Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Mar. 19, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | METROPOLITAN LIFE INSURANCE CO | |
Entity Central Index Key | 937,834 | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | FY | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Public Float | $ 0 | |
Entity Common Stock, Shares Outstanding | 494,466,664 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Investments: | ||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $157,809 and $155,141, respectively) | $ 170,272 | $ 163,120 |
Equity securities available-for-sale, at estimated fair value (cost: $1,579 and $1,785, respectively) | 1,658 | 1,839 |
Mortgage loans (net of valuation allowances of $271 and $267, respectively; includes $520 and $566, respectively, under the fair value option) | 58,459 | 56,560 |
Policy loans | 6,006 | 5,945 |
Real estate and real estate joint ventures (includes $1,077 and $1,124, respectively, relating to variable interest entities; includes $25 and $56, respectively, of real estate held-for-sale) | 6,656 | 6,386 |
Other limited partnership interests (includes $0 and $14, respectively, relating to variable interest entities) | 3,991 | 3,725 |
Short-term investments, principally at estimated fair value | 3,155 | 4,690 |
Other invested assets (includes $131 and $39, respectively, relating to variable interest entities) | 14,911 | 17,255 |
Total investments | 265,108 | 259,520 |
Cash and cash equivalents, at estimated fair value (includes $12 and $0, respectively, relating to variable interest entities) | 5,069 | 5,714 |
Accrued investment income | 2,042 | 2,019 |
Premiums, reinsurance and other receivables (includes $3 and $6, respectively, relating to variable interest entities) | 22,098 | 22,383 |
Deferred policy acquisition costs and value of business acquired | 4,348 | 4,743 |
Current income tax recoverable | 64 | 0 |
Other assets (includes $2 and $3, respectively, relating to variable interest entities) | 4,741 | 4,346 |
Separate account assets | 130,825 | 133,836 |
Total assets | 434,295 | 432,561 |
Liabilities | ||
Future policy benefits | 119,415 | 115,519 |
Policyholder account balances | 93,939 | 92,466 |
Other policy-related balances | 7,176 | 7,103 |
Policyholder dividends payable | 499 | 510 |
Policyholder dividend obligation | 2,121 | 1,931 |
Payables for collateral under securities loaned and other transactions | 19,871 | 20,815 |
Short-term debt | 243 | 100 |
Long-term debt (includes $6 and $12, respectively, at estimated fair value, relating to variable interest entities) | 1,667 | 1,589 |
Taxes Payable, Current | 0 | 50 |
Deferred income tax liability | 1,369 | 2,385 |
Other liabilities (includes $3 and $0, respectively, relating to variable interest entities) | 27,409 | 29,497 |
Separate account liabilities | 130,825 | 133,836 |
Total liabilities | 404,534 | 405,801 |
Contingencies, Commitments and Guarantees (Note 16) | ||
Metropolitan Life Insurance Company stockholder’s equity: | ||
Common stock, par value $0.01 per share; 1,000,000,000 shares authorized; 494,466,664 shares issued and outstanding | 5 | 5 |
Additional paid-in capital | 14,150 | 14,413 |
Retained earnings | 10,035 | 9,033 |
Accumulated other comprehensive income (loss) | 5,428 | 3,119 |
Total Metropolitan Life Insurance Company stockholder’s equity | 29,618 | 26,570 |
Noncontrolling interests | 143 | 190 |
Total equity | 29,761 | 26,760 |
Total liabilities and equity | $ 434,295 | $ 432,561 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Amortized cost of fixed maturity securities available-for-sale | $ 157,809 | $ 155,141 |
Cost of equity securities available-for-sale | 1,579 | 1,785 |
Mortgage loans valuation allowances | 271 | 267 |
Mortgage loans, under fair value option | 58,459 | 56,560 |
Real estate and real estate joint ventures relating to variable interest entities | 6,656 | 6,386 |
Real estate held-for-sale | 25 | 56 |
Other limited partnership interests relating to variable interest entities | 3,991 | 3,725 |
Other invested assets relating to variable interest entities | 14,911 | 17,255 |
Cash and cash equivalents relating to variable interest entities | 5,069 | 5,714 |
Premiums, reinsurance and other receivables relating to variable interest entities | 22,098 | 22,383 |
Other assets relating to variable interest entities | 4,741 | 4,346 |
Liabilities | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 1,667 | 1,589 |
Other liabilities relating to variable interest entities | $ 27,409 | $ 29,497 |
Metropolitan Life Insurance Company stockholder’s equity: | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 494,466,664 | 494,466,664 |
Common stock, shares outstanding | 494,466,664 | 494,466,664 |
Residential mortgage loans — FVO | ||
Assets | ||
Mortgage loans, under fair value option | $ 520 | $ 566 |
Variable interest entities | ||
Assets | ||
Real estate and real estate joint ventures relating to variable interest entities | 1,077 | 1,124 |
Other limited partnership interests relating to variable interest entities | 0 | 14 |
Other invested assets relating to variable interest entities | 131 | 39 |
Cash and cash equivalents relating to variable interest entities | 12 | 0 |
Premiums, reinsurance and other receivables relating to variable interest entities | 3 | 6 |
Other assets relating to variable interest entities | 2 | 3 |
Liabilities | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 6 | 12 |
Other liabilities relating to variable interest entities | $ 3 | $ 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||
Premiums | $ 22,925 | $ 22,393 | $ 21,934 |
Universal life and investment-type product policy fees | 2,227 | 2,542 | 2,584 |
Net investment income | 10,513 | 11,083 | 11,539 |
Other revenues | 1,570 | 1,478 | 1,536 |
Net investment gains (losses): | |||
Other-than-temporary impairments on fixed maturity securities | (7) | (87) | (49) |
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss) | 1 | (10) | (5) |
Other net investment gains (losses) | 340 | 229 | 313 |
Total net investment gains (losses) | 334 | 132 | 259 |
Net derivative gains (losses) | (344) | (1,138) | 881 |
Total revenues | 37,225 | 36,490 | 38,733 |
Expenses | |||
Policyholder benefits and claims | 25,792 | 25,313 | 24,547 |
Interest credited to policyholder account balances | 2,235 | 2,233 | 2,183 |
Policyholder dividends | 1,097 | 1,200 | 1,264 |
Other expenses | 5,135 | 5,803 | 6,258 |
Total expenses | 34,259 | 34,549 | 34,252 |
Income (loss) before provision for income tax | 2,966 | 1,941 | 4,481 |
Provision for income tax expense (benefit) | (561) | 199 | 1,763 |
Net income (loss) | 3,527 | 1,742 | 2,718 |
Less: Net income (loss) attributable to noncontrolling interests | 2 | (8) | 0 |
Net income (loss) attributable to Metropolitan Life Insurance Company | $ 3,525 | $ 1,750 | $ 2,718 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 3,527 | $ 1,742 | $ 2,718 |
Other comprehensive income (loss): | |||
Unrealized investment gains (losses), net of related offsets | 4,079 | 406 | (4,434) |
Unrealized gains (losses) on derivatives | (848) | 36 | 559 |
Foreign currency translation adjustments | 26 | 13 | (101) |
Defined benefit plans adjustment | 129 | 217 | 342 |
Other comprehensive income (loss), before income tax | 3,386 | 672 | (3,634) |
Income tax (expense) benefit related to items of other comprehensive income (loss) | (1,077) | (238) | 1,285 |
Other comprehensive income (loss), net of income tax | 2,309 | 434 | (2,349) |
Comprehensive income (loss) | 5,836 | 2,176 | 369 |
Less: Comprehensive income (loss) attributable to noncontrolling interest, net of income tax | 2 | (8) | 0 |
Comprehensive income (loss) attributable to Metropolitan Life Insurance Company | $ 5,834 | $ 2,184 | $ 369 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | GALIC and NELICO | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsGALIC and NELICO | Accumulated Other Comprehensive Income (Loss) | Total Metropolitan Life Insurance Company Stockholders' Equity | Total Metropolitan Life Insurance Company Stockholders' EquityGALIC and NELICO | Noncontrolling Interests | Noncontrolling InterestsGALIC and NELICO |
Beginning Balance (Scenario, Previously Reported) at Dec. 31, 2014 | $ 32,349 | $ 5 | $ 14,448 | $ 12,470 | $ 5,034 | $ 31,957 | $ 392 | ||||
Beginning Balance (Restatement Adjustment) | (164) | (164) | (164) | ||||||||
Beginning Balance at Dec. 31, 2014 | 32,185 | 5 | 14,448 | 12,306 | 5,034 | 31,793 | 392 | ||||
Capital contributions from MetLife, Inc. | 4 | 4 | 4 | ||||||||
Returns of capital | (11) | (11) | (11) | ||||||||
Excess tax benefits related to stock-based compensation | 3 | 3 | 3 | ||||||||
Dividends paid to MetLife, Inc. | (1,489) | (1,489) | (1,489) | ||||||||
Dividend of subsidiary | 0 | ||||||||||
Change in equity of noncontrolling interests | (20) | 0 | (20) | ||||||||
Net income (loss) | Scenario, Previously Reported | 2,757 | ||||||||||
Net income (loss) | Restatement Adjustment | (39) | ||||||||||
Net income (loss) | 2,718 | 2,718 | 2,718 | ||||||||
Other comprehensive income (loss), net of income tax | (2,349) | (2,349) | (2,349) | ||||||||
Ending Balance (Scenario, Previously Reported) at Dec. 31, 2015 | 31,244 | ||||||||||
Ending Balance (Restatement Adjustment) | (203) | ||||||||||
Ending Balance at Dec. 31, 2015 | 31,041 | 5 | 14,444 | 13,535 | 2,685 | 30,669 | 372 | ||||
Capital contributions from MetLife, Inc. | 10 | 10 | 10 | ||||||||
Returns of capital | (68) | (68) | (68) | ||||||||
Excess tax benefits related to stock-based compensation | 27 | 27 | 27 | ||||||||
Dividends paid to MetLife, Inc. | (3,600) | (3,600) | (3,600) | ||||||||
Dividend of subsidiary | (2,904) | $ (2,650) | $ (2,652) | $ (2,652) | $ 2 | ||||||
Change in equity of noncontrolling interests | (176) | 0 | (176) | ||||||||
Net income (loss) | Scenario, Previously Reported | 1,756 | ||||||||||
Net income (loss) | Restatement Adjustment | (14) | ||||||||||
Net income (loss) | 1,742 | 1,750 | 1,750 | (8) | |||||||
Other comprehensive income (loss), net of income tax | 434 | 434 | 434 | ||||||||
Ending Balance (Scenario, Previously Reported) at Dec. 31, 2016 | 26,977 | ||||||||||
Ending Balance (Restatement Adjustment) | (217) | ||||||||||
Ending Balance at Dec. 31, 2016 | 26,760 | 5 | 14,413 | 9,033 | 3,119 | 26,570 | 190 | ||||
Capital contributions from MetLife, Inc. | 6 | 6 | 6 | ||||||||
Returns of capital | (20) | (20) | (20) | ||||||||
Purchase of operating joint venture interest from an affiliate (Note 8) | (249) | (249) | (249) | ||||||||
Dividends paid to MetLife, Inc. | (2,523) | (2,523) | (2,523) | ||||||||
Dividend of subsidiary | 0 | ||||||||||
Change in equity of noncontrolling interests | (49) | 0 | (49) | ||||||||
Net income (loss) | 3,527 | 3,525 | 3,525 | 2 | |||||||
Other comprehensive income (loss), net of income tax | 2,309 | 2,309 | 2,309 | ||||||||
Ending Balance at Dec. 31, 2017 | $ 29,761 | $ 5 | $ 14,150 | $ 10,035 | $ 5,428 | $ 29,618 | $ 143 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||
Cash flows from operating activities | ||||
Net income (loss) | $ 3,527 | $ 1,742 | $ 2,718 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization expenses | 395 | 367 | 474 | |
Amortization of premiums and accretion of discounts associated with investments, net | (823) | (975) | (848) | |
(Gains) losses on investments and from sales of businesses, net | (334) | (132) | (259) | |
(Gains) losses on derivatives, net | 900 | 1,865 | (426) | |
(Income) loss from equity method investments, net of dividends or distributions | 314 | 483 | 320 | |
Interest credited to policyholder account balances | 2,235 | 2,233 | 2,183 | |
Universal life and investment-type product policy fees | (2,227) | (2,542) | (2,584) | |
Change in fair value option and trading securities | 17 | 406 | 278 | |
Change in accrued investment income | (40) | 81 | 113 | |
Change in premiums, reinsurance and other receivables | 277 | (2,606) | (135) | |
Change in deferred policy acquisition costs and value of business acquired, net | 180 | 108 | 260 | |
Change in income tax | (2,200) | (438) | 238 | |
Change in other assets | 309 | 701 | 763 | |
Change in insurance-related liabilities and policy-related balances | 4,029 | 2,741 | 2,648 | |
Change in other liabilities | (156) | 1,731 | (461) | |
Other, net | (49) | 39 | (16) | |
Net cash provided by (used in) operating activities | 6,354 | 5,804 | 5,266 | |
Cash flows from investing activities | ||||
Sales, maturities and repayments of fixed maturity securities | 53,984 | 74,985 | 82,744 | |
Sales, maturities and repayments of equity securities | 831 | 859 | 651 | |
Sales, maturities and repayments of mortgage loans | 8,810 | 11,286 | 11,189 | |
Sales, maturities and repayments of real estate and real estate joint ventures | 955 | 762 | 2,734 | |
Sales, maturities and repayments of other limited partnership interests | 565 | 830 | 1,185 | |
Purchases of fixed maturity securities | (55,973) | (72,414) | (76,594) | |
Purchases of equity securities | (607) | (771) | (694) | |
Purchases of mortgage loans | (10,680) | (16,039) | (16,268) | |
Purchases of real estate and real estate joint ventures | (885) | (1,390) | (823) | |
Purchases of other limited partnership interests | (794) | (809) | (668) | |
Cash received in connection with freestanding derivatives | 1,661 | 1,372 | 1,039 | |
Cash paid in connection with freestanding derivatives | (2,688) | (2,451) | (1,012) | |
Net change in policy loans | (61) | 85 | 357 | |
Net change in short-term investments | 1,623 | 694 | (1,117) | |
Net change in other invested assets | (177) | (434) | (603) | |
Net change in property, equipment and leasehold improvements | (177) | (227) | 23 | |
Net cash provided by (used in) investing activities | (3,613) | (3,662) | 2,143 | |
Cash flows from financing activities | ||||
Policyholder account balances: Deposits | 70,258 | 64,962 | 60,216 | |
Policyholder account balances: Withdrawals | (70,215) | (61,252) | (61,248) | |
Net change in payables for collateral under securities loaned and other transactions | (525) | (696) | (2,230) | |
Long-term debt issued | 169 | 45 | 907 | |
Long-term debt repaid | (92) | (58) | (673) | |
Financing element on certain derivative instruments and other derivative related transactions, net | (300) | (321) | (66) | |
Cash paid in connection with noncontrolling interests | (71) | 0 | (159) | |
Dividend of subsidiaries | 0 | (115) | 0 | |
Dividends paid to MetLife, Inc. | (2,523) | (3,600) | (1,489) | |
Returns of capital | (5) | (68) | (11) | |
Return of capital associated with the purchase of operating joint venture interest from an affiliate (Note 8) | (249) | 0 | 0 | |
Other, net | 164 | 24 | 2 | |
Net cash provided by (used in) financing activities | (3,389) | (1,079) | (4,751) | |
Effect of Exchange Rate on Cash and Cash Equivalents | 3 | 0 | 0 | |
Change in cash and cash equivalents | (645) | 1,063 | 2,658 | |
Cash and cash equivalents, beginning of year | 5,714 | 4,651 | 1,993 | |
Cash and cash equivalents, end of year | 5,069 | 5,714 | 4,651 | |
Supplemental disclosures of cash flow information | ||||
Net cash paid for Interest | 105 | 114 | 123 | |
Net cash paid (received) for Income tax | 1,693 | 819 | 1,217 | |
Non-cash transactions | ||||
Capital contributions from MetLife, Inc. | 6 | 10 | 4 | |
Returns of capital | 15 | 0 | 0 | |
Fixed maturity securities received in connection with pension risk transfer transactions | 0 | 985 | 903 | |
Transfer of fixed maturity securites from affiliates | 292 | 367 | 0 | |
Transfer of fixed maturity securities to affiliates | 0 | 3,940 | 0 | |
Transfer of mortgage loans to affiliates | 0 | 626 | 0 | |
Reduction of long-term debt | 0 | 0 | 543 | [1] |
Reduction of real estate and real estate joint ventures | 0 | 354 | 389 | [1] |
Increase in noncontrolling interests | 0 | 0 | 153 | [1] |
Reduction of noncontrolling interests | 0 | 354 | 0 | |
Disposal of subsidiaries: | ||||
Assets disposed | 0 | 27,476 | 0 | |
Liabilities disposed | 0 | (24,572) | 0 | |
Dividends, Common Stock, Paid-in-kind | 0 | 2,904 | 0 | |
Cash disposed | 0 | (115) | 0 | |
Dividend of interests in subsidiaries | 0 | (2,789) | 0 | |
Loss on dividend of interests in subsidiaries | $ 0 | $ 0 | $ 0 | |
[1] | (1)For the year ended December 31, 2015, amounts represent the impact of the consolidation of a real estate investment vehicle, offset by the subsequent deconsolidation of such real estate investment vehicle. |
Business, Basis of Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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 Metropolitan Life Insurance Company and its subsidiaries (collectively, “MLIC” or the “Company”) is a provider of insurance, annuities, employee benefits and asset management and is organized into two segments: U.S. and MetLife Holdings. Metropolitan Life Insurance Company is a wholly-owned subsidiary of MetLife, Inc. (MetLife, Inc., together with its subsidiaries and affiliates, “MetLife”). 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 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 consolidated financial statements include the accounts of Metropolitan Life Insurance 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. Intercompany accounts and transactions have been eliminated. Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone entity. 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. Separate Accounts Separate accounts are established in conformity with insurance laws. Generally, the assets of the separate accounts cannot be used to settle the liabilities that arise from any other business of the Company. Separate account assets are subject to general account claims only to the extent the value of such assets exceeds the separate account liabilities. The Company reports separately, as assets and liabilities, investments held in separate accounts and liabilities of the separate accounts if: • such separate accounts are legally recognized; • assets supporting the contract liabilities are legally insulated from the Company’s general account liabilities; • investments are directed by the contractholder; and • all investment performance, net of contract fees and assessments, is passed through to the contractholder. The Company reports separate account assets at their fair value, which is based on the estimated fair values of the underlying assets comprising the individual separate account portfolios. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to contractholders of such separate accounts are offset within the same line on the statements of operations. Separate accounts credited with a contractual investment return are combined on a line-by-line basis with the Company’s general account assets, liabilities, revenues and expenses and the accounting for these investments is consistent with the methodologies described herein for similar financial instruments held within the general account. The Company’s revenues reflect fees charged to the separate accounts, including mortality charges, risk charges, policy administration fees, investment management fees and surrender charges. Such fees are included in universal life and investment-type product policy fees on the statements of operations. Reclassifications Certain amounts in the prior years’ consolidated financial statements and related footnotes thereto have been reclassified to conform with the current year presentation as discussed throughout the Notes to the Consolidated Financial Statements. Revisions On December 15, 2017, MetLife, Inc. announced that it was undertaking a review of practices and procedures used to estimate its reserves related to certain Retirement and Income Solutions (“RIS”) group annuitants who have been unresponsive or missing over time. As a result of this process, the Company increased reserves by $510 million , before income tax, to reinstate reserves previously released, and to reflect accrued interest and other related liabilities. Of this increase, $372 million was considered an error and, recording this amount in the fourth quarter of 2017 financial statements would have had a material effect on the results of operations for 2017. As a result of this adjustment, amounts previously reported have been immaterially restated. The impact of this revision to net income (loss) attributable to Metropolitan Life Insurance Company was a reduction of $21 million and $20 million for the years ended December 31, 2016 and 2015, respectively. In addition, the Company has corrected other unrelated immaterial errors which were previously recorded in the periods the Company identified them. The impact of the revisions is shown in the tables below: December 31, 2016 Consolidated Balance Sheets As Revisions As (In millions) Liabilities Future policy benefits $ 115,556 $ (37 ) $ 115,519 Other policy-related balances $ 6,731 $ 372 $ 7,103 Deferred income tax liability $ 2,503 $ (118 ) $ 2,385 Total liabilities $ 405,584 $ 217 $ 405,801 Equity Retained earnings $ 9,250 $ (217 ) $ 9,033 Total Metropolitan Life Insurance Company stockholder’s equity $ 26,787 $ (217 ) $ 26,570 Total equity $ 26,977 $ (217 ) $ 26,760 For the Years Ended December 31, 2016 2015 Consolidated Statements of Operations As Revisions As As Revisions As (In millions, except per share data) Revenues Net investment income $ 11,083 $ — $ 11,083 $ 11,577 $ (38 ) $ 11,539 Total revenues $ 36,490 $ — $ 36,490 $ 38,771 $ (38 ) $ 38,733 Expenses Policyholder benefits and claims $ 25,291 $ 22 $ 25,313 $ 24,527 $ 20 $ 24,547 Total expenses $ 34,527 $ 22 $ 34,549 $ 34,232 $ 20 $ 34,252 Income (loss) before provision for income tax $ 1,963 $ (22 ) $ 1,941 $ 4,539 $ (58 ) $ 4,481 Provision for income tax expense (benefit) $ 207 $ (8 ) $ 199 $ 1,782 $ (19 ) $ 1,763 Net income (loss) $ 1,756 $ (14 ) $ 1,742 $ 2,757 $ (39 ) $ 2,718 Net income (loss) attributable to Metropolitan Life Insurance Company $ 1,764 $ (14 ) $ 1,750 $ 2,757 $ (39 ) $ 2,718 For the Years Ended December 31, 2016 2015 Consolidated Statements of Comprehensive Income (Loss) As Revisions As Revised As Revisions As Revised (In millions) Net income (loss) $ 1,756 $ (14 ) $ 1,742 $ 2,757 $ (39 ) $ 2,718 Comprehensive income (loss) $ 2,190 $ (14 ) $ 2,176 $ 408 $ (39 ) $ 369 Comprehensive income (loss) attributable to Metropolitan Life Insurance Company $ 2,198 $ (14 ) $ 2,184 $ 408 $ (39 ) $ 369 Consolidated Statements of Equity As Revisions As Revised (In millions) Retained Earnings Balance at December 31, 2014 $ 12,470 $ (164 ) $ 12,306 Net income (loss) $ 2,757 $ (39 ) $ 2,718 Balance at December 31, 2015 $ 13,738 $ (203 ) $ 13,535 Net income (loss) $ 1,764 $ (14 ) $ 1,750 Balance at December 31, 2016 $ 9,250 $ (217 ) $ 9,033 Total Metropolitan Life Insurance Company Stockholder’s Equity Balance at December 31, 2014 $ 31,957 $ (164 ) $ 31,793 Balance at December 31, 2015 $ 30,872 $ (203 ) $ 30,669 Balance at December 31, 2016 $ 26,787 $ (217 ) $ 26,570 Total Equity Balance at December 31, 2014 $ 32,349 $ (164 ) $ 32,185 Balance at December 31, 2015 $ 31,244 $ (203 ) $ 31,041 Balance at December 31, 2016 $ 26,977 $ (217 ) $ 26,760 For the Years Ended December 31, 2016 2015 Consolidated Statements of Cash Flows As Revisions As Revised As Revisions As Revised (In millions) Cash flows from operating activities Net income (loss) $ 1,756 $ (14 ) $ 1,742 $ 2,757 $ (39 ) $ 2,718 Change in income tax $ (430 ) $ (8 ) $ (438 ) $ 257 $ (19 ) $ 238 Change in insurance-related liabilities and policy-related balances $ 2,719 $ 22 $ 2,741 $ 2,628 $ 20 $ 2,648 Change in other liabilities $ 1,731 $ — $ 1,731 $ (499 ) $ 38 $ (461 ) Summary of Significant Accounting Policies The following are the Company’s significant accounting policies with references to notes providing additional information on such policies and critical accounting estimates relating to such policies. Accounting Policy Note Insurance 4 Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles 5 Reinsurance 6 Investments 8 Derivatives 9 Fair Value 10 Employee Benefit Plans 14 Income Tax 15 Litigation Contingencies 16 Insurance Future Policy Benefit Liabilities and Policyholder Account Balances The Company establishes liabilities for amounts payable under insurance policies. Generally, amounts are payable over an extended period of time and related liabilities are calculated as the present value of future expected benefits to be paid, reduced by the present value of future expected premiums. Such liabilities are established based on methods and underlying assumptions in accordance with GAAP and applicable actuarial standards. Principal assumptions used in the establishment of liabilities for future policy benefits are mortality, morbidity, policy lapse, renewal, retirement, disability incidence, disability terminations, investment returns, inflation, expenses and other contingent events as appropriate to the respective product type. These assumptions are established at the time the policy is issued and are intended to estimate the experience for the period the policy benefits are payable. Utilizing these assumptions, liabilities are established on a block of business basis. For long-duration insurance contracts, assumptions such as mortality, morbidity and interest rates are “locked in” upon the issuance of new business. However, significant adverse changes in experience on such contracts may require the establishment of premium deficiency reserves. Such reserves are determined based on the then current assumptions and do not include a provision for adverse deviation. Premium deficiency reserves may also be established for short-duration contracts to provide for expected future losses. These reserves are based on actuarial estimates of the amount of loss inherent in that period, including losses incurred for which claims have not been reported. The provisions for unreported claims are calculated using studies that measure the historical length of time between the incurred date of a claim and its eventual reporting to the Company. Anticipated investment income is considered in the calculation of premium deficiency losses for short-duration contracts. Liabilities for universal and variable life policies with secondary guarantees and paid-up guarantees are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the accumulation period based on total expected assessments. The assumptions used in estimating the secondary and paid-up guarantee liabilities are consistent with those used for amortizing deferred policy acquisition costs (“DAC”), and are thus subject to the same variability and risk as further discussed herein. The assumptions of investment performance and volatility for variable products are consistent with historical experience of appropriate underlying equity indices, such as the Standard & Poor’s Global Ratings (“S&P”) 500 Index. The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios. The Company regularly reviews its estimates of liabilities for future policy benefits and compares them with its actual experience. Differences result in changes to the liability balances with related charges or credits to benefit expenses in the period in which the changes occur. Policyholder account balances relate to contracts or contract features where the Company has no significant insurance risk. The Company issues directly and assumes through reinsurance certain variable annuity products with guaranteed minimum benefits that provide the policyholder a minimum return based on their initial deposit adjusted for withdrawals. These guarantees are accounted for as insurance liabilities or as embedded derivatives depending on how and when the benefit is paid. Specifically, a guarantee is accounted for as an embedded derivative if a guarantee is paid without requiring (i) the occurrence of a specific insurable event, or (ii) the policyholder to annuitize. Alternatively, a guarantee is accounted for as an insurance liability if the guarantee is paid only upon either (i) the occurrence of a specific insurable event, or (ii) annuitization. In certain cases, a guarantee may have elements of both an insurance liability and an embedded derivative and in such cases the guarantee is split and accounted for under both models. Guarantees accounted for as insurance liabilities in future policy benefits include guaranteed minimum death benefits (“GMDBs”), the portion of guaranteed minimum income benefits (“GMIBs”) that require annuitization, and the life-contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”). Guarantees accounted for as embedded derivatives in policyholder account balances include the non life-contingent portion of GMWBs, guaranteed minimum accumulation benefits (“GMABs”) and the portion of GMIBs that do not require annuitization. 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. Other Policy-Related Balances Other policy-related balances include policy and contract claims, premiums received in advance, unearned revenue liabilities, obligations assumed under structured settlements, policyholder dividends due and unpaid, and policyholder dividends left on deposit. The liability for policy and contract claims generally relates to incurred but not reported (“IBNR”) death, disability, long-term care and dental claims, as well as claims which have been reported but not yet settled. The liability for these claims is based on the Company’s estimated ultimate cost of settling all claims. The Company derives estimates for the development of IBNR claims principally from analyses of historical patterns of claims by business line. The methods used to determine these estimates are continually reviewed. Adjustments resulting from this continuous review process and differences between estimates and payments for claims are recognized in policyholder benefits and claims expense in the period in which the estimates are changed or payments are made. The Company accounts for the prepayment of premiums on its individual life, group life and health contracts as premiums received in advance and applies the cash received to premiums when due. The unearned revenue liability relates to universal life-type and investment-type products and represents policy charges for services to be provided in future periods. The charges are deferred as unearned revenue and amortized using the product’s estimated gross profits and margins, similar to DAC as discussed further herein. Such amortization is recorded in universal life and investment-type product policy fees. See Note 4 for additional information on obligations assumed under structured settlement assignments. Recognition of Insurance Revenues and Deposits Premiums related to traditional life and annuity contracts with life contingencies are recognized as revenues when due from policyholders. Policyholder benefits and expenses are provided to recognize profits over the estimated lives of the insurance policies. When premiums are due over a significantly shorter period than the period over which benefits are provided, any excess profit is deferred and recognized into earnings in a constant relationship to insurance in-force or, for annuities, the amount of expected future policy benefit payments. Premiums related to short-duration non-medical health, disability and accident & health contracts are recognized on a pro rata basis over the applicable contract term. Deposits related to universal life-type and investment-type products are credited to policyholder account balances. Revenues from such contracts consist of fees for mortality, policy administration and surrender charges and are recorded in universal life and investment-type product policy fees in the period in which services are provided. Amounts that are charged to earnings include interest credited and benefit claims incurred in excess of related policyholder account balances. All revenues and expenses are presented net of reinsurance, as applicable. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as DAC. Such costs include: • incremental direct costs of contract acquisition, such as commissions; • the portion of an employee’s total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed; and • other essential direct costs that would not have been incurred had a policy not been acquired or renewed. All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred. Value of business acquired (“VOBA”) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force at the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future policy and contract charges, premiums, mortality and morbidity, separate account performance, surrenders, operating expenses, investment returns, nonperformance risk adjustment and other factors. Actual experience on the purchased business may vary from these projections. DAC and VOBA are amortized as follows: Products: In proportion to the following over estimated lives of the contracts: • Nonparticipating and non-dividend-paying traditional contracts: Actual and expected future gross premiums. • Term insurance • Nonparticipating whole life insurance • Traditional group life insurance • Non-medical health insurance • Participating, dividend-paying traditional contracts Actual and expected future gross margins. • Fixed and variable universal life contracts Actual and expected future gross profits. • Fixed and variable deferred annuity contracts See Note 5 for additional information on DAC and VOBA amortization. Amortization of DAC and VOBA is included in other expenses. The recovery of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated on the financial statements for reporting purposes. The Company generally has two different types of sales inducements which are included in other assets: (i) the policyholder receives a bonus whereby the policyholder’s initial account balance is increased by an amount equal to a specified percentage of the customer’s deposit; and (ii) the policyholder receives a higher interest rate using a dollar cost averaging method than would have been received based on the normal general account interest rate credited. The Company defers sales inducements and amortizes them over the life of the policy using the same methodology and assumptions used to amortize DAC. The amortization of sales inducements is included in policyholder benefits and claims. Each year, or more frequently if circumstances indicate a potential recoverability issue exists, the Company reviews deferred sales inducements (“DSI”) to determine the recoverability of the asset. Value of distribution agreements acquired (“VODA”) is reported in other assets and represents the present value of expected future profits associated with the expected future business derived from the distribution agreements acquired as part of a business combination. Value of customer relationships acquired (“VOCRA”) is also reported in other assets and represents the present value of the expected future profits associated with the expected future business acquired through existing customers of the acquired company or business. The VODA and VOCRA associated with past business combinations are amortized over useful lives ranging from 10 to 30 years and such amortization is included in other expenses. Each year, or more frequently if circumstances indicate a possible impairment exists, the Company reviews VODA and VOCRA to determine whether the asset is impaired. Reinsurance For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid (received), and the liabilities ceded (assumed) related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. The net cost of reinsurance is recorded as an adjustment to DAC when there is a gain at inception on the ceding entity and to other liabilities when there is a loss at inception. The net cost of reinsurance is recognized as a component of other expenses when there is a gain at inception and as policyholder benefits and claims when there is a loss and is subsequently amortized on a basis consistent with the methodology used for amortizing DAC related to the underlying reinsured contracts. Subsequent amounts paid (received) on the reinsurance of in-force blocks, as well as amounts paid (received) related to new business, are recorded as ceded (assumed) premiums; and ceded (assumed) premiums, reinsurance and other receivables (future policy benefits) are established. For prospective reinsurance of short-duration contracts that meet the criteria for reinsurance accounting, amounts paid (received) are recorded as ceded (assumed) premiums and ceded (assumed) unearned premiums. Unearned premiums are reflected as a component of premiums, reinsurance and other receivables (future policy benefits). Such amounts are amortized through earned premiums over the remaining contract period in proportion to the amount of insurance protection provided. For retroactive reinsurance of short-duration contracts that meet the criteria of reinsurance accounting, amounts paid (received) in excess of the related insurance liabilities ceded (assumed) are recognized immediately as a loss and are reported in the appropriate line item within the statement of operations. Any gain on such retroactive agreement is deferred and is amortized as part of DAC, primarily using the recovery method. Amounts currently recoverable under reinsurance agreements are included in premiums, reinsurance and other receivables and amounts currently payable are included in other liabilities. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. The funds withheld liability represents amounts withheld by the Company in accordance with the terms of the reinsurance agreements. The Company withholds the funds rather than transferring the underlying investments and, as a result, records funds withheld liability within other liabilities. The Company recognizes interest on funds withheld, included in other expenses, at rates defined by the terms of the agreement which may be contractually specified or directly related to the investment portfolio. Premiums, fees and policyholder benefits and claims include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues. With respect to GMIBs, a portion of the directly written GMIBs are accounted for as insurance liabilities, but the associated reinsurance agreements contain embedded derivatives. These embedded derivatives are included in premiums, reinsurance and other receivables with changes in estimated fair value reported in net derivative gains (losses). Certain assumed GMWB, GMAB and GMIB are also accounted for as embedded derivatives with changes in estimated fair value reported in net derivative gains (losses). If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within premiums, reinsurance and other receivables. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other revenues or other expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate. Investments Net Investment Income and Net Investment Gains (Losses) Income from investments is reported within net investment income, unless otherwise stated herein. Gains and losses on sales of investments, impairment losses and changes in valuation allowances are reported within net investment gains (losses), unless otherwise stated herein. Fixed Maturity and Equity Securities The majority of the Company’s fixed maturity and equity securities are classified as available-for-sale (“AFS”) and are reported at their estimated fair value. Unrealized investment gains and losses on these securities are recorded as a separate component of other comprehensive income (loss) (“OCI”), net of policy-related amounts and deferred income taxes. All security transactions are recorded on a trade date basis. Investment gains and losses on sales are determined on a specific identification basis. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts, and is based on the estimated economic life of the securities, which for mortgage-backed and asset-backed securities considers the estimated timing and amount of prepayments of the underlying loans. See Note 8 “ Fixed Maturity and Equity Securities AFS — Methodology for Amortization of Premium and Accretion of Discount on Structured Securities.” The amortization of premium and accretion of discount of fixed maturity securities also takes into consideration call and maturity dates. Dividends on equity securities are recognized when declared. The Company periodically evaluates fixed maturity and equity securities for impairment. The assessment of whether impairments have occurred is based on management’s case-by-case evaluation of the underlying reasons for the decline in estimated fair value, as well as an analysis of the gross unrealized losses by severity and/or age as described in Note 8 “Fixed Maturity and Equity Securities AFS — Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities.” For fixed maturity securities in an unrealized loss position, an other-than-temporary impairment (“OTTI”) is recognized in earnings when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the OTTI recognized in earnings is the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as an OTTI in earnings (“credit loss”). If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of OTTI related to other-than-credit factors (“noncredit loss”) is recorded in OCI. With respect to equity securities, the Company considers in its OTTI analysis its intent and ability to hold a particular equity security for a period of time sufficient to allow for the recovery of its estimated fair value to an amount equal to or greater than cost. If a sale decision is made for an equity security and recovery to an amount at least equal to cost prior to the sale is not expected, the security will be deemed to be other-than-temporarily impaired in the period that the sale decision was made and an OTTI loss will be recorded in earnings. The OTTI loss recognized is the entire difference between the security’s cost and its estimated fair value. Mortgage Loans The Company disaggregates its mortgage loan investments into three portfolio segments: commercial, agricultural and residential. The accounting policies that are applicable to all portfolio segments are presented below and the accounting policies related to each of the portfolio segments are included in Note 8 . Mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and are net of valuation allowances. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts. Also included in mortgage loans are residential mortgage loans for which the fair value option (“FVO”) was elected and which are stated at estimated fair value. Changes in estimated fair value are recognized in net investment income. Policy Loans Policy loans are stated at unpaid principal balances. Interest income is recorded as earned using the contractual interest rate. Generally, accrued interest is capitalized on the policy’s anniversary date. Valuation allowances are not established for policy loans, as they are fully collateralized by the cash surrender value of the underlying insurance policies. Any unpaid principal and accrued interest is deducted from the cash surrender value or the death benefit prior to settlement of the insurance policy. Real Estate Real estate held-for-investment is stated at cost less accumulated depreciation. Depreciation is recorded on a straight-line basis over the estimated useful life of the asset (typically 20 to 55 years ). Rental income is recognized on a straight-line basis over the term of the respective leases. The Company periodically reviews its real estate held-for-investment for impairment and tests for recoverability whenever events or changes in circumstances indicate the carrying value may not be recoverable and exceeds its estimated fair value. Properties whose carrying values are greater than their undiscounted cash flows are written down to their estimated fair value, which is generally computed using the present val |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 2. Segment Information The Company is organized into two segments: U.S. and MetLife Holdings. In addition, the Company reports certain of its results of operations in Corporate & Other. 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 the 119,773,106 shares of Brighthouse Financial, Inc. common stock outstanding, representing 80.8% of those shares, to MetLife, Inc. common shareholders (the “Separation”). MetLife, Inc. retained the remaining ownership interest of 22,996,436 shares, or 19.2% , of Brighthouse Financial, Inc. common stock outstanding. 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 two businesses: Group Benefits and Retirement and Income Solutions. • 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 capital market investment products, institutional income annuities, stable value and pension risk transfer products. This business also includes products to fund tort settlements, as well as postretirement benefits and company-, bank- or trust-owned life insurance. MetLife Holdings The MetLife Holdings segment consists of operations relating to products and businesses no longer actively marketed by the Company, such as variable, universal, term and whole life insurance, variable, fixed and index-linked annuities and long-term care insurance. Corporate & Other Corporate & Other contains the excess capital, as well as certain charges and activities, not allocated to the segments, including enterprise-wide strategic initiative restructuring charges and various start-up businesses (including the direct to consumer portion of the U.S. Direct business). Corporate & Other also includes the Company’s ancillary international operations and 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. For the years ended December 31, 2016 and 2015, Corporate & Other includes business of the Company that was transferred to Brighthouse. In addition, Corporate & Other includes the elimination of intersegment amounts, which generally relate to intersegment loans, which bear interest rates commensurate with related borrowings. Financial Measures and Segment Accounting Policies 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 net income (loss). 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 allows analysis of the Company’s performance and facilitates comparisons to industry results. 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 MLIC 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 MLIC 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). 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 GMIB fees (“GMIB Fees”); and • 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 and (iii) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP. 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) amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets, (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; • Amortization of DAC and 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; • Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and • Other expenses excludes costs related to noncontrolling interests and goodwill impairments. 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. Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for the years ended December 31, 2017 , 2016 and 2015 and at December 31, 2017 and 2016 . 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 MetLife’s and the Company’s business. MetLife’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. MetLife’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, net income (loss) 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. Year Ended December 31, 2017 U.S. MetLife Holdings Corporate Total Adjustments Total (In millions) Revenues Premiums $ 19,496 $ 3,420 $ 9 $ 22,925 $ — $ 22,925 Universal life and investment-type product policy fees 1,004 1,126 — 2,130 97 2,227 Net investment income 6,206 4,920 (243 ) 10,883 (370 ) 10,513 Other revenues 781 200 589 1,570 — 1,570 Net investment gains (losses) — — — — 334 334 Net derivative gains (losses) — — — — (344 ) (344 ) Total revenues 27,487 9,666 355 37,508 (283 ) 37,225 Expenses Policyholder benefits and claims and policyholder dividends 20,558 6,006 4 26,568 321 26,889 Interest credited to policyholder account balances 1,459 779 — 2,238 (3 ) 2,235 Capitalization of DAC (48 ) (13 ) — (61 ) — (61 ) Amortization of DAC and VOBA 56 303 — 359 (118 ) 241 Interest expense on debt 11 8 87 106 — 106 Other expenses 2,717 1,201 930 4,848 1 4,849 Total expenses 24,753 8,284 1,021 34,058 201 34,259 Provision for income tax expense (benefit) 954 427 (368 ) 1,013 (1,574 ) (561 ) Adjusted earnings $ 1,780 $ 955 $ (298 ) 2,437 Adjustments to: Total revenues (283 ) Total expenses (201 ) Provision for income tax (expense) benefit 1,574 Net income (loss) $ 3,527 $ 3,527 At December 31, 2017 U.S. MetLife Holdings Corporate Total (In millions) Total assets $ 245,750 $ 163,397 $ 25,148 $ 434,295 Separate account assets $ 80,240 $ 50,585 $ — $ 130,825 Separate account liabilities $ 80,240 $ 50,585 $ — $ 130,825 Year Ended December 31, 2016 U.S. MetLife Holdings Corporate Total Adjustments Total (In millions) Revenues Premiums $ 17,921 $ 4,411 $ 61 $ 22,393 $ — $ 22,393 Universal life and investment-type product policy fees 988 1,236 216 2,440 102 2,542 Net investment income 6,075 5,606 (67 ) 11,614 (531 ) 11,083 Other revenues 750 110 618 1,478 — 1,478 Net investment gains (losses) — — — — 132 132 Net derivative gains (losses) — — — — (1,138 ) (1,138 ) Total revenues 25,734 11,363 828 37,925 (1,435 ) 36,490 Expenses Policyholder benefits and claims and policyholder dividends 18,968 7,244 130 26,342 171 26,513 Interest credited to policyholder account balances 1,297 907 32 2,236 (3 ) 2,233 Capitalization of DAC (60 ) (267 ) (5 ) (332 ) — (332 ) Amortization of DAC and VOBA 56 675 56 787 (346 ) 441 Interest expense on debt 10 7 95 112 — 112 Other expenses 2,770 1,850 825 5,445 137 5,582 Total expenses 23,041 10,416 1,133 34,590 (41 ) 34,549 Provision for income tax expense (benefit) 963 274 (551 ) 686 (487 ) 199 Adjusted earnings $ 1,730 $ 673 $ 246 2,649 Adjustments to: Total revenues (1,435 ) Total expenses 41 Provision for income tax (expense) benefit 487 Net income (loss) $ 1,742 $ 1,742 At December 31, 2016 U.S. MetLife Holdings Corporate Total (In millions) Total assets $ 247,555 $ 163,024 $ 21,982 $ 432,561 Separate account assets $ 85,854 $ 47,982 $ — $ 133,836 Separate account liabilities $ 85,854 $ 47,982 $ — $ 133,836 Year Ended December 31, 2015 U.S. MetLife Holdings Corporate Total Adjustments Total (In millions) Revenues Premiums $ 17,340 $ 4,527 $ 67 $ 21,934 $ — $ 21,934 Universal life and investment-type product policy fees 941 1,294 249 2,484 100 2,584 Net investment income 6,011 5,890 94 11,995 (456 ) 11,539 Other revenues 729 135 672 1,536 — 1,536 Net investment gains (losses) — — — — 259 259 Net derivative gains (losses) — — — — 881 881 Total revenues 25,021 11,846 1,082 37,949 784 38,733 Expenses Policyholder benefits and claims and policyholder dividends 18,415 7,207 125 25,747 64 25,811 Interest credited to policyholder account balances 1,212 933 34 2,179 4 2,183 Capitalization of DAC (71 ) (409 ) (2 ) (482 ) — (482 ) Amortization of DAC and VOBA 59 527 44 630 112 742 Interest expense on debt 5 4 113 122 — 122 Other expenses 2,724 1,825 1,324 5,873 3 5,876 Total expenses 22,344 10,087 1,638 34,069 183 34,252 Provision for income tax expense (benefit) 961 556 37 1,554 209 1,763 Adjusted earnings $ 1,716 $ 1,203 $ (593 ) 2,326 Adjustments to: Total revenues 784 Total expenses (183 ) Provision for income tax (expense) benefit (209 ) Net income (loss) $ 2,718 $ 2,718 The following table presents total premiums, universal life and investment-type product policy fees and other revenues by major product groups of the Company’s segments, as well as Corporate & Other: Years Ended December 31, 2017 2016 2015 (In millions) Life insurance $ 13,139 $ 13,907 $ 13,811 Accident & health insurance 7,933 7,889 7,475 Annuities 5,390 4,379 4,548 Non-insurance 260 238 220 Total $ 26,722 $ 26,413 $ 26,054 Substantially all of the Company’s consolidated premiums, universal life and investment-type product policy fees and other revenues originated in the U.S . Revenues derived from one U.S. customer were $2.8 billion , $2.8 billion and $2.7 billion for the years ended December 31, 2017, 2016 and 2015, respectively, which represented 11% , 10% and 10% , respectively, of consolidated premiums, universal life and investment-type product policy fees and other revenues. Revenues derived from any other customer did not exceed 10% of consolidated premiums, universal life and investment-type product policy fees and other revenues for the years ended December 31, 2017 , 2016 and 2015 . |
Dispositions
Dispositions | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Acquisitions and Dispositions | 3. Disposition In December 2016, the Company distributed to MetLife, Inc. as a non-cash extraordinary dividend all of the issued and outstanding shares of common stock of its wholly-owned subsidiaries, New England Life Insurance Company (“NELICO”) and General American Life Insurance Company (“GALIC”). The net book value of NELICO and GALIC at the time of the dividend was $2.9 billion , which was recorded as a dividend of retained earnings of $2.7 billion and a decrease to other comprehensive income of $254 million , net of income tax. As of the date of the dividend payment, the Company no longer consolidates the assets, liabilities and operations of NELICO and GALIC. |
Insurance
Insurance | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Insurance | 4. Insurance Insurance Liabilities Insurance liabilities, including affiliated insurance liabilities on reinsurance assumed and ceded, are comprised of future policy benefits, policyholder account balances and other policy-related balances. Information regarding insurance liabilities by segment, as well as Corporate & Other, was as follows at: December 31, 2017 2016 (In millions) U.S. $ 131,224 $ 124,877 MetLife Holdings 89,012 89,874 Corporate & Other 294 337 Total $ 220,530 $ 215,088 See Note 6 for discussion of affiliated reinsurance liabilities included in the table above. Future policy benefits are measured as follows: Product Type: Measurement Assumptions: Participating life Aggregate of (i) net level premium reserves for death and endowment policy benefits (calculated based upon the non-forfeiture interest rate, ranging from 3% to 7%, and mortality rates guaranteed in calculating the cash surrender values described in such contracts); and (ii) the liability for terminal dividends. Nonparticipating life Aggregate of the present value of future expected benefit payments and related expenses less the present value of future expected net premiums. Assumptions as to mortality and persistency are based upon the Company’s experience when the basis of the liability is established. Interest rate assumptions for the aggregate future policy benefit liabilities range from 2% to 11%. I ndividual and group traditional fixed annuities after annuitization Present value of future expected payments. Interest rate assumptions used in establishing such liabilities range from 1% to 11%. Non-medical health insurance The net level premium method and assumptions as to future morbidity, withdrawals and interest, which provide a margin for adverse deviation. Interest rate assumptions used in establishing such liabilities range from 4% to 7%. Disabled lives Present value of benefits method and experience assumptions as to claim terminations, expenses and interest. Interest rate assumptions used in establishing such liabilities range from 2% to 8%. Participating business represented 4% of the Company’s life insurance in-force at both December 31, 2017 and 2016 . Participating policies represented 21% , 26% and 27% of gross traditional life insurance premiums for the years ended December 31, 2017 , 2016 and 2015 , respectively. Policyholder account balances are equal to: (i) policy account values, which consist of an accumulation of gross premium payments; and (ii) credited interest, ranging from less than 1% to 13% , less expenses, mortality charges and withdrawals. Guarantees The Company issues variable annuity products with guaranteed minimum benefits. GMABs, the non-life-contingent portion of GMWBs and the portion of certain GMIBs that do not require annuitization are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 9 . Guarantees accounted for as insurance liabilities include: Guarantee: Measurement Assumptions: GMDBs • A return of purchase payment upon death even if the account value is reduced to zero. • Present value of expected death benefits in excess of the projected account balance recognizing the excess ratably over the accumulation period based on the present value of total expected assessments. • An enhanced death benefit may be available for an additional fee. • Assumptions are consistent with those used for amortizing DAC, and are thus subject to the same variability and risk. • Investment performance and volatility assumptions are consistent with the historical experience of the appropriate underlying equity index, such as the S&P 500 Index. • Benefit assumptions are based on the average benefits payable over a range of scenarios. GMIBs • After a specified period of time determined at the time of issuance of the variable annuity contract, a minimum accumulation of purchase payments, even if the account value is reduced to zero, that can be annuitized to receive a monthly income stream that is not less than a specified amount. • Present value of expected income benefits in excess of the projected account balance at any future date of annuitization and recognizing the excess ratably over the accumulation period based on present value of total expected assessments. • Certain contracts also provide for a guaranteed lump sum return of purchase premium in lieu of the annuitization benefit. • Assumptions are consistent with those used for estimating GMDB liabilities. • Calculation incorporates an assumption for the percentage of the potential annuitizations that may be elected by the contractholder. GMWBs • A return of purchase payment via partial withdrawals, even if the account value is reduced to zero, provided that cumulative withdrawals in a contract year do not exceed a certain limit. • Expected value of the life contingent payments and expected assessments using assumptions consistent with those used for estimating the GMDB liabilities. • Certain contracts include guaranteed withdrawals that are life contingent. 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 liabilities for guarantees (excluding base policy liabilities and embedded derivatives) relating to annuity and universal and variable life contracts was as follows: Annuity Contracts Universal and Variable GMDBs GMIBs Secondary Paid-Up Total (In millions) Direct: Balance at January 1, 2015 $ 196 $ 458 $ 541 $ 82 $ 1,277 Incurred guaranteed benefits 37 80 86 9 212 Paid guaranteed benefits (1 ) — — — (1 ) Balance at December 31, 2015 232 538 627 91 1,488 Incurred guaranteed benefits 55 63 92 11 221 Paid guaranteed benefits (1 ) — — — (1 ) Dispositions (1) (18 ) (134 ) (99 ) — (251 ) Balance at December 31, 2016 268 467 620 102 1,457 Incurred guaranteed benefits 58 112 105 7 282 Paid guaranteed benefits — — — — — Balance at December 31, 2017 $ 326 $ 579 $ 725 $ 109 $ 1,739 Ceded: Balance at January 1, 2015 $ 37 $ 24 $ 305 $ 57 $ 423 Incurred guaranteed benefits 14 2 49 6 71 Paid guaranteed benefits (1 ) — — — (1 ) Balance at December 31, 2015 50 26 354 63 493 Incurred guaranteed benefits 13 (8 ) (8 ) 8 5 Paid guaranteed benefits (1 ) — — — (1 ) Dispositions (1) (18 ) (39 ) (97 ) — (154 ) Balance at December 31, 2016 44 (21 ) 249 71 343 Incurred guaranteed benefits (44 ) 21 23 5 5 Paid guaranteed benefits — — — — — Balance at December 31, 2017 $ — $ — $ 272 $ 76 $ 348 Net: Balance at January 1, 2015 $ 159 $ 434 $ 236 $ 25 $ 854 Incurred guaranteed benefits 23 78 37 3 141 Paid guaranteed benefits — — — — — Balance at December 31, 2015 182 512 273 28 995 Incurred guaranteed benefits 42 71 100 3 216 Paid guaranteed benefits — — — — — Dispositions (1) — (95 ) (2 ) — (97 ) Balance at December 31, 2016 224 488 371 31 1,114 Incurred guaranteed benefits 102 91 82 2 277 Paid guaranteed benefits — — — — — Balance at December 31, 2017 $ 326 $ 579 $ 453 $ 33 $ 1,391 ______________ (1) See Note 3 . Information regarding the Company’s guarantee exposure, which includes direct business, but excludes offsets from hedging or reinsurance, if any, was as follows at: December 31, 2017 2016 In the Event of Death At Annuitization In the Event of Death At Annuitization (Dollars in millions) Annuity Contracts (1): Variable Annuity Guarantees: Total account value (2) $ 56,136 $ 25,257 $ 54,629 $ 24,310 Separate account value $ 45,431 $ 24,336 $ 43,359 $ 23,330 Net amount at risk $ 990 (3 ) $ 353 (4 ) $ 1,386 (3 ) $ 328 (4 ) Average attained age of contractholders 66 years 65 years 65 years 64 years Other Annuity Guarantees: Total account value (2) N/A $ 141 N/A $ 141 Net amount at risk N/A $ 92 (5 ) N/A $ 92 (5 ) Average attained age of contractholders N/A 52 years N/A 52 years December 31, 2017 2016 Secondary Guarantees Paid-Up Guarantees Secondary Guarantees Paid-Up Guarantees (Dollars in millions) Universal and Variable Life Contracts (1): Total account value (2) $ 4,679 $ 977 $ 4,306 $ 1,014 Net amount at risk (6) $ 46,704 $ 6,713 $ 49,161 $ 7,164 Average attained age of policyholders 54 years 62 years 53 years 62 years ______________ (1) The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. (2) Includes the contractholder’s investments in the general account and separate account, if applicable. (3) 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. (4) 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. (5) 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. (6) 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. Account balances of contracts with guarantees were invested in separate account asset classes as follows at: December 31, 2017 2016 (In millions) Fund Groupings: Equity $ 21,464 $ 19,929 Balanced 19,443 18,833 Bond 3,798 3,882 Money Market 57 64 Total $ 44,762 $ 42,708 Obligations Assumed Under Structured Settlement Assignments The Company assumes structured settlement claim obligations as an assignment company. 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 purchases annuities from Brighthouse to fund these periodic payment claim obligations and designates payments to be made directly to the claimant by the affiliated annuity writer. These annuities funding structured settlement claims are recorded as an investment. See Note 1 . See Note 8 for additional information on obligations assumed under structured settlement assignments. Obligations Under Funding Agreements The Company issues fixed and floating rate funding agreements, which are denominated in either U.S. dollars or foreign currencies, to certain unconsolidated special purpose entities (“SPEs”) that have issued either debt securities or commercial paper for which payment of interest and principal is secured by such funding agreements. During the years ended December 31, 2017 , 2016 and 2015 , the Company issued $42.7 billion , $39.7 billion and $35.1 billion , respectively, and repaid $41.4 billion , $38.5 billion and $35.5 billion , respectively, of such funding agreements. At December 31, 2017 and 2016 , liabilities for funding agreements outstanding, which are included in policyholder account balances, were $34.2 billion and $30.8 billion , respectively. Metropolitan Life Insurance Company is a member of the Federal Home Loan Bank (“FHLB”) of New York. Holdings of common stock of the FHLB of New York, included in equity securities, were $733 million and $748 million at December 31, 2017 and 2016 , respectively. The Company has also entered into funding agreements with the FHLB of New York and a subsidiary of the Federal Agricultural Mortgage Corporation, a federally chartered instrumentality of the U.S. (“Farmer Mac”). The liability for such funding agreements is included in policyholder account balances. Information related to such funding agreements was as follows at: Liability Collateral December 31, 2017 2016 2017 2016 (In millions) FHLB of New York (1) $ 14,445 $ 14,445 $ 16,605 (2) $ 16,828 (2) Farmer Mac (3) $ 2,550 $ 2,550 $ 2,644 $ 2,645 __________________ (1) Represents funding agreements issued to the FHLB of New York in exchange for cash and for which the FHLB of New York has been granted a lien on certain assets, some of which are in the custody of the FHLB of New York, including residential mortgage-backed securities (“RMBS”), to collateralize obligations under advances evidenced by funding agreements. The Company is permitted to withdraw any portion of the collateral in the custody of the FHLB of New York as long as there is no event of default and the remaining qualified collateral is sufficient to satisfy the collateral maintenance level. Upon any event of default by the Company, the FHLB of New York’s recovery on the collateral is limited to the amount of the Company’s liability to the FHLB of New York. (2) Advances are collateralized by mortgage-backed securities. The amount of collateral presented is at estimated fair value. (3) Represents funding agreements issued to a subsidiary of Farmer Mac, as well as certain SPEs that have issued debt securities for which payment of interest and principal is secured by such funding agreements, and such debt securities are also guaranteed as to payment of interest and principal by Farmer Mac. The obligations under these funding agreements are secured by a pledge of certain eligible agricultural mortgage loans and may, under certain circumstances, be secured by other qualified collateral. The amount of collateral presented is at carrying value. Liabilities for Unpaid Claims and Claim Expenses The following is information about incurred and paid claims development by segment as of December 31, 2017 . Such amounts are presented net of reinsurance, and are not discounted. The tables present claims development and cumulative claim payments by incurral year. The development tables are only presented for significant short-duration product liabilities within each segment. Where practical, up to 10 years of history has been provided. The information about incurred and paid claims development prior to 2016 is presented as supplementary information, as described in Note 1 . U.S. Group Life - Term Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance At December 31, 2017 For the Years Ended December 31, Total IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims (Unaudited) Incurral Year 2011 2012 2013 2014 2015 2016 2017 (Dollars in millions) 2011 $ 6,318 $ 6,290 $ 6,293 $ 6,269 $ 6,287 $ 6,295 $ 6,294 $ 1 207,301 2012 6,503 6,579 6,569 6,546 6,568 6,569 3 208,626 2013 6,637 6,713 6,719 6,720 6,730 15 210,643 2014 6,986 6,919 6,913 6,910 5 210,797 2015 7,040 7,015 7,014 12 211,597 2016 7,125 7,085 21 206,610 2017 7,432 898 186,954 Total 48,034 Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance (46,136 ) All outstanding liabilities for incurral years prior to 2011, net of reinsurance 5 Total unpaid claims and claim adjustment expenses, net of reinsurance $ 1,903 Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, (Unaudited) Incurral Year 2011 2012 2013 2014 2015 2016 2017 (In millions) 2011 $ 4,982 $ 6,194 $ 6,239 $ 6,256 $ 6,281 $ 6,290 $ 6,292 2012 5,132 6,472 6,518 6,532 6,558 6,565 2013 5,216 6,614 6,664 6,678 6,711 2014 5,428 6,809 6,858 6,869 2015 5,524 6,913 6,958 2016 5,582 6,980 2017 5,761 Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance $ 46,136 Average Annual Percentage Payout The following is supplementary information about average historical claims duration as of December 31, 2017 : Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 Group Life - Term 78.3 % 20.0 % 0.7 % 0.2 % 0.4 % 0.1 % — % Group Long-Term Disability Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance At December 31, 2017 For the Years Ended December 31, Total IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims (Unaudited) Incurral Year 2011 2012 2013 2014 2015 2016 2017 (Dollars in millions) 2011 $ 955 $ 916 $ 894 $ 914 $ 924 $ 923 $ 918 $ — 21,642 2012 966 979 980 1,014 1,034 1,037 — 20,085 2013 1,008 1,027 1,032 1,049 1,070 — 21,123 2014 1,076 1,077 1,079 1,101 — 22,838 2015 1,082 1,105 1,093 4 21,136 2016 1,131 1,139 26 17,585 2017 1,244 585 9,258 Total 7,602 Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance (3,006 ) All outstanding liabilities for incurral years prior to 2011, net of reinsurance 2,539 Total unpaid claims and claim adjustment expenses, net of reinsurance $ 7,135 Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, (Unaudited) Incurral Year 2011 2012 2013 2014 2015 2016 2017 (In millions) 2011 $ 44 $ 217 $ 337 $ 411 $ 478 $ 537 $ 588 2012 43 229 365 453 524 591 2013 43 234 382 475 551 2014 51 266 428 526 2015 50 264 427 2016 49 267 2017 56 Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance $ 3,006 Average Annual Percentage Payout The following is supplementary information about average historical claims duration as of December 31, 2017 : Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 Group Long-Term Disability 4.4 % 18.8 % 13.9 % 8.5 % 7.1 % 6.4 % 5.6 % Significant Methodologies and Assumptions Group Life - Term and Group Long-Term Disability incurred but not paid (“IBNP”) liabilities are developed using a combination of loss ratio and development methods. Claims in the course of settlement are then subtracted from the IBNP liabilities, resulting in the IBNR liabilities. The loss ratio method is used in the period in which the claims are neither sufficient nor credible. In developing the loss ratios, any material rate increases that could change the underlying premium without affecting the estimated incurred losses are taken into account. For periods where sufficient and credible claim data exists, the development method is used based on the claim triangles which categorize claims according to both the period in which they were incurred and the period in which they were paid, adjudicated or reported. The end result is a triangle of known data that is used to develop known completion ratios and factors. Claims paid are then subtracted from the estimated ultimate incurred claims to calculate the IBNP liability. An expense liability is held for the future expenses associated with the payment of incurred but not yet paid claims (IBNR and pending). This is expressed as a percentage of the underlying claims liability and is based on past experience and the anticipated future expense structure. For Group Life - Term and Group Long-Term Disability, first year incurred claims and allocated loss adjustment expenses increased in 2017 compared to the 2016 incurral year due to the growth in the size of the business. There were no significant changes in methodologies during 2017 . The assumptions used in calculating the unpaid claims and claim adjustment expenses for Group Life - Term and Group Long-Term Disability are updated annually to reflect emerging trends in claim experience. No additional premiums or return premiums have been accrued as a result of the prior year development. Liabilities for Group Life - Term unpaid claims and claim adjustment expenses are not discounted. The liabilities for Group Long-Term Disability unpaid claims and claim adjustment expenses were $6.0 billion and $5.8 billion at December 31, 2017 and 2016 , respectively. These amounts were discounted using interest rates ranging from 3% to 8% , based on the incurral year. The total discount applied to these liabilities was $1.3 billion at both December 31, 2017 and 2016 . The amount of interest accretion recognized was $510 million , $565 million and $517 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. These amounts were reflected in policyholder benefits and claims. For Group Life - Term, claims were based upon individual death claims. For Group Long-Term Disability, claim frequency was determined by the number of reported claims as identified by a unique claim number assigned to individual claimants. Claim counts initially include claims that do not ultimately result in a liability. These claims are omitted from the claim counts once it is determined that there is no liability. The Group Long-Term Disability IBNR, included in the development tables above, was developed using discounted cash flows, and is presented on a discounted basis. Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid Claims and Claim Adjustment Expenses The reconciliation of the net incurred and paid claims development tables to the liability for unpaid claims and claims adjustment expenses on the consolidated balance sheet was as follows at: December 31, 2017 (In millions) Short-Duration: Unpaid claims and allocated claims adjustment expenses, net of reinsurance: U.S.: Group Life - Term $ 1,903 Group Long-Term Disability 7,135 Total $ 9,038 Other insurance lines - all segments combined 504 Total unpaid claims and allocated claims adjustment expenses, net of reinsurance 9,542 Reinsurance recoverables on unpaid claims: U.S.: Group Life - Term 16 Group Long-Term Disability 95 Total 111 Other insurance lines - all segments combined 29 Total reinsurance recoverable on unpaid claims 140 Total unpaid claims and allocated claims adjustment expense 9,682 Discounting (1,272 ) Liability for unpaid claims and claim adjustment liabilities - short-duration 8,410 Liability for unpaid claims and claim adjustment liabilities - all long-duration lines 3,680 Total liability for unpaid claims and claim adjustment expense (included in future policy benefits and other policy-related balances) $ 12,090 Rollforward of Claims and Claim Adjustment Expenses Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows: Years Ended December 31, 2017 2016 (1) 2015 (2) (In millions) Balance at December 31 of prior period $ 11,621 $ 7,527 $ 7,310 Less: Reinsurance recoverables 1,251 273 286 Net balance at December 31 of prior period 10,370 7,254 7,024 Cumulative adjustment (3) — 3,277 — Net balance at January 1, 10,370 10,531 7,024 Incurred related to: Current year 16,264 15,978 5,316 Prior years (4) 175 322 13 Total incurred 16,439 16,300 5,329 Paid related to: Current year (12,212 ) (12,454 ) (3,415 ) Prior years (3,908 ) (3,905 ) (1,684 ) Total paid (16,120 ) (16,359 ) (5,099 ) Dispositions (5) — (102 ) — Net balance at December 31, 10,689 10,370 7,254 Add: Reinsurance recoverables 1,401 1,251 273 Balance at December 31, $ 12,090 $ 11,621 $ 7,527 ______________ (1) In addition to the revisions discussed in Note 1 , at December 31, 2016, the Net balance decreased by $712 million and the Reinsurance recoverables increased by $712 million from those amounts previously reported primarily to correct for the improper classification of reinsurance recoverables. (2) Limited to group accident and non-medical health policies and contracts. (3) Reflects the accumulated adjustment, net of reinsurance, upon implementation of the new short-duration contracts guidance which clarified the requirement to include claim information for long-duration contracts. The accumulated adjustment primarily reflects unpaid claim liabilities, net of reinsurance, for long-duration contracts as of the beginning of the period presented. Prior periods have not been restated. See Note 1 . (4) During 2017 , as a result of changes in estimates of insured events in the respective prior year, claims and claim adjustment expenses associated with prior years increased due to events incurred in prior years but reported during current year . During 2016 , as a result of changes in estimates of insured events in the respective prior year, claims and claim adjustment expenses associated with prior years increased due to the implementation of new guidance related to short- duration contracts. (5) See Note 3 . Separate Accounts Separate account assets and liabilities include two categories of account types: pass-through separate accounts totaling $75.2 billion and $73.6 billion at December 31, 2017 and 2016 , respectively, for which the policyholder assumes all investment risk, and separate accounts for which the Company contractually guarantees either a minimum return or account value to the policyholder which totaled $55.6 billion and $60.2 billion at December 31, 2017 and 2016 , respectively. The latter category consisted primarily of guaranteed interest contracts. The average interest rate credited on these contracts was 2.40% and 2.39% at December 31, 2017 and 2016 , respectively. For the years ended December 31, 2017 , 2016 and 2015 , there were no investment gains (losses) on transfers of assets from the general account to the separate accounts. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | |
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles | 5. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles See Note 1 for a description of capitalized acquisition costs. Nonparticipating and Non-Dividend-Paying Traditional Contracts The Company amortizes DAC and VOBA related to these contracts (term insurance, nonparticipating whole life insurance, traditional group life insurance, and non-medical health insurance) over the appropriate premium paying period in proportion to the actual and expected future gross premiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, morbidity, persistency and investment returns at policy issuance, or policy acquisition (as it relates to VOBA), include provisions for adverse deviation, and are consistent with the assumptions used to calculate future policyholder benefit liabilities. These assumptions are not revised after policy issuance or acquisition unless the DAC or VOBA balance is deemed to be unrecoverable from future expected profits. Absent a premium deficiency, variability in amortization after policy issuance or acquisition is caused only by variability in premium volumes. Participating, Dividend-Paying Traditional Contracts The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross margins. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The future gross margins are dependent principally on investment returns, policyholder dividend scales, mortality, persistency, expenses to administer the business, creditworthiness of reinsurance counterparties and certain economic variables, such as inflation. For participating contracts within the closed block (dividend-paying traditional contracts) future gross margins are also dependent upon changes in the policyholder dividend obligation. See Note 7 . Of these factors, the Company anticipates that investment returns, expenses, persistency and other factor changes, as well as policyholder dividend scales, are reasonably likely to impact significantly the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross margins with the actual gross margins for that period. When the actual gross margins change from previously estimated gross margins, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross margins exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross margins are below the previously estimated gross margins. Each reporting period, the Company also updates the actual amount of business in-force, which impacts expected future gross margins. When expected future gross margins are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross margins are above the previously estimated expected future gross margins. Each period, the Company also reviews the estimated gross margins for each block of business to determine the recoverability of DAC and VOBA balances. Fixed and Variable Universal Life Contracts and Fixed and Variable Deferred Annuity Contracts The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependent principally upon returns in excess of the amounts credited to policyholders, mortality, persistency, interest crediting rates, expenses to administer the business, creditworthiness of reinsurance counterparties, the effect of any hedges used and certain economic variables, such as inflation. Of these factors, the Company anticipates that investment returns, expenses and persistency are reasonably likely to significantly impact the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross profits with the actual gross profits for that period. When the actual gross profits change from previously estimated gross profits, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross profits exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross profits are below the previously estimated gross profits. Each reporting period, the Company also updates the actual amount of business remaining in-force, which impacts expected future gross profits. When expected future gross profits are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross profits are above the previously estimated expected future gross profits. Each period, the Company also reviews the estimated gross profits for each block of business to determine the recoverability of DAC and VOBA balances. Factors Impacting Amortization Separate account rates of return on variable universal life contracts and variable deferred annuity contracts affect in-force account balances on such contracts each reporting period, which can result in significant fluctuations in amortization of DAC and VOBA. Returns that are higher than the Company’s long-term expectation produce higher account balances, which increases the Company’s future fee expectations and decreases future benefit payment expectations on minimum death and living benefit guarantees, resulting in higher expected future gross profits. The opposite result occurs when returns are lower than the Company’s long-term expectation. The Company’s practice to determine the impact of gross profits resulting from returns on separate accounts assumes that long-term appreciation in equity markets is not changed by short-term market fluctuations, but is only changed when sustained interim deviations are expected. The Company monitors these events and only changes the assumption when its long-term expectation changes. The Company also periodically reviews other long-term assumptions underlying the projections of estimated gross margins and profits. These assumptions primarily relate to investment returns, policyholder dividend scales, interest crediting rates, mortality, persistency, policyholder behavior and expenses to administer business. Management annually updates assumptions used in the calculation of estimated gross margins and profits which may have significantly changed. If the update of assumptions causes expected future gross margins and profits to increase, DAC and VOBA amortization will decrease, resulting in a current period increase to earnings. The opposite result occurs when the assumption update causes expected future gross margins and profits to decrease. Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If such modification, referred to as an internal replacement, substantially changes the contract, the associated DAC or VOBA is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. Amortization of DAC and VOBA is attributed to net investment gains (losses) and net derivative gains (losses), and to other expenses for the amount of gross margins or profits originating from transactions other than investment gains and losses. Unrealized investment gains and losses represent the amount of DAC and VOBA that would have been amortized if such gains and losses had been recognized. Information regarding DAC and VOBA was as follows: Years Ended December 31, 2017 2016 2015 (In millions) DAC: Balance at January 1, $ 4,714 $ 5,977 $ 5,905 Capitalizations 61 332 482 Amortization related to: Net investment gains (losses) and net derivative gains (losses) 91 353 (111 ) Other expenses (331 ) (791 ) (624 ) Total amortization (240 ) (438 ) (735 ) Unrealized investment gains (losses) (215 ) (12 ) 325 Dispositions (1) — (1,145 ) — Balance at December 31, 4,320 4,714 5,977 VOBA: Balance at January 1, 29 66 70 Amortization related to: Other expenses (1 ) (3 ) (7 ) Total amortization (1 ) (3 ) (7 ) Unrealized investment gains (losses) — 13 3 Dispositions (1) — (47 ) — Balance at December 31, 28 29 66 Total DAC and VOBA: Balance at December 31, $ 4,348 $ 4,743 $ 6,043 _________________ (1) See Note 3. Information regarding total DAC and VOBA by segment, as well as Corporate & Other, was as follows at: December 31, 2017 2016 (In millions) U.S. $ 413 $ 421 MetLife Holdings 3,930 4,317 Corporate & Other 5 5 Total $ 4,348 $ 4,743 Information regarding other intangibles was as follows: Years Ended December 31, 2017 2016 2015 (In millions) DSI: Balance at January 1, $ 105 $ 130 $ 122 Capitalization 1 4 8 Amortization (8 ) (16 ) (21 ) Unrealized investment gains (losses) (5 ) 1 21 Dispositions (1) $ — $ (14 ) $ — Balance at December 31, $ 93 $ 105 $ 130 VODA and VOCRA: Balance at January 1, $ 235 $ 265 $ 295 Amortization (28 ) (30 ) (30 ) Balance at December 31, $ 207 $ 235 $ 265 Accumulated amortization $ 250 $ 222 $ 192 ______________ (1) See Note 3. The estimated future amortization expense to be reported in other expenses for the next five years was as follows: VOBA VODA and VOCRA (In millions) 2018 $ 2 $ 26 2019 $ 2 $ 24 2020 $ 2 $ 22 2021 $ 2 $ 19 2022 $ 2 $ 17 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | 6. Reinsurance The Company enters into reinsurance agreements primarily as a purchaser of reinsurance for its various insurance products and also as a provider of reinsurance for some insurance products issued by affiliated and unaffiliated companies. The Company participates in reinsurance activities in order to limit losses, minimize exposure to significant risks and provide additional capacity for future growth. Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. The Company periodically reviews actual and anticipated experience compared to the aforementioned assumptions used to establish assets and liabilities relating to ceded and assumed reinsurance and evaluates the financial strength of counterparties to its reinsurance agreements using criteria similar to that evaluated in the security impairment process discussed in Note 8 . U.S. For certain policies within its Group Benefits business, the Company generally retains most of the risk and only cedes particular risks on certain client arrangements. The majority of the Company’s reinsurance activity within this business relates to client agreements for employer sponsored captive programs, risk-sharing agreements and multinational pooling. The Company’s Retirement and Income Solutions business has periodically engaged in reinsurance activities, on an opportunistic basis. There were no such transactions during the periods presented. MetLife Holdings For its life products, the Company has historically reinsured the mortality risk primarily on an excess of retention basis or on a quota share basis. For the periods presented, the Company reinsured 90% of the mortality risk in excess of $2 million for most products. In addition to reinsuring mortality risk as described above, the Company reinsures other risks, as well as specific coverages. Placement of reinsurance is done primarily on an automatic basis and also on a facultative basis for risks with specified characteristics. On a case by case basis, the Company may retain up to $20 million per life and reinsure 100% of amounts in excess of the amount it retains. The Company evaluates its reinsurance programs routinely and may increase or decrease its retention at any time. Catastrophe Coverage The Company has exposure to catastrophes which could contribute to significant fluctuations in its results of operations. The Company purchases catastrophe coverage to insure risks issued within territories that it believes are subject to the greatest catastrophic risks. Reinsurance Recoverables The Company reinsures its business through a diversified group of well-capitalized reinsurers. The Company analyzes recent trends in arbitration and litigation outcomes in disputes, if any, with its reinsurers. The Company monitors ratings and evaluates the financial strength of its reinsurers by analyzing their financial statements. In addition, the reinsurance recoverable balance due from each reinsurer is evaluated as part of the overall monitoring process. Recoverability of reinsurance recoverable balances is evaluated based on these analyses. The Company generally secures large reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts, and irrevocable letters of credit. These reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance, which at December 31, 2017 and 2016 were not significant. The Company has secured certain reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. The Company had $1.9 billion of unsecured unaffiliated reinsurance recoverable balances at both December 31, 2017 and 2016 . At December 31, 2017 , the Company had $2.9 billion of net unaffiliated ceded reinsurance recoverables. Of this total, $2.1 billion , or 72% , were with the Company’s five largest unaffiliated ceded reinsurers, including $1.3 billion of net unaffiliated ceded reinsurance recoverables which were unsecured. At December 31, 2016 , the Company had $3.0 billion of net unaffiliated ceded reinsurance recoverables. Of this total, $2.1 billion , or 70% , were with the Company’s five largest unaffiliated ceded reinsurers, including $1.4 billion of net unaffiliated ceded reinsurance recoverables which were unsecured. The Company has reinsured with an unaffiliated third-party reinsurer 59% of the closed block through a modified coinsurance agreement. The Company accounts for this agreement under the deposit method of accounting. The Company, having the right of offset, has offset the modified coinsurance deposit with the deposit recoverable. The amounts on the consolidated statements of operations include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Premiums Direct premiums $ 23,062 $ 21,931 $ 21,497 Reinsurance assumed 1,116 1,687 1,679 Reinsurance ceded (1,253 ) (1,225 ) (1,242 ) Net premiums $ 22,925 $ 22,393 $ 21,934 Universal life and investment-type product policy fees Direct universal life and investment-type product policy fees $ 2,492 $ 3,006 $ 3,050 Reinsurance assumed 12 60 58 Reinsurance ceded (277 ) (524 ) (524 ) Net universal life and investment-type product policy fees $ 2,227 $ 2,542 $ 2,584 Other revenues Direct other revenues $ 930 $ 851 $ 875 Reinsurance assumed 35 (2 ) 5 Reinsurance ceded 605 629 656 Net other revenues $ 1,570 $ 1,478 $ 1,536 Policyholder benefits and claims Direct policyholder benefits and claims $ 26,199 $ 25,248 $ 24,561 Reinsurance assumed 875 1,496 1,454 Reinsurance ceded (1,282 ) (1,431 ) (1,468 ) Net policyholder benefits and claims $ 25,792 $ 25,313 $ 24,547 Interest credited to policyholder account balances Direct interest credited to policyholder account balances $ 2,199 $ 2,279 $ 2,240 Reinsurance assumed 49 35 33 Reinsurance ceded (13 ) (81 ) (90 ) Net interest credited to policyholder account balances $ 2,235 $ 2,233 $ 2,183 Other expenses Direct other expenses $ 4,489 $ 4,830 $ 5,448 Reinsurance assumed 138 583 340 Reinsurance ceded 508 390 470 Net other expenses $ 5,135 $ 5,803 $ 6,258 The amounts on the consolidated balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows at: December 31, 2017 2016 Direct Assumed Ceded Total Direct Assumed Ceded Total Balance Sheet (In millions) Assets Premiums, reinsurance and other receivables $ 2,491 $ 448 $ 19,159 $ 22,098 $ 2,212 $ 620 $ 19,551 $ 22,383 Deferred policy acquisition costs and value of business acquired 4,581 17 (250 ) 4,348 4,977 55 (289 ) 4,743 Total assets $ 7,072 $ 465 $ 18,909 $ 26,446 $ 7,189 $ 675 $ 19,262 $ 27,126 Liabilities Future policy benefits $ 118,077 $ 1,342 $ (4 ) $ 119,415 $ 113,883 $ 1,640 $ (4 ) $ 115,519 Policyholder account balances 93,758 181 — 93,939 91,889 577 — 92,466 Other policy-related balances 6,914 247 15 7,176 6,727 358 18 7,103 Other liabilities 8,498 2,242 16,669 27,409 10,735 2,229 16,533 29,497 Total liabilities $ 227,247 $ 4,012 $ 16,680 $ 247,939 $ 223,234 $ 4,804 $ 16,547 $ 244,585 In December 2016, the Company recaptured two reinsurance agreements which covered 90% of the liabilities on certain participating whole life insurance policies issued between April 1, 2000 and December 31, 2001 which were reinsured by an unaffiliated company. This recapture resulted in an increase in DAC and VOBA of $95 million , a decrease in premiums, reinsurance and other receivables of $697 million , and a decrease in other liabilities of $713 million . The Company recognized a gain of $72 million , net of income tax, for the year ended December 31, 2016 , as a result of this transaction. Reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. The deposit assets on reinsurance were $14.3 billion and $14.5 billion at December 31, 2017 and 2016 , respectively. The deposit liabilities on reinsurance were $1.9 billion and $2.2 billion at December 31, 2017 and 2016 , respectively. Related Party Reinsurance Transactions The Company has reinsurance agreements with certain of MetLife, Inc.’s subsidiaries, including MetLife Reinsurance Company of Charleston (“MRC”), MetLife Reinsurance Company of Vermont, Metropolitan Tower Life Insurance Company and GALIC, all of which are related parties. Additionally, the Company has reinsurance agreements with Brighthouse Life Insurance Company (“Brighthouse Insurance”), Brighthouse Life Insurance Company of NY (“Brighthouse NY”) and NELICO, former subsidiaries of MetLife, Inc. that were part of the Separation. See Note 2. Information regarding the significant effects of affiliated reinsurance included on the consolidated statements of operations was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Premiums Reinsurance assumed $ 122 $ 727 $ 701 Reinsurance ceded (132 ) (45 ) (40 ) Net premiums $ (10 ) $ 682 $ 661 Universal life and investment-type product policy fees Reinsurance assumed $ 12 $ 60 $ 58 Reinsurance ceded (19 ) (138 ) (141 ) Net universal life and investment-type product policy fees $ (7 ) $ (78 ) $ (83 ) Other revenues Reinsurance assumed $ 37 $ (1 ) $ 5 Reinsurance ceded 563 575 607 Net other revenues $ 600 $ 574 $ 612 Policyholder benefits and claims Reinsurance assumed $ 69 $ 697 $ 652 Reinsurance ceded (122 ) (110 ) (106 ) Net policyholder benefits and claims $ (53 ) $ 587 $ 546 Interest credited to policyholder account balances Reinsurance assumed $ 47 $ 34 $ 32 Reinsurance ceded (13 ) (81 ) (90 ) Net interest credited to policyholder account balances $ 34 $ (47 ) $ (58 ) Other expenses Reinsurance assumed $ 40 $ 490 $ 245 Reinsurance ceded 600 570 578 Net other expenses $ 640 $ 1,060 $ 823 Information regarding the significant effects of affiliated reinsurance included on the consolidated balance sheets was as follows at: December 31, 2017 2016 Assumed Ceded Assumed Ceded (In millions) Assets Premiums, reinsurance and other receivables $ 47 $ 12,762 $ 229 $ 13,334 Deferred policy acquisition costs and value of business acquired — (180 ) 38 (198 ) Total assets $ 47 $ 12,582 $ 267 $ 13,136 Liabilities Future policy benefits $ 380 $ (4 ) $ 663 $ (4 ) Policyholder account balances 166 — 563 — Other policy-related balances 104 15 212 18 Other liabilities 1,858 12,970 1,853 13,065 Total liabilities $ 2,508 $ 12,981 $ 3,291 $ 13,079 The Company ceded two blocks of business to an affiliate on a 75% coinsurance with funds withheld basis. Certain contractual features of these agreements qualify as embedded derivatives, which are separately accounted for at estimated fair value on the Company’s consolidated balance sheets. The embedded derivatives related to the funds withheld associated with these reinsurance agreements are included within other liabilities and were $16 million and $10 million at December 31, 2017 and 2016 , respectively. Net derivative gains (losses) associated with these embedded derivatives were ($6) million , ($2) million and $12 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company ceded risks to an affiliate related to guaranteed minimum benefit guarantees written directly by the Company. These ceded reinsurance agreements contain embedded derivatives and changes in their estimated fair value are also included within net derivative gains (losses). The embedded derivatives associated with the cessions are included within premiums, reinsurance and other receivables and were $0 and $460 million at December 31, 2017 and 2016 , respectively. Net derivative gains (losses) associated with the embedded derivatives were ($110) million , $33 million and $47 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Certain contractual features of the closed block agreement with MRC create an embedded derivative, which is separately accounted for at estimated fair value on the Company’s consolidated balance sheets. The embedded derivative related to the funds withheld associated with this reinsurance agreement is included within other liabilities and was $882 million and $767 million at December 31, 2017 and 2016 , respectively. Net derivative gains (losses) associated with the embedded derivative were ($115) million , ($73) million and $404 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Th e Company assumes risks from affiliates related to guaranteed minimum benefit guarantees written directly by the affiliates. These assumed reinsurance agreements contain embedded derivatives and changes in their estimated fair value are also included within net derivative gains (losses). The embedded derivatives associated with these agreements are included within policyholder account balances and were $3 million and $390 million at December 31, 2017 and 2016 , respectively. Net derivative gains (losses) associated with the embedded derivatives were $263 million , ($32) million and ($55) million for the years ended December 31, 2017 , 2016 and 2015 , respectively. In January 2017, Brighthouse NY and NELICO recaptured risks related to certain variable annuities, including guaranteed minimum benefits, reinsured by the Company. This recapture resulted in a decrease in cash and cash equivalents of $34 million , a decrease in premiums, reinsurance and other receivables of $77 million , a decrease in future policy benefits of $79 million , a decrease in policyholder account balances of $387 million and an increase in other liabilities of $76 million . The Company recognized a gain of $178 million , net of income tax, for the year ended December 31, 2017 , as a result of these transactions. In January 2017, the Company recaptured risks related to guaranteed minimum benefit guarantees on certain variable annuities reinsured by Brighthouse Insurance. This recapture resulted in an increase in investments and cash and cash equivalents of $428 million and a decrease in premiums, reinsurance and other receivables of $565 million . The Company recognized a loss of $89 million , net of income tax, for the year ended December 31, 2017 , as a result of this transaction. In April 2016, Brighthouse Insurance recaptured risks related to certain single premium deferred annuity contracts from the Company. As a result of this recapture, the significant effects to the Company were a decrease in investments and cash and cash equivalents of $4.3 billion and a decrease in DAC of $87 million , offset by a decrease in other liabilities of $4.0 billion . The Company recognized a loss of $95 million , net of income tax, for the year ended December 31, 2016 , as a result of this recapture. The Company has secured certain reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. The Company had $13 million and $293 million of unsecured affiliated reinsurance recoverable balances at December 31, 2017 and 2016 , respectively. Affiliated reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. The deposit assets on affiliated reinsurance were $11.5 billion and $11.7 billion at December 31, 2017 and 2016 , respectively. The deposit liabilities on affiliated reinsurance were $1.8 billion and $2.2 billion at December 31, 2017 and 2016 , respectively. |
Closed Block
Closed Block | 12 Months Ended |
Dec. 31, 2017 | |
Closed Block Disclosure [Abstract] | |
Closed Block | 7. Closed Block On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company 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 Metropolitan Life Insurance Company’s plan of reorganization, as amended (the “Plan of Reorganization”). On the Demutualization Date, Metropolitan Life Insurance Company established a closed block for the benefit of holders of certain individual life insurance policies of Metropolitan Life Insurance Company. Assets have been allocated to the closed block in an amount that has been determined to produce cash flows which, together with anticipated revenues from the policies included in the closed block, are reasonably expected to be sufficient to support obligations and liabilities relating to these policies, including, but not limited to, provisions for the payment of claims and certain expenses and taxes, and to provide for the continuation of policyholder dividend scales in effect for 1999, if the experience underlying such dividend scales continues, and for appropriate adjustments in such scales if the experience changes. At least annually, the Company compares actual and projected experience against the experience assumed in the then-current dividend scales. Dividend scales are adjusted periodically to give effect to changes in experience. The closed block assets, the cash flows generated by the closed block assets and the anticipated revenues from the policies in the closed block will benefit only the holders of the policies in the closed block. To the extent that, over time, cash flows from the assets allocated to the closed block and claims and other experience related to the closed block are, in the aggregate, more or less favorable than what was assumed when the closed block was established, total dividends paid to closed block policyholders in the future may be greater than or less than the total dividends that would have been paid to these policyholders if the policyholder dividend scales in effect for 1999 had been continued. Any cash flows in excess of amounts assumed will be available for distribution over time to closed block policyholders and will not be available to stockholders. If the closed block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside of the closed block. The closed block will continue in effect as long as any policy in the closed block remains in-force. The expected life of the closed block is over 100 years from the Demutualization Date. The Company uses the same accounting principles to account for the participating policies included in the closed block as it used prior to the Demutualization Date. However, the Company establishes a policyholder dividend obligation for earnings that will be paid to policyholders as additional dividends as described below. The excess of closed block liabilities over closed block assets at the Demutualization Date (adjusted to eliminate the impact of related amounts in AOCI) represents the estimated maximum future earnings from the closed block expected to result from operations attributed to the closed block after income taxes. Earnings of the closed block are recognized in income over the period the policies and contracts in the closed block remain in-force. Management believes that over time the actual cumulative earnings of the closed block will approximately equal the expected cumulative earnings due to the effect of dividend changes. If, over the period the closed block remains in existence, the actual cumulative earnings of the closed block are greater than the expected cumulative earnings of the closed block, the Company will pay the excess to closed block policyholders as additional policyholder dividends unless offset by future unfavorable experience of the closed block and, accordingly, will recognize only the expected cumulative earnings in income with the excess recorded as a policyholder dividend obligation. If over such period, the actual cumulative earnings of the closed block are less than the expected cumulative earnings of the closed block, the Company will recognize only the actual earnings in income. However, the Company may change policyholder dividend scales in the future, which would be intended to increase future actual earnings until the actual cumulative earnings equal the expected cumulative earnings. 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: December 31, 2017 2016 (In millions) Closed Block Liabilities Future policy benefits $ 40,463 $ 40,834 Other policy-related balances 222 257 Policyholder dividends payable 437 443 Policyholder dividend obligation 2,121 1,931 Current income tax payable — 4 Other liabilities 212 196 Total closed block liabilities 43,455 43,665 Assets Designated to the Closed Block Investments: Fixed maturity securities available-for-sale, at estimated fair value 27,904 27,220 Equity securities available-for-sale, at estimated fair value 70 100 Mortgage loans 5,878 5,935 Policy loans 4,548 4,553 Real estate and real estate joint ventures 613 655 Other invested assets 731 1,246 Total investments 39,744 39,709 Accrued investment income 477 467 Premiums, reinsurance and other receivables; cash and cash equivalents 14 86 Current income tax recoverable 35 — Deferred income tax assets 36 177 Total assets designated to the closed block 40,306 40,439 Excess of closed block liabilities over assets designated to the closed block 3,149 3,226 Amounts included in AOCI: Unrealized investment gains (losses), net of income tax 1,863 1,517 Unrealized gains (losses) on derivatives, net of income tax (7 ) 95 Allocated to policyholder dividend obligation, net of income tax (1,379 ) (1,255 ) Total amounts included in AOCI 477 357 Maximum future earnings to be recognized from closed block assets and liabilities $ 3,626 $ 3,583 Information regarding the closed block policyholder dividend obligation was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Balance at January 1, $ 1,931 $ 1,783 $ 3,155 Change in unrealized investment and derivative gains (losses) 190 148 (1,372 ) Balance at December 31, $ 2,121 $ 1,931 $ 1,783 Information regarding the closed block revenues and expenses was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Revenues Premiums $ 1,736 $ 1,804 $ 1,850 Net investment income 1,818 1,902 1,982 Net investment gains (losses) 1 (10 ) (23 ) Net derivative gains (losses) (32 ) 25 27 Total revenues 3,523 3,721 3,836 Expenses Policyholder benefits and claims 2,453 2,563 2,564 Policyholder dividends 976 953 1,015 Other expenses 125 133 143 Total expenses 3,554 3,649 3,722 Revenues, net of expenses before provision for income tax expense (benefit) (31 ) 72 114 Provision for income tax expense (benefit) 12 24 41 Revenues, net of expenses and provision for income tax expense (benefit) $ (43 ) $ 48 $ 73 Metropolitan Life Insurance Company 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. Metropolitan Life Insurance Company also charges the closed block for expenses of maintaining the policies included in the closed block. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 8. Investments See Note 10 for information about the fair value hierarchy for investments and the related valuation methodologies. Investment Risks and Uncertainties Investments are exposed to the following primary sources of risk: credit, interest rate, liquidity, market valuation, currency and real estate risk. The financial statement risks, stemming from such investment risks, are those associated with the determination of estimated fair values, the diminished ability to sell certain investments in times of strained market conditions, the recognition of impairments, the recognition of income on certain investments and the potential consolidation of VIEs. The use of different methodologies, assumptions and inputs relating to these financial statement risks may have a material effect on the amounts presented within the consolidated financial statements. The determination of valuation allowances and impairments is highly subjective and is based upon periodic evaluations and assessments of known and inherent risks associated with the respective asset class. Such evaluations and assessments are revised as conditions change and new information becomes available. The recognition of income on certain investments (e.g. structured securities, including mortgage-backed securities, asset-backed securities (“ABS”) and certain structured investment transactions) is dependent upon certain factors such as prepayments and defaults, and changes in such factors could result in changes in amounts to be earned. Fixed Maturity and Equity Securities AFS Fixed Maturity and Equity Securities AFS by Sector The following table presents the fixed maturity and equity securities AFS by sector. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities and non-redeemable preferred stock is reported within equity securities. Included within fixed maturity securities are structured securities including RMBS, ABS and commercial mortgage-backed securities (“CMBS”) (collectively, “Structured Securities”). December 31, 2017 December 31, 2016 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Temporary Losses OTTI Losses (1) Gains Temporary Losses OTTI Losses (1) (In millions) Fixed maturity securities: U.S. corporate $ 53,291 $ 5,037 $ 238 $ — $ 58,090 $ 52,665 $ 4,079 $ 586 $ — $ 56,158 U.S. government and agency 35,021 3,755 231 — 38,545 32,834 3,238 457 — 35,615 Foreign corporate 24,367 1,655 426 — 25,596 24,596 957 1,196 — 24,357 RMBS 21,735 1,039 181 (41 ) 22,634 22,786 911 290 (10 ) 23,417 ABS 7,808 73 15 — 7,866 7,567 32 95 — 7,504 State and political subdivision 6,310 1,245 3 1 7,551 6,252 928 44 — 7,136 CMBS 5,390 124 26 — 5,488 4,876 118 59 — 4,935 Foreign government 3,887 641 26 — 4,502 3,565 507 74 — 3,998 Total fixed maturity securities $ 157,809 $ 13,569 $ 1,146 $ (40 ) $ 170,272 $ 155,141 $ 10,770 $ 2,801 $ (10 ) $ 163,120 Equity securities: Common stock $ 1,190 $ 75 $ 14 $ — $ 1,251 $ 1,220 $ 91 $ 12 $ — $ 1,299 Non-redeemable preferred stock 389 21 3 — 407 565 14 39 — 540 Total equity securities $ 1,579 $ 96 $ 17 $ — $ 1,658 $ 1,785 $ 105 $ 51 $ — $ 1,839 __________________ (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 $4 million and less than $1 million with unrealized gains (losses) of ($3) million and less than $1 million at December 31, 2017 and 2016 , respectively. Methodology for Amortization of Premium and Accretion of Discount on Structured Securities Amortization of premium and accretion of discount on Structured Securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for Structured Securities are estimated using inputs obtained from third-party specialists and based on management’s knowledge of the current market. For credit-sensitive Structured Securities and certain prepayment-sensitive securities, the effective yield is recalculated on a prospective basis. For all other Structured Securities, the effective yield is recalculated on a retrospective basis. Maturities of Fixed Maturity Securities The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at December 31, 2017 : Due in One Year or Less Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Structured Securities Total Fixed Maturity Securities (In millions) Amortized cost $ 6,372 $ 34,198 $ 30,434 $ 51,872 $ 34,933 $ 157,809 Estimated fair value $ 6,362 $ 35,197 $ 32,042 $ 60,683 $ 35,988 $ 170,272 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 Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities AFS by Sector The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position at: December 31, 2017 December 31, 2016 Less than 12 Months Equal to or Greater Less than 12 Months Equal to or Greater Estimated Gross Estimated Gross Estimated Gross Estimated Gross (Dollars in millions) Fixed maturity securities: U.S. corporate $ 3,727 $ 57 $ 2,523 $ 181 $ 8,406 $ 337 $ 2,260 $ 249 U.S. government and agency 13,905 76 3,018 155 6,032 457 — — Foreign corporate 1,677 43 3,912 383 5,343 336 4,523 860 RMBS 3,673 30 3,332 110 6,662 187 1,707 93 ABS 732 3 358 12 1,482 12 1,714 83 State and political subdivision 106 1 120 3 943 43 17 1 CMBS 844 6 193 20 922 15 432 44 Foreign government 247 6 265 20 581 26 309 48 Total fixed maturity securities $ 24,911 $ 222 $ 13,721 $ 884 $ 30,371 $ 1,413 $ 10,962 $ 1,378 Equity securities: Common stock $ 88 $ 14 $ 2 $ — $ 58 $ 12 $ 10 $ — Non-redeemable preferred stock 42 — 41 3 139 6 120 33 Total equity securities $ 130 $ 14 $ 43 $ 3 $ 197 $ 18 $ 130 $ 33 Total number of securities in an unrealized loss position 1,327 1,108 3,076 940 Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities Evaluation and Measurement Methodologies Management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the impairment evaluation process include, but are not limited to: (i) the length of time and the extent to which the estimated fair value has been below cost or amortized cost; (ii) the potential for impairments when the issuer is experiencing significant financial difficulties; (iii) the potential for impairments in an entire industry sector or sub-sector; (iv) the potential for impairments in certain economically depressed geographic locations; (v) the potential for impairments where the issuer, series of issuers or industry has suffered a catastrophic loss or has exhausted natural resources; (vi) with respect to fixed maturity securities, whether the Company has the intent to sell or will more likely than not be required to sell a particular security before the decline in estimated fair value below amortized cost recovers; (vii) with respect to Structured Securities, changes in forecasted cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security; (viii) the potential for impairments due to weakening of foreign currencies on non-functional currency denominated fixed maturity securities that are near maturity; and (ix) other subjective factors, including concentrations and information obtained from regulators and rating agencies. The methodology and significant inputs used to determine the amount of credit loss on fixed maturity securities are as follows: • The Company calculates the recovery value by performing a discounted cash flow analysis based on the present value of future cash flows. The discount rate is generally the effective interest rate of the security prior to impairment. • When determining collectability and the period over which value is expected to recover, the Company applies considerations utilized in its overall impairment evaluation process which incorporates information regarding the specific security, fundamentals of the industry and geographic area in which the security issuer operates, and overall macroeconomic conditions. Projected future cash flows are estimated using assumptions derived from management’s best estimates of likely scenario-based outcomes after giving consideration to a variety of variables that include, but are not limited to: payment terms of the security; the likelihood that the issuer can service the interest and principal payments; the quality and amount of any credit enhancements; the security’s position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; and changes to the rating of the security or the issuer by rating agencies. • Additional considerations are made when assessing the unique features that apply to certain Structured Securities including, but not limited to: the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying loans or assets backing a particular security, and the payment priority within the tranche structure of the security. • When determining the amount of the credit loss for U.S. and foreign corporate securities, foreign government securities and state and political subdivision securities, the estimated fair value is considered the recovery value when available information does not indicate that another value is more appropriate. When information is identified that indicates a recovery value other than estimated fair value, management considers in the determination of recovery value the same considerations utilized in its overall impairment evaluation process as described above, as well as any private and public sector programs to restructure such securities. With respect to securities that have attributes of debt and equity (“perpetual hybrid securities”), consideration is given in the OTTI analysis as to whether there has been any deterioration in the credit of the issuer and the likelihood of recovery in value of the securities that are in a severe and extended unrealized loss position. Consideration is also given as to whether any perpetual hybrid securities, with an unrealized loss, regardless of credit rating, have deferred any dividend payments. When an OTTI loss has occurred, the OTTI loss is the entire difference between the perpetual hybrid security’s cost and its estimated fair value with a corresponding charge to earnings. The cost or amortized cost of fixed maturity and equity securities is adjusted for OTTI in the period in which the determination is made. The Company does not change the revised cost basis for subsequent recoveries in value. In periods subsequent to the recognition of OTTI on a fixed maturity security, the Company accounts for the impaired security as if it had been purchased on the measurement date of the impairment. Accordingly, the discount (or reduced premium) based on the new cost basis is accreted over the remaining term of the fixed maturity security in a prospective manner based on the amount and timing of estimated future cash flows. 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 December 31, 2017 . Future OTTI will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), changes in credit ratings, collateral valuation, interest rates and credit spreads. If economic fundamentals deteriorate or if there are adverse changes in the above factors, OTTI may be incurred in upcoming periods. Gross unrealized losses on fixed maturity securities decreased $1.7 billion during the year ended December 31, 2017 to $1.1 billion . The decrease in gross unrealized losses for the year ended December 31, 2017 was primarily attributable to narrowing credit spreads and strengthening foreign currencies on non-functional currency denominated fixed maturity securities. At December 31, 2017 , $109 million of the total $1.1 billion of gross unrealized losses were from 24 fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for six months or greater. Gross unrealized losses on equity securities decreased $34 million during the year ended December 31, 2017 to $17 million . Investment Grade Fixed Maturity Securities Of the $109 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, $68 million , or 62% , were related to gross unrealized losses on 10 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 $109 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, $41 million , or 38% , were related to gross unrealized losses on 14 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) a nd 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. Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at: December 31, 2017 2016 Carrying % of Carrying % of (Dollars in millions) Mortgage loans: Commercial $ 35,440 60.6 % $ 34,008 60.1 % Agricultural 12,712 21.8 12,358 21.9 Residential 10,058 17.2 9,895 17.5 Subtotal (1) 58,210 99.6 56,261 99.5 Valuation allowances (271 ) (0.5 ) (267 ) (0.5 ) Subtotal mortgage loans, net 57,939 99.1 55,994 99.0 Residential — FVO 520 0.9 566 1.0 Total mortgage loans, net $ 58,459 100.0 % $ 56,560 100.0 % __________________ (1) Purchases of mort gage loans, primarily residential, were $3.1 billion and $2.9 billion for the years ended December 31, 2017 and 2016 , respectively. The Company originates and acquires unaffiliated mortgage loans and simultaneously sells a portion to affiliates under master participation agreements. The aggregate amount of unaffiliated mortgage loan participation interests sold by the Company to affiliates during the years ended December 31, 2017 , 2016 and 2015 were $2.5 billion , $3.6 billion and $3.0 billion , respectively. In connection with the mortgage loan participations, the Company collected mortgage loan principal and interest payments from unaffiliated borrowers on behalf of affiliates and remitted such receipts to the affiliates in the amount of $1.8 billion , $2.1 billion and $1.8 billion during the years ended December 31, 2017 , 2016 and 2015 , respectively. Information on commercial, agricultural and residential mortgage loans is presented in the tables below. Information on residential — FVO is presented in Note 10 . 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 and for the years ended: 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 Allowances Unpaid Principal Balance Recorded Investment Recorded Investment Valuation Allowances Carrying Value Average (In millions) December 31, 2017 Commercial $ — $ — $ — $ — $ — $ 35,440 $ 173 $ — $ 5 Agricultural 22 21 2 27 27 12,664 38 46 32 Residential — — — 358 324 9,734 58 324 285 Total $ 22 $ 21 $ 2 $ 385 $ 351 $ 57,838 $ 269 $ 370 $ 322 December 31, 2016 Commercial $ — $ — $ — $ 12 $ 12 $ 33,996 $ 167 $ 12 $ 30 Agricultural 11 9 1 27 27 12,322 37 35 49 Residential — — — 265 241 9,654 62 241 188 Total $ 11 $ 9 $ 1 $ 304 $ 280 $ 55,972 $ 266 $ 288 $ 267 The average recorded investment for impaired commercial, agricultural and residential mortgage loans was $120 million , $60 million and $84 million , respectively, for the year ended December 31, 2015 . Valuation Allowance Rollforward by Portfolio Segment The changes in the valuation allowance, by portfolio segment, were as follows: Commercial Agricultural Residential Total (In millions) Balance at January 1, 2015 $ 182 $ 35 $ 41 $ 258 Provision (release) 2 2 30 34 Charge-offs, net of recoveries (19 ) — (16 ) (35 ) Balance at December 31, 2015 165 37 55 257 Provision (release) 6 1 23 30 Charge-offs, net of recoveries — — (16 ) (16 ) Dispositions (1) (4 ) — — (4 ) Balance at December 31, 2016 167 38 62 267 Provision (release) 6 4 8 18 Charge-offs, net of recoveries — (2 ) (12 ) (14 ) Balance at December 31, 2017 $ 173 $ 40 $ 58 $ 271 ________________ (1) See Note 3 . Valuation Allowance Methodology Mortgage loans are considered to be impaired when it is probable that, based upon current information and events, the Company will be unable to collect all amounts due under the loan agreement. Specific valuation allowances are established using the same methodology for all three portfolio segments as the excess carrying value of a loan over either (i) the present value of expected future cash flows discounted at the loan’s original effective interest rate, (ii) the estimated fair value of the loan’s underlying collateral if the loan is in the process of foreclosure or otherwise collateral dependent, or (iii) the loan’s observable market price. A common evaluation framework is used for establishing non-specific valuation allowances for all loan portfolio segments; however, a separate non-specific valuation allowance is calculated and maintained for each loan portfolio segment that is based on inputs unique to each loan portfolio segment. Non-specific valuation allowances are established for pools of loans with similar risk characteristics where a property-specific or market-specific risk has not been identified, but for which the Company expects to incur a credit loss. These evaluations are based upon several loan portfolio segment-specific factors, including the Company’s experience for loan losses, defaults and loss severity, and loss expectations for loans with similar risk characteristics. These evaluations are revised as conditions change and new information becomes available. Commercial and Agricultural Mortgage Loan Portfolio Segments The Company typically uses several years of historical experience in establishing non-specific valuation allowances which capture multiple economic cycles. For evaluations of commercial mortgage loans, in addition to historical experience, management considers factors that include the impact of a rapid change to the economy, which may not be reflected in the loan portfolio, and recent loss and recovery trend experience as compared to historical loss and recovery experience. For evaluations of agricultural mortgage loans, in addition to historical experience, management considers factors that include increased stress in certain sectors, which may be evidenced by higher delinquency rates, or a change in the number of higher risk loans. On a quarterly basis, management incorporates the impact of these current market events and conditions on historical experience in determining the non-specific valuation allowance established for commercial and agricultural mortgage loans. All commercial mortgage loans are reviewed on an ongoing basis which may include an analysis of the property financial statements and rent roll, lease rollover analysis, property inspections, market analysis, estimated valuations of the underlying collateral, loan-to-value ratios, debt service coverage ratios, and tenant creditworthiness. The monitoring process focuses on higher risk loans, which include those that are classified as restructured, delinquent or in foreclosure, as well as loans with higher loan-to-value ratios and lower debt service coverage ratios. All agricultural mortgage loans are monitored on an ongoing basis. The monitoring process for agricultural mortgage loans is generally similar to the commercial mortgage loan monitoring process, with a focus on higher risk loans, including reviews on a geographic and property-type basis. Higher risk loans are reviewed individually on an ongoing basis for potential credit loss and specific valuation allowances are established using the methodology described above. Quarterly, the remaining loans are reviewed on a pool basis by aggregating groups of loans that have similar risk characteristics for potential credit loss, and non-specific valuation allowances are established as described above using inputs that are unique to each segment of the loan portfolio. For commercial mortgage loans, the primary credit quality indicator is the debt service coverage ratio, which compares a property’s net operating income to amounts needed to service the principal and interest due under the loan. Generally, the lower the debt service coverage ratio, the higher the risk of experiencing a credit loss. The Company also reviews the loan-to-value ratio of its commercial mortgage loan portfolio. Loan-to-value ratios compare the unpaid principal balance of the loan to the estimated fair value of the underlying collateral. Generally, the higher the loan-to-value ratio, the higher the risk of experiencing a credit loss. The debt service coverage ratio and the values utilized in calculating the ratio are updated annually on a rolling basis, with a portion of the portfolio updated each quarter. In addition, the loan-to-value ratio is routinely updated for all but the lowest risk loans as part of the Company’s ongoing review of its commercial mortgage loan portfolio. For agricultural mortgage loans, the Company’s primary credit quality indicator is the loan-to-value ratio. The values utilized in calculating this ratio are developed in connection with the ongoing review of the agricultural mortgage loan portfolio and are routinely updated. Residential Mortgage Loan Portfolio Segment The Company’s residential mortgage loan portfolio is comprised primarily of closed end, amortizing residential mortgage loans. For evaluations of residential mortgage loans, the key inputs of expected frequency and expected loss reflect current market conditions, with expected frequency adjusted, when appropriate, for differences from market conditions and the Company’s historical experience. In contrast to the commercial and agricultural mortgage loan portfolios, residential mortgage loans are smaller-balance homogeneous loans that are collectively evaluated for impairment. Non-specific valuation allowances are established using the evaluation framework described above for pools of loans with similar risk characteristics from inputs that are unique to the residential segment of the loan portfolio. Loan specific valuation allowances are only established on residential mortgage loans when they have been restructured and are established using the methodology described above for all loan portfolio segments. For residential mortgage loans, the Company’s primary credit quality indicator is whether the loan is performing or nonperforming. The Company generally defines nonperforming residential mortgage loans as those that are 60 or more days past due and/or in nonaccrual status which is assessed monthly. Generally, nonperforming residential mortgage loans have a higher risk of experiencing a credit loss. Credit Quality of Commercial Mortgage Loans The credit quality of commercial mortgage loans was as follows at: Recorded Investment Estimated % of Debt Service Coverage Ratios Total % of > 1.20x 1.00x - 1.20x < 1.00x (Dollars in millions) December 31, 2017 Loan-to-value ratios: Less than 65% $ 29,346 $ 1,359 $ 198 $ 30,903 87.2 % $ 31,563 87.5 % 65% to 75% 3,245 95 114 3,454 9.7 3,465 9.6 76% to 80% 149 171 57 377 1.1 363 1.0 Greater than 80% 400 159 147 706 2.0 665 1.9 Total $ 33,140 $ 1,784 $ 516 $ 35,440 100.0 % $ 36,056 100.0 % December 31, 2016 Loan-to-value ratios: Less than 65% $ 29,352 $ 1,036 $ 564 $ 30,952 91.0 % $ 31,320 91.2 % 65% to 75% 2,522 — 198 2,720 8.0 2,694 7.9 76% to 80% 116 — — 116 0.3 115 0.3 Greater than 80% 118 27 75 220 0.7 214 0.6 Total $ 32,108 $ 1,063 $ 837 $ 34,008 100.0 % $ 34,343 100.0 % Credit Quality of Agricultural Mortgage Loans The credit quality of agricultural mortgage loans was as follows at: December 31, 2017 2016 Recorded % of Recorded % of (Dollars in millions) Loan-to-value ratios: Less than 65% $ 12,082 95.0 % $ 11,829 95.7 % 65% to 75% 581 4.6 424 3.4 76% to 80% 40 0.3 17 0.2 Greater than 80% 9 0.1 88 0.7 Total $ 12,712 100.0 % $ 12,358 100.0 % The estimated fair value of agricultural mortgage loans was $12.8 billion and $12.5 billion at December 31, 2017 and 2016 , respectively. Credit Quality of Residential Mortgage Loans The credit quality of residential mortgage loans was as follows at: December 31, 2017 2016 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Performance indicators: Performing $ 9,614 95.6 % $ 9,563 96.6 % Nonperforming 444 4.4 332 3.4 Total $ 10,058 100.0 % $ 9,895 100.0 % The estimated fair value of residential mortgage loans was $10.6 billion and $10.3 billion at December 31, 2017 and 2016 , 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 December 31, 2017 and 2016 . 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 December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 (In millions) Commercial $ — $ — $ — $ — $ — $ — Agricultural 134 127 125 104 36 23 Residential 444 332 — — 444 332 Total $ 578 $ 459 $ 125 $ 104 $ 480 $ 355 Mortgage Loans Modified in a Troubled Debt Restructuring The Company may grant concessions related to borrowers experiencing financial difficulties, which are classified as troubled debt restructurings. Generally, the types of concessions include: reduction of the contractual interest rate, extension of the maturity date at an interest rate lower than current market interest rates, and/or a reduction of accrued interest. The amount, timing and extent of the concessions granted are considered in determining any impairment or changes in the specific valuation allowance recorded with the restructuring. Through the continuous monitoring process, a specific valuation allowance may have been recorded prior to the quarter when the mortgage loan is modified in a troubled debt restructuring. For the year ended December 31, 2017 , the Company had 500 residential mortgage loans modified in a troubled debt restructuring with carrying value after specific valuation allowance of $120 million and $108 million pre-modification and post-modification, respectively. For the year ended December 31, 2016 , the Company had 557 residential mortgage loans modified in a troubled debt restructuring with carrying value after specific valuation allowance of $136 million and $122 million pre-modification and post-modification, respectively. For the years ended December 31, 2017 and 2016 , the Company did not have a significant amount of agricultural mortgage loans and no commercial mortgage loans modified in a troubled debt restructuring. For both the years ended December 31, 2017 and 2016 , the Company did not have a significant amount of mortgage loans modified in a troubled debt restructuring with subsequent payment default. Other Invested Assets Other invested assets is comprised primarily of freestanding derivatives with positive estimated fair values (see Note 9 ), tax credit and renewable energy partnerships, loans to affiliates, annuities funding structured settlement claims and leveraged and direct financing leases. See “— Related Party Investment Transactions” for information regarding loans to affiliates and annuities funding structured settlement claims. Tax Credit Partnerships The carrying value of tax credit partnerships was $1.8 billion and $1.7 billion at December 31, 2017 and 2016 , respectively. Losses from tax credit partnerships included within net investment income were $259 million , $166 million , and $163 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Leveraged and Direct Financing Leases Investment in leveraged and direct financing leases consisted of the following at: December 31, 2017 2016 Leveraged Leases Direct Financing Leases Leveraged Leases Direct Financing Leases (In millions) Rental receivables, net $ 911 $ 278 $ 1,171 $ 300 Estimated residual values 649 42 690 42 Subtotal 1,560 320 1,861 342 Unearned income (448 ) (113 ) (572 ) (127 ) Investment in leases, net of non-recourse debt $ 1,112 $ 207 $ 1,289 $ 215 Rental receivables are generally due in periodic installments. The payment periods for leveraged leases generally range from one to 15 years but in certain circumstances can be over 25 years, while the payment periods for direct financing leases range from one to 20 years. For rental receivables, the primary credit quality indicator is whether the rental receivable is performing or nonperforming, which is assessed monthly. The Company generally defines nonperforming rental receivables as those that are 90 days or more past due. At December 31, 2017 and 2016 , all leveraged lease receivables and direct financing rental receivables were performing. The deferred income tax liability related to |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 9. Derivatives Accounting for Derivatives See Note 1 for a description of the Company’s accounting policies for derivatives and Note 10 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. 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. 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. 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 policyholder 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 and foreign currency forwards, to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies. 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 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 also entered into certain purchased and written credit default swaps held in relation to trading portfolios for the purpose of generating profits on short-term differences in price. These credit default swaps were not designated as hedging instruments. As of December 31 , 2016, the Company no longer maintained a trading portfolio for derivatives. 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: Primary Underlying Risk Exposure December 31, 2017 2016 Estimated Fair Value Estimated Fair Value Gross Notional Amount Assets Liabilities Gross Notional Amount Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments: Fair value hedges: Interest rate swaps Interest rate $ 3,826 $ 2,289 $ 3 $ 4,993 $ 2,221 $ 6 Foreign currency swaps Foreign currency exchange rate 1,082 47 17 1,200 29 224 Subtotal 4,908 2,336 20 6,193 2,250 230 Cash flow hedges: Interest rate swaps Interest rate 3,337 234 — 1,793 325 26 Interest rate forwards Interest rate 3,333 — 127 4,033 — 370 Foreign currency swaps Foreign currency exchange rate 22,287 795 1,078 20,080 1,435 1,604 Subtotal 28,957 1,029 1,205 25,906 1,760 2,000 Total qualifying hedges 33,865 3,365 1,225 32,099 4,010 2,230 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 43,028 1,722 336 32,662 2,514 879 Interest rate floors Interest rate 7,201 91 — 9,001 173 2 Interest rate caps Interest rate 53,079 78 2 78,358 112 3 Interest rate futures Interest rate 2,257 1 2 2,342 3 — Interest rate options Interest rate 7,525 142 11 850 144 1 Interest rate forwards Interest rate — — — 396 — 3 Interest rate total return swaps Interest rate 1,048 8 2 1,549 2 127 Synthetic GICs Interest rate 11,318 — — 5,566 — — Foreign currency swaps Foreign currency exchange rate 6,739 547 164 8,175 1,247 58 Foreign currency forwards Foreign currency exchange rate 961 16 7 1,396 52 18 Credit default swaps — purchased Credit 980 7 8 961 12 6 Credit default swaps — written Credit 7,874 181 — 8,025 119 8 Equity futures Equity market 1,282 5 1 1,851 10 — Equity index options Equity market 14,408 384 476 11,119 260 426 Equity variance swaps Equity market 3,530 45 169 5,579 69 193 Equity total return swaps Equity market 1,077 — 39 1,013 1 42 Total non-designated or nonqualifying derivatives 162,307 3,227 1,217 168,843 4,718 1,766 Total $ 196,172 $ 6,592 $ 2,442 $ 200,942 $ 8,728 $ 3,996 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 December 31, 2017 and 2016 . 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: Years Ended December 31, 2017 2016 2015 (In millions) Freestanding derivatives and hedging gains (losses) (1) $ (771 ) $ (715 ) $ 463 Embedded derivatives gains (losses) 427 (423 ) 418 Total net derivative gains (losses) $ (344 ) $ (1,138 ) $ 881 __________________ (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: Years Ended December 31, 2017 2016 2015 (In millions) Qualifying hedges: Net investment income $ 302 $ 280 $ 227 Interest credited to policyholder account balances (64 ) (1 ) 28 Nonqualifying hedges: Net investment income — (1 ) (5 ) Net derivative gains (losses) 406 577 518 Policyholder benefits and claims 5 4 2 Total $ 649 $ 859 $ 770 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 Benefits and Claims (2) (In millions) Year Ended December 31, 2017 Interest rate derivatives $ (343 ) $ 1 $ — Foreign currency exchange rate derivatives (746 ) — — Credit derivatives — purchased (16 ) — — Credit derivatives — written 102 — — Equity derivatives (536 ) (6 ) (216 ) Total $ (1,539 ) $ (5 ) $ (216 ) Year Ended December 31, 2016 Interest rate derivatives $ (1,088 ) $ — $ — Foreign currency exchange rate derivatives 726 — — Credit derivatives — purchased (23 ) — — Credit derivatives — written 48 — — Equity derivatives (457 ) (14 ) (94 ) Total $ (794 ) $ (14 ) $ (94 ) Year Ended December 31, 2015 Interest rate derivatives $ (243 ) $ — $ — Foreign currency exchange rate derivatives 678 — — Credit derivatives — purchased 17 (3 ) — Credit derivatives — written (57 ) — — Equity derivatives (152 ) (11 ) — Total $ 243 $ (14 ) $ — __________________ (1) Changes in estimated fair value related to economic hedges of equity method investments in joint ventures and derivatives held in relation to trading portfolios. As of December 31 , 2016, the Company no longer maintained a trading portfolio for derivatives. (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; and (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities. The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges within net derivative gains (losses). The following table presents the amount of such net derivative gains (losses): Derivatives in Fair Value Hedged Items in Fair Value Net Derivative Net Derivative Ineffectiveness (In millions) Year Ended December 31, 2017 Interest rate swaps: Fixed maturity securities $ 4 $ (5 ) $ (1 ) Policyholder liabilities (1) (69 ) 134 65 Foreign currency swaps: Foreign-denominated fixed maturity securities (24 ) 27 3 Foreign-denominated policyholder account balances (2) 65 (43 ) 22 Total $ (24 ) $ 113 $ 89 Year Ended December 31, 2016 Interest rate swaps: Fixed maturity securities $ 8 $ (9 ) $ (1 ) Policyholder liabilities (1) (109 ) 90 (19 ) Foreign currency swaps: Foreign-denominated fixed maturity securities 10 (9 ) 1 Foreign-denominated policyholder account balances (2) (95 ) 92 (3 ) Total $ (186 ) $ 164 $ (22 ) Year Ended December 31, 2015 Interest rate swaps: Fixed maturity securities $ 4 $ — $ 4 Policyholder liabilities (1) (4 ) (6 ) (10 ) Foreign currency swaps: Foreign-denominated fixed maturity securities 14 (5 ) 9 Foreign-denominated policyholder account balances (2) (240 ) 231 (9 ) Total $ (226 ) $ 220 $ (6 ) __________________ (1) Fixed rate liabilities reported in policyholder account balances or future policy benefits. (2) Fixed rate or floating rate liabilities. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. Cash Flow Hedges The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities; (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments; and (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed rate investments. 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 $20 million , $17 million and $14 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. At both December 31, 2017 and 2016 , 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 five years. At December 31, 2017 and 2016 , the balance in AOCI associated with cash flow hedges was $1.4 billion and $2.2 billion , respectively. The following table presents the effects of derivatives in cash flow hedging relationships on the consolidated statements of operations and the consolidated statements of equity: Derivatives in Cash Flow Hedging Relationships Amount of Gains (Losses)Deferred in AOCI on Derivatives Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) Amount and Location (Effective Portion) (Effective Portion) (Ineffective Portion) Net Derivative Net Investment Income Net Derivative (In millions) Year Ended December 31, 2017 Interest rate swaps $ 73 $ 24 $ 16 $ 18 Interest rate forwards 210 (11 ) 2 (2 ) Foreign currency swaps (161 ) 938 (1 ) — Credit forwards — 1 1 — Total $ 122 $ 952 $ 18 $ 16 Year Ended December 31, 2016 Interest rate swaps $ 58 $ 57 $ 12 $ — Interest rate forwards (366 ) (1 ) 3 — Foreign currency swaps 167 (251 ) (1 ) — Credit forwards — 3 1 — Total $ (141 ) $ (192 ) $ 15 $ — Year Ended December 31, 2015 Interest rate swaps $ 76 $ 83 $ 11 $ 2 Interest rate forwards (3 ) 4 2 — Foreign currency swaps (92 ) (679 ) (1 ) 7 Credit forwards — 1 1 — Total $ (19 ) $ (591 ) $ 13 $ 9 All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. At December 31, 2017 , the Company expected to reclassify ($11) million of deferred net gains (losses) on derivatives in AOCI to earnings within the next 12 months. Credit Derivatives In connection with synthetically created credit investment transactions, the Company writes credit default swaps for which it receives a premium to insure credit risk. Such credit derivatives are included within the nonqualifying derivatives and derivatives for purposes other than hedging table. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation. The Company’s maximum amount at risk, assuming the value of all referenced credit obligations is zero, was $7.9 billion and $8.0 billion at December 31, 2017 and 2016 , respectively. The Company can terminate these contracts at any time through cash settlement with the counterparty at an amount equal to the then current estimated fair value of the credit default swaps. At December 31, 2017 and 2016 , the Company would have received $181 million and $111 million , respectively, to terminate all of these contracts. The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at: December 31, 2017 2016 Rating Agency Designation of Referenced Estimated Maximum Amount of Future Payments under Credit Default Swaps Weighted Estimated Maximum Amount of Future Payments under Credit Default Swaps Weighted ( Dollars in millions) Aaa/Aa/A Single name credit default swaps (3) $ 3 $ 159 2.8 $ 1 $ 229 2.7 Credit default swaps referencing indices 42 2,193 2.7 32 2,093 3.5 Subtotal 45 2,352 2.7 33 2,322 3.4 Baa Single name credit default swaps (3) 4 416 1.5 3 563 2.2 Credit default swaps referencing indices 111 4,761 5.2 61 4,730 5.1 Subtotal 115 5,177 4.9 64 5,293 4.8 Ba Single name credit default swaps (3) 1 105 3.4 (2 ) 115 4.2 Credit default swaps referencing indices — — — — — — Subtotal 1 105 3.4 (2 ) 115 4.2 B Single name credit default swaps (3) 2 20 3.5 — 70 1.8 Credit default swaps referencing indices 18 220 5.0 16 225 5.0 Subtotal 20 240 4.9 16 295 4.2 Total $ 181 $ 7,874 4.2 $ 111 $ 8,025 4.4 __________________ (1) The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), 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. The Company has also entered into credit default swaps to purchase credit protection on certain of the referenced credit obligations in the table above. As a result, the maximum amounts of potential future recoveries available to offset the $7.9 billion and $8.0 billion from the table above were $27 million and $30 million at December 31, 2017 and 2016 , respectively. 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 10 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: December 31, 2017 2016 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) $ 6,478 $ 2,203 $ 7,926 $ 3,349 OTC-cleared (1), (6) 168 216 905 611 Exchange-traded 6 3 13 — Total gross estimated fair value of derivatives (1) 6,652 2,422 8,844 3,960 Amounts offset on the consolidated balance sheets — — — — Estimated fair value of derivatives presented on the consolidated balance sheets (1), (6) 6,652 2,422 8,844 3,960 Gross amounts not offset on the consolidated balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral (1,891 ) (1,891 ) (2,737 ) (2,737 ) OTC-cleared (31 ) (31 ) (391 ) (391 ) Exchange-traded — — — — Cash collateral: (3), (4) OTC-bilateral (3,448 ) — (3,418 ) — OTC-cleared (131 ) (179 ) (497 ) (217 ) Exchange-traded — — — — Securities collateral: (5) OTC-bilateral (954 ) (312 ) (1,560 ) (609 ) OTC-cleared — (6 ) — — Exchange-traded — (3 ) — — Net amount after application of master netting agreements and collateral $ 197 $ — $ 241 $ 6 __________________ (1) At December 31, 2017 and 2016 , derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $60 million and $116 million , respectively, and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of ($20) million and ($36) 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 December 31, 2017 and 2016 , the Company received excess cash collateral of $122 million and $77 million , respectively, and provided excess cash collateral of $9 million and $9 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 December 31, 2017 , 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 December 31, 2017 and 2016 , the Company received excess securities collateral with an estimated fair value of $30 million and $21 million , respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At December 31, 2017 and 2016 , the Company provided excess securities collateral with an estimated fair value of $152 mill |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 10. Fair Value When developing estimated fair values, the Company considers three broad valuation approaches: (i) the market approach, (ii) the income approach, and (iii) the cost approach. The Company determines the most appropriate valuation approach to use, given what is being measured and the availability of sufficient inputs, giving priority to observable inputs. The Company categorizes its assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the significant input with the lowest level in its valuation. The input levels are as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. The Company defines active markets based on average trading volume for equity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities. Level 2 Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. These inputs can include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other significant inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the determination of estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. Financial markets are susceptible to severe events evidenced by rapid depreciation in asset values accompanied by a reduction in asset liquidity. The Company’s ability to sell securities, or the price ultimately realized for these securities, depends upon the demand and liquidity in the market and increases the use of judgment in determining the estimated fair value of certain securities. Considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. Recurring Fair Value Measurements The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below at: December 31, 2017 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated Fair Value (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 54,629 $ 3,461 $ 58,090 U.S. government and agency 18,802 19,743 — 38,545 Foreign corporate — 21,471 4,125 25,596 RMBS — 19,372 3,262 22,634 ABS — 7,079 787 7,866 State and political subdivision — 7,551 — 7,551 CMBS — 5,461 27 5,488 Foreign government — 4,471 31 4,502 Total fixed maturity securities 18,802 139,777 11,693 170,272 Equity securities 399 893 366 1,658 Short-term investments 2,056 1,092 7 3,155 Residential mortgage loans — FVO — — 520 520 Derivative assets: (1) Interest rate 1 4,556 8 4,565 Foreign currency exchange rate — 1,405 — 1,405 Credit — 149 39 188 Equity market 5 363 66 434 Total derivative assets 6 6,473 113 6,592 Embedded derivatives within asset host contracts (2) — — — — Separate account assets (3) 23,571 106,294 960 130,825 Total assets $ 44,834 $ 254,529 $ 13,659 $ 313,022 Liabilities Derivative liabilities: (1) Interest rate $ 2 $ 351 $ 130 $ 483 Foreign currency exchange rate — 1,261 5 1,266 Credit — 8 — 8 Equity market 1 515 169 685 Total derivative liabilities 3 2,135 304 2,442 Embedded derivatives within liability host contracts (2) — — 876 876 Long-term debt — — — — Separate account liabilities (3) — 7 2 9 Total liabilities $ 3 $ 2,142 $ 1,182 $ 3,327 December 31, 2016 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated Fair Value (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 51,303 $ 4,855 $ 56,158 U.S. government and agency 17,597 18,018 — 35,615 Foreign corporate — 20,373 3,984 24,357 RMBS — 19,719 3,698 23,417 ABS — 6,745 759 7,504 State and political subdivision — 7,126 10 7,136 CMBS — 4,851 84 4,935 Foreign government — 3,977 21 3,998 Total fixed maturity securities 17,597 132,112 13,411 163,120 Equity securities 408 1,011 420 1,839 Short-term investments 2,945 1,720 25 4,690 Residential mortgage loans — FVO — — 566 566 Derivative assets: (1) Interest rate 3 5,489 2 5,494 Foreign currency exchange rate — 2,763 — 2,763 Credit — 101 30 131 Equity market 10 226 104 340 Total derivative assets 13 8,579 136 8,728 Embedded derivatives within asset host contracts (2) — — 460 460 Separate account assets (3) 27,633 105,055 1,148 133,836 Total assets $ 48,596 $ 248,477 $ 16,166 $ 313,239 Liabilities Derivative liabilities: (1) Interest rate $ — $ 917 $ 500 $ 1,417 Foreign currency exchange rate — 1,902 2 1,904 Credit — 14 — 14 Equity market — 468 193 661 Total derivative liabilities — 3,301 695 3,996 Embedded derivatives within liability host contracts (2) — — 1,353 1,353 Long-term debt — — 74 74 Separate account liabilities (3) — 16 7 23 Total liabilities $ — $ 3,317 $ 2,129 $ 5,446 __________________ (1) Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables. (2) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables on the consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the consolidated balance sheets. At December 31, 2017 and 2016 , debt and equity securities also included embedded derivatives of ($113) million and ($78) million , respectively. (3) 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 and MetLife, Inc.’s Chief Investment Officer and Chief Financial Officer, a pricing and valuation committee that is independent of the trading and investing functions and comprised of senior management, provides oversight of control systems and valuation policies for securities, mortgage loans and derivatives. On a quarterly basis, this committee reviews and approves new transaction types and markets, ensures that observable market prices and market-based parameters are used for valuation, wherever possible, and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. This committee also provides oversight of the selection of independent third-party pricing providers and the controls and procedures to evaluate third-party pricing. Periodically, the Chief Accounting Officer reports to the Audit Committee of the Board of Directors of each of MetLife, Inc. and Metropolitan Life Insurance Company 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 1% of the total estimated fair value of Level 3 fixed maturity securities at December 31, 2017 . 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 Long-term Debt 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 long-term debt is determined on a basis consistent with the methodologies described herein for securities. The valuation of most instruments listed below is determined using independent pricing sources, matrix pricing, discounted cash flow methodologies or other similar techniques that use either observable market inputs or unobservable inputs. Instrument Level 2 Observable Inputs Level 3 Unobservable Inputs Fixed maturity securities U.S. corporate and Foreign corporate securities Valuation 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 U.S. government and agency, State and political subdivision and Foreign government 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 Short-term investments • Short-term 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. • 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. 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 by applying a premium or discount, if appropriate. Key Inputs: • liquidity; bid/ask spreads; performance record of the fund manager • other relevant variables that may impact the exit value of the particular partnership interest __________________ (1) Estimated fair value equals carrying value, based on the value of the underlying assets, including: mutual fund interests, fixed maturity securities, equity securities, derivatives, hedge funds, other limited partnership interests, short-term investments and cash and cash equivalents. Fixed maturity securities, equity securities, derivatives, short-term investments and cash and cash equivalents are similar in nature to the instruments described under “— Securities, Short-term Investments and Long-term Debt” 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) 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 • 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, certain affiliated ceded reinsurance agreements related to such variable annuity guarantees, equity or bond indexed crediting rates within certain funding agreements 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, GMABs and GMWBs previously described. In addition to ceding risks associated with guarantees that are accounted for as embedded derivatives, the Company also ceded directly written GMIBs that are accounted for as insurance (i.e., not as embedded derivatives) but where the reinsurance agreement contains an embedded derivative. These embedded derivatives 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). 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 Long-term Debt.” 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. 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. Embedded derivatives within funds withheld related to certain ceded reinsurance These embedded derivatives are principally valued using the income approach. The valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curves and the fair value of assets within the reference portfolio. 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 fair value of certain assets within the reference portfolio which are not observable in the market and cannot be derived principally from, or corroborated by, observable market data. Transfers between Levels Overall, transfers between levels occur when there are changes in the observability of inputs and market activity. Transfers into or out of any level are assumed to occur at the beginning of the period. Transfers between Levels 1 and 2: For assets and liabilities measured at estimated fair value and still held at December 31, 2017 and December 31, 2016, there were no transfers between Levels 1 and 2. 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 |
Long-term and Short-term Debt
Long-term and Short-term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term and Short-term Debt | 11. Long-term and Short-term Debt Long-term and short-term debt outstanding, excluding debt relating to CSEs, was as follows: December 31, Interest Rates (1) 2017 2016 Range Weighted Average Maturity Face Value Unamortized Discount and Issuance Costs Carrying Value Face Value Unamortized Discount and Issuance Costs Carrying Value (2) (In millions) Surplus notes - affiliated 7.38% - 7.38% 7.38% 2037 $ 700 $ (10 ) $ 690 $ 700 $ (10 ) $ 690 Surplus notes (2) 7.80% - 7.88% 7.83% 2024 - 2025 400 (3 ) 397 400 (3 ) 397 Other notes (3) 2.20% - 7.29% 4.56% 2018 - 2058 578 (4 ) 574 494 (4 ) 490 Total long-term debt 1,678 (17 ) 1,661 1,594 (17 ) 1,577 Total short-term debt 243 — 243 100 — 100 Total $ 1,921 $ (17 ) $ 1,904 $ 1,694 $ (17 ) $ 1,677 __________________ (1) Range of interest rates and weighted average interest rates are for the year ended December 31, 2017 . (2) In December 2016, the $107 million 7.625% surplus notes were deconsolidated due to the disposition of GALIC. See Note 3. (3) During 2017, a subsidiary issued $139 million of long-term debt to a third party. The aggregate maturities of long-term debt at December 31, 2017 for the next five years and thereafter are $20 million in 2018, $0 in each of 2019, 2020 and 2021, $346 million in 2022 and $1.3 billion thereafter. Unsecured senior debt which consists of senior notes and other notes rank highest in priority. Payments of interest and principal on Metropolitan Life Insurance Company’s surplus notes are subordinate to all other obligations and may be made only with the prior approval of the New York State Department of Financial Services. Term Loans MetLife Private Equity Holdings, LLC (“MPEH”), a wholly-owned indirect investment subsidiary, borrowed $350 million in December 2015 under a five-year credit agreement included within other notes in the table above. In November 2017, this agreement was amended to extend the maturity to November 2022 , change the amount MPEH may borrow on a revolving basis to $75 million from $100 million , and change the interest rate to a variable rate of three-month LIBOR plus 3.25% , payable quarterly, from a variable rate of three-month LIBOR plus 3.70% . In connection with the initial borrowing in 2015, $6 million of costs were incurred, and additional costs of $1 million were incurred in connection with the 2017 amendment, which have been capitalized and are being amortized over the term of the loans. MPEH has pledged invested assets to secure the loans; however these loans are non-recourse to Metropolitan Life Insurance Company. Debt Repayments In December 2015 , a wholly-owned real estate subsidiary of the Company repaid in cash $110 million of its mortgage loans issued to Brighthouse Insurance due in January 2016 . In November 2015 , the Company repaid in cash, at maturity, $188 million of surplus notes issued to MetLife Mexico S.A., an affiliate. The redemption was approved by the New York Superintendent of Financial Services (the “Superintendent”). In November 2015 , the Company repaid in cash, at maturity, $200 million of surplus notes. The redemption was approved by the Superintendent. During 2015, a wholly-owned real estate subsidiary of the Company repaid in cash $132 million of its 7.26% mortgage loans issued to Brighthouse Insurance due in January 2020 . Short-term Debt Short-term debt with maturities of one year or less was as follows: December 31, 2017 2016 (Dollars in millions) Commercial paper $ 100 $ 100 Short-term borrowings (1) 143 — Total short-term debt $ 243 $ 100 Average daily balance $ 129 $ 100 Average days outstanding 97 days 40 days __________________ (1) Represents short-term debt related to repurchase agreements, secured by assets of a subsidiary. During the years ended December 31, 2017 , 2016 and 2015 , the weighted average interest rate on short-term debt was 1.63% , 0.42% and 0.15% , respectively. Interest Expense Interest expense included in other expenses was $106 million , $112 million and $122 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. These amounts include $52 million , $52 million and $67 million of interest expense related to affiliated debt for the years ended December 31, 2017 , 2016 and 2015 , respectively. Credit and Committed Facilities At December 31, 2017 , MetLife, Inc. and MetLife Funding, Inc., a wholly-owned subsidiary of Metropolitan Life Insurance Company (“MetLife Funding”), maintained a $3.0 billion unsecured revolving credit facility (the “Credit Facility”), and Missouri Reinsurance, Inc. (“MoRe”), a wholly-owned subsidiary of Metropolitan Life Insurance Company, had access to a committed bank facility of MetLife, Inc., which provides letters of credit for the benefit of certain affiliates of MetLife, Inc., including Metropolitan Life Insurance Company and certain of its subsidiaries, subject to bank consent (the “Committed Facility”). When drawn upon, these facilities bear interest at varying rates in accordance with the respective agreements. Credit Facility The Company’s Credit Facility is used for general corporate purposes, to support the borrowers’ commercial paper programs and for the issuance of letters of credit. Total fees associated with the Credit Facility were $5 million , $8 million and $4 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, and were included in other expenses. Information on the Credit Facility at December 31, 2017 was as follows: Borrower(s) Expiration Maximum Letters of Credit Used by the Company (1) Letters of Credit Used by Affiliates (1) Drawdowns Unused (In millions) MetLife, Inc. and MetLife Funding, Inc. December 2021 (2) $ 3,000 (2) $ 57 $ 73 $ — $ 2,870 __________________ (1) MetLife, Inc. and MetLife Funding are severally liable for their respective obligations under the Credit Facility. MetLife Funding was not an applicant under letters of credit outstanding as of December 31, 2017 and is not responsible for any reimbursement obligations under such letters of credit. (2) All borrowings under the Credit Facility must be repaid by December 20, 2021 , except that letters of credit outstanding upon termination may remain outstanding until December 20, 2022. Committed Facility Letters of credit issued under the Committed Facility are used for collateral for certain of the Company’s affiliated reinsurance liabilities. Total fees associated with the Committed Facility were $5 million , $4 million and $4 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, and were included in other expenses. MoRe had $395 million in letters of credit outstanding and there was no remaining availability under the Committed Facility at December 31, 2017 . The Committed Facility matures on June 20, 2018. In addition to the Committed Facility, see also “— Term Loans” for information about the undrawn line of credit facility in the amount of $75 million . Debt and Facility Covenants Certain of the Company’s debt instruments and the Credit Facility contain various administrative, reporting, legal and financial covenants. The Company believes it was in compliance with all applicable covenants at December 31, 2017 . |
Equity
Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Equity | 12. Equity Stock-Based Compensation Plans The Company does not issue any awards payable in its common stock or options to purchase its common stock. An affiliate employs the personnel who conduct most of the Company’s business. In accordance with a services agreement with that affiliate, the Company bears a proportionate share of stock-based compensation expense for those employees. Stock-based compensation expense relate to Stock Options, Performance Shares, and Restricted Stock Units under the MetLife, Inc. 2005 Stock and Incentive Compensation Plan and the MetLife, Inc. 2015 Stock and Incentive Compensation Plan, most of which MetLife, Inc. granted in the first quarter of each year. The Company’s expense related to stock-based compensation included in other expenses was $74 million , $89 million and $85 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Statutory Equity and Income See Note 3 for information on the disposition of NELICO and GALIC. The state of domicile of Metropolitan Life Insurance Company imposes risk-based capital (“RBC”) requirements that were developed by the National Association of Insurance Commissioners (“NAIC”). Regulatory compliance is determined by a ratio of a company’s total adjusted capital, calculated in the manner prescribed by the NAIC (“TAC”) to its authorized control level RBC, calculated in the manner prescribed by the NAIC (“ACL RBC”), based on the statutory-based filed financial statements. Companies below specific trigger levels or ratios are classified by their respective levels, each of which requires specified corrective action. The minimum level of TAC before corrective action commences is twice ACL RBC (“CAL RBC”). The CAL RBC ratios for Metropolitan Life Insurance Company were in excess of 370% and 400% at December 31, 2017 and December 31, 2016, respectively. Metropolitan Life Insurance Company’s foreign insurance operations are regulated by applicable authorities of the countries in which each entity operates and are subject to minimum capital and solvency requirements in those countries before corrective action commences. The aggregate required capital and surplus of Metropolitan Life Insurance Company’s foreign insurance operations was $279 million and the aggregate actual regulatory capital and surplus was $389 million as of the date of the most recent required capital adequacy calculation for each jurisdiction. Each of those foreign insurance operations exceeded minimum capital and solvency requirements of their respective countries for all periods presented. Metropolitan Life Insurance Company and its former U.S. insurance subsidiaries prepare statutory-basis financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of the state of domicile. The NAIC has adopted the Codification of Statutory Accounting Principles (“Statutory Codification”). Statutory Codification is intended to standardize regulatory accounting and reporting to state insurance departments. However, statutory accounting principles continue to be established by individual state laws and permitted practices. Modifications by the state insurance department may impact the effect of Statutory Codification on the statutory capital and surplus of Metropolitan Life Insurance Company. Statutory accounting principles differ from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions, reporting surplus notes as surplus instead of debt, reporting of reinsurance agreements and valuing securities on a different basis. In addition, certain assets are not admitted under statutory accounting principles and are charged directly to surplus. The most significant assets not admitted by the Company are net deferred income tax assets resulting from temporary differences between statutory accounting principles basis and tax basis not expected to reverse and become recoverable within three years. Metropolitan Life Insurance Company and its former U.S. insurance subsidiaries have no material state prescribed accounting practices, except as described below. New York has adopted certain prescribed accounting practices, primarily consisting of the continuous Commissioners’ Annuity Reserve Valuation Method, which impacts deferred annuities, and the New York Special Consideration Letter, which mandates certain assumptions in asset adequacy testing. The collective impact of these prescribed accounting practices decreased the statutory capital and surplus of Metropolitan Life Insurance Company for the years ended December 31, 2017 and 2016 by an amount of $1.1 billion and $909 million , respectively, in excess of the amount of the decrease had capital and surplus been measured under NAIC guidance. The tables below present amounts from Metropolitan Life Insurance Company and its former U.S. insurance subsidiaries, which are derived from their respective statutory–basis financial statements as filed with the insurance regulators. Statutory net income (loss) was as follows: Years Ended December 31, Company State of Domicile 2017 2016 2015 (In millions) Metropolitan Life Insurance Company (1) New York $ 1,982 $ 3,444 $ 3,703 New England Life Insurance Company (1) Massachusetts N/A N/A $ 157 General American Life Insurance Company (1) Missouri N/A N/A $ 204 __________________ (1) In December 2016, Metropolitan Life Insurance Company distributed all of the issued and outstanding shares of common stock of each of NELICO and GALIC to MetLife, Inc., in the form of a non-cash extraordinary dividend. Statutory capital and surplus was as follows at: December 31, Company 2017 2016 (In millions) Metropolitan Life Insurance Company $ 10,384 $ 11,195 Dividend Restrictions The table below sets forth the dividends permitted to be paid by Metropolitan Life Insurance Company to MetLife, Inc. without insurance regulatory approval and dividends paid: 2018 2017 2016 Company Permitted Without Approval Paid (1) Paid (1) (2) (In millions) Metropolitan Life Insurance Company $ 3,075 $ 2,523 $ 5,740 __________________ (1) Reflects all amounts paid, including those requiring regulatory approval. (2) In 2016, Metropolitan Life Insurance Company paid an ordinary cash dividend to MetLife, Inc. in the amount of $3.6 billion . In a ddition, in December 2016, Metropolitan Life Insurance Company distributed to MetLife, Inc. as a non-cash extraordinary dividend all of the issued and outstanding shares of common stock of each of NELICO and GALIC in the amount of $981 million and $1.2 billion , respectively, as calculated on a statutory basis. Under New York State Insurance Law, Metropolitan Life Insurance Company is permitted, without prior insurance regulatory clearance, to pay stockholder dividends to MetLife, Inc. in any calendar year based on either of two standards. Under one standard, Metropolitan Life Insurance Company is permitted, without prior insurance regulatory clearance, to pay dividends out of earned surplus (defined as positive unassigned funds (surplus) excluding 85% of the change in net unrealized capital gains or losses (less capital gains tax), for the immediately preceding calendar year), in an amount up to the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year, or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains), not to exceed 30% of surplus to policyholders as of the end of the immediately preceding calendar year. In addition, under this standard, Metropolitan Life Insurance Company may not, without prior insurance regulatory clearance, pay any dividends in any calendar year immediately following a calendar year for which its net gain from operations, excluding realized capital gains, was negative. Under the second standard, if dividends are paid out of other than earned surplus, Metropolitan Life Insurance Company may, without prior insurance regulatory clearance, pay an amount up to the lesser of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year, or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains). In addition, Metropolitan Life Insurance Company will be permitted to pay a dividend to MetLife, Inc. in excess of the amounts allowed under both standards only if it files notice of its intention to declare such a dividend and the amount thereof with the Superintendent and the Superintendent either approves the distribution of the dividend or does not disapprove the dividend within 30 days of its filing. Under New York State Insurance Law, the Superintendent has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders. There was no dividend paid to Metropolitan Life Insurance Company by its former insurance subsidiaries in 2016. See Note 3. Accumulated Other Comprehensive Income (Loss) Information regarding changes in the balances of each component of AOCI attributable to Metropolitan Life Insurance Company was as follows: 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 at December 31, 2014 $ 6,200 $ 1,073 $ (3 ) $ (2,236 ) $ 5,034 OCI before reclassifications (4,839 ) (19 ) (101 ) 113 (4,846 ) Deferred income tax benefit (expense) 1,715 6 30 (40 ) 1,711 AOCI before reclassifications, net of income tax 3,076 1,060 (74 ) (2,163 ) 1,899 Amounts reclassified from AOCI 405 578 — 229 1,212 Deferred income tax benefit (expense) (144 ) (202 ) — (80 ) (426 ) Amounts reclassified from AOCI, net of income tax 261 376 — 149 786 Balance at December 31, 2015 3,337 1,436 (74 ) (2,014 ) 2,685 OCI before reclassifications 792 (141 ) (11 ) (4 ) 636 Deferred income tax benefit (expense) (286 ) 49 3 (5 ) (239 ) AOCI before reclassifications, net of income tax 3,843 1,344 (82 ) (2,023 ) 3,082 Amounts reclassified from AOCI 71 177 — 191 439 Deferred income tax benefit (expense) (26 ) (62 ) — (60 ) (148 ) Amounts reclassified from AOCI, net of income tax 45 115 — 131 291 Dispositions (2) (456 ) — 23 30 (403 ) Deferred income tax benefit (expense) 160 — (8 ) (3 ) 149 Dispositions, net of income tax (296 ) — 15 27 (254 ) Balance at December 31, 2016 3,592 1,459 (67 ) (1,865 ) 3,119 OCI before reclassifications 3,977 122 26 (30 ) 4,095 Deferred income tax benefit (expense) (1,287 ) (43 ) (6 ) 11 (1,325 ) AOCI before reclassifications, net of income tax 6,282 1,538 (47 ) (1,884 ) 5,889 Amounts reclassified from AOCI 102 (970 ) — 159 (709 ) Deferred income tax benefit (expense) (33 ) 338 — (57 ) 248 Amounts reclassified from AOCI, net of income tax 69 (632 ) — 102 (461 ) Balance at December 31, 2017 $ 6,351 $ 906 $ (47 ) $ (1,782 ) $ 5,428 __________________ (1) See Note 8 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation. (2) See Note 3. Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Consolidated Statement of Operations Locations Years Ended December 31, 2017 2016 2015 (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ 12 $ 10 $ (208 ) Net investment gains (losses) Net unrealized investment gains (losses) 3 21 31 Net investment income Net unrealized investment gains (losses) (117 ) (102 ) (228 ) Net derivative gains (losses) Net unrealized investment gains (losses), before income tax (102 ) (71 ) (405 ) Income tax (expense) benefit 33 26 144 Net unrealized investment gains (losses), net of income tax (69 ) (45 ) (261 ) Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate swaps 24 57 83 Net derivative gains (losses) Interest rate swaps 16 12 11 Net investment income Interest rate forwards (11 ) (1 ) 4 Net derivative gains (losses) Interest rate forwards 2 3 2 Net investment income Foreign currency swaps 938 (251 ) (679 ) Net derivative gains (losses) Foreign currency swaps (1 ) (1 ) (1 ) Net investment income Credit forwards 1 3 1 Net derivative gains (losses) Credit forwards 1 1 1 Net investment income Gains (losses) on cash flow hedges, before income tax 970 (177 ) (578 ) Income tax (expense) benefit (338 ) 62 202 Gains (losses) on cash flow hedges, net of income tax 632 (115 ) (376 ) Defined benefit plans adjustment: (1) Amortization of net actuarial gains (losses) (179 ) (198 ) (233 ) Amortization of prior service (costs) credit 20 7 4 Amortization of defined benefit plan items, before income tax (159 ) (191 ) (229 ) Income tax (expense) benefit 57 60 80 Amortization of defined benefit plan items, net of income tax (102 ) (131 ) (149 ) Total reclassifications, net of income tax $ 461 $ (291 ) $ (786 ) __________________ (1) These AOCI components are included in the computation of net periodic benefit costs. See Note 14 . |
Other Expenses
Other Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Expenses | 13. Other Expenses Information on other expenses was as follows: Years Ended December 31, 2017 2016 2015 (In millions) General and administrative expenses $ 2,608 $ 2,598 $ 3,063 Pension, postretirement and postemployment benefit costs 167 251 241 Premium taxes, other taxes, and licenses & fees 273 367 358 Commissions and other variable expenses 1,801 2,366 2,214 Capitalization of DAC (61 ) (332 ) (482 ) Amortization of DAC and VOBA 241 441 742 Interest expense on debt 106 112 122 Total other expenses $ 5,135 $ 5,803 $ 6,258 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. Capitalization of DAC and Amortization of DAC and VOBA See Note 5 for additional information on DAC and VOBA including impacts of capitalization and amortization. See also Note 7 for a description of the DAC amortization impact associated with the closed block. Interest Expense on Debt See Note 11 for additional information on interest expense on debt. Affiliated Expenses Commissions and other variable expenses, capitalization of DAC and amortization of DAC and VOBA include the impact of affiliated reinsurance transactions. See Notes 6 , 11 and 18 for a discussion of affiliated expenses included in the table above. Income Tax See Note 15 for information on the charge related to income tax for the year ended December 31, 2015. Restructuring Charges In 2016, the Company completed a previous enterprise-wide strategic initiative. These restructuring charges are included in other expenses. As the expenses relate to an enterprise-wide initiative, they are reported in Corporate & Other. Information regarding restructuring charges was as follows: Years Ended December 31, 2016 2015 Severance Lease and Asset Impairment Total Severance Lease and Asset Impairment Total (In millions) Balance at January 1, $ 17 $ 4 $ 21 $ 31 $ 6 $ 37 Restructuring charges — 1 1 52 4 56 Cash payments (17 ) (4 ) (21 ) (66 ) (6 ) (72 ) Balance at December 31, $ — $ 1 $ 1 $ 17 $ 4 $ 21 Total restructuring charges incurred since inception of initiative $ 306 $ 47 $ 353 $ 306 $ 46 $ 352 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 14. Employee Benefit Plans Pension and Other Postretirement Benefit Plans The Company sponsors and administers various qualified and nonqualified defined benefit pension plans and other postretirement employee benefit plans covering employees who meet specified eligibility requirements. Pension benefits are provided utilizing either a traditional formula or cash balance formula. The traditional formula provides benefits that are primarily based upon years of credited service and either final average or career average earnings. The cash balance formula utilizes hypothetical or notional accounts which credit participants with benefits equal to a percentage of eligible pay, as well as interest credits, determined annually based upon the annual rate of interest on 30-year U.S. Treasury securities, for each account balance. The nonqualified pension plans provide supplemental benefits in excess of limits applicable to a qualified plan. Participating affiliates are allocated an equitable share of net expense related to the plans, proportionate to other expenses being allocated to these affiliates. The Company also provides certain postemployment benefits and certain postretirement medical and life insurance benefits for retired employees. Employees of MetLife who were hired prior to 2003 (or, in certain cases, rehired during or after 2003) and meet age and service criteria while working for the Company may become eligible for these other postretirement benefits, at various levels, in accordance with the applicable plans. Virtually all retirees, or their beneficiaries, contribute a portion of the total costs of postretirement medical benefits. Employees of MetLife hired after 2003 are not eligible for any employer subsidy for postretirement medical benefits. Participating affiliates are allocated a proportionate share of net expense and contributions related to the postemployment and other postretirement plans. Obligations and Funded Status December 31, 2017 2016 Pension Other Postretirement Benefits Pension Other Postretirement Benefits (In millions) Change in benefit obligations: Benefit obligations at January 1, $ 9,837 $ 1,742 $ 9,760 $ 1,905 Service costs 169 6 203 9 Interest costs 415 75 415 82 Plan participants’ contributions — 33 — 33 Net actuarial (gains) losses 618 (96 ) 298 (119 ) Divestitures, settlements and curtailments (2) 3 2 (270 ) (8 ) Change in benefits and other — — (11 ) (43 ) Benefits paid (563 ) (106 ) (558 ) (117 ) Effect of foreign currency translation — — — — Benefit obligations at December 31, 10,479 1,656 9,837 1,742 Change in plan assets: Estimated fair value of plan assets at January 1, 8,721 1,379 8,490 1,372 Actual return on plan assets 947 124 620 75 Divestitures (2) — — (155 ) — Plan participants’ contributions — 33 — 33 Employer contributions 266 (4 ) 324 16 Benefits paid (563 ) (106 ) (558 ) (117 ) Estimated fair value of plan assets at December 31, 9,371 1,426 8,721 1,379 Over (under) funded status at December 31, $ (1,108 ) $ (230 ) $ (1,116 ) $ (363 ) Amounts recognized on the consolidated balance sheets: Other assets $ 55 $ 160 $ — $ — Other liabilities (1,163 ) (390 ) (1,116 ) (363 ) Net amount recognized $ (1,108 ) $ (230 ) $ (1,116 ) $ (363 ) AOCI: Net actuarial (gains) losses $ 2,831 $ (55 ) $ 2,839 $ 93 Prior service costs (credit) (10 ) (26 ) (11 ) (48 ) AOCI, before income tax $ 2,821 $ (81 ) $ 2,828 $ 45 Accumulated benefit obligation $ 10,180 N/A $ 9,557 N/A __________________ (1) Includes nonqualified unfunded plans, for which the aggregate PBO was $1.2 billion at December 31, 2017 and $1.1 billion at December 31, 2016 . (2) Divestitures for the year ended December 31, 2016 include amounts related to the disposition of NELICO and GALIC. See Note 3 . Information for pension plans with PBOs in excess of plan assets and accumulated benefit obligations (“ABO”) in excess of plan assets was as follows at: December 31, 2017 2016 2017 2016 PBO Exceeds Estimated Fair Value ABO Exceeds Estimated Fair Value (In millions) Projected benefit obligations $ 1,163 $ 9,837 $ 1,163 $ 1,093 Accumulated benefit obligations $ 1,116 $ 9,557 $ 1,116 $ 1,046 Estimated fair value of plan assets $ — $ 8,721 $ — $ — Net Periodic Benefit Costs The components of net periodic benefit costs and other changes in plan assets and benefit obligations recognized in OCI were as follows: Years Ended December 31, 2017 2016 2015 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits (In millions) Net periodic benefit costs: Service costs $ 169 $ 6 $ 203 $ 9 $ 217 $ 15 Interest costs 415 75 415 82 404 88 Settlement and curtailment costs (1) 3 2 1 30 — — Expected return on plan assets (509 ) (72 ) (527 ) (74 ) (538 ) (80 ) Amortization of net actuarial (gains) losses 189 — 188 10 190 43 Amortization of prior service costs (credit) (1 ) (22 ) (1 ) (6 ) (1 ) (3 ) Allocated to affiliates (48 ) 1 (64 ) (9 ) (59 ) (18 ) Total net periodic benefit costs (credit) 218 (10 ) 215 42 213 45 Other changes in plan assets and benefit obligations recognized in OCI: Net actuarial (gains) losses 181 (148 ) 176 (121 ) 50 (156 ) Prior service costs (credit) — — (11 ) (40 ) — (7 ) Dispositions (2) — — (32 ) 2 — — Amortization of net actuarial (gains) losses (189 ) — (188 ) (10 ) (190 ) (43 ) Amortization of prior service (costs) credit 1 22 1 6 1 3 Total recognized in OCI (7 ) (126 ) (54 ) (163 ) (139 ) (203 ) Total recognized in net periodic benefit costs and OCI $ 211 $ (136 ) $ 161 $ (121 ) $ 74 $ (158 ) __________________ (1) The Company recognized curtailment charges in 2016 on certain postretirement benefit plans in connection with the U.S. Retail Advisor Force Divestiture See Note 18 . (2) See Note 3 . The estimated net actuarial (gains) losses and prior service costs (credit) for the defined benefit pension plans and other postretirement benefit plans that will be amortized from AOCI into net periodic benefit costs over the next year are $171 million and ($1) million , and ($6) million and ($19) million , respectively. Assumptions Assumptions used in determining benefit obligations were as follows: Pension Benefits Other Postretirement Benefits December 31, 2017 Weighted average discount rate 3.65% 3.70% Rate of compensation increase 2.25 % - 8.50% N/A December 31, 2016 Weighted average discount rate 4.30% 4.45% Rate of compensation increase 2.25 % - 8.50% N/A Assumptions used in determining net periodic benefit costs were as follows: Pension Benefits Other Postretirement Benefits Year Ended December 31, 2017 Weighted average discount rate 4.30% 4.45% Weighted average expected rate of return on plan assets 6.00% 5.36% Rate of compensation increase 2.25 % - 8.50% N/A Year Ended December 31, 2016 Weighted average discount rate 4.13% 4.37% Weighted average expected rate of return on plan assets 6.00% 5.53% Rate of compensation increase 2.25 % - 8.50% N/A Year Ended December 31, 2015 Weighted average discount rate 4.10% 4.10% Weighted average expected rate of return on plan assets 6.25% 5.70% Rate of compensation increase 2.25 % - 8.50% N/A The weighted average discount rate is determined annually based on the yield, measured on a yield to worst basis, of a hypothetical portfolio constructed of high quality debt instruments available on the valuation date, which would provide the necessary future cash flows to pay the aggregate PBO when due. The weighted average expected rate of return on plan assets is based on anticipated performance of the various asset sectors in which the plan invests, weighted by target allocation percentages. Anticipated future performance is based on long-term historical returns of the plan assets by sector, adjusted for the Company’s long-term expectations on the performance of the markets. While the precise expected rate of return derived using this approach will fluctuate from year to year, the Company’s policy is to hold this long-term assumption constant as long as it remains within reasonable tolerance from the derived rate. The weighted average expected rate of return on plan assets for use in that plan’s valuation in 2018 is currently anticipated to be 5.75% for pension benefits and 5.11% for other postretirement benefits. The assumed healthcare costs trend rates used in measuring the APBO and net periodic benefit costs were as follows: December 31, 2017 2016 Before Age 65 and Before Age 65 and Following year 5.6 % 6.6 % 6.8 % 13 % Ultimate rate to which cost increase is assumed to decline 4.0 % 4.3 % 4.0 % 4.3 % Year in which the ultimate trend rate is reached 2086 2098 2077 2092 Assumed healthcare costs trend rates may have a significant effect on the amounts reported for healthcare plans. A 1% change in assumed healthcare costs trend rates would have the following effects as of December 31, 2017 : One Percent Increase One Percent Decrease (In millions) Effect on total of service and interest costs components $ 9 $ (8 ) Effect of accumulated postretirement benefit obligations $ 186 $ (154 ) Plan Assets The Company provides MetLife employees with benefits under various Employee Retirement Income Security Act of 1974 (“ERISA”) benefit plans. These include qualified pension plans, postretirement medical plans and certain retiree life insurance coverage. The assets of the Company’s qualified pension plans are held in an insurance group annuity contract, and the vast majority of the assets of the postretirement medical plan and backing the retiree life coverage are held in a trust which largely utilizes insurance contracts to hold the assets. All of these contracts are issued by the Company, and the assets under the contracts are held in insurance separate accounts that have been established by the Company. The underlying assets of the separate accounts are principally comprised of cash and cash equivalents, short-term investments, fixed maturity and equity securities, derivatives, real estate, private equity investments and hedge fund investments. The insurance contract provider engages investment management firms (“Managers”) to serve as sub-advisors for the separate accounts based on the specific investment needs and requests identified by the plan fiduciary. These Managers have portfolio management discretion over the purchasing and selling of securities and other investment assets pursuant to the respective investment management agreements and guidelines established for each insurance separate account. The assets of the qualified pension plans and postretirement medical plans (the “Invested Plans”) are well diversified across multiple asset categories and across a number of different Managers, with the intent of minimizing risk concentrations within any given asset category or with any of the given Managers. The Invested Plans, other than those held in participant directed investment accounts, are managed in accordance with investment policies consistent with the longer-term nature of related benefit obligations and within prudent risk parameters. Specifically, investment policies are oriented toward (i) maximizing the Invested Plan’s funded status; (ii) minimizing the volatility of the Invested Plan’s funded status; (iii) generating asset returns that exceed liability increases; and (iv) targeting rates of return in excess of a custom benchmark and industry standards over appropriate reference time periods. These goals are expected to be met through identifying appropriate and diversified asset classes and allocations, ensuring adequate liquidity to pay benefits and expenses when due and controlling the costs of administering and managing the Invested Plan’s investments. Independent investment consultants are periodically used to evaluate the investment risk of the Invested Plan’s assets relative to liabilities, analyze the economic and portfolio impact of various asset allocations and management strategies and recommend asset allocations. Derivative contracts may be used to reduce investment risk, to manage duration and to replicate the risk/return profile of an asset or asset class. Derivatives may not be used to leverage a portfolio in any manner, such as to magnify exposure to an asset, asset class, interest rates or any other financial variable. Derivatives are also prohibited for use in creating exposures to securities, currencies, indices or any other financial variable that is otherwise restricted. The table below summarizes the actual weighted average allocation of the estimated fair value of total plan assets by asset class at December 31 for the years indicated and the approved target allocation by major asset class at December 31, 2017 for the Invested Plans: December 31, 2017 2016 Pension Benefits Other Postretirement Pension Benefits Other Postretirement Benefits (1) Target Actual Target Actual Actual Allocation Actual Allocation Asset Class Fixed maturity securities 82 % 82 % 85 % 84 % 81 % 76 % Equity securities (2) 10 % 10 % 15 % 15 % 11 % 24 % Alternative securities (3) 8 % 8 % — % 1 % 8 % — % Total assets 100 % 100 % 100 % 100 % __________________ (1) Other postretirement benefits do not reflect postretirement life insurance plan assets invested in fixed maturity securities. (2) Equity securities percentage includes derivative assets. (3) Alternative securities primarily include hedge, private equity and real estate funds. Estimated Fair Value The pension and other postretirement benefit plan assets are categorized into a three-level fair value hierarchy, as described in Note 10 , based upon the significant input with the lowest level in its valuation. The Level 2 asset category includes certain separate accounts that are primarily invested in liquid and readily marketable securities. The estimated fair value of such separate accounts is based upon reported NAV provided by fund managers and this value represents the amount at which transfers into and out of the respective separate account are effected. These separate accounts provide reasonable levels of price transparency and can be corroborated through observable market data. Directly held investments are primarily invested in U.S. and foreign government and corporate securities. The Level 3 asset category includes separate accounts that are invested in assets that provide little or no price transparency due to the infrequency with which the underlying assets trade and generally require additional time to liquidate in an orderly manner. Accordingly, the values for separate accounts invested in these alternative asset classes are based on inputs that cannot be readily derived from or corroborated by observable market data. The pension and other postretirement plan assets measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are summarized as follows: December 31, 2017 Pension Benefits Other Postretirement Benefits Fair Value Hierarchy Fair Value Hierarchy Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities: Corporate $ — $ 3,726 $ 1 $ 3,727 $ 20 $ 362 $ — $ 382 U.S. government bonds 1,256 528 — 1,784 269 6 — 275 Foreign bonds — 937 — 937 — 94 — 94 Federal agencies 35 134 — 169 — 17 — 17 Municipals — 335 — 335 — 28 — 28 Short-term investments 135 192 — 327 8 391 — 399 Other (1) 7 383 9 399 — 68 — 68 Total fixed maturity securities 1,433 6,235 10 7,678 297 966 — 1,263 Equity securities: Common stock - domestic 480 91 — 571 80 — — 80 Common stock - foreign 317 — 3 320 73 — — 73 Total equity securities 797 91 3 891 153 — — 153 Other investments — 144 622 766 — 9 — 9 Derivative assets 33 2 1 36 1 — — 1 Total assets $ 2,263 $ 6,472 $ 636 $ 9,371 $ 451 $ 975 $ — $ 1,426 December 31, 2016 Pension Benefits Other Postretirement Benefits Fair Value Hierarchy Fair Value Hierarchy Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities: Corporate $ — $ 3,406 $ — $ 3,406 $ 20 $ 305 $ — $ 325 U.S. government bonds 1,655 4 — 1,659 210 1 — 211 Foreign bonds — 775 — 775 — 72 — 72 Federal agencies — 196 — 196 — 28 — 28 Municipals — 313 — 313 — 23 — 23 Short-term investments 118 212 — 330 13 416 — 429 Other (1) — 362 9 371 — 55 — 55 Total fixed maturity securities 1,773 5,268 9 7,050 243 900 — 1,143 Equity securities: Common stock - domestic 474 — — 474 113 — — 113 Common stock - foreign 380 — — 380 122 — — 122 Total equity securities 854 — — 854 235 — — 235 Other investments — 105 634 739 — — — — Derivative assets 16 (2 ) 64 78 1 — — 1 Total assets $ 2,643 $ 5,371 $ 707 $ 8,721 $ 479 $ 900 $ — $ 1,379 __________________ (1) Other primarily includes money market securities, mortgage-backed securities, collateralized mortgage obligations and ABS. A rollforward of all pension and other postretirement benefit plan assets measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs was as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Pension Benefits Fixed Maturity Securities Equity Corporate Foreign Other (1) Common Other Derivative (In millions) Balance, January 1, 2016 $ 78 $ 17 $ 7 — $ 722 $ 75 Realized gains (losses) 3 — — — (1 ) 3 Unrealized gains (losses) 3 (4 ) 1 — 32 (18 ) Purchases, sales, issuances and settlements, net (22 ) (3 ) — — (119 ) 6 Transfers into and/or out of Level 3 (62 ) (10 ) 1 — — (2 ) Balance, December 31, 2016 $ — $ — $ 9 — $ 634 $ 64 Realized gains (losses) (10 ) — — 2 — (22 ) Unrealized gains (losses) 10 — — — (12 ) 6 Purchases, sales, issuances and settlements, net — — 7 (4 ) — (47 ) Transfers into and/or out of Level 3 1 — (7 ) 5 — — Balance, December 31, 2017 $ 1 $ — $ 9 3 $ 622 $ 1 __________________ (1) Other includes ABS and collateralized mortgage obligations. For the years ended December 31, 2017 and 2016 , there were no other postretirement benefit plan assets measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs. Expected Future Contributions and Benefit Payments It is the Company’s practice to make contributions to the qualified pension plan to comply with minimum funding requirements of ERISA. In accordance with such practice, no contributions are required for 2018 . The Company expects to make discretionary contributions to the qualified pension plan of $150 million in 2018 . For information on employer contributions, see “— Obligations and Funded Status.” Benefit payments due under the nonqualified pension plans are primarily funded from the Company’s general assets as they become due under the provision of the plans, therefore benefit payments equal employer contributions. The Company expects to make contributions of $70 million to fund the benefit payments in 2018 . Postretirement benefits are either: (i) not vested under law; (ii) a non-funded obligation of the Company; or (iii) both. Current regulations do not require funding for these benefits. The Company uses its general assets, net of participant’s contributions, to pay postretirement medical claims as they come due. As permitted under the terms of the governing trust document, the Company may be reimbursed from plan assets for postretirement medical claims paid from their general assets. The Company expects to make contributions of $50 million towards benefit obligations in 2018 to pay postretirement medical claims. Gross benefit payments for the next 10 years, which reflect expected future service where appropriate, are expected to be as follows: Pension Benefits Other Postretirement Benefits (In millions) 2018 $ 562 $ 85 2019 $ 571 $ 88 2020 $ 587 $ 88 2021 $ 591 $ 87 2022 $ 606 $ 88 2023-2027 $ 3,227 $ 443 Additional Information As previously discussed, most of the assets of the pension benefit plans are held in a group annuity contract issued by the Company while some of the assets of the postretirement benefit plans are held in a trust which largely utilizes life insurance contracts issued by the Company to hold such assets. Total revenues from these contracts recognized on the consolidated statements of operations were $56 million , $57 million and $55 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, and included policy charges and net investment income from investments backing the contracts and administrative fees. Total investment income (loss), including realized and unrealized gains (losses), credited to the account balances was $1.1 billion , $660 million and ($130) million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The terms of these contracts are consistent in all material respects with those the Company offers to unaffiliated parties that are similarly situated. Defined Contribution Plans The Company sponsors defined contribution plans for substantially all MetLife employees under which a portion of employee contributions are matched. The Company contributed $65 million , $73 million and $72 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 15. 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 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 (“DRD”) for dividends distributed by a controlled foreign corporation. To transition to that new system, U.S. Tax Reform imposes 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. The incremental financial statement impact related to U.S. Tax Reform was as follows: U.S. Tax Reform (In millions) Income (loss) before provision for income tax $ (66 ) Provision for income tax expense (benefit): Deferred tax revaluation (1,112 ) Total provision for income tax expense (benefit) (1,112 ) Income (loss), net of income tax 1,046 Income tax (expense) benefit related to items of other comprehensive income (loss) 133 Increase to net equity from U.S. Tax Reform $ 1,179 In accordance with SAB 118 issued by the U.S. Securities and Exchange Commission (“ SEC”) in December 2017, the Company has recorded provisional amounts for certain items for which the income tax accounting is not complete. For these items, the Company has 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. The following items are considered provisional estimates due to complexities and ambiguities in U.S. Tax Reform which resulted in incomplete accounting for the tax effects of these provisions. Further guidance, either legislative or interpretive, and analysis will be required to complete the accounting for these items: • Deemed Repatriation Transition Tax - The Company has recorded a $1 million charge for this item. • Global Intangible Low-Tax Income - U.S. Tax Reform imposes a minimum tax on global intangible low-tax income, which is generally the excess income of foreign subsidiaries over a 10% rate of routine return on tangible business assets. The Company has not yet formally adopted an accounting policy for this item. For the year ended December 31, 2017 , the Company did not record a tax charge and tax incurred in future periods related to global intangible low-tax income will be recorded in the period incurred. • Compensation and Fringe Benefits - U.S. Tax Reform limits certain employer deductions for fringe benefit and related expenses and also repeals the exception allowing the deduction of certain performance-based compensation paid to certain senior executives. The Company has recorded an $8 million tax charge, included within the deferred tax revaluation. • Alternative Minimum Tax Credits - U.S. Tax Reform eliminates the corporate alternative minimum tax and allows for minimum tax credit carryforwards to be used to offset future regular tax or to be refunded over the next few years. However, pursuant to the requirements of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, refund payments issued for corporations claiming refundable prior year alternative minimum tax credits are subject to a sequestration rate of 6.6% . The application of this fee to refunds in future years is subject to further guidance. Additionally, the sequestration reduction rate in effect at the time is subject to uncertainty. The Company has recorded a $7 million tax charge included within the deferred tax revaluation. • Tax Credit Partnerships - Certain tax credit partnership investments derive returns in part from income tax credits. The Company recognizes changes in tax attributes at the partnership level when reported by the investee in its financial information. U.S. Tax Reform may impact the tax attributes of tax credit partnerships. However, investee financial information is not yet available to enable the Company to determine the impacts of U.S. Tax Reform. Accordingly, the Company has applied prior law to these equity method investments in accordance with SAB 118. During the one year measurement period under SAB 118, the impacts of U.S. Tax Reform will be recognized as the investee financial information is made available. The provision for income tax was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Current: Federal $ 1,511 $ 675 $ 1,384 State and local 4 5 20 Foreign 14 40 36 Subtotal 1,529 720 1,440 Deferred: Federal (2,099 ) (539 ) 296 Foreign 9 18 27 Subtotal (2,090 ) (521 ) 323 Provision for income tax expense (benefit) $ (561 ) $ 199 $ 1,763 The Company’s income (loss) before income tax expense (benefit) from domestic and foreign operations was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Income (loss): Domestic $ 4,045 $ 2,379 $ 4,409 Foreign (1,079 ) (438 ) 72 Total $ 2,966 $ 1,941 $ 4,481 The reconciliation of the income tax provision at the U.S. statutory rate to the provision for income tax as reported was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Tax provision at U.S. statutory rate $ 1,039 $ 679 $ 1,569 Tax effect of: Dividend received deduction (65 ) (79 ) (82 ) Tax-exempt income (49 ) (38 ) (24 ) Prior year tax (1) (29 ) (33 ) 558 Low income housing tax credits (278 ) (270 ) (221 ) Other tax credits (101 ) (98 ) (68 ) Foreign tax rate differential — 1 (4 ) Change in valuation allowance — (1 ) (1 ) U.S. Tax Reform impact (2) (1,089 ) — — Other, net 11 38 36 Provision for income tax expense (benefit) $ (561 ) $ 199 $ 1,763 __________________ (1) As discussed further below, for the year ended December 31, 2015, prior year tax includes a $557 million non-cash charge related to an uncertain tax position. (2) U.S. Tax Reform impact of ($1.1) billion excludes ($23) million of tax provision at the U.S. statutory rate for a total tax reform benefit of ($1.1) billion . Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following at: December 31, 2017 2016 (In millions) Deferred income tax assets: Policyholder liabilities and receivables $ 1,361 $ 292 Net operating loss carryforwards 23 27 Employee benefits 595 828 Tax credit carryforwards 1,127 947 Litigation-related and government mandated 117 212 Other 437 460 Total gross deferred income tax assets 3,660 2,766 Less: Valuation allowance 20 20 Total net deferred income tax assets 3,640 2,746 Deferred income tax liabilities: Investments, including derivatives 1,989 1,234 Intangibles 32 53 DAC 673 1,150 Net unrealized investment gains 2,313 2,693 Other 2 1 Total deferred income tax liabilities 5,009 5,131 Net deferred income tax asset (liability) $ (1,369 ) $ (2,385 ) The Company has not recorded an additional valuation allowance benefit or charge related to certain state net operating loss carryforwards for the year ended December 31, 2017 . The valuation allowance reflects management’s assessment, based on available information, that it is more likely than not that the deferred income tax asset for certain state net operating loss carryforwards will not be realized. The tax benefit will be recognized when management believes that it is more likely than not that these deferred income tax assets are realizable. The following table sets forth the domestic and state net operating loss carryforwards for tax purposes at December 31, 2017 . Net Operating Loss Carryforwards Domestic State (In millions) Expiration: 2018-2022 $ — $ 49 2023-2027 — 64 2028-2032 — 13 2033-2037 12 2 Indefinite — — $ 12 $ 128 The following table sets forth the general business credits, foreign tax credits, and other credit carryforwards for tax purposes at December 31, 2017 . Tax Credit Carryforwards General Business Credits Foreign Tax Credits Other (In millions) Expiration: 2018-2022 $ — $ 10 $ — 2023-2027 — 88 — 2028-2032 232 — — 2033-2037 832 — — Indefinite — — 194 $ 1,064 $ 98 $ 194 The Company participates in a tax sharing agreement with MetLife, Inc., as described in Note 1 . Pursuant to this tax sharing agreement, the amounts due from affiliates included $203 million and $60 million for the years ended December 31, 2017 and 2016 , respectively. The Company files income tax returns with the U.S. federal government and various state and local jurisdictions, as well as foreign jurisdictions. The Company is under continuous examination by the Internal Revenue Service (“IRS”) and other tax authorities in jurisdictions in which the Company has significant business operations. The income tax years under examination vary by jurisdiction and subsidiary. The Company is no longer subject to U.S. federal, state, or local income tax examinations for years prior to 2007, except for i) 2000 through 2002 where the IRS disallowance relates to certain tax credits claimed, for which in April 2015, the Company received a Statutory Notice of Deficiency (the “Notice”) and paid the tax thereon in September 2015 (see note (1) below); and ii) 2003 through 2006, where the IRS disallowance relates predominantly to certain tax credits claimed and the Company is engaged with IRS Appeals. Management believes it has established adequate tax liabilities and final resolution for the years 2000 through 2006 is not expected to have a material impact on the Company’s consolidated financial statements. The IRS audit cycle for the years 2007-2009, which began in December of 2015, is scheduled to conclude in 2018. The Company’s liability for unrecognized tax benefits may increase or decrease in the next 12 months. For example, federal tax legislation could impact unrecognized tax benefits. A reasonable estimate of the increase or decrease cannot be made at this time. However, the Company continues to believe that the ultimate resolution of the pending issues will not result in a material change to its consolidated financial statements, although the resolution of income tax matters could impact the Company’s effective tax rate for a particular future period. A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Balance at January 1, $ 931 $ 1,075 $ 546 Additions for tax positions of prior years (1) — 7 558 Reductions for tax positions of prior years (2) (38 ) (109 ) — Additions for tax positions of current year 4 6 4 Reductions for tax positions of current year (1 ) — — Settlements with tax authorities (6 ) (48 ) (33 ) Balance at December 31, $ 890 $ 931 $ 1,075 Unrecognized tax benefits that, if recognized would impact the effective rate $ 890 $ 931 $ 1,060 __________________ (1) The significant increase in 2015 is related to a non-cash charge the Company recorded to net income of $792 million , net of tax. The charge was related to an uncertain tax position and was comprised of a $557 million charge included in provision for income tax expense (benefit) and a $362 million ( $235 million , net of tax) charge included in other expenses. This charge is the result of the Company’s consideration of certain decisions of the U.S. Court of Appeals for the Second Circuit upholding the disallowance of foreign tax credits claimed by other corporate entities not affiliated with the Company. The Company’s action relates to tax years from 2000 to 2009, during which MLIC held non-U.S. investments in support of its life insurance business through a United Kingdom investment subsidiary that was structured as a joint venture at the time. (2) Included for 2016 is the impact of the dividend by Metropolitan Life Insurance Company of all of the issued and outstanding shares of common stock of each of NELICO and GALIC to MetLife, Inc. The Company classifies interest accrued related to unrecognized tax benefits in interest expense, included within other expenses, while penalties are included in income tax expense. Interest was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Interest recognized on the consolidated statements of operations (1) $ 47 $ (33 ) $ 382 December 31, 2017 2016 (In millions) Interest included in other liabilities on the consolidated balance sheets $ 653 $ 606 __________________ (1) The significant increase in 2015 is related to the non-cash charge discussed above. The Company had no penalties for the years ended December 31, 2017 , 2016 and 2015 . There has been no change in the Company’s position on the disallowance of its foreign tax credits by the IRS. The Company continues to contest the disallowance of these foreign tax credits by the IRS as management believes the facts strongly support the Company’s position. The Company will defend its position vigorously and does not expect any additional charges related to this matter. Also related to the aforementioned foreign tax credit matter, on April 9, 2015, the IRS issued the Notice to the Company. The Notice asserted that the Company owes additional taxes and interest for 2000 through 2002 primarily due to the disallowance of foreign tax credits. The transactions that are the subject of the Notice continue through 2009, and it is likely that the IRS will seek to challenge these later periods. On September 18, 2015, the Company paid the assessed tax and interest of $444 million for 2000 through 2002. On November 19, 2015, $9 million of this amount was refunded from the IRS as an overpayment of interest. On May 30, 2017, the Company filed a claim for refund with the IRS for the remaining tax and interest. Prior to U.S. Tax Reform, the DRD related to variable life insurance and annuity contracts was generally based on a company specific percentage referred to as the company’s share. The calculation of this amount was subject to significant dispute between taxpayers and the IRS. U.S. Tax Reform eliminated this dispute by fixing the calculation to a specific percentage subsequent to 2017. For the years ended December 31, 2017 , 2016 and 2015 , the Company recognized an income tax benefit of $60 million , $75 million and $76 million , respectively, related to the separate account DRD. The 2017 benefit included an expense of $1 million related to a true-up of the 2016 tax return. |
Contingencies, Commitments and
Contingencies, Commitments and Guarantees | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies, Commitments and Guarantees | 16. 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 December 31, 2017 . 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 December 31, 2017 , the Company estimates the aggregate range of reasonably possible losses in excess of amounts accrued for these matters to be $0 to $325 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 Metropolitan Life Insurance Company 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. Metropolitan Life Insurance Company has never engaged in the business of manufacturing, producing, distributing or selling asbestos or asbestos-containing products nor has Metropolitan Life Insurance Company 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 Metropolitan Life Insurance Company’s employees during the period from the 1920’s through approximately the 1950’s and allege that Metropolitan Life Insurance Company 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. Metropolitan Life Insurance Company 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 Metropolitan Life Insurance Company. Metropolitan Life Insurance Company 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 Metropolitan Life Insurance Company have included negligence, intentional tort and conspiracy concerning the health risks associated with asbestos. Metropolitan Life Insurance Company’s defenses (beyond denial of certain factual allegations) include that: (i) Metropolitan Life Insurance Company 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 Metropolitan Life Insurance Company; (iii) Metropolitan Life Insurance Company’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 Metropolitan Life Insurance Company, while other trial courts have denied Metropolitan Life Insurance Company’s motions. There can be no assurance that Metropolitan Life Insurance Company will receive favorable decisions on motions in the future. While most cases brought to date have settled, Metropolitan Life Insurance Company intends to continue to defend aggressively against claims based on asbestos exposure, including defending claims at trials. The approximate total number of asbestos personal injury claims pending against Metropolitan Life Insurance Company as of the dates indicated, the approximate number of new claims during the years ended on those dates and the approximate total settlement payments made to resolve asbestos personal injury claims at or during those years are set forth in the following table: December 31, 2017 2016 2015 (In millions, except number of claims) Asbestos personal injury claims at year end 62,930 67,223 67,787 Number of new claims during the year 3,514 4,146 3,856 Settlement payments during the year (1) $ 48.6 $ 50.2 $ 56.1 __________________ (1) Settlement payments represent payments made by Metropolitan Life Insurance Company during the year in connection with settlements made in that year and in prior years. Amounts do not include Metropolitan Life Insurance Company’s attorneys’ fees and expenses. The number of asbestos cases that may be brought, the aggregate amount of any liability that Metropolitan Life Insurance Company 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 Metropolitan Life Insurance Company 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 Metropolitan Life Insurance Company 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. Metropolitan Life Insurance Company’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 Metropolitan Life Insurance Company, including claims settled but not yet paid; (ii) the probable and reasonably estimable liability for asbestos claims not yet asserted against Metropolitan Life Insurance Company, but which Metropolitan Life Insurance Company believes are reasonably probable of assertion; and (iii) the legal defense costs associated with the foregoing claims. Significant assumptions underlying Metropolitan Life Insurance Company’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. Metropolitan Life Insurance Company 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, Metropolitan Life Insurance Company has updated its liability analysis for asbestos-related claims through December 31, 2017 . Metropolitan Life Insurance Company increased its recorded liability for asbestos-related claims to $551 million at December 31, 2017 . 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”). 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 Metropolitan Life Insurance Company 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 Metropolitan Life Insurance Company (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, Metropolitan Life Insurance Company and the third party executed an Administrative Order on Consent under which Metropolitan Life Insurance Company 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 Metropolitan Life Insurance Company 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 Metropolitan Life Insurance Company. 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 Alleging that MetLife, Inc., Metropolitan Life Insurance Company , 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 demutualization 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 Metropolitan Life Insurance Company is a defendant in a lawsuit related to its use of retained asset accounts, known as TCAs, 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 Metropolitan Life Insurance Company established a TCA, to pay death benefits under an ERISA plan. The action alleges that Metropolitan Life Insurance Company’s use of the TCA as the settlement option for life insurance benefits under some group life insurance policies violates Metropolitan Life Insurance Company’s fiduciary duties under ERISA. As damages, plaintiff seeks disgorgement of profits that Metropolitan Life Insurance Company 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 Metropolitan Life Insurance Company’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. Inquiries into Pension Benefits The Company informed its primary state regulator, the New York State 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 February 13, 2018, the Company announced that in connection with a review of practices and procedures used to estimate reserves related to certain 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 . The Company is exposed to regulatory investigations, and could be exposed to additional legal actions. 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. 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 Metropolitan Life Insurance Company’s Canadian operations, filed a lawsuit in Toronto, seeking a declaration that Metropolitan Life Insurance Company remains liable for “market conduct claims” related to certain individual life insurance policies sold by Metropolitan Life Insurance Company 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 Metropolitan Life Insurance Company’s motion for summary judgment. Both parties agreed to consider the indemnity claim through arbitration. In September 2010, Sun Life notified Metropolitan Life Insurance Company that a purported class action lawsuit was filed against Sun Life in Toronto alleging sales practices claims regarding the policies sold by Metropolitan Life Insurance Company and transferred to Sun Life. On August 30, 2011, Sun Life notified Metropolitan Life Insurance Company 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 Metropolitan Life Insurance Company and transferred to Sun Life. Sun Life contends that Metropolitan Life Insurance Company 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. 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 Metropolitan Life Insurance Company to public entities in California between April 8, 2011 and April 8, 2015. Plaintiff alleges that Metropolitan Life Insurance Company 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 Metropolitan Life Insurance Company in life insurance policy and/or premium loan balances within the last four years. Plaintiffs allege that Metropolitan Life Insurance Company 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. Plaintiffs assert causes of action for declaratory relief, violation of California’s Unfair Competition Law and Usury Law, and unjust enrichment. Plaintiffs seek declaratory and injunctive relief, restitution of interest, and damages in an unspecified amount. On April 12, 2016, the court granted Metropolitan Life Insurance Company’s motion to dismiss. Plaintiffs have appealed this ruling. Lau v. Metropolitan Life Insurance Company (S.D.N.Y. filed, December 3, 2015) This putative class action lawsuit was filed by a single defined contribution plan participant on behalf of all ERISA plans whose assets were invested in Metropolitan Life Insurance Company’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 Metropolitan Life Insurance Company 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 have settled 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 Metropolitan Life Insurance Company’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 Metropolitan Life Insurance Company’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 Metropolitan Life Insurance Company’s motion, dismissing the action with prejudice. Plaintiff appealed this ruling to the United States Court of Appeals for 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. 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 Metropolitan Life Insurance Company 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. Metropolitan Life Insurance Company 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 Metropolitan Life Insurance Company 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. 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, investor 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. Insolvency Assessments Most of the jurisdictions in which the Company is admitted to transact business require insurers doing business within the jurisdiction to participate in guaranty associations, which are organized to pay contractual benefits owed pursuant to insurance policies issued by impaired, insolvent or failed insurers. These associations levy assessments, up to prescribed limits, on all member insurers in a particular state on the basis of the proportionate share of the premiums written by member insurers in the lines of business in which the impaired, insolvent or failed insurer engaged. Some states permit member insurers to recover assessments paid through full or partial premium tax offsets. Assets and liabilities held for insolvency assessments were as follows: December 31, 2017 2016 (In millions) Other Assets: Premium tax offset for future discounted and undiscounted assessments $ 51 $ 24 Premium tax offsets currently available for paid assessments 49 32 Total $ 100 $ 56 Other Liabilities: Insolvency assessments $ 66 $ 37 Commitments Leases The Company, as lessee, has entered into various lease and sublease agreements for office space, information technology, aircrafts and other equipment. Future minimum gross rental payments relating to these lease arrangements are as follows: Amount (In millions) 2018 $ 144 2019 130 2020 134 2021 132 2022 130 Thereafter 673 Total $ 1,343 In 2017, the Company assigned certain leases to an affiliate, effective January 1, 2018. The future minimum gross rental payments associated with those leases have been omitted from the above table. The Company, as assignor, remains liable under the leases to the extent that the affiliate, as assignee, cannot meet any obligations. Total minimum rental payments to be received in the future under non-cancelable subleases were $546 million as of December 31, 2017 . Operating lease expense was $187 million , $204 million , and $191 million for the years ended December 31, 2017 , 2016 , and 2015 , respectively. Mortgage Loan Commitments The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $3.3 billion and $3.9 billion at December 31, 2017 and 2016 , respectively. Commitments to Fund Partnership Investments, Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments The Company commits to fund partnership investments and to lend funds under bank credit facilities, bridge loans and private corporate bond investments. The amounts of these unfunded commitments were $3.9 billion and $4.2 billion at December 31, 2017 and 2016 , respectively. Guarantees In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation ranging from less than $1 mi |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | 17. Quarterly Results of Operations (Unaudited) The unaudited quarterly results of operations for 2017 and 2016 are summarized in the table below: Three Months Ended March 31, June 30, September 30, December 31, As Previously Reported Revisions (1) As Revised As Previously Reported Revisions (1) As Revised As Previously Reported Revisions (1) As Revised As Previously Reported Revisions (1) As Revised (In millions) 2017 Total revenues $ 8,645 $ — $ 8,645 $ 9,342 $ — $ 9,342 $ 10,286 $ — $ 10,286 $ 8,952 $ — $ 8,952 Total expenses $ 7,972 $ 6 $ 7,978 $ 8,528 $ 6 $ 8,534 $ 9,356 $ 55 $ 9,411 $ 8,336 $ — $ 8,336 Net income (loss) $ 551 $ (4 ) $ 547 $ 648 $ (4 ) $ 644 $ 743 $ (35 ) $ 708 $ 1,628 $ — $ 1,628 Less: Net income (loss) attributable to noncontrolling interests $ 1 $ — $ 1 $ 2 $ — $ 2 $ 5 $ — $ 5 $ (6 ) $ — $ (6 ) Net income (loss) attributable to Metropolitan Life Insurance Company $ 550 $ (4 ) $ 546 $ 646 $ (4 ) $ 642 $ 738 $ (35 ) $ 703 $ 1,634 $ — $ 1,634 2016 Total revenues $ 8,794 $ — $ 8,794 $ 9,082 $ — $ 9,082 $ 9,876 $ — $ 9,876 $ 8,738 $ — $ 8,738 Total expenses $ 8,196 $ 9 $ 8,205 $ 8,749 $ 4 $ 8,753 $ 9,123 $ 3 $ 9,126 $ 8,459 $ 6 $ 8,465 Net income (loss) $ 496 $ (6 ) $ 490 $ 326 $ (3 ) $ 323 $ 630 $ (2 ) $ 628 $ 304 $ (3 ) $ 301 Less: Net income (loss) attributable to noncontrolling interests $ — $ — $ — $ (2 ) $ — $ (2 ) $ (7 ) $ — $ (7 ) $ 1 $ — $ 1 Net income (loss) attributable to Metropolitan Life Insurance Company $ 496 $ (6 ) $ 490 $ 328 $ (3 ) $ 325 $ 637 $ (2 ) $ 635 $ 303 $ (3 ) $ 300 __________________ (1) See Note 1 for information on prior period revisions. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 18. Related Party Transactions Service Agreements The Company has entered into various agreements with affiliates for services necessary to conduct its activities. Typical services provided under these agreements include personnel, policy administrative functions and distribution services. For certain agreements, charges are based on various performance measures or activity-based costing. The bases for such charges are modified and adjusted by management when necessary or appropriate to reflect fairly and equitably the actual cost incurred by the Company and/or affiliate. Expenses and fees incurred with affiliates related to these agreements, recorded in other expenses, were $2.2 billion , $2.1 billion and $2.1 billion for the years ended December 31, 2017 , 2016 and 2015 , respectively. Revenues received from affiliates related to these agreements, recorded in universal life and investment-type product policy fees, were $93 million , $138 million and $135 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Revenues received from affiliates related to these agreements, recorded in other revenues, were $141 million , $113 million and $151 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company also entered into agreements with affiliates to provide additional services necessary to conduct the affiliates’ activities. Typical services provided under these agreements include management, policy administrative functions, investment advice and distribution services. Expenses incurred by the Company related to these agreements, included in other expenses, were $1.4 billion for the year ended December 31, 2017 and $1.5 billion for both of the years ended December 31, 2016 , and 2015 , and were reimbursed to the Company by these affiliates. The Company had net payables to affiliates, related to the items discussed above, of $205 million and $165 million at December 31, 2017 and 2016 , respectively. See Notes 6 , 8 , 11 , 12 and 14 for additional information on related party transactions. Sales Distribution Services In July 2016, MetLife, Inc. completed the U.S. Retail Advisor Force Divestiture. MassMutual assumed all of the liabilities related to such assets and that arise or occur after the closing of the sale . |
Consolidated Summary of Investm
Consolidated Summary of Investments - Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Consolidated Summary of Investments - Other Than Investments in Related Parties [Abstract] | |
Consolidated Summary of Investments - Other Than Investments in Related Parties | Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Schedule I Consolidated Summary of Investments — Other Than Investments in Related Parties December 31, 2017 (In millions) Types of Investments Cost or Estimated Amount at Fixed maturity securities: Bonds: U.S. government and agency securities $ 35,021 $ 38,545 $ 38,545 Public utilities 6,721 7,626 7,626 State and political subdivision securities 6,310 7,551 7,551 Foreign government securities 3,887 4,502 4,502 All other corporate bonds 70,159 75,178 75,178 Total bonds 122,098 133,402 133,402 Mortgage-backed and asset-backed securities 34,933 35,988 35,988 Redeemable preferred stock 778 882 882 Total fixed maturity securities 157,809 170,272 170,272 Equity securities: Common stock: Industrial, miscellaneous and all other 1,128 1,181 1,181 Public utilities 62 70 70 Non-redeemable preferred stock 389 407 407 Total equity securities 1,579 1,658 1,658 Mortgage loans 58,459 58,459 Policy loans 6,006 6,006 Real estate and real estate joint ventures 6,612 6,612 Real estate acquired in satisfaction of debt 44 44 Other limited partnership interests 3,991 3,991 Short-term investments 3,155 3,155 Other invested assets 14,911 14,911 Total investments $ 252,566 $ 265,108 ______________ (1) Cost or amortized cost for fixed maturity securities and mortgage loans represents original cost reduced by repayments, valuation allowances and impairments from other-than-temporary declines in estimated fair value that are charged to earnings and adjusted for amortization of premiums or accretion of discounts; for equity securities, cost represents original cost reduced by impairments from other-than-temporary declines in estimated fair value; for real estate, cost represents original cost reduced by impairments and depreciation; for real estate joint ventures and other limited partnership interests, cost represents original cost reduced for impairments or original cost adjusted for equity in earnings and distributions. |
Consolidated Supplementary Insu
Consolidated Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2017 | |
Supplementary Insurance Information [Abstract] | |
Consolidated Supplementary Insurance Information | Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Schedule III Consolidated Supplementary Insurance Information December 31, 2017 , 2016 and 2015 (In millions) Segment DAC and VOBA Future Policy Benefits, Policyholder Account Balances Policyholder Dividends Payable Unearned Premiums (1), (2) Unearned Revenue (1) 2017 U.S. $ 413 $ 61,665 $ 69,559 $ — $ 165 $ 23 MetLife Holdings 3,930 66,753 24,380 499 162 179 Corporate & Other 5 294 — — — — Total $ 4,348 $ 128,712 $ 93,939 $ 499 $ 327 $ 202 2016 U.S. $ 421 $ 58,234 $ 66,643 $ — $ 133 $ 30 MetLife Holdings 4,317 65,982 25,823 510 167 182 Corporate & Other 5 337 — — — — Total $ 4,743 $ 124,553 $ 92,466 $ 510 $ 300 $ 212 2015 U.S. $ 418 $ 56,429 $ 63,716 $ — $ 136 $ 33 MetLife Holdings 5,000 70,276 29,827 621 171 201 Corporate & Other 625 1,506 877 3 1 321 Total $ 6,043 $ 128,211 $ 94,420 $ 624 $ 308 $ 555 ______________ (1) Amounts are included within the future policy benefits, other policy-related balances and policyholder dividend obligation column. (2) Includes premiums received in advance. Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Schedule III Consolidated Supplementary Insurance Information — (continued) December 31, 2017 , 2016 and 2015 (In millions) Segment Premiums and Universal Life Net Investment Income Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances Amortization of DAC and VOBA Charged to Other Expenses Other 2017 U.S. $ 20,500 $ 6,012 $ 22,019 $ 56 $ 2,680 MetLife Holdings 4,643 4,758 6,004 185 2,293 Corporate & Other 9 (257 ) 4 — 1,018 Total $ 25,152 $ 10,513 $ 28,027 $ 241 $ 5,991 2016 U.S. $ 18,909 $ 5,811 $ 20,263 $ 56 $ 2,721 MetLife Holdings 5,739 5,355 7,128 342 2,797 Corporate & Other 287 (83 ) 155 43 1,044 Total $ 24,935 $ 11,083 $ 27,546 $ 441 $ 6,562 2015 U.S. $ 18,281 $ 5,848 $ 19,613 $ 59 $ 2,658 MetLife Holdings 5,910 5,601 6,951 631 2,678 Corporate & Other 327 90 166 52 1,444 Total $ 24,518 $ 11,539 $ 26,730 $ 742 $ 6,780 ______________ (1) Includes other expenses and policyholder dividends, excluding amortization of DAC and VOBA charged to other expenses. |
Consolidated Reinsurance
Consolidated Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Consolidated Reinsurance | Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Schedule IV Consolidated Reinsurance December 31, 2017 , 2016 and 2015 (Dollars in millions) Gross Amount Ceded Assumed Net Amount % Amount Assumed to Net 2017 Life insurance in-force $ 3,377,964 $ 266,895 $ 490,033 $ 3,601,102 13.6 % Insurance premium Life insurance (1) $ 16,022 $ 1,132 $ 1,097 $ 15,987 6.9 % Accident & health insurance 7,040 121 19 6,938 0.3 % Total insurance premium $ 23,062 $ 1,253 $ 1,116 $ 22,925 4.9 % 2016 Life insurance in-force $ 3,013,618 $ 277,693 $ 777,037 $ 3,512,962 22.1 % Insurance premium Life insurance (1) $ 14,931 $ 1,101 $ 1,668 $ 15,498 10.8 % Accident & health insurance 7,000 124 19 6,895 0.3 % Total insurance premium $ 21,931 $ 1,225 $ 1,687 $ 22,393 7.5 % 2015 Life insurance in-force $ 3,035,399 $ 361,355 $ 811,435 $ 3,485,479 23.3 % Insurance premium Life insurance (1) $ 14,449 $ 1,143 $ 1,638 $ 14,944 11.0 % Accident & health insurance 7,048 99 41 6,990 0.6 % Total insurance premium $ 21,497 $ 1,242 $ 1,679 $ 21,934 7.7 % ______________ (1) Includes annuities with life contingencies. For the year ended December 31, 2017 , reinsurance ceded and assumed included affiliated transactions for life insurance in-force of $16.2 billion and $1.3 billion , respectively, and life insurance premiums of $132 million and $122 million , respectively. For the year ended December 31, 2016 , reinsurance ceded and assumed included affiliated transactions for life insurance in-force of $17.6 billion and $258.3 billion , respectively, and life insurance premiums of $45 million and $727 million , respectively. For the year ended December 31, 2015 , reinsurance ceded and assumed included affiliated transactions for life insurance in-force of $23.1 billion and $276.7 billion , respectively, and life insurance premiums of $40 million and $701 million , respectively. |
Business, Basis of Presentati29
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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 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 | The accompanying consolidated financial statements include the accounts of Metropolitan Life Insurance 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. Intercompany accounts and transactions have been eliminated. |
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. |
Separate Accounts | Separate Accounts Separate accounts are established in conformity with insurance laws. Generally, the assets of the separate accounts cannot be used to settle the liabilities that arise from any other business of the Company. Separate account assets are subject to general account claims only to the extent the value of such assets exceeds the separate account liabilities. The Company reports separately, as assets and liabilities, investments held in separate accounts and liabilities of the separate accounts if: • such separate accounts are legally recognized; • assets supporting the contract liabilities are legally insulated from the Company’s general account liabilities; • investments are directed by the contractholder; and • all investment performance, net of contract fees and assessments, is passed through to the contractholder. The Company reports separate account assets at their fair value, which is based on the estimated fair values of the underlying assets comprising the individual separate account portfolios. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to contractholders of such separate accounts are offset within the same line on the statements of operations. Separate accounts credited with a contractual investment return are combined on a line-by-line basis with the Company’s general account assets, liabilities, revenues and expenses and the accounting for these investments is consistent with the methodologies described herein for similar financial instruments held within the general account. The Company’s revenues reflect fees charged to the separate accounts, including mortality charges, risk charges, policy administration fees, investment management fees and surrender charges. Such fees are included in universal life and investment-type product policy fees on the statements of operations. |
Future Policy Benefit Liabilities and Policyholder Account Balances | Future Policy Benefit Liabilities and Policyholder Account Balances The Company establishes liabilities for amounts payable under insurance policies. Generally, amounts are payable over an extended period of time and related liabilities are calculated as the present value of future expected benefits to be paid, reduced by the present value of future expected premiums. Such liabilities are established based on methods and underlying assumptions in accordance with GAAP and applicable actuarial standards. Principal assumptions used in the establishment of liabilities for future policy benefits are mortality, morbidity, policy lapse, renewal, retirement, disability incidence, disability terminations, investment returns, inflation, expenses and other contingent events as appropriate to the respective product type. These assumptions are established at the time the policy is issued and are intended to estimate the experience for the period the policy benefits are payable. Utilizing these assumptions, liabilities are established on a block of business basis. For long-duration insurance contracts, assumptions such as mortality, morbidity and interest rates are “locked in” upon the issuance of new business. However, significant adverse changes in experience on such contracts may require the establishment of premium deficiency reserves. Such reserves are determined based on the then current assumptions and do not include a provision for adverse deviation. Premium deficiency reserves may also be established for short-duration contracts to provide for expected future losses. These reserves are based on actuarial estimates of the amount of loss inherent in that period, including losses incurred for which claims have not been reported. The provisions for unreported claims are calculated using studies that measure the historical length of time between the incurred date of a claim and its eventual reporting to the Company. Anticipated investment income is considered in the calculation of premium deficiency losses for short-duration contracts. Liabilities for universal and variable life policies with secondary guarantees and paid-up guarantees are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the accumulation period based on total expected assessments. The assumptions used in estimating the secondary and paid-up guarantee liabilities are consistent with those used for amortizing deferred policy acquisition costs (“DAC”), and are thus subject to the same variability and risk as further discussed herein. The assumptions of investment performance and volatility for variable products are consistent with historical experience of appropriate underlying equity indices, such as the Standard & Poor’s Global Ratings (“S&P”) 500 Index. The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios. The Company regularly reviews its estimates of liabilities for future policy benefits and compares them with its actual experience. Differences result in changes to the liability balances with related charges or credits to benefit expenses in the period in which the changes occur. Policyholder account balances relate to contracts or contract features where the Company has no significant insurance risk. Policyholder account balances are equal to: (i) policy account values, which consist of an accumulation of gross premium payments; and (ii) credited interest, ranging from less than 1% to 13% , less expenses, mortality charges and withdrawals. Future policy benefits are measured as follows: Product Type: Measurement Assumptions: Participating life Aggregate of (i) net level premium reserves for death and endowment policy benefits (calculated based upon the non-forfeiture interest rate, ranging from 3% to 7%, and mortality rates guaranteed in calculating the cash surrender values described in such contracts); and (ii) the liability for terminal dividends. Nonparticipating life Aggregate of the present value of future expected benefit payments and related expenses less the present value of future expected net premiums. Assumptions as to mortality and persistency are based upon the Company’s experience when the basis of the liability is established. Interest rate assumptions for the aggregate future policy benefit liabilities range from 2% to 11%. I ndividual and group traditional fixed annuities after annuitization Present value of future expected payments. Interest rate assumptions used in establishing such liabilities range from 1% to 11%. Non-medical health insurance The net level premium method and assumptions as to future morbidity, withdrawals and interest, which provide a margin for adverse deviation. Interest rate assumptions used in establishing such liabilities range from 4% to 7%. Disabled lives Present value of benefits method and experience assumptions as to claim terminations, expenses and interest. Interest rate assumptions used in establishing such liabilities range from 2% to 8%. |
Variable Annuity Guaranteed Minimum Benefits | The Company issues directly and assumes through reinsurance certain variable annuity products with guaranteed minimum benefits that provide the policyholder a minimum return based on their initial deposit adjusted for withdrawals. These guarantees are accounted for as insurance liabilities or as embedded derivatives depending on how and when the benefit is paid. Specifically, a guarantee is accounted for as an embedded derivative if a guarantee is paid without requiring (i) the occurrence of a specific insurable event, or (ii) the policyholder to annuitize. Alternatively, a guarantee is accounted for as an insurance liability if the guarantee is paid only upon either (i) the occurrence of a specific insurable event, or (ii) annuitization. In certain cases, a guarantee may have elements of both an insurance liability and an embedded derivative and in such cases the guarantee is split and accounted for under both models. Guarantees accounted for as insurance liabilities in future policy benefits include guaranteed minimum death benefits (“GMDBs”), the portion of guaranteed minimum income benefits (“GMIBs”) that require annuitization, and the life-contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”). Guarantees accounted for as embedded derivatives in policyholder account balances include the non life-contingent portion of GMWBs, guaranteed minimum accumulation benefits (“GMABs”) and the portion of GMIBs that do not require annuitization. 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. The Company issues variable annuity products with guaranteed minimum benefits. GMABs, the non-life-contingent portion of GMWBs and the portion of certain GMIBs that do not require annuitization are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 9 . Guarantees accounted for as insurance liabilities include: Guarantee: Measurement Assumptions: GMDBs • A return of purchase payment upon death even if the account value is reduced to zero. • Present value of expected death benefits in excess of the projected account balance recognizing the excess ratably over the accumulation period based on the present value of total expected assessments. • An enhanced death benefit may be available for an additional fee. • Assumptions are consistent with those used for amortizing DAC, and are thus subject to the same variability and risk. • Investment performance and volatility assumptions are consistent with the historical experience of the appropriate underlying equity index, such as the S&P 500 Index. • Benefit assumptions are based on the average benefits payable over a range of scenarios. GMIBs • After a specified period of time determined at the time of issuance of the variable annuity contract, a minimum accumulation of purchase payments, even if the account value is reduced to zero, that can be annuitized to receive a monthly income stream that is not less than a specified amount. • Present value of expected income benefits in excess of the projected account balance at any future date of annuitization and recognizing the excess ratably over the accumulation period based on present value of total expected assessments. • Certain contracts also provide for a guaranteed lump sum return of purchase premium in lieu of the annuitization benefit. • Assumptions are consistent with those used for estimating GMDB liabilities. • Calculation incorporates an assumption for the percentage of the potential annuitizations that may be elected by the contractholder. GMWBs • A return of purchase payment via partial withdrawals, even if the account value is reduced to zero, provided that cumulative withdrawals in a contract year do not exceed a certain limit. • Expected value of the life contingent payments and expected assessments using assumptions consistent with those used for estimating the GMDB liabilities. • Certain contracts include guaranteed withdrawals that are life contingent. Embedded Derivatives Embedded derivatives principally include certain direct, assumed and ceded variable annuity guarantees, certain affiliated ceded reinsurance agreements related to such variable annuity guarantees, equity or bond indexed crediting rates within certain funding agreements 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, GMABs and GMWBs previously described. In addition to ceding risks associated with guarantees that are accounted for as embedded derivatives, the Company also ceded directly written GMIBs that are accounted for as insurance (i.e., not as embedded derivatives) but where the reinsurance agreement contains an embedded derivative. These embedded derivatives 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). 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. |
Other Policy-Related Balances | Other Policy-Related Balances Other policy-related balances include policy and contract claims, premiums received in advance, unearned revenue liabilities, obligations assumed under structured settlements, policyholder dividends due and unpaid, and policyholder dividends left on deposit. The liability for policy and contract claims generally relates to incurred but not reported (“IBNR”) death, disability, long-term care and dental claims, as well as claims which have been reported but not yet settled. The liability for these claims is based on the Company’s estimated ultimate cost of settling all claims. The Company derives estimates for the development of IBNR claims principally from analyses of historical patterns of claims by business line. The methods used to determine these estimates are continually reviewed. Adjustments resulting from this continuous review process and differences between estimates and payments for claims are recognized in policyholder benefits and claims expense in the period in which the estimates are changed or payments are made. The Company accounts for the prepayment of premiums on its individual life, group life and health contracts as premiums received in advance and applies the cash received to premiums when due. The unearned revenue liability relates to universal life-type and investment-type products and represents policy charges for services to be provided in future periods. The charges are deferred as unearned revenue and amortized using the product’s estimated gross profits and margins, similar to DAC as discussed further herein. Such amortization is recorded in universal life and investment-type product policy fees. |
Recognition of Insurance Revenues and Deposits | Recognition of Insurance Revenues and Deposits Premiums related to traditional life and annuity contracts with life contingencies are recognized as revenues when due from policyholders. Policyholder benefits and expenses are provided to recognize profits over the estimated lives of the insurance policies. When premiums are due over a significantly shorter period than the period over which benefits are provided, any excess profit is deferred and recognized into earnings in a constant relationship to insurance in-force or, for annuities, the amount of expected future policy benefit payments. Premiums related to short-duration non-medical health, disability and accident & health contracts are recognized on a pro rata basis over the applicable contract term. Deposits related to universal life-type and investment-type products are credited to policyholder account balances. Revenues from such contracts consist of fees for mortality, policy administration and surrender charges and are recorded in universal life and investment-type product policy fees in the period in which services are provided. Amounts that are charged to earnings include interest credited and benefit claims incurred in excess of related policyholder account balances. All revenues and expenses are presented net of reinsurance, as applicable. |
