MetLife (MET) 10-Q 5 May 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
In Billions, except Share data	3 Months Ended Mar. 31, 2010	Apr. 30, 2010	Jun. 30, 2009
Document and Entity Information [Abstract]
Entity Registrant Name	METLIFE INC
Entity Central Index Key	0001099219
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Document Fiscal Year Focus	2,010
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			$25
Entity Common Stock, Shares Outstanding		820,152,497

Interim Condensed Consolidated

Interim Condensed Consolidated Balance Sheets (USD $)
In Millions	3 Months Ended Mar. 31, 2010	12 Months Ended Dec. 31, 2009
Investments:
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $238,061 and $229,709, respectively; includes $3,144 and $3,171, respectively, relating to variable interest entities)	$239,566	$227,642
Equity securities available-for-sale, at estimated fair value (cost: $3,106 and $3,187, respectively)	3,066	3,084
Trading securities, at estimated fair value (cost: $2,978 and $2,249, respectively; includes $274 and $0, respectively, relating to variable interest entities)	3,039	2,384
Mortgage loans:
Held-for-investment, at amortized cost (net of valuation allowances of $751 and $721, respectively; includes $7,065 and $0, respectively, relating to variable interest entities)	55,433	48,181
Held-for-sale, principally at estimated fair value	2,003	2,728
Mortgage loans, net	57,436	50,909
Policy loans	10,146	10,061
Real estate and real estate joint ventures held-for-investment (includes $19 and $18, respectively, relating to variable interest entities)	6,826	6,852
Real estate held-for-sale	40	44
Other limited partnership interests (includes $226 and $236, respectively, relating to variable interest entities)	5,753	5,508
Short-term investments	8,019	8,374
Other invested assets (includes $110 and $137, respectively, relating to variable interest entities)	12,327	12,709
Total investments	346,218	327,567
Cash and cash equivalents (includes $267 and $68, respectively, relating to variable interest entities)	9,202	10,112
Accrued investment income (includes $39 and $0, respectively, relating to variable interest entities)	3,392	3,173
Premiums, reinsurance and other receivables	17,554	16,752
Deferred policy acquisition costs and value of business acquired	18,697	19,256
Current income tax recoverable	0	316
Deferred income tax assets	149	1,228
Goodwill	5,049	5,047
Other assets (includes $10 and $16, respectively, relating to variable interest entities)	6,869	6,822
Separate account assets	158,436	149,041
Total assets	565,566	539,314
Liabilities
Future policy benefits	137,516	135,879
Policyholder account balances	141,734	138,673
Other policyholder funds	8,682	8,446
Policyholder dividends payable	745	761
Payables for collateral under securities loaned and other transactions	25,982	24,196
Bank deposits	10,032	10,211
Short-term debt	318	912
Long-term debt (includes $7,164 and $64, respectively, relating to variable interest entities)	20,177	13,220
Collateral financing arrangements	5,297	5,297
Junior subordinated debt securities	3,191	3,191
Current income tax payable	66	0
Other liabilities (includes $96 and $26, respectively, relating to variable interest entities)	17,211	15,989
Separate account liabilities	158,436	149,041
Total liabilities	529,387	505,816
Contingencies, Commitments and Guarantees (Note 8)
MetLife, Inc.'s stockholders' equity:
Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 84,000,000 shares issued and outstanding; $2,100 aggregate liquidation preference	1	1
Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 822,586,896 and 822,359,818 shares issued at March 31, 2010 and December 31, 2009, respectively; 819,393,009 and 818,833,810 shares outstanding at March 31, 2010 and December 31, 2009, respectively	8	8
Additional paid-in capital	16,871	16,859
Retained earnings	20,294	19,501
Treasury stock, at cost; 3,193,887 and 3,526,008 shares at March 31, 2010 and December 31, 2009, respectively	(172)	(190)
Accumulated other comprehensive loss	(1,191)	(3,058)
Total MetLife, Inc.'s stockholders' equity	35,811	33,121
Noncontrolling interests	368	377
Total equity	36,179	33,528
Total liabilities and stockholders' equity	565,566	539,314
MetLife, Inc.'s stockholders' equity:
Total equity		$33,498

