) Total assets $ 544 $ 1,762 $ 551 $ 1,753 Liabilities Future policy benefits $ 1,788 $ — $ 1,734 $ — Other policy-related balances 116 25 119 28 Other liabilities 1,447 25 1,458 19 Total liabilities $ 3,351 $ 50 $ 3,311 $ 47 |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Three Months Ended March 31, 2017 (In millions) Revenues Premiums $ 350 Universal life and investment-type product policy fees 942 Net investment income 775 Other revenues 32 Total net investment gains (losses) (50 ) Net derivative gains (losses) (700 ) Total revenues 1,349 Expenses Policyholder benefits and claims 1,002 Interest credited to policyholder account balances 261 Policyholder dividends 7 Goodwill impairment — Other expenses 261 Total expenses 1,531 Income (loss) from discontinued operations before provision for income tax (182 ) Provision for income tax expense (benefit) (106 ) Income (loss) from discontinued operations, net of income tax $ (76 ) In the interim condensed consolidated statements of cash flows, the cash flows from discontinued operations are not separately classified. The following table presents selected financial information regarding cash flows of the discontinued operations. Three Months Ended 2017 (In millions) Net cash provided by (used in): Operating activities $ 302 Investing activities $ 16 Financing activities $ 266 |
Insurance (Tables)
Insurance (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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: March 31, 2018 December 31, 2017 In the At In the At (Dollars in millions) Annuity Contracts: Variable Annuity Guarantees: Total account value (1), (2), (3) $ 64,728 $ 25,169 $ 66,724 $ 26,223 Separate account value (1) $ 43,714 $ 23,302 $ 45,431 $ 24,336 Net amount at risk (2) $ 1,587 (4 ) $ 510 (5 ) $ 1,238 (4 ) $ 525 (5 ) Average attained age of contractholders 66 years 66 years 65 years 65 years Other Annuity Guarantees: Total account value (1), (3) N/A $ 1,437 N/A $ 1,424 Net amount at risk N/A $ 559 (6 ) N/A $ 569 (6 ) Average attained age of contractholders N/A 50 years N/A 50 years March 31, 2018 December 31, 2017 Secondary Paid-Up Secondary Paid-Up (Dollars in millions) Universal and Variable Life Contracts: Total account value (1), (3) $ 9,089 $ 3,171 $ 9,036 $ 3,207 Net amount at risk (7) $ 66,762 $ 16,332 $ 66,956 $ 16,615 Average attained age of policyholders 57 years 63 years 56 years 63 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 interim condensed consolidated balance sheets, from assumed variable annuity guarantees 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. |
Liabilities for Unpaid Claims and Claim Expenses | Rollforward of Claims and Claim Adjustment Expenses Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows: Three Months 2018 2017 (1) (In millions) Balance, beginning of period $ 17,094 $ 16,157 Less: Reinsurance recoverables 2,198 1,968 Net balance, beginning of period 14,896 14,189 Incurred related to: Current period 6,504 6,637 Prior periods (2) (148 ) (127 ) Total incurred 6,356 6,510 Paid related to: Current period (3,339 ) (3,723 ) Prior periods (2,719 ) (2,604 ) Total paid (6,058 ) (6,327 ) Net balance, end of period 15,194 14,372 Add: Reinsurance recoverables 2,237 2,123 Balance, end of period (included in future policy benefits and other policy-related balances) $ 17,431 $ 16,495 __________________ (1) As discussed in Note 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report, at December 31, 2016, the Net balance decreased and the Reinsurance recoverables increased from those amounts previously reported. Additionally, at March 31, 2017, the Net balance decreased by $131 million and the Reinsurance recoverables increased by $144 million from those amounts previously reported in MetLife, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017. These adjustments to the Net balance and the Reinsurance recoverables, at both periods, are primarily to correct for improper classification of reinsurance recoverables. (2) During both the three months ended March 31, 2018 and 2017 , as a result of changes in estimates of insured events in the respective prior periods, the claims and claim adjustment expenses associated with prior periods decreased due to favorable claims experience. |
Closed Block (Tables)
Closed Block (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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: March 31, 2018 December 31, 2017 (In millions) Closed Block Liabilities Future policy benefits $ 40,285 $ 40,463 Other policy-related balances 213 222 Policyholder dividends payable 462 437 Policyholder dividend obligation 1,277 2,121 Other liabilities 285 212 Total closed block liabilities 42,522 43,455 Assets Designated to the Closed Block Investments: Fixed maturity securities available-for-sale, at estimated fair value 26,815 27,904 Equity securities, at estimated fair value 68 70 Mortgage loans 6,040 5,878 Policy loans 4,532 4,548 Real estate and real estate joint ventures 595 613 Other invested assets 607 731 Total investments 38,657 39,744 Accrued investment income 475 477 Premiums, reinsurance and other receivables; cash and cash equivalents 208 14 Current income tax recoverable 40 35 Deferred income tax assets 23 36 Total assets designated to the closed block 39,403 40,306 Excess of closed block liabilities over assets designated to the closed block 3,119 3,149 Amounts included in AOCI: Unrealized investment gains (losses), net of income tax 1,711 1,863 Unrealized gains (losses) on derivatives, net of income tax (57 ) (7 ) Allocated to policyholder dividend obligation, net of income tax (1,009 ) (1,379 ) Total amounts included in AOCI 645 477 Maximum future earnings to be recognized from closed block assets and liabilities $ 3,764 $ 3,626 |
Closed block policyholder dividend obligation | Information regarding the closed block policyholder dividend obligation was as follows: Three Months Year (In millions) Balance, beginning of period $ 2,121 $ 1,931 Change in unrealized investment and derivative gains (losses) (844 ) 190 Balance, end of period $ 1,277 $ 2,121 |
Closed block revenues and expenses | Information regarding the closed block revenues and expenses was as follows: Three Months 2018 2017 (In millions) Revenues Premiums $ 387 $ 402 Net investment income 444 466 Net investment gains (losses) (29 ) (8 ) Net derivative gains (losses) (3 ) (8 ) Total revenues 799 852 Expenses Policyholder benefits and claims 571 568 Policyholder dividends 244 250 Other expenses 29 32 Total expenses 844 850 Revenues, net of expenses before provision for income tax expense (benefit) (45 ) 2 Provision for income tax expense (benefit) (10 ) — Revenues, net of expenses and provision for income tax expense (benefit) $ (35 ) $ 2 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Fixed Maturity and Equity Securities Available-for-Sale | The following table presents the fixed maturity securities AFS by sector. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities. Included within fixed maturity securities AFS are structured securities including residential mortgage-backed securities (“RMBS”), asset-backed securities (“ABS”) and commercial mortgage-backed securities (“CMBS”) (collectively, “Structured Securities”). March 31, 2018 December 31, 2017 Amortized Gross Unrealized Estimated Amortized Gross Unrealized Estimated Temporary OTTI Temporary OTTI (In millions) Fixed maturity securities: U.S. corporate $ 77,786 $ 5,105 $ 1,057 $ — $ 81,834 $ 76,005 $ 7,007 $ 351 $ — $ 82,661 Foreign government 58,423 6,484 397 — 64,510 55,351 6,495 312 — 61,534 Foreign corporate 52,894 3,366 797 — 55,463 52,409 3,836 676 — 55,569 U.S. government and agency 40,989 3,395 557 — 43,827 43,446 4,227 279 — 47,394 RMBS 26,858 999 481 (35 ) 27,411 27,846 1,145 233 (42 ) 28,800 State and political subdivision 10,762 1,473 43 — 12,192 10,752 1,717 13 1 12,455 ABS 11,695 111 41 1 11,764 12,213 116 39 (1 ) 12,291 CMBS 7,692 112 94 — 7,710 8,047 222 42 — 8,227 Total fixed maturity securities $ 287,099 $ 21,045 $ 3,467 $ (34 ) $ 304,711 $ 286,069 $ 24,765 $ 1,945 $ (42 ) $ 308,931 __________________ (1) Noncredit OTTI losses included in AOCI in an unrealized gain position are due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).” March 31, 2018 December 31, 2017 Estimated Fair Value % of Total Estimated Fair Value % of Total (Dollars in millions) Equity securities: Common stock $ 1,046 67.7 % $ 2,035 81.0 % Non-redeemable preferred stock 498 32.3 478 19.0 Total equity securities $ 1,544 100.0 % $ 2,513 100.0 % |
Available-for-sale fixed maturity securities by contractual maturity date | The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at March 31, 2018 : Due in One Due After Due After Five Years Through Ten Years Due After Ten Years Structured Securities Total Fixed Maturity Securities (In millions) Amortized cost $ 12,620 $ 60,639 $ 61,373 $ 106,222 $ 46,245 $ 287,099 Estimated fair value $ 12,674 $ 62,809 $ 63,919 $ 118,424 $ 46,885 $ 304,711 |
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 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 at: March 31, 2018 December 31, 2017 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 $ 20,465 $ 642 $ 4,426 $ 415 $ 5,604 $ 92 $ 4,115 $ 259 Foreign government 4,510 137 3,297 260 4,234 83 3,251 229 Foreign corporate 8,932 259 5,835 538 4,422 99 6,802 577 U.S. government and agency 19,105 224 3,378 333 18,273 93 3,560 186 RMBS 10,855 237 3,713 209 6,359 50 4,159 141 State and political subdivision 774 24 302 19 182 2 346 12 ABS 2,593 15 551 27 1,695 7 729 31 CMBS 3,069 48 478 46 1,174 9 413 33 Total fixed maturity securities $ 70,303 $ 1,586 $ 21,980 $ 1,847 $ 41,943 $ 435 $ 23,375 $ 1,468 Total number of securities in an unrealized loss position 5,111 1,887 2,598 1,955 |
Disclosure of Mortgage Loans Net of Valuation Allowance | Mortgage loans are summarized as follows at: March 31, 2018 December 31, 2017 Carrying Value % of Carrying Value % of (Dollars in millions) Mortgage loans: Commercial $ 46,690 65.7 % $ 44,375 64.6 % Agricultural 13,098 18.4 13,014 18.9 Residential 11,156 15.7 11,136 16.2 Subtotal (1) 70,944 99.8 68,525 99.7 Valuation allowances (327 ) (0.4 ) (314 ) (0.5 ) Subtotal mortgage loans, net 70,617 99.4 68,211 99.2 Residential — FVO 438 0.6 520 0.8 Total mortgage loans, net $ 71,055 100.0 % $ 68,731 100.0 % __________________ (1) Purchases of mortgage loans, primarily residential mortgage loans, were $307 million and $762 million for the three months ended March 31, 2018 and 2017 , 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) March 31, 2018 Commercial $ — $ — $ — $ — $ — $ 46,690 $ 228 $ — Agricultural 22 21 2 101 100 12,977 39 119 Residential — — — 376 339 10,817 58 339 Total $ 22 $ 21 $ 2 $ 477 $ 439 $ 70,484 $ 325 $ 458 December 31, 2017 Commercial $ — $ — $ — $ — $ — $ 44,375 $ 214 $ — Agricultural 22 21 2 27 27 12,966 39 46 Residential — — — 358 324 10,812 59 324 Total $ 22 $ 21 $ 2 $ 385 $ 351 $ 68,153 $ 312 $ 370 |
Allowance for Loan and Lease Losses, Provision for Loss, Net | The changes in the valuation allowance, by portfolio segment, were as follows: Three Months 2018 2017 Commercial Agricultural Residential Total Commercial Agricultural Residential Total (In millions) Balance, beginning of period $ 214 $ 41 $ 59 $ 314 $ 202 $ 39 $ 63 $ 304 Provision (release) 14 — — 14 5 — 5 10 Charge-offs, net of recoveries — — (1 ) (1 ) — — (4 ) (4 ) Balance, end of period $ 228 $ 41 $ 58 $ 327 $ 207 $ 39 $ 64 $ 310 |
Schedule of Financing Receivables, Non Accrual Status | The past due and nonaccrual mortgage loans at recorded investment, prior to valuation allowances, by portfolio segment, were as follows at: Past Due Greater than 90 Days Past Due and Still Accruing Interest Nonaccrual March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 (In millions) Commercial $ 1 $ — $ — $ — $ 1 $ — Agricultural 219 134 114 125 106 36 Residential 408 514 42 33 366 481 Total $ 628 $ 648 $ 156 $ 158 $ 473 $ 517 |
Components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss) | The components of net unrealized investment gains (losses), included in AOCI, were as follows: March 31, 2018 December 31, 2017 (In millions) Fixed maturity securities $ 17,545 $ 22,645 Fixed maturity securities with noncredit OTTI losses included in AOCI 35 41 Total fixed maturity securities 17,580 22,686 Equity securities — 421 Derivatives 936 1,453 Other 136 46 Subtotal 18,652 24,606 Amounts allocated from: Future policy benefits (138 ) (77 ) DAC, VOBA and DSI (1,304 ) (1,768 ) Policyholder dividend obligation (1,277 ) (2,121 ) Subtotal (2,719 ) (3,966 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI (5 ) (12 ) Deferred income tax benefit (expense) (4,372 ) (6,958 ) Net unrealized investment gains (losses) 11,556 13,670 Net unrealized investment gains (losses) attributable to noncontrolling interests (9 ) (8 ) Net unrealized investment gains (losses) attributable to MetLife, Inc. $ 11,547 $ 13,662 The changes in net unrealized investment gains (losses) were as follows: Three Months (In millions) Balance, beginning of period $ 13,662 Cumulative effects of changes in accounting principles, net of income tax (Note 1) 1,258 Fixed maturity securities on which noncredit OTTI losses have been recognized (6 ) Unrealized investment gains (losses) during the period (5,523 ) Unrealized investment gains (losses) relating to: Future policy benefits (61 ) DAC, VOBA and DSI 464 Policyholder dividend obligation 844 Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI 7 Deferred income tax benefit (expense) 903 Net unrealized investment gains (losses) 11,548 Net unrealized investment gains (losses) attributable to noncontrolling interests (1 ) Balance, end of period $ 11,547 Change in net unrealized investment gains (losses) $ (2,114 ) Change in net unrealized investment gains (losses) attributable to noncontrolling interests (1 ) Change in net unrealized investment gains (losses) attributable to MetLife, Inc. $ (2,115 ) |
Securities Lending | Elements of the Company’s securities lending program are presented below at: March 31, 2018 December 31, 2017 (In millions) Securities on loan: (1) Amortized cost $ 17,047 $ 17,801 Estimated fair value $ 17,812 $ 19,028 Cash collateral received from counterparties (2) $ 18,111 $ 19,417 Security collateral received from counterparties (3) $ 41 $ 19 Reinvestment portfolio — estimated fair value $ 18,149 $ 19,508 __________________ (1) Included within fixed maturity securities. (2) Included within payables for collateral under securities loaned and other transactions. (3) Security collateral received 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 was as follows at: March 31, 2018 December 31, 2017 Remaining Tenor of Securities Lending Agreements Remaining Tenor of Securities Lending Agreements Open (1) 1 Month or Less Over 1 to 6 Months Total Open (1) 1 Month or Less Over 1 to 6 Months Total (In millions) Cash collateral liability by loaned security type: U.S. government and agency $ 3,493 $ 6,282 $ 7,269 $ 17,044 $ 3,753 $ 6,031 $ 8,607 $ 18,391 Foreign government — 312 755 1,067 — 192 834 1,026 Total $ 3,493 $ 6,594 $ 8,024 $ 18,111 $ 3,753 $ 6,223 $ 9,441 $ 19,417 __________________ (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. |
Repurchase Agreements | Elements of the Company’s short-term repurchase agreements are presented below at: March 31, 2018 December 31, 2017 (In millions) Securities on loan: (1) Amortized cost $ 2,796 $ 994 Estimated fair value $ 2,927 $ 1,141 Cash collateral received from counterparties (2) $ 2,861 $ 1,102 Reinvestment portfolio — estimated fair value $ 2,854 $ 1,102 __________________ (1) Included within fixed maturity securities, cash equivalents and short-term investments. (2) Included within payables for collateral under securities loaned and other transactions and other liabilities. The cash collateral liability by loaned security type and remaining tenor of the agreements was as follows at: March 31, 2018 December 31, 2017 Remaining Tenor of Repurchase Agreements Remaining Tenor of Repurchase Agreements 1 Month or Less Over 1 to 6 Months Total 1 Month or Less Over 1 to 6 Months Total (In millions) Cash collateral liability by loaned security type: U.S. government and agency $ 2,760 $ 5 $ 2,765 $ 1,005 $ — $ 1,005 All other corporate and government — 96 96 44 53 97 Total $ 2,760 $ 101 $ 2,861 $ 1,049 $ 53 $ 1,102 |
Invested Assets on Deposit, Held in Trust and Pledged as Collateral | Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value for all asset classes, except mortgage loans, which are presented at carrying value, at: March 31, 2018 December 31, 2017 (In millions) Invested assets on deposit (regulatory deposits) $ 2,079 $ 1,879 Invested assets held in trust (collateral financing arrangement and reinsurance agreements) 2,586 2,490 Invested assets pledged as collateral 25,198 24,174 Total invested assets on deposit, held in trust and pledged as collateral $ 29,863 $ 28,543 The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4 of the Notes to the Consolidated Financial Statements included in the 2017 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 2018 2017 (In millions) Investment income: Fixed maturity securities $ 2,896 $ 2,825 Equity securities 16 31 FVO general account securities (1) 6 29 Mortgage loans 792 736 Policy loans 124 127 Real estate and real estate joint ventures 168 153 Other limited partnership interests 207 240 Cash, cash equivalents and short-term investments 72 51 Operating joint ventures 13 2 Other 106 72 Subtotal 4,400 4,266 Less: Investment expenses 302 261 Subtotal, net 4,098 4,005 Unit-linked investments (1) (353 ) 416 Net investment income $ 3,745 $ 4,421 __________________ (1) Changes in estimated fair value subsequent to purchase for investments still held as of the end of the respective periods included in net investment income were principally from Unit-linked investments, and were ($373) million and $340 million for the three months ended March 31, 2018 and 2017 , respectively. |
The components of net investment gains (losses) | The components of net investment gains (losses) were as follows: Three Months 2018 2017 (In millions) Total gains (losses) on fixed maturity securities: OTTI losses on fixed maturity securities recognized in earnings $ — $ — Fixed maturity securities — net gains (losses) on sales and disposals (95 ) (2 ) Total gains (losses) on fixed maturity securities (95 ) (2 ) Total gains (losses) on equity securities: OTTI losses recognized — by security type: Common stock — (7 ) Non-redeemable preferred stock — (1 ) Total OTTI losses on equity securities recognized in earnings — (8 ) Equity securities — net gains (losses) on sales and disposals 102 43 Change in estimated fair value of equity securities (1) (133 ) — Total gains (losses) on equity securities (31 ) 35 Mortgage loans (21 ) (12 ) Real estate and real estate joint ventures 25 (3 ) Other limited partnership interests — (7 ) Other (130 ) (26 ) Subtotal (252 ) (15 ) Change in estimated fair value of other limited partnership interests and real estate joint ventures (5 ) — Non-investment portfolio gains (losses) (2) (76 ) 103 Subtotal (81 ) 103 Total net investment gains (losses) $ (333 ) $ 88 __________________ (1) Changes in estimated fair value subsequent to purchase for equity securities still held as of the end of the period included in net investment gains (losses) were ($37) million for the three months ended March 31, 2018 . See Note 1 . (2) Non-investment portfolio gains (losses) for the three months ended March 31, 2018 includes a loss of $168 million which represents the change in estimated fair value of FVO Brighthouse Common Stock held by the Company. See Note 3 . |
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 securities AFS and the components of fixed maturity securities AFS net investment gains (losses) were as shown in the table below: Three Months 2018 2017 Fixed Maturity Securities (In millions) Proceeds $ 19,070 $ 14,461 Gross investment gains $ 106 $ 142 Gross investment losses (201 ) (144 ) OTTI losses — — Net investment gains (losses) $ (95 ) $ (2 ) |
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 2018 2017 (In millions) Balance, beginning of period $ 138 $ 187 Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI (9 ) (17 ) Increase in cash flows — accretion of previous credit loss OTTI (1 ) — Balance, end of period $ 128 $ 170 |
Variable Interest Entity, Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities [Table Text Block] | The following table presents the total assets and total liabilities relating to investment-related VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at: March 31, 2018 December 31, 2017 Total Total Total Total (In millions) Renewable energy partnership (1) $ 109 $ 1 $ 116 $ 3 Other investments 32 6 32 6 Total $ 141 $ 7 $ 148 $ 9 __________________ (1) Assets of the renewable energy partnership primarily consisted of other invested assets. |
Variable Interest Entity, Not Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities [Table Text Block] | The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at: March 31, 2018 December 31, 2017 Carrying Maximum Carrying Maximum (In millions) Fixed maturity securities AFS: Structured Securities (2) $ 45,555 $ 45,555 $ 47,614 $ 47,614 U.S. and foreign corporate 1,355 1,355 1,560 1,560 Other limited partnership interests 4,941 9,187 4,834 8,543 Other invested assets 2,300 2,557 2,291 2,625 Other investments 41 46 82 87 Total $ 54,192 $ 58,700 $ 56,381 $ 60,429 __________________ (1) The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of $113 million and $117 million at March 31, 2018 and December 31, 2017 , respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. |
Commercial | |
Mortgage Loans on Real Estate [Line Items] | |
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of commercial mortgage loans was as follows at: Recorded Investment Estimated % of Total Debt Service Coverage Ratios % of Total > 1.20x 1.00x - 1.20x < 1.00x Total (Dollars in millions) March 31, 2018 Loan-to-value ratios: Less than 65% $ 39,705 $ 1,023 $ 186 $ 40,914 87.6 % $ 41,327 87.9 % 65% to 75% 4,280 98 143 4,521 9.7 4,504 9.6 76% to 80% 265 210 126 601 1.3 574 1.2 Greater than 80% 401 176 77 654 1.4 613 1.3 Total $ 44,651 $ 1,507 $ 532 $ 46,690 100.0 % $ 47,018 100.0 % December 31, 2017 Loan-to-value ratios: Less than 65% $ 37,073 $ 1,483 $ 201 $ 38,757 87.4 % $ 39,528 87.7 % 65% to 75% 4,183 98 119 4,400 9.9 4,408 9.8 76% to 80% 235 210 57 502 1.1 476 1.0 Greater than 80% 401 168 147 716 1.6 672 1.5 Total $ 41,892 $ 1,959 $ 524 $ 44,375 100.0 % $ 45,084 100.0 % |
Agricultural | |
Mortgage Loans on Real Estate [Line Items] | |
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of agricultural mortgage loans was as follows at: March 31, 2018 December 31, 2017 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Loan-to-value ratios: Less than 65% $ 12,433 94.9 % $ 12,347 94.9 % 65% to 75% 616 4.7 618 4.7 76% to 80% 40 0.3 40 0.3 Greater than 80% 9 0.1 9 0.1 Total $ 13,098 100.0 % $ 13,014 100.0 % |
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: March 31, 2018 December 31, 2017 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Performance indicators: Performing $ 10,748 96.3 % $ 10,622 95.4 % Nonperforming 408 3.7 514 4.6 Total $ 11,156 100.0 % $ 11,136 100.0 % |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The following table presents the primary underlying risk exposure, gross notional amount, and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at: March 31, 2018 December 31, 2017 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 $ 2,521 $ 2,111 $ 2 $ 3,843 $ 2,289 $ 3 Foreign currency swaps Foreign currency exchange rate 1,146 65 36 1,116 50 18 Foreign currency forwards Foreign currency exchange rate 3,477 97 4 3,253 2 37 Subtotal 7,144 2,273 42 8,212 2,341 58 Cash flow hedges: Interest rate swaps Interest rate 3,580 158 14 3,584 235 4 Interest rate forwards Interest rate 3,143 — 218 3,332 — 128 Foreign currency swaps Foreign currency exchange rate 33,236 1,210 1,778 32,152 1,142 1,665 Subtotal 39,959 1,368 2,010 39,068 1,377 1,797 Foreign operations hedges: Foreign currency forwards Foreign currency exchange rate 458 2 5 332 2 5 Currency options Foreign currency exchange rate 8,587 19 263 9,408 44 163 Subtotal 9,045 21 268 9,740 46 168 Total qualifying hedges 56,148 3,662 2,320 57,020 3,764 2,023 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 52,610 1,597 279 60,485 2,203 576 Interest rate floors Interest rate 7,201 66 — 7,201 92 — Interest rate caps Interest rate 46,020 221 2 53,079 78 2 Interest rate futures Interest rate 2,991 2 3 4,366 2 4 Interest rate options Interest rate 14,816 575 — 12,009 656 11 Interest rate forwards Interest rate 217 — 51 217 — 42 Interest rate total return swaps Interest rate 1,048 14 25 1,048 8 2 Synthetic GICs Interest rate 11,720 — — 11,318 — — Foreign currency swaps Foreign currency exchange rate 10,773 580 461 9,902 693 506 Foreign currency forwards Foreign currency exchange rate 13,803 295 67 12,238 79 190 Currency futures Foreign currency exchange rate 900 — 8 846 2 — Currency options Foreign currency exchange rate 2,391 9 — 3,123 55 6 Credit default swaps — purchased Credit 1,888 5 41 2,020 7 43 Credit default swaps — written Credit 11,421 210 2 11,375 271 — Equity futures Equity market 3,088 7 19 4,005 18 4 Equity index options Equity market 19,509 594 603 19,886 569 690 Equity variance swaps Equity market 4,661 52 194 4,661 54 199 Equity total return swaps Equity market 1,012 35 — 1,117 — 41 Total non-designated or nonqualifying derivatives 206,069 4,262 1,755 218,896 4,787 2,316 Total $ 262,217 $ 7,924 $ 4,075 $ 275,916 $ 8,551 $ 4,339 The following table presents earned income on derivatives: Three Months 2018 2017 (In millions) Qualifying hedges: Net investment income $ 81 $ 75 Interest credited to policyholder account balances (23 ) (6 ) Other expenses (2 ) (3 ) Nonqualifying hedges: Net derivative gains (losses) 133 168 Policyholder benefits and claims 2 2 Total $ 191 $ 236 |