Deferred Policy Acquisition Costs and Value of Business Acquired | Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as DAC. Such costs include: • incremental direct costs of contract acquisition, such as commissions; • the portion of an employee’s total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed; and • other essential direct costs that would not have been incurred had a policy not been acquired or renewed. All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred. Value of business acquired (“VOBA”) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force at the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future policy and contract charges, premiums, mortality and morbidity, separate account performance, surrenders, operating expenses, investment returns, nonperformance risk adjustment and other factors. Actual experience on the purchased business may vary from these projections. DAC and VOBA are amortized as follows: Products: In proportion to the following over estimated lives of the contracts: • Nonparticipating and non-dividend-paying traditional contracts: Actual and expected future gross premiums. • Term insurance • Nonparticipating whole life insurance • Traditional group life insurance • Non-medical health insurance • Participating, dividend-paying traditional contracts Actual and expected future gross margins. • Fixed and variable universal life contracts Actual and expected future gross profits. • Fixed and variable deferred annuity contracts See Note 5 for additional information on DAC and VOBA amortization. Amortization of DAC and VOBA is included in other expenses. The recovery of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated on the financial statements for reporting purposes. Nonparticipating and Non-Dividend-Paying Traditional Contracts The Company amortizes DAC and VOBA related to these contracts (term insurance, nonparticipating whole life insurance, traditional group life insurance, and non-medical health insurance) over the appropriate premium paying period in proportion to the actual and expected future gross premiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, morbidity, persistency and investment returns at policy issuance, or policy acquisition (as it relates to VOBA), include provisions for adverse deviation, and are consistent with the assumptions used to calculate future policyholder benefit liabilities. These assumptions are not revised after policy issuance or acquisition unless the DAC or VOBA balance is deemed to be unrecoverable from future expected profits. Absent a premium deficiency, variability in amortization after policy issuance or acquisition is caused only by variability in premium volumes. Participating, Dividend-Paying Traditional Contracts The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross margins. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The future gross margins are dependent principally on investment returns, policyholder dividend scales, mortality, persistency, expenses to administer the business, creditworthiness of reinsurance counterparties and certain economic variables, such as inflation. For participating contracts within the closed block (dividend-paying traditional contracts) future gross margins are also dependent upon changes in the policyholder dividend obligation. See Note 7 . Of these factors, the Company anticipates that investment returns, expenses, persistency and other factor changes, as well as policyholder dividend scales, are reasonably likely to impact significantly the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross margins with the actual gross margins for that period. When the actual gross margins change from previously estimated gross margins, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross margins exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross margins are below the previously estimated gross margins. Each reporting period, the Company also updates the actual amount of business in-force, which impacts expected future gross margins. When expected future gross margins are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross margins are above the previously estimated expected future gross margins. Each period, the Company also reviews the estimated gross margins for each block of business to determine the recoverability of DAC and VOBA balances. Fixed and Variable Universal Life Contracts and Fixed and Variable Deferred Annuity Contracts The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependent principally upon returns in excess of the amounts credited to policyholders, mortality, persistency, interest crediting rates, expenses to administer the business, creditworthiness of reinsurance counterparties, the effect of any hedges used and certain economic variables, such as inflation. Of these factors, the Company anticipates that investment returns, expenses and persistency are reasonably likely to significantly impact the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross profits with the actual gross profits for that period. When the actual gross profits change from previously estimated gross profits, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross profits exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross profits are below the previously estimated gross profits. Each reporting period, the Company also updates the actual amount of business remaining in-force, which impacts expected future gross profits. When expected future gross profits are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross profits are above the previously estimated expected future gross profits. Each period, the Company also reviews the estimated gross profits for each block of business to determine the recoverability of DAC and VOBA balances. Factors Impacting Amortization Separate account rates of return on variable universal life contracts and variable deferred annuity contracts affect in-force account balances on such contracts each reporting period, which can result in significant fluctuations in amortization of DAC and VOBA. Returns that are higher than the Company’s long-term expectation produce higher account balances, which increases the Company’s future fee expectations and decreases future benefit payment expectations on minimum death and living benefit guarantees, resulting in higher expected future gross profits. The opposite result occurs when returns are lower than the Company’s long-term expectation. The Company’s practice to determine the impact of gross profits resulting from returns on separate accounts assumes that long-term appreciation in equity markets is not changed by short-term market fluctuations, but is only changed when sustained interim deviations are expected. The Company monitors these events and only changes the assumption when its long-term expectation changes. The Company also periodically reviews other long-term assumptions underlying the projections of estimated gross margins and profits. These assumptions primarily relate to investment returns, policyholder dividend scales, interest crediting rates, mortality, persistency, policyholder behavior and expenses to administer business. Management annually updates assumptions used in the calculation of estimated gross margins and profits which may have significantly changed. If the update of assumptions causes expected future gross margins and profits to increase, DAC and VOBA amortization will decrease, resulting in a current period increase to earnings. The opposite result occurs when the assumption update causes expected future gross margins and profits to decrease. Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If such modification, referred to as an internal replacement, substantially changes the contract, the associated DAC or VOBA is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. Amortization of DAC and VOBA is attributed to net investment gains (losses) and net derivative gains (losses), and to other expenses for the amount of gross margins or profits originating from transactions other than investment gains and losses. Unrealized investment gains and losses represent the amount of DAC and VOBA that would have been amortized if such gains and losses had been recognized. |
Deferred Policy Acquisition Costs and Value of Business Acquired | Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as DAC. Such costs include: • incremental direct costs of contract acquisition, such as commissions; • the portion of an employee’s total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed; and • other essential direct costs that would not have been incurred had a policy not been acquired or renewed. All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred. Value of business acquired (“VOBA”) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force at the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future policy and contract charges, premiums, mortality and morbidity, separate account performance, surrenders, operating expenses, investment returns, nonperformance risk adjustment and other factors. Actual experience on the purchased business may vary from these projections. DAC and VOBA are amortized as follows: Products: In proportion to the following over estimated lives of the contracts: • Nonparticipating and non-dividend-paying traditional contracts: Actual and expected future gross premiums. • Term insurance • Nonparticipating whole life insurance • Traditional group life insurance • Non-medical health insurance • Participating, dividend-paying traditional contracts Actual and expected future gross margins. • Fixed and variable universal life contracts Actual and expected future gross profits. • Fixed and variable deferred annuity contracts See Note 5 for additional information on DAC and VOBA amortization. Amortization of DAC and VOBA is included in other expenses. The recovery of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated on the financial statements for reporting purposes. See Note 1 for a description of capitalized acquisition costs. Nonparticipating and Non-Dividend-Paying Traditional Contracts The Company amortizes DAC and VOBA related to these contracts (term insurance, nonparticipating whole life insurance, traditional group life insurance, and non-medical health insurance) over the appropriate premium paying period in proportion to the actual and expected future gross premiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, morbidity, persistency and investment returns at policy issuance, or policy acquisition (as it relates to VOBA), include provisions for adverse deviation, and are consistent with the assumptions used to calculate future policyholder benefit liabilities. These assumptions are not revised after policy issuance or acquisition unless the DAC or VOBA balance is deemed to be unrecoverable from future expected profits. Absent a premium deficiency, variability in amortization after policy issuance or acquisition is caused only by variability in premium volumes. Participating, Dividend-Paying Traditional Contracts The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross margins. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The future gross margins are dependent principally on investment returns, policyholder dividend scales, mortality, persistency, expenses to administer the business, creditworthiness of reinsurance counterparties and certain economic variables, such as inflation. For participating contracts within the closed block (dividend-paying traditional contracts) future gross margins are also dependent upon changes in the policyholder dividend obligation. See Note 7 . Of these factors, the Company anticipates that investment returns, expenses, persistency and other factor changes, as well as policyholder dividend scales, are reasonably likely to impact significantly the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross margins with the actual gross margins for that period. When the actual gross margins change from previously estimated gross margins, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross margins exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross margins are below the previously estimated gross margins. Each reporting period, the Company also updates the actual amount of business in-force, which impacts expected future gross margins. When expected future gross margins are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross margins are above the previously estimated expected future gross margins. Each period, the Company also reviews the estimated gross margins for each block of business to determine the recoverability of DAC and VOBA balances. Fixed and Variable Universal Life Contracts and Fixed and Variable Deferred Annuity Contracts The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependent principally upon returns in excess of the amounts credited to policyholders, mortality, persistency, interest crediting rates, expenses to administer the business, creditworthiness of reinsurance counterparties, the effect of any hedges used and certain economic variables, such as inflation. Of these factors, the Company anticipates that investment returns, expenses and persistency are reasonably likely to significantly impact the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross profits with the actual gross profits for that period. When the actual gross profits change from previously estimated gross profits, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross profits exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross profits are below the previously estimated gross profits. Each reporting period, the Company also updates the actual amount of business remaining in-force, which impacts expected future gross profits. When expected future gross profits are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross profits are above the previously estimated expected future gross profits. Each period, the Company also reviews the estimated gross profits for each block of business to determine the recoverability of DAC and VOBA balances. Factors Impacting Amortization Separate account rates of return on variable universal life contracts and variable deferred annuity contracts affect in-force account balances on such contracts each reporting period, which can result in significant fluctuations in amortization of DAC and VOBA. Returns that are higher than the Company’s long-term expectation produce higher account balances, which increases the Company’s future fee expectations and decreases future benefit payment expectations on minimum death and living benefit guarantees, resulting in higher expected future gross profits. The opposite result occurs when returns are lower than the Company’s long-term expectation. The Company’s practice to determine the impact of gross profits resulting from returns on separate accounts assumes that long-term appreciation in equity markets is not changed by short-term market fluctuations, but is only changed when sustained interim deviations are expected. The Company monitors these events and only changes the assumption when its long-term expectation changes. The Company also periodically reviews other long-term assumptions underlying the projections of estimated gross margins and profits. These assumptions primarily relate to investment returns, policyholder dividend scales, interest crediting rates, mortality, persistency, policyholder behavior and expenses to administer business. Management annually updates assumptions used in the calculation of estimated gross margins and profits which may have significantly changed. If the update of assumptions causes expected future gross margins and profits to increase, DAC and VOBA amortization will decrease, resulting in a current period increase to earnings. The opposite result occurs when the assumption update causes expected future gross margins and profits to decrease. Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If such modification, referred to as an internal replacement, substantially changes the contract, the associated DAC or VOBA is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. Amortization of DAC and VOBA is attributed to net investment gains (losses) and net derivative gains (losses), and to other expenses for the amount of gross margins or profits originating from transactions other than investment gains and losses. Unrealized investment gains and losses represent the amount of DAC and VOBA that would have been amortized if such gains and losses had been recognized. |
Deferred Sales Inducements | The Company generally has two different types of sales inducements which are included in other assets: (i) the policyholder receives a bonus whereby the policyholder’s initial account balance is increased by an amount equal to a specified percentage of the customer’s deposit; and (ii) the policyholder receives a higher interest rate using a dollar cost averaging method than would have been received based on the normal general account interest rate credited. The Company defers sales inducements and amortizes them over the life of the policy using the same methodology and assumptions used to amortize DAC. The amortization of sales inducements is included in policyholder benefits and claims. Each year, or more frequently if circumstances indicate a potential recoverability issue exists, the Company reviews deferred sales inducements (“DSI”) to determine the recoverability of the asset. |
Value of Distribution Agreements and Customer Relationships Acquired | Value of distribution agreements acquired (“VODA”) is reported in other assets and represents the present value of expected future profits associated with the expected future business derived from the distribution agreements acquired as part of a business combination. Value of customer relationships acquired (“VOCRA”) is also reported in other assets and represents the present value of the expected future profits associated with the expected future business acquired through existing customers of the acquired company or business. The VODA and VOCRA associated with past business combinations are amortized over useful lives ranging from 10 to 30 years and such amortization is included in other expenses. Each year, or more frequently if circumstances indicate a possible impairment exists, the Company reviews VODA and VOCRA to determine whether the asset is impaired. |
Reinsurance | Reinsurance For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid (received), and the liabilities ceded (assumed) related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. The net cost of reinsurance is recorded as an adjustment to DAC when there is a gain at inception on the ceding entity and to other liabilities when there is a loss at inception. The net cost of reinsurance is recognized as a component of other expenses when there is a gain at inception and as policyholder benefits and claims when there is a loss and is subsequently amortized on a basis consistent with the methodology used for amortizing DAC related to the underlying reinsured contracts. Subsequent amounts paid (received) on the reinsurance of in-force blocks, as well as amounts paid (received) related to new business, are recorded as ceded (assumed) premiums; and ceded (assumed) premiums, reinsurance and other receivables (future policy benefits) are established. For prospective reinsurance of short-duration contracts that meet the criteria for reinsurance accounting, amounts paid (received) are recorded as ceded (assumed) premiums and ceded (assumed) unearned premiums. Unearned premiums are reflected as a component of premiums, reinsurance and other receivables (future policy benefits). Such amounts are amortized through earned premiums over the remaining contract period in proportion to the amount of insurance protection provided. For retroactive reinsurance of short-duration contracts that meet the criteria of reinsurance accounting, amounts paid (received) in excess of the related insurance liabilities ceded (assumed) are recognized immediately as a loss and are reported in the appropriate line item within the statement of operations. Any gain on such retroactive agreement is deferred and is amortized as part of DAC, primarily using the recovery method. Amounts currently recoverable under reinsurance agreements are included in premiums, reinsurance and other receivables and amounts currently payable are included in other liabilities. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. The funds withheld liability represents amounts withheld by the Company in accordance with the terms of the reinsurance agreements. The Company withholds the funds rather than transferring the underlying investments and, as a result, records funds withheld liability within other liabilities. The Company recognizes interest on funds withheld, included in other expenses, at rates defined by the terms of the agreement which may be contractually specified or directly related to the investment portfolio. Premiums, fees and policyholder benefits and claims include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues. With respect to GMIBs, a portion of the directly written GMIBs are accounted for as insurance liabilities, but the associated reinsurance agreements contain embedded derivatives. These embedded derivatives are included in premiums, reinsurance and other receivables with changes in estimated fair value reported in net derivative gains (losses). Certain assumed GMWB, GMAB and GMIB are also accounted for as embedded derivatives with changes in estimated fair value reported in net derivative gains (losses). If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within premiums, reinsurance and other receivables. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other revenues or other expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate. The Company enters into reinsurance agreements primarily as a purchaser of reinsurance for its various insurance products and also as a provider of reinsurance for some insurance products issued by affiliated and unaffiliated companies. Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. The Company periodically reviews actual and anticipated experience compared to the aforementioned assumptions used to establish assets and liabilities relating to ceded and assumed reinsurance and evaluates the financial strength of counterparties to its reinsurance agreements using criteria similar to that evaluated in the security impairment process discussed in Note 8 . |
Investments | Investments Net Investment Income and Net Investment Gains (Losses) Income from investments is reported within net investment income, unless otherwise stated herein. Gains and losses on sales of investments, impairment losses and changes in valuation allowances are reported within net investment gains (losses), unless otherwise stated herein. Fixed Maturity and Equity Securities The majority of the Company’s fixed maturity and equity securities are classified as available-for-sale (“AFS”) and are reported at their estimated fair value. Unrealized investment gains and losses on these securities are recorded as a separate component of other comprehensive income (loss) (“OCI”), net of policy-related amounts and deferred income taxes. All security transactions are recorded on a trade date basis. Investment gains and losses on sales are determined on a specific identification basis. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts, and is based on the estimated economic life of the securities, which for mortgage-backed and asset-backed securities considers the estimated timing and amount of prepayments of the underlying loans. See Note 8 “ Fixed Maturity and Equity Securities AFS — Methodology for Amortization of Premium and Accretion of Discount on Structured Securities.” The amortization of premium and accretion of discount of fixed maturity securities also takes into consideration call and maturity dates. Dividends on equity securities are recognized when declared. The Company periodically evaluates fixed maturity and equity securities for impairment. The assessment of whether impairments have occurred is based on management’s case-by-case evaluation of the underlying reasons for the decline in estimated fair value, as well as an analysis of the gross unrealized losses by severity and/or age as described in Note 8 “Fixed Maturity and Equity Securities AFS — Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities.” For fixed maturity securities in an unrealized loss position, an other-than-temporary impairment (“OTTI”) is recognized in earnings when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the OTTI recognized in earnings is the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as an OTTI in earnings (“credit loss”). If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of OTTI related to other-than-credit factors (“noncredit loss”) is recorded in OCI. With respect to equity securities, the Company considers in its OTTI analysis its intent and ability to hold a particular equity security for a period of time sufficient to allow for the recovery of its estimated fair value to an amount equal to or greater than cost. If a sale decision is made for an equity security and recovery to an amount at least equal to cost prior to the sale is not expected, the security will be deemed to be other-than-temporarily impaired in the period that the sale decision was made and an OTTI loss will be recorded in earnings. The OTTI loss recognized is the entire difference between the security’s cost and its estimated fair value. Mortgage Loans The Company disaggregates its mortgage loan investments into three portfolio segments: commercial, agricultural and residential. The accounting policies that are applicable to all portfolio segments are presented below and the accounting policies related to each of the portfolio segments are included in Note 8 . Mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and are net of valuation allowances. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts. Also included in mortgage loans are residential mortgage loans for which the fair value option (“FVO”) was elected and which are stated at estimated fair value. Changes in estimated fair value are recognized in net investment income. Policy Loans Policy loans are stated at unpaid principal balances. Interest income is recorded as earned using the contractual interest rate. Generally, accrued interest is capitalized on the policy’s anniversary date. Valuation allowances are not established for policy loans, as they are fully collateralized by the cash surrender value of the underlying insurance policies. Any unpaid principal and accrued interest is deducted from the cash surrender value or the death benefit prior to settlement of the insurance policy. Real Estate Real estate held-for-investment is stated at cost less accumulated depreciation. Depreciation is recorded on a straight-line basis over the estimated useful life of the asset (typically 20 to 55 years ). Rental income is recognized on a straight-line basis over the term of the respective leases. The Company periodically reviews its real estate held-for-investment for impairment and tests for recoverability whenever events or changes in circumstances indicate the carrying value may not be recoverable and exceeds its estimated fair value. Properties whose carrying values are greater than their undiscounted cash flows are written down to their estimated fair value, which is generally computed using the present value of expected future cash flows discounted at a rate commensurate with the underlying risks. Real estate for which the Company commits to a plan to sell within one year and actively markets in its current condition for a reasonable price in comparison to its estimated fair value is classified as held-for-sale. Real estate held-for-sale is stated at the lower of depreciated cost or estimated fair value less expected disposition costs and is not depreciated. Real Estate Joint Ventures and Other Limited Partnership Interests 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. The Company uses the cost method of accounting for investments in which it has virtually no influence over the investee’s operations. The Company recognizes distributions on cost method investments when such distributions become payable or received. Because of the nature and structure of these cost method investments, they do not meet the characteristics of an equity security in accordance with applicable accounting standards. The Company routinely evaluates its equity method and cost method investments for impairment. For equity method investees, the Company considers financial and other information provided by the investee, other known information and inherent risks in the underlying investments, as well as future capital commitments, in determining whether an impairment has occurred. The Company considers its cost method investments for impairment when the carrying value of such investments exceeds the net asset value (“NAV”). The Company takes into consideration the severity and duration of this excess when determining whether the cost method investment is impaired. Short-term Investments Short-term investments include securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase and are stated at estimated fair value or amortized cost, which approximates estimated fair value. Short-term investments also include investments in affiliated money market pools. Other Invested Assets Other invested assets consist principally of the following: • Freestanding derivatives with positive estimated fair values which are described in “— Derivatives” below. • Tax credit and renewable energy partnerships which derive a significant source of investment return in the form of income tax credits or other tax incentives. Where tax credits are guaranteed by a creditworthy third party, the investment is accounted for under the effective yield method. Otherwise, the investment is accounted for under the equity method. See Note 15 . • Loans to affiliates which are stated at unpaid principal balance and adjusted for any unamortized premium or discount. • Annuities funding structured settlement claims represent annuities funding claims assumed by the Company in its capacity as a structured settlements assignment company. The annuities are stated at their contract value, which represents the present value of the future periodic claim payments to be provided. The net investment income recognized reflects the amortization of discount of the annuity at its implied effective interest rate. See Note 4 . • Leveraged leases which are recorded net of non-recourse debt. Income is recognized by applying the leveraged lease’s estimated rate of return to the net investment in the lease. Leveraged leases derive investment returns in part from their income tax treatment. The Company regularly reviews residual values for impairment. • Direct financing leases gross investment is equal to the minimum lease payments plus the unguaranteed residual value. Income is recorded by applying the pre-tax internal rate of return to the investment balance. The Company regularly reviews lease receivables for impairment. • Funds withheld represent a receivable for amounts contractually withheld by ceding companies in accordance with reinsurance agreements. The Company recognizes interest on funds withheld at rates defined by the terms of the agreement which may be contractually specified or directly related to the underlying investments. • Investment in an operating joint venture that engages in insurance underwriting activities accounted for under the equity method. Securities Lending Program Securities lending transactions, whereby blocks of securities are loaned to third parties, primarily brokerage firms and commercial banks, are treated as financing arrangements and the associated liability is recorded at the amount of cash received. The Company obtains collateral at the inception of the loan, usually cash, in an amount generally equal to 102% of the estimated fair value of the securities loaned, and maintains it at a level greater than or equal to 100% for the duration of the loan. Securities loaned under such transactions may be sold or re-pledged by the transferee. The Company is liable to return to the counterparties the cash collateral received. Security collateral on deposit from counterparties in connection with securities lending transactions may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the Company’s financial statements. The Company monitors the estimated fair value of the securities loaned on a daily basis and additional collateral is obtained as necessary throughout the duration of the loan. Income and expenses associated with securities lending transactions are reported as investment income and investment expense, respectively, within net investment income. Repurchase Agreements The Company participates in short-term repurchase agreements with unaffiliated financial institutions. Under these agreements, the Company lends fixed maturity securities and receives cash as collateral in an amount generally equal to 95% to 100% of the estimated fair value of the securities loaned at the inception of the transaction. The associated liability is recorded at the amount of cash received. The Company monitors the estimated fair value of the collateral and the securities loaned throughout the duration of the transaction and additional collateral is obtained as necessary. Securities loaned under such transactions may be sold or re-pledged by the transferee. Investment Risks and Uncertainties Investments are exposed to the following primary sources of risk: credit, interest rate, liquidity, market valuation, currency and real estate risk. The financial statement risks, stemming from such investment risks, are those associated with the determination of estimated fair values, the diminished ability to sell certain investments in times of strained market conditions, the recognition of impairments, the recognition of income on certain investments and the potential consolidation of VIEs. The use of different methodologies, assumptions and inputs relating to these financial statement risks may have a material effect on the amounts presented within the consolidated financial statements. The determination of valuation allowances and impairments is highly subjective and is based upon periodic evaluations and assessments of known and inherent risks associated with the respective asset class. Such evaluations and assessments are revised as conditions change and new information becomes available. The recognition of income on certain investments (e.g. structured securities, including mortgage-backed securities, asset-backed securities (“ABS”) and certain structured investment transactions) is dependent upon certain factors such as prepayments and defaults, and changes in such factors could result in changes in amounts to be earned. 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. Methodology for Amortization of Premium and Accretion of Discount on Structured Securities Amortization of premium and accretion of discount on Structured Securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for Structured Securities are estimated using inputs obtained from third-party specialists and based on management’s knowledge of the current market. For credit-sensitive Structured Securities and certain prepayment-sensitive securities, the effective yield is recalculated on a prospective basis. For all other Structured Securities, the effective yield is recalculated on a retrospective basis. Evaluation and Measurement Methodologies Management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the impairment evaluation process include, but are not limited to: (i) the length of time and the extent to which the estimated fair value has been below cost or amortized cost; (ii) the potential for impairments when the issuer is experiencing significant financial difficulties; (iii) the potential for impairments in an entire industry sector or sub-sector; (iv) the potential for impairments in certain economically depressed geographic locations; (v) the potential for impairments where the issuer, series of issuers or industry has suffered a catastrophic loss or has exhausted natural resources; (vi) with respect to fixed maturity securities, whether the Company has the intent to sell or will more likely than not be required to sell a particular security before the decline in estimated fair value below amortized cost recovers; (vii) with respect to Structured Securities, changes in forecasted cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security; (viii) the potential for impairments due to weakening of foreign currencies on non-functional currency denominated fixed maturity securities that are near maturity; and (ix) other subjective factors, including concentrations and information obtained from regulators and rating agencies. The methodology and significant inputs used to determine the amount of credit loss on fixed maturity securities are as follows: • The Company calculates the recovery value by performing a discounted cash flow analysis based on the present value of future cash flows. The discount rate is generally the effective interest rate of the security prior to impairment. • When determining collectability and the period over which value is expected to recover, the Company applies considerations utilized in its overall impairment evaluation process which incorporates information regarding the specific security, fundamentals of the industry and geographic area in which the security issuer operates, and overall macroeconomic conditions. Projected future cash flows are estimated using assumptions derived from management’s best estimates of likely scenario-based outcomes after giving consideration to a variety of variables that include, but are not limited to: payment terms of the security; the likelihood that the issuer can service the interest and principal payments; the quality and amount of any credit enhancements; the security’s position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; and changes to the rating of the security or the issuer by rating agencies. • Additional considerations are made when assessing the unique features that apply to certain Structured Securities including, but not limited to: the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying loans or assets backing a particular security, and the payment priority within the tranche structure of the security. • When determining the amount of the credit loss for U.S. and foreign corporate securities, foreign government securities and state and political subdivision securities, the estimated fair value is considered the recovery value when available information does not indicate that another value is more appropriate. When information is identified that indicates a recovery value other than estimated fair value, management considers in the determination of recovery value the same considerations utilized in its overall impairment evaluation process as described above, as well as any private and public sector programs to restructure such securities. With respect to securities that have attributes of debt and equity (“perpetual hybrid securities”), consideration is given in the OTTI analysis as to whether there has been any deterioration in the credit of the issuer and the likelihood of recovery in value of the securities that are in a severe and extended unrealized loss position. Consideration is also given as to whether any perpetual hybrid securities, with an unrealized loss, regardless of credit rating, have deferred any dividend payments. When an OTTI loss has occurred, the OTTI loss is the entire difference between the perpetual hybrid security’s cost and its estimated fair value with a corresponding charge to earnings. The cost or amortized cost of fixed maturity and equity securities is adjusted for OTTI in the period in which the determination is made. The Company does not change the revised cost basis for subsequent recoveries in value. In periods subsequent to the recognition of OTTI on a fixed maturity security, the Company accounts for the impaired security as if it had been purchased on the measurement date of the impairment. Accordingly, the discount (or reduced premium) based on the new cost basis is accreted over the remaining term of the fixed maturity security in a prospective manner based on the amount and timing of estimated future cash flows. The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days. Mortgage Loans Modified in a Troubled Debt Restructuring The Company may grant concessions related to borrowers experiencing financial difficulties, which are classified as troubled debt restructurings. Generally, the types of concessions include: reduction of the contractual interest rate, extension of the maturity date at an interest rate lower than current market interest rates, and/or a reduction of accrued interest. The amount, timing and extent of the concessions granted are considered in determining any impairment or changes in the specific valuation allowance recorded with the restructuring. Through the continuous monitoring process, a specific valuation allowance may have been recorded prior to the quarter when the mortgage loan is modified in a troubled debt restructuring. Valuation Allowance Methodology Mortgage loans are considered to be impaired when it is probable that, based upon current information and events, the Company will be unable to collect all amounts due under the loan agreement. Specific valuation allowances are established using the same methodology for all three portfolio segments as the excess carrying value of a loan over either (i) the present value of expected future cash flows discounted at the loan’s original effective interest rate, (ii) the estimated fair value of the loan’s underlying collateral if the loan is in the process of foreclosure or otherwise collateral dependent, or (iii) the loan’s observable market price. A common evaluation framework is used for establishing non-specific valuation allowances for all loan portfolio segments; however, a separate non-specific valuation allowance is calculated and maintained for each loan portfolio segment that is based on inputs unique to each loan portfolio segment. Non-specific valuation allowances are established for pools of loans with similar risk characteristics where a property-specific or market-specific risk has not been identified, but for which the Company expects to incur a credit loss. These evaluations are based upon several loan portfolio segment-specific factors, including the Company’s experience for loan losses, defaults and loss severity, and loss expectations for loans with similar risk characteristics. These evaluations are revised as conditions change and new information becomes available. Commercial and Agricultural Mortgage Loan Portfolio Segments The Company typically uses several years of historical experience in establishing non-specific valuation allowances which capture multiple economic cycles. For evaluations of commercial mortgage loans, in addition to historical experience, management considers factors that include the impact of a rapid change to the economy, which may not be reflected in the loan portfolio, and recent loss and recovery trend experience as compared to historical loss and recovery experience. For evaluations of agricultural mortgage loans, in addition to historical experience, management considers factors that include increased stress in certain sectors, which may be evidenced by higher delinquency rates, or a change in the number of higher risk loans. On a quarterly basis, management incorporates the impact of these current market events and conditions on historical experience in determining the non-specific valuation allowance established for commercial and agricultural mortgage loans. All commercial mortgage loans are reviewed on an ongoing basis which may include an analysis of the property financial statements and rent roll, lease rollover analysis, property inspections, market analysis, estimated valuations of the underlying collateral, loan-to-value ratios, debt service coverage ratios, and tenant creditworthiness. The monitoring process focuses on higher risk loans, which include those that are classified as restructured, delinquent or in foreclosure, as well as loans with higher loan-to-value ratios and lower debt service coverage ratios. All agricultural mortgage loans are monitored on an ongoing basis. The monitoring process for agricultural mortgage loans is generally similar to the commercial mortgage loan monitoring process, with a focus on higher risk loans, including reviews on a geographic and property-type basis. Higher risk loans are reviewed individually on an ongoing basis for potential credit loss and specific valuation allowances are established using the methodology described above. Quarterly, the remaining loans are reviewed on a pool basis by aggregating groups of loans that have similar risk characteristics for potential credit loss, and non-specific valuation allowances are established as described above using inputs that are unique to each segment of the loan portfolio. For commercial mortgage loans, the primary credit quality indicator is the debt service coverage ratio, which compares a property’s net operating income to amounts needed to service the principal and interest due under the loan. Generally, the lower the debt service coverage ratio, the higher the risk of experiencing a credit loss. The Company also reviews the loan-to-value ratio of its commercial mortgage loan portfolio. Loan-to-value ratios compare the unpaid principal balance of the loan to the estimated fair value of the underlying collateral. Generally, the higher the loan-to-value ratio, the higher the risk of experiencing a credit loss. The debt service coverage ratio and the values utilized in calculating the ratio are updated annually on a rolling basis, with a portion of the portfolio updated each quarter. In addition, the loan-to-value ratio is routinely updated for all but the lowest risk loans as part of the Company’s ongoing review of its commercial mortgage loan portfolio. For agricultural mortgage loans, the Company’s primary credit quality indicator is the loan-to-value ratio. The values utilized in calculating this ratio are developed in connection with the ongoing review of the agricultural mortgage loan portfolio and are routinely updated. Residential Mortgage Loan Portfolio Segment The Company’s residential mortgage loan portfolio is comprised primarily of closed end, amortizing residential mortgage loans. For evaluations of residential mortgage loans, the key inputs of expected frequency and expected loss reflect current market conditions, with expected frequency adjusted, when appropriate, for differences from market conditions and the Company’s historical experience. In contrast to the commercial and agricultural mortgage loan portfolios, residential mortgage loans are smaller-balance homogeneous loans that are collectively evaluated for impairment. Non-specific valuation allowances are established using the evaluation framework described above for pools of loans with similar risk characteristics from inputs that are unique to the residential segment of the loan portfolio. Loan specific valuation allowances are only established on residential mortgage loans when they have been restructured and are established using the methodology described above for all loan portfolio segments. For residential mortgage loans, the Company’s primary credit quality indicator is whether the loan is performing or nonperforming. The Company generally defines nonperforming residential mortgage loans as those that are 60 or more days past due and/or in nonaccrual status which is assessed monthly. Generally, nonperforming residential mortgage loans have a higher risk of experiencing a credit loss. For rental receivables, the primary credit quality indicator is whether the rental receivable is performing or nonperforming, which is assessed monthly. The Company generally defines nonperforming rental receivables as those that are 90 days or more past due. Purchased Credit Impaired Investments Investments acquired with evidence of credit quality deterioration since origination and for which it is probable at the acquisition date that the Company will be unable to collect all contractually required payments are classified as purchased credit impaired (“PCI”) investments. For each investment, the excess of the cash flows expected to be collected as of the acquisition date over its acquisition date fair value is referred to as the accretable yield and is recognized as net investment income on an effective yield basis. If subsequently, based on current information and events, it is probable that there is a significant increase in cash flows previously expected to be collected or if actual cash flows are significantly greater than cash flows previously expected to be collected, the accretable yield is adjusted prospectively. The excess of the contractually required payments (including interest) as of the acquisition date over the cash flows expected to be collected as of the acquisition date is referred to as the nonaccretable difference, and this amount is not expected to be realized as net investment income. Decreases in cash flows expected to be collected can result in OTTI. 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 | Derivatives Freestanding Derivatives Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivatives carrying value in other invested assets or other liabilities. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows: Statement of Operations Presentation: Derivative: Policyholder benefits and claims • Economic hedges of variable annuity guarantees included in future policy benefits Net investment income • Economic hedges of equity method investments in joint ventures • All derivatives held in relation to trading portfolios 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). 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. 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. 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; and (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities. 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; and (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed rate investments 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. |
Fair Value | Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In most cases, the exit price and the transaction (or entry) price will be the same at initial recognition. Subsequent to initial recognition, fair values are based on unadjusted quoted prices for identical assets or liabilities in active markets that are readily and regularly obtainable. When such quoted prices are not available, fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical assets or liabilities, or other observable inputs. If these inputs are not available, or observable inputs are not determinable, unobservable inputs and/or adjustments to observable inputs requiring management’s judgment are used to determine the estimated fair value of assets and liabilities. When developing estimated fair values, the Company considers three broad valuation approaches: (i) the market approach, (ii) the income approach, and (iii) the cost approach. The Company determines the most appropriate valuation approach to use, given what is being measured and the availability of sufficient inputs, giving priority to observable inputs. The Company categorizes its assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the significant input with the lowest level in its valuation. The input levels are as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. The Company defines active markets based on average trading volume for equity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities. Level 2 Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. These inputs can include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other significant inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the determination of estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. Financial markets are susceptible to severe events evidenced by rapid depreciation in asset values accompanied by a reduction in asset liquidity. The Company’s ability to sell securities, or the price ultimately realized for these securities, depends upon the demand and liquidity in the market and increases the use of judgment in determining the estimated fair value of certain securities. 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. |
Goodwill | Goodwill Goodwill, which is included in other assets, represents the future economic benefits arising from net assets acquired in a business combination that are not individually identified and recognized. Goodwill is calculated as the excess of cost over the estimated fair value of such net assets acquired, is not amortized, and is tested for impairment based on a fair value approach at least annually or more frequently if events or circumstances indicate that there may be justification for conducting an interim test. The Company performs its annual goodwill impairment testing during the third quarter based upon data as of the close of the second quarter. Goodwill associated with a business acquisition is not tested for impairment during the year the business is acquired unless there is a significant identified impairment event. The impairment test is performed at the reporting unit level, which is the operating segment or a business one level below the operating segment, if discrete financial information is prepared and regularly reviewed by management at that level. For purposes of goodwill impairment testing, if the carrying value of a reporting unit exceeds its estimated fair value, there may be an indication of impairment. In such instances, the implied fair value of the goodwill is determined in the same manner as the amount of goodwill that would be determined in a business combination. The excess of the carrying value of goodwill over the implied fair value of goodwill would be recognized as an impairment and recorded as a charge against net income. The Company tests goodwill for impairment by either performing a qualitative assessment or a two-step quantitative test. The qualitative assessment is an assessment of historical information and relevant events and circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. The Company may elect not to perform the qualitative assessment for some or all of its reporting units and perform a two-step quantitative impairment test. In performing the two-step quantitative impairment test, the Company may determine the fair values of its reporting units by applying a market multiple, discounted cash flow, and/or an actuarial based valuation approach. For the 2017 annual goodwill impairment tests, the Company concluded that goodwill was not impaired. The goodwill balance was $70 million in the U.S segment and $31 million in the MetLife Holdings segment, at both December 31, 2017 and 2016 . |
Employee Benefit Plans | Employee Benefit Plans The Company sponsors and administers various qualified and nonqualified defined benefit pension plans and other postretirement employee benefit plans covering eligible employees who meet specified eligibility requirements of the sponsor and its participating affiliates. A December 31 measurement date is used for all of the Company’s defined benefit pension and other postretirement benefit plans. The Company recognizes the funded status of each of its defined benefit pension and postretirement benefit plans, measured as the difference between the fair value of plan assets and the benefit obligation, which is the projected benefit obligation (“PBO”) for pension benefits and the accumulated postretirement benefit obligation (“APBO”) for other postretirement benefits in other assets or other liabilities. Actuarial gains and losses result from differences between the actual experience and the assumed experience on plan assets or PBO during a particular period and are recorded in accumulated OCI (“AOCI”). To the extent such gains and losses exceed 10% of the greater of the PBO or the estimated fair value of plan assets, the excess is amortized into net periodic benefit costs, generally over the average projected future service years of the active employees. In addition, prior service costs (credit) are recognized in AOCI at the time of the amendment and then amortized to net periodic benefit costs over the average projected future service years of the active employees. Net periodic benefit costs are determined using management’s estimates and actuarial assumptions and are comprised of service cost, interest cost, settlement and curtailment costs, expected return on plan assets, amortization of net actuarial (gains) losses, and amortization of prior service costs (credit). Fair value is used to determine the expected return on plan assets. The Company also sponsors defined contribution plans for substantially all employees under which a portion of employee contributions is matched. Applicable matching contributions are made each payroll period. Accordingly, the Company recognizes compensation cost for current matching contributions. As all contributions are transferred currently as earned to the defined contribution plans, no liability for matching contributions is recognized on the balance sheets. The Company sponsors and administers various qualified and nonqualified defined benefit pension plans and other postretirement employee benefit plans covering employees who meet specified eligibility requirements. Pension benefits are provided utilizing either a traditional formula or cash balance formula. The traditional formula provides benefits that are primarily based upon years of credited service and either final average or career average earnings. The cash balance formula utilizes hypothetical or notional accounts which credit participants with benefits equal to a percentage of eligible pay, as well as interest credits, determined annually based upon the annual rate of interest on 30-year U.S. Treasury securities, for each account balance. The nonqualified pension plans provide supplemental benefits in excess of limits applicable to a qualified plan. Participating affiliates are allocated an equitable share of net expense related to the plans, proportionate to other expenses being allocated to these affiliates. The Company also provides certain postemployment benefits and certain postretirement medical and life insurance benefits for retired employees. Employees of MetLife who were hired prior to 2003 (or, in certain cases, rehired during or after 2003) and meet age and service criteria while working for the Company may become eligible for these other postretirement benefits, at various levels, in accordance with the applicable plans. Virtually all retirees, or their beneficiaries, contribute a portion of the total costs of postretirement medical benefits. Employees of MetLife hired after 2003 are not eligible for any employer subsidy for postretirement medical benefits. |
Income Tax | Income Tax Metropolitan Life Insurance Company and its includable subsidiaries join with MetLife, Inc. and its includable subsidiaries in filing a consolidated U.S. life insurance and non-life insurance federal income tax return in accordance with the provisions of the Internal Revenue Code of 1986, as amended. Current taxes (and the benefits of tax attributes such as losses) are allocated to Metropolitan Life Insurance Company and its subsidiaries under the consolidated tax return regulations and a tax sharing agreement. Under the consolidated tax return regulations, MetLife, Inc. has elected the “percentage method” (and 100% under such method) of reimbursing companies for tax attributes, e.g., net operating losses. As a result, 100% of tax attributes are reimbursed by MetLife, Inc. to the extent that consolidated federal income tax of the consolidated federal tax return group is reduced in a year by tax attributes. On an annual basis, each of the profitable subsidiaries pays to MetLife, Inc. the federal income tax which it would have paid based upon that year’s taxable income. If Metropolitan Life Insurance Company or its includable subsidiaries has current or prior deductions and credits (including but not limited to losses) which reduce the consolidated tax liability of the consolidated federal tax return group, the deductions and credits are characterized as realized (or realizable) by Metropolitan Life Insurance Company and its includable subsidiaries when those tax attributes are realized (or realizable) by the consolidated federal tax return group, even if Metropolitan Life Insurance Company or its includable subsidiaries would not have realized the attributes on a stand-alone basis under a “wait and see” method. The Company’s accounting for income taxes represents management’s best estimate of various events and transactions. Deferred tax assets and liabilities resulting from temporary differences between the financial reporting and tax bases of assets and liabilities are measured at the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. The realization of deferred tax assets depends upon the existence of sufficient taxable income within the carryback or carryforward periods under the tax law in the applicable tax jurisdiction. Valuation allowances are established against deferred tax assets when management determines, based on available information, that it is more likely than not that deferred income tax assets will not be realized. Significant judgment is required in determining whether valuation allowances should be established, as well as the amount of such allowances. When making such determination the Company considers many factors, including: • the nature, frequency, and amount of cumulative financial reporting income and losses in recent years; • the jurisdiction in which the deferred tax asset was generated; • the length of time that carryforward can be utilized in the various taxing jurisdictions; • future taxable income exclusive of reversing temporary differences and carryforwards; • future reversals of existing taxable temporary differences; • taxable income in prior carryback years; and • tax planning strategies. The Company may be required to change its provision for income taxes when estimates used in determining valuation allowances on deferred tax assets significantly change or when receipt of new information indicates the need for adjustment in valuation allowances. Additionally, the effect of changes in tax laws, tax regulations, or interpretations of such laws or regulations, is recognized in net income tax expense (benefit) in the period of change. The Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded on the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Unrecognized tax benefits due to tax uncertainties that do not meet the threshold are included within other liabilities and are charged to earnings in the period that such determination is made. The Company classifies interest recognized as interest expense and penalties recognized as a component of income tax expense. The Company classifies interest accrued related to unrecognized tax benefits in interest expense, included within other expenses, while penalties are included in income tax expense. |
Litigation Contingencies | Litigation Contingencies The Company is a party to a number of legal actions and is involved in a number of regulatory investigations. Given the inherent unpredictability of these matters, it is difficult to estimate the impact on the Company’s financial position. Liabilities are established when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Except as otherwise disclosed in Note 16 , legal costs are recognized as incurred. On a quarterly and annual basis, the Company reviews relevant information with respect to liabilities for litigation, regulatory investigations and litigation-related contingencies to be reflected on the Company’s financial statements. |
Stock-based Compensation | Stock-Based Compensation Stock-based compensation recognized on the Company’s consolidated results of operations is allocated from MetLife, Inc. The accounting policies described below represent those that MetLife, Inc. applies in determining such allocated expenses. MetLife, Inc. grants certain employees stock-based compensation awards under various plans that are subject to specific vesting conditions. With the exception of performance shares granted in 2013 and after which are re-measured quarterly, the cost of all stock-based transactions is measured at fair value at the grant date and recognized over the period during which a grantee is required to provide services in exchange for the award. Although the terms of MetLife, Inc.’s stock-based plans do not accelerate vesting upon the attainment of the applicable criteria for post-employment award continuation, the requisite service period subsequent to attaining such criteria is considered non-substantive. Accordingly, MetLife, Inc. recognizes compensation expense related to stock-based awards over the shorter of the requisite service period or the period to attainment of such criteria. An estimation of future forfeitures of stock-based awards is incorporated into the determination of compensation expense when recognizing expense over the requisite service period. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid securities and other investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are stated at amortized cost, which approximates estimated fair value. |
Property, Equipment, Leasehold Improvements and Computer Software | Property, Equipment, Leasehold Improvements and Computer Software Property, equipment and leasehold improvements, which are included in other assets, are stated at cost, less accumulated depreciation and amortization. Depreciation is determined using the straight-line method over the estimated useful lives of the assets, as appropriate. The estimated life is generally 40 years for company occupied real estate property, from one to 25 years for leasehold improvements, and from three to seven years for all other property and equipment. The cost basis of the property, equipment and leasehold improvements was $1.2 billion and $1.3 billion at December 31, 2017 and 2016 , respectively. Accumulated depreciation and amortization of property, equipment and leasehold improvements was $614 million and $673 million at December 31, 2017 and 2016 , respectively. Related depreciation and amortization expense was $124 million , $139 million and $159 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Computer software, which is included in other assets, is stated at cost, less accumulated amortization. Purchased software costs, as well as certain internal and external costs incurred to develop internal-use computer software during the application development stage, are capitalized. Such costs are amortized generally over a four -year period using the straight-line method. The cost basis of computer software was $1.7 billion and $1.5 billion at December 31, 2017 and 2016 , respectively. Accumulated amortization of capitalized software was $1.3 billion and $1.1 billion at December 31, 2017 and 2016 , respectively. Related amortization expense was $164 million , $132 million and $150 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Other Revenues | Other Revenues Other revenues primarily include, in addition to items described elsewhere herein, prepaid legal plan fees, administrative service fees, and fees related to certain stable value products. Such fees are recognized in the period in which services are performed. |
Policyholder Dividends | Policyholder Dividends Policyholder dividends are approved annually by Metropolitan Life Insurance Company’s board of directors. The aggregate amount of policyholder dividends is related to actual interest, mortality, morbidity and expense experience for the year, as well as management’s judgment as to the appropriate level of statutory surplus to be retained by Metropolitan Life Insurance Company. |
Foreign Currency | Foreign Currency Assets, liabilities and operations of foreign affiliates and subsidiaries are recorded based on the functional currency of each entity. The determination of the functional currency is made based on the appropriate economic and management indicators. The local currencies of foreign operations are the functional currencies. Assets and liabilities of foreign affiliates and subsidiaries are translated from the functional currency to U.S. dollars at the exchange rates in effect at each year-end and revenues and expenses are translated at the average exchange rates during the year. The resulting translation adjustments are charged or credited directly to OCI, net of applicable taxes. Gains and losses from foreign currency transactions, including the effect of re-measurement of monetary assets and liabilities to the appropriate functional currency, are reported as part of net investment gains (losses) in the period in which they occur. |
Closed Block | On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company 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 Metropolitan Life Insurance Company’s plan of reorganization, as amended (the “Plan of Reorganization”). On the Demutualization Date, Metropolitan Life Insurance Company established a closed block for the benefit of holders of certain individual life insurance policies of Metropolitan Life Insurance Company. Assets have been allocated to the closed block in an amount that has been determined to produce cash flows which, together with anticipated revenues from the policies included in the closed block, are reasonably expected to be sufficient to support obligations and liabilities relating to these policies, including, but not limited to, provisions for the payment of claims and certain expenses and taxes, and to provide for the continuation of policyholder dividend scales in effect for 1999, if the experience underlying such dividend scales continues, and for appropriate adjustments in such scales if the experience changes. At least annually, the Company compares actual and projected experience against the experience assumed in the then-current dividend scales. Dividend scales are adjusted periodically to give effect to changes in experience. The closed block assets, the cash flows generated by the closed block assets and the anticipated revenues from the policies in the closed block will benefit only the holders of the policies in the closed block. To the extent that, over time, cash flows from the assets allocated to the closed block and claims and other experience related to the closed block are, in the aggregate, more or less favorable than what was assumed when the closed block was established, total dividends paid to closed block policyholders in the future may be greater than or less than the total dividends that would have been paid to these policyholders if the policyholder dividend scales in effect for 1999 had been continued. Any cash flows in excess of amounts assumed will be available for distribution over time to closed block policyholders and will not be available to stockholders. If the closed block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside of the closed block. The closed block will continue in effect as long as any policy in the closed block remains in-force. The expected life of the closed block is over 100 years from the Demutualization Date. The Company uses the same accounting principles to account for the participating policies included in the closed block as it used prior to the Demutualization Date. However, the Company establishes a policyholder dividend obligation for earnings that will be paid to policyholders as additional dividends as described below. The excess of closed block liabilities over closed block assets at the Demutualization Date (adjusted to eliminate the impact of related amounts in AOCI) represents the estimated maximum future earnings from the closed block expected to result from operations attributed to the closed block after income taxes. Earnings of the closed block are recognized in income over the period the policies and contracts in the closed block remain in-force. Management believes that over time the actual cumulative earnings of the closed block will approximately equal the expected cumulative earnings due to the effect of dividend changes. If, over the period the closed block remains in existence, the actual cumulative earnings of the closed block are greater than the expected cumulative earnings of the closed block, the Company will pay the excess to closed block policyholders as additional policyholder dividends unless offset by future unfavorable experience of the closed block and, accordingly, will recognize only the expected cumulative earnings in income with the excess recorded as a policyholder dividend obligation. If over such period, the actual cumulative earnings of the closed block are less than the expected cumulative earnings of the closed block, the Company will recognize only the actual earnings in income. However, the Company may change policyholder dividend scales in the future, which would be intended to increase future actual earnings until the actual cumulative earnings equal the expected cumulative earnings. 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. |
New Accounting Pronouncements | Adoption of New Accounting Pronouncements Effective January 1, 2017, the Company early adopted guidance relating to business combinations. The new guidance clarifies the definition of a business and requires that an entity apply certain criteria in order to determine when a set of assets and activities qualifies as a business. The adoption of this standard will result in fewer acquisitions qualifying as businesses and, accordingly, acquisition costs for those acquisitions that do not qualify as businesses will be capitalized rather than expensed. The adoption did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2017, the Company retrospectively adopted guidance relating to consolidation. The new guidance does not change the characteristics of a primary beneficiary under current GAAP. It changes how a reporting entity evaluates whether it is the primary beneficiary of a VIE by changing how a reporting entity that is a single decisionmaker of a VIE handles indirect interests in the entity held through related parties that are under common control with the reporting entity. The adoption did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2016, the Company retrospectively adopted guidance relating to short-duration contracts. The new guidance requires insurance entities to provide users of financial statements with more transparent information about initial claim estimates and subsequent adjustments to these estimates, including information on: (i) reconciling from the claim development table to the balance sheet liability, (ii) methodologies and judgments in estimating claims, and (iii) the timing and frequency of claims. The adoption did not have an impact on the Company’s consolidated financial statements other than expanded disclosures in Note 4 . Effective January 1, 2016, the Company retrospectively adopted new guidance relating to the consolidation of certain entities. The objective of the new standard is to improve targeted areas of the consolidation guidance and to reduce the number of consolidation models. The new consolidation standard provides guidance on how a reporting entity (i) evaluates whether the entity should consolidate limited partnerships and similar entities, (ii) assesses whether the fees paid to a decisionmaker or service provider are variable interests in a VIE, and (iii) assesses the variable interests in a VIE held by related parties of the reporting entity. The new guidance also eliminates the VIE consolidation model based on majority exposure to variability that applied to certain investment companies and similar entities. The adoption of the new guidance did not impact which entities are consolidated by the Company. The consolidated VIE assets and liabilities and unconsolidated VIE carrying amounts and maximum exposure to loss as of December 31, 2016, disclosed in Note 8 , reflect the application of the new guidance. |
Business, Basis of Presentati30
Business, Basis of Presentation and Summary of Significant Accounting Policies (Schedule of Prior Period Adjustment) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The impact of the revisions is shown in the tables below: December 31, 2016 Consolidated Balance Sheets As Revisions As (In millions) Liabilities Future policy benefits $ 115,556 $ (37 ) $ 115,519 Other policy-related balances $ 6,731 $ 372 $ 7,103 Deferred income tax liability $ 2,503 $ (118 ) $ 2,385 Total liabilities $ 405,584 $ 217 $ 405,801 Equity Retained earnings $ 9,250 $ (217 ) $ 9,033 Total Metropolitan Life Insurance Company stockholder’s equity $ 26,787 $ (217 ) $ 26,570 Total equity $ 26,977 $ (217 ) $ 26,760 For the Years Ended December 31, 2016 2015 Consolidated Statements of Operations As Revisions As As Revisions As (In millions, except per share data) Revenues Net investment income $ 11,083 $ — $ 11,083 $ 11,577 $ (38 ) $ 11,539 Total revenues $ 36,490 $ — $ 36,490 $ 38,771 $ (38 ) $ 38,733 Expenses Policyholder benefits and claims $ 25,291 $ 22 $ 25,313 $ 24,527 $ 20 $ 24,547 Total expenses $ 34,527 $ 22 $ 34,549 $ 34,232 $ 20 $ 34,252 Income (loss) before provision for income tax $ 1,963 $ (22 ) $ 1,941 $ 4,539 $ (58 ) $ 4,481 Provision for income tax expense (benefit) $ 207 $ (8 ) $ 199 $ 1,782 $ (19 ) $ 1,763 Net income (loss) $ 1,756 $ (14 ) $ 1,742 $ 2,757 $ (39 ) $ 2,718 Net income (loss) attributable to Metropolitan Life Insurance Company $ 1,764 $ (14 ) $ 1,750 $ 2,757 $ (39 ) $ 2,718 For the Years Ended December 31, 2016 2015 Consolidated Statements of Comprehensive Income (Loss) As Revisions As Revised As Revisions As Revised (In millions) Net income (loss) $ 1,756 $ (14 ) $ 1,742 $ 2,757 $ (39 ) $ 2,718 Comprehensive income (loss) $ 2,190 $ (14 ) $ 2,176 $ 408 $ (39 ) $ 369 Comprehensive income (loss) attributable to Metropolitan Life Insurance Company $ 2,198 $ (14 ) $ 2,184 $ 408 $ (39 ) $ 369 Consolidated Statements of Equity As Revisions As Revised (In millions) Retained Earnings Balance at December 31, 2014 $ 12,470 $ (164 ) $ 12,306 Net income (loss) $ 2,757 $ (39 ) $ 2,718 Balance at December 31, 2015 $ 13,738 $ (203 ) $ 13,535 Net income (loss) $ 1,764 $ (14 ) $ 1,750 Balance at December 31, 2016 $ 9,250 $ (217 ) $ 9,033 Total Metropolitan Life Insurance Company Stockholder’s Equity Balance at December 31, 2014 $ 31,957 $ (164 ) $ 31,793 Balance at December 31, 2015 $ 30,872 $ (203 ) $ 30,669 Balance at December 31, 2016 $ 26,787 $ (217 ) $ 26,570 Total Equity Balance at December 31, 2014 $ 32,349 $ (164 ) $ 32,185 Balance at December 31, 2015 $ 31,244 $ (203 ) $ 31,041 Balance at December 31, 2016 $ 26,977 $ (217 ) $ 26,760 For the Years Ended December 31, 2016 2015 Consolidated Statements of Cash Flows As Revisions As Revised As Revisions As Revised (In millions) Cash flows from operating activities Net income (loss) $ 1,756 $ (14 ) $ 1,742 $ 2,757 $ (39 ) $ 2,718 Change in income tax $ (430 ) $ (8 ) $ (438 ) $ 257 $ (19 ) $ 238 Change in insurance-related liabilities and policy-related balances $ 2,719 $ 22 $ 2,741 $ 2,628 $ 20 $ 2,648 Change in other liabilities $ 1,731 $ — $ 1,731 $ (499 ) $ 38 $ (461 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | Year Ended December 31, 2017 U.S. MetLife Holdings Corporate Total Adjustments Total (In millions) Revenues Premiums $ 19,496 $ 3,420 $ 9 $ 22,925 $ — $ 22,925 Universal life and investment-type product policy fees 1,004 1,126 — 2,130 97 2,227 Net investment income 6,206 4,920 (243 ) 10,883 (370 ) 10,513 Other revenues 781 200 589 1,570 — 1,570 Net investment gains (losses) — — — — 334 334 Net derivative gains (losses) — — — — (344 ) (344 ) Total revenues 27,487 9,666 355 37,508 (283 ) 37,225 Expenses Policyholder benefits and claims and policyholder dividends 20,558 6,006 4 26,568 321 26,889 Interest credited to policyholder account balances 1,459 779 — 2,238 (3 ) 2,235 Capitalization of DAC (48 ) (13 ) — (61 ) — (61 ) Amortization of DAC and VOBA 56 303 — 359 (118 ) 241 Interest expense on debt 11 8 87 106 — 106 Other expenses 2,717 1,201 930 4,848 1 4,849 Total expenses 24,753 8,284 1,021 34,058 201 34,259 Provision for income tax expense (benefit) 954 427 (368 ) 1,013 (1,574 ) (561 ) Adjusted earnings $ 1,780 $ 955 $ (298 ) 2,437 Adjustments to: Total revenues (283 ) Total expenses (201 ) Provision for income tax (expense) benefit 1,574 Net income (loss) $ 3,527 $ 3,527 At December 31, 2017 U.S. MetLife Holdings Corporate Total (In millions) Total assets $ 245,750 $ 163,397 $ 25,148 $ 434,295 Separate account assets $ 80,240 $ 50,585 $ — $ 130,825 Separate account liabilities $ 80,240 $ 50,585 $ — $ 130,825 Year Ended December 31, 2016 U.S. MetLife Holdings Corporate Total Adjustments Total (In millions) Revenues Premiums $ 17,921 $ 4,411 $ 61 $ 22,393 $ — $ 22,393 Universal life and investment-type product policy fees 988 1,236 216 2,440 102 2,542 Net investment income 6,075 5,606 (67 ) 11,614 (531 ) 11,083 Other revenues 750 110 618 1,478 — 1,478 Net investment gains (losses) — — — — 132 132 Net derivative gains (losses) — — — — (1,138 ) (1,138 ) Total revenues 25,734 11,363 828 37,925 (1,435 ) 36,490 Expenses Policyholder benefits and claims and policyholder dividends 18,968 7,244 130 26,342 171 26,513 Interest credited to policyholder account balances 1,297 907 32 2,236 (3 ) 2,233 Capitalization of DAC (60 ) (267 ) (5 ) (332 ) — (332 ) Amortization of DAC and VOBA 56 675 56 787 (346 ) 441 Interest expense on debt 10 7 95 112 — 112 Other expenses 2,770 1,850 825 5,445 137 5,582 Total expenses 23,041 10,416 1,133 34,590 (41 ) 34,549 Provision for income tax expense (benefit) 963 274 (551 ) 686 (487 ) 199 Adjusted earnings $ 1,730 $ 673 $ 246 2,649 Adjustments to: Total revenues (1,435 ) Total expenses 41 Provision for income tax (expense) benefit 487 Net income (loss) $ 1,742 $ 1,742 At December 31, 2016 U.S. MetLife Holdings Corporate Total (In millions) Total assets $ 247,555 $ 163,024 $ 21,982 $ 432,561 Separate account assets $ 85,854 $ 47,982 $ — $ 133,836 Separate account liabilities $ 85,854 $ 47,982 $ — $ 133,836 Year Ended December 31, 2015 U.S. MetLife Holdings Corporate Total Adjustments Total (In millions) Revenues Premiums $ 17,340 $ 4,527 $ 67 $ 21,934 $ — $ 21,934 Universal life and investment-type product policy fees 941 1,294 249 2,484 100 2,584 Net investment income 6,011 5,890 94 11,995 (456 ) 11,539 Other revenues 729 135 672 1,536 — 1,536 Net investment gains (losses) — — — — 259 259 Net derivative gains (losses) — — — — 881 881 Total revenues 25,021 11,846 1,082 37,949 784 38,733 Expenses Policyholder benefits and claims and policyholder dividends 18,415 7,207 125 25,747 64 25,811 Interest credited to policyholder account balances 1,212 933 34 2,179 4 2,183 Capitalization of DAC (71 ) (409 ) (2 ) (482 ) — (482 ) Amortization of DAC and VOBA 59 527 44 630 112 742 Interest expense on debt 5 4 113 122 — 122 Other expenses 2,724 1,825 1,324 5,873 3 5,876 Total expenses 22,344 10,087 1,638 34,069 183 34,252 Provision for income tax expense (benefit) 961 556 37 1,554 209 1,763 Adjusted earnings $ 1,716 $ 1,203 $ (593 ) 2,326 Adjustments to: Total revenues 784 Total expenses (183 ) Provision for income tax (expense) benefit (209 ) Net income (loss) $ 2,718 $ 2,718 |