1_Interim Condensed Consolidate

Interim Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data	Mar. 31, 2010	Dec. 31, 2009
Investments:
Amortized cost of fixed maturity securities available-for-sale	$238,061	$229,709
Fixed maturity securities relating to variable interest entities	239,566	227,642
Cost of equity securities available-for-sale	3,106	3,187
Cost of trading securities	2,978	2,249
Trading securities relating to variable interest entities	3,039	2,384
Mortgage loans:
Valuation allowances for held-for-investment	751	721
Mortgage loans relating to variable interest entities	55,433	48,181
Real estate and real estate joint ventures held-for-investment relating to variable interest entities	6,826	6,852
Other limited partnership interests relating to variable interest entities	5,753	5,508
Other invested assets relating to variable interest entities	12,327	12,709
Cash and cash equivalents relating to variable interest entities	9,202	10,112
Accrued investment income relating to variable interest entities	3,392	3,173
Other assets relating to variable interest entities	6,869	6,822
Liabilities
Long-term debt relating to variable interest entities	20,177	13,220
Other liabilities relating to variable interest entities	17,211	15,989
MetLife, Inc.'s stockholders' equity:
Preferred stock, par value	0.01	0.01
Preferred stock, shares authorized	200,000,000	200,000,000
Preferred stock, shares issued	84,000,000	84,000,000
Preferred stock, shares outstanding	84,000,000	84,000,000
Preferred stock, aggregate liquidation preference	2,100	2,100
Common stock, par value	0.01	0.01
Common stock, shares authorized	3,000,000,000	3,000,000,000
Common stock, shares issued	822,586,896	822,359,818
Common stock, shares outstanding	819,393,009	818,833,810
Treasury stock, shares	3,193,887	3,526,008
Variable interest entities
Investments:
Fixed maturity securities relating to variable interest entities	3,144	3,171
Trading securities relating to variable interest entities	274	0
Mortgage loans:
Mortgage loans relating to variable interest entities	7,065	0
Real estate and real estate joint ventures held-for-investment relating to variable interest entities	19	18
Other limited partnership interests relating to variable interest entities	226	236
Other invested assets relating to variable interest entities	110	137
Cash and cash equivalents relating to variable interest entities	267	68
Accrued investment income relating to variable interest entities	39	0
Other assets relating to variable interest entities	10	16
Liabilities
Long-term debt relating to variable interest entities	7,164	64
Other liabilities relating to variable interest entities	$96	$26

2_Interim Condensed Consolidate

Interim Condensed Consolidated Statements of Operations (Unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Revenues
Premiums	$6,854	$6,122
Universal life and investment-type product policy fees	1,407	1,183
Net investment income	4,344	3,261
Other revenues	513	554
Net investment gains (losses):
Other-than-temporary impairments on fixed maturity securities	(151)	(553)
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive loss	59	0
Other net investment gains (losses), net	164	(353)
Total net investment gains (losses)	72	(906)
Total revenues	13,190	10,214
Expenses
Policyholder benefits and claims	7,537	6,582
Interest credited to policyholder account balances	1,143	1,168
Policyholder dividends	377	424
Other expenses	2,942	3,002
Total expenses	11,999	11,176
Income (loss) from continuing operations before provision for income tax	1,191	(962)
Provision for income tax expense (benefit)	358	(377)
Income (loss) from continuing operations, net of income tax	833	(585)
Income (loss) from discontinued operations, net of income tax	1	37
Net income (loss)	834	(548)
Less: Net income (loss) attributable to noncontrolling interests	(1)	(4)
Net income (loss) attributable to MetLife, Inc.	835	(544)
Less: Preferred stock dividends	30	30
Net income (loss) available to MetLife, Inc.'s common shareholders	$805	($574)
Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.'s common shareholders per common share:
Basic	0.98	-0.76
Diluted	0.97	-0.76
Net income (loss) available to MetLife, Inc.'s common shareholders per common share:
Basic	0.98	-0.71
Diluted	0.97	-0.71

3_Interim Condensed Consolidate

Interim Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (USD $)
In Millions	Noncontrolling Interests	Total MetLife, Inc.'s Stockholders' Equity	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock at Cost	Accumulated Other Comprehensive Income (Loss) Net Unrealized Investment Gains (Losses)	Accumulated Other Comprehensive Loss Other Than Temporary Impairments Member	Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustments	Accumulated Other Comprehensive Income (Loss) Defined Benefit Plans Adjustment	Total
Beginning Balance at Dec. 31, 2008	$251	$23,734	$1	$8	$15,811	$22,403	($236)	($12,564)		($246)	($1,443)	$23,985
Common stock issuance - newly issued shares		1,035			1,035							1,035
Treasury stock transactions, net		26			20		6					26
Deferral of stock-based compensation		(6)			(6)							(6)
Dividends on preferred stock		(30)				(30)						(30)
Change in equity of noncontrolling interests	80											80
Comprehensive income (loss):
Net income (loss)	(4)	(544)				(544)						(548)
Other comprehensive income (loss):
Unrealized gains (losses) on derivative instruments, net of income tax		19						19				19
Unrealized investment gains (losses), net of related offsets and income tax	(8)	(924)						(924)				(932)
Foreign currency translation adjustments, net of income tax		(240)								(240)		(240)
Defined benefit plans adjustment, net of income tax		40									40	40
Other comprehensive income (loss)	(8)	(1,105)										(1,113)
Comprehensive income (loss)	(12)	(1,649)										(1,661)
Ending Balance at Mar. 31, 2009	319	23,110	1	8	16,860	21,829	(230)	(13,469)		(486)	(1,403)	23,429
Beginning Balance at Dec. 31, 2008	251	23,734	1	8	15,811	22,403	(236)	(12,564)		(246)	(1,443)	23,985
Cumulative effect of changes in accounting principles, net of income tax (Note 1)		30				(12)		31	11			30
Other comprehensive income (loss):
Ending Balance at Dec. 31, 2009	377	33,151	1	8	16,859	19,489	(190)	(786)	(502)	(183)	(1,545)	33,528
Stock-based compensation		30			12		18					30
Dividends on preferred stock		(30)				(30)						(30)
Change in equity of noncontrolling interests	(14)											(14)
Comprehensive income (loss):
Net income (loss)	(1)	835				835						834
Other comprehensive income (loss):
Unrealized gains (losses) on derivative instruments, net of income tax		78						78				78
Unrealized investment gains (losses), net of related offsets and income tax	(1)	1,667						1,696	(29)			1,666
Foreign currency translation adjustments, net of income tax	7	61								61		68
Defined benefit plans adjustment, net of income tax		19									19	19
Other comprehensive income (loss)	6	1,825										1,831
Comprehensive income (loss)	5	2,660										2,665
Ending Balance at Mar. 31, 2010	$368	$35,811	$1	$8	$16,871	$20,294	($172)	$988	($531)	($122)	($1,526)	$36,179