Components of Net Derivatives Gains (Losses) | The components of net derivative gains (losses) were as follows: Three Months 2018 2017 (In millions) Freestanding derivatives and hedging gains (losses) (1) $ 312 $ (369 ) Embedded derivatives gains (losses) 37 157 Total net derivative gains (losses) $ 349 $ (212 ) __________________ (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 Net Policyholder (In millions) Three Months Ended March 31, 2018 Interest rate derivatives $ (235 ) $ 4 $ (7 ) Foreign currency exchange rate derivatives 387 — 2 Credit derivatives — purchased (3 ) — — Credit derivatives — written (44 ) — — Equity derivatives 98 1 12 Total $ 203 $ 5 $ 7 Three Months Ended March 31, 2017 Interest rate derivatives $ (390 ) $ 2 $ 2 Foreign currency exchange rate derivatives 363 — — Credit derivatives — purchased (8 ) — — Credit derivatives — written 32 — — Equity derivatives (354 ) (3 ) (72 ) Total $ (357 ) $ (1 ) $ (70 ) __________________ (1) Changes in estimated fair value related to economic hedges of equity method investments in joint ventures and derivatives held within 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 March 31, 2018 Interest rate swaps: Fixed maturity securities $ 3 $ (2 ) $ 1 Policyholder liabilities (1) (213 ) 212 (1 ) Foreign currency swaps: Foreign-denominated fixed maturity securities and mortgage loans (27 ) 27 — Foreign-denominated policyholder account balances (2) 18 (18 ) — Foreign currency forwards: Foreign-denominated fixed maturity securities 179 (168 ) 11 Total $ (40 ) $ 51 $ 11 Three Months Ended March 31, 2017 Interest rate swaps: Fixed maturity securities $ 1 $ (1 ) $ — Policyholder liabilities (1) (51 ) 50 (1 ) Foreign currency swaps: Foreign-denominated fixed maturity securities (3 ) 3 — Foreign-denominated policyholder account balances (2) 1 2 3 Foreign currency forwards: Foreign-denominated fixed maturity securities 45 (41 ) 4 Total $ (7 ) $ 13 $ 6 __________________ (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 interim condensed consolidated statements of operations and comprehensive income (loss) and the interim condensed consolidated statements of equity: Derivatives in Net Investment Hedging Relationships (1) Amount of Gains (Losses) Deferred in AOCI (In millions) Three Months Ended March 31, 2018 Foreign currency forwards $ (8 ) Currency options (149 ) Total $ (157 ) Three Months Ended March 31, 2017 Foreign currency forwards $ (95 ) Currency options (231 ) Total $ (326 ) __________________ (1) There was no ineffectiveness recognized for the Company’s hedges of net investments in foreign operations. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. |
Schedule of estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps | The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at: March 31, 2018 December 31, 2017 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 (3) $ 7 $ 381 2.4 $ 7 $ 375 2.6 Credit default swaps referencing indices 40 2,267 2.5 44 2,268 2.7 Subtotal 47 2,648 2.5 51 2,643 2.7 Baa Single name credit default swaps (3) 7 656 1.9 7 605 1.8 Credit default swaps referencing indices 132 7,747 5.2 183 7,662 5.0 Subtotal 139 8,403 5.0 190 8,267 4.8 Ba Single name credit default swaps (3) — 20 1.2 1 115 3.4 Credit default swaps referencing indices — — — — — — Subtotal — 20 1.2 1 115 3.4 B Single name credit default swaps (3) 2 20 3.2 2 20 3.5 Credit default swaps referencing indices 20 330 5.2 27 330 5.0 Subtotal 22 350 5.1 29 350 4.9 Total $ 208 $ 11,421 4.4 $ 271 $ 11,375 4.3 __________________ (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 Global Ratings (“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. (3) Single name credit default swaps may be referenced to the credit of corporations, foreign governments, or state and political subdivisions. |
Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral | Credit Risk on Freestanding Derivatives 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. The Company manages its credit risk related to derivatives by entering into transactions with creditworthy counterparties and establishing and monitoring exposure limits. The Company’s OTC-bilateral derivative transactions are governed by ISDA Master Agreements which provide for legally enforceable set-off and close-out netting of exposures to specific counterparties in the event of early termination of a transaction, which includes, but is not limited to, events of default and bankruptcy. In the event of an early termination, the Company is permitted to set off receivables from the counterparty against payables to the same counterparty arising out of all included transactions. Substantially all of the Company’s ISDA Master Agreements also include Credit Support Annex provisions which require both the pledging and accepting of collateral in connection with its OTC-bilateral derivatives. The Company’s OTC-cleared derivatives are effected through central clearing counterparties and its exchange-traded derivatives are effected through regulated exchanges. Such positions are marked to market and margined on a daily basis (both initial margin and variation margin), and the Company has minimal exposure to credit-related losses in the event of nonperformance by counterparties to such derivatives. See Note 8 for a description of the impact of credit risk on the valuation of derivatives. The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: March 31, 2018 December 31, 2017 Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement Assets Liabilities Assets Liabilities (In millions) Gross estimated fair value of derivatives: OTC-bilateral (1) $ 7,733 $ 3,948 $ 7,955 $ 4,059 OTC-cleared (1), (6) 230 47 649 223 Exchange-traded 9 30 22 8 Total gross estimated fair value of derivatives (1) 7,972 4,025 8,626 4,290 Amounts offset on the interim condensed consolidated balance sheets — — — — Estimated fair value of derivatives presented on the interim condensed consolidated balance sheets (1), (6) 7,972 4,025 8,626 4,290 Gross amounts not offset on the interim condensed consolidated balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral (2,376 ) (2,376 ) (2,528 ) (2,528 ) OTC-cleared (21 ) (21 ) (35 ) (35 ) Exchange-traded (1 ) (1 ) (1 ) (1 ) Cash collateral: (3), (4) OTC-bilateral (4,082 ) — (4,169 ) — OTC-cleared (194 ) (9 ) (584 ) (179 ) Exchange-traded — (21 ) — (5 ) Securities collateral: (5) OTC-bilateral (981 ) (1,519 ) (1,004 ) (1,474 ) OTC-cleared — (17 ) — (9 ) Exchange-traded — (8 ) — (2 ) Net amount after application of master netting agreements and collateral $ 317 $ 53 $ 305 $ 57 __________________ (1) At March 31, 2018 and December 31, 2017 , derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $48 million and $75 million , respectively, and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of ($50) million and ($49) 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 March 31, 2018 and December 31, 2017 , the Company received excess cash collateral of $204 million and $253 million , respectively, and provided excess cash collateral of $263 million and $272 million , respectively, which is not included in the table above due to the foregoing limitation. (5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at March 31, 2018 , none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At March 31, 2018 and December 31, 2017 , the Company received excess securities collateral with an estimated fair value of $74 million and $108 million , respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At March 31, 2018 and December 31, 2017 , the Company provided excess securities collateral with an estimated fair value of $301 million and $305 million , respectively, for its OTC-bilateral derivatives, and $507 million and $522 million , respectively, for its OTC-cleared derivatives, and $77 million and $89 million , respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation. (6) Effective January 16, 2018, the LCH amended its rulebook, resulting in the characterization of variation margin transfers as settlement payments, as opposed to adjustments to collateral. See Note 1 for further information on the LCH amendments. |
Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral | The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: March 31, 2018 December 31, 2017 Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement Assets Liabilities Assets Liabilities (In millions) Gross estimated fair value of derivatives: OTC-bilateral (1) $ 7,733 $ 3,948 $ 7,955 $ 4,059 OTC-cleared (1), (6) 230 47 649 223 Exchange-traded 9 30 22 8 Total gross estimated fair value of derivatives (1) 7,972 4,025 8,626 4,290 Amounts offset on the interim condensed consolidated balance sheets — — — — Estimated fair value of derivatives presented on the interim condensed consolidated balance sheets (1), (6) 7,972 4,025 8,626 4,290 Gross amounts not offset on the interim condensed consolidated balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral (2,376 ) (2,376 ) (2,528 ) (2,528 ) OTC-cleared (21 ) (21 ) (35 ) (35 ) Exchange-traded (1 ) (1 ) (1 ) (1 ) Cash collateral: (3), (4) OTC-bilateral (4,082 ) — (4,169 ) — OTC-cleared (194 ) (9 ) (584 ) (179 ) Exchange-traded — (21 ) — (5 ) Securities collateral: (5) OTC-bilateral (981 ) (1,519 ) (1,004 ) (1,474 ) OTC-cleared — (17 ) — (9 ) Exchange-traded — (8 ) — (2 ) Net amount after application of master netting agreements and collateral $ 317 $ 53 $ 305 $ 57 __________________ (1) At March 31, 2018 and December 31, 2017 , derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $48 million and $75 million , respectively, and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of ($50) million and ($49) 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 March 31, 2018 and December 31, 2017 , the Company received excess cash collateral of $204 million and $253 million , respectively, and provided excess cash collateral of $263 million and $272 million , respectively, which is not included in the table above due to the foregoing limitation. (5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at March 31, 2018 , none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At March 31, 2018 and December 31, 2017 , the Company received excess securities collateral with an estimated fair value of $74 million and $108 million , respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At March 31, 2018 and December 31, 2017 , the Company provided excess securities collateral with an estimated fair value of $301 million and $305 million , respectively, for its OTC-bilateral derivatives, and $507 million and $522 million , respectively, for its OTC-cleared derivatives, and $77 million and $89 million , respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation. (6) Effective January 16, 2018, the LCH amended its rulebook, resulting in the characterization of variation margin transfers as settlement payments, as opposed to adjustments to collateral. See Note 1 for further information on the LCH amendments. |
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 interim condensed consolidated statements of operations and comprehensive income (loss) and the interim condensed consolidated statements of equity. The table excludes the effects of Brighthouse derivatives prior to the Separation. Derivatives in Cash Flow Amount of Gains Amount and Location Amount and Location (Effective Portion) (Effective Portion) (Ineffective Portion) Net Derivative Net Investment Other Net Derivative (In millions) Three Months Ended March 31, 2018 Interest rate swaps $ (173 ) $ 16 $ 3 $ — $ (2 ) Interest rate forwards (104 ) 5 1 — — Foreign currency swaps (75 ) 139 — 1 1 Total $ (352 ) $ 160 $ 4 $ 1 $ (1 ) Three Months Ended March 31, 2017 Interest rate swaps $ 5 $ 8 $ 4 $ — $ 1 Interest rate forwards 44 (4 ) — — — Foreign currency swaps 180 208 — 1 2 Total $ 229 $ 212 $ 4 $ 1 $ 3 |
Schedule of Derivative Instruments | The following table presents the estimated fair value of the Company’s OTC-bilateral derivatives that were 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, at the reporting date sustained a downgrade to a level that triggered full overnight collateralization or termination of the derivative position. OTC-bilateral derivatives that are not subject to collateral agreements are excluded from this table. March 31, 2018 December 31, 2017 Derivatives Derivatives Total Derivatives Subject to Credit- Contingent Provisions Derivatives Total (In millions) Estimated Fair Value of Derivatives in a Net Liability Position (1) $ 1,533 $ 39 $ 1,572 $ 1,508 $ 24 $ 1,532 Estimated Fair Value of Collateral Provided: Fixed maturity securities $ 1,734 $ 50 $ 1,784 $ 1,675 $ 26 $ 1,701 Cash $ — $ — $ — $ — $ — $ — Estimated Fair Value of Incremental Collateral Provided Upon: One-notch downgrade in the Company’s credit or financial strength rating, as applicable $ 14 $ — $ 14 $ 15 $ — $ 15 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 $ 15 $ — $ 15 $ 20 $ — $ 20 __________________ (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 2018 2017 (In millions) Net derivative gains (losses) (1) $ 37 $ 157 __________________ (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 $20 million and ($52) million for the three months ended March 31, 2018 and 2017, resp |
Schedule of Derivative Instruments | The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at: Balance Sheet Location March 31, 2018 December 31, 2017 (In millions) Embedded derivatives within asset host contracts: Ceded guaranteed minimum benefits Premiums, reinsurance and other receivables $ 157 $ 144 Options embedded in debt or equity securities (1) Investments — (132 ) Embedded derivatives within asset host contracts $ 157 $ 12 Embedded derivatives within liability host contracts: Direct guaranteed minimum benefits Policyholder account balances $ 23 $ 32 Assumed guaranteed minimum benefits Policyholder account balances 392 291 Funds withheld on ceded reinsurance Other liabilities 2 25 Fixed annuities with equity indexed returns Policyholder account balances 68 70 Embedded derivatives within liability host contracts $ 485 $ 418 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 at: March 31, 2018 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 77,597 $ 4,237 $ 81,834 Foreign government — 64,331 179 64,510 Foreign corporate — 48,890 6,573 55,463 U.S. government and agency 22,873 20,954 — 43,827 RMBS — 24,155 3,256 27,411 State and political subdivision — 12,192 — 12,192 ABS — 10,739 1,025 11,764 CMBS — 7,409 301 7,710 Total fixed maturity securities 22,873 266,267 15,571 304,711 Equity securities 909 213 422 1,544 Unit-linked and FVO Securities (1) 13,705 2,453 286 16,444 Other limited partnership interests — — 194 194 Short-term investments (2) 2,845 990 615 4,450 Residential mortgage loans — FVO — — 438 438 Other investments 83 90 — 173 Derivative assets: (3) Interest rate 2 4,728 14 4,744 Foreign currency exchange rate — 2,120 157 2,277 Credit — 180 35 215 Equity market 7 603 78 688 Total derivative assets 9 7,631 284 7,924 Embedded derivatives within asset host contracts (4) — — 157 157 Separate account assets (5) 88,618 106,511 1,229 196,358 Total assets $ 129,042 $ 384,155 $ 19,196 $ 532,393 Liabilities Derivative liabilities: (3) Interest rate $ 3 $ 348 $ 243 $ 594 Foreign currency exchange rate 8 2,585 29 2,622 Credit — 43 — 43 Equity market 19 603 194 816 Total derivative liabilities 30 3,579 466 4,075 Embedded derivatives within liability host contracts (4) — — 485 485 Separate account liabilities (5) — 12 5 17 Total liabilities $ 30 $ 3,591 $ 956 $ 4,577 December 31, 2017 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 78,171 $ 4,490 $ 82,661 Foreign government — 61,325 209 61,534 Foreign corporate — 48,840 6,729 55,569 U.S. government and agency 26,052 21,342 — 47,394 RMBS — 25,339 3,461 28,800 State and political subdivision — 12,455 — 12,455 ABS — 11,204 1,087 12,291 CMBS — 7,934 293 8,227 Total fixed maturity securities 26,052 266,610 16,269 308,931 Equity securities 1,104 981 428 2,513 Unit-linked and FVO Securities (1) 14,028 2,355 362 16,745 Short-term investments (2) 3,001 1,252 33 4,286 Residential mortgage loans — FVO — — 520 520 Other investments 81 84 — 165 Derivative assets: (3) Interest rate 2 5,553 8 5,563 Foreign currency exchange rate 2 1,954 113 2,069 Credit — 240 38 278 Equity market 18 548 75 641 Total derivative assets 22 8,295 234 8,551 Embedded derivatives within asset host contracts (4) — — 144 144 Separate account assets (5) 89,916 114,124 961 205,001 Total assets $ 134,204 $ 393,701 $ 18,951 $ 546,856 Liabilities Derivative liabilities: (3) Interest rate $ 4 $ 638 $ 130 $ 772 Foreign currency exchange rate — 2,553 37 2,590 Credit — 43 — 43 Equity market 4 731 199 934 Total derivative liabilities 8 3,965 366 4,339 Embedded derivatives within liability host contracts (4) — — 418 418 Separate account liabilities (5) — 7 2 9 Total liabilities $ 8 $ 3,972 $ 786 $ 4,766 __________________ (1) Unit-linked and FVO Securities were comprised of over 85% Unit-linked investments at both March 31, 2018 and December 31, 2017. (2) 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. (3) Derivative assets are presented within other invested assets on the interim condensed consolidated balance sheets and derivative liabilities are presented within other liabilities on the interim condensed consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the interim condensed consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables. (4) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables and other invested assets on the interim condensed consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the interim condensed consolidated balance sheets. At March 31, 2018 and December 31, 2017 , debt and equity securities also included embedded derivatives of $0 and ($132) million , respectively. (5) 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. |
Fair Value Inputs, Quantitative Information | The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: March 31, 2018 December 31, 2017 Impact of Valuation Significant Range Weighted Range Weighted Fixed maturity securities (3) U.S. corporate and foreign corporate • Matrix pricing • Offered quotes (4) 89 - 139 107 83 - 142 110 Increase • Market pricing • Quoted prices (4) 25 - 846 124 10 - 443 121 Increase • Consensus pricing • Offered quotes (4) 97 - 104 102 97 - 104 101 Increase RMBS • Market pricing • Quoted prices (4) — - 109 94 — - 126 94 Increase (5) ABS • Market pricing • Quoted prices (4) 3 - 117 100 5 - 117 100 Increase (5) • Consensus pricing • Offered quotes (4) 99 - 102 100 100 - 103 100 Increase (5) Derivatives Interest rate • Present value techniques • Swap yield (6) 277 - 313 200 - 300 Increase (7) • Repurchase rates (8) (4) - 6 (5) - 5 Decrease (7) Foreign currency exchange rate • Present value techniques • Swap yield (6) (19) - 328 (14) - 309 Increase (7) Credit • Present value techniques • Credit spreads (9) 97 - 100 — - — Decrease (7) • Consensus pricing • Offered quotes (10) Equity market • Present value techniques or option pricing models • Volatility (11) 20% - 31% 11% - 31% Increase (7) • Correlation (12) 10% - 30% 10% - 30% Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing techniques • Mortality rates: Ages 0 - 40 0% - 0.21% 0% - 0.21% Decrease (13) Ages 41 - 60 0.03% - 0.75% 0.03% - 0.75% Decrease (13) Ages 61 - 115 0.15% - 100% 0.15% - 100% Decrease (13) • Lapse rates: Durations 1 - 10 0.25% - 100% 0.25% - 100% Decrease (14) Durations 11 - 20 2% - 100% 2% - 100% Decrease (14) Durations 21 - 116 1.25% - 100% 1.25% - 100% Decrease (14) • Utilization rates 0% - 25% 0% - 25% Increase (15) • Withdrawal rates 0% - 20% 0% - 20% (16) • Long-term equity volatilities 9.04% - 33% 8.25% - 33% Increase (17) • Nonperformance risk spread 0.03% - 1.75% 0.02% - 1.32% Decrease (18) __________________ (1) The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. (2) The impact of a decrease in input would have the opposite impact on 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 accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. (5) Changes in the assumptions used for the probability of default are 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. (6) 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. (7) 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. (8) Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points. (9) Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. (10) At both March 31, 2018 and December 31, 2017 , independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value. (11) Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (12) Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations. (13) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (14) Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (15) The utilization rate assumption estimates the percentage of contractholders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (16) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (17) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (18) Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. |
Fair Value Inputs, Quantitative Information | The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: March 31, 2018 December 31, 2017 Impact of Valuation Significant Range Weighted Range Weighted Fixed maturity securities (3) U.S. corporate and foreign corporate • Matrix pricing • Offered quotes (4) 89 - 139 107 83 - 142 110 Increase • Market pricing • Quoted prices (4) 25 - 846 124 10 - 443 121 Increase • Consensus pricing • Offered quotes (4) 97 - 104 102 97 - 104 101 Increase RMBS • Market pricing • Quoted prices (4) — - 109 94 — - 126 94 Increase (5) ABS • Market pricing • Quoted prices (4) 3 - 117 100 5 - 117 100 Increase (5) • Consensus pricing • Offered quotes (4) 99 - 102 100 100 - 103 100 Increase (5) Derivatives Interest rate • Present value techniques • Swap yield (6) 277 - 313 200 - 300 Increase (7) • Repurchase rates (8) (4) - 6 (5) - 5 Decrease (7) Foreign currency exchange rate • Present value techniques • Swap yield (6) (19) - 328 (14) - 309 Increase (7) Credit • Present value techniques • Credit spreads (9) 97 - 100 — - — Decrease (7) • Consensus pricing • Offered quotes (10) Equity market • Present value techniques or option pricing models • Volatility (11) 20% - 31% 11% - 31% Increase (7) • Correlation (12) 10% - 30% 10% - 30% Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing techniques • Mortality rates: Ages 0 - 40 0% - 0.21% 0% - 0.21% Decrease (13) Ages 41 - 60 0.03% - 0.75% 0.03% - 0.75% Decrease (13) Ages 61 - 115 0.15% - 100% 0.15% - 100% Decrease (13) • Lapse rates: Durations 1 - 10 0.25% - 100% 0.25% - 100% Decrease (14) Durations 11 - 20 2% - 100% 2% - 100% Decrease (14) Durations 21 - 116 1.25% - 100% 1.25% - 100% Decrease (14) • Utilization rates 0% - 25% 0% - 25% Increase (15) • Withdrawal rates 0% - 20% 0% - 20% (16) • Long-term equity volatilities 9.04% - 33% 8.25% - 33% Increase (17) • Nonperformance risk spread 0.03% - 1.75% 0.02% - 1.32% Decrease (18) __________________ (1) The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. (2) The impact of a decrease in input would have the opposite impact on 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 accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. (5) Changes in the assumptions used for the probability of default are 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. (6) 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. (7) 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. (8) Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points. (9) Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. (10) At both March 31, 2018 and December 31, 2017 , independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value. (11) Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (12) Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations. (13) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (14) Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (15) The utilization rate assumption estimates the percentage of contractholders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (16) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (17) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (18) Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. |