Premiums, Universal Life and Investment-Type Policy Fees and Other Revenue by Product Groups for Reportable Segment | The following table presents total premiums, universal life and investment-type product policy fees and other revenues by major product groups of the Company’s segments, as well as Corporate & Other: Years Ended December 31, 2017 2016 2015 (In millions) Life insurance $ 13,139 $ 13,907 $ 13,811 Accident & health insurance 7,933 7,889 7,475 Annuities 5,390 4,379 4,548 Non-insurance 260 238 220 Total $ 26,722 $ 26,413 $ 26,054 |
Insurance (Tables)
Insurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Insurance Liabilities | Insurance liabilities, including affiliated insurance liabilities on reinsurance assumed and ceded, are comprised of future policy benefits, policyholder account balances and other policy-related balances. Information regarding insurance liabilities by segment, as well as Corporate & Other, was as follows at: December 31, 2017 2016 (In millions) U.S. $ 131,224 $ 124,877 MetLife Holdings 89,012 89,874 Corporate & Other 294 337 Total $ 220,530 $ 215,088 |
Liabilities for Guarantees | Information regarding the liabilities for guarantees (excluding base policy liabilities and embedded derivatives) relating to annuity and universal and variable life contracts was as follows: Annuity Contracts Universal and Variable GMDBs GMIBs Secondary Paid-Up Total (In millions) Direct: Balance at January 1, 2015 $ 196 $ 458 $ 541 $ 82 $ 1,277 Incurred guaranteed benefits 37 80 86 9 212 Paid guaranteed benefits (1 ) — — — (1 ) Balance at December 31, 2015 232 538 627 91 1,488 Incurred guaranteed benefits 55 63 92 11 221 Paid guaranteed benefits (1 ) — — — (1 ) Dispositions (1) (18 ) (134 ) (99 ) — (251 ) Balance at December 31, 2016 268 467 620 102 1,457 Incurred guaranteed benefits 58 112 105 7 282 Paid guaranteed benefits — — — — — Balance at December 31, 2017 $ 326 $ 579 $ 725 $ 109 $ 1,739 Ceded: Balance at January 1, 2015 $ 37 $ 24 $ 305 $ 57 $ 423 Incurred guaranteed benefits 14 2 49 6 71 Paid guaranteed benefits (1 ) — — — (1 ) Balance at December 31, 2015 50 26 354 63 493 Incurred guaranteed benefits 13 (8 ) (8 ) 8 5 Paid guaranteed benefits (1 ) — — — (1 ) Dispositions (1) (18 ) (39 ) (97 ) — (154 ) Balance at December 31, 2016 44 (21 ) 249 71 343 Incurred guaranteed benefits (44 ) 21 23 5 5 Paid guaranteed benefits — — — — — Balance at December 31, 2017 $ — $ — $ 272 $ 76 $ 348 Net: Balance at January 1, 2015 $ 159 $ 434 $ 236 $ 25 $ 854 Incurred guaranteed benefits 23 78 37 3 141 Paid guaranteed benefits — — — — — Balance at December 31, 2015 182 512 273 28 995 Incurred guaranteed benefits 42 71 100 3 216 Paid guaranteed benefits — — — — — Dispositions (1) — (95 ) (2 ) — (97 ) Balance at December 31, 2016 224 488 371 31 1,114 Incurred guaranteed benefits 102 91 82 2 277 Paid guaranteed benefits — — — — — Balance at December 31, 2017 $ 326 $ 579 $ 453 $ 33 $ 1,391 ______________ (1) See Note 3 . |
Fund Groupings | Account balances of contracts with guarantees were invested in separate account asset classes as follows at: December 31, 2017 2016 (In millions) Fund Groupings: Equity $ 21,464 $ 19,929 Balanced 19,443 18,833 Bond 3,798 3,882 Money Market 57 64 Total $ 44,762 $ 42,708 |
Guarantees related to Annuity, Universal and Variable Life Contracts | Information regarding the Company’s guarantee exposure, which includes direct business, but excludes offsets from hedging or reinsurance, if any, was as follows at: December 31, 2017 2016 In the Event of Death At Annuitization In the Event of Death At Annuitization (Dollars in millions) Annuity Contracts (1): Variable Annuity Guarantees: Total account value (2) $ 56,136 $ 25,257 $ 54,629 $ 24,310 Separate account value $ 45,431 $ 24,336 $ 43,359 $ 23,330 Net amount at risk $ 990 (3 ) $ 353 (4 ) $ 1,386 (3 ) $ 328 (4 ) Average attained age of contractholders 66 years 65 years 65 years 64 years Other Annuity Guarantees: Total account value (2) N/A $ 141 N/A $ 141 Net amount at risk N/A $ 92 (5 ) N/A $ 92 (5 ) Average attained age of contractholders N/A 52 years N/A 52 years December 31, 2017 2016 Secondary Guarantees Paid-Up Guarantees Secondary Guarantees Paid-Up Guarantees (Dollars in millions) Universal and Variable Life Contracts (1): Total account value (2) $ 4,679 $ 977 $ 4,306 $ 1,014 Net amount at risk (6) $ 46,704 $ 6,713 $ 49,161 $ 7,164 Average attained age of policyholders 54 years 62 years 53 years 62 years ______________ (1) The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. (2) Includes the contractholder’s investments in the general account and separate account, if applicable. (3) 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. (4) 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. (5) 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. (6) 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. |
Schedule of Federal Home Loan Bank, common stock holdings, by branch of FHLB Bank | Metropolitan Life Insurance Company is a member of the Federal Home Loan Bank (“FHLB”) of New York. Holdings of common stock of the FHLB of New York, included in equity securities, were $733 million and $748 million at December 31, 2017 and 2016 , respectively. |
Schedule of liability recorded and collateral pledged for funding agreements | The Company has also entered into funding agreements with the FHLB of New York and a subsidiary of the Federal Agricultural Mortgage Corporation, a federally chartered instrumentality of the U.S. (“Farmer Mac”). The liability for such funding agreements is included in policyholder account balances. Information related to such funding agreements was as follows at: Liability Collateral December 31, 2017 2016 2017 2016 (In millions) FHLB of New York (1) $ 14,445 $ 14,445 $ 16,605 (2) $ 16,828 (2) Farmer Mac (3) $ 2,550 $ 2,550 $ 2,644 $ 2,645 __________________ (1) Represents funding agreements issued to the FHLB of New York in exchange for cash and for which the FHLB of New York has been granted a lien on certain assets, some of which are in the custody of the FHLB of New York, including residential mortgage-backed securities (“RMBS”), to collateralize obligations under advances evidenced by funding agreements. The Company is permitted to withdraw any portion of the collateral in the custody of the FHLB of New York as long as there is no event of default and the remaining qualified collateral is sufficient to satisfy the collateral maintenance level. Upon any event of default by the Company, the FHLB of New York’s recovery on the collateral is limited to the amount of the Company’s liability to the FHLB of New York. (2) Advances are collateralized by mortgage-backed securities. The amount of collateral presented is at estimated fair value. (3) Represents funding agreements issued to a subsidiary of Farmer Mac, as well as certain SPEs that have issued debt securities for which payment of interest and principal is secured by such funding agreements, and such debt securities are also guaranteed as to payment of interest and principal by Farmer Mac. The obligations under these funding agreements are secured by a pledge of certain eligible agricultural mortgage loans and may, under certain circumstances, be secured by other qualified collateral. The amount of collateral presented is at carrying value. Invested assets on deposit 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: December 31, 2017 2016 (In millions) Invested assets on deposit (regulatory deposits) $ 49 $ 47 Invested assets pledged as collateral (1) 20,775 20,750 Total invested assets on deposit and pledged as collateral $ 20,824 $ 20,797 __________________ (1) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4 ), derivative transactions (see Note 9 ) and secured debt (See Note 11 ). |
Liabilities for Unpaid Claims and Claim Expenses | Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows: Years Ended December 31, 2017 2016 (1) 2015 (2) (In millions) Balance at December 31 of prior period $ 11,621 $ 7,527 $ 7,310 Less: Reinsurance recoverables 1,251 273 286 Net balance at December 31 of prior period 10,370 7,254 7,024 Cumulative adjustment (3) — 3,277 — Net balance at January 1, 10,370 10,531 7,024 Incurred related to: Current year 16,264 15,978 5,316 Prior years (4) 175 322 13 Total incurred 16,439 16,300 5,329 Paid related to: Current year (12,212 ) (12,454 ) (3,415 ) Prior years (3,908 ) (3,905 ) (1,684 ) Total paid (16,120 ) (16,359 ) (5,099 ) Dispositions (5) — (102 ) — Net balance at December 31, 10,689 10,370 7,254 Add: Reinsurance recoverables 1,401 1,251 273 Balance at December 31, $ 12,090 $ 11,621 $ 7,527 ______________ (1) In addition to the revisions discussed in Note 1 , at December 31, 2016, the Net balance decreased by $712 million and the Reinsurance recoverables increased by $712 million from those amounts previously reported primarily to correct for the improper classification of reinsurance recoverables. (2) Limited to group accident and non-medical health policies and contracts. (3) Reflects the accumulated adjustment, net of reinsurance, upon implementation of the new short-duration contracts guidance which clarified the requirement to include claim information for long-duration contracts. The accumulated adjustment primarily reflects unpaid claim liabilities, net of reinsurance, for long-duration contracts as of the beginning of the period presented. Prior periods have not been restated. See Note 1 . (4) During 2017 , as a result of changes in estimates of insured events in the respective prior year, claims and claim adjustment expenses associated with prior years increased due to events incurred in prior years but reported during current year . During 2016 , as a result of changes in estimates of insured events in the respective prior year, claims and claim adjustment expenses associated with prior years increased due to the implementation of new guidance related to short- duration contracts. (5) See Note 3 . |
Short-duration Insurance Contracts, Claims Development | Group Life - Term Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance At December 31, 2017 For the Years Ended December 31, Total IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims (Unaudited) Incurral Year 2011 2012 2013 2014 2015 2016 2017 (Dollars in millions) 2011 $ 6,318 $ 6,290 $ 6,293 $ 6,269 $ 6,287 $ 6,295 $ 6,294 $ 1 207,301 2012 6,503 6,579 6,569 6,546 6,568 6,569 3 208,626 2013 6,637 6,713 6,719 6,720 6,730 15 210,643 2014 6,986 6,919 6,913 6,910 5 210,797 2015 7,040 7,015 7,014 12 211,597 2016 7,125 7,085 21 206,610 2017 7,432 898 186,954 Total 48,034 Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance (46,136 ) All outstanding liabilities for incurral years prior to 2011, net of reinsurance 5 Total unpaid claims and claim adjustment expenses, net of reinsurance $ 1,903 Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, (Unaudited) Incurral Year 2011 2012 2013 2014 2015 2016 2017 (In millions) 2011 $ 4,982 $ 6,194 $ 6,239 $ 6,256 $ 6,281 $ 6,290 $ 6,292 2012 5,132 6,472 6,518 6,532 6,558 6,565 2013 5,216 6,614 6,664 6,678 6,711 2014 5,428 6,809 6,858 6,869 2015 5,524 6,913 6,958 2016 5,582 6,980 2017 5,761 Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance $ 46,136 Group Long-Term Disability Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance At December 31, 2017 For the Years Ended December 31, Total IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims (Unaudited) Incurral Year 2011 2012 2013 2014 2015 2016 2017 (Dollars in millions) 2011 $ 955 $ 916 $ 894 $ 914 $ 924 $ 923 $ 918 $ — 21,642 2012 966 979 980 1,014 1,034 1,037 — 20,085 2013 1,008 1,027 1,032 1,049 1,070 — 21,123 2014 1,076 1,077 1,079 1,101 — 22,838 2015 1,082 1,105 1,093 4 21,136 2016 1,131 1,139 26 17,585 2017 1,244 585 9,258 Total 7,602 Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance (3,006 ) All outstanding liabilities for incurral years prior to 2011, net of reinsurance 2,539 Total unpaid claims and claim adjustment expenses, net of reinsurance $ 7,135 Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, (Unaudited) Incurral Year 2011 2012 2013 2014 2015 2016 2017 (In millions) 2011 $ 44 $ 217 $ 337 $ 411 $ 478 $ 537 $ 588 2012 43 229 365 453 524 591 2013 43 234 382 475 551 2014 51 266 428 526 2015 50 264 427 2016 49 267 2017 56 Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance $ 3,006 |
Short-duration Insurance Contracts, Schedule of Historical Claims Duration | The following is supplementary information about average historical claims duration as of December 31, 2017 : Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 Group Life - Term 78.3 % 20.0 % 0.7 % 0.2 % 0.4 % 0.1 % — % The following is supplementary information about average historical claims duration as of December 31, 2017 : Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 Group Long-Term Disability 4.4 % 18.8 % 13.9 % 8.5 % 7.1 % 6.4 % 5.6 % |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | The reconciliation of the net incurred and paid claims development tables to the liability for unpaid claims and claims adjustment expenses on the consolidated balance sheet was as follows at: December 31, 2017 (In millions) Short-Duration: Unpaid claims and allocated claims adjustment expenses, net of reinsurance: U.S.: Group Life - Term $ 1,903 Group Long-Term Disability 7,135 Total $ 9,038 Other insurance lines - all segments combined 504 Total unpaid claims and allocated claims adjustment expenses, net of reinsurance 9,542 Reinsurance recoverables on unpaid claims: U.S.: Group Life - Term 16 Group Long-Term Disability 95 Total 111 Other insurance lines - all segments combined 29 Total reinsurance recoverable on unpaid claims 140 Total unpaid claims and allocated claims adjustment expense 9,682 Discounting (1,272 ) Liability for unpaid claims and claim adjustment liabilities - short-duration 8,410 Liability for unpaid claims and claim adjustment liabilities - all long-duration lines 3,680 Total liability for unpaid claims and claim adjustment expense (included in future policy benefits and other policy-related balances) $ 12,090 |
Deferred Policy Acquisition C33
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | |
Schedule of Deferred Policy Acquisition Costs and Value of Business Acquired | Information regarding DAC and VOBA was as follows: Years Ended December 31, 2017 2016 2015 (In millions) DAC: Balance at January 1, $ 4,714 $ 5,977 $ 5,905 Capitalizations 61 332 482 Amortization related to: Net investment gains (losses) and net derivative gains (losses) 91 353 (111 ) Other expenses (331 ) (791 ) (624 ) Total amortization (240 ) (438 ) (735 ) Unrealized investment gains (losses) (215 ) (12 ) 325 Dispositions (1) — (1,145 ) — Balance at December 31, 4,320 4,714 5,977 VOBA: Balance at January 1, 29 66 70 Amortization related to: Other expenses (1 ) (3 ) (7 ) Total amortization (1 ) (3 ) (7 ) Unrealized investment gains (losses) — 13 3 Dispositions (1) — (47 ) — Balance at December 31, 28 29 66 Total DAC and VOBA: Balance at December 31, $ 4,348 $ 4,743 $ 6,043 _________________ (1) See Note 3. |
Schedule of Deferred Policy Acquisition Costs and Value of Business Acquired | Information regarding DAC and VOBA was as follows: Years Ended December 31, 2017 2016 2015 (In millions) DAC: Balance at January 1, $ 4,714 $ 5,977 $ 5,905 Capitalizations 61 332 482 Amortization related to: Net investment gains (losses) and net derivative gains (losses) 91 353 (111 ) Other expenses (331 ) (791 ) (624 ) Total amortization (240 ) (438 ) (735 ) Unrealized investment gains (losses) (215 ) (12 ) 325 Dispositions (1) — (1,145 ) — Balance at December 31, 4,320 4,714 5,977 VOBA: Balance at January 1, 29 66 70 Amortization related to: Other expenses (1 ) (3 ) (7 ) Total amortization (1 ) (3 ) (7 ) Unrealized investment gains (losses) — 13 3 Dispositions (1) — (47 ) — Balance at December 31, 28 29 66 Total DAC and VOBA: Balance at December 31, $ 4,348 $ 4,743 $ 6,043 _________________ (1) See Note 3. |
Information regarding Deferred Policy Acquisition Costs and Value of Business Acquired by Segment | Information regarding total DAC and VOBA by segment, as well as Corporate & Other, was as follows at: December 31, 2017 2016 (In millions) U.S. $ 413 $ 421 MetLife Holdings 3,930 4,317 Corporate & Other 5 5 Total $ 4,348 $ 4,743 |
Deferred Sales Inducements of Business Acquired | Information regarding other intangibles was as follows: Years Ended December 31, 2017 2016 2015 (In millions) DSI: Balance at January 1, $ 105 $ 130 $ 122 Capitalization 1 4 8 Amortization (8 ) (16 ) (21 ) Unrealized investment gains (losses) (5 ) 1 21 Dispositions (1) $ — $ (14 ) $ — Balance at December 31, $ 93 $ 105 $ 130 VODA and VOCRA: Balance at January 1, $ 235 $ 265 $ 295 Amortization (28 ) (30 ) (30 ) Balance at December 31, $ 207 $ 235 $ 265 Accumulated amortization $ 250 $ 222 $ 192 ______________ (1) See Note 3. |
Value of Distribution Agreements and Customer Relationships Acquired | Information regarding other intangibles was as follows: Years Ended December 31, 2017 2016 2015 (In millions) DSI: Balance at January 1, $ 105 $ 130 $ 122 Capitalization 1 4 8 Amortization (8 ) (16 ) (21 ) Unrealized investment gains (losses) (5 ) 1 21 Dispositions (1) $ — $ (14 ) $ — Balance at December 31, $ 93 $ 105 $ 130 VODA and VOCRA: Balance at January 1, $ 235 $ 265 $ 295 Amortization (28 ) (30 ) (30 ) Balance at December 31, $ 207 $ 235 $ 265 Accumulated amortization $ 250 $ 222 $ 192 ______________ (1) See Note 3. |
Estimated Future Amortization Expense | The estimated future amortization expense to be reported in other expenses for the next five years was as follows: VOBA VODA and VOCRA (In millions) 2018 $ 2 $ 26 2019 $ 2 $ 24 2020 $ 2 $ 22 2021 $ 2 $ 19 2022 $ 2 $ 17 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosure [Line Items] | |
Effects of reinsurance | The amounts on the consolidated balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows at: December 31, 2017 2016 Direct Assumed Ceded Total Direct Assumed Ceded Total Balance Sheet (In millions) Assets Premiums, reinsurance and other receivables $ 2,491 $ 448 $ 19,159 $ 22,098 $ 2,212 $ 620 $ 19,551 $ 22,383 Deferred policy acquisition costs and value of business acquired 4,581 17 (250 ) 4,348 4,977 55 (289 ) 4,743 Total assets $ 7,072 $ 465 $ 18,909 $ 26,446 $ 7,189 $ 675 $ 19,262 $ 27,126 Liabilities Future policy benefits $ 118,077 $ 1,342 $ (4 ) $ 119,415 $ 113,883 $ 1,640 $ (4 ) $ 115,519 Policyholder account balances 93,758 181 — 93,939 91,889 577 — 92,466 Other policy-related balances 6,914 247 15 7,176 6,727 358 18 7,103 Other liabilities 8,498 2,242 16,669 27,409 10,735 2,229 16,533 29,497 Total liabilities $ 227,247 $ 4,012 $ 16,680 $ 247,939 $ 223,234 $ 4,804 $ 16,547 $ 244,585 The amounts on the consolidated statements of operations include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Premiums Direct premiums $ 23,062 $ 21,931 $ 21,497 Reinsurance assumed 1,116 1,687 1,679 Reinsurance ceded (1,253 ) (1,225 ) (1,242 ) Net premiums $ 22,925 $ 22,393 $ 21,934 Universal life and investment-type product policy fees Direct universal life and investment-type product policy fees $ 2,492 $ 3,006 $ 3,050 Reinsurance assumed 12 60 58 Reinsurance ceded (277 ) (524 ) (524 ) Net universal life and investment-type product policy fees $ 2,227 $ 2,542 $ 2,584 Other revenues Direct other revenues $ 930 $ 851 $ 875 Reinsurance assumed 35 (2 ) 5 Reinsurance ceded 605 629 656 Net other revenues $ 1,570 $ 1,478 $ 1,536 Policyholder benefits and claims Direct policyholder benefits and claims $ 26,199 $ 25,248 $ 24,561 Reinsurance assumed 875 1,496 1,454 Reinsurance ceded (1,282 ) (1,431 ) (1,468 ) Net policyholder benefits and claims $ 25,792 $ 25,313 $ 24,547 Interest credited to policyholder account balances Direct interest credited to policyholder account balances $ 2,199 $ 2,279 $ 2,240 Reinsurance assumed 49 35 33 Reinsurance ceded (13 ) (81 ) (90 ) Net interest credited to policyholder account balances $ 2,235 $ 2,233 $ 2,183 Other expenses Direct other expenses $ 4,489 $ 4,830 $ 5,448 Reinsurance assumed 138 583 340 Reinsurance ceded 508 390 470 Net other expenses $ 5,135 $ 5,803 $ 6,258 |
Affiliated Entity | |
Reinsurance Disclosure [Line Items] | |
Effects of reinsurance | Information regarding the significant effects of affiliated reinsurance included on the consolidated statements of operations was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Premiums Reinsurance assumed $ 122 $ 727 $ 701 Reinsurance ceded (132 ) (45 ) (40 ) Net premiums $ (10 ) $ 682 $ 661 Universal life and investment-type product policy fees Reinsurance assumed $ 12 $ 60 $ 58 Reinsurance ceded (19 ) (138 ) (141 ) Net universal life and investment-type product policy fees $ (7 ) $ (78 ) $ (83 ) Other revenues Reinsurance assumed $ 37 $ (1 ) $ 5 Reinsurance ceded 563 575 607 Net other revenues $ 600 $ 574 $ 612 Policyholder benefits and claims Reinsurance assumed $ 69 $ 697 $ 652 Reinsurance ceded (122 ) (110 ) (106 ) Net policyholder benefits and claims $ (53 ) $ 587 $ 546 Interest credited to policyholder account balances Reinsurance assumed $ 47 $ 34 $ 32 Reinsurance ceded (13 ) (81 ) (90 ) Net interest credited to policyholder account balances $ 34 $ (47 ) $ (58 ) Other expenses Reinsurance assumed $ 40 $ 490 $ 245 Reinsurance ceded 600 570 578 Net other expenses $ 640 $ 1,060 $ 823 Information regarding the significant effects of affiliated reinsurance included on the consolidated balance sheets was as follows at: December 31, 2017 2016 Assumed Ceded Assumed Ceded (In millions) Assets Premiums, reinsurance and other receivables $ 47 $ 12,762 $ 229 $ 13,334 Deferred policy acquisition costs and value of business acquired — (180 ) 38 (198 ) Total assets $ 47 $ 12,582 $ 267 $ 13,136 Liabilities Future policy benefits $ 380 $ (4 ) $ 663 $ (4 ) Policyholder account balances 166 — 563 — Other policy-related balances 104 15 212 18 Other liabilities 1,858 12,970 1,853 13,065 Total liabilities $ 2,508 $ 12,981 $ 3,291 $ 13,079 |
Closed Block (Tables)
Closed Block (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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: December 31, 2017 2016 (In millions) Closed Block Liabilities Future policy benefits $ 40,463 $ 40,834 Other policy-related balances 222 257 Policyholder dividends payable 437 443 Policyholder dividend obligation 2,121 1,931 Current income tax payable — 4 Other liabilities 212 196 Total closed block liabilities 43,455 43,665 Assets Designated to the Closed Block Investments: Fixed maturity securities available-for-sale, at estimated fair value 27,904 27,220 Equity securities available-for-sale, at estimated fair value 70 100 Mortgage loans 5,878 5,935 Policy loans 4,548 4,553 Real estate and real estate joint ventures 613 655 Other invested assets 731 1,246 Total investments 39,744 39,709 Accrued investment income 477 467 Premiums, reinsurance and other receivables; cash and cash equivalents 14 86 Current income tax recoverable 35 — Deferred income tax assets 36 177 Total assets designated to the closed block 40,306 40,439 Excess of closed block liabilities over assets designated to the closed block 3,149 3,226 Amounts included in AOCI: Unrealized investment gains (losses), net of income tax 1,863 1,517 Unrealized gains (losses) on derivatives, net of income tax (7 ) 95 Allocated to policyholder dividend obligation, net of income tax (1,379 ) (1,255 ) Total amounts included in AOCI 477 357 Maximum future earnings to be recognized from closed block assets and liabilities $ 3,626 $ 3,583 |
Closed block policyholder dividend obligation | Information regarding the closed block policyholder dividend obligation was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Balance at January 1, $ 1,931 $ 1,783 $ 3,155 Change in unrealized investment and derivative gains (losses) 190 148 (1,372 ) Balance at December 31, $ 2,121 $ 1,931 $ 1,783 |
Closed block revenues and expenses | Information regarding the closed block revenues and expenses was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Revenues Premiums $ 1,736 $ 1,804 $ 1,850 Net investment income 1,818 1,902 1,982 Net investment gains (losses) 1 (10 ) (23 ) Net derivative gains (losses) (32 ) 25 27 Total revenues 3,523 3,721 3,836 Expenses Policyholder benefits and claims 2,453 2,563 2,564 Policyholder dividends 976 953 1,015 Other expenses 125 133 143 Total expenses 3,554 3,649 3,722 Revenues, net of expenses before provision for income tax expense (benefit) (31 ) 72 114 Provision for income tax expense (benefit) 12 24 41 Revenues, net of expenses and provision for income tax expense (benefit) $ (43 ) $ 48 $ 73 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Fixed Maturity and Equity Securities Available-for-Sale | The following table presents the fixed maturity and equity securities AFS by sector. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities and non-redeemable preferred stock is reported within equity securities. Included within fixed maturity securities are structured securities including RMBS, ABS and commercial mortgage-backed securities (“CMBS”) (collectively, “Structured Securities”). December 31, 2017 December 31, 2016 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Temporary Losses OTTI Losses (1) Gains Temporary Losses OTTI Losses (1) (In millions) Fixed maturity securities: U.S. corporate $ 53,291 $ 5,037 $ 238 $ — $ 58,090 $ 52,665 $ 4,079 $ 586 $ — $ 56,158 U.S. government and agency 35,021 3,755 231 — 38,545 32,834 3,238 457 — 35,615 Foreign corporate 24,367 1,655 426 — 25,596 24,596 957 1,196 — 24,357 RMBS 21,735 1,039 181 (41 ) 22,634 22,786 911 290 (10 ) 23,417 ABS 7,808 73 15 — 7,866 7,567 32 95 — 7,504 State and political subdivision 6,310 1,245 3 1 7,551 6,252 928 44 — 7,136 CMBS 5,390 124 26 — 5,488 4,876 118 59 — 4,935 Foreign government 3,887 641 26 — 4,502 3,565 507 74 — 3,998 Total fixed maturity securities $ 157,809 $ 13,569 $ 1,146 $ (40 ) $ 170,272 $ 155,141 $ 10,770 $ 2,801 $ (10 ) $ 163,120 Equity securities: Common stock $ 1,190 $ 75 $ 14 $ — $ 1,251 $ 1,220 $ 91 $ 12 $ — $ 1,299 Non-redeemable preferred stock 389 21 3 — 407 565 14 39 — 540 Total equity securities $ 1,579 $ 96 $ 17 $ — $ 1,658 $ 1,785 $ 105 $ 51 $ — $ 1,839 __________________ (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).” |
Available-for-sale fixed maturity securities contractual maturity date | The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at December 31, 2017 : Due in One Year or Less Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Structured Securities Total Fixed Maturity Securities (In millions) Amortized cost $ 6,372 $ 34,198 $ 30,434 $ 51,872 $ 34,933 $ 157,809 Estimated fair value $ 6,362 $ 35,197 $ 32,042 $ 60,683 $ 35,988 $ 170,272 |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position at: December 31, 2017 December 31, 2016 Less than 12 Months Equal to or Greater Less than 12 Months Equal to or Greater Estimated Gross Estimated Gross Estimated Gross Estimated Gross (Dollars in millions) Fixed maturity securities: U.S. corporate $ 3,727 $ 57 $ 2,523 $ 181 $ 8,406 $ 337 $ 2,260 $ 249 U.S. government and agency 13,905 76 3,018 155 6,032 457 — — Foreign corporate 1,677 43 3,912 383 5,343 336 4,523 860 RMBS 3,673 30 3,332 110 6,662 187 1,707 93 ABS 732 3 358 12 1,482 12 1,714 83 State and political subdivision 106 1 120 3 943 43 17 1 CMBS 844 6 193 20 922 15 432 44 Foreign government 247 6 265 20 581 26 309 48 Total fixed maturity securities $ 24,911 $ 222 $ 13,721 $ 884 $ 30,371 $ 1,413 $ 10,962 $ 1,378 Equity securities: Common stock $ 88 $ 14 $ 2 $ — $ 58 $ 12 $ 10 $ — Non-redeemable preferred stock 42 — 41 3 139 6 120 33 Total equity securities $ 130 $ 14 $ 43 $ 3 $ 197 $ 18 $ 130 $ 33 Total number of securities in an unrealized loss position 1,327 1,108 3,076 940 |
Disclosure of Mortgage Loans Net of Valuation Allowance | Mortgage loans are summarized as follows at: December 31, 2017 2016 Carrying % of Carrying % of (Dollars in millions) Mortgage loans: Commercial $ 35,440 60.6 % $ 34,008 60.1 % Agricultural 12,712 21.8 12,358 21.9 Residential 10,058 17.2 9,895 17.5 Subtotal (1) 58,210 99.6 56,261 99.5 Valuation allowances (271 ) (0.5 ) (267 ) (0.5 ) Subtotal mortgage loans, net 57,939 99.1 55,994 99.0 Residential — FVO 520 0.9 566 1.0 Total mortgage loans, net $ 58,459 100.0 % $ 56,560 100.0 % __________________ (1) Purchases of mort gage loans, primarily residential, were $3.1 billion and $2.9 billion for the years ended December 31, 2017 and 2016 , respectively. |
Allowance for Loan and Lease Losses, Provision for Loss, Net | The changes in the valuation allowance, by portfolio segment, were as follows: Commercial Agricultural Residential Total (In millions) Balance at January 1, 2015 $ 182 $ 35 $ 41 $ 258 Provision (release) 2 2 30 34 Charge-offs, net of recoveries (19 ) — (16 ) (35 ) Balance at December 31, 2015 165 37 55 257 Provision (release) 6 1 23 30 Charge-offs, net of recoveries — — (16 ) (16 ) Dispositions (1) (4 ) — — (4 ) Balance at December 31, 2016 167 38 62 267 Provision (release) 6 4 8 18 Charge-offs, net of recoveries — (2 ) (12 ) (14 ) Balance at December 31, 2017 $ 173 $ 40 $ 58 $ 271 ________________ (1) See Note 3 . |
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 December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 (In millions) Commercial $ — $ — $ — $ — $ — $ — Agricultural 134 127 125 104 36 23 Residential 444 332 — — 444 332 Total $ 578 $ 459 $ 125 $ 104 $ 480 $ 355 |
Investment in leveraged leases | Investment in leveraged and direct financing leases consisted of the following at: December 31, 2017 2016 Leveraged Leases Direct Financing Leases Leveraged Leases Direct Financing Leases (In millions) Rental receivables, net $ 911 $ 278 $ 1,171 $ 300 Estimated residual values 649 42 690 42 Subtotal 1,560 320 1,861 342 Unearned income (448 ) (113 ) (572 ) (127 ) Investment in leases, net of non-recourse debt $ 1,112 $ 207 $ 1,289 $ 215 |
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: Years Ended December 31, 2017 2016 2015 (In millions) Fixed maturity securities $ 12,349 $ 7,912 $ 7,331 Fixed maturity securities with noncredit OTTI losses included in AOCI 40 10 (39 ) Total fixed maturity securities 12,389 7,922 7,292 Equity securities 119 72 27 Derivatives 1,396 2,244 2,208 Other 1 16 137 Subtotal 13,905 10,254 9,664 Amounts allocated from: Future policy benefits (19 ) (9 ) (7 ) DAC and VOBA related to noncredit OTTI losses recognized in AOCI — (1 ) — DAC, VOBA and DSI (790 ) (569 ) (572 ) Policyholder dividend obligation (2,121 ) (1,931 ) (1,783 ) Subtotal (2,930 ) (2,510 ) (2,362 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI (14 ) (3 ) 14 Deferred income tax benefit (expense) (3,704 ) (2,690 ) (2,542 ) Net unrealized investment gains (losses) 7,257 5,051 4,774 Net unrealized investment gains (losses) attributable to noncontrolling interests — — (1 ) Net unrealized investment gains (losses) attributable to Metropolitan Life $ 7,257 $ 5,051 $ 4,773 The changes in net unrealized investment gains (losses) were as follows: Years Ended December 31, 2017 2016 2015 (In millions) Balance at January 1, $ 5,051 $ 4,773 $ 7,273 Fixed maturity securities on which noncredit OTTI losses have been recognized 30 49 27 Unrealized investment gains (losses) during the year 3,621 541 (7,580 ) Unrealized investment gains (losses) relating to: Future policy benefits (10 ) (2 ) 1,957 DAC and VOBA related to noncredit OTTI losses recognized in AOCI 1 (1 ) 3 DAC, VOBA and DSI (221 ) 3 346 Policyholder dividend obligation (190 ) (148 ) 1,372 Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI (11 ) (17 ) (11 ) Deferred income tax benefit (expense) (1,014 ) (148 ) 1,386 Net unrealized investment gains (losses) 7,257 5,050 4,773 Net unrealized investment gains (losses) attributable to noncontrolling interests — 1 — Balance at December 31, $ 7,257 $ 5,051 $ 4,773 Change in net unrealized investment gains (losses) $ 2,206 $ 277 $ (2,500 ) Change in net unrealized investment gains (losses) attributable to noncontrolling interests — 1 — Change in net unrealized investment gains (losses) attributable to Metropolitan Life Insurance Company $ 2,206 $ 278 $ (2,500 ) |
Securities Lending | Elements of the securities lending program are presented below at: December 31, 2017 2016 (In millions) Securities on loan: (1) Amortized cost $ 13,887 $ 15,694 Estimated fair value $ 14,852 $ 16,496 Cash collateral received from counterparties (2) $ 15,170 $ 16,807 Security collateral received from counterparties (3) $ 11 $ 14 Reinvestment portfolio — estimated fair value $ 15,188 $ 16,821 __________________ (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: December 31, 2017 December 31, 2016 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 $ 2,927 $ 5,279 $ 6,964 $ 15,170 $ 4,033 $ 5,640 $ 7,134 $ 16,807 __________________ (1) The related loaned security could be returned to the Company on the next business day, which would require the Company to immediately return the cash collateral. |
Invested Assets on Deposit, Held in Trust and Pledged as Collateral | The Company has also entered into funding agreements with the FHLB of New York and a subsidiary of the Federal Agricultural Mortgage Corporation, a federally chartered instrumentality of the U.S. (“Farmer Mac”). The liability for such funding agreements is included in policyholder account balances. Information related to such funding agreements was as follows at: Liability Collateral December 31, 2017 2016 2017 2016 (In millions) FHLB of New York (1) $ 14,445 $ 14,445 $ 16,605 (2) $ 16,828 (2) Farmer Mac (3) $ 2,550 $ 2,550 $ 2,644 $ 2,645 __________________ (1) Represents funding agreements issued to the FHLB of New York in exchange for cash and for which the FHLB of New York has been granted a lien on certain assets, some of which are in the custody of the FHLB of New York, including residential mortgage-backed securities (“RMBS”), to collateralize obligations under advances evidenced by funding agreements. The Company is permitted to withdraw any portion of the collateral in the custody of the FHLB of New York as long as there is no event of default and the remaining qualified collateral is sufficient to satisfy the collateral maintenance level. Upon any event of default by the Company, the FHLB of New York’s recovery on the collateral is limited to the amount of the Company’s liability to the FHLB of New York. (2) Advances are collateralized by mortgage-backed securities. The amount of collateral presented is at estimated fair value. (3) Represents funding agreements issued to a subsidiary of Farmer Mac, as well as certain SPEs that have issued debt securities for which payment of interest and principal is secured by such funding agreements, and such debt securities are also guaranteed as to payment of interest and principal by Farmer Mac. The obligations under these funding agreements are secured by a pledge of certain eligible agricultural mortgage loans and may, under certain circumstances, be secured by other qualified collateral. The amount of collateral presented is at carrying value. Invested assets on deposit 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: December 31, 2017 2016 (In millions) Invested assets on deposit (regulatory deposits) $ 49 $ 47 Invested assets pledged as collateral (1) 20,775 20,750 Total invested assets on deposit and pledged as collateral $ 20,824 $ 20,797 __________________ (1) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4 ), derivative transactions (see Note 9 ) and secured debt (See Note 11 ). |
Purchased credit impaired investments, by invested asset class, held | The following table presents activity for the accretable yield on PCI investments: Years Ended December 31, 2017 2016 Fixed Maturity Securities (In millions) Accretable yield, January 1, $ 1,678 $ 1,784 Investments purchased 6 438 Accretion recognized in earnings (273 ) (277 ) Disposals (42 ) (138 ) Reclassification (to) from nonaccretable difference 102 (129 ) Accretable yield, December 31, $ 1,471 $ 1,678 The Company’s PCI investments were as follows at: December 31, 2017 2016 Fixed Maturity Securities (In millions) Outstanding principal and interest balance (1) $ 4,607 $ 5,859 Carrying value (2) $ 3,825 $ 4,598 __________________ (1) Represents the contractually required payments, which include contractual principal, whether or not currently due, and accrued interest. (2) Estimated fair value plus accrued interest. The following table presents information about PCI investments acquired during the periods indicated: Years Ended December 31, 2017 2016 Fixed Maturity Securities (In millions) Contractually required payments (including interest) $ 107 $ 1,831 Cash flows expected to be collected (1) $ 78 $ 1,644 Fair value of investments acquired $ 72 $ 1,206 __________________ (1) Represents undiscounted principal and interest cash flow expectations at the date of acquisition. |
The Components of Net Investment Income | The components of net investment income were as follows: Years Ended December 31, 2017 2016 2015 (In millions) Investment income: Fixed maturity securities $ 7,057 $ 7,653 $ 7,930 Equity securities 97 90 91 Mortgage loans 2,647 2,539 2,514 Policy loans 310 404 435 Real estate and real estate joint ventures 446 488 743 Other limited partnership interests 625 413 519 Cash, cash equivalents and short-term investments 74 43 25 Operating joint venture 19 9 9 Other 133 207 149 Subtotal 11,408 11,846 12,415 Less: Investment expenses 895 763 876 Net investment income $ 10,513 $ 11,083 $ 11,539 |
The components of net investment gains (losses) | The components of net investment gains (losses) were as follows: Years Ended December 31, 2017 2016 2015 (In millions) Total gains (losses) on fixed maturity securities: Total OTTI losses recognized — by sector and industry: U.S. and foreign corporate securities — by industry: Consumer $ (5 ) $ — $ (21 ) Industrial — (58 ) — Utility — (20 ) (15 ) Communications — (3 ) — Total U.S. and foreign corporate securities (5 ) (81 ) (36 ) RMBS — (16 ) (17 ) State and political subdivision (1 ) — (1 ) OTTI losses on fixed maturity securities recognized in earnings (6 ) (97 ) (54 ) Fixed maturity securities — net gains (losses) on sales and disposals 23 169 (114 ) Total gains (losses) on fixed maturity securities 17 72 (168 ) Total gains (losses) on equity securities: Total OTTI losses recognized — by sector: Common stock (23 ) (75 ) (37 ) Non-redeemable preferred stock (1 ) — — OTTI losses on equity securities recognized in earnings (24 ) (75 ) (37 ) Equity securities — net gains (losses) on sales and disposals 7 19 — Total gains (losses) on equity securities (17 ) (56 ) (37 ) Mortgage loans (34 ) (20 ) (90 ) Real estate and real estate joint ventures 607 142 430 Other limited partnership interests (52 ) (59 ) (66 ) Other (115 ) (32 ) (18 ) Subtotal 406 47 51 Non-investment portfolio gains (losses) (72 ) 85 208 Total net investment gains (losses) $ 334 $ 132 $ 259 |
Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains and losses | Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains (losses) were as shown in the table below. Years Ended December 31, 2017 2016 2015 2017 2016 2015 Fixed Maturity Securities Equity Securities (In millions) Proceeds $ 34,483 $ 58,812 $ 60,957 $ 738 $ 146 $ 105 Gross investment gains $ 278 $ 755 $ 584 $ 18 $ 28 $ 28 Gross investment losses (255 ) (586 ) (698 ) (11 ) (9 ) (28 ) OTTI losses (6 ) (97 ) (54 ) (24 ) (75 ) (37 ) Net investment gains (losses) $ 17 $ 72 $ (168 ) $ (17 ) $ (56 ) $ (37 ) |
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 OCI: Years Ended December 31, 2017 2016 (In millions) Balance at January 1, $ 157 $ 188 Additions: Initial impairments — credit loss OTTI on securities not previously impaired 1 1 Additional impairments — credit loss OTTI on securities previously impaired — 13 Reductions: Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI (47 ) (43 ) Securities impaired to net present value of expected future cash flows — (1 ) Increase in cash flows — accretion of previous credit loss OTTI (1 ) (1 ) Balance at December 31, $ 110 $ 157 |
Schedule of Invested Assets Transferred To and From Affiliates | The Company transfers invested assets, primarily consisting of fixed maturity securities, to and from affiliates. Invested assets transferred to and from affiliates were as follows: Years Ended December 31, 2017 2016 2015 (In millions) Estimated fair value of invested assets transferred to affiliates $ 453 $ 5,678 $ 1,003 Amortized cost of invested assets transferred to affiliates $ 416 $ 5,338 $ 941 Net investment gains (losses) recognized on transfers $ 37 $ 340 $ 62 Estimated fair value of invested assets transferred from affiliates $ 306 $ 1,583 $ 237 |
Schedule of Repurchase Agreements [Table Text Block] | Elements of the short-term repurchase agreements are presented below at: December 31, 2017 (In millions) Securities on loan: (1) Amortized cost $ 900 Estimated fair value $ 1,031 Cash collateral received from counterparties (2) $ 1,000 Reinvestment portfolio — estimated fair value $ 1,000 __________________ (1) Included within fixed maturity securities, short-term investments and cash equivalents. (2) Included within payables for collateral under securities loaned and other transactions. The cash collateral liability by loaned security type and remaining tenor of the agreements was as follows at: December 31, 2017 Remaining Tenor of Repurchase Agreements 1 Month or Less Total (In millions) Cash collateral liability by loaned security type: U.S. government and agency $ 1,000 $ 1,000 |
Mortgage Loans on Real Estate [Line Items] | |
Disclosure Of Mortgage Loans Held For Investment And Valuation Allowances By Method Of Evaluation Of Credit Loss [Table Text Block] | 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 and for the years ended: 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 Allowances Unpaid Principal Balance Recorded Investment Recorded Investment Valuation Allowances Carrying Value Average (In millions) December 31, 2017 Commercial $ — $ — $ — $ — $ — $ 35,440 $ 173 $ — $ 5 Agricultural 22 21 2 27 27 12,664 38 46 32 Residential — — — 358 324 9,734 58 324 285 Total $ 22 $ 21 $ 2 $ 385 $ 351 $ 57,838 $ 269 $ 370 $ 322 December 31, 2016 Commercial $ — $ — $ — $ 12 $ 12 $ 33,996 $ 167 $ 12 $ 30 Agricultural 11 9 1 27 27 12,322 37 35 49 Residential — — — 265 241 9,654 62 241 188 Total $ 11 $ 9 $ 1 $ 304 $ 280 $ 55,972 $ 266 $ 288 $ 267 |
Variable Interest Entity, Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities [Table Text Block] | Creditors or beneficial interest holders of VIEs where the Company is the 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 December 31, 2017 and 2016 . December 31, 2017 2016 Total Assets Total Liabilities Total Assets Total Liabilities (In millions) Real estate joint ventures (1) $ 1,077 $ — $ 1,124 $ — Renewable energy partnership (2) 116 3 — — Other investments (3) 32 6 62 12 Total $ 1,225 $ 9 $ 1,186 $ 12 __________________ (1) The Company consolidates certain affiliated real estate joint ventures. At both December 31, 2017 and 2016, the Company and its affiliates invested $1.0 billion and $85 million , respectively, in these affiliated real estate joint ventures. (2) Assets of the renewable energy partnership, primarily consisting of other invested assets, were consolidated in prior periods. As a result of the Separation and a reassessment in 2017, the renewable energy partnership was determined to be a consolidated VIE. (3) Other investments is comprised primarily of other invested assets. The Company consolidates entities that are structured as collateralized debt obligations. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. |
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: December 31, 2017 2016 Carrying Amount Maximum Exposure to Loss (1) Carrying Amount Maximum Exposure to Loss (1) (In millions) Fixed maturity securities AFS: Structured Securities (2) $ 34,284 $ 34,284 $ 34,912 $ 34,912 U.S. and foreign corporate 1,166 1,166 1,167 1,167 Other limited partnership interests 3,561 5,765 3,383 5,674 Other invested assets 2,172 2,506 2,089 2,666 Real estate joint ventures 38 43 81 95 Total $ 41,221 $ 43,764 $ 41,632 $ 44,514 __________________ (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 $117 million and $150 million at December 31, 2017 and 2016 , respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. |
Commercial | |
Mortgage Loans on Real Estate [Line Items] | |
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of commercial mortgage loans was as follows at: Recorded Investment Estimated % of Debt Service Coverage Ratios Total % of > 1.20x 1.00x - 1.20x < 1.00x (Dollars in millions) December 31, 2017 Loan-to-value ratios: Less than 65% $ 29,346 $ 1,359 $ 198 $ 30,903 87.2 % $ 31,563 87.5 % 65% to 75% 3,245 95 114 3,454 9.7 3,465 9.6 76% to 80% 149 171 57 377 1.1 363 1.0 Greater than 80% 400 159 147 706 2.0 665 1.9 Total $ 33,140 $ 1,784 $ 516 $ 35,440 100.0 % $ 36,056 100.0 % December 31, 2016 Loan-to-value ratios: Less than 65% $ 29,352 $ 1,036 $ 564 $ 30,952 91.0 % $ 31,320 91.2 % 65% to 75% 2,522 — 198 2,720 8.0 2,694 7.9 76% to 80% 116 — — 116 0.3 115 0.3 Greater than 80% 118 27 75 220 0.7 214 0.6 Total $ 32,108 $ 1,063 $ 837 $ 34,008 100.0 % $ 34,343 100.0 % |
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: December 31, 2017 2016 Recorded % of Recorded % of (Dollars in millions) Loan-to-value ratios: Less than 65% $ 12,082 95.0 % $ 11,829 95.7 % 65% to 75% 581 4.6 424 3.4 76% to 80% 40 0.3 17 0.2 Greater than 80% 9 0.1 88 0.7 Total $ 12,712 100.0 % $ 12,358 100.0 % |
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: December 31, 2017 2016 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Performance indicators: Performing $ 9,614 95.6 % $ 9,563 96.6 % Nonperforming 444 4.4 332 3.4 Total $ 10,058 100.0 % $ 9,895 100.0 % |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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: Primary Underlying Risk Exposure December 31, 2017 2016 Estimated Fair Value Estimated Fair Value Gross Notional Amount Assets Liabilities Gross Notional Amount Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments: Fair value hedges: Interest rate swaps Interest rate $ 3,826 $ 2,289 $ 3 $ 4,993 $ 2,221 $ 6 Foreign currency swaps Foreign currency exchange rate 1,082 47 17 1,200 29 224 Subtotal 4,908 2,336 20 6,193 2,250 230 Cash flow hedges: Interest rate swaps Interest rate 3,337 234 — 1,793 325 26 Interest rate forwards Interest rate 3,333 — 127 4,033 — 370 Foreign currency swaps Foreign currency exchange rate 22,287 795 1,078 20,080 1,435 1,604 Subtotal 28,957 1,029 1,205 25,906 1,760 2,000 Total qualifying hedges 33,865 3,365 1,225 32,099 4,010 2,230 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 43,028 1,722 336 32,662 2,514 879 Interest rate floors Interest rate 7,201 91 — 9,001 173 2 Interest rate caps Interest rate 53,079 78 2 78,358 112 3 Interest rate futures Interest rate 2,257 1 2 2,342 3 — Interest rate options Interest rate 7,525 142 11 850 144 1 Interest rate forwards Interest rate — — — 396 — 3 Interest rate total return swaps Interest rate 1,048 8 2 1,549 2 127 Synthetic GICs Interest rate 11,318 — — 5,566 — — Foreign currency swaps Foreign currency exchange rate 6,739 547 164 8,175 1,247 58 Foreign currency forwards Foreign currency exchange rate 961 16 7 1,396 52 18 Credit default swaps — purchased Credit 980 7 8 961 12 6 Credit default swaps — written Credit 7,874 181 — 8,025 119 8 Equity futures Equity market 1,282 5 1 1,851 10 — Equity index options Equity market 14,408 384 476 11,119 260 426 Equity variance swaps Equity market 3,530 45 169 5,579 69 193 Equity total return swaps Equity market 1,077 — 39 1,013 1 42 Total non-designated or nonqualifying derivatives 162,307 3,227 1,217 168,843 4,718 1,766 Total $ 196,172 $ 6,592 $ 2,442 $ 200,942 $ 8,728 $ 3,996 |
Components of Net Derivatives Gains (Losses) | The components of net derivative gains (losses) were as follows: Years Ended December 31, 2017 2016 2015 (In millions) Freestanding derivatives and hedging gains (losses) (1) $ (771 ) $ (715 ) $ 463 Embedded derivatives gains (losses) 427 (423 ) 418 Total net derivative gains (losses) $ (344 ) $ (1,138 ) $ 881 __________________ (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. |
Earned Income On Derivatives And Income Statement Location | The following table presents earned income on derivatives: Years Ended December 31, 2017 2016 2015 (In millions) Qualifying hedges: Net investment income $ 302 $ 280 $ 227 Interest credited to policyholder account balances (64 ) (1 ) 28 Nonqualifying hedges: Net investment income — (1 ) (5 ) Net derivative gains (losses) 406 577 518 Policyholder benefits and claims 5 4 2 Total $ 649 $ 859 $ 770 |
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 Benefits and Claims (2) (In millions) Year Ended December 31, 2017 Interest rate derivatives $ (343 ) $ 1 $ — Foreign currency exchange rate derivatives (746 ) — — Credit derivatives — purchased (16 ) — — Credit derivatives — written 102 — — Equity derivatives (536 ) (6 ) (216 ) Total $ (1,539 ) $ (5 ) $ (216 ) Year Ended December 31, 2016 Interest rate derivatives $ (1,088 ) $ — $ — Foreign currency exchange rate derivatives 726 — — Credit derivatives — purchased (23 ) — — Credit derivatives — written 48 — — Equity derivatives (457 ) (14 ) (94 ) Total $ (794 ) $ (14 ) $ (94 ) Year Ended December 31, 2015 Interest rate derivatives $ (243 ) $ — $ — Foreign currency exchange rate derivatives 678 — — Credit derivatives — purchased 17 (3 ) — Credit derivatives — written (57 ) — — Equity derivatives (152 ) (11 ) — Total $ 243 $ (14 ) $ — __________________ (1) Changes in estimated fair value related to economic hedges of equity method investments in joint ventures and derivatives held in relation to trading portfolios. As of December 31 , 2016, the Company no longer maintained a trading portfolio for derivatives. (2) Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits. |
Net derivatives gains (losses) recognized on fair value derivatives and the related hedged items | The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges within net derivative gains (losses). The following table presents the amount of such net derivative gains (losses): Derivatives in Fair Value Hedged Items in Fair Value Net Derivative Net Derivative Ineffectiveness (In millions) Year Ended December 31, 2017 Interest rate swaps: Fixed maturity securities $ 4 $ (5 ) $ (1 ) Policyholder liabilities (1) (69 ) 134 65 Foreign currency swaps: Foreign-denominated fixed maturity securities (24 ) 27 3 Foreign-denominated policyholder account balances (2) 65 (43 ) 22 Total $ (24 ) $ 113 $ 89 Year Ended December 31, 2016 Interest rate swaps: Fixed maturity securities $ 8 $ (9 ) $ (1 ) Policyholder liabilities (1) (109 ) 90 (19 ) Foreign currency swaps: Foreign-denominated fixed maturity securities 10 (9 ) 1 Foreign-denominated policyholder account balances (2) (95 ) 92 (3 ) Total $ (186 ) $ 164 $ (22 ) Year Ended December 31, 2015 Interest rate swaps: Fixed maturity securities $ 4 $ — $ 4 Policyholder liabilities (1) (4 ) (6 ) (10 ) Foreign currency swaps: Foreign-denominated fixed maturity securities 14 (5 ) 9 Foreign-denominated policyholder account balances (2) (240 ) 231 (9 ) Total $ (226 ) $ 220 $ (6 ) __________________ (1) Fixed rate liabilities reported in policyholder account balances or future policy benefits. (2) Fixed rate or floating rate liabilities. |
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: December 31, 2017 2016 Rating Agency Designation of Referenced Estimated Maximum Amount of Future Payments under Credit Default Swaps Weighted Estimated Maximum Amount of Future Payments under Credit Default Swaps Weighted ( Dollars in millions) Aaa/Aa/A Single name credit default swaps (3) $ 3 $ 159 2.8 $ 1 $ 229 2.7 Credit default swaps referencing indices 42 2,193 2.7 32 2,093 3.5 Subtotal 45 2,352 2.7 33 2,322 3.4 Baa Single name credit default swaps (3) 4 416 1.5 3 563 2.2 Credit default swaps referencing indices 111 4,761 5.2 61 4,730 5.1 Subtotal 115 5,177 4.9 64 5,293 4.8 Ba Single name credit default swaps (3) 1 105 3.4 (2 ) 115 4.2 Credit default swaps referencing indices — — — — — — Subtotal 1 105 3.4 (2 ) 115 4.2 B Single name credit default swaps (3) 2 20 3.5 — 70 1.8 Credit default swaps referencing indices 18 220 5.0 16 225 5.0 Subtotal 20 240 4.9 16 295 4.2 Total $ 181 $ 7,874 4.2 $ 111 $ 8,025 4.4 __________________ (1) The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), 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 | 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: December 31, 2017 2016 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) $ 6,478 $ 2,203 $ 7,926 $ 3,349 OTC-cleared (1), (6) 168 216 905 611 Exchange-traded 6 3 13 — Total gross estimated fair value of derivatives (1) 6,652 2,422 8,844 3,960 Amounts offset on the consolidated balance sheets — — — — Estimated fair value of derivatives presented on the consolidated balance sheets (1), (6) 6,652 2,422 8,844 3,960 Gross amounts not offset on the consolidated balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral (1,891 ) (1,891 ) (2,737 ) (2,737 ) OTC-cleared (31 ) (31 ) (391 ) (391 ) Exchange-traded — — — — Cash collateral: (3), (4) OTC-bilateral (3,448 ) — (3,418 ) — OTC-cleared (131 ) (179 ) (497 ) (217 ) Exchange-traded — — — — Securities collateral: (5) OTC-bilateral (954 ) (312 ) (1,560 ) (609 ) OTC-cleared — (6 ) — — Exchange-traded — (3 ) — — Net amount after application of master netting agreements and collateral $ 197 $ — $ 241 $ 6 __________________ (1) At December 31, 2017 and 2016 , derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $60 million and $116 million , respectively, and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of ($20) million and ($36) 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 December 31, 2017 and 2016 , the Company received excess cash collateral of $122 million and $77 million , respectively, and provided excess cash collateral of $9 million and $9 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 December 31, 2017 , 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 December 31, 2017 and 2016 , the Company received excess securities collateral with an estimated fair value of $30 million and $21 million , respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At December 31, 2017 and 2016 , the Company provided excess securities collateral with an estimated fair value of $152 million and $75 million , respectively, for its OTC-bilateral derivatives, and $299 million and $531 million , respectively, for its OTC-cleared derivatives, and $50 million and $116 million , respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation. (6) Effective January 3, 2017, the CME 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 CME 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 consolidated statements of operations and the consolidated statements of equity: Derivatives in Cash Flow Hedging Relationships Amount of Gains (Losses)Deferred in AOCI on Derivatives Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) Amount and Location (Effective Portion) (Effective Portion) (Ineffective Portion) Net Derivative Net Investment Income Net Derivative (In millions) Year Ended December 31, 2017 Interest rate swaps $ 73 $ 24 $ 16 $ 18 Interest rate forwards 210 (11 ) 2 (2 ) Foreign currency swaps (161 ) 938 (1 ) — Credit forwards — 1 1 — Total $ 122 $ 952 $ 18 $ 16 Year Ended December 31, 2016 Interest rate swaps $ 58 $ 57 $ 12 $ — Interest rate forwards (366 ) (1 ) 3 — Foreign currency swaps 167 (251 ) (1 ) — Credit forwards — 3 1 — Total $ (141 ) $ (192 ) $ 15 $ — Year Ended December 31, 2015 Interest rate swaps $ 76 $ 83 $ 11 $ 2 Interest rate forwards (3 ) 4 2 — Foreign currency swaps (92 ) (679 ) (1 ) 7 Credit forwards — 1 1 — Total $ (19 ) $ (591 ) $ 13 $ 9 |
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 Metropolitan Life Insurance Company would be required to provide if there was a one-notch downgrade in its financial strength or credit rating, as applicable, at the reporting date or if its financial strength or credit 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. December 31, 2017 2016 Derivatives Subject to Financial Strength- Contingent Provisions Derivatives Not Subject to Financial Strength- Contingent Provisions Total Derivatives Subject to Financial Strength- Contingent Provisions Derivatives Not Subject to Financial Strength- Contingent Provisions Total (In millions) Estimated Fair Value of Derivatives in a Net Liability Position (1) $ 313 $ — $ 313 $ 612 $ — $ 612 Estimated Fair Value of Collateral Provided: Fixed maturity securities $ 399 $ — $ 399 $ 684 $ — $ 684 Cash $ — $ — $ — $ — $ — $ — Estimated Fair Value of Incremental Collateral Provided Upon: One-notch downgrade in financial strength or credit rating, as applicable $ — $ — $ — $ — $ — $ — Downgrade in financial strength or credit rating, as applicable, to a level that triggers full overnight collateralization or termination of the derivative position $ — $ — $ — $ — $ — $ — __________________ (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: Years Ended December 31, 2017 2016 2015 (In millions) Net derivative gains (losses) (1), (2) $ 427 $ (423 ) $ 418 __________________ (1) The valuation of direct and assumed guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were ($65) million , $76 million and $29 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. In addition, the valuation of ceded guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were less than $1 million , ($29) million and ($4) million for the years ended December 31, 2017 , 2016 and 2015 , respectively. (2) See Note 6 for discussion of affiliated net derivative gains (losses). |
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: December 31, Balance Sheet Location 2017 2016 (In millions) Embedded derivatives within asset host contracts: Ceded guaranteed minimum benefits Premiums, reinsurance and other receivables $ — $ 460 Options embedded in debt or equity securities Investments (113 ) (78 ) Embedded derivatives within asset host contracts $ (113 ) $ 382 Embedded derivatives within liability host contracts: Direct guaranteed minimum benefits Policyholder account balances $ (94 ) $ 169 Assumed guaranteed minimum benefits Policyholder account balances 3 390 Funds withheld on ceded reinsurance Other liabilities 898 777 Fixed annuities with equity indexed returns Policyholder account balances 69 17 Embedded derivatives within liability host contracts $ 876 $ 1,353 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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: December 31, 2017 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated Fair Value (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 54,629 $ 3,461 $ 58,090 U.S. government and agency 18,802 19,743 — 38,545 Foreign corporate — 21,471 4,125 25,596 RMBS — 19,372 3,262 22,634 ABS — 7,079 787 7,866 State and political subdivision — 7,551 — 7,551 CMBS — 5,461 27 5,488 Foreign government — 4,471 31 4,502 Total fixed maturity securities 18,802 139,777 11,693 170,272 Equity securities 399 893 366 1,658 Short-term investments 2,056 1,092 7 3,155 Residential mortgage loans — FVO — — 520 520 Derivative assets: (1) Interest rate 1 4,556 8 4,565 Foreign currency exchange rate — 1,405 — 1,405 Credit — 149 39 188 Equity market 5 363 66 434 Total derivative assets 6 6,473 113 6,592 Embedded derivatives within asset host contracts (2) — — — — Separate account assets (3) 23,571 106,294 960 130,825 Total assets $ 44,834 $ 254,529 $ 13,659 $ 313,022 Liabilities Derivative liabilities: (1) Interest rate $ 2 $ 351 $ 130 $ 483 Foreign currency exchange rate — 1,261 5 1,266 Credit — 8 — 8 Equity market 1 515 169 685 Total derivative liabilities 3 2,135 304 2,442 Embedded derivatives within liability host contracts (2) — — 876 876 Long-term debt — — — — Separate account liabilities (3) — 7 2 9 Total liabilities $ 3 $ 2,142 $ 1,182 $ 3,327 December 31, 2016 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated Fair Value (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 51,303 $ 4,855 $ 56,158 U.S. government and agency 17,597 18,018 — 35,615 Foreign corporate — 20,373 3,984 24,357 RMBS — 19,719 3,698 23,417 ABS — 6,745 759 7,504 State and political subdivision — 7,126 10 7,136 CMBS — 4,851 84 4,935 Foreign government — 3,977 21 3,998 Total fixed maturity securities 17,597 132,112 13,411 163,120 Equity securities 408 1,011 420 1,839 Short-term investments 2,945 1,720 25 4,690 Residential mortgage loans — FVO — — 566 566 Derivative assets: (1) Interest rate 3 5,489 2 5,494 Foreign currency exchange rate — 2,763 — 2,763 Credit — 101 30 131 Equity market 10 226 104 340 Total derivative assets 13 8,579 136 8,728 Embedded derivatives within asset host contracts (2) — — 460 460 Separate account assets (3) 27,633 105,055 1,148 133,836 Total assets $ 48,596 $ 248,477 $ 16,166 $ 313,239 Liabilities Derivative liabilities: (1) Interest rate $ — $ 917 $ 500 $ 1,417 Foreign currency exchange rate — 1,902 2 1,904 Credit — 14 — 14 Equity market — 468 193 661 Total derivative liabilities — 3,301 695 3,996 Embedded derivatives within liability host contracts (2) — — 1,353 1,353 Long-term debt — — 74 74 Separate account liabilities (3) — 16 7 23 Total liabilities $ — $ 3,317 $ 2,129 $ 5,446 __________________ (1) Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables. (2) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables on the consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the consolidated balance sheets. At December 31, 2017 and 2016 , debt and equity securities also included embedded derivatives of ($113) million and ($78) million , respectively. (3) 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: December 31, 2017 December 31, 2016 Impact of Valuation Techniques Significant Unobservable Inputs Range Weighted Range Weighted Fixed maturity securities (3) U.S. corporate and foreign corporate • Matrix pricing • Offered quotes (4) 83 - 142 111 18 - 138 106 Increase • Market pricing • Quoted prices (4) 10 - 443 123 25 700 117 Increase RMBS • Market pricing • Quoted prices (4) — - 126 94 19 - 137 91 Increase (5) ABS • Market pricing • Quoted prices (4) 27 - 104 100 20 - 106 99 Increase (5) • Consensus pricing • Offered quotes (4) 100 - 101 100 98 - 100 100 Increase (5) Derivatives Interest rate • Present value techniques • Swap yield (6) 200 - 300 200 - 300 Increase (7) • Repurchase rates (8) (5) - 5 (44) - 18 Decrease (7) Foreign currency exchange rate • Present value techniques • Swap yield (6) (14) - (3) 50 - 236 Increase (7) Credit • Present value techniques • Credit spreads (9) — - — 97 - 98 Decrease (7) • Consensus pricing • Offered quotes (10) Equity market • Present value techniques or option pricing models • Volatility (11) 11% - 31% 14% - 32% Increase (7) • Correlation (12) 10% - 30% 40% - 40% Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing techniques • Mortality rates: Ages 0 - 40 0% - 0.09% 0% - 0.09% Decrease (13) Ages 41 - 60 0.04% - 0.65% 0.04% - 0.65% Decrease (13) Ages 61 - 115 0.26% - 100% 0.26% - 100% Decrease (13) • Lapse rates: Durations 1 - 10 0.25% - 100% 0.25% - 100% Decrease (14) Durations 11 - 20 3% - 100% 3% - 100% Decrease (14) Durations 21 - 116 3% - 100% 3% - 100% Decrease (14) • Utilization rates 0% - 25% 0% - 25% Increase (15) • Withdrawal rates 0.25% - 10% 0.25% - 10% (16) • Long-term equity volatilities 17.40% - 25% 17.40% - 25% Increase (17) • Nonperformance risk spread 0.02% - 0.44% 0.04% - 0.57% 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 December 31, 2017 and 2016 , 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: December 31, 2017 December 31, 2016 Impact of Valuation Techniques Significant Unobservable Inputs Range Weighted Range Weighted Fixed maturity securities (3) U.S. corporate and foreign corporate • Matrix pricing • Offered quotes (4) 83 - 142 111 18 - 138 106 Increase • Market pricing • Quoted prices (4) 10 - 443 123 25 700 117 Increase RMBS • Market pricing • Quoted prices (4) — - 126 94 19 - 137 91 Increase (5) ABS • Market pricing • Quoted prices (4) 27 - 104 100 20 - 106 99 Increase (5) • Consensus pricing • Offered quotes (4) 100 - 101 100 98 - 100 100 Increase (5) Derivatives Interest rate • Present value techniques • Swap yield (6) 200 - 300 200 - 300 Increase (7) • Repurchase rates (8) (5) - 5 (44) - 18 Decrease (7) Foreign currency exchange rate • Present value techniques • Swap yield (6) (14) - (3) 50 - 236 Increase (7) Credit • Present value techniques • Credit spreads (9) — - — 97 - 98 Decrease (7) • Consensus pricing • Offered quotes (10) Equity market • Present value techniques or option pricing models • Volatility (11) 11% - 31% 14% - 32% Increase (7) • Correlation (12) 10% - 30% 40% - 40% Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing techniques • Mortality rates: Ages 0 - 40 0% - 0.09% 0% - 0.09% Decrease (13) Ages 41 - 60 0.04% - 0.65% 0.04% - 0.65% Decrease (13) Ages 61 - 115 0.26% - 100% 0.26% - 100% Decrease (13) • Lapse rates: Durations 1 - 10 0.25% - 100% 0.25% - 100% Decrease (14) Durations 11 - 20 3% - 100% 3% - 100% Decrease (14) Durations 21 - 116 3% - 100% 3% - 100% Decrease (14) • Utilization rates 0% - 25% 0% - 25% Increase (15) • Withdrawal rates 0.25% - 10% 0.25% - 10% (16) • Long-term equity volatilities 17.40% - 25% 17.40% - 25% Increase (17) • Nonperformance risk spread 0.02% - 0.44% 0.04% - 0.57% 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 December 31, 2017 and 2016 , 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 and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Corporate (1) Structured Securities State and Foreign Equity Securities (In millions) Balance, January 1, 2016 $ 8,282 $ 4,416 $ 33 $ 275 $ 328 Total realized/unrealized gains (losses) included in net income (loss) (2) (3) — 100 1 — (24 ) Total realized/unrealized gains (losses) included in AOCI (39 ) 47 2 (1 ) 21 Purchases (4) 1,967 1,821 — 7 23 Sales (4) (1,226 ) (1,339 ) — (40 ) (15 ) Issuances (4) — — — — — Settlements (4) — — — — — Transfers into Level 3 (6) 848 18 7 — 282 Transfers out of Level 3 (6) (993 ) (522 ) (33 ) (220 ) (195 ) Balance, December 31, 2016 8,839 4,541 10 21 420 Total realized/unrealized gains (losses) included in net income (loss) (2) (3) (2 ) 95 — — — Total realized/unrealized gains (losses) included in AOCI 416 109 — — 17 Purchases (4) 2,451 900 — 19 14 Sales (4) (1,408 ) (1,282 ) — (2 ) (51 ) Issuances (4) — — — — — Settlements (4) — — — — — Transfers into Level 3 (6) 58 63 — — — Transfers out of Level 3 (6) (2,768 ) (350 ) (10 ) (7 ) (34 ) Balance, December 31, 2017 $ 7,586 $ 4,076 $ — $ 31 $ 366 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2015: (7) $ 7 $ 102 $ — $ 1 $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2016: (7) $ — $ 101 $ 1 $ — $ (29 ) Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2017: (7) $ (7 ) $ 83 $ — $ — $ (17 ) Gains (Losses) Data for the year ended December 31, 2015 Total realized/unrealized gains (losses) included in net income (loss) (2) (3) $ 38 $ 101 $ — $ 1 $ 12 Total realized/unrealized gains (losses) included in AOCI $ (399 ) $ (67 ) $ — $ (1 ) $ (53 ) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Short-term Investments Residential Mortgage Net Derivatives (8) Net Embedded Derivatives (9) Separate Long-term Debt (In millions) Balance, January 1, 2016 $ 200 $ 314 $ (23 ) $ 186 $ 1,520 $ (36 ) Total realized/unrealized gains (losses) included in net income (loss) (2) (3) (5) — 8 (168 ) (870 ) (2 ) — Total realized/unrealized gains (losses) included in AOCI — — (366 ) — — — Purchases (4) 28 297 27 — 375 — Sales (4) (3 ) (11 ) — — (474 ) — Issuances (4) — — — — 62 (46 ) Settlements (4) — (42 ) (29 ) (209 ) (51 ) 8 Transfers into Level 3 (6) — — — — 19 — Transfers out of Level 3 (6) (200 ) — — — (308 ) — Balance, December 31, 2016 25 566 (559 ) (893 ) 1,141 (74 ) Total realized/unrealized gains (losses) included in net income (loss) (2) (3) — 40 21 450 (8 ) — Total realized/unrealized gains (losses) included in AOCI — — 207 — — — Purchases (4) 6 175 — — 186 — Sales (4) — (179 ) — — (80 ) — Issuances (4) — — — — 1 — Settlements (4) — (82 ) 140 (433 ) (93 ) 34 Transfers into Level 3 (6) — — — — 35 — Transfers out of Level 3 (6) (24 ) — — — (224 ) 40 Balance, December 31, 2017 $ 7 $ 520 $ (191 ) $ (876 ) $ 958 $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2015: (7) $ — $ 20 $ (24 ) $ 461 $ — $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2016: (7) $ — $ 8 $ (166 ) $ (863 ) $ — $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2017: (7) $ — $ 27 $ (18 ) $ 452 $ — $ — Gains (Losses) Data for the year ended December 31, 2015 Total realized/unrealized gains (losses) included in net income (loss) (2) (3) $ — $ 20 $ (27 ) $ 447 $ 15 $ — Total realized/unrealized gains (losses) included in AOCI $ — $ — $ (2 ) $ — $ — $ — __________________ (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 derivatives 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. Sales for the year ended December 31, 2016 included financial instruments related to the disposition of NELICO and GALIC of $345 million for corporate securities, $117 million for Structured Securities, $38 million for foreign government securities and less than $1 million for equity securities. See Note 3. (5) Includes $420 million for net embedded derivatives for the year ended December 31, 2016 related to the disposition of NELICO and GALIC. See Note 3. (6) Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward. (7) Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses). (8) Freestanding derivative assets and liabilities are presented net for purposes of the rollforward. (9) Embedded derivative assets and liabilities are presented net for purposes of the rollforward. (10) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes are presented within net investment gains (losses). Separate account assets and liabilities are presented net for the purposes of the rollforward. |
Fair Value Option | Fair Value Option The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis. The following table presents information for residential mortgage loans which are accounted for under the FVO and were initially measured at fair value. December 31, 2017 2016 (In millions) Unpaid principal balance $ 650 $ 794 Difference between estimated fair value and unpaid principal balance (130 ) (228 ) Carrying value at estimated fair value $ 520 $ 566 Loans in nonaccrual status $ 198 $ 214 Loans more than 90 days past due $ 94 $ 137 Loans in nonaccrual status or more than 90 days past due, or both — difference between aggregate estimated fair value and unpaid principal balance $ (102 ) $ (150 ) |
Nonrecurring Fair Value Measurements | The following table presents information for assets measured at estimated fair value on a nonrecurring basis during the periods and still held at the reporting dates (for example, when there is evidence of impairment). The estimated fair values for these assets were determined using significant unobservable inputs (Level 3). At December 31, Years Ended December 31, 2017 2016 2015 2017 2016 2015 Carrying Value After Measurement Gains (Losses) (In millions) Other limited partnership interests (1) $ 58 $ 95 $ 57 $ (65 ) $ (59 ) $ (31 ) Other assets (2) $ — $ — $ — $ 4 $ (30 ) $ — __________________ (1) For these cost method investments, estimated fair value is determined from information provided on the financial statements of the underlying entities including NAV data. These investments include private equity and debt funds that typically invest primarily in various strategies including domestic and international leveraged buyout funds; power, energy, timber and infrastructure development funds; venture capital funds; and below investment grade debt and mezzanine debt funds. Distributions will be generated from investment gains, from operating income from the underlying investments of the funds and from liquidation of the underlying assets of the funds. The Company estimates that the underlying assets of the funds will be liquidated over the next two to 10 years . Unfunded commitments for these investments at both December 31, 2017 and 2016 were not significant. (2) During the year ended December 31, 2016, the Company recognized an impairment of computer software in connection with the sale to Massachusetts Mutual Life Insurance Company (“MassMutual”) of MetLife, Inc.’s U.S. retail advisor force and certain assets associated with the MetLife Premier Client Group, including all of the issued and outstanding shares of MetLife’s affiliated broker-dealer, MetLife Securities, Inc., a wholly-owned subsidiary of MetLife, Inc. (collectively, the “U.S. Retail Advisor Force Divestiture”). See Note 18 . |
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: December 31, 2017 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 57,939 $ — $ — $ 59,465 $ 59,465 Policy loans $ 6,006 $ — $ 261 $ 6,797 $ 7,058 Other limited partnership interests $ 214 $ — $ — $ 212 $ 212 Other invested assets $ 2,260 $ — $ 2,028 $ 154 $ 2,182 Premiums, reinsurance and other receivables $ 15,024 $ — $ 679 $ 14,859 $ 15,538 Liabilities Policyholder account balances $ 75,323 $ — $ — $ 76,452 $ 76,452 Long-term debt $ 1,661 $ — $ 2,021 $ — $ 2,021 Other liabilities $ 13,954 $ — $ 547 $ 13,490 $ 14,037 Separate account liabilities $ 61,757 $ — $ 61,757 $ — $ 61,757 December 31, 2016 Fair Value Hierarchy Carrying Value Level 1 Level 2 Level 3 Total Estimated Fair Value (In millions) Assets Mortgage loans $ 55,994 $ — $ — $ 57,171 $ 57,171 Policy loans $ 5,945 $ — $ 258 $ 6,695 $ 6,953 Other limited partnership interests $ 336 $ — $ — $ 362 $ 362 Other invested assets $ 2,263 $ — $ 2,151 $ 151 $ 2,302 Premiums, reinsurance and other receivables $ 14,888 $ — $ 368 $ 15,421 $ 15,789 Liabilities Policyholder account balances $ 72,944 $ — $ — $ 74,052 $ 74,052 Long-term debt $ 1,503 $ — $ 1,755 $ — $ 1,755 Other liabilities $ 14,731 $ — $ 894 $ 13,920 $ 14,814 Separate account liabilities $ 65,545 $ — $ 65,545 $ — $ 65,545 |
Long-term and Short-term Debt (
Long-term and Short-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term and Short-term debt outstanding | Long-term and short-term debt outstanding, excluding debt relating to CSEs, was as follows: December 31, Interest Rates (1) 2017 2016 Range Weighted Average Maturity Face Value Unamortized Discount and Issuance Costs Carrying Value Face Value Unamortized Discount and Issuance Costs Carrying Value (2) (In millions) Surplus notes - affiliated 7.38% - 7.38% 7.38% 2037 $ 700 $ (10 ) $ 690 $ 700 $ (10 ) $ 690 Surplus notes (2) 7.80% - 7.88% 7.83% 2024 - 2025 400 (3 ) 397 400 (3 ) 397 Other notes (3) 2.20% - 7.29% 4.56% 2018 - 2058 578 (4 ) 574 494 (4 ) 490 Total long-term debt 1,678 (17 ) 1,661 1,594 (17 ) 1,577 Total short-term debt 243 — 243 100 — 100 Total $ 1,921 $ (17 ) $ 1,904 $ 1,694 $ (17 ) $ 1,677 __________________ (1) Range of interest rates and weighted average interest rates are for the year ended December 31, 2017 . (2) In December 2016, the $107 million 7.625% surplus notes were deconsolidated due to the disposition of GALIC. See Note 3. (3) During 2017, a subsidiary issued $139 million of long-term debt to a third party. |
Schedule of Short-term Debt | Short-term debt with maturities of one year or less was as follows: December 31, 2017 2016 (Dollars in millions) Commercial paper $ 100 $ 100 Short-term borrowings (1) 143 — Total short-term debt $ 243 $ 100 Average daily balance $ 129 $ 100 Average days outstanding 97 days 40 days __________________ (1) Represents short-term debt related to repurchase agreements, secured by assets of a subsidiary. |
Schedule of Line of Credit Facilities | Information on the Credit Facility at December 31, 2017 was as follows: Borrower(s) Expiration Maximum Letters of Credit Used by the Company (1) Letters of Credit Used by Affiliates (1) Drawdowns Unused (In millions) MetLife, Inc. and MetLife Funding, Inc. December 2021 (2) $ 3,000 (2) $ 57 $ 73 $ — $ 2,870 __________________ (1) MetLife, Inc. and MetLife Funding are severally liable for their respective obligations under the Credit Facility. MetLife Funding was not an applicant under letters of credit outstanding as of December 31, 2017 and is not responsible for any reimbursement obligations under such letters of credit. (2) All borrowings under the Credit Facility must be repaid by December 20, 2021 , except that letters of credit outstanding upon termination may remain outstanding until December 20, 2022. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedules of statutory net income, capital and surplus and reserve strengthening by subsidiary] | Statutory net income (loss) was as follows: Years Ended December 31, Company State of Domicile 2017 2016 2015 (In millions) Metropolitan Life Insurance Company (1) New York $ 1,982 $ 3,444 $ 3,703 New England Life Insurance Company (1) Massachusetts N/A N/A $ 157 General American Life Insurance Company (1) Missouri N/A N/A $ 204 __________________ (1) In December 2016, Metropolitan Life Insurance Company distributed all of the issued and outstanding shares of common stock of each of NELICO and GALIC to MetLife, Inc., in the form of a non-cash extraordinary dividend. Statutory capital and surplus was as follows at: December 31, Company 2017 2016 (In millions) Metropolitan Life Insurance Company $ 10,384 $ 11,195 |
Dividend Payment Restrictions | The table below sets forth the dividends permitted to be paid by Metropolitan Life Insurance Company to MetLife, Inc. without insurance regulatory approval and dividends paid: 2018 2017 2016 Company Permitted Without Approval Paid (1) Paid (1) (2) (In millions) Metropolitan Life Insurance Company $ 3,075 $ 2,523 $ 5,740 __________________ (1) Reflects all amounts paid, including those requiring regulatory approval. (2) In 2016, Metropolitan Life Insurance Company paid an ordinary cash dividend to MetLife, Inc. in the amount of $3.6 billion . In a ddition, in December 2016, Metropolitan Life Insurance Company distributed to MetLife, Inc. as a non-cash extraordinary dividend all of the issued and outstanding shares of common stock of each of NELICO and GALIC in the amount of $981 million and $1.2 billion , respectively, as calculated on a statutory basis. |
Components of Accumulated Other Comprehensive Income (Loss) | Information regarding changes in the balances of each component of AOCI attributable to Metropolitan Life Insurance Company was as follows: 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 at December 31, 2014 $ 6,200 $ 1,073 $ (3 ) $ (2,236 ) $ 5,034 OCI before reclassifications (4,839 ) (19 ) (101 ) 113 (4,846 ) Deferred income tax benefit (expense) 1,715 6 30 (40 ) 1,711 AOCI before reclassifications, net of income tax 3,076 1,060 (74 ) (2,163 ) 1,899 Amounts reclassified from AOCI 405 578 — 229 1,212 Deferred income tax benefit (expense) (144 ) (202 ) — (80 ) (426 ) Amounts reclassified from AOCI, net of income tax 261 376 — 149 786 Balance at December 31, 2015 3,337 1,436 (74 ) (2,014 ) 2,685 OCI before reclassifications 792 (141 ) (11 ) (4 ) 636 Deferred income tax benefit (expense) (286 ) 49 3 (5 ) (239 ) AOCI before reclassifications, net of income tax 3,843 1,344 (82 ) (2,023 ) 3,082 Amounts reclassified from AOCI 71 177 — 191 439 Deferred income tax benefit (expense) (26 ) (62 ) — (60 ) (148 ) Amounts reclassified from AOCI, net of income tax 45 115 — 131 291 Dispositions (2) (456 ) — 23 30 (403 ) Deferred income tax benefit (expense) 160 — (8 ) (3 ) 149 Dispositions, net of income tax (296 ) — 15 27 (254 ) Balance at December 31, 2016 3,592 1,459 (67 ) (1,865 ) 3,119 OCI before reclassifications 3,977 122 26 (30 ) 4,095 Deferred income tax benefit (expense) (1,287 ) (43 ) (6 ) 11 (1,325 ) AOCI before reclassifications, net of income tax 6,282 1,538 (47 ) (1,884 ) 5,889 Amounts reclassified from AOCI 102 (970 ) — 159 (709 ) Deferred income tax benefit (expense) (33 ) 338 — (57 ) 248 Amounts reclassified from AOCI, net of income tax 69 (632 ) — 102 (461 ) Balance at December 31, 2017 $ 6,351 $ 906 $ (47 ) $ (1,782 ) $ 5,428 __________________ (1) See Note 8 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation. (2) See Note 3. |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Consolidated Statement of Operations Locations Years Ended December 31, 2017 2016 2015 (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ 12 $ 10 $ (208 ) Net investment gains (losses) Net unrealized investment gains (losses) 3 21 31 Net investment income Net unrealized investment gains (losses) (117 ) (102 ) (228 ) Net derivative gains (losses) Net unrealized investment gains (losses), before income tax (102 ) (71 ) (405 ) Income tax (expense) benefit 33 26 144 Net unrealized investment gains (losses), net of income tax (69 ) (45 ) (261 ) Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate swaps 24 57 83 Net derivative gains (losses) Interest rate swaps 16 12 11 Net investment income Interest rate forwards (11 ) (1 ) 4 Net derivative gains (losses) Interest rate forwards 2 3 2 Net investment income Foreign currency swaps 938 (251 ) (679 ) Net derivative gains (losses) Foreign currency swaps (1 ) (1 ) (1 ) Net investment income Credit forwards 1 3 1 Net derivative gains (losses) Credit forwards 1 1 1 Net investment income Gains (losses) on cash flow hedges, before income tax 970 (177 ) (578 ) Income tax (expense) benefit (338 ) 62 202 Gains (losses) on cash flow hedges, net of income tax 632 (115 ) (376 ) Defined benefit plans adjustment: (1) Amortization of net actuarial gains (losses) (179 ) (198 ) (233 ) Amortization of prior service (costs) credit 20 7 4 Amortization of defined benefit plan items, before income tax (159 ) (191 ) (229 ) Income tax (expense) benefit 57 60 80 Amortization of defined benefit plan items, net of income tax (102 ) (131 ) (149 ) Total reclassifications, net of income tax $ 461 $ (291 ) $ (786 ) __________________ (1) These AOCI components are included in the computation of net periodic benefit costs. See Note 14 . |
Other Expenses (Tables)
Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Expenses | Information on other expenses was as follows: Years Ended December 31, 2017 2016 2015 (In millions) General and administrative expenses $ 2,608 $ 2,598 $ 3,063 Pension, postretirement and postemployment benefit costs 167 251 241 Premium taxes, other taxes, and licenses & fees 273 367 358 Commissions and other variable expenses 1,801 2,366 2,214 Capitalization of DAC (61 ) (332 ) (482 ) Amortization of DAC and VOBA 241 441 742 Interest expense on debt 106 112 122 Total other expenses $ 5,135 $ 5,803 $ 6,258 |