4_Interim Condensed Consolidate

Interim Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Interim Condensed Consolidated Statements of Cash Flows [Abstract]
Net cash provided by (used in) operating activities	$2,871	($985)
Cash flows from investing activities
Sales, maturities and repayments of fixed maturity securities	14,896	18,118
Sales, maturities and repayments of equity securities	255	356
Sales, maturities and repayments of mortgage loans	1,152	1,105
Sales, maturities and repayments of real estate and real estate joint ventures	18	37
Sales, maturities and repayments of other limited partnership interests	97	394
Purchases of fixed maturity securities	(22,518)	(24,229)
Purchases of equity securities	(134)	(481)
Purchases of mortgage loans	(1,156)	(984)
Purchases of real estate and real estate joint ventures	(176)	(174)
Purchases of other limited partnership interests	(166)	(162)
Cash received in connection with freestanding derivatives	465	2,427
Cash paid in connection with freestanding derivatives	(725)	(1,124)
Sales of businesses, net of cash disposed of $0 and $180, respectively		(46)
Net change in policy loans	(85)	(49)
Net change in short-term investments	386	2,982
Net change in other invested assets	128	267
Other, net	(35)	(55)
Net cash used in investing activities	(7,598)	(1,618)
Cash flows from financing activities
Policyholder account balances: Deposits	17,321	22,392
Policyholder account balances: Withdrawals	(14,194)	(23,065)
Net change in bank deposits	(218)	604
Net change in payables for collateral under securities loaned and other transactions	1,786	(6,718)
Net change in short-term debt	(594)	3,219
Long-term debt issued	163	469
Long-term debt repaid	(322)	(112)
Collateral financing arrangements issued		50
Debt issuance costs		(3)
Common stock issued to settle stock forward contracts		1,035
Dividends on preferred stock	(30)	(30)
Other, net	(67)	(9)
Net cash provided by (used in) financing activities	3,845	(2,168)
Effect of change in foreign currency exchange rates on cash balances	(28)	(44)
Change in cash and cash equivalents	(910)	(4,815)
Cash and cash equivalents, beginning of period	10,112	24,239
Cash and cash equivalents, end of period	9,202	19,424
Cash and cash equivalents, subsidiaries held-for-sale, beginning of period	0	32
Cash and cash equivalents, subsidiaries held-for-sale, end of period	0	0
Cash and cash equivalents, from continuing operations, beginning of period	10,112	24,207
Cash and cash equivalents, from continuing operations, end of period	9,202	19,424
Supplemental disclosures of cash flow information:
Net cash paid (received) during the period for interest	258	113
Net cash paid (received) during the period for income tax	(88)	85
Remarketing of debt securities:
Fixed maturity securities redeemed		32
Long-term debt issued		1,035
Junior subordinated debt securities redeemed		1,067
Real estate and real estate joint ventures acquired in satisfaction of debt	$8	$1

5_Interim Condensed Consolidate

Interim Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Cash flows from investing activities
Cash disposed from sales of businesses	$0	$180

Business, Basis of Presentation

Business, Basis of Presentation and Summary of Significant Accounting Policies
	3 Months Ended Mar. 31, 2010
Business, Basis of Presentation and Summary of Significant Accounting Policies [Abstract]
Business, Basis of Presentation and Summary of Significant Accounting Policies	1. Business, Basis of Presentation and Summary of Significant Accounting Policies Business MetLife or the Company refers to MetLife, Inc., a Delaware corporation incorporated in 1999 (the Holding Company), and its subsidiaries, including Metropolitan Life Insurance Company (MLIC). MetLife is a leading provider of insurance, employee benefits and financial services with operations throughout the United States and the Latin America, Asia Pacific and Europe, Middle East and India regions. Through its subsidiaries and affiliates, MetLife offers life insurance, annuities, auto and homeowners insurance, retail banking and other financial services to individuals, as well as group insurance and retirement savings products and services to corporations and other institutions. Basis of Presentation The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported in the interim condensed consolidated financial statements. In applying the Companys accounting policies, management makes subjective and complex judgments that frequently require estimates about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Companys businesses and operations. Actual results could differ from these estimates. The accompanying interim condensed consolidated financial statements include the accounts of the Holding Company 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. See Adoption of New Accounting Pronouncements. 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. See Note6. Intercompany accounts and transactions have been eliminated. The Company uses the equity method of accounting for investments in equity securities in which it has a significant influence or more than a 20% interest and for real estate joint ventures and other limited partnership interests in which it has more than a minor equity interest or more than a minor influence over the joint ventures or partnerships operations, but does not have a controlling interest and is not the primary beneficiary. The Company uses the cost method of accounting for investments in real estate joint ventures and other limited partnership interests in which it has a minor equity investment and virtually no influence over the joint ventures or the partnerships operations. Certain amounts in the prior year periods interim condensed consolidated financial statements have been reclassified to conform with the 2010 presentation. Such reclassifications include $604million reclassified from policyholder account balances to net change in bank deposits within cash flows fro