Fair Value, Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables summarize the change of all assets (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) Foreign Structured Securities State and Equity Securities Unit-linked and FVO Securities (In millions) Three Months Ended March 31, 2018 Balance, beginning of period $ 11,219 $ 209 $ 4,841 $ — $ 428 $ 362 Total realized/unrealized gains (losses) included in net income (loss) (2), (3) 7 1 23 — (6 ) 5 Total realized/unrealized gains (losses) included in AOCI (68 ) (3 ) 24 — — — Purchases (4) 512 2 657 — 1 27 Sales (4) (542 ) (2 ) (324 ) — (1 ) (59 ) Issuances (4) — — — — — — Settlements (4) — — — — — — Transfers into Level 3 (5) 46 — 45 — — — Transfers out of Level 3 (5) (364 ) (28 ) (684 ) — — (49 ) Balance, end of period $ 10,810 $ 179 $ 4,582 $ — $ 422 $ 286 Three Months Ended March 31, 2017 Balance, beginning of period $ 11,537 $ 289 $ 5,215 $ 10 $ 468 $ 287 Total realized/unrealized gains (losses) included in net income (loss) (2), (3) 4 3 32 — (10 ) 7 Total realized/unrealized gains (losses) included in AOCI 231 6 48 — 22 — Purchases (4) 941 12 1,020 — 1 69 Sales (4) (418 ) (17 ) (400 ) — (1 ) (17 ) Issuances (4) — — — — — — Settlements (4) — — — — — — Transfers into Level 3 (5) 79 4 23 — — 2 Transfers out of Level 3 (5) (1,406 ) (8 ) (233 ) (10 ) — (13 ) Balance, end of period $ 10,968 $ 289 $ 5,705 $ — $ 480 $ 335 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2018 (6) $ 1 $ 1 $ 21 $ — $ — $ 4 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2017 (6) $ 4 $ 2 $ 24 $ — $ (10 ) $ 7 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Other Limited Partnership Interests Short-term Investments Residential Mortgage Net Derivatives (7) Net Embedded Derivatives (8) Separate (In millions) Three Months Ended March 31, 2018 Balance, beginning of period $ — $ 33 $ 520 $ (132 ) $ (274 ) $ 959 Total realized/unrealized gains (losses) included in net income (loss) (2), (3) (5 ) — 2 11 36 2 Total realized/unrealized gains (losses) included in AOCI 2 — — (104 ) (16 ) — Purchases (4) — 605 — — — 409 Sales (4) (19 ) (3 ) (64 ) — — (124 ) Issuances (4) — — — — — 1 Settlements (4) — — (20 ) 43 (74 ) (1 ) Transfers into Level 3 (5) 216 — — — — 53 Transfers out of Level 3 (5) — (20 ) — — — (75 ) Balance, end of period $ 194 $ 615 $ 438 $ (182 ) $ (328 ) $ 1,224 Three Months Ended March 31, 2017 Balance, beginning of period $ — $ 46 $ 566 $ (562 ) $ (729 ) $ 1,141 Total realized/unrealized gains (losses) included in net income (loss) (2), (3) — — (3 ) 33 169 (24 ) Total realized/unrealized gains (losses) included in AOCI — — — 44 (59 ) — Purchases (4) — 776 135 — — 136 Sales (4) — (3 ) (33 ) — — (42 ) Issuances (4) — — — (7 ) — 39 Settlements (4) — — (26 ) 95 (76 ) (33 ) Transfers into Level 3 (5) — — — — — 69 Transfers out of Level 3 (5) — (40 ) — — — (102 ) Balance, end of period $ — $ 779 $ 639 $ (397 ) $ (695 ) $ 1,184 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2018 (6) $ (5 ) $ — $ (8 ) $ 48 $ 31 $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2017 (6) $ — $ — $ (3 ) $ 26 $ 167 $ — __________________ (1) Comprised of U.S. and foreign corporate securities. (2) 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 derivative gains (losses). (3) Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. (4) 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. (5) 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. (6) 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). (7) Freestanding derivative assets and liabilities are presented net for purposes of the rollforward. (8) Embedded derivative assets and liabilities are presented net for purposes of the rollforward. (9) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (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 | Fair Value Option The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis. T he following table presents information for residential mortgage loans, which are accounted for under the FVO and were initially measured at fair value. March 31, 2018 December 31, 2017 (In millions) Unpaid principal balance $ 544 $ 650 Difference between estimated fair value and unpaid principal balance (106 ) (130 ) Carrying value at estimated fair value $ 438 $ 520 Loans in nonaccrual status $ 159 $ 198 Loans more than 90 days past due $ 78 $ 94 Loans in nonaccrual status or more than 90 days past due, or both — difference between aggregate estimated fair value and unpaid principal balance $ (82 ) $ (102 ) |
Fair Value of Financial Instruments Carried at Other Than Fair Value | The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at: March 31, 2018 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 70,617 $ — $ — $ 71,845 $ 71,845 Policy loans $ 9,744 $ — $ 341 $ 11,082 $ 11,423 Other invested assets $ 1,264 $ — $ 812 $ 452 $ 1,264 Premiums, reinsurance and other receivables $ 4,358 $ — $ 1,450 $ 3,025 $ 4,475 Other assets $ 345 $ — $ 175 $ 199 $ 374 Liabilities Policyholder account balances $ 114,715 $ — $ — $ 116,193 $ 116,193 Long-term debt $ 15,696 $ — $ 16,973 $ — $ 16,973 Collateral financing arrangement $ 1,108 $ — $ — $ 898 $ 898 Junior subordinated debt securities $ 3,145 $ — $ 4,073 $ — $ 4,073 Other liabilities $ 3,810 $ — $ 2,113 $ 2,252 $ 4,365 Separate account liabilities $ 118,151 $ — $ 118,151 $ — $ 118,151 December 31, 2017 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 68,211 $ — $ — $ 69,797 $ 69,797 Policy loans $ 9,669 $ — $ 336 $ 11,176 $ 11,512 Other limited partnership interests $ 219 $ — $ — $ 216 $ 216 Other invested assets $ 443 $ — $ — $ 443 $ 443 Premiums, reinsurance and other receivables $ 4,155 $ — $ 1,283 $ 3,056 $ 4,339 Other assets $ 285 $ — $ 189 $ 139 $ 328 Liabilities Policyholder account balances $ 114,355 $ — $ — $ 116,534 $ 116,534 Long-term debt $ 15,675 $ — $ 17,773 $ — $ 17,773 Collateral financing arrangement $ 1,121 $ — $ — $ 894 $ 894 Junior subordinated debt securities $ 3,144 $ — $ 4,319 $ — $ 4,319 Other liabilities $ 3,208 $ — $ 1,496 $ 2,345 $ 3,841 Separate account liabilities $ 124,011 $ — $ 124,011 $ — $ 124,011 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of Stock by Class | Preferred stock authorized, issued and outstanding was as follows: March 31, 2018 December 31, 2017 Series Shares Shares Shares Shares Authorized Shares Issued Shares Outstanding Floating Rate Non-Cumulative Preferred Stock, Series A 27,600,000 24,000,000 24,000,000 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 1,500,000 1,500,000 1,500,000 5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D 500,000 500,000 500,000 — — — Series A Junior Participating Preferred Stock 10,000,000 — — 10,000,000 — — Not designated 160,400,000 — — 160,900,000 — — Total 200,000,000 26,000,000 26,000,000 200,000,000 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 $ 12,757 $ 905 $ (4,390 ) $ (1,845 ) $ 7,427 OCI before reclassifications (3,811 ) (352 ) 552 (4 ) (3,615 ) Deferred income tax benefit (expense) 835 58 3 1 897 AOCI before reclassifications, net of income tax 9,781 611 (3,835 ) (1,848 ) 4,709 Amounts reclassified from AOCI 45 (165 ) — 31 (89 ) Deferred income tax benefit (expense) (10 ) 27 — (7 ) 10 Amounts reclassified from AOCI, net of income tax 35 (138 ) — 24 (79 ) Cumulative effects of changes in accounting principles (425 ) — — — (425 ) Deferred income tax benefit (expense), cumulative effects of changes in accounting principles 1,473 210 36 (382 ) 1,337 Cumulative effects of changes in accounting principles, net of income tax (2) 1,048 210 36 (382 ) 912 Sale of subsidiary (3) — — 92 — 92 Balance, end of period $ 10,864 $ 683 $ (3,707 ) $ (2,206 ) $ 5,634 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 $ 10,785 $ 1,865 $ (5,312 ) $ (1,972 ) $ 5,366 OCI before reclassifications 703 210 348 (20 ) 1,241 Deferred income tax benefit (expense) (273 ) (73 ) 122 2 (222 ) AOCI before reclassifications, net of income tax 11,215 2,002 (4,842 ) (1,990 ) 6,385 Amounts reclassified from AOCI 196 (229 ) — 44 11 Deferred income tax benefit (expense) (75 ) 80 — (5 ) — Amounts reclassified from AOCI, net of income tax 121 (149 ) — 39 11 Balance, end of period $ 11,336 $ 1,853 $ (4,842 ) $ (1,951 ) $ 6,396 __________________ (1) See Note 6 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation. (2) See Note 1 for further information on adoption of new accounting pronouncements. (3) See Note 3 for further information on the 2018 disposition. |
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 Statements of Operations and Comprehensive Income (Loss) Locations Three Months 2018 2017 (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ (101 ) $ 40 Net investment gains (losses) Net unrealized investment gains (losses) 3 6 Net investment income Net unrealized investment gains (losses) 53 (151 ) Net derivative gains (losses) Net unrealized investment gains (losses) — (91 ) Discontinued operations Net unrealized investment gains (losses), before income tax (45 ) (196 ) Income tax (expense) benefit 10 75 Net unrealized investment gains (losses), net of income tax (35 ) (121 ) Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate swaps 16 8 Net derivative gains (losses) Interest rate swaps 3 4 Net investment income Interest rate swaps — 1 Discontinued operations Interest rate forwards 5 (4 ) Net derivative gains (losses) Interest rate forwards 1 — Net investment income Interest rate forwards — 1 Discontinued operations Foreign currency swaps 139 208 Net derivative gains (losses) Foreign currency swaps 1 1 Other expenses Foreign currency swaps — 10 Discontinued operations Gains (losses) on cash flow hedges, before income tax 165 229 Income tax (expense) benefit (27 ) (80 ) Gains (losses) on cash flow hedges, net of income tax 138 149 Defined benefit plans adjustment: (1) Amortization of net actuarial gains (losses) (36 ) (49 ) Amortization of prior service (costs) credit 5 5 Amortization of defined benefit plan items, before income tax (31 ) (44 ) Income tax (expense) benefit 7 5 Amortization of defined benefit plan items, net of income tax (24 ) (39 ) Total reclassifications, net of income tax $ 79 $ (11 ) __________________ (1) These AOCI components are included in the computation of net periodic benefit costs. See Note 11 . |
Other Expenses (Tables)
Other Expenses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other Expenses | Information on other expenses was as follows: Three Months 2018 2017 (In millions) Employee related costs $ 937 $ 937 Third party staffing costs 380 362 General and administrative expenses 243 221 Pension, postretirement and postemployment benefit costs 49 79 Premium taxes, other taxes, and licenses & fees 179 175 Commissions and other variable expenses 1,416 1,304 Capitalization of DAC (796 ) (713 ) Amortization of DAC and VOBA 693 663 Amortization of negative VOBA (22 ) (43 ) Interest expense on debt 286 283 Total other expenses $ 3,365 $ 3,268 Certain prior year amounts have been reclassified to conform to the current year presentation, which has been revised to align the expense categories with the Company’s businesses. The reclassifications did not result in a change to total other expenses. See Note 3 for further information on Separation-related transaction costs. |
Restructuring charges | The Company commenced in 2016 a unit cost improvement program related to the Company’s refreshed enterprise strategy. This global strategy focuses on transforming the Company to become more digital, driving efficiencies and innovation to achieve competitive advantage, and simplified, decreasing the costs and risks associated with the Company’s highly complex industry to customers and shareholders. Restructuring charges related to this program are included in other expenses. As the expenses relate to an enterprise-wide initiative, they are reported in Corporate & Other. Such restructuring charges were as follows: Three Months 2018 2017 Severance (In millions) Balance, beginning of period $ 22 $ 35 Restructuring charges 9 11 Cash payments (12 ) (8 ) Balance, end of period $ 19 $ 38 Total restructuring charges incurred since inception of initiative $ 82 $ 46 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Net periodic benefit costs | The components of net periodic benefit costs, reported in other expenses, were as follows: Three Months 2018 2017 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits (In millions) Service costs $ 60 $ 1 $ 61 $ 1 Interest costs 96 11 106 19 Expected return on plan assets (133 ) (18 ) (130 ) (18 ) Amortization of net actuarial (gains) losses 44 (8 ) 49 — Amortization of prior service costs (credit) — (5 ) — (5 ) Net periodic benefit costs (credit) $ 67 $ (19 ) $ 86 $ (3 ) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | The following table presents the weighted average shares, basic earnings per common share and diluted earnings per common share for each income category presented: Three Months 2018 2017 (In millions, except per share data) Weighted Average Shares: Weighted average common stock outstanding for basic earnings per common share 1,035.9 1,090.4 Incremental common shares from assumed exercise or issuance of stock-based awards 8.5 8.3 Weighted average common stock outstanding for diluted earnings per common share 1,044.4 1,098.7 Income (Loss) from Continuing Operations: Income (loss) from continuing operations, net of income tax $ 1,257 $ 952 Less: Income (loss) from continuing operations, net of income tax, attributable to noncontrolling interests 4 3 Less: Preferred stock dividends 6 6 Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders $ 1,247 $ 943 Basic $ 1.20 $ 0.87 Diluted $ 1.19 $ 0.86 Income (Loss) from Discontinued Operations: Income (loss) from discontinued operations, net of income tax $ — $ (76 ) Less: Income (loss) from discontinued operations, net of income tax, attributable to noncontrolling interests — — Income (loss) from discontinued operations, net of income tax, available to MetLife, Inc.’s common shareholders $ — $ (76 ) Basic $ — $ (0.07 ) Diluted $ — $ (0.07 ) Net Income (Loss): Net income (loss) $ 1,257 $ 876 Less: Net income (loss) attributable to noncontrolling interests 4 3 Less: Preferred stock dividends 6 6 Net income (loss) available to MetLife, Inc.’s common shareholders $ 1,247 $ 867 Basic $ 1.20 $ 0.80 Diluted $ 1.19 $ 0.79 |
Business, Basis of Presentati36
Business, Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2018Segment | Aug. 04, 2017shares | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of segments | Segment | 5 | |
Brighthouse Financial, Inc | Impact of Separation [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Common Stock, Shares, Issued | shares | 96,776,670 |
Business, Basis of Presentati37
Business, Basis of Presentation and Summary of Significant Accounting Policies - Restatement Adjustments (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Assumed variable annuity guarantee reserves | $ 896 | |||
Reserves for Group Annuity products | 510 | |||
Income Statement Related Disclosures [Abstract] | ||||
Other net investment gains (losses) | $ 88 | |||
Net investment gains (losses) | $ (333) | 88 | ||
Net derivative gains (losses) | 349 | (212) | ||
Revenues | 14,805 | 14,964 | ||
Policyholder benefits and claims | 8,718 | 8,863 | ||
Other expenses | 3,365 | 3,268 | ||
Total expenses | 13,149 | 13,892 | ||
Income (loss) from continuing operations before provision for income tax | 1,656 | 1,072 | ||
Provision for income tax expense (benefit) | 399 | 120 | ||
Income (loss) from continuing operations, net of income tax | 1,257 | 952 | ||
Income (loss) from discontinued operations, net of income tax | 0 | (76) | ||
Net income (loss) | 1,257 | 876 | ||
Net income (loss) attributable to MetLife, Inc. | 1,253 | 873 | ||
Net Income (Loss) Available to Common Stockholders, Basic | 1,247 | 867 | ||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (1,448) | 1,907 | ||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (1,452) | $ 1,903 | ||
Income (loss) from continuing operations, net of tax - Basic | $ 1.20 | $ 0.87 | ||
Income (loss) from continuing operations, net of tax - Diluted | 1.19 | 0.86 | ||
Income (loss) per common share - Basic | 1.20 | 0.80 | ||
Income (loss) per common share - Diluted | $ 1.19 | $ 0.79 | ||
Statement of Stockholders' Equity [Abstract] | ||||
Retained Earnings (Accumulated Deficit) | $ 26,453 | $ 35,113 | 26,527 | $ 34,683 |
Net income (loss) | 1,253 | 873 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 5,634 | 6,396 | 7,427 | 5,366 |
Other Comprehensive Income (Loss), Net of Tax | (2,705) | 1,031 | ||
Stockholders' Equity Attributable to Parent | 56,310 | 68,179 | 58,676 | 67,531 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 56,508 | 68,358 | 58,870 | 67,702 |
Discontinued Operations | ||||
Income Statement Related Disclosures [Abstract] | ||||
Net investment gains (losses) | 5 | |||
Provision for income tax expense (benefit) | 2 | |||
Scenario, Previously Reported | ||||
Income Statement Related Disclosures [Abstract] | ||||
Other net investment gains (losses) | 8 | |||
Net investment gains (losses) | 8 | |||
Net derivative gains (losses) | (926) | |||
Revenues | 16,269 | |||
Policyholder benefits and claims | 9,859 | |||
Other expenses | 3,564 | |||
Total expenses | 15,452 | |||
Income (loss) from continuing operations before provision for income tax | 817 | |||
Provision for income tax expense (benefit) | (12) | |||
Income (loss) from continuing operations, net of income tax | 829 | |||
Income (loss) from discontinued operations, net of income tax | 0 | |||
Net income (loss) | 829 | |||
Net income (loss) attributable to MetLife, Inc. | 826 | |||
Net Income (Loss) Available to Common Stockholders, Basic | 820 | |||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 1,879 | |||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 1,875 | |||
Income (loss) from continuing operations, net of tax - Basic | $ 0.75 | |||
Income (loss) from continuing operations, net of tax - Diluted | 0.75 | |||
Income (loss) per common share - Basic | 0.75 | |||
Income (loss) per common share - Diluted | $ 0.75 | |||
Statement of Stockholders' Equity [Abstract] | ||||
Retained Earnings (Accumulated Deficit) | $ 34,863 | 34,480 | ||
Net income (loss) | 826 | |||
Stockholders' Equity Attributable to Parent | 67,929 | 67,309 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 68,108 | 67,480 | ||
Restatement Adjustment | ||||
Income Statement Related Disclosures [Abstract] | ||||
Other net investment gains (losses) | 25 | |||
Net investment gains (losses) | 25 | |||
Net derivative gains (losses) | 14 | |||
Revenues | 39 | |||
Policyholder benefits and claims | 6 | |||
Other expenses | (35) | |||
Total expenses | (29) | |||
Income (loss) from continuing operations before provision for income tax | 68 | |||
Provision for income tax expense (benefit) | 24 | |||
Income (loss) from continuing operations, net of income tax | 44 | |||
Income (loss) from discontinued operations, net of income tax | 3 | |||
Net income (loss) | 47 | |||
Net income (loss) attributable to MetLife, Inc. | 47 | |||
Net Income (Loss) Available to Common Stockholders, Basic | 47 | |||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 28 | |||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 28 | |||
Income (loss) from continuing operations, net of tax - Basic | $ 0.05 | |||
Income (loss) from continuing operations, net of tax - Diluted | 0.04 | |||
Income (loss) per common share - Basic | 0.05 | |||
Income (loss) per common share - Diluted | $ 0.04 | |||
Statement of Stockholders' Equity [Abstract] | ||||
Retained Earnings (Accumulated Deficit) | $ 250 | 203 | ||
Net income (loss) | 47 | |||
Stockholders' Equity Attributable to Parent | 250 | 222 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 250 | 222 | ||
Restatement Adjustment | Discontinued Operations | ||||
Income Statement Related Disclosures [Abstract] | ||||
Other net investment gains (losses) | 55 | |||
Net investment gains (losses) | 55 | |||
Net derivative gains (losses) | 700 | |||
Revenues | (1,344) | |||
Policyholder benefits and claims | (1,002) | |||
Other expenses | (261) | |||
Total expenses | (1,531) | |||
Income (loss) from continuing operations before provision for income tax | 187 | |||
Provision for income tax expense (benefit) | 108 | |||
Income (loss) from continuing operations, net of income tax | 79 | |||
Income (loss) from discontinued operations, net of income tax | (79) | |||
Net income (loss) | 0 | |||
Net income (loss) attributable to MetLife, Inc. | 0 | |||
Net Income (Loss) Available to Common Stockholders, Basic | 0 | |||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | |||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 0 | |||
Income (loss) from continuing operations, net of tax - Basic | $ 0.07 | |||
Income (loss) from continuing operations, net of tax - Diluted | 0.07 | |||
Income (loss) per common share - Basic | 0 | |||
Income (loss) per common share - Diluted | $ 0 | |||
Statement of Stockholders' Equity [Abstract] | ||||
Net income (loss) | $ 0 | |||
AOCI Attributable to Parent | ||||
Statement of Stockholders' Equity [Abstract] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 6,396 | 5,366 | ||
Other Comprehensive Income (Loss), Net of Tax | (2,705) | 1,030 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 5,634 | 6,396 | $ 7,427 | 5,366 |
AOCI Attributable to Parent | Scenario, Previously Reported | ||||
Statement of Stockholders' Equity [Abstract] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 6,396 | 5,347 | ||
Other Comprehensive Income (Loss), Net of Tax | 1,049 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 5,347 | |||
AOCI Attributable to Parent | Restatement Adjustment | ||||
Statement of Stockholders' Equity [Abstract] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0 | 19 | ||
Other Comprehensive Income (Loss), Net of Tax | (19) | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 19 | |||
Restatement impact in Net Income (loss) | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Assumed variable annuity guarantee reserves | 14 | |||
Reserves for Group Annuity products | (9) | |||
Other revisions to continuing operations, net | 63 | |||
Income Statement Related Disclosures [Abstract] | ||||
Income (loss) from continuing operations before provision for income tax | 68 | |||
Provision for income tax expense (benefit) | 24 | |||
Income (loss) from continuing operations, net of income tax | 44 | |||
Income (loss) from discontinued operations, net of income tax | 3 | |||
Net Income (Loss) Available to Common Stockholders, Basic | $ 47 |
Business, Basis of Presentati38
Business, Basis of Presentation and Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Retained Earnings (Accumulated Deficit) | $ 26,453 | $ 35,113 | $ 26,527 | $ 34,683 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 5,634 | 6,396 | 7,427 | $ 5,366 | |
Equity securities | 1,544 | 2,513 | |||
Fair Value Option And Trading Securities | 16,444 | 16,745 | |||
Other revenues | 474 | $ 342 | |||
Derivative assets | 7,924 | 8,551 | |||
Derivative liabilities | 4,075 | 4,339 | |||
Accrued Investment Income Receivable | 3,638 | 3,524 | |||
Premiums and Other Receivables, Net | 19,368 | 18,423 | |||
Payables For Collateral Under Securities Loaned And Other Transactions | 26,151 | 25,723 | |||
Other Liabilities | 24,013 | $ 23,982 | |||
Adjustments for New Accounting Pronouncement | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Retained Earnings (Accumulated Deficit) | $ (1,200) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 1,200 | ||||
Accounting Standards Update 2016-01 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Retained Earnings (Accumulated Deficit) | 328 | ||||