Restructuring charges | Information regarding restructuring charges was as follows: Years Ended December 31, 2016 2015 Severance Lease and Asset Impairment Total Severance Lease and Asset Impairment Total (In millions) Balance at January 1, $ 17 $ 4 $ 21 $ 31 $ 6 $ 37 Restructuring charges — 1 1 52 4 56 Cash payments (17 ) (4 ) (21 ) (66 ) (6 ) (72 ) Balance at December 31, $ — $ 1 $ 1 $ 17 $ 4 $ 21 Total restructuring charges incurred since inception of initiative $ 306 $ 47 $ 353 $ 306 $ 46 $ 352 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Benefit Plan Obligations, Assets, Funded Status, Accumulated Other Comprehensive Income (Loss) and Accumulated Benefit Obligation | December 31, 2017 2016 Pension Other Postretirement Benefits Pension Other Postretirement Benefits (In millions) Change in benefit obligations: Benefit obligations at January 1, $ 9,837 $ 1,742 $ 9,760 $ 1,905 Service costs 169 6 203 9 Interest costs 415 75 415 82 Plan participants’ contributions — 33 — 33 Net actuarial (gains) losses 618 (96 ) 298 (119 ) Divestitures, settlements and curtailments (2) 3 2 (270 ) (8 ) Change in benefits and other — — (11 ) (43 ) Benefits paid (563 ) (106 ) (558 ) (117 ) Effect of foreign currency translation — — — — Benefit obligations at December 31, 10,479 1,656 9,837 1,742 Change in plan assets: Estimated fair value of plan assets at January 1, 8,721 1,379 8,490 1,372 Actual return on plan assets 947 124 620 75 Divestitures (2) — — (155 ) — Plan participants’ contributions — 33 — 33 Employer contributions 266 (4 ) 324 16 Benefits paid (563 ) (106 ) (558 ) (117 ) Estimated fair value of plan assets at December 31, 9,371 1,426 8,721 1,379 Over (under) funded status at December 31, $ (1,108 ) $ (230 ) $ (1,116 ) $ (363 ) Amounts recognized on the consolidated balance sheets: Other assets $ 55 $ 160 $ — $ — Other liabilities (1,163 ) (390 ) (1,116 ) (363 ) Net amount recognized $ (1,108 ) $ (230 ) $ (1,116 ) $ (363 ) AOCI: Net actuarial (gains) losses $ 2,831 $ (55 ) $ 2,839 $ 93 Prior service costs (credit) (10 ) (26 ) (11 ) (48 ) AOCI, before income tax $ 2,821 $ (81 ) $ 2,828 $ 45 Accumulated benefit obligation $ 10,180 N/A $ 9,557 N/A __________________ (1) Includes nonqualified unfunded plans, for which the aggregate PBO was $1.2 billion at December 31, 2017 and $1.1 billion at December 31, 2016 . (2) Divestitures for the year ended December 31, 2016 include amounts related to the disposition of NELICO and GALIC. See Note 3 . |
Benefit Plan Obligations, Assets, Funded Status, Accumulated Other Comprehensive Income (Loss) and Accumulated Benefit Obligation | December 31, 2017 2016 Pension Other Postretirement Benefits Pension Other Postretirement Benefits (In millions) Change in benefit obligations: Benefit obligations at January 1, $ 9,837 $ 1,742 $ 9,760 $ 1,905 Service costs 169 6 203 9 Interest costs 415 75 415 82 Plan participants’ contributions — 33 — 33 Net actuarial (gains) losses 618 (96 ) 298 (119 ) Divestitures, settlements and curtailments (2) 3 2 (270 ) (8 ) Change in benefits and other — — (11 ) (43 ) Benefits paid (563 ) (106 ) (558 ) (117 ) Effect of foreign currency translation — — — — Benefit obligations at December 31, 10,479 1,656 9,837 1,742 Change in plan assets: Estimated fair value of plan assets at January 1, 8,721 1,379 8,490 1,372 Actual return on plan assets 947 124 620 75 Divestitures (2) — — (155 ) — Plan participants’ contributions — 33 — 33 Employer contributions 266 (4 ) 324 16 Benefits paid (563 ) (106 ) (558 ) (117 ) Estimated fair value of plan assets at December 31, 9,371 1,426 8,721 1,379 Over (under) funded status at December 31, $ (1,108 ) $ (230 ) $ (1,116 ) $ (363 ) Amounts recognized on the consolidated balance sheets: Other assets $ 55 $ 160 $ — $ — Other liabilities (1,163 ) (390 ) (1,116 ) (363 ) Net amount recognized $ (1,108 ) $ (230 ) $ (1,116 ) $ (363 ) AOCI: Net actuarial (gains) losses $ 2,831 $ (55 ) $ 2,839 $ 93 Prior service costs (credit) (10 ) (26 ) (11 ) (48 ) AOCI, before income tax $ 2,821 $ (81 ) $ 2,828 $ 45 Accumulated benefit obligation $ 10,180 N/A $ 9,557 N/A __________________ (1) Includes nonqualified unfunded plans, for which the aggregate PBO was $1.2 billion at December 31, 2017 and $1.1 billion at December 31, 2016 . (2) Divestitures for the year ended December 31, 2016 include amounts related to the disposition of NELICO and GALIC. See Note 3 . |
Benefit Plan Obligations, Assets, Funded Status, Accumulated Other Comprehensive Income (Loss) and Accumulated Benefit Obligation | December 31, 2017 2016 Pension Other Postretirement Benefits Pension Other Postretirement Benefits (In millions) Change in benefit obligations: Benefit obligations at January 1, $ 9,837 $ 1,742 $ 9,760 $ 1,905 Service costs 169 6 203 9 Interest costs 415 75 415 82 Plan participants’ contributions — 33 — 33 Net actuarial (gains) losses 618 (96 ) 298 (119 ) Divestitures, settlements and curtailments (2) 3 2 (270 ) (8 ) Change in benefits and other — — (11 ) (43 ) Benefits paid (563 ) (106 ) (558 ) (117 ) Effect of foreign currency translation — — — — Benefit obligations at December 31, 10,479 1,656 9,837 1,742 Change in plan assets: Estimated fair value of plan assets at January 1, 8,721 1,379 8,490 1,372 Actual return on plan assets 947 124 620 75 Divestitures (2) — — (155 ) — Plan participants’ contributions — 33 — 33 Employer contributions 266 (4 ) 324 16 Benefits paid (563 ) (106 ) (558 ) (117 ) Estimated fair value of plan assets at December 31, 9,371 1,426 8,721 1,379 Over (under) funded status at December 31, $ (1,108 ) $ (230 ) $ (1,116 ) $ (363 ) Amounts recognized on the consolidated balance sheets: Other assets $ 55 $ 160 $ — $ — Other liabilities (1,163 ) (390 ) (1,116 ) (363 ) Net amount recognized $ (1,108 ) $ (230 ) $ (1,116 ) $ (363 ) AOCI: Net actuarial (gains) losses $ 2,831 $ (55 ) $ 2,839 $ 93 Prior service costs (credit) (10 ) (26 ) (11 ) (48 ) AOCI, before income tax $ 2,821 $ (81 ) $ 2,828 $ 45 Accumulated benefit obligation $ 10,180 N/A $ 9,557 N/A __________________ (1) Includes nonqualified unfunded plans, for which the aggregate PBO was $1.2 billion at December 31, 2017 and $1.1 billion at December 31, 2016 . (2) Divestitures for the year ended December 31, 2016 include amounts related to the disposition of NELICO and GALIC. See Note 3 . |
Accumulated benefit obligations in excess of fair value of plan assets | Information for pension plans with PBOs in excess of plan assets and accumulated benefit obligations (“ABO”) in excess of plan assets was as follows at: December 31, 2017 2016 2017 2016 PBO Exceeds Estimated Fair Value ABO Exceeds Estimated Fair Value (In millions) Projected benefit obligations $ 1,163 $ 9,837 $ 1,163 $ 1,093 Accumulated benefit obligations $ 1,116 $ 9,557 $ 1,116 $ 1,046 Estimated fair value of plan assets $ — $ 8,721 $ — $ — |
Defined benefit plan pension plans with projected benefit obligations in excess of plan assets | Information for pension plans with PBOs in excess of plan assets and accumulated benefit obligations (“ABO”) in excess of plan assets was as follows at: December 31, 2017 2016 2017 2016 PBO Exceeds Estimated Fair Value ABO Exceeds Estimated Fair Value (In millions) Projected benefit obligations $ 1,163 $ 9,837 $ 1,163 $ 1,093 Accumulated benefit obligations $ 1,116 $ 9,557 $ 1,116 $ 1,046 Estimated fair value of plan assets $ — $ 8,721 $ — $ — |
Net periodic benefit costs and other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | The components of net periodic benefit costs and other changes in plan assets and benefit obligations recognized in OCI were as follows: Years Ended December 31, 2017 2016 2015 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits (In millions) Net periodic benefit costs: Service costs $ 169 $ 6 $ 203 $ 9 $ 217 $ 15 Interest costs 415 75 415 82 404 88 Settlement and curtailment costs (1) 3 2 1 30 — — Expected return on plan assets (509 ) (72 ) (527 ) (74 ) (538 ) (80 ) Amortization of net actuarial (gains) losses 189 — 188 10 190 43 Amortization of prior service costs (credit) (1 ) (22 ) (1 ) (6 ) (1 ) (3 ) Allocated to affiliates (48 ) 1 (64 ) (9 ) (59 ) (18 ) Total net periodic benefit costs (credit) 218 (10 ) 215 42 213 45 Other changes in plan assets and benefit obligations recognized in OCI: Net actuarial (gains) losses 181 (148 ) 176 (121 ) 50 (156 ) Prior service costs (credit) — — (11 ) (40 ) — (7 ) Dispositions (2) — — (32 ) 2 — — Amortization of net actuarial (gains) losses (189 ) — (188 ) (10 ) (190 ) (43 ) Amortization of prior service (costs) credit 1 22 1 6 1 3 Total recognized in OCI (7 ) (126 ) (54 ) (163 ) (139 ) (203 ) Total recognized in net periodic benefit costs and OCI $ 211 $ (136 ) $ 161 $ (121 ) $ 74 $ (158 ) __________________ (1) The Company recognized curtailment charges in 2016 on certain postretirement benefit plans in connection with the U.S. Retail Advisor Force Divestiture See Note 18 . (2) See Note 3 . |
Net periodic benefit costs and other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | The components of net periodic benefit costs and other changes in plan assets and benefit obligations recognized in OCI were as follows: Years Ended December 31, 2017 2016 2015 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits (In millions) Net periodic benefit costs: Service costs $ 169 $ 6 $ 203 $ 9 $ 217 $ 15 Interest costs 415 75 415 82 404 88 Settlement and curtailment costs (1) 3 2 1 30 — — Expected return on plan assets (509 ) (72 ) (527 ) (74 ) (538 ) (80 ) Amortization of net actuarial (gains) losses 189 — 188 10 190 43 Amortization of prior service costs (credit) (1 ) (22 ) (1 ) (6 ) (1 ) (3 ) Allocated to affiliates (48 ) 1 (64 ) (9 ) (59 ) (18 ) Total net periodic benefit costs (credit) 218 (10 ) 215 42 213 45 Other changes in plan assets and benefit obligations recognized in OCI: Net actuarial (gains) losses 181 (148 ) 176 (121 ) 50 (156 ) Prior service costs (credit) — — (11 ) (40 ) — (7 ) Dispositions (2) — — (32 ) 2 — — Amortization of net actuarial (gains) losses (189 ) — (188 ) (10 ) (190 ) (43 ) Amortization of prior service (costs) credit 1 22 1 6 1 3 Total recognized in OCI (7 ) (126 ) (54 ) (163 ) (139 ) (203 ) Total recognized in net periodic benefit costs and OCI $ 211 $ (136 ) $ 161 $ (121 ) $ 74 $ (158 ) __________________ (1) The Company recognized curtailment charges in 2016 on certain postretirement benefit plans in connection with the U.S. Retail Advisor Force Divestiture See Note 18 . (2) See Note 3 . |
Assumptions used in determining benefit obligations and net periodic benefit costs | Assumptions used in determining benefit obligations were as follows: Pension Benefits Other Postretirement Benefits December 31, 2017 Weighted average discount rate 3.65% 3.70% Rate of compensation increase 2.25 % - 8.50% N/A December 31, 2016 Weighted average discount rate 4.30% 4.45% Rate of compensation increase 2.25 % - 8.50% N/A Assumptions used in determining net periodic benefit costs were as follows: Pension Benefits Other Postretirement Benefits Year Ended December 31, 2017 Weighted average discount rate 4.30% 4.45% Weighted average expected rate of return on plan assets 6.00% 5.36% Rate of compensation increase 2.25 % - 8.50% N/A Year Ended December 31, 2016 Weighted average discount rate 4.13% 4.37% Weighted average expected rate of return on plan assets 6.00% 5.53% Rate of compensation increase 2.25 % - 8.50% N/A Year Ended December 31, 2015 Weighted average discount rate 4.10% 4.10% Weighted average expected rate of return on plan assets 6.25% 5.70% Rate of compensation increase 2.25 % - 8.50% N/A |
Assumed healthcare costs trend rates | The assumed healthcare costs trend rates used in measuring the APBO and net periodic benefit costs were as follows: December 31, 2017 2016 Before Age 65 and Before Age 65 and Following year 5.6 % 6.6 % 6.8 % 13 % Ultimate rate to which cost increase is assumed to decline 4.0 % 4.3 % 4.0 % 4.3 % Year in which the ultimate trend rate is reached 2086 2098 2077 2092 |
One-percentage point change in assumed healthcare cost trend rates | Assumed healthcare costs trend rates may have a significant effect on the amounts reported for healthcare plans. A 1% change in assumed healthcare costs trend rates would have the following effects as of December 31, 2017 : One Percent Increase One Percent Decrease (In millions) Effect on total of service and interest costs components $ 9 $ (8 ) Effect of accumulated postretirement benefit obligations $ 186 $ (154 ) |
Plan Assets | The pension and other postretirement plan assets measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are summarized as follows: December 31, 2017 Pension Benefits Other Postretirement Benefits Fair Value Hierarchy Fair Value Hierarchy Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities: Corporate $ — $ 3,726 $ 1 $ 3,727 $ 20 $ 362 $ — $ 382 U.S. government bonds 1,256 528 — 1,784 269 6 — 275 Foreign bonds — 937 — 937 — 94 — 94 Federal agencies 35 134 — 169 — 17 — 17 Municipals — 335 — 335 — 28 — 28 Short-term investments 135 192 — 327 8 391 — 399 Other (1) 7 383 9 399 — 68 — 68 Total fixed maturity securities 1,433 6,235 10 7,678 297 966 — 1,263 Equity securities: Common stock - domestic 480 91 — 571 80 — — 80 Common stock - foreign 317 — 3 320 73 — — 73 Total equity securities 797 91 3 891 153 — — 153 Other investments — 144 622 766 — 9 — 9 Derivative assets 33 2 1 36 1 — — 1 Total assets $ 2,263 $ 6,472 $ 636 $ 9,371 $ 451 $ 975 $ — $ 1,426 December 31, 2016 Pension Benefits Other Postretirement Benefits Fair Value Hierarchy Fair Value Hierarchy Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities: Corporate $ — $ 3,406 $ — $ 3,406 $ 20 $ 305 $ — $ 325 U.S. government bonds 1,655 4 — 1,659 210 1 — 211 Foreign bonds — 775 — 775 — 72 — 72 Federal agencies — 196 — 196 — 28 — 28 Municipals — 313 — 313 — 23 — 23 Short-term investments 118 212 — 330 13 416 — 429 Other (1) — 362 9 371 — 55 — 55 Total fixed maturity securities 1,773 5,268 9 7,050 243 900 — 1,143 Equity securities: Common stock - domestic 474 — — 474 113 — — 113 Common stock - foreign 380 — — 380 122 — — 122 Total equity securities 854 — — 854 235 — — 235 Other investments — 105 634 739 — — — — Derivative assets 16 (2 ) 64 78 1 — — 1 Total assets $ 2,643 $ 5,371 $ 707 $ 8,721 $ 479 $ 900 $ — $ 1,379 __________________ (1) Other primarily includes money market securities, mortgage-backed securities, collateralized mortgage obligations and ABS. The table below summarizes the actual weighted average allocation of the estimated fair value of total plan assets by asset class at December 31 for the years indicated and the approved target allocation by major asset class at December 31, 2017 for the Invested Plans: December 31, 2017 2016 Pension Benefits Other Postretirement Pension Benefits Other Postretirement Benefits (1) Target Actual Target Actual Actual Allocation Actual Allocation Asset Class Fixed maturity securities 82 % 82 % 85 % 84 % 81 % 76 % Equity securities (2) 10 % 10 % 15 % 15 % 11 % 24 % Alternative securities (3) 8 % 8 % — % 1 % 8 % — % Total assets 100 % 100 % 100 % 100 % __________________ (1) Other postretirement benefits do not reflect postretirement life insurance plan assets invested in fixed maturity securities. (2) Equity securities percentage includes derivative assets. (3) Alternative securities primarily include hedge, private equity and real estate funds. |
Rollforward fair value measurement using significant unobservable outputs (level 3) | A rollforward of all pension and other postretirement benefit plan assets measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs was as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Pension Benefits Fixed Maturity Securities Equity Corporate Foreign Other (1) Common Other Derivative (In millions) Balance, January 1, 2016 $ 78 $ 17 $ 7 — $ 722 $ 75 Realized gains (losses) 3 — — — (1 ) 3 Unrealized gains (losses) 3 (4 ) 1 — 32 (18 ) Purchases, sales, issuances and settlements, net (22 ) (3 ) — — (119 ) 6 Transfers into and/or out of Level 3 (62 ) (10 ) 1 — — (2 ) Balance, December 31, 2016 $ — $ — $ 9 — $ 634 $ 64 Realized gains (losses) (10 ) — — 2 — (22 ) Unrealized gains (losses) 10 — — — (12 ) 6 Purchases, sales, issuances and settlements, net — — 7 (4 ) — (47 ) Transfers into and/or out of Level 3 1 — (7 ) 5 — — Balance, December 31, 2017 $ 1 $ — $ 9 3 $ 622 $ 1 __________________ (1) Other includes ABS and collateralized mortgage obligations. |
Defined benefit plan estimated future benefit payments | Gross benefit payments for the next 10 years, which reflect expected future service where appropriate, are expected to be as follows: Pension Benefits Other Postretirement Benefits (In millions) 2018 $ 562 $ 85 2019 $ 571 $ 88 2020 $ 587 $ 88 2021 $ 591 $ 87 2022 $ 606 $ 88 2023-2027 $ 3,227 $ 443 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Impact of U.S. Tax Reform [Table Text Block] | The incremental financial statement impact related to U.S. Tax Reform was as follows: U.S. Tax Reform (In millions) Income (loss) before provision for income tax $ (66 ) Provision for income tax expense (benefit): Deferred tax revaluation (1,112 ) Total provision for income tax expense (benefit) (1,112 ) Income (loss), net of income tax 1,046 Income tax (expense) benefit related to items of other comprehensive income (loss) 133 Increase to net equity from U.S. Tax Reform $ 1,179 |
Provision for income tax from continuing operations | The provision for income tax was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Current: Federal $ 1,511 $ 675 $ 1,384 State and local 4 5 20 Foreign 14 40 36 Subtotal 1,529 720 1,440 Deferred: Federal (2,099 ) (539 ) 296 Foreign 9 18 27 Subtotal (2,090 ) (521 ) 323 Provision for income tax expense (benefit) $ (561 ) $ 199 $ 1,763 |
Income (loss) from continuing operations before income tax expense (benefit) from domestic and foreign operations | The Company’s income (loss) before income tax expense (benefit) from domestic and foreign operations was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Income (loss): Domestic $ 4,045 $ 2,379 $ 4,409 Foreign (1,079 ) (438 ) 72 Total $ 2,966 $ 1,941 $ 4,481 |
Income tax for continuing operations effective rate reconciliation | The reconciliation of the income tax provision at the U.S. statutory rate to the provision for income tax as reported was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Tax provision at U.S. statutory rate $ 1,039 $ 679 $ 1,569 Tax effect of: Dividend received deduction (65 ) (79 ) (82 ) Tax-exempt income (49 ) (38 ) (24 ) Prior year tax (1) (29 ) (33 ) 558 Low income housing tax credits (278 ) (270 ) (221 ) Other tax credits (101 ) (98 ) (68 ) Foreign tax rate differential — 1 (4 ) Change in valuation allowance — (1 ) (1 ) U.S. Tax Reform impact (2) (1,089 ) — — Other, net 11 38 36 Provision for income tax expense (benefit) $ (561 ) $ 199 $ 1,763 __________________ (1) As discussed further below, for the year ended December 31, 2015, prior year tax includes a $557 million non-cash charge related to an uncertain tax position. (2) U.S. Tax Reform impact of ($1.1) billion excludes ($23) million of tax provision at the U.S. statutory rate for a total tax reform benefit of ($1.1) billion . |
Components of deferred tax assets and liabilities | Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following at: December 31, 2017 2016 (In millions) Deferred income tax assets: Policyholder liabilities and receivables $ 1,361 $ 292 Net operating loss carryforwards 23 27 Employee benefits 595 828 Tax credit carryforwards 1,127 947 Litigation-related and government mandated 117 212 Other 437 460 Total gross deferred income tax assets 3,660 2,766 Less: Valuation allowance 20 20 Total net deferred income tax assets 3,640 2,746 Deferred income tax liabilities: Investments, including derivatives 1,989 1,234 Intangibles 32 53 DAC 673 1,150 Net unrealized investment gains 2,313 2,693 Other 2 1 Total deferred income tax liabilities 5,009 5,131 Net deferred income tax asset (liability) $ (1,369 ) $ (2,385 ) |
Summary of net operating loss carryforwards for tax purposes | The following table sets forth the domestic and state net operating loss carryforwards for tax purposes at December 31, 2017 . Net Operating Loss Carryforwards Domestic State (In millions) Expiration: 2018-2022 $ — $ 49 2023-2027 — 64 2028-2032 — 13 2033-2037 12 2 Indefinite — — $ 12 $ 128 |
Summary of Tax Credit Carryforwards | The following table sets forth the general business credits, foreign tax credits, and other credit carryforwards for tax purposes at December 31, 2017 . Tax Credit Carryforwards General Business Credits Foreign Tax Credits Other (In millions) Expiration: 2018-2022 $ — $ 10 $ — 2023-2027 — 88 — 2028-2032 232 — — 2033-2037 832 — — Indefinite — — 194 $ 1,064 $ 98 $ 194 |
Reconciliation of unrecognized tax benefits | Interest was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Interest recognized on the consolidated statements of operations (1) $ 47 $ (33 ) $ 382 December 31, 2017 2016 (In millions) Interest included in other liabilities on the consolidated balance sheets $ 653 $ 606 __________________ (1) The significant increase in 2015 is related to the non-cash charge discussed above. A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: Years Ended December 31, 2017 2016 2015 (In millions) Balance at January 1, $ 931 $ 1,075 $ 546 Additions for tax positions of prior years (1) — 7 558 Reductions for tax positions of prior years (2) (38 ) (109 ) — Additions for tax positions of current year 4 6 4 Reductions for tax positions of current year (1 ) — — Settlements with tax authorities (6 ) (48 ) (33 ) Balance at December 31, $ 890 $ 931 $ 1,075 Unrecognized tax benefits that, if recognized would impact the effective rate $ 890 $ 931 $ 1,060 __________________ (1) The significant increase in 2015 is related to a non-cash charge the Company recorded to net income of $792 million , net of tax. The charge was related to an uncertain tax position and was comprised of a $557 million charge included in provision for income tax expense (benefit) and a $362 million ( $235 million , net of tax) charge included in other expenses. This charge is the result of the Company’s consideration of certain decisions of the U.S. Court of Appeals for the Second Circuit upholding the disallowance of foreign tax credits claimed by other corporate entities not affiliated with the Company. The Company’s action relates to tax years from 2000 to 2009, during which MLIC held non-U.S. investments in support of its life insurance business through a United Kingdom investment subsidiary that was structured as a joint venture at the time. (2) Included for 2016 is the impact of the dividend by Metropolitan Life Insurance Company of all of the issued and outstanding shares of common stock of each of NELICO and GALIC to MetLife, Inc. |
Contingencies, Commitments an44
Contingencies, Commitments and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments - Leases | The Company, as lessee, has entered into various lease and sublease agreements for office space, information technology, aircrafts and other equipment. Future minimum gross rental payments relating to these lease arrangements are as follows: Amount (In millions) 2018 $ 144 2019 130 2020 134 2021 132 2022 130 Thereafter 673 Total $ 1,343 |
Asbestos Related Claims | |
Loss Contingencies [Line Items] | |
Schedule of Loss Contingencies by Contingency | The approximate total number of asbestos personal injury claims pending against Metropolitan Life Insurance Company as of the dates indicated, the approximate number of new claims during the years ended on those dates and the approximate total settlement payments made to resolve asbestos personal injury claims at or during those years are set forth in the following table: December 31, 2017 2016 2015 (In millions, except number of claims) Asbestos personal injury claims at year end 62,930 67,223 67,787 Number of new claims during the year 3,514 4,146 3,856 Settlement payments during the year (1) $ 48.6 $ 50.2 $ 56.1 __________________ (1) Settlement payments represent payments made by Metropolitan Life Insurance Company during the year in connection with settlements made in that year and in prior years. Amounts do not include Metropolitan Life Insurance Company’s attorneys’ fees and expenses. |
Insurance-related Assessments | |
Loss Contingencies [Line Items] | |
Schedule of Loss Contingencies by Contingency | Assets and liabilities held for insolvency assessments were as follows: December 31, 2017 2016 (In millions) Other Assets: Premium tax offset for future discounted and undiscounted assessments $ 51 $ 24 Premium tax offsets currently available for paid assessments 49 32 Total $ 100 $ 56 Other Liabilities: Insolvency assessments $ 66 $ 37 |
Quarterly Results of Operatio45
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | The unaudited quarterly results of operations for 2017 and 2016 are summarized in the table below: Three Months Ended March 31, June 30, September 30, December 31, As Previously Reported Revisions (1) As Revised As Previously Reported Revisions (1) As Revised As Previously Reported Revisions (1) As Revised As Previously Reported Revisions (1) As Revised (In millions) 2017 Total revenues $ 8,645 $ — $ 8,645 $ 9,342 $ — $ 9,342 $ 10,286 $ — $ 10,286 $ 8,952 $ — $ 8,952 Total expenses $ 7,972 $ 6 $ 7,978 $ 8,528 $ 6 $ 8,534 $ 9,356 $ 55 $ 9,411 $ 8,336 $ — $ 8,336 Net income (loss) $ 551 $ (4 ) $ 547 $ 648 $ (4 ) $ 644 $ 743 $ (35 ) $ 708 $ 1,628 $ — $ 1,628 Less: Net income (loss) attributable to noncontrolling interests $ 1 $ — $ 1 $ 2 $ — $ 2 $ 5 $ — $ 5 $ (6 ) $ — $ (6 ) Net income (loss) attributable to Metropolitan Life Insurance Company $ 550 $ (4 ) $ 546 $ 646 $ (4 ) $ 642 $ 738 $ (35 ) $ 703 $ 1,634 $ — $ 1,634 2016 Total revenues $ 8,794 $ — $ 8,794 $ 9,082 $ — $ 9,082 $ 9,876 $ — $ 9,876 $ 8,738 $ — $ 8,738 Total expenses $ 8,196 $ 9 $ 8,205 $ 8,749 $ 4 $ 8,753 $ 9,123 $ 3 $ 9,126 $ 8,459 $ 6 $ 8,465 Net income (loss) $ 496 $ (6 ) $ 490 $ 326 $ (3 ) $ 323 $ 630 $ (2 ) $ 628 $ 304 $ (3 ) $ 301 Less: Net income (loss) attributable to noncontrolling interests $ — $ — $ — $ (2 ) $ — $ (2 ) $ (7 ) $ — $ (7 ) $ 1 $ — $ 1 Net income (loss) attributable to Metropolitan Life Insurance Company $ 496 $ (6 ) $ 490 $ 328 $ (3 ) $ 325 $ 637 $ (2 ) $ 635 $ 303 $ (3 ) $ 300 __________________ (1) See Note 1 for information on prior period revisions. |
Business, Basis of Presentati46
Business, Basis of Presentation and Summary of Significant Accounting Policies (Restatement Adjustments) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Reserves for Group Annuity products | $ 510 | |||||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||||||
Future policy benefits | $ 119,415 | $ 115,519 | 119,415 | $ 115,519 | ||||||||
Other Policy-Related Balances | 7,176 | 7,103 | 7,176 | 7,103 | ||||||||
Deferred Tax Liabilities, Net | 1,369 | 2,385 | 1,369 | 2,385 | ||||||||
Liabilities | 404,534 | 405,801 | 404,534 | 405,801 | ||||||||
Retained Earnings (Accumulated Deficit) | 10,035 | 9,033 | 10,035 | 9,033 | $ 13,535 | $ 12,306 | ||||||
Stockholders' Equity Attributable to Parent | 29,618 | 26,570 | 29,618 | 26,570 | 30,669 | 31,793 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 29,761 | 26,760 | 29,761 | 26,760 | 31,041 | 32,185 | ||||||
Income Statement Related Disclosures [Abstract] | ||||||||||||
Net Investment Income | 10,513 | 11,083 | 11,539 | |||||||||
Revenues | 8,952 | $ 10,286 | $ 9,342 | $ 8,645 | 8,738 | $ 9,876 | $ 9,082 | $ 8,794 | 37,225 | 36,490 | 38,733 | |
Policyholder benefits and claims | 25,792 | 25,313 | 24,547 | |||||||||
Total expenses | 8,336 | 9,411 | 8,534 | 7,978 | 8,465 | 9,126 | 8,753 | 8,205 | 34,259 | 34,549 | 34,252 | |
Income (loss) before provision for income tax | 2,966 | 1,941 | 4,481 | |||||||||
Provision for income tax expense (benefit) | (561) | 199 | 1,763 | |||||||||
Net income (loss) | 1,628 | 708 | 644 | 547 | 301 | 628 | 323 | 490 | 3,527 | 1,742 | 2,718 | |
Net income (loss) attributable to Metropolitan Life Insurance Company | 1,634 | 703 | 642 | 546 | 300 | 635 | 325 | 490 | 3,525 | 1,750 | 2,718 | |
Statement of Comprehensive Income [Abstract] | ||||||||||||
Net income (loss) | 1,628 | 708 | 644 | 547 | 301 | 628 | 323 | 490 | 3,527 | 1,742 | 2,718 | |
Comprehensive income (loss) | 5,836 | 2,176 | 369 | |||||||||
Comprehensive income (loss) attributable to Metropolitan Life Insurance Company | 5,834 | 2,184 | 369 | |||||||||
Statement of Stockholders' Equity [Abstract] | ||||||||||||
Retained Earnings (Accumulated Deficit) | 10,035 | 9,033 | 10,035 | 9,033 | 13,535 | 12,306 | ||||||
Net income (loss) attributable to Metropolitan Life Insurance Company | 1,634 | 703 | 642 | 546 | 300 | 635 | 325 | 490 | 3,525 | 1,750 | 2,718 | |
Stockholders' Equity Attributable to Parent | 29,618 | 26,570 | 29,618 | 26,570 | 30,669 | 31,793 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 29,761 | 26,760 | 29,761 | 26,760 | 31,041 | 32,185 | ||||||
Statement of Cash Flows [Abstract] | ||||||||||||
Net income (loss) | 1,628 | 708 | 644 | 547 | 301 | 628 | 323 | 490 | 3,527 | 1,742 | 2,718 | |
Change in income tax | (2,200) | (438) | 238 | |||||||||
Change in insurance-related liabilities and policy-related balances | 4,029 | 2,741 | 2,648 | |||||||||
Change in other liabilities | $ (156) | 1,731 | (461) | |||||||||
Scenario, Previously Reported | ||||||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||||||
Future policy benefits | 115,556 | 115,556 | ||||||||||
Other Policy-Related Balances | 6,731 | 6,731 | ||||||||||
Deferred Tax Liabilities, Net | 2,503 | 2,503 | ||||||||||
Liabilities | 405,584 | 405,584 | ||||||||||
Retained Earnings (Accumulated Deficit) | 9,250 | 9,250 | 13,738 | 12,470 | ||||||||
Stockholders' Equity Attributable to Parent | 26,787 | 26,787 | 30,872 | 31,957 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 26,977 | 26,977 | 31,244 | 32,349 | ||||||||
Income Statement Related Disclosures [Abstract] | ||||||||||||
Net Investment Income | 11,083 | 11,577 | ||||||||||
Revenues | 8,952 | 10,286 | 9,342 | 8,645 | 8,738 | 9,876 | 9,082 | 8,794 | 36,490 | 38,771 | ||
Policyholder benefits and claims | 25,291 | 24,527 | ||||||||||
Total expenses | 8,336 | 9,356 | 8,528 | 7,972 | 8,459 | 9,123 | 8,749 | 8,196 | 34,527 | 34,232 | ||
Income (loss) before provision for income tax | 1,963 | 4,539 | ||||||||||
Provision for income tax expense (benefit) | 207 | 1,782 | ||||||||||
Net income (loss) | 1,628 | 743 | 648 | 551 | 304 | 630 | 326 | 496 | 1,756 | 2,757 | ||
Net income (loss) attributable to Metropolitan Life Insurance Company | 1,634 | 738 | 646 | 550 | 303 | 637 | 328 | 496 | 1,764 | 2,757 | ||
Statement of Comprehensive Income [Abstract] | ||||||||||||
Net income (loss) | 1,628 | 743 | 648 | 551 | 304 | 630 | 326 | 496 | 1,756 | 2,757 | ||
Comprehensive income (loss) | 2,190 | 408 | ||||||||||
Comprehensive income (loss) attributable to Metropolitan Life Insurance Company | 2,198 | 408 | ||||||||||
Statement of Stockholders' Equity [Abstract] | ||||||||||||
Retained Earnings (Accumulated Deficit) | 9,250 | 9,250 | 13,738 | 12,470 | ||||||||
Net income (loss) attributable to Metropolitan Life Insurance Company | 1,634 | 738 | 646 | 550 | 303 | 637 | 328 | 496 | 1,764 | 2,757 | ||
Stockholders' Equity Attributable to Parent | 26,787 | 26,787 | 30,872 | 31,957 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 26,977 | 26,977 | 31,244 | 32,349 | ||||||||
Statement of Cash Flows [Abstract] | ||||||||||||
Net income (loss) | 1,628 | 743 | 648 | 551 | 304 | 630 | 326 | 496 | 1,756 | 2,757 | ||
Change in income tax | (430) | 257 | ||||||||||
Change in insurance-related liabilities and policy-related balances | 2,719 | 2,628 | ||||||||||
Change in other liabilities | 1,731 | (499) | ||||||||||
Restatement Adjustment | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Reserves for Group Annuity products | 372 | |||||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||||||
Future policy benefits | (37) | (37) | ||||||||||
Other Policy-Related Balances | 372 | 372 | ||||||||||
Deferred Tax Liabilities, Net | (118) | (118) | ||||||||||
Liabilities | 217 | 217 | ||||||||||
Retained Earnings (Accumulated Deficit) | (217) | (217) | (203) | (164) | ||||||||
Stockholders' Equity Attributable to Parent | (217) | (217) | (203) | (164) | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (217) | (217) | (203) | (164) | ||||||||
Income Statement Related Disclosures [Abstract] | ||||||||||||
Net Investment Income | 0 | (38) | ||||||||||
Revenues | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (38) | ||
Policyholder benefits and claims | 22 | 20 | ||||||||||
Total expenses | 0 | 55 | 6 | 6 | 6 | 3 | 4 | 9 | 22 | 20 | ||
Income (loss) before provision for income tax | (22) | (58) | ||||||||||
Provision for income tax expense (benefit) | (8) | (19) | ||||||||||
Net income (loss) | 0 | (35) | (4) | (4) | (3) | (2) | (3) | (6) | (14) | (39) | ||
Net income (loss) attributable to Metropolitan Life Insurance Company | 0 | (35) | (4) | (4) | (3) | (2) | (3) | (6) | (14) | (39) | ||
Statement of Comprehensive Income [Abstract] | ||||||||||||
Net income (loss) | 0 | (35) | (4) | (4) | (3) | (2) | (3) | (6) | (14) | (39) | ||
Comprehensive income (loss) | (14) | (39) | ||||||||||
Comprehensive income (loss) attributable to Metropolitan Life Insurance Company | (14) | (39) | ||||||||||
Statement of Stockholders' Equity [Abstract] | ||||||||||||
Retained Earnings (Accumulated Deficit) | (217) | (217) | (203) | (164) | ||||||||
Net income (loss) attributable to Metropolitan Life Insurance Company | 0 | (35) | (4) | (4) | (3) | (2) | (3) | (6) | (14) | (39) | ||
Stockholders' Equity Attributable to Parent | (217) | (217) | (203) | (164) | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (217) | (217) | (203) | $ (164) | ||||||||
Statement of Cash Flows [Abstract] | ||||||||||||
Net income (loss) | $ 0 | $ (35) | $ (4) | $ (4) | $ (3) | $ (2) | $ (3) | $ (6) | (14) | (39) | ||
Change in income tax | (8) | (19) | ||||||||||
Change in insurance-related liabilities and policy-related balances | 22 | 20 | ||||||||||
Change in other liabilities | 0 | 38 | ||||||||||
Restatement impact in Net Income (loss) | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Reserves for Group Annuity products | $ 21 | $ 20 |
Business, Basis of Presentati47
Business, Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of segments | Segment | 2 | ||
Property, Plant and Equipment [Line Items] | |||
Cost basis of property, equipment and leasehold improvements | $ 1,200 | $ 1,300 | |
Accumulated depreciation and amortization of property, equipment and leasehold improvements | 614 | 673 | |
Depreciation and amortization expense | 124 | 139 | $ 159 |
Cost basis of computer software | 1,700 | 1,500 | |
Accumulated amortization of computer software | 1,300 | 1,100 | |
Amortization expense related to computer software | $ 164 | 132 | $ 150 |
Minimum | |||
Real Estate Held-for-investment And Accumulated Depreciation [Line Items] | |||
Real Estate Held-for-investment And Accumulated Depreciation Life Used For Depreciation | 20 years | ||
Maximum | |||
Real Estate Held-for-investment And Accumulated Depreciation [Line Items] | |||
Real Estate Held-for-investment And Accumulated Depreciation Life Used For Depreciation | 55 years | ||
U.S. | |||
Goodwill [Line Items] | |||
Goodwill | $ 70 | 70 | |
MetLife Holdings | |||
Goodwill [Line Items] | |||
Goodwill | $ 31 | $ 31 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Leasehold Improvements [Member] | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 1 year | ||
Leasehold Improvements [Member] | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 25 years | ||
Other Capitalized Property Plant and Equipment [Member] | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Other Capitalized Property Plant and Equipment [Member] | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 7 years | ||
Computer Software, Intangible Asset | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 4 years | ||
VODA and VOCRA [Member] | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 10 years | ||
VODA and VOCRA [Member] | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 30 years |
Business, Basis of Presentati48
Business, Basis of Presentation and Summary of Significant Accounting Policies (New Accounting Pronouncements) (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Premiums and Other Receivables, Net | $ 22,098 | $ 22,383 | ||||
Payables For Collateral Under Securities Loaned And Other Transactions | 19,871 | 20,815 | ||||
Derivative assets | 6,592 | 8,728 | ||||
Derivative liabilities | 2,442 | 3,996 | ||||
Accrued Investment Income Receivable | 2,042 | 2,019 | ||||
Other Liabilities | 27,409 | 29,497 | ||||
Retained Earnings (Accumulated Deficit) | 10,035 | 9,033 | $ 13,535 | $ 12,306 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 5,428 | $ 3,119 | $ 2,685 | $ 5,034 | ||
CME update impact | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Premiums and Other Receivables, Net | $ 226 | |||||
Payables For Collateral Under Securities Loaned And Other Transactions | 419 | |||||
Derivative assets | 751 | |||||
Derivative liabilities | 603 | |||||
Accrued Investment Income Receivable | 55 | |||||
Other Liabilities | $ 10 | |||||
Adjustments for New Accounting Pronouncement | Subsequent Event | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained Earnings (Accumulated Deficit) | $ 1,000 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 1,000 | |||||
Accounting Standards Update 2016-01 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Equity | $ 63 |
Segment Information (Earnings)
Segment Information (Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||||||||||
Premiums | $ 22,925 | $ 22,393 | $ 21,934 | ||||||||
Universal life and investment-type product policy fees | 2,227 | 2,542 | 2,584 | ||||||||
Net investment income | 10,513 | 11,083 | 11,539 | ||||||||
Other revenues | 1,570 | 1,478 | 1,536 | ||||||||
Net investment gains (losses) | 334 | 132 | 259 | ||||||||
Net derivative gains (losses) | (344) | (1,138) | 881 | ||||||||
Total revenues | $ 8,952 | $ 10,286 | $ 9,342 | $ 8,645 | $ 8,738 | $ 9,876 | $ 9,082 | $ 8,794 | 37,225 | 36,490 | 38,733 |
Expenses | |||||||||||
Policyholder benefits and claims and policyholder dividends | 26,889 | 26,513 | 25,811 | ||||||||
Interest credited to policyholder account balances | 2,235 | 2,233 | 2,183 | ||||||||
Capitalization of DAC | (61) | (332) | (482) | ||||||||
Amortization of DAC and VOBA | 241 | 441 | 742 | ||||||||
Interest expense on debt | 106 | 112 | 122 | ||||||||
Other expenses | 4,849 | 5,582 | 5,876 | ||||||||
Total expenses | 8,336 | 9,411 | 8,534 | 7,978 | 8,465 | 9,126 | 8,753 | 8,205 | 34,259 | 34,549 | 34,252 |
Provision for income tax expense (benefit) | (561) | 199 | 1,763 | ||||||||
Net income (loss) | $ 1,628 | $ 708 | $ 644 | $ 547 | $ 301 | $ 628 | $ 323 | $ 490 | 3,527 | 1,742 | 2,718 |
U.S. | |||||||||||
Expenses | |||||||||||
Amortization of DAC and VOBA | 56 | 56 | 59 | ||||||||
MetLife Holdings | |||||||||||
Expenses | |||||||||||
Amortization of DAC and VOBA | 185 | 342 | 631 | ||||||||
Corporate & Other | |||||||||||
Expenses | |||||||||||
Amortization of DAC and VOBA | 0 | 43 | 52 | ||||||||
Operating Segments | |||||||||||
Revenues | |||||||||||
Premiums | 22,925 | 22,393 | 21,934 | ||||||||
Universal life and investment-type product policy fees | 2,130 | 2,440 | 2,484 | ||||||||
Net investment income | 10,883 | 11,614 | 11,995 | ||||||||
Other revenues | 1,570 | 1,478 | 1,536 | ||||||||
Net investment gains (losses) | 0 | 0 | 0 | ||||||||
Net derivative gains (losses) | 0 | 0 | 0 | ||||||||
Total revenues | 37,508 | 37,925 | 37,949 | ||||||||
Expenses | |||||||||||
Policyholder benefits and claims and policyholder dividends | 26,568 | 26,342 | 25,747 | ||||||||
Interest credited to policyholder account balances | 2,238 | 2,236 | 2,179 | ||||||||
Capitalization of DAC | (61) | (332) | (482) | ||||||||
Amortization of DAC and VOBA | 359 | 787 | 630 | ||||||||
Interest expense on debt | 106 | 112 | 122 | ||||||||
Other expenses | 4,848 | 5,445 | 5,873 | ||||||||
Total expenses | 34,058 | 34,590 | 34,069 | ||||||||
Provision for income tax expense (benefit) | 1,013 | 686 | 1,554 | ||||||||
Adjusted earnings | 2,437 | 2,649 | 2,326 | ||||||||
Operating Segments | U.S. | |||||||||||
Revenues | |||||||||||
Premiums | 19,496 | 17,921 | 17,340 | ||||||||
Universal life and investment-type product policy fees | 1,004 | 988 | 941 | ||||||||
Net investment income | 6,206 | 6,075 | 6,011 | ||||||||
Other revenues | 781 | 750 | 729 | ||||||||
Net investment gains (losses) | 0 | 0 | 0 | ||||||||
Net derivative gains (losses) | 0 | 0 | 0 | ||||||||
Total revenues | 27,487 | 25,734 | 25,021 | ||||||||
Expenses | |||||||||||
Policyholder benefits and claims and policyholder dividends | 20,558 | 18,968 | 18,415 | ||||||||
Interest credited to policyholder account balances | 1,459 | 1,297 | 1,212 | ||||||||
Capitalization of DAC | (48) | (60) | (71) | ||||||||
Amortization of DAC and VOBA | 56 | 56 | 59 | ||||||||
Interest expense on debt | 11 | 10 | 5 | ||||||||
Other expenses | 2,717 | 2,770 | 2,724 | ||||||||
Total expenses | 24,753 | 23,041 | 22,344 | ||||||||
Provision for income tax expense (benefit) | 954 | 963 | 961 | ||||||||
Adjusted earnings | 1,780 | 1,730 | 1,716 | ||||||||
Operating Segments | MetLife Holdings | |||||||||||
Revenues | |||||||||||
Premiums | 3,420 | 4,411 | 4,527 | ||||||||
Universal life and investment-type product policy fees | 1,126 | 1,236 | 1,294 | ||||||||
Net investment income | 4,920 | 5,606 | 5,890 | ||||||||
Other revenues | 200 | 110 | 135 | ||||||||
Net investment gains (losses) | 0 | 0 | 0 | ||||||||
Net derivative gains (losses) | 0 | 0 | 0 | ||||||||
Total revenues | 9,666 | 11,363 | 11,846 | ||||||||
Expenses | |||||||||||
Policyholder benefits and claims and policyholder dividends | 6,006 | 7,244 | 7,207 | ||||||||
Interest credited to policyholder account balances | 779 | 907 | 933 | ||||||||
Capitalization of DAC | (13) | (267) | (409) | ||||||||
Amortization of DAC and VOBA | 303 | 675 | 527 | ||||||||
Interest expense on debt | 8 | 7 | 4 | ||||||||
Other expenses | 1,201 | 1,850 | 1,825 | ||||||||
Total expenses | 8,284 | 10,416 | 10,087 | ||||||||
Provision for income tax expense (benefit) | 427 | 274 | 556 | ||||||||
Adjusted earnings | 955 | 673 | 1,203 | ||||||||
Operating Segments | Corporate & Other | |||||||||||
Revenues | |||||||||||
Premiums | 9 | 61 | 67 | ||||||||
Universal life and investment-type product policy fees | 0 | 216 | 249 | ||||||||
Net investment income | (243) | (67) | 94 | ||||||||
Other revenues | 589 | 618 | 672 | ||||||||
Net investment gains (losses) | 0 | 0 | 0 | ||||||||
Net derivative gains (losses) | 0 | 0 | 0 | ||||||||
Total revenues | 355 | 828 | 1,082 | ||||||||
Expenses | |||||||||||
Policyholder benefits and claims and policyholder dividends | 4 | 130 | 125 | ||||||||
Interest credited to policyholder account balances | 0 | 32 | 34 | ||||||||
Capitalization of DAC | 0 | (5) | (2) | ||||||||
Amortization of DAC and VOBA | 0 | 56 | 44 | ||||||||
Interest expense on debt | 87 | 95 | 113 | ||||||||
Other expenses | 930 | 825 | 1,324 | ||||||||
Total expenses | 1,021 | 1,133 | 1,638 | ||||||||
Provision for income tax expense (benefit) | (368) | (551) | 37 | ||||||||
Adjusted earnings | (298) | 246 | (593) | ||||||||
Significant Reconciling Items | |||||||||||
Revenues | |||||||||||
Premiums | 0 | 0 | 0 | ||||||||
Universal life and investment-type product policy fees | 97 | 102 | 100 | ||||||||
Net investment income | (370) | (531) | (456) | ||||||||
Other revenues | 0 | 0 | 0 | ||||||||
Net investment gains (losses) | 334 | 132 | 259 | ||||||||
Net derivative gains (losses) | (344) | (1,138) | 881 | ||||||||
Total revenues | (283) | (1,435) | 784 | ||||||||
Expenses | |||||||||||
Policyholder benefits and claims and policyholder dividends | 321 | 171 | 64 | ||||||||
Interest credited to policyholder account balances | (3) | (3) | 4 | ||||||||
Capitalization of DAC | 0 | 0 | 0 | ||||||||
Amortization of DAC and VOBA | (118) | (346) | 112 | ||||||||
Interest expense on debt | 0 | 0 | 0 | ||||||||
Other expenses | 1 | 137 | 3 | ||||||||
Total expenses | 201 | (41) | 183 | ||||||||
Provision for income tax expense (benefit) | $ (1,574) | $ (487) | $ 209 |
Segment Information (Total Asse
Segment Information (Total Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 434,295 | $ 432,561 |
Separate account assets | 130,825 | 133,836 |
Separate account liabilities | 130,825 | 133,836 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Total assets | 245,750 | 247,555 |
Separate account assets | 80,240 | 85,854 |
Separate account liabilities | 80,240 | 85,854 |
MetLife Holdings | ||
Segment Reporting Information [Line Items] | ||
Total assets | 163,397 | 163,024 |
Separate account assets | 50,585 | 47,982 |
Separate account liabilities | 50,585 | 47,982 |
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | 25,148 | 21,982 |
Separate account assets | 0 | 0 |
Separate account liabilities | $ 0 | $ 0 |
Segment Information (Premiums,
Segment Information (Premiums, Universal Life and Investment-Type Policy Fees and Other Revenues by Major Product Groups) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | $ 26,722 | $ 26,413 | $ 26,054 |
Life insurance | |||
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | 13,139 | 13,907 | 13,811 |
Accident & health insurance | |||
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | 7,933 | 7,889 | 7,475 |
Annuities | |||
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | 5,390 | 4,379 | 4,548 |
Non-insurance | |||
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | $ 260 | $ 238 | $ 220 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017USD ($)shares | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($)shares | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)Segmentshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) | Aug. 04, 2017shares | |
Segment Reporting [Abstract] | ||||||||||||
Number of segments | Segment | 2 | |||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Common Stock, Shares, Issued | 494,466,664 | 494,466,664 | 494,466,664 | 494,466,664 | ||||||||
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||||||
Total revenues | $ | $ 8,952 | $ 10,286 | $ 9,342 | $ 8,645 | $ 8,738 | $ 9,876 | $ 9,082 | $ 8,794 | $ 37,225 | $ 36,490 | $ 38,733 | |
Concentration Risk, Percentage | 10.00% | 10.00% | ||||||||||
U.S. | One U.S. Customer [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total revenues | $ | $ 2,800 | $ 2,800 | $ 2,700 | |||||||||
Premiums, universal life and investment-type product policy fees and other revenues | U.S. | One U.S. Customer [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Concentration Risk, Percentage | 11.00% | 10.00% | 10.00% | |||||||||
Brighthouse Financial, Inc [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Common Stock, Shares, Issued | 96,776,670 | |||||||||||
Common Stock, Shares Authorized | 119,773,106 | |||||||||||
BHF Common Stock | 80.80% | |||||||||||
Common Stock, Shares, Owned by MetLife, INC. | 22,996,436 | 22,996,436 | ||||||||||
Discontinued Operation, Equity Method Investment Retained after Disposal, Ownership Interest after Disposal | 19.20% |
Dispositions (Narrative) (Detai
Dispositions (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Dividend of subsidiary | $ 0 | $ 2,904 | $ 0 |
GALIC and NELICO | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Dividend of subsidiary | 2,650 | ||
Other Comprehensive Income, Other, Net of Tax | (254) | ||
Retained Earnings | GALIC and NELICO | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Dividend of subsidiary | $ 2,652 |
Insurance (Insurance Liabilitie
Insurance (Insurance Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | $ 220,530 | $ 215,088 |
U.S. | ||
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | 131,224 | 124,877 |
MetLife Holdings | ||
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | 89,012 | 89,874 |
Corporate & Other | ||
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | $ 294 | $ 337 |
Insurance (Insurance Liabilit55
Insurance (Insurance Liabilities Assumptions and Ratios - Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Liability for Future Policy Benefits and Policyholder Account Balances [Abstract] | |||
Participating business as a percentage of gross life insurance policies in-force | 4.00% | 4.00% | |
Participating business as a percentage of the gross life insurance premiums | 21.00% | 26.00% | 27.00% |
Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Interest rate assumptions for the aggregate future policy benefit liabilities for individual and group traditional fixed annuities after annuitization | 1.00% | ||
Interest rate assumptions for the aggregate future policy benefit liabilities for non-medical health insurance | 4.00% | ||
Interest rate range credited to policyholder account balances | 1.00% | ||
Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Interest rate assumptions for the aggregate future policy benefit liabilities for individual and group traditional fixed annuities after annuitization | 11.00% | ||
Interest rate assumptions for the aggregate future policy benefit liabilities for non-medical health insurance | 7.00% | ||
Interest rate range credited to policyholder account balances | 13.00% | ||
Participating Life Insurance Policies | Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Interest rate assumptions for the aggregate future policy benefit liabilities for traditional life insurance policies | 3.00% | ||
Participating Life Insurance Policies | Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Interest rate assumptions for the aggregate future policy benefit liabilities for traditional life insurance policies | 7.00% | ||
Nonparticipating Life Insurance Policies | Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Interest rate assumptions for the aggregate future policy benefit liabilities for traditional life insurance policies | 2.00% | ||
Nonparticipating Life Insurance Policies | Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Interest rate assumptions for the aggregate future policy benefit liabilities for traditional life insurance policies | 11.00% | ||
Group Long-Term Disability | Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Interest rate assumptions for the aggregate future policy benefit liabilities for traditional life insurance policies | 2.00% | ||
Group Long-Term Disability | Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Interest rate assumptions for the aggregate future policy benefit liabilities for traditional life insurance policies | 8.00% |
Insurance (Liabilities for Guar
Insurance (Liabilities for Guarantees) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | $ 1,457 | $ 1,488 | $ 1,277 |
Incurred guaranteed benefits | 282 | 221 | 212 |
Paid guaranteed benefits | 0 | (1) | (1) |
Dispositions (1) | (251) | ||
Balance at December 31, | 1,739 | 1,457 | 1,488 |
Variable Annuity Guarantees: | Guaranteed Minimum Death Benefit | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 268 | 232 | 196 |
Incurred guaranteed benefits | 58 | 55 | 37 |
Paid guaranteed benefits | 0 | (1) | (1) |
Dispositions (1) | (18) | ||
Balance at December 31, | 326 | 268 | 232 |
Variable Annuity Guarantees: | Guaranteed Minimum Income Benefit | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 467 | 538 | 458 |
Incurred guaranteed benefits | 112 | 63 | 80 |
Paid guaranteed benefits | 0 | 0 | 0 |
Dispositions (1) | (134) | ||
Balance at December 31, | 579 | 467 | 538 |
Universal and Variable Life Contracts | Secondary Guarantees | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 620 | 627 | 541 |
Incurred guaranteed benefits | 105 | 92 | 86 |
Paid guaranteed benefits | 0 | 0 | 0 |
Dispositions (1) | (99) | ||
Balance at December 31, | 725 | 620 | 627 |
Universal and Variable Life Contracts | Paid-Up Guarantees | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 102 | 91 | 82 |
Incurred guaranteed benefits | 7 | 11 | 9 |
Paid guaranteed benefits | 0 | 0 | 0 |
Dispositions (1) | 0 | ||
Balance at December 31, | 109 | 102 | 91 |
Ceded | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 343 | 493 | 423 |
Incurred guaranteed benefits | 5 | 5 | 71 |
Paid guaranteed benefits | 0 | (1) | (1) |
Dispositions (1) | (154) | ||
Balance at December 31, | 348 | 343 | 493 |
Ceded | Secondary Guarantees | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 249 | 354 | 305 |
Incurred guaranteed benefits | 23 | (8) | 49 |
Paid guaranteed benefits | 0 | 0 | 0 |
Dispositions (1) | (97) | ||
Balance at December 31, | 272 | 249 | 354 |
Ceded | Paid-Up Guarantees | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 71 | 63 | 57 |
Incurred guaranteed benefits | 5 | 8 | 6 |
Paid guaranteed benefits | 0 | 0 | 0 |
Dispositions (1) | 0 | ||
Balance at December 31, | 76 | 71 | 63 |
Ceded | Guaranteed Minimum Death Benefit | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 44 | 50 | 37 |
Incurred guaranteed benefits | (44) | 13 | 14 |
Paid guaranteed benefits | 0 | (1) | (1) |
Dispositions (1) | (18) | ||
Balance at December 31, | 0 | 44 | 50 |
Ceded | Guaranteed Minimum Income Benefit | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | (21) | 26 | 24 |
Incurred guaranteed benefits | 21 | (8) | 2 |
Paid guaranteed benefits | 0 | 0 | 0 |
Dispositions (1) | (39) | ||
Balance at December 31, | 0 | (21) | 26 |
Net | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 1,114 | 995 | 854 |
Incurred guaranteed benefits | 277 | 216 | 141 |
Paid guaranteed benefits | 0 | 0 | 0 |
Dispositions (1) | (97) | ||
Balance at December 31, | 1,391 | 1,114 | 995 |
Net | Secondary Guarantees | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 371 | 273 | 236 |
Incurred guaranteed benefits | 82 | 100 | 37 |
Paid guaranteed benefits | 0 | 0 | 0 |
Dispositions (1) | (2) | ||
Balance at December 31, | 453 | 371 | 273 |
Net | Paid-Up Guarantees | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 31 | 28 | 25 |
Incurred guaranteed benefits | 2 | 3 | 3 |
Paid guaranteed benefits | 0 | 0 | 0 |
Dispositions (1) | 0 | ||
Balance at December 31, | 33 | 31 | 28 |
Net | Guaranteed Minimum Death Benefit | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 224 | 182 | 159 |
Incurred guaranteed benefits | 102 | 42 | 23 |
Paid guaranteed benefits | 0 | 0 | 0 |
Dispositions (1) | 0 | ||
Balance at December 31, | 326 | 224 | 182 |
Net | Guaranteed Minimum Income Benefit | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 488 | 512 | 434 |
Incurred guaranteed benefits | 91 | 71 | 78 |
Paid guaranteed benefits | 0 | 0 | 0 |
Dispositions (1) | (95) | ||
Balance at December 31, | $ 579 | $ 488 | $ 512 |
Insurance (Guarantees Related t
Insurance (Guarantees Related to Annuity Contracts) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Variable Annuity Guarantees: | Guaranteed Death Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 56,136 | $ 54,629 |
Separate account value | 45,431 | 43,359 |
Net amount at risk | $ 990 | $ 1,386 |
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 | $ 25,257 | $ 24,310 |
Separate account value | 24,336 | 23,330 |
Net amount at risk | $ 353 | $ 328 |
Average attained age of contractholders | 65 years | 64 years |
Other Annuity Guarantees: | Guaranteed Annuitization Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 141 | $ 141 |
Net amount at risk | $ 92 | $ 92 |
Average attained age of contractholders | 52 years | 52 years |
Insurance (Guarantees Related58
Insurance (Guarantees Related to Universal and Variable Life Contracts) (Details) - Universal and Variable Life Contracts - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Secondary Guarantees | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (2) | $ 4,679 | $ 4,306 |
Net amount at risk (6) | $ 46,704 | $ 49,161 |
Average attained age of policyholders | 54 years | 53 years |
Paid-Up Guarantees | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (2) | $ 977 | $ 1,014 |
Net amount at risk (6) | $ 6,713 | $ 7,164 |
Average attained age of policyholders | 62 years | 62 years |
Insurance (Fund Groupings) (Det
Insurance (Fund Groupings) (Details) - Variable Annuity and Variable Life - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Fund Groupings | $ 44,762 | $ 42,708 |
Equity | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Fund Groupings | 21,464 | 19,929 |
Balanced | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Fund Groupings | 19,443 | 18,833 |
Bond | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Fund Groupings | 3,798 | 3,882 |
Money Market | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Fund Groupings | $ 57 | $ 64 |
Insurance (Obligations Under Fu
Insurance (Obligations Under Funding Agreements - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Funding agreements issued to certain SPEs | $ 42,700 | $ 39,700 | $ 35,100 |
Funding agreements repaid to certain SPEs | 41,400 | 38,500 | $ 35,500 |
Outstanding funding agreements to certain SPEs | 34,200 | 30,800 | |
Federal Home Loan Bank of New York | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Federal Home Loan Bank Stock | $ 733 | $ 748 |
Insurance (Obligations Under 61
Insurance (Obligations Under Funding Agreements - Liability and Collateral) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Outstanding funding agreements to certain SPEs | $ 34,200 | $ 30,800 |
Invested Assets Pledged As Collateral | 20,775 | 20,750 |
Federal Home Loan Bank of New York | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank amount of advances by branch for funding agreements | 14,445 | 14,445 |
Collateral pledged relating to obligations under funding agreements | 16,605 | 16,828 |
Funding agreements - Federal Agricultural Mortgage Corporation | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Outstanding funding agreements to certain SPEs | 2,550 | 2,550 |
Invested Assets Pledged As Collateral | $ 2,644 | $ 2,645 |
Insurance (Liabilities for Unpa
Insurance (Liabilities for Unpaid Claims and Claims Expense - Development Tables) (Details) $ in Millions | Dec. 31, 2017USD ($)Claims | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) |
Claims Development [Line Items] | |||||||
Total unpaid claims and claim adjustment expenses, net of reinsurance | $ 9,542 | ||||||
Group Life - Term | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 48,034 | ||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance | 46,136 | ||||||
All outstanding liabilities for incurral years not separately stated, net of reinsurance | 5 | ||||||
Total unpaid claims and claim adjustment expenses, net of reinsurance | 1,903 | ||||||
Group Life - Term | Short-duration Insurance Contracts, Incurral Year 2011 | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 6,294 | $ 6,295 | $ 6,287 | $ 6,269 | $ 6,293 | $ 6,290 | $ 6,318 |
Total IBNR Liabilities Plus Expected Development on Reported Claims | $ 1 | ||||||
Cumulative Number of Reported Claims | Claims | 207,301 | ||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance | $ 6,292 | 6,290 | 6,281 | 6,256 | 6,239 | 6,194 | 4,982 |
Group Life - Term | Short-duration Insurance Contracts, Incurral Year 2012 | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 6,569 | 6,568 | 6,546 | 6,569 | 6,579 | 6,503 | |
Total IBNR Liabilities Plus Expected Development on Reported Claims | $ 3 | ||||||
Cumulative Number of Reported Claims | Claims | 208,626 | ||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance | $ 6,565 | 6,558 | 6,532 | 6,518 | 6,472 | 5,132 | |
Group Life - Term | Short-duration Insurance Contracts, Incurral Year 2013 | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 6,730 | 6,720 | 6,719 | 6,713 | 6,637 | ||
Total IBNR Liabilities Plus Expected Development on Reported Claims | $ 15 | ||||||
Cumulative Number of Reported Claims | Claims | 210,643 | ||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance | $ 6,711 | 6,678 | 6,664 | 6,614 | 5,216 | ||
Group Life - Term | Short-duration Insurance Contracts, Incurral Year 2014 | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 6,910 | 6,913 | 6,919 | 6,986 | |||
Total IBNR Liabilities Plus Expected Development on Reported Claims | $ 5 | ||||||
Cumulative Number of Reported Claims | Claims | 210,797 | ||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance | $ 6,869 | 6,858 | 6,809 | 5,428 | |||
Group Life - Term | Short-duration Insurance Contracts, Incurral Year 2015 | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 7,014 | 7,015 | 7,040 | ||||
Total IBNR Liabilities Plus Expected Development on Reported Claims | $ 12 | ||||||
Cumulative Number of Reported Claims | Claims | 211,597 | ||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance | $ 6,958 | 6,913 | 5,524 | ||||
Group Life - Term | Short-duration Insurance Contracts, Incurral Year 2016 | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 7,085 | 7,125 | |||||
Total IBNR Liabilities Plus Expected Development on Reported Claims | $ 21 | ||||||
Cumulative Number of Reported Claims | Claims | 206,610 | ||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance | $ 6,980 | 5,582 | |||||
Group Life - Term | Short-duration Insurance Contracts, Incurral Year 2017 | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 7,432 | ||||||
Total IBNR Liabilities Plus Expected Development on Reported Claims | $ 898 | ||||||
Cumulative Number of Reported Claims | Claims | 186,954 | ||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance | $ 5,761 | ||||||
Group Long-Term Disability | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 7,602 | ||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance | 3,006 | ||||||
All outstanding liabilities for incurral years not separately stated, net of reinsurance | 2,539 | ||||||
Total unpaid claims and claim adjustment expenses, net of reinsurance | 7,135 | ||||||
Group Long-Term Disability | Short-duration Insurance Contracts, Incurral Year 2011 | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 918 | 923 | 924 | 914 | 894 | 916 | 955 |
Total IBNR Liabilities Plus Expected Development on Reported Claims | $ 0 | ||||||
Cumulative Number of Reported Claims | Claims | 21,642 | ||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance | $ 588 | 537 | 478 | 411 | 337 | 217 | $ 44 |
Group Long-Term Disability | Short-duration Insurance Contracts, Incurral Year 2012 | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 1,037 | 1,034 | 1,014 | 980 | 979 | 966 | |
Total IBNR Liabilities Plus Expected Development on Reported Claims | $ 0 | ||||||
Cumulative Number of Reported Claims | Claims | 20,085 | ||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance | $ 591 | 524 | 453 | 365 | 229 | $ 43 | |
Group Long-Term Disability | Short-duration Insurance Contracts, Incurral Year 2013 | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 1,070 | 1,049 | 1,032 | 1,027 | 1,008 | ||
Total IBNR Liabilities Plus Expected Development on Reported Claims | $ 0 | ||||||
Cumulative Number of Reported Claims | Claims | 21,123 | ||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance | $ 551 | 475 | 382 | 234 | $ 43 | ||
Group Long-Term Disability | Short-duration Insurance Contracts, Incurral Year 2014 | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 1,101 | 1,079 | 1,077 | 1,076 | |||
Total IBNR Liabilities Plus Expected Development on Reported Claims | $ 0 | ||||||
Cumulative Number of Reported Claims | Claims | 22,838 | ||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance | $ 526 | 428 | 266 | $ 51 | |||
Group Long-Term Disability | Short-duration Insurance Contracts, Incurral Year 2015 | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 1,093 | 1,105 | 1,082 | ||||
Total IBNR Liabilities Plus Expected Development on Reported Claims | $ 4 | ||||||
Cumulative Number of Reported Claims | Claims | 21,136 | ||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance | $ 427 | 264 | $ 50 | ||||
Group Long-Term Disability | Short-duration Insurance Contracts, Incurral Year 2016 | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 1,139 | 1,131 | |||||
Total IBNR Liabilities Plus Expected Development on Reported Claims | $ 26 | ||||||
Cumulative Number of Reported Claims | Claims | 17,585 | ||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance | $ 267 | $ 49 | |||||
Group Long-Term Disability | Short-duration Insurance Contracts, Incurral Year 2017 | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance | 1,244 | ||||||
Total IBNR Liabilities Plus Expected Development on Reported Claims | $ 585 | ||||||
Cumulative Number of Reported Claims | Claims | 9,258 | ||||||
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance | $ 56 |
Insurance (Short-Duration Contr
Insurance (Short-Duration Contracts Historical Claims) (Details) | Dec. 31, 2017 |
Group Life - Term | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 78.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 20.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 0.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 0.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 0.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 0.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 0.00% |
Group Long-Term Disability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 4.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 18.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 13.90% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 8.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 7.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 6.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 5.60% |
Insurance (Liabilities for Un64
Insurance (Liabilities for Unpaid Claims - Methodology) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Short-duration Insurance Contracts, Discounted Liabilities, Aggregate Discount | $ 1,272 | ||
Group Long-Term Disability | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Short-Duration Contracts, Discounted Liabilities, Amount | 6,000 | $ 5,800 | |
Short-duration Insurance Contracts, Discounted Liabilities, Aggregate Discount | 1,300 | 1,300 | |
Short-duration Insurance Contracts, Discounted Liabilities, Interest Accretion | $ 510 | $ 565 | $ 517 |
Group Long-Term Disability | Minimum | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Short-Duration Contracts, Discounted Liabilities, Discount Rate | 3.00% | ||
Group Long-Term Disability | Maximum | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Short-Duration Contracts, Discounted Liabilities, Discount Rate | 8.00% |
Insurance (Reconciliation of Di
Insurance (Reconciliation of Disclosure to Liability) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total unpaid claims and claim adjustment expenses, net of reinsurance | $ 9,542 | |||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 140 | |||
Total unpaid claims and allocated claims adjustment expense | 9,682 | |||
Discounting | (1,272) | |||
Liability for unpaid claims and claim adjustment liabilities - short-duration | 8,410 | |||
Liability for unpaid claims and claim adjustment liabilities - long-duration | 3,680 | |||
Liability for Claims and Claims Adjustment Expense | 12,090 | $ 11,621 | $ 7,527 | $ 7,310 |
U.S. | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total unpaid claims and claim adjustment expenses, net of reinsurance | 9,038 | |||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 111 | |||
Group Life - Term | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total unpaid claims and claim adjustment expenses, net of reinsurance | 1,903 | |||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 16 | |||
Group Long-Term Disability | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total unpaid claims and claim adjustment expenses, net of reinsurance | 7,135 | |||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 95 | |||
Discounting | (1,300) | $ (1,300) | ||
Other insurance lines - all segments combined | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total unpaid claims and claim adjustment expenses, net of reinsurance | 504 | |||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | $ 29 |
Insurance (Rollforward of Unpai
Insurance (Rollforward of Unpaid Claims) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Balance at January 1, | $ 11,621 | $ 7,527 | $ 7,310 |
Less: Reinsurance recoverables | 1,251 | 273 | 286 |
Net balance at January 1, | 10,370 | 10,531 | 7,024 |
Incurred related to: | |||
Current year | 16,264 | 15,978 | 5,316 |
Prior years | 175 | 322 | 13 |
Total incurred | 16,439 | 16,300 | 5,329 |
Paid related to: | |||
Current year | (12,212) | (12,454) | (3,415) |
Prior years | (3,908) | (3,905) | (1,684) |
Total paid | (16,120) | (16,359) | (5,099) |
Dispositions (4) | 0 | (102) | 0 |
Net balance at December 31, | 10,689 | 10,370 | 10,531 |
Add: Reinsurance recoverables | 1,401 | 1,251 | 273 |
Balance at December 31, | 12,090 | 11,621 | 7,527 |
Scenario, Previously Reported | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Net balance at January 1, | 10,370 | 7,254 | 7,024 |
Paid related to: | |||
Net balance at December 31, | 10,370 | 7,254 | |
Cumulative adjustment | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Net balance at January 1, | 0 | 3,277 | 0 |
Paid related to: | |||
Net balance at December 31, | 0 | $ 3,277 | |
Restatement Adjustment | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Less: Reinsurance recoverables | 712 | ||
Net balance at January 1, | $ 712 | ||
Paid related to: | |||
Net balance at December 31, | 712 | ||
Add: Reinsurance recoverables | $ 712 |
Insurance (Separate Accounts -
Insurance (Separate Accounts - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Separate Accounts [Line Items] | |||
Separate account assets | $ 130,825 | $ 133,836 | |
Gain (Loss) Recognized on Assets Transferred to Separate Account | $ 0 | $ 0 | $ 0 |
Participating Policies as Percentage of Gross Insurance in Force | 4.00% | 4.00% | |
Funding Agreements and Participating Close Out Contracts Included in Separate Accounts with a Guaranteed Minimum Return or Account Value | |||
Schedule Separate Accounts [Line Items] | |||
Average interest rate credited on separate accounts with a guaranteed minimum return or account value | 2.40% | 2.39% | |
Pass Through Separate Accounts | |||
Schedule Separate Accounts [Line Items] | |||
Separate account assets | $ 75,200 | $ 73,600 | |
Separate Accounts With Minimum Return Or Account Value | |||
Schedule Separate Accounts [Line Items] | |||
Separate account assets | $ 55,600 | $ 60,200 |
Deferred Policy Acquisition C68
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (DAC and VOBA) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | |||
Beginning Balance of DAC | $ 4,714 | $ 5,977 | $ 5,905 |
Capitalization of DAC | 61 | 332 | 482 |
Net investment gains (losses) of DAC and net derivative gains (losses) of DAC | 91 | 353 | (111) |
Other expenses of DAC | (331) | (791) | (624) |
Total amortization of DAC | (240) | (438) | (735) |
Unrealized investment gains (losses) of DAC | (215) | (12) | 325 |
Deferred Policy Acquisition Cost, Dispositions | 0 | (1,145) | 0 |
Ending Balance of DAC | 4,320 | 4,714 | 5,977 |
Beginning Balance of VOBA | 29 | 66 | 70 |
Other expenses of VOBA | (1) | (3) | (7) |
Total amortization of VOBA | (1) | (3) | (7) |
Unrealized investment gains (losses) of VOBA | 0 | 13 | 3 |
Value of Business Acquired (VOBA), Dispositions | 0 | (47) | 0 |
Ending Balance of VOBA | 28 | 29 | 66 |
Balance at December 31 | $ 4,348 | $ 4,743 | $ 6,043 |
Deferred Policy Acquisition C69
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (DAC and VOBA by Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | |||
DAC and VOBA | $ 4,348 | $ 4,743 | $ 6,043 |
U.S. | |||
Segment Reporting Information [Line Items] | |||
DAC and VOBA | 413 | 421 | 418 |
MetLife Holdings | |||
Segment Reporting Information [Line Items] | |||
DAC and VOBA | 3,930 | 4,317 | 5,000 |
Corporate & Other | |||
Segment Reporting Information [Line Items] | |||
DAC and VOBA | $ 5 | $ 5 | $ 625 |
Deferred Policy Acquisition C70
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (Deferred Sales Inducements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DSI: | |||
Balance at January 1, | $ 105 | $ 130 | $ 122 |
Capitalization | 1 | 4 | 8 |
Amortization | (8) | (16) | (21) |
Unrealized investment gains (losses) | (5) | 1 | 21 |
Dispositions (1) | 0 | (14) | 0 |
Balance at December 31, | $ 93 | $ 105 | $ 130 |
Deferred Policy Acquisition C71
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (VODA and VOCRA) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | |||
Balance at January 1, | $ 235 | $ 265 | $ 295 |
Amortization | (28) | (30) | (30) |
Balance at December 31, | 207 | 235 | 265 |
Accumulated amortization | $ 250 | $ 222 | $ 192 |
Deferred Policy Acquisition C72
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (Estimated Future Amortization) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Estimated future amortization expense allocated to other expenses for VOBA [Abstract] | |
VOBA 2,018 | $ 2 |
VOBA 2,019 | 2 |
VOBA 2,020 | 2 |
VOBA 2,021 | 2 |
VOBA 2,022 | 2 |
Value of Distribution Agreements and Customer Relationships Acquired [Abstract] | |
VODA and VOCRA 2018 | 26 |
VODA and VOCRA 2019 | 24 |
VODA and VOCRA 2020 | 22 |
VODA and VOCRA 2021 | 19 |
VODA and VOCRA 2022 | $ 17 |
Reinsurance (Effects of Reinsur
Reinsurance (Effects of Reinsurance on Earnings) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Premiums: | |||
Direct premiums | $ 23,062 | $ 21,931 | $ 21,497 |
Reinsurance assumed | 1,116 | 1,687 | 1,679 |
Reinsurance ceded | (1,253) | (1,225) | (1,242) |
Net premiums | 22,925 | 22,393 | 21,934 |
Universal life and investment-type product policy fees: | |||
Direct universal life and investment-type product policy fees | 2,492 | 3,006 | 3,050 |
Reinsurance assumed | 12 | 60 | 58 |
Reinsurance ceded | (277) | (524) | (524) |
Net universal life and investment-type product policy fees | 2,227 | 2,542 | 2,584 |
Other revenues: | |||
Direct other revenues | 930 | 851 | 875 |
Reinsurance assumed | 35 | (2) | 5 |
Reinsurance ceded | 605 | 629 | 656 |
Net other revenues | 1,570 | 1,478 | 1,536 |
Policyholder benefits and claims: | |||
Direct policyholder benefits and claims | 26,199 | 25,248 | 24,561 |
Reinsurance assumed | 875 | 1,496 | 1,454 |
Reinsurance ceded | (1,282) | (1,431) | (1,468) |
Net policyholder benefits and claims | 25,792 | 25,313 | 24,547 |
Interest credited to policyholder account balances: | |||
Direct interest credited to policyholder account balances | 2,199 | 2,279 | 2,240 |
Reinsurance assumed | 49 | 35 | 33 |
Reinsurance ceded | (13) | (81) | (90) |
Net interest credited to policyholder account balances | 2,235 | 2,233 | 2,183 |
Other expenses: | |||
Direct other expenses | 4,489 | 4,830 | 5,448 |
Reinsurance assumed | 138 | 583 | 340 |
Reinsurance ceded | 508 | 390 | 470 |
Total other expenses | $ 5,135 | $ 5,803 | $ 6,258 |
Reinsurance (Effects of Reins74
Reinsurance (Effects of Reinsurance on Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | |||
Premiums, reinsurance and other receivables | $ 22,098 | $ 22,383 | |
Deferred policy acquisition costs and value of business acquired | 4,348 | 4,743 | $ 6,043 |
Total assets | 26,446 | 27,126 | |
Liabilities: | |||
Liability for Future Policy Benefits | 119,415 | 115,519 | |
Policyholder account balances | 93,939 | 92,466 | $ 94,420 |
Other policy-related balances | 7,176 | 7,103 | |
Other Liabilities | 27,409 | 29,497 | |
Total liabilities | 247,939 | 244,585 | |
Assumed Reinsurance [Member] | |||
Assets | |||
Premiums, reinsurance and other receivables | 448 | 620 | |
Deferred policy acquisition costs and value of business acquired | 17 | 55 | |
Total assets | 465 | 675 | |
Liabilities: | |||
Liability for Future Policy Benefits | 1,342 | 1,640 | |
Policyholder account balances | 181 | 577 | |
Other policy-related balances | 247 | 358 | |
Other Liabilities | 2,242 | 2,229 | |
Total liabilities | 4,012 | 4,804 | |
Ceded Reinsurance [Member] | |||
Assets | |||
Premiums, reinsurance and other receivables | 19,159 | 19,551 | |
Deferred policy acquisition costs and value of business acquired | (250) | (289) | |
Total assets | 18,909 | 19,262 | |
Liabilities: | |||
Liability for Future Policy Benefits | (4) | (4) | |
Policyholder account balances | 0 | 0 | |
Other policy-related balances | 15 | 18 | |
Other Liabilities | 16,669 | 16,533 | |
Total liabilities | 16,680 | 16,547 | |
Direct Reinsurance [Member] | |||
Assets | |||
Premiums, reinsurance and other receivables | 2,491 | 2,212 | |
Deferred policy acquisition costs and value of business acquired | 4,581 | 4,977 | |
Total assets | 7,072 | 7,189 | |
Liabilities: | |||
Liability for Future Policy Benefits | 118,077 | 113,883 | |
Policyholder account balances | 93,758 | 91,889 | |
Other policy-related balances | 6,914 | 6,727 | |
Other Liabilities | 8,498 | 10,735 | |
Total liabilities | $ 227,247 | $ 223,234 |
Reinsurance (Effects of Affilia
Reinsurance (Effects of Affiliated Reinsurance on Earnings) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Premiums: | |||
Reinsurance assumed | $ 1,116 | $ 1,687 | $ 1,679 |
Reinsurance ceded | (1,253) | (1,225) | (1,242) |
Net premiums | 22,925 | 22,393 | 21,934 |
Universal life and investment-type product policy fees: | |||
Reinsurance assumed | 12 | 60 | 58 |
Reinsurance ceded | (277) | (524) | (524) |
Net universal life and investment-type product policy fees | 2,227 | 2,542 | 2,584 |
Other revenues: | |||
Reinsurance assumed | 35 | (2) | 5 |
Reinsurance ceded | 605 | 629 | 656 |
Other revenues | 1,570 | 1,478 | 1,536 |
Policyholder benefits and claims: | |||
Reinsurance assumed | 875 | 1,496 | 1,454 |
Reinsurance ceded | (1,282) | (1,431) | (1,468) |
Net policyholder benefits and claims | 25,792 | 25,313 | 24,547 |
Interest credited to policyholder account balances: | |||
Direct interest credited to policyholder account balances | 2,199 | 2,279 | 2,240 |
Reinsurance assumed | 49 | 35 | 33 |
Reinsurance ceded | (13) | (81) | (90) |
Net interest credited to policyholder account balances | 2,235 | 2,233 | 2,183 |
Other expenses: | |||
Reinsurance assumed | 138 | 583 | 340 |
Reinsurance ceded | 508 | 390 | 470 |
Total other expenses | 5,135 | 5,803 | 6,258 |
Affiliated Entity | |||
Universal life and investment-type product policy fees: | |||
Net universal life and investment-type product policy fees | 93 | 138 | 135 |
Other revenues: | |||
Other revenues | 141 | 113 | 151 |
Affiliated Entity | Assumed Reinsurance [Member] | |||
Premiums: | |||
Reinsurance assumed | 122 | 727 | 701 |
Universal life and investment-type product policy fees: | |||
Reinsurance assumed | 12 | 60 | 58 |
Other revenues: | |||
Reinsurance assumed | 37 | (1) | 5 |
Policyholder benefits and claims: | |||
Reinsurance assumed | 69 | 697 | 652 |
Interest credited to policyholder account balances: | |||
Reinsurance assumed | 47 | 34 | 32 |
Other expenses: | |||
Reinsurance assumed | 40 | 490 | 245 |
Affiliated Entity | Ceded Reinsurance [Member] | |||
Premiums: | |||
Reinsurance ceded | (132) | (45) | (40) |
Universal life and investment-type product policy fees: | |||
Reinsurance ceded | (19) | (138) | (141) |
Other revenues: | |||
Reinsurance ceded | 563 | 575 | 607 |
Policyholder benefits and claims: | |||
Reinsurance ceded | (122) | (110) | (106) |
Interest credited to policyholder account balances: | |||
Reinsurance ceded | (13) | (81) | (90) |
Other expenses: | |||
Reinsurance ceded | 600 | 570 | 578 |
Affiliated Entity | Reinsurance [Member] | |||
Premiums: | |||
Net premiums | (10) | 682 | 661 |
Universal life and investment-type product policy fees: | |||
Net universal life and investment-type product policy fees | (7) | (78) | (83) |
Other revenues: | |||
Other revenues | 600 | 574 | 612 |
Policyholder benefits and claims: | |||
Net policyholder benefits and claims | (53) | 587 | 546 |
Interest credited to policyholder account balances: | |||
Net interest credited to policyholder account balances | 34 | (47) | (58) |
Other expenses: | |||
Total other expenses | $ 640 | $ 1,060 | $ 823 |
Reinsurance (Effects of Affil76
Reinsurance (Effects of Affiliated Reinsurance on Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | |||
Premiums, reinsurance and other receivables | $ 22,098 | $ 22,383 | |
Deferred policy acquisition costs and value of business acquired | 4,348 | 4,743 | $ 6,043 |
Total assets | 26,446 | 27,126 | |
Liabilities: | |||
Liability for Future Policy Benefits | 119,415 | 115,519 | |
Policyholder account balances | 93,939 | 92,466 | $ 94,420 |
Other policy-related balances | 7,176 | 7,103 | |
Other Liabilities | 27,409 | 29,497 | |
Total liabilities | 247,939 | 244,585 | |
Assumed Reinsurance [Member] | |||
Assets | |||
Premiums, reinsurance and other receivables | 448 | 620 | |
Deferred policy acquisition costs and value of business acquired | 17 | 55 | |
Total assets | 465 | 675 | |
Liabilities: | |||
Liability for Future Policy Benefits | 1,342 | 1,640 | |
Policyholder account balances | 181 | 577 | |
Other policy-related balances | 247 | 358 | |
Other Liabilities | 2,242 | 2,229 | |
Total liabilities | 4,012 | 4,804 | |
Assumed Reinsurance [Member] | Affiliated Entity | |||
Assets | |||
Premiums, reinsurance and other receivables | 47 | 229 | |
Deferred policy acquisition costs and value of business acquired | 0 | 38 | |
Total assets | 47 | 267 | |
Liabilities: | |||
Liability for Future Policy Benefits | 380 | 663 | |
Policyholder account balances | 166 | 563 | |
Other policy-related balances | 104 | 212 | |
Other Liabilities | 1,858 | 1,853 | |
Total liabilities | 2,508 | 3,291 | |
Ceded Reinsurance [Member] | |||
Assets | |||
Premiums, reinsurance and other receivables | 19,159 | 19,551 | |
Deferred policy acquisition costs and value of business acquired | (250) | (289) | |
Total assets | 18,909 | 19,262 | |
Liabilities: | |||
Liability for Future Policy Benefits | (4) | (4) | |
Policyholder account balances | 0 | 0 | |
Other policy-related balances | 15 | 18 | |
Other Liabilities | 16,669 | 16,533 | |
Total liabilities | 16,680 | 16,547 | |
Ceded Reinsurance [Member] | Affiliated Entity | |||
Assets | |||
Premiums, reinsurance and other receivables | 12,762 | 13,334 | |
Deferred policy acquisition costs and value of business acquired | (180) | (198) | |
Total assets | 12,582 | 13,136 | |
Liabilities: | |||
Liability for Future Policy Benefits | (4) | (4) | |
Policyholder account balances | 0 | 0 | |
Other policy-related balances | 15 | 18 | |
Other Liabilities | 12,970 | 13,065 | |
Total liabilities | $ 12,981 | $ 13,079 |
Reinsurance (Reinsurance - Narr
Reinsurance (Reinsurance - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 01, 2016 | |
Reinsurance Disclosures [Abstract] | |||||
Deposit assets in premiums, reinsurance, and other receivables or secondary guarantee risk for reinsurance | $ 14,500 | $ 14,300 | $ 14,500 | ||
Deposit liabilities in other liabilities for reinsurance | 2,200 | 1,900 | 2,200 | ||
Ceded Credit Risk [Line Items] | |||||
Reinsurance recoverables | 3,000 | 2,900 | 3,000 | ||
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net | 4,743 | 4,348 | 4,743 | $ 6,043 | |
Premiums, reinsurance and other receivables | 22,383 | 22,098 | 22,383 | ||
Other liabilities relating to variable interest entities | 29,497 | 27,409 | 29,497 | ||
Income (loss) before provision for income tax | 2,966 | 1,941 | $ 4,481 | ||
Ceded Credit Risk, Unsecured [Member] | |||||
Ceded Credit Risk [Line Items] | |||||
Reinsurance recoverables | 1,900 | 1,900 | 1,900 | ||
Five Largest Ceded Reinsurers [Member] | |||||
Ceded Credit Risk [Line Items] | |||||
Five largest reinsurers, reinsurance recoverables amount | $ 2,100 | $ 2,100 | $ 2,100 | ||
Five largest reinsurers, reinsurance recoverables percentage | 70.00% | 72.00% | 70.00% | ||
Five Largest Ceded Reinsurers [Member] | Ceded Credit Risk, Unsecured [Member] | |||||
Ceded Credit Risk [Line Items] | |||||
Five largest reinsurers, reinsurance recoverables amount | $ 1,400 | $ 1,300 | $ 1,400 | ||
Mortality Risk [Member] | |||||