Pending Acquisition

Pending Acquisition
	3 Months Ended Mar. 31, 2010
Pending Acquisition [Abstract]
Pending Acquisition	2. Pending Acquisition On March7, 2010, the Holding Company entered into a stock purchase agreement (the Stock Purchase Agreement) with ALICO Holdings LLC (the Seller) and American International Group, Inc., pursuant to which the Holding Company agreed to acquire all of the issued and outstanding capital stock of American Life Insurance Company (Alico) and Delaware American Life Insurance Company. The transaction is expected to close by the end of 2010, subject to certain regulatory approvals and determinations, as well as other customary closing conditions. Pursuant to the Stock Purchase Agreement, the Holding Company will (i)pay $6.8billion to the Seller in cash, and (ii)issue to the Seller (a)78,239,712shares of its common stock, (b)6,857,000shares of SeriesB Contingent Convertible Junior Participating Non-Cumulative Perpetual Preferred Stock of the Holding Company, which will be convertible into approximately 68,570,000shares of the Holding Companys common stock upon a favorable vote of the Holding Companys stockholders and (c)$3.0billion aggregate stated amount of equity units of the Holding Company (together, the Securities), consisting of (x)forward purchase contracts obligating the holder to purchase a variable number of shares of the Holding Companys common stock on three specified future dates (to be determined at closing, approximately two, three and four years after closing, with an aggregate purchase price of $1billion payable on each of those dates) for a fixed amount per purchase contract, and (y)an interest in shares of the Holding Companys preferred stock. At a future date, the interest in the preferred stock forming part of the equity units will be mandatorily exchanged for an interest in debt securities of the Company, which will be subject to remarketing and sold to investors. Holders of the equity units who elect to include their debt securities in a remarketing can use the proceeds thereof to meet their obligations under the forward purchase contracts. The aggregate amount of the Holding Companys common stock to be issued to the Seller in connection with the transaction is expected to be 214.6million to 231.5million shares, consisting of 78.2million shares to be issued at closing, 68.6million shares to be issued upon conversion of the SeriesB Contingent Convertible Junior Participating Non-Cumulative Perpetual Preferred Stock (with the stockholder vote on such conversion to be held within one year after the closing) and between 67.8million and 84.7million shares of common stock, in total, issuable upon settlement of the purchase contracts forming part of the equity units (in three tranches approximately two, three and four years after the closing). The ownership of the Securities is subject to an investor rights agreement, which grants to the Seller certain rights and sets forth certain agreements with respect to the Sellers ownership, voting and transfer of the Securities. The Seller has indicated that it intends to monetize the Securities over time, subject to market conditions, following the lapse of agreed-upon minimum holding periods. See Note7 for discussion of a related commitment letter si

Investments

Investments
	3 Months Ended Mar. 31, 2010
Investments [Abstract]
Investments	3. Investments Fixed Maturity and Equity Securities Available-for-Sale The following tables present the cost or amortized cost, gross unrealized gain and loss, estimated fair value of the Companys fixed maturity and equity securities and the percentage that each sector represents by the respective total holdings for the periods shown. The unrealized loss amounts presented below include the noncredit loss component of other-than-temporary impairment (OTTI) loss: March31, 2010 Cost or Gross Unrealized Estimated Amortized Temporary OTTI Fair % of Cost Gain Loss Loss Value Total (In millions) Fixed Maturity Securities: U.S. corporate securities $ 72,883 $ 3,230 $ 1,973 $ 7 $ 74,133 31.0 % Residential mortgage-backed securities (RMBS) 43,786 1,351 1,550 607 42,980 17.9 Foreign corporate securities 38,869 2,180 944 40,105 16.7 U.S. Treasury, agency and government guaranteed securities (1) 30,981 778 1,018 30,741 12.8 Commercial mortgage-backed securities (CMBS) 16,680 507 692 16,495 6.9 Asset-backed securities (ABS) 14,686 254 871 177 13,892 5.8 Foreign government securities 11,969 1,272 77 13,164 5.5 State and political subdivision securities 8,188 185 334 8,039 3.4 Other fixed maturity securities 19 2 17 Total fixed maturity securities (2),(3) $ 238,061 $ 9,757 $ 7,461 $ 791 $ 239,566 100.0 % Equity Securities: Common stock $ 1,507 $ 117 $ 8 $ $ 1,616 52.7 % Non-redeemable preferred stock (2) 1,599 90 239 1,450 47.3 Total equity securities (4) $ 3,106 $ 207 $ 247 $ $ 3,066 100.0 % December31, 2009 Cost or Gross Unrealized Estimated Amortized Temporary OTTI Fair % of Cost Gain Loss Loss