Equity securities | 1,700 | ||||
Fair Value Option And Trading Securities | $ 16,000 | ||||
Accounting Standards Update 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other revenues | 322 | ||||
LCH update impact | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Derivative assets | (369) | ||||
Derivative liabilities | (203) | ||||
Accrued Investment Income Receivable | (14) | ||||
Premiums and Other Receivables, Net | (184) | ||||
Payables For Collateral Under Securities Loaned And Other Transactions | (365) | ||||
Other Liabilities | 1 | ||||
U.S. | Accounting Standards Update 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Prepaid legal plans and administrative-only contracts | 129 | ||||
MetLife Holdings | Accounting Standards Update 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Distribution and Servicing Fees | 58 | ||||
Corporate & Other | Accounting Standards Update 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Fee-based investment management service revenue | $ 71 |
Segment Information (Earnings)
Segment Information (Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | ||
Premiums | $ 9,178 | $ 8,965 |
Universal life and investment-type product policy fees | 1,392 | 1,360 |
Net investment income | 3,745 | 4,421 |
Other revenues | 474 | 342 |
Net investment gains (losses) | (333) | 88 |
Net derivative gains (losses) | 349 | (212) |
Total revenues | 14,805 | 14,964 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 9,015 | 9,173 |
Interest credited to policyholder account balances | 769 | 1,451 |
Capitalization of DAC | (796) | (713) |
Amortization of DAC and VOBA | 693 | 663 |
Amortization of negative VOBA | (22) | (43) |
Interest expense on debt | 286 | 283 |
Other expenses | 3,204 | 3,078 |
Total expenses | 13,149 | 13,892 |
Provision for income tax expense (benefit) | 399 | 120 |
Income (loss) from continuing operations, net of income tax | 1,257 | 952 |
Operating Segments | ||
Revenues | ||
Premiums | 9,178 | 9,139 |
Universal life and investment-type product policy fees | 1,360 | 1,348 |
Net investment income | 4,219 | 4,172 |
Other revenues | 391 | 395 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 15,148 | 15,054 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 8,968 | 9,219 |
Interest credited to policyholder account balances | 1,117 | 1,036 |
Capitalization of DAC | (795) | (729) |
Amortization of DAC and VOBA | 697 | 645 |
Amortization of negative VOBA | (21) | (40) |
Interest expense on debt | 286 | 295 |
Other expenses | 3,110 | 2,941 |
Total expenses | 13,362 | 13,367 |
Provision for income tax expense (benefit) | 357 | 360 |
Adjusted earnings | 1,429 | 1,327 |
Operating Segments | U.S. | ||
Revenues | ||
Premiums | 5,217 | 5,185 |
Universal life and investment-type product policy fees | 258 | 265 |
Net investment income | 1,662 | 1,612 |
Other revenues | 204 | 204 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 7,341 | 7,266 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 5,138 | 5,244 |
Interest credited to policyholder account balances | 407 | 351 |
Capitalization of DAC | (106) | (100) |
Amortization of DAC and VOBA | 115 | 114 |
Amortization of negative VOBA | 0 | 0 |
Interest expense on debt | 2 | 2 |
Other expenses | 961 | 909 |
Total expenses | 6,517 | 6,520 |
Provision for income tax expense (benefit) | 171 | 249 |
Adjusted earnings | 653 | 497 |
Operating Segments | Asia | ||
Revenues | ||
Premiums | 1,748 | 1,708 |
Universal life and investment-type product policy fees | 394 | 366 |
Net investment income | 795 | 702 |
Other revenues | 15 | 10 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 2,952 | 2,786 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 1,343 | 1,315 |
Interest credited to policyholder account balances | 351 | 321 |
Capitalization of DAC | (465) | (420) |
Amortization of DAC and VOBA | 314 | 291 |
Amortization of negative VOBA | (15) | (37) |
Interest expense on debt | 0 | 0 |
Other expenses | 952 | 875 |
Total expenses | 2,480 | 2,345 |
Provision for income tax expense (benefit) | 145 | 146 |
Adjusted earnings | 327 | 295 |
Operating Segments | Latin America | ||
Revenues | ||
Premiums | 699 | 647 |
Universal life and investment-type product policy fees | 282 | 260 |
Net investment income | 276 | 303 |
Other revenues | 8 | 9 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 1,265 | 1,219 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 646 | 633 |
Interest credited to policyholder account balances | 98 | 82 |
Capitalization of DAC | (94) | (82) |
Amortization of DAC and VOBA | 60 | 78 |
Amortization of negative VOBA | 0 | 0 |
Interest expense on debt | 2 | 1 |
Other expenses | 338 | 326 |
Total expenses | 1,050 | 1,038 |
Provision for income tax expense (benefit) | 75 | 38 |
Adjusted earnings | 140 | 143 |
Operating Segments | EMEA | ||
Revenues | ||
Premiums | 551 | 502 |
Universal life and investment-type product policy fees | 112 | 95 |
Net investment income | 75 | 74 |
Other revenues | 16 | 17 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 754 | 688 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 294 | 269 |
Interest credited to policyholder account balances | 25 | 24 |
Capitalization of DAC | (118) | (92) |
Amortization of DAC and VOBA | 106 | 87 |
Amortization of negative VOBA | (6) | (3) |
Interest expense on debt | 0 | 0 |
Other expenses | 351 | 316 |
Total expenses | 652 | 601 |
Provision for income tax expense (benefit) | 21 | 12 |
Adjusted earnings | 81 | 75 |
Operating Segments | MetLife Holdings | ||
Revenues | ||
Premiums | 950 | 1,059 |
Universal life and investment-type product policy fees | 314 | 362 |
Net investment income | 1,352 | 1,441 |
Other revenues | 67 | 96 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 2,683 | 2,958 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 1,550 | 1,733 |
Interest credited to policyholder account balances | 236 | 257 |
Capitalization of DAC | (10) | (34) |
Amortization of DAC and VOBA | 100 | 74 |
Amortization of negative VOBA | 0 | 0 |
Interest expense on debt | 2 | 15 |
Other expenses | 276 | 340 |
Total expenses | 2,154 | 2,385 |
Provision for income tax expense (benefit) | 104 | 186 |
Adjusted earnings | 425 | 387 |
Operating Segments | Corporate & Other | ||
Revenues | ||
Premiums | 13 | 38 |
Universal life and investment-type product policy fees | 0 | 0 |
Net investment income | 59 | 40 |
Other revenues | 81 | 59 |
Net investment gains (losses) | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total revenues | 153 | 137 |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | (3) | 25 |
Interest credited to policyholder account balances | 0 | 1 |
Capitalization of DAC | (2) | (1) |
Amortization of DAC and VOBA | 2 | 1 |
Amortization of negative VOBA | 0 | 0 |
Interest expense on debt | 280 | 277 |
Other expenses | 232 | 175 |
Total expenses | 509 | 478 |
Provision for income tax expense (benefit) | (159) | (271) |
Adjusted earnings | (197) | (70) |
Significant Reconciling Items | ||
Revenues | ||
Premiums | 0 | (174) |
Universal life and investment-type product policy fees | 32 | 12 |
Net investment income | (474) | 249 |
Other revenues | 83 | (53) |
Net investment gains (losses) | (333) | 88 |
Net derivative gains (losses) | 349 | (212) |
Total revenues | (343) | (90) |
Expenses | ||
Policyholder benefits and claims and policyholder dividends | 47 | (46) |
Interest credited to policyholder account balances | (348) | 415 |
Capitalization of DAC | (1) | 16 |
Amortization of DAC and VOBA | (4) | 18 |
Amortization of negative VOBA | (1) | (3) |
Interest expense on debt | 0 | (12) |
Other expenses | 94 | 137 |
Total expenses | (213) | 525 |
Provision for income tax expense (benefit) | $ 42 | $ (240) |
Segment Information (Total Asse
Segment Information (Total Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 712,584 | $ 719,892 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Total assets | 251,496 | 255,428 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Total assets | 143,458 | 136,928 |
Latin America | ||
Segment Reporting Information [Line Items] | ||
Total assets | 78,638 | 79,670 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Total assets | 30,546 | 30,500 |
MetLife Holdings | ||
Segment Reporting Information [Line Items] | ||
Total assets | 175,817 | 183,160 |
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 32,629 | $ 34,206 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of segments | 5 |
Separation of Brighthouse (Deta
Separation of Brighthouse (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net investment gains (losses) | $ (333) | $ 88 | ||
Brighthouse Financial, Inc | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Common Stock, Shares, Owned by MetLife, INC. | 22,996,436 | |||
Discontinued Operation, Equity Method Investment Retained after Disposal, Ownership Interest after Disposal | 19.20% | |||
Equity Method Investment, Quoted Market Value | 1,200 | $ 1,300 | ||
Net investment gains (losses) | $ (168) | |||
Discontinued Operation, Separation Costs | $ 77 |
Separation of Brighthouse (Agre
Separation of Brighthouse (Agreements) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Other Assets | $ 8,387 | $ 8,167 |
Brighthouse Financial, Inc | ||
Related Party Transaction [Line Items] | ||
Income Taxes Receivable | 726 | 726 |
Payable to Brighthouse | (726) | (726) |
Other Assets | $ 333 | $ 333 |
Separation of Brighthouse (Effe
Separation of Brighthouse (Effects of Affiliated Reinsurance on Statements of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Premiums Earned, Net [Abstract] | ||
Premiums Earned, Net | $ 9,178 | $ 8,965 |
Fees and Commissions [Abstract] | ||
Insurance Commissions and Fees | 1,392 | 1,360 |
Policyholder Benefits and Claims Incurred, Net [Abstract] | ||
Policyholder benefits and claims | 8,718 | 8,863 |
Interest Credited To Policyholder Account Balances [Abstract] | ||
Interest Credited to Policyholders Account Balances | 769 | 1,451 |
Other Expenses | ||
Operating Expenses | 3,365 | 3,268 |
Affiliated Entity [Member] | Assumed Reinsurance [Member] | ||
Premiums Earned, Net [Abstract] | ||
Assumed Premiums Earned | 70 | |
Fees and Commissions [Abstract] | ||
Assumed Insurance Commissions And Fees | (1) | |
Policyholder Benefits and Claims Incurred, Net [Abstract] | ||
Policyholder Benefits and Claims Incurred, Assumed | 55 | |
Interest Credited To Policyholder Account Balances [Abstract] | ||
Assumed Interest Credited To Policyholders Account Balances | 3 | |
Other Expenses | ||
Assumed Operating Expenses | 6 | |
Affiliated Entity [Member] | Ceded Reinsurance [Member] | ||
Premiums Earned, Net [Abstract] | ||
Ceded Premiums Earned | (2) | |
Fees and Commissions [Abstract] | ||
Ceded Insurance Commissions And Fees | (22) | |
Policyholder Benefits and Claims Incurred, Net [Abstract] | ||
Policyholder Benefits and Claims Incurred, Ceded | (6) | |
Interest Credited To Policyholder Account Balances [Abstract] | ||
Ceded Interest Credited To Policyholders Account Balances | (12) | |
Other Expenses | ||
Ceded Operating Expenses | (7) | |
Affiliated Entity [Member] | Reinsurance [Member] | ||
Premiums Earned, Net [Abstract] | ||
Premiums Earned, Net | 68 | |
Fees and Commissions [Abstract] | ||
Insurance Commissions and Fees | (23) | |
Policyholder Benefits and Claims Incurred, Net [Abstract] | ||
Policyholder benefits and claims | 49 | |
Interest Credited To Policyholder Account Balances [Abstract] | ||
Interest Credited to Policyholders Account Balances | (9) | |
Other Expenses | ||
Operating Expenses | (1) | |
Brighthouse Financial, Inc | Assumed Reinsurance [Member] | ||
Premiums Earned, Net [Abstract] | ||
Assumed Premiums Earned | 96 | 97 |
Fees and Commissions [Abstract] | ||
Assumed Insurance Commissions And Fees | 1 | (4) |
Policyholder Benefits and Claims Incurred, Net [Abstract] | ||
Policyholder Benefits and Claims Incurred, Assumed | 78 | 75 |
Interest Credited To Policyholder Account Balances [Abstract] | ||
Assumed Interest Credited To Policyholders Account Balances | 4 | 4 |
Other Expenses | ||
Assumed Operating Expenses | 34 | (30) |
Brighthouse Financial, Inc | Ceded Reinsurance [Member] | ||
Premiums Earned, Net [Abstract] | ||
Ceded Premiums Earned | (3) | (3) |
Fees and Commissions [Abstract] | ||
Ceded Insurance Commissions And Fees | (24) | (24) |
Policyholder Benefits and Claims Incurred, Net [Abstract] | ||
Policyholder Benefits and Claims Incurred, Ceded | (10) | (6) |
Interest Credited To Policyholder Account Balances [Abstract] | ||
Ceded Interest Credited To Policyholders Account Balances | (18) | (18) |
Other Expenses | ||
Ceded Operating Expenses | (14) | (21) |
Brighthouse Financial, Inc | Reinsurance [Member] | ||
Premiums Earned, Net [Abstract] | ||
Premiums Earned, Net | 93 | 94 |
Fees and Commissions [Abstract] | ||
Insurance Commissions and Fees | (23) | (28) |
Policyholder Benefits and Claims Incurred, Net [Abstract] | ||
Policyholder benefits and claims | 68 | 69 |
Interest Credited To Policyholder Account Balances [Abstract] | ||
Interest Credited to Policyholders Account Balances | (14) | (14) |
Other Expenses | ||
Operating Expenses | $ 20 | $ (51) |
Separation of Brighthouse (Ef45
Separation of Brighthouse (Effects of Affiliated Reinsurance on Balance Sheets) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Assets [Abstract] | ||
Premiums, reinsurance and other receivables relating to variable interest entities | $ 19,368 | $ 18,423 |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net | 19,330 | 18,419 |
Liabilities [Abstract] | ||
Liability for Future Policy Benefits | 180,348 | 177,974 |
Other Policy-Related Balances | 16,023 | 15,515 |
Other Liabilities | 24,013 | 23,982 |
Assumed Reinsurance [Member] | Affiliated Entity [Member] | ||
Assets [Abstract] | ||
Premiums, reinsurance and other receivables relating to variable interest entities | 154 | 167 |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net | 390 | 384 |
Reinsurance Assets | 544 | 551 |
Liabilities [Abstract] | ||
Liability for Future Policy Benefits | 1,788 | 1,734 |
Other Policy-Related Balances | 116 | 119 |
Other Liabilities | 1,447 | 1,458 |
Reinsurance Liabilities | 3,351 | 3,311 |
Ceded Reinsurance [Member] | Affiliated Entity [Member] | ||
Assets [Abstract] | ||
Premiums, reinsurance and other receivables relating to variable interest entities | 1,802 | 1,793 |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net | (40) | (40) |
Reinsurance Assets | 1,762 | 1,753 |
Liabilities [Abstract] | ||
Liability for Future Policy Benefits | 0 | 0 |
Other Policy-Related Balances | 25 | 28 |
Other Liabilities | 25 | 19 |
Reinsurance Liabilities | $ 50 | $ 47 |
Separation of Brighthouse (Addi
Separation of Brighthouse (Additional Trans with Brighthouse - Investment and Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Line of Credit Facility [Line Items] | ||
Discontinued Operation after Disposal, Revenue | $ 29 | |
Brighthouse Financial, Inc | ||
Line of Credit Facility [Line Items] | ||
Revenue from Related Parties | $ 25 | |
Brighthouse Financial, Inc | Committed Credit Facility Six [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 2,900 | |
Letters of Credit Outstanding, Amount | $ 2,400 |
Separation of Brighthouse (Serv
Separation of Brighthouse (Service Agreements and Other) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Discontinued Operation after Disposal, Revenue | $ 29 | ||
Other Policy-Related Balances | 16,023 | $ 15,515 | |
Insurance Commissions and Fees | 1,392 | $ 1,360 | |
Brighthouse Financial, Inc | |||
Related Party Transaction [Line Items] | |||
Discontinued Operation after Disposal, Revenue | 79 | ||
Revenue from Related Parties | 81 | ||
Other Policy-Related Balances | 1,300 | 1,300 | |
Insurance Commissions and Fees | 32 | $ 31 | |
Employee matters agreement, impact of Separation | 186 | 186 | |
Related Party Transaction, Due from (to) Related Party | 87 | 97 | |
Related Party Transaction, Payable to affiliate | $ 48 | $ 50 |
Separation of Brighthouse (Inco
Separation of Brighthouse (Income Statement) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | $ (182) |
Discontinued Operation, Tax Effect of Discontinued Operation | (106) |
Income (loss) from discontinued operations before loss on disposal of discontinued operations, net of income tax | (76) |
Brighthouse Financial, Inc | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Group, Including Discontinued Operation, Other Income | 32 |
Disposal Group, Including Discontinued Operation, Revenue | 1,349 |
Disposal Group, Including Discontinued Operation, Other Expense | 261 |
Disposal Group, Including Discontinued Operation, Operating Expenses | 1,531 |
Brighthouse Financial, Inc | Premiums | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Group, Including Discontinued Operation, Revenue | 350 |
Brighthouse Financial, Inc | Universal life and investment-type product policy fees | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Group, Including Discontinued Operation, Revenue | 942 |
Brighthouse Financial, Inc | Net investment income | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Group, Including Discontinued Operation, Revenue | 775 |
Brighthouse Financial, Inc | Gain (Loss) on Investments | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Group, Including Discontinued Operation, Revenue | (50) |
Brighthouse Financial, Inc | Gain (Loss) on Derivative Instruments | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Group, Including Discontinued Operation, Revenue | (700) |
Brighthouse Financial, Inc | Policyholder benefits and claims | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Group, Including Discontinued Operation, Operating Expenses | 1,002 |
Brighthouse Financial, Inc | Interest credited to policyholder account balances | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Group, Including Discontinued Operation, Operating Expenses | 261 |
Brighthouse Financial, Inc | Policyholder dividend expense | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Group, Including Discontinued Operation, Operating Expenses | 7 |
Brighthouse Financial, Inc | Goodwill impairment | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Group, Including Discontinued Operation, Operating Expenses | $ 0 |
Separation of Brighthouse (Cash
Separation of Brighthouse (Cash flows) (Details) - Brighthouse Financial, Inc $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Operating activities | $ 302 |
Investing activities | 16 |
Financing activities | $ 266 |
Insurance (Guarantees Related t
Insurance (Guarantees Related to Annuity Contracts) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Variable Annuity Guarantees: | Guaranteed Death Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 64,728 | $ 66,724 |
Separate account value (1) | 43,714 | 45,431 |
Net amount at risk | $ 1,587 | $ 1,238 |
Average attained age of contractholders | 66 years | 65 years |
Variable Annuity Guarantees: | Guaranteed Annuitization Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 25,169 | $ 26,223 |
Separate account value (1) | 23,302 | 24,336 |
Net amount at risk | $ 510 | $ 525 |
Average attained age of contractholders | 66 years | 65 years |
Other Annuity Guarantees: | Guaranteed Annuitization Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 1,437 | $ 1,424 |
Net amount at risk | $ 559 | $ 569 |
Average attained age of contractholders | 50 years | 50 years |
Insurance (Guarantees Related51
Insurance (Guarantees Related to Universal and Variable Life Contracts) (Details) - Universal and Variable Life Contracts - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Secondary Guarantees | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (1), (3) | $ 9,089 | $ 9,036 |
Net amount at risk (7) | $ 66,762 | $ 66,956 |
Average attained age of policyholders | 57 years | 56 years |
Paid-Up Guarantees | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (1), (3) | $ 3,171 | $ 3,207 |
Net amount at risk (7) | $ 16,332 | $ 16,615 |
Average attained age of policyholders | 63 years | 63 years |
Insurance (Rollforward of Unpai
Insurance (Rollforward of Unpaid Claims) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Balance, beginning of period | $ 17,094 | $ 16,157 |
Less: Reinsurance Recoverables | 2,198 | 1,968 |
Net balance, beginning of period | 14,896 | 14,189 |
Incurred related to: | ||
Current period | 6,504 | 6,637 |
Prior periods (2) | (148) | (127) |
Total incurred | 6,356 | 6,510 |
Paid related to: | ||
Current period | (3,339) | (3,723) |
Prior periods | (2,719) | (2,604) |
Total paid | (6,058) | (6,327) |
Net balance, end of period | 15,194 | 14,372 |
Add: Reinsurance Recoverables | 2,237 | 2,123 |
Balance, end of period (included in future policy benefits and other policy-related balances) | $ 17,431 | 16,495 |
Restatement Adjustment | ||
Paid related to: | ||
Net balance, end of period | (131) | |
Add: Reinsurance Recoverables | $ 144 |
Closed Block (Liabilities and A
Closed Block (Liabilities and Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Closed Block Liabilities | |||
Future policy benefits | $ 40,285 | $ 40,463 | |
Other policy-related balances | 213 | 222 | |
Policyholder dividends payable | 462 | 437 | |
Policyholder dividend obligation | 1,277 | 2,121 | $ 1,931 |
Other liabilities | 285 | 212 | |
Total closed block liabilities | 42,522 | 43,455 | |
Assets Designated to the Closed Block | |||
Fixed maturity securities available-for-sale, at estimated fair value | 26,815 | 27,904 | |
Equity securities, at estimated fair value | 68 | 70 | |
Mortgage loans | 6,040 | 5,878 | |
Policy loans | 4,532 | 4,548 | |
Real estate and real estate joint ventures | 595 | 613 | |
Other invested assets | 607 | 731 | |
Total investments | 38,657 | 39,744 | |
Accrued investment income | 475 | 477 | |
Premiums, reinsurance and other receivables; cash and cash equivalents designated to the closed block | 208 | 14 | |
Current income tax recoverable | 40 | 35 | |
Deferred income tax assets | 23 | 36 | |
Total assets designated to the closed block | 39,403 | 40,306 | |
Excess of closed block liabilities over assets designated to the closed block | 3,119 | 3,149 | |
Amounts included in AOCI: | |||
Unrealized investment gains (losses), net of income tax | 1,711 | 1,863 | |
Unrealized gains (losses) on derivatives, net of income tax | (57) | (7) | |
Allocated to policyholder dividend obligation, net of income tax | (1,009) | (1,379) | |
Total amounts included in AOCI | 645 | 477 | |
Maximum future earnings to be recognized from closed block assets and liabilities | $ 3,764 | $ 3,626 |
Closed Block (Policyholder Divi
Closed Block (Policyholder Dividend Obligation) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Closed block policyholder dividend obligation | ||
Balance, beginning of period | $ 2,121 | $ 1,931 |
Change in unrealized investment and derivative gains (losses) | (844) | 190 |
Balance, end of period | $ 1,277 | $ 2,121 |
Closed Block (Revenues and Expe
Closed Block (Revenues and Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | ||
Premiums | $ 387 | $ 402 |
Net investment income | 444 | 466 |
Net investment gains (losses) | (29) | (8) |
Net derivative gains (losses) | (3) | (8) |
Total revenues | 799 | 852 |
Expenses | ||
Policyholder benefits and claims | 571 | 568 |
Policyholder dividends | 244 | 250 |
Other expenses | 29 | 32 |
Total expenses | 844 | 850 |
Revenues, net of expenses before provision for income tax expense (benefit) | (45) | 2 |
Provision for income tax expense (benefit) | (10) | 0 |
Revenues, net of expenses and provision for income tax expense (benefit) | $ (35) | $ 2 |
Investments (Fixed Maturity and
Investments (Fixed Maturity and Equity Securities Available-For-Sale by Sector) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | $ 287,099 | $ 286,069 |
Gross Unrealized OTTI Loss | 35 | 41 |
Available-for-sale Securities, Debt Securities | 304,711 | 308,931 |
Equity securities | $ 1,544 | $ 2,513 |
Percentage of Available-for-sale Equity Securities | 100.00% | 100.00% |
Fixed Maturity Securities | ||
Available-for-sale Securities [Abstract] | ||
Gross Unrealized Gain | $ 21,045 | $ 24,765 |
Gross Unrealized Temporary Loss | 3,467 | 1,945 |
Gross Unrealized OTTI Loss | (34) | (42) |
U.S. corporate | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 77,786 | 76,005 |
Gross Unrealized Gain | 5,105 | 7,007 |
Gross Unrealized Temporary Loss | 1,057 | 351 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 81,834 | 82,661 |
U.S. government and agency | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 40,989 | 43,446 |
Gross Unrealized Gain | 3,395 | 4,227 |