Reinsurance Retention Policy [Line Items] | |||||
Percentage of reinsured risk in, excess of stated amount | 90.00% | ||||
Retention amount | $ 2 | ||||
Mortality Risk on Case by Case Basis [Member] | |||||
Reinsurance Retention Policy [Line Items] | |||||
Percentage of reinsured risk in, excess of stated amount | 100.00% | ||||
Retention amount | $ 20 | ||||
Modified Coinsurance of Closed Block [Member] | |||||
Reinsurance Retention Policy [Line Items] | |||||
Reinsured risk percentage | 59.25% | ||||
Recapture Unaffiliated [Member] | |||||
Ceded Credit Risk [Line Items] | |||||
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net | $ 95 | ||||
Premiums, reinsurance and other receivables | 697 | ||||
Other liabilities relating to variable interest entities | $ 713 | ||||
Income (loss) before provision for income tax | $ 72 | ||||
Coinsurance Percentage | 90.00% |
Reinsurance (Related Party Rein
Reinsurance (Related Party Reinsurance Transactions - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2017 | Apr. 01, 2016 | |
Reinsurance Disclosures [Abstract] | |||||||
Net derivatives gains (losses) | $ 427 | $ (423) | $ 418 | ||||
Embedded Derivative, Fair Value of Embedded Derivative Asset | (113) | 382 | |||||
Premiums and Other Receivables, Net | 22,098 | 22,383 | |||||
Liability for Future Policy Benefits | 119,415 | 115,519 | |||||
Policyholder Contract Deposits | 93,939 | 92,466 | 94,420 | ||||
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net | 4,348 | 4,743 | 6,043 | ||||
Other liabilities relating to variable interest entities | 27,409 | 29,497 | |||||
Income (loss) before provision for income tax | 2,966 | 1,941 | 4,481 | ||||
Reinsurance Recoverables, Ceded | 2,900 | 3,000 | |||||
Deposit Contracts, Assets | 14,300 | 14,500 | |||||
Deposit Contracts, Liabilities | 1,900 | 2,200 | |||||
Ceded Credit Risk, Unsecured [Member] | |||||||
Reinsurance Disclosures [Abstract] | |||||||
Reinsurance Recoverables, Ceded | 1,900 | 1,900 | |||||
Affiliated Entity | |||||||
Reinsurance Disclosures [Abstract] | |||||||
Deposit Contracts, Assets | 11,500 | 11,700 | |||||
Deposit Contracts, Liabilities | 1,800 | 2,200 | |||||
Affiliated Entity | Ceded Credit Risk, Unsecured [Member] | |||||||
Reinsurance Disclosures [Abstract] | |||||||
Reinsurance Recoverables, Ceded | $ 13 | 293 | |||||
Funds Withheld On Ceded Reinsurance | Affiliated Entity | |||||||
Reinsurance Disclosures [Abstract] | |||||||
Coinsurance Funds Withheld Basis, Percent | 75.00% | ||||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 16 | 10 | |||||
Net derivatives gains (losses) | (6) | (2) | 12 | ||||
Ceded Guaranteed Minimum Benefit | Affiliated Entity | |||||||
Reinsurance Disclosures [Abstract] | |||||||
Net derivatives gains (losses) | (110) | 33 | 47 | ||||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 0 | 460 | |||||
Closed Block Liabilities Ceded To MetLife Reinsurance Of Charleston | Affiliated Entity | |||||||
Reinsurance Disclosures [Abstract] | |||||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 882 | 767 | |||||
Net derivatives gains (losses) | (115) | (73) | 404 | ||||
Assumed Guaranteed Minimum Benefit [Member] | Affiliated Entity | |||||||
Reinsurance Disclosures [Abstract] | |||||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 3 | 390 | |||||
Net derivatives gains (losses) | 263 | (32) | $ (55) | ||||
Ceded Reinsurance [Member] | |||||||
Reinsurance Disclosures [Abstract] | |||||||
Premiums and Other Receivables, Net | 19,159 | 19,551 | |||||
Liability for Future Policy Benefits | (4) | (4) | |||||
Policyholder Contract Deposits | 0 | 0 | |||||
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net | (250) | (289) | |||||
Other liabilities relating to variable interest entities | 16,669 | 16,533 | |||||
Ceded Reinsurance [Member] | Affiliated Entity | |||||||
Reinsurance Disclosures [Abstract] | |||||||
Premiums and Other Receivables, Net | 12,762 | 13,334 | |||||
Liability for Future Policy Benefits | (4) | (4) | |||||
Policyholder Contract Deposits | 0 | 0 | |||||
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net | (180) | (198) | |||||
Other liabilities relating to variable interest entities | $ 12,970 | $ 13,065 | |||||
Ceded Reinsurance [Member] | Affiliate Recapture Variable Annuities [Member] | Affiliated Entity | |||||||
Reinsurance Disclosures [Abstract] | |||||||
Cash, Cash Equivalents, and Short-term Investments | $ 34 | ||||||
Premiums and Other Receivables, Net | 77 | ||||||
Liability for Future Policy Benefits | 79 | ||||||
Policyholder Contract Deposits | 387 | ||||||
Other liabilities relating to variable interest entities | 76 | ||||||
Income (loss) before provision for income tax | $ 178 | ||||||
Ceded Reinsurance [Member] | MLUS Recapture GMIB [Member] | Affiliated Entity | |||||||
Reinsurance Disclosures [Abstract] | |||||||
Cash, Cash Equivalents, and Short-term Investments | 428 | ||||||
Premiums and Other Receivables, Net | $ 565 | ||||||
Income (loss) before provision for income tax | $ 89 | ||||||
Ceded Reinsurance [Member] | Recapture MLUS [Member] | Affiliated Entity | |||||||
Reinsurance Disclosures [Abstract] | |||||||
Cash, Cash Equivalents, and Short-term Investments | $ 4,300 | ||||||
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net | 87 | ||||||
Other liabilities relating to variable interest entities | $ 4,000 | ||||||
Income (loss) before provision for income tax | $ 95 |
Closed Block (Liabilities and A
Closed Block (Liabilities and Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Closed Block Liabilities | ||||
Future policy benefits | $ 40,463 | $ 40,834 | ||
Other policy-related balances | 222 | 257 | ||
Policyholder dividends payable | 437 | 443 | ||
Policyholder dividend obligation | 2,121 | 1,931 | $ 1,783 | $ 3,155 |
Current income tax payable | 0 | 4 | ||
Other liabilities | 212 | 196 | ||
Total closed block liabilities | 43,455 | 43,665 | ||
Assets Designated to the Closed Block | ||||
Fixed maturity securities available-for-sale, at estimated fair value | 27,904 | 27,220 | ||
Equity securities available-for-sale, at estimated fair value | 70 | 100 | ||
Mortgage loans | 5,878 | 5,935 | ||
Policy loans | 4,548 | 4,553 | ||
Real estate and real estate joint ventures | 613 | 655 | ||
Other invested assets | 731 | 1,246 | ||
Total investments | 39,744 | 39,709 | ||
Accrued investment income | 477 | 467 | ||
Premiums, reinsurance and other receivables; cash and cash equivalents | 14 | 86 | ||
Current income tax recoverable | 35 | 0 | ||
Deferred income tax assets | 36 | 177 | ||
Total assets designated to the closed block | 40,306 | 40,439 | ||
Excess of closed block liabilities over assets designated to the closed block | 3,149 | 3,226 | ||
Amounts included in AOCI: | ||||
Unrealized investment gains (losses), net of income tax | 1,863 | 1,517 | ||
Unrealized gains (losses) on derivatives, net of income tax | (7) | 95 | ||
Allocated to policyholder dividend obligation, net of income tax | (1,379) | (1,255) | ||
Total amounts included in AOCI | 477 | 357 | ||
Maximum future earnings to be recognized from closed block assets and liabilities | $ 3,626 | $ 3,583 |
Closed Block (Policyholder Divi
Closed Block (Policyholder Dividend Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Closed block policyholder dividend obligation | |||
Balance at January 1, | $ 1,931 | $ 1,783 | $ 3,155 |
Change in unrealized investment and derivative gains (losses) | 190 | 148 | (1,372) |
Balance at December 31, | $ 2,121 | $ 1,931 | $ 1,783 |
Closed Block (Revenues and Expe
Closed Block (Revenues and Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||
Premiums | $ 1,736 | $ 1,804 | $ 1,850 |
Net investment income | 1,818 | 1,902 | 1,982 |
Net investment gains (losses) | 1 | (10) | (23) |
Net derivative gains (losses) | (32) | 25 | 27 |
Total revenues | 3,523 | 3,721 | 3,836 |
Expenses | |||
Policyholder benefits and claims | 2,453 | 2,563 | 2,564 |
Policyholder dividends | 976 | 953 | 1,015 |
Other expenses | 125 | 133 | 143 |
Total expenses | 3,554 | 3,649 | 3,722 |
Revenues, net of expenses before provision for income tax expense (benefit) | (31) | 72 | 114 |
Provision for income tax expense (benefit) | 12 | 24 | 41 |
Revenues, net of expenses and provision for income tax expense (benefit) | $ (43) | $ 48 | $ 73 |
Investments (Fixed Maturity and
Investments (Fixed Maturity and Equity Securities Available-For-Sale by Sector) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Available-for-sale Securities [Abstract] | |||
Amortized Cost | $ 157,809 | $ 155,141 | |
Cost or Amortized Cost | 1,579 | 1,785 | |
Gross Unrealized OTTI Loss | (40) | (10) | $ 39 |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $157,809 and $155,141, respectively) | 170,272 | 163,120 | |
Equity securities | 1,658 | 1,839 | |
Fixed maturity securities | |||
Available-for-sale Securities [Abstract] | |||
Gross Unrealized Gain | 13,569 | 10,770 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 1,146 | 2,801 | |
Gross Unrealized OTTI Loss | (40) | (10) | |
U.S. corporate | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 53,291 | 52,665 | |
Gross Unrealized Gain | 5,037 | 4,079 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 238 | 586 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $157,809 and $155,141, respectively) | 58,090 | 56,158 | |
U.S. government and agency | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 35,021 | 32,834 | |
Gross Unrealized Gain | 3,755 | 3,238 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 231 | 457 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $157,809 and $155,141, respectively) | 38,545 | 35,615 | |
Foreign corporate | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 24,367 | 24,596 | |
Gross Unrealized Gain | 1,655 | 957 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 426 | 1,196 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $157,809 and $155,141, respectively) | 25,596 | 24,357 | |
Residential Mortgage Backed Securities [Member] | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 21,735 | 22,786 | |
Gross Unrealized Gain | 1,039 | 911 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 181 | 290 | |
Gross Unrealized OTTI Loss | (41) | (10) | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $157,809 and $155,141, respectively) | 22,634 | 23,417 | |
ABS | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 7,808 | 7,567 | |
Gross Unrealized Gain | 73 | 32 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 15 | 95 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $157,809 and $155,141, respectively) | 7,866 | 7,504 | |
CMBS | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 5,390 | 4,876 | |
Gross Unrealized Gain | 124 | 118 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 26 | 59 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $157,809 and $155,141, respectively) | 5,488 | 4,935 | |
State and political subdivision | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 6,310 | 6,252 | |
Gross Unrealized Gain | 1,245 | 928 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 3 | 44 | |
Gross Unrealized OTTI Loss | 1 | 0 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $157,809 and $155,141, respectively) | 7,551 | 7,136 | |
Foreign government | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 3,887 | 3,565 | |
Gross Unrealized Gain | 641 | 507 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 26 | 74 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $157,809 and $155,141, respectively) | 4,502 | 3,998 | |
Equity securities | |||
Available-for-sale Securities [Abstract] | |||
Gross Unrealized Gain | 96 | 105 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 17 | 51 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Equity securities | 1,658 | 1,839 | |
Common stock | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 1,190 | 1,220 | |
Gross Unrealized Gain | 75 | 91 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 14 | 12 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Equity securities | 1,251 | 1,299 | |
Non-redeemable preferred stock | |||
Available-for-sale Securities [Abstract] | |||
Cost or Amortized Cost | 389 | 565 | |
Gross Unrealized Gain | 21 | 14 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 3 | 39 | |
Gross Unrealized OTTI Loss | 0 | 0 | |
Equity securities | $ 407 | $ 540 |
Investments (Maturities of Fixe
Investments (Maturities of Fixed Maturity Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost, Due in one year or less | $ 6,372 | |
Amortized Cost, Due after one year through five years | 34,198 | |
Amortized Cost, Due after five years through ten years | 30,434 | |
Amortized Cost, Due after ten years | 51,872 | |
Amortized Cost, RMBS, CMBS and ABS | 34,933 | |
Amortized Cost, Subtotal | 157,809 | $ 155,141 |
Estimated Fair Value, Due in one year or less | 6,362 | |
Estimated Fair Value, Due after one year through five years | 35,197 | |
Estimated Fair Value, Due after five years through ten years | 32,042 | |
Estimated Fair Value, Due after ten years | 60,683 | |
Estimated fair value, Mortgage-backed and asset-backed securities | 35,988 | |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $157,809 and $155,141, respectively) | $ 170,272 | $ 163,120 |
Investments (Continuous Gross U
Investments (Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities Available-For-Sale) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
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 | 1,327 | 3,076 |
Total number of securities in an unrealized loss position equal to or greater than 12 months | 1,108 | 940 |
Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss) before Taxes | $ (1,700) | |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 24,911 | $ 30,371 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 222 | 1,413 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 13,721 | 10,962 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 884 | 1,378 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 1,100 | |
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 | 3,727 | 8,406 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 57 | 337 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 2,523 | 2,260 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 181 | 249 |
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 | 13,905 | 6,032 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 76 | 457 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 3,018 | 0 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 155 | 0 |
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 | 1,677 | 5,343 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 43 | 336 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 3,912 | 4,523 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 383 | 860 |
Residential Mortgage Backed Securities [Member] | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 3,673 | 6,662 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 30 | 187 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 3,332 | 1,707 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 110 | 93 |
ABS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 732 | 1,482 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 3 | 12 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 358 | 1,714 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 12 | 83 |
CMBS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 844 | 922 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 6 | 15 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 193 | 432 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 20 | 44 |
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 | 106 | 943 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1 | 43 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 120 | 17 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 3 | 1 |
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 | 247 | 581 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 6 | 26 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 265 | 309 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 20 | 48 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss) before Taxes | 34 | |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 130 | 197 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 14 | 18 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 43 | 130 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 3 | 33 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 17 | |
Common Stock | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 88 | 58 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 14 | 12 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 2 | 10 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 0 | 0 |
Non-redeemable preferred stock | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 42 | 139 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 6 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 41 | 120 |
Equal to or Greater than 12 Months Gross Unrealized Loss | $ 3 | $ 33 |
Investments (Mortgage Loans by
Investments (Mortgage Loans by Portfolio Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Company-held mortgage loans held-for-investment, net | ||||
Commercial mortgage loans | $ 35,440 | $ 34,008 | ||
Percentage of loans receivable on commercial mortgage loans | 60.60% | 60.10% | ||
Agricultural mortgage loans | $ 12,712 | $ 12,358 | ||
Percentage of loans receivable on agricultural mortgage loans | 21.80% | 21.90% | ||
Residential mortgage loans | $ 10,058 | $ 9,895 | ||
Percentage of loans receivable on residential mortgage loans | 17.20% | 17.50% | ||
Subtotal | $ 58,210 | $ 56,261 | ||
Percentage of loans receivable on subtotal | 99.60% | 99.50% | ||
Valuation allowances | $ (271) | $ (267) | $ (257) | $ (258) |
Percentage of loans receivable on valuation allowances | (0.50%) | (0.50%) | ||
Subtotal mortgage loans, net | $ 57,939 | $ 55,994 | ||
Percentage of loans receivable on subtotal mortgage loans held-for-investment, net | 99.10% | 99.00% | ||
Percentage of residential mortgage loans - FVO | 0.90% | 1.00% | ||
Total mortgage loans, net | $ 58,459 | $ 56,560 | ||
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 | $ 520 | $ 566 |
Investments (Mortgage Loans and
Investments (Mortgage Loans and Valuation Allowance by Portfolio Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Mortgage Loans on Real Estate [Line Items] | |||
Unpaid Principal Balance | $ 22 | $ 11 | |
Recorded Investment | 21 | 9 | |
Valuation Allowances | 2 | 1 | |
Unpaid Principal Balance | 385 | 304 | |
Recorded Investment | 351 | 280 | |
Recorded Investment | 57,838 | 55,972 | |
Valuation Allowances | 269 | 266 | |
Carrying Value | 370 | 288 | |
Average Recorded Investment | 322 | 267 | |
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 | 12 | |
Recorded Investment | 0 | 12 | |
Recorded Investment | 35,440 | 33,996 | |
Valuation Allowances | 173 | 167 | |
Carrying Value | 0 | 12 | |
Average Recorded Investment | 5 | 30 | $ 120 |
Agricultural | |||
Mortgage Loans on Real Estate [Line Items] | |||
Unpaid Principal Balance | 22 | 11 | |
Recorded Investment | 21 | 9 | |
Valuation Allowances | 2 | 1 | |
Unpaid Principal Balance | 27 | 27 | |
Recorded Investment | 27 | 27 | |
Recorded Investment | 12,664 | 12,322 | |
Valuation Allowances | 38 | 37 | |
Carrying Value | 46 | 35 | |
Average Recorded Investment | 32 | 49 | 60 |
Residential | |||
Mortgage Loans on Real Estate [Line Items] | |||
Unpaid Principal Balance | 0 | 0 | |
Recorded Investment | 0 | 0 | |
Valuation Allowances | 0 | 0 | |
Unpaid Principal Balance | 358 | 265 | |
Recorded Investment | 324 | 241 | |
Recorded Investment | 9,734 | 9,654 | |
Valuation Allowances | 58 | 62 | |
Carrying Value | 324 | 241 | |
Average Recorded Investment | $ 285 | $ 188 | $ 84 |
Investments (Valuation Allowanc
Investments (Valuation Allowance Rollforward by Portfolio Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Mortgage Loans on Real Estate [Line Items] | |||
Beginning Balance | $ 267 | $ 257 | $ 258 |
Provision (release) | 18 | 30 | 34 |
Charge-offs, net of recoveries | (14) | (16) | (35) |
Ending Balance | 271 | 267 | 257 |
Allowance for Loan and Lease Losses, Loans Sold | (4) | ||
Commercial | |||
Mortgage Loans on Real Estate [Line Items] | |||
Beginning Balance | 167 | 165 | 182 |
Provision (release) | 6 | 6 | 2 |
Charge-offs, net of recoveries | 0 | 0 | (19) |
Ending Balance | 173 | 167 | 165 |
Allowance for Loan and Lease Losses, Loans Sold | (4) | ||
Agricultural | |||
Mortgage Loans on Real Estate [Line Items] | |||
Beginning Balance | 38 | 37 | 35 |
Provision (release) | 4 | 1 | 2 |
Charge-offs, net of recoveries | (2) | 0 | 0 |
Ending Balance | 40 | 38 | 37 |
Allowance for Loan and Lease Losses, Loans Sold | 0 | ||
Residential | |||
Mortgage Loans on Real Estate [Line Items] | |||
Beginning Balance | 62 | 55 | 41 |
Provision (release) | 8 | 23 | 30 |
Charge-offs, net of recoveries | (12) | (16) | (16) |
Ending Balance | $ 58 | 62 | $ 55 |
Allowance for Loan and Lease Losses, Loans Sold | $ 0 |
Investments (Credit Quality of
Investments (Credit Quality of Commercial Mortgage Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 35,440 | $ 34,008 |
% of Total | 100.00% | 100.00% |
Estimated Fair Value | $ 36,056 | $ 34,343 |
% of Total | 100.00% | 100.00% |
Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 30,903 | $ 30,952 |
% of Total | 87.20% | 91.00% |
Estimated Fair Value | $ 31,563 | $ 31,320 |
% of Total | 87.50% | 91.20% |
65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 3,454 | $ 2,720 |
% of Total | 9.70% | 8.00% |
Estimated Fair Value | $ 3,465 | $ 2,694 |
% of Total | 9.60% | 7.90% |
76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 377 | $ 116 |
% of Total | 1.10% | 0.30% |
Estimated Fair Value | $ 363 | $ 115 |
% of Total | 1.00% | 0.30% |
Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 706 | $ 220 |
% of Total | 2.00% | 0.70% |
Estimated Fair Value | $ 665 | $ 214 |
% of Total | 1.90% | 0.60% |
Greater than 1.20x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 33,140 | $ 32,108 |
Greater than 1.20x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 29,346 | 29,352 |
Greater than 1.20x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 3,245 | 2,522 |
Greater than 1.20x | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 149 | 116 |
Greater than 1.20x | Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 400 | 118 |
1.00x - 1.20x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 1,784 | 1,063 |
1.00x - 1.20x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 1,359 | 1,036 |
1.00x - 1.20x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 95 | 0 |
1.00x - 1.20x | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 171 | 0 |
1.00x - 1.20x | Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 159 | 27 |
Less than 1.00x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 516 | 837 |
Less than 1.00x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 198 | 564 |
Less than 1.00x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 114 | 198 |
Less than 1.00x | 76% to 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 57 | 0 |
Less than 1.00x | Greater than 80% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 147 | $ 75 |
Investments (Credit Quality o89
Investments (Credit Quality of Agricultural and Residential Mortgage Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 12,712 | $ 12,358 |
% of Total | 100.00% | 100.00% |
Residential Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 10,058 | $ 9,895 |
% of Total | 100.00% | 100.00% |
Less than 65% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 12,082 | $ 11,829 |
% of Total | 95.00% | 95.70% |
65% to 75% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 581 | $ 424 |
% of Total | 4.60% | 3.40% |
76% to 80% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 40 | $ 17 |
% of Total | 0.30% | 0.20% |
Greater than 80% | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 9 | $ 88 |
% of Total | 0.10% | 0.70% |
Performing | ||
Residential Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 9,614 | $ 9,563 |
% of Total | 95.60% | 96.60% |
Nonperforming | ||
Residential Mortgage Loans - by Credit Quality Indicator: | ||
Recorded investment in Mortgage Loan | $ 444 | $ 332 |
% of Total | 4.40% | 3.40% |
Investments (Past Due and Inter
Investments (Past Due and Interest Accrual Status of Mortgage Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past Due | $ 578 | $ 459 |
Loans and Leases Receivable, Nonperforming, Accrual of Interest | 125 | 104 |
Nonaccrual | 480 | 355 |
Commercial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past Due | 0 | 0 |
Loans and Leases Receivable, Nonperforming, Accrual of Interest | 0 | 0 |
Nonaccrual | 0 | 0 |
Agricultural | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past Due | 134 | 127 |
Loans and Leases Receivable, Nonperforming, Accrual of Interest | 125 | 104 |
Nonaccrual | 36 | 23 |
Residential | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past Due | 444 | 332 |
Loans and Leases Receivable, Nonperforming, Accrual of Interest | 0 | 0 |
Nonaccrual | $ 444 | $ 332 |
Investments (Investment in Leve
Investments (Investment in Leverage Leases) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Investment in leveraged leases | ||
Rental receivables, net | $ 911 | $ 1,171 |
Estimated residual values | 649 | 690 |
Subtotal | 1,560 | 1,861 |
Unearned income | (448) | (572) |
Investment in leases, net of non-recourse debt | 1,112 | 1,289 |
Rental receivables, net | 278 | 300 |
Estimated residual values | 42 | 42 |
Subtotal | 320 | 342 |
Unearned income | (113) | (127) |
Investment in leases, net of non-recourse debt | $ 207 | $ 215 |
Investments (Net Unrealized Inv
Investments (Net Unrealized Investment Gains Losses) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Components of net unrealized investment gains (losses) included in accumulated other comprehensive loss | ||||
Fixed maturity securities | $ 12,349 | $ 7,912 | $ 7,331 | |
Fixed maturity securities with noncredit OTTI losses included in AOCI | 40 | 10 | (39) | |
Total fixed maturity securities | 12,389 | 7,922 | 7,292 | |
Equity securities | 119 | 72 | 27 | |
Derivatives | 1,396 | 2,244 | 2,208 | |
Other | 1 | 16 | 137 | |
Subtotal | 13,905 | 10,254 | 9,664 | |
Future policy benefits | (19) | (9) | (7) | |
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | 0 | (1) | 0 | |
DAC, VOBA and DSI | (790) | (569) | (572) | |
Policyholder dividend obligation | (2,121) | (1,931) | (1,783) | |
Subtotal | (2,930) | (2,510) | (2,362) | |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | (14) | (3) | 14 | |
Deferred income tax benefit (expense) | (3,704) | (2,690) | (2,542) | |
Net unrealized investment gains (losses) | 7,257 | 5,051 | 4,774 | |
Net unrealized investment gains (losses) attributable to noncontrolling interests | 0 | 0 | (1) | |
Net unrealized investment gains (losses) attributable to Metropolitan Life Insurance Company | $ 7,257 | $ 5,051 | $ 4,773 | $ 7,273 |
Investments (Changes in Net Unr
Investments (Changes in Net Unrealized Investment Gains Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes In Net Unrealized Investment Gains Losses Included In Accumulated Other Comprehensive Loss [Abstract] | |||
Balance at January 1, | $ 5,051 | $ 4,773 | $ 7,273 |
Fixed maturity securities on which noncredit OTTI losses have been recognized | 30 | 49 | 27 |
Unrealized investment gains (losses) during the year | 3,621 | 541 | (7,580) |
Unrealized investment gains (losses) relating to: | |||
Future policy benefits | (10) | (2) | 1,957 |
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | 1 | (1) | 3 |
DAC, VOBA and DSI | (221) | 3 | 346 |
Policyholder dividend obligation | (190) | (148) | 1,372 |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | (11) | (17) | (11) |
Deferred income tax benefit (expense) | (1,014) | (148) | 1,386 |
Net unrealized investment gains (losses) | 7,257 | 5,050 | 4,773 |
Net unrealized investment gains (losses) attributable to noncontrolling interests | 0 | 1 | 0 |
Balance at December 31, | 7,257 | 5,051 | 4,773 |
Change in net unrealized investment gains (losses) | 2,206 | 277 | (2,500) |
Change in net unrealized investment gains (losses) attributable to noncontrolling interests | 0 | 1 | 0 |
Change in net unrealized investment gains (losses) attributable to Metropolitan Life Insurance Company | $ 2,206 | $ 278 | $ (2,500) |
Investments (Securities Lending
Investments (Securities Lending) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | $ 15,170 | $ 16,807 |
Security collateral on deposit from counterparties | 11 | 14 |
Reinvestment portfolio — estimated fair value | 15,188 | 16,821 |
Securities Financing Transaction, Cost [Member] | ||
Securities Financing Transaction [Line Items] | ||
Securities loaned | 13,887 | 15,694 |
Securities Financing Transaction, Fair Value [Member] | ||
Securities Financing Transaction [Line Items] | ||
Securities loaned | 14,852 | 16,496 |
Repurchase Agreements [Member] | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 1,000 | |
Reinvestment portfolio — estimated fair value | 1,000 | |
Repurchase Agreements [Member] | Securities Financing Transaction, Cost [Member] | ||
Securities Financing Transaction [Line Items] | ||
Securities Sold under Agreements to Repurchase | $ 900 | |
Repurchase Agreements [Member] | Securities Financing Transaction, Fair Value [Member] | ||
Securities Financing Transaction [Line Items] | ||
Percentage of Reinvestment Portfolio in Fixed Maturity Securities | 66.00% | |
Securities Sold under Agreements to Repurchase | $ 1,031 | |
US Treasury and Government [Member] | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 15,170 | 16,807 |
US Treasury and Government [Member] | Maturity Less than 30 Days [Member] | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 5,279 | $ 5,640 |
US Treasury and Government [Member] | Repurchase Agreements [Member] | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 1,000 | |
US Treasury and Government [Member] | Repurchase Agreements [Member] | Maturity Less than 30 Days [Member] | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | $ 1,000 |
Investments (Securities Lendi95
Investments (Securities Lending Remaining Tenor) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | $ 15,170 | $ 16,807 |
U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 15,170 | 16,807 |
U.S. government and agency | Maturity Overnight | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 2,927 | 4,033 |
U.S. government and agency | Maturity Less than 30 Days [Member] | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 5,279 | 5,640 |
U.S. government and agency | Maturity 30 to 90 Days | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | $ 6,964 | $ 7,134 |
Investments Investments (Repurc
Investments Investments (Repurchase Agreements – Securities Lending) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | $ 15,170 | $ 16,807 |
Securities Lending Reinvestment Portfolio Estimated Fair Value | 15,188 | $ 16,821 |
Repurchase Agreements [Member] | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 1,000 | |
Securities Lending Reinvestment Portfolio Estimated Fair Value | 1,000 | |
Securities Financing Transaction, Cost [Member] | Repurchase Agreements [Member] | ||
Securities Financing Transaction [Line Items] | ||
Securities Sold under Agreements to Repurchase | 900 | |
Securities Financing Transaction, Fair Value [Member] | Repurchase Agreements [Member] | ||
Securities Financing Transaction [Line Items] | ||
Securities Sold under Agreements to Repurchase | $ 1,031 |
Investments Investments (Repu97
Investments Investments (Repurchase Agreements – Securities Lending Remaining Tenor) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | $ 15,170 | $ 16,807 |
US Treasury and Government [Member] | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 15,170 | 16,807 |
Repurchase Agreements [Member] | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 1,000 | |
Repurchase Agreements [Member] | US Treasury and Government [Member] | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 1,000 | |
Maturity Less than 30 Days [Member] | US Treasury and Government [Member] | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 5,279 | $ 5,640 |
Maturity Less than 30 Days [Member] | Repurchase Agreements [Member] | US Treasury and Government [Member] | ||
Securities Financing Transaction [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | $ 1,000 |
Investments (Invested Assets on
Investments (Invested Assets on Deposit, Held In Trust and Pledged as Collateral) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Invested assets on deposit (regulatory deposits) | $ 49 | $ 47 |
Invested assets pledged as collateral | 20,775 | 20,750 |
Total invested assets on deposit and pledged as collateral | $ 20,824 | $ 20,797 |
Investments (PCI Investments by
Investments (PCI Investments by Invested Asset Class) (Details) - Fixed maturity securities - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Purchased credit impaired investments, by invested asset class, held: | ||
Outstanding principal and interest balance | $ 4,607 | $ 5,859 |
Carrying value | $ 3,825 | $ 4,598 |
Investments (PCI Investments Ac
Investments (PCI Investments Acquired) (Details) - Fixed maturity securities - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Purchased credit impaired investments as of their respective acquisition dates | ||
Contractually required payments (including interest) | $ 107 | $ 1,831 |
Cash flows expected to be collected | 78 | 1,644 |
Fair value of investments acquired | $ 72 | $ 1,206 |
Investments (Activity For Accre
Investments (Activity For Accretable Yield on PCI Investments) (Details) - Fixed maturity securities - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accretable yield on purchased distressed assets acquired | ||
Accretable yield, January 1, | $ 1,678 | $ 1,784 |
Accretion recognized in earnings | (273) | (277) |
Disposals | (42) | (138) |
Reclassification (to) from nonaccretable difference | 102 | (129) |
Accretable yield, December 31, | 1,471 | 1,678 |
Investments Purchased [Member] | ||
Accretable yield on purchased distressed assets acquired | ||
Investments purchased | $ 6 | $ 438 |
Investments (Consolidated Varia
Investments (Consolidated Variable Interest Entities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | ||
Total Assets | $ 1,225 | $ 1,186 |
Total Liabilities | 9 | 12 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 43,764 | 44,514 |
Real estate joint ventures [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 1,077 | 1,124 |
Total Liabilities | 0 | 0 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 43 | 95 |
Fixed Maturities [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 116 | 0 |
Total Liabilities | 3 | 0 |
Other | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 32 | 62 |
Total Liabilities | $ 6 | $ 12 |
Investments (Unconsolidated Var
Investments (Unconsolidated Variable Interest Entities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | $ 41,221 | $ 41,632 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 43,764 | 44,514 |
Real estate joint ventures | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 38 | 81 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 43 | 95 |
Other limited partnership interests | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 3,561 | 3,383 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 5,765 | 5,674 |
Other invested assets | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 2,172 | 2,089 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 2,506 | 2,666 |
Structured securities (RMBS, CMBS, and ABS) [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 34,284 | 34,912 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 34,284 | 34,912 |
U.S. and foreign corporate | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 1,166 | 1,167 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 1,166 | $ 1,167 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Net investment income | $ 10,513 | $ 11,083 | $ 11,539 |
Less: Investment expenses | 895 | 763 | 876 |
Fixed maturity securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross Investment Income, Operating | 7,057 | 7,653 | 7,930 |
Equity securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross Investment Income, Operating | 97 | 90 | 91 |
Mortgage loans | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross Investment Income, Operating | 2,647 | 2,539 | 2,514 |
Policy loans | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross Investment Income, Operating | 310 | 404 | 435 |
Real estate and real estate joint ventures | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross Investment Income, Operating | 446 | 488 | 743 |
Other limited partnership interests | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross Investment Income, Operating | 625 | 413 | 519 |
Cash, cash equivalents and short-term investments | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross Investment Income, Operating | 74 | 43 | 25 |
Operating joint venture | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross Investment Income, Operating | 19 | 9 | 9 |
Other | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross Investment Income, Operating | 133 | 207 | 149 |
Subtotal | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross Investment Income, Operating | $ 11,408 | $ 11,846 | $ 12,415 |
Investments (Components of Net
Investments (Components of Net Investment Gains Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Marketable Securities, Gain (Loss) [Abstract] | |||
Fixed maturity securities — net gains (losses) on sales and disposals | $ 23 | $ 169 | $ (114) |
Equity securities — net gains (losses) on sales and disposals | 7 | 19 | 0 |
Other net investment gains (losses): | |||
Mortgage loans | (34) | (20) | (90) |
Real estate and real estate joint ventures | 607 | 142 | 430 |
Other limited partnership interests | (52) | (59) | (66) |
Other | (115) | (32) | (18) |
Subtotal | 406 | 47 | 51 |
FVO CSEs - changes in estimated fair value subsequent to consolidation: | |||
Non-investment portfolio gains (losses) | (72) | 85 | 208 |
Total net investment gains (losses) | 334 | 132 | 259 |
Industrial Domestic Corporate Debt Securities [Member] | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses | 0 | (58) | 0 |
Fixed maturity securities | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses | (6) | (97) | (54) |
Net investment gains (losses) | 17 | 72 | (168) |
Consumer | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses | (5) | 0 | (21) |
Utility | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses | 0 | (20) | (15) |
Communications | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses | 0 | (3) | 0 |
Corporate | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses | (5) | (81) | (36) |
Residential Mortgage Backed Securities [Member] | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses | 0 | (16) | (17) |
State and political subdivision | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses | (1) | 0 | (1) |
Equity securities | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses | (24) | (75) | (37) |
Net investment gains (losses) | (17) | (56) | (37) |
Common stock | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses | (23) | (75) | (37) |
Non-redeemable preferred stock | |||
Marketable Securities, Gain (Loss) [Abstract] | |||
OTTI losses | $ (1) | $ 0 | $ 0 |
Investments (Sales or Disposals
Investments (Sales or Disposals and Impairments of Fixed Maturity and Equity Securities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fixed maturity securities | |||
Components of Sales or Disposals of Fixed Maturity and Equity Securities | |||
Proceeds | $ 34,483 | $ 58,812 | $ 60,957 |
Gross investment gains | 278 | 755 | 584 |
Gross investment losses | (255) | (586) | (698) |
Total OTTI losses: | |||
OTTI losses | (6) | (97) | (54) |
Net investment gains (losses) | 17 | 72 | (168) |
Equity securities | |||
Components of Sales or Disposals of Fixed Maturity and Equity Securities | |||
Proceeds | 738 | 146 | 105 |
Gross investment gains | 18 | 28 | 28 |
Gross investment losses | (11) | (9) | (28) |
Total OTTI losses: | |||
OTTI losses | (24) | (75) | (37) |
Net investment gains (losses) | $ (17) | $ (56) | $ (37) |
Investments (Credit Loss Rollfo
Investments (Credit Loss Rollforward) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Balance at January 1, | $ 157 | $ 188 |
Additions: | ||
Initial impairments — credit loss OTTI on securities not previously impaired | 1 | 1 |
Additional impairments — credit loss OTTI on securities previously impaired | 0 | 13 |
Reductions: | ||
Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI | (47) | (43) |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Change in Status | 0 | (1) |
Increase in cash flows — accretion of previous credit loss OTTI | (1) | (1) |
Balance at December 31, | $ 110 | $ 157 |
Investments (Related Party Inve
Investments (Related Party Investment Transactions) (Details) - Affiliated Entity - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Invested Assets Transferred To And From Affiliates | ||||
Estimated fair value of invested assets transferred to affiliates | $ 292 | $ 453 | $ 5,678 | $ 1,003 |
Amortized cost of invested assets transferred to affiliates | 416 | 5,338 | 941 | |
Net investment gains (losses) recognized on transfers | 37 | 340 | 62 | |
Estimated fair value of invested assets transferred from affiliates | $ 306 | $ 1,583 | $ 237 |
Investments (Fixed Maturity 109
Investments (Fixed Maturity and Equity Securities Available-For-Sale - Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | |||
Other Than Temporary Impairments On Debt Securities Transferred To Other Comprehensive Income Loss | $ 40 | $ 10 | $ (39) |
Summary of Certain Fixed Maturity Securities | |||
Available-for-sale Securities, Debt Securities | 170,272 | 163,120 | |
Non-income producing fixed maturity securities | |||
Summary of Certain Fixed Maturity Securities | |||
Available-for-sale Securities, Debt Securities | 4 | 1 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | (3) | ||
Gross Unrealized Gain | 1 | ||
Residential Mortgage Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Other Than Temporary Impairments On Debt Securities Transferred To Other Comprehensive Income Loss | 41 | 10 | |
Summary of Certain Fixed Maturity Securities | |||
Available-for-sale Securities, Debt Securities | 22,634 | 23,417 | |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 181 | 290 | |
Gross Unrealized Gain | $ 1,039 | $ 911 |
Investments (Evaluation of Avai
Investments (Evaluation of Available-For-Sale Securities for OTTI and Evaluating Temporarily Impaired AFS Securities - Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)Contracts | |
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 | $ 1,700 |
Gross Unrealized Temporary Loss | 1,100 |
Equity securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Change in Gross Unrealized Temporary Loss | (34) |
Gross Unrealized Temporary Loss | 17 |
20% or more | Six months or greater | Fixed maturity securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Gross Unrealized Temporary Loss | $ 109 |
Number of Securities | Contracts | 24 |
20% or more | Six months or greater | Fixed maturity securities | Investment Grade | |
Schedule of Available-for-sale Securities [Line Items] | |
Gross Unrealized Temporary Loss | $ 68 |
Number of Securities | Contracts | 10 |
Percentage of gross unrealized loss | 62.00% |
20% or more | Six months or greater | Fixed maturity securities | Below Investment Grade | |
Schedule of Available-for-sale Securities [Line Items] | |
Gross Unrealized Temporary Loss | $ 41 |
Number of Securities | Contracts | 14 |
Percentage of gross unrealized loss | 38.00% |
Investments (Mortgage Loans - N
Investments (Mortgage Loans - Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)Contracts | Dec. 31, 2016USD ($)Contracts | Dec. 31, 2015USD ($) | |
Mortgage Loans on Real Estate [Line Items] | |||
Financing Receivable, Significant Purchases | $ 3,100 | $ 2,900 | |
Average Recorded Investment | $ 322 | $ 267 | |
Percentage of Mortgage Loans Classified as Performing | 99.00% | 99.00% | |
Agricultural | |||
Mortgage Loans on Real Estate [Line Items] | |||
Average Recorded Investment | $ 32 | $ 49 | $ 60 |
Estimated fair value of mortgage loans held-for-investment | 12,800 | 12,500 | |
Residential | |||
Mortgage Loans on Real Estate [Line Items] | |||
Average Recorded Investment | 285 | 188 | 84 |
Estimated fair value of mortgage loans held-for-investment | 10,600 | 10,300 | |
Commercial mortgage loans | |||
Mortgage Loans on Real Estate [Line Items] | |||
Average Recorded Investment | 5 | 30 | 120 |
Affiliated Entity | |||
Mortgage Loans on Real Estate [Line Items] | |||
Financing Receivable, Significant Sales | 2,500 | 3,600 | 3,000 |
Related Party Transaction, Amounts of Transaction | $ 1,800 | $ 2,100 | $ 1,800 |
Commercial Portfolio Segment [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | Contracts | 0 | 0 | |
Residential | |||
Mortgage Loans on Real Estate [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | Contracts | 500 | 557 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 120 | $ 136 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 108 | $ 122 |
Investments Investments (Invest
Investments Investments (Investments in Tax Credit Partnership - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Carrying value of Tax Credits | $ 1,800 | $ 1,700 | |
Losses From Tax Credits | $ 259 | $ 166 | $ 163 |
Investments (Leverage Leases -
Investments (Leverage Leases - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Leveraged Leases [Abstract] | ||
Deferred income tax liability related to leveraged leases | $ 875 | $ 1,300 |
Loans and Leases Receivable, Other Information | The payment periods for leveraged leases generally range from one to 15 years but in certain circumstances can be over 25 years, while the payment periods for direct financing leases range from one to 20 years. |
Investments (Cash Equivalents -
Investments (Cash Equivalents - Narrative) (Details) - USD ($) $ in Billions | Dec. 31, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Cash equivalents | $ 3.1 | $ 4.7 |
Investments (Concentrations of
Investments (Concentrations of Credit Risk - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||
Fair Value, Concentration of Risk, Investments | $ 0 | $ 0 |
Concentration Risk, Percentage | 10.00% | 10.00% |
Investments (Securities Lend116
Investments (Securities Lending Remaining Tenor - Narrative) (Details) - Estimated fair value $ in Billions | Dec. 31, 2017USD ($) |
Securities Financing Transaction [Line Items] | |
Securities Loaned, Not Subject to Master Netting Arrangement | $ 2.9 |
Securities Investment | |
Securities Financing Transaction [Line Items] | |
Percentage of Reinvestment Portfolio in Fixed Maturity Securities | 62.00% |
Investments (Collectively Signi
Investments (Collectively Significant Equity Method Investments - Narrative) (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | |||
Carrying Value of investments accounted for under the equity method | $ 11.5 | ||
Unfunded commitments for investments accounted for under the equity method | 2.9 | ||
Total assets for investments accounted for under the equity method | 450 | $ 385.3 | |
Total liabilities for investments accounted for under the equity method | 59.5 | 48.5 | |
Net Income (loss) for investments accounted for under the equity method | $ 35 | $ 27.6 | $ 23.4 |
Aggregate Net income Exceeded Stated Percentage Of The Pre Tax Income (Loss) From Continuing Operations | 10.00% | 10.00% |
Investments (Variable Interest
Investments (Variable Interest Entities - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | ||
Total Assets | $ 1,225 | $ 1,186 |
Variable interest, maximum exposure to loss in consolidated securitization entities | 43,764 | 44,514 |
Tax credits guaranteed by third parties that reduce maximum exposure to loss related to other invested assets | 117 | 150 |
Proceeds From Securitizations of Loans Held-for-Investment, Carry Value | 319 | |
Proceeds from Securitizations of Loans Held-for-investment | 339 | |
Gain (Loss) on Securitization of Financial Assets | 20 | |
Transfers Of Financial Assets Accounted For As Sale Initial Fair Value Of Assets Obtained As Proceeds In Period | 52 | |
Real estate joint ventures [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 1,077 | 1,124 |
Variable interest, maximum exposure to loss in consolidated securitization entities | 43 | 95 |
Maximum | Consolidated Securitization Entities | ||
Variable Interest Entity [Line Items] | ||
Variable interest, maximum exposure to loss in consolidated securitization entities | 1 | |
Parent Company [Member] | Real estate joint ventures [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 1,000 | 1,000 |
Affiliated Entity | Real estate joint ventures [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 85 | $ 85 |
Residential Mortgage Backed Securities [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable interest, maximum exposure to loss in consolidated securitization entities | $ 51 |
Investments (Net Investment Gai
Investments (Net Investment Gains Losses - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Gains (losses) from foreign currency transactions | $ 89 | ||
Maximum | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gains (losses) from foreign currency transactions | $ (142) | $ 125 |
Investments (Related Party I120
Investments (Related Party Investment Transactions - Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2017 | Jan. 31, 2017 | Nov. 30, 2016 | Sep. 30, 2016 | Apr. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||||||||
Payments to Acquire Interest in Joint Venture | $ 286 | |||||||
Other invested assets relating to variable interest entities | $ 14,911 | $ 17,255 | ||||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | 73 | 172 | $ 157 | |||||
Cash and Cash Equivalents, at Carrying Value | 5,069 | 5,714 | ||||||
Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 250 | 1,800 | ||||||
Assets Transferred From Affiliates, Estimated Fair Value | 306 | 1,583 | 237 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.03% | |||||||
Debt Instrument, Maturity Date | Sep. 30, 2020 | |||||||
Assets Transferred To Affiliates, Estimated Fair Value | $ 292 | 453 | 5,678 | 1,003 | ||||
Cash and Cash Equivalents, at Carrying Value | $ 275 | |||||||
Transfers of Financial Assets Accounted for as Sale, Amortized Cost of Assets Obtained as Proceeds | 416 | 5,338 | 941 | |||||
Affiliated Entity | Related Party Loan Two [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 500 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.54% | |||||||
Debt Instrument, Maturity Date | Jun. 30, 2019 | |||||||
Affiliated Entity | Related Party Loan Three [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 250 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.57% | |||||||
Debt Instrument, Maturity Date | Oct. 1, 2019 | |||||||
Affiliated Entity | Related Party Loan Four [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 358 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.64% | |||||||
Debt Instrument, Maturity Date | Jul. 15, 2021 | |||||||
Affiliated Entity | Related Party Loan Five [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 467 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.86% | |||||||
Debt Instrument, Maturity Date | Dec. 16, 2021 | |||||||
Affiliated Entity | Other | ||||||||
Related Party Transaction [Line Items] | ||||||||
Carrying value of related party loans | $ 1,800 | 1,800 | ||||||
Related party net investment income | 78 | 91 | 95 | |||||
Affiliated Entity | Structured settlements | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party net investment income | 69 | 64 | ||||||
Annuities Purchased | $ 1,300 | 1,300 | ||||||
American Life Insurance Company [Member] | Other | Surplus Notes, Affiliated [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.17% | |||||||
Debt Instrument, Maturity Date | Jun. 30, 2020 | |||||||
Carrying value of related party loans | $ 100 | 100 | ||||||
Related party net investment income | 3 | 3 | 3 | |||||
Affiliated Entity | Affiliated Maturity [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 250 | |||||||
Affiliated Entity | MetLife Insurance Company USA [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Assets Transferred To Affiliates, Estimated Fair Value | $ 4,300 | |||||||
Transfers of Financial Assets Accounted for as Sale, Amortized Cost of Assets Obtained as Proceeds | $ 4,000 | |||||||
Affiliated Entity | FMLI [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Assets Transferred To Affiliates, Estimated Fair Value | $ 933 | |||||||
Transfers of Financial Assets Accounted for as Sale, Amortized Cost of Assets Obtained as Proceeds | $ 863 | |||||||
Metropolitan Property And Casualty Insurance Company [Member] | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party net investment income | 6 | 5 | $ 4 | |||||
Other invested assets relating to variable interest entities | $ 315 | $ 315 |
Derivatives (Primary Risks) (De
Derivatives (Primary Risks) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | $ 196,172 | $ 200,942 |
Estimated Fair Value Assets | 6,592 | 8,728 |
Estimated Fair Value Liabilities | 2,442 | 3,996 |
Derivatives Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 33,865 | 32,099 |
Estimated Fair Value Assets | 3,365 | 4,010 |
Estimated Fair Value Liabilities | 1,225 | 2,230 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 4,908 | 6,193 |
Estimated Fair Value Assets | 2,336 | 2,250 |
Estimated Fair Value Liabilities | 20 | 230 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value Hedges [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 3,826 | 4,993 |
Estimated Fair Value Assets | 2,289 | 2,221 |
Estimated Fair Value Liabilities | 3 | 6 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value Hedges [Member] | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,082 | 1,200 |
Estimated Fair Value Assets | 47 | 29 |
Estimated Fair Value Liabilities | 17 | 224 |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 28,957 | 25,906 |
Estimated Fair Value Assets | 1,029 | 1,760 |
Estimated Fair Value Liabilities | 1,205 | 2,000 |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedges [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 3,337 | 1,793 |
Estimated Fair Value Assets | 234 | 325 |
Estimated Fair Value Liabilities | 0 | 26 |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedges [Member] | Interest rate forwards | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 3,333 | 4,033 |
Estimated Fair Value Assets | 0 | 0 |
Estimated Fair Value Liabilities | 127 | 370 |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedges [Member] | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 22,287 | 20,080 |
Estimated Fair Value Assets | 795 | 1,435 |
Estimated Fair Value Liabilities | 1,078 | 1,604 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 162,307 | 168,843 |
Estimated Fair Value Assets | 3,227 | 4,718 |
Estimated Fair Value Liabilities | 1,217 | 1,766 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 43,028 | 32,662 |
Estimated Fair Value Assets | 1,722 | 2,514 |
Estimated Fair Value Liabilities | 336 | 879 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Interest rate forwards | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 0 | 396 |
Estimated Fair Value Assets | 0 | 0 |
Estimated Fair Value Liabilities | 0 | 3 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Interest rate floors | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 7,201 | 9,001 |
Estimated Fair Value Assets | 91 | 173 |
Estimated Fair Value Liabilities | 0 | 2 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Interest rate caps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 53,079 | 78,358 |
Estimated Fair Value Assets | 78 | 112 |
Estimated Fair Value Liabilities | 2 | 3 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Interest rate futures | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 2,257 | 2,342 |
Estimated Fair Value Assets | 1 | 3 |
Estimated Fair Value Liabilities | 2 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Interest rate options | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 7,525 | 850 |
Estimated Fair Value Assets | 142 | 144 |
Estimated Fair Value Liabilities | 11 | 1 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Synthetic GICs | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 11,318 | 5,566 |
Estimated Fair Value Assets | 0 | 0 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 6,739 | 8,175 |
Estimated Fair Value Assets | 547 | 1,247 |
Estimated Fair Value Liabilities | 164 | 58 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 961 | 1,396 |
Estimated Fair Value Assets | 16 | 52 |
Estimated Fair Value Liabilities | 7 | 18 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Credit default swaps — purchased | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 980 | 961 |
Estimated Fair Value Assets | 7 | 12 |
Estimated Fair Value Liabilities | 8 | 6 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Credit default swaps — written | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 7,874 | 8,025 |
Estimated Fair Value Assets | 181 | 119 |
Estimated Fair Value Liabilities | 0 | 8 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Equity futures | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,282 | 1,851 |
Estimated Fair Value Assets | 5 | 10 |
Estimated Fair Value Liabilities | 1 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Equity index options | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 14,408 | 11,119 |
Estimated Fair Value Assets | 384 | 260 |
Estimated Fair Value Liabilities | 476 | 426 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Equity variance swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 3,530 | 5,579 |
Estimated Fair Value Assets | 45 | 69 |
Estimated Fair Value Liabilities | 169 | 193 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Equity total return swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,048 | 1,549 |
Estimated Fair Value Assets | 8 | 2 |
Estimated Fair Value Liabilities | 2 | 127 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Equity Total Return Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 1,077 | 1,013 |
Estimated Fair Value Assets | 0 | 1 |
Estimated Fair Value Liabilities | $ 39 | $ 42 |
Derivatives (Net Derivative Gai
Derivatives (Net Derivative Gains Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of Net Derivatives Gains (Losses) | |||
Derivatives and hedging gains (losses) | $ (771) | $ (715) | $ 463 |
Embedded derivatives gains (losses) | 427 | (423) | 418 |
Total net derivative gains (losses) | $ (344) | $ (1,138) | $ 881 |
Derivatives (Earned Income On D
Derivatives (Earned Income On Derivatives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total earned income | $ 649 | $ 859 | $ 770 |
Derivatives Designated as Hedging Instruments [Member] | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total earned income | 302 | 280 | 227 |
Derivatives Designated as Hedging Instruments [Member] | Interest credited to policyholder account balances | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total earned income | (64) | (1) | 28 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total earned income | 0 | (1) | (5) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net derivative gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total earned income | 406 | 577 | 518 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder Benefit And Claim [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total earned income | $ 5 | $ 4 | $ 2 |
Derivatives (Gains Losses Recog
Derivatives (Gains Losses Recognized in Income Not Designated or Qualifying) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | $ (24) | $ (186) | $ (226) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net derivative gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | (1,539) | (794) | 243 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net derivative gains (losses) | Interest rate derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | (343) | (1,088) | (243) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net derivative gains (losses) | Foreign currency [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | (746) | 726 | 678 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net derivative gains (losses) | Credit derivatives — purchased | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | (16) | (23) | 17 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net derivative gains (losses) | Credit derivatives — written | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 102 | 48 | (57) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net derivative gains (losses) | Equity market [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | (536) | (457) | (152) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Investment Gains (Losses) [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | (5) | (14) | (14) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Investment Gains (Losses) [Member] | Interest rate derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 1 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Investment Gains (Losses) [Member] | Foreign currency [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Investment Gains (Losses) [Member] | Credit derivatives — purchased | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | (3) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Investment Gains (Losses) [Member] | Credit derivatives — written | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Investment Gains (Losses) [Member] | Equity market [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | (6) | (14) | (11) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder Benefit And Claim [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | (216) | (94) | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder Benefit And Claim [Member] | Interest rate derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder Benefit And Claim [Member] | Foreign currency [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder Benefit And Claim [Member] | Credit derivatives — purchased | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder Benefit And Claim [Member] | Credit derivatives — written | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder Benefit And Claim [Member] | Equity market [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | $ (216) | $ (94) | $ 0 |
Derivatives (Fair Value Hedges)
Derivatives (Fair Value Hedges) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | $ (24) | $ (186) | $ (226) |
Net Derivative Gains (Losses) Recognized for Hedged Items | 113 | 164 | 220 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | 89 | (22) | (6) |
Interest rate swaps | Fixed maturity securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 4 | 8 | 4 |
Net Derivative Gains (Losses) Recognized for Hedged Items | (5) | (9) | 0 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | (1) | (1) | 4 |
Interest rate swaps | Policyholder account balances [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | (69) | (109) | (4) |
Net Derivative Gains (Losses) Recognized for Hedged Items | 134 | 90 | (6) |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | 65 | (19) | (10) |
Foreign currency swaps | Foreign-denominated fixed maturity securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | (24) | 10 | 14 |
Net Derivative Gains (Losses) Recognized for Hedged Items | 27 | (9) | (5) |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | 3 | 1 | 9 |
Foreign currency swaps | Foreign-denominated policyholder account balances [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Derivatives | 65 | (95) | (240) |
Net Derivative Gains (Losses) Recognized for Hedged Items | (43) | 92 | 231 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | $ 22 | $ (3) | $ (9) |
Derivatives (Cash Flow Hedges)
Derivatives (Cash Flow Hedges) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income Loss | $ 1,400 | $ 2,200 | |
Cash Flow Hedges [Member] | |||
Derivatives in cash flow hedging relationships | |||
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | 122 | (141) | $ (19) |
Cash Flow Hedges [Member] | Interest rate swaps | |||
Derivatives in cash flow hedging relationships | |||
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | 73 | 58 | 76 |
Cash Flow Hedges [Member] | Foreign currency swaps | |||
Derivatives in cash flow hedging relationships | |||
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | (161) | 167 | (92) |
Cash Flow Hedges [Member] | Interest rate forwards | |||
Derivatives in cash flow hedging relationships | |||
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | 210 | (366) | (3) |
Cash Flow Hedges [Member] | Credit forwards | |||
Derivatives in cash flow hedging relationships | |||
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | 0 | 0 | 0 |
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) | 952 | (192) | (591) |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 16 | 0 | 9 |
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) | 24 | 57 | 83 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 18 | 0 | 2 |
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) | 938 | (251) | (679) |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 7 |
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) | (11) | (1) | 4 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (2) | 0 | 0 |
Cash Flow Hedges [Member] | Net derivative gains (losses) | Credit forwards | |||
Derivatives in cash flow hedging relationships | |||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 1 | 3 | 1 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 |
Cash Flow Hedges [Member] | Net Investment Gains (Losses) [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) | 18 | 15 | 13 |
Cash Flow Hedges [Member] | Net Investment Gains (Losses) [Member] | 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 | 12 | 11 |
Cash Flow Hedges [Member] | Net Investment Gains (Losses) [Member] | Foreign currency swaps | |||
Derivatives in cash flow hedging relationships | |||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | (1) | (1) | (1) |
Cash Flow Hedges [Member] | Net Investment Gains (Losses) [Member] | Interest rate forwards | |||
Derivatives in cash flow hedging relationships | |||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 2 | 3 | 2 |
Cash Flow Hedges [Member] | Net Investment Gains (Losses) [Member] | Credit forwards | |||
Derivatives in cash flow hedging relationships | |||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | $ 1 | $ 1 | $ 1 |
Derivatives (Credit Derivatives
Derivatives (Credit Derivatives) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 181 | $ 111 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 7,874 | $ 8,025 |
Weighted Average Years to Maturity | 4 years 2 months | 4 years 5 months |
Aaa/Aa/A | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 45 | $ 33 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 2,352 | $ 2,322 |
Weighted Average Years to Maturity | 2 years 8 months | 3 years 5 months |
Aaa/Aa/A | Single name credit default swaps (3) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 3 | $ 1 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 159 | $ 229 |
Weighted Average Years to Maturity | 2 years 10 months | 2 years 8 months |
Aaa/Aa/A | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 42 | $ 32 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 2,193 | $ 2,093 |
Weighted Average Years to Maturity | 2 years 8 months | 3 years 6 months |
Baa | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 115 | $ 64 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 5,177 | $ 5,293 |
Weighted Average Years to Maturity | 4 years 11 months | 4 years 10 months |
Baa | Single name credit default swaps (3) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 4 | $ 3 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 416 | $ 563 |
Weighted Average Years to Maturity | 1 year 6 months | 2 years 2 months |
Baa | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 111 | $ 61 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 4,761 | $ 4,730 |
Weighted Average Years to Maturity | 5 years 2 months | 5 years 1 month |
Ba | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 1 | $ (2) |
Maximum Amount of Future Payments under Credit Default Swaps | $ 105 | $ 115 |
Weighted Average Years to Maturity | 3 years 5 months | 4 years 2 months |
Ba | Single name credit default swaps (3) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 1 | $ (2) |
Maximum Amount of Future Payments under Credit Default Swaps | $ 105 | $ 115 |
Weighted Average Years to Maturity | 3 years 5 months | 4 years 2 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 | $ 20 | $ 16 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 240 | $ 295 |
Weighted Average Years to Maturity | 4 years 11 months | 4 years 2 months |
B | Single name credit default swaps (3) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 2 | $ 0 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 20 | $ 70 |
Weighted Average Years to Maturity | 3 years 6 months | 1 year 10 months |
B | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 18 | $ 16 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 220 | $ 225 |
Weighted Average Years to Maturity | 5 years | 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 | Dec. 31, 2017 | Dec. 31, 2016 |
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | $ 6,652 | $ 8,844 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 2,422 | 3,960 |
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 | 6,652 | 8,844 |
Estimated fair value of derivative liabilities presented in the consolidated balance sheets | 2,422 | 3,960 |
Net amount of derivative assets after application of master netting agreements and cash | 197 | 241 |
Net amount of derivative liabilities after application of master netting agreements and cash | 0 | 6 |
Over the Counter [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 6,478 | 7,926 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 2,203 | 3,349 |
Gross estimated fair value of derivative assets | (1,891) | (2,737) |
Gross estimated fair value of derivative liabilities | (1,891) | (2,737) |
Cash collateral on derivative assets | (3,448) | (3,418) |
Cash collateral on derivative liabilities | 0 | 0 |
Securities collateral on derivative assets | (954) | (1,560) |
Securities collateral on derivative liabilities | (312) | (609) |
Exchange Traded [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 6 | 13 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 3 | 0 |
Gross estimated fair value of derivative assets | 0 | 0 |
Gross estimated fair value of derivative liabilities | 0 | 0 |
Cash collateral on derivative assets | 0 | 0 |
Cash collateral on derivative liabilities | 0 | 0 |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | (3) | 0 |
Cleared [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 168 | 905 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 216 | 611 |
Gross estimated fair value of derivative assets | (31) | (391) |
Gross estimated fair value of derivative liabilities | (31) | (391) |
Cash collateral on derivative assets | (131) | (497) |
Cash collateral on derivative liabilities | (179) | (217) |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | $ (6) | $ 0 |
Derivatives (Credit Risk on Fre
Derivatives (Credit Risk on Freestanding Derivatives) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in Net Liability Position | $ 313 | $ 612 |
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 |
Fixed Maturity Securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 399 | 684 |
Cash | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 0 | 0 |
Derivatives Subject To Credit-Contingent Provisions [Member] | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in Net Liability Position | 313 | 612 |
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 Subject To Credit-Contingent Provisions [Member] | Fixed Maturity Securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 399 | 684 |
Derivatives Subject To Credit-Contingent Provisions [Member] | Cash | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 0 | 0 |
Derivatives Not Subject To Credit-Contingent Provisions [Member] | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in Net Liability Position | 0 | 0 |
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 [Member] | Fixed Maturity Securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 0 | 0 |
Derivatives Not Subject To Credit-Contingent Provisions [Member] | Cash | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | $ 0 | $ 0 |
Derivatives (Embedded Derivativ
Derivatives (Embedded Derivatives) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset | $ (113) | $ 382 |
Policyholder account balances [Member] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 876 | 1,353 |
Ceded Guaranteed Minimum Benefit [Member] | Premiums, reinsurance and other receivables | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 0 | 460 |
Direct Guaranteed Minimum Benefit [Member] | Policyholder account balances [Member] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | (94) | 169 |
Assumed Guaranteed Minimum Benefit [Member] | Policyholder account balances [Member] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 3 | 390 |
Funds withheld on ceded reinsurance [Member] | Other liabilities | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 898 | 777 |
Other [Member] | Policyholder account balances [Member] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 69 | 17 |
Options embedded in debt or equity securities [Member] | Investments | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset | $ (113) | $ (78) |
Derivatives (Changes in Estimat
Derivatives (Changes in Estimated Fair Value Related to Embedded Derivatives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivatives gains (losses) | $ 427 | $ (423) | $ 418 |
Net derivatives gains (losses) [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivatives gains (losses) | $ 427 | $ (423) | $ 418 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | |||
Estimated Fair Value Assets | $ 6,592 | $ 8,728 | |
Estimated Fair Value Liabilities | 2,442 | 3,996 | |
Maximum Amount of Future Payments under Credit Default Swaps | 7,874 | 8,025 | |
Estimated Fair Value of Credit Default Swaps | 181 | 111 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Embedded derivatives gains (losses) | 427 | (423) | $ 418 |
Derivative Instrument Detail [Abstract] | |||
Net amounts reclassified into net derivatives gains (losses) on discontinued cash flow hedges | $ 20 | $ 17 | 14 |
Hedging exposure to variability in future cash flows for specific length of time | 5 years | 5 years | |
Accumulated Other Comprehensive Income Loss | $ 1,400 | $ 2,200 | |
Deferred net gains (losses) expected to be reclassified to earnings | (11) | ||
Potential future recoveries available to offset maximum amount of future payments under credit default swaps | 27 | 30 | |
Excess cash collateral received on derivatives | 122 | 77 | |
Excess cash collateral provided on derivatives | 9 | 9 | |
Securities collateral received which the company is permitted to sell or repledge, amount that has been sold or repledged | 0 | ||
Over the Counter [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Excess securities collateral received on derivatives | 30 | 21 | |
Derivative, Collateral, Right to Reclaim Securities | 152 | 75 | |
Exchange Traded [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Collateral, Right to Reclaim Securities | 50 | 116 | |
Exchange Cleared [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Collateral, Right to Reclaim Securities | 299 | 531 | |
Nonperformance Risk [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Embedded derivatives gains (losses) | (65) | 76 | 29 |
Ceded Guaranteed Minimum Benefit | Nonperformance Risk [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Embedded derivatives gains (losses) | 1 | (29) | $ (4) |
Accrued Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Estimated Fair Value Assets | 60 | 116 | |
Estimated Fair Value Liabilities | $ (20) | $ (36) |
Fair Value (Recurring Fair Valu
Fair Value (Recurring Fair Value Measurements) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | $ 170,272 | $ 163,120 |
Available-for-sale Securities, Equity Securities | 1,658 | 1,839 |
Short-term investments | 3,155 | 4,690 |
Mortgage Loans on Real Estate | 58,459 | 56,560 |
Derivative assets | 6,592 | 8,728 |
Embedded derivatives within asset host contracts | (113) | 382 |
Separate account assets | 130,825 | 133,836 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,442 | 3,996 |
Long-term Debt | 1,667 | 1,589 |
Separate account liabilities | 130,825 | 133,836 |
Residential mortgage loans — FVO | ||
Assets [Abstract] | ||
Mortgage Loans on Real Estate | 520 | 566 |
Recurring | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 170,272 | 163,120 |
Available-for-sale Securities, Equity Securities | 1,658 | 1,839 |
Short-term investments | 3,155 | 4,690 |
Derivative assets | 6,592 | 8,728 |
Embedded derivatives within asset host contracts | 0 | 460 |
Separate account assets | 130,825 | 133,836 |
Total assets | 313,022 | 313,239 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,442 | 3,996 |
Embedded derivatives within liability host contracts | 876 | 1,353 |
Total liabilities | 3,327 | 5,446 |
Recurring | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 4,565 | 5,494 |
Liabilities [Abstract] | ||
Derivative liabilities | 483 | 1,417 |
Recurring | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 1,405 | 2,763 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,266 | 1,904 |
Recurring | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 188 | 131 |
Liabilities [Abstract] | ||
Derivative liabilities | 8 | 14 |
Recurring | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 434 | 340 |
Liabilities [Abstract] | ||
Derivative liabilities | 685 | 661 |
Recurring | Derivative Liabilities Within Separate Accounts | ||
Liabilities [Abstract] | ||
Separate account liabilities | 9 | 23 |
Recurring | Residential mortgage loans — FVO | ||
Assets [Abstract] | ||
Mortgage Loans on Real Estate | 520 | 566 |
Recurring | Long-term debt | ||
Liabilities [Abstract] | ||
Long-term Debt | 0 | 74 |
Recurring | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 58,090 | 56,158 |
Recurring | U.S. government and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 38,545 | 35,615 |
Recurring | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 25,596 | 24,357 |
Recurring | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 22,634 | 23,417 |
Recurring | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 7,866 | 7,504 |
Recurring | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 7,551 | 7,136 |
Recurring | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 5,488 | 4,935 |
Recurring | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 4,502 | 3,998 |
Recurring | Level 1 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 18,802 | 17,597 |
Available-for-sale Securities, Equity Securities | 399 | 408 |
Short-term investments | 2,056 | 2,945 |
Derivative assets | 6 | 13 |
Embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 23,571 | 27,633 |
Total assets | 44,834 | 48,596 |
Liabilities [Abstract] | ||
Derivative liabilities | 3 | 0 |
Embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 3 | 0 |
Recurring | Level 1 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 1 | 3 |
Liabilities [Abstract] | ||
Derivative liabilities | 2 | 0 |
Recurring | Level 1 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 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 | 5 | 10 |
Liabilities [Abstract] | ||
Derivative liabilities | 1 | 0 |
Recurring | Level 1 | Derivative Liabilities Within Separate Accounts | ||
Liabilities [Abstract] | ||
Separate account liabilities | 0 | 0 |
Recurring | Level 1 | Residential mortgage loans — FVO | ||
Assets [Abstract] | ||
Mortgage Loans on Real Estate | 0 | 0 |
Recurring | Level 1 | Long-term debt | ||
Liabilities [Abstract] | ||
Long-term Debt | 0 | 0 |
Recurring | Level 1 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | U.S. government and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 18,802 | 17,597 |
Recurring | Level 1 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | RMBS | ||
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 | State and political subdivision | ||
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 1 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 2 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 139,777 | 132,112 |
Available-for-sale Securities, Equity Securities | 893 | 1,011 |
Short-term investments | 1,092 | 1,720 |
Derivative assets | 6,473 | 8,579 |
Embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 106,294 | 105,055 |
Total assets | 254,529 | 248,477 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,135 | 3,301 |
Embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 2,142 | 3,317 |
Recurring | Level 2 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 4,556 | 5,489 |
Liabilities [Abstract] | ||
Derivative liabilities | 351 | 917 |
Recurring | Level 2 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 1,405 | 2,763 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,261 | 1,902 |
Recurring | Level 2 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 149 | 101 |
Liabilities [Abstract] | ||
Derivative liabilities | 8 | 14 |
Recurring | Level 2 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 363 | 226 |
Liabilities [Abstract] | ||
Derivative liabilities | 515 | 468 |
Recurring | Level 2 | Derivative Liabilities Within Separate Accounts | ||
Liabilities [Abstract] | ||
Separate account liabilities | 7 | 16 |
Recurring | Level 2 | Residential mortgage loans — FVO | ||
Assets [Abstract] | ||
Mortgage Loans on Real Estate | 0 | 0 |
Recurring | Level 2 | Long-term debt | ||
Liabilities [Abstract] | ||
Long-term Debt | 0 | 0 |
Recurring | Level 2 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 54,629 | 51,303 |
Recurring | Level 2 | U.S. government and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 19,743 | 18,018 |
Recurring | Level 2 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 21,471 | 20,373 |
Recurring | Level 2 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 19,372 | 19,719 |
Recurring | Level 2 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 7,079 | 6,745 |
Recurring | Level 2 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 7,551 | 7,126 |
Recurring | Level 2 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 5,461 | 4,851 |
Recurring | Level 2 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 4,471 | 3,977 |
Recurring | Level 3 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 11,693 | 13,411 |
Available-for-sale Securities, Equity Securities | 366 | 420 |
Short-term investments | 7 | 25 |
Derivative assets | 113 | 136 |
Embedded derivatives within asset host contracts | 0 | 460 |
Separate account assets | 960 | 1,148 |
Total assets | 13,659 | 16,166 |
Liabilities [Abstract] | ||