Derivative Financial Instrument

Derivative Financial Instruments
	3 Months Ended Mar. 31, 2010
Derivative Financial Instruments [Abstract]
Derivative Financial Instruments	4. Derivative Financial Instruments Accounting for Derivative Financial Instruments Derivatives are financial instruments whose values are derived from interest rates, foreign currency exchange rates, or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter market. The Company uses a variety of derivatives, including swaps, forwards, futures and option contracts, to manage risks relating to its ongoing business. To a lesser extent, the Company uses credit derivatives, such as credit default swaps, to synthetically replicate investment risks and returns which are not readily available in the cash market. The Company also purchases certain securities, issues certain insurance policies and investment contracts and engages in certain reinsurance contracts that have embedded derivatives. Freestanding derivatives are carried on the Companys consolidated balance sheets either as assets within other invested assets or as liabilities within other liabilities at estimated fair value as determined through the use of quoted market prices for exchange-traded derivatives and interest rate forwards to sell certain to-be-announced securities or through the use of pricing models for over-the-counter derivatives. The determination of estimated fair value, when quoted market values are not available, is based on market standard valuation methodologies and inputs that are assumed to be consistent with what other market participants would use when pricing the instruments. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk (including the counterparties to the contract), volatility, liquidity and changes in estimates and assumptions used in the pricing models. The Company does not offset the fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. 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 generally reported in net investment gains (losses) except for those (i)in policyholder benefits and claims for economic hedges of variable annuity guarantees included in future policy benefits; (ii)in net investment income for economic hedges of equity method investments in joint ventures, or for all derivatives held in relation to the trading portfolios; (iii)in other revenues for derivatives held in connection with the Companys mortgage banking activities; and (iv)in other expenses for economic hedges of foreign currency exposure related to the Companys international subsidiaries. The fluctuations in estimated fair value of derivatives which have not been designated for hedge accounting can result in significant volatility in net income. 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 as either (i)a hedge of the

Fair Value

Fair Value
	3 Months Ended Mar. 31, 2010
Fair Value [Abstract]
Fair Value	5. Fair Value Considerable judgment is often required in interpreting market data to develop estimates of fair value and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. Fair Value of Financial Instruments Amounts related to the Companys financial instruments are as follows: Estimated Notional Carrying Fair March31, 2010 Amount Value Value (In millions) Assets Fixed maturity securities $ 239,566 $ 239,566 Equity securities $ 3,066 $ 3,066 Trading securities: Trading securities $ 2,765 $ 2,765 Trading securities held by consolidated securitization entities 274 274 Total trading securities $ 3,039 $ 3,039 Mortgage loans: Held-for-investment: Mortgage loans $ 48,368 $ 47,504 Mortgage loans held by consolidated securitization entities 7,065 7,065 Total mortgage loans held-for-investment $ 55,433 $ 54,569 Held-for-sale $ 2,003 $ 2,003 Mortgage loans, net $ 57,436 $ 56,572 Policy loans $ 10,146 $ 11,407 Real estate joint ventures (1) $ 101 $ 113 Other limited partnership interests (1) $ 1,583 $ 1,695 Short-term investments $ 8,019 $ 8,019 Other invested assets: (1) Derivative assets: (2) Interest rate contracts $ 76,721 $ 2,442 $ 2,442 Foreign currency contracts 11,482 1,576 1,576 Credit contracts 5,195 88 88 Equity market contracts 28,994 1,566 1,566 Total derivative assets $ 122,392 $ 5,672 $ 5,672 Mortgage servicing rights $ 859 $ 859 Other $ 1,267 $ 1,267 Cash and cash equivalents $ 9,202 $ 9,202 Accrued investment income $ 3,392 $ 3,392 Premiums, reinsurance and other receivables (1) $ 3,197 $ 3,310 Other assets (1) $ 425 $ 430 Separate account assets $ 158,436 $ 158,436 Net embedded derivatives within asset host contracts

Closed Block

Closed Block
	3 Months Ended Mar. 31, 2010
Closed Block [Abstract]
Closed Block	6. Closed Block On April7, 2000, (the Demutualization Date), 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 MLICs plan of reorganization, as amended (the Plan). On the Demutualization Date, MLIC established a closed block for the benefit of holders of certain individual life insurance policies of MLIC. Recent experience within the closed block, in particular mortality and investment yields, as well as realized and unrealized losses, have resulted in a policyholder dividend obligation of zero at both March31, 2010 and December31, 2009. The policyholder dividend obligation of zero and the Companys decision to revise the expected policyholder dividend scales, which are based upon statutory results, have resulted in a reduction to both actual and expected cumulative earnings of the closed block. Amortization of the closed block DAC, which resides outside of the closed block, will be based upon actual cumulative earnings rather than expected cumulative earnings of the closed block until such time as the actual cumulative earnings of the closed block exceed the expected cumulative earnings, at which time the policyholder dividend obligation will be reestablished. Actual cumulative earnings less than expected cumulative earnings will result in future adjustments to DAC and net income of the Company and increase sensitivity of the Companys net income to movements in closed block results. Information regarding the closed block liabilities and assets designated to the closed block is as follows: March31, 2010 December31, 2009 (In millions) Closed Block Liabilities Future policy benefits $ 43,462 $ 43,576 Other policyholder funds 329 307 Policyholder dividends payable 637 615 Other liabilities 639 576 Total closed block liabilities 45,067 45,074 Assets Designated to the Closed Block Investments: Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $27,309 and $27,129, respectively) 28,025 27,375 Equity securities available-for-sale, at estimated fair value (cost: $156 and $204, respectively) 164 218 Mortgage loans 6,151 6,200 Policy loans 4,569 4,538 Real estate and real estate joint ventures held-for-investment 314 321 Short-term investments 1 Other invested assets 491 463 Total investments 39,714 39,116 Cash and cash equivalents 186 241 Accrued investment income 530 489 Premiums, reinsurance and other receivables 105 78 Current income tax recoverable