Gross Unrealized Temporary Loss | 557 | 279 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 43,827 | 47,394 |
Foreign government | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 58,423 | 55,351 |
Gross Unrealized Gain | 6,484 | 6,495 |
Gross Unrealized Temporary Loss | 397 | 312 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 64,510 | 61,534 |
Foreign corporate | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 52,894 | 52,409 |
Gross Unrealized Gain | 3,366 | 3,836 |
Gross Unrealized Temporary Loss | 797 | 676 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 55,463 | 55,569 |
RMBS | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 26,858 | 27,846 |
Gross Unrealized Gain | 999 | 1,145 |
Gross Unrealized Temporary Loss | 481 | 233 |
Gross Unrealized OTTI Loss | (35) | (42) |
Available-for-sale Securities, Debt Securities | 27,411 | 28,800 |
State and political subdivision | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 10,762 | 10,752 |
Gross Unrealized Gain | 1,473 | 1,717 |
Gross Unrealized Temporary Loss | 43 | 13 |
Gross Unrealized OTTI Loss | 0 | 1 |
Available-for-sale Securities, Debt Securities | 12,192 | 12,455 |
ABS | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 11,695 | 12,213 |
Gross Unrealized Gain | 111 | 116 |
Gross Unrealized Temporary Loss | 41 | 39 |
Gross Unrealized OTTI Loss | 1 | (1) |
Available-for-sale Securities, Debt Securities | 11,764 | 12,291 |
CMBS | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 7,692 | 8,047 |
Gross Unrealized Gain | 112 | 222 |
Gross Unrealized Temporary Loss | 94 | 42 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 7,710 | 8,227 |
Equity Securities | ||
Available-for-sale Securities [Abstract] | ||
Equity securities | 1,544 | 2,513 |
Common Stock | ||
Available-for-sale Securities [Abstract] | ||
Equity securities | $ 1,046 | $ 2,035 |
Percentage of Available-for-sale Equity Securities | 67.70% | 81.00% |
Non-redeemable preferred stock | ||
Available-for-sale Securities [Abstract] | ||
Equity securities | $ 498 | $ 478 |
Percentage of Available-for-sale Equity Securities | 32.30% | 19.00% |
Investments (Maturities of Fixe
Investments (Maturities of Fixed Maturity Securities) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost, Due in one year or less | $ 12,620 | |
Amortized Cost, Due after one year through five years | 60,639 | |
Amortized Cost, Due after five years through ten years | 61,373 | |
Amortized Cost, Due after ten years | 106,222 | |
Amortized Cost, Structured Securities | 46,245 | |
Amortized Cost, Subtotal | 287,099 | $ 286,069 |
Estimated Fair Value, Due in one year or less | 12,674 | |
Estimated Fair Value, Due after one year through five years | 62,809 | |
Estimated Fair Value, Due after five years through ten years | 63,919 | |
Estimated Fair Value, Due after ten years | 118,424 | |
Estimated Fair Value, Structured Securities | 46,885 | |
Available-for-sale Securities, Debt Securities | $ 304,711 | $ 308,931 |
Investments (Continuous Gross U
Investments (Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities Available-For-Sale) (Details) $ in Millions | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
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 | 5,111 | 2,598 |
Total number of securities in an unrealized loss position equal to or greater than 12 months | 1,887 | 1,955 |
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 | $ 70,303 | $ 41,943 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1,586 | 435 |
Equal to or Greater than 12 Months Estimated Fair Value | 21,980 | 23,375 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 1,847 | 1,468 |
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 | 20,465 | 5,604 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 642 | 92 |
Equal to or Greater than 12 Months Estimated Fair Value | 4,426 | 4,115 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 415 | 259 |
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 | 19,105 | 18,273 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 224 | 93 |
Equal to or Greater than 12 Months Estimated Fair Value | 3,378 | 3,560 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 333 | 186 |
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 | 4,510 | 4,234 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 137 | 83 |
Equal to or Greater than 12 Months Estimated Fair Value | 3,297 | 3,251 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 260 | 229 |
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 | 8,932 | 4,422 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 259 | 99 |
Equal to or Greater than 12 Months Estimated Fair Value | 5,835 | 6,802 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 538 | 577 |
RMBS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 10,855 | 6,359 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 237 | 50 |
Equal to or Greater than 12 Months Estimated Fair Value | 3,713 | 4,159 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 209 | 141 |
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 | 774 | 182 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 24 | 2 |
Equal to or Greater than 12 Months Estimated Fair Value | 302 | 346 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 19 | 12 |
ABS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 2,593 | 1,695 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 15 | 7 |
Equal to or Greater than 12 Months Estimated Fair Value | 551 | 729 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 27 | 31 |
CMBS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 3,069 | 1,174 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 48 | 9 |
Equal to or Greater than 12 Months Estimated Fair Value | 478 | 413 |
Equal to or Greater than 12 Months Gross Unrealized Loss | $ 46 | $ 33 |
Investments (Mortgage Loans by
Investments (Mortgage Loans by Portfolio Segment) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Company-held mortgage loans held-for-investment, net | ||||
Commercial mortgage loans | $ 46,690 | $ 44,375 | ||
Percentage of loans receivable on commercial mortgage loans | 65.70% | 64.60% | ||
Agricultural mortgage loans | $ 13,098 | $ 13,014 | ||
Percentage of loans receivable on agricultural mortgage loans | 18.40% | 18.90% | ||
Residential mortgage loans | $ 11,156 | $ 11,136 | ||
Percentage of loans receivable on residential mortgage loans | 15.70% | 16.20% | ||
Subtotal | $ 70,944 | $ 68,525 | ||
Percentage of loans receivable on subtotal | 99.80% | 99.70% | ||
Valuation allowances | $ (327) | $ (314) | $ (310) | $ (304) |
Percentage of loans receivable on valuation allowances | (0.40%) | (0.50%) | ||
Subtotal mortgage loans, net | $ 70,617 | $ 68,211 | ||
Percentage of loans receivable on subtotal mortgage loans held-for-investment, net | 99.40% | 99.20% | ||
Percentage of residential mortgage loans - FVO | 0.60% | 0.80% | ||
Total mortgage loans, net | $ 71,055 | $ 68,731 | ||
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 | $ 438 | $ 520 |
Investments (Mortgage Loans and
Investments (Mortgage Loans and Valuation Allowance by Portfolio Segment) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | $ 22 | $ 22 |
Recorded Investment | 21 | 21 |
Valuation Allowances | 2 | 2 |
Unpaid Principal Balance | 477 | 385 |
Recorded Investment | 439 | 351 |
Recorded Investment | 70,484 | 68,153 |
Valuation Allowances | 325 | 312 |
Carrying Value | 458 | 370 |
Commercial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Valuation Allowances | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Recorded Investment | 46,690 | 44,375 |
Valuation Allowances | 228 | 214 |
Carrying Value | 0 | 0 |
Agricultural | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | 22 | 22 |
Recorded Investment | 21 | 21 |
Valuation Allowances | 2 | 2 |
Unpaid Principal Balance | 101 | 27 |
Recorded Investment | 100 | 27 |
Recorded Investment | 12,977 | 12,966 |
Valuation Allowances | 39 | 39 |
Carrying Value | 119 | 46 |
Residential | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Valuation Allowances | 0 | 0 |
Unpaid Principal Balance | 376 | 358 |
Recorded Investment | 339 | 324 |
Recorded Investment | 10,817 | 10,812 |
Valuation Allowances | 58 | 59 |
Carrying Value | $ 339 | $ 324 |
Investments (Valuation Allowanc
Investments (Valuation Allowance Rollforward by Portfolio Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Mortgage Loans on Real Estate [Line Items] | ||
Balance, beginning of period | $ 314 | $ 304 |
Provision (release) | 14 | 10 |
Charge-offs, net of recoveries | (1) | (4) |
Balance, end of period | 327 | 310 |
Commercial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Balance, beginning of period | 214 | 202 |
Provision (release) | 14 | 5 |
Charge-offs, net of recoveries | 0 | 0 |
Balance, end of period | 228 | 207 |
Agricultural | ||
Mortgage Loans on Real Estate [Line Items] | ||
Balance, beginning of period | 41 | 39 |
Provision (release) | 0 | 0 |
Charge-offs, net of recoveries | 0 | 0 |
Balance, end of period | 41 | 39 |
Residential | ||
Mortgage Loans on Real Estate [Line Items] | ||
Balance, beginning of period | 59 | 63 |
Provision (release) | 0 | 5 |
Charge-offs, net of recoveries | (1) | (4) |
Balance, end of period | $ 58 | $ 64 |
Investments (Credit Quality of
Investments (Credit Quality of Commercial Mortgage Loans) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 46,690 | $ 44,375 |
% of Total | 100.00% | 100.00% |
Estimated Fair Value | $ 47,018 | $ 45,084 |
% of Total | 100.00% | 100.00% |
Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 40,914 | $ 38,757 |
% of Total | 87.60% | 87.40% |
Estimated Fair Value | $ 41,327 | $ 39,528 |
% of Total | 87.90% | 87.70% |
65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 4,521 | $ 4,400 |
% of Total | 9.70% | 9.90% |
Estimated Fair Value | $ 4,504 | $ 4,408 |
% of Total | 9.60% | 9.80% |
76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 601 | $ 502 |
% of Total | 1.30% | 1.10% |
Estimated Fair Value | $ 574 | $ 476 |
% of Total | 1.20% | 1.00% |
Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 654 | $ 716 |
% of Total | 1.40% | 1.60% |
Estimated Fair Value | $ 613 | $ 672 |
% of Total | 1.30% | 1.50% |
Greater than 1.20x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 44,651 | $ 41,892 |
Greater than 1.20x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 39,705 | 37,073 |
Greater than 1.20x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 4,280 | 4,183 |
Greater than 1.20x | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 265 | 235 |
Greater than 1.20x | Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 401 | 401 |
1.00x - 1.20x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 1,507 | 1,959 |
1.00x - 1.20x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 1,023 | 1,483 |
1.00x - 1.20x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 98 | 98 |
1.00x - 1.20x | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 210 | 210 |
1.00x - 1.20x | Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 176 | 168 |
Less than 1.00x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 532 | 524 |
Less than 1.00x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 186 | 201 |
Less than 1.00x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 143 | 119 |
Less than 1.00x | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 126 | 57 |
Less than 1.00x | Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 77 | $ 147 |
Investments (Credit Quality o63
Investments (Credit Quality of Agricultural and Residential Mortgage Loans) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded Investment | $ 13,098 | $ 13,014 |
% of Total | 100.00% | 100.00% |
Residential Mortgage Loans - by Credit Quality Indicator: | ||
Recorded Investment | $ 11,156 | $ 11,136 |
% of Total | 100.00% | 100.00% |
Less than 65% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded Investment | $ 12,433 | $ 12,347 |
% of Total | 94.90% | 94.90% |
65% to 75% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded Investment | $ 616 | $ 618 |
% of Total | 4.70% | 4.70% |
76% to 80% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded Investment | $ 40 | $ 40 |
% of Total | 0.30% | 0.30% |
Greater than 80% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded Investment | $ 9 | $ 9 |
% of Total | 0.10% | 0.10% |
Performing | ||
Residential Mortgage Loans - by Credit Quality Indicator: | ||
Recorded Investment | $ 10,748 | $ 10,622 |
% of Total | 96.30% | 95.40% |
Nonperforming | ||
Residential Mortgage Loans - by Credit Quality Indicator: | ||
Recorded Investment | $ 408 | $ 514 |
% of Total | 3.70% | 4.60% |
Investments (Past Due and Inter
Investments (Past Due and Interest Accrual Status of Mortgage Loans) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past Due | $ 628 | $ 648 |
Loans and Leases Receivable, Nonperforming, Accrual of Interest | 156 | 158 |
Nonaccrual Status | 473 | 517 |
Commercial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past Due | 1 | 0 |
Loans and Leases Receivable, Nonperforming, Accrual of Interest | 0 | 0 |
Nonaccrual Status | 1 | 0 |
Agricultural | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past Due | 219 | 134 |
Loans and Leases Receivable, Nonperforming, Accrual of Interest | 114 | 125 |
Nonaccrual Status | 106 | 36 |
Residential | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past Due | 408 | 514 |
Loans and Leases Receivable, Nonperforming, Accrual of Interest | 42 | 33 |
Nonaccrual Status | $ 366 | $ 481 |
Investments (Net Unrealized Inv
Investments (Net Unrealized Investment Gains Losses) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Components of net unrealized investment gains (losses) included in accumulated other comprehensive loss | ||
Fixed maturity securities | $ 17,545 | $ 22,645 |
Fixed maturity securities with noncredit OTTI losses included in AOCI | 35 | 41 |
Total fixed maturity securities | 17,580 | 22,686 |
Equity securities | 0 | 421 |
Derivatives | 936 | 1,453 |
Other | 136 | 46 |
Subtotal | 18,652 | 24,606 |
Future policy benefits | (138) | (77) |
DAC, VOBA and DSI | (1,304) | (1,768) |
Policyholder dividend obligation | (1,277) | (2,121) |
Subtotal | (2,719) | (3,966) |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | (5) | (12) |
Deferred income tax benefit (expense) | (4,372) | (6,958) |
Net unrealized investment gains (losses) | 11,556 | 13,670 |
Net unrealized investment gains (losses) attributable to noncontrolling interests | (9) | (8) |
Net unrealized investment gains (losses) attributable to MetLife, Inc. | $ 11,547 | $ 13,662 |
Investments (Changes in Net Unr
Investments (Changes in Net Unrealized Investment Gains Losses) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Changes In Net Unrealized Investment Gains Losses Included In Accumulated Other Comprehensive Loss [Abstract] | |
Balance, beginning of period | $ 13,662 |
Changes In Net Unrealized Investment Gains Losses Related To Cumulative Effects Of Changes In Accounting Principles, Net Of Income Tax | 1,258 |
Fixed maturity securities on which noncredit OTTI losses have been recognized | (6) |
Unrealized investment gains (losses) during the period | (5,523) |
Unrealized investment gains (losses) relating to: | |
Future policy benefits | (61) |
DAC, VOBA and DSI | 464 |
Policyholder dividend obligation | 844 |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | 7 |
Deferred income tax benefit (expense) | 903 |
Net unrealized investment gains (losses) | 11,548 |
Net unrealized investment gains (losses) attributable to noncontrolling interests | (1) |
Balance, end of period | 11,547 |
Change in net unrealized investment gains (losses) | (2,114) |
Change in net unrealized investment gains (losses) attributable to noncontrolling interests | (1) |
Change in net unrealized investment gains (losses) attributable to MetLife, Inc. | $ (2,115) |
Investments (Securities Lending
Investments (Securities Lending) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | $ 18,111 | $ 19,417 |
Security collateral on deposit from counterparties | 41 | 19 |
Reinvestment portfolio — estimated fair value | 18,149 | 19,508 |
Amortized cost | ||
Securities Financing Transaction [Line Items] | ||
Securities loaned | 17,047 | 17,801 |
Estimated fair value | ||
Securities Financing Transaction [Line Items] | ||
Securities loaned | $ 17,812 | $ 19,028 |
Investments (Securities Lendi68
Investments (Securities Lending Remaining Tenor) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Securities Financing Transaction [Line Items] | ||
Total | $ 18,111 | $ 19,417 |
U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Total | 17,044 | 18,391 |
Foreign government | ||
Securities Financing Transaction [Line Items] | ||
Total | 1,067 | 1,026 |
Maturity Overnight | ||
Securities Financing Transaction [Line Items] | ||
Total | 3,493 | 3,753 |
Maturity Overnight | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Total | 3,493 | 3,753 |
Maturity Overnight | Foreign government | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 0 |
Maturity Less than 30 Days | ||
Securities Financing Transaction [Line Items] | ||
Total | 6,594 | 6,223 |
Maturity Less than 30 Days | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Total | 6,282 | 6,031 |
Maturity Less than 30 Days | Foreign government | ||
Securities Financing Transaction [Line Items] | ||
Total | 312 | 192 |
Maturity 30 to 180 Days [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total | 8,024 | 9,441 |
Maturity 30 to 180 Days [Member] | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Total | 7,269 | 8,607 |
Maturity 30 to 180 Days [Member] | Foreign government | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 755 | $ 834 |
Investments (Repurchase Agreeme
Investments (Repurchase Agreements - Securities Lending) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | $ 18,111 | $ 19,417 |
Reinvestment portfolio — estimated fair value | 18,149 | 19,508 |
Repurchase Agreements [Member] | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral on deposit from counterparties | 2,861 | 1,102 |
Reinvestment portfolio — estimated fair value | 2,854 | 1,102 |
Repurchase Agreements [Member] | Amortized cost | ||
Securities Financing Transaction [Line Items] | ||
Securities Sold under Agreements to Repurchase | 2,796 | 994 |
Repurchase Agreements [Member] | Estimated fair value | ||
Securities Financing Transaction [Line Items] | ||
Securities Sold under Agreements to Repurchase | $ 2,927 | $ 1,141 |
Investments (Repurchase Agree70
Investments (Repurchase Agreements - Securities Lending Remaining Tenor) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Securities Financing Transaction [Line Items] | ||
Total | $ 18,111 | $ 19,417 |
Repurchase Agreements [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total | 2,861 | 1,102 |
U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Total | 17,044 | 18,391 |
U.S. government and agency | Repurchase Agreements [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total | 2,765 | 1,005 |
Other Debt Obligations [Member] | Repurchase Agreements [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total | 96 | 97 |
Maturity Less than 30 Days | ||
Securities Financing Transaction [Line Items] | ||
Total | 6,594 | 6,223 |
Maturity Less than 30 Days | Repurchase Agreements [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total | 2,760 | 1,049 |
Maturity Less than 30 Days | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Total | 6,282 | 6,031 |
Maturity Less than 30 Days | U.S. government and agency | Repurchase Agreements [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total | 2,760 | 1,005 |
Maturity Less than 30 Days | Other Debt Obligations [Member] | Repurchase Agreements [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total | 0 | 44 |
Maturity 30 to 180 Days [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total | 8,024 | 9,441 |
Maturity 30 to 180 Days [Member] | Repurchase Agreements [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total | 101 | 53 |
Maturity 30 to 180 Days [Member] | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Total | 7,269 | 8,607 |
Maturity 30 to 180 Days [Member] | U.S. government and agency | Repurchase Agreements [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total | 5 | 0 |
Maturity 30 to 180 Days [Member] | Other Debt Obligations [Member] | Repurchase Agreements [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 96 | $ 53 |
Investments Investments (FHLB B
Investments Investments (FHLB Boston Advance Agreements Remaining Tenor) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 800 | $ 300 |
Foreign Government Debt Securities [Member] | Maturity 30 to 180 Days [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | 625 | 300 |
Foreign Government Debt Securities [Member] | Maturity 180 to 360 Days [Member] [Domain] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | 75 | 0 |
Foreign Government Debt Securities [Member] | Maturity Less than 30 Days [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 100 | $ 0 |
Investments (Invested Assets on
Investments (Invested Assets on Deposit, Held In Trust and Pledged as Collateral) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Invested assets on deposit (regulatory deposits) | $ 2,079 | $ 1,879 |
Invested assets held in trust (collateral financing arrangement and reinsurance agreements) | 2,586 | 2,490 |
Invested assets pledged as collateral | 25,198 | 24,174 |
Total invested assets on deposit, held in trust and pledged as collateral | $ 29,863 | $ 28,543 |
Investments (Consolidated Varia
Investments (Consolidated Variable Interest Entities) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Total Assets | $ 141 | $ 148 |
Total Liabilities | 7 | 9 |
Partnership [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 109 | 116 |
Total Liabilities | 1 | 3 |
Other | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 32 | 32 |
Total Liabilities | $ 6 | $ 6 |
Investments (Unconsolidated Var
Investments (Unconsolidated Variable Interest Entities) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | $ 54,192 | $ 56,381 |
Carrying Amount Liability | 58,700 | 60,429 |
Other limited partnership interests | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 4,941 | 4,834 |
Carrying Amount Liability | 9,187 | 8,543 |
Other invested assets | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 2,300 | 2,291 |
Carrying Amount Liability | 2,557 | 2,625 |
Other | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 41 | 82 |
Carrying Amount Liability | 46 | 87 |
Structured securities (RMBS, CMBS, and ABS) | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 45,555 | 47,614 |
Carrying Amount Liability | 45,555 | 47,614 |
U.S. corporate and foreign corporate securities | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 1,355 | 1,560 |
Carrying Amount Liability | $ 1,355 | $ 1,560 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net Investment Income [Line Items] | ||
Less: Investment expenses | $ 302 | $ 261 |
Subtotal | 3,745 | 4,421 |
Securities Investment | ||
Net Investment Income [Line Items] | ||
Subtotal | 4,400 | 4,266 |
Subtotal | 4,098 | 4,005 |
Fixed maturity securities | ||
Net Investment Income [Line Items] | ||
Subtotal | 2,896 | 2,825 |
Equity Securities | ||
Net Investment Income [Line Items] | ||
Subtotal | 16 | 31 |
Actively traded securities and FVO general account securities | ||
Net Investment Income [Line Items] | ||
Subtotal | 6 | 29 |
Mortgage loans | ||
Net Investment Income [Line Items] | ||
Subtotal | 792 | 736 |
Policy loans | ||
Net Investment Income [Line Items] | ||
Subtotal | 124 | 127 |
Real estate and real estate joint ventures | ||
Net Investment Income [Line Items] | ||
Subtotal | 168 | 153 |
Other limited partnership interests | ||
Net Investment Income [Line Items] | ||
Subtotal | 207 | 240 |
Cash, cash equivalents and short-term investments | ||
Net Investment Income [Line Items] | ||
Subtotal | 72 | 51 |
Operating joint ventures | ||
Net Investment Income [Line Items] | ||
Subtotal | 13 | 2 |
Other | ||
Net Investment Income [Line Items] | ||
Subtotal | 106 | 72 |
FVO contractholder-directed unit-linked investments | ||
Net Investment Income [Line Items] | ||
Subtotal | $ (353) | $ 416 |
Investments (Components of Net
Investments (Components of Net Investment Gains Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Changes In Estimated Fair Value Subsequent To Purchase For Equity Securities | $ (37) | |
Marketable Securities, Gain (Loss) [Abstract] | ||
Fixed maturity securities — net gains (losses) on sales and disposals | (95) | $ (2) |
Equity securities — net gains (losses) on sales and disposals | 102 | 43 |
Change In Estimated Fair Value Of Equity Securities | (133) | 0 |