Derivative liabilities | 304 | 695 |
Embedded derivatives within liability host contracts | 876 | 1,353 |
Total liabilities | 1,182 | 2,129 |
Recurring | Level 3 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 8 | 2 |
Liabilities [Abstract] | ||
Derivative liabilities | 130 | 500 |
Recurring | Level 3 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 5 | 2 |
Recurring | Level 3 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 39 | 30 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 66 | 104 |
Liabilities [Abstract] | ||
Derivative liabilities | 169 | 193 |
Recurring | Level 3 | Derivative Liabilities Within Separate Accounts | ||
Liabilities [Abstract] | ||
Separate account liabilities | 2 | 7 |
Recurring | Level 3 | Residential mortgage loans — FVO | ||
Assets [Abstract] | ||
Mortgage Loans on Real Estate | 520 | 566 |
Recurring | Level 3 | Long-term debt | ||
Liabilities [Abstract] | ||
Long-term Debt | 0 | 74 |
Recurring | Level 3 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 3,461 | 4,855 |
Recurring | Level 3 | U.S. government and agency | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 3 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 4,125 | 3,984 |
Recurring | Level 3 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 3,262 | 3,698 |
Recurring | Level 3 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 787 | 759 |
Recurring | Level 3 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 10 |
Recurring | Level 3 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 27 | 84 |
Recurring | Level 3 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | $ 31 | $ 21 |
Fair Value (Recurring Fair V134
Fair Value (Recurring Fair Value Measurements) (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Net Embedded Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ (113) | $ (78) |
Fair Value Fair Value (Transfer
Fair Value Fair Value (Transfers Between Levels) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
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 | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Interest rate contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | 2.00% | 2.00% |
Repurchase Rate | (0.05%) | (0.44%) |
Interest rate contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | 3.00% | 3.00% |
Repurchase Rate | 0.05% | 0.18% |
Foreign currency exchange rate contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | (0.14%) | 0.50% |
Foreign currency exchange rate contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Swap yield | (0.03%) | 2.36% |
Credit contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Credit spreads | 0.00% | 0.97% |
Credit contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Credit spreads | 0.00% | 0.98% |
Equity market contracts | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Volatility | 11.00% | 14.00% |
Correlation | 10.00% | 40.00% |
Equity market contracts | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Volatility | 31.00% | 32.00% |
Correlation | 30.00% | 40.00% |
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 | 0.25% | 0.25% |
Long-term equity volatilities | 17.40% | 17.40% |
Nonperformance risk spread | 0.02% | 0.04% |
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 | 3.00% | 3.00% |
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 | 3.00% | 3.00% |
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 | 0.04% | 0.04% |
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 | 0.26% | 0.26% |
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 | 10.00% | 10.00% |
Long-term equity volatilities | 25.00% | 25.00% |
Nonperformance risk spread | 0.44% | 0.57% |
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 | 0.09% | 0.09% |
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 | 0.65% | 0.65% |
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. and foreign corporate | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Matrix Pricing - Offered quotes | $ 83 | $ 18 |
Quoted prices | 10 | 25 |
U.S. and foreign corporate | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Matrix Pricing - Offered quotes | 142 | 138 |
Quoted prices | 443 | 700 |
U.S. and foreign corporate | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Matrix Pricing - Offered quotes | 111 | 106 |
Quoted prices | 123 | 117 |
RMBS | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 0 | 19 |
RMBS | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 126 | 137 |
RMBS | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 94 | 91 |
ABS | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 27 | 20 |
Offered quotes | 100 | 98 |
ABS | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 104 | 106 |
Offered quotes | 101 | 100 |
ABS | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 100 | 99 |
Offered quotes | $ 100 | $ 100 |
Fair Value (Unobservable Input
Fair Value (Unobservable Input Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | $ (18) | $ (166) | $ (24) |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Balance at January 1, | (559) | (23) | |
Total realized/unrealized gains (losses) included in net income (loss) | 21 | (168) | (27) |
Total realized/unrealized gains (losses) included in AOCI | 207 | (366) | (2) |
Purchases | 0 | 27 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 140 | (29) | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Balance at December 31, | (191) | (559) | (23) |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (18) | (166) | (24) |
Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | |||
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 | 452 | (863) | 461 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Balance at January 1, | (893) | 186 | |
Total realized/unrealized gains (losses) included in net income (loss) | 450 | (870) | 447 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (433) | (209) | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Balance at December 31, | (876) | (893) | 186 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 452 | (863) | 461 |
Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | GALIC and NELICO | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Total realized/unrealized gains (losses) included in net income (loss) | 420 | ||
Residential mortgage loans — FVO | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 566 | 314 | |
Total realized/unrealized gains (losses) included in net income (loss) | 40 | 8 | 20 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 |
Purchases | 175 | 297 | |
Sales | (179) | (11) | |
Issuances | 0 | 0 | |
Settlements | (82) | (42) | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Balance at December 31, | 520 | 566 | 314 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 27 | 8 | 20 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 27 | 8 | 20 |
Long-term Debt | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | (74) | (36) | |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | (46) | |
Settlements | 34 | 8 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 40 | 0 | |
Balance at December 31, | 0 | (74) | (36) |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 |
U.S. and foreign corporate | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 8,839 | 8,282 | |
Total realized/unrealized gains (losses) included in net income (loss) | (2) | 0 | 38 |
Total realized/unrealized gains (losses) included in AOCI | 416 | (39) | (399) |
Purchases | 2,451 | 1,967 | |
Sales | (1,408) | (1,226) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 58 | 848 | |
Transfers out of Level 3 | (2,768) | (993) | |
Balance at December 31, | 7,586 | 8,839 | 8,282 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (7) | 0 | 7 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (7) | 0 | 7 |
U.S. and foreign corporate | GALIC and NELICO | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Sales | (345) | ||
Structured Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 4,541 | 4,416 | |
Total realized/unrealized gains (losses) included in net income (loss) | 95 | 100 | 101 |
Total realized/unrealized gains (losses) included in AOCI | 109 | 47 | (67) |
Purchases | 900 | 1,821 | |
Sales | (1,282) | (1,339) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 63 | 18 | |
Transfers out of Level 3 | (350) | (522) | |
Balance at December 31, | 4,076 | 4,541 | 4,416 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 83 | 101 | 102 |
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 | 83 | 101 | 102 |
Structured Securities | GALIC and NELICO | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Sales | (117) | ||
State and political subdivision | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 10 | 33 | |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 1 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 2 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 7 | |
Transfers out of Level 3 | (10) | (33) | |
Balance at December 31, | 0 | 10 | 33 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 1 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 1 | 0 |
Foreign government | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 21 | 275 | |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | 1 |
Total realized/unrealized gains (losses) included in AOCI | 0 | (1) | (1) |
Purchases | 19 | 7 | |
Sales | (2) | (40) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | (7) | (220) | |
Balance at December 31, | 31 | 21 | 275 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 1 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 1 |
Foreign government | GALIC and NELICO | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Sales | (38) | ||
Equity securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 420 | 328 | |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | (24) | 12 |
Total realized/unrealized gains (losses) included in AOCI | 17 | 21 | (53) |
Purchases | 14 | 23 | |
Sales | (51) | (15) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 282 | |
Transfers out of Level 3 | (34) | (195) | |
Balance at December 31, | 366 | 420 | 328 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (17) | (29) | 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 | (17) | (29) | 0 |
Equity securities | GALIC and NELICO | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Sales | (1) | ||
Short-term Investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 25 | 200 | |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 |
Purchases | 6 | 28 | |
Sales | 0 | (3) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | (24) | (200) | |
Balance at December 31, | 7 | 25 | 200 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 |
Separate Account Assets | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 1,141 | 1,520 | |
Total realized/unrealized gains (losses) included in net income (loss) | (8) | (2) | 15 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 |
Purchases | 186 | 375 | |
Sales | (80) | (474) | |
Issuances | 1 | 62 | |
Settlements | (93) | (51) | |
Transfers into Level 3 | 35 | 19 | |
Transfers out of Level 3 | (224) | (308) | |
Balance at December 31, | 958 | 1,141 | 1,520 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | $ 0 | $ 0 | $ 0 |
Fair Value (Fair Value Option f
Fair Value (Fair Value Option for Residential Mortgage Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Carrying value at estimated fair value | $ 58,459 | $ 56,560 |
Residential mortgage loans — FVO | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid principal balance | 650 | 794 |
Difference between estimated fair value and unpaid principal balance | (130) | (228) |
Carrying value at estimated fair value | 520 | 566 |
Loans in nonaccrual status | 198 | 214 |
Loans more than 90 days past due | 94 | 137 |
Loans in nonaccrual status or more than 90 days past due, or both - difference between aggregate estimate fair value and unpaid principal balance | $ (102) | $ (150) |
Fair Value (Nonrecurring Fair V
Fair Value (Nonrecurring Fair Value Measurements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Level 3 | Other limited partnership interests | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value After Measurement | $ 58 | $ 95 | $ 57 |
Level 3 | Other assets (2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value After Measurement | 0 | 0 | 0 |
Nonrecurring | Other limited partnership interests | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains (Losses) | (65) | (59) | (31) |
Nonrecurring | Other assets (2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains (Losses) | $ 4 | $ (30) | $ 0 |
Fair Value (Nonrecurring Fai140
Fair Value (Nonrecurring Fair Value Measurements) (Narrative) (Details) - Private Equity And Debt Funds | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Liquidation period | 2 years |
Maximum | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Liquidation period | 10 years |
Fair Value (Financial Instrumen
Fair Value (Financial Instruments Carried at Other Than Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Policy loans | $ 6,006 | $ 5,945 |
Liabilities | ||
Separate account liabilities | 130,825 | 133,836 |
Carrying Value | ||
Assets | ||
Mortgage loans | 57,939 | 55,994 |
Policy loans | 6,006 | 5,945 |
Other limited partnership interests | 214 | 336 |
Other invested assets | 2,260 | 2,263 |
Premiums, reinsurance and other receivables | 15,024 | 14,888 |
Liabilities | ||
Policyholder account balances | 75,323 | 72,944 |
Long-term debt | 1,661 | 1,503 |
Other liabilities | 13,954 | 14,731 |
Separate account liabilities | 61,757 | 65,545 |
Estimated Fair Value | ||
Assets | ||
Mortgage loans | 59,465 | 57,171 |
Policy loans | 7,058 | 6,953 |
Other limited partnership interests | 212 | 362 |
Other invested assets | 2,182 | 2,302 |
Premiums, reinsurance and other receivables | 15,538 | 15,789 |
Liabilities | ||
Policyholder account balances | 76,452 | 74,052 |
Long-term debt | 2,021 | 1,755 |
Other liabilities | 14,037 | 14,814 |
Separate account liabilities | 61,757 | 65,545 |
Estimated Fair Value | Level 1 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Other limited partnership interests | 0 | 0 |
Other invested assets | 0 | 0 |
Premiums, reinsurance and other receivables | 0 | 0 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Long-term debt | 0 | 0 |
Other liabilities | 0 | 0 |
Separate account liabilities | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 261 | 258 |
Other limited partnership interests | 0 | 0 |
Other invested assets | 2,028 | 2,151 |
Premiums, reinsurance and other receivables | 679 | 368 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Long-term debt | 2,021 | 1,755 |
Other liabilities | 547 | 894 |
Separate account liabilities | 61,757 | 65,545 |
Estimated Fair Value | Level 3 | ||
Assets | ||
Mortgage loans | 59,465 | 57,171 |
Policy loans | 6,797 | 6,695 |
Other limited partnership interests | 212 | 362 |
Other invested assets | 154 | 151 |
Premiums, reinsurance and other receivables | 14,859 | 15,421 |
Liabilities | ||
Policyholder account balances | 76,452 | 74,052 |
Long-term debt | 0 | 0 |
Other liabilities | 13,490 | 13,920 |
Separate account liabilities | $ 0 | $ 0 |
Long-term and Short-term Deb142
Long-term and Short-term Debt (Long-term and Short-term Outstanding) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Interest Rate Range Maximum | 7.625% | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ (17) | $ (17) |
Long-term Debt | 1,667 | 1,589 |
Long Term Debt Excluding Consolidated Securitization Entities Face Value | 1,678 | 1,594 |
Long-term debt | 1,661 | 1,577 |
Short-term debt | 243 | 100 |
Debt And Capital Lease Obligations Face Value | 1,921 | 1,694 |
Total | $ 1,904 | 1,677 |
Surplus Notes, Affiliated [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 7.38% | |
Contractual principal balance | $ 700 | 700 |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ (10) | (10) |
Debt Instrument, Maturity Date Range, End | Dec. 15, 2037 | |
Long-term Debt | $ 690 | 690 |
Surplus notes (3) | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 7.83% | |
Debt Instrument, Maturity Date Range, Start | Feb. 15, 2024 | |
Contractual principal balance | $ 400 | 400 |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ (3) | (3) |
Debt Instrument, Maturity Date Range, End | Nov. 1, 2025 | |
Long-term Debt | $ 397 | 397 |
Notes Payable, Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 4.56% | |
Debt Instrument, Maturity Date Range, Start | Sep. 7, 2018 | |
Contractual principal balance | $ 578 | 494 |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ (4) | 4 |
Debt Instrument, Maturity Date Range, End | Jan. 28, 2058 | |
Long-term Debt | $ 574 | 490 |
Short-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 0 | $ 0 |
Minimum | Surplus Notes, Affiliated [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Range Maximum | 7.38% | |
Minimum | Surplus notes (3) | ||
Debt Instrument [Line Items] | ||
Interest Rate Range Maximum | 7.80% | |
Minimum | Notes Payable, Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Range Maximum | 2.20% | |
Maximum | Surplus Notes, Affiliated [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Range Maximum | 7.38% | |
Maximum | Surplus notes (3) | ||
Debt Instrument [Line Items] | ||
Interest Rate Range Maximum | 7.88% | |
Maximum | Notes Payable, Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Range Maximum | 7.29% |
Long-term and Short-term Deb143
Long-term and Short-term Debt (Short-term with Maturities of Year or Less) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | ||
Commercial paper | $ 100 | $ 100 |
Other Short-term Borrowings | 143 | 0 |
Short-term Debt | 243 | 100 |
Short-term Debt, average daily balance | $ 129 | $ 100 |
Short-term Debt Average Days Outstanding | 97 days | 40 days |
Long-term and Short-term Deb144
Long-term and Short-term Debt (Credit Facilities) (Details) - General Credit Facility [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |
Borrowers | MetLife, Inc. and MetLife Funding, Inc. |
Expiration | Dec. 20, 2021 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000 |
Letter of Credit Issuances | 57 |
Collateral financing arrangements | 0 |
Unused Commitments | 2,870 |
Affiliated Entity | |
Debt Instrument [Line Items] | |
Letter of Credit Issuances | $ 73 |
Long-term and Short-term Deb145
Long-term and Short-term Debt (Narrative) (Details) - USD ($) $ in Millions | Dec. 21, 2015 | Nov. 08, 2015 | Nov. 01, 2015 | Aug. 21, 2015 | Dec. 31, 2017 | Oct. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 01, 2017 | Dec. 11, 2015 |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 1.63% | 1.63% | 0.42% | 0.15% | |||||||
Interest Expense, Debt | $ 106 | $ 112 | $ 122 | ||||||||
Long-term debt (includes $6 and $12, respectively, at estimated fair value, relating to variable interest entities) | $ 1,667 | 1,667 | $ 1,589 | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 7.625% | ||||||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 20 | 20 | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | 0 | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 0 | 0 | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 346 | 346 | |||||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 1,300 | 1,300 | |||||||||
Repayments of Long-term Debt | 92 | $ 58 | 673 | ||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 0 | 0 | |||||||||
Affiliated Entity | |||||||||||
Interest Expense, Debt | 52 | 52 | $ 67 | ||||||||
Surplus Notes [Member] | |||||||||||
Long-term debt (includes $6 and $12, respectively, at estimated fair value, relating to variable interest entities) | 397 | 397 | 397 | ||||||||
Contractual principal balance | 400 | 400 | 400 | ||||||||
Repayments of Long-term Debt | $ 200 | ||||||||||
Surplus Notes [Member] | GALIC and NELICO | |||||||||||
Long-term debt (includes $6 and $12, respectively, at estimated fair value, relating to variable interest entities) | 107 | ||||||||||
Notes Payable, Other Payables [Member] | |||||||||||
Long-term debt (includes $6 and $12, respectively, at estimated fair value, relating to variable interest entities) | 574 | 574 | 490 | ||||||||
Contractual principal balance | 578 | 578 | 494 | ||||||||
Notes Payable, Other Payables [Member] | Affiliated Entity | |||||||||||
Contractual principal balance | 139 | 139 | |||||||||
Other Notes MPEH [Member] | |||||||||||
Long-term debt (includes $6 and $12, respectively, at estimated fair value, relating to variable interest entities) | $ 350 | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 75 | 75 | 100 | ||||||||
Debt Instrument, Description of Variable Rate Basis | three-month LIBOR plus 3.70% | ||||||||||
Debt Issuance Costs, Gross | $ 6 | ||||||||||
Mortgage Loans, Affiliated [Member] | |||||||||||
Debt Instrument, Maturity Date | Jan. 1, 2016 | Jan. 1, 2020 | |||||||||
Repayments of Long-term Debt | $ 110 | $ 132 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.26% | ||||||||||
Surplus Notes, Affiliated [Member] | |||||||||||
Long-term debt (includes $6 and $12, respectively, at estimated fair value, relating to variable interest entities) | 690 | 690 | $ 690 | ||||||||
Contractual principal balance | $ 700 | $ 700 | $ 700 | ||||||||
Repayments of Long-term Debt | $ 188 | ||||||||||
Amendment [Member] | Other Notes MPEH [Member] | |||||||||||
Debt Instrument, Maturity Date | Nov. 15, 2022 | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75 | ||||||||||
Debt Instrument, Description of Variable Rate Basis | three-month LIBOR plus 3.25% | ||||||||||
Debt Issuance Costs, Gross | $ 1 |
Long-term and Short-term Debt L
Long-term and Short-term Debt Long-term and Short-term Debt (Credit and Committed Facility - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 11, 2015 | |
General Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Commitment Fee Amount | $ 5 | $ 8 | $ 4 | |
Committed Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Commitment Fee Amount | 5 | $ 4 | $ 4 | |
Letters of Credit Outstanding, Amount | 395 | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 0 | |||
General Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Expiration Date | Dec. 20, 2021 | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000 | |||
Letters of Credit Outstanding, Amount | 57 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 2,870 | |||
Other Notes MPEH [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75 | $ 100 |
Equity (Stock-Based Compensatio
Equity (Stock-Based Compensation Plans - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Stock And Incentive Plans | |||
Equity - Stock-based Compensation Plans [Line Items] | |||
Allocated Share-based Compensation Expense | $ 74 | $ 89 | $ 85 |
Equity (Statutory Net Income (L
Equity (Statutory Net Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus Required | $ 279 | ||
Statutory capital and surplus | $ 389 | ||
Metropolitan Life Insurance Company | |||
Statutory Accounting Practices [Line Items] | |||
Description of Regulatory Capital Requirements under Insurance Regulations | in excess of 370% | in excess of 400% | |
Statutory net income (loss) | $ 1,982 | $ 3,444 | $ 3,703 |
Statutory capital and surplus | 10,384 | 11,195 | |
Statutory Accounting Practices, Prescribed Practice, Amount | $ 1,100 | $ 909 | |
New England Life Insurance Company | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | 157 | ||
General American Life Insurance Company | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | $ 204 |
Equity (Dividend Restrictions)
Equity (Dividend Restrictions) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Statutory Accounting Practices [Line Items] | |||
Paid | $ 2,523 | $ 5,740 | |
Scenario, Forecast | |||
Statutory Accounting Practices [Line Items] | |||
Permitted w/o Approval | $ 3,075 | ||
Metropolitan Life Insurance Company | |||
Statutory Accounting Practices [Line Items] | |||
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | 3,600 | ||
Non-Cash Extraordinary Dividend of NELICO | 981 | ||
Non-Cash Extraordinary Dividend of GALIC | 1,200 | ||
GALIC and NELICO | |||
Statutory Accounting Practices [Line Items] | |||
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | $ 0 |
Equity (Components of Accumulat
Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning of period | $ 3,119 | $ 2,685 | $ 5,034 |
OCI before reclassifications | 4,095 | 636 | (4,846) |
Deferred income tax benefit (expense) | (1,325) | (239) | 1,711 |
AOCI before reclassifications, net of income tax | 5,889 | 3,082 | 1,899 |
Amounts reclassified from AOCI | (709) | 439 | 1,212 |
Deferred income tax benefit (expense) | 248 | (148) | (426) |
Amounts reclassified from AOCI, net of income tax | (461) | 291 | 786 |
Balance end of period | 5,428 | 3,119 | 2,685 |
Unrealized Investment Gains (Losses), Net of Related Offsets | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning of period | 3,592 | 3,337 | 6,200 |
OCI before reclassifications | 3,977 | 792 | (4,839) |
Deferred income tax benefit (expense) | (1,287) | (286) | 1,715 |
AOCI before reclassifications, net of income tax | 6,282 | 3,843 | 3,076 |
Amounts reclassified from AOCI | 102 | 71 | 405 |
Deferred income tax benefit (expense) | (33) | (26) | (144) |
Amounts reclassified from AOCI, net of income tax | 69 | 45 | 261 |
Balance end of period | 6,351 | 3,592 | 3,337 |
Unrealized Gains (Losses) on Derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning of period | 1,459 | 1,436 | 1,073 |
OCI before reclassifications | 122 | (141) | (19) |
Deferred income tax benefit (expense) | (43) | 49 | 6 |
AOCI before reclassifications, net of income tax | 1,538 | 1,344 | 1,060 |
Amounts reclassified from AOCI | (970) | 177 | 578 |
Deferred income tax benefit (expense) | 338 | (62) | (202) |
Amounts reclassified from AOCI, net of income tax | (632) | 115 | 376 |
Balance end of period | 906 | 1,459 | 1,436 |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning of period | (67) | (74) | (3) |
OCI before reclassifications | 26 | (11) | (101) |
Deferred income tax benefit (expense) | (6) | 3 | 30 |
AOCI before reclassifications, net of income tax | (47) | (82) | (74) |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Deferred income tax benefit (expense) | 0 | 0 | 0 |
Amounts reclassified from AOCI, net of income tax | 0 | 0 | 0 |
Balance end of period | (47) | (67) | (74) |
Defined Benefit Plans Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning of period | (1,865) | (2,014) | (2,236) |
OCI before reclassifications | (30) | (4) | 113 |
Deferred income tax benefit (expense) | 11 | (5) | (40) |
AOCI before reclassifications, net of income tax | (1,884) | (2,023) | (2,163) |
Amounts reclassified from AOCI | 159 | 191 | 229 |
Deferred income tax benefit (expense) | (57) | (60) | (80) |
Amounts reclassified from AOCI, net of income tax | 102 | 131 | 149 |
Balance end of period | $ (1,782) | (1,865) | $ (2,014) |
GALIC and NELICO | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from AOCI | (403) | ||
Deferred income tax benefit (expense) | 149 | ||
Amounts reclassified from AOCI, net of income tax | (254) | ||
GALIC and NELICO | Unrealized Investment Gains (Losses), Net of Related Offsets | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from AOCI | (456) | ||
Deferred income tax benefit (expense) | 160 | ||
Amounts reclassified from AOCI, net of income tax | (296) | ||
GALIC and NELICO | Unrealized Gains (Losses) on Derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from AOCI | 0 | ||
Deferred income tax benefit (expense) | 0 | ||
Amounts reclassified from AOCI, net of income tax | 0 | ||
GALIC and NELICO | Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from AOCI | 23 | ||
Deferred income tax benefit (expense) | (8) | ||
Amounts reclassified from AOCI, net of income tax | 15 | ||
GALIC and NELICO | Defined Benefit Plans Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from AOCI | 30 | ||
Deferred income tax benefit (expense) | (3) | ||
Amounts reclassified from AOCI, net of income tax | $ 27 |
Equity (Reclassifications Out o
Equity (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net investment gains (losses) | $ 334 | $ 132 | $ 259 | ||||||||
Net investment income | 10,513 | 11,083 | 11,539 | ||||||||
Net derivative gains (losses) | (344) | (1,138) | 881 | ||||||||
Income (loss) from continuing operations before provision for income tax | 2,966 | 1,941 | 4,481 | ||||||||
Provision for income tax expense (benefit) | 561 | (199) | (1,763) | ||||||||
Net income (loss) | $ 1,628 | $ 708 | $ 644 | $ 547 | $ 301 | $ 628 | $ 323 | $ 490 | 3,527 | 1,742 | 2,718 |
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net income (loss) | 461 | (291) | (786) | ||||||||
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) | 12 | 10 | (208) | ||||||||
Net investment income | 3 | 21 | 31 | ||||||||
Net derivative gains (losses) | (117) | (102) | (228) | ||||||||
Income (loss) from continuing operations before provision for income tax | (102) | (71) | (405) | ||||||||
Provision for income tax expense (benefit) | 33 | 26 | 144 | ||||||||
Net income (loss) | (69) | (45) | (261) | ||||||||
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 | 970 | (177) | (578) | ||||||||
Provision for income tax expense (benefit) | (338) | 62 | 202 | ||||||||
Net income (loss) | 632 | (115) | (376) | ||||||||
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 | 16 | 12 | 11 | ||||||||
Net derivative gains (losses) | 24 | 57 | 83 | ||||||||
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 | 2 | 3 | 2 | ||||||||
Net derivative gains (losses) | (11) | (1) | 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 investment income | (1) | (1) | (1) | ||||||||
Net derivative gains (losses) | 938 | (251) | (679) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Credit forwards | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net investment income | 1 | 1 | 1 | ||||||||
Net derivative gains (losses) | 1 | 3 | 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) | (179) | (198) | (233) | ||||||||
Amortization of prior service (costs) credit | 20 | 7 | 4 | ||||||||
Income (loss) from continuing operations before provision for income tax | (159) | (191) | (229) | ||||||||
Provision for income tax expense (benefit) | 57 | 60 | 80 | ||||||||
Net income (loss) | $ (102) | $ (131) | $ (149) |
Other Expenses (Other Expenses)
Other Expenses (Other Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |||
General and administrative expenses | $ 2,608 | $ 2,598 | $ 3,063 |
Pension, postretirement and postemployment benefit costs | 167 | 251 | 241 |
Premium taxes, other taxes, and licenses & fees | 273 | 367 | 358 |
Commissions and other variable expenses | 1,801 | 2,366 | 2,214 |
Capitalization of DAC | (61) | (332) | (482) |
Amortization of DAC and VOBA | 241 | 441 | 742 |
Interest expense on debt | 106 | 112 | 122 |
Total other expenses | $ 5,135 | $ 5,803 | $ 6,258 |
Other Expenses (Restructuring C
Other Expenses (Restructuring Charges) (Details) - Other expenses - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Charges | ||
Balance at January 1, | $ 21 | $ 37 |
Restructuring charges | 1 | 56 |
Cash payments | (21) | (72) |
Balance at December 31, | 1 | 21 |
Total restructuring charges incurred since inception of initiative | 353 | 352 |
Severance | ||
Restructuring Charges | ||
Balance at January 1, | 17 | 31 |
Restructuring charges | 0 | 52 |
Cash payments | (17) | (66) |
Balance at December 31, | 0 | 17 |
Total restructuring charges incurred since inception of initiative | 306 | 306 |
Lease and Asset Impairment | ||
Restructuring Charges | ||
Balance at January 1, | 4 | 6 |
Restructuring charges | 1 | 4 |
Cash payments | (4) | (6) |
Balance at December 31, | 1 | 4 |
Total restructuring charges incurred since inception of initiative | $ 47 | $ 46 |
Employee Benefit Plans (Obligat
Employee Benefit Plans (Obligations and Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Benefits | U.S. Plans | ||
Change in benefit obligations: | ||
Benefit obligations at January 1, | $ 9,837 | $ 9,760 |
Service costs | 169 | 203 |
Interest costs | 415 | 415 |
Plan participants’ contributions | 0 | 0 |
Net actuarial (gains) losses | 618 | 298 |
Divestitures, settlements and curtailments (2) | 3 | (270) |
Change in benefits and other | 0 | (11) |
Benefits paid | (563) | (558) |
Effect of foreign currency translation | 0 | 0 |
Benefit obligations at December 31, | 10,479 | 9,837 |
Change in plan assets: | ||
Estimated fair value of plan assets at January 1, | 8,721 | 8,490 |
Actual return on plan assets | 947 | 620 |
Divestitures (2) | 0 | (155) |
Plan participants’ contributions | 0 | 0 |
Employer contributions | 266 | 324 |
Benefits paid | (563) | (558) |
Estimated fair value of plan assets at December 31, | 9,371 | 8,721 |
Over (under) funded status at December 31, | (1,108) | (1,116) |
Amounts recognized on the consolidated balance sheets: | ||
Other assets | 55 | 0 |
Other liabilities | (1,163) | (1,116) |
Net amount recognized | (1,108) | (1,116) |
Accumulated other comprehensive (income) loss: | ||
Net actuarial (gains) losses | 2,831 | 2,839 |
Prior service costs (credit) | (10) | (11) |
AOCI, before income tax | 2,821 | 2,828 |
Accumulated benefit obligation | 10,180 | 9,557 |
Other Postretirement Benefits | U.S. Plans | ||
Change in benefit obligations: | ||
Benefit obligations at January 1, | 1,742 | 1,905 |
Service costs | 6 | 9 |
Interest costs | 75 | 82 |
Plan participants’ contributions | 33 | 33 |
Net actuarial (gains) losses | (96) | (119) |
Divestitures, settlements and curtailments (2) | 2 | (8) |
Change in benefits and other | 0 | (43) |
Benefits paid | (106) | (117) |
Effect of foreign currency translation | 0 | 0 |
Benefit obligations at December 31, | 1,656 | 1,742 |
Change in plan assets: | ||
Estimated fair value of plan assets at January 1, | 1,379 | 1,372 |
Actual return on plan assets | 124 | 75 |
Divestitures (2) | 0 | 0 |
Plan participants’ contributions | 33 | 33 |
Employer contributions | (4) | 16 |
Benefits paid | (106) | (117) |
Estimated fair value of plan assets at December 31, | 1,426 | 1,379 |
Over (under) funded status at December 31, | (230) | (363) |
Amounts recognized on the consolidated balance sheets: | ||
Other assets | 160 | 0 |
Other liabilities | (390) | (363) |
Net amount recognized | (230) | (363) |
Accumulated other comprehensive (income) loss: | ||
Net actuarial (gains) losses | (55) | 93 |
Prior service costs (credit) | (26) | (48) |
AOCI, before income tax | (81) | 45 |
United States Pension Plan of US Entity, Non Qualified [Member] | ||
Change in benefit obligations: | ||
Benefit obligations at January 1, | 1,100 | |
Benefit obligations at December 31, | $ 1,200 | $ 1,100 |
Employee Benefit Plans (Paid Be
Employee Benefit Plans (Paid Benefit Obligations and Accumulated Benefit Obligations in Excess of Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Accumulated benefit obligation [Abstract] | ||
Projected benefit obligations | $ 1,163 | $ 1,093 |
Accumulated benefit obligations | 1,116 | 1,046 |
Estimated fair value of plan assets | 0 | 0 |
Defined Benefit Plan, Plan with Benefit Obligation in Excess of Plan Assets [Abstract] | ||
Projected benefit obligations | 1,163 | 9,837 |
Accumulated benefit obligations | 1,116 | 9,557 |
Estimated fair value of plan assets | $ 0 | $ 8,721 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Costs and Other Changes Recognized in OCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Periodic Benefit Cost Amortized From Accumulated Other Comprehensive Income (Loss) [Abstract] | |||
Dispositions (2) | $ 709 | $ (439) | $ (1,212) |
Total recognized in OCI | (129) | (217) | (342) |
Pension Benefits | U.S. Plans | |||
Net periodic benefit costs [Abstract] | |||
Service costs | 169 | 203 | 217 |
Interest costs | 415 | 415 | 404 |
Settlement and curtailment costs (1) | 3 | 1 | 0 |
Expected return on plan assets | (509) | (527) | (538) |
Amortization of net actuarial (gains) losses | 189 | 188 | 190 |
Amortization of prior service costs (credit) | (1) | (1) | (1) |
Allocated to affiliates | 218 | 215 | 213 |
Total net periodic benefit costs (credit) | 218 | 215 | 213 |
Net Periodic Benefit Cost Amortized From Accumulated Other Comprehensive Income (Loss) [Abstract] | |||
Net actuarial (gains) losses | 181 | 176 | 50 |
Prior service costs (credit) | 0 | (11) | 0 |
Amortization of net actuarial (gains) losses | (189) | (188) | (190) |
Amortization of prior service (costs) credit | 1 | 1 | 1 |
Total recognized in OCI | (7) | (54) | (139) |
Total recognized in net periodic benefit costs and OCI | 211 | 161 | 74 |
Pension Benefits | U.S. Plans | Affiliated Entity | |||
Net periodic benefit costs [Abstract] | |||
Allocated to affiliates | (48) | (64) | (59) |
Total net periodic benefit costs (credit) | (48) | (64) | (59) |
Other Postretirement Benefits | U.S. Plans | |||
Net periodic benefit costs [Abstract] | |||
Service costs | 6 | 9 | 15 |
Interest costs | 75 | 82 | 88 |
Settlement and curtailment costs (1) | 2 | 30 | 0 |
Expected return on plan assets | (72) | (74) | (80) |
Amortization of net actuarial (gains) losses | 0 | 10 | 43 |
Amortization of prior service costs (credit) | (22) | (6) | (3) |
Allocated to affiliates | (10) | 42 | 45 |
Total net periodic benefit costs (credit) | (10) | 42 | 45 |
Net Periodic Benefit Cost Amortized From Accumulated Other Comprehensive Income (Loss) [Abstract] | |||
Net actuarial (gains) losses | (148) | (121) | (156) |
Prior service costs (credit) | 0 | (40) | (7) |
Amortization of net actuarial (gains) losses | 0 | (10) | (43) |
Amortization of prior service (costs) credit | 22 | 6 | 3 |
Total recognized in OCI | (126) | (163) | (203) |
Total recognized in net periodic benefit costs and OCI | (136) | (121) | (158) |
Other Postretirement Benefits | U.S. Plans | Affiliated Entity | |||
Net periodic benefit costs [Abstract] | |||
Allocated to affiliates | 1 | (9) | (18) |
Total net periodic benefit costs (credit) | 1 | (9) | (18) |
GALIC and NELICO | |||
Net Periodic Benefit Cost Amortized From Accumulated Other Comprehensive Income (Loss) [Abstract] | |||
Dispositions (2) | 403 | ||
GALIC and NELICO | Pension Benefits | U.S. Plans | |||
Net Periodic Benefit Cost Amortized From Accumulated Other Comprehensive Income (Loss) [Abstract] | |||
Dispositions (2) | 0 | (32) | 0 |
GALIC and NELICO | Other Postretirement Benefits | U.S. Plans | |||
Net Periodic Benefit Cost Amortized From Accumulated Other Comprehensive Income (Loss) [Abstract] | |||
Dispositions (2) | $ 0 | $ 2 | $ 0 |
Employee Benefit Plans (Assumpt
Employee Benefit Plans (Assumptions in Determining Benefit Obligations) (Details) - U.S. Plans | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Benefits | ||
Assumptions used in determining benefit obligations [Abstract] | ||
Weighted average discount rate | 3.65% | 4.30% |
Pension Benefits | Minimum | ||
Assumptions used in determining benefit obligations [Abstract] | ||
Rate of compensation increase | 2.25% | 2.25% |
Pension Benefits | Maximum | ||
Assumptions used in determining benefit obligations [Abstract] | ||
Rate of compensation increase | 8.50% | 8.50% |
Other Postretirement Benefits | ||
Assumptions used in determining benefit obligations [Abstract] | ||
Weighted average discount rate | 3.70% | 4.45% |
Employee Benefit Plans (Assu158
Employee Benefit Plans (Assumptions in Determining Net Periodic Benefit Costs) (Details) - U.S. Plans | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits | |||
Assumptions used in determining net periodic benefit costs [Abstract] | |||
Weighted average discount rate | 4.30% | 4.13% | 4.10% |
Weighted average expected rate of return on plan assets | 6.00% | 6.00% | 6.25% |
Pension Benefits | Minimum | |||
Assumptions used in determining net periodic benefit costs [Abstract] | |||
Rate of compensation increase | 2.25% | 2.25% | 2.25% |
Pension Benefits | Maximum | |||
Assumptions used in determining net periodic benefit costs [Abstract] | |||
Rate of compensation increase | 8.50% | 8.50% | 8.50% |
Other Postretirement Benefits | |||
Assumptions used in determining net periodic benefit costs [Abstract] | |||
Weighted average discount rate | 4.45% | 4.37% | 4.10% |
Weighted average expected rate of return on plan assets | 5.36% | 5.53% | 5.70% |
Employee Benefit Plans (Assumed
Employee Benefit Plans (Assumed Healthcare Cost Trend Rates) (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Before Age 65 | ||
Assumed healthcare costs trend rates | ||
Following year | 5.60% | 6.80% |
Ultimate rate to which cost increase is assumed to decline | 4.00% | 4.00% |
Year in which the ultimate trend rate is reached | 2,086 | 2,077 |
Age 65 and older | ||
Assumed healthcare costs trend rates | ||
Following year | 6.60% | 13.00% |
Ultimate rate to which cost increase is assumed to decline | 4.30% | 4.30% |
Year in which the ultimate trend rate is reached | 2,098 | 2,092 |
Employee Benefit Plans (One Per
Employee Benefit Plans (One Percent Change in Assumed Healthcare Cost Trend Rates) (Details) - Other Postretirement Benefits - U.S. Plans $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
One-percentage point change in assumed healthcare cost trend rates [Abstract] | |
Effect on total of service and interest costs components, one percent increase | $ 9 |
Effect on total of service and interest costs components, one percent decrease | (8) |
Effect of accumulated postretirement benefit obligations, one percent increase | 186 |
Effect of accumulated postretirement benefit obligations, one percent decrease | $ (154) |
Employee Benefit Plans (Actual
Employee Benefit Plans (Actual & Target Allocation of Fair Value by Asset Class) (Details) - U.S. Plans | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Benefits | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Actual | 100.00% | 100.00% |
Other Postretirement Benefits | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Actual | 100.00% | 100.00% |
Fixed maturity securities | Pension Benefits | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Target | 82.00% | |
Actual | 82.00% | 81.00% |
Fixed maturity securities | Other Postretirement Benefits | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Target | 85.00% | |
Actual | 84.00% | 76.00% |
Equity securities | Pension Benefits | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Target | 10.00% | |
Actual | 10.00% | 11.00% |
Equity securities | Other Postretirement Benefits | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Target | 15.00% | |
Actual | 15.00% | 24.00% |
Alternative securities | Pension Benefits | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Target | 8.00% | |
Actual | 8.00% | 8.00% |
Alternative securities | Other Postretirement Benefits | ||
Actual weighted average asset allocation by major asset class for the Invested Plans [Abstract] | ||
Target | 0.00% | |
Actual | 1.00% | 0.00% |
Employee Benefit Plans (Estimat
Employee Benefit Plans (Estimated Fair Value on a Recurring Basis) (Details) - U.S. Plans - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 9,371 | $ 8,721 | $ 8,490 |
Pension Benefits | Fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7,678 | 7,050 | |
Pension Benefits | Corporate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,727 | 3,406 | |
Pension Benefits | U.S. government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,784 | 1,659 | |
Pension Benefits | Foreign government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 937 | 775 | |
Pension Benefits | Federal agencies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 169 | 196 | |
Pension Benefits | Municipals securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 335 | 313 | |
Pension Benefits | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 327 | 330 | |
Pension Benefits | Other (1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 399 | 371 | |
Pension Benefits | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 891 | 854 | |
Pension Benefits | Common stock - domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 571 | 474 | |
Pension Benefits | Common stock - foreign | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 320 | 380 | |
Pension Benefits | Other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 766 | 739 | |
Pension Benefits | Derivative assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 36 | 78 | |
Pension Benefits | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,263 | 2,643 | |
Pension Benefits | Level 1 | Fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,433 | 1,773 | |
Pension Benefits | Level 1 | Corporate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 1 | U.S. government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,256 | 1,655 | |
Pension Benefits | Level 1 | Foreign government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 1 | Federal agencies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 35 | 0 | |
Pension Benefits | Level 1 | Municipals securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 1 | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 135 | 118 | |
Pension Benefits | Level 1 | Other (1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7 | 0 | |
Pension Benefits | Level 1 | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 797 | 854 | |
Pension Benefits | Level 1 | Common stock - domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 480 | 474 | |
Pension Benefits | Level 1 | Common stock - foreign | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 317 | 380 | |
Pension Benefits | Level 1 | Other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 1 | Derivative assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 33 | 16 | |
Pension Benefits | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6,472 | 5,371 | |
Pension Benefits | Level 2 | Fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6,235 | 5,268 | |
Pension Benefits | Level 2 | Corporate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,726 | 3,406 | |
Pension Benefits | Level 2 | U.S. government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 528 | 4 | |
Pension Benefits | Level 2 | Foreign government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 937 | 775 | |
Pension Benefits | Level 2 | Federal agencies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 134 | 196 | |
Pension Benefits | Level 2 | Municipals securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 335 | 313 | |
Pension Benefits | Level 2 | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 192 | 212 | |
Pension Benefits | Level 2 | Other (1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 383 | 362 | |
Pension Benefits | Level 2 | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 91 | 0 | |
Pension Benefits | Level 2 | Common stock - domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 91 | 0 | |
Pension Benefits | Level 2 | Common stock - foreign | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 2 | Other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 144 | 105 | |
Pension Benefits | Level 2 | Derivative assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | (2) | |
Pension Benefits | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 636 | 707 | |
Pension Benefits | Level 3 | Fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10 | 9 | |
Pension Benefits | Level 3 | Corporate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 0 | 78 |
Pension Benefits | Level 3 | U.S. government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 3 | Foreign government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | 17 |
Pension Benefits | Level 3 | Federal agencies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 3 | Municipals securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 3 | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 3 | Other (1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9 | 9 | 7 |
Pension Benefits | Level 3 | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 0 | |
Pension Benefits | Level 3 | Common stock - domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 3 | Common stock - foreign | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 0 | 0 |
Pension Benefits | Level 3 | Other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 622 | 634 | 722 |
Pension Benefits | Level 3 | Derivative assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 64 | 75 |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,426 | 1,379 | $ 1,372 |
Other Postretirement Benefits | Fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,263 | 1,143 | |
Other Postretirement Benefits | Corporate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 382 | 325 | |
Other Postretirement Benefits | U.S. government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 275 | 211 | |
Other Postretirement Benefits | Foreign government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 94 | 72 | |
Other Postretirement Benefits | Federal agencies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 17 | 28 | |
Other Postretirement Benefits | Municipals securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 28 | 23 | |
Other Postretirement Benefits | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 399 | 429 | |
Other Postretirement Benefits | Other (1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 68 | 55 | |
Other Postretirement Benefits | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 153 | 235 | |
Other Postretirement Benefits | Common stock - domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 80 | 113 | |
Other Postretirement Benefits | Common stock - foreign | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 73 | 122 | |
Other Postretirement Benefits | Other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9 | 0 | |
Other Postretirement Benefits | Derivative assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Other Postretirement Benefits | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 451 | 479 | |
Other Postretirement Benefits | Level 1 | Fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 297 | 243 | |
Other Postretirement Benefits | Level 1 | Corporate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 20 | 20 | |
Other Postretirement Benefits | Level 1 | U.S. government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 269 | 210 | |
Other Postretirement Benefits | Level 1 | Foreign government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Federal agencies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Municipals securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 13 | |
Other Postretirement Benefits | Level 1 | Other (1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 153 | 235 | |
Other Postretirement Benefits | Level 1 | Common stock - domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 80 | 113 | |
Other Postretirement Benefits | Level 1 | Common stock - foreign | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 73 | 122 | |
Other Postretirement Benefits | Level 1 | Other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Derivative assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Other Postretirement Benefits | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 975 | 900 | |
Other Postretirement Benefits | Level 2 | Fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 966 | 900 | |
Other Postretirement Benefits | Level 2 | Corporate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 362 | 305 | |
Other Postretirement Benefits | Level 2 | U.S. government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 1 | |
Other Postretirement Benefits | Level 2 | Foreign government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 94 | 72 | |
Other Postretirement Benefits | Level 2 | Federal agencies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 17 | 28 | |
Other Postretirement Benefits | Level 2 | Municipals securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 28 | 23 | |
Other Postretirement Benefits | Level 2 | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 391 | 416 | |
Other Postretirement Benefits | Level 2 | Other (1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 68 | 55 | |
Other Postretirement Benefits | Level 2 | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 2 | Common stock - domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 2 | Common stock - foreign | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 2 | Other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9 | 0 | |
Other Postretirement Benefits | Level 2 | Derivative assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Corporate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 3 | U.S. government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Foreign government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Federal agencies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Municipals securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Other (1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Common stock - domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Common stock - foreign | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Derivative assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Employee Benefit Plans (Signifi
Employee Benefit Plans (Significant Unobservable Inputs) (Details) - Pension Benefits - U.S. Plans - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | ||
Estimated fair value of plan assets at January 1, | $ 8,721 | $ 8,490 |
Estimated fair value of plan assets at December 31, | 9,371 | 8,721 |
Corporate | ||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | ||
Estimated fair value of plan assets at January 1, | 3,406 | |
Estimated fair value of plan assets at December 31, | 3,727 | 3,406 |
Foreign government | ||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | ||
Estimated fair value of plan assets at January 1, | 775 | |
Estimated fair value of plan assets at December 31, | 937 | 775 |
Other (1) | ||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | ||
Estimated fair value of plan assets at January 1, | 371 | |
Estimated fair value of plan assets at December 31, | 399 | 371 |
Common Stock - Foreign | ||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | ||
Estimated fair value of plan assets at January 1, | 380 | |
Estimated fair value of plan assets at December 31, | 320 | 380 |
Other investments | ||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | ||
Estimated fair value of plan assets at January 1, | 739 | |
Estimated fair value of plan assets at December 31, | 766 | 739 |
Derivative assets | ||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | ||
Estimated fair value of plan assets at January 1, | 78 | |
Estimated fair value of plan assets at December 31, | 36 | 78 |
Level 3 | ||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | ||
Estimated fair value of plan assets at January 1, | 707 | |
Estimated fair value of plan assets at December 31, | 636 | 707 |
Level 3 | Corporate | ||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | ||
Estimated fair value of plan assets at January 1, | 0 | 78 |
Realized gains (losses) | (10) | 3 |
Unrealized gains (losses) | 10 | 3 |
Purchases, sales, issuances and settlements, net | 0 | (22) |
Transfers into and/or out of Level 3 | 1 | (62) |
Estimated fair value of plan assets at December 31, | 1 | 0 |
Level 3 | Foreign government | ||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | ||
Estimated fair value of plan assets at January 1, | 0 | 17 |
Realized gains (losses) | 0 | 0 |
Unrealized gains (losses) | 0 | (4) |
Purchases, sales, issuances and settlements, net | 0 | (3) |
Transfers into and/or out of Level 3 | 0 | (10) |
Estimated fair value of plan assets at December 31, | 0 | 0 |
Level 3 | Other (1) | ||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | ||
Estimated fair value of plan assets at January 1, | 9 | 7 |
Realized gains (losses) | 0 | 0 |
Unrealized gains (losses) | 0 | 1 |
Purchases, sales, issuances and settlements, net | 7 | 0 |
Transfers into and/or out of Level 3 | (7) | 1 |
Estimated fair value of plan assets at December 31, | 9 | 9 |
Level 3 | Common Stock - Foreign | ||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | ||
Estimated fair value of plan assets at January 1, | 0 | 0 |
Realized gains (losses) | 2 | 0 |
Unrealized gains (losses) | 0 | 0 |
Purchases, sales, issuances and settlements, net | (4) | 0 |
Transfers into and/or out of Level 3 | 5 | 0 |
Estimated fair value of plan assets at December 31, | 3 | 0 |
Level 3 | Other investments | ||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | ||
Estimated fair value of plan assets at January 1, | 634 | 722 |
Realized gains (losses) | 0 | (1) |
Unrealized gains (losses) | (12) | 32 |
Purchases, sales, issuances and settlements, net | 0 | (119) |
Transfers into and/or out of Level 3 | 0 | 0 |
Estimated fair value of plan assets at December 31, | 622 | 634 |
Level 3 | Derivative assets | ||
Rollforward fair value measurement using significant unobservable inputs (level 3) [Roll Forward] | ||
Estimated fair value of plan assets at January 1, | 64 | 75 |
Realized gains (losses) | (22) | 3 |
Unrealized gains (losses) | 6 | (18) |
Purchases, sales, issuances and settlements, net | (47) | 6 |
Transfers into and/or out of Level 3 | 0 | (2) |
Estimated fair value of plan assets at December 31, | $ 1 | $ 64 |
Employee Benefit Plans (Expecte
Employee Benefit Plans (Expected Gross Benefit Payments) (Details) - U.S. Plans $ in Millions | Dec. 31, 2017USD ($) |
Pension Benefits | |
Defined benefit plan estimated future benefit payments [Abstract] | |
2,018 | $ 562 |
2,019 | 571 |
2,020 | 587 |
2,021 | 591 |
2,022 | 606 |
2023-2027 | 3,227 |
Other Postretirement Benefits | |
Defined benefit plan estimated future benefit payments [Abstract] | |
2,018 | 85 |
2,019 | 88 |
2,020 | 88 |
2,021 | 87 |
2,022 | 88 |
2023-2027 | $ 443 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total revenue from annuity and life insurance contracts recognized | $ 56 | $ 57 | $ 55 | |
Total investment income (loss) from annuity and life insurance contracts | 1,100 | 660 | (130) | |
Defined Contribution Plan, Cost | 65 | $ 73 | $ 72 | |
United States Pension Plan of US Entity, Qualified [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected future discretionary contributions | 150 | |||
United States Pension Plan of US Entity, Non Qualified [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected future discretionary contributions | 70 | |||
Pension Benefits | U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated net actuarial losses amortized into net periodic benefit cost over the next year | 171 | |||
Estimated prior service cost amortized into net periodic benefit cost over the next year | $ (1) | |||
Weighted average expected return on plan assets | 6.00% | 6.00% | 6.25% | |
Pension Benefits | Scenario, Forecast | U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted average expected return on plan assets | 5.75% | |||
Other Postretirement Benefits | U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected future discretionary contributions | $ 50 | |||
Estimated net actuarial losses amortized into net periodic benefit cost over the next year | (6) | |||
Estimated prior service cost amortized into net periodic benefit cost over the next year | $ (19) | |||
Weighted average expected return on plan assets | 5.36% | 5.53% | 5.70% | |
Other Postretirement Benefits | Scenario, Forecast | U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted average expected return on plan assets | 5.11% |
Income Tax (Impact of U.S. Tax
Income Tax (Impact of U.S. Tax Reform) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income (loss) before provision for income tax | $ 2,966 | $ 1,941 | $ 4,481 | |||||||||
Deferred Federal Income Tax Expense (Benefit) | (2,099) | (539) | 296 | |||||||||
Income Tax Expense (Benefit) | (561) | 199 | 1,763 | |||||||||
Income (loss), net of income tax | $ 1,628 | $ 708 | $ 644 | $ 547 | $ 301 | $ 628 | $ 323 | $ 490 | 3,527 | 1,742 | 2,718 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 29,761 | $ 26,760 | 29,761 | $ 26,760 | $ 31,041 | $ 32,185 | ||||||
Impact of U.S. Tax Reform | ||||||||||||
Income (loss) before provision for income tax | (66) | |||||||||||
Deferred Federal Income Tax Expense (Benefit) | (1,112) | |||||||||||
Income Tax Expense (Benefit) | (1,112) | |||||||||||
Income (loss), net of income tax | 1,046 | |||||||||||
Income tax (expense) benefit related to items of other comprehensive income (loss) | 133 | |||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,179 | $ 1,179 |
Income Tax (Provision for Incom
Income Tax (Provision for Income Tax from Continuing Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ 1,511 | $ 675 | $ 1,384 |
State and local | 4 | 5 | 20 |
Foreign | 14 | 40 | 36 |
Subtotal | 1,529 | 720 | 1,440 |
Deferred: | |||
Federal | (2,099) | (539) | 296 |
Foreign | 9 | 18 | 27 |
Subtotal | (2,090) | (521) | 323 |
Current and Deferred: | |||
Provision for income tax expense (benefit) | $ (561) | $ 199 | $ 1,763 |
Income Tax (Income Loss from Co
Income Tax (Income Loss from Continuing Operations Before Income Tax Expense from Domestic and Foreign Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income (loss) from continuing operations: | |||
Domestic | $ 4,045 | $ 2,379 | $ 4,409 |
Foreign | (1,079) | (438) | 72 |
Income (loss) before provision for income tax | $ 2,966 | $ 1,941 | $ 4,481 |
Income Tax (Reconciliation of I
Income Tax (Reconciliation of Income Tax Provision between US Statutory Rate and As Reported for Continuing Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income tax expense benefit continuing operations income tax reconciliation | ||||
Tax provision at U.S. statutory rate | $ 1,039 | $ 679 | $ 1,569 | |
Dividend received deduction | (65) | (79) | (82) | |
Tax-exempt income | (49) | (38) | (24) | |
Prior year tax (1) | (29) | (33) | 558 | |
Low income housing tax credits | (278) | (270) | (221) | |
Other tax credits | (101) | (98) | (68) | |
Foreign tax rate differential | 0 | 1 | (4) | |
Change in valuation allowance | 0 | (1) | (1) | |
Other, net | 11 | 38 | 36 | |
Provision for income tax expense (benefit) | (561) | 199 | 1,763 | |
Possible Change in Tax Assessment [Member] | ||||
Income tax expense benefit continuing operations income tax reconciliation | ||||
Provision for income tax expense (benefit) | $ 557 | 557 | ||
Impact of U.S. Tax Reform | ||||
Income tax expense benefit continuing operations income tax reconciliation | ||||
Tax provision at U.S. statutory rate | (23) | |||
Provision for income tax expense (benefit) | (1,112) | |||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | (1,089) | $ 0 | $ 0 | |
Impact of U.S. Tax Reform, including US Statutory impact [Member] | ||||
Income tax expense benefit continuing operations income tax reconciliation | ||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | $ (1,100) |
Income Tax (Net Deferred Income
Income Tax (Net Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax assets: | ||
Policyholder liabilities and receivables | $ 1,361 | $ 292 |
Net operating loss carryforwards | 23 | 27 |
Employee benefits | 595 | 828 |
Tax credit carryforwards | 1,127 | 947 |
Litigation-related and government mandated | 117 | 212 |
Other | 437 | 460 |
Total gross deferred income tax assets | 3,660 | 2,766 |
Less: Valuation allowance | 20 | 20 |
Total net deferred income tax assets | 3,640 | 2,746 |
Deferred income tax liabilities: | ||
Investments, including derivatives | 1,989 | 1,234 |
Intangibles | 32 | 53 |
DAC | 673 | 1,150 |
Net unrealized investment gains | 2,313 | 2,693 |
Other | 2 | 1 |
Total deferred income tax liabilities | 5,009 | 5,131 |
Deferred tax assets and liabilities [Abstract] | ||
Net deferred income tax asset (liability) | $ (1,369) | $ (2,385) |
Income Tax (Net Operating and C
Income Tax (Net Operating and Capital Loss Carryforwards for Tax Purposes) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Domestic Tax Authority | |
Net Operating Loss Carryforwards | $ 12 |
Domestic Tax Authority | 2018-2022 | |
Net Operating Loss Carryforwards | 0 |
Domestic Tax Authority | 2023-2027 | |
Net Operating Loss Carryforwards | 0 |
Domestic Tax Authority | 2028-2032 | |
Net Operating Loss Carryforwards | 0 |
Domestic Tax Authority | 2033-2037 | |
Net Operating Loss Carryforwards | 12 |
Domestic Tax Authority | Indefinite | |
Net Operating Loss Carryforwards | 0 |
State and Local Jurisdiction | |
Net Operating Loss Carryforwards | 128 |
State and Local Jurisdiction | 2018-2022 | |
Net Operating Loss Carryforwards | 49 |
State and Local Jurisdiction | 2023-2027 | |
Net Operating Loss Carryforwards | 64 |
State and Local Jurisdiction | 2028-2032 | |
Net Operating Loss Carryforwards | 13 |
State and Local Jurisdiction | 2033-2037 | |
Net Operating Loss Carryforwards | 2 |
State and Local Jurisdiction | Indefinite | |
Net Operating Loss Carryforwards | $ 0 |
Income Tax (Tax Credit Carryfor
Income Tax (Tax Credit Carryforwards) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | $ 1,127 | $ 947 |
Foreign Tax Authority | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 98 | |
Foreign Tax Authority | 2018-2022 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 10 | |
Foreign Tax Authority | 2023-2027 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 88 | |
Foreign Tax Authority | 2028-2032 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 0 | |
Foreign Tax Authority | 2033-2037 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 0 | |
Foreign Tax Authority | Indefinite | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 0 | |
General business tax credit carryforward | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 1,064 | |
General business tax credit carryforward | 2018-2022 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 0 | |
General business tax credit carryforward | 2023-2027 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 0 | |
General business tax credit carryforward | 2028-2032 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 232 | |
General business tax credit carryforward | 2033-2037 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 832 | |
General business tax credit carryforward | Indefinite | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 0 | |
Other tax credit carryforward | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 194 | |
Other tax credit carryforward | 2018-2022 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 0 | |
Other tax credit carryforward | 2023-2027 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 0 | |
Other tax credit carryforward | 2028-2032 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 0 | |
Other tax credit carryforward | 2033-2037 | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 0 | |
Other tax credit carryforward | Indefinite | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | $ 194 |
Income Tax (Reconciliation of U
Income Tax (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Expense (Benefit) | $ (561) | $ 199 | $ 1,763 | |
Operating Expenses | 5,135 | 5,803 | 6,258 | |
Reconciliation of Unrecognized Tax Benefits | ||||
Balance at January 1, | 931 | 1,075 | 546 | |
Additions for tax positions of prior years (1) | 0 | 7 | 558 | |
Reductions for tax positions of prior years (2) | $ (792) | (38) | (109) | 0 |
Additions for tax positions of current year | 4 | 6 | 4 | |
Reductions for tax positions of current year | (1) | 0 | 0 | |
Settlements with tax authorities | (6) | (48) | (33) | |
Balance at December 31, | 890 | 931 | 1,075 | |
Unrecognized tax benefits that, if recognized would impact the effective rate | $ 890 | $ 931 | 1,060 | |
Possible Change in Tax Assessment [Member] | ||||
Income Tax Expense (Benefit) | 557 | $ 557 | ||
Operating Expenses | 362 | |||
Operating Expenses Net | $ 235 |
Income Tax (Interest Accrued Re
Income Tax (Interest Accrued Related to Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Interest recognized on the consolidated statements of operations (1) | $ 47 | $ (33) | $ 382 |
Interest included in other liabilities on the consolidated balance sheets | $ 653 | $ 606 |
Income Tax (Narrative) (Details
Income Tax (Narrative) (Details) - USD ($) $ in Millions | Nov. 19, 2015 | Sep. 18, 2015 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Federal corporate income tax rate | 35.00% | |||||
Deferred Federal Income Tax Expense (Benefit) | $ (2,099) | $ (539) | $ 296 | |||
Income Tax Assessment, Income Taxes and Interest Paid | $ 444 | |||||
Other expenses | 5,135 | 5,803 | 6,258 | |||
Income Tax Reconciliation, Deductions, Dividends, Related To Separate Accounts | 60 | 75 | 76 | |||
True Up Of Prior Year Tax Return Included In Current Year Benefit Associated With Dividend Received Deduction Related to Separate Accounts | 1 | |||||
Related Party Tax Expense, Due from Affiliates, Current | 203 | 60 | ||||
Subsequent Event | ||||||
Federal corporate income tax rate | 21.00% | |||||
Impact of U.S. Tax Reform | ||||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | (1,089) | $ 0 | $ 0 | |||
Deferred Federal Income Tax Expense (Benefit) | (1,112) | |||||
Compensation and fringe benefits [Member] | Impact of U.S. Tax Reform | ||||||
Deferred Federal Income Tax Expense (Benefit) | 8 | |||||
Alternative Minimum Tax Credits [Member] | Impact of U.S. Tax Reform | ||||||
Deferred Federal Income Tax Expense (Benefit) | $ 7 | |||||
Other Assets | ||||||
Transition tax rate | 8.00% | |||||
Cash and Cash Equivalents | ||||||
Transition tax rate | 15.50% | |||||
Alternative Minimum Tax Credits [Member] | ||||||
Transition tax rate | 6.60% | |||||
Income Tax Refund | ||||||
Other expenses | $ 9 | |||||
Foreign Tax Authority | Impact of U.S. Tax Reform | ||||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | $ 1 |
Contingencies, Commitments a176
Contingencies, Commitments and Guarantees (Contingencies - Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)Claims | |
Loss Contingencies | |
Reserves for Group Annuity products | $ 510,000 |
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 | $ 325,000 |
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 a177
Contingencies, Commitments and Guarantees (Asbestos Claims) (Details) - Asbestos Related Claims $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)Claims | Dec. 31, 2016USD ($)Claims | Dec. 31, 2015USD ($)Claims | |
Loss Contingencies [Line Items] | |||
Asbestos personal injury claims at year end | Claims | 62,930 | 67,223 | 67,787 |
Number of new claims during the year | Claims | 3,514 | 4,146 | 3,856 |
Settlement payments during the year | $ | $ 48.6 | $ 50.2 | $ 56.1 |
Asbestos-related claims liability, ending balance | $ | $ 551 |
Contingencies, Commitments a178
Contingencies, Commitments and Guarantees (Insolvency Assessments) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other Assets: | ||
Premium tax offset for future discounted and undiscounted assessments | $ 51 | $ 24 |
Premium tax offsets currently available for paid assessments | 49 | 32 |
Other Liabilities: | ||
Insolvency assessments | 66 | 37 |
Insurance-related Assessments | ||
Other Assets: | ||
Total assets held for insolvency assessments | $ 100 | $ 56 |
Contingencies, Commitments a179
Contingencies, Commitments and Guarantees (Leases) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Gross rental payments 2018 | $ 144 | ||
Gross rental payments 2019 | 130 | ||
Gross rental payments 2020 | 134 | ||
Gross rental payments 2021 | 132 | ||
Gross rental payments 2022 | 130 | ||
Gross rental payments, thereafter | 673 | ||
Gross rental payments, total | 1,343 | ||
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | 546 | ||
Operating Leases, Rent Expense, Net | $ 187 | $ 204 | $ 191 |
Contingencies, Commitments a180
Contingencies, Commitments and Guarantees (Commitments and Guarantees - Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Liabilities for indemnities, guarantees and commitments | $ 4 | $ 5 |
Cumulative maximum indemnities and guarantees contractual limitation | 407 | |
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 | 127 | |
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 | 3,900 | 4,200 |
Mortgage Loan Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 3,300 | $ 3,900 |
Quarterly Results of Operati181
Quarterly Results of Operations (Unaudited) (Quarterly Results of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Results of Operations (Unaudited) | |||||||||||
Total revenues | $ 8,952 | $ 10,286 | $ 9,342 | $ 8,645 | $ 8,738 | $ 9,876 | $ 9,082 | $ 8,794 | $ 37,225 | $ 36,490 | $ 38,733 |
Total expenses | 8,336 | 9,411 | 8,534 | 7,978 | 8,465 | 9,126 | 8,753 | 8,205 | 34,259 | 34,549 | 34,252 |
Net income (loss) | 1,628 | 708 | 644 | 547 | 301 | 628 | 323 | 490 | 3,527 | 1,742 | 2,718 |
Less: Net income (loss) attributable to noncontrolling interests | (6) | 5 | 2 | 1 | 1 | (7) | (2) | 0 | 2 | (8) | 0 |
Net income (loss) attributable to Metropolitan Life Insurance Company | 1,634 | 703 | 642 | 546 | 300 | 635 | 325 | 490 | $ 3,525 | 1,750 | 2,718 |
Scenario, Previously Reported | |||||||||||
Quarterly Results of Operations (Unaudited) | |||||||||||
Total revenues | 8,952 | 10,286 | 9,342 | 8,645 | 8,738 | 9,876 | 9,082 | 8,794 | 36,490 | 38,771 | |
Total expenses | 8,336 | 9,356 | 8,528 | 7,972 | 8,459 | 9,123 | 8,749 | 8,196 | 34,527 | 34,232 | |
Net income (loss) | 1,628 | 743 | 648 | 551 | 304 | 630 | 326 | 496 | 1,756 | 2,757 | |
Less: Net income (loss) attributable to noncontrolling interests | (6) | 5 | 2 | 1 | 1 | (7) | (2) | 0 | |||
Net income (loss) attributable to Metropolitan Life Insurance Company | 1,634 | 738 | 646 | 550 | 303 | 637 | 328 | 496 | 1,764 | 2,757 | |
Restatement Adjustment | |||||||||||
Quarterly Results of Operations (Unaudited) | |||||||||||
Total revenues | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (38) | |
Total expenses | 0 | 55 | 6 | 6 | 6 | 3 | 4 | 9 | 22 | 20 | |
Net income (loss) | 0 | (35) | (4) | (4) | (3) | (2) | (3) | (6) | (14) | (39) | |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Net income (loss) attributable to Metropolitan Life Insurance Company | $ 0 | $ (35) | $ (4) | $ (4) | $ (3) | $ (2) | $ (3) | $ (6) | $ (14) | $ (39) |
Related Party Transactions (Ser
Related Party Transactions (Service Agreements - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Other expenses | $ 5,135 | $ 5,803 | $ 6,258 |
Universal life and investment-type product policy fees | 2,227 | 2,542 | 2,584 |
Other revenues | 1,570 | 1,478 | 1,536 |
Net receivables (payables), due from (to) affiliates | (205) | (165) | |
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Universal life and investment-type product policy fees | 93 | 138 | 135 |
Other revenues | 141 | 113 | 151 |
Affiliated Entity | Services Necessary To Conduct The Company's Activities | |||
Related Party Transaction [Line Items] | |||
Other expenses | 2,200 | 2,100 | 2,100 |
Affiliated Entity | Services Necessary To Conduct The Affiliates' Activities | |||
Related Party Transaction [Line Items] | |||
Other expenses | $ 1,400 | $ 1,500 | $ 1,500 |
Consolidated Summary of Inve183
Consolidated Summary of Investments - Other Than Investments in Related Parties (Details) $ in Millions | Dec. 31, 2017USD ($) |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | $ 252,566 |
Amount at Which Shown on Balance Sheet | 265,108 |
Fixed Maturities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 157,809 |
Estimated Fair Value | 170,272 |
Amount at Which Shown on Balance Sheet | 170,272 |
U.S. government and agency | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 35,021 |
Estimated Fair Value | 38,545 |
Amount at Which Shown on Balance Sheet | 38,545 |
Public utilities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 6,721 |
Estimated Fair Value | 7,626 |
Amount at Which Shown on Balance Sheet | 7,626 |
State and political subdivision | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 6,310 |
Estimated Fair Value | 7,551 |
Amount at Which Shown on Balance Sheet | 7,551 |
Foreign government | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 3,887 |
Estimated Fair Value | 4,502 |
Amount at Which Shown on Balance Sheet | 4,502 |
All other corporate bonds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 70,159 |
Estimated Fair Value | 75,178 |
Amount at Which Shown on Balance Sheet | 75,178 |
Total bonds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 122,098 |
Estimated Fair Value | 133,402 |
Amount at Which Shown on Balance Sheet | 133,402 |
Mortgage-backed and asset-backed securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 34,933 |
Estimated Fair Value | 35,988 |
Amount at Which Shown on Balance Sheet | 35,988 |
Redeemable preferred stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 778 |
Estimated Fair Value | 882 |
Amount at Which Shown on Balance Sheet | 882 |
Equity Securities, Investment Summary [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 1,579 |
Estimated Fair Value | 1,658 |
Amount at Which Shown on Balance Sheet | 1,658 |
Industrial, miscellaneous and all other | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 1,128 |
Estimated Fair Value | 1,181 |
Amount at Which Shown on Balance Sheet | 1,181 |
Public utilities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 62 |
Estimated Fair Value | 70 |
Amount at Which Shown on Balance Sheet | 70 |
Non-redeemable preferred stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 389 |
Estimated Fair Value | 407 |
Amount at Which Shown on Balance Sheet | 407 |
Mortgage loans | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 58,459 |
Amount at Which Shown on Balance Sheet | 58,459 |
Policy loans | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 6,006 |
Amount at Which Shown on Balance Sheet | 6,006 |
Real estate and real estate joint ventures | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 6,612 |
Amount at Which Shown on Balance Sheet | 6,612 |
Real estate acquired in satisfaction of debt | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 44 |
Amount at Which Shown on Balance Sheet | 44 |
Other limited partnership interests | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 3,991 |
Amount at Which Shown on Balance Sheet | 3,991 |
Short-term investments | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 3,155 |
Amount at Which Shown on Balance Sheet | 3,155 |
Other invested assets | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 14,911 |
Amount at Which Shown on Balance Sheet | $ 14,911 |
Consolidated Supplementary I184
Consolidated Supplementary Insurance Information (Balance Sheet Items) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | $ 4,348 | $ 4,743 | $ 6,043 |
Future Policy Benefits, Other Policy-Related Balances and Policyholder Dividend Obligation | 128,712 | 124,553 | 128,211 |
Policyholder Account Balances | 93,939 | 92,466 | 94,420 |
Policyholder Dividends Payable | 499 | 510 | 624 |
Unearned Premiums | 327 | 300 | 308 |
Unearned Revenue | 202 | 212 | 555 |
U.S. | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | 413 | 421 | 418 |
Future Policy Benefits, Other Policy-Related Balances and Policyholder Dividend Obligation | 61,665 | 58,234 | 56,429 |
Policyholder Account Balances | 69,559 | 66,643 | 63,716 |
Policyholder Dividends Payable | 0 | 0 | 0 |
Unearned Premiums | 165 | 133 | 136 |
Unearned Revenue | 23 | 30 | 33 |
MetLife Holdings | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | 3,930 | 4,317 | 5,000 |
Future Policy Benefits, Other Policy-Related Balances and Policyholder Dividend Obligation | 66,753 | 65,982 | 70,276 |
Policyholder Account Balances | 24,380 | 25,823 | 29,827 |
Policyholder Dividends Payable | 499 | 510 | 621 |
Unearned Premiums | 162 | 167 | 171 |
Unearned Revenue | 179 | 182 | 201 |
Corporate & Other | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | 5 | 5 | 625 |
Future Policy Benefits, Other Policy-Related Balances and Policyholder Dividend Obligation | 294 | 337 | 1,506 |
Policyholder Account Balances | 0 | 0 | 877 |
Policyholder Dividends Payable | 0 | 0 | 3 |
Unearned Premiums | 0 | 0 | 1 |
Unearned Revenue | $ 0 | $ 0 | $ 321 |
Consolidated Supplementary I185
Consolidated Supplementary Insurance Information (Income Statement Items) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | $ 25,152 | $ 24,935 | $ 24,518 |
Net Investment Income | 10,513 | 11,083 | 11,539 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 28,027 | 27,546 | 26,730 |
Amortization of DAC and VOBA Charged to Other Expenses | 241 | 441 | 742 |
Other Expenses | 5,991 | 6,562 | 6,780 |
U.S. | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | 20,500 | 18,909 | 18,281 |
Net Investment Income | 6,012 | 5,811 | 5,848 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 22,019 | 20,263 | 19,613 |
Amortization of DAC and VOBA Charged to Other Expenses | 56 | 56 | 59 |
Other Expenses | 2,680 | 2,721 | 2,658 |
MetLife Holdings | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | 4,643 | 5,739 | 5,910 |
Net Investment Income | 4,758 | 5,355 | 5,601 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 6,004 | 7,128 | 6,951 |
Amortization of DAC and VOBA Charged to Other Expenses | 185 | 342 | 631 |
Other Expenses | 2,293 | 2,797 | 2,678 |
Corporate & Other | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | 9 | 287 | 327 |
Net Investment Income | (257) | (83) | 90 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 4 | 155 | 166 |
Amortization of DAC and VOBA Charged to Other Expenses | 0 | 43 | 52 |
Other Expenses | $ 1,018 | $ 1,044 | $ 1,444 |
Consolidated Reinsurance (Conso
Consolidated Reinsurance (Consolidated Reinsurance) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Direct Premiums, Life Insurance in Force | $ 3,377,964 | $ 3,013,618 | $ 3,035,399 |
Ceded Premiums, Life Insurance in Force | 266,895 | 277,693 | 361,355 |
Assumed Premiums, Life Insurance in Force | 490,033 | 777,037 | 811,435 |
Premiums, Net, Life Insurance in Force | $ 3,601,102 | $ 3,512,962 | $ 3,485,479 |
Life Insurance in Force Premiums, Percentage Assumed to Net | 13.60% | 22.10% | 23.30% |
Consolidated Reinsurance | |||
Gross Amount | $ 23,062 | $ 21,931 | $ 21,497 |
Ceded | 1,253 | 1,225 | 1,242 |
Assumed | 1,116 | 1,687 | 1,679 |
Premiums | $ 22,925 | $ 22,393 | $ 21,934 |
% Amount Assumed to Net | 4.90% | 7.50% | 7.70% |
Life insurance (1) | |||
Consolidated Reinsurance | |||
Gross Amount | $ 16,022 | $ 14,931 | $ 14,449 |
Ceded | 1,132 | 1,101 | 1,143 |
Assumed | 1,097 | 1,668 | 1,638 |
Premiums | $ 15,987 | $ 15,498 | $ 14,944 |
% Amount Assumed to Net | 6.90% | 10.80% | 11.00% |
Accident & health insurance | |||
Consolidated Reinsurance | |||
Gross Amount | $ 7,040 | $ 7,000 | $ 7,048 |
Ceded | 121 | 124 | 99 |
Assumed | 19 | 19 | 41 |
Premiums | $ 6,938 | $ 6,895 | $ 6,990 |
% Amount Assumed to Net | 0.30% | 0.30% | 0.60% |
Consolidated Reinsurance (Co187
Consolidated Reinsurance (Consolidated Reinsurance - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Reinsurance | |||
Reinsurance ceded | $ 1,253 | $ 1,225 | $ 1,242 |
Reinsurance assumed | 1,116 | 1,687 | 1,679 |
Assumed Premiums, Life Insurance in Force | 490,033 | 777,037 | 811,435 |
Ceded Premiums, Life Insurance in Force | 266,895 | 277,693 | 361,355 |
Affiliated Entity | |||
Consolidated Reinsurance | |||
Assumed Premiums, Life Insurance in Force | 1,300 | 258,300 | 276,700 |
Ceded Premiums, Life Insurance in Force | 16,200 | 17,600 | 23,100 |
Life insurance (1) | |||
Consolidated Reinsurance | |||
Reinsurance ceded | 1,132 | 1,101 | 1,143 |
Reinsurance assumed | 1,097 | 1,668 | 1,638 |
Life insurance (1) | Affiliated Entity | |||
Consolidated Reinsurance | |||
Reinsurance ceded | 132 | 45 | 40 |
Reinsurance assumed | $ 122 | $ 727 | $ 701 |