Long-term and Short-term Debt

Long-term and Short-term Debt
	3 Months Ended Mar. 31, 2010
Long-term and Short-term Debt [Abstract]
Long-term and Short-term Debt	7. Long-term and Short-term Debt The following represents significant changes in debt from the amounts reported in Note11 of the Notes to the Consolidated Financial Statements included in the 2009 Annual Report. See Note3 for discussion of long-term debt of consolidated securitization entities. Repurchase Agreements with the Federal Home Loan Bank of New York MetLife Bank, National Association (MetLife Bank) is a member of the FHLB of NY and held $100million and $124million of common stock of the FHLB of NY at March31, 2010 and December31, 2009, respectively, which is included in equity securities. MetLife Bank has also entered into repurchase agreements with the FHLB of NY whereby MetLife Bank has issued repurchase agreements in exchange for cash and for which the FHLB of NY has been granted a blanket lien on certain of MetLife Banks residential mortgages, mortgage loans held-for-sale, commercial mortgages and mortgage-backed securities to collateralize MetLife Banks obligations under the repurchase agreements. MetLife Bank maintains control over these pledged assets, and may use, commingle, encumber or dispose of any portion of the collateral as long as there is no event of default and the remaining qualified collateral is sufficient to satisfy the collateral maintenance level. The repurchase agreements and the related security agreement represented by this blanket lien provide that upon any event of default by MetLife Bank, the FHLB of NYs recovery is limited to the amount of MetLife Banks liability under the outstanding repurchase agreements. The amount of MetLife Banks liability for repurchase agreements entered into with the FHLB of NY was $1.9billion and $2.4billion at March31, 2010 and December31, 2009, respectively, which is included in long-term debt and short term debt depending upon the original tenor of the advance. During the three months ended March31, 2010 and 2009, MetLife Bank received advances related to long-term borrowings totaling $163million and $50million, respectively, from the FHLB of NY. MetLife Bank made repayments to the FHLB of NY of $114million and $100million related to long-term borrowings for the three months ended March31, 2010 and 2009, respectively. The advances on the repurchase agreements related to both long-term and short-term debt were collateralized by residential mortgages, mortgage loans held-for-sale, commercial mortgages and mortgage-backed securities with estimated fair values of $5.6billion and $5.5billion at March31, 2010 and December31, 2009, respectively. Credit and Committed Facilities Concurrently with the entry into the Stock Purchase Agreement (see Note2), the Holding Company signed a commitment letter (amended and restated on March16, 2010)with various financial institutions for a senior credit facility in an aggregate principal amount of up to $5.0billion. At the Holding Companys option, any loan under the senior credit facility will bear interest at a rate equal to (i)LIBOR plus the Applicable Margin (the Applicable Margin is 2.00% for the first 89days after the closing date and, beginning on the 90thday after the closing date, is calculated

Contingencies, Commitments and

Contingencies, Commitments and Guarantees
	3 Months Ended Mar. 31, 2010
Contingencies, Commitments and Guarantees [Abstract]
Contingencies, Commitments and Guarantees	8. 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 United States 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, demonstrate to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. Thus, unless stated below, the specific monetary relief sought is not noted. 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 inherently impossible to ascertain with any degree of certainty. Inherent uncertainties can include how fact finders will view individually and in their totality documentary evidence, the credibility and effectiveness of witnesses testimony and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation and contingencies to be reflected in the Companys consolidated financial statements. The review includes senior legal and financial personnel. Unless stated below, estimates of possible losses or ranges of loss for particular matters cannot in the ordinary course be made with a reasonable degree of certainty. Liabilities are established when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Liabilities have been established for a number of the matters noted below. It is possible that some of the matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at March31, 2010. 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

Employee Benefit Plans

Employee Benefit Plans
	3 Months Ended Mar. 31, 2010
Employee Benefit Plans [Abstract]
Employee Benefit Plans	9. Employee Benefit Plans Pension and Other Postretirement Benefit Plans Certain subsidiaries of the Holding Company (the Subsidiaries) sponsor and/or administer various qualified and non-qualified defined benefit pension plans and other postretirement employee benefit plans covering employees and sales representatives who meet specified eligibility requirements. The Subsidiaries also provide certain postemployment benefits and certain postretirement medical and life insurance benefits for retired employees. The Subsidiaries have issued group annuity and life insurance contracts supporting approximately 99% of all pension and other postretirement benefit plan assets, which are invested primarily in separate accounts sponsored by the Subsidiaries. A December 31 measurement date is used for all of the Subsidiaries defined benefit pension and other postretirement benefit plans. The components of net periodic benefit cost were as follows: Other Postretirement Pension Benefits Benefits Three Months Three Months Ended Ended March31, March31, 2010 2009 2010 2009 (In millions) Service cost $ 44 $ 43 $ 4 $ 6 Interest cost 99 100 28 32 Expected return on plan assets (112 ) (112 ) (19 ) (19 ) Amortization of net actuarial (gains) losses 49 57 9 10 Amortization of prior service cost (credit) 2 2 (21 ) (9 ) Net periodic benefit cost $ 82 $ 90 $ 1 $ 20 The components of net periodic benefit cost amortized from accumulated other comprehensive income (loss) were as follows: Other Postretirement Pension Benefits Benefits Three Months Three Months Ended Ended March31, March31, 2010 2009 2010 2009 (In millions) Amortization of net actuarial (gains) losses $ 49 $ 57 $ 9 $ 10 Amortization of prior service cost (credit) 2 2 (21 ) (9 ) Subtotal 51 59 (12 ) 1 Deferred income tax expense (benefit) (18 ) (21 ) (2 ) Components of net periodic benefit cost amortized from accumulated other comprehensive income (loss), net of income tax $ 33 $ 38 $ (14 ) $ 1 As disclosed in Note17 of the Notes to the Consolidated Financial Statements included in the 2009 Annual Report, n