Other net investment gains (losses): | ||
Mortgage loans | (21) | (12) |
Real estate and real estate joint ventures | 25 | (3) |
Other limited partnership interests | 0 | (7) |
Other | (130) | (26) |
Subtotal | (252) | (15) |
FVO CSEs - changes in estimated fair value subsequent to consolidation: | ||
Change In Estimated Fair Value Of Other Limited Partnership Interests And Real Estate Joint Ventures | (5) | 0 |
Non-investment portfolio gains (losses) (2) | (76) | 103 |
Subtotal | (81) | 103 |
Total net investment gains (losses) | (333) | 88 |
Fixed Maturity Securities | ||
Marketable Securities, Gain (Loss) [Abstract] | ||
Total OTTI losses recognized in earnings | 0 | 0 |
Net investment gains (losses) | (95) | (2) |
Equity Securities | ||
Marketable Securities, Gain (Loss) [Abstract] | ||
Total OTTI losses recognized in earnings | 0 | (8) |
Net investment gains (losses) | (31) | 35 |
Nonredeemable Preferred Stock [Member] | ||
Marketable Securities, Gain (Loss) [Abstract] | ||
Total OTTI losses recognized in earnings | 0 | (1) |
Common Stock | ||
Marketable Securities, Gain (Loss) [Abstract] | ||
Total OTTI losses recognized in earnings | $ 0 | $ (7) |
Investments (Sales or Disposals
Investments (Sales or Disposals and Impairments of Fixed Maturity and Equity Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fixed Maturity Securities | ||
Components of Sales or Disposals of Fixed Maturity and Equity Securities | ||
Proceeds | $ 19,070 | $ 14,461 |
Gross investment gains | 106 | 142 |
Gross investment losses | (201) | (144) |
Total OTTI losses recognized in earnings: | ||
Total OTTI losses recognized in earnings | 0 | 0 |
Net investment gains (losses) | (95) | (2) |
Equity Securities | ||
Total OTTI losses recognized in earnings: | ||
Total OTTI losses recognized in earnings | 0 | (8) |
Net investment gains (losses) | $ (31) | $ 35 |
Investments (Credit Loss Rollfo
Investments (Credit Loss Rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Cash Flows | $ (1) | $ 0 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Balance, beginning of period | 138 | 187 |
Reduction: | ||
Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI | (9) | (17) |
Balance, end of period | $ 128 | $ 170 |
Investments (Fixed Maturity a79
Investments (Fixed Maturity and Equity Securities Available-For-Sale - Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Federal Home Loan Bank Stock | $ 791 | |
Summary of Certain Fixed Maturity Securities | ||
Gross Unrealized OTTI Loss | $ (35) | (41) |
Available-for-sale Securities, Debt Securities | 304,711 | 308,931 |
CMBS | ||
Summary of Certain Fixed Maturity Securities | ||
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 7,710 | 8,227 |
Non-income producing fixed maturity securities | ||
Summary of Certain Fixed Maturity Securities | ||
Available-for-sale Securities, Debt Securities | 24 | 6 |
Gross Unrealized Gain | $ (1) | $ (4) |
Investments (Evaluation of Avai
Investments (Evaluation of Available-For-Sale Securities for OTTI and Evaluating Temporarily Impaired AFS Securities - Narrative) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)Contracts | Dec. 31, 2017USD ($) | |
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 | $ (1,500) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 3,400 | |
Gross Unrealized Temporary Loss | 1,847 | $ 1,468 |
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 | $ 85 | |
Number of Securities | Contracts | 28 | |
External Credit Rating, Non Investment Grade | 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 | $ 45 | |
Number of Securities | Contracts | 17 | |
Percentage of gross unrealized loss | 53.00% | |
External Credit Rating, Investment Grade | 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 | $ 40 | |
Number of Securities | Contracts | 11 | |
Percentage of gross unrealized loss | 47.00% |
Investments (Mortgage Loans - N
Investments (Mortgage Loans - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Mortgage Loans on Real Estate [Line Items] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses | $ 1 | $ 4 | |
Financing Receivable, Significant Purchases | $ 307 | 762 | |
Percentage of Mortgage Loans Classified as Performing | 99.00% | 99.00% | |
Commercial | |||
Mortgage Loans on Real Estate [Line Items] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses | $ 0 | 0 | |
Impaired Financing Receivable, Average Recorded Investment | 0 | 12 | |
Agricultural | |||
Mortgage Loans on Real Estate [Line Items] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses | 0 | 0 | |
Impaired Financing Receivable, Average Recorded Investment | 84 | 25 | |
Estimated fair value of mortgage loans held-for-investment | 13,000 | $ 13,100 | |
Residential | |||
Mortgage Loans on Real Estate [Line Items] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses | 1 | 4 | |
Impaired Financing Receivable, Average Recorded Investment | 331 | $ 253 | |
Estimated fair value of mortgage loans held-for-investment | $ 11,800 | $ 11,600 |
Investments (Cash Equivalents -
Investments (Cash Equivalents - Narrative) (Details) - USD ($) $ in Billions | Mar. 31, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Cash equivalents | $ 6.3 | $ 6.2 |
Investments (Concentrations of
Investments (Concentrations of Credit Risk - Narrative) (Details) - USD ($) $ in Billions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
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 | $ 30.7 | $ 27.5 |
Foreign government | KOREA, REPUBLIC OF | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Government and agency fixed maturity securities | $ 6.4 | $ 6.5 |
Investments (Securities Lendi84
Investments (Securities Lending Remaining Tenor - Narrative) (Details) - Estimated fair value $ in Billions | Mar. 31, 2018USD ($) |
Securities Financing Transaction [Line Items] | |
Cash collateral on deposit from counterparties | $ 3.4 |
Securities Investment | |
Securities Financing Transaction [Line Items] | |
Percentage of Reinvestment Portfolio in Fixed Maturity Securities | 60.00% |
Investments (Repurchase Agree85
Investments (Repurchase Agreements - Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Securities Financing Transaction [Line Items] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | $ 1,300 | $ 564 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 800 | 300 |
Repurchase Agreements [Member] | ||
Securities Financing Transaction [Line Items] | ||
Percentage of Reinvestment Portfolio in Fixed Maturity Securities | 64.00% | |
U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 804 | $ 300 |
Investments (Variable Interest
Investments (Variable Interest Entities - Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Tax credits guaranteed by third parties that reduce maximum exposure to loss related to other invested assets | $ 113 | $ 117 |
Investments (Net Investment I87
Investments (Net Investment Income - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Net Investment Income [Line Items] | |||
Fair Value Option And Trading Securities | $ 16,444 | $ 16,745 | |
FVO contractholder-directed unit-linked investments | |||
Net Investment Income [Line Items] | |||
Changes in estimated fair value included in net investment income | $ (373) | $ 340 |
Investments (Net Investment Gai
Investments (Net Investment Gains Losses - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Gains (losses) from foreign currency transactions | $ 65 | $ 80 |
Gain (Loss) on Sales of Loans, Net | (21) | (12) |
Non-investment portfolio gains (losses) (2) | (76) | 103 |
Gain (Loss) on Sale of Debt Investments | (95) | $ (2) |
FVO Common Stock [Member] | Brighthouse Financial, Inc | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Non-investment portfolio gains (losses) (2) | $ 168 |
Derivatives (Primary Risks) (De
Derivatives (Primary Risks) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | $ 262,217 | $ 275,916 |
Estimated Fair Value Assets | 7,924 | 8,551 |
Estimated Fair Value Liabilities | 4,075 | 4,339 |
Derivatives Designated as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 56,148 | 57,020 |
Estimated Fair Value Assets | 3,662 | 3,764 |
Estimated Fair Value Liabilities | 2,320 | 2,023 |
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 7,144 | 8,212 |
Estimated Fair Value Assets | 2,273 | 2,341 |
Estimated Fair Value Liabilities | 42 | 58 |
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 2,521 | 3,843 |
Estimated Fair Value Assets | 2,111 | 2,289 |
Estimated Fair Value Liabilities | 2 | 3 |
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member] | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,146 | 1,116 |
Estimated Fair Value Assets | 65 | 50 |
Estimated Fair Value Liabilities | 36 | 18 |
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member] | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 3,477 | 3,253 |
Estimated Fair Value Assets | 97 | 2 |
Estimated Fair Value Liabilities | 4 | 37 |
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 39,959 | 39,068 |
Estimated Fair Value Assets | 1,368 | 1,377 |
Estimated Fair Value Liabilities | 2,010 | 1,797 |
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 3,580 | 3,584 |
Estimated Fair Value Assets | 158 | 235 |
Estimated Fair Value Liabilities | 14 | 4 |
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | Interest rate forwards | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 3,143 | 3,332 |
Estimated Fair Value Assets | 0 | 0 |
Estimated Fair Value Liabilities | 218 | 128 |
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 33,236 | 32,152 |
Estimated Fair Value Assets | 1,210 | 1,142 |
Estimated Fair Value Liabilities | 1,778 | 1,665 |
Derivatives Designated as Hedging Instruments: | Foreign Operations Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 9,045 | 9,740 |
Estimated Fair Value Assets | 21 | 46 |
Estimated Fair Value Liabilities | 268 | 168 |
Derivatives Designated as Hedging Instruments: | Foreign Operations Hedges [Member] | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 458 | 332 |
Estimated Fair Value Assets | 2 | 2 |
Estimated Fair Value Liabilities | 5 | 5 |
Derivatives Designated as Hedging Instruments: | Foreign Operations Hedges [Member] | Currency options | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 8,587 | 9,408 |
Estimated Fair Value Assets | 19 | 44 |
Estimated Fair Value Liabilities | 263 | 163 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 206,069 | 218,896 |
Estimated Fair Value Assets | 4,262 | 4,787 |
Estimated Fair Value Liabilities | 1,755 | 2,316 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 52,610 | 60,485 |
Estimated Fair Value Assets | 1,597 | 2,203 |
Estimated Fair Value Liabilities | 279 | 576 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate forwards | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 217 | 217 |
Estimated Fair Value Assets | 0 | 0 |
Estimated Fair Value Liabilities | 51 | 42 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate floors | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 7,201 | 7,201 |
Estimated Fair Value Assets | 66 | 92 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate caps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 46,020 | 53,079 |
Estimated Fair Value Assets | 221 | 78 |
Estimated Fair Value Liabilities | 2 | 2 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate futures | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 2,991 | 4,366 |
Estimated Fair Value Assets | 2 | 2 |
Estimated Fair Value Liabilities | 3 | 4 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate options | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 14,816 | 12,009 |
Estimated Fair Value Assets | 575 | 656 |
Estimated Fair Value Liabilities | 0 | 11 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity total return swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,048 | 1,048 |
Estimated Fair Value Assets | 14 | 8 |
Estimated Fair Value Liabilities | 25 | 2 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Synthetic GICs | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 11,720 | 11,318 |
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 | 10,773 | 9,902 |
Estimated Fair Value Assets | 580 | 693 |
Estimated Fair Value Liabilities | 461 | 506 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 13,803 | 12,238 |
Estimated Fair Value Assets | 295 | 79 |
Estimated Fair Value Liabilities | 67 | 190 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Currency futures | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 900 | 846 |
Estimated Fair Value Assets | 0 | 2 |
Estimated Fair Value Liabilities | 8 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Currency options | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 2,391 | 3,123 |
Estimated Fair Value Assets | 9 | 55 |
Estimated Fair Value Liabilities | 0 | 6 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Credit default swaps — purchased | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,888 | 2,020 |
Estimated Fair Value Assets | 5 | 7 |
Estimated Fair Value Liabilities | 41 | 43 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Credit default swaps — written | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 11,421 | 11,375 |
Estimated Fair Value Assets | 210 | 271 |
Estimated Fair Value Liabilities | 2 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity futures | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 3,088 | 4,005 |
Estimated Fair Value Assets | 7 | 18 |
Estimated Fair Value Liabilities | 19 | 4 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity index options | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 19,509 | 19,886 |
Estimated Fair Value Assets | 594 | 569 |
Estimated Fair Value Liabilities | 603 | 690 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity variance swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 4,661 | 4,661 |
Estimated Fair Value Assets | 52 | 54 |
Estimated Fair Value Liabilities | 194 | 199 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity total return swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,012 | 1,117 |
Estimated Fair Value Assets | 35 | 0 |
Estimated Fair Value Liabilities | $ 0 | $ 41 |
Derivatives (Net Derivative Gai
Derivatives (Net Derivative Gains Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Components of Net Derivatives Gains (Losses) | ||
Derivatives and hedging gains (losses) | $ 312 | $ (369) |
Embedded derivatives gains (losses) | 37 | 157 |
Total net derivative gains (losses) | $ 349 | $ (212) |
Derivatives (Earned Income On D
Derivatives (Earned Income On Derivatives) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest Income (Expense), Nonoperating, Net | $ 191 | $ 236 |
Derivatives Designated as Hedging Instruments: | Net investment income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest Income (Expense), Nonoperating, Net | 81 | 75 |
Derivatives Designated as Hedging Instruments: | Interest credited to policyholder account balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest Income (Expense), Nonoperating, Net | (23) | (6) |
Derivatives Designated as Hedging Instruments: | Other expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest Income (Expense), Nonoperating, Net | (2) | (3) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest Income (Expense), Nonoperating, Net | 133 | 168 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder benefits and claims | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest Income (Expense), Nonoperating, Net | $ 2 | $ 2 |
Derivatives (Gains Losses Recog
Derivatives (Gains Losses Recognized in Income Not Designated or Qualifying) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ (40) | $ (7) |
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 | 203 | (357) |
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 | (235) | (390) |
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 | 387 | 363 |
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 | (3) | (8) |
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 | (44) | 32 |
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 | 98 | (354) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net investment income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 5 | (1) |
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 | 4 | 2 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net investment income | Foreign currency exchange rate derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net investment income | Credit derivatives — purchased | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 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 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net investment income | Equity derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 1 | (3) |
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 | 7 | (70) |
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 | (7) | 2 |
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 | 2 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder benefits and claims | Credit derivatives — purchased | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder benefits and claims | Credit derivatives — written | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder benefits and claims | Equity derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ 12 | $ (72) |
Derivatives (Fair Value Hedges)
Derivatives (Fair Value Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Components Excluded from Assessment of Foreign Currency Fair Value Hedge Effectiveness | $ (8) | $ (7) |
Net Derivative Gains (Losses) Recognized for Derivatives | (40) | (7) |
Net Derivative Gains (Losses) Recognized for Hedged Items | 51 | 13 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | 11 | 6 |
Interest rate swaps | Fixed Maturity Securities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Derivative Gains (Losses) Recognized for Derivatives | 3 | 1 |
Net Derivative Gains (Losses) Recognized for Hedged Items | (2) | (1) |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | 1 | 0 |
Interest rate swaps | Policyholder account balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Derivative Gains (Losses) Recognized for Derivatives | (213) | (51) |
Net Derivative Gains (Losses) Recognized for Hedged Items | 212 | 50 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | (1) | (1) |
Foreign currency swaps | Foreign-denominated fixed maturity securities and mortgage loans | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Derivative Gains (Losses) Recognized for Derivatives | (27) | (3) |
Net Derivative Gains (Losses) Recognized for Hedged Items | 27 | 3 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | 0 | 0 |
Foreign currency swaps | Foreign-denominated policyholder account balances [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Derivative Gains (Losses) Recognized for Derivatives | 18 | 1 |
Net Derivative Gains (Losses) Recognized for Hedged Items | (18) | 2 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | 0 | 3 |
Foreign currency forwards | Foreign-denominated fixed maturity securities and mortgage loans | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Derivative Gains (Losses) Recognized for Derivatives | 179 | 45 |
Net Derivative Gains (Losses) Recognized for Hedged Items | (168) | (41) |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | $ 11 | $ 4 |
Derivatives (Cash Flow Hedges)
Derivatives (Cash Flow Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | $ 11,421 | $ 11,375 | |
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | $ 1 | $ 20 | |
Maximum Length of Time Hedged in Cash Flow Hedge | 4 years | 5 years | |
Accumulated Other Comprehensive Income Loss | $ 900 | $ 1,500 | |
Cash Flow Hedges [Member] | |||
Derivatives in cash flow hedging relationships | |||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | (352) | 229 | |
Cash Flow Hedges [Member] | Interest rate swaps | |||
Derivatives in cash flow hedging relationships | |||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | (173) | 5 | |
Cash Flow Hedges [Member] | Foreign currency swaps | |||
Derivatives in cash flow hedging relationships | |||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | (75) | 180 | |
Cash Flow Hedges [Member] | Credit forwards [Member] | |||
Derivatives in cash flow hedging relationships | |||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | 0 | 0 | |
Cash Flow Hedges [Member] | Interest rate forwards | |||
Derivatives in cash flow hedging relationships | |||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | (104) | 44 | |
Cash Flow Hedges [Member] | 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) | 160 | 212 | |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (1) | 3 | |
Cash Flow Hedges [Member] | 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) | 16 | 8 | |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (2) | 1 | |
Cash Flow Hedges [Member] | 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) | 139 | 208 | |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 1 | 2 | |
Cash Flow Hedges [Member] | 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) | 0 | 0 | |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | |
Cash Flow Hedges [Member] | 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) | 5 | (4) | |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | |
Cash Flow Hedges [Member] | Net Investment Income | |||
Derivatives in cash flow hedging relationships | |||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 4 | 4 | |
Cash Flow Hedges [Member] | Net Investment Income | Interest rate swaps | |||
Derivatives in cash flow hedging relationships | |||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 3 | 4 | |
Cash Flow Hedges [Member] | Net Investment Income | Foreign currency swaps | |||
Derivatives in cash flow hedging relationships | |||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 0 | 0 | |
Cash Flow Hedges [Member] | 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 | 0 | |
Cash Flow Hedges [Member] | Net Investment Income | Interest rate forwards | |||
Derivatives in cash flow hedging relationships | |||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 1 | 0 | |
Cash Flow Hedges [Member] | 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 | |
Cash Flow Hedges [Member] | 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 | |
Cash Flow Hedges [Member] | 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) | 1 | 1 | |
Cash Flow Hedges [Member] | 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 | |
Cash Flow Hedges [Member] | 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) | 0 | 0 | |
Discontinued Operations | Brighthouse Financial, Inc | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Reduction of Deferred Gains within AOCI | (19) | ||
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 | $ 12 |
Derivatives (Hedges of Net Inve
Derivatives (Hedges of Net Investments in Foreign Operations) (Details) - Foreign Operations Hedges [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | $ (157) | $ (326) |
Foreign currency forwards | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | (8) | (95) |
Currency options | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gains (Losses) Deferred in AOCI (Effective Portion) | $ (149) | $ (231) |
Derivatives (Credit Derivatives
Derivatives (Credit Derivatives) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 208 | $ 271 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 11,421 | $ 11,375 |
Weighted Average Years to Maturity | 4 years 5 months | 4 years 4 months |
Aaa/Aa/A | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 47 | $ 51 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 2,648 | $ 2,643 |
Weighted Average Years to Maturity | 2 years 6 months | 2 years 8 months |
Aaa/Aa/A | Single name credit default swaps (3) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 7 | $ 7 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 381 | $ 375 |
Weighted Average Years to Maturity | 2 years 5 months | 2 years 7 months |
Aaa/Aa/A | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 40 | $ 44 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 2,267 | $ 2,268 |
Weighted Average Years to Maturity | 2 years 6 months | 2 years 8 months |
Baa | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 139 | $ 190 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 8,403 | $ 8,267 |
Weighted Average Years to Maturity | 5 years | 4 years 10 months |
Baa | Single name credit default swaps (3) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 7 | $ 7 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 656 | $ 605 |
Weighted Average Years to Maturity | 1 year 11 months | 1 year 10 months |