Equity

Equity
	3 Months Ended Mar. 31, 2010
Equity [Abstract]
Equity	10. Equity Stock-Based Compensation Plans Payout of 2007-2009 Performance Shares Beginning in 2005, certain members of management were awarded Performance Shares under (and as defined in) the MetLife, Inc. 2005 Stock and Incentive Compensation Plan. Participants are awarded an initial target number of Performance Shares with the final number of Performance Shares payable being determined by the product of the initial target multiplied by a performance factor of 0.0 to 2.0 based on measurements of the Holding Companys performance. Performance Share awards normally vest in their entirety at the end of the three-year performance period (subject to certain contingencies). Vested awards are payable in shares of the Holding Companys common stock. The performance factor for the January1, 2007 December31, 2009 performance period was 94%. This factor has been applied to the 807,750 Performance Shares associated with that performance period that vested on December31, 2009, and as a result 759,285shares of the Holding Companys common stock (less withholding for taxes and other items, as applicable) will be issued during the second quarter of 2010 or on later dates. The performance factor applied for the January1, 2007 - December31, 2009 performance period was determined based on measurements of the Holding Companys performance that included: (i)the change in annual net operating earnings per share, as defined in the applicable award agreements; and (ii)the proportionate total shareholder return, as defined in the applicable award agreements, each with reference to the applicable three-year performance period relative to other Fortune 500companies in the SP Insurance Index with reference to the same three-year period.

Other Expense

Other Expense
	3 Months Ended Mar. 31, 2010
Other Expense [Abstract]
Other Expense	11. Other Expenses Information on other expenses is as follows: Three Months Ended March31, 2010 2009 (In millions) Compensation $ 932 $ 913 Commissions 815 856 Interest and debt issue costs 380 255 Interest credited to bank deposits 39 43 Capitalization of DAC (744 ) (786 ) Amortization of DAC and VOBA 602 929 Rent, net of sublease income 99 113 Insurance tax 115 125 Other 704 554 Total other expenses $ 2,942 $ 3,002 Interest and Debt Issue Costs Includes interest expense related to consolidated securitization entities of $106million and $0, for the three months ended March31, 2010 and 2009, respectively (see Note3), and interest expense on tax audits of $10million and $10million, for the three months ended March31, 2010 and 2009, respectively. Costs Related to Pending Acquisition Related to the pending acquisition of Alico discussed in Note2, the Company incurred $27million of transaction costs, which primarily consisted of investment banking and legal fees, for the three months ended March31, 2010. Such costs were included in other expenses. Integration related expenses incurred for the three months ended March31, 2010 and included in other expenses were $2million. Integration of Alico is an enterprise-wide initiative, and the expenses were incurred within Banking, Corporate Other. Restructuring Charges In September 2008, the Company began an enterprise-wide cost reduction and revenue enhancement initiative which is expected to be fully implemented by December31, 2010. This initiative is focused on reducing complexity, leveraging scale, increasing productivity and improving the effectiveness of the Companys operations, as well as providing a foundation for future growth. These restructuring costs were included in other expenses. As the expenses relate to an enterprise-wide initiative, they were incurred within Banking, Corporate Other. Estimated restructuring costs may change as management continues to execute its restructuring plans. Restructuring charges associated with this enterprise-wide initiative are as follows: Three Months Ended March31, 2010 2009 (In millions) Balance, beginning of period $ 36 $ 86 Severance charges 11 22 Change in severance charge estimates 2 (1 ) Cash payments (24 ) (68 ) Balance, end of period $ 25 $ 39 Restructuring charges incurred in current period $ 13 $ 21 Total restructuring charges incurred since inception of program $ 190 $ 122 For the three months

Earnings Per Common Share

Earnings Per Common Share
	3 Months Ended Mar. 31, 2010
Earnings Per Common Share [Abstract]
Earnings Per Common Share	12. Earnings Per Common Share The following table presents the weighted average shares used in calculating basic earnings per common share and those used in calculating diluted earnings per common share for each income category presented below: Three Months Ended March31, 2010 2009 (In millions, except share and per share data) Weighted Average Shares: Weighted average common stock outstanding for basic earnings per common share 822,654,945 809,101,944 Incremental common shares from assumed: Exercise or issuance of stock-based awards (1) 5,966,444 Weighted average common stock outstanding for diluted earnings per common share 828,621,389 809,101,944 Income (Loss) from Continuing Operations: Income (loss) from continuing operations, net of income tax $ 833 $ (585 ) Less: Income (loss) attributable to noncontrolling interests, net of income tax (1 ) (4 ) Less: Preferred stock dividends 30 30 Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.s common shareholders $ 804 $ (611 ) Basic $ 0.98 $ (0.76 ) Diluted $ 0.97 $ (0.76 ) Income from Discontinued Operations: Income (loss) from discontinued operations, net of income tax $ 1 $ 37 Less: Income 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 $ 1 $ 37 Basic $ $ 0.05 Diluted $ $ 0.05 Net Income (Loss): Net income (loss) $ 834 $ (548 ) Less: Net income (loss) attributable to noncontrolling interests (1 ) (4 ) Less: Preferred stock dividends 30 30 Net income (loss) available to MetLife, Inc.s common shareholders $ 805 $ (574 ) Basic $ 0.98 $ (0.71 ) Diluted $ 0.97 $ (0.71 ) (1) For the three months ended March31, 2009, 1,679,455shares related to the assumed exercise or issuance of stock-based awards have been excluded from the calculation of diluted earnings per common share as these assumed shares are anti-dilutive.

Business Segment Information

Business Segment Information
	3 Months Ended Mar. 31, 2010
Business Segment Information [Abstract]
Business Segment Information	13. Business Segment Information The Companys business is currently divided into five operating segments. The Companys U.S.Business operations consists of the Insurance Products, Retirement Products, Corporate Benefit Funding and Auto Home segments. The Company also has an International segment. In addition, the Company reports certain of its results of operations in Banking, Corporate Other. Insurance Products offers a broad range of protection products and services to individuals, corporations and other institutions, and is organized into three distinct businesses: Group Life, Individual Life and Non-Medical Health. Group Life insurance products and services include variable life, universal life and term life. Individual Life includes variable life, universal life, term life and whole life insurance products. Non-Medical Health includes short- and long-term disability, long-term care, dental insurance, and other insurance products. Retirement Products offers asset accumulation and income products, including a wide variety of annuities. Corporate Benefit Funding offers pension risk solutions, structured settlements, stable value and investment products and other benefit funding products. Auto Home provides personal lines property and casualty insurance, including private passenger automobile, homeowners and personal excess liability insurance. International provides life insurance, accident and health insurance, annuities and retirement products to both individuals and groups. Banking, Corporate Other contains the excess capital not allocated to the business segments, the results of operations of MetLife Bank, various start-up entities and run-off entities, as well as interest expense related to the majority of the Companys outstanding debt and expenses associated with certain legal proceedings and income tax audit issues. Banking, Corporate Other also includes the elimination of intersegment amounts, which generally relate to intersegment loans, which bear interest rates commensurate with related borrowings. Operating earnings is the measure of segment profit or loss the Company uses to evaluate segment performance and allocate resources. Consistent with GAAP accounting guidance for segment reporting, it is the Companys measure of segment performance reported below. Operating earnings does not equate to income (loss) from continuing operations, net of income tax or net income (loss) as determined in accordance with GAAP and should not be viewed as a substitute for those GAAP measures. The Company believes the presentation of operating earnings herein as we measure it for management purposes enhances the understanding of its performance by highlighting the results from operations and the underlying profitability drivers of the businesses. Operating earnings is defined as operating revenues less operating expenses, net of income tax. Operating revenues is defined as GAAP revenues (i)less net investment gains (losses); (ii)less amortization of unearned revenue related to net investment gains (losses); (iii)plus scheduled periodic settlement payments on derivative instruments that are hedges of inv

Discontinued Operations

Discontinued Operations
	3 Months Ended Mar. 31, 2010
Discontinued Operations [Abstract]
Discontinued Operations	14. Discontinued Operations Real Estate The Company actively manages its real estate portfolio with the objective of maximizing earnings through selective acquisitions and dispositions. Income related to real estate classified as held-for-sale or sold is presented in discontinued operations. These assets are carried at the lower of depreciated cost or estimated fair value less expected disposition costs. Income from discontinued real estate operations, net of income tax, was $1million for both the three months ended March31, 2010 and 2009. The carrying value of real estate related to discontinued operations was $40million and $44million at March31, 2010 and December31, 2009, respectively. Operations Texas Life Insurance Company During the fourth quarter of 2008, the Holding Company entered into an agreement to sell its wholly-owned subsidiary, Cova Corporation (Cova), the parent company of Texas Life Insurance Company, to a third-party and the sale occurred in March 2009. The following table presents the amounts related to the operations of Cova that have been reflected as discontinued operations in the consolidated statements of operations: Three Months Ended March31, 2009 (In millions) Revenues: Premiums $ 3 Universal life and investment-type product policy fees 15 Net investment income 6 Net investment gains (losses) 1 Total revenues 25 Expenses: Policyholder benefits and claims 10 Interest credited to policyholder account balances 3 Policyholder dividends 1 Other expenses 5 Total expenses 19 Income before provision for income tax 6 Provision for income tax 2 Income from operations of discontinued operations, net of income tax 4 Gain on disposal, net of income tax 32 Income from discontinued operations, net of income tax $ 36

Subsequent Events

Subsequent Events
	3 Months Ended Mar. 31, 2010
Subsequent Events [Abstract]
Subsequent Events	15. Subsequent Events The Company evaluated the recognition and disclosure of subsequent events for its March31, 2010 interim condensed consolidated financial statements. On April19, 2010, the Company entered into a definitive agreement with a third party to sell MetLife Taiwan Insurance Company Limited (MetLife Taiwan) for approximately $113million in cash consideration. The total equity of MetLife Taiwan was $218million, including accumulated other comprehensive income of $54million, at March31, 2010. The transaction is expected to close in the second half of 2010, subject to certain regulatory approvals and other customary closing conditions.