Baa | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 132 | $ 183 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 7,747 | $ 7,662 |
Weighted Average Years to Maturity | 5 years 2 months | 5 years |
Ba | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 0 | $ 1 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 20 | $ 115 |
Weighted Average Years to Maturity | 1 year 2 months | 3 years 5 months |
Ba | Single name credit default swaps (3) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 0 | $ 1 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 20 | $ 115 |
Weighted Average Years to Maturity | 1 year 2 months | 3 years 5 months |
Ba | Credit default swaps referencing indices | ||
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 Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 22 | $ 29 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 350 | $ 350 |
Weighted Average Years to Maturity | 5 years 1 month | 4 years 11 months |
B | Single name credit default swaps (3) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 2 | $ 2 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 20 | $ 20 |
Weighted Average Years to Maturity | 3 years 2 months | 3 years 6 months |
B | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 20 | $ 27 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 330 | $ 330 |
Weighted Average Years to Maturity | 5 years 2 months | 5 years |
Derivatives (Estimated Fair Val
Derivatives (Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Offsetting Assets [Line Items] | ||
Gross estimated fair value of derivative assets | $ 7,972 | $ 8,626 |
Gross estimated fair value of derivative liabilities | 4,025 | 4,290 |
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 | 7,972 | 8,626 |
Estimated fair value of derivative liabilities presented in the consolidated balance sheets | 4,025 | 4,290 |
Net amount of derivative assets after application of master netting agreements and cash collateral | 317 | 305 |
Net amount of derivative liabilities after application of master netting agreements and cash collateral | 53 | 57 |
Over the Counter [Member] | ||
Offsetting Assets [Line Items] | ||
Gross estimated fair value of derivative assets | 7,733 | 7,955 |
Gross estimated fair value of derivative liabilities | 3,948 | 4,059 |
Gross estimated fair value of derivative assets | (2,376) | (2,528) |
Gross estimated fair value of derivative liabilities | (2,376) | (2,528) |
Cash collateral on derivative assets | (4,082) | (4,169) |
Cash collateral on derivative liabilities | 0 | 0 |
Securities collateral on derivative assets | (981) | (1,004) |
Securities collateral on derivative liabilities | (1,519) | (1,474) |
Cleared [Member] | ||
Offsetting Assets [Line Items] | ||
Gross estimated fair value of derivative assets | 230 | 649 |
Gross estimated fair value of derivative liabilities | 47 | 223 |
Gross estimated fair value of derivative assets | (21) | (35) |
Gross estimated fair value of derivative liabilities | (21) | (35) |
Cash collateral on derivative assets | (194) | (584) |
Cash collateral on derivative liabilities | (9) | (179) |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | (17) | (9) |
Exchange-traded | ||
Offsetting Assets [Line Items] | ||
Gross estimated fair value of derivative assets | 9 | 22 |
Gross estimated fair value of derivative liabilities | 30 | 8 |
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 | (21) | (5) |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | $ (8) | $ (2) |
Derivatives (Credit Risk on Fre
Derivatives (Credit Risk on Freestanding Derivatives) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in a Net Liability Position (1) | $ 1,572 | $ 1,532 |
Estimated Fair Value Of Incremental Collateral Provided Upon A One Notch Downgrade In The Company's Credit Rating | 14 | 15 |
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 | 15 | 20 |
Fixed maturity securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided: | 1,784 | 1,701 |
Cash | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided: | 0 | 0 |
Derivatives Subject to Credit- Contingent Provisions | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in a Net Liability Position (1) | 1,533 | 1,508 |
Estimated Fair Value Of Incremental Collateral Provided Upon A One Notch Downgrade In The Company's Credit Rating | 14 | 15 |
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 | 15 | 20 |
Derivatives Subject to Credit- Contingent Provisions | Fixed maturity securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided: | 1,734 | 1,675 |
Derivatives Subject to Credit- Contingent Provisions | Cash | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided: | 0 | 0 |
Derivatives Not Subject to Credit- Contingent Provisions | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in a Net Liability Position (1) | 39 | 24 |
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: | 50 | 26 |
Derivatives Not Subject to Credit- Contingent Provisions | Cash | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided: | $ 0 | $ 0 |
Derivatives (Embedded Derivativ
Derivatives (Embedded Derivatives) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded derivatives within asset host contracts | $ 157 | $ 12 |
Embedded derivatives within liability host contracts | 485 | 418 |
Ceded guaranteed minimum benefits | Premiums, reinsurance and other receivables | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded derivatives within asset host contracts | 157 | 144 |
Direct guaranteed minimum benefits | Policyholder account balances | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded derivatives within liability host contracts | 23 | 32 |
Assumed guaranteed minimum benefits | Policyholder account balances | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded derivatives within liability host contracts | 392 | 291 |
Funds withheld on ceded reinsurance | Other liabilities | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded derivatives within liability host contracts | 2 | 25 |
Fixed annuities with equity indexed returns | Policyholder account balances | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded derivatives within liability host contracts | 68 | 70 |
Options embedded in debt or equity securities [Member] | Other | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded derivatives within asset host contracts | $ 0 | $ (132) |
Derivatives (Changes in Estimat
Derivatives (Changes in Estimated Fair Value Related to Embedded Derivatives) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net derivatives gains (losses) | $ 37 | $ 157 |
Net derivative gains (losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net derivatives gains (losses) | $ 37 | $ 157 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||
Maximum Amount of Future Payments under Credit Default Swaps | $ 11,421 | $ 11,375 | |
Estimated Fair Value of Credit Default Swaps | 208 | 271 | |
Estimated Fair Value Assets | 7,924 | 8,551 | |
Estimated Fair Value Liabilities | 4,075 | 4,339 | |
Excess securities collateral received on derivatives | 204 | $ 253 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivatives gains (losses) | 37 | $ 157 | |
Derivative Instrument Detail [Abstract] | |||
Change in fair value of derivatives excluded from the assessment of hedge effectiveness | (8) | (7) | |
Net amounts reclassified into net derivatives gains (losses) on discontinued cash flow hedges | $ 1 | 20 | |
Hedging exposure to variability in future cash flows for specific length of time | 4 years | 5 years | |
Accumulated Other Comprehensive Income Loss | $ 900 | $ 1,500 | |
Deferred net gains (losses) expected to be reclassified to earnings | 0 | ||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | $ 0 | $ 0 | |
Immateriality of cash flow effectiveness | 0 | 0 | |
Cumulative foreign currency translation gain (loss) recorded in accumulated other comprehensive income (loss) for net investment in foreign operations hedges | $ 152 | 309 | |
Potential future recoveries available to offset maximum amount of future payments under credit default swaps | 16 | 27 | |
Excess securities collateral provided on derivatives | 263 | 272 | |
Securities collateral received which the company is permitted to sell or repledge, amount that has been sold or repledged | 0 | ||
Nonperformance Risk [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivatives gains (losses) | 20 | $ (52) | |
Over the Counter [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Excess securities collateral received on derivatives | (74) | (108) | |
Excess securities collateral provided on derivatives | (301) | (305) | |
Cash collateral on derivative assets | (4,082) | (4,169) | |
Exchange-traded | |||
Derivatives, Fair Value [Line Items] | |||
Excess securities collateral received on derivatives | (507) | (522) | |
Excess securities collateral provided on derivatives | (77) | (89) | |
Cash collateral on derivative assets | 0 | 0 | |
Cash Flow Hedging [Member] | Discontinued Operations | Brighthouse Financial, Inc | |||
Derivative Instrument Detail [Abstract] | |||
Reduction of Deferred Gains within AOCI | (19) | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | $ 12 | |
Accrued Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Estimated Fair Value Assets | 48 | 75 | |
Estimated Fair Value Liabilities | $ (50) | $ (49) |
Fair Value (Recurring Fair Valu
Fair Value (Recurring Fair Value Measurements) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | $ 304,711,000,000 | $ 308,931,000,000 |
Available-for-sale Securities, Equity Securities | 1,544,000,000 | 2,513,000,000 |
Fair Value Option And Trading Securities | 16,444,000,000 | 16,745,000,000 |
Short-term investments | 5,121,000,000 | 4,870,000,000 |
Mortgage loans at estimated fair value | 71,055,000,000 | 68,731,000,000 |
Derivative assets | 7,924,000,000 | 8,551,000,000 |
Embedded derivatives within asset host contracts | 157,000,000 | 12,000,000 |
Separate account assets | 196,358,000,000 | 205,001,000,000 |
Liabilities [Abstract] | ||
Derivative liabilities | 4,075,000,000 | 4,339,000,000 |
Embedded derivatives within liability host contracts | 485,000,000 | 418,000,000 |
Separate account liabilities | 196,358,000,000 | 205,001,000,000 |
Net Embedded Derivatives | ||
Assets [Abstract] | ||
Available-for-sale Securities | 0 | (132,000,000) |
Residential mortgage loans - FVO | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 438,000,000 | 520,000,000 |
Fair Value Option Contractholder Directed Unit Linked Investments [Member] | Minimum | ||
Assets [Abstract] | ||
Fair Value Option And Trading Securities | 0.85 | 0.85 |
Recurring | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 304,711,000,000 | 308,931,000,000 |
Available-for-sale Securities, Equity Securities | 1,544,000,000 | 2,513,000,000 |
Fair Value Option And Trading Securities | 16,444,000,000 | 16,745,000,000 |
Other limited partnership interests | 194,000,000 | |
Short-term investments | 4,450,000,000 | 4,286,000,000 |
Other investments | 173,000,000 | 165,000,000 |
Derivative assets | 7,924,000,000 | 8,551,000,000 |
Embedded derivatives within asset host contracts | 157,000,000 | 144,000,000 |
Separate account assets | 196,358,000,000 | 205,001,000,000 |
Total assets | 532,393,000,000 | 546,856,000,000 |
Liabilities [Abstract] | ||
Derivative liabilities | 4,075,000,000 | 4,339,000,000 |
Embedded derivatives within liability host contracts | 485,000,000 | 418,000,000 |
Total liabilities | 4,577,000,000 | 4,766,000,000 |
Recurring | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 4,744,000,000 | 5,563,000,000 |
Liabilities [Abstract] | ||
Derivative liabilities | 594,000,000 | 772,000,000 |
Recurring | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 2,277,000,000 | 2,069,000,000 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,622,000,000 | 2,590,000,000 |
Recurring | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 215,000,000 | 278,000,000 |
Liabilities [Abstract] | ||
Derivative liabilities | 43,000,000 | 43,000,000 |
Recurring | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 688,000,000 | 641,000,000 |
Liabilities [Abstract] | ||
Derivative liabilities | 816,000,000 | 934,000,000 |
Recurring | Derivative Liabilities Within Separate Accounts [Member] | ||
Liabilities [Abstract] | ||
Separate account liabilities | 17,000,000 | 9,000,000 |
Recurring | Residential mortgage loans - FVO | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 438,000,000 | 520,000,000 |
Recurring | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 81,834,000,000 | 82,661,000,000 |
Recurring | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 64,510,000,000 | 61,534,000,000 |
Recurring | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 55,463,000,000 | 55,569,000,000 |
Recurring | U.S. government and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 43,827,000,000 | 47,394,000,000 |
Recurring | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 27,411,000,000 | 28,800,000,000 |
Recurring | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 12,192,000,000 | 12,455,000,000 |
Recurring | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 11,764,000,000 | 12,291,000,000 |
Recurring | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 7,710,000,000 | 8,227,000,000 |
Recurring | Level 1 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 22,873,000,000 | 26,052,000,000 |
Available-for-sale Securities, Equity Securities | 909,000,000 | 1,104,000,000 |
Fair Value Option And Trading Securities | 13,705,000,000 | 14,028,000,000 |
Other limited partnership interests | 0 | |
Short-term investments | 2,845,000,000 | 3,001,000,000 |
Other investments | 83,000,000 | 81,000,000 |
Derivative assets | 9,000,000 | 22,000,000 |
Embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 88,618,000,000 | 89,916,000,000 |
Total assets | 129,042,000,000 | 134,204,000,000 |
Liabilities [Abstract] | ||
Derivative liabilities | 30,000,000 | 8,000,000 |
Embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 30,000,000 | 8,000,000 |
Recurring | Level 1 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 2,000,000 | 2,000,000 |
Liabilities [Abstract] | ||
Derivative liabilities | 3,000,000 | 4,000,000 |
Recurring | Level 1 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 2,000,000 |
Liabilities [Abstract] | ||
Derivative liabilities | 8,000,000 | 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 | 7,000,000 | 18,000,000 |
Liabilities [Abstract] | ||
Derivative liabilities | 19,000,000 | 4,000,000 |
Recurring | Level 1 | Derivative Liabilities Within Separate Accounts [Member] | ||
Liabilities [Abstract] | ||
Separate account liabilities | 0 | 0 |
Recurring | Level 1 | Residential mortgage loans - FVO | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 0 | 0 |
Recurring | Level 1 | U.S. 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 | Foreign 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 | 22,873,000,000 | 26,052,000,000 |
Recurring | Level 1 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | 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 | 266,267,000,000 | 266,610,000,000 |
Available-for-sale Securities, Equity Securities | 213,000,000 | 981,000,000 |
Fair Value Option And Trading Securities | 2,453,000,000 | 2,355,000,000 |
Other limited partnership interests | 0 | |
Short-term investments | 990,000,000 | 1,252,000,000 |
Other investments | 90,000,000 | 84,000,000 |
Derivative assets | 7,631,000,000 | 8,295,000,000 |
Embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 106,511,000,000 | 114,124,000,000 |
Total assets | 384,155,000,000 | 393,701,000,000 |
Liabilities [Abstract] | ||
Derivative liabilities | 3,579,000,000 | 3,965,000,000 |
Embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 3,591,000,000 | 3,972,000,000 |
Recurring | Level 2 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 4,728,000,000 | 5,553,000,000 |
Liabilities [Abstract] | ||
Derivative liabilities | 348,000,000 | 638,000,000 |
Recurring | Level 2 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 2,120,000,000 | 1,954,000,000 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,585,000,000 | 2,553,000,000 |
Recurring | Level 2 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 180,000,000 | 240,000,000 |
Liabilities [Abstract] | ||
Derivative liabilities | 43,000,000 | 43,000,000 |
Recurring | Level 2 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 603,000,000 | 548,000,000 |
Liabilities [Abstract] | ||
Derivative liabilities | 603,000,000 | 731,000,000 |
Recurring | Level 2 | Derivative Liabilities Within Separate Accounts [Member] | ||
Liabilities [Abstract] | ||
Separate account liabilities | 12,000,000 | 7,000,000 |
Recurring | Level 2 | Residential mortgage loans - FVO | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 0 | 0 |
Recurring | Level 2 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 77,597,000,000 | 78,171,000,000 |
Recurring | Level 2 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 64,331,000,000 | 61,325,000,000 |
Recurring | Level 2 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 48,890,000,000 | 48,840,000,000 |
Recurring | Level 2 | U.S. government and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 20,954,000,000 | 21,342,000,000 |
Recurring | Level 2 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 24,155,000,000 | 25,339,000,000 |
Recurring | Level 2 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 12,192,000,000 | 12,455,000,000 |
Recurring | Level 2 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 10,739,000,000 | 11,204,000,000 |
Recurring | Level 2 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 7,409,000,000 | 7,934,000,000 |
Recurring | Level 3 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 15,571,000,000 | 16,269,000,000 |
Available-for-sale Securities, Equity Securities | 422,000,000 | 428,000,000 |
Fair Value Option And Trading Securities | 286,000,000 | 362,000,000 |
Other limited partnership interests | 194,000,000 | |
Short-term investments | 615,000,000 | 33,000,000 |
Other investments | 0 | 0 |
Derivative assets | 284,000,000 | 234,000,000 |
Embedded derivatives within asset host contracts | 157,000,000 | 144,000,000 |
Separate account assets | 1,229,000,000 | 961,000,000 |
Total assets | 19,196,000,000 | 18,951,000,000 |
Liabilities [Abstract] | ||
Derivative liabilities | 466,000,000 | 366,000,000 |
Embedded derivatives within liability host contracts | 485,000,000 | 418,000,000 |
Total liabilities | 956,000,000 | 786,000,000 |
Recurring | Level 3 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 14,000,000 | 8,000,000 |
Liabilities [Abstract] | ||
Derivative liabilities | 243,000,000 | 130,000,000 |
Recurring | Level 3 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 157,000,000 | 113,000,000 |
Liabilities [Abstract] | ||
Derivative liabilities | 29,000,000 | 37,000,000 |
Recurring | Level 3 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 35,000,000 | 38,000,000 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 78,000,000 | 75,000,000 |
Liabilities [Abstract] | ||
Derivative liabilities | 194,000,000 | 199,000,000 |
Recurring | Level 3 | Derivative Liabilities Within Separate Accounts [Member] | ||
Liabilities [Abstract] | ||
Separate account liabilities | 5,000,000 | 2,000,000 |
Recurring | Level 3 | Residential mortgage loans - FVO | ||
Assets [Abstract] | ||
Mortgage loans at estimated fair value | 438,000,000 | 520,000,000 |
Recurring | Level 3 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 4,237,000,000 | 4,490,000,000 |
Recurring | Level 3 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 179,000,000 | 209,000,000 |
Recurring | Level 3 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 6,573,000,000 | 6,729,000,000 |
Recurring | Level 3 | U.S. government and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 3 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 3,256,000,000 | 3,461,000,000 |
Recurring | Level 3 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 3 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 1,025,000,000 | 1,087,000,000 |
Recurring | Level 3 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | $ 301,000,000 | $ 293,000,000 |
Fair Value (Transfers Between L
Fair Value (Transfers Between Levels) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Assets And Liabilities Transferred Between Levels 1 And Levels 2 | $ 0 | $ 0 |
Fair Value (Quantitative Inform
Fair Value (Quantitative Information) (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Interest rate contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | 2.77% | 2.00% |
Repurchase Rate | (0.04%) | (0.05%) |
Interest rate contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | 3.13% | 3.00% |
Repurchase Rate | 0.06% | 0.05% |
Foreign currency exchange rate contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | (0.19%) | (0.14%) |
Foreign currency exchange rate contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | 3.28% | 3.09% |
Credit contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Credit spreads | 0.97% | 0.00% |
Credit contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Credit spreads | 1.00% | 0.00% |
Equity market contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Volatility | 20.00% | 11.00% |
Correlation | 10.00% | 10.00% |
Equity market contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Volatility | 31.00% | 31.00% |
Correlation | 30.00% | 30.00% |
Embedded derivatives direct, assumed and ceded 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 | 9.04% | 8.25% |
Nonperformance risk spread | 0.03% | 0.02% |
Embedded derivatives direct, assumed and ceded 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, assumed and ceded 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, assumed and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Durations 21 - 116 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 1.25% | 1.25% |
Embedded derivatives direct, assumed and ceded 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, assumed and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Ages 41 - 60 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.03% | 0.03% |
Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Ages 61 - 115 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.15% | 0.15% |
Embedded derivatives direct, assumed and ceded 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 | 1.75% | 1.32% |
Embedded derivatives direct, assumed and ceded 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, assumed and ceded 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, assumed and ceded 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, assumed and ceded 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, assumed and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Ages 41 - 60 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.75% | 0.75% |
Embedded derivatives direct, assumed and ceded 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] | ||
Matrix Pricing - Offered quotes | $ 89 | $ 83 |
Quoted prices | 25 | 10 |
Offered quotes | 97 | 97 |
U.S. corporate and foreign corporate securities | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Matrix Pricing - Offered quotes | 139 | 142 |
Quoted prices | 846 | 443 |
Offered quotes | 104 | 104 |
U.S. corporate and foreign corporate securities | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Matrix Pricing - Offered quotes | 107 | 110 |
Quoted prices | 124 | 121 |
Offered quotes | 102 | 101 |
RMBS | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 0 | 0 |
RMBS | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 109 | 126 |
RMBS | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 94 | 94 |
ABS | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 3 | 5 |
Offered quotes | 99 | 100 |
ABS | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 117 | 117 |
Offered quotes | 102 | 103 |
ABS | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 100 | 100 |
Offered quotes | $ 100 | $ 100 |
Fair Value (Unobservable Input
Fair Value (Unobservable Input Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Residential mortgage loans - FVO | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | $ 520 | $ 566 |
Total realized/unrealized gains (losses) included in net income (loss) | 2 | (3) |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 |
Purchases | 0 | 135 |
Sales | (64) | (33) |
Issuances | 0 | 0 |
Settlements | (20) | (26) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, end of period | 438 | 639 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (8) | (3) |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (8) | (3) |
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 | 48 | 26 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance, beginning of period | (132) | (562) |
Total realized/unrealized gains (losses) included in net income (loss) | 11 | 33 |
Total realized/unrealized gains (losses) included in AOCI | (104) | 44 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | (7) |
Settlements | 43 | 95 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, end of period | (182) | (397) |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 48 | 26 |
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 | 31 | 167 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance, beginning of period | (274) | (729) |
Total realized/unrealized gains (losses) included in net income (loss) | 36 | 169 |
Total realized/unrealized gains (losses) included in AOCI | (16) | (59) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (74) | (76) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, end of period | (328) | (695) |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 31 | 167 |
Corporate fixed maturity securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 11,219 | 11,537 |
Total realized/unrealized gains (losses) included in net income (loss) | 7 | 4 |
Total realized/unrealized gains (losses) included in AOCI | (68) | 231 |
Purchases | 512 | 941 |
Sales | (542) | (418) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 46 | 79 |
Transfers out of Level 3 | (364) | (1,406) |
Balance, end of period | 10,810 | 10,968 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 1 | 4 |
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 | 4 |
Foreign government | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 209 | 289 |
Total realized/unrealized gains (losses) included in net income (loss) | 1 | 3 |
Total realized/unrealized gains (losses) included in AOCI | (3) | 6 |
Purchases | 2 | 12 |
Sales | (2) | (17) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 4 |
Transfers out of Level 3 | (28) | (8) |
Balance, end of period | 179 | 289 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 1 | 2 |
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 |
Structured Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 4,841 | 5,215 |
Total realized/unrealized gains (losses) included in net income (loss) | 23 | 32 |
Total realized/unrealized gains (losses) included in AOCI | 24 | 48 |
Purchases | 657 | 1,020 |
Sales | (324) | (400) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 45 | 23 |
Transfers out of Level 3 | (684) | (233) |
Balance, end of period | 4,582 | 5,705 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 21 | 24 |
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 | 21 | 24 |
State and political subdivision | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 0 | 10 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | (10) |
Balance, end of period | 0 | 0 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 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 |
Equity Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 428 | 468 |
Total realized/unrealized gains (losses) included in net income (loss) | (6) | (10) |
Total realized/unrealized gains (losses) included in AOCI | 0 | 22 |
Purchases | 1 | 1 |
Sales | (1) | (1) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, end of period | 422 | 480 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | (10) |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | (10) |
FVO Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 362 | 287 |
Total realized/unrealized gains (losses) included in net income (loss) | 5 | 7 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 |
Purchases | 27 | 69 |
Sales | (59) | (17) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 2 |
Transfers out of Level 3 | (49) | (13) |
Balance, end of period | 286 | 335 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 4 | 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 | 7 |
Other limited partnership interests | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 0 | 0 |
Total realized/unrealized gains (losses) included in net income (loss) | (5) | 0 |
Total realized/unrealized gains (losses) included in AOCI | 2 | 0 |
Purchases | 0 | 0 |
Sales | (19) | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 216 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, end of period | 194 | 0 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (5) | 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 | (5) | 0 |
Short-term Investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 33 | 46 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 |
Purchases | 605 | 776 |
Sales | (3) | (3) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (20) | (40) |
Balance, end of period | 615 | 779 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 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 |
Separate Accounts | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 959 | 1,141 |
Total realized/unrealized gains (losses) included in net income (loss) | 2 | (24) |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 |
Purchases | 409 | 136 |
Sales | (124) | (42) |
Issuances | 1 | 39 |
Settlements | (1) | (33) |
Transfers into Level 3 | 53 | 69 |
Transfers out of Level 3 | (75) | (102) |
Balance, end of period | 1,224 | 1,184 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 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 |
Fair Value (Fair Value Option f
Fair Value (Fair Value Option for Residential Mortgage Loans) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Carrying value at estimated fair value | $ 71,055 | $ 68,731 |
Residential mortgage loans - FVO | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid principal balance | 544 | 650 |
Difference between estimated fair value and unpaid principal balance | (106) | (130) |
Carrying value at estimated fair value | 438 | 520 |
Loans in nonaccrual status | 159 | 198 |
Loans more than 90 Days past due | 78 | 94 |
Loans in nonaccrual status or more than 90 days past due, or both | $ (82) | $ (102) |
Fair Value (Financial Instrumen
Fair Value (Financial Instruments Carried at Other Than Fair Value) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Policy loans | $ 9,744 | $ 9,669 |
Liabilities | ||
Collateral financing arrangement | 1,108 | 1,121 |
Junior subordinated debt securities | 3,145 | 3,144 |
Separate account liabilities | 196,358 | 205,001 |
Carrying Value | ||
Assets | ||
Mortgage loans | 70,617 | 68,211 |
Policy loans | 9,744 | 9,669 |
Other limited partnership interests | 219 | |
Other invested assets | 1,264 | 443 |
Premiums, reinsurance and other receivables | 4,358 | 4,155 |
Other assets | 345 | 285 |
Liabilities | ||
Policyholder account balances | 114,715 | 114,355 |
Long-term debt | 15,696 | 15,675 |
Collateral financing arrangement | 1,108 | 1,121 |
Junior subordinated debt securities | 3,145 | 3,144 |
Other liabilities | 3,810 | 3,208 |
Separate account liabilities | 118,151 | 124,011 |
Estimated Fair Value | ||
Assets | ||
Mortgage loans | 71,845 | 69,797 |
Policy loans | 11,423 | 11,512 |
Other limited partnership interests | 216 | |
Other invested assets | 1,264 | 443 |
Premiums, reinsurance and other receivables | 4,475 | 4,339 |
Other assets | 374 | 328 |
Liabilities | ||
Policyholder account balances | 116,193 | 116,534 |
Long-term debt | 16,973 | 17,773 |
Collateral financing arrangement | 898 | 894 |
Junior subordinated debt securities | 4,073 | 4,319 |
Other liabilities | 4,365 | 3,841 |
Separate account liabilities | 118,151 | 124,011 |
Estimated Fair Value | Level 1 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Other limited partnership interests | 0 | |
Other invested assets | 0 | 0 |
Premiums, reinsurance and other receivables | 0 | 0 |
Other assets | 0 | 0 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Long-term debt | 0 | 0 |
Collateral financing arrangement | 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 | 341 | 336 |
Other limited partnership interests | 0 | |
Other invested assets | 812 | 0 |
Premiums, reinsurance and other receivables | 1,450 | 1,283 |
Other assets | 175 | 189 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Long-term debt | 16,973 | 17,773 |
Collateral financing arrangement | 0 | 0 |
Junior subordinated debt securities | 4,073 | 4,319 |
Other liabilities | 2,113 | 1,496 |
Separate account liabilities | 118,151 | 124,011 |
Estimated Fair Value | Level 3 | ||
Assets | ||
Mortgage loans | 71,845 | 69,797 |
Policy loans | 11,082 | 11,176 |
Other limited partnership interests | 216 | |
Other invested assets | 452 | 443 |
Premiums, reinsurance and other receivables | 3,025 | 3,056 |
Other assets | 199 | 139 |
Liabilities | ||
Policyholder account balances | 116,193 | 116,534 |
Long-term debt | 0 | 0 |
Collateral financing arrangement | 898 | 894 |
Junior subordinated debt securities | 0 | 0 |
Other liabilities | 2,252 | 2,345 |
Separate account liabilities | $ 0 | $ 0 |
Junior Subordinated Debt Sec108
Junior Subordinated Debt Securities (Details) - Junior Subordinated Debt Instrument Two [Member] $ in Millions | Feb. 10, 2017USD ($) |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 750 |
Debt Instrument, Interest Rate, Stated Percentage | 9.25% |
Equity (Preferred Stock) (Detai
Equity (Preferred Stock) (Details) - shares | Mar. 31, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | ||
Preferred Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Preferred Stock, Shares Issued | 26,000,000 | 25,500,000 |
Preferred Stock, Shares Outstanding | 26,000,000 | 25,500,000 |
Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Authorized | 27,600,000 | 27,600,000 |
Preferred Stock, Shares Issued | 24,000,000 | 24,000,000 |
Preferred Stock, Shares Outstanding | 24,000,000 | 24,000,000 |
Series C Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Authorized | 1,500,000 | 1,500,000 |
Preferred Stock, Shares Issued | 1,500,000 | 1,500,000 |
Preferred Stock, Shares Outstanding | 1,500,000 | 1,500,000 |
Series D Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Authorized | 500,000 | 0 |
Preferred Stock, Shares Issued | 500,000 | 0 |
Preferred Stock, Shares Outstanding | 500,000 | 0 |
Series A Junior Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Not Designated Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Authorized | 160,400,000 | 160,900,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Equity (Preferred Stock - Narra
Equity (Preferred Stock - Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Nov. 01, 2017 | |
Class of Stock [Line Items] | ||||
Stock Repurchase Program, Authorized Amount | $ 2,000 | |||
Preferred Stock, Shares Issued | 26,000,000 | 25,500,000 | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | ||
Preferred Stock, Liquidation Preference Per Share | $ 2,600 | $ 2,100 | ||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 494 | $ 0 | ||
Series D Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Shares Issued | 500,000 | 0 | ||
Preferred Stock, Dividend Payment Rate, Variable | 5.875% Fixed-to-Floating Rate | |||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | |||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | |||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 494 | |||
Payments of Stock Issuance Costs | $ 6 | |||
Fixed Rate [Member] | Series D Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Dividend Payment Rate, Variable | 0.05875 | |||
Variable Rate [Member] | Series D Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Dividend Payment Rate, Variable | LIBOR plus 2.959% | |||
RatingAgency [Member] | Series D Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Liquidation Preference Per Share | $ 1,020 |
Equity (Common Stock - Narrativ
Equity (Common Stock - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Equity [Abstract] | ||
Treasury Stock, Shares, Acquired | 21,405,327 | 16,038,791 |
Treasury Stock, Value, Acquired, Cost Method | $ 1,041 | $ 858 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 720 |
Equity (Stock-Based Compensatio
Equity (Stock-Based Compensation Plans - Narrative) (Details) - shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
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 | 46.30% | |
Vested in period | 1,194,283 | |
Issued in period | 552,953 | |
Performance Units | ||
Equity - Stock-based Compensation Plans [Line Items] | ||
Vested in period | 186,085 | |
Paid in period | 86,157 |
Equity (Components of Accumulat
Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | $ 7,427 | $ 5,366 |
OCI before reclassifications | (3,615) | 1,241 |
Deferred income tax benefit (expense) | 897 | (222) |
AOCI before reclassifications, net of income tax | 4,709 | 6,385 |
Amounts reclassified from AOCI | (89) | 11 |
Deferred income tax benefit (expense) | 10 | 0 |
Amounts reclassified from AOCI, net of income tax | (79) | 11 |
Balance, end of period | 5,634 | 6,396 |
Unrealized Investment Gains (Losses), Net of Related Offsets | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | 12,757 | 10,785 |
OCI before reclassifications | (3,811) | 703 |
Deferred income tax benefit (expense) | 835 | (273) |
AOCI before reclassifications, net of income tax | 9,781 | 11,215 |
Amounts reclassified from AOCI | 45 | 196 |
Deferred income tax benefit (expense) | (10) | (75) |
Amounts reclassified from AOCI, net of income tax | 35 | 121 |
Balance, end of period | 10,864 | 11,336 |
Unrealized Gains (Losses) on Derivatives | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | 905 | 1,865 |
OCI before reclassifications | (352) | 210 |
Deferred income tax benefit (expense) | 58 | (73) |
AOCI before reclassifications, net of income tax | 611 | 2,002 |
Amounts reclassified from AOCI | (165) | (229) |
Deferred income tax benefit (expense) | 27 | 80 |
Amounts reclassified from AOCI, net of income tax | (138) | (149) |
Balance, end of period | 683 | 1,853 |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | (4,390) | (5,312) |
OCI before reclassifications | 552 | 348 |
Deferred income tax benefit (expense) | 3 | 122 |
AOCI before reclassifications, net of income tax | (3,835) | (4,842) |
Amounts reclassified from AOCI | 0 | 0 |
Deferred income tax benefit (expense) | 0 | 0 |
Amounts reclassified from AOCI, net of income tax | 0 | 0 |
Balance, end of period | (3,707) | (4,842) |
Defined Benefit Plans Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | (1,845) | (1,972) |
OCI before reclassifications | (4) | (20) |
Deferred income tax benefit (expense) | 1 | 2 |
AOCI before reclassifications, net of income tax | (1,848) | (1,990) |
Amounts reclassified from AOCI | 31 | 44 |
Deferred income tax benefit (expense) | (7) | (5) |
Amounts reclassified from AOCI, net of income tax | 24 | 39 |
Balance, end of period | (2,206) | $ (1,951) |
Accounting Standards Update 2016-01 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI | (425) | |
Deferred income tax benefit (expense) | 1,337 | |
Amounts reclassified from AOCI, net of income tax | 912 | |
Accounting Standards Update 2016-01 | Unrealized Investment Gains (Losses), Net of Related Offsets | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI | (425) | |
Deferred income tax benefit (expense) | 1,473 | |
Amounts reclassified from AOCI, net of income tax | 1,048 | |
Accounting Standards Update 2016-01 | Unrealized Gains (Losses) on Derivatives | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI | 0 | |
Deferred income tax benefit (expense) | 210 | |
Amounts reclassified from AOCI, net of income tax | 210 | |
Accounting Standards Update 2016-01 | Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI | 0 | |
Deferred income tax benefit (expense) | 36 | |
Amounts reclassified from AOCI, net of income tax | 36 | |
Accounting Standards Update 2016-01 | Defined Benefit Plans Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI | 0 | |
Deferred income tax benefit (expense) | (382) | |
Amounts reclassified from AOCI, net of income tax | (382) | |
MetLife Afore [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI, net of income tax | 92 | |
MetLife Afore [Member] | Unrealized Investment Gains (Losses), Net of Related Offsets | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI, net of income tax | 0 | |
MetLife Afore [Member] | Unrealized Gains (Losses) on Derivatives | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI, net of income tax | 0 | |
MetLife Afore [Member] | Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI, net of income tax | 92 | |
MetLife Afore [Member] | Defined Benefit Plans Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI, net of income tax | $ 0 |
Equity (Reclassifications Out o
Equity (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net investment gains (losses) | $ (333) | $ 88 |
Net investment income | 3,745 | 4,421 |
Net derivative gains (losses) | 349 | (212) |
Income (loss) from discontinued operations, net of income tax | 0 | (76) |
Other expenses | (3,365) | (3,268) |
Income (loss) from continuing operations before provision for income tax | 1,656 | 1,072 |
Provision for income tax expense (benefit) | (399) | (120) |
Net income (loss) | 1,257 | 876 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income (loss) | 79 | (11) |
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) | (101) | 40 |
Net investment income | 3 | 6 |
Net derivative gains (losses) | 53 | (151) |
Income (loss) from continuing operations before provision for income tax | (45) | (196) |
Provision for income tax expense (benefit) | 10 | 75 |
Net income (loss) | (35) | (121) |
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 | 165 | 229 |
Provision for income tax expense (benefit) | (27) | (80) |
Net income (loss) | 138 | 149 |
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 investment income | 3 | 4 |
Net derivative gains (losses) | 16 | 8 |
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 investment income | 1 | 0 |
Net derivative gains (losses) | 5 | (4) |
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) | 139 | 208 |
Other expenses | 1 | 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) | (36) | (49) |
Amortization of prior service (costs) credit | 5 | 5 |
Income (loss) from continuing operations before provision for income tax | (31) | (44) |
Provision for income tax expense (benefit) | 7 | 5 |
Net income (loss) | (24) | (39) |
Brighthouse Financial, Inc | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net investment gains (losses) | (168) | |
Brighthouse Financial, Inc | 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] | ||
Income (loss) from discontinued operations, net of income tax | 0 | (91) |
Brighthouse Financial, Inc | 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] | ||
Income (loss) from discontinued operations, net of income tax | 0 | 1 |
Brighthouse Financial, Inc | 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] | ||
Income (loss) from discontinued operations, net of income tax | 0 | 1 |
Brighthouse Financial, Inc | 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] | ||
Income (loss) from discontinued operations, net of income tax | $ 0 | $ 10 |
Other Expenses (Other Expenses)
Other Expenses (Other Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Income and Expenses [Abstract] | ||
Employee related costs | $ 937 | $ 937 |
Third party staffing costs | 380 | 362 |
General and administrative expenses | 243 | 221 |
Pension, postretirement and postemployment benefit costs | 49 | 79 |
Premium taxes, other taxes, and licenses & fees | 179 | 175 |
Commissions and other variable expenses | 1,416 | 1,304 |
Capitalization of DAC | (796) | (713) |
Amortization of DAC and VOBA | 693 | 663 |
Amortization of negative VOBA | (22) | (43) |
Interest expense on debt | 286 | 283 |
Total other expenses | $ 3,365 | $ 3,268 |
Other Expenses (Restructuring C
Other Expenses (Restructuring Charges) (Details) - Unit Cost Initiative - Other expenses - Severance - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Balance, beginning of period | $ 22 | $ 35 |
Restructuring charges | 9 | 11 |
Cash payments | (12) | (8) |
Balance, end of period | 19 | 38 |
Total restructuring charges incurred since inception of initiative | $ 82 | $ 46 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Pension Benefits | ||
Net periodic benefit costs [Abstract] | ||
Service costs | $ 60 | $ 61 |
Interest costs | 96 | 106 |
Expected return on plan assets | (133) | (130) |
Amortization of net actuarial (gains) losses | 44 | 49 |
Amortization of prior service costs (credit) | 0 | 0 |
Net periodic benefit costs (credit) | 67 | 86 |
Other Postretirement Benefits | ||
Net periodic benefit costs [Abstract] | ||
Service costs | 1 | 1 |
Interest costs | 11 | 19 |
Expected return on plan assets | (18) | (18) |
Amortization of net actuarial (gains) losses | (8) | 0 |
Amortization of prior service costs (credit) | (5) | (5) |
Net periodic benefit costs (credit) | $ (19) | $ (3) |
Income Tax (Narrative) (Details
Income Tax (Narrative) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Federal corporate income tax rate | 21.00% | 35.00% |
Other Assets | ||
Transition tax rate | 8.00% | |
Cash and Cash Equivalents | ||
Transition tax rate | 15.50% |
Earnings Per Common Share (Earn
Earnings Per Common Share (Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Weighted Average Shares: | ||
Weighted average common stock outstanding for basic earnings per common share | 1,035.9 | 1,090.4 |
Incremental common shares from assumed exercise or issuance of stock-based awards | 8.5 | 8.3 |
Weighted average common stock outstanding for diluted earnings per common share | 1,044.4 | 1,098.7 |
Income (Loss) from Continuing Operations: | ||
Income (loss) from continuing operations, net of income tax | $ 1,257 | $ 952 |
Less: Income (loss) from continuing operations, net of income tax, attributable to noncontrolling interests | 4 | 3 |
Less: Preferred stock dividends | 6 | 6 |
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.'s common shareholders | $ 1,247 | $ 943 |
Basic | $ 1.20 | $ 0.87 |
Diluted | $ 1.19 | $ 0.86 |
Income (Loss) from Discontinued Operations: | ||
Income (loss) from discontinued operations, net of income tax | $ 0 | $ (76) |
Less: Income (loss) from discontinued operations, net of income tax, attributable to noncontrolling interests | 0 | 0 |
Income (loss) from discontinued operations, net of income tax, available to MetLife, Inc.’s common shareholders | $ 0 | $ (76) |
Basic | $ 0 | $ (0.07) |
Diluted | $ 0 | $ (0.07) |
Net Income (Loss): | ||
Net income (loss) | $ 1,257 | $ 876 |
Less: Net income (loss) attributable to noncontrolling interests | 4 | 3 |
Less: Preferred stock dividends | 6 | 6 |
Net income (loss) available to MetLife, Inc.’s common shareholders | $ 1,247 | $ 867 |
Basic | $ 1.20 | $ 0.80 |
Diluted | $ 1.19 | $ 0.79 |
Contingencies, Commitments a120
Contingencies, Commitments and Guarantees (Contingencies - Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)Claims | Mar. 31, 2017Claims | Dec. 31, 2017USD ($)Claims | |
Loss Contingencies | |||
Reserves for Group Annuity products | $ 510,000 | ||
Assumed variable annuity guarantee reserves | $ 896,000 | ||
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 | $ 700,000 | ||
Asbestos Related Claims | |||
Loss Contingencies | |||
Asbestos-Related Claims | Claims | 823 | 1,104 | 3,514 |
Superfund Site Settlement Agreements | |||
Loss Contingencies | |||
Number of regulatory matters and other claims | Claims | 2 | ||
Superfund Site Settlement Agreements | Maximum | |||
Loss Contingencies | |||
Maximum estimate of aggregate costs to resolve matter | $ 300 |
Contingencies, Commitments a121
Contingencies, Commitments and Guarantees (Commitments and Guarantees - Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Liabilities for indemnities, guarantees and commitments | $ 7 | $ 5 |
Cumulative maximum indemnities and guarantees contractual limitation | 775 | |
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 | 329 | |
Mortgage Loan Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 3,700 | 3,400 |
Commitments to Fund Partnership Investments, Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 6,100 | $ 6,100 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Subsequent Event [Line Items] | |||
Treasury Stock, Shares, Acquired | 21,405,327 | 16,038,791 | |
Treasury Stock, Value, Acquired, Cost Method | $ 1,041 | $ 858 | |
Estimated aggregate dividend payment | $ 416 | $ 437 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Treasury Stock, Shares, Acquired | 7,630,398 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 350 | ||
Approved dividend, amount per share | $ 0.42 | ||
Estimated aggregate dividend payment | $ 428 |